World Bank Grants $257 Million to Boost Nepal’s Power and Irrigation Services

The World Bank has approved a loan of $257 million to help Nepal improve its electricity supply and irrigation systems. This funding is aimed at strengthening infrastructure, boosting agricultural productivity, and supporting sustainable development in the country.

Out of the total amount, $120 million will go toward the Electricity Supply Reliability Improvement Project. This project will be led by the Nepal Electricity Authority and will focus on enhancing electricity distribution in the Koshi, Bagmati, Karnali, and Sudurpashchim provinces. It includes the construction of new substations, upgrading of existing networks, and the introduction of an automated monitoring system to ensure a more reliable and efficient power supply.

The remaining $137 million will fund Phase 3 of the Rani Jamara Kulariya Irrigation Project in Kailali district, located in the Sudurpashchim Province. This project aims to expand year-round irrigation services to 17,500 hectares of farmland and benefit approximately 160,000 people. It is a joint effort by Nepal’s Department of Water Resources and Irrigation and the Department of Agriculture. The goal is to increase farm productivity and help farmers become more resilient to climate-related challenges.

According to David Sislen, the World Bank’s Country Director for Maldives, Nepal, and Sri Lanka, uninterrupted electricity and reliable irrigation are key to Nepal’s long-term development. He emphasized that these projects not only focus on better connectivity and clean energy from hydropower, but also support farmers through integrated agricultural services.

In addition to infrastructure development, both projects will include training and capacity-building programs for local institutions like the Nepal Electricity Authority and Water Users Associations. This is expected to promote innovation and ensure the long-term sustainability of the improvements.