Kathmandu: Minister for Energy, Water Resources and Irrigation Kulman Ghising has urged the Asian Development Bank (ADB) to sort out the issue of financial closure for the development of Dudhkoshi Reservoir-Based Hydropower Project of 670 megawatts. During a meeting with the representatives of the ADB on Monday, Minister Ghising emphasized the need for swift action, noting that the financial closure for the project has been pending for a considerable time.
According to National News Agency Nepal, the total estimated cost of the project, including the interest during the construction period, is 2.2 billion US dollars. Of this amount, 1.68 billion US dollars will be secured as loans, while the remaining funds will be managed through equity shares. Under the leadership of the ADB, various international financial institutions are expected to invest 1 billion US dollars in concessional loans, with the ADB itself pledging 550 million US dollars as a soft loan.
During the meeting, Minister Ghising also called on the ADB team to increase investment in sectors such as drinking water, roads, irrigation, and the electricity transmission and distribution system. He assured that issues related to land acquisition, compensation, environmental and social security, and other concerns in ADB-supported projects would be addressed.
The ADB representatives, in turn, urged the minister to enhance the capacity of the project implementing agencies and ensure effective facilitation for the project’s success.