Nepal: South Asia Subregional Economic Cooperation Power Transmission and Distribution System Strengthening Project

This loan and grant project will complete the reinforcement and modernization of the power supply system in and around Kathmandu in Bagmati Province, Nepal. This project will begin strengthening distribution systems outside of Kathmandu in a systematic and phased manner, starting with the Bharatpur metropolitan area of Chitwan district in Bagmati Province and Pokhara of Kaski district in Gandaki Province, where supply interruptions are frequent and prolonged. The project will also support Province 2, where the quality of electricity supply is poor and about 20% of households are still without access to the national grid. Further, the project will strengthen transmission lines for evacuation of hydropower to the main load center, Kathmandu, and other load centers, while excess power is traded with neighboring countries.