World Bank grants 99m dollars for Nepal-India power project
Sept. 30, 2011 - energycentral.com
The World Bank (WB) has provided 7.024bn rupees (99m dollars) for to implement the Nepal India Electricity Transmission and Trade Project (NIETTP).
The agreement to this effect 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, in Kathmandu, on Friday [15 July].
"Removing infrastructure barriers to growth is among the key development challenges facing Nepal today," said Ellen Goldstein, the World Bank country director for Nepal, and Bangladesh.
This landmark project is one of several joint efforts that Nepal and the World Bank are making to help relieve the chronic shortage of electricity, she added.
The 1,000 MW capacities cross-border transmission link will help meet a significant part of this deficit in the quickest, economical manner.
The project is a continuation of the World Bank group's deepening engagement in Nepal's power sector.
The World Bank group's assistance spans a wide spectrum: developing Nepal's energy resources and institutions to better serve Nepal's electricity needs, for example, through micro hydro and other renewable energy; rehabilitation of larger existing power plants under the ongoing power development project; supporting grid extension under the Kabeli transmission project; developing small hydropower generation with private sector participation such as the proposed Kabeli "A" hydropower project; and promoting renewable energy through the future scaling up renewable energy programme.
The assistance package is part of a 202m dollars 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 84m dollars in credit from the International Development Association (IDA), the concessionary lending arm of the World Bank group and an IDA grant of 15m dollars.
The credit portion carries a 0.75 per cent service charge, 10 years of grace period and a maturity of 40 years.
Originally published by Nepalnews.com website, Kathmandu, in English 16 Jul 11.
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