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    Reference: 20130599
    Release date: 16 April 2014

    Promoter – Financial Intermediary

    The promoter is Nepal Electricity Authority (NEA) a wholly state-owned company.



    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.


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


    Proposed EIB finance (Approximate amount)

    EUR 95 million

    Total cost (Approximate amount)

    EUR 270 million

    Environmental aspects

    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.


    Signed - 20/04/2015


    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
    They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Nepal Energy