The World Bank is helping address the energy shortage in Nepal by providing financing worth $84.6 million (£50.2m) for a hydroelectric project.
The Kabeli-A project, which will be built in the Panchthar district in the eastern hills of Nepal, will have a total capacity of 37.6MW.
It will be connected to the national grid via the Kabeli Corridor Transmission Line, a separate project supported by the World Bank and is currently under construction.
Nepal suffers up to 18 hours of electricity blackouts per day and has developed less than 1% of its hydropower potential.
Johannes Zutt, World Bank Country Director for Nepal believes reliable electricity is central to any modern economic infrastructure.
He added: “This project will demonstrate how public-private partnerships can help Nepal exploit its hydropower potential and eliminate electricity deficits while also developing hydroelectricity exports as an engine of the nation’s economic growth.”