Kathmandu, 17 November – Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development Minister Kulman Ghising has urged the Asian Development Bank (ADB) to immediately finalize the financial arrangements for the 670-megawatt Dudhkoshi Reservoir Hydropower Project.
In a meeting on Monday with a team including Sona Shrestha, Deputy Director General of ADB’s South Asia Department, and Arnaud Kushwal, Head of ADB’s Resident Mission in Nepal, Minister Ghising stated that the financial arrangements for the Dudhkoshi project have been under discussion for a long time and need to be finalized immediately.
The estimated cost of the project, including interest during the construction period, is USD 220 million (approximately NPR 22.5 billion). Of this, USD 168 million is planned to be raised through loans, with the remaining amount mobilized from equity, as part of the financial arrangements.
Under the leadership of ADB, various international financial institutions will invest USD 100 million in concessional loans for the project. Of this, ADB has committed to providing USD 55 million in concessional loans. Currently, pre-construction preparatory work for the project is underway.
In the meeting, Minister Ghising urged for increased investment in areas such as drinking water, roads, irrigation, and the improvement of electricity transmission and distribution systems. He also requested support for feasibility studies for flyovers, tunnels, and other measures to manage traffic at various junctions in the Kathmandu Valley.
He stated that issues related to land use in forest areas, tree felling, land acquisition, and compensation for public land in projects supported by ADB, as well as other environmental and social safeguards, will be addressed. He added that the institutional capacity of implementing agencies will be continuously developed to ensure effective implementation.
ADB was requested to help enhance the spending capacity of projects supported by its assistance, resolve issues related to land acquisition and compensation for public land, and strengthen the capacity of the agencies responsible for project implementation.