Financial Closure for 216 MW Upper Seti Hydropower Project Completed
August 3, 2025 | Investopaper
The financial closure for the 216 MW Upper Seti Hydropower Project in Bajhang, Sudurpashchim Province, Nepal, has been successfully completed. On Friday, a consortium of financial institutions, led by Kumari Bank Limited and co-led by NMB Bank Limited, formalized the financial arrangement for the project.
The consortium includes Machhapuchhre Bank, Hydroelectricity Investment and Development Company, Laxmi Sunrise Bank, Nepal Investment Mega Bank, Prabhu Bank, Nepal SBI Bank, NIC Asia Bank, Agriculture Development Bank, Lumbini Development Bank, Shangrila Development Bank, Kamana Sewa Development Bank, and ICFC Finance.
The agreement was signed in Kathmandu during a special ceremony, with Kumari Bank’s CEO Ram Chandra Khanal and Samriddhi Energy Limited’s Chairman Shailendra Guragain representing their respective organizations.
This 216 MW project, set to be constructed in wards 4 and 5 of Saipal Rural Municipality, will be funded at an estimated cost of Rs. 41.6 billion with a 70:30 debt-to-equity ratio. Construction of the Upper Seti Hydropower Project is targeted for completion within five years, with commercial production targeted to commence by July 15, 2031. In its first year of operation, the project is projected to generate revenue of approximately RS. 7.67 billion.
The equity portion, constituting 30% of the project’s funding, is being raised by Samriddhi Energy Limited through a mix of institutional and individual investors. Key stakeholders include institutional investors such as Siuri Nyadi Power Limited, Ngadi Group Power Limited, Sagarmatha Jalbidhyut Company Limited, Mai Khola Hydropower Limited, etc. and individual investors such as Shailendra Guragain, Dr. Bhogendra Kumar Guragain, and Dinesh Gurung.
Project Specifications and Design
The Upper Seti Hydropower Project is a semi-reservoir, run-of-the-river facility designed to generate 1,229.6 GWh of electricity annually. It boasts a peaking capacity of 4.5 hours, with a design discharge of 34.1 cubic meters per second, a gross head of 758.9 meters, and a net head of 735.6 meters. A continuous flow of 1.41 cubic meters per second will be released into the Seti River throughout the year.
The project is expected to produce 834.49 GWh during the wet season and 395.11 GWh during the dry season, including 163.63 GWh of peak energy. Electricity tariffs are set at Rs. 10.55 per unit for peak energy and Rs. 8.40 per unit for non-peak energy during the dry season. Similarly, the tariff for wet season is Rs. 4.80 per unit.
The project has secured a Power Purchase Agreement (PPA) with the Nepal Electricity Authority on August 4, 2023, and obtained its generation license on May 13, 2024. The generated electricity will be transmitted through a 30-kilometer, 220 kV double-circuit transmission line from a 220 kV switchyard at the project site to the proposed 400 kV Bajhang Substation.
Suggested Readings:
List Of Hydropower Projects In Nepal (Developed By Private Sector)
