The project comprises the construction and operation of a 140 MW storage hydroelectric power scheme and its interconnection to the national grid. It is designed to help meet peak electricity demand in Nepal during the dry winter months and to operate as a baseload plant for the remainder of the year. The project will provide an alternative to expensive fossil fuel based power generation through cleaner energy, and will help stabilise Nepal's power supply system and reduce transmission losses.
The project will provide this low income country with sustainable renewable electrical energy and will help to avoid additional thermal (diesel-fired) generation that is associated with high emissions of CO2 and other harmful atmospheric pollutants. The project will supply this renewable energy to a network that has a severe generation deficit which has resulted in extensive load shedding and related damage to the local economy. The project is therefore in line with the External Lending Mandate by promoting economic development and environmentally sustainable energy production. Financing of this project would contribute to the Bank’s energy lending objectives related to renewable energy and the mitigation of climate change.
An ESIA has been completed, in line with the principles of EU legislation, and has been approved by the competent environmental authority. The project will require the resettlement of 86 households and the acquisition of 112 ha of private land, of which only a minor proportion is currently cultivated. Appropriate compensation will be provided to all people affected by the project in accordance with national legislation and lenders' requirements. No significant negative environmental or social impacts have been identified that would prevent development of the project.
The Bank will require the promoter to ensure that implementation of the project will be conducted in accordance with the Bank’s Guide to Procurement.
This operation is covered by the EU Guarantee for EIB loans outside the EU.
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).
News & Stories
General enquiries and comments
The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.
Zero tolerance against fraud and corruption
The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.