Nepal: Power Distribution System Upgrade and Expansion Project (AIIB-000086)

  • Nepal
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Sep 1, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
The holder of the loan, grant, or other investment.
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 107.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Mar 8, 2019

Disclosed by Bank May 10, 2018

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Project Description

The project objective is to increase access to electricity and reduce distribution system losses in the western and far-western regions of Nepal.

According to AIIB documents, this project has the following components:

Component 1: Construction of new 33/11kV substations, related lines, and facilities.
This component will comprise activities relating to the construction of new substations and related lines, including, but not limited to: construction of new 33/11 kV substations; 33 kV supply lines; 11 kV feeders; installation of distribution transformers; placement of LV capacitor banks and regulators where needed; and connecting new consumers.

Component 2: Upgrading and rehabilitation of existing 33/11kV substations, related lines, and facilities

Component 3: Construction of new integrated compact substations, related lines and facilities, where needed

Component 4: Capacity Building, Project Implementation Support, and Technical Assistance

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)

The funding for this project is:

AIIB - 100 million USD
NEA - 7 million USD

Contact Information

Asian Infrastructure Investment Bank (AIIB)
Jeesun Han
Project Team Leader / Investment Operations Specialist- Energy
Tel: +86 10 8358 0277

Yug Raj Pandey
Under Secretary, Ministry of Finance, Government of Nepal
Tel: +977 1 421 1372

Implementation Agency
Vijay Kumar Chaudhary
Deputy Manager, Distribution and Consumer Services, Nepal Electricity Authority
Tel: +977 1 415 3253



In addition, the AIIB has a Bank Oversight Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be.