Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: A consortium of banks led by Citizens Bank International has signed a joint financing agreement with Expert Hydro Investment Pvt. Ltd. to construct the 44.52-megawatt Sanibheri Hydropower Project.
At a special ceremony in Kathmandu, Citizens Bank, Nabil Bank, Nepal Investment Mega Bank, Siddhartha Bank, and Sanima Bank entered into an agreement with project promoter Expert Hydro Investment to provide financing for the project. As per the agreement, 75 percent of the investment will come from the banking sector, while 25 percent will be contributed by the promoters.
The financing structure includes Rs. 2.5 billion from Citizens Bank, Rs. 1.5 billion from Nabil Bank, Rs. 1.2 billion from Nepal Investment Mega Bank, Rs. 1 billion from Siddhartha Bank, and Rs. 1 billion from Sanima Bank. The promoters, Expert Hydro Investment, will invest Rs. 2.4 billion. The project is estimated to be completed within 3.5 years from the start of construction.
The loan investment agreement was signed in the presence of Expert Hydro Investment Chairman Angish Ghimire, with the company’s Managing Director Santosh Raj Nepal and Citizens Bank CEO Ganesh Prasad Pokharel, along with CEOs and CFOs of the participating banks. Citizens Bank’s Chief Corporate Officer Roshan Malla and the finance officers of the partner banks formally endorsed the agreement.
The project will build a 23-kilometer, 132 kV double-circuit transmission line from the project’s switchyard to the Nepal Electricity Authority’s Banfikot substation. Once completed, the Sanibheri project will add 98.727 GWh of electricity in the dry season and 182.386 GWh in the wet season, totaling 281.113 GWh annually to the national grid.
The Sanibheri Hydropower Project, to be developed on the Sanibheri River flowing through Putha Uttarganga and Sisne Rural Municipalities of Rukum East, will have major investment from Siddi Hydropower Company Limited, along with contributions from Nepali entrepreneurs and the general public both at home and abroad.
Expert Hydro Investment and Siddi Hydropower are led by energetic young professionals with prior experience in Nepal’s hydropower sector. The company also includes prominent investors from the Australian Expert Education Group. The same group has been involved in the construction of Siddi Hydropower Project, which is nearing completion within just 18 months.
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