Kathmandu. The role of the private sector in Nepal’s energy self-sufficiency and sustainable economic development is expanding day by day. Especially, the investment of banks and financial institutions in the hydropower sector has been playing a significant role in enhancing energy production capacity of the country. Continuing this campaign, five banks under the leadership of Citizens Bank International Limited have provided Rs. The 44.52 MW Sanibheri Hydropower Project will be constructed with the investment of Rs 7.20 billion as a consortium loan.

The promoter of the project is Citizen Bank, Nabil Bank, Nepal Investment Mega Bank, Siddhartha Bank, Sanima Bank and Expert Hydro Investment Pvt. Ltd. A co-financing loan agreement has been signed. According to the bank, the project will be constructed in Sisne Rural Municipality and Putha Uttarganga Rural Municipality of Rukum East District of Lumbini Province.

About Rs. The project will have 75 per cent loan and 25 per cent self-capital. Out of the total loan investment, Citizens Bank has invested Rs. Nabil Bank will invest Rs. 2.50 billion in the project. Nepal Investment Mega Bank Rs. 1.50 billion Rs. 1.20 billion, Siddhartha Bank Rs. Sanima Bank and Sanima Bank Rs. 1 billion. They will invest Rs 1 billion. The rest of the capital will be raised from the promoter company.

According to the bank, the project will be completed within the next four years. The electricity generated after the completion of the project will be connected to the national grid through Nepal Electricity Authority’s Bafikot substation.

The project is expected to generate 281.113 gigawatt hours of electricity annually. Out of this, 98.727 GWh will be generated in winter and 182.113 GWh in the rainy season. It is expected to further contribute to the national energy supply and also help in the expansion of clean and renewable energy.

Speaking on the occasion, Chief Executive Officer of the bank Ganesh Raj Pokharel said that the bank has been making investments in the hydropower and green energy sector through the means of single investment, lead bank, co-lead bank and convergence system. The collaboration among the private sector, banking sector and independent power producers has brought remarkable changes in Nepal’s energy sector.

As of now, Citizens Bank has invested in 35 hydropower projects with a total capacity of 1,201.028 MW including 11 projects with a capacity of 166.401 MW and 24 projects of 1,034.627 MW under construction. The bank is a lead bank in 14 projects, co-lead bank in 3 projects, bank participating in 14 projects and sole investor in four projects.

Expert Hydro Investment Pvt. Ltd. Angis Ghimire, chairperson of the project, informed that the legal process required for the construction of the project has been completed and the target is to start the construction work immediately and complete it on time.

Citizens Bank has been prioritizing sustainable development and green investment along with the expansion of financial services. The investment in hydropower, renewable energy and infrastructure development is expected to contribute in the long run to economic development, energy self-reliance and environment-friendly development of the country.

Currently, Citizens Bank International Limited has been providing banking services and facilities to more than 1930,000 customers through a network of 200 branches, 169 ATMs, 3 extension counters and 74 branchless banking units spread across 61 districts of the country. The bank, which has been recognized with the ‘Bank of the Year 2024’ award, has been continuously expanding its service focusing on digital banking, innovation and sustainable development.