Khare Khola Hydropower Project

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The Khare Khola Hydropower Project was a 24.1 MW run-of-the-river hydro power project located on the Khare Khola River, in the district of Dolakha in Nepal. On May 4, 2014, Consortium Power Developers (Pvt) Limited (CPD) was issued the Generation License by Government of Nepal (Ministry of Energy) that allowed CPD to design, build, own, operate and maintain this project for a period of 30 years from the date of commissioning of the project under the BOOT format. The project would include 2 number of Vertical Shaft Pelton Type turbines and construction of a 9-km long transmission line to connect the power plant to a sub-station at Singati which would be built by the utility company.The power generated by the project could be used for irrigation, industry, commercial and domestic needs of the people and ensure economic upliftment of the region. Consortium Power Developers (Pvt) Limited (CPD), was the special purpose vehicle to implement the project. CPD won the international competitive bid conducted by the Department of Electricity Development (Government of Nepal). The criterion and other details of bidding was not known at the time of collection of this information. A 30-year PPA had already been signed with DoED (GoN). The estimated cost of the project was estimated at US$ 39.3mn (NR 3920mn @99.62 NR/USD). The Project achieved financial closure in October 2014. The project would be financed with a debt of USD 29.5mn (NR 2940 mn) and equity of USD 9.8mn (NR 980mn) at a debt/equity ratio of 75/25. The loan was arranged by a consortium of 10 banks - led by Machhapuchchhre Bank, Nabil Bank, Everest Bank, Global IME Bank, Nepal SBI Bank, Nepal Credit & Commerce Bank, Kumari Bank, Bank of Kathmandu , Siddhartha Bank and Nepal Bangladesh Bank. Civil construction had already begun on the Khare Khola project and it was expected to be commissioned on FY2017. Sponsor Excelling Investment Ltd Sponsor Lama Construction (P.) Ltd Sponsor P S Construction (P.) Ltd. Sponsor Sahiba International (P.) Ltd.