KATHMANDU, March 16: Siuri Nyadi Power Limited has reached financial closure to build Super Nyadi Hydropower Project (40.27 MW).
The company has signed financing agreement with a consortium of six banks led by NMB Bank. The other banks in the consortium are Prabhu Bank Limited, Mega Bank Limited, Kumari Bank Limited, Century Commercial Bank and NCC Bank Ltd.
The consortium will finance 75 percent of the project's total cost of Rs 7 billion.
Promoters of Siuri Nyadi Power Limited, including lead promoter Ngadi Group Power Limited, will invest the remaining 25 percent.
Shailendra Guragain, chairman of the company, and representative of different banks signed the agreement amid a program organized in Kathmandu on Wednesday.
The company had signed Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) in June last year.
The project will be developed on Nyadi River located in Marshyangdi Rural Municipality of Lamjung. Water from the river will be diverted into a desanding basin before flowing through a 6.76-kilometer tunnel to the powerhouse. Thereafter, the water will flow to the underground powerhouse through two penstock pipes to generate 235.46 GWh annually.
The company has said that the plant will help in reducing energy crisis in the country, according to a press statement issued by the company.