ADB approves USD 150mn loan to support power supply in Nepal

The Asian Development Bank (ADB) has approved a USD 150 million loan to Nepal to improve the reliability and efficiency of electricity supply to end the energy crisis within the next two years in the country.
ADB will also manage a USD 2 million technical assistance grant from the Japan Fund for Poverty Reduction (JFPR) financed by the Japanese government to strengthen the capacity of Nepal's energy sector to deliver Gender Equality and Social Inclusion (GESI) results.
"Reliable and sustainable electricity distribution and service is an important aspect to Nepal's growth and development, as well as in the improvement of the quality of life of all its people," said Jiwan Acharya, a senior energy specialist of ADB.

"We are confident that the project will help improve electricity distribution and efficiency in the country, and significantly support the government's goal of ending the country's energy crisis within the next two years and achieving Sustainable Development Goal 7 (Sustainable Energy for All)," he said.
The electricity supplies are expected to increase rapidly during the next several years through various hydro power projects nearing completion and imports from India through cross-border line.
Therefore, existing transmission and distribution systems need to be immediately rehabilitated and upgraded for the network to be able to deliver the additional electricity supplies to consumers, the ADB said.

The project will enhance the distribution capacity and improve reliability and quality of electricity supply in the Kathmandu Valley by reducing distribution system overloads and technical and commercial losses, it said.