Construction starts on EIB-backed transmission link in Nepal

The European Investment Bank (EIB) is providing a EUR-30-million (USD 34.22m) long-term loan to support a new transmission project in Nepal, construction on which started Thursday.

The Chilime-Trishuli transmission system is located in central Nepal and its main goal is to enable 600 MW of hydropower on the Trishuli River corridor to be connected to Nepal’s national electricity grid, allowing rural communities to benefit from renewable electricity, some for the first time.

Also, by upgrading existing electricity distribution infrastructure to enable a more reliable supply of energy, the transmission system will reduce the need for use of expensive generators and cooking fuels in rural communities, EIB pointed out.

The new 27-km transmission line will be built by the Nepal Electricity Authority and, in addition to EIB, will be financed by the European Union and German Development Bank KfW through technical assistance grants of EUR 2.25 million and EUR 14 million, respectively, as well as a EUR 19-million-grant from the Nepalese government.

(EUR 1 = USD 1.14)

Choose your newsletter by Renewables Now. Join for free!