Bringing reliable and sustainable power is critical to support Nepal’s economic transformation. Hydropower is Nepal’s primary source of electricity provided by the grid and a fundamentally important sector that supports the economy.
That’s why in 2019, we committed almost $22 million to support the construction of a landmark hydro-electric plant in central Nepal, called Upper-Trishuli-1.
It was our first project finance investment in the country, with the aim of supporting Nepal’s hydropower development.
The project recently reached an important milestone, with the foundation stone being laid at a ceremony at the plant.
The ceremony marked not only this construction milestone but also the substantial progress made on the project, which is now 22 per cent complete.
Our Nepal Country Representative, Rabi Rayamajhi, was at the ceremony and commented “We were really pleased to witness the impressive progress that has already been made in the construction. Once complete, this plant will play a significant role in bringing much-needed, reliable and sustainable power across the country.”
Once the plant is complete, it is expected to increase the country’s installed power capacity by 10 per cent. It will provide a large proportion of its annual output during the dry season, when it is most needed, and reduce reliance on imports and improve energy security. At the same, the project will contribute to reducing greenhouse emissions.
The project aims to create a model for future private sector investment in the hydropower sector, as well as creating a benchmark for sustainable development of the sector in Nepal, especially through the inclusion of climate resilience measures.
The full project is estimated to be completed by the end of 2026 and will generate 216 megawatts of power.
