Upper Karnali project set to advance after years of funding delays
Summary
The long-delayed 900-megawatt Upper Karnali Hydropower Project is set to move toward construction after the Investment Board decided to facilitate the immediate start of work. GMR Group says it will proceed once it receives the official letter, following years of funding delays and court battles over financial closure.
Key Points
- Investment Board Nepal has decided to facilitate the immediate commencement of construction for the Upper Karnali Hydropower Project under the project development agreement.
- GMR Group says it has secured funding support, including a proposed loan from IREDA and in-principle backing from Nepali banks, but is still awaiting the board’s official letter.
- The project has faced repeated delays, deadline extensions, and Supreme Court challenges over financial closure and shareholding changes.
- The Supreme Court ruled that GMR had already been given enough time to mobilise funding and no further extension was necessary.
