The facility from BII will contribute to the Government’s goal to increase clean energy supply in Nepal and increase the export of surplus energy to neighbouring countries in South Asia, including India and Bangladesh. Hydropower accounts for more than 90 per cent of Nepal’s electricity generation capacity, and the Government aims to develop a further 15 GW by 2035. The credit will contribute to this target by supporting the development of renewable energy through the import of electro- and hydro-mechanical equipment for hydro plants, solar power systems, and raw materials for manufacturing and agriculture.
“This facility will help to improve access to affordable, reliable and clean energy for businesses and households in Nepal,” said Habib Yousuf, BII’s Regional Director for South Asia. “The positive impact of this will be far-reaching, contributing to sustainable development and improving the quality of life for many individuals,” he added.
Rob Fenn, the British Ambassador to Nepal commented: “This facility from British International Investment underscores the UK’s commitment to sustainable economic development in Nepal, which will benefit households and businesses throughout the region.”
“This partnership marks a significant step towards accelerating Nepal’s transition to sustainable energy sources while addressing the country’s growing energy needs,” said Pawan Kumar Acharya, Deputy Chief Executive Officer at Sanima Bank. “This endeavour also aligns with global efforts to reduce reliance on fossil fuels and combat climate change. Sanima Bank aim to promote low-carbon energy projects that foster economic growth and create long-term positive impacts for local communities,” he noted.
In January 2024, BII signed a US$ 100 million risk sharing agreement with the Asian Development Bank aiming to increase financing for renewables in South and Southeast Asia. Efforts to use trade finance to support a green transition have intensified in recent years, with notable successes including the International Chamber of Commerce’s definition of sustainable trade finance published last October.
