KATHMANDU: The 90 MW Marsyangdi Semi-Reservoir Hydropower Project has secured its investment. Under the leadership of Kumari Bank, four banks and financial institutions have agreed to invest NPR 10.50 billion in the project.
The financial closure agreement for the project, which is being constructed on the Marsyangdi River flowing through Palungtar Municipality in Gorkha, Rainas Municipality in Lamjung, and Bhanu Municipality in Tanahun, was signed on Friday.
The agreement was signed by Anup Acharya, Chairman of the project’s promoter company, MA Power Pvt. Ltd., and Ramchandra Khanal, Chief Executive Officer of Kumari Bank.
As per the agreement, in addition to Kumari Bank, Prabhu Bank, Siddhartha Bank, and Agriculture Development Bank will also provide loan investments. Kumari Bank will invest NPR 4 billion, Prabhu Bank NPR 3 billion, Siddhartha Bank NPR 2 billion, and Agriculture Development Bank NPR 1.5 billion.
The total cost of the project, including interest during the construction period, is estimated at NPR 20.25 billion. Out of this, banks and financial institutions will invest NPR 15.1875 billion.
The remaining amount will be arranged through other banks and financial institutions, as mentioned in the press release issued by Kumari Bank. The promoter company will contribute 25% of the total investment as equity.
The promoter company had signed a power purchase agreement (PPA) with the Nepal Electricity Authority on Kartik 1, 2080 (October 18, 2023). The project aims to commence electricity production by Baisakh 22, 2086 (May 5, 2029).