Kathmandu, Nepal, May 30, 2012—
IFC, a member of the World Bank Group, has released a study that finds significant investment potential for energy efficiency and renewable energy projects in 10 selected industrial sectors in Nepal, enabling financial institutions to develop their sustainable energy lending.
The South Asia Enterprise Development Facility, managed by IFC in partnership with the UK Department for International Development and the Norwegian Agency for Development Cooperation, carried out the study to analyze energy use patterns and identify areas where financial institutions can invest for greater efficiency. Together with energy service providers and end-users, the project aims to make sustainable energy projects bankable by carrying out energy audits.
With IFC’s support in building capacity for proposal evaluation, loan product development and due diligence, the Clean Energy Development Bank specifically is launching a unique sustainable energy financing product. This is the first such offering that any financial institution has introduced in Nepal.
“We invite all stakeholders to join this Sustainable Energy Finance initiative to tackle the energy crisis responsibly and effectively,” said Manoj Goyal, chairman of Clean Energy Development Bank.
Promoting energy efficiency is particularly important in Nepal, with its complete dependence on petroleum imports. Additionally, unreliable grid power supply forces plants to use expensive diesel generators. According to the Environment Sector Program Support, a program financed by Denmark, Nepal’s industry can save up to 30 percent of energy costs by implementing energy efficiency measures alone.
IFC program manager Thelma Tajirian said, “Energy is a major priority for Nepal’s industrial growth. This sustainable energy finance market study will help the financial institutions make strategic decisions in the new market, and spur the private sector to take the lead in clean and sustainable economic development.”
IFC has started conducting detailed energy audits, and pilot projects are underway to promote the adoption of energy efficiency and renewable energy technologies in Nepal.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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