IFC to lend $6 billion for hydro projects

IFC to lend $6 billion for hydro projects

The International Finance Corporation (IFC) has pledged financial support worth $6 billion to develop 3000 MW hydropower projects in Nepal. IFC executive vice president Jin -yong Cai expressed IFC’s willingness in assisting Nepal during his meeting with finance minister Dr Ram Sharan Mahat at the World Bank Headquarters in Washington DC. Cai – during the discussion – said that IFC is particularly interested in supporting the construction of hydropower projects that will cater to the domestic consumption demand and also generate enough electricity for export to neighbouring countries. “However, IFC is expecting the government’s support in facilitating the process, including earlier PDA agreement by Nepal Investment Board for the implementation of power projects, and making Nepal Electricity Authority more professional,” said Cai. They also discussed on the progress of Kabeli Power Project of 38 MW that is going to be a joint assignment of IFC, a private sector developer and government. Apart from Kabeli, IFC has shown interest in 213-MW Upper Trishuli, 600-MW Upper Marshangdi, 900-MW Upper Karnali and 900-MW Arun III. Apart from hydel projects, Cai also showed interest in financing projects in other competitive sectors like tourism and telecommunication. Mahat, on the occasion, assured IFC that the government will facilitate the IFC investment in Nepal. "The government is willing to provide fiscal incentives to hydro projects,” he said, adding that the government has recently allowed IFC to issue local currency bond. Apart from lending to construct hydropower projects in Nepal, Mahat also invited IFC for share investment.
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