WB offers loan for power transmission project
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KATHMANDU, OCT 06 - The World Bank (WB) is ready to provide loan to India through Nepal for construction of 400 KV Cross-Border Electricity Transmission lines, the project stalled for the last three years due to financial constraint.
The global financial body has also decided to provide loan for Nepal to construct transmission lines falling on its side along the border.
In a meeting held with the Nepal Electricity Authority on Monday, the WB decided this. The WB proposal to provide financial assistance for the Cross Border Transmission Line project joining Dhalkebar in Nepal and Mujaffarpur, India was discussed during the meeting.
A team led by Raghuveer Sharma, team leader, Cross-Border Energy Program, Michael Haney and Pravin Karki, both senior energy specialists among others represented the WB and are on a four-day visit to Nepal starting from Monday
to discuss on various
power issues including the construction of the transmission lines along the
border area.
The total project cost of Nepalese portion of total 45 kilometer is Rs 2, 263 million and for Indian portion is Rs 2, 352 million. The Indian government through soft loan has provided Rs 13.2 million to Nepal for the Nepal portion.
In mid 2006, IL & FS and Power Trading Corporation, India and NEA had decided to construct the Cross-Border Transmission lines by the end of December this year by establishing a separate joint venture company in Nepal.
Detailed feasibility study, design and Environment Impact Assessment among others were already carried out but due to the failure of the Indian company, IL & FS to mobilise money for the Indian part, the overall construction works was stalled.
Meanwhile, the World Bank is also positive to support upgrading the 132 KV East-West transmission lines which is needed after to supply the excess power imported from India through Dhalkebar to western parts of the country.
At the same time, NEA has also proposed the WB team to facilitate the supply of the electricity generation by the undergoing 456 Upper Tamakoshi Hydro Electricity Project.
Posted on: 2009-10-06 07:50
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