The loan has been allocated to Nepal Water and Energy Development Company (NWEDC), which is mainly owned by three South Korean players in energy and construction: KOEN, Daelim and Kyeryong.
The Upper Trishuli 1 project aims to develop, build and operate a run-of-river hydropower plant with an installed capacity of 216 MW on Trishuli River, 70 km to the north of Kathmandu. This plant, which should be completed in 2024, will generate about 1,427 GWh a year and will significantly increase the country’s installed capacity. PROPARCO has invested alongside IFC and a consortium of other lenders to provide a USD 453m loan to finance this power plant. It is one of the largest foreign direct investments in Nepal’s history.
The expected impacts of this Upper Trishuli 1 project are as follows:
- Support for over 92,000 jobs in Nepal’s economy, including some 160 direct jobs, 1,200 jobs related to the construction of the dam, some 41,000 jobs related to its operation and 50,000 jobs related to the additional energy input at the macroeconomic level; 15% of the direct employment is expected to be held by women; the employees should be trained in a number of areas, including the health and safety aspects during the construction of the dam.
- Improvement in access to electricity for over 9 million people, in view of the planned installed capacity and annual generation.
- A direct tax contribution of the project to the Nepalese Government and contribution to domestic GDP during the lifespan of the project.
This information is given at the time of signature, without prejudice to any developments in the operation/project