June 4 : The World Bank (WB) has approved the Development Policy Credit (DPC) worth Rs 12 billion to continue support to the Nepal government in improving the financial viability and governance of the electricity sector and recovering from the COVID-19 crisis,.
According to a press release issued by the WB, the approved operation is the second in a series of three DPC operations to support key policy, regulatory and institutional reforms to unlock the economic potential of Nepal’s electricity sector.
These include measures to improve the financial viability of the Nepal Electricity Authority (NEA) as the sole off-taker; establish a regulatory framework that is autonomous, transparent, and accountable; achieve greater integration with the regional electricity market to ensure the optimal use of Nepal’s hydropower resource; and restructure NEA to empower provincial and local governments under the federal structure.
“Continued reforms to strengthen the electricity sector in Nepal is of utmost importance during the crisis and for post-crisis recovery,” Faris Hadad-Zervos, World Bank Country Manager for Nepal is quoted in the press statement.
“This operation will help refocus investment priorities and support the government’s commitment to develop a reliable, affordable, and sustainable electricity sector that supports poverty reduction and shared prosperity in the country.”
