KATHMANDU: The 285 MW Upper Tamor Semi-reservoir Hydropower Project has secured significant investment under a consortium led by Everest Bank. The project will receive Rs 38.60 billion from various banks and financial institutions. Tamor Energy Pvt Ltd, the project's promoter, and Everest Bank signed a loan investment agreement during a recent ceremony in Kathmandu.

Pushpa Jyoti Dhungana, president of Tamor Energy Pvt Ltd, and Sudesh Khaling, Chief Executive Officer (CEO) of Everest Bank, signed the agreement on behalf of their respective organisations.

Under Everest Bank's consortium, Krishi Bikas Bank, Hydropower Investment and Development Company (HIDCL), Rastriya Banijya Bank, Prabhu Bank, Laxmi Sunrise Bank, Nepal SBI Bank, and Garima Bikas Bank will collectively invest in the project.

This project, marking the largest investment by the domestic private sector till date, aims to commence operations by mid-June 2028. It is designed to provide electricity at full capacity for 6 hours during peak evening hours. The total cost of the project, including interest, is estimated at Rs 55 billion, with 30 percent equity and 70 percent debt financing.

Dhungana expressed confidence that the successful construction of the Upper Tamor project will be a significant milestone for Nepal's energy sector. He emphasized that financial management is the primary challenge for hydropower projects, and effective management is crucial for progress. He stated that this project will be realized through domestic investment.

Speaking at the event, Everest Bank’s CEO Khaling highlighted that the agreement demonstrates the capability of domestic banks to finance large-scale hydropower projects. He believes this initiative will encourage other banks to invest in similar large projects.

"We are ready to invest in the energy sector. Initiatives should be taken to raise investment from internal sources as well as other alternative sources," Khaling said.

Khaling also expressed optimism that international investments could further propel Nepal's energy sector forward. The Upper Tamor project is expected to produce 1.47 billion units of electricity annually, with 1.3 billion units generated during the rainy season and the remainder during the dry season. Initial construction has already commenced, and the project is expected to be completed by mid-June 2028.