KATHMANDU: The Asian Development Bank (ADB) has approved a $200 million concessional loan for the improvement of power supply and distribution systems in Nepal.
After having gone through years of chronic power shortage, Nepal has finally made significant progress in electricity supply in the last two years. And yet, as per the ADB, the country’s power transmission and distribution systems need to be upgraded so as to further strengthen network capacity, improve quality and reliability, and remove delays between generation hubs and load centers.
Kathmandu Valley, Bharatpur metropolitan in Chitwan district and Pokhara in Kaski district will benefit from the project.
These areas, where supply interruptions are frequent and prolonged, will receive financial support for the reinforcement and modernisation of power supply system.
ADB’s principal energy specialist Jiwan Acharya suggested that Nepal’s improved electricity supply will maintain its newfound momentum with the project. It will then lead to future demands from commercial and industrial activities being met as well as from communities, particularly women, who can now benefit from electricity-based enterprises and focus on productive economic and social activities, Acharya said.
“It is also very timely because the project will create employment opportunities for skilled and unskilled labor during the construction phase as the country adopts measures to mitigate the socioeconomic impact of the coronavirus disease (COVID-19) pandemic.”
The project is aligned with the South Asia Subregional Economic Cooperation program on intraregional power trade through cross-border power exchange. The upgrading of substations in Khimti, Barhabise, and Lapsiphedi to 400 kilovolts will facilitate cross-border power exchange with India, the statement read.
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Written by Sandeep Sen
This news first appeared on https://thehimalayantimes.com/business/asian-development-bank-approves-200-million-concessional-loan-to-nepal/ under the title “Asian Development Bank approves $200 million concessional loan to modernise power supply in Nepal”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.