Loan accord for Mailung Khola project

Rastriya Samachar Samiti

Kathmandu, April 23:

The Mailung Khola Hydroelectricity Company has concluded a Rs 290 million loan agreement with banks for construction of the Mailung Khola Hydroelectricity Project here today.

Mailung Khola Hydroelectricity Project is promoted by Molnia Power Pvt Ltd, Pashupati Energy Development Co Ltd and the Nepal-China joint venture company Asia Pacific Power Technology Nepal Pvt Ltd.

The consortium of banks is comprised of Himalayan Bank Limited as the lead bank, Development Credit Bank Limited as co-lead bank and Bank of Kathmandu Ltd, Lumbini Bank Ltd, Machhapuchchhre Bank Ltd and Nabil Bank Ltd as members.

Apart from Rs 290 million to be provided by the banks, Mailung Khola Hydroelectricity Project is making an equity investment of Rs 210 million and provisions of a defer loan of $30 million has also been made.

The project is located in Haku and Dadagaon village development committees in Rasuwa district. It is a run-of-river type scheme with a design discharge of 1.6 cumec, a net head of 370 metres and a capacity of five megawatt.

The power generated from the project will be fed to the national grid through a 2.9 km 66 kv single circuit extension line.

The hydroelectricity project is expected to help in reducing the shortage of electricity in the country to some extent, say concerned officials.