Nepal's IBN Approves Rs 21.17 Billion for Two Hydropower Projects
Investment Board Nepal has cleared Rs 21.17 billion for two semi-reservoir hydropower projects totaling 105.62 MW. The board also moved to accelerate the 900 MW Arun-3 and Upper Karnali projects and introduced competitive Swiss Challenge procurement.
KATHMANDU, Oct 10 — Investment Board Nepal (IBN) has approved investments totaling Rs 21.17 billion for two semi-reservoir-type hydropower projects with a combined capacity of 105.62 MW.
The 68th meeting of the IBN, chaired by Prime Minister Balendra Shah, approved Rs 10.75 billion for the 58.9 MW Nar Khola Semi-reservoir Hydropower Project and Rs 10.42 billion for the 46.72 MW Sani Bheri-3 Semi-reservoir Hydropower Project.
The meeting also decided to facilitate the necessary measures to ensure that the 900 MW Arun-3 Hydropower Project begins commercial production by February 2028. It agreed to expedite the development of the long-delayed 900 MW Upper Karnali Hydropower Project in accordance with the provisions of the Project Development Agreement (PDA).
To ensure the effective implementation of approved projects and provide necessary services and support to investors, the meeting decided to delegate the required authority to IBN Chief Executive Officer Yangki Ukyab.
The IBN has directed the concerned offices to establish a legal framework allowing project proposals, including those not initially solicited by the board, to be advanced through a competitive process using the Swiss Challenge method where necessary. The move is expected to promote private sector participation and competition in infrastructure development.
The meeting also discussed prioritizing investment proposals for infrastructure projects that use advanced information technologies, including Artificial Intelligence (AI). According to the IBN, priority will be given to projects based on their contributions to:
- Renewable energy utilization
- Job creation
- Nepal's overall economic development