KATHMANDU, Sept 20: The World Bank has approved its first loan of US$ 100 million to strengthen the finances and operations of the energy sector in Nepal.
The Nepal Energy Sector Development Policy Credit is to deliver reliable, affordable and sustainable power to the Nepali people. It aims to implement key policy, regulatory and institutional measures, according to a statement issued by the World Bank.
“These include improving the financial viability of the Nepal Electricity Authority (NEA) as the sole off-taker; establishing a regulatory framework that is transparent, autonomous, and accountable; encouraging electricity trade; and restructuring NEA to make it easier for the private sector to compete in the energy sector,” the multilateral lender added in the statement.
Faris Hadad-Zervos, World Bank Country Manager for Nepal, said in the statement that the proposed credit aims to support the restructuring and market reform of the electricity sector to improve governance and performance of electricity institutions, eventually enhancing quality and efficiency in services. “Our goal is to seek integration into the regional electricity market and create a competitive wholesale market,” he added in the statement.