KATHMANDU, Nov 27: The Asian Development Bank (ADB) has approved a $156 million concessional loan to modernize power transmission and distribution systems in Nepal.
Issuing a statement on Friday, the ADB said that the Electricity Grid Modernization Project will finance the automation of grid substations throughout the country, modernize distribution and transmission systems in various areas, complete the installation of smart meters in the Kathmandu Valley, and support sector reform and institutional strengthening of the Nepal Electricity Authority (NEA).
The project will, among other things, automate 34 existing grid substations, install 220-kilovolt (kV) and 132-kV automated grid substations, construct a total of 113 kilometers (km) of new transmission lines, upgrade 144 km of existing transmission lines with efficient conductors, and expand the installation of smart meters for 350,000 electricity consumers in the Kathmandu Valley. An electricity distribution system command and control center in Kathmandu will also be constructed, according to the statement.
“ADB has been actively involved in major policy and institutional reforms in the power sector, and this project is a continuation of our support to provide reliable and efficient electricity supply in the country,” the statement quoted ADB Principal Energy Specialist Jiwan Acharya as saying. “Moreover, this project will position Nepal to be better prepared in its post-pandemic economic rebuilding.”