NMB Bank Commits NPR 1.24 Billion to 9 MW Khimti-Ghwang Hydropower Project, Bolstering Nepal's Green Energy Future

NMB Bank, a leading commercial bank in Nepal renowned for its focus on sustainable finance, has announced a significant investment of NPR 1.24 billion (approximately USD 9.3 million) in the 9-megawatt (MW) Khimti-Ghwang Small Hydropower Project. This crucial financial backing, extended as a loan facility, underscores NMB Bank's unwavering commitment to fostering sustainable energy development and supporting Nepal's ambitious renewable energy targets. The project, promoted by Wonders Energy Pvt. Ltd., is poised to contribute significantly to the national grid upon its completion, enhancing energy security and reducing reliance on traditional power sources.

The formal loan agreement was executed on Shrawan 12, 2083 (July 27, 2026), solidifying the strategic partnership between the prominent financial institution and the energy developer. Representing NMB Bank, Mr. Dinesh Dulal, Head of the Sustainable Energy Banking Department, signed the agreement, while Mr. Prakash Chandra Dulal, Managing Director of Wonders Energy Pvt. Ltd., signed on behalf of the project company. This collaboration highlights the growing synergy between Nepal's progressive financial sector and its burgeoning hydropower industry, which is vital for driving economic growth, creating employment opportunities, and ensuring a greener future for the nation.

The Khimti-Ghwang Small Hydropower Project carries an estimated total cost of NPR 1.80 billion (approximately USD 13.5 million). The financing structure demonstrates a balanced and prudent approach, with NPR 1.24 billion secured through the bank loan and the remaining NPR 560 million (approximately USD 4.2 million) to be raised through equity. Wonders Energy Pvt. Ltd. has already successfully mobilized NPR 350 million of the required equity, showcasing strong investor confidence, with plans to secure the remaining capital by Ashoj (mid-October) of the current fiscal year. This robust financial planning is a positive indicator for the project's timely execution and long-term viability, providing assurance to all stakeholders.

Strategically located, the project is being developed on the Khimti-Ghwang River, which forms a natural boundary between Jiri Municipality Ward No. 1 in Dolakha District and Gokulganga Rural Municipality Ward No. 1 in Ramechhap District. This region is known for its significant hydropower potential and contributes to the decentralized energy generation model that Nepal is increasingly adopting to ensure wider access to electricity. The project's physical progress currently stands at approximately 30%, indicating steady and commendable advancement since its inception. Key initial milestones, including the construction of essential access roads, robust warehouses, comfortable staff housing, and crucial land acquisition, have already been successfully completed. Furthermore, contracts for the vital civil, hydro-mechanical, and electro-mechanical works have been awarded to experienced contractors, and construction activities are proceeding at an accelerated pace, adhering to strict quality and safety standards.

A notable and commendable aspect of the Khimti-Ghwang project is its unwavering commitment to international best practices in environmental and social sustainability. Situated within the ecologically sensitive Gaurishankar Conservation Area, the project is reportedly the first in Nepal to meticulously utilize "Hydro Select Tools." According to Mr. Prakash Chandra Dulal, Managing Director of Wonders Energy, this innovative and comprehensive approach ensures that the project adheres to stringent international standards for social and environmental impact assessment and mitigation throughout its construction and operational phases. This profound commitment to responsible development is crucial, especially for projects located in protected areas, setting a commendable precedent for future hydropower initiatives across Nepal.

The project has also secured all necessary governmental approvals, including critical permits for land acquisition and tree cutting, which were granted by the Cabinet meeting on Baisakh 15 (April 27) of the current year. Such timely regulatory clearances are vital for maintaining project momentum and avoiding costly delays. With construction in full swing, Wonders Energy Pvt. Ltd. has set an ambitious yet achievable target to complete the project and commence electricity generation by Chaitra 2084 (March/April 2028). This timeline positions the Khimti-Ghwang Hydropower Project to play a significant role in meeting Nepal's rapidly growing energy demand and contributing substantially to the nation's economic prosperity through clean, reliable, and renewable power. Investors and stakeholders will be keenly watching its progress as it moves towards becoming an operational asset in Nepal's expanding green energy portfolio, promising long-term returns and environmental benefits.