Ten Banks Commit Rs 70 Billion Investment for Budhigandaki Hydropower Project

A consortium of ten banks and financial institutions has pledged an investment of Rs 70 billion for the Budhigandaki semi-reservoir (peaking run-of-the-river) hydropower project, set to become the largest privately developed hydropower initiative in Nepal till date.

Led by Nepal Investment Mega Bank, the lending consortium includes Nabil Bank, Laxmi Sunrise Bank, and Global IME Bank. Additional participating institutions are Machhapuchchhre Bank, Citizens Bank, Nepal Infrastructure Bank, Prabhu Bank, and Agricultural Development Bank. The Hydroelectricity Investment and Development Company Limited (HIDCL) will also extend credit support to the project.

The 341 MW project, being developed by Sahas Urja, a subsidiary of Times Energy, will be financed through a 75:25 debt-to-equity ratio. According to investor Sushil Thapa, Sahas Urja will contribute 51% of the required equity.

With financial closure now complete, construction is expected to begin by March 2026. The project is located in Chumnubri and Dharche rural municipalities of Gorkha District.

Designed for a flow of 100.27 cubic meters per second, Budhigandaki aims to commence commercial power generation by December 31, 2030, targeting an annual output of 1,867 GWh.

Electricity from the project will be transferred via a 45-kilometer 220 kV transmission line, which will connect to the 400 kV Ratmate substation in Nuwakot. This substation is being developed under the Millennium Challenge Corporation (MCC) compact.

The Budhigandaki project follows investment in the Upper Tamor (285 MW) project, another large-scale private-sector-led initiative, signaling growing private investment in Nepal’s hydropower sector.