NPR 129 Billion Financing Secured for 860 MW Tila-1 and Tila-2 Hydropower Projects

Financing has been secured for the Tila-1 and Tila-2 hydropower projects to be developed along the Tila River in Kalikot, Karnali Province, clearing the way for construction of the two projects with a combined capacity of 860 MW. For the 440 MW Tila-2 Hydropower Project, promoted by Urja Tila Power Company, an agreement has been signed with 11 banks and financial institutions led by Everest Bank to provide debt financing. The project has an estimated total cost of NPR 70.07 billion, to be financed through 75% debt amounting to NPR 52.55 billion and 25% equity. Designed as a semi-reservoir project with six hours of daily peaking capacity, Tila-2 is targeted for completion within four years. Meanwhile, 13 financial institutions led by NMB Bank will finance the 440 MW Tila-1 Hydropower Project, promoted by SC Power Company. The project’s 298 MW development component has an estimated cost of NPR 59.40 billion, with electricity generation targeted to begin by Poush 2087. Both projects are designed as peaking hydropower projects, capable of generating higher electricity during periods of peak demand. Once operational, they are expected to significantly support electricity supply management and grid stability in Nepal’s national transmission system. The developers have also stated that the projects will include shareholding from domestic investors, local residents, and the general public.