Announcement of concessional loans and grant amounts by the Asian Development Bank, the European Union, and the Norwegian government, with a total of NPR 72.93 billion secured.
For the expansion and improvement of the electricity transmission and distribution system, the Asian Development Bank (ADB) will provide a concessional loan of USD 311 million (NPR 42.24 billion) and a grant of USD 30 million (NPR 4.07 billion). Additionally, the European Union will provide a grant of USD 22.6 million (NPR 3.06 billion), and the Norwegian government will contribute a grant of USD 31 million (NPR 4.21 billion).
Assistance of USD 10 million (NPR 1.35 billion) will be provided through the Strategic Climate Fund. The Government of Nepal will bear USD 132.4 million (NPR 17.98 billion) required for project implementation.
Under the ADB’s South Asia Subregional Economic Cooperation (SASEC) Electricity Transmission and Distribution Strengthening Project, the key initiatives will include constructing 290 kilometers of transmission lines, building five new substations, and upgrading two existing substations.
In the Kathmandu Valley, the single-phase meters in households will be replaced with smart meters (second phase), and computer-based Supervisory Control and Data Acquisition (SCADA) systems will be installed to modernize and automate distribution substations. Additionally, national transmission line construction and distribution system upgrades will be carried out in the Karnali Province. To mobilize the assistance, a concessional loan and grant agreement was signed last Friday between the government, ADB, and the Nepal Electricity Authority. These projects will be implemented by the Nepal Electricity Authority.
The Managing Director of the Nepal Electricity Authority, Kulman Ghising, stated that the resources mobilized from development partners will primarily be used to improve and expand the domestic electricity supply system, construct essential backbone infrastructure to make regional and sub-regional electricity trade reliable, and digitize the distribution system.
“To address consumer complaints about frequent power outages and ensure adequate, reliable, high-quality, and safe electricity supply, a significant amount of funding has been secured to implement the improvement and strengthening of infrastructure projects planned systematically over the past years. These plans will now be implemented immediately,” stated Managing Director Kulman Ghising.
Director of the ADB Nepal Resident Mission, Arnaud Cauchois, stated that the assistance would help address the limitations of grid infrastructure to meet the growing domestic electricity demand and achieve the goal of green energy exports. “The support will be spent on key components of the transmission and distribution master plan, facilitating the transmission of electricity generated by hydropower projects for domestic consumption and enhancing cross-border electricity trade capacity,” said Director Cauchois. “In Karnali and Lumbini Provinces, transmission and distribution infrastructure will be expanded, improved, upgraded, and rehabilitated, contributing to electrification, reducing energy poverty, and addressing socio-economic disparities between provinces.”
The assistance will be utilized to construct a 160-kilometer long 400 kV double-circuit transmission line from the new Butwal Substation in Sunwal Municipality-13, Nawalparasi (Bardghat Susta West) through Rupandehi, Kapilvastu, Arghakhanchi, to Lamahi in Dang. In Lamahi, a 400 kV automated substation will be built based on Gas Insulated System (GIS) technology. The total cost for the construction of the transmission line and substation will be USD 20.3 million.
The Managing Director of the Authority, Kulman Ghising, stated that currently, electricity flows westward from Butwal through a 132 kV line. To accommodate the electricity from hydropower projects being built in that area, address the growing electricity demand, and ensure reliable trade with neighboring countries, a 400 kV line and substation are being constructed.
To ensure adequate, reliable, and high-quality electricity supply for industries operating, preparing to operate, or set to open in the Bara–Parsa Industrial Corridor, the 400 kV transmission line from Hetaunda–Dhalkeber–Inaruwa will include the construction of a 400 kV substation in Nijgadh, Bara. The 400 kV substation in Nijgadh will be built with a concessional loan from the Indian EXIM Bank. The construction of a 400 kV line from Nijgadh to Parwanipur and a 400 kV substation in Parwanipur will be funded by a grant of USD 83.5 million from the ADB.
A 220 kV transmission line from Okharpouwa to Tinpiple and a 220 kV substation in Tinpiple will be constructed targeting the electricity supply for the Kathmandu Valley, aiming to meet the demand of 3,100 megawatts by the year 1993. The total cost for this project will be NPR 40 million.
The construction of the Dailkeh–Jumla 132 kV transmission line and the 132 kV transmission line in Jumla will cost USD 35 million. Additionally, USD 23 million will be spent to upgrade the electricity distribution system in the districts of Karnali Province.
Source: Kantipur
