Kathmandu. SN Energy is to provide co-financing loans under the leadership of Sanima Bank for the Super Seti Hydropower Project under construction in Machhapuchhre Rural Municipality of Kaski District under Gandaki Province.
The project, which is invested by NECO Insurance, will receive co-financing loans under the leadership of Sanima Bank with the participation of Siddhartha Bank. For this, a financial management agreement has been concluded between the officials of SN Energy and the banks today to disburse a loan of Rs. 2.5 billion from Sanima Bank and Rs. 1.28 billion from Siddhartha Bank.
This project is of 24 MW. The construction work of the project has started on 18 Falgun. To prevent energy from being wasted, the company has already started the process of upgrading the project to 30 MW within the construction period. The construction period of the project will be 3 years and the company has set a target to start production from 2084 Kartik after 3 years.
Currently, the construction work of the project is progressing at a rapid pace. The total construction cost of this project is Rs. 5.04 billion and the cost per megawatt is Rs. 210 million. However, the company estimates that after the upgrade, the cost per megawatt will decrease by about Rs. 20 million to Rs. 190 million per megawatt.
The capital required for the construction and operation of the project will be managed by 25 percent founding investors and 75 percent through bank loans. The company has stated that after a certain period of time, local residents of this project and the general public will be able to take ownership as shareholders after the initial issuance of shares.
The founding investor of the project is the country’s renowned non-life insurance company Neco Insurance, which has invested 20 percent of the current capital and promoted the project, while other investors include successful energy entrepreneurs with long experience in energy development. Among them, there is experience in successfully operating other hydropower projects.
Chief Executive Officer Ashok Kumar Khadka is representing Neco Insurance as the chairman of the company’s board of directors. The company has urged everyone to be confident that the construction of the project will be completed within the estimated cost and within the specified period and production will commence as a result of the investment of Neco Insurance and its experienced personnel in the energy sector.
After the start of production, the plan to connect it to the national distribution system has been ensured and a power purchase agreement has also been concluded with the Nepal Electricity Authority. After the project is completed and production begins, not only its investors will benefit from this project, but also the local residents will benefit in the form of infrastructure development, the state will receive revenue from various sources, the general public will benefit in the form of employment, and it will also contribute significantly to the growth of the country’s energy.
