KATHMANDU: The Asian Development Bank (ADB) has approved a $200 million concessional loan for improving the power supply and distribution systems in Nepal.

Nepal has made significant progress in electricity supply after years of chronic power shortages.

However, its power transmission and distribution systems need further strengthening to increase network capacity, improve quality and reliability, and remove delays between generation hubs and load centers, according to the ADB.

The project will finance the reinforcement and modernization of the power supply system in Kathmandu Valley, Bharatpur metropolitan area of Chitwan district in Bagmati Province and Pokhara of Kaski district in Gandaki Province, where supply interruptions are frequent and prolonged.