Kathmandu, August 29 :

A development bank named Clean Energy Financial Institution Ltd (CEFI), with its focus on clean energy sector, is ready to get operational in Nepal within a few days with an authorised capital of Rs 640 million, senior officials of CEFI said.

Manoj Goyal, chief executive officer of CEFI, at a pre-launching event of the financial institution said that the bank is coming soon in a bid to boost the energy market in Nepal with an agenda of ‘clean energy for economic growth’.

Goyal said that the issued and paid-up capital of the upcoming financial institution of CEFI would be worth Rs 320 million. Of the total investments, promoters will secure 51 per cent share, while foreign and corporate would hold 19 per cent and the public would have 30 per cent share, said Goyal.

CEFI is focusing on renewal energy technologies, clean energy infrastructure projects, clean transport and rural electrification. CEFI aims to explore and promote technical know-how, project financing, pre-investment activities, investment and corporate advisory and resource mobilisation.

CEFI is financially supported by USAID and collaborating with Winrock International in the areas of technical know-how, capacity building and networking with international donors.

CEFI says that it will use the latest innovative tools in areas of transaction banking, corporate banking, consumer banking, venture capital and rural banking.

Goyal stressed on exploring hydropower potentials with sufficient financing arrangements to boost economic growth.

Despite tremendous energy resources, there is a lack of exploitation for larger good of people, he observed. He was of the view that there is no development without energy and no development without peace.

Bikash Pandey, South Asia regional director of Winrock International hoped that the initiation of CEFI would contribute immensely to hydropower development potentials in Nepal that will ultimately boost economic activities.