Friday, December 5th, 2025

World Bank pledges $8.5 million concessional loan for Arun Hydropower Project: FinMin Pun



KATHMANDU: Finance Minister Barshaman Pun’s recent visit to the United States has yielded significant results, particularly in the realm of infrastructure development in Nepal.

Minister Pun, who returned from his visit on Saturday, announced a pivotal agreement between Nepal and the World Bank regarding the financial structure of the 1,063 MW Upper Arun Hydropower Project in Sankhuwasabha.

During his discussions with top officials of the World Bank, Minister Pun secured an agreement in principle for a concessional loan of approximately $8.5 million for the Upper Arun Hydropower Project.

This agreement marks a crucial milestone in Nepal’s efforts to bolster its energy infrastructure and harness its abundant hydropower potential.

The Upper Arun Hydropower Project, set to be constructed in Sankhuwasabha, is a key initiative aimed at meeting Nepal’s growing energy demands and reducing its reliance on imported energy sources.

With a capacity of 1,063 MW, the project holds immense significance for Nepal’s energy security and economic development.

Minister Pun expressed his satisfaction with the outcome of his discussions with the World Bank, highlighting the importance of international cooperation in realizing Nepal’s hydropower ambitions.

He emphasized Nepal’s commitment to clean energy production and its potential to emerge as a leading exporter of clean and green energy in the South Asian region.

In addition to the agreement on the Upper Arun Hydropower Project, Minister Pun also discussed opportunities for co-financing the 635 MW Dudhkoshi Reservoir Hydropower Project, further underscoring Nepal’s commitment to expanding its hydropower capacity and promoting sustainable development.

Minister Pun’s successful visit to the United States, which saw his participation in various high-level meetings and engagements with key stakeholders, reinforces Nepal’s position as an attractive destination for international investors and development partners.

As Nepal continues to pursue its ambitious development agenda, such agreements play a vital role in unlocking the country’s economic potential and fostering inclusive growth.

Publish Date : 21 April 2024 09:05 AM

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