The Kaligandaki Gorge Hydropower Project has reached financial closure, with a banking consortium led by Laxmi Sunrise Bank committing Rs 29.63 billion, or 75% of the project's estimated cost of Rs 39.51 billion.
Laxmi Sunrise Bank said in a statement that the consortium has signed a facilities agreement with the Kaligandaki Gorge Hydropower Pvt. Ltd. to finance the 180 MW Peaking Run-of-the-River (PROR) project.
Currently under construction in Mustang and Myagdi districts, the project is expected to play a key role in Nepal’s renewable energy sector.
The total term loan amounts to Rs 29.63 billion, with Laxmi Sunrise Bank contributing Rs 9 billion. Other participating banks include Global IME Bank with Rs 7.13 billion, Siddhartha Bank with Rs 5 billion, Himalayan Bank and Nepal SBI Bank with Rs 3 billion each, and Everest Bank with Rs 2.5 billion. The remaining 25% of the funding will come from the project promoters and the public.
The Kaligandaki Gorge Hydropower Project secured a generation license from the Department of Electricity Development on March 11, 2019, and signed a Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) on March 1, 2023. The project is being developed by Sanghai Group, Vishal Group, and Gyanendra Lal Pradhan.
The project is expected to begin operations by June 2029, with an estimated annual electricity generation of 1,056 GWh.
