KATHMANDU: The World Bank (WB) has approved some Rs 12 billion loan to Nepal to reform electricity sector and boost recovery from COVID-19 crisis.

The World Bank Board of Executive Directors today approved the Development Policy Credit (DPC) of some Rs 12 billion to continue support to the Nepal government in improving the financial viability and governance of the electricity sector and recovering from the COVID-19 crisis, said a press release issued by WB Head Office in Washington DC.

The approved operation, as per the release, is the second in a series of three DPC operations to support key policy, regulatory and institutional reforms to unlock the economic potential of Nepal’s electricity sector.

These include measures to improve the financial viability of the Nepal Electricity Authority (NEA) as the sole off-taker; establish a regulatory framework that is autonomous, transparent, and accountable; achieve greater integration with the regional electricity market to ensure the optimal use of Nepal’s hydropower resource; and restructure NEA to empower provincial and local governments under the federal structure.