The World Bank has signed off a US$130 million credit line for solar farms in Nepal.
The funding is to help tackle an energy shortage in Nepal, which currently suffers from severe energy shortages of up to 18 hours a day.
The project is aiming to increase the supply of power through a series of grid-connected solar power plants and to reduce distribution losses.
In the first phase of the project, the funding will support the design, construction and operation of 25MW of solar farms, which will supply power to the Nepal Electricity Authority’s (NEA) distribution network.
The second phase will involve the creation of a ‘distribution loss reduction master plan’ and the implementation of loss reduction projects in various NEA areas.
“Reliable electricity is crucial for Nepal to achieve its full growth potential,” said Takuya Kamata, the World Bank’s country manager for Nepal. “This project will not only address short-term measures of introducing solar power generation into the system but will also contribute to reduction of distribution losses."
The credit carries a six-year grace period and a maturity of 38 years.