KATHMANDU: Ridi Hydropower Development Company — a subsidiary of Arun valley Hrdropower — is planning to float shares among the public. It has started trial production of 2.4 megawatt (MW) power from September 6.

Though it was supposed to get fund from World Bank Power Development Fund, due to some technical problems it did not and was developed through consortium lending from three commercial banks — Bank of Kathmandu (BoK), Machhapuchchhre Bank Ltd (MBL) and Nepal SBI Bank.

The consortium — with Bank of Kathmandu as the lead bank — has lent 69.5 per cent of the total cost of Rs 400 million.

According to project manager of Ridi Hydropower Development Company Kubermani Nepal, the remaining 31.5 per cent was invested by shareholders of the project that has

also local investors.

The project was supposed

to start generating power

last September but could

not meet the deadline due

to strikes, bandhs and lack

of construction materials.

“The power generation got delayed by a year, he added.

The project has its dam site

in Digaam VDC of Gulmi district and Siddheshwor VDC in Palpa district’s Saatmurey.

The Hydropower company made a power purchase

agreement (PPA) with Nepal Electricity Authority (NEA)

on August 24, 2006.