Machhapuchchhre Bank-Led Consortium Provides Rs 9 Arba Loan for 63 MW Chhujung Khola Project
A consortium of banks led by Machhapuchchhre Bank has committed Rs 9 arba in financing for the 63 MW Chhujung Khola Semi-Reservoir Hydropower Project being developed by Shangrila Urja Limited in Sankhuwasabha.
The financing agreement was signed among six banks, with Machhapuchchhre Bank as the lead bank. Prabhu Bank and Lumbini Bikas Bank have joined as co-lead banks, while Muktinath Bikas Bank, NIC Asia Bank and Shangrila Development Bank are participating as member banks.
The total estimated cost of the project is Rs 12 arba, of which Rs 9 arba will be financed through bank loans and the remaining Rs 3 arba through equity investment from promoters, including Ghalemdi Hydro Limited.
Located in Bhotkhola Rural Municipality-2 of Sankhuwasabha, the project has already secured a power purchase agreement with Nepal Electricity Authority. The project is expected to generate around 37.18 lakhs units of electricity annually.
Shangrila Urja has completed the construction of a 14-km access road and project camps, while tree clearance work has also been completed. The company has provided Rs 3.63 crores to the Department of Forests and Soil Conservation for plantation and conservation activities as part of the replacement plantation requirement.
The project will connect to the NEA’s Sheetalpati 220 kV substation through a 55-km transmission line. The company said it is working with other projects in the corridor to jointly develop the transmission infrastructure.
The project is designed as a four-hour semi-reservoir project, capable of generating electricity at full capacity even during dry seasons. Shangrila Urja said the project is expected to support Nepal’s energy security once completed.
