March 13, 2010 1:11 PM

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ADB provides grant, loan to Nepal for implementation of Energy Access

The Asian Development Bank has agreed to provide a loan assistance of approximately 65 million US Dollars and a grant assistance of 4.5 million US dollars to Nepal for the implementation of Energy Access, clean energy and capacity building. According to an official press release, an agreement to this effect was signed between the government of Nepal and the Asian Development Bank at the Ministry of Finance in Kathmandu recently. The project consists of three main categories; Energy Access, Clean Energy and Capacity Building that will include construction of power transmission lines and power sub-stations and rehabilitation of two small-scale hydropower plants and installation of 1,000 solar streetlights, and providing expert services to Nepal Electricity Authority. The release said, the proposed loan and grant assistances will address the urgent needs attributed to the electricity supply crisis in Nepal, to a large extent. Nepal is currently reeling under an acute power shortage with its people facing a daily 12 hours of load shedding due to decrease in the water level of rivers feeding major hydropower projects. According to estimates, the country's energy demand stands at 900MW while the supply is around 680 Mega Watt.

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