US company Panda Energy has announced the closure of the financing for a 36 MW hydropower project in Nepal. Construction of the Upper Bhote Koshi hydroelectric plant began early in 1997.

The plant is due to enter commercial service in the last quarter of 1999. It is located 96 km north of Kathmandu, close to the border with China. Power from the plant will be sold to the Nepal Electricity Authority (NEA) under a long term power purchase agreement.

The Upper Bhote Koshi plant is being developed by Panda Energy in conjunction with the MCN Investment Corp., Himal International Power Corp. of Nepal and Chicago-based Harza Engineering.

Non-recourse financing for the scheme is being provided by organizations including the International Finance Corp. and DEG-German Investment.