NPBCL, Canadian firms sign pact

- POST REPORT, Kathmandu

Aug 23, 2014-

Nepal Purwadhar Bikash Company Ltd (NPBCL) and three Canadian companies have signed a “Master Agreement” to finance $280 million for the proposed Kulekhani-Hetauda Tunnel Highway.

NPBCL Chairman Kush Kumar Joshi and representatives of Canada’s Infrabanx Corporation, Shej Global Canada, and Global Financial Associates Canada signed an agreement to this effect here on Saturday, according to an NPBCL statement. NPBCL had so far only mobilised investment from Nepalis and Non-resident Nepalis.

Under the deal, the Canadian companies have agreed to make available the amount for a minimum period of 15 years, which will be paid back from the income generated from the operation of the road.

 “The details will be worked out in the Loan Agreement,” states NPBCL. It said the Canadian companies are renowned international firms having a strong and adequate capital base and proven experience and expertise in exploring appropriate investment opportunities for national and international level capital and mobilising them in a secured way to finance the projects of economic development and infrastructure construction.

The under-construction Tunnel Highway is the first every mega road project undertaken by the Nepali private sector. With an estimated construction cost of $350 million, the 58-km long road will pay out annual earnings of 16.68 percent approximately, according to the company.

For this investment, experts from EXP, an American company has been conducting a Technical Due Diligence and those from The Total Infra Solution are doing Financial Due Diligence.

NPBCL has already completed technical designs and submitted a report on local environment impact assessment to the government after comprehensive discussions and dialogue with local stakeholders.

Published: 24-08-2014 09:33

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