World Bank Approves $257 Million Loan to Nepal for Electricity and Irrigation Upgrades

Kathmandu — The World Bank has approved a $257 million concessional loan to Nepal to strengthen its electricity distribution network and modernize key irrigation infrastructure, in a move expected to bolster the country’s sustainable development efforts.

In a statement released on May 29, the World Bank confirmed that its Board of Executive Directors sanctioned funding for two transformative projects. Of the total amount, $120 million has been earmarked for the Electricity Supply Reliability Improvement Project, which will upgrade the distribution network across Koshi, Bagmati, Karnali, and Sudurpashchim provinces.

The project, to be implemented by the Nepal Electricity Authority (NEA), includes the construction of new substations, significant network upgrades, and the deployment of a real-time monitoring system aimed at enhancing operational efficiency and service reliability.

The remaining $137 million will finance the Modernization of the Rani Jamara Kulariya Irrigation Project – Phase 3, focused on expanding year-round irrigation services in the Kailali district. Jointly managed by the Department of Water Resources and Irrigation and the Department of Agriculture, the project will directly benefit an estimated 160,000 people and provide irrigation to an additional 17,500 hectares of farmland.