KATHMANDU, Nov 3 (NNN-NEPALNEWS) – International Finance Corporation(IFC), member of the World Bank Group, and eight other international financing partners, joined hands for the construction of a landmark Upper Trishuli-1 hydroelectric plant in central Nepal.
Amid an agreement signing ceremony, held in Kathmandu, the lenders finalised a 453-million-U.S. dollar debt financing package, to develop and operate a 216-megawatt, run-of-the-river hydroelectric plant, on the Trishuli River, about 70 km north of Kathmandu.
The signing ceremony, which is one of the largest foreign direct investments in Nepal’s history, by the private sector, was witnessed by Nepal’s Minister of Energy, Barshaman Pun and Finance Minister, Yubaraj Khatiwada, among others.
“This project is a game-changer for Nepal. Not only will it power hundreds of thousands of homes and businesses, it will also serve as an example of how private companies can help Nepal expand its hydro-power sector and attract much needed foreign direct investment,” Pun remarked.
The financing is being provided to the privately-owned Nepal Water and Energy Development Company.
According to the company, the plant will increase Nepal’s electricity supply by one-third from today’s levels, and provide clean, reliable power to some nine million people, part of a larger effort by IFC to create markets and fight poverty in the country.
IFC, Asian Development Bank, Asian Infrastructure Investment Bank, Export-Import Bank of Korea, Korea Development Bank, CDC Group, Netherlands Development Finance Company, the OPEC Fund for International Development among others, are the financiers in the plant.
“This project represents a significant milestone in the development of Nepal’s hydro-power potential, as it has been able to attract meaningful private sector participation, particularly from international investors,” Mengistu Alemayehu, IFC Director for South Asia, told the media.
He expressed hope that the project could become a model for expanded investments in developing Nepal’s hydro-power to meet growing domestic demand and export to neighbouring countries.
The new hydroelectric plant is expected to be completed in 2024.– NNN-NEPALNEWS
