5 BFIs sign pact under the guidance of Machhapuchchhre Bank for co-funding Likhu-2 Hydropower Project

Machhapuchchhre Bank Limited along with 5 other Bank and Financial Institutions (BFIs) has made an agreement with Global Hydropower Associate Private Limited. Niraj Kumar Shrestha, Chief Executive Officer (CEO) of Machhapuchchhre Bank and Motilal Dugad,Promoter of Global Hydropower Associate Private Limited signed the pact on Poush 14, 2073. The BFIs have agreed on the pact to provide loan to the hydropower company for the construction of 33.4 MW Likhu-2 Hydropower Project. The other banks are Nepal SBI Bank Limited, Mega Bank Limited, Everest Bank Limited, Nepal Bangladesh Bank and Vibor Society Development Bank Limited. Issuing a press statement, it stated that the total construction cost will be Rs 6.02 arba, out of which 75% amount will be invested by the BFIs and remaining 25% by promoters. The construction work has been fixed to proceed along with the confirmation of the investment by the BFIs. Likhu-2 Hydropower Project is located at Gumder VDC of Ramechhap distrit and Bhakanje VDC of Solukhumbu district. The hydropower project will generate 18.25 crore KWh of electricity annually. The generated electricity will be distributed throughout Nepal. Also the promoter company has submitted ‘Performance Security’ for the timely completion of the hydropower project. The hydropower project is aimed to start construction of infrastructures for the project within 2/3 months of investment agreement, added the statement.