216-MW Bajhang Upper Seti Hydropower Project Secures Financial Closure

The 216-megawatt Bajhang Upper Seti Hydropower Project has achieved financial closure.

Located in Wards 4 and 5 of Saipal Rural Municipality, the project’s financial management is being led by Kumari Bank, with NMB Bank acting as co-lead. The consortium includes Machhapuchchhre Bank, Hydroelectricity Investment and Development Company, Laxmi Sunrise Bank, Nepal Investment Mega Bank, Prabhu Bank, Nepal SBI Bank, NIC Asia Bank, Agricultural Development Bank, Lumbini Bikas Bank, Shangri-la Development Bank, Kamana Sewa Bikas Bank, and ICFC Finance.

The financial agreement was signed on Friday, August 1, between Kumari Bank and project promoter Samriddhi Energy Limited. Ram Chandra Khanal, CEO of Kumari Bank, and Shailendra Guragain, Chairman of Samriddhi Energy, signed the agreement on behalf of their institutions.

Kumari Bank said in a statement that it has invested in more than 65 hydropower and solar projects so far. “The bank has contributed over Rs 70 billion in total investments (including commitments), managing financing for projects exceeding 2,000 megawatts in capacity,” the statement said. “Some of these are operational, while others are under construction, contributing significantly to Nepal’s power grid.”

The Bajhang Upper Seti project, estimated to cost Rs 41.6 billion, will be financed with 70% debt and 30% equity.

It is a semi-reservoir, run-of-river project with a 4.5-hour peaking capacity. The design discharge is 34.1 cubic metres per second, with a gross head of 758.9 metres and a net head of 735.6 metres. To maintain ecological flow, 1.41 cubic metres per second of water will be released continuously into the Seti River year-round.

A Power Purchase Agreement (PPA) was signed with the Nepal Electricity Authority (NEA) on 4 August 2023, and the generation licence was issued on 13 May 2024. The project aims to begin commercial production by mid-July 2031, within five years of commencement.

Annual generation is projected at 1,229.6 GWh, with 834.49 GWh expected in the wet season and 395.11 GWh in the dry season, including 163.63 GWh of peak energy. During the dry season, the tariff will be Rs 10.55 per unit for peak energy and Rs 8.40 per unit for non-peak energy.

Power generated will be evacuated via a 220 kV switchyard at the site and a 30-kilometre, 220 kV double-circuit transmission line, connecting to the proposed 400 kV Bajhang substation of the National Transmission Grid Company Limited.

The project will require 25 kilometres of access roads. The estimated per-MW cost is Rs 192.5 million, and first-year revenue is projected at around Rs 7.67 billion.

The 30% equity portion is being raised by Samriddhi Energy Limited through institutional and individual investors. Major backers include Siuri Nyadi Power Limited, Ngadi Group Power Limited, Sagarmatha Jalbidhyut Company Limited, Mai Khola Hydropower Limited, and Yesh Holding Pvt. Ltd., along with individual investors such as Shailendra Guragain, Dr Bhogendra Kumar Guragain, and Dinesh Gurung.

The project is expected to improve local infrastructure, generate employment, foster energy self-reliance, and contribute to the economic development of Sudurpashchim Province.