The World Bank has approved assistance of $99m for a Nepal-India crossborder electricity transmission project. The assistance comprises $84m in loans and the remainder as a grant.
 
The Nepal-India Electricity Transmission and Trade Project (NIETTP) will enable Nepal to receive 100 MW of additional electricity.
 
Susan Goldmark, World Bank country director for Nepal, said: “This project will help Nepal mitigate deficits through the trade in electricity. The transmission infrastructure can also export surplus hydropower and earn revenue for Nepal.”
 
Nepal’s current peak demand stands at 885 MW, and it has a power generation capacity 598 MW.
 
As a result, the government has declared a national energy crisis, and will develop the Dhalkebar-Muzaffarpur transmission link, a key component of the NIETTP and the first major cross-border transmission line between India and Nepal.
 
The World Bank believes that the crossborder project and cooperation can lower costs in each country, improve supply reliability, and help lower carbon emissions.
 
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