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Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Himal Power Limited
Project ID
1297
Fiscal year
1996
Status
Not Active
Guarantee holder
ABB Kraft A.S.
Statkraft SF
Kvaerner Energy A.S.
Investor country
Norway
Host country
Nepal
Environmental category
A
Sector
Power
Gross exposure
 $32.8 million
Project type
Non-SIP

MIGA's first contract of guarantee in Nepal was issued to three Norwegian investors for a hydroelectric power plant, Himal Power Limited (HPL). MIGA coverage totaling $32.8 million insures their equity investments in the 60-megawatt power plant against currency transfer, expropriation, and war risks.

The project represents the first foreign-owned and -operated power project of its kind in Nepal. It also involves MIGA's first collaboration with the Norwegian political risk and export credit insurer, Garanti-Instituttet for Eksportkreditt (GIEK), which reinsured a portion of MIGA's exposure to Statkraft SF. A number of multi-lateral and bilateral agencies are involved in financing the project, including the Asian Development Bank, Eksportfinans (Norway's official export credit lending agency), the Norwegian Agency for Development Corporation (NORAD), IFC, and the Nepal Industrial Development Corporation.

HPL is a run-of-the-river project located a tributary of the Kosi River, one of Nepal's three major river systems, 100 kilometers east of Kathmandu. The project, which is expected to meet up to 25 percent of Nepal's annual electricity needs, will employ about 3,000 nationals during the initial five-year construction period.

The project will comply with all applicable environmental guidelines of the World Bank as well as GIEK and NORAD standards. An extensive environmental impact assessment, including analysis of all biophysical and sociocultural issues associated with the construction and operation of the power plant, was completed in conjunction with local organizations.

 
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