The financial closure of the 90 MW Marsyangdi Nadi PRoR has been finalized, with four commercial banks committing Rs 10.50 billion in investment, according to its developer M.A. Power Limited.
The project, to be developed along the Marsyangdi River in Palungtar Municipality (Gorkha), Rainas Municipality (Lamjung), and Bhanu Municipality (Tanahun), will receive joint funding from Kumari Bank, Prabhu Bank, Agricultural Development Bank, and Siddhartha Bank.
A syndicated loan agreement was signed on Friday, January 31, in the presence of Anup Acharya, Chairman of M.A. Power, and Ram Chandra Khanal, CEO of Kumari Bank. Additional banks and financial institutions (BFIs) are expected to join the investment consortium soon.
The total project cost, including interest during construction, is estimated at Rs 20.25 billion, with 75% debt financing and 25% equity investment.
According to the developer, Kumari Bank will provide Rs 4 billion, Prabhu Bank Rs 3 billion, Siddhartha Bank Rs 2 billion, and Agricultural Development Bank Rs 1.5 billion. Equity contributions will come from Anup Acharya, Haribabu Neupane, and Deepak Baral.
Additionally, Dolma Impact Fund has initiated a due diligence study as a prerequisite for potential equity investment.
The same developer group is in the final stages of completing the 22 MW Setikhola Hydropower Project.
A Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA) was signed on October 18, 2023, with commercial electricity generation scheduled to begin by May 4, 2029. The project’s technical advisory services are being provided by Clean Energy Consultants Pvt. Ltd.
The Detailed Project Report (DPR), engineering design, and contract documentation are in the final stages of preparation, while the Environmental Impact Assessment (EIA) report has been submitted for approval.
Once operational, the generated electricity will be transmitted via a 220 kV single-circuit transmission line to the NEA’s Markichowk substation, located 11.6 km away.
