June 16: NIBL and the member banks have signed a syndicated facilities agreement of Sanjen Khola Hydroelectric Project (78 MW). Sanjen Khola Hydroelectric Project is being developed by Salasungi Power Limited, a company promoted mainly by China Harbour Engineering Company Limited (CHEC).
CHEC, one of the fortune 500 companies, is a subsidiary of China Communications Construction Company Limited having presence in over 80 countries holding experience in construction, environmental, hydraulic engineering, power plant and energy.
The company's Sanjen Khola Hydroelectric Project, a run-of the river project, is located in Rasuwa district of Province 3 along the Sanjen Khola, a snow-fed river. The project is estimated to generate 78 Mega Watt of energy with a design discharge of 9.10 cumec per second and the net head of about 1000 meters.
The total project cost is estimated at Rs 13.20 billion with a 70:30 debt-equity ratio financing. The consortium led by Nepal Investment Bank Limited has Kumari Bank and Citizens Bank as partners with 92 percent of the equity being held by CHEC and 8 percent by the Nepali partners.