Sandip Shah, vice president for South Asia of SN Power, informed myrepublica.com that the talks they had with the officials of International Finance Corporation (IFC) in Washington DC on the matter have been positive and encouraging. Shah also said that the IFC is soon sending a technical team to Nepal to look into the possibilities of its participation in the project. [break]
IFC, a financial lender of the World Bank group, so far has invested in Bhotekoshi Hydro Electric Project, Buddha Air and Jomsom Mountain Resort.
Shah said the talks with the IFC were focused mainly on environmental, legal and financial issues related to the project.
The project is expected to produce power from 2017 if construction starts as planned in 2013. The estimated cost of the project is Rs 120 billion, which will make it the biggest hydropower project in Nepal. SN Power and TATA have equal share investment in the project.
Once completed, majority of the power produced from the project will be exported to India through the proposed high capacity Dhalkebar-Muzaffarpur Transmission Line, the construction of which is under consideration with financial support from the World Bank at the cost of Rs 50 billion.
According to another source, who attended the meeting, the World Bank officials also suggested the promoters to include the Nepal government as an equity partner in the project and the dropped hints of providing financial assistance to Nepal for the purpose.
During the meeting, the IFC officials raised concerns over Nepal´s investment climate, investment risks and guarantee of return along with many other issues.
Vice President of the World Bank, who is scheduled to visit Nepal on a regular visit, is also planning to visit the project site along with the Khimti Hydro Electric Project.
According to Shah, as many as 4,000 workers will be required for the construction of the project if it goes into implementation. The project will also include a 94 meters high dam.
Likewise, IFC has also shown its interest to invest in Kirne Hydro Electric Project (69 MW) project being promoted by SN Power. "The decision is expected anytime soon," Shah said.
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