Laxmi Sunrise Bank Leads Financing for Upper Marshyangdi-1 Hydropower Project

A group of banks, led by Laxmi Sunrise Bank, has signed an agreement to provide financing for the 102 MW Upper Marshyangdi-1 Hydropower Project located in Lamjung. The total estimated cost of the project is Rs. 21.40 billion, and it is expected to generate 583.03 GWh of electricity annually, which will be added to Nepal’s national power grid by June 2029.

Financing Details:

Laxmi Sunrise Bank will contribute Rs. 7 billion to the project.
Global IME Bank has committed Rs. 6 billion.
Prabhu Bank will provide Rs. 3 billion.

Together, these three banks will cover 74.77% of the total cost of the project.

Project Background:

The project is being promoted by KC Group and Keyal Group.
The generation license for this project was granted in 2018.
A Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA) was signed on December 24, 2024.

About Laxmi Sunrise Bank:

Laxmi Sunrise Bank was formed by merging Laxmi Bank and Sunrise Bank. It is one of the leading financial institutions in Nepal, with a balance sheet of Rs. 395 billion. The bank operates 254 branches and has over 5,000 remittance agents, making it accessible to a wide range of customers across the country.

About Upper Marshyangdi-1 Hydropower Project

The Upper Marsyangdi-1 Hydropower Project, being built by Upper Marsyangdi Hydropower Company Pvt. Ltd., is a 102 MW Run-of-River project located on the Marsyangdi River in Lamjung. The dam will be in Marsyangdi-4, Ram Bazaar, and the powerhouse will be located at the meeting point of the Siurung and Marsyangdi Rivers in Marsyangdi-3, Arkhalebesi. Water will flow through a 5,142-meter-long tunnel and a 426-meter-long pipe to generate power. Originally planned for 138 MW, the capacity was reduced to 102 MW due to changes from the Upper Marsyangdi ‘A’ Hydropower Project. The project is estimated to cost Rs 33 billion and is expected to be completed in about 40 months.