Kathmandu. Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development Kulman Ghising has urged the Asian Development Bank (ADB) to finalize the financial management of the 670-megawatt Dudhkoshi storage hydropower project.

During a meeting with a team comprising Deputy Director General of ADB South Asia Department Sona Shrestha and ADB Nepal Resident Mission Chief Arnaud Kushwa on Monday, Minister Ghising said that the financial management of Dudhkoshi has been in discussion for a long time and it should be finalized immediately.

The project estimated cost is 2.20 billion US dollars (approximately Rs 225 billion) including interest during the construction period. Out of this amount, $1.68 billion will be borrowed and the rest will be managed through self-capital.

Under the leadership of ADB, various international financial institutions will invest one billion dollars concessional loan for the project. Of this amount, the ADB has committed to invest concessional loan of $550 million for the project. The preparatory works of the project are currently underway.

On the occasion, Minister Ghising urged the senior investors to invest in the areas of drinking water, road, irrigation, electricity transmission and distribution systems. Ghising also urged the government to provide assistance for feasibility study of flyovers and tunnels for traffic management at various crossroads in the Kathmandu Valley.

He pledged to address the problems related to the use of forest land, cutting down of forest land, land acquisition, compensation of public land and environmental and social security issues as well as enhancing the institutional capacity of the implementing agencies.

The ADB was requested to enhance the capacity to spend the projects being run under the assistance, to resolve the problems seen in land acquisition and compensation of public land, and to enhance the capacity of the project implementing bodies.