The bank will partner with Bastola Organization’s affiliate S.C. Power Company for the development of $649m Tila-1 plant and the $555m Tila-2 hydroelectric project on the Tila River in the Kalikot district.
The Nepal Electricity Authority and India’s KSK Energy Ventures will purchase power generated from the two power plants, which are expected to take five years to complete.
InvestBank analyst Maxwell Pedroza said: "We are excited to cooperate with Bastola Organization to develop these hydroelectric power projects.
"These projects will improve the standard of living and the health of the local people and will help prevent deforestation."
The two hydro power projects will together generate power to meet the energy needs of over 6 million Nepalese households.
Nepal, which lacks reserves of oil, coal, or gas, is dependent on power generated from hydro sources fort to meet energy demand.
Nepal is estimated to have a potential to generate 42,133MW of hydropower and but only 1.7% of that potential is tapped.
