Nepal’s energy sector is gaining momentum with the successful funding of the 66.3 megawatt Mid-Kaligandaki Hydropower Project, a significant step towards clean energy, due to a consortium led by Nabil Bank.
Financial backing is in Place
The project’s financial management has been solidified by a loan agreement signed in June 2024 between Hydro Support Pvt. Ltd. and the bank consortium. The anticipated project cost is Rs. 12.93 billion (approximately USD 100 million), with 75% (Rs. 11.12 billion) financed by banks and 25% from equity investment by IME Group and the general public.
The co-financing banks include Nabil Bank (Rs. 3.12 billion), Everest Bank and Nepal Investment Mega Bank (Rs. 2 billion each), Nepal Bank, Rastriya Banijya Bank, and Prabhu Bank (Rs. 1 billion each). Additionally, the Hydroelectricity Investment and Development Company (HIDCL) will contribute Rs. 1 billion.
Project Timeline and Revenue Projections
Construction will begin in 2024 and is expected to be finished within four years. The project is expected to generate significant revenue upon completion. Here’s a breakdown of the projected income:
- Winter Season: Rs. 1.9 billion from 130 gigawatt-hours (GWh) of electricity generation (purchase rate: Rs. 8.40 per unit)
- Rainy Season: Rs. 1.33 billion from 277 GWh of electricity generation (purchase rate: Rs. 4.80 per unit)
- Total Annual Revenue: Rs. 2.42 billion from 407 GWh of electricity generation
This project not only enhances Nepal’s energy independence, but it also sets an example for public-private partnerships in the hydropower sector.
Sustainability Contribution
The Mid-Kaligandaki Hydropower Project, utilizing the Kaligandaki River’s power, is a significant addition to Nepal’s renewable energy, aiming to reduce reliance on fossil fuels and promote environmental sustainability.
Stay Updated
Preparations for the project are already underway. Stay tuned for additional updates on construction progress and Nepal’s journey to a more sustainable energy future!
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