By A Staff Reporter
Kathmandu, Dec. 31: A loan agreement of Rs. 18.25 billion (equivalent to US$ 156 million) has been signed with the Asian Development Bank (ADB) for the modernisation of Nepal's electricity grid.
Joint Secretary of the Ministry of Finance Shrikrishna Nepal and Officer-in-charge of the Asian Development Bank's Nepal Residential Office Rudi Louis Hendrikus Van Dael inked the agreement on behalf of their respective institutions at a programme organised at the Ministry of Finance on Wednesday.
Joint Secretary Nepal informed that the objective of the agreement was to improve power transmission and distribution system of the Electric Grid Modernisation Project, to make the power supply sustainable and reliable by modernising the power grid and to develop and strengthen the capacity of Nepal Electricity Authority (NEA).
The total cost of the electric grid modernisation project is about Rs. 22.81 billion (equivalent to US$ 195 million).
Out of this, 18.25 billion will be borne by the Asian Development Bank and the remaining Rs. 4.56 billion (equivalent to US$ 39 million) will be borne by the government and Nepal Electricity Authority, according to a press statement of the Ministry.
The Ministry of Finance has stated that the energy saved from the power grid modernisation project can be exported to the neighbouring countries by minimising the energy loss due to power leakage.
This will also make a positive contribution to the economic activities of the country.
The implementing body of this project is NEA.