KATHMANDU, Nov. 2 (Xinhua) -- International Finance Corporation(IFC), a member of the World Bank Group, and eight other international financing partners have joined hands together for the construction of a landmark Upper Trishuli-1 hydroelectric plant in central Nepal.
Amid an agreement signing ceremony held in Kathmandu on Friday evening, the lenders finalized 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 in Rasua district, about 70 km north of Kathmandu.
The signing ceremony of the project, which is one of the largest foreign direct investments in country'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, but it will also serve as an example of how private companies can help Nepal expand its hydropower 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 9 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 financers in the plant.
"This project represents a significant milestone in the development of Nepal's hydropower 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 hydropower to meet the growing domestic demand and export to the neighboring countries.
The new hydroelectric plant is expected to be completed in 2024.
