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The World Bank is providing a $99 million grant for implementing the Nepal-India Electricity Transmission and Trade Project.
World Bank country director for Nepal, and Bangladesh Ellen Goldstein said, "Removing infrastructure barriers to growth is among the key development challenges facing Nepal today," adding that the project is one of several joint Nepal-World Bank efforts to assist in relieving the Himalayan country’s chronic electricity shortages.
Nepal’s Ministry of Finance Undersecretary Lal Shanker Ghimire and Andras Horvai, World Bank acting country manager for Nepal signed the agreement, Nepalnews.com reported.
The Nepal-India Electricity Transmission and Trade Project 1,000 megawatt capacity cross-border transmission line is intended to help meet a significant part of Nepal’s electricity deficiencies in the quickest, economical manner.
According to the World Bank’s website, there are three components to the Nepal-India Electricity Transmission and Trade Project. The first component is Dhalkebar-Muzaffarpur (D-M) Transmission Line Design, construction and operation of approximately 55 miles of a 400-kilovolt double circuit transmission line between Muzaffarpur and Sursand on the Indian border with Nepal and the designing, construction and operation of approximately 25 miles of 400-kilovolt double circuit transmission line between Dhalkebar and Bhittamod on the Nepal border with India.
The second component is Hetauda-Dhalkebar-Duhabi (H-D-D) transmission line and grid synchronization and the installation of properly tuned power system stabilizers in the major power generating stations and other measures in Nepal in order to synchronize its power system with that of India.
The third component the Nepal-India Electricity Transmission and Trade Project is providing technical advisory services to Nepal Electricity Authority (NEA) for the preparation of a transmission system master plan for future transmission system development in Nepal and for development of additional cross-border interconnections.
By. Joao Peixe, Deputy Editor OilPrice.com
Joao is a writer for Oilprice.com