Upper Bhote Koshi Hydroelectric Power Project

completed

Summary Of Project Information (SPI)Project NameNepal-Upper Bhote Koshi Hydroelectric Power Project     RegionAsiaSectorPowerProject No007365Projected Board DateDecember 8, 1997Company NameBhote Koshi Power CompanyTechnical Partner and/or Major Shareholders Panda Energy International, Inc. Harza Engineering Company International L.P. Himal International Power CorporationProject Cost Including proposed IFC investment Up to US$3 Million exposure to undertake US$ interest rate swaps.Location of project and Description of site Kathmandu (Nepal)Description of Company and Purpose of Project The objective of this project is to allow Bhote Koshi Power Company (“the Company”) to hedge its interest rate risk. The Company has requested that IFC establish a Risk Management Facility in order for it to enter into interest rate swaps on its FMO, Dresdner and Bayerische Vereinsbank loans under the IFC “B” loan. The interest rate swaps will effectively convert these loans from variable rate US Dollar (US$)to fixed rate US$. These interest rate swap transactions will be priced on the basis of standard IFC pricing guidelines for client risk management transactions. IFC’s total exposure under these swap transactions is estimated at approximately US$3.0 million. This project will further support the developmental initiatives cited in IFC’s investment in the Project. Interest rate risk management would improve the stability of the Company’s future cashflows and enhance its economic viability.Environmental Category and Issues The proposed transaction is of financial nature only, and accordingly is classified as a Category C Project according to IFC’s environmental review guidelines and procedures. No further environmental review is required. Date SPI sent to PIC Revised: April 8, 1996December 4, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).