SOLU HYDROPOWER PRIVATE LIMITED
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Essel Clean Solu Hydropwer Private Limited, a company established for the development, construction and operations of the Lower Solu Hydropower Project in Nepal.
What is our funding objective?
The Lower Solu project comprises a run-of-river hydroelectric power plant in the Solukhumbu district in Nepal. With a capacity of 82MW, the project is the largest private sector hydropower project in Nepal. The favourable geographical conditions of the project location allows it to achieve its 500 meter water head drop without a large dam or reservoir and with a tunnel of only 4.3km, resulting in a small footprint and relatively low construction costs for the power generated. Power evacuation is guaranteed by Government of Nepal. The project is forecast to create over 1000 jobs during construction and operations and contribute to significant development of the project area.
Why do we fund this investment?
When operational the project will provide electricity to an estimated 3 million people, helping to alleviate the current power shortages in the country. Nepal has one of the largest untapped hydropower potential in the world (estimated at >80,000 MW), but in spite of this still has one of the world's lowest electricity consumption rates. Severe power shortage - with power cuts of up to 18 hours a day in the dry season - is a serious bottleneck to sustainable economic growth in the country. Improving access to electrcity in a timely and cost-efficient manner is considered one of the most significant development challenges facing Nepal today. As the first internationally financed IPP in the country, Lower Solu is paving the way for others to follow.
More investments
| Date | Total FMO financing |
|---|---|
| 9/7/2020 | EUR 0.11 MLN |
| 12/30/2014 | USD 5.40 MLN |
| 12/30/2014 | USD 12.50 MLN |
- Region
- Asia
- Country
- Nepal
- Sector
- Energy
- Effective date
- 12/30/2014
- Total FMO financing
- USD 24.60 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A