Kathmandu, February 23

A consortium of five financial institutions led by Laxmi Bank has signed a facility agreement with Swet Ganga Hydropower and Construction Ltd on Thursday to finance the 28.1-megawatt run-of-the-river Lower Likhu Hydropower Project being constructed at Likhu Khola of Ramechhap and Okhaldgunga districts.

The project is being built at cost of around Rs 5.59 billion.

Swet Ganga Hydropower signed the power purchase agreement with Nepal Electricity Authority on December 29, 2016 and the project received generation licence from the Ministry of Energy on April 10, 2016, as per a media release.

The company is promoted by Sanima Group and Dolma Impact Fund.

The banks have committed to financing 75 per cent of the project cost (Rs 4.19 billion), with the remaining 25 per cent invested by the promoters and general public. The project finance (term loan) commitments from the banks include Laxmi Bank (Rs 1.24 billion), Kumari Bank (Rs one billion), Century Commercial Bank (Rs 750 million), Prabhu Bank (Rs 400 million) and Hydroelectricity Investment and Development Co (Rs 800 million).

Swet Ganga Hydropower, with a capacity of 28.1 MW, expects to contribute around 170.84 GWh of power annually to the nation and will be one of the large sized independent power producers (IPPs) when it comes into operation in December 2021, the release adds.