Government of Nepal and UNDP sign US$ 3.8 million mini hydro project

Jul 5, 2007

5 July 2007, Kathmandu - The Government of Nepal (GoN) and the United Nations Development Programme (UNDP) today signed a US$ 3.85 million Khimti Neighbourhood Development (KiND) Project to be implemented in Dolakha and Ramechhap districts. The project will be funded by the Government of Norway, Himal Power Limited (a private power producer company) and UNDP (US$ 200,000) for the period of 2007 to 2010. The Alternative Energy Promotion Centre (AEPC) will be the implementing partner.

The project aims to electrify 3100 households in Dolakha and Ramechhap districts through the construction of 400kW mini-hydro power plant. The proposed areas of rural electrification includes households of Namadi, Pharpu, Khimti, Fulasi and 2 wards of Gelu VDC of Ramechhap district. The two beneficiary VDCs of Dolakha district are Malu and Siureni (Jiri).

'This is UNDP Nepal's first partnership with the private sector on a cost sharing basis. We are happy to undertake this venture with the Himal Power and the Norwegian Government. We look forward to working more with the private sector for the benefit of the poor', said Mr. Ghulam M. Isaczai, Acting Resident Representative of UNDP.

In addition to rural electrification, the communities will be mobilized to construct and improve rural infrastructures and promote micro-enterprises. The communities will be able to develop technical skills related to mini-hydro power plant functioning and maintenance through trainings. Similarly, the project will help to develop institutional capacity of the Khimti Rural Electric Cooperative (KREC) and to manage the electricity project effectively.

UNDP's long standing experiences in rural electrification, enterprise development and social empowerment will be fully utilized in this project through its existing programmes such as the Rural Energy Development Programme (REDP) while the Himal Power Limited will provide support to the project based on its prior experience in the project area.

The project document was signed by Mr. Bhuban Karki, Under Secretary, Ministry of Finance on behalf of the GoN and Mr. Ghulam M. Isaczai Acting Resident Representative of UNDP. The document was also signed by Dr. Govind Pokharel, Executive Director of the Alternative Energy Promotion Centre (AEPC) on behalf of the implementing agency.

Contact Information

For further information please contact: Sangita Khadka, Development Communications Officer 5523200 ext: 1077(mobile: 98510 81114) or Tek Gurung, Programme Officer, 5523200 ext. 1013 (mobile: 98510 53759)