NMB Bank Leads 65 MW Dudh Khola Hydropower Project’s Financial Closure in Manang
11th August 2026, Kathmandu
NMB Bank Limited has officially concluded the financial closure for the 65 Megawatt Dudh Khola Hydropower Project through a consortium financing arrangement.
NMB Leads Financial Closure
The clean energy infrastructure project is situated in the high altitude terrain of Manang District in Gandaki Province, Nepal.
The project developer, Dudh Khola Hydro Power Company Private Limited, is backed by prominent institutional and individual energy investors.
Key equity sponsors supporting the venture include Mountain Energy Nepal Limited alongside an investment group led by Sita Ram Timilsina.
The formal completion of project financing marks a critical regulatory and operational milestone, securing necessary capital to advance construction and procurement activities in northern Nepal.
Consortium Financing Framework and Project Cost Structure
Under the structured consortium financing agreement, NMB Bank Limited assumes the role of Lead Bank, guiding the syndicate and managing credit administration.
Sanima Bank Limited serves as the Co Lead Bank, contributing significant debt capital alongside the lead institution.
The total capital expenditure for the 65 Megawatt run of river project is estimated at 12.90 billion Nepali Rupees.
Out of the total estimated project cost, approximately 9.67 billion Nepali Rupees will be funded through debt financing provided by the banking consortium.
The remaining capital requirement will be covered via equity contributions from project promoters and institutional investors.
With the inclusion of the Dudh Khola initiative, NMB Bank has expanded its clean energy financing portfolio to encompass over 50 hydropower projects across Nepal.
Official Facility Agreement Signing
The credit facility agreement was formally executed by senior management representatives from both the financing institutions and the project developer.
Assistant General Manager Dinesh Dulal signed the loan agreement on behalf of NMB Bank Limited.
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Chairman Arun Kumar K.C. signed the financing documents on behalf of Dudh Khola Hydro Power Company Private Limited.
The signing ceremony seals the commitment of the banking syndicate to disburse funds according to project construction milestones and technical benchmarks.
Environmental Social and Governance ESG Assessment Practices
In alignment with regulatory requirements issued by the central bank of Nepal, NMB Bank integrates sustainable banking principles across its project finance portfolio.
The bank adheres to the Environmental and Social Risk Management Guidelines 2022 established by Nepal Rastra Bank.
Through its internal Environmental and Social Management System, NMB Bank conducts structured risk evaluations prior to credit approval.
For the Dudh Khola Hydropower Project, the bank applied international sustainability metrics by deploying the Hydroselect Tool.
Developed by the Hydropower Sustainability Alliance, the Hydroselect Tool is an advanced ESG screening framework designed to assess preliminary environmental, social, and governance factors associated with hydro installations.
Evaluating watershed impacts, local community displacement risks, and climate resilience measures ensures that the 65 Megawatt infrastructure venture aligns with global sustainable energy standards.
Operational Reach and Green Investment Commitment
NMB Bank continues to position itself as a pioneer in sustainable finance and green banking innovation across the domestic financial market.
The commercial bank operates a wide service delivery infrastructure across the country, comprising:
- 198 branch offices nationwide
- 176 Automated Teller Machines
- 9 extended service counters across strategic business centers
The financial closure of the Dudh Khola Hydropower Project highlights the growing reliance on national commercial banks to fund large scale renewable energy infrastructure in Nepal.
By mobilizing domestic capital for large scale hydro developments, the consortium contributes to national energy security, reduces reliance on imported fossil fuels, and accelerates clean energy transition efforts.
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