NMB-led consortium completes financial closure for 42 MW Lapche Tamakoshi

Bank alone to invest Rs 340 million in Chepe Khola Cascade Hydropower Project

Aarthiknews

May 11, 2025, 9 p.m.

KATHMANDU, MAY 11: A consortium led by NMB Bank has completed the financial closure for the Lapche Tamakoshi Hydropower Project, a 42 MW initiative promoted by Dynamic Hydro Energy Pvt. Ltd. The project is located in Bigu Rural Municipality, Dolakha District. The financial closure agreement was signed today, with this Bank leading the consortium that includes Nabil Bank Ltd., Nepal Infrastructure Bank Ltd., and Everest Bank Ltd. as other member banks.

The project, which has already secured a Power Purchase Agreement (PPA) from the Nepal Electricity Authority (NEA), is estimated to cost Rs 7 billion, of which Rs 5.25 billion will be financed by the consortium. NMB Bank has previously financed over 50 hydropower projects.

Additionally, NMB Bank has arranged financing for the Chepe Khola Cascade Hydropower Project, a 2 MW initiative, through a single-investor model. The total estimated cost of the project is Rs 434 million, with Rs 340 million provided as loan financing by NMB Bank.

The syndicated loan agreement for the Lapche Tamakoshi project was signed by Mr. Dinesh Dulal, Chief of Sustainable Banking at NMB Bank Ltd., and Mr. Mohan Bikram Karki, Chairman of Dynamic Hydro Energy Pvt. Ltd. The agreement was formally exchanged between Mr. Govind Ghimire, Chief Executive Officer of NMB Bank Ltd., and Mr. Karki.

Mr. Govind Ghimire stated that NMB Bank has the technical capacity to oversee the environmental, social, and risk aspects of hydropower development. Similarly, Mr. Karki reaffirmed the company’s commitment to completing the project within the estimated cost and timeframe.

NMB Bank has adopted an Environmental and Social Risk Policy and is implementing an Environmental and Social Management System (ESMS) in line with the Nepal Rastra Bank's Environmental and Social Risk Management Guidelines, 2022. The bank is also applying international best practices, including the IFC Performance Standards, in project financing, particularly in the hydropower sector.