Kathmandu, Feb 25: Under the co-financing loan led by Kumari Bank, necessary financial arrangements have been made for the 48.50 MW Upper Rahughat Hydropower Project to be constructed on the Rahughat River flowing through Myagdi district. An agreement was dealt with between the banks and the project. Apart from Kumari Bank Limited, Global IME Bank is the co-leading bank under the co-financing agreement, while other participating banks are Siddhartha Bank Limited, Nepal Credit and Commercial Bank Limited and Machhapuchhre Bank Limited.
As per the agreement, out of the total cost of Rs. 8.30 billion, Rs. 5.81 billion will be disbursed from co-financing banks. The main investors of the promoter company will be Himalayan Infrastructure Fund Limited, Tudhi Investment Company Private Limited and Maheshwar Prakash Shrestha, while the foreign investor will be a Chinese company, Sichuan Ji Antai Energy Development Company Limited.
The project aims to generate electricity in three years. As the hydropower project falls under the national priority sector, banks and financial institutions are increasing the scope of investment in this sector.
