WB brings four-pronged strategy to help Nepal develop hydropower

The World Bank has four-pronged strategy to help Nepal develop hydropower.
Concluding her weeklong visit to Nepal today vice-president for South Asia Isabel Guerrero, said that first step is to help urgently relieve the energy shortages through critical investments in the maintenance and rehabilitation of existing plants. "To expand community managed micro-hydro schemes in isolated rural areas is the second priority," she said adding that the third step is to support medium scale hydropower and transmission schemes such as Kabeli-A and transmission interconnection with India for urgent electricity imports during the load-shedding season and subsequent electricity trade.
"Similarly, the fourth step is help Nepal set the stage for larger hydropower projects which can both be transformative for the country's economic growth and for meeting the aspirations of people," Guerrero said adding that ultimately Nepal wil need larger hydropower projects.
During her stay, she met Prime Minister Madhav Kumar Nepal, who also asked the global agency to help Nepal develop hydropower project apart from mid-hill highway. "These programmes will be included in country strategy paper," she informed. She also reiterated that the World Bank Group stands by Nepal as it goes through historic transformations and seals the peace process.
"Once the political agendas are settled, the economic agendas will come in the forefront," said the optimistic Guerrero adding that "currently also at the broader level it seems nothing is moveing ahead but things are really happening at the community level." The vice-president of World Bank for South Asia gave an example of a micro hydro project at Baglung that has helped change the life-style of the community.
Currently, about 25,000 households are served by schemes that the World Bank has financed through the micro hydro projects and an additional 36,000 households will benefit by 2012.
She and members of her team visited several development projects in western Nepal. Guerrero met with community partners and project beneficiaries of the World Bank financed Poverty Alleviation Fund and Social Safety Nets Project in Dolpa district as well as a micro-hydro scheme and a community managed school in Baglung district.
She was impressed by what she saw in the field. "It was remarkable to see how these programmes are getting resources to the poorest and most excluded groups," she said adding that they demonstrate that when the community decides what it wants, even just modest amounts of resources can help many poor families get on a sustainable path out of poverty.
Guerrero thinks Nepal has huge opportunities as it lies in between the two growing economic power houses. "But a long-term vision is needed on economic side and development side," she added.
She also seemed concerned due to absence of central bank governor at such a critical time.