AIIB Delegation to Review Nepal’s Infrastructure Projects

A delegation from the Asian Infrastructure Investment Bank (AIIB) is going to visit Nepal, later in this month or early October, to take stock of the country’s various infrastructure projects that required AIIB fund.

The team will be visiting various projects by different ministries and government agencies. Rural electrification project in western Nepal and Tamakoshi 5 Hydropower Project, proposed by the Nepal Electricity Authority (NEA), are on top of the list.

“If the mission approves the projects, a proposal will be tabled at AIIB’s board to secure funds. Once the board approves, AIIB will sign a loan agreement with the government,” said Baikuntha Aryal, Head of the International Economic Cooperation Coordination Division at the Ministry of Finance, Government of Nepal.

Meanwhile, NEA Managing Director Kulman Ghising is positive about AIIB funding for the rural electrification project in Province 6.

“We have asked for loan assistance of Rs 10 billion for rural electrification. The multilateral lender, during informal communications, has shown interest in funding the project,” Ghising informed.

NEA is also confident about AIIB funding for the 87 MW capacitive Tamakoshi 5 Hydropower Project for which, the authority sought Rs 13 billion in loan from AIIB.

“Per megawatt construction cost of the hydropower project is less than Rs 150 million. This cost-effectiveness is likely to appeal to the lender,” said another NEA official.