Manang Marsyangdi Hydropower Company Pvt. Ltd. (MMHCPL) has announced the success of achieving financial closure for the 135 MW Manang Marsyangdi Hydropower Project (MMHP) with the signing of a Loan Agreement with EXIM Bank, China on Friday.

Issuing a press release MMHCPL informed that as per the Loan Agreement, Exim Bank will provide CYN 1,242,500,000 (One billion two hundred forty-two million and five hundred thousand Chinese Yuan), which is equivalent to USD 175,250,000 (One hundred seventy-five million two hundred fifty thousand United Stated Dollars). The remaining loan has been arranged through other sources. The cost estimate of MMHP is USD 323,000,000 (Three hundred twenty-three million United States Dollars).

In MMHCPL, Nepal's hydropower leader company Butwal Power Company Limited, Chinese investors SCIG International Ltd., Xingcheng International Investment Co. Ltd., and QYEC International Co. Ltd. and their joint venture company SCIG International Nepal Hydro Joint Development Investment Co. Pvt. Ltd. have joint investments.

The financing modality of MMHP will have a debt-equity ratio of 80:20. In the equity, BPC will have 20 per cent and Chinese investors will have 80 per cent shares. Further, MMHCPL plans to issue shares to local residents of the project vicinity under the prevailing laws.

Sinohydro Bureau 7 Co. Ltd., China has undertaken the construction of MMHP under EPC. The construction has been started with the plan to complete the project within the 42-month period. Further, Northwest Engineering, China has been carrying out the construction supervision of MMHP.

MMHP is a PROR project located in Chame and Nasong Rural Municipality of Manang District. The project has a gross head of 430 m. A dam will be constructed in the Marsyangdi River at Chame Rural Municipality Ward No. 3, Koto and the powerhouse will be located in Nasong Rural Municipality Ward No. 9.

The water will be diverted through a 6 km-long headrace tunnel. MMHP will generate 766 GWh of energy annually. MMHP is the first project out of three hydropower projects being developed under cascade modality by the same investors, each through separate project companies.

The other two projects are the 139.2 MW Lower Manang Marsyangdi Hydropower Project and the 327 MW Upper Marsyangdi-2 Hydropower Project in Manang and Lamjung districts. The combined capacity of these three projects is 601MW and the total estimated project cost is 1.2 billion USD.