|Infrastructure conglomerate GMR Group recently said it has signed a project development agreement for executing the 900 megawatt (MW) Upper Karnali hydro power project with the government of Nepal on 19 September. |
The financial closure of the project (long-term tie-up of debt and equity capital) is expected to be achieved by September 2016 and the commercial operation of the project is expected to start by September 2021.
GMR Group will be exploring a strategic long-term capital tie-up, both debt and equity, for the project at an appropriate time, the company said in a statement.
"The agreement, which is a major milestone for the project, was signed after due approvals of the Investment Board of Nepal and the cabinet of Nepal. This is the largest FDI for Nepal and also the largest investment for GMR Group outside India," GMR said.
The Upper Karnali hydro power project was awarded to the GMR Group through an international competitive bidding process in 2008 on build, own, operate and transfer (BOOT) basis. The project, with a capacity of 900MW, is being developed as an export-oriented project, to be constructed in about five years.