World Bank Approves USD 257 Million Loan for Electricity and Irrigation Projects in Nepal

KATHMANDU: The World Bank has approved loan assistance of USD 257 million (over NPR 35 billion) for two major projects aimed at improving electricity distribution and irrigation services in Nepal.

The World Bank’s Board of Executive Directors endorsed the two projects on May 29. According to the Bank, the primary objective is to enhance the reliability of electricity supply and boost agricultural productivity through better irrigation systems.

Of the total amount, USD 120 million will be allocated to strengthen electricity distribution networks in Koshi, Bagmati, Karnali, and Sudurpaschim provinces. The project includes building new distribution substations, upgrading existing infrastructure, and implementing a real-time automated monitoring system. It will be carried out by the Nepal Electricity Authority.

Additionally, USD 137 million will be used for the third phase of the Rani Jamara Kulariya Irrigation Project. The project, jointly implemented by the Department of Water Resources and Irrigation and the Department of Agriculture, aims to provide year-round irrigation to Kailali district in Sudurpaschim Province, enhance crop yields, and improve resilience to climate change.

The irrigation project is expected to benefit around 160,000 people and expand irrigation coverage to an additional 17,500 hectares.