Myagdi: Financial arrangements have been finalized for the Mid Kaligandaki Hydropower Project, which is set to be constructed on the Kaligandaki River. Six commercial banks, led by Nabil Bank Ltd, will invest Rs 9.12 billion in the 66.3 MW project, which is being developed by Hydro Support Pvt Ltd, a subsidiary of IME Group, in Annapurna Rural Municipality, Myagdi.

The project's dam is proposed to be located at Sukebagar in Annapurna-3, with the powerhouse situated in Annapurna-2. The project includes a 4,000-meter tunnel with a height of 115 meters from the powerhouse to the four-way junction. According to Chandra Dhakal, Project Chief and Chairperson of IME Group, infrastructure preparations are underway under the leadership of Nabil Bank.

Physical construction of the project is scheduled to begin in 2024 and is expected to be completed within four years. The financing agreement was signed by Dhakal and Gyanendra Dhungana, Chief Executive Officer of Nabil Bank.

The total estimated cost of the project is Rs 12.93 billion. Nabil Bank, along with Everest Bank, Nepal Investment Mega Bank, Nepal Bank Limited, Rastriya Banijya Bank, and Prabhu Bank, will finance 75 percent of the project. The remaining 25 percent will be raised through promoters and shareholders. Specific contributions include Rs 3.12 billion from Nabil Bank, Rs 2 billion each from Everest Bank and Nepal Investment Mega Bank, and Rs 1 billion each from Nepal Bank, Rastriya Banijya Bank, and Prabhu Bank.

According to the agreement with the Nepal Electricity Authority (NEA), the power purchase rates have been set at Rs 8.40 per kWh for winter and Rs 4.80 per kWh for the rainy season. The project is projected to generate revenues of Rs 1.33 billion from 130 GW in the winter and Rs 1.33 billion from 277 GW in the rainy season.

Plans are also underway to develop five additional hydropower projects along the Kaligandaki River, from Mustang to the Parbat border, based on this model.