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Photo courtesy: Secretariat of Minister Shrestha

The Asian Infrastructure Investment Bank (AIIB) has committed to supporting the integrated upgrading of Nepal’s transmission and distribution systems, as well as post-disaster recovery and reconstruction.

The commitment was made during a meeting between Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha and an AIIB delegation led by Director General Rajat Mishra at the Energy Ministry on Thursday.

The AIIB also expressed interest in developing digital infrastructure in the power system and providing technical support for disaster preparedness and early warning systems, drawing lessons from the recent Bhote Koshi River flood in Rasuwa.

During the meeting, Minister Shrestha proposed cooperation to develop Nepal’s energy sector into a regional energy hub, saying the sector is being advanced as a major pillar of the country’s economy. He thanked the AIIB for its support to the energy sector and said technical damage assessments following the Bhote Koshi flood are underway.

Shrestha said AIIB-supported transmission lines, substations and distribution systems in Surkhet, Salyan, Jajarkot, Kalikot, Rukum Paschim, Jumla, Mugu and Humla in Karnali Province, and Dang, Banke, Bardiya and Rolpa in Lumbini Province, have contributed to social justice.

He expressed confidence that the bank would provide further support for distribution systems and transmission lines to increase domestic electricity consumption in other urban and semi-urban areas.

Shrestha said special cooperation from development partners such as the AIIB is essential to achieve Nepal’s target of producing 30,000 megawatts of electricity within the next 10 years.

He also said Nepal is working to strengthen its early warning systems. Following the Bhote Koshi flood, the flood forecasting period has been extended from three days to five days, he said.

Shrestha said preparations are also underway to identify policy weaknesses in the electricity sector and create a conducive environment for investment by the private sector and development partners. He said key policy recommendations from infrastructure partners such as the AIIB are expected to help the process.

The AIIB delegation reiterated its commitment to supporting the integrated upgrading of Nepal’s transmission and distribution systems and post-disaster recovery and reconstruction.