World Bank approves $257 million to improve electricity and irrigation services

The World Bank’s Board of Executive Directors approved two projects for Nepal on May 29 totaling $257 million aimed at enhancing electricity distribution services and improving irrigation services to boost agricultural productivity.

The Electricity Supply Reliability Improvement Project ($120 million) will strengthen the electricity distribution network and enhance electricity supply to users in Koshi, Bagmati, Karnali, and Sudurpashchim provinces. The project, led by Nepal Electricity Authority (NEA), will focus on constructing new distribution substations, upgrading existing networks, and implementing an automated system for real-time monitoring of distribution networks to enhance operational efficiency, a press note issued by the multilateral lending institution reads.

The Modernisation of Rani Jamara Kulariya Irrigation Project - Phase 3 ($137 million) aims to improve irrigation services and agricultural productivity by expanding access to year-round irrigation services, increasing farm productivity, and enhancing climate resilience in Kailali district, Sudurpaschim Province, it reads, adding "Jointly implemented by Department of Water Resources and Irrigation and Department of Agriculture, this project will scale year-round irrigation to an additional 17,500 hectares benefiting 160,000 people."

“An uninterrupted electricity supply and adequate, year-round irrigation services are fundamental inputs for Nepal’s sustainable development,” said Country Division Director for Maldives, Nepal, and Sri Lanka David Sislen. “The projects emphasise improved connectivity and the promotion of clean electricity generated from hydropower, alongside integrated agricultural support services to farmers to help build resilience against climate and disaster risks.”

The projects also include capacity-building initiatives for the Nepal Electricity Authority and the Water Users Association to promote innovative solutions and strengthen institutional systems for the effective management and sustainability of infrastructure.

Nepal, ADB sign grant agreement of Rs 21.23 billion for two projects

The government and Asian Development Bank (ADB) today signed a concessional loan and grant agreement of $157 million (approximately Rs 21.23 billion), at the Finance Ministry, for the implementation of the Mechanised Irrigation Innovation Project (MIIP) and the Climate Resilient Landscapes and Livelihoods Project (CRLLP).

The grant agreement amounting to $15 million and loan agreement amounting to $110 million for the implementation of MIIP was signed by finance secretary Dr Ram Prasad Ghimire and Country Director of the Nepal Resident Mission ADB Arnaud Cauchois, on the behalf of the government and ADB, respectively, according to the Finance Ministry.

According to the agreement, the MIIP will introduce advanced irrigation technologies, including a prepaid card system allowing framers to access water based on their field's need. "The project will be enforced in the Rautahat and Sarlahi districts of Madhes Province, benefitting over 121,000 farmers."

The primary objectives of the project are to improve agricultural productivity, ensure year-round irrigation and contribute to food security. Additionally, this project will adopt Design, Build and Operate (DBO) modality and establish an irrigation management company for the long-term sustainability of groundwater irrigation system in the region.

Similarly, the grant amounting to $22 million and loan agreement amounting to $10 million for the implementation of CRLLP was also signed by joint-secretary at the Finance Ministry Dhani Ram Sharma and Country Director of Nepal Resident Mission, ADB Arnaud Cauchois, on the occasion.

The CRLLP stresses enhancement of climate resilient rural communities in the Karnali and Sudurpaschim provinces, which are highly vulnerable to the impacts of climate change, a press note issued by the Finance Ministry reads. "The project is aimed at addressing water insecurity, promoting nature-based livelihoods and empowering local communities through the sustainable management of water resources." The project further stresses empowerment of communities to adapt to climate challenges by fostering sustainable water management, agroforestry, silviculture and forest management.

The project will also play a crucial role in improving water security by addressing the region's vulnerability to climate-induced challenges, it claims.

After the signing of the agreement, finance secretary Ghimire expressed his gratitude to ADB for its continued support and partnership. He emphasised that these projects would not only enhance irrigation infrastructure but also spur climate resilience among some of Nepal's most vulnerable communities.

Similarly, Country Director of ADB Cauchois, on the occasion, underlined the key features of these projects, the financing modalities and their importance to Nepal's economy, reaffirming ADB's commitment to supporting Nepal's development goals—particularly in the areas of climate adaptation, agricultural productivity and water security.

Electricity consumed for irrigation use will be free: Minister Bhusal

Minister for Energy, Water Resources and Irrigation Pampha Bhusal today announced to make the electricity consumed for irrigation free of cost.

Stressing the need for making the agriculture sector independent and supporting the country’s economy, she decided to make the use of electricity free of cost for irrigation purposes.

The government had reduced the cost of electricity used for irrigation by 50 per cent on November 9 last year, she said, adding that the cost has been made free for irrigation purpose.

She also emphasised on increasing the export of handicrafts to strengthen economy.

Speaking at the 41st Annual General Meeting of the Nepal Handicraft Federation, in Kathmandu today, she also urged the business people not to import goods that are produced in Nepal.

India provides Rs 180.74m for river training works

Indian ambassador to Nepal Manjeev Singh Puri today handed over a cheque of Rs 180.74 million to secretary at the Ministry of Energy, Irrigation and Water Resources Sanjay Sharma for river training and construction of embankments.
The amount handed over for river training – in the presence of energy minister Barsha Man Pun – and construction of embankments along Lalbakeya, Bagmati and Kamla rivers in the plains, according to a press release issued by the Embassy of India in Kathmandu, today.
The river training and embankment works in the Lalbakeya, Bagmati and Kamla rivers aimed at flood control and water resources management, which will benefit millions of people inhabiting in the watershed of these rivers in India and Nepal, it reads, adding that the government of India has so far given 13 installments since 2008 to Nepal for the river training and embankment works totaling to over Rs 4.68 billion.
India remains committed to continue working closely with Nepal for further cooperation in the field of river training, flood control and water resources management in these and other rivers, the press release adds.