People’s Power inked Power Purchase Agreement with NEA to construct 4.96 MW Puwa-2 hydropower project; Aims to start operation within 24 months

People’s Power Limited officially pact the Power Purchase Agreement (PPA) for Puwa-2 hydroelectricity project of 4.96 megawatt on Bhadra 5, 2074. The agreement was signed by Mr. Bharat Bahadur Khatri, Managing Director of People’s Power Limited and Mr. Jagadishwor Man Singh, Acting Managing Director of Nepal Electricity Authority (NEA). The agreement confers that People’s Power Limited will sell the produced electricity on 6/6-month basis of rainy season and dry season at set price per unit at Rs 4.80 and Rs 8.40 respectively. With this rate, the company will get 20% leverage in per unit income compare to other old projects. Likewise, the company will be in capacity to provide 12% dividend to its shareholders from the very first year of its operation. The company aims to go promptly on construction work of 4.96 megawatt hydropower project. The project falls in Puwa river of Maipokhari and Sakhejung in Illam district. As per the company, the total project investment is Rs 90 crore, whereas per MW cost stands Rs 18 crore. The company is committed to complete this project within 24 months from now. The company intent to raise Rs 30 crore by issuing IPO shares to project affected local people and to the general public and remaining Rs 60 crore through loan agreement with different financial institutions. People’s Power has already got letter of intent from Nepal Bangladesh Bank for this. The spokesperson of the company state that 50 percent construction work would be completed in one year time period and accordingly company will issue 30% IPO shares to the public.   For more information about this project, can contact: Mr. Bharat Bahadur Khatri, Managing Director Mobile number 9851027992 Mr. Ashok Sitaula, Project Manager Mobile number 9851073789