The estimated cost of the project is around Rs 225 billion, including interest during the construction period.
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Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport and Urban Development Kulman Ghising has urged the Asian Development Bank (ADB) to immediately finalize the financial management of the 670 MW Dudhkoshi Reservoir Hydropower Project.
In a meeting with a team including ADB South Asia Department Deputy Director General Sona Shrestha and ADB Nepal Resident Mission Chief Arnaud Kushwa on Monday, Minister Ghisingh said that the financial management of Dudhkoshi has been in the news for a long time and it needs to be finalized immediately.
The estimated cost of the project is US$2.2 billion (about Rs.225 billion) including interest during the construction period. Of this, preparations are underway to raise US$1.68 billion from loans and the rest from equity to finance the project.
Under the leadership of ADB, various international financial institutions will invest US$1 billion in the project on a concessional loan. Out of this, ADB has committed to investing US$550 million in the project on a concessional loan. The project is currently undergoing pre-construction preparatory work, the project said.
During the meeting, Minister Ghising urged to increase investment in the areas of water supply, roads, irrigation, electricity transmission and distribution system improvement. Ghising urged to provide necessary assistance for feasibility studies of flyovers, tunnels, etc. for traffic management at various intersections in the Kathmandu Valley.
He said that problems seen in the implementation of environmental and social safeguards, including land use in forest areas and tree cutting, land acquisition, compensation for vacant land, etc. in ADB-assisted projects will be resolved and the institutional capacity of the implementing agencies will be developed.
ADB requested to increase the spending capacity of projects run with assistance, to resolve problems seen in land acquisition and compensation for vacant land, and to enhance the capacity of the project implementing agencies.
