Kathmandu, February 10 With the major stake of Nepal Electricity Authority (NEA) and Nepal Telecom (NT), the construction works of the 37-megawatt capacity Upper Trishuli III B hydropower project has formally started. In a formal programme organised in Kispang Village Municipality of Nuwakot where the hydropower project is located, Minister for Energy, Water Resources and Irrigation Barsha Man Pun laid the foundation stone of the project today. Speaking at the programme, Minister Pun directed the project officials to complete the project within the stipulated time. “The project is located close to the capital city and will help ease the increasing demand of electricity in the Valley.” Managing Director of NEA and Chairman of the project Kul Man Ghising, said that the project will be completed within three years. “We have already signed the contract agreement with a Chinese company called Sichuan Hydraulic and Hydroelectric Engineering to build the project under the engineering, procurement and construction, (EPC) model,” he informed. As per the contract agreement, the contractor company has been assigned the responsibility to build the entire project, which includes not only the design of the project but also completion of all civil, electromechanical and hydromechanical works. The contractor is also responsible for connecting the power generated by the project to the national grid. The Trishuli Hydro Power Company Ltd — developer of the project — and Nabil Bank had signed an agreement to provide necessary loan to the project on August 22 last year. Nabil Bank along with Hydropower Investment and Development Company Ltd (HIDCL), Citizen Investment Trust (CIT) and Nepal Bank have agreed to provide a loan of Rs 5.76 billion to the project. As per the agreement, Nabil Bank will be providing loan worth Rs two billion. Similarly, HIDCL and Nepal Bank have agreed to provide Rs 1.50 billion and Rs 1.10 billion, respectively. CIT will also be providing loan worth Rs 1.16 billion. Though the actual construction cost of the project stands at Rs 7.44 billion, the total cost of the project will stand at Rs 8.22 billion including interests of Rs 780 million. Of the total investment, 30 per cent or Rs 2.46 billion has been managed through equity. Both NEA and NT have 30 per cent share each in the project while five per cent is owned by the rural municipalities and municipalities of Rasuwa and Nuwakot districts. A further five per cent share has been allotted to local financial institutions of Rasuwa and Nuwakot and 10 per cent to the locals of the two aforementioned districts. Meanwhile, 15 per cent share has been allocated to the general public and five per cent to NEA and NT employees. The Upper Trishuli III B is a cascade project of the Upper Trishuli III A project.