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Citizens Bank International has led a consortium of banks to finance the 50 MW Marsyangdi Bensi Hydropower Project with a syndicated loan investment of Rs 7.5 billion.

The co-financing loan agreement was signed on Wednesday between project promoter Dibyajyoti Hydropower Limited and participating banks for the development of the project in Marsyangdi Rural Municipality and Besisahar Municipality of Lamjung district in Gandaki Province.

According to the company, the project’s estimated cost stands at around Rs 11.30 billion.

The financing structure has been arranged under a 67:33 debt-to-equity ratio, with consortium banks investing Rs 7.5 billion in loans while the remaining 33 percent equity will be contributed by the promoters.

The hydropower project is targeted to be completed within the next four years. Once operational, the electricity generated by the project will be connected to the Nepal Electricity Authority’s Udipur Substation.

The company said the project is expected to generate 112.099 GWh of electricity during the dry season and 200.503 GWh during the monsoon season, producing a total annual output of 312.602 GWh.

Addressing the signing ceremony, Citizens Bank Chief Executive Officer Ganesh Raj Pokharel said the bank has been continuously investing in hydropower and green energy projects since its establishment through direct financing, lead financing, co-lead financing and syndicated loans with other banks.

He noted that the joint investment of banks and independent power producers has significantly contributed to Nepal’s energy sector development, with many hydropower projects already completed and operational.

Citizens Bank currently has investments in 42 hydropower projects with a combined capacity of 1,605.226 MW, including 16 completed projects with a total capacity of 274.401 MW and 26 under-construction projects with a combined capacity of 1,330.825 MW.

The bank has acted as the lead bank in 18 hydropower projects, co-lead bank in three projects, participating bank in 17 projects and sole investor in four projects.

Region-wise, the bank has invested in 14 projects with a combined capacity of 521.666 MW in Koshi Province, 14 projects totaling 393.825 MW in Bagmati Province, nine projects with 616.465 MW in Gandaki Province, two projects with 53.02 MW in Lumbini Province, and three projects with 20.25 MW in Karnali Province.

On behalf of the promoter company, Chairman Satish Neupane expressed confidence that the project would begin construction immediately and be completed on schedule, stating that all required legal procedures with agencies including the Nepal Electricity Authority, Department of Electricity Development, and the Ministry of Forests and Environment have already been completed.