Peoples Energy signs agreement

A consortium of banks led by Sanima Bank and Peoples Energy Ltd signed a pact of financial closure to invest in the 48.8-megawatt Khimti-2 hydropower project today. The consortium of 10 banks is ready to invest Rs 6.48 billion in the project. According to the company, the total cost of the project is estimated at Rs 8.65 billion.

Along with Sanima Bank, Siddhartha, Nabil, Janata, NIC Asia, NMB, Bank of Kathmandu, Civil, Global IME and NCC will invest in the project. Peoples Energy aims to complete the project within April of 2022.

The project had received survey licence on October 31, 2012. Similarly, Nepal Electricity Authority and the project signed the power purchase agreement on October 1, 2015.

The run-of-the-river project will produce 210 million units of energy in wet season and 40 million units in dry season. According to the company, the project will be constructed on Ramechhap and Dolakha districts.

As per the company, it has already completed contractor selection process and started preparatory works regarding construction of the project. The company aims to earn Rs 1.4 billion in the first year of its operation. Similarly, its annual income will increase by three per cent till the eighth year of operation.