WB provides additional assistance of Rs 4.53 billion to Nepal

by Glocal Khabar 62 views0

Kathmandu,24 Nov 2014: The International Development Association (IDA) of the World Bank Group has today agreed to provide an additional assistance of Rs 4.53 billion (equivalent to 46 million US dollars) to the Government of Nepal for the implementation of Kabeli-A Hydropower Project.

Out of the total assistance, 40 million US dollars is loan and the remaining amount is grant, the Ministry of Finance stated in a press release today.

Similarly, the International Bank for Reconstruction and Development of the WB has also agreed to provide Rs 780 million (equivalent to 7.9 US dollars) for the implementation of Extended Biogas Project in Nepal.

Secretary at the Ministry of Finance, Suman Prasad Sharma, and World Bank Country Manager, Takuya Kamata, signed both the agreements to this effect today.

The objective of the hydropower project is to construct the 37.6 MW hydroelectricity projects in Kabeli River running through Taplejung and Panchthar Districts under the Public-Private-Partnership (PPP) model. Promotion of PPP especially in infrastructure development is the priority area of the government.

The project also aims at developing the institutional capacity of the Department of Energy Development. The Investment Board will have an access to 4 million US dollars to strengthen its capacity towards preparation and negotiation of PDA with large size project investors. Total cost of the project is 102.08 million US dollars. The project is expected to be completed by June 2019.

The Government of Nepal through a subsidiary loan agreement will relend the total loan to Kabeli Energy Limited through Hydropower Infrastructure Development Company Ltd.

Similarly, the WB acting as an implementing agency of the Scaling Up Renewable Energy Programme (SREP) in Low Income Countries Multi Donor Trust under Strategic Climate Fund will support the objectives of the National Rural Renewable Energy Program (NRREP) for Extended Biogas Project.  The project will be implemented by Alternative Energy Promotion Centre in five years (2014-2019).

On the occasion, the Finance Secretary on the behalf of the government expressed sincere appreciation to the World Bank for this assistance and for its continued support in the socio-economic development of Nepal.

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