Kathmandu – A total investment of approximately NPR 72.93 billion (USD 537 million) has been secured to enhance Nepal’s electricity supply, improve its reliability and quality, and expand trade with neighboring countries. The funding will be used to upgrade and modernize the country’s transmission and distribution systems.

Breakdown of Investment:

• Asian Development Bank (ADB):
  • Concessional Loan: USD 311 million (NPR 42.24 billion).
  • Grant: USD 30 million (NPR 4.07 billion).
• European Union: USD 22.6 million (NPR 3.06 billion).
• Norwegian Government: USD 31 million (NPR 4.21 billion).
• Strategic Climate Fund: USD 10 million (NPR 1.35 billion).
• Nepal Government: USD 132.4 million (NPR 17.98 billion).

Key Projects:

1. Transmission and Distribution:
   • Construction of 290 km of transmission lines.
   • Establishment of five new substations and upgrades for two existing ones.
   • Smart meter installation for Kathmandu households (Phase II).
   • Deployment of SCADA (Supervisory Control and Data Acquisition) for automated monitoring.
   • Electrification and upgrades in Karnali Province.
2. Infrastructure Developments:
   • Butwal-Lamahi 400 kV Line: 160 km double-circuit transmission line, GIS-based substation in Lamahi.
   • Bara-Parsa Corridor: 400 kV substation in Nijgadh with ADB support, improving industrial electricity supply.
   • Okharpauwa-Teenpiple Line: Upgrading Kathmandu’s grid to support projected 3,100 MW demand by 2050.
3. Regional Initiatives:
   • Interconnection for cross-border electricity trade and enhanced domestic consumption.
   • Upgraded transmission lines in remote areas such as Dailekh, Jumla, and Karnali Province.

Impact:

Kulman Ghising, Executive Director of the Nepal Electricity Authority (NEA), emphasized that the investments will bolster the nation’s electricity supply system, enhance infrastructure for reliable regional electricity trade, and digitize distribution systems. ADB’s Nepal Resident Director Arnaud Cugy highlighted the project’s role in addressing grid limitations, facilitating green energy exports, and reducing energy poverty in underserved regions like Karnali and Lumbini.

These efforts aim to meet Nepal’s growing electricity demand, support industrial growth, and ensure equitable energy access across provinces.