ADB provides Rs 7.08 billion in loan

Published On: November 27, 2021 12:55 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 27: The Asian Development Bank (ADB) has provided a loan assistance of about Rs 7.08 billion for the improvement and modernization of Nepal's electricity system. A bilateral agreement for the loan assistance was signed at the Ministry of Finance on Friday by Finance Secretary Madhukumar Marasini and ADB Country Director Arnaud Cauchois.

This loan assistance is another important factor in the context of ADB's continued support for the development and expansion of Nepal's power system. A 132 KV transmission line from Nepalgunj to Kohalpur will be constructed with this loan assistance. Similarly, a transmission line from Chobhar to Lagankhel, which is considered important in the power system of the Kathmandu Valley, will also be constructed.

Similarly, substations with the latest technology will be constructed in Dumkibas, Lagankhel, Nepalgunj and Mulpani with this loan assistance. Nepal Electricity Authority (NEA) has stated that necessary preparations have been made in this regard. Finance Secretary Marasini expressed confidence that the expansion of the transmission line would also help increase the demand and production of electricity. He mentioned that increasing the domestic power generation would help in reducing the trade deficit as well.

Speaking on the occasion, ADB Country Director Cauchois said that the loan assistance would enhance the quality of transmission of electricity generated in Nepal. He said that the aim is to improve Nepal's power distribution system, expand transmission lines and increase power generation. The ADB has also provided loan assistance for the construction of an underground transmission line in the Kathmandu Valley.

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