Kathmandu, Nov 30: The 1,063 MW Upper Arun hydropower project in Sankhuwasabha, led by Nepal Electricity Authority (NEA), plans to issue Rs 12.95 billion in shares to non-resident Nepalis (NRNs) and Nepalis working abroad.

The total project cost, excluding interest, is estimated at USD 151.27 million, or Rs 213.29 billion at current exchange rates. Including interest during the seven-year construction at 7 percent, costs rise to Rs 239.79 billion. Equity will cover 30 percent (Rs 71.94 billion), and the remaining Rs 167.85 billion will be financed through loans.

Upper Arun Hydro-Electric Limited submitted the financial plan to NEA, which the board approved for government consideration.

Minister Kulman Ghising said the structure allows NRNs, migrant workers, affected communities, and the public to invest. Equity is split 51 percent for founders and 49 percent for public shares, with 18 percent of public shares reserved for NRNs and overseas workers. Residents, disadvantaged regions, and the promoter’s staff will also receive portions.

NEA will hold 41 percent of founder shares, equivalent to Rs 29.49 billion. Loans will come entirely from internal sources, with 45 percent from concessional co-financing by funds, banks, and insurance companies. Energy bonds will cover 30 percent of financing.

Annual electricity output is projected at 453 million units, with first-year revenue of Rs 27.9 billion, rising to Rs 34.59 billion over eight years with 3 percent annual escalation.

Construction continues in challenging terrain, including a 21-kilometer access road and a 70-meter steel arch bridge connecting the powerhouse to the Koshi Highway.

People’s News Monitoring Service

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