The Government of Nepal and donor agencies have pledged to expedite the construction of the 1,161-megawatt Upper Arun Hydropower Project based at Bhotekhola Rural Municipality of Sankhuwasabha district.

A team comprising Minister for Energy, Water Resources and Irrigation, Shakti Bahadur Basnet, Finance Minister Dr Prakash Sharan Mahat, lawmaker Deepak Khadka, Secretary of the Energy Ministry Dinesh Kumar Ghimire, Managing Director of the Nepal Electricity Authority Kulman Ghising, Managing-Director of the World Bank Anna Bjerde, Director General of the Asian Development Bank Ramesh Subramaniam carried out an onsite inspection of the project site on Friday.

During the inspection at Chhograng of Bhotekhola Rural Municipality-4, Finance Minister Mahat shared that the Upper Arun Project is about to reach the implementation phase.

Stating that although there is limitation of resources, an adequate budget has been allocated in order to take the project to the implementation phase, said Mahat, expressing commitment not to allow resource crunch to halt the project.

Dr Mahat, who is also a former Energy Minister, said that the locals will be provided shares of the hydroelectricity project by mobilizing funds for investing in it.

"The World Bank has shown its special interest to invest in this project. It is trying to mobilize the investment with the participation of various international financial institutions," Finance Minister Mahat added.

He said emphasis has been laid in the World Bank's annual meeting and bilateral consultations on mobilizing grants along with concessional loans to make the project attractive for investment, and the government will provide its all-out support to take ahead the construction of the project as soon as possible.

Minister for Energy, Water Resources and Irrigation Basnet also reiterated the government's commitment to immediately take forward the Upper Arun-like projects for the maximum utilization of water resources for the nation's prosperity.

Lawmaker Deepak Khadka said the locals welcomed the project and were willing to move it ahead.

The WB Managing Director said discussions on this project have been going on ever since she came to Nepal and the electricity produced from this project would be instrumental for domestic consumption as well as for export.

She said the WB is ready to invest in the Upper Arun project for the benefit of all sides and stakeholders.

The estimated cost of the project is USD 1.75 billion (approx Rs 214 billion). Of this cost, 70 percent would be mobilized through loans and 30 percent from equity.