September 22, 2022
On September 21, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of Nepal in Kathmandu to provide a Japanese ODA loan of up to 15,901 million yen for the Urban Transmission and Distribution System Improvement Project.
The objective of the Project is to improve the power transmission and distribution system in urban areas (Pokhara City and Kathmandu Valley are candidate sites) in Nepal, by developing such components of the existing system as grid substations and related equipment. Since this project is to be implemented as a sector loan, subprojects will be selected by Nepal Electricity Authority (NEA) after discussions between NEA and a consultant in consideration of selection criteria such as effectiveness, efficiency, and the socio-environmental impact. This project is expected to contribute to economic growth and improvement of the living environment in Nepal and will work toward achieving Goals 7 (Affordable and clean energy), 8 (Decent work and economic growth), and 9 (Industry, innovation and infrastructure) of the SDGs (Sustainable Development Goals).
Details for the project are provided below.
1. Terms and Amount of Loan
|Annual interest rate (%)||Repayment
|Urban Transmission and Distribution System Improvement Project||15,901||0.01||0.01||40||10||General untied|
2. Executing Agency
Nepal Electricity Authority (NEA)
Address: Nepal Electricity Authority, Central Office, Durbarmarg, Kathmandu, Nepal
Phone: +977-1-4153051, fax: +977-1-4153009
3. Planned Implementation Schedule
(1)Completion of project: February 2027 – At the time of commercial operation
(2)Issuing of letters of invitation for consulting services (including detailed design work): December 2022
(3)Tendering of announcement of initial procurement package for international competitive bidding on project construction: October 2023