Kathmandu, May 20: The Ministry of Energy, Hydro Power and Irrigation has put forth a proposal before the World Bank to lead the investment for the 1,060-MW half-reservoir Upper Arun Hydropower Project to be constructed in Sankhuwasabha district.

In a virtual meeting on Wednesday, Energy Minister Barsha Man Pun put forward the proposal to World Bank Country Director for Nepal, Sri Lanka and the Maldives, Faris Hadad-Zervos.

Informing that the construction of Upper Arun Project has been emphatically inserted in the government policy and programs for the fiscal year 2020/21, Minster Pun urged the World Bank to take leadership for investment management.

"The task of Detailed Project Report of the Upper Arun Project being carried out with the assistance of the World Bank is in the final stage", the Minister said, expressing confidence that the Bank would take the lead to that end. "It would be easier for us to explore auxiliary investment if the World Bank took up the proposed lead role in regard to the Upper Arun project".

In response, the WB country director Zervos pledged to take the proposal of the minister to its higher leadership level. It may be noted that the government of Nepal earlier had made principle decision to take ahead the construction of Upper Arun Hydro Project through the Nepal Electricity Authority on company model.

NEA's auxiliary company Arun Hydro Electric Company has been designated the responsibility for the project construction. The project will have 78 percent investment of the NEA, 10 percent of the project-affected residents, 15 percent of the general public, five percent of the project employees and two percent of the people with disabilities. The estimated cost of the project is Rs 160 million.