Upper Trishuli-1 Hydropower Project (MIGA-13516)

Countries
  • Nepal
Where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 14, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Korea South-East Power Co. Ltd, Daelim Industrial Co. Ltd, Kyeryong Construction Industrial Co., Ltd
The holder of the loan, grant, or other investment.
Sectors
  • Energy
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Oct 22, 2019

Disclosed by Bank Nov 26, 2018


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Project Description

According to the bank website, "the investors have applied for MIGA guarantees of up to US$150 million for a period of up to 15 years against the risk of breach of contract...The Project consists of construction, operation, and maintenance of a 216 megawatt run-of-river hydropower plant on the Upper Trishuli river in Nepal, owned by a special purpose vehicle, Nepal Water & Energy Development Company Pvt. Ltd. The Project will sell power to Nepal Electricity Authority, the national utility, for domestic supply under a 30-year power purchase agreement ("PPA"). The Project will be developed on a Build, Own, Operate and Transfer ("BOOT") basis under a 35-year concession agreement (Project Development Agreement or "PDA") with the Government of Nepal represented by the Ministry of Energy, Water Resources and Irrigation.

The Project is of strategic national importance and will be the largest Foreign Direct Investment ("FDI") in Nepal to date, increasing the country's domestic power supply by approximately 20% compared to today's levels and providing about 40% of its expected 1,456 GWh of net annual output during the dry season, which includes the peak winter demand months. The Project's expected commissioning date is March 2024."

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)
Private Actors
Contact Information

No project-specific contact information available at time of writing.

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/