Project Bankability Readiness
For Developers: Does your SPV meet the governance standards that DFIs actually enforce? For DFI Analysts: Here is where Nepal's institutional gaps are — and how Silicon Himalayas' governance architecture compensates at the SPV level.
SPV Governance Scorecard
Assess your Special Purpose Vehicle against DFI governance standards. Red/amber/green readiness rating with specific gap analysis and remediation guidance.
SPV Governance Scorecard
Assess your Special Purpose Vehicle against DFI governance standards. Answer 6 questions to receive a red/amber/green readiness rating with specific gap analysis.
Standards: IFC Corporate Governance · ADB Project Finance · FATF AML/KYC · Equator Principles
1. Does your board have 33%+ independent directors?
IFC Corporate Governance (33%+ independent directors)
2. Is beneficial ownership disclosed to the natural person level?
FATF Recommendation 24 / IFC Standard
3. Are your financial statements audited under IFRS or equivalent international standards?
IFC / ADB project finance requirement
4. Does your project meet a 1.25x DSCR under stressed conditions (not just base-case)?
IFC / ADB minimum: 1.25x DSCR under stressed scenario
5. Is your ESIA aligned with IFC Performance Standards 1–8?
Adopted by Equator Principles (129 institutions, 85% of global project finance)
6. Is your land acquisition process documented with free, prior, and informed consent (FPIC)?
IFC PS 5 & 7 — Land Acquisition and Involuntary Resettlement / Indigenous Peoples
Your answers are not stored or transmitted. Assessment runs locally in your browser.
B-READY 2025 Scorecard — Nepal
Nepal's Business Ready score dropped 22% from 72.21 (2024) to 56.15 (2025), now below the global average of 60.03. The insolvency score of 0.00 is the most DFI-sensitive indicator.
B-READY Overall Score
from 72.21
Source: World Bank B-READY 2025 · Updated: 2025-12-01
Nepal scored ZERO — insolvency proceedings are effectively non-functional as a recovery mechanism. Most DFI-sensitive indicator.
B-READY Regulatory Framework
Source: World Bank B-READY 2025 · Updated: 2025-12-01
B-READY Public Services
Source: World Bank B-READY 2025 · Updated: 2025-12-01
Silicon Himalayas Interpretation
Insolvency (0.00): This is not a rounding issue. Nepal scored zero on one of the most DFI-sensitive indicators. Insolvency proceedings are effectively non-functional as a recovery mechanism. DFI deal structures must compensate through contractual protections, offshore security packages, and enhanced creditor rights agreements.
Overall (56.15 → below global avg 60.03): The 22% decline reflects institutional instability, not deteriorating regulation. Four SEBON chairs in two years, ministerial arrests, and an incomplete FATF NRA all contribute. The regulatory framework score (61.46) is actually improving — the gap is in operational delivery.
Our response: Silicon Himalayas' governance architecture addresses each institutional gap at the SPV level. We don't wait for macro reform — we build the institutional quality into the project structure.
DFI Standards vs. Nepal Practice
Where Nepal's legal and institutional framework falls short of IFC/ADB requirements — and how SPV-level governance architecture bridges each gap.
| DFI Standard | IFC/ADB Requirement | Nepal Law / Practice | Gap Severity | Silicon Himalayas Advisory |
|---|---|---|---|---|
| Board Independence | 33%+ independent directors | 1 independent director (boards ≤ 7) | Critical | SPV structuring to exceed legal minimum |
| DSCR (Stressed) | 1.25x minimum | No regulatory minimum | High | Stress testing hydrology + cost escalation |
| Beneficial Ownership | Disclosed to natural person | Companies Act registration | High (post-FATF) | Enhanced KYC documentation |
| ESIA | IFC Performance Standards 1–8 | IEE/EIA (DoFE guidelines) | Moderate | Gap analysis: local ESIA vs IFC PS alignment |
| Financial Reporting | IFRS-compliant audits | NFRS (based on IFRS for SMEs) | Moderate | Audit scope upgrade for DFI requirements |
| Insolvency Regime | Functional creditor recovery | B-READY score: 0.00 | Critical | Contractual protections + offshore structures |
Source: IFC, ADB, World Bank B-READY, Nepal Companies Act · Updated: 2026-05-26
Cost Escalation in Nepal Infrastructure
These verified case studies demonstrate why stressed-case financial modeling (not base-case) is the DFI standard for Nepal projects.
| Project | Original Cost | Final / Current Cost | Escalation | Timeline Impact | Key Factor |
|---|---|---|---|---|---|
| Upper Tamakoshi (456 MW) | NPR 35.29B | NPR 90.62B | 157% | 7 years delayed | Access road, geology, monsoon damage, COVID-19 |
| Bhotekoshi (45 MW) | NPR 4.5B | NPR 8.0B | 78% | 3 years delayed | 2015 earthquake damage, reconstruction costs |
| Budhigandaki (1,200 MW) | NPR 260B | NPR 400B+ (est.) | 54%+ | Ongoing redesign | Scope changes, geological complexity, political interference |
| Melamchi Water Supply | NPR 16B | NPR 42B+ | 163% | 17 years delayed | Contractor disputes, tunnel floods, earthquake damage |
Source: NEA, DoED, Project Company Disclosures · Updated: 2026-05-26
Developer Insight: The average cost escalation across these major projects exceeds 100%. IFC/ADB require DSCR stress testing at 1.25x minimum under adverse conditions. If your financial model shows break-even at 1.1x DSCR in base-case, it will not survive DFI scrutiny when hydrology, construction, and foreign exchange risks are applied simultaneously.
Key Governance & Financial Metrics
Reference metrics that every DFI will check during counterparty due diligence.
DSCR Minimum (IFC/ADB)
Source: IFC / ADB Project Finance Standards · Updated: 2026-05-26
IFC Board Independence Requirement
Source: IFC Corporate Governance Standards · Updated: 2026-05-26