FDI for largest solar power plant gets approval

Investment Board of Nepal (IBN) today approved foreign direct investment (FDI) of $200 million for the development of a 170 megawatt (MW) solar power plant.
It is the first phase – of the largest-ever solar project in the country – that aims at building solar plants with a total installed capacity of 850 MW from solar energy within seven years. The ambitious project is funded by a European group under Dolma Impact Fund, the first international private equity fund for Nepal.
"The first phase of the project is expected to be completed within 2 years to 3 years,” IBN chief executive officer Maha Prasad Adhikari said, adding that the remaining project is expected to be completed by another four years.
According to him, the project would soon start study on the first phase. The group has submitted 10 tentative locations – including Lomangthang, Lekhnath Municipality of Pokhara, Patan of Baitadi and Rasuwa – to set up the solar project.
Recently, the government has started construction of 25MW solar plant at Devighat Hydropower Station in Nuwakot. It was the largest solar power plant at a single location in the country till date. The project will be completed within a year.
Likewise, the government is working to amend a number of laws related to the IBN to facilitate the mega project, while the board is going to amend the Investment Board Act. The Finance Ministry has also started preparations to amend Public Private Partnership (PPP) Act to regulate the board’s operation.