A consortium of banks led by Laxmi Sunrise has signed a facilities agreement with Kaligandaki Gorge Hydropower Pvt. Ltd. to finance 180 Megawatts peaking run-of-the-River Kaligandaki Gorge Hydropower Project.

The project is being constructed at Kaligandaki River of Mustang and Myagdi districts with an estimated project cost of Rs 39.51 billion.

This venture will play a crucial role in Nepal’s renewable energy landscape.

Kaligandaki Gorge Hydropower Project had received the Generation License from the Department of Electricity Development on March 11, 2019 and subsequently signed the Power Purchase Agreement with Nepal Electricity Authority on March 01, 2023.

The company is being promoted by Sanghai Group, Vishal Group and Mr. Gyanendra Lal Pradhan.

The banking consortium has committed to financing approximately 75% of the project cost, with the remaining 25% to be contributed by the project promoters and the public.

Laxmi Sunrise has extended a Project Finance commitment of Rs 9 billion, while co-lead banks Global IME Bank and Siddhartha Bank have committed Rs 7.13 billion and Rs 5 billion, respectively.

Additional participating banks include Himalayan Bank and Nepal SBI Bank, contributing NPR 3 billion each, and Everest Bank with Rs 2.5 billion. Collectively, the total Term Loan amounts to Rs 29.63 billion.

Kaligandaki Gorge Hydropower Project is anticipated to generate an estimated 1,056 GWh of power annually to the national grid and will be one of the large sized independent power producers (IPP) when it comes into operation in June 2029.