Citizens Bank, NIBL and Prabhu Bank to provide consortium loan to hydropower project

 

 

Under the initiative of Citizens Bank, Nepal Investment Bank and Prabhu Bank have agreed to provide  consortium loan to the Down Piluwa River Hydropower Project based in Chainpur and Dharmadevi Municipality of Sankhuwasabha district. The promoter of the project is River Falls Pvt. Ltd.

The estimated cost of the project is Rs 1.89 billion. The banks will be investing in loan to capital ratio of 70:30. The total loan from the banks will be Rs 1.32 billion. Among them, Citizens Bank is providing Rs 650 million, Nepal Investment Bank is giving Rs 420 million and Prabhu Bank is financing Rs 250 million. Similarly, the promoters will invest 30 percent capital.

During the agreement signing ceremony, CEO of Citizens Bank Ganesh Raj Pokhrel said that this particular financial agreement is an agreement during the time of crisis.

Managing director of River Falls assured that the works for the project have been progressing rapidly.

The project will produce 57.685 gigawatt/hour electricity. According to the company, the project will produce 7.685 gigawatt/hour electricity in winter  and 50 gigawatt/hour electricity in rainy season.

The project has set a target to complete the construction within 2 and a half years. According to the project officials, the hydropower plant will be operational within that period. The electricity produced by the plant will be connected to the Chainpur-based sub-station of Nepal Electricity Authority (NEA)