The 216 MW Upper Seti Hydropower Project (USHP) has concluded its financial closure under the consortium of Kumari Bank Limited.

The hydropower project is planned to be constructed in 4 and 5 number wards of Saipal Rural Municipality in Bhajhang district of Sudurpashchim Province. The deal was signed on Friday by Ramchandra Khanal, CEO of Kumari Bank, and the main promoter of the project Shailendra Guragain, Chairman of Samriddhi Energy Limited.

NMB Bank Limited is set to co-lead the financial management for the project. The financial consortium includes Machhapuchhre Bank, Hydroelectricity Investment and Development Company, Laxmi Sunrise Bank, Nepal Investment Mega Bank, Prabhu Bank, Nepal SBI Bank, NIC Asia Bank, Agricultural Development Bank, Lumbini Development Bank, Shangrila Development Bank, Kamana Sewa Development Bank, and ICFC Finance.

The USHP has inked a power purchase agreement with the Nepal Electricity Authority. The project is set to be completed within five years from the date of construction.

According to promoter Guragain, commercial production of the project has been targeted to commence by July 15, 2031. The USHP is projected to generate 1,229.6 GWh of electricity annually.

The project is estimated to cost around Rs 41.6 billion, while it will be financed through a 70 percent debt and 30 percent equity ratio.