Dutch development bank FMO may invest $35m in Nepal’s hydel project

Photo by Aaron Benson on Unsplash

Dutch development bank FMO has proposed to offer a $35-million debt facility for the development of Upper Trishuli 1, a 216 MW greenfield hydropower project in Nepal, developed by IFC-backed Nepal Water and Energy Development Company (NWEDC), according to an FMO disclosure.

The funding will be part of an approximate $453-million debt package arranged by the International Finance Corporation (IFC). The total project cost is estimated to be at $647 million.

The debt package will be used for construction of the project, including financing and development costs.

Last year, IFC announced that it proposed to invest $115 million in an equity-cum-loan investment in NWEDC to support the project.

Upper Trishuli 1 is expected to become a landmark project for Nepal, a country short of electricity. About half of the country’s electricity demand is imported from India. The imported electricity in January this year reached at 653 MW and the demand made up to 1,243 MW.

The hydropower project will have an output of 1,427 GWh/year and hopes to increase Nepal’s domestic generation by 32 per cent, benefiting about 9 million people in Nepal.

NWEDC is a private company majority-owned by three South Korean strategic investors, Korea South East Power Company (50%), Daelim Industrial Co. Ltd (15%) and and Kyeryong Construction Industrial Co. Ltd (10%).

IFC holds 15 per cent stake in the company and original licence holder Bkesh Pradhanang owns 10 per cent.

Also Read:

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IFC mulls investing up to $115m in equity, debt facility in Nepal’s mega hydel project

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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