Concept Project Information Document (PID) (English)

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Table of Contents

• The World Bank 1
• The World Bank 2
• BASIC INFORMATION 2
• A. Basic Project Data 2
• Proposed Development Objectives 2
• PROJECT FINANCING DATA US Millions 2
• Maximizing Finance for Development 2
• Is this an MFD-Enabling Project MFD-EP 2
• Is this project Private Capital Enabling PCE 2
• SUMMARY 2
• Total Operation Cost 160.00 2
• Total Financing 160.00 2
• Financing Gap 0.00 2
• DETAILS 2
• World Bank Group Financing 2
• The World Bank 3
• Non-World Bank Group Financing 3
• B. Introduction and Context 3
• Nepals economy has rebounded from the 2015 earthquakes and the 2020 COVID-19 pandemic resulting in a 3
• Nepals economic and social development has been hampered by an inadequate primary energy supply and 3
• The World Bank 4
• Nepal has significant clean energy resources to enable rapid economic growth and development 4
• Electricity sector in Nepal is managed by the Ministry of Energy Water Resources and Irrigation MoEWRI 4
• Nepal Electricity Authority NEA independent power producers IPPs and Alternative Energy Promotion Centre 4
• AEPC are the main service providers in the electricity sector 4
• Expansion of domestic clean energy generation capacity enabled to increase electricity service access and help 4
• The World Bank 5
• The Government is committed to developing a reliable affordable clean and sustainable energy sector that is 5
• Nevertheless the electricity sector is currently facing the challenges of major investment needs in new generation 5
• The Government is tackling the above challenges with use of own resources and support from development 5
• The proposed Project is fully aligned with the WBGs latest Country Partnership Framework CPF Report No.121029-NP dated July 10 2028 for Nepal 5
• Furthermore it also supports the Green Resilience and Inclusive Development GRID which prioritizes harnessing Nepals renewable energy potential and improving air quality. 5
• The World Bank 6
• C. Proposed Development Objectives 6
• D. Concept Description 6
• The proposed project consists of the following components Component 1 Strengthening of NEA Distribution Network and Commercial systems US148 million to be fully 6
• Sub-component 1.2 Strengthening of NEA Commercial Systems estimated cost of US30 million to be fully 6
• The World Bank 7
• Component 2 Supporting Transition to Electric Cooking estimated cost of US9 million to be financed with 7
• ESMAP Grant 7
• Component 3 Technical Assistance US3 million to be financed with US2 million IDA credit and US1 million 7
• ESMAP grant 7
• Sub-component 3.1 Project Implementation Support to NEA estimated cost of US2 million to be financed by 7
• IDA credit 7
• Sub-component 3.2 Project Implementation Support to AEPC estimated cost of US1 million to be financed by 7
• ESMAP Grant 7
• Policies Triggered 7
• The World Bank 8
• CONTACT POINT 8
• World Bank 8
• BorrowerClientRecipient 8
• Ministry of Finance 8
• Implementing Agencies 8
• Nepal Electricity Authority 8
• Alternative Energy Promotion Center 8
• FOR MORE INFORMATION CONTACT 8
• APPROVAL 8
• The World Bank 9
• Approved By 9