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Financial closure has been achieved for the 440-megawatt Tila-1 Hydropower Project to be developed in Kalikot. Various banks and financial institutions, led by NMB Bank Limited, will provide loans totaling Rs 44.55 billion for the project, which will be developed by private-sector SC Power Company Pvt. Ltd.

The project, which will be constructed on the Tila River, has an estimated total cost of Rs 59.40 billion. A major portion of the project cost will be financed through loans from banks and financial institutions.

NMB Bank is the lead bank for the financing, while Global IME Bank, Himalayan Bank, and Prabhu Bank are the co-lead banks. Other banks and financial institutions will also participate in the financing.

The financial closure agreement was signed by Dinesh Dulal, assistant general manager of NMB Bank, and Susan Karmacharya, chairperson of SC Power Company.

SC Power Company is led by Susan Karmacharya and his group. According to the generation license, the project has an installed capacity of 440 MW. Under the Power Purchase Agreement (PPA), the project is required to commence commercial operation from December 31, 2030.

The project is estimated to generate revenue of around Rs 11.40 billion in its first year of operation. The projection of more than Rs 11 billion in first-year revenue from a project costing Rs 59.40 billion indicates the project’s strong financial viability.

Large Hydropower Project to Be Developed by Private Sector

Based on installed capacity, the Tila-1 project is the largest hydropower project so far to be developed under private-sector investment and leadership.

With a capacity of 440 MW, it is a significant project among the large hydropower projects being developed by Nepal’s private sector. Of the Rs 59.40 billion required to construct the project, around 75 percent will be financed through debt. The remaining amount will be arranged through equity investment by the promoter.

With financial closure completed, a major portion of the financial resources required to proceed with construction has been secured. The project’s main challenge now will be to complete construction within the specified cost and schedule and bring it into commercial operation by December 31, 2030.

NMB Bank Has Invested in More Than 50 Hydropower Projects

NMB Bank said it has been prioritizing sustainable investment by assessing the environmental and social aspects of its investments in accordance with Nepal Rastra Bank’s guidelines on environmental and social risk management.

The bank said it has also conducted studies and assessments of the environmental, social, and governance (ESG) aspects of the Tila-1 project. According to a statement, as part of its adoption of international best practices, a tool developed by the International Finance Corporation (IFC) was used for the project’s preliminary environmental, social, and governance screening.

Jalasarokar