NEA seeks financial aid from AIIB for energy development roadmap

KATHMANDU: In a significant move towards advancing Nepal’s energy infrastructure, the Nepal Electricity Authority (NEA) has reached out to the Asian Infrastructure Investment Bank (AIIB) for financial assistance.

NEA’s Managing Director, Kulman Ghising, recently held discussions with AIIB’s board of directors, urging increased investment in electricity infrastructure projects crucial for realizing the Energy Development Roadmap and Action Plan 2023.

During the meeting, Ghising emphasized the necessity of bolstered investment in production, transmission, and distribution structures to ensure a reliable and safe electricity supply.

He stressed the importance of concessional loans from AIIB to support these efforts, citing the substantial financial requirements estimated at around US$ 60 billion for implementing the energy sector roadmap up to 2035.

Currently, AIIB has extended a concessional loan of US$ 112.3 million to Nepal for enhancing the electricity distribution system.

This funding is earmarked for the expansion and improvement of electrification and distribution systems in various provinces, as confirmed by NEA.

The AIIB-funded project aims to install numerous distribution substations, transmission lines, and distribution transformers across designated provinces. Contracts for the project implementation have been finalized, signaling progress in Nepal’s energy infrastructure enhancement efforts.

In addition to the ongoing support, AIIB, in collaboration with Korean companies, has provided a US$ 40 million loan for the construction of the Upper Trishuli-1 hydropower project.

This collaborative initiative aligns with Nepal’s broader energy development objectives and signifies international cooperation in the sector.

NEA’s pursuit of financial aid from AIIB underscores Nepal’s commitment to advancing its energy sector. With ambitious plans and international support, Nepal aims to bolster its energy infrastructure, ensuring sustainable growth and fostering regional cooperation in the sector.

Fiscal Nepal |
Wednesday March 27, 2024, 10:48:27 AM |

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