World Bank approves $84.6m for hydroelectricity in Nepal

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    wbankThe World Bank is helping address the energy shortage in Nepal by providing financing worth $84.6 million (£50.2m) for a hydroelectric project.

    The Kabeli-A project, which will be built in the Panchthar district in the eastern hills of Nepal, will have a total capacity of 37.6MW.

    It will be connected to the national grid via the Kabeli Corridor Transmission Line, a separate project supported by the World Bank and is currently under construction.

    Nepal suffers up to 18 hours of electricity blackouts per day and has developed less than 1% of its hydropower potential.

    Johannes Zutt, World Bank Country Director for Nepal believes reliable electricity is central to any modern economic infrastructure.

    He added: “This project will demonstrate how public-private partnerships can help Nepal exploit its hydropower potential and eliminate electricity deficits while also developing hydroelectricity exports as an engine of the nation’s economic growth.”

    Source : Energy Live News

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    Nepal likely to get increased support from WB

    KATHMANDU: Nepal is set to witness growth in support extended by the World Bank (WB) by 30 per cent based on improvement in rating carried out by the bank.

    Country Director of the WB, Johannes Jutt during a meeting with Finance Minister Ram Sharan Mahat on Thursday said that Nepal received higher rating, which could increase the assistance extended by the WB by 30 per cent. Currently, the government is receiving assistance worth Rs 23 billion annually.

    WB has been conducting annual rating of countries that are utilising its loan at subsidised interest rate. According to the Ministry of Finance (MoF), Nepal has obtained 3.4 points out of six points under the WB rating, which is an improvement of 0.4 points. With this, the country has also upgraded itself to the list of other countries receiving support of the WB that are in the Country Policy and Institutional Assessment (CPIA) rating.

    Financial management, position of the structural policies, social inclusion, management of public sectors and institutional development are some of the parameters of the WB rating. During the meeting, Mahat said that the country would improve its performance and get more rating points in the coming years to get additional support.

    Currently, Nepal is receiving WB support under International Development Association (IDA) 16. In the meeting, Jutt said that Nepal will receive additional assistance after implementation of IDA 17, which starts on July 17. He also assured of providing support committed in the past for the energy sector development and said that International Finance Corporation will investment in Nepal.

    In the meeting, Mahat and Jutt also discussed about signing a power development agreement. Minister Mahat assured that since there had been a series of discussions regarding the issue, the government would soon reach a conclusion.

    According to MoF, Mahat also assured of improvements in Nepal Electricity Authority and resolving the issues related to Value Added Tax. He also requested WB to implement the Solar Energy Development Project of Kathmandu at the earliest. 

    Source : The Himalayan Times