The financial clause for the construction of the 38 MW Upper Ankhu Khola Hydropower Project, which will be built by industrialist Arun Raj Sumargi, has been finalised. A total of five commercial banks will make investments in the project, which will be built in Dhading’s Rubi Valley Municipality and Khaniyabas Rural Municipality.
In the hydroelectric project being marketed by Dhading Ankhu Khola Hydro Pvt. Ltd., Citizens Bank International Limited, Nepal SBI Bank, Nepal Bangladesh Bank, Mega Bank Nepal, and Civil Bank will all make investments, as would the Nepal SBI Bank.
The signing of a co-financing investment agreement between the lending banks and the promoter took place on September 28, according to the firm.
The corporation has claimed that it will make a 75 percent loan and a 25 percent equity investment in the project, which is anticipated to be worth approximately Rs. 7.33 billion in total. Approximately 75% of the Rs 5.5 billion loan will be provided by banks, according to the capital structure. The remaining 25% of the funding will come from the project’s sponsors, which will include Sumargi, as well as other investors.
The goal is to begin economically producing power within the next four years, if not sooner.
The company has also stated that the project is currently under construction following the completion of all legal procedures required by the Nepal Electricity Authority, the Department of Electricity Development, the Ministry of Forest and Environment, and other parties involved in the development of the project.
It is planned to connect the energy generated by the project to the Trishuli 3B hub substation of the Nepal Electricity Authority, which is located in Nuwakot.
This will result in 66,700 gigawatt-hours of power being generated in the winter and 152,438 gigawatt-hours being generated in the rainy season, for a total of 219,138 gigawatt-hours being generated annually, according to the project’s developers.