15th May 2025, Kathmandu
River hydropower project. The project site lies along the Marsyangdi River, flowing through Palungtar Municipality in Gorkha, Rainas Municipality in Lamjung, and Bhanu Municipality in Tanahun districts. This semi-reservoir hydropower plant aims to supply clean energy to Nepal’s growing power demand.
Kumari Bank’s Investment
Investment Agreement Signed
On Baisakh 31, 2082 (14 May 2025), the company signed a major investment agreement. The signing ceremony took place in the presence of M.A. Power’s Chairman, Mr. Anup Acharya, and Kumari Bank Limited’s Chief Business Officer, Mr. Kshitij Khadka. This event marked a critical milestone toward starting the project’s construction phase.
The financing package totals NPR 15.19 billion. A consortium of financial institutions led by Kumari Bank Limited provided the funds. Other contributors include Prabhu Bank, Siddhartha Bank, Agricultural Development Bank, Sanima Bank, Garima Development Bank, Lumbini Development Bank, Sangrila Development Bank, and the Employees Provident Fund.
Strong Support from Banking Sector
The banks’ joint investment reflects strong confidence in Nepal’s hydropower potential. By pooling their resources, these institutions share risks and support infrastructure growth. This collective effort also highlights the financial sector’s commitment to Nepal’s sustainable development goals.
Mr. Khadka stated that Kumari Bank remains dedicated to backing renewable energy projects. He emphasized the importance of collaboration among banks to boost the country’s economic and environmental progress. The financing consortium will continue to monitor and support the project until completion.
Project Overview and Importance
The Marsyangdi hydropower project uses a semi-reservoir design. This system controls water flow, ensuring steady electricity generation even in dry seasons. The plant’s 90 MW capacity will significantly add to Nepal’s electricity grid, helping reduce power shortages and support industrial growth.
Moreover, the project aligns with Nepal’s green energy ambitions. Hydropower is key to reducing carbon emissions and decreasing dependence on imported fossil fuels. Thus, Marsyangdi will contribute to both energy security and environmental sustainability.
Economic and Social Benefits
Besides boosting power supply, the project will create jobs and stimulate local economies in the three districts. Construction activities alone will provide employment opportunities, while the operational phase will generate further economic activities.
Local communities will benefit from infrastructure development, improved roads, and increased business opportunities. The project’s positive impact is expected to extend beyond energy production to wider regional growth.
Next Steps
Following the financial closure, M.A. Power plans to begin construction shortly. The project will involve complex civil engineering, installation of turbines, and building transmission lines. The financing banks will release funds based on project milestones to ensure timely progress.
The company aims to complete the project within the planned schedule. Successful execution will add a substantial renewable energy source to Nepal’s power system.
Conclusion
The financial arrangement for the 90 MW Marsyangdi River hydropower project signals a key advance for Nepal’s energy sector. Led by Kumari Bank Limited, the funding consortium demonstrates the banking community’s trust in hydropower investments. With construction underway, the project promises to strengthen the country’s energy independence, promote sustainability, and spur regional development.
For more: Kumari Bank’s Investment