Nepal: Energy Access and Efficiency Improvement Project

Sovereign Project | 40553-013 Status: Active


Latest Project Documents

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Procurement Notices See also: Operational Procurement

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Procurement Documents

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Project Name Energy Access and Efficiency Improvement Project
Project Number 40553-013
Country Nepal
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0182-NEP: Energy Access and Efficiency Improvement Project
Climate Change Fund US$ 300,000.00
Grant 0183-NEP: Energy Access and Efficiency Improvement Project
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 4.20 million
Loan 2587-NEP: Energy Access and Efficiency Improvement Project
Asian Development Fund US$ 65.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Electricity transmission and distribution - Energy efficiency and conservation - Renewable energy generation - solar

Gender Equity and Mainstreaming
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome The works for some of the components are already complete and others are ongoing; the outcome is likely to be achieved.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Component 1-Energy Access: Facilitating Access to Clean Energy. Component 1 consists of (i) constructing the Middle MarsyangdiDamauli Marsyangdi transmission line and associated facilities to strengthen the evacuation of power from the 70 megawatt (MW) Marsyangdi hydropower station, (ii) constructing the second circuit of the Butwal Kohalpur transmission line to improve cross-border power import capacity, and (iii) constructing and expanding the Chapali and Matatirtha substations and installation of capacitor banks to strengthen the capability of the transmission network to transfer power.

" 132 kV transmission line length increased by 248 km and grid substation capacity increased by 172 MVA- Line Length: 208 km (BKK-185 km, MDD 23 km) S/S Capacity: 52 MVA

Component 2- Energy Access Quality Enhancement: Component 2 consists of constructing eight primary distribution substations and three switching stations to strengthen the electricity systems ability to connect new consumers and to improve the quality of electricity supply to existing consumers.

" Distribution substation capacity increased by 64 MVA-

Distribution substations at Mirchaiya, Baniyani, Paraul and Barathawa and Moolpani (8MVA each) have been charged. Most of the works in other remaining substations are being completed.

Component 3-Clean Energy Plant Improvement: Clean Energy Plant Improvement. Component 3 involves rehabilitating two small-scale run-of-river hydropower plants at Marsyangdi (69 MW) and Gandak (15 MW) to increase the efficiency.Weir Control and Excitation system for Marsyangdi and TRCM for Ganda HPP replacement-

Weir Control System has been installed at Marsyangdi HPP. Excitation system replaced in Marsyangdi HPP. Trash rack panels delivered, TRCM dispatched from Germany and now being transported to Nepal from Kolkota.

Component 4- Supply Side Energy Efficiency Improvement: Under this component, pilot project will be implemented to rebuild selected distribution feeders and low-voltage networks which have unacceptably high losses, using international best practice to reduce both technical and commercial losses. Sixteen 11 kV feeders and downstream networks in Kathmandu valley and Birgunj corridor are being replaced- Some of the procured lot have been delivered on site and installation ongoing. Work delayed in Birgunj due to unrest in Tarai.

Component 5-Energy Efficiency in Lighting: involves distributing approximately 1 million compact fluorescent lamps to households and implementation support to improve energy efficiency in lighting.

-CFL distribution is complete.

Component 6-Renewable Energy for Street Lighting: Component 6 consists of the installation of 1,000 solar and solar-wind streetlights in Bhaktapur, Kathmandu, and Lalitpur municipal areas to reduce the burden on the main electricity grid- 1,501 PV solar street lights have been installed in Kathmandu valley. 100 kWp solar gird tied system installed in NEA training centre,60 kWp in Bir Hospital (50 kWp grid connected system + 10 kWp solar backup systems)

Component 7-Capacity Building: Component 7 involves assisting the Nepal Electricity Authority (NEA) by providing expert services to formulate, design, and implement publicprivate partnerships (PPPs) in three identified distribution areas, and capacity building and implementation support to the NEA for component - Consultant prepared a report to implement public private partnerships (PPPs) in distribution centers of NEA

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects The Government of Nepal has undertaken initial environmental examinations and developed an environmental management plan for all relevant packages and included in the bidding/contract documents.
Involuntary Resettlement A full resettlement plan (RP) was prepared during project preparation in consultation with affected parties, local authorities, and the NEA, in accordance with ADB's Involuntary Resettlement Policy (1995). It will guide the resettlement process and describe the nature of impacts, range of and eligibility for entitlements, income and livelihood restoration, rehabilitation assistance, and compensation for losses incurred. The resettlement plan will be updated as needed and publicly disclosed to interested stakeholders on the ADB and NEA websites. Accordingly, EA is currently in the process to update the RP to reflect the change in number of affected people due to change in route alignment in one transmission line package.
Indigenous Peoples No adverse impact is expected on indigenous people's communities.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were conducted during project preparation with relevant stakeholder groups. District stakeholders were consulted to inform them about the project, collect required information and suggestions relevant to the project, and seek their support tor project preparation. Consultation with the local community, including the project-affected families, was undertaken to (i) disseminate information about the proposed projects and likely impacts, (ii) solicit their view and suggestion, (iii) collect socioeconomic and census data, (iv) assess the scope of effects on private and community assets, (v) assess financial assistance to be made to the affected people.
During Project Implementation Regular review missions and regular meetings are being conducted by ADB.

Business Opportunities

Consulting Services

All the consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants.

Contracts for all 6 consulting services for loss reduction project, distribution PPP project, renewable energy for street lighting and waste management policy have been awarded.


All procurement to be financed under the ADB will be carried out in accordance with ADB's Procurement Guidelines. International competitive bidding procedures will be used for all the components, except one contract package under component 3(clean energy plant improvement) and the single package under component 5 (energy efficiency in lighting).

All 23 contract packages have been awarded.

Responsible Staff

Responsible ADB Officer Pushkar Manandhar
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Nepal Electricity Authority
Sanepa, Lalitpur


Concept Clearance 14 Mar 2009
Fact Finding 16 Mar 2009 to 27 Mar 2009
MRM 08 Jul 2009
Approval -
Last Review Mission -
PDS Creation Date 30 Jul 2009
Last PDS Update 04 Mar 2016

Grant 0182-NEP

Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Nov 2009 11 Mar 2010 04 Jun 2010 30 Mar 2013 30 Sep 2014 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.30 Cumulative Contract Awards
ADB 0.30 27 Nov 2009 0.03 0.00 9%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 27 Nov 2009 0.02 0.00 8%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - Satisfactory Satisfactory Partly satisfactory Partly satisfactory

Grant 0183-NEP

Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Nov 2009 11 Mar 2010 04 Jun 2010 30 Mar 2013 30 Sep 2015 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.20 Cumulative Contract Awards
ADB 0.00 27 Nov 2009 0.00 3.72 89%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 4.20 27 Nov 2009 0.00 3.70 88%

Loan 2587-NEP

Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Nov 2009 11 Mar 2010 04 Jun 2010 30 Mar 2015 30 Dec 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 89.20 Cumulative Contract Awards
ADB 65.00 27 Nov 2009 51.78 0.00 94%
Counterpart 24.20 Cumulative Disbursements
Cofinancing 0.00 27 Nov 2009 44.71 0.00 81%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - Satisfactory Satisfactory Satisfactory Satisfactory

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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