Investment has been secured for the Tamor-Mewa Hydropower Project to be constructed in Taplejung.

Investment has been arranged for the 128-megawatt project to be constructed under the initiative of Spark Hydroelectric Company Limited.

According to Bhanendra Kumar Limbu, founding chairman of Spark Hydroelectric Company Limited, funds will be raised for the project under the leadership of Siddhartha Bank Limited.

Limbu said that an agreement has been reached to invest 75 per cent of the total cost of constructing the project under the leadership of Siddhartha Bank Limited and the co-leadership of Machhapuchchhre Bank Limited.

Chairman of the promoting company Spark Hydroelectric Company Limited, Shraban Kumar Goyal, and the corporate credit head of Siddhartha Bank, Amit Shrestha, signed the agreement on Thursday.

Under the leadership of Siddhartha and Machhapuchchhre Bank, Agricultural Development Bank Limited, Nepal SBI Bank Limited, Jyoti Bikas Bank Limited will invest in the hydropower project.

Similarly, ICFC Finance Limited, Nepal Finance Limited and Goodwill Finance Limited will also invest for the project.

The total cost of the project is estimated to be Rs. 23.04 billion, according to the company.

Managing Director of the Spark Hydroelectric Company Limited Sudip Kumar Chaudhary said that the remaining 25 per cent of the cost will be raised from the promoters as equity.

The Tamor-Mewa project is designed to generate electricity by combining water from the Mewakhola River - flowing along the border of Mikwakhola and Meringden Rural Municipalities - and the Tamor River, which runs between Mikwakhola and Phungling Municipalities.

The wards 1, 2 and 3 of Phungling Municipality, wards 1, 2 and 3 of Mikwakhola Rural Municipality, wards 3 of Meringden and wards 2, 3 and 5 of Aathrai Triveni Rural Municipality are in the affected areas of the project.

Spark Hydroelectric Company obtained its power generation license from the Department of Electricity Development in October 2020. Prior to that, the Ministry of Forest and Environment had approved the Environmental Impact Assessment (EIA) report in October 2018.

The company also finalised a power purchase agreement with the Nepal Electricity Authority in October 2023.

Spark Hydroelectric aims to complete the construction of the Tamor-Mewa Hydropower Project within three years and five months, targeting completion by October 2028.

By Chandra Pandak