Kathmandu. Darchula Power Limited, a subsidiary of Api Power Limited, is set to invest Rs 424.5 crore in the 28.304 MW capacity Mid Chameliya Hydropower Project, which is being built by Darchula Power Limited. A financial management agreement was signed today with Nabil Bank, led by Nepal Bank, to invest.

The 53.5 MW Upper Myagdi-1 Hydropower Project, currently under construction in Myagdi district, has reached a major financial milestone with two leading banks committing significant investment.

According to project officials, Nepal Bank will invest Rs 2.245 billion (Rs 224.5 crore), while Nabil Bank will contribute Rs 2 billion (Rs 200 crore) toward the development of the project. Together, the two banks will provide a total of Rs 4.245 billion, covering 75% of the total project cost through debt financing.

The project’s total estimated cost is Rs 5.66 billion (Rs 566 crore). The remaining 25% will be covered through equity capital, amounting to Rs 1.425 billion, which constitutes 51.582% of the company’s capital structure. Out of this, Api Power Company Limited has invested Rs 730 million in Darchula Power Limited, the promoter company responsible for the project’s execution.

With this financial structure in place, the project is being developed under a public-private partnership model, combining institutional investment, promoter equity, and future public shareholding.

As construction progresses on key structures including the dam, headrace tunnel, and powerhouse, the developer aims to begin power generation by Falgun 2083 BS. Once operational, the project is expected to contribute an average of 315.01 gigawatt-hours of electricity per year to Nepal’s national grid via a new 132 kV transmission line and substation in Malika-7, Dadakhet, under the Nepal Electricity Authority.

The project not only represents a boost in national power production capacity but also marks a significant example of collaborative infrastructure financing in Nepal’s growing hydropower sector.

This project will generate 185.62 gigawatt hours of electricity annually. 

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📰 Source: UrjaSanchar.com