1st February 2025, Kathmandu
Kumari Bank has successfully led the investment in the 90 MW Marsyangdi River Hydropower Project, located across the Gorkha, Lamjung, and Tanahu districts.
$15 Billion Hydropower Investment Nepal
The agreement was signed on February 1, 2025, in the presence of Anup Acharya, Chairman of MA Power, and Ramchandra Khanal, CEO of Kumari Bank. The total investment amounts to NPR 15.18 billion.
Collaborative Effort for Development
Several banks and financial institutions have joined the initiative, including Prabhu Bank, Siddhartha Bank, and Agriculture Development Bank. This collective effort aims to ensure the successful completion of the project. Dolma Impact Fund has also shown interest, planning to invest up to 49% equity after completing the necessary due diligence.
Project Milestones and Timeline
The project will be developed by MA Power, which is in the process of constructing a semi-reservoir-based hydropower facility on the Marsyangdi River. The Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA) was signed on October 18, 2023. The project’s commercial production is scheduled to begin by May 5, 2029 (Baisakh 22, 2086).
Environmental Assessment and Power Transmission
The Environmental Impact Assessment (EIA) report has already been submitted for approval. Once completed, the generated electricity will be transmitted via a 220 kV single-circuit line to the Markichok substation, located 11.6 kilometers away. This will help integrate the power into the national grid, improving the country’s energy infrastructure.
Ongoing Developments and Future Prospects
The project is part of a larger push to increase Nepal’s hydropower capacity. Alongside the Marsyangdi Project, Setikhola Hydropower (22 MW) is in the final stages of construction. Both projects will significantly boost Nepal’s power supply, contributing to the country’s economic growth and sustainability.
Kumari Bank’s leadership in this project highlights its role in Nepal’s growing hydropower sector. The investment and development of such large-scale projects are expected to drive the country’s energy independence and provide a more stable power supply to its citizens.
With this collaboration, Nepal is taking a significant step toward achieving its renewable energy goals and reducing its reliance on imported energy. The Marsyangdi Hydropower Project will be a crucial addition to Nepal’s energy landscape and contribute to its long-term development.
For more: $15 Billion Hydropower Investment Nepal