Press Release

Japan International Cooperation Agency (JICA) Nepal and the Government of Nepal (GoN) signed a Loan Agreement on the project "Transmission and Distribution System Improvement in Urban Area' of Nepal on September 21, 2022. JICA shall extend a Loan up to JPY 15.901 billion (approximately NPR 14.2 billion). This is the first Yen Loan Project for transmission and distribution system in Nepal.

The objective of the Project is to improve the transmission and distribution system in urban areas of Nepal by developing and/or upgrading the existing transmission and /or distribution system, including grid substation and related equipment. Thereby it will contribute to economic growth in Nepal, as well as the achievement of SDGs Goal 7, "Ensure access to affordable, reliable, sustainable and modern energy for all".

The Exchange of Notes regarding the assistance was signed between Mr. Krishna Hari Pushkar, Secretary, Ministry of Finance on behalf of the Government of Nepal (GON) and H.E. Mr. KIKUTA Yutaka, Ambassador of Japan to Nepal on behalf of the Government of Japan. Similarly, the Loan Agreement was signed between Mr. Ishwori Prasad Aryal, Joint Secretary, International Economic Cooperation Coordination Division (IECCD), Ministry of Finance on behalf of GON and Mr. OKUBO Akimitsu, Chief Representative of JICA Nepal Office on behalf of JICA. The executing agency is Nepal Electricity Authority (NEA). The project will cater the supply chain of the emergent urban areas of Nepal to provide efficient and reliable power supply and minimize the transmission and distribution losses in the system, responding to the growing power demand in the areas.

The project will be implemented in Bagmati Province (Kathmandu, Lalitpur & Bhaktapur) and Gandaki Province (Pokhara). The electricity consumption has been increasing at the average annual growth rate of approximately 10.5% in Kathmandu valley and 11.7% in Pokhara, respectively during the last five years of period.

In Kathmandu valley, the population growth and commercial activities are increasing day by day therefore the existing infrastructure needs to be immediately strengthened to be able to supply reliable and efficient electricity to the consumers. This project aims to strengthen the supply capacity in the main core areas of Kathmandu valley. Likewise, responding to the increasing amount of energy consumption in Pokhara brought about by the growing population and commercial activities, the project will enhance the capacity of the distribution system in Pokhara valley in order to meet the increasing demand in coming years.

Agreement Signing

Balaju Substation

For more details, please contact:

Ms. Brinda Singh - Public Relations Officer (JICA Nepal Office)
Singhbrinda.np@jica.go.jp