Saturday 27th July 2024
In a major boost to infrastructure in Nepal, the Nepal Infrastructure Bank (NIB) has begun investing in projects.
As a first, the bank has made an investment of NPR 5.8 billion in the 32-Mw Karuwa-Seti hydropower project in Kaski district’s Machhapuchhare Village Municipality.
The project is financed by an association of banks under the NIB, which will be investing a total of NPR 4.06 billion. The NIB will be investing the remaining cost of NPR 1.5 billion.
According to the NIB, the Karuwa-Seti hydropower project will be co-led by Himalayan Bank and Sanima Bank, who will be collectively contributing NPR 2.56 billion.
A NIB official shared that the bank has several projects in the waiting and will soon sign agreements for five major projects.
“We will very soon sign investment pacts to construct a star rated hotel and another hydropower project,” said the NIB official.
The Nepal Infrastructure Bank received an operation license from Nepal Rastra Bank to conduct financial transactions on February 10, 2019.
The specialized infrastructure back was started with the aim to bridge increase infrastructure funding with support from the domestic and international market including blended financing.
It was established with funding from the government, various commercial banks, insurance firms, microfinance companies, private businesses and a group of entrepreneurs.
The bank received 90 percent investment from the private sector and 10 percent from the government.
The NIB covers projects including agriculture, advanced urbanization infrastructure, construction and development of transportation, energy, information technology and special economic zones among several other areas.
