ADB assisted the Government of Nepal in increasing capacity of national power grid and enhancing renewable energy development. The South Asia Subregional Economic Cooperation Power System Expansion Project is building more than 200 kilometers of power transmission lines, as well as substations, along Kali Gandaki corridor in the Himalayas and Marsyangdi-Kathmandu route. The project is also building or upgrading more than 1,000 kilometers of power distribution lines in the east, central, and west regions of the country. To bring affordable renewable energy to remote areas, the project is building small hydroelectric power plants, as well as mini-grid based solar and solar/wind hybrid energy systems.
|Project Name||South Asia Subregional Economic Cooperation Power System Expansion Project-Additional Financing|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Energy / Electricity transmission and distribution
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||ADB assisted the Government of Nepal in increasing capacity of national power grid and enhancing renewable energy development. The South Asia Subregional Economic Cooperation Power System Expansion Project is building more than 200 kilometers of power transmission lines, as well as substations, along Kali Gandaki corridor in the Himalayas and Marsyangdi-Kathmandu route. The project is also building or upgrading more than 1,000 kilometers of power distribution lines in the east, central, and west regions of the country. To bring affordable renewable energy to remote areas, the project is building small hydroelectric power plants, as well as mini-grid based solar and solar/wind hybrid energy systems.|
|Project Rationale and Linkage to Country/Regional Strategy||
The Government of Nepal has requested a loan of $20 million from ADB's concessional ordinary capital resources to cover a shortfall resulting from a change in financing arrangement from one of the cofinanciers of the current Nepal: South Asia Subregional Economic Cooperation (SASEC) Power System Expansion Project.
The Project is to assist Nepal's energy sector development by facilitating (i) expansion of domestic power transmission capacity, (ii) power exchange with India, (iii) augmentation and expansion of the distribution networks, and (iv) mini-grid-based renewable energy access in rural areas. The project is prioritized as part of the SASEC Program's Power Generation and Transmission Master Plan and Regional Cooperation Business Plan, 2014 2016.
The Project was approved on 4 July 2014, signed on 11 July 2014, and became effective on 15 January 2015. At the time of approval, total external financing for the Project was $371.2 million, consisting of (i) Loan 3139 of $180.0 million in various currencies equivalent to SDR116.5 million from ADB's Special Funds resources, (ii) Grant 0397 of $60.0 million equivalent from the Government of Norway, (iii) Grant 0398 of $11.2 million from the ADB's Strategic Climate Fund (SCF), and (iv) a parallel cofinancing loan of $120.0 million from the European Investment Bank. Grant 0520 ($20.0 million) from SCF was approved as additional financing on 29 November 2016, signed on 18 January 2017, and became effective on 19 May 2017. Loan 3139, Grant 0397, Grant 0398 and Grant 0520 are closing on 30 June 2022. Nepal Electricity Authority (NEA) and Alternative Energy Promotion Centre (AEPC) are the executing agencies for the Project.
|Impact||Increased electricity access in Nepal and improved power exchange across the border|
|Outcome||Increased capacity of national power grid and enhanced renewable energy development|
Power transmission capacity increased
Power distribution network improved
Mini-grid-based renewable energy systems in off-grid areas increased
Capacity development support to NEA and AEPC provided
Utility scale solar photovoltaic projects developed
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Acharya, Jiwan S.|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Nepal Resident Mission|
Nepal Electricity Authority (NEA)
P. O. Box 5352
|Concept Clearance||06 Jun 2018|
|Fact Finding||14 May 2018 to 18 May 2018|
|MRM||10 Jul 2018|
|Last Review Mission||-|
|Last PDS Update||30 May 2018|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|South Asia Subregional Economic Cooperation Power System Expansion Project - Additional Financing: Project Data Sheet (Nepali Translation)||Translated PDS||May 2018|
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.