Kathmandu: The financial closure of the 216 MW Upper Seti Hydropower Project, to be constructed in Bajhang district of Sudurpaschim Province, has been officially completed.
The run-of-the-river semi-reservoir project will be developed in wards 4 and 5 of Saipal Rural Municipality.
The financial arrangement was formalized on Friday under the leadership of Kumari Bank Limited, with NMB Bank Limited as co-lead. The consortium includes Machhapuchchhre Bank, Hydroelectricity Investment and Development Company (HIDCL), Laxmi Sunrise Bank, Nepal Investment Mega Bank, Prabhu Bank, Nepal SBI Bank, NIC Asia Bank, Agricultural Development Bank, Lumbini Bikas Bank, Shangrila Development Bank, Kamana Sewa Bikas Bank, and ICF Finance.
A formal agreement signing ceremony was held in Kathmandu, where Kumari Bank’s CEO Ram Chandra Khanal and Samriddhi Energy Limited’s Chairman Shailendra Guragain signed the financial closure document. Samriddhi Energy is the project’s developer.
Kumari Bank, one of Nepal’s major commercial banks, has been actively investing in the energy sector. It currently has stakes in over 65 hydropower and solar projects, with a cumulative investment (including commitments) exceeding Rs 70 billion, covering projects totaling over 2,000 MW. Some of these projects are already operational, while others are under construction, contributing significantly to the national power grid.
The estimated cost of the Upper Seti project is Rs 41.6 billion and will be financed through a 70:30 debt-to-equity ratio. Due diligence and financial feasibility studies have already been completed.
The project is based on a semi-reservoir run-of-the-river system, designed for 4.5 hours of daily peaking capacity. It has a design discharge of 34.1 cubic meters per second, a gross head of 758.9 meters, and a net head of 735.6 meters. To preserve river ecology, a minimum flow of 1.41 cubic meters per second will be maintained downstream throughout the year.
Nepal Electricity Authority (NEA) signed a Power Purchase Agreement (PPA) for the project on 4 August, 2023, and the generation license was issued on 13 May 2025. The project aims to begin commercial operations by 15 July 2031, within a five-year timeline.
Annual electricity generation is projected at 1,229.6 GWh, with 834.49 GWh during the wet season and 395.11 GWh in the dry season. Of this, 163.63 GWh will be peaking energy. The tariff for dry-season peaking energy is set at Rs 10.55 per unit, while non-peaking energy will be priced at Rs 8.40 per unit.
Electricity generated from the project will be transmitted via a 30-kilometer-long 220 kV double-circuit transmission line connected to a 220 kV switchyard at the site, which will link to the proposed 400 kV Bajhang substation of the National Transmission Grid Company Limited.
The project will require a total access road of 25 kilometers. The per-megawatt cost is estimated at Rs 192.5 million, with first-year revenue expected to reach Rs 7.67 billion.
Samriddhi Energy is mobilizing the 30 percent equity through institutional and individual investors. Major stakeholders include Suri Nyadi Power Limited, Nigadi Group Power Limited, Sagarmatha Hydropower Company Limited, Mai Khola Hydropower Limited, Yash Holdings Pvt. Ltd., and seasoned investors such as Shailendra Guragain, Dr. Bhogendra Kumar Guragain, and Dinesh Gurung.
Upper Seti Hydropower Project is expected to play a transformative role in regional development by boosting local infrastructure, generating employment, and supporting energy self-sufficiency. It is hailed as a milestone in Nepal’s hydropower journey and is anticipated to contribute decisively to the long-standing dream of electrifying the remote Far-Western region.
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