The financial management of the 61 MW Nar Khola Hydropower Project, to be built with the main investment of Singati Hydro Energy Limited, has been completed.

On Monday, five banks led by Kumari Bank signed an agreement to invest Rs. 9.5 billion in loans for the construction of the project.

Under the leadership of Kumari Bank, Nepal SBI Bank, Agricultural Development Bank, NIC Asia Bank, and Muktinath Bikas Bank will invest in the project.

Chairman of Nar Khola Hydro Energy Pvt. Ltd., Batu Lamichhane, and Kumari Bank’s Chief Regional Credit Officer, Arpan Pokharel, jointly signed the investment agreement at a function held today.

The Nar Khola Hydropower Project, with an installed capacity of 61.11 MW, will be developed by integrating the waters of Nar Khola and Soti Khola in Narpa Bhumi and Nason Rural Municipalities of Manang.

According to the project promoter company, Nar Khola Hydro Energy Pvt. Ltd., all procedures required for construction have been completed. The project has already signed a power purchase agreement (PPA) with the Nepal Electricity Authority.

The Nar Khola Hydropower Project will have a gross head of 588.82 metres and will generate 366.48 gigawatt-hours of electricity annually. Three turbines of 20.37 MW capacity each will be used to generate a total of 61.11 MW of electricity.

The headrace tunnel of the project will be about 8 kilometres long. The dam structures will be constructed in Narpa Bhumi Rural Municipality, while the power plant will be located in Nason Rural Municipality. The project will sell electricity worth Rs. 2.1 billion each year.

The electricity generated will be connected to the Nepal Electricity Authority’s substation currently under construction in Dharapani, Manang. The total estimated cost of the project is Rs. 12.84 billion, of which bank loans will amount to Rs. 9.63 billion and equity capital will be Rs. 3.21 billion.

The main equity investment will come from Singati Hydro Energy Limited. The project has already begun constructing the access road. According to the company, the construction of the main infrastructure will begin within next three months, with a target to complete the project within three years.