On May 29, the World Bank’s Board of Executive Directors approved two major projects for Nepal totaling $257 million. These projects aim to strengthen electricity distribution and improve irrigation infrastructure to enhance agricultural productivity and build climate resilience.
The Electricity Supply Reliability Improvement Project, with funding of $120 million, will focus on enhancing electricity supply in Koshi, Bagmati, Karnali, and Sudurpashchim provinces. Led by the Nepal Electricity Authority, the project will construct new distribution substations, upgrade existing networks, and introduce automated systems for real-time network monitoring to boost operational efficiency.
The Modernization of Rani Jamara Kulariya Irrigation Project – Phase 3, valued at $137 million, targets the Kailali district in Sudurpaschim Province. It will expand year-round irrigation services to an additional 17,500 hectares of farmland, benefitting around 160,000 people. The project will be jointly implemented by Nepal’s Department of Water Resources and Irrigation and the Department of Agriculture.
David Sislen, Country Director for the Maldives, Nepal, and Sri Lanka, emphasized the importance of reliable electricity and irrigation systems for Nepal’s sustainable development. He noted the projects’ contributions to clean hydropower use, improved agricultural services, and resilience against climate and disaster risks.
Both projects include capacity-building programs for the Nepal Electricity Authority and Water Users Associations to support long-term sustainability and the adoption of innovative infrastructure management solutions.
