By taking licenses and PPPs, we will end the situation without breaking synco: Energy Minister Basnet

Kathmandu. The financial management of the 42 megawatt upper Modi hydropower project to be constructed in Annapurna Rural Municipality of Kaski through the subsidiary company of Nepal Electricity Authority. The estimated cost of the project, including interest during the construction period, is 10.57 billion rupees, 70 percent of which has been raised from debt and 30 percent from equity. NMB Bank and Hydroelectricity Investment and Development Company (HIDCL) will invest 7.4 billion rupees in the project through co-financing with interest during the construction period. Out of the total loan, NMB Bank's Rs 4.4 billion and HIDCL's Rs 3 billion. In the presence of Energy, Water Resources and Irrigation Minister Shakti Bahadur Basnet, a tripartite loan agreement was signed between the promoters of the project, Modi Hydropower Company Ltd., NAMB Bank and HIDCL. In the program, Minister Basnet said that the government is working with clear guidelines to increase domestic consumption of electricity produced in the country and sell the saved electricity to India and Bangladesh. Stating that in the past hydroelectricity was considered only as an infrastructure, it was not understood as an economic possibility by paying attention to the consumption of electricity. “There has been a situation where hydropower projects have not broken the sync for years by taking production licenses (generation licenses) and not working even 1% for 9-10 years after signing power purchase agreements (PPAs). We are taking important decisions soon to end this situation,” he said. 'The state does not act unjustly, including electricity tariffs, it acts justly.' Gopal Sigdel, Secretary of the Ministry of Energy, Water Resources and Irrigation, said that discussions are underway for the further expansion and strengthening of infrastructure structures between Nepal and India for the export of domestically produced electricity. Kulman Ghising, Executive Director of the Authority and President of Modi Hydropower Company, said that in the coming days, Nepal's hydropower development will take a big leap. “Through the authority, the construction of projects with 3-digit capacity is now progressing to 4-digit capacity, and the financial management of the 1061 megawatt upper Arun and 635 megawatt Dudhkoshi reservoir hydropower projects are being carried out by 2024,” Ghising said. About 16,000 megawatts of projects through the authority and its subsidiary companies are at the stage of study, construction and investment. The Chief Executive Officer (CEO) of HIDCL, Arjun Gautam, has emphasized that the common understanding that the government projects are not completed on time should be destroyed by completing the construction of the project on time. He said that the company is ready to meet the government's target of producing 28,000 megawatts of electricity by 2035. Sunil KC, CEO of NMB Bank, has commented that it is a historic opportunity and a milestone for private banks to invest in projects promoted by the authority. The target is to complete the construction of Upper Modi A hydroelectric project within 4 years from the start. So far, the preparatory work for the project is being done. The technical proposal submitted by the bidder for civil and hydromechanical work under Phase-1 of the project is in the final stage of evaluation. The site of the project is being constructed for offices and residences. Acquisition of private land and land use in forest area has been approved. An agreement has been signed with NEA Engineering Company for the construction supervision consultant of the project. The company will also construct the 18.2 MW Upper Modi Hydroelectric Project.