The government is proceeding with a domestic funding model for the 1,063 MW Upper Arun Hydropower Project amid ongoing uncertainty over World Bank financing. The project in Bhotkhola Rural Municipality, Sankhuwasabha, is estimated to cost USD 1.75 billion (Rs 214 billion), including interest and inflation. The proposed investment structure allocates 70 percent debt and 30 percent equity, with institutional promoters holding 51 percent (Rs 36.67 billion) and the general public holding 49 percent (Rs 35.23 billion).
