Construction of 50 MW Marsyangdi Besi Hydropower Project Gains Momentum

Construction of the 50 MW Marsyangdi Besi Hydropower Project in Lamjung District has gathered pace, with the project reaching approximately 25 percent physical completion. Developed by Divyajyoti Hydropower Limited, a subsidiary of API Power Company Limited, the project is progressing on schedule after securing financial closure. Civil, hydromechanical, and electromechanical works are being carried out simultaneously across Besishahar Municipality and Marsyangdi Rural Municipality in Gandaki Province. Significant progress has been made on the intake and desander structures, while round-the-clock concrete works and excavation for the powerhouse are underway. Fabrication of hydromechanical equipment, including steel structures, gates, and pipes, has already begun at the company's production facility in Hetauda. Meanwhile, electromechanical equipment is being manufactured by international suppliers in Europe and India and will be installed once production is complete. The project is estimated to cost Rs 11.30 billion, with Rs 7.50 billion secured through consortium financing led by Citizens Bank International, while the remaining investment will be covered through equity. Electricity generated by the project will be transmitted through an 8-kilometre transmission line to the 132 kV Udipur Substation of the Nepal Electricity Authority under an existing Power Purchase Agreement (PPA). The company also plans to issue an Initial Public Offering (IPO) to project-affected local residents and the general public in the near future. Once completed, the project is expected to add 50 MW of clean electricity to Nepal's national grid, contributing to the country's growing renewable energy capacity.