World Bank agrees to give USD 46m for Nepal’s Kabeli hydro project

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    wbankKathmandu, Nov.25: The Government of Nepal and the World Bank (WB) have signed a USD 46 million loan and grant agreement for the Kabeli Hydroelectric Project despite the Commission for the Investigation of Abuse of Authority (CIAA) ordering termination of its licence.

    The deal is expected to address CIAA concerns over non-completion of the project’s financial closure.

    Of the total funding agreed, USD 40 million is on loan, while the balance of USD six million is being offered as a grant, reports the Kantipur Online.

    Nepal’s Finance Secretary Suman Prasad Sharma and the World Bank’s Country Manager for Nepal Takuya Kamatak signed the pact on Monday.

    While the loan component will be used for developing the 37.6 MW hydroelectric project, the grant will be used for developing the institutional capacity of the Department of Energy Development (DoED) and strengthening the capacity of Investment Board Nepal for preparing and negotiating power development agreements (PDA) with large project investors, said the Finance Ministry.

    The hydropower project is located on the Taplejung-Panchthar border in eastern Nepal and is expected to be completed by June 2019.

    Source : ANI