The Upper Tamor Semi-reservoir Hydropower Project, a 285 MW initiative led by Tamor Energy Pvt Ltd, has secured significant investment from a consortium of Nepali banks. Everest Bank Limited leads the consortium, which includes Krishi Bikas Bank, HIDCL, Rastriya Banijya Bank, Prabhu Bank, Laxmi Sunrise Bank, Nepal SBI Bank, and Garima Bikas Bank. This collaboration marks the largest domestic private sector investment in Nepal’s hydropower sector to date.
The project, expected to be operational by mid-2028, will provide much-needed electricity during peak evening hours. Designed for a 6-hour full-capacity operation, it will contribute significantly to Nepal’s energy needs. The total project cost is estimated at Rs 55 billion, financed through a 30% equity and 70% debt structure.
Tamor Energy Pvt Ltd is confident that the successful completion of Upper Tamor will be a landmark achievement for Nepal’s hydropower sector. They acknowledge financial management as a key challenge and believe this project paves the way for future development through domestic investment.
Everest Bank’s CEO, Sudesh Khaling, emphasized the agreement’s significance. He views it as a testament to Nepali banks’ capability to finance large-scale hydropower projects and expects it to encourage further investment in this crucial sector.