An existing consortium of 11 financial institutions led by Laxmi Bank signed a supplementary facility agreement with Sanima Mai Hydropower today to finance the capacity up-gradation of upcoming 22 MW Mai run of the river Hydropower Project being constructed at Mai Khola of Ilam district.
The project is being upgraded from 15.6 MW to 22 MW at an additional cost of around Rs 400 million, said Laxmi Bank that has led the consortium that includes Nabil Bank, Grand Bank, Bank of Asia, Janata Bank, Nepal SBI Bank, Kumari Bank, Bank of Kathmandu, Siddhartha Bank, Machhapuchchhre Bank and Ace Development Bank.
Sanima Mai Hydropower signed the Power Purchase Agreement (PPA) for upgraded capacity with Nepal Electricity Authority (NEA) on March 21 and the Rs 3.1 billion project received Generation License from the Ministry of Energy on July 6.
The company is promoted by 49 institutional and individual promoters including Sanima Group, Non-Resident Nepalese (NRNs) and hydropower experts and professionals.
The lenders have committed to finance about 75 per cent of the project cost with the remaining 25 per cent to be invested by the promoters.
Sanima Mai Hydropower — with the upgraded capacity of 22 MW — expects to contribute around 128.29 GWh of power annually to the nation and will be one of the largest independent power producers, when it comes into operation in July 2014.