The pilot approach between the two multilateral development banks (MDBs) provides opportunities for collaboration in knowledge and experience-sharing to ensure common understanding of the hydropower sector in Nepal, joint analytical studies, and consultation in support of the development of the hydropower sector, the banks announced. Under the MoU, the MDBs will also work together on strengthening the institutional capacity of Nepal’s executing and implementing agencies in the development of large hydropower projects, and the preparation and financing of projects in the energy sector.
“The full potential of Nepal’s enormous hydropower resources cannot be developed without a close partnership between the Nepalese Government, development partners and the private sector,” said Raiser. “With this MoU, the ADB and the World Bank are laying the foundations for closer collaboration in financing and policy advice in Nepal’s hydro sector, with the aim of supporting the country’s green, sustainable and inclusive development for decades to come.” “This agreement between the ADB and the World Bank is a significant step in strengthening Nepal’s energy security. It also fosters power trade with neighbouring countries, promoting regional cooperation, economic growth, and green and inclusive development”, said Yasmin. “ADB is committed to promoting clean energy solutions that align with climate goals. Our commitment goes beyond generating power; it is also about creating positive impacts on communities, livelihoods, and the environment and contributing to a more sustainable future for all.”
This is the first MoU signed between ADB and the World Bank following the joint statement on strengthening collaboration for greater impact issued by the heads of MDBs at the World Bank–IMFAnnual Meetings in Marrakesh in October 2023.
