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  ADB’S SASEC PROJECT: Transforms Nepal’s Electricity Supply

Nine years ago, when the project began, Nepal’s infrastructure was inadequate to supply the quality electricity demanded by its people. Today, SASEC PTDSSP successfully reinforces and modernizes the power supply system in Kathmandu Valley, Madhesh Province, and selected areas in Bharatpur and Pokhara. The investment is also supplemented by technical assistance co-financed by the Government of Norway and administered by ADB. The NEA serves as both the executing and implementing agency for the project.

Leadership and Local Expansion

Appointed as Managing Director with a commitment to end rolling blackouts (load-shedding) and supply quality electricity to households, Kulman Ghising strongly backed this project throughout his seven and a half years of leadership. Although Ghising was briefly removed from his post to serve as a minister, the project's journey demonstrated that dynamic and stable leadership is key to successfully completing large-scale infrastructure projects.

In Madhesh Province, the project has supported extensive distribution network expansion. This includes constructing 350 circuit-km of 33 kV lines, 1,000 circuit-km of 11 kV lines, and 960 circuit-km of low-voltage lines across eight districts. These efforts will significantly improve reliability, reduce technical losses, and enhance electricity access and service quality.

Institutional Growth and Future Visions

Arnaud Cauchois, the Asian Development Bank Country Director for Nepal, recently addressed a SASEC program titled “Powering Inclusive Energy Access in Madhesh Province and Pathways for Scaling-Up.” He acknowledged the leadership of the Government of Nepal and the NEA, alongside the generous support of the Government of Norway and all participating stakeholders. Their collaboration has brought tangible benefits to women and disadvantaged communities in Madhesh Province.

“While investments in transmission and distribution are fundamental to improving reliability, the technical assistance demonstrates how inclusion, innovation, and community engagement translate these efforts into real development outcomes," Cauchois said. "This contributes to Nepal’s broader energy transition and economic development priorities." He highlighted three key lessons from the project:

Infrastructure Alone is Insufficient: Access to electricity is just the first step. True livelihood transformation requires complementary skills, finance, and market access. Moving from Policy to Practice: Advancing gender inclusion requires sustained institutional capacity and dedicated leadership.

Ensuring Reliability: As investments expand, maintaining a reliable grid is critical to enabling productive energy use and supporting the transition away from fossil fuels. Going forward, stronger coordination across institutions is essential to link infrastructure investments with livelihoods and inclusion outcomes. This alignment will help achieve Nepal’s target of 1,500 kWh per capita consumption by 2035. The NEA is now positioned to further integrate last-mile electrification and inclusion into its core business processes.

Furthermore, the insights gained from this project have already informed new transmission and distribution programs in Karnali Province, which will be supported by the Government of Norway and the Delegation of the European Union to Nepal.

Real Impact on Communities

The social and community-focused initiatives - implemented through technical assistance from ADB and Norway in partnership with Hivos, CRT, NACEUN, and CCA - have yielded remarkable results:

Entrepreneurship: More than 400 entrepreneurs received training in business and technology skills linked to energy improvements.

Vocational Skills: Upward of 200 individuals were trained in technical and vocational skills, such as mobile repair, motor repair, and heavy equipment operation, to unlock employment opportunities.

Clean Cooking: More than 1,000 households adopted electric cookstoves in Madhesh Province, promoting cleaner and safer cooking practices.

Direct Welfare: Around 1,300 impoverished households directly benefited from targeted project support.

Public Awareness: More than 476 awareness campaigns were conducted via radio programs, street dramas, and community outreach, focusing on electrical safety, energy conservation, productive use of electricity, and the prevention of electricity theft.

Institutionalizing Equality and Safety

The project reinforced the NEA’s continued commitment to Gender Equality and Social Inclusion (GESI), following a strategy endorsed by the NEA board in 2020. A total of 556 NEA staff members have been oriented and trained on GESI and the NEA’s GESI Strategy and Operational Guidelines.

To foster a safe and respectful working environment, the NEA has endorsed key policy interventions. These include the Procedures for the Establishment and Operation of Child Care Centers, 2082 (B.S.), the Code of Conduct Against Gender-Based Violence and Sexual Misconduct in the Workplace, 2082 (B.S.), and the active promotion of occupational health and safety across all project sites.

Infrastructure Upgrades and Strategic Alignment

"This project represents one of the most significant initiatives aimed at strengthening Nepal’s electricity transmission and distribution system, particularly in Madhesh Province," said Dirghayuman Singh Pradhan, Acting Managing Director of NEA. "It ensures that the benefits of reliable electricity reach communities, households, enterprises, and vulnerable groups."

Under this framework, the NEA is executing major physical improvements. Multiple 33/11 kV distribution substations are being developed - including the Pokhariya substation - alongside the construction of the Parwanipur–Pokhariya 132 kV transmission line and the upgrading of the Pathlaiya–Parwanipur transmission corridor using advanced, high-capacity conductors.

Close coordination with local governments and community partners has been vital for community awareness, electric cooking promotion, enterprise development, and system upgrades. Initiatives such as free meter support from the NEA have contributed significantly to expanding access and encouraging productive electricity use.

The session was also addressed by Dagny Mjos, Ambassador of Norway, and Ambassador Veronique Lorenzo of the Delegation of the European Union to Nepal. Implementing partners included HIVOS/ENERGIA, the Centre for Rural Technology Nepal, NACEUN, and the Clean Cooking Alliance.

As the government unveils its “Energy Consumption Increase and Export Strategy, 2083” - which targets a total production of 24,500 megawatts of electricity by the fiscal year 2092/93 through public and private investments - the infrastructure improvements made under SASEC will immensely contribute to Nepal’s national energy security and economic transformation.

[ 30 Jun 2026 / Spotlightnepal.com ]   
 

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