ADB sanctions $150m loan for 140MW hydropower plant in Nepal
The Asian Development Bank (ADB) will provide a $150m loan for the construction of a 140MW hydropower plant in Nepal.
The proposed hydropower plant will be located 150 kilometers west of Kathmandu on the Seti River in Tanahu district and will require a total investment of $500m.
ADB South Asia Department Energy Division director Yongping Zhai remarked that the project is expected to help the country overcome its energy crisis that affects its economic prospects.
To ensure operations at the plant during the dry winter months, it will be fed from a 7.26km2 reservoir, making it the first major hydropower facility in the country with water storage capacity and a sediment flushing system.
Other lenders for the project include the Japan International Cooperation Agency, the European Investment Bank, and the Abu Dhabi Fund for Development.
Nepal's current total power generation capacity stands at 700MW - largely from hydropower sources but represents 1.5% of the country's total hydropower potential.