The government has decided to issue “Energy Bonds” worth 20 billion rupees to fund the construction of hydropower projects. With the approval of this proposal by the Cabinet meeting held on Thursday, the path has been opened to advance new hydropower projects in the country.

At the initiative of the Ministry of Energy, Water Resources, and Irrigation, the Nepal Electricity Authority (NEA) is preparing to issue energy bonds in phases to manage financial resources. This government decision aims to strengthen long-term energy security, increase investment flows in hydropower projects, and make electricity supply more reliable.

According to the Authority, ensuring energy security and strengthening electrical infrastructure are the main priorities for providing a reliable electricity supply.

It is estimated that an investment of around 600 billion rupees will be required over the next five years to strengthen energy security. Of this amount, about 400 billion rupees will be sourced from foreign investment, while the remaining 200 billion rupees will be raised from domestic sources.

During this period, priority will be given to advancing reservoir-based projects such as Upper Arun (1,063 MW), Utterganga (828 MW), Dudh Koshi (670 MW), and Sunkoshi-3 (683 MW), as well as the semi-reservoir project Jawa Tila (70.37 MW).

Similarly, the Authority has put forward plans to accelerate the construction of national grid and cross-border transmission networks, including the New Butwal-Lamahi, Tingla-Dudh Koshi-Dhalkebar, and Arun-Inaruwa 400 kV transmission lines, as well as Inaruwa-New Purnia, Lamki-Bareilly, Chamelia-Jauljibi, and Chilime-Kerung 220 kV cross-border transmission lines.

Similarly, plans have been made to expand the smart distribution system in the Kathmandu Valley and to monitor and control electricity supply 24 hours a day through the distribution control center established in Syuchatar. In collaboration with the Government of Nepal, the Nepal Electricity Authority (NEA), and development partners, the Authority has also set a target to achieve full electrification across all districts within the next two years.

The funds raised through the energy bonds are expected to be used for the construction of new hydropower projects and transmission infrastructure, while also helping to maintain the financial balance of the Authority, reduce debt burden, and enhance investor confidence.

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