GMR Energy signs an agreement with IFC for Nepal project

GMR_JVA_IFCNEW DELHI: GMR Energy today signed an agreement with the International Finance Corporation to jointly develop the 600 MW hydro power project in Nepal.

“GMR Energy Limited today signed a Joint Development Agreement (JDA) with the International Finance Corporation (IFC), the private sector lending arm of the World Bank, to jointly develop the Upper Marsyangdi-2 600 MW hydro power project in Nepal,” the company said in a statement.

The 600-MW Upper Marsyangdi-2 Project, expecte to be built at an investment of USD 1 billion, is located on the Marsyangdi River, in the Manang and Lamjung districts of Nepal, which is in an advanced stage of development.

The project is currently being undertaken by Himtal Hydro Power Company Private Ltd, a subsidiary of GMR Energy Ltd which in turn is a subsidiary of GMR InfrastructureBSE 6.98 % Ltd, the statement said.

The Government of Nepal has identified the proposed Upper Marsyangdi-2 as one of the National Priority Projects and it is being facilitated by the Investment Board of Nepal (IBN).

The project has completed all survey and investigation works, finalised the feasibility studies and has already received a majority of clearances from the Government of Nepal, it added.

The Project Development Agreement is expected to be signed early next year.

The agreement was signed in the presence of GBS Raju, Chairman, Energy Business, and G Subba Rao, CEO-Hydro business of GMR Group.

“We are pleased to have IFC as our partners in the Upper Marsyangdi-2 Hydropower project. Apart from investing in the company, IFC will also bring its vast experience in financing similar large and complex infrastructure projects, which will add value to the project,” GBS Raju said.

The project aims at a total investment of around USD 1 billion and is targeted for commissioning by financial year 2021, it further added.

Source : The Economic Times

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GMR, IFC pact to build Upper Marsyangdi 2

KATHMANDU, DEC 21 –

GMR Energy Limited , the energy arm of the GMR Group of India, has signed a Joint Development Agreement (JDA) with International Finance Corporation (IFC), a member of the World Bank Group, to jointly develop the Upper Marsyangdi 2 hydropower project.

The 600 MW project, located on the Marsyangdi River in Manang and Lamjung districts in western Nepal, is already at an advanced stage of development. The project is being built through Himtal Hydropower, a Nepali subsidiary of GMR Energy Limited .

The Upper Marsyangdi project has completed all survey and investigation work, finalized the feasibility studies and received most of the required clearances from the government, said the company in a press statement. “The Project Development Agreement is expected to be signed early next year,” reads the statement.

“We are pleased to have IFC as our partner in the Upper Marsyangdi 2 hydropower project. Apart from investing in the company, IFC will also bring its vast experience in financing similar large and complex infrastructure projects which will add value to the project. We believe that with the continuous support of Investment Board Nepal, both GMR and IFC shall be able to implement this project in an accelerated manner,” said GBS Raju, chairman, Energy Business, GMR.

“Nepal government is pleased at the induction of an institution like IFC in the Upper Marsyangdi 2 Project and we are hopeful that the GMR and IFC team shall be able to give the much needed impetus to large-scale hydropower development in Nepal through the development of this project in a world class manner,” said Radhes Pant, CEO of Investment Board Nepal.

The project has aimed at a total investment of around US$ 1 billion and is targeted for completion by fiscal 2021.

Source : The Kathmandu Post