September 16: The promoter of the 1061-megawatt Upper Arun Hydropower Project has signed an agreement with banks and financial institutions to secure investment for the game-changer project.

According to Hydroelectricity Investment and Development Company Limited (HIDCL), the promoter company of the project, BFI have agreed to invest Rs 53.14 billion in the Upper Arun Hydropower Project. The total estimated cost of the project is around Rs 214.86 billion. That means one-fourth of the investment will be done by the banks and institutions of Nepal.

The project will be developed with investment from the World Bank, commercial banks of Nepal, Rastriya Banijya Bank, and the Citizens Investment Trust.  
A financing agreement was signed between Chief Executive Officer of Nepal Electricity Authority, Kulman Ghising, and the CEO of HIDCL, Arjun Kumar Gautam, Upper Arun Hydropower Project’s Fanindra Joshi and representatives of Nepal Bank, Nepal Banijya Bank and Citizens Investment Trust on Thursday.    

Speaking at the signing ceremony, Energy Minister Pampha Bhusal expressed happiness over the participation of the people of Nepal for the development of hydropower projects.
The project with a total capacity of 1061 MW will have 70 percent of the total cost met through loan investment and 30 percent will be equity capital. Preparations are being made to acquire loans of Rs 97 billion from the World Bank, European Investment Bank and other international financial institutions.    
It is a semi-reservoir project based in Bhotkhola Rural Municipality of Sankhuwasabha district. The project will produce 4,512 gigawatt hours of electricity per year of which 30 percent will be produced during the dry season.    
The goal is to start construction at the end of 2024 and complete it by 2030. At present, the feasibility study of the project has been completed and the work of selecting a consultant for the bid design and construction supervision work is underway, said NEA CEO Ghising. (With inputs from RSS)