Machhapuchhre Bank leads Rs 9 billion loan for Chujung Khola hydropower project

Six banks and financial institutions led by Machhapuchhre Bank have signed an agreement to invest about Rs 9 billion in loans for the Chujung Khola Hydropower Project under construction in Bhotkhola Rural Municipality-2, Sankhuwasabha.

The project, being built by Shangrila Urja Limited, is a 63 MW semi-reservoir-type scheme. In the co-financing arrangement, Prabhu Bank and Lumbini Bikas Bank are co-leaders, while Muktinath Bikas Bank, NIC Asia Bank and Shangrila Development Bank are participating as member banks.

The project's total cost is estimated at around Rs 12 billion. Apart from the loan, about Rs 3 billion will be invested as equity by promoters including Ghalemli Hydro Limited.

This is reportedly the first hydropower project to finalize its financial arrangement since the Bhotekoshi flood of Bhadau 10.