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Nepal: Power Distribution System Upgrade and Expansion Project

SUMMARY

STATUS
Approved
MEMBER
Nepal
SECTOR
Energy
E&S CATEGORY
Category B
PROJECT NUMBER
000086

FINANCING

PROJECT TYPE
Stand-alone
APPROVED FUNDING
USD112.3 million
FINANCING TYPE
Sovereign

TIMELINE

CONCEPT REVIEW
May 9, 2018
APPRAISAL REVIEW/FINAL REVIEW
September 24, 2019
FINANCING APPROVAL
December 12, 2019
LOAN CLOSING/LAST DISBURSEMENT
June 1, 2025

OBJECTIVE

The objective is to increase access to and improve the quality and efficiency of the electricity supply in selected areas of Western Nepal.

DESCRIPTION

The Project comprises 21 geographically distinct subprojects within the Government’s Electrification Program for Western Nepal, together consisting of the following three components:

Component One: Construction of 33kV supply lines and 33/11kV substations (including upgrade of existing facilities where needed). This component comprises activities relating to (i) the construction of new primary substations and related facilities, and (ii) the extension to the 33kV network providing supply to these substations. In some instances, where needed, the existing 33kV lines would be augmented by the increase of conductor size or number of circuits

Component Two: Construction of 11kV lines, distribution transformers, low-voltage (LV) supply lines including consumer connections. This component comprises activities related to the new power distribution facilities required to bring the power supply to the end consumers. It consists of new 11kV feeders, installation of distribution transformers, development of the LV network and service connections to consumers.

Component Three: Capacity Building, Project Implementation Support, and Technical Assistance. This component focuses on improving the capacity of NEA’s distribution planning and analyzes the network performance of the proposed project components. This component will also support the independent supervision and monitoring of project implementation. AIIB will support technical assistance, utilizing the geographical information systems (GIS) planning software already acquired and financed under AIIB’s Project Preparation Special Fund.

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

AIIB’s Environmental and Social Policy (ESP), including the Environment and Social Standards, and Environmental and Social Exclusion List, is applicable to the Project. The Project has been assigned a Category B in accordance with the ESP.

The final Environmental and Social Management Framework (ESMF) has been disclosed in English by AIIB and NEA. The Nepali translation of the Executive Summary of the ESMF, the Resettlement Planning Framework (RPF) and the Indigenous Peoples Planning Framework (IPPF), and Entitlement Matrix is also disclosed.

Please review the project summary for additional information.

PROJECT TEAM LEADER

Jeesun Han

Investment Operations Specialist – Energy

jeesun.han@aiib.org

 

BORROWER

Dil Bahadur Chhetry

Under Secretary
Ministry of Finance
Government of Nepal

chhetrydb@mof.gov.np

 

IMPLEMENTING ENTITY

Bijaya Sen Khadka

Project Manager, Distribution & Consumer Services Directorate, NEA

bijaya_kd@nea.org.np

 

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