Kathmandu: A new 61.11-megawatt hydropower project is set to be built in the remote Manang district after securing full financial closure on Monday.
The Nar Khola Hydropower Project, developed by Nar Khola Hydro Energy Pvt Ltd, will harness water from the Nar Khola and Soti Khola rivers across Narpa Bhumi and Nason rural municipalities. The run-of-river scheme will feature an impressive gross head of 588.82 metres and an 8-kilometre-long headrace tunnel, enabling it to generate 366.48 GWh of electricity annually.
The total project cost is estimated at Rs 12.84 billion, with 75 percent (Rs 9.63 billion) financed through debt and the remaining 25 percent (Rs 3.21 billion) as equity. Singti Hydro Energy Limited is the lead equity investor.
A consortium led by Kumari Bank, with Nepal SBI Bank as co-lead, and Agriculture Development Bank, NIC Asia Bank, and Muktinath Bikas Bank as member lenders, has committed the full debt portion. The financing agreement was formally signed on Monday in Kathmandu between Nar Khola Hydro Energy Chairman Batu Lamichhane and Kumari Bank’s Chief Regional Credit Officer Arpan Pokharel.
Power generated from the plant will be evacuated through Nepal Electricity Authority’s upcoming Dharapani substation in Manang. A power purchase agreement (PPA) with NEA had already been signed earlier.
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