February 25: A consortium of five financial institutions led by Laxmi Bank signed a facility agreement with Swet Ganga Hydropower and Construction Ltd on February 22 to finance the 28.1 MW Lower Likhu Hydropower Project being constructed at Likhu Khola of Ramechhap and Okhaldgunga districts. A joint statement issued by the BFIs states that the project is being built at a cost of around Rs 5.59 billion.

According to the statement, Swet Ganga Hydropower signed the Power Purchase Agreement with Nepal Electricity Authority on December 29, 2016 and the project received Generation License from the Ministry of Energy on April 10, 2016. The company is promoted by Sanima Group and Dolma Impact Fund.

The banks said they have committed to financing 75 percent of the project cost of Rs 4.19 billion with the remaining 25 percent invested by the promoters and general public. The project finance (term loan) commitments from the banks include Laxmi Bank (Rs 1.24 billion), Kumari Bank (Rs 1 billion), Century Commercial Bank (Rs 750 million), Prabhu Bank (Rs 400 million) and Hydroelectricity Investment & Development Co (Rs 800 million).

Swet Ganga Hydropower expects to contribute around 170.84 GWh of power annually to the nation and will be one of the large sized independent power producers (IPP) when it comes into operation in December 2021.