Promoted by former president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi, Upper Mailung 'A' hydropower project has signed a consortium financing led by Nepal Bank.
The 6.42 MW installed capacity power project will cost a total of Rs 956.30 million, including interest during construction, according to chairman of Energy Engineering Joshi. "The project will cost Rs 148.95 million per MW including interest during construction."
Of the total project cost, the consortium banks will lend 70 per cent whereas the company will have 30 per cent equity, he said, adding that Nepal Bank is the lead bank with Nepal Investment Bank and Civil Bank as consortium banks.
Developed by Energy Engineering, the 6.42 MW power plant located at Gatlang VDC of Rasuwa district and Tipling VDC of Dhading district has a net annual generation capacity of 35.775 GWh.
The hydropower project is expected to be completed by July 2014, added Joshi, who is also leading the Kathmandu-Hetauda fast track tunnel project through his firm, Nepal Infrastructure Development Company.Currently, big business houses and industrialists are also interested in investing in hydropower due to rising cost of operation of industries that has made the domestic economy more expensive.