WB to finance cross-border transmission line of $99m
KATHMANDU:
The World Bank and government signed an agreement here today towards financing the implementation of the Nepal India Electricity Transmission and Trade Project. Joint secretary and chief of the Foreign Aid Coordination Division at Ministry of Finance Lal Shanker Ghimire and World Bank acting country manager for Nepal Andras Horvai signed the agreement on behalf of their respective institutions here yesterday.
“Removing infrastructure barriers to growth is among the key development challenges facing Nepal,” said World Bank country director for Nepal and Bangladesh Ellen Goldstein, during the signing ceremony. “The landmark project is one of several joint efforts that Nepal and the World Bank are making to help relieve the chronic shortage of electricity,” Goldstein added,
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.
The Bank’s contribution comprises $84 million in credit from the International Development Association, concessionary lending arm of World Bank Group and an IDA grant of $15 million. The credit portion carries a 0.75 per cent service charge, 10 years of grace period and a maturity of 40 years.
The project under Electricity Crisis Management Action Plan includes development of Dhalkebar-Muza-ffarpur transmission link, a key component of Nepal India Electricity Transmission and Trade Project and first major cross-border transmission line between India and Nepal developed on a commercial basis.
Upon completion, Nepal could significantly reduce load shedding, and with the potential of increased trade, end electricity rationing by 2015.
Source: THT
The World Bank and government signed an agreement here today towards financing the implementation of the Nepal India Electricity Transmission and Trade Project. Joint secretary and chief of the Foreign Aid Coordination Division at Ministry of Finance Lal Shanker Ghimire and World Bank acting country manager for Nepal Andras Horvai signed the agreement on behalf of their respective institutions here yesterday.
“Removing infrastructure barriers to growth is among the key development challenges facing Nepal,” said World Bank country director for Nepal and Bangladesh Ellen Goldstein, during the signing ceremony. “The landmark project is one of several joint efforts that Nepal and the World Bank are making to help relieve the chronic shortage of electricity,” Goldstein added,
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.
The Bank’s contribution comprises $84 million in credit from the International Development Association, concessionary lending arm of World Bank Group and an IDA grant of $15 million. The credit portion carries a 0.75 per cent service charge, 10 years of grace period and a maturity of 40 years.
The project under Electricity Crisis Management Action Plan includes development of Dhalkebar-Muza-ffarpur transmission link, a key component of Nepal India Electricity Transmission and Trade Project and first major cross-border transmission line between India and Nepal developed on a commercial basis.
Upon completion, Nepal could significantly reduce load shedding, and with the potential of increased trade, end electricity rationing by 2015.
Source: THT
