REC, PFC sign MoU for financing 600 MW hydro project in Bhutan

REC Limited and Power Finance Corporation Limited (PFC) have signed an MoU with Kholongchhu Hydro Energy Limited (KHEL) for financing of a 600 MW hydroelectric project (HEP) at Trashiyangtse, Bhutan. The project is proposed to be funded at a debt-equity ratio of 70:30. As per the MoU, REC will extend a rupee term loan of Rs 20.29 billion. The balance shall be extended by PFC (Rs 20.29 billion), the National Pension and Provident Fund, Bhutan (Rs 2 billion), and the Bank of Bhutan (Rs 2 billion). KHEL is a 50:50 joint venture between SJVN India and Druk Green Power Corporation (Bhutan), set up for developing the 600 MW Kholongchhu HEP in eastern Bhutan.