World Bank and ADB strike deal for the expansion of Nepalese hydropower sector
The MOU will cover the upcoming Upper Arun and Dudh Koshi hydropower projects.
The World Bank and the Asian Development Bank (ADB) partnered for the sustainable development of the growing hydropower sector of Nepal, particularly with the proposed Upper Arun and Dudh Koshi hydropower projects.
Under the memorandum of understanding (MOU), the two organisations will engage in an ongoing exchange and formation of Nepal's hydropower energy policies for the next five years.
The deal will also particularly target three critical areas for collaboration: the enhancement of country-level collaboration, the expansion of its co-financing, and the joint action on climate change. It will ensure a common understanding and comprehension of the hydropower sector in Nepal, as well as further analytical studies and consultations.
“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 neighbouring countries, promoting regional cooperation, economic growth, and green and inclusive development,” Fatima Yasmin, Vice President for Sectors and Themes of ADB, weighed in.
The agreement is the first MOU signed between ADB and the World Bank after their joint statement during the World Bank-IMF Annual Meetings in Marrakech last October 2023.