The project, which has an estimated cost of Rs 97.94 billion including interest during the construction period, will be carried out by the power generation company, which is funded by the government and government agencies.
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An investment framework has been prepared to construct the 454 MW Kimathanka Arun semi-reservoir hydropower project identified in Bhotkhola Rural Municipality-2 of Sankhuwasabha with domestic capital.
The project, which has an estimated cost of Rs 97.94 billion including interest during the construction period, will be carried out by the electricity generation company, whose founders are the government and government agencies. The financial management modality has been prepared to raise 70 percent of the total cost of the project, or Rs 685.5 million, from debt and 30 percent, or Rs 29.38 billion, from equity.
It is proposed to take a loan through co-financing from Hydroelectricity Investment and Development Company HIDCL, Employees Provident Fund, Citizens Investment Fund, Social Security Fund, insurance companies, and banks and financial institutions.
The amount received from equity will be collected by issuing shares to the company's founders and non-resident and foreign-employed Nepalis, local residents of the project-affected districts, members of extremely poor families, and the general public.
Minister for Energy, Water Resources and Irrigation Kulman Ghising, after taking information about the proposed investment modality prepared with financial analysis, directed to update the estimated cost of the project and immediately proceed with the financial management process accordingly.
Stating that the power generation company has a license for power projects but has not been able to start construction of any project, Minister Ghising said that the Kimathanka project should be built by itself for the long-term income and sustainability of the company.
Ghising directed that the proposed investment framework of the project and the company's institutional equity plan accordingly be immediately approved and submitted by the company's board of directors.
The cost of studying and pre-construction of Kimathanka Arun has been spent at the rate of Rs 731.4 million. Land has been acquired for the construction of the project's office and staff accommodation (camp). Compensation and indemnity for the acquisition of land required for the construction of structures including dams, reservoirs, power houses have been determined. This will cost about Rs 450 million.
The project will generate 2.69 billion units (2690.97 gigawatt hours) of electricity annually. Of this, the peak and off-peak energy of winter is 473 million and 353 million units, respectively, and the rainy season is 1.86 billion. 46 billion units. The annual income from the sale of this electricity will be Rs 16.91 billion.
The government owns 30 percent of the electricity generation company, Nepal Electricity Authority, Employees Provident Fund and Nepal Telecom own 10/10, Citizens Investment Fund owns 5, HIDCL owns 4, and National Life Insurance Company owns 2 percent of the promoter shares. 29 percent of the shares have been allocated for the general public.
