July 22, 2003
 Grant Assistance for the Extension and Reinforcement of Power Transmission and Distribution System
in Kathmandu Valley (Phase III)
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The Government of Japan has agreed to extend Grant Assistance up to one billion, three hundred and eighty million yen ( 1,380,000,000), approximately eleven million, six hundred and forty-nine thousand US dollars (US$11,649,000), or about eight hundred, seventy million seven hundred and eighty thousand Nepalese Rupees (NRS.870,780,000) to His Majesty's Government of Nepal, for the execution of the project for the Extension and Reinforcement of Power Transmission and Distribution System in Kathmandu Valley (Phase - III) in Japan's FY 2003.
This project is based on the proposed 'Master Plan Study' made by Japan International Cooperation Agency (JICA) in 1990 on the request of His Majesty's Government of Nepal. In the Master Plan, a tangible plan was proposed targeting the improvement of the power supply system in the Kathmandu Valley for a reliable power supply and decreasing power loss by reinforcing the transmission and distribution network. Based on the Feasibility Study conducted in 1991, several urgently required measures were identified for extension and reinforcement of the power transmission and distribution system in Kathmandu Valley.
Responding to the study, the Government of Japan extended Grant Assistance for the project for the Extension and Reinforcement of Power Transmission and Distribution System in Kathmandu Valley (Phase - I and Phase - II) in JFY 1992 to 1993, and JFY1994 to 1995 respectively, with the total amount of five billion, two hundred and twenty-four million Yen (5,224,000,000). In addition to these projects, the Government of Japan has extended sixteen million yen (16,000,000) to His Majesty's Government of Nepal for the detailed design of Phase - III of the project in JFY 2002. Following on from these projects, today's grant is going to be utilized for the execution of Phase - III of the project.
In this context, a set of Notes was signed and exchanged today between His Excellency Mr. Zenji Kaminaga, Ambassador of Japan to the Kingdom of Nepal, and Mr. Bhanu Prasad Acharya, Secretary of the Ministry of Finance, on behalf of their respective governments.
Under these Notes, His Majesty's Government of Nepal will utilize the grant to purchase the products and services necessary for the construction of a sub-station and other related facilities as well as for the installation of equipment.
The project to be implemented under this grant is expected to contribute to address the need for an effective power transmission and distribution system for Kathmandu Valley in order to increase the capacity of presently available physical facilities for reliable power transmission and distribution to the consumers of Kathmandu Valley in the days to come.
On the occasion, H.E. Mr. Kaminaga expressed his sincere belief that after implementation of this project, the power transmission and distribution capacity of NEA would be considerably enhanced and the consumers of Kathmandu Valley could have a more reliable power supply. He also expressed hope that the continued support of the Government of Japan to His Majesty's Government of Nepal in its development efforts would certainly help promote Nepal's efforts for nation-building and improve the well-being of the people. This support would also help to strengthen the existing cordial relationship of friendship and cooperation between the two nations.
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