Project today reported that Asian Development Bank and the Himachal Pradesh government on November 10th 2008 entered into an agreement under which the bank sanctioned a loan of USD 800 million to strengthen its hydropower potential. The loan has been sanctioned under Himachal Pradesh Clean Energy Development Investment Program.

The loan package will help finance the construction of four medium to large run of river hydropower generating plants that will bring in combined capacity of 808 MW for the state.

The projects identified include the Sawra-Kuddu hydroelectric project 111 MW in Shimla district, Stage I, II and III of Kashang project 195 MW in Kinnaur district and Shongtong-Karchham project 402 MW in Kinnaur.

As per report, the total estimated cost of these projects is USD 1.5 billion out of which ADB has financed USD 800 million in the form of a multi tranche financing facility. The loan has a 25 year repayment period.