An agreement between the Government of Nepal (GoN) and the International Development Association (IDA) of the World Bank Group to generate 25MW of solar photovoltaic generated electricity was signed today.
The agreement gives US$130 million (12 Arba 92 Crores 59 Lakhs Nepalese Rupees) to the GoN to establish a grid solar and energy efficient project.
The goals of this project are to produce 25MW of solar photovoltaic electricity within 2015, as well as to reduce the systemic electricity distribution losses to 10% by the end of the project. Currently, the systemic electricity distribution loss reduction is estimated at 25% of the generation.
The project is expected to be completed in June 2020, and is being financed through a subsidiary loan agreement by the GoN to the Nepal Electricity Authority.
The agreement was signed by a representative for the GoN, Madhu Kumar Marasini, joint secretary, ministry of finance, as well as Takuya Kamata, country manager, Nepal country office of the World Bank on behalf of the World Bank.