Nepal bank signs partnership deal with China firm

(Xinhua)
Updated: 2008-12-19 11:49

KATHMANDU -- Nepali Clean Energy Development Bank (CEDB) has signed a strategic partnership agreement with Northwest Hydro Consulting Engineers (NWH) - to carry out various levels of engineering studies of hydropower schemes and help carry out techno-financial analyses of medium and large hydropower projects in Nepal, The Himalayan Times reported on Friday.

According to the agreement, it will help carry out different levels of engineering studies of hydropower schemes by pooling together the bank's in-house and local experts knowhow and NWM's vast experience in this field.

Northwest Hydro Consulting Engineers (NWH) is one of the world's leading hydropower consulting companies from China. It will help carry out techno-financial analyses of medium and large hydropower projects in collaboration with CEDB and local expertise, if need be.

"NWH's experience and knowledge will be mobilized to the optimum," said the bank.

The accord stipulates that NWH establish an office in Kathmandu manned by its competent and experienced staff. This arrangement will give prompt access to Chinese expertise in a cost effective manner.

Additionally, the bank has arranged for facilities of providing both equity and debt financing to investors possessing hydropower licenses in various stages of development.

Prior to the signing of this agreement, the bank signed an agreement with the Brahmaputra-Mekong Fund to invest up to US$100 million in the energy sector.

Similar agreements have also been signed with FMO - an international development bank and Tridos Bank - both from the Netherlands. Also, the bank recently launched its first-ever 250 to 300 million Nepali rupees (US$3.3 million to 4 million) Hydro Fund for early stage projects, said the report.