ADB approves USD 311 million loan for Nepal’s T&D infrastructure upgrade

The Asian Development Bank (ADB) has approved a USD 311 million loan to upgrade electricity transmission and distribution infrastructure in Nepal under the South Asia Subregional Economic Cooperation Electricity T&D Strengthening Project. 

Implemented by Nepal Electricity Authority (NEA), the project will modernize energy infrastructure and add solar photovoltaic (PV) generation capacity. 

Key initiatives include constructing 290 km of transmission lines across Dailekh–Jumla, New Butwal–Lamahi, Nijgadh–Ramauli, and Teenpiple–Okharpauwa, along with enhancing distribution infrastructure in Karnali and Lumbini provinces. The project will also introduce 8 MW of grid-connected solar PV in Karnali and other regions. 

Additional support includes an ADB grant of USD 30 million from its Asian Development Fund for training, capacity building, smart meter rollout, a data recovery centre, and a SCADA network for NEA.