MoF signs loan agreement with ADB for grid modernisation

The Ministry of Finance has signed a loan agreement with Asian Development Bank for electric grid modernisation in the country. At an event held on December 30, MoF and ADB signed the loan agreement worth Rs 18.25 billion. The agreement was signed by MoF Joint Secretary Shree Krishna Nepal and ADB Office In- Charge for Nepal Residential Office, Rudy Van Dale. The major objective behind inking this agreement is to improve the power transmission capacity of the country. Joint Secretary Nepal said that the government has signed the agreement with ADB to improve the power transmission and distribution system under the Electric Grid Modernisation Project. “We are expecting this agreement to play a crucial role in make the power supply sustainable and reliable by modernising the power grid in the country and to develop and strengthen the capacity of Nepal Electricity Authority (NEA),” Nepal said. According to Nepal, the total investment cost of the electric grid modernisation project is about Rs 22.81 billion. Of this amount, ADB will bear Rs 18.25 billion while the remaining Rs 4.56 billion will be invested by the NEA. The NEA will implement the project. According to the agreement, the project will finance automation of 40 grid substations throughout the country, construction of three units of modern 132/11 kV grid substations with automation (each with 2×45 megavolt amperes [MVA] capacity) together with 16 km of 132 kV double circuit underground line along Chobhar-Lagankhel-Sinamangal route. The project will also finance the construction of five km of 66 kV double circuit underground transmission line along Sinamangal-Chabahil in Kathmandu valley. The project also covers upgrading of 237 km of 132 kV transmission lines with more efficient high-temperature-low-sag conductors; and commissioning of transmission system consisting of four automated grid substations with capacity of 290 MVA and 48 km transmission lines in Myagdi and Dhading districts.