Himal Press 
KATHMANDU: The World Bank and the Asian Development Bank (ADB) have announced a collaboration to strengthen Nepal’s hydropower sector specifically in the context of the proposed Upper Arun and Dudh Koshi hydropower projects.
The two multilateral lenders signed a memorandum of understanding (MOU) stipulating cooperation between the two institutions for an initial period of five years on the sidelines of COP28. Martin Raiser, the World Bank Vice President for South Asia and Fatima Yasmin, ADB Vice-President for Sectors and Themes, signed the MoU.
“The full potential of Nepal’s enormous hydropower resources cannot be realized without close partnership between the Nepalese government, development partners and the private sector,” said Martin Raiser, World Bank Vice President for South Asia. “With this MOU, the ADB and the World Bank are laying the foundations for closer collaboration in financing and policy advice in Nepal’s hydropower sector, with the aim to support the country’s green, sustainable and inclusive development for decades to come.”
Likewise, ADB Vice President Yasmin said this agreement between ADB and the World Bank is a significant step in strengthening Nepal’s energy security amid rising demands from population growth and urbanization. “It also fosters power trade with neighboring countries, promoting regional cooperation, economic growth, and green and inclusive development,” Yasmin said. “ADB is committed to promoting clean energy solutions that align with climate action goals. Our commitment goes beyond generating power; it’s also about creating positive impacts on communities, livelihoods, and the environment and contributing to a more sustainable future for all.”
According to a statement issued by the World Bank, the MOU specifically targets three critical areas for collaboration: enhancing country-level collaboration, strengthening co-financing, and boosting joint action on climate change. The pilot approach between the two multilateral development banks provides opportunities for collaboration in knowledge and experience sharing to ensure a common understanding of the hydropower sector in Nepal, joint analytical studies, and consultation in support of the development of the hydropower sector, it added.
