January 10: The promoters of the Upper Modi 'A' Hydropower Project have finalized the financial closure of the 42-MW project to be constructed at Annapurna rural municipality of Kaski district. 

Modi Hydropower Company Ltd, the promoter of the project, said that NMB Bank and Hydroelectricity Investment and Development Company Ltd (HIDCL) have decided to invest in the project.   

Of the estimated cost of Rs 10.57 billion including interest to be incurred during the construction period, 70 percent of the cost would be managed from loan and 30 per cent from equity. 

NMB Bank and Hydroelectricity Investment and Development Company Ltd (HIDCL) have pledged to invest Rs 7.40 billion including the interest for the construction period. Of the total investment, NMB Bank will invest Rs 4.40 billion and HIDCL Rs 3 billion. 

A tripartite loan agreement was signed among the promoter company, Modi Hydropower Company Ltd, NMB Bank and HIDCL in the presence of Minister for Energy, Water Resources and Irrigation, Shakti Bahadur Basnet on Tuesday.  

On the occasion, Minister Basnet said the government has been carrying out activities for increasing internal consumption of power produced in the country and is effortful to sell the surplus power to India and Bangladesh.

Energy Secretary Gopal Sigdel informed that discussions are being held on further expanding and strengthening the Nepal-India infrastructures for exporting power produced within the country. 

NEA executive-director and Chair of Modi Hydropower Company, Kulman Ghising said hydropower development in Nepal would make a leap in the coming days. 

"NEA is now moving ahead toward developing big hydropower projects. Works are being carried out for the financial management of the 1061-megawatt capacity Upper Arun and the 635-megawatt capacity Dudhkoshi Reservoir Hydropower Project within 2024," he said, adding that projects capable of producing electricity of around 16,000 megawatts are in the process of either study, construction or in the phase of initiating construction after mobilizing funds.  

HIDCL chief executive officer Arjun Gautam stressed that the power developers and promoters should work to dispel the notion that power projects are not constructed within the stipulated time. He said the company was ready to mobilize the funds required for fulfilling the government's goal of producing 28,000 megawatts electricity by 2035.

 NMB Bank’s chief executive officer Sunil KC said it is an opportunity for NMB Bank to invest in the Upper Modi 'A' Project.

 The project officials said that they have set the target to complete the construction of the project within four years from the start of the construction works. Preparatory works for the construction of the project are being carried out so far.

The same promoter company will also construct the 18.2 megawatts Upper Modi Hydropower Project. -- RSS