KATHMANDU: South Asia Enterprise Development Facility, managed by IFC, in partnership with United Kingdom’s Department for International Development, Norwegian Agency for Development and Nepal Bankers’ Association, organised a three-day training on ‘Hydropower and Renewable Energy Financing’ for bankers.

IFC — a member of the World Bank Group — is working with Nepal Bankers’ Association (NBA) for awareness about financial risks and opportunities associated with hydropower and renewable energy projects.

Bankers lack the experience of financing small hydropower projects. Such investments usually involve high risk with long repayment periods and complex technical aspects, said IFC. The training programme helped bankers understand these projects better by exploring topics ranging from market potential in Nepal, credit assessment, financing structures, laws, licenses and policies, risk and mitigation, insurance to legal issues related to hydropower.

“Nepal is strategically located to tap this resource, so this programme represents great investment opportunity for bankers and businessmen alike,” said NBA president Sashin Joshi.

Ian Crosby, Head of SEDF, said, “This training was a critical step toward creating opportunities for financial institutions to build a sustainable energy finance portfolio that will address climate change issues, improve energy security and reduce pollution in Nepal, while increasing bank profits.”

SEDF is working with financial institutions to develop strategy, products, services and marketing plans.