Ramesh Kumar Bhattarai, chief administrator of EPF, and Dr Jibendra Jha, executive director of Nepal Electricity Authority (NEA) and Bhojraj Regmi, managing director of Upper Tamakoshi Hydropower Company, signed the tripartite agreement amid a ceremony on Friday. [break]
Now that the investment has been finalized, sources at Upper Tamakoshi Hydropower Company said construction works would begin after the monsoon.
EPF has agreed to provide loan to NEA at the interest rate of 11 percent. To secure loan from EPF, NEA has put Mid-Marshyangdi Hydro Electric Project as collateral to EPF.
After signing the agreement, Bhattarai said the project can now get the amount anytime it needs it.
NEA has to start paying loan and interest to EFP after five years, according to the agreement.
Addressing the signing ceremony, Energy Minister Dr Prakash Sharan Mahat expressed the hope that the mega project would now move ahead without any hindrance. “Since this project is being commissioned entirely with domestic capital, it can boost our confidence in other big projects as well,” Dr Mahat added.
Dr Jha informed that NEA would soon sign final agreement with the contractors to kick start the construction works. Ramesh Kumar Bhattarai of EPF requested all stakeholders to lend their helping hand to the project.
The largest hydropower project in the country is estimated to cost Rs 35.29 billion. Apart from loan investment worth Rs 10 billion from EPF, Nepal Telecom has expressed its commitment for Rs 6 billion and Citizens´ Investment Trust and Rastriya Beema Sansthan have committed to provide Rs 2 billion each.
The government has already committed to provide Rs 11.8 billion as loan to the project.
The share capital for this project will be 30 percent while remaining amount will be acquired from loan. NEA has already awarded contract for civil construction works worth Rs 13 billion to China´s Sino Hydro Company. This is the largest contract ever awarded in the country for construction works.
Share structure revised
The Upper Tamakoshi Hydropower Company has revised its share structure as per the negotiations with concerned stakeholders.
As per the revised structure, NEA´s stake has been reduced from 51 percent to 40 percent. Nepal Telecom will own 6 percent share in the mega project, while Rastriya Beema Sansthan and Citizen´s Investment Trust will have 2 percent each.
Depositors of EPF will get 18 percent share of the project and Dolakha residents will get 10 percent stake in the project. Similarly, employees of Upper Tamakoshi Hydropower Company and Nepal Electricity Authority will get 4 percent shares, while 3 percent has been allocated for employees of lending institutions.
Remaining 15 percent has been allocated for general public.
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