The Asian Development Bank (ADB) is to provide a loan assistance of Rs 4714 million and a grant assistance of nearly Rs 326 million, totaling about Rs. 5040 million to Nepal Government for the implementation of Energy Access and Efficiency Improvement Project.

The agreements to this effect were signed between the Government of Nepal and the Asian Development Bank at the Ministry of Finance, Kathmandu, Thursday.
The project covers three main categories; energy access, clean energy and capacity building with seven components; facilitating access to clean energy, energy access quality enhancement, clean energy improvement, supply-side energy efficiency improvement, energy efficiency in lighting, renewable energy for street lighting and capacity building.

Similarly, the major project activities include construction of Middle Marshyangdi-Damauli-Marshyangdi TL, construction of second circuit of Butwal-Kohalpur TL, construction and expansion of Chapali and Matatirtha grid sub-stations, installation of capacitor banks, construction of primary distribution sub-stations and switching stations. Similarly, rehabilitation of two small-scale hydropower plants, distribution of about 1 million CFLs, installation of 1000 solar and solar-wind streetlights, and providing expert services to Nepal Electricity Authority (NEA). This project will support the Government of Nepal’s long term vision to provide universal coverage using grid-based and off-grid supplies by 2027.

According to a press release issued by the Finance Ministry Thursday, the agreement was signed by Finance Secretary Rameshwor Prasad Khanal on behalf of the Government of Nepal, and Country Director of ADB, Kathmandu, Barry Hitchcock. On the same occasion, the project agreements related to the Project were signed by Managing Director of Nepal Electricity Authority Dr. Jivendra Jha, and ADB country Director Hitchcock.