KATHMANDU: Non-Resident Nepali Association (NRNA) ICC Vice-President Khagendra Neupane has decided to invest Rs 4.60 billion for the 22.50 MW Jhilgad Hydropower Project to be constructed in Aathbiskot Municipality of Rukum West.

Nepal Bank and Nepal Infrastructure Bank (NIFRA) have entered into a crucial phase of the construction of the project with an agreement to jointly invest Rs 3.36 billion under the leadership of Rastriya Banijya Bank. The remaining Rs 1.23 billion will be invested by the promoters’ equity.

The project is expected to generate 133.45 gigawatt hours of electricity annually. The construction period of the project has been fixed at 33 months. Shangrila Hydropower Pvt. Ltd., the promoter company, is preparing to expedite the construction work as soon as the financial management is finalized as most of the preparatory work including the purchase of necessary land has been completed.

Chairman of Shangri-La Hydropower and vice-president of NRNA ICC Khagendra Neupane said that the completion of the financial management is an important achievement for the construction of the project. He said that the agreement with the banks has ensured a large part of the investment required for the project.

Neupane said that the hydropower sector should be promoted as an important basis for Nepal’s economic development. He said that the project has been taken up with the objective of converting Nepal’s water resources into production and increasing energy production as well as expanding employment, infrastructure and economic activities at the local level.

“With the completion of the financial management, the foundation has been prepared to move the project forward as per the set target. Our group has the experience of completing the project before the scheduled time. No stone will be left unturned to complete the project within the stipulated time and bring it into power generation,” Neupane said.

Krishna Prasad Ghimire, managing director of Shangri-La Hydropower, said that the construction work will be carried out in a planned and expedited manner as most of the preparatory works including land purchase have been completed. According to him, the construction work will be carried out in a planned and expedited manner as the financial resources have been assured.

Ghimire said that time and cost management will be given priority in the construction of the project. He said that the technical, managerial and financial aspects will be taken forward in parallel as per the target of completing the project within the stipulated 33 months construction period and starting power generation.

“After the completion of the financial management, the necessary resources for the construction of the project have been assured. Most of the preparatory work has been completed and now we have reached the stage of expediting the construction work. Our main goal is to complete the project in a quality manner within the stipulated time,” Ghimire said.

The group promoting the Jhilgad project has already constructed and commissioned the 4.55 MW Vikas Hydropower Project in Gorkha. The project was completed about six months ahead of schedule. Bikash Hydropower Company has already been listed on the stock market by issuing public shares.

The group is also constructing the 4.6 MW Budhi Gandaki Hydropower Project in Gorkha. According to the company, preparations are underway to bring the project to power generation within the next six months.

The agreement was signed by Shangri-La Hydropower Chairman Khagendra Neupane and Chief Executive Officer of Rastriya Banijya Bank Devendra Raman Khanal. Representatives of Nepal Bank and Nepal Infrastructure Bank were also present on the occasion.

The project has now reached the decisive stage of construction after the investment structure of Rs 4.60 billion was ensured with the loan investment of the three banks and the equity of the promoters. The 22.50 MW project is expected to generate 133.45 gigawatt hours of electricity annually and is expected to contribute to the power generation and local economic activities of Rukum West.

The expansion of investment in the hydropower sector by the promoter group including Neupane led by NRNA is also seen as an effort to mobilize capital in the productive sector in the country. Neupane believes that linking the capital, skills and experience of Nepalis living abroad to the development of hydropower in the country will further contribute to the economic development of the country.

The Jhilgad project has also moved ahead amid the experience of completing the Bikash Hydropower Project ahead of the scheduled time and the continuation of the construction of Budhi Gandaki Hydropower. Therefore, it has become the main challenge and test for the company to not only raise investment but also to convert the investment of Rs 4.60 billion into 22.50 MW of power generation within the stipulated 33 months. The promoter group led by Neupane and the management led by Ghimire have committed to complete it on time.