ADB will also manage a USD 2 million technical assistance grant financed by the Japanese government to strengthen the capacity of Nepal’s energy sector.
July 30, 2017
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.
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.
