Rastriya Banijya Bank Limited has decided to invest in the Super Machha Khola Hydropower Project.

On Friday, the bank signed a loan investment agreement for the 4.6 MW project, which will be built in Laprak, Dharche Rural Municipality-4, Gorkha. Chairman Khagendra Nyaupane of Budhigandaki Hydropower Pvt. Ltd. and CEO Devendra Raman Khanal of Rastriya Banijya Bank signed the agreement representing their respective organizations.

The project will cost Rs 963.83 million, of which 70 percent is to be financed through a loan and 30 percent through equity investment.

The promoter company stated that Rastriya Banijya Bank will invest Rs 674.68 million in loans, while the company will provide the remaining Rs 289.15 million through equity investment.

The project will produce 27.379 GW of electricity annually, with 18.621 GW in the monsoon and 8.75 GW in the winter.

An experienced team, led by Chairman Khagendra Nyaupane, Managing Director Krishna Prasad Ghimire, and Directors Saroj Dhital, John Ghale, Indra Bahadur Dhakal, and Binod Thapa, is working on the project’s construction.

The team previously constructed and launched a 4.55 MW capacity Bikash Hydropower Project in the same region, completing it six months ahead of schedule. The company is also in the process of issuing its IPO soon. The team plans to bring this project into operation within the next 18 months.

The project signed an electricity purchase agreement with the Nepal Electricity Authority on July 6, 2023. The company has also completed the Detailed Project Report (DPR).

The project will switch its transmission line to Development Hydropower and connect it to the Salyantar Substation in Dhading. The company is preparing to transition into a public limited company and issue shares to the general public within the next six months.