Nepal Hydropower Development Project Year 4 Annual Report

The project's primary focus is on facilitating the development and financial closure of large and medium hydropower projects (HPPs) in the country. In Year 4 (July 2018 to June 2019), the project continued to support the development of several key HPPs, including Arun 3, Upper Karnali, Upper Marsyangdi-2, Upper Trishuli-1, and Khimti-1. The project's advisory support to the Ministry of Energy, Water Resources and Irrigation (MoEWRI) and the Nepal Electricity Authority (NEA) focused on policy and legislative support, capacity building, and cross-border power trade. In Year 4, the project provided support to the Electricity Regulatory Commission (ERC) and assisted the Government of Nepal (GoN) in drafting the Electricity Act, Renewable Energy Legislation, and Energy Efficiency Legislation. The project also supported the GoN in cross-border power trade and capacity building initiatives. The project's de-risking framework aimed to reduce the risks associated with hydropower development in Nepal. The framework included the development of a project dashboard to track project progress and a plan to make the ERC operational. The project also implemented a disaster management plan and provided capacity building support to the NEA and other key stakeholders. In Year 4, the project achieved several key milestones, including the completion of the Arun 3 HPP feasibility study and the signing of a project development agreement (PDA) for the Upper Karnali HPP. The project also provided technical assistance to the MoEWRI on transactions and supported the development of a dashboard to monitor projects under the MoEWRI. The project's donor coordination and work with development partners continued in Year 4, with the project engaging with various stakeholders, including the Asian Development Bank (ADB), the Department for International Development (DFID), and the German Corporation for International Cooperation (GiZ). The project also participated in USAID Implementing Partner activities and managed subcontracts and project activities. Despite the progress made in Year 4, the project faced several challenges, including contractual LOE management issues. The project's cumulative achievements in Year 4 were significant, with several key milestones achieved and a strong foundation laid for future progress. The project's financial report for Year 4 showed a total expenditure of NPR [insert amount] and a remaining balance of NPR [insert amount]. The project's financial management and reporting systems were in place, and the project was compliant with USAID's financial management requirements. The project's capacity building initiatives continued in Year 4, with the delivery of modular training to the NEA and other key stakeholders. The project's cross-cutting issues, including support to make the ERC operational and increase its capacity, donor coordination, disaster management, and water resource management issues related to electricity development, were also addressed in Year 4. Overall, the Nepal Hydropower Development Project made significant progress in Year 4, with several key milestones achieved and a strong foundation laid for future progress. The project's continued support to the development of hydropower in Nepal is critical to the country's energy security and economic development.