Kathmandu – A consortium of five banks and financial institutions has committed an investment of Rs 7.2 billion in the ongoing construction of the 44.52 MW Sanibheri Hydropower Project, located in Rukum East. The project is being developed by Expert Hydro Investment Pvt. Ltd., and the financial closure agreement was finalized on Monday, Bhadra 16.

The total estimated cost of the project is Rs 9.6 billion, of which 75% will be financed through loans, and the remaining 25% through equity investment.

Consortium Breakdown

Under the signed agreement:

• Citizens Bank International will contribute Rs 2.5 billion

• Nabil Bank – Rs 1.5 billion

• Nepal Investment Mega Bank – Rs 1.2 billion

• Sanima Bank – Rs 1 billion

• Siddhartha Bank – Rs 1 billion

The loan agreement was signed by Santosh Raj Nepal, Managing Director of Expert Hydro Investment Pvt. Ltd., and Ganesh Raj Pokharel, CEO of Citizens Bank International.

Strategic Importance and Local Impact

Managing Director Santosh Raj Nepal highlighted that this is the largest hydropower project in Rukum East to date. He emphasized its potential to significantly empower the local region, contribute to energy security, and promote sustainable economic development.

“This project will be a milestone for Rukum East and the broader energy sector. Beyond electricity generation, it will support local livelihoods, infrastructure development, and regional upliftment,” said Nepal.

High-Level Support and Industry Voices

At the agreement signing ceremony:

• Former Minister and MP Janardan Sharma urged swift development of hydropower projects, stating:

  “While other nations are searching for energy sources 11 kilometers beneath the sea, Nepal should prioritize harnessing its abundant water resources. Reservoir-based projects should be given special focus.”

• Dr. Ram Prasad Dhital, Chairman of the Electricity Regulatory Commission, expressed confidence in the timely completion of the project, praising the leadership of Nepal’s youth in the energy sector.

• Hitendra Dev Shakya, Executive Director of the Nepal Electricity Authority (NEA), acknowledged the need to expedite associated infrastructure, such as the 132 kV Bafikot-Khungri double-circuit transmission line and the Bafikot substation, which are essential for timely power evacuation.

• Ganesh Karki, President of IPPAN, reaffirmed the private sector's capability, stating:

  “If the government opens Power Purchase Agreements (PPAs) effectively, the private sector can build all needed projects within a decade.”

• Citizens Bank CEO Ganesh Raj Pokharel noted the project's alignment with the national goal of generating 28,500 MW by 2035, adding:

  “This project not only contributes to energy generation but also to the socio-economic transformation of Rukum and Nepal as a whole. Delays will increase costs, so early commissioning is critical.”

Project Overview and Technical Details

• Type: Run-of-the-river (RoR) project

• Location: Putha Uttarganga Rural Municipality–14 and Sisne Rural Municipality–2, Rukum East

• Design Flow (Q): Q43

• Generation License Issued: Magh 12, 2079 B.S.

• PPA Signed with NEA: Ashar 27, 2080 B.S.

• Target Completion: Within 42 months

The electricity generated will be connected to the proposed Bafikot substation, located 23 kilometers from the project site. Environmental studies for the transmission line are currently underway after obtaining survey permission.

Revenue Projections and Development Progress

In its first year of operation, the project is projected to generate Rs 38.3 million per MW, translating to substantial annual income. By the eighth year, annual revenue is expected to reach Rs 48 million per MW.

Significant milestones achieved so far include:

• Completion of land acquisition for headworks and powerhouse

• Resettlement of local populations

• Construction of access roads

• Installation of explosives storage bunkers

• Deployment of Nepal Army security posts for site protection

Image Source :Urjasanchar

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