The Asian Development Bank has agreed to provide credit assistance worth US$ 50 million (Rs 3.52 billion) to the Nepali government for the implementation of the Rural Electrification, Distribution and Transmission Project.
The Project is expected to provide electricity to about 154.000 households, with a population of 860.000. living in 240 village development committees of 22 districts. After the completion of the project. 18 percent of the Nepali people will have access to electricity, representing a 3 percent increase from the present 15 percent. The Project will also develop a 132 KV transmission system in the Kathmandu Valley and set up a computerised billing system at the Nepal Electricity Authority.
The ADB loan will cover most of the foreign exchange component of the project\'s estimated cost of US$ 94.5 million. But. as has been reported, it also comes with the rider that the Nepal Electricity Authority hike power rates by 30 percent.