NMB Bank signs MoU for investment in hydropower project

NL Today

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Kathmandu: NMB Bank has inked a Memorandum of Understanding (MoU) with Remit Hydro to finance Ghunsa Khola Hydroelectric Project (77.5 MW) located at Taplejung district.

Hydroelectricity Investment and Development Company Ltd. and equity collected from people working abroad are the major promoters of Remit Hydro Ltd.

This project has been included in the ‘Janata Ko Jalvidhyut Karyakram’ by the Government of Nepal.

Having experience in financing around 46 hydropower projects, NMB Bank shall lead the project under consortium arrangement with the inclusion of other banks and financial institutions to finance the project.

The total cost of the project is estimated at Rs 18.25 billion, the bank said in a statement.

NMB Bank has already adopted an environmental and social risk policy and started implementing environmental and social management system within its business portfolio as directed by Nepal Rastra Bank guidelines on Environmental and Social Risk Management, 2022, according to the statement.

In addition, bank said it is committed to apply international good practices such as IFC performance standards in project financing including hydropower sectors.