Manang Marsyangdi Hydropower Company Pvt. Ltd. (MMHCPL) has successfully achieved financial closure for the 135 MW Manang Marsyangdi Hydropower Project (MMHP). This milestone was marked by the signing of a loan agreement with China’s EXIM Bank on November 22, 2024. The agreement secures a loan of CNY 1.2425 billion (approximately USD 175.25 million), contributing to the total project cost of USD 323 million. The remaining funds will be sourced from additional channels.
The project is a collaboration between Nepal’s Butwal Power Company (BPC) Limited and a consortium of Chinese investors, including SCIG International Ltd., Xingcheng International Investment Co. Ltd., QYEC International Co. Ltd., and their joint venture, SCIG International Nepal Hydro Joint Development Investment Co. Pvt. Ltd. The financing follows an 80:20 debt-equity structure, with BPC holding 20% equity and Chinese investors the remaining 80%. Additionally, MMHCPL plans to offer shares to local residents impacted by the project in accordance with local regulations.
Construction, being undertaken by Sinohydro Bureau 7 Co. Ltd. of China under an Engineering, Procurement, and Construction (EPC) model, has already begun. The project is expected to be completed within 42 months. Northwest Engineering, China, is overseeing construction supervision.
Situated in Chame and Nasong Rural Municipalities of Manang District, MMHP is a Peaking Run-of-River (PROR) hydropower project. It features a dam on the Marsyangdi River at Koto in Chame Rural Municipality and a powerhouse in Nasong Rural Municipality, connected by a 6-kilometer-long headrace tunnel. Once operational, the plant is expected to generate 766 GWh of electricity annually.
MMHP is the first of three hydropower projects being developed under a cascade model by the same consortium. The other two projects, the 139.2 MW Lower Manang Marsyangdi Hydropower Project and the 327 MW Upper Marsyangdi-2 Hydropower Project, are located in Manang and Lamjung districts, respectively. Together, the three projects will have a combined capacity of 601 MW and a total estimated investment of USD 1.2 billion.
Despite challenges such as uncertainties regarding Nepal’s hedging mechanism, disruptions caused by the COVID-19 pandemic, land acquisition issues, tree-cutting delays, and the devastating Marsyangdi floods in 2021, MMHP has made significant progress and is now under active construction.
