The European Union (EU) has shown its interest in investing in Nepal's hydropower sector through the European Investment Bank (EIB), the lending arm of the EU. According to Nepal Electricity Authority (NEA), the EU has expressed its desire to invest in the 635 ME Dudh Koshi Reservoir Project through the consortium financing of international financial institutions. A high-level team of EU made an on-site inspection of the under-construction 220 KV Chilime-Trishuli Transmission Line Project last Monday. A delegation led by EU's Asia Director, Peteris Ustubs visited the project site under construction in Nuwakot and Rasuwa on Monday. "After observing the progress of the project, the EU has shown its desire to invest in other projects as well," said Kulman Ghising, Executive Director of NEA.

According to Ghising, the EU is interested in investing in the production, transmission, and distribution of hydropower in Nepal through the EIB and has shown eagerness in investing in the proposed 635 MW Dudhkoshi Reservoir project, he said.

"EU officials are positive for investing in other projects after seeing progress in the construction of the Chilime-Trishuli transmission line," said Ghising. The Dudhkoshi Project is one of the important projects being initiated by the NEA. The government through the federal budget of FY 2022/23 has allocated Rs 940 million for its construction. The total cost of the project has been estimated at USD 1.523 billion and it will take six years to build the dam and other structures. The main dam will have a height of 220 meters and hold back 1,581 cubic megameters of water. The snowmelt-fed Dudh Koshi River originates in the foothills of Mt Everest, allowing the plant to perform efficiently even in the dry season. The project will produce 3,443 GWh annually In 1998, the Canadian International Water and Energy Consultants carried out the first feasibility study and suggested generating 300 MW from the plant. In 2013, a review of the feasibility study carried out by the electricity authority upgraded the capacity to 635 MW. EIB has been providing assistance in Nepal's hydropower sector. It has provided a concessional loan for the construction of the Chilime-Trishuli Transmission Line Project which has a total cost of USD 39 million. The EU delegation inspected Trishuli 3B hub substation and transmission line under construction at Dandagaon located in Uttargaya Rural Municipality-2 of Rasuwa district. In addition to the Chilime-Trishuli transmission line, EIB has provided concessional loans for the 140 MW Tanahun Hydropower Project, the 220 kV Masryangdi Corridor Transmission Line, and the electrification of the districts of Far West and Lumbini provinces. The Chilime-Trishuli 220 KV transmission line is being constructed to evacuate power from the hydropower projects under construction and to be built on the Trishuli river and its tributaries. The overall physical progress of the project has reached 81 percent with the progress of the transmission line and substation being 71 percent and 70 percent, respectively. The construction of transmission lines and substations is being carried out in a fast manner with the aim of completing the project within March 2023.