The Asian Development Bank (ADB) has approved a $150 million loan to Nepal Electricity Authority (NEA), reports The Kathmandu Post.
The ADB will also give a $2 million technical assistance grant from the Japan Fund for Poverty Reduction (JFPR) financed by the government of Japan. This grant will be given to focusing on improving Gender Equality and Social Inclusion (GESI) results in Nepal.
Jiwan Acharya, an ADB senior energy specialist said, “We are confident that the project will help improve electricity distribution and efficiency in the country, and significantly support the government’s goal of ending the country’s energy crisis within the next two years and achieving Sustainable Development Goal 7, Sustainable Energy for All.”
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This project will improve the reliability and quality of the Kathmandu Valley’s electricity supply by reducing distribution system overloads and technical and commercial losses. It will also improve the distribution capacity.
The project aims to strengthen the transmission grid capacity, increase the capacity and rehabilitate the distribution network in the project area, besides enhancing the operational and financial performance of NEA distribution centers. It also aims to develop the NEA’s capacity to operate and manage an advanced distribution system and intelligent network (smart grid) technology with GESI aspects in electricity access and end-user awareness programs.