Urja Khabar
Kathmandu; Union Mewa Hydro Limited (UMHL) has finalized the fund management to construct its proposed 23 MW Mewa Khola Hydropower Project.
According to the hydropower company, the bank consortium led by Laxmi Bank Limited will be financing the necessary amount for the project. Nabil Bank and Himalayan Bank Limited are among other partner banks for this purpose.
The promoter company, in this regard, signed an agreement with the investor banks on Tuesday. UMHL Chairman Kiran Malla and Deputy CEO of Laxmi Bank Sumit Bhattarai inked the deal. Earlier, Puskar Bhattarai from Nabil Bank and a representative of Himalayan Bank had signed the agreement.
Speaking at a program, UMHL Chairman Malla expressed his commitment to completing the project construction within the stipulated time and budget. According to him, banks did not fall behind in investing in hydroelectric projects even during adverse situations.
The project is estimated to cost Rs 4.70 billion for its construction. Of the projected amount, banks will fund Rs 3.52 billion while Rs 1.18 billion will be generated from shareholders. Likewise, the project will raise 75 percent of the necessary fund from credit while 25 percent will be generated from equity capital. Laxmi Bank will invest Rs 1.52 billion, while Nabil Bank and Himalayan Bank will invest Rs 1 billion each.
According to the company's power purchase agreement (PPA), it will produce 136.79 GWh (136,790 units) of electricity annually. In the first year of its business, the company is projected to generate revenue of Rs 810 million.
The electricity produced by Mewa Khola Hydropower Project will be supplied through a 5 km stretch of 132 kV single circuit transmission line that connects the powerhouse to a 132/220 kV substation, which is under construction. Likewise, a dam will be constructed in Mikwa Khola Rural Municipality-5 of Taplejung district, Koshi Province, to drop water by using 1,536 m long penstock at the surface powerhouse to be constructed in Chherekma of the same rural municipality.
As of now, 11.5 km out of the 13 km long accessway has been constructed. Similarly, the construction of headworks and residential units at the powerhouse has been completed. According to the PPA, the company has been given a deadline of December end 2026 to produce electricity.
The company says the design discharge of the project is 3.15 cusec. Including Chairman Malla, Brindaban Man Pradhananga, Vikesh Pradhananga and Avigya Malla are among the board members of the company.
