Kathmandu, February 14

Darbang Myagdi Hydropower Project (DMHP) has achieved financial closure today.

The 25-megawatt project that is going to be developed by Dhaulagiri Kalika Hydro Ltd has been provided financing worth Rs 3.5 billion by various banks — Prabhu Bank, Kumari Bank, Century Bank, MuktinathBikas Bank and MahalakshmiBikas Bank — under the leadership of Sanima Bank, according to the developer.

Bhuwan Kumar Dahal, CEO of Sanima Bank, and BinodKunwar, representing the developer company, signed the memorandum of understanding (MoU) today regarding financing of the project.

The total project cost is expected to hover around Rs 5.14 billion and the developer will make equity investment worth Rs 1.64 billion that includes initial public offering (IPO) as well.

The project will issue 30 per cent of equity investment as public share during the construction period. The project is expected to be completed by mid-2021. Water flow has been measured at 31.4 cusecs.

The project will have headrace tunnel of five kilometres and power commissioned by this project will be connected to the national grid through proposed Dadakhet 132 kV substation.

The equity investment will be made by locals of Myagdi, non-resident Nepalis from Hong Kong, Kathmandu-Myagdi Investment Co and Global Friendship Capital Ltd, as per Dhaulagiri Kalika Hydro Ltd, the developer company of the project.