Posted 2 years ago

 KHEL SIGNS MOU

[CLOSED] This post is no longer valid

 KHEL SIGNS MOU

Tags:

KHEL signs MoU for Nu. 40.58B loan

March 13, 2021|Kuensel
Staff Reporter  

The Kholongchhu Hydro Energy Limited (KHEL) signed a Memorandum of Understanding (MoU) with Power Finance Corporation of India Limited (PFC) and Rural Electrification of India Limited (REC) for the financing of Kholongchhu Hydro Electric Project (KHEP) in Trashiyangtse on March 9.

The state-owned PFC and REC are power sector financers under Ministry of Power. KHEL signed the MoU in the presence of top officials from KHEL, SJVN, DGPC, PFC, and REC.

REC and PFC will each finance INR 20.29 billion (B) at a negotiable interest rate of 9.75 percent per annum.

The two governments have a formal understanding exchanged for determining tariff for sale of power which will enable payment of loan besides meeting all other costs and earning adequate profit margin for the joint venture company.

The repayment is expected to be 18 years six months from the commercial operation date.  The financing of the Nu 54.82B KHEP will be a mix of debt: equity ratio of 70:30.  The National Pension and Provident Fund (NPPF) and Bank of Bhutan (BoB) will finance the remaining Nu 4B in equal proportion.

KHEL Joint Managing Director, Kencho Dorji, said that KHEL and the consortium of PFC and RFC would now take up the process towards finalisation of the loan. Negotiation on the rates, terms and conditions of lending will now begin to complete the loan agreement by end of April.

“With a total contract value of over Nu 20.27 billion of main civil works recently awarded along with a few other contracts, the payment burden of mobilisation and equipment advances now spikes. So far, pre-constructions expenses were met through the funds injected by shareholders,” he said.

“Till the financial closure is achieved, we will have to chamfer down the fund gap of the mobilisation advances of over Nu 1 billion by shareholders’ infusion of equity and the debt sources from the local financial institutions.”

The debt volume of about BTN 44.6 Billion is so far the single largest financing arrangement undertaken outside sovereign borrowings. The debt comprising 70 percent of the cost will be collateralised pari passu on the project assets.

The project is expected to start full throttle by May 2021.

Contact Details

 KHEL SIGNS MOU

SUBSCRIBE NOW

Join Dziseldra today at just Nu. 99/month OR Nu 299 for a year and unlock a world of convenience, empowerment, and endless possibilities. Don't let opportunities slip through your fingers – seize them with Dziseldra!

Subscribe OR I Already Subscribed
  • Get Unlimited and Full Access to all posts from more than 350 Agencies in Bhutan
    Dziseldra tirelessly scout and gather valuable data from hundreds of websites and social media platforms, so you don't have to. Whether it's job vacancies, scholarships, trainings, announcements, tenders, properties, cars, or services – we've got you covered.
  • Get Instant Notifications and Stay Ahead
    Follow your favorite companies, keywords, and tags to create a personalized feed of relevant opportunities. Be the first to know when new listings matching your preferences are posted. With our advanced notification system, you'll never miss out on important updates.
  • Make Use of our Advanced Search Engine
    No more wasting time on endless searches. Our powerful search engine allows you to quickly find what you're looking for. Simply enter keywords and apply filters to refine your results. Say goodbye to tedious scrolling and hello to instant access to Bhutan's largest and most up-to-date opportunity database.
  • Affordable Ticket to Endless Opportunities
    Unlock the world of possibilities for just Nu. 99/month or Nu. 299/year. At a price less than a single meal, invest in yourself for a better life.
  • Support Dziseldra, Empower Yourself
    Dziseldra was free for more than a year and to sustain ourselves we relied on sponsorships and advertisement revenue, including Google ads. However, the support we received fell short of covering our operating costs, let alone compensating our hard working team. Hence, we had to make the difficult decision to transition to a subscription-based model. By subscribing to Dziseldra, you not only gain access to a wealth of information but also help us drive innovation and empower our community. Together, let's forge a path towards a brighter Bhutan
No, subscribing is not a requirement for applying to the jobs advertised on Dziseldra. You can directly contact the recruiting company and follow their application process. However, subscribers gain the benefit of accessing clear instructions on how to apply, provided on all our job posts.

If you can read this, we know you are smart enough, but please don't be pathetic enough to use the service and not be able to pay Nu. 99!!! Donec et orci aliquet nisl suscipit molestie sed sit amet tortor. Duis vel urna ac mi sollicitudin lacinia mollis sit amet lorem. Sed finibus erat nec libero scelerisque fringilla. Morbi at orci sed urna vulputate vulputate. Nulla facilisi.

Donec et orci aliquet nisl suscipit molestie sed sit amet tortor. Duis vel urna ac mi sollicitudin lacinia mollis sit amet lorem. Sed finibus erat nec libero scelerisque fringilla. Morbi at orci sed urna vulputate vulputate. Nulla facilisi.

Donec et orci aliquet nisl suscipit molestie sed sit amet tortor. Duis vel urna ac mi sollicitudin lacinia mollis sit amet lorem. Sed finibus erat nec libero scelerisque fringilla. Morbi at orci sed urna vulputate vulputate. Nulla facilisi. Om ah hum baza guru pema sidi hum. Hum ugyen yul gyi nub jam tsham. Pema gyesar dongpola. yamtshen chen gyi ngedup nye. Pema Jungney Zhesu drag. Khordu Khando mangpe Kor. Choeki jesu dadrup ki. Jingyi lobchir shegsu sel. Guru pema sidi hum.

Contact Details

Post your comment

Subscribe to comment

Login Now

0 Comments

avatar
...

{{ comment.user.name }} · {{ comment.created_at }}

{{ comment.comment }}

No more result :)
No comments yet. Be the first to comment :)