The 341 MW Budhigandaki Hydropower Project, Nepal’s largest-ever hydropower project to be built by the domestic private sector, has secured financial closure.

Ten banks and financial institutions have agreed to invest Rs 70 billion for the construction of this semi-reservoir-type project. Nepal Investment Mega Bank is leading the consortium, with Nabil Bank, Laxmi Sunrise Bank, and Global IME Bank as co-lead banks. Six other banks and the Hydroelectricity Investment and Development Company Limited (HIDCL) are also part of the investment group.

According to Sushil Thapa, one of the investors, the total estimated cost of the project is Rs 70 billion, with 75 percent (Rs 52.5 billion) to be financed through loans and 25 percent (Rs 17.5 billion) through equity. Sahas Urja will lead the equity investment with a 51 percent share (Rs 8.925 billion), and Times Energy Pvt Ltd is the project promoter.

The project, a peaking run-of-the-river (PRoR) type, will be built in Chumnubri and Dharche Rural Municipalities of Gorkha. It will feature a reservoir allowing five hours of daily power generation. Electricity will be generated through six underground Pelton turbines, each with a capacity of 57 MW.

The company targets to begin commercial production by December 30, 2030, with an expected annual generation of 1,867 GWh. The electricity will be connected to the under-construction Ratmate substation through a 45-km 220 kV transmission line supported by the MCC.

This project surpasses the 285 MW Tamor project which is currently the largest private sector hydropower project, setting a new milestone in Nepal’s energy sector.

Source: Republica