The project comprises priority investments in electricity transmission infrastructure in Nepal, including: the construction of one new 132 kV transmission line with a length of 24 km, five new 220 kV transmission lines with a combined length of 330 km and one new 400 kV transmission line with a length of 45 km; the construction of 8 new substations; and the upgrade of 11 existing substations. The investments are located in the Central and Western Development Regions of Nepal, primarily in the Kali Gandaki and Marsyangdi corridors.
The project comprises the construction and operation of high-voltage transmission lines and substations to meet domestic demand and also to enhance cross-border power trading capacity. 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 project is in line with the EU priority objectives of promoting renewable energy, tackling climate change and poverty reduction.
The project includes high voltage transmission lines that would fall under Annex I of Directive 20011/92/EU if located within the EU and would require an EIA. Under Nepalese legislation, these require an Initial Environmental Examination (IEE), except for lines in protected areas which require a full EIA. The additional analysis required to meet the Bank’s Environmental and Social principles and standards, as well as public consultation procedures to be applied and details of the environmental management programme, will be reviewed during appraisal.
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.
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).
General enquiries and comments
The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.
Zero tolerance against fraud and corruption
The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.