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29th March 2017

Breaking new ground for hydro power in Nepal

Run-of-river plant will deliver affordable, reliable power

A ground-breaking ceremony in eastern Nepal has been held to mark the start of construction of the Kabeli A 36.7MW hydro power plant - InfraCo Asia’s first hydro power project in the country.

Representatives of the government of Nepal attended the event, as well as from the government of the United Kingdom, which provides funding support to InfraCo Asia with the governments of Australia and Switzerland.

Once operational, the project will provide an estimated 1.6 million people, or 320,000 households with improved access to affordable, reliable electricity through the national grid.

The project will create an estimated sixty long-term jobs, significantly boosting employment opportunities in this underdeveloped rural region of Nepal.

“We are pleased to provide the necessary development expertise and leadership capital to support Nepal in developing its renewable energy sector, and pleased to work closely in partnership with the Butwal Power Company.” InfraCo Asia CEO, Allard Nooy, said.

Working with private sector partner Butwal Power Company, InfraCo Asia is contributing US$8m towards the Kabeli A project development costs as a Joint Venture Partner.

Further funding will come from InfraCo Asia’s sister facility InfraCo Asia investments and the project has already benefitted from a grant amount of US$87,000 provided by the Technical Assistance Facility (TAF).

“The successful development of Kabeli A and subsequent hydropower projects in the pipeline will establish a model for developing and financing infrastructure in Nepal’s challenging development environment,” Mr Nooy said.