The World Bank approved Strategic Climate Fund (SCF) Grant in the amount of $5.61 million and SCF Loan in the amount of $2 million to help Nepal diversify its energy sources to renewables.
The SCF grant and credit support the Private Sector-Led Mini-Grid Energy Access Project, which aims to mobilize energy-service companies in selected regions of the country to increase the capacity of renewable energy mini-grids.
“One component of the project will provide credit facility to the private sector to support renewable mini-grid sub-projects, and help this sector prosper and expand,” said Subodh Adhikari, World Bank Senior Energy Specialist and Task Team Leader of the Project. “The second component will provide technical assistance to the mini-grid sector, energy-service companies, and partner banks to ensure smooth and sustainable implementation,” he added.
The Project is aligned to the efforts of the Government of Nepal to address barriers to private sector participation in the renewable energy mini-grid sector. The Project will aim to address these barriers by successfully demonstrating new approaches that will promote public-private partnerships (PPPs).
“This Project will tap into the vast business opportunities and technical potential for the private sector to provide more efficient and sustainable energy services in Nepal,” said Faris Hadad-Zervos, World Bank Country Manager for Nepal. “It is directly linked to the Government of Nepal’s effort for greater private sector management and commercial financing through public-private partnerships, and the World Bank’s mission of maximizing all financial opportunities for development,” he added.
The Project aims to improve the overall energy supply situation in Nepal by promoting renewable energy solutions.
Original source: World Bank
Published on 30 January 2019
