Laxmi Sunrise led consortium signs facilities MoU with Upper Marshyangdi-1 Hydropower

KATHMANDU: A consortium of banks led by Laxmi Sunrise has signed a facilities agreement with Upper Marshyangdi Hydropower Company Pvt. Ltd. to finance 102 Megawatts peaking run-of-the-river Upper Marshyangdi-1 Hydropower Project.

The project is being constructed at Marshyangdi River of Lamjung district with an estimated project cost of Rs 21.40 billion.

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

Upper Marshyangdi Hydropower-1 had received the issuance of the Generation License from the Department of Electricity Development on Dec 25, 2018 and subsequently signed the Power Purchase Agreement with Nepal Electricity Authority on December 24, 2024.

The company is being promoted by KC Group and Keyal Group.

The banks have committed to financing approximately 74.77% of the project cost while the remaining 25.23% will be invested by the project promoters.

The Project Finance (Term Loan) commitment from Laxmi Sunrise is Rs 7 billion whereas the commitment from Global IME Bank (co-lead bank) is NPR 6 billion and Prabhu Bank is Rs 3 billion with a total term loan of Rs 16 billion.

Upper Marshyangdi-1 Hydropower Project is anticipated to generate an estimated 583.03 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.