The Asian Development Bank (ADB) said last Tuesday, November 5, that it has approved a $311 million loan to improve and modernise electricity transmission and distribution infrastructure in Nepal.
“Upgrading and modernising Nepal’s electricity transmission and distribution facilities and infrastructure is essential to its sustainable growth and development,” ADB Principal Energy Specialist Jiwan Acharya, in a statement issued by the multilateral funding agency. “Not only will this project ensure the reliable and sustainable delivery of electricity in the country, but it will also provide employment and business opportunities to make lives of Nepalese better and more comfortable.”
The project will finance a total of 290 km of power transmission lines from Dailekh to Jumla, New Butwal to Lamahi, Nijgadh to Ramauli, and Teenpiple and Okharpauwa, according to ADB. “It will also expand, reinforce, and rehabilitate electricity distribution infrastructure in Karnali and Lumbini provinces,” reads the statement. “Distributed grid-connected solar photovoltaic generation facilities with a total capacity of 8 megawatts will be established in Karnali and other areas.”
ADB said it will help the Nepal Electricity Authority (NEA) upgrade its training centre, expand the smart metre rollout program, establish a data recovery centre, and implement a Supervisory Control and Data Acquisition network.
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The project will conduct awareness-raising campaigns on safe and efficient energy use.
The statement also mentions that the multilateral funding agency will provide an additional $30 million in grant from its Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries, to support training and capacity building.
“Advanced communication tools and technology, funded by the grant, will equip NEA with skills in hydropower management and electricity dispatch significantly enhancing Nepal’s capability to trade power with neighbouring countries,” the statement reads.
The project will also support training of women and disadvantaged groups on business and technical skills, open energy-related employment opportunities, and expand energy-based businesses.