The 420 MW Tilaa-2 Hydropower Project in Kalikot, Karnali, has secured Rs 70.07 billion in investment, completing its financial management. Tilaa Power Company finalized the investment agreement with a consortium of banks and financial institutions led by Everest Bank.

Of the total project investment, 75% or Rs 52.55 billion will be financed through debt, while the remaining 25% or Rs 17.52 billion will come from equity.

Sanima Bank is the co-lead institution, while Prime Commercial Bank, NIC Asia Bank, Global IME Bank, Siddhartha Bank, Nabil Bank, Nepal Infrastructure Bank, Agriculture Development Bank, Muktinath Development Bank and Kamana Sewa Bikas Bank are participating in the financing.

The project will have its dam in Tilagufa Municipality and powerhouse in Khandachakra Municipality of Kalikot. The semi-storage PRoR project is planned to operate with up to six hours of daily peaking capacity.

The project is estimated to generate 2,318.79 GWh of electricity annually. Of this, 451.05 GWh is projected during the dry-season peak period, 205.45 GWh during the off-peak period and 1,662.29 GWh during the wet season.

Tilaa-2 received its generation license from the Department of Electricity Development on August 23, 2018. The project also signed a 296.74 MW Power Purchase Agreement (PPA) with the Nepal Electricity Authority on November 7, 2024.

The project is targeted for completion within four years from the start of construction. Stream Investment, Energy Impact Fund, Robbins USA and other institutional and individual investors are participating in the project.

The project has allocated 20% of its shares to project-affected local residents and the general public, potentially creating an opportunity for wider public participation in the project.