Sahas Urja’s 341 MW Budhigandaki Hydropower Project Reaches Financial Closure with Rs. 52.5 Billion Loan from 10 Banks

The 341 MW Budhigandaki semi-reservoir hydropower project in Gorkha has reached financial closure, marking one of Nepal’s largest privately-led hydropower financing deals. With an estimated cost of Rs. 70 Arba, the project will be developed under a consortium financing model led by Nepal Investment Mega Bank. Ten banks and financial institutions will provide Rs. 52.5 Arba in loans, with the remaining Rs. 17.5 Arba covered through equity from the developer, Times Energy Pvt. Ltd. Sahas Urja Limited owns 51 percent of the shares in Times Energy.

Nepal Investment Mega Bank will contribute Rs. 10 Arba, while Nabil Bank and Laxmi Sunrise Bank will each invest Rs. 8 Arba. Global IME Bank will provide Rs. 7 Arba, HIDCL and Machhapuchchhre Bank Rs. 4 Arba each, Citizens Bank, Nepal Infrastructure Bank, and Prabhu Bank Rs. 3 Arba each, and Agriculture Development Bank Rs. 2.5 Arba. The loan repayment period is set at five years and four months.

The project, backed by a power purchase agreement with the Nepal Electricity Authority for 30 years, will sell electricity at Rs. 4.80 per unit during the rainy season, Rs. 8.40 in the normal dry season, and Rs. 10.55 in the peak dry season. Annual generation is expected to reach 1,867.77 GWh, with an estimated return on investment of 16.99% and a payback period of 5.5 years.

Located about 170 km from Kathmandu, the project will feature a 398-meter head, a 6.9 km tunnel, and six 56.8 MW turbines. The semi-reservoir design will allow six hours of full-capacity generation daily during the dry season.

Government ministers and industry leaders hailed the deal as a milestone for private sector capacity in large-scale energy development, committing to policy support and infrastructure facilitation. Construction is scheduled to begin in September, with completion targeted by January 2087 BS.