Kathmandu: A consortium of banks led by Laxmi Sunrise Bank has signed a facilities agreement with Upper Marshyangdi Hydropower Company Pvt. Ltd. to finance the 102 MW peaking run-of-the-river (PROR) Upper Marshyangdi-1 Hydropower Project. The project, with an estimated cost of NPR 21.40 billion, is being constructed on the Marshyangdi River in the Lamjung district.
According to the company, the consortium banks have committed to financing approximately 74.77% of the total project cost, while the remaining 25.23% will be invested by the project promoters. Laxmi Sunrise Bank, as the lead financier, has committed NPR 7 billion, with co-lead Global IME Bank contributing NPR 6 billion and Prabhu Bank providing NPR 3 billion, for a total term loan of NPR 16 billion.
The Upper Marshyangdi-1 project received its Generation License from the Department of Electricity Development (DOED) on December 25, 2018, and signed a Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA) on December 24, 2024. The project is promoted by KC Group and Keyal Group.
Once operational in June 2029, Upper Marshyangdi-1 is expected to generate approximately 583.03 GWh of electricity annually, contributing significantly to Nepal's national grid. The project will also be one of the country's largest independent power producers (IPPs).