InvestBank Corp. has acquired a 70% equity stake in the 440-MW Tila-1 and 420-MW Tila-2 hydropower projects in Nepal.
Both projects are being built on the Tila River at a cost of $649 million for Tila-1 and $555 million for Tila-2. InvestBank is working in cooperation with S.C. Power Company Pvt. Ltd. to develop the projects.
Each project is expected to require five years to build, and Tila-1 will be developed first, followed by Tila-2.
Electricity generated by both projects will be sold to the Nepal Electricity Authority and KSK Energy Ventures Ltd. of India.
InvestBank says, “The social and developmental impact of the Tila-1 and Tila-2 hydroelectric projects is significant. Nepal’s economic and social development is being hampered by its inadequate energy supply. Although Nepal’s most significant energy resource is water, only 1.7% of the potential 42,133 megawatts of economically feasible hydropower resources in the country is being utilized.”
In a press release, InvestBank said that as of 2014, about 24% of Nepal’s population did not have access to electricity. In addition, 82% of the population uses solid fuels as cooking energy, with 75% of this solid fuel use for cooking coming from firewood. Firewood accounts for 70% of Nepal’s total energy consumption.
InvestBank’s registered corporate office is in Wilmington, Del., U.S. The global investment bank engages select clients and represents institutional sources of capital.
S.C. Power Company is affiliated with Bastola Organization. Bastola is based in Nepal and focuses on property development.
For more new development news, click here.