When there is a dispute about getting a loan from the World Bank, the Japanese team met with stakeholders in Nepal and got information.
What you should know
On the day after the dissolution of the House of Representatives, i.e. after June 26, 2051, lobbying was going on that the loan should not be accepted during the Arun 3rd hydropower project run by the government.
Alliance for Energy in Washington, USA and Arun Sarokar Group in Nepal were raising many issues against the project. The meeting of Arun's main lender, the World Bank, was scheduled to be held on July 11, 2051, but it was postponed to the end of September, i.e., the second week of October, 2051.
The main leadership of the loan was the World Bank, while the largest part of the loan was the Japanese government . While anti-Arun activities were going on, mid-term elections were announced in Nepal and the government was working. Left-wing parties, including the UML, which are supporting the stakeholders raising their voice against Arun, were on the streets demanding an all-party government.
At this time, the Japanese government team from the creditors came to Nepal to listen to the information spread about Arun, the government officials and the residents of the affected areas. The team led by the Director of the Ministry of Foreign Affairs of Japan, Yasuaki Tanuzaki, held a press conference and said that they had come to Nepal to get more information about Arun from the stakeholders.
The opponents of Arun were saying that the World Bank decided not to give loans for the time being because Prime Minister Girija Prasad Koirala dissolved the parliament and ran the government. ![[Archive] After coming to Nepal, Arun's lender was the Japanese officer...](https://assets-cdn.kantipurdaily.com/uploads/source/news/kantipur/2025/miscellaneous/page1kpr-0692025010949-1000x0.jpg)
However, the World Bank decided to postpone the meeting on June 25, 2051, before the recommendation of dissolution of the House of Representatives. The Japanese delegation came to Nepal because stakeholders spread more negative than positive issues about Arun. In the press conference, the director of the Ministry of External Affairs Yasuaki informed that while discussing the issue of Arun, he discussed with Prime Minister Koirala, Minister of State for Finance Mahesh Acharya, high-ranking officials of the government, opposition parties, stakeholders and affected by Arun.
The Japanese team reached the project site and listened to the locals. In the press conference, Director Yasuaki informed that Prime Minister Koirala and Finance Minister Acharya have requested that the loan be approved for Arun quickly.
He said that any project has both good and bad sides and the Japanese government will not rush into the project and not hear the pros and cons.
After the political change of 2046, lobbying for the construction of the largest development project in the country with an investment of 38 billion was going on for a long time. Director Yasuaki said that if the loan is approved, his government's share will be 8.35 billion. Information was also given that the said soft loan will have a low interest rate. The World Bank was also looking for an answer from the Japanese government, which gave the most loans to Arun.
The government was asking the World Bank for loan approval saying that it will leave the 402 MW Arun in Sankhuwasabha to avoid the country's energy crisis. On the other hand, mainly the left wing and environment groups including UML were lobbying against Arun at the international level.
When the House of Representatives was dissolved, the pressure to not trust the interim government was also increased . Concerned groups and Alliance for Energy were putting great pressure on not providing loans by putting forward arguments such as spoiling the environment, reducing the possibility of small projects in the country, causing local uprisings, needing approval from China, and needing a power purchase agreement with India.
The government, by issuing the Water Resources Policy 2049, made a strategy to create a suitable environment for the private sector to invest in the construction of power projects. The news prepared by Kantipur daily was published on August 15, 2051 under the title 'Request to accept the loan of Arun third', focusing on the questions raised regarding the Japanese team coming to Nepal to understand and discuss about the Arun project.
Presentation: Rishiram Paudyal
![[Archive] After coming to Nepal, Arun's lender was the Japanese officer...](https://assets-cdn-api.ekantipur.com/thumb.php?src=https://assets-cdn.ekantipur.com/uploads/source/news/kantipur/2025/third-party/arun-23022017072708-1000x0-0692025012217-1000x0.jpg&w=1001&h=0)