KATHMANDU, DECEMBER 30
Amid an event today, MoF and ADB signed the loan agreement worth Rs 18.25 billion for the modernisation of Nepal’s electric grid.
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.
Issuing a statement today, the ministry has stated that the energy saved from the power grid modernisation project can be exported to the neighbouring countries. “It will also help to minimise the e