The World Bank recently announced a significant collaboration with the Asian Development Bank (ADB), marked by the signing of a memorandum of understanding (MOU) for an initial five-year period. The partnership is aimed at bolstering Nepal's hydropower sector, with particular focus on the proposed Upper Arun and Dudh Koshi hydropower projects.
According to a press release by the World Bank, both institutions aim to share knowledge and experiences, foster a shared understanding of Nepal's hydropower sector, conduct joint analytical studies, and engage in consultations to support the sector's development. The MOU outlines a commitment to advancing country-level cooperation, reinforcing co-financing efforts, and intensifying joint initiatives addressing climate change.
Martin Raiser, World Bank Vice President for South Asia, said: "The full potential of Nepal’s enormous hydropower resources cannot be realized without close partnership between the Nepalese government, development partners and the private sector." He added that "With this MOU, ADB and the World Bank are laying the foundations for closer collaboration in financing and policy advice in Nepal’s hydropower sector, with the aim to support the country’s green, sustainable and inclusive development for decades to come."
Fatima Yasmin, ADB Vice-President for Sectors and Themes also expressed her views on this agreement. She said: "This agreement between ADB and the World Bank is a significant step in strengthening Nepal's energy security amid rising demands from population growth and urbanization. It also fosters power trade with neighboring countries, promoting regional cooperation, economic growth, and green and inclusive development." Yasmin further added that "ADB is committed to promoting clean energy solutions that align with climate action goals. Our commitment goes beyond generating power; it's also about creating positive impacts on communities, livelihoods, and the environment and contributing to a more sustainable future for all."
According to information provided on its About webpage by ADB, the bank is committed to realizing a thriving, inclusive, robust, and enduring Asia and the Pacific, while continuing its efforts to eliminate severe poverty.