NEPAL GRID DEVELOPMENT PROGRAMME

This project comprises the construction of high voltage transmission infrastructure required to evacuate electricity from newly-constructed hydropower plants in the Trishuli River basin into the national grid, as well as a rural electrification component to supply power to communities in the vicinity of the project areas. The project also includes an upgrade of the national Load Dispatch Centre (LDC).

The project will deliver new supplies of hydroelectricity to meet increasing demand in Kathmandu and the rest of Nepal. As such, it will address the shortage of power in the Nepalese grid as well as the efficient integration of new generation capacity from renewable sources (hydropower).

The promoter has conducted initial environmental examinations that indicate that the impacts of the main project components are moderate, within acceptable limits and can generally be mitigated. The majority of the land required for the transmission line will be available for cultivation after completion. A limited number of households will be affected, and no existing residences will require relocation. Detailed environmental & social management and land acquisition & compensation plans will be prepared prior to the start of any construction activities. The Bank will ensure that appropriate measures are taken to protect the environment and the rights of people affected by the project, and to avoid, reduce, mitigate and compensate for the impacts.

The Bank will require the promoter to ensure that implementation of the project is carried out in accordance with the Bank's Guide to Procurement as applicable to operations in the public sector.

This operation is covered by the EU Guarantee for EIB loans outside the EU.