88091 Nepal Kabeli-A Hydroelectric Project Chair Summary May 15, 2014 [IFC] The Board of Directors of IFC approved an IFC loan consisting of an “A” loan in the amount of up to US$19.3 million from its own account, and a Canada Climate Change Program (IFC-CCCP) senior loan in the amount of up to US$19.3 million with IFC acting as the implementing entity of the IFC-CCCP to the private company Kabeli Energy Limited of Nepal for the Project, on the terms and conditions set out in the Memorandum and Recommendation of the President. The minutes will record that Ms. Aviel wished to be recorded as abstaining. [IDA] Executive Directors approved, on a conditional basis, a credit in the amount of SDR 26.1 million (US$40.0 million equivalent) and a grant in the amount of SDR 4 million (US$6.0 million equivalent) to Nepal for the Nepal Kabeli-A Hydroelectric Project from the International Development Association (IDA), on the terms and conditions set out in the President’s Memorandum. The minutes will record that Ms. Aviel wished to be recorded as abstaining. The approval is conditional upon the IDA17 commitment authority becoming available, and will be deemed to have been given as of July 1, 2014. Signing of the financing agreement for the IDA credit and grant will take place after July 1, 2014. Directors recognized the importance of helping the Government to address the energy crisis and develop its significant untapped hydropower resources in a sustainable manner through public private partnership. Directors welcomed both the investment and technical assistance components of this operation, which is an integral part of the Transformation Hydropower Engagement Program of the World Bank Group. They noted that the program will support the Nepalese authorities to achieve universal access to reliable, affordable and sustainable electricity services and earn revenues from hydropower export to reduce poverty and sustain economic growth. They particularly highlighted the need to build the necessary capacity to implement this complex proposal and adhere to best industry standards and the full range of environmental and social safeguards. Directors urged the team to pay attention to the various implementation risks, including those related to procurement, public financial management, safeguards and political transition. More broadly, they encouraged both the Bank and IFC to nurture a strong governance framework. Finally, they encouraged the Government to undertake further power sector reforms to develop a stable and inclusive power sector in Nepal.                                                              *This summary is not an approved record.