November 1 (Renewables Now) - The International Finance Corporation (IFC) and a lending consortium will provide USD 453 million (EUR 405.5m) in financing for the construction of a 216-MW run-of-the-river hydroelectric plant in Nepal.
IFC said Friday it acted as a lead arranger in the debt financing package, which gathered financiers such as the Export and Import Bank of Korea, the Asian Development Bank, the Asian Infrastructure and Investment Bank, the Korea Development Bank, the UK’s CDC, Dutch entrepreneurial development bank FMO, the OPEC Fund for International Development and France’s Proparco.
IFC is providing a total of USD 190 million, while the Multilateral Investment Guarantee Agency (MIGA) will contribute USD 135 million in guarantees to cover the political risk for the sponsors.
The financing will be available to Nepal Water and Energy Development Company Pvt Ltd, a privately-owned entity among whose shareholders are IFC itself, Korea South-East Power Co Ltd, Daelim Industrial Co Ltd (KRCX:000210) and Kye-Ryong Construction Industrial Co Ltd (KRX:013580). The four own a 90% stake in the project company, while the remaining 10% is in the hands of a local stakeholder.
The company will develop and operate the 216-MW facility, known as the Upper Trishuli 1, located on the river Trishuli, and offload its output to Nepal Electricity Authority (NEA) under a power purchase agreement (PPA).
Electricity produced by the new plant will reach some nine million people and boost Nepal’s power supply by one-third from today’s levels, IFC said.
The Upper Trishuli 1 plant is due to be completed in 2024.
According to IFC, rivers in Nepal receive runoff from the Himalaya Mountains and have a potential to support 43 GW. However, less than 3% of that capacity has been developed.
(USD 1.0 = EUR 0.895)