Extra funding assured for Mai hydel project

KATHMANDU, AUG 28 -

The existing consortium of 11 financial institutions led by Laxmi Bank signed a supplementary facility agreement with Sanima Mai Hydropower Ltd on Monday to finance capacity upgradation of the project.

The run-of-the-river project on the Mai Khola of Ilam is being upgraded to 22MW from the existing 15.6 MW at an additional cost of around Rs 400 million. The estimated cost of the project now has gone up to Rs 3.1 billion.

The project signed the Power Purchase Agreement for the upgraded capacity with the Nepal Electricity Authority on March 21, 2012. The project, which received the generation license from the Ministry of Energy on July 6, 2012, is expected to come into operation in July 2014.

The company is promoted by 49 institutional and individual promoters, including Sanima Group, Non-resident Nepalis and hydropower experts/professionals.

The lenders have committed to finance about 75 percent of the project cost and the remaining 25 percent will be invested by promoters.

The lenders include Laxmi Bank, Nabil Bank, Grand Bank, Bank of Asia, Janata Bank, Nepal SBI Bank, Kumari Bank, Bank of Kathmandu, Siddhartha Bank, Machhapuchchhre Bank and Ace Development Bank.

Source: The Kathmandu Post