IFC to give $6bn for hydro projects

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    KATHMANDU:

    International Finance CorporationThe International Finance Corporation (IFC) has pledged financial support worth $6 billion to develop 3000 MW hydropower projects in Nepal.

    IFC Executive Vice President Jin -yong Cai expressed the IFC’s willingness in assisting Nepal during his meeting with Finance Minister Ram Sharan Mahat at the World Bank Headquarters in Washington DC.

    During the discussion, Cai revealed that IFC is particularly interested in supporting the construction of hydropower projects that will cater to the domestic consumption demand as well as generate enough electricity for export to neighbouring countries.

    “For this, IFC is expecting the government’s support in facilitating the process, including PDA agreement by Nepal Investment Board for the implementation of power projects,” said Cai.

    Both sides acknowledged the progress made in the construction of Kabeli Power Project of 38 MW, the project started by IFC, a private sector developer and government’s participation.

    Moreover, Cai showed interest in financing projects in other competitive sectors such as in tourism and telecommunication.

    In the meeting, the finance minister assured IFC that the government will take all necessary decisions to facilitate the IFC investment in Nepal.

    “The government is willing to provide fiscal incentives to hydro projects,” said Mahat, citing the example of recent government decision to allow IFC to issue local currency bond.

    Source : The Himalayan Times