KATHMANDU, MAR 17 – International Finance Corporation (IFC) and Asian Development Bank (ADB) signed financing mandate letters with Nepal Water and Energy Development Company (NWEDC) and sponsors on Monday.
The signing of the mandate letters will enable the financiers to begin the appraisal process. However, the process cannot be completed unless the Project Development Agreement (PDA) and Power Purchase Agreement (PPA) are both signed and are satisfactory to the lenders.
NWEDC is the developer of the 216 MW Upper Trishuli-1 Hydroelectric Project in Rasuwa, Nepal. The Korean Consortium composed KOSEP, Daelim and Kyeryong own 75 percent stake, while IFC owns 15 percent and local developer owns 10 percent stakes in the company.
KOSEP is the Korean government undertaking while Daelim & Kyeryong are world renowned construction companies. The company is having the negotiation process with the government, the Ministry of Energy for concluding the PDA, while the PPA negotiation with Nepal Electricity Authority is also in process. The Company has signed contract agreement with the Nepal government based on the Clause 35 of the Electricity Act 1992 for the development of the Project.
Source : eKantipur Upper