Three commercial banks have agreed to jointly finance 7.5MW Upper Khorunga Hydroelectric Project promoted by Terhathum Power Company.

Machhapuchhre Bank is leading the consortium including Nepal Bangladesh Bank and Janata Bank Nepal to finance Rs1 billion to the power developer.

Representatives of the banks and project promoters signed a pact on Monday to finance the project on debt-equity ratio of 73-27, read Machhapuchhre’s statement.

This means the project promoters have to mange 27 percent of Rs1.37 billion required to build the hydroelectric project, while banks will lend remaining 73 percent.

According to a study conducted by the developer, the project will yield 42.95 gigawatts of electricity. The energy will be evacuated to Jiri-Khimti substation as per the power purchase agreement signed with Nepal Electricity Authority. 

The developer itself will construct the transmission line to the substation. The produced energy will be used for domestic consumption. 

The project promoters have submitted “performance guarantee” to the government stating the project will be completed on time. 

The project aims to start developing key infrastructure within two to three months and start generating electricity by mid-December 2019.

Bhairabkunda IPO in mid-June

Bhairabkunda Hydropower Limited is carrying out Initial Public Offering (IPO) from mid-June 2017. The company will issue 3 million units of its shares, and aims at raising Rs300 million from the IPO. “As we are allowed to do IPO only a year after the company is converted to public limited, we will issue the shares in mid-June,” said Surendra Bhandari, chairman of the company.