NPR 7.50 Billion Financing Secured for 50 MW Marsyangdi Besi Hydropower: Citizens Bank Leads Consortium
14th May 2026, Kathmandu
In a major boost to Nepal’s clean energy sector, Divyajyoti Hydropower Limited has successfully achieved financial closure for its 50 MW Marsyangdi Besi Hydropower Project.
NPR 7.50 Billion Financing Secured
The milestone was marked by a formal loan agreement signing on Wednesday at Hotel Everest, Kathmandu, involving key financial institutions and company representatives.
The project, currently under construction in the Lamjung district, represents a significant step toward Nepal’s goal of expanding its national grid capacity and reducing energy deficits.
Project Financial Overview: A Public-Private Partnership Model
The Marsyangdi Besi Hydropower Project is estimated to cost NPR 11.30 billion (Dhungel, 2026). The financing structure utilizes a debt-to-equity model common in the Nepalese energy landscape:
Debt Component (70%): A total of NPR 7.50 billion is being provided through a consortium of financial institutions.
Lead Bank: Citizens Bank International Limited is spearheading the financing as the lead bank in this co-financing arrangement.
Equity Component (30%): The remaining NPR 3.80 billion will be injected by the promoter company, Divyajyoti Hydropower Limited, through equity.
| Metric | Financial Detail |
| Total Estimated Cost | NPR 11.30 Billion |
| Consortium Loan (Debt) | NPR 7.50 Billion |
| Promoter Equity | NPR 3.80 Billion |
| Lead Institution | Citizens Bank International Ltd. |
Strategic Importance and National Grid Integration
Nepal’s technically achievable hydropower potential is estimated at 43,000 MW, though the current installed capacity is significantly lower (Dhungel, 2026; Bhatt, 2017).
Projects like Marsyangdi Besi are vital for addressing the seasonal production drops often experienced by run-of-river (RoR) plants during the dry season (Dhungel, 2026).
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Key Technical Specifications
Location: The project is situated on the Marsyangdi River, flowing through Besisahar Municipality and Marsyangdi Rural Municipality in Lamjung.
Transmission Power: The generated electricity will travel approximately 8 kilometers to connect to the Nepal Electricity Authority (NEA) 132 kV Udipur Substation.
PPA Details: The Power Purchase Agreement (PPA) with the NEA was finalized on August 26, 2018 (Bhadra 10, 2075 BS).
Construction Timeline: Targeting Early Completion
While the official construction mandate allows for a four-year window, Divyajyoti Hydropower has set an ambitious target to complete the 50 MW project within the next 30 months.
This rapid development approach aligns with recent trends in the Nepalese private sector, where developers are increasingly taking prominent roles in meeting national energy demands and facilitating cross-border electricity trade (Schulz & Saklani, 2021).
Nepal recently exported electricity worth NPR 15.4 billion, highlighting the growing economic importance of these infrastructure projects (Chaudhary, 2024).
The Bottom Line
The financial closure of the Marsyangdi Besi project underscores the banking sector’s confidence in Nepal’s hydropower potential.
Led by Citizens Bank, this NPR 7.50 billion investment not only secures the future of a 50 MW project but also contributes to the broader “Digital Nepal” and energy-sufficient vision by powering industries and households alike.
For more: NPR 7.50 Billion Financing Secured
