Jan 16, 2017

The International Development Association (IDA) of the World Bank Group has agreed to provide an additional assistance of US$ 39,000,000 (Thirty Nine million US dollars) equivalent to Nepalese Rupees 4 billion to the Government of Nepal for the implementation of Nepal India Electricity Transmission and Trade Project (NIETTP).

The International Development Association (IDA) of the World Bank Group has agreed to provide an additional assistance of US$ 39,000,000 (Thirty Nine million US dollars) equivalent to Nepalese Rupees 4 billion to the Government of Nepal for the implementation of Nepal India Electricity Transmission and Trade Project (NIETTP). Out of the total US $39 million financing US $ 37 million is loan assistance and the rest US $2 million is grant aid. The Financing Agreement regarding the implementation of the project was signed between Government of Nepal and the World Bank today at the Ministry of Finance, Kathmandu.

The objective of the project is to facilitate export and import of electricity to and from India and to reduce extreme power shortage especially in the dry season.The project also aims at exporting the surplus power in future when there will be surplus electricity generated in the country. The Transmission line project isunder construction since 2011 and IDA had financed US $ 99 million for this purpose.

The project fulfills the requirement of high voltage (400 KV) transmission Lines across the border between Nepal and India. The completion of this project enables Nepal for the exchange of high voltage of power across the border as per need. The project has following main components: (1) Dhalkebar-Muzaffarpur 400 KV Transmission Line, (2) Hetauda-Dhalkebar-DuhabiTransmission Lines and (3) Substations synchronization of Nepal and Indian grids.

The Additional Financing Agreement was signed by Mr. Madhu Kumar Marasini, Joint Secretary, Ministry of Finance and Ms.Tahseen Sayed, Country Manager, the World Bank on behalf of the Government of Nepal and the Bank, respectively.