WB funding for transmission line between India and Nepal

REPUBLICA KATHMANDU, July 16: The World Bank and the Government of Nepal signed an agreement on Saturday for financing the implementation of the Nepal India Electricity Transmission and Trade Project (NIETTP). According to a press statement, the agreement was signed by Lal Shanker Ghimire, Joint Secretary and Chief of the Foreign Aid Coordination Division, Ministry of Finance, and Andras Horvai, World Bank Acting Country Manager for Nepal. Ellen Goldstein, the World Bank Country Director for Nepal and Bangladesh, in the statement said the landmark project is one of the several joint efforts that Nepal and the World Bank are making to help relieve the chronic shortage of electricity and will contribute to removing the infrastructure barriers which stand as the key challenge for development. The action plan includes development of the Dhalkebar-Muzaffarpur transmission link, a key component of the NIETTP and the first major cross-border transmission line between India and Nepal to be developed on a commercial basis. Upon completion of the project, Nepal is expected to significantly reduce load shedding with consequent positive impact on trade and industry. The assistance package is part of a $202 million project, which is also supported by the private sector and development partners, as well as the governments of Nepal and India. World Bank´s contribution in the project comprises of $84 million in credit from the International Development Association (IDA), the concessionary lending arm of the World Bank Group and an IDA grant of $15 million. "The project will provide Nepal with at least 100 MW of additional electricity imported from India to meet its power needs," said Goldstein. "It will also develop key segments of the backbone high voltage system to help expand access to electricity across Nepal."

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