June 6: Four commercial banks are financing Upper Sanigad Hydropower project, to be constructed in Bajhang district. The hydropower project is promoted by Bungal Power Company. The 10.7MW project is getting Rs 1.815 billion consortium loan from four commercial banks led by Civil Bank.

A memorandum of understanding (MoU) was signed by the promoter company and the lead investor bank on June 4. Gobinda Gurung, CEO of Civil Bank and Umesh Shrestha of Bungal Hydro signed the MoU.

Apart from Civil Bank, Nepal Investment Bank, Prabhu Bank and Laxmi Bank will be investing in the project. The four BFIs will invest 75 per cent i.e. Rs 1.36 billion of Rs 1.81 billion total expected investment of the project.

The project targets to generate electricity by September 15, 2019 and connect the electricity to Chamelia by constructing its own transmission line.