Investment of Rs 9bn raised for Mid Kaligandaki hydel project

MYAGDI: Financial management has been secured for the Middle Kaligandaki Hydroelectric Project, which is set to be constructed in Kaligandaki River. Six commercial banks, led by Nabil Bank, are investing Rs 9.12 billion in the 66.3MW hydropower project being developed by IME Group's Hydro Support in Annapurna Rural Municipality, Myagdi district. 

The dam for the project, promoted by Hydro Support, is proposed at Sukebagar in Annapurna-3, with the powerhouse located in Annapurna-2. 

The 4,000-metre tunnel will have a height of 115 metres from the powerhouse to the four-way junction. 

Project chief Chandra Prasad Dhakal recently announced that preparations have been made to construct the infrastructure for Central Kaligandaki, under the leadership of Nabil Bank. 

Physical construction of the project will begin in 2024 and will be completed within four years. Dhakal, also the Chairperson of IME Group on behalf of Hydro Support, and Gyanendra Dhungana, Chief Executive Officer of Nabil Bank, who led the co-financing of the banks, signed an agreement on behalf of their respective sides. 

Nabil Bank and Everest Bank have jointly invested 75% in the project, estimated to cost Rs 12.93 billion.

As per the agreement with Nepal Electricity Authority (NEA), the power purchase rate for winter has been fixed at Rs 8.40, and for the rainy season, it stands at Rs 4.80. 

The project is projected to generate revenue of Rs 1.33 billion from 130 GW during winter and Rs 1.33 billion from 277 GW during the rainy season. 

Preparations are underway to construct five hydropower projects along the Kaligandaki River, spanning from Mustang to the border of Parbat in Myagdi region.