The 454 MW Kimathangka Arun semi-reservoir hydropower project is planned to be constructed entirely with domestic capital. A financial model has been prepared whereby 70% of the total project cost, amounting to Rs 68.55 arba, will be financed through loans, while the remaining 30%, or Rs 29.3 arba, will be raised as equity. The project will be developed and executed by the government-established hydropower company itself.
For debt financing, the project plans to secure co-financing through Hydro Electricity Investment and Development Company Ltd. (HIDCL), Employee Provident Fund, Citizen Investment Trust, Social Security Fund, insurance companies, and banks or other financial institutions. Including interest during the construction period, the total estimated project cost is Rs 97.94 arba. The equity portion will be raised by issuing shares to company founders, non-resident Nepalis, Nepalis working abroad, local residents of SankhuwasabhaтАУBhotkhola Rural Municipality affected by the project, members of extremely vulnerable families, and the general public.
Energy Minister Kulman Ghising has instructed the project authorities to update the cost estimates and immediately advance the financial management process. He has also directed the companyтАЩs board to approve and submit the proposed investment framework and institutional equity plan without delay.
To date, the project has incurred Rs 73.14 million in study and pre-construction expenses. Land for office buildings and staff housing has already been acquired. Compensation and valuation for land needed for the dam, reservoir, powerhouse, and other structures have been determined, with an estimated cost of approximately Rs 45 million.
The hydropower project is expected to generate 269 million units (2,690.97 GWh) of electricity annually. Seasonal distribution of production is projected as 47.31 million units for peak winter, 35.33 million units for off-peak winter, and 186.46 million units during the monsoon season. Annual revenue from electricity sales is estimated at Rs 16.91 arba.
The proposed shareholding structure of the hydropower company includes the government with 30%, Nepal Electricity Authority, Employee Provident Fund, and Nepal Telecom each with 10%, Citizen Investment Trust with 5%, HIDCL with 4%, and National Life Insurance Company with 2%. The remaining 29% of shares will be allocated to the general public.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
