Financial closure of 456 MW Upper Tamakoshi completed
KATHMANDU, MAY 13 -
Upper Tamakoshi Hydro Power Limited (UTHPL) has formally completed the financial closure of the 456 MW Upper Tamakoshi Hydro Electricity Project (UTHEP) following the signing of a loan agreement on Thursday between Nepal Telecom (NT) and the Nepal Electricity Authority (NEA).
The deal also means UTHEP, the country’s first hydel project being constructed with domestic resources, has progressed to the construction stage. If there are no obstructions, the national grid will get an additional 456 MW by the next four years.
UTHEP project manager Mrigendra Shrestha and NT acting managing director Kanhaiya Lal Shrestha signed the loan accord amid the presence of Energy Minister Gokarna Bista and Communications Minister Agni Sapkota. “If everything goes according to plan and there is no political interference, the country will get its largest hydropower project by 2015,” said Mrigendra Shrestha.
As per the agreement, NT will lend Rs 6 billion to the project. “The signing of the loan agreement with NT is a milestone in the development of the energy sector in the country,” said Mrigendra Shrestha after the signing ceremony. “It took us around 11 years to accomplish UTHEP,” added Shrestha.
Three financial institutions—the Employees Provident Fund (EPF), the Citizen Investment Trust (CIT) and Rastriya Beema Sansthan (RBS)—have already signed loan agreements with the project. The EPF, the CIT and RBS are lending Rs 10 billion, Rs 2 billion and Rs 2 billion respectively. Meanwhile, the government has pledged Rs 11.8 billion for the project. NT will get shares equal to the amount possessed by the NEA in Upper Trishuli 3-B as part of the deal.
Energy Minister Gokarna Bista said that the government was fully committed to commissioning the project on the planned date. “Successful construction of UTHEP is not only important for the development of the country’s energy sector; it is also a reflection of our confidence to build bigger hydropower projects through our own resources now and in the future,” added Bista.
Bista said that there might be serious ideological differences among the political parties, but they should move ahead jointly to address the interests of the people and development activities. “I assure you that the present government is fully committed to moving ahead with the construction of UTHEP in the projected time. I will personally direct the concerned authority to work three shifts a day if needed to complete the project on time,” he added.
The total estimated cost of the 456 MW project located in Dolakha is Rs 35.29 billion. It is expected to be completed by 2015. The project is the first to be commissioned through the mobilisation of national capital and has the lowest cost per unit.
Out of the total project cost, loans account for 70 percent and the rest will be distributed as shares to all the shareholders in the project. The project has already completed a power purchase agreement (PPA) with the NEA.
Timeline 2001
NEA prepares the first phase of the Detailed Feasibility Study
March 9, 2007
Upper Tamakoshi Hydropower Limited Established
July 26, 2010
Tripartite loan agreement signed between NEA, EPF, NT and RBS
July 31, 2010
EPF signs loan agreement of Rs 10 billion with NEA
August 1, 2010
Agreement reached with Chinese company Sinohydro Corporation Limited for Civil Construction Works
December 2, 2010
Norconsult AS-Lahmeyer JV selected as international consultant.
December 29, 2010
Signed PPA between UTHPL and NEA
Source: Kantipur
Upper Tamakoshi Hydro Power Limited (UTHPL) has formally completed the financial closure of the 456 MW Upper Tamakoshi Hydro Electricity Project (UTHEP) following the signing of a loan agreement on Thursday between Nepal Telecom (NT) and the Nepal Electricity Authority (NEA).
The deal also means UTHEP, the country’s first hydel project being constructed with domestic resources, has progressed to the construction stage. If there are no obstructions, the national grid will get an additional 456 MW by the next four years.
UTHEP project manager Mrigendra Shrestha and NT acting managing director Kanhaiya Lal Shrestha signed the loan accord amid the presence of Energy Minister Gokarna Bista and Communications Minister Agni Sapkota. “If everything goes according to plan and there is no political interference, the country will get its largest hydropower project by 2015,” said Mrigendra Shrestha.
As per the agreement, NT will lend Rs 6 billion to the project. “The signing of the loan agreement with NT is a milestone in the development of the energy sector in the country,” said Mrigendra Shrestha after the signing ceremony. “It took us around 11 years to accomplish UTHEP,” added Shrestha.
Three financial institutions—the Employees Provident Fund (EPF), the Citizen Investment Trust (CIT) and Rastriya Beema Sansthan (RBS)—have already signed loan agreements with the project. The EPF, the CIT and RBS are lending Rs 10 billion, Rs 2 billion and Rs 2 billion respectively. Meanwhile, the government has pledged Rs 11.8 billion for the project. NT will get shares equal to the amount possessed by the NEA in Upper Trishuli 3-B as part of the deal.
Energy Minister Gokarna Bista said that the government was fully committed to commissioning the project on the planned date. “Successful construction of UTHEP is not only important for the development of the country’s energy sector; it is also a reflection of our confidence to build bigger hydropower projects through our own resources now and in the future,” added Bista.
Bista said that there might be serious ideological differences among the political parties, but they should move ahead jointly to address the interests of the people and development activities. “I assure you that the present government is fully committed to moving ahead with the construction of UTHEP in the projected time. I will personally direct the concerned authority to work three shifts a day if needed to complete the project on time,” he added.
The total estimated cost of the 456 MW project located in Dolakha is Rs 35.29 billion. It is expected to be completed by 2015. The project is the first to be commissioned through the mobilisation of national capital and has the lowest cost per unit.
Out of the total project cost, loans account for 70 percent and the rest will be distributed as shares to all the shareholders in the project. The project has already completed a power purchase agreement (PPA) with the NEA.
Timeline 2001
NEA prepares the first phase of the Detailed Feasibility Study
March 9, 2007
Upper Tamakoshi Hydropower Limited Established
July 26, 2010
Tripartite loan agreement signed between NEA, EPF, NT and RBS
July 31, 2010
EPF signs loan agreement of Rs 10 billion with NEA
August 1, 2010
Agreement reached with Chinese company Sinohydro Corporation Limited for Civil Construction Works
December 2, 2010
Norconsult AS-Lahmeyer JV selected as international consultant.
December 29, 2010
Signed PPA between UTHPL and NEA
Source: Kantipur
