Kumari Bank leads investment in 90MW Marshyangdi Hydropower Project

KATHMANDU: A consortium of banks, led by Kumari Bank Limited, has signed an investment agreement for the construction of a 90MW semi-reservoir-based hydropower project on the Marshyangdi River.

The river flows through Palungtar Municipality in Gorkha, Rainas Municipality in Lamjung, and Bhanu Municipality in Tanahun.

The agreement was signed on the 18th of this month between Anup Acharya, Chairman of M.A. Power Pvt. Ltd., and Ramchandra Khanal, CEO of Kumari Bank Limited.

The project will be developed with a joint loan investment of Rs 15.1875 billion from Kumari Bank, Prabhu Bank, Siddhartha Bank, and Agricultural Development Bank, among others.

Equity investment will be provided by Anup Acharya, Haribabu Neupane, and Deepak Baral. Additionally, Dolma Impact Fund has initiated a due diligence study to invest up to 49% in the company.

The same group is currently in the final phase of constructing the 22MW Seti Khola Hydropower Project through Seti Khola Hydropower Limited.

The project signed a power purchase agreement with the Nepal Electricity Authority (NEA) on Kartik 1, 2080 (mid-October 2023). The required commercial operation date (RCOD) is set for Baisakh 22, 2086 (May 5, 2029).

The project’s Environmental Impact Assessment (EIA) report has been submitted to the concerned authorities for approval.

The electricity generated will be transmitted via a 220kV single-circuit transmission line covering 11.6 kilometers to connect with NEA’s Markichowk substation at 220/132kV.