Pvt participation in infrastructure weak in Nepal

Kathmandu, October 6

Though Nepal is among the top countries receiving assistance from the International Development Association (IDA) — an

international financial institution that offers concessional loans and grants to the world’s poorest developing countries — of the World Bank Group, private participation in infrastructure is weak in the country, according to the World Bank’s

recently unveiled report titled ‘Investment in IDA Countries, Private Participation in Infrastructure’.

Nepal was in the third rank in terms of private participation in infrastructure in 2015 after Zambia and Honduras, as a

few hydropower projects were initiated at that time with the private sector’s participation.

Honduras has constantly been in the top three since the last several years in terms of private participation in infrastructure, as per the report.

There were nine projects worth $788 million initiated by the World Bank Group in collaboration with the private sector in

Nepal in between 2013 and 2017. Such investment from the World Bank Group peaked at $354 million in 2015. Investments worth $26 million and $258 million were witnessed in 2016 and 2017, respectively.

Kabeli A Hydroelectric Plant was initiated through private participation. Out of the total investment worth $106.6 million,

International Finance Corporation (IFC) and IDA invested $38.6 million and $40 million, respectively. Similarly, World

Bank Group provided support for Super Nyadi Hydropower, Nyadi Hydropower and Upper Solu Khola Hydropower plants.

Reportedly, banks financing the Super Nyadi and Upper Solu Khola have been utilising the window of concessional financing facility from the IFC.