NEA Tanahun HPP

distressed

The Neap Electricity Authority (NEA) was planning the development of the 140MW Tanahun hydropower plant. The project was to be 74% owned by NEA, and 26% by the consultant working with NEA. That consultant was to hold the equity share for 10 years, upon which NEA would purchase it back. Construction was expected to start in March 2014. Commissioning was expected for January 2020. The PPA will have to by at least Rs.7/kWh to cover cost, reportedly (US$0.0813). The project has applied for a construction license, and the MoE is preparing a draft PPA. The project received pledges from ADB, JICA and EIB towards US$391 million in grants and soft loans: ADB: US$38 million (grant) ADB: US$123 million (concessional loan, @1%) JICA: US$180 million (concessional loan, @0.01%) EIB: US$50 million (concessional loan, @1%) Total funding also includes government funds of Rs.2 billion (US$23.2 million), and other equity of US$48 million. The Kathmandu Post: ADB, JICA, EIB pledge US$391m for 140MW Tanahun hydel project, 12 August 2012