Nepal’s Ministry of Finance (MoF) has recently signed an NPR18.25 billion loan agreement with the ADB for the modernisation of electric grid in the country. .
The funds will be allocated to state-owned Nepal Electricity Authority’s (NEA) Electric Grid Modernisation Project, which has been established to improve the transmission and distribution network of the country. The total cost of the project is about NPR22.81 billion, of which ADB will provide the aforementioned amount, and the balance by NEA. According to the agreement, the project will finance automation of 40 grid substations throughout the country, construction of three units of modern 132/11 kV grid substations with automation (each with 2×45 MVA capacity), together with 16 km of 132 kV double-circuit underground line along the Chobhar─Lagankhel─Sinamangal route and 5 km of 66 kV double-circuit underground line along Sinamangal─Chabahil in Kathmandu Valley.