Chino Khola Hydropower Project has officially achieved financial closure following the signing of a loan agreement worth NPR 1.35 billion with Everest Bank Ltd. The landmark agreement reached marks a critical milestone in the development of the 7.9 MW project, paving the way for full-scale construction to begin.

The term loan agreement - amounting to NPR 1,35,28,00,000 (One Billion, Three Hundred Fifty-Two Million, Eight Hundred Thousand Rupees) - was signed on Tuesday at Everest Bank’s head office in Lazimpat, Kathmandu. The document was formally exchanged between Sudesh Khaling, CEO of Everest Bank Ltd, and Bijay Bahadur Shrestha, Chairman of Chino Hydropower Ltd (CHL).

The financing will cover key capital expenditures required for the development of the Chino Khola Hydropower Project (CKHP), which is located in Nasong Rural Municipality, Tachhai Village, Ward No. 8, Manang District. The capital costs include land acquisition, civil construction, procurement of hydro-mechanical and electro-mechanical equipment, transmission lines, and interest during the construction period.

CHL, a Special Purpose Vehicle (SPV) established by Butwal Power Company Limited (BPC) on July 9, 2023, is the developer and operator of the CKHP. The project received its generation license in July 2022, and its Environmental Impact Assessment (EIA) was approved by the Ministry of Forest and Environment (MoFE) on Ashadh 20, 2079 (July 4, 2022).

The Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) was signed on 2082/01/14, fixing the Required Commercial Operation Date (RCOD) for Baisakh 13, 2084 - exactly two years from the PPA date. The Engineering, Procurement, and Construction (EPC) contract has been awarded to QYEC Construction Pvt. Ltd, with site mobilization already underway as of March 25, 2025.

With financial closure now secured, CHL is positioned to accelerate construction activities and meet the targeted commissioning timeline.

Founded in 1965, Butwal Power Company (BPC) is a leading listed entity in Nepal’s energy sector with over six decades of experience. The company is engaged in electricity generation and distribution, as well as providing engineering consultancy and manufacturing of hydropower-related equipment through its subsidiaries. BPC is also recognized for pioneering capacity-building initiatives in Nepal’s hydropower development.

The successful financial closure of the Chino Khola Hydropower Project reinforces investor confidence in Nepal’s small and medium-sized hydropower ventures and demonstrates the growing role of domestic financial institutions in supporting sustainable infrastructure development.