- This hydro-electric plant will increase Nepal’s electricity supply by one-third from today’s levels and provide clean, reliable power to millions of people.
- Championing the development of clean energy generation is core to CDC’s investment strategy.
- CDC invests to support the SDG’s, this commitment reaches SDG #7,9, 11 and 13.
CDC Group, the UK’s development finance institution and impact investor for Africa and South Asia, has announced that alongside a consortium of lenders, it has finalised a $453 million debt financing package to support the construction of a landmark hydro-electric plant in central Nepal, Upper Trishuli-1. This was led by the IFC, a member of the World Bank Group.
Bringing reliable power to Nepal will support its economic transformation. Businesses and homes across the country will benefit from stable energy generation thereby improving local livelihoods. In addition, Upper Trishuli-1 is expected to help create over 20,000 jobs in the economy across multiple sectors.
This represents one of the largest foreign direct investments in Nepal’s history. The financing is being provided to the privately-owned Nepal Water and Energy Development Company. The firm will develop and operate a 216-megawatt, run-of-the-river hydroelectric plant on the Trishuli River about 70 kilometers north of Kathmandu, to set a standard for future hydropower projects in Nepal.
CDC has been particularly active in Nepal; Upper Trishuli-1 is CDC’s third capital commitment to Nepalese companies this year. Just last month, CDC invested in WorldLink, the largest private sector internet service provider in Nepal, where its capital will accelerate expansion reaching further remote territories and connecting hundreds of thousands of households and small enterprises to the internet.
Earlier this year, CDC provided US$15 million to NMB Bank, one of the country’s leading commercial banks, increasing its lending capability to key sectors of the Nepalese economy.
Iain Macaulay, Director and Head of Project Finance, CDC Group commented:
“Investing in Nepal to accelerate the generation of clean energy is core to CDC’s commitment in Asia. Upper Trishuli-1 will bring reliable power to millions of people across the country and help to create over 20,000 jobs in the economy. We are delighted to have teamed up with the DFI community, led by the IFC, to bring this project to life. This is the third investment we have made to Nepal this year; it reiterates our commitment to the region and investing in some of the world’s developing and frontier markets.”
In the wider region of Asia, CDC has invested for over 30 years and has over 300 investee partners, valued at nearly US$ 2 billion. The group has committed to invest up to $1.7 billion in South Asia from 2018-2021.
ENDS
Media Contact:
Clare Murray, CDC group, +44 207 0364353 / cmurray@bii.co.uk
Notes to Editors:
- CDC Group plc is the UK’s development finance institution, wholly owned by the UK Government, CDC has invested in Africa and Asia for 70 years. By investing for impact, CDC aims to help countries in Africa and Asia to build thriving communities that provide sustainable opportunities for all citizens.
- CDC takes a flexible approach and provides capital in all its forms, including equity, debt, mezzanine and guarantees, to meet businesses’ needs and achieve development impact. CDC has net assets of £5.8bn. Find out more at cdcgroup.com
