© Simone D. McCourtie
Nepal is a priority country for IFC, with efforts focused on boosting inclusive and sustained growth and helping deal with the impacts of the COVID-19 pandemic.
In line with that, in the financial year ending June 2020, IFC moved to help create up to 50,000 jobs over the next five years by increasing available funding for small and medium sized enterprises (SMEs) – a key engine of growth in Nepal. The investment in one of Nepal’s premier banks, NMB Bank, will boost financing for green projects.
The year 2020 also saw IFC invest in the 216 MW Upper Trishuli-1 Hydropower project – (UT-1) which will increase Nepal's electricity supply significantly from today’s levels and provide improved power to millions of people. In addition, it will set social and environmental benchmarks, reduce the country’s electricity import bill and showcase Nepal's readiness for more foreign direct investments. Despite the market uncertainty, IFC had a record year in Nepal in 2020.
IFC has played an active role in numerous other areas, vital for Nepal’s growth, including tourism, agribusiness, transportation, trade finance, small businesses, and private equity and venture funds. IFC also works closely with the government of Nepal to help create an enabling business environment in the country.
We have invested in Nepal since 1956—creating opportunities where it is needed the most. As of June 2020, IFC’s committed portfolio is over:
STORIES OF IMPACT
Creating opportunities through sustainable hydropower: With over 6,000 rivers and streams, Nepal has an enormous potential for hydropower. However, energy shortages are chronic. Now, the power of Nepal's Trishuli River will be harnessed to create a 216-megawatt run-of-river hydropower project supported by the IFC. When completed, it will generate electricity sufficient to supply up to 9 million people.
Adapting to new demands in the COVID-19 crisis: Gandaki Urja, Nepal’s largest commercial biogas plant, supported by IFC-backed private equity and climate-focused fund, was helping its clients, mostly restaurants in western Nepal, get access to clean cooking fuel. With the COVID-19 crisis adversely impacting the service industry, the plant was almost at the brink of closure. Today, Gandaki Urja is working with clients like hospitals and farmers that are saving lives and feeding people in the pandemic.
Published in August 2020