Kathmandu, July 9:

Butwal Power Co (BPC) and Ace Development Bank Ltd inked an agreement today to develop 42- Megawatt (MW) Marshyangdi III Hydroelectric Project. Keton Hydropower Ltd, a subsidiary of BPC, will develop the project based in Tarkughat VDC of Lamjung.

The estimated cost of the run-of-river type hydroelectric project is $78 million (Rs 5.4 billion approximately). The project will have design charge of 80 cubic meters per second and gross head is estimated at 55 m, Lohar said adding that the project is expected to start commercial operation by 2012.

Ranjan Lohar, CEO of BPC and Siddhanta Raj Pandey, CEO of Ace, signed a MoU on behalf of their respective companies.

“Ace will act as a finance advisor, finance manager, trustee and also look into the matters related to project finance. The bank will arrange for necessary capital by issuing appropriate financial instrument,” Pandey said.