EPF to loan Rs 16 billion for hydro projects
KATHMANDU, June 7:
The Employees’ Provident Fund will loan Rs 16.05 billions to Chilime Hydropower Company Limited for the development of four projects — Sanjen (42.5 MW), Upper Sanjen (14.5 MW) and Rasuwagadhi (102 MW) in Rasuwa and Middle Bhotekoshi (100 MW) in Sindhupalchowk.
According to sources, an MoU to this effect will be signed tomorrow and a loan agreement will be signed after six months after both parties agree to MoU conditions. “The major conditions are that the interest rate should be 12.5 per cent and Power Purchase Agreement should be signed with Chilime within six months,” added the source.
Chilime, a subsidiary company of NEA, has been operating a 22.1 MW project in Rasuwa with 51 per cent share of NEA, 14 per cent of general public, 10 per cent of locals and 25 per cent of employees.
Chilime, Nepal Electricity Authority, concerned district development committees and village development committees, as well as local financial institutions, will be the major promoters of the four projects.
According to sources at Chilime, the promoters will have 51 per cent share whereas remaining will be split among locals of the affected area, general public and depositors of EPF.
PPA with Sanjen and Upper Sanjen has already been prepared whereas negotiations with Rasuwagadhi and Middle Bhotekoshi are under way.
Chilime is one of the largest projects to be completed through domestic investment. “The estimated cost of four projects is about Rs 32 billion. Half of the required budget will be taken from EPF as loan and remaining half will be managed from other promoters and shareholders. However, percentage share for each stakeholder is yet to be finalised,” said the source at Chilime. Sanjen and Upper Sanjen are expected to be completed by 2016 and Middle Bhotekoshi and Rasuwagadhi in 2017. Access roads for Sanjen and Upper Sanjen are under construction. Feasibility study for Middle Bhotekoshi has been completed.
Source: THT
The Employees’ Provident Fund will loan Rs 16.05 billions to Chilime Hydropower Company Limited for the development of four projects — Sanjen (42.5 MW), Upper Sanjen (14.5 MW) and Rasuwagadhi (102 MW) in Rasuwa and Middle Bhotekoshi (100 MW) in Sindhupalchowk.
According to sources, an MoU to this effect will be signed tomorrow and a loan agreement will be signed after six months after both parties agree to MoU conditions. “The major conditions are that the interest rate should be 12.5 per cent and Power Purchase Agreement should be signed with Chilime within six months,” added the source.
Chilime, a subsidiary company of NEA, has been operating a 22.1 MW project in Rasuwa with 51 per cent share of NEA, 14 per cent of general public, 10 per cent of locals and 25 per cent of employees.
Chilime, Nepal Electricity Authority, concerned district development committees and village development committees, as well as local financial institutions, will be the major promoters of the four projects.
According to sources at Chilime, the promoters will have 51 per cent share whereas remaining will be split among locals of the affected area, general public and depositors of EPF.
PPA with Sanjen and Upper Sanjen has already been prepared whereas negotiations with Rasuwagadhi and Middle Bhotekoshi are under way.
Chilime is one of the largest projects to be completed through domestic investment. “The estimated cost of four projects is about Rs 32 billion. Half of the required budget will be taken from EPF as loan and remaining half will be managed from other promoters and shareholders. However, percentage share for each stakeholder is yet to be finalised,” said the source at Chilime. Sanjen and Upper Sanjen are expected to be completed by 2016 and Middle Bhotekoshi and Rasuwagadhi in 2017. Access roads for Sanjen and Upper Sanjen are under construction. Feasibility study for Middle Bhotekoshi has been completed.
Source: THT
