International Finance Corporation (IFC), for the first time, is participating as an equity partner in a hydroelectric project in Nepal and has become 15 per cent equity partner in Upper Trishuli-1 hydroelectric project.
The private sector lending arm of the World Bank (WB) Group has invested $3 million in the 216MW hydropower project, informed the developer of the hydel project Nepal Water and Energy Development Company.
According to the statement of the developer, it is going to use the money to expedite works related to completion of the hydro project. "The project is expected to be complete by 2019," said the developer that is owned 75 per cent by K-Consortium; a group of three Korean companies including Korea South East Power Company, Daelim Industrial Company and Kyeryong Construction Industrial Company.
Nepali investors own remaining 10 per cent stake in the hydel project.
The developer has already acquired all private land required to construction of the project and has also leased government land.However, it still has to enter into Project Development Agreement (PDA), Power Purchase Agreement (PPA) and start main construction work at the project site.