GMR Energy Ltd, a subsidiary of India’s private sector infrastructure major GMR Infrastructure Ltd, has entered into a joint development agreement with the International Finance Corporation (IFC) to jointly develop the Upper Marsyangdi-2 hydropower project with a capacity of 600 MW in Nepal.
GMR Energy is backed by private equity investors like Temasek Holdings, IDFC Alternatives, Ascent Capital and Argonaut Ventures.
"Apart from investing in the company, IFC will bring its vast experience in financing similar large and complex infrastructure projects, which will add value to the project," GBS Raju, chairman - energy business of GMR group, said in the statement.
The 600 MW Upper Marsyangdi-2 Project, which is located on the Marsyangdi River in the Manang and Lamjung districts of Nepal, is in an advanced stage of development. The project is expected to entail a total investment of $1 billion and is scheduled to be commissioned by the end of fiscal 2020-21.
The project is being undertaken by Himtal Hydro Power Co Pvt Ltd, a subsidiary of GMR Energy.
The government of Nepal has identified the project as one of the National Priority Projects and the Investment Board of Nepal (IBN) is facilitating it.
IFC – the private sector lending arm of the World Bank – has a portfolio of over 100 infrastructure projects built on a PPP basis in 50 countries.
(Edited by Joby Puthuparampil Johnson)