GMR, IFC pact to build Upper Marsyangdi 2

KATHMANDU, DEC 22 -

GMR Energy Limited , the energy arm of the GMR Group of India, has signed a Joint Development Agreement (JDA) with International Finance Corporation (IFC), a member of the World Bank Group, to jointly develop the Upper Marsyangdi 2 hydropower project.

The 600 MW project, located on the Marsyangdi River in Manang and Lamjung districts in western Nepal, is already at an advanced stage of development. The project is being built through Himtal Hydropower, a Nepali subsidiary of GMR Energy Limited .

The Upper Marsyangdi project has completed all survey and investigation work, finalized the feasibility studies and received most of the required clearances from the government, said the company in a press statement. “The Project Development Agreement is expected to be signed early next year,” reads the statement.

“We are pleased to have IFC as our partner in the Upper Marsyangdi 2 hydropower project. Apart from investing in the company, IFC will also bring its vast experience in financing similar large and complex infrastructure projects which will add value to the project. We believe that with the continuous support of Investment Board Nepal, both GMR and IFC shall be able to implement this project in an accelerated manner,” said GBS Raju, chairman, Energy Business, GMR.

“Nepal government is pleased at the induction of an institution like IFC in the Upper Marsyangdi 2 Project and we are hopeful that the GMR and IFC team shall be able to give the much needed impetus to large-scale hydropower development in Nepal through the development of this project in a world class manner,” said Radhes Pant, CEO of Investment Board Nepal.

The project has aimed at a total investment of around US$ 1 billion and is targeted for completion by fiscal 2021.

Source: The Kathmandu Post