Kathmandu – In a landmark development aimed at promoting Nepalis working abroad as stakeholders in national hydropower projects, the 77.5 MW run-of-river Ghunsa Khola Hydropower Project has secured its financial foundation. The project, spearheaded by Remit Hydro Limited, will be constructed in Faktanglung Rural Municipality-5 and 6 of Taplejung District, utilizing the flow of the Ghunsa River.
On Sunday, a multi-party loan agreement was signed, marking a significant milestone for the NPR 18.13 billion project. Five major financial institutions have committed NPR 12.7 billion in investments: Laxmi Sunrise Bank Limited (NPR 5 billion), Hydroelectricity Investment and Development Company Limited (HIDCL) (NPR 3 billion), Citizen Investment Trust (NPR 2 billion), Machhapuchhre Bank (NPR 1.45 billion), and Everest Bank (NPR 1.25 billion).
The project’s funding will be structured with 51% institutional equity and 49% public investment. Institutional equity includes contributions from the Nepal Electricity Authority (21%), HIDCL (15%), and the Electricity Generation Company Limited (15%).
Of the public investment share, 29% has been exclusively reserved for Nepalis working abroad, reflecting the project's innovative approach to integrating the diaspora into national development. Additionally, 10% of the shares are allocated to local residents impacted by the project, while another 10% will be available to the general public.
The project’s construction is projected to be completed within four years. Preliminary infrastructure work, including access roads to the powerhouse and residential facilities as well as two bailey bridges over the Tamor River, has already been completed.
This initiative is a significant step forward in leveraging hydropower to boost national development while ensuring inclusive participation from the Nepali diaspora, local communities, and the general public. Once operational, the project is expected to contribute substantially to Nepal’s renewable energy capacity and economic growth.
Ecosphere News
Your trusted source for environment and development updates.
