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अन्तराष्ट्रिय आर्थिक सहायता समन्वय महाशाखा

Agreement with the Asian Development Bank

Jan 16, 2017
The Asian Development Bank has agreed to provide loan assistance of US$ 150 million (approximately NRs 12 billion 9 hundred 51 million) to the Government of Nepal.
The Asian Development has agreed to provide loan assistance of Nineteen million Five hundred eighteen thousand Special Drawing Rights (SDR 19,518,000) equivalent to US$ 150 million (approximately NRs 12 billion 9 hundred 51 million) to the Government of Nepal for the implementation of TANAHU HYDROPOWER PROJECT. The Loan Agreement regarding the implementation of the project was signed between Government of Nepal and the Asian Development Bank today. Likewise, the project agreement was signed between Asian Development Bank and the Nepal Electricity Authority and the Tanahu Hydropower Limited on the same occasion at the Ministry of Finance.

The objective of the Project is to support development of electricity so as to reduce extreme power shortage especially in the dry winter season. The Tanahu Hydropower Project will be developed on the Seti River near Damuli, Tanahu District. The project is expected to generate 140 MW of electricity all the year round. The total cost of the project is estimated to be US $ 505 million. Japan International Cooperation Agency (JICA) as one of the cofinancers has already concluded a loan agreement with GoN, the European Investment Bank (EIB) and Abu Dhabi Fund for Development (ADFD) are the other co-financers of the project.

Since Tanahu Hydropower Project is a reservoir type project, the electricity generated by this is expected to be smooth and uninterrupted. The project is designed to be completed by December 2020 A.D. Since power is considered as the basic infrastructure of economic development, the hydropower development is the only best alternative we do have so far. In this context the project is expected to contribute for the increased level of economic activities in the country via more and regular electricity supply.

The Loan Agreement has been signed by Mr. Shanta Raj Subedi, Secretary, Ministry of Finance and Mr. Kenichi YOKOYAMA, Country Director, the Asian Development Bank on behalf of the Government of Nepal and the Asian Development Bank reapectively.