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WB to provide Rs 2 billion for Kabeli Corridor

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KATHMANDU, June 23: In a series of financial assistance commitment for expansion of transmissions lines, the World Bank has agreed in principle to provide Rs 2 billion in loans for yet another transmission line project. WB has agreed to provide loans to construct Kabeli Corridor transmission line in eastern Nepal.



According to a highly-placed source at Nepal Electricity Authority, the construction of 70 km transmission line will cover major stations like Damak, Ilam, and Phidim of Panchthar. The final agreement is expected to complete within six months. [break]



WB has already committed to provide loan and grant assistance for the construction of Pathlaiya Sub-station, Hetauda-Bharatpur-Bardaghat 220 KV transmission line, Duhabi-Hetauda 400 KV transmission line and Khimti-Dhalkebar transmission line, among others.



Energy Minister Dr Prakash Sharan Mahat said the donor communities´ commitments to provide assistance on electricity projects was encouraging. “We are working on for the expansion of transmission lines as they are very important for the development of hydropower projects,” he added.



Kabeli Corridor transmission line project will have the capacity of transmitting around 150 Megawatt (MW) of electricity. According to ministry source, the construction of the transmission line is expected to cost Rs 900 million and the remaining amount would be used to construct sub-stations at different locations.



Nepal Electricity Authority (NEA) has already completed survey of the country and the state-owned power monopoly is conducing Initial Environmental Examination (IEE) of the project. The project is expected to complete in 2012/13.



WB has asked us to prepare the tender document for the project, a source at Energy Ministry told myrepublica.com.



This transmission project is expected to facilitate transmission of power generated by several hydropower projects that have already signed power purchase agreement with NEA.



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