Deadline for financial closure of Arun III, Upper Karnali extended

NPC instructed to conduct detailed study for metro in Kathmandu


The government on Monday has extended deadline for financial closure of Arun III and Upper Karnali hydropower projects by six months.

A meeting of the Investment Board (IBN) chaired by Prime Minister extended the deadline for financial closure of the two 900MW projects by six months conisdering the practical aspects, according to Chief Executive Officer (CEO) of IBN Maha Prasad Adhkari.

Indian companies Satluj Jal Vidyut Nigam Limited and GMR have been contracted to develop Arun III and Upper Karnali projects respectively.

The IBN has also instructed the infrastructure department of the National Planning Commission (NPC) to carry out detailed study for metro inside Kathmandu Valley, according to CEO Adhikari.

The NPC will also try to find if viability gap funding (VGF) will be needed for development of the metro  project.

Viability gap funding is the policy of providing government grant for projects that are not financially viable but are necessary and economically justifiable.

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