KATHMANDU, Jan 7: The government has prepared investment modality for 454 MW Kimathanka-Arun Semi-reservoir Hydropower Project that has been planned to develop through injection of domestic capital.
The hydropower project is estimated to cost a total of Rs 97.94 billion, which will be managed through investment of the government and related subsidiary companies. According to the proposed financial structure, 70 per cent of the total cost worth Rs 68.55 billion will be mobilised through loans, while the remaining 30 percent, equivalent to Rs 29.38 billion, will be raised as equity.
Under the plan, the government will be mobilising the collective funds by taking loans from Hydroelectricity Investment and Development Company Limited (HIDCL), Employees Provident Fund, Citizens Investment Fund, Social Security Fund, insurance companies and banks and financial institutions.
Nepal and Bangladesh to discuss investment modality for constru...
The government will acquire 30 percent of the promoter shares in the power developer company of Kimathanka-Arun project. Nepal Electricity Authority, Employees Provident Fund and Nepal Telecom will own 10 percent each, Citizens Investment Fund will have five percent, HIDCL four percent and National Life Insurance Company will hold 2 percent.
Similarly, a total of 29 percent of the shares will be allocated to the general public.The amount received from equity will be generated by issuing shares to the company's promoters and Nepalis residing abroad, local residents of the project affected and the general people.
According to Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport and Urban Development Kulman Ghising, the government takes initiatives to construct the semi reservoir project citing to generate long term earnings from the project along with the sustainability of the power project.
According to the Energy Ministry, the government has already spent Rs 731.4 million for feasibility studies and pre-construction related works of the Kimathanka-Arun project. Land acquisition for the project office and staff residential camp has been completed, while compensation amounts for land required for the dam, reservoir, powerhouse and other structures have been estimated at Rs 450 million.
The project is expected to generate 2.69 billion units (2,690.97 GWh) of electricity annually. Of this, peak and off-peak generation in winter will be 473.1 million and 353.3 million units, respectively, while the electricity generation in the monsoon season is projected to be 1.86 billion units. The project is estimated to generate annual revenue of Rs 16.91 billion from electricity sales.
