Sunday, February 28, 2021

Laxmi & Machhapuchchhre to finance Piluwa Khola hydel

Kathmandu, Feb. 23

A consortium of two commercial banks led by Laxmi Bank has signed agreement with Mabilung Energy Ltd. on Monday to finance Upper Piluwa Khola-3 Hydropower Project.

The 4.95 MW run of the river project is being constructed at Piluwa River and Sikhuwa River of Sankhuwasabha district. It is being built at a cost of around Rs. 937 million.

Mabilung Energy had signed the Power Purchase Agreement with Nepal Electricity Authority in March 2019 and the project received Generation License from the Ministry of Energy in July, 2020.

The company is promoted by Asian Life Insurance Co. Ltd., Guheswori Merchant Banking and Finance Ltd. along with individual promoters. Rajesh Lal Shrestha leads the company.

The banks have committed to financing 70 per cent of the project cost (Rs. 655.90 million) with the remaining 30 per cent to be invested through equity. The project finance (term loan) commitments from Laxmi Bank is Rs. 399.90 million and from Machhapuchchhre Bank Rs. 256 million.

Mabilung Energy expects to contribute around 28.417 GWh of power annually for the nation and it is expected to come into operation in February 2022, said the company in a statement on Tuesday.

According to NEA’s review report for FY 2019/20, a total of 15 new projects developed by the Independent Power Producers (IPPs) with a combined installed capacity of 135.39 MW were commissioned in the FY 2019/20.

This has increased the total number of IPP-owned projects in operation to 98 with a combined installed capacity of 696.17 MW.

Published in The Rising Nepal daily on 24 February 2021. 

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