News

AIIB makes first Nepal foray with $90m hydropower loan

Hydroelectric_stationThe Asian Infrastructure Investment Bank (AIIB) made its first investment foray into Nepal after its board of directors gave the green light for a loan of up to $90 million for a hydropower project. The funds are earmarked for the Upper Trishuli-1 Hydropower Project and is part of the AIIB’s wider efforts to “support the development of Nepal’s electricity sector,” AIIB said in a statement. The project will increase Nepal’s power generation by nearly 20% and power will be sold to the Nepal Electricity Authority. “We recognise that power supply shortages in Nepal have caused significant delays in the restoration of infrastructure and services impacted by the 2015 earthquake,” said D.J. Pandian, vice-president and chief investment officer of the AIIB. “By investing in hydropower and encouraging further private sector investment in the country, we will help drive economic growth and poverty alleviation efforts,” he added. According to the expected results, people affected by the project will have the right to buy up to 10% of its shares at par value and eligible households will receive 20 kilowatt-hours of free power monthly. The project is a $650 million investment that is wholly paid for by foreign capital. It is co-financed with the International Finance Corporation and Asian Development Bank, amongst others. ©2019 funds global asia

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