Monday, December 12, 2011

Loan pact for four Chilime hydro projects

KATHMANDU, DEC 09 - 2011

A repatriate loan agreement for the development of four hydropower projects being developed by Chilime Hydropower Company Limited (CHCL) was signed between Chilime, the Employees’ Provident Fund (EPF) and projects concerned on Thursday.

Under the agreement, the EPP will provide loans to them worth Rs 16.60 billion at an interest rate of 12.5 percent. In June, the EPF and Chilime had signed a memorandum of understanding on EPF lending to these four projects.

EPF administrator Ramesh Kumar Bhattarai, managing director of Chilime Kul Man Ghising and chiefs of four projects signed the agreement in the presence of Energy Minister Post Bahadur Bogati, Finance Minister Barsha Man Pun and State Minister for Energy, Surya Man Dong.

The four hydropower projects include Rasuwagadhi (111 MW), Middle Bhotekoshi (102 MW) Upper Sanjen (14.8 MW) and Sanjen (42.5 MW). The total estimated cost for the construction of the hydropower projects is Rs 33.21 billion. Chilime plans to invest 50 percent from its own capital while the remaining will be raised from loans.

According to Ghising, of the four projects, the Upper Sanjen and Sanjen will be completed by 2015, while the remaining two—Rasuwagadhi and Middle Bhotekoshi—will be completed by 2017.

Chilime, a subsidiary company under the Nepal Electricity Authority, has constructed the Chilime Hydropower project in Rasuwa, the first hydropower project of Nepal, with domestic investment.

Source: Kantipur

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