June 4, 2020 | Investopaper
World Bank will provide a loan of $100 million (approximately Rs. 12 billion) for the financial security of Nepal’s power sector, promotion of good governance and relief from the Corona effect.
The loan will be disbursed for the second phase out of three under the development policy credit, the bank said. The World Bank has stated that it will spend on the necessary policy, institutional and regulatory aspects to promote the economic potential of Nepal’s power sector.
This assistance will be used to improve the financial stability of Nepal Electricity Authority (NEA), establish Nepal’s access to electricity in the regional market and mobilize funds in the areas of restructuring of NEA.
Faris Hadad Jarvos, Nepal Manager of the World Bank, said that it was important to improve Nepal’s power sector during and after the crisis.
It is mentioned in the release that Nepal has made great progress in recent times by increasing power generation, controlling leakage, building inter-country transmission lines and ending load shedding.
The World Bank has also stated that the Corona impact will be addressed from the third package loan under the development loan policy by evaluating the immediate, medium and long term impact of the power sector in Nepal.