Clean Energy Development Bank Ltd (CEDBL) has entered into agreements with Financierings Maatschappij-voor Ontwikkelingslanden (FMO), the Netherlands, as a foreign joint venture partner and Triodos Renewable Energy for Development Fund (TREDF) as a development partner.
The Fund is a renewable energy fund managed by Triodos Bank, The Netherlands.
Under the agreement, FMO is investing 14 per cent in equity in CEDBL, states a press release of the CEDBL. They are also financing to clean energy projects in Nepal through CEDBL as a subordinated loan upto $5 million. They are also providing an initial amount of $5,00,000 as 'Capacity Building Fund' and 'Access to Energy Fund' for capacity building of micro-finance institutions dedicated to rural financing in Nepal.
FMO is the international development bank of the government of the Netherlands. It invests capital in companies and financial institutions in the private sector in developing countries and emerging markets in Asia, Africa, Latin America and Central and Eastern Europe to contribute to the structural and sustainable economic growth.
Speaking at the signing ceremony, minister for Water Resources Gyanendra Bahadur Karki said new possibilities of water resource development have opened up in Nepal with the joint investment with the foreign banks.
He said hydropower sector is an investment-friendly sector and expressed the hope that the power shortage would be overcome after some years with the construction of new projects.
Acting governor of Nepal Rastra Bank (NRB), Krishna Bahadur Manandhar, on the occasion said the collaboration between the Clean Energy Development Bank and key banks of the Netherlands has opened up new avenues of investments in the hydropower sector.
Chairman of the Clean Energy Development Bank, Dhananjaya Acharya and CEO Manoj Goyal expressed their confidence that partnership with FMO and Triodos would contribute to the sustainable socio-economic development.
Chief of the FMO, Arro De Vette and Gerrit Jan Bruink also addressed on the occasion. "There is vast possibilities for investments in the promotion of energy sector in Nepal," they said.