BY THIRA L BHUSAL--KATHMANDU, July 22
International Finance Corporation (IFC), a member of the World Bank group, has announced it will finance 25 percent of the total investment for 402 megawatt (MW) Arun-III and 300 MW Upper Karnali hydroelectric projects.
IFC took the decision to finance the two big hydroelectric projects at the request of Indian companies GMR Energy Ltd and Sutlej Jal Vidyut Nigam (SJVN), Anita George, Director, Infrastructure of IFC told journalists.
George arrived in Kathmandu to take part in a workshop on "Hydropower Project Financing" jointly organized by Independent Power Producers' Association Nepal (IPPAN), IFC, Nepal Hydropower Association (NHA) and Nepal Bankers' Association (NBA) in the capital on Monday.
The government of Nepal awarded the 300 MW Upper Karnali to GMR last January and the 402-MW Arun-III project to Sutlej in March this year. "IFC will finance 25 percent of the total investment of both projects," George said.
The government of Nepal awarded the 300 MW Upper Karnali to GMR last January and the 402-MW Arun-III project to Sutlej in March this year. "IFC will finance 25 percent of the total investment of both projects," George said.
IFC has already invested 10 percent of the total investment in Khimti and Bhotekoshi hydroelectric projects.
She also said IFC is going to invest US$ 38 million in infrastructure sector. Eighty percent of that will be invested in hydro projects, she added.
George suggested that Nepal should give priority to small and medium sized projects. She informed that IFC would also prefer to finance such projects. "We are looking for medium and small-sized projects. But, we will finance both large as well as small projects," she said. She was of the view that Nepal should adopt public-private partnership model for hydroelectric and other infrastructure development. "Around $10 billion is needed for the 10,800MW Karnali Chisapani Multipurpose Project. Public private partnership concept is essential for such projects," she said.
"Hydropower will give Nepal a big say in regional cooperation," she added.
Addressing the program, Minister for Water Resources Gyanendra Bahadur Karki expressed commitment to crafting a modern Nepal by fulfilling energy needs through rapid development of hydropower sector.
Also, Dr Sandip Shah of IPPAN, Balaram Pradhan of NHA, Radhesh Pant of NBA, Sher Singh Bhat of Nepal Electricity Authority, among others, presented their papers at the workshop.
The conference was also attended by AES, which is one of the world's largest global power companies, that generated approximately $13.6 billion revenues in 2007. Sanjeev Aggrawal of AES also presented a paper.
The conference was also attended by AES, which is one of the world's largest global power companies, that generated approximately $13.6 billion revenues in 2007. Sanjeev Aggrawal of AES also presented a paper.
A large number of policy makers, power producers and bankers from in and outside the country participated in the program.
FROM THE KATHMANDU POST
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