Manang Marsyangdi Hydropower Project Achieves Financial Closure

Manang Marsyangdi Hydropower Company Pvt. Ltd. (MMHCPL) has successfully achieved financial closure for its 135 MW Manang Marsyangdi Hydropower Project (MMHP) by signing a loan agreement with EXIM Bank, China on October 22, 2024. EXIM Bank will provide a loan of CYN 1,242,500,000 (USD 175.25 million), with the remaining financing sourced from other entities.

The total project cost is estimated at USD 323 million. The project is backed by joint investments from Butwal Power Company Ltd. (BPC), Chinese investors, and their joint venture. The financing structure includes a debt-equity ratio of 80:20, with BPC holding 20% equity.

Construction, led by Sinohydro Bureau 7 Co. Ltd., began with a 42-month completion plan. MMHP, located in Manang District, will generate 766 GWh annually through a 6 km long headrace tunnel. The project is the first of three planned in the area, with a combined capacity of 601 MW.

Despite challenges like the COVID-19 pandemic, land acquisition issues, and the 2021 Marsyangdi floods, the project has progressed. MMHCPL expresses gratitude for the support from government bodies, investors, and local stakeholders and looks forward to continued cooperation.