Untitled Document

World Bank Group approves financing for Nepal's Kabeli-A hydroelectric plant

Nepal Map

The World Bank Group has approved US$84.6 million in financing that will be used to fund Nepal's 37.6-MW Kabeli-A hydroelectric plant.

The run-of-river project, to be located in the eastern Panchtar district, is intended to address the country's energy shortage and help spur economic growth.

"Reliable electricity is central to any modern economic infrastructure," World Bank Country Director for Nepal Johannes Zutt said. "No country has achieved middle-income status without ensuring access to reliable, sustainable and affordable modern energy."

The bank said Nepal currently suffers up to 18 hours of blackouts per day and has less than 1% of its hydroelectric power potential developed.

Included in the financing are a $40 million credit and $6 million grant from the International Development Association (IDA), a $19.3 million loan from the International Finance Corporation (IFC), and a $19.3 million loan from the Canada Climate Change Program (CCCP).

"This World Bank/IFC project will demonstrate how public/private partnerships can help Nepal exploit its hydropower potential and eliminate electricity deficits while also developing hydroelectricity exports as an engine of the nation's economic growth," Zutt said.

Kabeli-A will be developed in three stages, according to the World Bank.

Kabeli Energy Ltd. will first build plant infrastructure including a diversion dam, settling basin, headrace tunnel, semi-underground powerhouse and tailrace. Nepal's Ministry of Energy will then supervise the project's technical, environmental and social compliancy, after which the Investment Board of Nepal will continue improving conditions for future hydropower growth.

HydroWorld.com reported in March that the IFC had pledged $6 billion to help develop as much as 3,000 MW of new hydroelectric capacity in Nepal.

For more news from Asia, visit here.

Did You Like this Article? Get All the Hydro Industry News Delivered to Your Inbox or Mailbox

Subscribe to one of our magazines or email newsletters today at no cost and receive the latest information.

Related Articles

India's NHPC names new chairman, managing director

Indian National Hydroelectric Power Corporation Ltd. has named Shri K.M. Singh as its new ch...

India developer extends construction call for 2,000-MW Subansiri Lower hydro project

India's NHPC Ltd. has extended the deadline for bids to construct civil works of the powerho...

Pakistan's 1,300-MW Tarbela 5th Extension hydropower project receives next-to-last approval

Pakistan's 1,300-MW Tarbela Dam 5th Extension hydropower project received consent from the g...
McLymont Creek hydro operating

66-MW McLymont Creek hydro plant in British Columbia begins operating

The 66-MW McLymont Creek hydro plant, owned by AltaGas Ltd., began operating Oct. 1.

Recent Comments

Hydro Slideshows

more slideshows >>  

Hydro Whitepapers

Industry News

Editor's Picks

Volume 34, Issue 7
Volume 23, Issue 5

Buyers Guide Products

Buyers Guide Companies