Kathmandu: Construction of India-assisted Arun-III hydropower project in Nepal’s Sankhuwasabha district is witnessing fast developments, media reports said.
Five Indian banks and two Nepali banks have committed to lend debts for construction of the 900 MW mega power project, ANI reported.
In February, Nabil Bank, which is one of the lenders for the project from Nepali side, signed a pact with India’s Satluj Jal Vidyut Nigam (SJVN), setting a record of largest ever foreign direct investment to the Himalayan nation, reported the Indian news agency.
Nepal’s largest hydro project is Arun-III.
Anil Keshari Shah, CEO of Nabil Bank, told ANI, “This type of engagement of Nepali banks during the construction of Arun-III hydropower project will test capability of Nepali banks as well as lend new experience in these types of big projects.”
“Our engagement with SJVN for Arun-III has increased our aptness. Back in February, we had a financial closure which means we will be on ground to support them which in turn will be support for the whole nation,” Shah said.
“Apart from experience for us, the project also provides employment to locals. As we are associated with the project, we will have the benefit that salary of employees will go through our bank. Also, the transactions for purchase of goods and materials will also be made through us. It is indeed a new experience for us,” he added.