Kathmandu. The financial management of the 216 MW Upper Seti Hydropower Project to be constructed in Bajhang of sudurpaschim state has been completed.

Machhapuchchhre Bank, Hydroelectricity Investment and Development Company, Laxmi Sunrise Bank, Nepal Investment Mega Bank, Prabhu Bank, Nepal SBI Bank, NIC Asia Bank, Krishi Bikas Bank, Lumbini Bikas Bank, Shangri-La Development Bank, Kamna Sewa Bikas Bank and I.C.F.C. Bank are participating in the project to be constructed at Saipal Rural Municipality-4 and 5 of Bajhang on Friday. Co-finance management with finance has been formally completed.

Kumari Bank and Samriddhi Energy Limited, the promoter company of the project, signed a financial management agreement amidst a special ceremony held in Kathmandu. Chief Executive Officer of Kumari Bank Ram Chandra Khanal and Chairman of Samriddhi Energy Limited Shailendra Guragain signed the agreement on behalf of their respective organizations.

Kumari Bank, one of the major commercial banks in Nepal, is currently investing in more than 65 hydropower and solar power projects focusing on the development of the energy sector.

The bank has so far contributed to the financial management (including co-financing) of projects with a capacity of more than 2,000 MW by investing more than Rs 70 billion (including committed). Some of them are in operation and others are under construction. These projects are contributing significantly to increasing the power supply to the national transmission line.

About Rs. Necessary financial preparedness and due diligence study of the project, which will be constructed at a cost of Rs 41.6 0 billion, will be taken forward in the ratio of 70 percent loan and 30 percent self-capital has also been completed.

The project is based on a semi-reservoir river flow system with a peaking capacity of 4.5 hours. The design charge of the project is 34.1 cubic meters per second, the gross head is 758.9 meters and the net head is 735.6 meters.

A provision has been made to release 1.41 cubic meters per second of water into the Seti river continuously throughout the year to maintain the biological flow below the dam of the project.

The Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) has been concluded on July 15, 2080 and the power generation permit has been obtained on May 1, 2081. The project is expected to be completed within five years and will start commercial production by July 15, 2031.

The project is expected to generate 1,229.6 gigawatt hours of electricity annually. It will produce 834.49 GW of hawar in the rainy season and 395.11 GW in the dry season. It will have 163.63 GW of hover peak energy. In the dry season, the electricity rate of peak energy is Rs. 10.55 and non-peak energy rate is Rs. It will be 8.40.

The 220 KV power generated will be constructed at the project site. 30 km long 220 kv from the switchyard. National transmission grid via double circuit transmission line

The company limited’s proposed 400 KV. Bajhang sub-station will be connected to the national grid.

The total length of the access road required for the project will be 25 kilometers. The cost per megawatt of the project is around Rs. 19.25 crore and in the first year it is estimated to be Rs. It is expected to earn Rs 7.67 billion.

Samriddhi Energy Limited, the promoter company of the project, is collecting 30 percent of the project through various institutional and individual investors. Dr. Shailendra Guragain There are investors like Bhogendra Kumar Guragain and Dinesh Gurung.

The Upper Seti Hydropower Project is seen as another significant achievement in the history of hydropower development in Nepal with the expectation of expanding local infrastructure, employment generation, energy self-sufficiency and positively impacting the overall economic prosperity of the Far-Western Province. It is believed that the completion of the project will contribute decisively to realizing the dream of the bright far-west.