Laxmi Sunrise-led Consortium signs facility agreement with Upper Balephi Hydropower Ltd. to Finance 46 MW Project

Kathmandu: A consortium of banks, led by Laxmi Sunrise Bank Ltd., has signed a facility agreement with Upper Balephi Hydropower Ltd. to finance the 46-megawatt run-of-river Upper Balephi Hydropower Project.

The project is being constructed on the Balephi River in Jugal Rural Municipality, Sindhupalchowk district, Bagmati Province, with an estimated project cost of 9.43 billion rupees. This venture will play a crucial role in Nepal’s renewable energy landscape.

Upper Balephi Hydropower received the issuance of the Generation License from the Department of Electricity Development on August 16, 2021, and subsequently signed the Power Purchase Agreement with Nepal Electricity Authority on November 21, 2023. The company is promoted by the Golyan Group, HR Goel Group, Siddhartha Group, and Umesh Kasaju.

The banks have committed to financing approximately 75% of the project cost, with the remaining 25% to be invested by the project promoters. The Project Finance (Term Loan) commitment from Laxmi Sunrise Bank is NPR 4.07 billion, with commitments from Agricultural Development Bank (co-lead bank) of 1.5 billion rupees, Nepal SBI Bank of NPR 1.0 billion, and Machhapuchchhre Bank of 0.50 billion rupees.

The Upper Balephi Hydropower Project is anticipated to generate an estimated 274.89 GWh of power annually for the national grid and will be one of the largest independent power producers (IPP) when it comes into operation in May 2027.

The major promoter of this project is Golyan Group, which is committed to forging a sustainable future through renewable energy. Currently, Golyan Group has 14 projects in the pipeline, poised to generate 900 MW of renewable energy by 2030. This ambitious endeavor comprises 8 hydropower projects, including Upper Balephi Hydropower Ltd., and 6 solar energy initiatives, symbolizing Golyan Group’s dedication to diversifying Nepal’s renewable energy portfolio.