ADB approves a loan of $ 60 million to upgrade electricity distribution system in Nepal

Published On: September 21, 2021 07:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, September 21: The Asian Development Bank (ADB) on Monday approved a loan worth US $ 60 million to Nepal as an additional support for the country’s ongoing Electricity Grid Modernization Project that is upgrading power transmission and distribution systems across the country.

The project that was approved in November 2020 is automating 34 existing grid substations across Nepal, completing the installation of smart meters in the Kathmandu Valley, upgrading 144 km and constructing 113 km of transmission lines, and establishing an electricity distribution system command and control center.

“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 modernize the transmission capacity and distribution networks so the country can reach its electricity consumption target of 700 kilowatt hours per capita by 2026,” reads ADB’s press statement quoting Acharya.  

To expand the original project’s scope, the increased funding will help construct a 16 km stretch of 132-kilovolt transmission lines from Nepalgunj to Kohalpur and from Chovar to Lagankhel. It will introduce an additional 477 megavolt-amperes of substation capacity through the construction of substations in Dumkibas, Lagankhel, Mulpani, and Nepalgunj.

Under the plan, an enterprise resource planning and revenue management system will also be implemented to improve supply and system security and strengthen institutional capacity.


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