MBL 9MW Hydropower Nepal: Machhapuchchhre Bank Invests Rs 1.25B in Bhojpur’s Clean Energy Projects
28th May 2025, Kathmandu
Machhapuchchhre Bank Limited (MBL) has taken a major step toward promoting clean energy. It signed a financial closure agreement with Sumnima Hydropower Company Limited.
MBL 9MW Hydropower Nepal
This deal supports the construction of two hydropower projects in Bhojpur: the 4.9 MW Upper Pikhuwa Khola and the 4.1 MW Pikhuwa Pashupati Khola.
Together, the projects will generate 9 megawatts of electricity. MBL will invest Rs. 1.25 billion of the total Rs. 1.75 billion project cost. The agreement reinforces the bank’s commitment to renewable energy development.
Clean Energy In Action
Hydropower plays a vital role in Nepal’s energy future. These projects use the run-of-the-river model, making them eco-friendly. They will harness water from the Pikhuwa River without requiring large dams. This limits environmental damage while increasing power generation.
The two projects are expected to reduce energy shortages in eastern Nepal. They will also feed into the national grid, boosting Nepal’s electricity capacity. This is especially important during dry seasons when energy demand peaks.
MBL’s Role As Sole Financier
Machhapuchchhre Bank is the only financier of the projects. It will fund the majority of the development cost. The bank has a strong track record in energy financing. It has already supported over 40 renewable energy projects across the country.
This new agreement strengthens MBL’s position as a clean energy leader. The bank sees renewable energy not just as a business opportunity, but as a national responsibility.
Why This Matters
Nepal relies heavily on imported fossil fuels. Expanding hydropower reduces that dependence. It also improves energy access in remote areas. The Bhojpur projects will power homes, businesses, and infrastructure in the region.
In addition, clean energy supports Nepal’s commitment to climate action. Hydropower produces zero emissions during operation. It helps the country move toward a low-carbon economy.
Economic And Social Impact
These projects will benefit local communities. During construction, they will create hundreds of jobs. Local workers will get priority. That means income opportunities in Bhojpur will increase.
Once completed, the plants will provide a steady supply of electricity. This helps small businesses grow. It also improves schools, health centers, and communication networks.
The projects may also lead to improved road access and local infrastructure. With better roads, goods and services can move more easily. This will support other sectors, including tourism and agriculture.
Support From Sumnima Hydropower
Sumnima Hydropower will manage project execution. The company has been working on hydropower development in eastern Nepal. Its focus is on delivering clean, reliable, and efficient power.
Company officials say the projects are on track. They expect construction to begin soon. The timeline for completion will depend on the weather and local conditions. However, both sides are committed to fast-tracking the work.
A Milestone For Green Finance
Machhapuchchhre Bank views this as a strategic milestone. The bank’s leadership says clean energy investments are vital for the country’s future. MBL plans to increase its renewable energy portfolio in the coming years.
It believes banks have a critical role to play in sustainability. By financing energy projects, banks support national goals of self-reliance and green development.
MBL also emphasizes the economic returns of such projects. Hydropower generates long-term income. It also adds value to the communities where it is built.
Driving Energy Security
With the growing electricity demand, Nepal must increase its production. Hydropower is the most reliable source. It can meet domestic needs and offer surplus for export.
MBL’s support ensures projects like Pikhuwa Khola move forward without delay. Fast development means quicker returns and faster energy access. This kind of investment helps Nepal reduce power imports and improve energy security.
Looking Ahead
Machhapuchchhre Bank will continue supporting the clean energy sector. The bank’s roadmap includes funding for solar, wind, and micro-hydro projects. It wants to work with public and private stakeholders to build an energy-secure Nepal.
As for the Pikhuwa projects, planning and logistics are nearly complete. The bank and Sumnima Hydropower aim to complete the projects efficiently and responsibly.
Conclusion
The agreement between Machhapuchchhre Bank and Sumnima Hydropower marks a major step forward. It demonstrates how financial institutions can drive sustainable change. With this deal, MBL has shown that banks are more than lenders — they are partners in Nepal’s development.
As the country looks toward a clean energy future, partnerships like this one will be crucial. The people of Bhojpur — and Nepal as a whole — stand to benefit for years to come.
For more: MBL 9MW Hydropower Nepal
