KATHMANDU: Energy entrepreneur and IPPAN Vice President Susan Karmacharya is leading a private-sector investment push to develop the 440 MW Tila-1 Hydropower Project in Kalikot, one of Nepal’s largest hydropower projects led by private investors.
The project, developed by SC Power Company, is nearing financial closure. Karmacharya and other promoters will invest more than Rs 14 billion in equity, with the remaining funding coming from a consortium of banks.
NMB Bank, Global IME Bank, Prabhu Bank, Himalayan Bank, Rastriya Banijya Bank, NIC Asia Bank, Agriculture Development Bank, Sanima Bank and Everest Bank are among the lenders. Nepal Infrastructure Bank, Garima Development Bank, Muktinath Development Bank and Shine Resunga Development Bank will also finance the project.
The project has a total capacity of 440 MW, but the Nepal Electricity Authority has so far signed a power purchase agreement for 298 MW. Financing has therefore initially been arranged for the 298 MW component, with the remaining 142 MW awaiting a PPA.
The 298 MW phase is estimated to cost around Rs 60 billion, while the full 440 MW project is expected to require about Rs 70 billion.
Karmacharya is already involved in several hydropower projects. The 24 MW Madme Khola, 7.27 MW Yambaling and 5 MW Eastern Hydropower projects are operational, while the 203 MW Upper Budhigandaki, 86.59 MW Landruk Modi and 8.47 MW Menchhet Khola projects are under construction.
