Kathmandu, April 2, 2010
—IFC, a member of the World Bank Group, is working with the Nepal Bankers’ Association to promote awareness about financial risks and opportunities associated with hydropower and renewable energy projects. Given Nepal’s current energy crisis, hydropower holds great potential for the country as a clean alternative source of energy.
The SouthAsia Enterprise Development Facility, managed by IFC, in partnership with the United Kingdom’s Department for International Development and the Norwegian Agency for Development, and the Nepal Bankers’ Association, organized a three- day training program on “Hydropower and Renewable Energy Financing” for bankers.
Local bankers lack the experience of financing small hydropower projects. Such investments are usually high risk, with long repayment periods and complex technical aspects. The training program helped bankers understand these projects better by exploring topics such as the market potential in Nepal, credit assessment, financing structures, laws, licenses and policies, risk and mitigation, insurance, and legal issues related to hydropower. Other renewable energy financing options were discussed and participants visited a hydropower plant to gain real on-site understanding of these projects.
“Nepal is strategically located to tap this resource, so this program represents a great investment opportunity for bankers and businesses alike,” said Sashin Joshi, NBA President.
Ian Crosby, Head of SEDF, said, “This training was a critical step toward creating opportunities for financial institutions to build a sustainable energy finance portfolio that will address climate change issues, improve energy security and reduce pollution in Nepal, while increasing bank profits.”
SEDF is working with financial institutions to develop strategies, products, services, and marketing plans in order to enhance their sustainable energy finance portfolios. SEDF also is developing the capacity of energy auditors and providing the latest market information to assist banks in financing energy-efficient projects.
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by increasing financing for renewable energy or energy efficient projects.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
About Nepal Bankers’ Association
In view of growing banking business in Nepal, NBA was established for collective efforts and participation of the banks to establish and enhance the interrelationship and co-ordination among the commercial banks incorporated in Nepal in order to develop a fair and healthy competition among the banks, to maintain uniformity in the policy and procedures of loan and other banking transactions, to develop and adopt creative and modern technology.
