The Department of Electricity Development (DoED) decided to issue generation license to the project after its developer expressed commitment to achieve financial closure within a year of receiving generation license.[break]
According to Gokarna Raj Pantha, senior divisional engineer at the DoED, the Middle Modi Hydropower Limited (MMHL), a subsidiary of Himal Hydro and General Construction Limited, is developing the project.
"The DoED has decided to grant conditional generation license as the developer has assured us that it would demonstrate bank guarantee within a year,” Pantha told Republica.
The run-of-the-river type project that is estimated to cost Rs 2.3 billion has already signed power purchase agreement (PPA) with the Nepal Electricity Authority (NEA).
According to Pantha, the project has agreed to sell power generated by it at Rs 4.80 per unit during wet season and Rs 8.40 per unit during dry season.
The power generated by the project can be linked to the national grid by developing a 4-km 132 kV single circuit transmission line from the plant site to NEA sub-station at Patichaur in Parbat.
Meanwhile, sources privy to the development told Republica that banks are reluctant to invest in the project. “But the developers are trying to get financial sources for the project," a source said.
Himal Hydro, which has already developed more than a dozen small hydropower projects, including Tinau Hydropower (1 MW) and Tatopani Small Hydro Project (2MW), has already completed environment impact assessment (EIA) study of the project.
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