KATHMANDU: The Investment Board today approved funding for two hydropower projects with partial reservoirs. The decision was made at the board’s 68th meeting, chaired by Prime Minister Balendra Shah.

The two projects are Nar Khola which will produce 58.9 MW and cost Rs 10.75 billion and Sani Bheri 3 which will produce 46.72 MW and cost Rs 10.42 billion.

The board also set a deadline for the 900 MW Arun 3 project: it should start commercial production by February 2028. For the 900 MW Upper Karnali project, the board said it will help construction begin right away as the project development agreement allows.

The chief executive of the Investment Board Office will get extra powers so that approved projects move faster and investors get better service. The board also told the office to prepare the legal rules needed to handle proposals the board did not ask for through the Swiss Challenge method. Under this method, a proposal must compete with rival offers before it can go ahead.

The board said it will give priority to infrastructure proposals built on new technology, including artificial intelligence. It cited their use of Nepal’s renewable energy, the jobs they could create and their effect on the economy.

Finance Minister and board Vice Chair Dr. Swarnim Wagle was at the meeting. So were Energy, Water Resources and Irrigation Minister Birajbhakta Shrestha, Agriculture, Forests and Environment Minister Gita Chaudhary and Industry, Commerce and Supplies Minister Deepak Kumar Sah.

National Planning Commission Vice Chair Dr. Gunakar Bhatta, Chief Secretary Govinda Bahadur Karki, Nepal Rastra Bank Governor Dr. Bishwanath Paudel and Investment Board CEO Yangki Ukyab also took part with other board members and senior officials.