The 420 MW Tila-2 Hydropower Project to be built in Kalikot has successfully secured an investment of Rs 70.07 Arba after signing a financial agreement with a consortium of banks.
Huge Investment Secured for Tila-2
Tila Power Company has successfully completed the financial management for its 420 megawatt Tila-2 Hydropower Project. The project will be constructed in Kalikot district of Karnali province. This financial closure was completed after company signed a loan agreement with several banks and financial institutions led by Everest Bank.
Funding Structure and Participating Banks
Out of the total cost, 75 percent which is Rs 52 Arba 55 Crore will be covered from loan. The remaining 25 percent which is Rs 17 Arba 52 Crore will be managed through equity. Sanima Bank is co-leading this consortium of lenders.
Other banks participating in this project are Prime Commercial Bank, NIC Asia Bank, Global IME Bank, Siddhartha Bank, Nabil Bank, Nepal Infrastructure Bank, Agricultural Development Bank, Muktinath Bikas Bank, and Kamana Sewa Bikas Bank.
Project Design and Electricity Generation
Under this project, dam will be built in Tilaguha Municipality and powerhouse will be constructed in Khandachakra Municipality. The project is a peaking run-of-river (PROR) type and it has goal to run for up to 6 hours daily during peak hours.
It is estimated that project will generate 2,318.79 gigawatt hours of electricity every year. This includes 451.05 gigawatt hours during dry season peak hours, 205.45 gigawatt hours during dry season off-peak hours, and 1,662.29 gigawatt hours during rainy season.
License, PPA, and Share Allocation
Tila-2 got its generation license from Department of Electricity Development on 7 Bhadra 2075. After that, it completed Power Purchase Agreement (PPA) with Nepal Electricity Authority on 7 Kartik 2081 for 296.74 megawatt capacity.
The construction is targeted to complete within four years from starting date. Institutional and individual investors like Stream Investment, Urja Impact Fund, and Robins US are investing in this project. Also, 20 percent shares are allocated for local residents affected by project and general public.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
