The Asian Development Bank will provide a USD 152 million to Nepal for the implementation and enhancement of its power transmission and distribution.
The Manila-based Asian Development Bank (ADB) and Ministry of Finance signed the loan agreement in Kathmandu.
The aid will be granted to the Power Transmission and Distribution Efficiency Enhancement Project (PTDEEP) which supports expansion of the transmission lines in various areas of Nepal and enhancement of the distribution efficiency in the northern part of Kathmandu, according to a statement issued by the ministry.
The project, having a 4 to 5-year completion period, would incorporate various components such as construction of transmission lines, upgrading sub-stations in Barhabise, Laphsiphedi, Khimti and Chapagaun areas and the rehabilitation and capacity enhancement of distribution system in Kathmandu Valley.
Similarly, ADB has also agreed to provide USD 21 million policy-based assistance to the government of Nepal.
The loan would be utilised in the implementation of South Asia Sub-regional Economic Cooperation's (SASEC) customs reforms and modernization for trade facilitation program.
The assistance would be mobilized through budget mechanism, the ministry said.
The ADB had approved a USD 80 million loan in 2013 to Nepal to rehabilitate the sewerage network and build treatment plants to deal with over 90 million liters’ of wastewater a day in Kathmandu.