Minister Pun, WB officials discuss to advance Upper Arun, Dudhkoshi hydel projects

BY A STAFF REPORTERKathmandu, Mar. 23: Finance  Minister  Barsaman  Pun  and  three vice presidents of  the World Bank have  discussed  major  infrastructure  projects in Nepal.

During a virtual meeting on Friday, they  discussed  creating  a  partnership  blueprint between Nepal and the Bank for  the  next  five  years  and  advancing  the  Upper  Arun  Hydroelectric  Project  and  the  Dudhkoshi  Reservoir  Project,  according to the Ministry of  Finance.World  Bank  Vice  Presidents  Martin  Raiser,  Akihiko  Nishio  and  Guangzhe  Chen  and  Asian  Development  Bank  Country  Director  for  Nepal  Arnaud  Cauchois  and  International  Finance  Corporation (IFC) representatives par-ticipated in the meeting.Similarly,  on  behalf   of   Nepal,  Min-ister Pun as well as Finance Secretary Dr.   Krishna   Hari   Puskar,   Revenue   Secretary  Dr.  Ram  Prasad  Ghimire,  Joint  Secretaries  Uttar  Kumar  Khatri  and  Ritesh  Kumar  Shakya  and  Shree  Krishna Nepal and Managing Director of  Nepal Electricity Authority Kul Man Ghising participated.

When Finance Minister Pun was the Minister  of   Energy,  Water  Resources  and Irrigation earlier, the construction process  of   the  1,061  MW  Upper  Arun  Hydropower Project to be built in Bhot-khola  Rural  Municipality  of   Sankhu-wasabha  as  a  ‘game  changer’  project  had advanced.The  Upper  Arun  project  is  consid-ered an attractive project as it produces more electricity even in winter.It has been decided to construct the project  through  a  subsidiary  com-pany of  the Nepal Electricity Author-ity  with  the  mixed  investment  of   the  World  Bank’s  concessional  loan  and  Citizen   Investment   Trust,   various   domestic banks and financial institu-tions. Plans are also there to provide shares for the general people.To advance the project, the NEA has established  Upper  Arun  Hydropower  Limited.

The  detailed  project  report  (DPR)  has already been prepared, the consul-tant has already been selected, and the financial management under the lead-ership of  the World Bank is ready to be decided by mid-July 2024.The  design  of   the  project  has  been  prepared to operate at full capacity for 6 hours a day in winter. The estimated cost  of   the  project  is  USD  1.38  billion  (about Rs. 161 billion).Out of  the total cost, 70 per cent for-eign investment and 30 per cent domes-tic investment have been arranged.

The  project  will  generate  about  4.53  billion units of  energy annually.Similarly,  there  is  a  plan  to  build  a  reservoir  on  the  Dudhkoshi  River  and  generate  635  megawatts  of   hydro-power at Lamidanda of  Rawabesi Rural Municipality-3 in Khotang and Rabhu-nwaghat  of   Chishankhugadhi  Rural  Municipality-6 in Okhaldhunga.Under  the  leadership  of   the  Asian  Development Bank, the project is going to  be  constructed  with  the  investment  of  the World Bank, Citizen Investment Trust and the general public.In the meeting, Minister Pun thanked the  World  Bank  for  its  contribution  to  Nepal’s  economic  development  as  one  of  the major international development partners.Informing   about   the   progress   of    development  projects  with  the  invest-ment  of   the  World  Bank  in  the  areas  of     transport,    urban    development,    agriculture, forestry, environment and employment, he said that the progress of   those  projects  was  not  satisfactory  due to various reasons. 

However,  he  said  that  he  was  com-mitted  to  accelerating  the  work  of   the  projects.Discussing   that   many   significant   programmes  have  been  completed  in  Nepal  under  the  International  Devel-opment Association (IDA), he said that Nepal  has  adopted  the  recognition  of   green inclusive development.He  urged  the  World  Bank  to  increase  green finance in infrastructure projects.Due  to  financial  limitations  caused  by  the  laxity  in  revenue  mobilisation,  there has been a huge gap in resources in  the  implementation  of   sustainable  development  goals,  infrastructure,  cli-mate  adaptation,  said  Minister  Pun,  adding   that   development   partners,   including  the  World  Bank  should  help  Nepal in its economic revival efforts by increasing cooperation with Nepal.In the meeting, officials including the vice presidents of  the World Bank said that  the  cooperation  with  Nepal  was  very  encouraging  and  expressed  their  opinion about the projects in the pipe-line, including the Upper Arun Hydro-power Project.Stating that Nepal’s debt risk is low compared  to  other  countries  where  IDA programmes have been conducted, they  urged  Nepal  to  use  non-conces-sional loans as well.