3rd August 2025, Kathmandu
A significant milestone in Nepal’s hydropower development has been reached with the successful financial closure of the 216 MW Upper Seti Hydropower Project in Bajhang district, Sudurpashchim Province.
Upper Seti Hydropower Project Financing
Kumari Bank Limited spearheaded the financing efforts, bringing together a consortium of 14 prominent banks and financial institutions to commit a total investment of NPR 41.60 billion (approximately USD 315 million).
The ambitious project, situated in Ward Nos. 4 and 5 of Saipal Rural Municipality, will see Kumari Bank act as the lead financier, with NMB Bank serving as the co-lead. This collaborative investment underscores the confidence in Nepal’s energy sector and the potential of the Upper Seti project.
Participating in this landmark financing deal are: Machhapuchchhre Bank, Hydroelectricity Investment and Development Company Limited (HIDCL), Laxmi Sunrise Bank, Nepal Investment Mega Bank, Prabhu Bank, Nepal SBI Bank, NIC Asia Bank, Agricultural Development Bank, Lumbini Bikas Bank, Shangrila Development Bank, Kamana Sewa Development Bank, and ICFC Finance.
A formal financial agreement was solidified at a signing ceremony in Kathmandu, with Mr. Ram Chandra Khanal, CEO of Kumari Bank, and Mr. Shailendra Guragain, Chairman of the project promoter, Samriddhi Energy Limited, officially sealing the commitment.
Kumari Bank’s leadership in this venture highlights its significant role in Nepal’s energy infrastructure development. The bank has already invested in over 65 hydropower and solar energy projects, with total commitments exceeding NPR 70 billion, contributing to a substantial energy capacity of over 2,000 MW, either operational or under construction.
Project Highlights:
The Upper Seti Hydropower Project is designed as a semi-reservoir run-of-river system with a peaking capacity of 4.5 hours. Key technical details include:
Total Investment: NPR 41.60 billion
Debt-Equity Ratio: 70:30
Design Discharge: 34.1 m³/s
Gross Head: 758.9 m
Net Head: 735.6 m
Environmental Flow: 1.41 m³/s (year-round)
Power Purchase Agreement (PPA): Signed with Nepal Electricity Authority on August 4, 2023
Generation License: Issued on May 13, 2024
Targeted Commercial Operation Date (COD): July 15, 2031
The project is projected to generate an impressive 1,229.6 GWh of electricity annually, with 834.49 GWh during the monsoon season and 395.11 GWh during the dry season. Peak energy generation is estimated at 163.63 GWh. The tariff agreed upon with the Nepal Electricity Authority is NPR 10.55/unit for peak hours during the dry season and NPR 8.40/unit for non-peak hours during the dry season.
Infrastructure Development:
To facilitate power evacuation, a 220 kV switchyard will be constructed at the project site, connected to the proposed 400 kV Bajhang Substation of the National Grid via a 30 km double circuit 220 kV transmission line. Additionally, approximately 25 km of access roads will be developed for the project. The estimated cost per MW is around NPR 192.5 million, with an anticipated revenue of NPR 7.67 billion in the first year of operation.
Equity Participation:
The 30% equity component of the project is being raised by Samriddhi Energy Limited through a mix of institutional and individual investors. Notable stakeholders include Siuri Nyadi Power Limited, Ngadi Group Power Limited, Sagarmatha Jalbidhyut Company Limited, Mai Khola Hydropower Limited, Yesh Holding Pvt. Ltd., and prominent individual investors such as Shailendra Guragain and Dr. Bhogendra Kumar Guragain.
Significant Impact on Nepal:
The successful financial closure of the Upper Seti Hydropower Project carries significant implications for Nepal’s energy sector and overall economy. The project is expected to:
Substantially increase the national electricity supply, reducing reliance on imports and contributing to energy security.
Enhance local infrastructure in the Bajhang district, including road networks and other essential facilities.
Create employment opportunities for the local population during both the construction and operational phases.
Support Nepal’s national goal of achieving energy self-sufficiency and reducing its carbon footprint.
Accelerate the economic transformation of Sudurpashchim Province by attracting further investment and stimulating local businesses.
The Upper Seti Hydropower Project stands as a testament to the collaborative spirit between the financial sector and energy developers in Nepal.
It represents a major step forward in harnessing the country’s vast hydropower potential and is poised to play a crucial role in lighting up Far-Western Nepal and contributing significantly to national prosperity. This project underscores the growing momentum in Nepal’s renewable energy sector and its commitment to sustainable development.
About Kumari Bank
Kumari Bank Limited came into existence as the fifteenth commercial bank of Nepal, starting its banking operations from Chaitra 21, 2057 B.S (April 03, 2001) with an objective of providing competitive modern banking services in the Nepalese financial market. The Bank has paid up capital of NPR 26.23 billion.
Kumari Bank Limited provides a wide range of modern banking services through 406 points of representation located in various urban, semi-urban, and rural parts of the country, with 302 branches, 50 extension counters, and 54 Branchless Banking Units.
The Bank has pioneered in providing modern banking services like Internet Banking and Mobile Banking. With the implementation of Core Banking Software, FINACLE (version 10), the Bank has been providing a robust, ultra-modern banking platform for all customers throughout the country.
The Bank has been offering both Domestic and International Visa Debit and Credit Cards, accessible in all Visa-linked ATMs in Nepal and India. It serves through 318 ATMs and 1100+ POS terminals across the country. Along with this, the Bank offers the latest digital banking services such as Mobile, Internet, and QR payments. The Bank is recognized as an innovative and fast-growing institution that always strives towards customer satisfaction. It has transparent business practices, professional management, good corporate governance, and Total Quality Management as the organizational mission.
Vision Statement
Our vision is to be the preferred financial partner to our customers, a center of career growth to our employees, and to maximize our shareholders’ value, while contributing to our nation’s financial sector and its economic welfare.
Mission Statement
Our mission is to deliver innovative products and services to our customers, use these innovative products to achieve financial inclusion, and do so by exemplifying good corporate governance, proactive risk management practices, and superior corporate social responsibility.
The Bank is recognized as an innovative and fast-growing institution that always strives towards customer satisfaction. It has transparent business practices, professional management, good corporate governance, and Total Quality Management as the organizational mission.
The Bank acquired Kasthamandap Development Bank Ltd., Paschimanchal Finance Co. Ltd., Mahakali Bikash Bank Ltd., and Kankrebihar Bikash Bank Ltd. on Asadh 2074, with an objective to fulfill the directive forwarded by Nepal Rastra Bank to attain the paid-up capital of NPR 8 billion. Further to that, the Bank acquired Deva Bikas Bank Limited and a joint operation was started from Asadh 28, 2077.
On January 01, 2023, Nepal Credit and Commerce Bank Limited merged with Kumari Bank Limited to jointly operate in the name of Kumari Bank Limited.
For more: Upper Seti Hydropower Project Financing