The Abu Dhabi Fund for Development (ADFD) has agreed to finance part of Nepal's 140-MW Tanahun hydroelectric plant, sources report.
As per a letter received by Nepal's Ministry of Finance, ADFD will provide US$30 million for the project.
The run-of-river plant is being developed by the Nepal Electricity Authority (NEA) and will be located on the Seti River.
HydroWorld.com reported in January that both the Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) had agreed to finance $150 million each for Tanahun's development. The European Investment Bank (EIB) is also reported to be contributing $70 million.
Work on the project is expected to begin in 2014 and could be generating power by the end of the decade, NEA said.
