The Asian Development Bank (ADB) has approved a loan of USD311 million to upgrade electricity transmission and distribution (T&D) infrastructure in Nepal.
The South Asia Subregional Economic Cooperation Electricity T&D Strengthening Project aims to modernise energy infrastructure and solar photovoltaic (PV) generation facilities in Nepal. The project, which will be implemented by Nepal Electricity Authority (NEA), will involve construction of 290 km of transmission lines (Dailekh–Jumla, New Butwal–Lamahi, Nijgadh–Ramauli, and Teenpiple–Okharpauwa), as well as expansion, reinforcement and rehabilitation of electricity distribution infrastructure in Karnali and Lumbini provinces. Distributed grid-connected solar PV generation facilities aggregating 8 MW will be established in Karnali and other areas. The funding is also expected to help NEA upgrade its training centre, expand the smart meter rollout programme, establish a data recovery centre, and implement a supervisory control and data acquisition network. ADB will also provide an additional USD30 million in grants from its Asian Development Fund to support training and capacity building.