NEPAL WATER AND ENERGY DEVELOPMENT COMPANY PVT. LTD. (FMO-55588)

Countries
  • Nepal
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 28, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Nepal Water and Energy Development Company
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 15.38 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 647.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ FMO website

Updated in EWS Mar 6, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank website, the project will be part of the approx. USD 453 million debt package arranged by IFC. This debt package will be used for construction of the Upper Trishuli, 216MW run-of-river hydropower plant on the Trishuli river in Nepal, 70km north of Kathmandu, including financing and development costs.

"UT1 will be a landmark project for Nepal, a Least Developed Country ("LDC") with severe energy shortages. As the largest HPP in the country, UT1 will be a role model for Nepal's hydropower sector with bankable non-recourse project documents, Nepal's first Free, Prior and Informed Consent ("FPIC") FPIC process for Indigenous Peoples ("IP"), and the first HPP to use eDNA as a tool for management of impacts on aquatic biodiversity. Its estimated 1,427 GWh/year output will increase Nepal's domestic generation by ~32% and will reach an estimated 9 million people. With a levelized tariff of USC/ 5.1/kWh, UT1 will be a commercially attractive generation source for the off-taker. The strong and experienced Sponsors have proven to be committed and patient in the face of severe setbacks and challenges over the past years. UT1 is a 100% Green, 100% Reducing Inequalities project and therefore fully in line with FMO's strategy."

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to the bank, "NWEDC is majority-owned by three South Korean strategic investors (together the "Sponsors"): Korea South East Power Company ("KOEN", 50%), Daelim Industrial Co. Ltd. ("Daelim", 15%), and Kyeryong Construction Industrial Co. Ltd. ("Kyeryong", 10%). International Finance Corporation ("IFC") acquired a 15% stake in 2013. The original license holder Mr. Bkesh Pradhanang ("Local Partner") holds 10%. Under the PDA, the Project Affected People ("PAP") are entitled to purchase up to 10% of the Company at par value."

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Korea South East Power Company Parent Company -
- - - - Kyeryong Construction Industrial Co. Ltd. Parent Company -
- - - - Nepal Water and Energy Development Company Private Limited Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Nepal Water and Energy Development Company
http://www.nwedcpl.com/
No project-specific contact information available at time of disclosure.

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works