World Bank Approves Loan for Kabeli-A Hydroelectric Project in Nepal

May 20th, 2014 | By | Category: Energy, Hydropower, Nepal

The World Bank Group has approved $84.6m financing for the 37.6MW Kabeli-A hydroelectric project in Nepal.

The financing includes $40m credit and $6m grant from the International Development Association, a $19.3m loan from the International Finance Corporation and a $19.3m loan from the Canada Climate Change Program.

The financing paves the way for Kabeli Energy to start construction of the Kabeli-A run-of-river hydroelectric project, which will be built in Panchthar district in the eastern hills of Nepal.

World Bank lead energy specialist and task team leader for the project Jie Tang said the project design reflects the lessons learned from global hydropower projects, including those in the Himalayas where similar conditions exist.

“The lessons suggest avoiding delays in project preparation and implementation, improving social and environmental management, enhancing sediment handling capacity, and improving the long-term sustainability of the project,” Tang said.

The electricity generated from the $108.6m Kabeli-A project will be linked to the national grid through the Kabeli Corridor transmission line, a separate project under construction with World Bank financing.

The Nepal government had offered the project on build, own, operate and transfer model to Kabeli Energy, following an international bidding in 2007.

Kabeli Energy will invest $23m in the project, which is expected to start production in September 2015.



Started in year 2010, ‘Climate Himalaya’ initiative has been working on Mountains and Climate linked issues in the Himalayan region of South Asia. In the last five years this knowledge sharing portal has become one of the important references for the governments, research institutions, civil society groups and international agencies, those have work and interest in the Himalayas. The Climate Himalaya team innovates on knowledge sharing, capacity building and climatic adaptation aspects in its focus countries like Bhutan, India, Nepal and Pakistan. Climate Himalaya’s thematic areas of work are mountain ecosystem, water, forest and livelihood. Read>>

Himalayan Nations at Climate Change Conference-CoP21

Over 150 heads of state and government gathered in Paris at the UN climate change conference on Monday, 30 November, the largest group of leaders ever to attend a UN event in a single day. In speech after speech, they provided political leadership and support to reach an ambitious and effective climate change agreement by…

Read more…

Comments are closed.

seo packagespress release submissionsocial bookmarking services