Citizens-led consortium to invest Rs 6.15 billion in Sankhuwa Khola Hydroelectric Project
Of the total estomted cost of Rs 8.2 billion, four banks will provide 75% of the total funding as loans
KATHMANDU, DECEMBER 11: A consortium of four banks led by Citizens Bank International Limited has committed to investing Rs 6.15 billion in the 41.06 MW Sankhuwa Khola Hydroelectric Project. Three other member banks (of the consortium) include Everest Bank Limited, Nepal SBI Bank, and Sanima Bank,
A co-financing loan agreement was executed on Monday (Dec. 9) between the project promoter, Gurans Hydro Limited, and the participating financial institutions for the purpose of financial management. The project will be developed in the Koshi Province, Sankhuwasabha District (Silichong Rural Municipality), and Bhojpur District (Salpa Silichacho Rural Municipality).
The total estimated cost for the project is approximately Rs 8.2 billion. The banks will provide 75% of the total funding as loans, amounting to Rs 6.15 billion, while the project promoters will contribute the remaining 25% as equity. Citizens Bank. will invest Rs 2.9 billion, Everest Bank Rs 1.25 billion, Nepal SBI Rs 1.25 billion, and Sanima Bank Rs 750 million. The equity portion will be raised by the project promoters.
The project is expected to be completed within the next four years, with electricity generation commencing thereafter. Upon completion, the produced electricity will be connected to the Sitthalpati Substation of the Nepal Electricity Authority, located in Sankhuwasabha. According to the project’s estimates, the plant will generate a total of 240.929 GWh annually, with 75.041 GWh in winter and 165.888 GWh during the monsoon season.
Addressing the co-financing loan agreement signing ceremony, Ganesh Raj Pokharel, CEO of Citizens Bank, stated that since its inception, Citizens Bank has made significant investments in the hydroelectric and renewable energy sectors.
"These investments have been executed through various financing structures, including lead bank, co-lead bank, and co-financing arrangements with other consortium members."
To date, Citizens Bank has invested in 29 projects, comprising 13 completed projects with a total installed capacity of 124.541 MW, and 16 ongoing projects with a combined capacity of 516.574 MW, totalling 641.115 MW. It has acted as the lead bank in 15 hydroelectric projects, co-lead bank in 2 projects, participant bank in 9 projects, and sole investor in 3 projects.
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