Beijing, China, June 10, 2019
AIIB Approves First Investment in Nepal
Project Expected to Demonstrate Viability of Nepal’s Sustainable Energy Sector
The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a loan of up to USD90 million for the Upper Trishuli-1 Hydropower Project, AIIB’s first project in Nepal. The project will increase the country's power generation by almost 20 percent, helping to reduce acute power shortages in the country.
This project is one of several steps AIIB is taking to support the development of Nepal’s electricity sector. The Bank has also provided Nepal with USD900,000 for the proposed Tamakoshi V Hydroelectric Project and USD1 million for the proposed Power Distribution System Upgrade and Expansion Project from its Project Preparation Special Fund which provides grants to support the preparation of projects in eligible AIIB members. These grants are part of AIIB’s overall efforts in Nepal to increase energy generation capacity, reduce the demand-supply gap, upgrade transmission infrastructure and reduce electricity system losses.
“We recognize that power supply shortages in Nepal have caused significant delays in the restoration of infrastructure and services impacted by the 2015 earthquake,” said AIIB Vice President and Chief Investment Officer D.J. Pandian. “By investing in hydropower and encouraging further private sector investment in the country, we will help drive economic growth and poverty alleviation efforts.”
Cofinanced with the International Finance Corporation, Asian Development Bank and other development institutions, the project involves a USD650-million investment, financed entirely by foreign capital. It aims to serve as an example of how to facilitate investments in the sector.
“AIIB’s investment will provide much-needed, long-term financing for a vital infrastructure project,” said AIIB Director General Dong-ik Lee. “We are confident that our investment will demonstrate the viability of Nepal’s sustainable energy sector to other potential private-sector investors.”
The Upper Trishuli-1 Hydropower Project is a 216-megawatt greenfield run-of-river hydropower plant to be developed on the Trishuli river under a build-own-operate-transfer model. The project will sell power to the Nepal Electricity Authority under a Power Purchase Agreement.
Additional information about the Upper Trishuli-1 Hydropower project can be found here.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 97 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.
More News Articles
Beijing, February 01, 2023
AIIB Launches Inaugural Euro Commercial Paper Program
The Asian Infrastructure Investment Bank (AIIB) is launching its inaugural USD5-billion multicurrency Euro Commercial Paper (AIIB ECP) program in February 2023. The program expands AIIB’s short-term funding options and demonstrates the Bank’s agility in meeting investors’ demand for sustainable investment through high-quality debt capital market issuance programs.
READ MOREBeijing, January 09, 2023
AIIB Welcomes Mauritania as New Prospective Member
The Asian Infrastructure Investment Bank’s (AIIB) Board of Governors has approved Mauritania’s application, raising the Bank’s approved membership to 106. Mauritania is now AIIB’s 55th nonregional member, 21 of which are from Africa.
READ MOREBeijing, December 30, 2022
AIIB Extends EUR250M to Support Egypt’s Green Public Transportation
The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a EUR250-million loan to Egypt for the Alexandria-Abou Qir Metro Line Project. Aiming to increase access to efficient, safe and low-carbon public transportation in the city of Alexandria, the project will upgrade and electrify the existing Alexandria-Abou Qir line. Twenty metro stations along the 22-kilometer corridor will be modernized, 13 stations and 16 kilometers of which will be elevated.
READ MOREBeijing, December 12, 2022
AIIB Reinforces Commitment to Support Members’ Clean Energy Solutions
The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) has approved an update to the Bank’s Energy Sector Strategy on Nov. 22, 2022. Under the updated Energy Sector Strategy, AIIB will focus its energy investments on supporting its Members to achieve their long-term climate goals and net-zero/carbon neutrality commitments and to accelerate the just transition towards secure, affordable, and sustainable energy access for all.
READ MORE