Niti Partners is proud to announce its contribution to the Nepal chapter of the highly anticipated Global Project Finance Guide 2026, published by Ergun Books UK. The guide brings together insights from more than 25 leading international law firms and legal experts worldwide, making it one of the most authoritative resources on global project finance, infrastructure investment, energy law, and cross-border financing frameworks.

The 2026 edition is edited by the distinguished international legal scholar Dr. Çağdaş Evrim Ergün and provides in-depth analysis of evolving project finance structures, regulatory reforms, lender protections, public-private partnership models, and infrastructure investment trends across major jurisdictions.

The Nepal chapter has been authored by Sameep Khanal, Managing Partner at Niti Partners, who is widely recognized for his expertise in project finance, foreign investment law, infrastructure transactions, hydropower financing, energy law, and complex cross-border commercial matters in Nepal.

The contribution serves as a comprehensive legal roadmap for international lenders, multilateral agencies, infrastructure sponsors, private equity investors, project developers, and financial institutions seeking to understand Nepal’s rapidly evolving project finance ecosystem. Read our detailed guide.

Why the Global Project Finance Guide 2026 Matters

The Global Project Finance Guide 2026 is regarded as a premier international legal reference for stakeholders involved in infrastructure development and structured financing. It provides comparative jurisdictional analysis from top law firms across Asia, Europe, the Middle East, Africa, and the Americas.

As infrastructure financing becomes increasingly globalized, investors and lenders require jurisdiction-specific guidance that addresses:

• Bankability of infrastructure projects
• Security enforcement mechanisms
• Regulatory approval frameworks
• Foreign lending restrictions
• Public-private partnership laws
• Energy sector reforms
• Foreign exchange regulations
• Risk allocation structures
• Government guarantees and sovereign support
• Dispute resolution mechanisms

Nepal’s inclusion in this prestigious publication highlights the country’s growing importance in South Asian infrastructure development and cross-border energy investment.

The Nepal chapter authored by Niti Partners provides practical and commercially focused guidance for navigating Nepal’s project finance landscape while addressing legal and regulatory risks relevant to foreign investors and lenders.

Nepal’s Growing Importance in Project Finance and Infrastructure Investment

Over the past decade, Nepal has emerged as a promising destination for infrastructure and energy investments, particularly in sectors such as:

• Hydropower development
• Renewable energy projects
• Transmission infrastructure
• Roads and transport networks
• Airports and aviation infrastructure
• Telecommunications
• Urban infrastructure
• Special economic zones
• Industrial projects

Nepal’s vast hydropower potential and increasing regional energy integration with neighboring countries have attracted significant attention from international financiers, export credit agencies, development finance institutions, and private investors.

At the same time, the legal and regulatory environment governing project finance transactions in Nepal continues to evolve rapidly. Foreign lenders and project sponsors often face challenges involving:

• Security perfection
• Land mortgage structures
• Repatriation approvals
• Currency risk
• Government licensing
• Foreign loan approvals
• Regulatory coordination
• Political and sovereign risk

The Nepal chapter in the Global Project Finance Guide 2026 addresses these issues comprehensively and provides actionable legal insight for project participants operating in Nepal.

Key Highlights from the Nepal Chapter of the Global Project Finance Guide 2026

1. Market Maturity and Landmark Project Finance Closures in Nepal

One of the key themes explored in the Nepal chapter is the growing maturity of Nepal’s project finance market.

Over recent years, Nepal has witnessed several landmark financial closures in infrastructure and hydropower projects involving:

• International commercial banks
• Multilateral development banks
• Export credit agencies
• Bilateral financial institutions
• Domestic financial institutions
• Cross-border consortium lenders

These transactions demonstrate increasing sophistication in Nepal’s project financing structures and growing confidence among foreign investors and lenders.

The chapter analyzes how Nepal’s project finance market is evolving from traditional corporate lending models toward more sophisticated limited recourse and non-recourse financing structures commonly used in mature infrastructure markets.

It also explores trends such as:

• Syndicated lending arrangements
• Foreign currency financing
• Sponsor support structures
• Escrow and cash waterfall mechanisms
• Political risk mitigation
• Credit enhancement structures
• Government support agreements
• Step-in rights for lenders

The analysis provides valuable insight into how international financing standards are gradually being integrated into Nepal’s legal and commercial environment.

2. Evolving Security Structures in Nepal’s Lending Market

Another major focus of the Nepal chapter is the evolution of security structures in Nepalese project finance transactions.

Securing lender interests remains one of the most critical aspects of project finance. However, Nepal’s legal framework presents unique challenges, especially for foreign lenders seeking enforceable security over project assets.

The guide provides detailed analysis of:

• Security trustee structures
• Share pledges
• Assignment of receivables
• Account security
• Mortgage arrangements
• Floating charges
• Direct agreements
• Enforcement rights
• Intercreditor arrangements

A particularly important topic covered in the chapter is the evolving role of security trustees in Nepal’s lending market.

As multi-lender financing transactions become more common, the use of security trustees has become increasingly relevant for holding and enforcing security interests on behalf of lending syndicates.

The chapter explains how Nepalese legal practice is adapting to accommodate these structures and discusses practical considerations for structuring enforceable security packages.

3. Mortgage Challenges for Foreign Lenders in Nepal

The Nepal chapter also addresses one of the most debated issues in Nepalese project finance law the uncertainty surrounding mortgages over immovable property granted in favor of foreign lenders.

Foreign lenders frequently seek mortgage security over land and immovable project assets as part of infrastructure financing transactions. However, Nepalese legal practice and administrative interpretations regarding foreign mortgage rights have historically been inconsistent.

The guide provides a practical examination of:

• Existing legal ambiguities
• Regulatory practice
• Administrative interpretation trends
• Security perfection challenges
• Risk mitigation strategies
• Alternative security structures

This section is especially valuable for international banks, export credit agencies, development finance institutions, and infrastructure investors assessing the bankability of Nepal-based projects.

The chapter also discusses how market participants are structuring transactions to manage legal uncertainty while maintaining compliance with Nepalese laws and regulatory expectations.

Regulatory Developments Transforming Nepal’s Project Finance Landscape

Public-Private Partnership and Investment Act (PPPA)

One of the most important regulatory developments analyzed in the guide is Nepal’s Public-Private Partnership and Investment Act (PPPA).

The PPPA represents a major step toward strengthening Nepal’s infrastructure investment framework by encouraging greater private sector participation in public infrastructure projects.

The chapter examines:

• PPP project approval mechanisms
• Investment facilitation procedures
• Institutional frameworks
• Government support measures
• Risk-sharing models
• Contractual structures
• Concession arrangements
• Foreign investment protections

For international investors considering infrastructure projects in Nepal, understanding the PPPA is essential for evaluating project viability and regulatory compliance.

The guide provides a clear and commercially practical overview of how the legislation impacts project development and financing structures.

Nepal Rastra Bank Foreign Loan By-laws

Another major area covered in the Nepal chapter is the latest Nepal Rastra Bank (NRB) Foreign Loan By-laws.

Foreign borrowing regulations play a central role in Nepal’s project finance ecosystem because most large-scale infrastructure projects depend heavily on international financing.

The chapter explains key aspects of the NRB regulatory framework, including:

• Foreign loan approval procedures
• Permitted financing structures
• Interest rate restrictions
• Reporting obligations
• Currency conversion requirements
• Debt servicing regulations
• Security approval considerations
• Compliance obligations for borrowers

The guide also highlights practical challenges frequently encountered during regulatory approval processes and offers insight into how transactions can be structured efficiently within Nepal’s foreign exchange regulatory framework.

For lenders and investors, these insights are critical for reducing transaction uncertainty and ensuring timely project execution.

Niti Partners: A Leading Law Firm in Nepal’s Infrastructure and Project Finance Sector

Niti Partners has established itself as one of Nepal’s leading law firms in the fields of:

• Project finance
• Infrastructure law
• Energy and hydropower law
• Foreign investment
• Banking and finance
• Corporate and commercial law
• Public-private partnerships
• Regulatory compliance
• International transactions

The firm regularly advises:

• International lenders
• Development finance institutions
• Infrastructure sponsors
• Energy developers
• Private equity funds
• Commercial banks
• Export credit agencies
• Government entities
• Multilateral institutions

Niti Partners is particularly recognized for its extensive experience in Nepal’s hydropower and renewable energy sectors, where sophisticated financing structures and regulatory navigation are essential for successful project development.

The firm’s contribution to the Global Project Finance Guide 2026 further reinforces its reputation as a trusted legal advisor for complex infrastructure and cross-border financing transactions in Nepal.

Expertise in Hydropower and Renewable Energy Financing

Nepal’s energy sector continues to attract substantial foreign investment due to the country’s immense hydropower potential.

Niti Partners has advised on numerous energy and infrastructure projects involving:

• Hydropower project development
• Cross-border energy trade
• Power purchase agreements
• Transmission projects
• Foreign investment structuring
• Debt financing
• Security package structuring
• Government approvals
• Regulatory licensing

The firm’s expertise allows international investors and financiers to navigate the legal, regulatory, and commercial complexities associated with energy and infrastructure projects in Nepal.

As Nepal continues to position itself as a regional clean energy hub, sophisticated legal support will remain essential for facilitating investment and ensuring bankable project structures.

Supporting Foreign Investors and International Financial Institutions

Foreign financiers entering Nepal often face unfamiliar legal systems, evolving regulations, and administrative complexities.

Niti Partners provides strategic legal guidance designed to help international stakeholders:

• Structure compliant financing transactions
• Protect lender interests
• Secure regulatory approvals
• Manage transaction risk
• Navigate foreign exchange rules
• Structure enforceable security arrangements
• Resolve regulatory ambiguities
• Negotiate project documentation

The firm’s deep understanding of both Nepalese law and international financing standards enables it to bridge the gap between local regulatory requirements and global market expectations.

This capability is increasingly important as Nepal attracts more sophisticated infrastructure financing transactions involving multiple jurisdictions and complex stakeholder structures.

Nepal’s Future as a Regional Infrastructure Investment Destination

Nepal’s infrastructure sector is entering a transformative period driven by:

• Rising energy demand
• Regional electricity trade opportunities
• Government infrastructure initiatives
• Foreign investment reforms
• Public-private partnership expansion
• Renewable energy development
• International financing participation

The legal and regulatory environment is also becoming increasingly sophisticated, creating new opportunities for project developers, lenders, and investors.

However, successful infrastructure investment in Nepal requires careful legal structuring, regulatory compliance, and risk management.

The Nepal chapter of the Global Project Finance Guide 2026 offers critical insight into these evolving dynamics and serves as an essential resource for stakeholders evaluating infrastructure and energy investments in Nepal.

Conclusion

Niti Partners’ contribution to the Global Project Finance Guide 2026 published by Ergun Books UK marks an important milestone for Nepal’s legal and infrastructure sectors.

Authored by Sameep Khanal, the Nepal chapter delivers a comprehensive and practical analysis of Nepal’s evolving project finance landscape, including landmark financing trends, security structures, mortgage enforcement challenges, PPP reforms, and foreign lending regulations.

As Nepal continues to attract international infrastructure and energy investment, the need for sophisticated legal guidance and commercially focused advisory services will only continue to grow.

Niti Partners remains committed to supporting foreign investors, lenders, sponsors, and project participants through every stage of complex infrastructure and project finance transactions in Nepal.

For international financiers, infrastructure developers, and investors seeking trusted legal expertise in Nepal, Niti Partners continues to stand at the forefront of project finance, energy law, and infrastructure investment advisory services.