KATHMANDU: The European Investment Bank (EIB) will provide Rs 12.4 billion grant to the Government of Nepal for its electricity system upgradation project.

In this regard, chief of the International Economic Cooperation Coordination Division, the Ministry of Finance, Shree Krishna Nepal, Maria Baragon, director of the Department in the EIB, Maria Shaw-Barragan and legal counsel at the EIB, Borja Oxangoiti jointly signed a loan agreement amid an event recently.

The grant would be utilised in expanding electricity access, increase electricity supply and facilitate power trade in state 5, Karnali state and Far Wes state, the Ministry of Finance said, adding that the Nepal Electricity Authority, the state-owned parent generator and distributor of electric power, aims to complete the project by December, 2023.