ADB mulling to invest in Upper Karnali

Visiting Asian Development Bank (ADB)'s vice president Wencai Zhang informed that the multilateral financing body was mulling to invest in the Upper Karnali Hydroelectricity Project.

Speaking to the journalists at a press meet orgainsed on the sideline of the 'Envisioning Nepal 2020' seminar here Monday, Zhang said that the ADB's Private Sector Investment Department was studying the possibility to make an investment in the 900 megawatt Upper Karnali Project jointly with the International Finance Corporation of the World Bank group.

He also informed that the Bank might invest in the second phase of Melamchi Drinking Water Project and 25 megawatt solar energy project.

"The government of Nepal and ADB are discussing about the Melamchi and solar project. But its early to announce anything because our primary focus is to complete the first phase of Melamchi," Zhang said.

"ADB will build on its existing support in the energy sector and will extend assistance for 25 MW grid solar power plants and two major storage hydropower projects – the 300 mw Dudhkoshi and 410 mw Nalsing Gadh."

He noted the government's intent to graduate from the Least Developed Country status by 2022 and become a middle income country by 2030 while achieving the sustainable development goals.

ADB's Nepal country director Kenichi Yokoyama said that the Ministry of Energy had requested the bank to finance 25 mw solar energy project. "The government urged us to find the location and manage financing for the solar project," he informed.

Zhang met Prime Minister KP Sharma Oli, Finance Minister Bishnu Prasad Poudel and National Planning Commission vice president Dr. Yuba Raj Khatiwada.

During the meetings, he welcomed the finalization of the Reconstruction Policy and National Reconstruction Authority's grant guidelines, and progress towards the formulation of Post Disaster Risk Recovery Framework, following the recent establishment of the NRA.

ADB forecasted that Nepal's economy would grow 1.5 per cent in 2016 due to the devastating earthquakes in April and May last year. It expected that the growth would pick up to 4.8 per cent in 2017.