The proposed 140MWe Tanahu Hydropower plant will be built on the Upper Seti River, Tanahu District, in the central part of Nepal.
This project will contribute to meet peak electricity demand in the country during the dry winter season when the shortage of electricity is more and will operate as a base load power plant during the remaining period of the year.
Commenting on the initiative, EIB vice president Magdalena Álvarez Arza said that the financing being made showcases the firm’s commitment to contribute to a stronger and sustainable dynamism of the Nepalese economy.
European Union Delegation Nepal Ambassador and head Alexander Spachis said, "Since energy is the key to speeding up social and economic development, the present EIB loan will contribute to help Nepal achieve its development goals in the next couple of years."
The Asian Development Bank, the Japan International Cooperation Agency and the Abu Dhabi Fund for Development will co-finance the hydropower project.
