• Nepal
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
Bank Risk Rating
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
Oct 28, 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.
Nepal Water and Energy Development Company
The holder of the loan, grant, or other investment.
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 15.38 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Mar 6, 2020

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Project 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
Private Actors Description

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

Nepal Water and Energy Development Company
No project-specific contact information available at time of disclosure.


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: