Laxmi Sunrise- led consortium inks facilities agreement with Ghunsa Khola Hydro-Electric

Deal aims to finance the Rs 18.13 billion project with 77.5 MW capacity

KATHMANDU, JANUARY 28: Laxmi Sunrise Bank's consortium has signed a facilities agreement with Remit Hydro Ltd. to finance the 77.5 MW run-of-the-river Ghunsa Khola Hydro-Electric Project in Taplejung district.  The deal was signed on Sunday (Jan. 26) amidst a program in the capital. The project, estimated at Rs 18.13 billion, aims to enhance Nepal’s renewable energy sector.

The project received its Generation License on July 24, 2022, from the Department of Electricity Development and signed a Power Purchase Agreement with Nepal Electricity Authority (NEA) on May 3, 2024. NEA, Vidyut Utpadan Co. Ltd. (VUCL), and Hydroelectricity Investment and Development Co. Ltd. (HIDCL) collectively hold a 51% stake, with the remaining equity to be raised from public shares, including remittance holders and affected communities.

The financing structure comprises 70% debt and 30% equity. Key contributors include Laxmi Sunrise Bank (Rs 5 billion), HIDCL (Rs 3 billion), Citizen Investment Trust (Rs 2 billion), Machhapuchchhre Bank (Rs 1.44 billion), and Everest Bank (NPR 1.25 billion), totalling Rs 12.694 billion in term loans.

The project, part of the “Janata ko Jalvidyut Program - Nepal Ko Pani Janata Ko Lagani,” is expected to contribute 462.28 GWh annually to Nepal’s energy grid upon completion in December 2030.