The 77.5 MW Ghunsa Khola Hydropower Project, a run-of-the-river initiative aimed at making Nepali migrant workers shareholders, has successfully secured investment. The project is being developed by Remit Hydro Limited.
According to Remit Hydro, the project’s multilateral loan agreement was signed on Sunday. Laxmi Sunrise Bank Limited is contributing Rs 5 billion, followed by Hydroelectricity Investment and Development Company Ltd (HIDCL) with Rs 3 billion, Citizen Investment Trust with Rs 2 billion, Machhapuchchhre Bank with Rs 1.45 billion, and Everest Bank with Rs 1.25 billion. In total, banks and financial institutions have committed Rs 12.7 billion to the project.
The hydropower project will harness the water of the Ghunsa River in Phaktanglung Rural Municipality-5 and 6 of Taplejung district. The estimated cost of the project, including interest during the construction period, is Rs 18.13 billion. Financial arrangements are being made through a combination of equity and debt investment.
Equity investment constitutes 51 percent of the project’s funding, with 21 percent from Nepal Electricity Authority, 15 percent from HIDCL, and 15 percent from Vidyut Utpadan Company Limited (VUCL). The remaining 49 percent of the capital has been allocated for public investment.
Of the public investment portion, 29 percent has been reserved for Nepali citizens working abroad, 10 percent for locals affected by the project, and 10 percent for the general public. The project is scheduled for completion within four years of starting construction.
Infrastructure development for the project is already underway, including completed access roads to the powerhouse and residential areas, along with the installation of bailey bridges at two points on the Tamor River.
