Nepal Invests launched to accelerate investment in Nepal

 CDC Group, the UK’s development finance institution, FMO, the Dutch development bank and Swiss Agency for Development and Cooperation SDC jointly launched a platform, Nepal Invests that will drive increased investment into the country.

The group comprising of Development Finance Institutions (DFIs) and a development partner, will complement existing efforts to attract more investments and advance the development of the country, by channelling efforts to unlock the possibilities of investing patient, flexible capital to support private sector growth and innovation – helping to solve the biggest development challenges in Nepal, accortding to a press note issued by the SDC.

The Covid-19 pandemic has challenged the world, it reads, adding that for Nepal, it is clear that there will be significant economic pressure as a result of potentially volatile remittance inflows, and a surge in demand for finance at a time when the crisis has significantly reduced access and option of capital for SMEs. "Nepal Invests will support the economic recovery from Covid-19 in multiple ways; partnering to address business environment challenges, exploring innovative ways to finance SMEs and increasing the skills and capacity of local investment professionals."

These measures are designed to better prepare Nepal’s market for increased investment from development finance institutions, frontier players, and intermediate vehicles in order to support the medium-term economic recovery, it adds.

Nepal Invests represents a ground-breaking collaboration between DFIs and development partners in the country, reflecting shared objectives to support business growth, strengthen investment and accelerate Nepal’s economic recovery from COVID-19. The platform intends to mobilise additional supporting projects and contributions from other DFIs and development partners, whilst engaging closely with the needs of the Nepali private sector.

"CDC is an active investor in Nepal, we want to encourage more foreign direct investment (FDI) into the prospering nation," managing director and head of Asia at the CDC Group Srini Nagarajan said, adding that they are delighted to partner with FMO and the Swiss government in the unique collaboration between DFIs and development partners in Nepal that aims to attract foreign capital into the country. "The role of DFIs has been important in Nepal and will remain important after Covid-19, to support green growth and economic transformation."

"We hope to play an even stronger role in the future, he added. "I am hopeful this initiative will help us deepen our contextual understanding, forge partnerships and enable us to do more."

"FMO has played a pioneering role for development finance in Nepal," manager capacity development officer at FMO Andrew Shaw said, adding, "With our support to Nepal Invests, we hope to accelerate investment in the country and to support foreign investors to increasingly focus on Nepal."

"As part of Nepal Invests, FMO is committed to support the Nepali private sector to raise its environmental and social standards together with local stakeholders, and to facilitate the adoption of international ESG practices to create a level playing field between companies and improve access to DFI funding in the country," Shaw added.

Likewise,  ambassador of Switzerland to Nepal Elisabeth von Capeller, on the occasion, said that Switzerland is a long-standing development partner of Nepal and is committed to supporting Nepali small and medium enterprises to grow and contribute to Nepal’s economic development. "Attracting and mobilising private investments will be key in achieving the economic transformation agenda that Nepal has set for itself and the Swiss Agency for Development and Cooperation SDC is delighted to partner with CDC Group and FMO to support the Nepal Invests platform which will contribute to preparing the Nepali market for greater investments," she said, adding that the initiative also sets a precedent for future collaborations of this nature between development partners and development finance institutions to contribute towards Nepal’s economic advancement.

The platform is managed by Nathan Associates, in Kathmandu, Nepal.

The partnership was formed following a joint-DFI stocktaking mission to Nepal in January 2020. This mission was coordinated by SDC and SIFEM, and is a part of a collective effort by IFC and CDC (the DFI Fragility Forum) aimed at promoting private investments and jobs creation in fragile or politically complex contexts. Participation included DFIs such as CDC, FMO, Proparco, SIFEM, and IFC; as well as Development Partners such as the ADB, EU, FCDO, SDC, and the World Bank.

Japan helps build training center and emergency shelter, and health facility

 Japan has helped Nepal construct building training center and emergency shelter, and also for making sanitary napkins to support the hygiene of poor women in Birgunj Municipality.

The Charge d'Affaires of Japan to Nepal Ypsjioka Yuzo today signed a grant contract with the Community Development Center (CDC) to build a training center and emergency shelter in Rautahat district. The construction is expected to cost approximately Rs 91.5 million, according to a press note issued by the Japanese Embassy in Kathmandu.

The project for building the training center and emergency shelter facility in Rautahat district is funded under the Grant Assistance for Grassroots Human Security Project (GGP) of the government of Japan. 

At the online signing ceremony, Yoshioka said that the project will help to promote the welfare and security of people in Rautahat district.

The Community Development Center was established in 1998 and has been providing trainings related to disaster prevention, vocational training, and that aimed to support education of children in the district. “The Embassy of Japan in its press note said that it believes that the project will also contribute towards further enhancing the friendship that exists between the people of Japan and Nepal.

Meanwhile, Yoshioka today also signed a grant contract with chairperson of Centre for Health and Environment Conservation (CHEC) Nepal Damodar Prasad Yadav for installing a machine for making sanitary napkins to support the hygiene of poor women in Birgunj Municipality.

The project is also funded under the GGP of the Japanese government and involves a grant of about Rs 4 million, the press note reads.

At the online grant signing ceremony, Yoshioka said that he believes the project will support many poor women to access sanitary napkins at low cost, and contribute towards improving their personal hygiene.

CHEC Nepal – established in 2009 – has been carrying out health and hygiene improvement programmes in public schools alongside environmental preservation activities in Parsa district.

“The support will contribute towards further enhancing the friendship between the peoples of Japan and Nepal,” according to the Embassy of Japan in Kathmandu.

Worldwide Measles deaths climb 50 per cent a four years claiming over 207,500 lives last year

 Measles surged worldwide in 2019 reaching highest number of reported cases in 23 years.

Highlighted in a publication by the World Health Organisation (WHO) and the United States (US) Centers for Disease Control and Prevention (CDC), measles cases worldwide increased to 869,770 in 2019, the highest number reported since 1996 with increases in all WHO regions, a press note from WHO reads, adding that global measles deaths climbed nearly 50 per cent since 2016, claiming an estimated 207,500 lives in 2019 alone.”

After steady global progress from 2010 to 2016, the number of reported measles cases climbed progressively to 2019, it reads. Comparing 2019 data with the historic low in reported measles cases in 2016, authors cite a failure to vaccinate children on time with two doses of measles-containing vaccines (MCV1 and MCV2) as the main driver of these increases in cases and deaths.

“We know how to prevent measles outbreaks and deaths,” WHO director-general Dr Tedros Adhanom Ghebreyesus said, adding that these data send a clear message of failure to protect children from measles in every region of the world. “We must collectively work to support countries and engage communities to reach everyone, everywhere with measles vaccine and stop this deadly virus.”

Measles outbreaks occur when people, who are not protected from the virus are infected and spread the disease to unvaccinated or under-vaccinated populations. To control measles and prevent outbreaks and deaths, vaccination coverage rates with the required MCV1 and MCV2 must reach 95 per cent and be maintained at national and subnational levels. MCV1 coverage has been stagnant globally for more than a decade at between 84 and 85 per cent, and MCV2 coverage has been steadily increasing butis only now at 71 per cent. Vaccination coverage against measles remains well below the 95 per cent or higher needed with both doses to control measles and prevent outbreaks and deaths.

Global response to Covid-19 pandemic must not exacerbate the measles crisis, he added.

Although reported cases of measles are lower in 2020, necessary efforts to control Covid-19 have resulted in disruptions in vaccination and crippled efforts to prevent and minimise measles outbreaks, the press note reads. “As of November, more than 94 million people were at risk of missing vaccines due to paused measles campaigns in 26 countries.”

Many of these countries are experiencing ongoing outbreaks. Of countries with postponed planned 2020 campaigns, only eight – including Brazil, Central African Republic Democratic Republic of Congo, Ethiopia, Nepal, Nigeria, Philippines and Somalia – resumed their campaigns after initial delays. “Before there was a coronavirus crisis, the world was grappling with a measles crisis, and it has not gone away,” UNICEF executive director Henrietta Fore said, adding that while health systems are strained by the Covid-19 pandemic, everyone must not allow the fight against one deadly disease to come at the expense of the fight against another. “This means ensuring we have the resources to continue immunisation campaigns for all vaccine-preventable diseases, even as we address the growing Covid-19 pandemic.”

Global immunisation partners are engaging leaders and public health professionals in affected and at-risk countries to ensure that measles vaccines are available and safely delivered, and that caregivers understand the life-saving benefit of the vaccine, according to the press note. On November 6, the WHO and UNICEF issued an emergencycalltoactionfor measles and polio outbreak prevention and response.

“Measles virus easily finds unprotected children, adolescents and adults because it is so contagious,” Measles and Rubella Initiative Management Team chair and Accelerated Disease Control Branch chief at US CDC Dr Robert Linkins said, adding that infections are not only a sign of poor measles vaccination coverage, but also a known marker, or ‘tracer,’ that vital health services may not be reaching populations most at-risk. “Our collective efforts to reach children with vaccines now, ahead of the possible easing of Covid-19 travel restrictions and increased population movement, will save lives.”

The Measles and Rubella Initiative (M&RI), which includes American Red Cross, the United Nations Foundation, the US CDC, UNICEF and WHO, and global immunization partners like Gavi, the Vaccine Alliance, the Bill and Melinda Gates Foundation and others, are working to address the current measles crisis and ensure that resources are positioned to address immunization delays – for measles and all vaccines – in every region of the world.

CDC Group establishes presence in Nepal, invest more

CDC Group Plc – the UK’s impact investor for Africa and South Asia -- welcomes Rabi Rayamajhi as country representative for Nepal.
Rabi joins CDC from the Department for International Development (DfID) Nepal, where he was a private sector development advisor for four years and led projects in the financial and SME sectors. Prior to his role at DfID, Rabi used to provide advisory support to the Investment Board of Nepal (IBN) in promoting foreign investment and executing large-scale infrastructure projects in waste management, hydropower and cement sectors. He started his career at Standard Chartered Bank and has an MBA qualification from Singapore Management University.
According to a press note issued by the CDC, Rabi will be based at CDC’s representative office in Kathmandu, where he will work closely with CDC teams across Asia.
Over the last 18 months, CDC has made long term commitments to three businesses that will help economically support thousands of Nepalis through jobs, products and services. “We made a direct investment of a $15 million in NMB Bank, one of Nepal’s leading commercial banks,” the press note reads, adding that it was followed by a $12 million investment into a leading internet provider WorldLink, and a subsequent $21.9 million investment into the Upper Trishuli-1 Hydroelectric Project, which will supply clean and reliable electricity to millions of Nepalis.
In 2019 – along with a consortium of lenders – CDC signed a $453 million debt financing package to help build a hydro-electric plant in the Upper Trishuli region of central Nepal. Upper Trishuli is expected to help create over 20,000 jobs in the Nepali economy across multiple sectors. The hydro-electric plant will also increase Nepal’s electricity supply by one-third from today’s levels and provide clean, reliable power to millions of people.
For CDC, the Upper Trishuli commitment in 2019 swiftly followed a $15 million three-year loan to NMB Bank, one of the country’s leading commercial banks. In the same year we invested $12 million of equity in to the country’s largest private sector internet service provider, WorldLink.
Rabi will help accelerate our commitment to invest more capital in Nepal, and support local businesses to advance their commercial success as they work to adopt internationally recognised environmental, social and governance standards. He joins CDC at a time of uncertainty as the pandemic is challenging the lives of people, communities and businesses across Nepal, the press note further reads, adding that as a committed long-term provider of flexible capital to the private sector, CDC has never been more important. “With a mandate that includes providing counter-cyclical financing during financial crises, CDC is playing a role in protecting jobs and businesses.”
The firm’s response to the Covid-19 pandemic has three areas of focus: ‘preserve’, ‘strengthen’ and ‘rebuild’. CDC’s goal is to support the economic stability that will improve the lives of millions of people in Africa and South Asia, read more on its response framework here.
Head of Asia at CDC Srini Nagarajan welcomed Rabi to CDC as the Country Representative in Nepal. “His expertise in private sector development and extensive knowledge of the investment environment in Nepal will boost CDC’s priority of providing increased long-term capital support to businesses and bolstering sector growth in the country,” Nagarajan said, adding that Rabi will be instrumental in strengthening our partnership with businesses and broadening CDC presence in Nepal, as it works to enhance corporate governance, develop environmental and social strategies, promoting skills and job creation that power Nepal’s economy.
Likewise, the newly appointed country representative for Nepal Rabi Rayamajhi, said that he is proud to be representing CDC in Nepal and supporting the execution of the organisation’s mission to bring about lasting development impact and widespread economic growth in Nepal. “In only a short period of time, CDC’s commitment to Nepal’s finance and infrastructure sector has resulted in improved access and connectivity throughout the country,” he said, adding that he is keen to get to work on developing local partnerships that will continue to boost business growth and improve the lives of millions of people.
Welcoming a stronger presence for CDC in Nepal acting UK ambassador and country director for DfID, Nepal Lisa Honan said that the UK continues is committed to playing a strong role in working with the government of Nepal and all development stakeholders to ensure Nepal is ‘open for business’. “While the current Covid crisis has adversely affected Nepal’s economy, there are also opportunities for investments to help ensure Nepal’s recovery is resilient to future shocks and promotes green growth,” Honan added.

Nine international lenders to invest $453 million in Upper Trishuli-1

After a long homework of around decade, Nepal Water and Energy Development Company Private Ltd (NWEDC) today signed a foreign direct investment (FDI) agreement with a consortium of nine international lenders agreeing to inject $453 in debt financing for the construction of 216-MW Upper Trishuli-1 (UT-1) Hydropower Project.
Representatives from IFC, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Export-Import Bank of Korea (K-EXIM), Korea Development Bank (KDB), CDC Group PLC (CDC), Netherlands Development Finance Company (FMO), PROPARCO Development Financial Institution, and the OPEC Fund for International Development (OFID) signed the financial agreement of $453.2 million – approximately Rs 51.30 billion – for the loan financing of Upper Trishuli-1 Hydropower Project.
Arranged by IFC, the loan agreements were signed to provide a total amount of $453.2 million for the project. “Loans amounting to $161.3 million from IFC, $60 million from ADB, $39.6 million from AIIB, $100 million from K-EXIM, $30.8 million from KDB, $21.9 million from CDC, $15.4 million from FMO, $11 million from PROPARCO, and $13.2 million from OFID have been provided for the project,” according to a press note issued by the Investment Board Nepal (IBN).
Speaking at the agreement signing ceremony, minister for Energy, Water Resources and Irrigation Barshaman Pun said that the project is a game changer as it serves as an example of how the private companies could help Nepal expand its hydropower sector and attract the much needed FDI.
Assuring of the support, assistance, and coordination needed to expedite the process to meet the timeline set by project development agreement (PDA) for the financial closure, he claimed that the project will be an example for foreign investors.
Located in Rasuwa district, the project will generate annual energy of 1,533 gigawatt per hour (GWh) from three power generating units of total installed capacity 216 MW. “Total 38.75 per cent of the annual capacity will be generated in dry season and the remaining 61.25 per cent will be generated in wet season,” according to the press note, which reads that the delivery point of such energy generated is the under-construction Trishuli-3B Hub substation in Nuwakot. The project site is located near the Kathmandu load center and can provide a firm power of 104 MW all round the year.
During the signing ceremony, Prime Minister KP Sharma Oli – in a video message – said that it is one of the largest FDI projects of the country. “The project is important as additional 9 million people will benefit as the project comes into operation,” he said, adding that it will also prove crucial to support the government’s plan to end poverty and foster the economy. “The government urges foreigners to invest in such mega projects wholeheartedly.”
The project includes 29.5-metre high dam in Trishuli River, 9.7 kilometer-long headrace tunnel, 292- metre high vertical pressure tunnel and an underground powerhouse.
Addressing the signing ceremony, finance minister Dr Yuba Raj Khatiwada said that the project is a pilot project for bigger projects. “We are working on creating investment friendly regulations and have been very clear about the PPA policy including PPA in US dollar terms,” he said, adding that land and forest acquisitions have been made very simple to attract the investment.
Upper Trishuli-1 is the first project in South Asia to successfully complete the process of Free Prior Informed Consent (FPIC) from the local people in the project area.
The construction of the project will be done based on a fully wrapped engineering, procurement and construction (EPC) contract. A joint venture of Korean firms — Daelim Industrial Co and Kyeryong Construction Industrial Co — will carry out main construction works of the project that is scheduled to be completed is 5 years.
According to NWEDC, the construction of the project will start after the approval of the
Financing Agreements by the central bank and after the fulfillment of other conditions in the signed Financing Agreement documents. Earlier, the company had seen a funding oversubscription with nine multinational lenders offering a loan of $631 million against the $453 million required in debt finance.
“There is no question that Nepal has the potential to be an energy powerhouse,” chief executive officer of NWEDC Bo-seuk Yi, said, on the occasion. “To realise that promise, Nepal can enlist the help of private companies, which have the capital and expertise to make major projects a reality,” he added.
Likewise, director of infrastructure finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department Shantanu Chakraborty said that the agreement is a landmark transaction that will provide strong incentives for further private sector investment in Nepal’s energy sector.
To ensure it provides sustainable benefits, Chakraborty said that this project will adopt international best practices in safeguards management and will also introduce measures to promote gender equality, including job opportunities for women and better access to education, health care, amenities, and infrastructure.
On the occasion, IFC director for South Asia Mengistu Alemayehu said that the project represents a significant milestone in the development of Nepal’s hydropower potential as it has been able to attract meaningful private sector participation, particularly from international investors.
In July, the cabinet decided to extend the tax holiday to the company a few weeks after the anti-dollar alliance – Asian Infrastructure Investment Bank (AIIB) – approved its first $90 million loan to the project, raising eyebrows over the government’s decision to give tax holiday for the company, which has a dollar PPA with the power utility.
The project development agreement of the project was signed on December 29, 2016 while the power purchase agreement between NWEDC and Nepal Electricity Authority (NEA) was signed in January 2018.
When the NEA signed a power purchase agreement with Nepal Water and Energy Development Company a year ago to purchase the electricity generated by the project, the state-owned power utility agreed to pay in US dollars for a period of 10 years or until the portion of the investment made with foreign loans is recovered by the developer, whichever comes first.
After the row over hedge fund, the developer agreed to provide 17 per cent of the energy to the power utility free after 14 years and the government and electricity authority agreed to contribute two-thirds of the amount to the hedge fund.
According to the provisions, the company will be exempted from 100 per cent of income tax for the first 10 years of commercial operation and 50 per cent exemption for an additional five years.

ADB signs $60 million private sector deal to build hydropower plant

The Asian Development Bank (ADB) has signed a $60 million financing package with Nepal Water and Energy Development Company (NWEDC) to help build and operate a 216-megawatt (MW) run-of-the-river hydropower plant on the Trishuli River near the capital. The project will enhance Nepal’s energy security by helping to utilise its renewable hydro resources and reduce imports of electricity, according to ADB press note.
The agreement for the Upper Trishuli-1 Hydropower Project was signed by the Director of Infrastructure Finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department Shantanu Chakraborty and NWEDC’s chief executive officer Yi Bo Seuk at a ceremony in Kathmandu today. The project is one of the largest private sector investments in Nepal to date.
The financing comprises a loan from ADB and a loan from the ADB-administered Canadian Climate Fund for the Private Sector in Asia II (CFPS II). CFPS II was established by the Government of Canada to encourage private investment in climate change mitigation and adaptation projects in Asia and the Pacific. CFPS II funding was integral to the project’s financial viability as it helped attract private capital currently unavailable in the market.
“This is a landmark transaction that will provide strong incentives for further private sector investment in Nepal’s energy sector,” Chakraborty said, adding that the project will adopt international best practices in safeguards management and will also introduce measures to promote gender equality including job opportunities for women and better access to education, health care, amenities, and infrastructure to ensure it provides sustainable benefits.
The project has been prepared in compliance with international environmental and social standards. Detailed studies by international experts have assessed alternatives, impacts, and proposed mitigation measures representing global best practice in hydropower development.
ADB is cofinancing the project with other multilateral development banks and development finance institutions including the International Finance Corporation (IFC); Export–Import Bank of Korea; Korea Development Bank (KDB); Asian Infrastructure Investment Bank (AIIB); Commonwealth Development Corporation (CDC); Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden NV (FMO); OPEC Fund for International Development; and Société de Promotion et de Participation pour la Coopération Economique S.A.
Once operational, the plant is expected to provide over 1,200 gigawatt-hours of clean electricity annually to the national grid. The project is aligned with ADB’s operational priorities outlined in Strategy 2030, notably to eradicate remaining poverty; reduce inequalities; tackle climate change; build climate and disaster resilience; and enhance environmental sustainability.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members, 49 from the region.

IFC, partners provide more than $450 million for Upper Trishuli-1

International Finance Corporation (IFC) – a member of the World Bank Group – and a consortium of other lenders today finalised a $453 million debt financing package that will support the construction of a landmark hydroelectric plant in central Nepal.
The plant – Upper Trishuli-1 – will increase Nepal's electricity supply by one-third from today’s levels and provide clean, reliable power to some 9 million people, part of a larger effort by IFC to create markets and fight poverty in the country.
IFC is the lead arranger of the debt package, which includes eight other lenders, and is one of the largest foreign direct investments (FDI) in Nepal’s history. The financing is being provided to the privately-owned Nepal Water and Energy Development Company. The firm will develop and operate a 216-megawatt (MW), run-of-the-river hydroelectric plant on the Trishuli River about 70-km north of Kathmandu. Officially known as Upper Trishuli-1, the project’s financing structure, competitive tariffs, and use of internationally accepted contract standards is expected to set a standard for future hydropower projects in Nepal.
“This project is a game-changer for Nepal," said energy minister Barshaman Pun, during the signing ceremony of the financial closure. “Not only will it power hundreds of thousands of homes and businesses, but it will also serve as an example of how private companies can help Nepal expand its hydropower sector and attract much needed foreign direct investment,” he added.
Nepal's rivers – fed by runoff from the Himalaya Mountains – could support 43 gigawatts (GW) of electrical generation capacity. But less than three per cent of that has been developed as of today. As well, the country has suffered from blackouts and brownouts, hampering businesses and making life difficult for residents.
"There is no question that Nepal has the potential to be an energy powerhouse," said the chief executive officer of the Nepal Water and Energy Development Company Bo-Seuk Yi. “To realise that promise, Nepal can enlist the help of private companies, which have the capital and expertise to make major projects a reality,” he added.
The new hydroelectric plant is expected to be completed in 2024. Along with providing clean, reliable power to millions, it will set new environmental and social-impact benchmarks and enhance benefits for local communities. Furthermore, a cumulative impact assessment of existing and planned hydropower projects has been completed for the Trishuli basin, which will help guide sustainable development in the watershed.
“This project represents a significant milestone in the development of Nepal’s hydropower potential as it has been able to attract meaningful private sector participation, particularly from international investors,” said IFC director for South Asia Mengistu Alemayehu. “It also shows the unprecedented resilience and commitment by the government, the sponsors, and other stakeholders against all odds over the years,   including a major earthquake,” he said, adding that the development partners expect the project to become a model for expanded investments in developing Nepal’s hydropower to meet the growing domestic demand and export to the neighboring countries.
IFC and a consortium of Korean and Nepali partners, in collaboration with the Government of Nepal, have spent over seven years developing the Upper Trishuli-1 project, which is a prime example of IFC’s ability to create markets through upstream project preparation work over many years in low-income countries.
The Nepal Water and Energy Development Company’s key owners are Korea South-East Power, Daelim Industrial, Kyeryong Construction Industrial, and IFC. IFC is providing $190 million in financing, including $95 million of equity and loans from its own account, and $95 million as the implementing entity for other funding sources. The Multilateral Investment Guarantee Agency (MIGA) – yet another member of the World Bank Group – will provide $135 million in guarantees to cover political risk for the sponsors. Other financiers include the Export and Import Bank of Korea, the Asian Development Bank (ADB), the Asian Infrastructure and Investment Bank (AIIB), the Korea Development Bank (KDB), the United Kingdom’s development finance institution, Commonwealth Development Corporation (CDC), the Dutch Entrepreneurial Development Bank,Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden NV (FMO), the OPEC Fund for International Development, and Proparco.
Because of its unique development impact, pioneering features, and demonstration to private investors, the project also includes support from the International Development Association’s (IDA) Private Sector Window, a global facility of concessional funds to support high-impact private sector investments in lower-income countries, the Finland-IFC Blended Finance for Climate Program, and the Climate Investment Funds.
As part of the record $75 billion IDA18 replenishment, the World Bank Group created the $2.5 billion IDA Private Sector Window to catalyze private sector investment in the poorest and most fragile countries. Recognising the key role of the private sector in achieving IDA18 objectives and the Sustainable Development Goals (SDGs), the window provides concessional funds for co-investment alongside IFC and Multilateral Investment Guarantee Agency (MIGA) private investments. Concessional funds help to mitigate risk and reduce barriers, which unlocks and crowds in private investment in emerging markets.
Likewise, IFC – a sister organisation of the World Bank and member of the World Bank Group – is the largest global development institution focused on the private sector in emerging markets. “We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most,” the agency said, adding that it delivered more than $19 billion in long-term financing for developing countries – in the fiscal year 2019 – leveraging the power of the private sector to end extreme poverty and boost shared prosperity.

CDC Group, WorldLink ink investment deal

The UK’s development finance institution CDC Group today announced its investment of Rs 1.35 billion (approximately $12 million) in the private sector internet service provider WorldLink.
The investment is expected to facilitate WorldLink in aggressively expanding its internet network throughout the nation reaching out to the most marginalised areas, according to a press note issued by the company. “CDC Group has made the investment in WorldLink as equity, securing 10 per cent share in the company.”
This marks CDC’s first equity investment in Nepal but also second investment in the country this year. Earlier, CDC Group has injected a three-year loan of $15 million in NMB Bank.
“The investment will help fund WorldLink’s ambitious expansion throughout Nepal, reaching further remote territories and connecting hundreds of thousands of households and small enterprises to the internet,” confirmed the WorldLink that has grown into the country’s largest internet service provider, laying over 8000-km of fibre and reaching some of the most remote places like Chhatrakot Rural Municipality and Ruru Rural Municipality.
CDC’s capital will accelerate its expansion, helping WorldLink to provide even more small businesses and families with a reliable internet source. WorldLink – as claimed by itself – is already a large employer, particularly of young people, with nearly 3000 employees. “CDC’s investment will support the hiring of over 1,000 additional employees,” the WorldLink, said, adding that CDC will also help develop a skills and training programme for all staff and progress health and safety standards.
“We firmly believe in the power of connectivity to help bring communities out of poverty,” managing director and head of Asia at CDC Srini Nagarajan said, adding that advancing the internet to MSMEs across Nepal gives them access to global trade and markets. “It also brings families into contact in Nepal and overseas.”
CDC’s capital will help accelerate this, helping it reach further remote regions.
“We are delighted to be creating long term partnerships in a country where our capital will make a meaningful difference to people’s lives,” he added.
“We feel honoured to be the first CDC equity investment in Nepal,” managing director of WorldLink Dileep Agrawal. “It is a recognition of our 24 years’ hard work and commitment to Nepal’s internet and telecoms industry,” he said, adding that with CDC’s backing, our ambition is to transform Worldlink into a world-class company that will serve as a model and inspiration to other companies in Nepal. “Our partnership will accelerate our pursuit to connect everyone, anywhere, all the time.”
Compared to other countries in Asia, access to digital services remains low in Nepal and presents a real challenge for the development of businesses. Improving access to affordable and quality internet is central to Nepal’s development and economic growth, and a key part of UN Sustainable Development Goal 9 (SDG9).