The Government of Nepal and the private sector have invested an average of US$ 293 million (Rs 40.39 billion) per year in the hydropower sector over the past nine years, according to the latest report of the World Bank. This amounts to a total investment of more than Rs 363 billion from 2015 to 2024.
According to the World Bank's report, Nepal National Economic Outlook: Nepal's Economic Growth Potential Unveiled, released on Monday, over two-thirds of this investment has come from the private sector. The private sector has primarily focused on hydropower generation and transmission lines, with an investment of Rs 27.57 billion.
Government agencies, including the Nepal Electricity Authority (NEA) and its subsidiaries, have contributed the remaining 31 percent of the total investment. Their spending, totaling Rs 12.82 billion, has been directed toward hydropower generation, transmission lines, and distribution networks.
The report highlights that most private sector investments have been made under the Build, Own, Operate, and Transfer (BOOT) model, allowing companies to develop hydropower projects before eventually transferring ownership to the government after 30 years.
The report underscores Nepal’s growing reliance on the private sector for hydropower development, as well as the critical role of government agencies in supporting infrastructure expansion.
