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Mountain Energy Limited has completed the financial closure for the 65 MW Dudh Khola Hydropower Project, which it plans to construct through its subsidiary company. An agreement on the financial closure was signed between Dudh Khola Hydro Power Company Pvt. Ltd., the project’s developer, and the lending banks.

Under the agreement, NMB Bank, the lead bank, will provide a loan of Rs 6.81 billion, while Sanima Bank, the co-lead bank, will provide Rs 3.20 billion. The two banks will jointly invest a total of Rs 10.01 billion in debt financing for the project.

The project, which will be constructed in Manang district, has an estimated total cost of Rs 12.89 billion. This translates to a construction cost of around Rs 198.3 million per megawatt. As the project’s per-megawatt cost is below Rs 200 million, it is considered relatively attractive in terms of construction cost.

Of the project’s total cost, Rs 10.01 billion will be financed through loans from banks and financial institutions, while the remaining approximately Rs 2.88 billion will be invested by the promoter company as equity. The company said the completion of financial closure has ensured the necessary funding for construction of the project.

Following the completion of financial closure, the company is preparing to immediately move ahead with construction. It has set a target of beginning electricity generation within three years of starting construction.

Once completed, the Dudh Khola project will significantly increase Mountain Energy’s hydropower generation capacity. The company is currently generating electricity from its 42 MW Mistri Khola Hydropower Project and 5 MW Tadi Khola Hydropower Project, both of which have already been completed.

Mountain Energy’s hydropower journey, which began with the 5 MW Tadi Khola project, expanded to the 42 MW Mistri Khola project and is now set to grow further with the 65 MW Dudh Khola project. Upon completion of Dudh Khola, an additional 65 MW of generation capacity will be added to the company’s portfolio.

The Dudh Khola Hydropower Project will be constructed in Manang district, and the electricity generated by the project will be connected to the national grid upon completion.

The completion of financial closure marks an important milestone for the project’s transition into the construction phase, and construction activities are now expected to accelerate.

Urjasanchar