Funding Secured for Mid Kaligandaki Hydropower Project
Funding has been secured for the Mid Kaligandaki Hydropower Project, which is set to be constructed on the Kaligandaki River. The 66.3 MW project, spearheaded by Hydro Support Pvt Ltd of the IME Group, will receive a Rs 9.12 billion investment from six commercial banks, led by Nabil Bank Ltd. This project will be located in Annapurna Rural Municipality, Myagdi.
The project will feature a dam at Annapurna-3, Sukebagar, and a powerhouse at Annapurna-2, connected by a 4,000-meter tunnel with a height of 115 meters. Project Chief Chandra Dhakal announced that preparations for the infrastructure, led by Nabil Bank, are underway. Physical construction is scheduled to begin in 2024, with completion expected within four years.
The financing agreement was signed by Dhakal, Chairperson of IME Group, and Gyanendra Dhungana, CEO of Nabil Bank. Nabil Bank and Everest Bank will contribute 75 percent of the project's total cost, estimated at Rs 12.93 billion. Specifically, Nabil Bank will invest Rs 3.12 billion, Everest Bank and Nepal Investment Mega Bank Rs 2 billion each, and Nepal Bank, Rastriya Banijya Bank, and Prabhu Bank Rs 1 billion each. The remaining 25 percent will be sourced from promoters and shareholders.
Under the agreement with the Nepal Electricity Authority (NEA), the power purchase rate is set at Rs 8.40 for winter and Rs 4.80 for the rainy season. The project is projected to generate Rs 1.33 billion from 130 GW in winter and Rs 1.33 billion from 277 GW during the rainy season. Additionally, preparations are underway for constructing five hydropower projects along the Kaligandaki River, from Mustang to the Parbat border.
