Kathmandu, August 18
With an aim to accelerate the development of infrastructure in the nation, Nepal Infrastructure Bank (NIB) has started to make investments in projects.
The bank has invested in the 32-megawatt Karuwa-Seti hydropower project in Machhapuchhre Village Municipality of Kaski district. The project, which is worth Rs 5.8 billion, is being financed by a consortium of banks led by NIB. In fact, it is the first project that the infrastructure bank is investing in.
The consortium of banks will be investing a total of Rs 4.06 billion in the project with NIB providing Rs 1.5 billion. As per NIB, the project will be co-led by Himalayan Bank and Sanima Bank which will together be chipping in Rs 2.56 billion. The remaining cost of the project will be financed by the promoter of the project.
As per an official of NIB, bank at present has several projects in pipeline and it will soon sign agreements to implement five mega projects. “We will very soon sign investment pacts to construct a star rated hotel and another hydropower project,” the official informed.
The NIB was established with an aim to bridge the infrastructure financing gap by raising resources from domestic and international market including blended
financing, and is the first private sector-led financial institution in the country solely focused on financing infrastructure development.
NIB received a national level infrastructure development bank operation licence from Nepal Rastra Bank to conduct financial transactions on February 10. The bank was established with joint investment from the government along with
various commercial banks, insurance firms, microfinance companies, private businesses and a group of entrepreneurs.
The bank has authorised capital of Rs 40 billion, issued capital of Rs 20 billion and paid-up capital of Rs 12 billion. The investment proportion of the bank includes 10 per cent from the government and 90 per cent from the private sector.
NIB has been established with an objective to play a vital role in the infrastructure development of the nation, more specifically in the areas of construction and development of transportation, agriculture, energy, tourism, special economic zones, advanced urbanisation infrastructure and information technology along with other areas of infrastructure.
A version of this article appears in print on August 19, 2019 of The Himalayan Times.