World Bank approves $257m to improve electricity and irrigation services for Nepal
WASHINGTON: The World Bank’s Board of Executive Directors approved two projects for Nepal on May 29 totalling $257 million. The projects aim to enhance electricity distribution services and improve irrigation services to boost agricultural productivity.
The Electricity Supply Reliability Improvement Project ($120 million) will strengthen the electricity distribution network and enhance supply to users in Koshi, Bagmati, Karnali and Sudurpashchim provinces. The project, led by the Nepal Electricity Authority (NEA), will focus on constructing new distribution substations, upgrading existing networks and implementing an automated system for real‑time monitoring of these networks to enhance operational efficiency.
The Modernisation of Rani Jamara Kulariya Irrigation Project – Phase 3 ($137 million) aims to improve irrigation services and agricultural productivity by expanding access to year‑round irrigation, increasing farm productivity and enhancing climate resilience in Kailali district, Sudurpashchim Province. Jointly implemented by Nepal’s Department of Water Resources and Irrigation and the Department of Agriculture, the project will scale up year‑round irrigation to an additional 17,500 hectares, benefiting 160,000 people.
“An uninterrupted electricity supply and adequate, year‑round irrigation services are fundamental inputs for Nepal’s sustainable development,” said David Sislen, Country Division Director for Maldives, Nepal and Sri Lanka. “The projects emphasise improved connectivity and the promotion of clean electricity generated from hydropower, alongside integrated agricultural support services to farmers to help build resilience against climate and disaster risks.”
The projects also include capacity‑building initiatives for the NEA and the Water Users Association to promote innovative solutions and strengthen institutional systems for the effective management and sustainability of infrastructure.
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