The World Bank has approved two significant projects for Nepal, totaling $257 million, aimed at improving electricity distribution and irrigation services. The decision was made by the Board of Executive Directors on May 29.
The first project, the Electricity Supply Reliability Improvement Project, is valued at $120 million. It seeks to enhance the electricity distribution network in several provinces: Koshi, Bagmati, Karnali, and Sudurpashchim. Led by the Nepal Electricity Authority, this initiative will involve constructing new substations and upgrading existing networks. Additionally, an automated system for real-time monitoring will be implemented to boost operational efficiency.
The second project is the Modernization of Rani Jamara Kulariya Irrigation Project - Phase 3, with a budget of $137 million. This project aims to improve irrigation services and agricultural productivity in Kailali district within Sudurpaschim Province. Jointly managed by Nepal’s Department of Water Resources and Irrigation and Department of Agriculture, it plans to extend year-round irrigation to an additional 17,500 hectares. This expansion is expected to benefit 160,000 people.
David Sislen, Country Division Director for Maldives, Nepal, and Sri Lanka stated: “An uninterrupted electricity supply and adequate, year-round irrigation services are fundamental inputs for Nepal’s sustainable development.” He emphasized that these projects focus on enhancing connectivity and promoting clean hydropower-generated electricity while providing integrated agricultural support services to build resilience against climate and disaster risks.
Both projects also include capacity-building initiatives targeting the Nepal Electricity Authority and the Water Users Association. These efforts aim to promote innovative solutions and strengthen institutional systems for effective infrastructure management and sustainability.