The Government of Japan has agreed to lend approximately US$157M to Nepal to help build the 140MW Tanahu hydropower project.

The 30-year loan will be used to purchase the products and/or services required for the construction of the project, located on the Seti River near Damauli, about 150km west of Kathmandu.

Once complete, Tanahu is expected to have a total storage capacity of 295Mm3 and generate 585GWh per annum contributing significantly to mitigating severe load-shedding in Nepal.