50MW Marsyangdi Besi hydel project achieves 25 pc physical progress

KATHMANDU: Construction of 50-megawatt (MW) Marsyangdi Besi Hydroelectric Project has reached approximately 25% physical progress and is advancing rapidly with parallel construction phases. The project is being developed by Divyajyoti Hydropower, a subsidiary of Api Power Company, and is under construction in Besishahar Municipality and Marsyangdi Rural Municipality in Lamjung District, Gandaki Province.

Work across the civil, hydro-mechanical and electro-mechanical sectors is progressing satisfactorily. Significant development has been reported in the intake and desander zones, where the main structure of the desander is being built swiftly. Operations including concrete pouring, structural erection and quality testing are running continuously, with crews previously pouring concrete overnight to maintain momentum.

Excavation for the powerhouse is advancing according to local geological conditions, involving cutting, slope management and infrastructure works to ensure stability. The company said the powerhouse zone remains a priority in the construction schedule.

Meanwhile, for the hydro-mechanical component, fabrication of steel structures, gates, pipes and related equipment has started at a production centre in Hetauda. Manufacturing of electro-mechanical equipment has commenced in Europe and India following an agreement with an international firm; these components will be transported to Nepal for on-site installation once production concludes.

Financially, the project has secured a consortium loan of Rs 7.50 billion, led by Citizens Bank International alongside other participating banks and financial institutions (BFIs). The total estimated project cost is Rs 11.30 billion, with the remaining balance to be met by the company through equity.

Once operational, the generated electricity will connect to the national transmission grid via the Nepal Electricity Authority's 132 kV Udipur Substation, located roughly 8 kilometres from the site. A Power Purchase Agreement has already been finalised with the authority.

Residents affected by the project have invested in the venture, reinforcing community trust and ownership. The company is preparing to conduct an initial public offering (IPO) for both local residents and the general public in the near future.