KATHMANDU, JUNE 2
The World Bank has approved a $257 million loan to Nepal for two major projects aimed at improving electricity distribution and irrigation services.
In a press release, the Bank said its Board of Executive Directors approved the funding on May 29. Of the total, $120 million has been allocated for the Electricity Supply Reliability Improvement Project, which will upgrade the electricity distribution network in Koshi, Bagmati, Karnali, and Sudurpashchim provinces. The project, led by the Nepal Electricity Authority, will include the construction of substations, network upgrades, and a real-time monitoring system to improve efficiency.
The remaining $137 million will fund the Modernization of Rani Jamara Kulariya Irrigation Project – Phase 3, which aims to expand year-round irrigation services in Kailali district. Jointly implemented by the Department of Water Resources and Irrigation and the Department of Agriculture, the project will benefit around 160,000 people and cover an additional 17,500 hectares of farmland.
"An uninterrupted electricity supply and adequate, year-round irrigation services are fundamental inputs for Nepal's sustainable development," said David Sislen, Country Division Director for Maldives, Nepal, and Sri Lanka.
Both projects include capacity-building components for the Nepal Electricity Authority and Water Users Association to ensure sustainability and strengthen institutional systems.
