Kathmandu

Investment Finalized for 341 MW Budhi Gandaki Hydropower Project Led by Private Sector

In a significant boost to Nepal’s private-sector-led energy development, the investment agreement for the 341 MW Budhi Gandaki Partial Reservoir Hydropower Project, to be developed by Times Energy Pvt. Ltd.—a subsidiary of Sahas Urja Limited—has been officially signed. The project will be built in Chum Nubri and Dharche rural municipalities of Gorkha district.

At a formal event held in Kathmandu, 10 banks and financial institutions, led by Nepal Investment Mega Bank, signed a commitment to invest Rs. 52.5 billion in the project. The agreement was signed by Sushil Thapa, Director of Times Energy, and Jyoti Prakash Pandey, CEO of Nepal Investment Mega Bank.

Project Financing and Investment Structure

The total estimated cost of the Budhi Gandaki project is Rs. 70 billion, with 75% to be financed through debt and 25% through equity investment. The financing consortium includes:

Lead Bank:

• Nepal Investment Mega Bank – Rs. 10 billion

Co-Lead Banks:

• Nabil Bank – Rs. 8 billion

• Laxmi Sunrise Bank – Rs. 8 billion

• Global IME Bank – Rs. 7 billion

Other Partner Institutions:

• Hydroelectricity Investment and Development Company (HIDCL) – Rs. 4 billion

• Machhapuchhre Bank – Rs. 4 billion

• Citizens Bank – Rs. 3 billion

• Nepal Infrastructure Bank (NIFRA) – Rs. 3 billion

• Prabhu Bank – Rs. 3 billion

• Krishi Bikas Bank – Rs. 2.5 billion

Project Design and Timeline

The project is designed as a partial reservoir (peaking run-of-river) hydropower scheme, with its main structure located on the right bank of the Budhi Gandaki River. The power plant will feature:

• An underground powerhouse equipped with six vertical-axis Pelton turbines of 57 MW each

• An expected annual generation capacity of 1,867 GWh of electricity

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

The company received its generation license from the Department of Electricity Development on Poush 5, 2080 BS, following the completion of the feasibility study. Commercial production is targeted to commence by Poush 15, 2087 BS.

Private Sector Leadership and Government Endorsement

Times Energy Pvt. Ltd. is a subsidiary of Sahas Urja Limited, which previously completed and commissioned the 86 MW Solu Dudhkoshi Hydropower Project, marking one of the most successful large-scale private hydropower initiatives in Nepal.

Speaking at the signing ceremony, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel praised Sahas Urja for providing “a strong response to those who doubt Nepal’s capacity for large infrastructure projects,” and expressed optimism that Budhi Gandaki would be completed on schedule.

Minister for Energy, Water Resources and Irrigation Deepak Khadka remarked that the project demonstrates the increasing maturity and strength of Nepal’s private sector, noting its importance in meeting future domestic demand and export targets.

Ganesh Karki, President of the Independent Power Producers’ Association of Nepal (IPPAN), emphasized that “if the government simply facilitates the private sector, even the largest projects can be successfully built.”

Proven Track Record Drives Confidence

Speaking on behalf of the banking consortium, CEO Pandey of Nepal Investment Mega Bank stated that the banks' confidence stems from Sahas Urja’s proven ability to deliver complex projects on time, as demonstrated by Solu Dudhkoshi.

Him Prasad Pathak, Chairman of Times Energy Pvt. Ltd., described the investment as a landmark moment for Nepal’s private sector, expressing pride in leading one of the country’s largest hydropower projects.

Upper Tamor Project Also Progressing

This announcement follows similar progress on the 285 MW Upper Tamor Hydropower Project on the Tamor River in eastern Nepal, being developed by Tamor Energy Pvt. Ltd. in partnership with banks led by Everest Bank Limited. That project also boasts a total investment of Rs. 55 billion, demonstrating the private sector’s growing role in large-scale energy development.

This series of major financial closures signals a new era for private hydropower in Nepal, positioning companies like Sahas Urja and its subsidiaries at the forefront of the nation’s energy transformation.

Image Source : Urjasanchar

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