World Bank to provide Nepal a US$130 million credit for Grid Solar and Energy Efficiency Project

The International Development Association (IDA) of the World Bank Group has agreed to provide an assistance of US$ 130 million (equivalent to Nepalese Rupees about 12 Arba 92 Crores 59 Lakhs) to the Government of Nepal for the implementation of Grid Solar and Energy Efficiency Project. An agreement to this effect was signed today at the Ministry of Finance.

The objectives of the project are to produce 25 MW solar photovoltaic generated electricity to supply to grid and to reduce Nepal Electricity Authority’s distribution losses. The project aims to generate 25 MW of solar photovoltaic electricity within 2015. The project also aims at reducing the systemic electricity distribution losses drastically to 10 percent at the end of the project. The distribution loss reduction is said to be an alarming rate of 25 percent of the generation despite some efforts made by NEA. The project is considered to contribute to lessen the present energy crisis both from the point of view of an early production of solar energy and strategic loss reduction endeavor.

The above is an excerpt of Agreement between GoN and the International Development Association (IDA) of the World Bank Group by Ministry of Finance, Government of Nepal. Image Credit: Dhilung Kirat via Flickr.