Nepal starts construction on EU-funded power project

Nepal on Wednesday began construction of the 600 MW Chilime-Trishuli power transmission project that has been funded by the European Union.

Energy Minister Barshaman Pun formally inaugurated the ground-breaking ceremony of the project.

"Once complete the new Chilime-Trishuli Transmission link will allow thousands of people living in communities in the Trishuli River Basin and beyond to benefit from clean hydropower energy and a more reliable power supply," Pun said.

"This crucial energy project is key for sustainable development in Nepal and demonstrates the close partnership between Nepal and European partners," he added.

The impact of expanding access to electricity to rural communities and benefits from harnessing renewable energy were highlighted during the occasion.

The new 27-km transmission line will be built through rough, mountainous terrain 50 kms west of Kathmandu by state-run Nepal Electricity Authority.

The project is being financed by the European Investment Bank, the European Union through the Asian Investment Facility, German KfW bank and the government of Nepal.

The EU and the German government provided comprehensive technical assistance totalling 16.25 million euros, essential for preparation and implementation of the project, and the European Investment Bank is providing a long-term 30-million-euro loan for the project.

The Nepal Electricity Authority will provide the remaining 19 million euros needed for the project. The new transmission link will enable 600 MW of clean energy generated from hydropower plants, including independent power producers, on the Trishuli River corridor to be connected to Nepal's national electricity grid and will upgrade existing electricity distribution to enable more reliable supply of energy.

"The Chilime-Trishuli transmission line highlights how technical and financial cooperation between the Nepal Electricity Authority and European partners benefits our country and helps to harness low-carbon power sources," said Kul Man Ghishing, managing director, Nepal Electricity Authority.