The Manila-based Asian Development Bank (ADB) and Nepal’s ministry of finance signed the loan agreement in Kathmandu.
The aid will be granted to the Power Transmission and Distribution Efficiency Enhancement Project (PTDEEP) which supports the expansion of the transmission lines in various areas of Nepal and enhancement of the distribution efficiency in the northern part of Kathmandu, according to a statement issued by the ministry.
The project, having a 4- to 5-year completion period, would incorporate various components such as the construction of transmission lines, upgrading sub-stations in Barhabise, Laphsiphedi, Khimti and Chapagaun areas and the rehabilitation and capacity enhancement of distribution system in Kathmandu Valley.
Similarly, ADB has also agreed to provide $21mn policy-based assistance to the government of Nepal.
The loan will be utilised in the implementation of South Asia Subregional Economic Co-operation’s (SASEC) customs reforms and modernisation for trade facilitation programme.
The assistance would be mobilised through the budget mechanism, the ministry said.
The ADB approved a $80mn-loan in 2013 to Nepal to rehabilitate the sewerage network and build treatment plants to deal with over 90mn litres of waste water a day in Kathmandu.