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Nepal

Kabeli A Hydropower Project Context Currently, only around 48 per cent of the population of Nepal has reliable access to electricity. Peak demand on Nepal’s power sector of more than 1300 MW is met with less than just under 850MW of installed capacity. As a consequence, frequent blackouts make it a struggle for households and businesses to function efficiently. The Government of Nepal is focused on increasing its own installed electricity generation capacity, particularly through renewable energy, and decreasing its reliance on imported power from India.

o 37.6MW run-of-river hydro project located in Taplejung and Panchthar Districts, eastern Nepal o Will generate additional 205GWh of electricity

per year.

o Groundbreaking ceremony 23 March 2017. o Operation expected to commence in 2020.

What InfraCo Asia Did By providing development expertise and funding of US$8M, InfraCo Asia is enabling the financing and development of a

US$99.5M hydropower project.

In 2012, InfraCo Asia and its Nepalese partner, Butwal Power Company (BPC) formed a joint venture company to develop a pipeline of hydro power projects. Kabeli A is the first of these to be developed and funded. InfraCo Asia is supporting local private sector developers by providing development capital and expertise and enabling access to international financing. InfraCo Asia, by taking a substantial stake in the project, catalysed funding through both domestic and foreign equity and debt. This includes support from the World Bank, the International Finance Corporation (including the Canadian Climate Change Program), Nepal’s Hydroelectricity Investment and Development Company Ltd. (HIDCL) and NIC Asia Bank. The Kabeli A project is managed on InfraCo Asia’s behalf by Equicap Asia Management Pvt Ltd., in close cooperation with BPC.

US$8m InfraCo Asia

US$99.5m Total Project Value

We are pleased to provide the necessary development expertise and leadership capital to support Nepal in developing its renewable energy sector.

Allard Nooy CEO, InfraCo Asia

PIDG Support InfraCo Asia is part of the Private Infrastructure Development Group (PIDG). PIDG’s Technical Assistance Facility provided a grant of $87,000 to assist with costs associated with technical pre-feasibility assessments and related capacity building for government officials and local private sector counterparts. A further contribution is expected from sister facility, InfraCo Asia Investments, at financial close.


Nepal

Development Impact

1.6 million people, or 320,000 households to benefit from

60 long term jobs created once project is operational

reliable and affordable power supply

Environment & Community Kabeli A, once operational, will play a vital role in bolstering Nepal’s capacity to provide reliable, sustainable energy to its people. Diverse communities live around the project site, reflecting a wide range of cultural, linguistic and religious backgrounds. Many locals living in this underdeveloped rural area rely on agricultural production and related commerce. Already, access roads created as a part of the Kabeli A project are enabling smoother flow of produce in the surrounding areas. The completed project will catalyse additional opportunities for economic development. The ecology of the Kabeli A river surrounds will be protected during every phase of project development, and an Environmental Impact Assessment was completed to World Bank standards. The successful development of Kabeli A and subsequent hydro power projects in the pipeline will establish a model for developing and financing infrastructure in Nepal’s challenging development environment.

InfraCo Asia receives funding from the governments of Australia, Switzerland and the United Kingdom.

InfraCo Asia

www.PIDG.org

InfraCo Asia

Private Infrastructure Development Group

@InfraCoAsia

@pidgorg

This project is an excellent example of a successful partnership of international and local investors with multinational development agencies to help the development of Nepal. It can set a model for other projects. Mr Padma Jyoti Chair, Butwal Power Company

InfraCo Asia Kabeli A Hydropower Project Fact Sheet  

InfraCo Asia, a company of the Private Infrastructure Development Group, and its Nepalese partner Butwal Power Company are developing the 37...

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