Sanima Mai Hydropower Project (MHP)

Active

In April 2010, the private consortium Sanima Mai Hydropower Pvt. Ltd. signed a power purchase agreement (PPA) with the Nepal Electricity Authority to begin supplying power in 2014. The consortium then a received power generation licence from the Ministry of Energy on Sept. 14, 2010 to develop the Mai Hydropower Project; the license was valid until August 28, 2045. The 15.6 MW, run-of-river hydro project was to be constructed on the Mai Khola river, in the Chisapani, Danabari and Soyak Village Development Committees (VDC) of Illam district. The power was to connect a 10.6km 132 kV transmission line to the Integrated Nepal Power System (INPS) at Nepal Electricity Authority (NEA)’s proposed Godak substation in the Ilam district. Sanima Mai Hydropower Pvt. Ltd. was a subsidiary of Sanima Hydropower (P) Ltd. (SHPL)[Nepal]. The total project cost was estimated at 2,658 million NPR (US $36.3million USD), and the Cost per kW installed Capacity 2,185 USD/kW. On November 18, 2010, the Mai Hydropower Project reached financial closure with the signing of a Rs 2.02 billion (US $27.6 million) loan agreement from 11 banks with Sanima Mai Hydro Ltd. The banks and financial institutions involved in the consortium were Laxmi Bank (Rs 304 million), Nabil Bank (Rs 294 million), DCBL Bank (Rs 223 million), Bank of Asia Nepal (Rs 178 million), Janata Bank Nepal (Rs 178 million), Nepal SBI Bank (Rs 178 million), Kumari Bank (Rs 178 million), Bank of Kathmandu (Rs 134 million), Siddhartha Bank (Rs 134 million), Machhapuchchhre Bank (Rs 134 million) and Ace Development Bank (Rs 90 million) committed a project finance (term loan) for the project. The project was expected to become operational in August 2014 and contribute around 103.19GWh of power annually to the country. In August 2012, the project reached financial closure on the expansion from 15.6MW to 22MW, at a total cost of Rs. 400 million (US$4.5 million). Refinancing was provided (for expansion) Laxmi Bank, Nabil Bank, DCBL Bank, Bank of Asia Nepal, Janata Bank, Nepal SBI Bank, Kumari Bank, Bank of Kathmandu, Siddharta Bank, Machhapuchchhre Bank, Ace Development Bank, Nabil Bank, Bank of Kathmandu. Debt equity ratio was 75/25 http://www.maihydro.com/index.php?page=news GlobalData Financial Deals Tracker, Sanima Hydropower Announces Project Financing for Refinancing of Mai Hydropower Plant, Nepal, 30 August 2012.