The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a loan of up to USD90 million for the Upper Trishuli-1 Hydropower Project, AIIB’s first project in Nepal. The project will increase the country's power generation by almost 20 percent, helping to reduce acute power shortages in the country.
This project is one of several steps AIIB is taking to support the development of Nepal’s electricity sector. The Bank has also provided Nepal with USD900,000 for the proposed Tamakoshi V Hydroelectric Project and USD1 million for the proposed Power Distribution System Upgrade and Expansion Project from its Project Preparation Special Fund which provides grants to support the preparation of projects in eligible AIIB members. These grants are part of AIIB’s overall efforts in Nepal to increase energy generation capacity, reduce the demand-supply gap, upgrade transmission infrastructure and reduce electricity system losses.
“We recognize that power supply shortages in Nepal have caused significant delays in the restoration of infrastructure and services impacted by the 2015 earthquake,” said AIIB Vice President and Chief Investment Officer D.J. Pandian. “By investing in hydropower and encouraging further private sector investment in the country, we will help drive economic growth and poverty alleviation efforts.”
Cofinanced with the International Finance Corporation, Asian Development Bank and other development institutions, the project involves a USD650-million investment, financed entirely by foreign capital. It aims to serve as an example of how to facilitate investments in the sector.
“AIIB’s investment will provide much-needed, long-term financing for a vital infrastructure project,” said AIIB Director General Dong-ik Lee. “We are confident that our investment will demonstrate the viability of Nepal’s sustainable energy sector to other potential private-sector investors.”
The Upper Trishuli-1 Hydropower Project is a 216-megawatt greenfield run-of-river hydropower plant to be developed on the Trishuli river under a build-own-operate-transfer model. The project will sell power to the Nepal Electricity Authority under a Power Purchase Agreement.
Additional information about the Upper Trishuli-1 Hydropower project can be found here.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 97 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.
Beijing, July 21, 2026
Registration Opens for AIIB’s 11th Annual Meeting in Doha, Qatar
Registration is now open for AIIB’s 11th Annual Meeting in Doha, Qatar, on September 28–29, 2026. Under the theme “Tomorrow’s Infrastructure: Impact and Innovation,” the event will bring together global leaders and stakeholders to discuss the future of sustainable infrastructure and development.
READ MOREBeijing, July 21, 2026
AIIB Approves up to USD1.5 Billion Financing for Istanbul North Rail Crossing Project in Türkiye
AIIB has approved up to USD1.5 billion in financing for the Istanbul North Rail Crossing Project (INRAIL) in Türkiye, a transformative rail investment that will strengthen cross-Bosphorus connectivity, improve freight and passenger transport efficiency, and support greener, more resilient regional transport networks.
READ MOREBeijing, July 17, 2026
Carmen Nonay Appointed as Managing Director of the Complaints-resolution, Evaluation and Integrity Unit
The Asian Infrastructure Investment Bank (AIIB) has appointed Carmen Nonay as Managing Director of the Complaints-resolution, Evaluation and Integrity Unit (CEIU), effective July 15, 2026. Nonay will report directly to AIIB’s Board of Directors as part of the Bank’s Oversight Mechanism. She will lead implementation of the Project-affected People’s Mechanism and compliance with the Environmental and Social Policy; oversee the learning and evaluation function; and ensure that anti-fraud and corruption work is carried out in accordance with the Policy on Prohibited Practices.
READ MOREBeijing, July 13, 2026
Multilateral development banks increase climate finance to record USD163 billion in 2025, supporting climate-resilient and sustainable growth
Multilateral development banks (MDBs) including the Asian Infrastructure Investment Bank (AIIB) increased climate finance to record levels in 2025, reinforcing their role in supporting climate-resilient and sustainable economies. Climate finance by MDBs in low- and middle-income countries jumped 21% from the previous year to an all-time high of USD103 billion while MDB climate finance across all countries of operation rose 19% to a record USD163 billion.
READ MORE