25 February 2013: The Asian Development Bank (ADB) has announced it is lending US$150 million towards a US$500 million project to build a 140-megawatt capacity hydropower plant in Nepal. As part of the project, at least 17,636 homes in the area of the hydropower plant will be provided with connections to the national power grid. Currently, approximately one-third of households in Nepal are connected to the grid.

According to the ADB, the hydropower plant will generate electricity year round, and will be located 150 kilometers west of Kathmandu on the Seti River in Tanahu district. To ensure steady supply, the plant will be fed from a 7.26 square kilometer reservoir, making the hydropower plant Nepal’s first with water storage capacity and a sediment flushing system.

According to the ADB, the project company, Tanahu Hydropower Limited, will also invest in health and education programs as well as income and livelihood skills training for the local communities. Other development partners contributing to the project include the Japan International Cooperation Agency lending, the European Investment Bank, and the Abu Dhabi Fund for Development. [ADB Press Release]