The Asian Development Bank (ADB) is supporting the Electricity Grid Modernization Project through an additional $60 million loan to upgrade power transmission and distribution systems in Nepal.

The ongoing project is automating 34 existing grid substations, completing the installation of smart meters in the Kathmandu Valley, upgrading 144 kilometers (km) and constructing 113 km of transmission lines, and establishing an electricity distribution system command and control center. The project was approved in November 2020.

Increased funding for the project expands the project’s scope to help construct 16 km of 132-kilovolt transmission lines from Nepalgunj to Kohalpur and from Chovar to Lagankhel. It will construct substations in Dumkibas, Lagankhel, Mulpani, and Nepalgunj to increase substation capacity to an additional 477 megavolt-amperes.

The financing to expand and modernize distribution networks will help Nepal reach its electricity consumption target of 700 kilowatt hours per capita by 2026, according to Mr. Jiwan Acharya, Principal Energy Specialist for South Asia, ADB.

• ADB Approves Power Project Loan in Nepal