Funds pour in for projects worth 57 MW

Funds pour in for projects worth 57 MW
Chamelia, Raghughat on fast track
eKantipur.com, 27-Sep-2007
BY BIKASH SANGRAULA

The government has sealed loan commitments of US $ 45 million and Rs 2 billion for construction of the 30 megawatt (MW) Chamelia project and the 27 MW Raghughat project respectively. Additionally, the government has received loan commitment of Rs 1 billion for the construction of three high voltage transmission lines to link Nepal's national power grid with the Indian power grid.

The Export Import Bank of the Republic of South Korea signed a loan commitment of US $ 45 million for the Chameliya project on Wednesday, according to Arjun Kumar Karki, managing director of Nepal Electricity Authority (NEA). The loan will be used for electro-mechanical and transmission line components of the project.

Similarly, India has extended Rs 2 billion for construction of the 27 MW Raghughat project, and another Rs 1 billion for construction of three high-voltage transmission links, Karki said.

The Indian line of credit of Rs 3 billion was agreed upon between the government of Nepal and Export Import Bank of India during the visit of Finance Minister Dr Ram Sharan Mahat to India recently.

Both the projects are scheduled to be completed in 2011. "We will call civil tenders for Raghughat within six months," Karki added. Raghughat project is estimated to cost Rs 3 billion.

For Chamelia, NEA will ask OPEC for US $ 10 million for civil works. The US $ 78.9 million Chamelia project is being built 950-km west of Kathmandu on Chameliya River, a tributary of Mahakali River in Darchula district. The government of Nepal is funding US $ 7.5 million as allocated budget, which, along with the US $ 45m loan, will suffice for the electro-mechanical component of the project.

For civil works of Chamelia, apart from seeking US $ 10 million from OPEC, NEA targets to collect the remaining money by issuing power bonds, Karki said.

The China Gezhouba Water and Power Group Co Ltd has been awarded the civil contract for Chamelia.

Reference
Water Magazine