• Upper Marsyangdi HEP



Located on the Lamjung and Manang districts, the Upper Marsyangdi is a 600 MW, export-oriented Peaking Run-of-River (PRoR) Project with 3.1 hours minimum peaking capacity. Upper Marsyangdi-2 Hydro-Electric Project is a high head, run of the river scheme with storage capacity envisaged for installation of four generating units of 150 MW each giving a total installed capacity of 600 MW. The design energy per year is 2282.0 GWh. Construction is expected to take 7 years.

The associated transmission line is a 400 kV line being developed by Marsyangdi Transmission Co. Pvt. Ltd. Efforts are underway to jointly develop the transmission corridor with the NEA. 

Detailed Project Report and Environmental Impact Assessment have been completed. IBN is in preparatory stages for PNA negotiations with the developer. Project’s commercial operation is expected to begin in 2025/26. 

Salient Features

Investment Size (Approx.)&nbsp n/a
Developer Himtal Hydropower Company P. Ltd
PPP Model Build, Operate, Own and Transfer; 25 Years
GoN Partner Ministry of Energy (MOE)
Nepal Electricity Authority (NEA)
Location Dam Site: 28°30’00”N 84°25’03”E
Power House: 28°22’04”N 84°21’30”E
Design Energy Wet Energy: 1795 Gwh ; Dry Energy: 487 Gwh
Gross Head 627.7 m
Reservoir (Gross Storage) 2.75MCM
Hydrology 2276 km²
Dam Height (Max) 32m from deepest foundation level
Dam Type Rockfill
Turbine 4*150MW Pelton Vertical Shaft Turbine
Design Discharge 110m3/s (cumec)
Head Race Tunnel 1 HRT of 6.7m diameter and 9.2 km length (Horse Shoe Shaped)

Expected Benefits

Financial Benefits: 

Lifetime Royalties to GoN n/a
Lifetime Energy to GoN (Approx Value) n/a
Lifetime Income taxes to GoN n/a
Total lifetime financial benefits to GoN n/a

Local Benefits:

Development of the region: Project will generate employment for the locals, boost local industries, and foster entrepreneurship. Other Projects of this scale have generated over 2000 direct jobs during peak construction period.

Industrial Benefits: Nepali suppliers will be given a fair opportunity to compete. Growth of local shops, traders, catering & hotel services, etc. 

Rural Electrification & Local Shares: Electrification of affected areas and option to purchase shares.

Robust Community Infrastructure and Financial Support: Construction of roads, bridges, schools, healthcare and community centers, etc. to provide a robust community infrastructure.  Skills training and other programs will provide great financial support to the affected communities. 


IBN Project Cycle

Phases of Project


The key challenge for the Upper Marsyangdi II project for IBN is to sign the Project Negotiation Agreement (PNA) which will pave the way for Project Development Agreement (PDA) negotiations for the project. 


Way Forward

The PNA will form a base for further negotiations by clearly laying out allocation of responsibilities to the parties with regards to the project. The PNA will also outline specific details on timelines for discussions and reporting obligations to ensure project progress




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