Kathmandu. The Narkhola Hydropower Project of 61 Mogawatt to be constructed with the main investment of Singati Hydro Limited has been completed. Five banks under the leadership of Kumari Bank on Monday signed an agreement to invest Rs 9.5 billion for the construction of the project.

The financing agreement was signed by the bank’s Chief Regional Credit Officer, Arpan Pokharel and Chairman of Narkhola Hydro Energy Pvt Ltd, Batu Lamichhane. The 61.11 MW Narkhola Hydropower Project will be constructed by integrating water from Narpa land and Soti Khola of Manang and Nasong rural municipality.

Narkhola Hydro Energy Pvt Ltd, the promoter company of the project, said that all processes for the construction of the project have been completed. Kumari Bank has signed an agreement with Nepal SBI Bank, Agricultural Development Bank, NIC Asia Bank and Muktinath Bikas Bank on behalf of Kumari Bank.

The project will have a gross head of 588.82 meters and will generate 366.48 gigawatt hours of electricity annually. The project will sell electricity worth Rs 2.10 billion annually. Three turbines with a capacity of 20.37 MW will be used to generate 61.11 MW of electricity. The headrace tunnel will be 8 kilometers long. The dam structures will be constructed at Narpa Bhumi Rural Municipality and the powerhouse will be constructed at Naso Rural Municipality. The electricity generated from the project will be connected to Nepal Electricity Authority’s under-construction substation at Dharapani of Manang.

The bank will have a loan of Rs 9.63 billion and a capital of Rs 3.21 billion of the total cost of the project. Singati Hydro Energy Limited will be the main investor in the company. The project has already started the construction of the access road and the target is to complete the construction within next 3 years by starting the construction of main structures of the project within 3 months