The World Bank has approved two loans amounting to $508.4m for power projects in Nepal and Ukraine.
The first one for $130m is for the Grid Solar and Energy Efficiency Project in Nepal. It has been allowed for a 38 year maturity period, which can be further extended for a six year grace period.
The credit extension is expected to help the country meet its power shortages, thereby boosting its economic development.
The project includes plans for design, supply, construction, commissioning, operation and maintenance of grid connected solar farms in the country, having a combined capacity of 25MW.
The generated power from the solar farms will be directly connected to the Nepal Electricity Authority’s (NEA) distribution network.
The loan will also be used to come up with a Distribution Loss Reduction Master Plan and involve implementation of pilot loss reduction projects across NEA’s distribution centres.
World Bank country manager for Nepal Takuya Kamata said: “Reliable electricity is crucial for Nepal to achieve its full growth potential.
“This project will not only address short-term measures of introducing solar power generation into the system but will also contribute to reduction of distribution losses.”
The second loan of $378.4m is for the second power transmission project in Ukraine designed to strengthen the country’s energy infrastructure.
World Bank country director for Belarus, Moldova, and Ukraine Qimiao Fan said: “This investment will help rehabilitate the national power transmission network to improve Ukraine’s energy security and mitigate the impact of climate change.”
Besides integrating renewable power sources and applying smart grid solution for power transmission, the project will aim to improve the country’s Wholesale Electricity Market and Balancing Market mechanisms bringing it on par with the European Network of Transmission System Operators for Electricity.
The capital will be invested for designing and implementation of high-priority transmission system rehabilitation measures and upgrades for Ukraine’s national energy firm, Ukrenergo.
The funds will also be partially used to address reforms to the power sector under Ukraine’s Ministry of Energy and Coal Industry in compliance with the Energy Community rules and the EU Association Agreement.
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