Kathmandu: Premier Insurance Company has paid above Rs. 1.34 billion in claims against ‘erection all risk’ insurance coverage to Madhya Bhotekoshi Jalvidyut Company Limited(MBKJCL). The company has announced that it is the largest claim ever paid since the inception of the company.
Madhya Bhotekoshi Hydropower also known as Middle Bhotekoshi Hydropower has received a net claim of One Billion Thirty Four Crore Seventynine Lakh Fortysix Thousand rupees. A total of 95 percent of the claim amount has been received from foreign reinsurance companies alone. The rest of the claims were paid by Nepal Reinsurance Company.
Sahdev Tiwari, deputy chief executive officer of the Premier has informed that the entire structure of the project was damaged due to floods in Bhadra last year. The damage was caused due to floods in the Bhotekoshi River of Sindhulpalchowk. The proposed capacity of the project is 102MW. MBKJCL is the sister concern of Chilime Hydropower Company Limited. Chilime Holds a 37 percent stake in MBJCL.
The project has already missed several deadlines for project completion. It project began in 2013 with the projection that it would generate electricity in 2016. Nepal Electricity Authority is bearing heavy losses due to the price escalation of the project.
