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3 Commercial Banks Pledge Consortium Loan to Khoringa HEP

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3 Commercial Banks Pledge Consortium Loan to Khoringa HEP
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February 7: Three commercial banks are financing Upper Khorunga Hydropower project, promoted by Tehrathum Power Company. The 7MW project is getting Rs 1 billion consortium loan from three commercial banks led by Machhapuchchhre Bank. A memorandum of understanding (MoU) was signed by the promoter company and the lead investor bank on February 7. Niraj Kumar Shrestha, CEO of Machhapuchchhre Bank and Mohan Kumar Dangi, Managing Director of Tehrathum Power signed the MoU.

Apart from Machhapuchchhre Bank, Nepal Bangladesh Bank and Janata Bank will be investing in the project. The three BFIs will invest 73 per cent of Rs 1.37 billion total expected investment of the project.

After obtaining the bank investment, construction of the project will be initiated, informed the project on the occasion. The hydropower project is being constructed in Morhang of Tehrathum. The project targets to generate the electricity by Dec 17 2019 by constructing the major infrastructure within the three months period of the agreement.

According to PPA agreement with Nepal Electricity Authority, the electricity generated will be connected to national grid by constructing a transmission line to Jiri Khimti Substation by the project. 

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