Tila-1 Hydropower Project Secures Rs 44.55 Billion Financial Closure

KATHMANDU; The 440 MW Tila-1 Hydropower Project in Kalikot has finalized financial closure for its infrastructure development, securing investment commitments from 13 banks and financial institutions.

Promoted by SC Power Company Pvt. Ltd., the project will initially develop 298 MW of capacity under its existing Power Purchase Agreement (PPA) with the Nepal Electricity Authority. NMB Bank is leading the financing consortium, with a total of Rs 44.55 billion arranged for the project.

The agreement was signed by Govinda Ghimire, chief executive officer of the lead bank NMB Bank, and Susan Karmacharya, chairperson of the project promoter company, amid an occasion on Tuesday. “Now that the financial management has been done, the project will be implemented quickly and brought into operation on time,” said Karmacharya.

NMB Bank will provide Rs 10 billion, while Global IME Bank will invest Rs 7 billion. Himalayan Bank and Prabhu Bank will each contribute Rs 5 billion. Nabil Bank will provide Rs 3 billion, Nepal Infrastructure Bank Rs 2 billion, and the remaining amount will come from other participating financial institutions.

Although the project's total installed capacity is 440 MW, its 298 MW phase is estimated to cost Rs 59.4 billion. The promoters will contribute Rs 14 billion in equity, with the remainder financed through bank loans.

The project will construct its dam and main tunnel infrastructure for the full 440 MW capacity, allowing the remaining 142 MW to be developed later after securing the required approvals.

Commercial operation is targeted for January 1, 2032, with the project expected to generate around Rs 11.4 billion in revenue in its first year of operation.

Once completed, Tila-1 will be the country's largest private-sector hydropower project, surpassing other major privately developed projects currently under construction or development.