10th May 2025, Kathmandu
NMB Bank Limited has taken the lead in arranging financing for the 24.8 MW Bajra Madi Hydropower Project. The project is being developed in Madi Rural Municipality, Kaski district, by Bajra Energy Ventures Pvt. Ltd.
NMB Bank Nepal Hydropower Financing
NMB Bank serves as the lead bank in this collaboration. Agricultural Development Bank Limited has joined as a co-financing partner. Together, they have secured the necessary funding to move the project forward.
The total estimated cost of the project stands at NPR 5.35 billion. Out of this, NPR 3.745 billion will come from loans provided by the banking partners.
Expanding Investment in Hydropower
NMB Bank continues to invest heavily in Nepal’s hydropower sector. With this new project, the bank has now supported more than 50 hydropower projects across the country.
This shows NMB’s long-term commitment to clean energy. It also highlights the private sector’s growing role in meeting Nepal’s power demands through local, renewable resources.
Vision Lumbini Project Starts Commercial Generation
In a parallel development, Vision Lumbini Urja Company Limited, which is promoted by the same group, has begun commercial electricity production from the 25 MW Seti River Hydropower Project.
This project lies in Annapurna Rural Municipality and Pokhara Metropolitan City, also within Kaski district.
Electricity generation officially began on Kartik 27, 2081 (November 12, 2024) at 12:00 noon. The project was developed with funding from NMB Bank, the Employees Provident Fund, and the Agricultural Development Bank.
Responsible Financing Approach
NMB Bank has introduced strong environmental and social safeguards. It follows the Environmental and Social Risk Management Directive, 2022, issued by the Nepal Rastra Bank.
To meet these standards, NMB has created a dedicated Environmental and Social Management System (ESMS). This framework helps the bank assess and manage environmental and social impacts in every infrastructure project it supports.
Through this system, NMB promotes transparency, community engagement, and sustainability.
Collaboration with Agricultural Development Bank
The financing partnership between NMB Bank and Agricultural Development Bank adds strength to the Bajra Madi project. Both banks share a goal: supporting reliable and eco-friendly energy in Nepal.
Their joint involvement ensures proper financial backing and expert oversight throughout the project’s development.
Clear Focus on Clean Energy
NMB Bank has made clean energy one of its top priorities. It continues to seek out projects that are environmentally responsible and economically viable.
This strategic focus reflects the bank’s long-term vision. It is not only about financing power projects—but about building energy resilience for the nation.
Supporting National Energy Goals
Hydropower remains a key pillar of Nepal’s energy strategy. The government seeks to harness rivers across the country to meet rising electricity demand.
With projects like Bajra Madi and Seti River, NMB Bank is contributing to that goal. It is helping build the infrastructure that will power homes, businesses, and industries—sustainably.
Private Sector Making an ImpactBy financing these hydropower plants, NMB Bank is showing how the private sector can help transform Nepal’s energy landscape.
Its emphasis on cost-efficiency, environmental care, and local impact reflects a modern approach to development.
Moreover, the bank’s success in managing large, multi-party investments sets an example for others in the sector.
A Model for Future Projects
As Nepal looks to scale up its renewable energy production, the Bajra Madi project serves as a model. It brings together strong financial planning, regulatory compliance, and sustainability.
The Seti River project, now operational, adds real-world proof of what can be achieved through public-private partnership.
Both projects reflect NMB Bank’s leadership and forward-thinking approach to infrastructure financing.
For more: NMB Bank Nepal Hydropower Financing