KATHMANDU, NOVEMBER 3
The government and donor agencies have expressed a high-level commitment to advancing the construction of this 1,161-megawatt project.
A team, consisting of Minister for Energy, Water Resources, and Irrigation Shakti Bahadur Basnet, Finance Minister Dr. Prakash Sharan Mahat, lawmaker Deepak Khadka, Secretary of the Energy Ministry Dinesh Kumar Ghimire, Executive Director of the Nepal Electricity Authority Kulman Ghising, Managing Director of the World Bank Anna Bjerde, and Director-General of the Asian Development Bank Ramesh Subramaniam, conducted an onsite inspection of the project site today.
During a program held at Chhograng in Bhotekhola Rural Municipality-4, Finance Minister Mahat shared that the Upper Arun Project is on the verge of entering the implementation phase. He mentioned that, despite resource limitations, sufficient budget has been allocated to initiate the project's implementation. He expressed a commitment to ensuring there are no resource constraints hindering the project's progress.
Dr. Mahat, who also serves as the former Energy Minister, stated that locals would be offered shares in the hydroelectricity project to raise funds for investment. He emphasized that this crucial national project has reached the investment mobilization stage.
"The World Bank has expressed significant interest in investing in this project. It is actively working to secure investment with the involvement of various international financial institutions," Finance Minister Mahat added.
He further explained that the World Bank's annual meeting and bilateral consultations have emphasized mobilizing grants along with concessional loans to make the project more attractive for investment. The government is fully committed to supporting and advancing the project's construction by mobilizing investment as quickly as possible.
Minister for Energy, Water Resources, and Irrigation Basnet also reiterated the government's commitment to promptly advancing projects similar to Upper Arun for maximum utilization of the nation's water resources for prosperity.
Lawmaker Deepak Khadka stated that the locals have welcomed the project and are eager to drive it forward.
The Managing Director of the World Bank mentioned that discussions about this project have been ongoing since her arrival in Nepal and the electricity generated from this project would be essential for both domestic consumption and export. She confirmed the World Bank's readiness to invest in the Upper Arun project for the benefit of all stakeholders.
The estimated cost of the project is 1.75 billion US dollars (approximately Rs 214 billion). Of this cost, 70 percent will be funded through loans, and 30 percent through equity.
The process for the construction of the Upper Arun Hydropower Project is set to move forward. The project site is located in the Bhotekhola Rural Municipality of Sankhuwasabha.