Global investment bank InvestBank has acquired majority stake in two hydroelectric projects in Nepal.
The company has bought 70% stake in the 440MW Tila-1 hydroelectric project being built at a cost of $649m and the 420MW Tila-2 hydroelectric project, being built at a cost of $555m.
Both the projects will be located on the Tila River in the Kalikot district of the Karnali zone in the South Asian country.
InvestBank, along with Bastola Organization’s affiliate S.C. Power Company, will develop the Tila-1 hydroelectric project, which will be followed by the construction of the Tila-2 hydroelectric project.
Each project is expected to have a construction period of five years.
The Nepal Electricity Authority and India’s KSK Energy Ventures will purchase the electricity generated from both the projects.
InvestBank analyst Maxwell Pedroza said: "We are excited to cooperate with Bastola Organization to develop these hydroelectric power projects.
"These projects will improve the standard of living and the health of the local people and will help prevent deforestation."
Though water being the key energy source in Nepal, only 1.7% of the potential 42,133MW of hydropower resources in the country is being exploited.
Image: The Nepal Electricity Authority and India’s KSK Energy Ventures will purchase the electricity generated from both the hydroelectric projects. Photo: courtesy of markuso / FreeDigitalPhotos.net.