Kathmandu, February 18
British International Investment (BII) and Sanima Bank have signed a $15 million trade loan agreement to support Nepal’s clean energy sector, particularly hydropower development.
According to a press statement released by Sanima Bank, the financing facility will enhance Sanima Bank’s trade finance operations, enabling the import of capital goods for renewable energy projects, along with equipment and raw materials for manufacturing, agriculture, and food production.
It added that Nepal’s electricity generation is heavily reliant on hydropower, contributing over 90% of the country’s total capacity. With the government aiming to develop 15GW of electricity by 2035, this facility will play a key role in supporting that goal. It will also help expand energy exports to neighboring India and Bangladesh.
British Ambassador to Nepal, Rob Fenn, emphasised the UK’s commitment to Nepal’s sustainable economic growth, stating that the initiative will benefit businesses and households across the region.
BII’s Regional Director for South Asia, Habib Yousuf, highlighted the partnership’s role in improving access to clean, affordable energy. Sanima Bank’s Deputy CEO, Pawan Kumar Acharya, called it a significant step in Nepal’s transition to low-carbon energy, aligning with global climate goals.
