KATHMANDU: The Nar Khola Hydropower Project in Manang, with an installed capacity of 61.11 MW, has achieved financial closure in Manang, marking another significant milestone for renewable energy in Nepal. Signed yesterday in the formal presence of the Chairman of Nar Khola Hydro Energy Pvt. Ltd., Batu Lamichhane, and Chief Regional Credit Officer of Kumari Bank, Arpan Pokharel, among others, the project is being lead-invested by Singati Hydro Energy Limited.

Financial Structure

The total cost of the project stands at NRP 12.84 billion, out of which NRP 9.63 billion is proposed to be funded by a consortium of banks headed by Kumari Bank. Member institutions in the consortium include Nepal SBI Bank, Agriculture Development Bank, NIC Asia Bank, and Muktinath Development Bank.

Project Details

The project is designed to harness waters from the Nar Khola and Soti Khola rivers in the Narpa Bhumi and Naso rural municipalities. The hydropower plant will be at a gross head of 588.82 meters; specifically, the headrace tunnel will be eight kilometers long. Located in Manang, the project aims to generate 366.48 GWh every year, with completion planned within three years.

A Power Purchse Agreement 

The Promoter Company Nar Khola Hydro Energy Pvt. Ltd. has completed all necessary procedures regarding the power purchase agreement with Nepal Electricity Authority, under which electricity generated will be sold to the national grid once the project is in operation.
Most importantly, an agreement with NEA involves it being evacuated through the substation to be built at Dharapani in Manang.

The successful financial closure eases the way toward complete construction. When operational, it will substantially add to Nepal's increasing hydropower portfolio and very significantly meeting the growing electricity needs of the country, thus constituting an important step towards diversification of hydropower generation out of traditional regions.