Nepal : South Asia Subregional Economic Cooperation Power System Expansion Project-Additional Financing

Sovereign Project | 44219-018

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 Details

Related Projects

Project Name South Asia Subregional Economic Cooperation Power System Expansion Project-Additional Financing
Project Number 44219-018
Country / Economy Nepal
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3721-NEP: South Asia Subregional Economic Cooperation Power System Expansion Project-Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 20.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Energy / Electricity transmission and distribution
Gender 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 Electricity access in Nepal increased and power exchange across the border improved
Project Outcome
Description of Outcome Capacity of national power grid increased and renewable energy development enhanced
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

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
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services No consultant recruitment under the additional financing.
Procurement No new procurement under the additional financing. Procurement has been/is being completed under the original project.
Responsible ADB Officer Grishma Shah
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Nepal Electricity Authority (NEA)
P. O. Box 5352
Kathmandu
Nepal
Timetable
Concept Clearance 06 Jun 2018
Fact Finding 14 May 2018 to 18 May 2018
MRM 10 Jul 2018
Approval 02 Oct 2018
Last Review Mission -
Last PDS Update 12 Jun 2019

Loan 3721-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Oct 2018 26 Nov 2018 30 Dec 2018 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 20.00 Cumulative Contract Awards
ADB 20.00 02 Oct 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 02 Oct 2018 0.00 0.00 0%

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.

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Title Document Type Document Date
South Asia Subregional Economic Cooperation Power System Expansion Project-Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President Sep 2018
South Asia Subregional Economic Cooperation Power System Expansion Project-Additional Financing: Project Administration Manual Project/Program Administration Manual Jan 2019
South Asia Subregional Economic Cooperation Power System Expansion Project-Additional Financing: Procurement Plan Procurement Plans Jun 2018
South Asia Subregional Economic Cooperation Power System Expansion Project-Additional Financing: Gender Action Plan Gender Action Plans Jan 2019
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.

Related Publications

None currently available.

The Access to Information Policy (AIP) 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.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
South Asia Subregional Economic Cooperation Power System Expansion Project-Additional Financing: Procurement Plan Procurement Plans Jun 2018