Investment was raised in Upper Ankhu Khola of 38 MW

KATHMANDU: SEPT. 29 – Financial clause of the 38 MW Upper Ankhu Khola Hydropower Project to be constructed by businessman Arun Raj Sumargi has been completed. Five commercial banks will invest in the project to be constructed in Rubi Valley Municipality and Khaniyabas Rural Municipality of Dhading.

Citizens Bank International Limited, Nepal SBI Bank, Nepal Bangladesh Bank, Mega Bank Nepal and Civil Bank will invest in the hydropower project being promoted by Dhading Ankhu Khola Hydro Pvt.

A co-financing investment agreement was signed between the lending banks and the promoter on Sept. 28, the company said.

The company has stated that 75 per cent loan and 25 per cent equity investment will be made in the project which is estimated to be around Rs. 7.33 billion. According to the capital structure, 75 per cent of the loan of Rs 5.5 billion will be provided by banks. The remaining 25 per cent investment will be mobilized from the promoters of the project, including Sumargi.

The target is to generate electricity commercially within the next four years.

The company has also stated that the project is under construction after completing all the legal procedures required by the Nepal Electricity Authority, Department of Electricity Development, Ministry of Forest and Environment and other stakeholders.

The electricity generated from the project will be connected to the Nepal Electricity Authority’s Trishuli 3B hub substation in Nuwakot.

According to the company, the project will generate 66,700 gigawatt-hours of electricity in winter and 152,438 gigawatt-hours in the rainy season, generating 219,138 gigawatt-hours of electricity annually.