NMB Bank and the Hydroelectricity Investment and Development (HIDCL) Company have jointly committed a substantial investment of 7.40 Arba rupees towards the Upper Modi A hydropower project. In this collaboration, NMB Bank will contribute 4.40 Arba rupees, while HIDCL will invest 3 Arba rupees. The signing of a tripartite loan agreement formalized this partnership, witnessed by Energy, Water Resources, and Irrigation Minister Shakti Bahadur Basnet, involving the project promoters Modi Hydropower Company, NMB Bank, and HIDCL.
The comprehensive cost of the entire project, inclusive of interest during construction, is estimated to be 10.57 Arba rupees. Financing for the project will comprise 70% from debt and the remaining 30% from equity, sourced from the project authority and the public. The objective is to complete the Upper Modi A hydroelectric initiative within a four-year timeframe, currently in the preparatory stages with evaluations ongoing for civil and hydromechanical aspects under Phase 1. Simultaneously, construction is underway for essential infrastructure such as project site offices and residences.
Crucial approvals for land acquisition, including forested areas, have been secured, and NEA Engineering Company is slated to oversee construction. This company will also supervise the 18.2 MW Upper Modi Hydroelectric Project. Financial management for the 42 MW Upper Modi A hydroelectric project, situated in the Annapurna Rural Municipality of Kaski, will be handled through a subsidiary company of the Nepal Electricity Authority.
Minister Basnet highlighted the government’s commitment to enhancing domestic electricity consumption and exporting surplus power to neighboring countries like India and Bangladesh. He emphasized a shift in perspective, noting that hydropower is now recognized not just as infrastructure but also for its economic potential through electricity consumption.