GMR signs joint development accord with IFC for hydropower development in Nepal
GMR Energy Ltd – the energy arm of the GMR Group of India – today signed a Joint Development Agreement (JDA) with the International Finance Corporation (IFC) – a member of the World Bank Group – to jointly develop the prestigious 600 MW-Upper Marsyangdi-2 hydropower project in Nepal.
The 600 MW Upper Marsyangdi-2 Project is located on the Marsyangdi River, in the Manang and Lamjung districts, which is already in an advanced stage of development.
"We are pleased to have IFC as our partners in the Upper Marsyangdi-2 Hydropower project," chairman of Energy Business GBS Raju said, after signing the agreement.
Raju and chief executive -Hydro business of GMR Group G Subba Rao graced the signing ceremony today.
"Apart from investing in the company, IFC will also bring its vast experience in financing similar large and complex Infrastructure Projects, which will add value to the Project," her said, adding that they believe that with the continuous support of Investment Board of Nepal, both GMR and IFC shall be able to implement this project in an accelerated manner.
IFC Infrastructure Director for Asia Anita George, on the occasion said that Nepal faces severe electricity shortages currently. "The development of hydropower is a sustainable and responsible way to address this need while creating jobs and other benefits for the community," she added.
"Nepal is pleased at the induction of an Institution like IFC in the Upper Marsyangdi-2 Project and we are hopeful that GMR and IFC teams shall be able to give Nepal the much needed impetus to large scale hydropower development through development of this project in a world class manner," Speaking on the occasion, chief executive of Investment Board of Nepal Radhesh Pant said.
The project aims at a total investment of around $1 billion and is targeted for commissioning by fiscal year 2021.
The Project is being currently undertaken through a Nepali subsidiary of GMR Energy Ltd Himtal Hydropower Company.
The government has identified the proposed Upper Marsyangdi-II as one of the national priority projects and is being facilitated by the Investment Board of Nepal.
The project has completed all survey and investigation works, finalised the feasibility studies and has already received majority of the clearances from government. The Project Development Agreement (PDA) is expected to be signed early next year.
IFC in Nepal is committed to strengthening private sector growth, promoting a supportive regulatory framework, boosting investment, particularly in infrastructure and financial sector, and creating more jobs in the country.
GMR Group – an infrastructure major, with interests in energy, airports and highways sectors in India and worldwide – is a Bangalore (India) headquartered global infrastructure major with interests in airports, energy, highways and urban infrastructure sectors. It has successfully employed the public-private partnership (PPP) model to build a portfolio of high quality assets. The Group has 15 power generation assets of which eight are operational and seven are under various stages of development and eight road assets, of which seven are operational and one is under construction.