KATHMANDU: The World Bank on Sunday approved a credit of USD 20 million for the Government of Nepal to implement the Power Sector Reform and Sustainable Hydropower Development Project.

The project would help strengthen the capacity of power sector agencies in Nepal to plan and prepare hydropower generation and transmission line projects along international standards and best practice, it is learnt. The project will also help improve the readiness of power sector agencies to undertake regulatory and institutional reforms.

A press release issued today by the WB stated that the first project component would support the preparation of the Upper Arun Hydroelectric Project and the Ikhuwa Khola Hydroelectric Project, identified as priority public investments by the Government of Nepal.

It would also support the preparation of transmission line projects to be identified by the ongoing Transmission System Master Planning.

A second component would finance studies and propose policy recommendations critical for power sector reforms.

It will also promote river basin planning in an integrated water resource management approach for selected river basins and recommend improvements in water resource management and regulations while the third component would support capacity building for safeguards management and sustainable hydropower development, adds the release.