The World Bank (WB) has approved a loan totaling $257 million aimed at enhancing electricity distribution services and improving irrigation services to boost agricultural productivity.

The World Bank’s Board of Executive Directors on May 29 approved the loan for two projects for Nepal, the WB stated in a press release.

The Electricity Supply Reliability Improvement Project ($120 million) will strengthen the electricity distribution network and enhance electricity supply to users in Koshi, Bagmati, Karnali, and Sudurpashchim provinces.

The project, led by Nepal Electricity Authority, will focus on constructing new distribution substations, upgrading existing networks, and implementing an automated system for real-time monitoring of distribution networks to enhance operational efficiency, it said.

The Modernization of Rani Jamara Kulariya Irrigation Project - Phase 3 ($137 million) aims to improve irrigation services and agricultural productivity by expanding access to year-round irrigation services, increasing farm productivity, and enhancing climate resilience in Kailali district, Sudurpaschim Province. Jointly implemented by Nepal’s Department of Water Resources and Irrigation and Department of Agriculture, this project will scale year-round irrigation to an additional 17,500 hectares benefiting 160,000 people.

“An uninterrupted electricity supply and adequate, year-round irrigation services are fundamental inputs for Nepal’s sustainable development,” said David Sislen, Country Division Director for Maldives, Nepal, and Sri Lanka.

“The projects emphasize improved connectivity and the promotion of clean electricity generated from hydropower, alongside integrated agricultural support services to farmers to help build resilience against climate and disaster risks.”

The projects also include capacity-building initiatives for the Nepal Electricity Authority and the Water Users Association to promote innovative solutions and strengthen institutional systems for the effective management and sustainability of infrastructure.