Malaysian firm to invest in Myagdi Khola hydel
Kathmandu, March 14
A Malaysia-based company, Serba Dinamik International Ltd (SDIL), has signed a memorandum of understanding (MoU) with Hydro Village Pvt Ltd (HVPL) to cooperate and collaborate in developing and operating the 57.3-megawatt Myagdi Khola Hydropower Project.
SDIL is an international energy services provider which provides engineering solutions such as operation and maintenance services and engineering, procurement, construction and commissioning (EPCC) services and has operations that cover various countries in five different regions in the world, as per a press statement issued by SDIL.
The project is estimated to cost approximately $100 million and HVPL has already executed a power purchase agreement (PPA) with Nepal Electricity Authority and obtained required legal clearances from other concerned departments.
According to the MoU, SDIL will subscribe to shares in HVPL and participate in the EPCC as well as operation and maintenance of the project.
As per SDIL, the MoU was signed by Chief Executive Officer of SDIL Dato’ Ir Mohd Abdul Karim bin Abdullah and Sushil Pokharel, managing director of HVPL.
In the MoU signing ceremony, Abdullah said that this is the company’s first clean energy venture in South Asia and they will further invest in similar projects in Nepal in the near future.
According to Pokharel, the company has already prepared the detailed project report and the environment impact assessment report. “The joint venture with SDIL, which has an extensive track record in the energy sector, will help HVPL to secure foreign investment as well as enhance Nepal’s technical capabilities and project financing capacity.”
He further said they have plans to start execution of the project by this year and complete it in the next four years.
However, it has yet to ink the financial closure agreement.