Jan 16, 2017

The European Investment Bank (EIB) has agreed to provide a loan assistance of Euro 55 million equivalent to US$ 70 million (approximately NRs 6 billion 41 million) to the Government of Nepal for the implementation of TANAHU HYDROPOWER PROJECT.

The European Investment Bank (EIB) has agreed to provide a loan assistance of Euro 55 million equivalent to US$ 70 million (approximately NRs 6 billion 41 million) to the Government of Nepal for the implementation of TANAHU HYDROPOWER PROJECT. This is the first time that Nepal is receiving loan assistance from the EIB. The Loan Agreement regarding the implementation of the project was signed between the Government of Nepal and the European Investment Bank (EIB) today. Likewise the project agreement between the EIB and the Nepal Electricity Authority (NEA) and the Tanahu Hydropower Limited (THL) was signed on the same occasion at the Ministry of Finance.

The objective of the Project is to support development of hydro 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 US $ 505 million. Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB) other cofinancer of the project have already concluded the loan agreement with the Government of Nepal. A final co-financing agreement will be concluded shortly with the Abu Dhabi Fund for Development (ADFD), the other co-financer of the project.

The Loan Agreement was signed by Mr. Shanta Raj Subedi, Secretary, Ministry of Finance and Ms. Magdalena Alvarez Arza, Vice President, European Investment Bank on behalf of the Government of Nepal and the European Investment Bank, respectively.