Kathmandu, December 31
With the completion of nearly 30 per cent of construction work of India-backed 900-megawatt Arun-III hydroelectric project, the developer company is scheduled to ink the financial closure of the project by February.
Hareram Subedi, the residential representative of SJVN Arun-III Power Development Company, informed that the company has almost finalised the necessary documents for the financial closure. “We have already forwarded the necessary documents to Investment Board Nepal (IBN) for its final approval. After we get a go-ahead, we will ink the financial closure with IBN by February.”
SJVN is a subsidiary company of Satluj Jal Vidyut Nigam Ltd, India, which has been tasked with building the project.
As per him, IBN has said that they are holding consultations with Nepal Rastra Bank before granting the approval.
“IBN officials have said they will complete the necessary approval work by the end of January and finalise a mutually convenient date for the financial closure.”
Subedi informed that the project has achieved 30 per cent progress in physical work and 11 per cent in financial work till date.
“At present, we are executing the construction work through our equity investment, which is worth Rs 27 billion. After our equity investment crosses at least 50 per cent, we will ink the financial closure with different banks and financial institutions, including two Nepali banks.”
Arun-III is an export-based project, which will bring the largest-ever government-to-government level foreign direct investment (FDI) from India worth $1.2 billion.
He informed that Everest Bank has pledged to invest Rs 10.5 billion and Nabil Bank has committed to invest Rs five billion in the project.