A consortium of 4 commercial banks, led by Machhapuchhre Bank Limited and participating Banks Laxmi Sunrise Bank, NCC Bank,Sunrise Bank, Hydro Electricity Investment and Development Company (HIDCL) and Rastriya Banijya Bank Limited has signed Loan Facility Agreement for Rs. 4.35 billion with Peace Energy Company Pvt. Ltd., Nepal for the construction of 28.1 MW Upper Kabeli Hydroelectric Project, on 8th May 2024.

This project is a direct foreign investment project. The US company Tesla Hydro holds a 78% investment in Peace Energy. A team of NRN businessmen and entrepreneurs based in the United States of America has established Tesla Hydro USA with the objective of investing in, developing, and managing hydropower projects in Nepal. Madan Upreti serves as the executive chairman of both Tesla Hydro USA and Peace Energy Company Nepal. The company has informed that it will lead the strategic planning and implementation of the project under Madan Upreti’s leadership.

For the project, 75 percent of the total cost of NPR 5,064,690,000 from banks will be funded through a loan investment of NPR 4,235,000,000. Machhapuchhre Bank will invest NPR 1,485,000,000, HIDCL NPR 1,000,000,000, Lakshmi Sunrise Bank NPR 750,000,000, and National Commercial Bank NPR 100,000,000, totaling NPR 4,235,000,000. Similarly, NPR 1,041,190,000 will be invested by shareholders and promoters, constituting 25 percent. The company has informed that this project will issue an IPO for locals and the general public.

Tesla Hydro USA has invested 78.5% in Peace Energy Company for the purpose of developing the 28.1 MW Upper Kabeli Hydropower Project in Taplejung District. The company claims that this FDI of 780 million USD will be an important step towards achieving sustainable solutions in the energy sector.

“As a pilot project, we are committed to establishing Peace Energy Company Pvt Ltd as a respected energy company by promoting a corporate culture based on honesty and transparency,” said Dr. Madan Upreti. “Our focus on capacity building and talent retention reflects our dedication to long-term success,” he added.

Speaking at the program, former deputy managing director of Nepal Electricity Authority and energy expert Prabal Adhikari mentioned that although developing hydropower in Nepal is difficult, bringing direct foreign investment from companies is commendable. The Chief Executive Officer of HIDCL, Arjun Gautam, suggested the company make this project more expansive and build larger projects. Machhapuchhre Bank CEO Santosh Koirala expressed confidence that the project will be completed on time.

The Upper Kabeli Hydropower Project in Taplejung District encompasses Sirijanga Village No. 1, 2, 4, and Sidingwa Rural Municipality Ward No. 5 and 6. The total capacity of the project being constructed by Peace Energy Pvt Ltd is 28.1 MW, with a water flow of 17.29 cubic meters and a head of 192.010 meters. It is proposed to connect the electricity produced by the project to the Amarpur substation. The commercial production date of the project is December 2027.