The World Bank Group has signed a loan agreement to provide US$22.5 million to Nepal to help the Asian country implement its Power Sector Reform and Sustainable Hydropower Project.
The initiative’s three primary components include preparing hydroelectric plant and transmission projects, preparing energy sector reform recommendations, and determining practices for hydropower management and development.
Specifically, the World Bank’s financing will help pay for environmental and social impact assessments on the 335-MW Upper Arun and 30-MW Ikhuwa Khola hydropower plants, alongside design and bidding documents.
The funding will also help Nepal’s Ministry of Energy, Water and Energy (WECS) and Nepal Electricity Authority (NEA) develop plans for integrating hydropower into water resource planning and management plans, while also improving regulatory frameworks for resource management.
HydroWorld.com reported that the World Bank had agreed to the loan credit in September.
Nepal’s Ministry of Finance said the loan carries a 40-year repayment term.
The World Bank has been active in helping Nepal cultivate its hydroelectric power sector, with the organization inviting expressions of interest in rehabilitating the 144-MW Kali Gandaki A plant earlier this month.
For more news from Asia, visit here.
