KATHMANDU, Jan 27: The 77.5 MW run-of-the-river Ghunsa Khola Hydropower Project, developed with the goal of making Nepali migrant workers shareholders of the hydroelectric project, has successfully received investment. The project is being developed by Remit Hydro Limited.
Remit Hydro has stated that the project's multilateral loan agreement was signed on Sunday. Laxmi Sunrise Bank Limited will invest Rs 5 billion followed by Hydroelectricity Investment and Development Company Ltd (HIDCL) with Rs 3 billion, Citizen Investment Trust Rs 2 billion, Machhapuchchhre Bank Rs 1.45 billion, and Everest Bank investing Rs 1.25 billion in the project. The promoter company has stated that an agreement has been reached for banks and financial institutions to invest Rs 12.7 billion.
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The project will be constructed by utilizing the water of the Ghunsa River located in Phaktanglung Rural Municipality-5 and 6 of Taplejung district. The estimated cost of the project is Rs 18.13 billion including interest during the construction period. The financial arrangements required for the project will be made through equity and debt investment.
The equity investment in the institutional sector is 51 percent, including 21 percent by Nepal Electricity Authority; 15 percent by HIDCL and 15 percent by Vidyut Utpadan Company Limited (VUCL). Arrangements have been made to ensure that 49 percent of the total capital in the company is invested by the public.
Out of the 49 percent of the general shares, 29 percent has been ensured for Nepali citizens who have gone abroad for employment. Similarly, 10 percent has been allocated for project-affected locals and the remaining 10 percent for the general public. The project is targeted to be completed within four years of the commencement of construction.
Work has been completed on the road to the project's powerhouse and residence, as well as the installation of a bailey bridge at two locations on the Tamor River.
