The Asian Development Bank (ADB) has approved a $60 million loan as additional support for the ongoing Electricity Grid Modernisation Project that is upgrading power transmission and distribution systems in Nepal.
The ongoing project, approved in November 2020, is automating 34 existing grid substations across the country, completing the installation of smart metres in the Kathmandu Valley, upgrading 144 kilometres (km) and constructing 113 km of transmission lines, and establishing an electricity distribution system command and control centre.
“The additional financing will scale up ADB’s support to provide reliable, efficient, and sustainable electricity supply in Nepal,” said ADB Principal Energy Specialist for South Asia Jiwan Acharya. “This will provide additional investments to expand, strengthen, and modernise the transmission capacity and distribution networks so the country can reach its electricity consumption target of 700-kilowatt hours per capita by 2026.”
To expand the original project’s scope, the increased funding will help construct 16 kilometres of 132-kilovolt transmission lines from Nepalgunj to Kohalpur and from Chovar to Lagankhel. It will introduce an additional 477 mega volt-amperes of substation capacity through the construction of substations in Dumkibas, Lagankhel, Mulpani, and Nepalgunj.
An enterprise resource planning and revenue management system will also be implemented to improve supply and system security and strengthen institutional capacity, according to ADB.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members — 49 from the region.