Minister Ghising Urges ADB to Finalise Financial Closure for Dudhkoshi Hydropower Project

Minister for Energy, Water Resources and Irrigation Kulman Ghising has urged the Asian Development Bank (ADB) to resolve the long-pending issue of financial closure for the 670 MW Dudhkoshi Reservoir-Based Hydropower Project.

During a meeting with ADB representatives on Monday, Minister Ghising stressed the need to complete the financial closure at the earliest, noting that delays have hindered progress of one of Nepal’s key strategic energy projects.

The total estimated cost of the project, including interest during construction, stands at USD 2.2 billion. Of this, USD 1.68 billion is expected to be managed through loans, while the remaining amount will be arranged through equity.

International financial institutions led by ADB are expected to provide USD 1 billion in concessional loans. So far, ADB has pledged USD 550 million as a soft loan for the project.

During the meeting, Minister Ghising also called on ADB to increase its investment in drinking water supply, roads, irrigation, and electricity transmission and distribution infrastructure.

He assured that the government would address concerns related to land acquisition, compensation, environmental and social safeguards and other issues linked to ADB-supported projects.

ADB representatives, meanwhile, urged the government to strengthen the capacity of project-implementing agencies and ensure effective facilitation. -- RSS