Upper Khimti hydropower project completes financial closure

Himalaya Urja Bikash Company, developer of 12MW Upallo Khimti Hydropower Project, has completed financial closure of the project.

A consortium of four banks led by Nabil Bank have pledged Rs 1.43 billion for the project, according to the company's statement. Himalaya Urja Executive Chairman Hari Pandey and Nabil Bank Senior Relationship Manager Yagya Prasad Sharma signed an agreement to this effect.

As per the agreement, Nabil will invest Rs 450 million, Nepal Bank Rs 400 million, Everest Bank Rs 400 million and Ace Development Bank Rs 185 million. The project cost is estimated at Rs 1.91 billion. The capital structure consists of 75 percent debt and 25 percent equity.

As per the connection agreement with Nepal Electricity Authority (NEA), the company will construct a 3.5km 132Kv transmission line to evacuate the power to Garjang substation.

The project signed the power purchase agreement (PPA) with NEA in January, 2011. It has said it will complete the construction by November 2017.

Meanwhile, the company said it will soon conclude financial closure of 7MW Upper Khimti-II Hydropower Project. It said the same consortium has agreed in principle to invest Rs 892.5 million for the project, whose estimated cost is Rs 1.19 billion. The project too will have 75 percent debt and 25 percent equity investment.