Nine BFIs led by NIBL to invest Rs 2.77 arba in Upper Dordi ‘A’ project

ShareSansar, March 14:

A consortium of nine BFIs led by Nepal Investment Bank Limited (NIBL) has decided to invest Rs 2.774 arba in 25 Megawatt Upper Dordi ‘A’ hydropower project.

The hydropower company being developed by Liberty Energy Hydropower Limited has already finished most of the paperwork including PPA agreement with Nepal Electricity Authority to generate electricity by September 2017.

Lead bank NIBL and co-lead bank Nepal Bank Limited and other BFIs have signed a financial closure agreement with the hydropower developer for the loan yesterday. As per the deal, the BFIs will invest 70 percent of the total project cost of Rs 3.96 arba while Liberty Energy will chip in the remaining money.

The other BFIs involved in the deal are Global IME, Century, Grand, NIDC, Prabhu and H&B Development Banks.

Now that the financial arrangement is in place, the company plans to start the construction work soon, according to Liberty Energy’s CEO Biswo Nath Kandel.

NIBL’s CEO Jyoti Pandey informed that they have decided to invest in the project as it is both technically and financially sound.

“Since the project site is already connected by existing road network, the construction work will not take long,” Kandel said, adding that the electricity generated from the project will be linked to 132 KV transmission line at Udipur hub.

The locals of the project site, which is located in Dhodeni and Phaleni VDCs of Lamjung district are also eagerly awaiting the project, and have already set up a ‘Model Investment Company’ to invest in the project.

NRNs from the district who are living in Japan, too, want to invest around Rs 10 crore in the project, according to company sources.