Himal Press 
KATHMANDU: The Asian Development Bank (ADB) has expressed its commitment to invest in the Dudhkoshi Storage Hydroelectric Project (635 MW).
A team, comprising Nepal Electricity Authority (NEA) Executive Director Kulman Ghising, ADB Director General Ramesh Subramaniam, and Country Director Arnaud Cauchois, conducted an inspection of the project site on Thursday. The team visited the proposed sites for the reservoir and powerhouse, and also engaged with the locals of Rabuba in Khotang, where the dam for the project will be constructed.
During the interaction with the local people, Subramaniam mentioned that this marks the final high-level visit to the project area. “The ADB is committed to closing the financing as soon as possible. Technical, environmental, and social issues related to the project should be promptly resolved to ensure timely implementation,” he added.
The estimated cost of the project is $2.2 billion, including interest during the construction process. NEA plans to secure $1.68 billion in loan financing and arrange the remaining resources through equity investment. ADB will lead a consortium financing of $1 billion by involving other investors, and the multilateral lender has expressed commitment to provide $550 million in concessional loans.
Highlighting the significance of the Dudhkoshi Storage project for Nepal’s electricity distribution system, Ghising said they have expedited efforts to secure financial resources for the project. “We are resolving the technical, environmental, and social issues to expedite the project,” he added.
The project is expected to affect a total of 3,139 households in Khotang, Okhaldhunga, and Solukhumbu districts. It will take seven years to complete the project which will generate 1.36 billion units in the dry season and 2.8 billion units in the wet season, according to NEA.
