Asian Development Bank agreed to provide US $ 191.2 million to Nepal

Development Effectiveness 
ADB has agreed to provide assistance of US $ 191.2 million to the Government of Nepal

         The Asian Development Bank has agreed to provide an assistance of US $ 191.2 million 

         (equivalent to NRs 18.16 billion) to the Government of Nepal for the implementation of South

         Asia Subregional Economic Cooperation Power System Expansion Project. Of the total

         assistance LJS $ 180 million is loan and US $ 11.20 million is grant (strategic Climate fund).

         The Loan Agreement and Grant Agreement regarding the implementation of the project were

         signed between the Government of Nepal and the Asian Development Bank in the Ministry of

         Finance, today.

     
        The main objective of the project is to increase the power transmission capacity and improve

        power distribution network in the country. The project also aims at increasing mini grid based

        renewable energy systems in off-grid areas and to improve the management capacity of Nepal

        Electricity Authority and Alternative Energy Promotion Centre. Under the power transmission

        capacity development component an approximately 45 kilometers of 400 kv and 192

        kilometers of 220 kv transmission lines along Kali Gandaki Corridor and Marsyangdi

        -Kathmandu route will be constructed. Likewise, grid substations will be constructed,

        augmented and replaced in various parts of the country.

     
        The SASEC Power System Expansion project is expected to be completed by 31 December

        2021. The total cost of the Project is US $ 440 million. Of the total cost the Norwegian Grant

        assistance is US $ 60 million and European Investment Bank loan is 120 US $ million.

        Government and beneficiary community has to contribute US $ 68.8 million for the project.

        The renewable energy portion of the SASEC Power System Expansion project will be

        implemented by Alternative Energy Promotion Centre (AEPC) and the components of power

        transmission and distribution network improvement activities are to be carried by Nepal

        Electricity Authority (NEA).

     
        The Loan and Grant Agreements were signed by Mr. Yuba Raj Bhusal, Secretary, Ministry of

        Finance and Mr. Kenichi YOKOYAMA, Country Director, the Asian Development Bank on

        behalf of the Government of Nepal and the Asian Development Bank, respectively.

        The Government of Nepal has expressed its sincere appreciation to the Asian Development

        Bank for this assistance and also for its continued support in the socio-economic development

        of Nepal.

          

                                                                                       
                                                                                                                                                                  By Satish Rauniyar.