KATHMANDU, March 8: Laxmi Sunrise Bank and the co-financing partner banks have signed an agreement with Kaligandaki Gorge Hydropower to invest in the 180-megawatt Kaligandaki Gorge Hydropower Project, which the company plans to build on the Kaligandaki River in Mustang and Myagdi districts.
The project with a total cost of Rs 39.50 billion promises an important improvement in Nepal's renewable energy landscape.
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The Kaligandaki Gorge Hydropower Project received permission to generate electricity from the Department of Electricity Development on 11 March 2019. It has also signed a power purchase agreement with the Nepal Electricity Authority on 1 March 2023. The main promoters of the company are the Sangha Group, Vishal Group and Gyanendra Lal Pradhan.
The banks participating in the co-financing for the construction of the project, led by Laxmi Sunrise Bank, have committed to invest 75 percent of the project cost. The remaining 25 percent will be invested by the company's promoters and the general public.
Laxmi Sunrise Bank's project finance (term loan) commitment is Rs 9 billion, while Global IME Bank, which is the co-lead bank, has committed Rs 7.13 billion and Siddhartha Bank has committed Rs 5 billion. Other participating banks include Himalayan Bank with Rs 3 billion, Nepal SBI Bank with Rs 3 billion and Everest Bank with Rs 2.5 billion, bringing the total project finance to Rs 29.62 billion.
Once the project is completed and power is produced by June 2029, it will connect approximately 1,056 gigawatt hours of energy annually to the national transmission grid and will remain one of the largest independent powerhouses.