February 26, 2003
 Japan Extends Grant Assistance for the Detailed Design of the Project for the Extension and Reinforcement of Power Transmission and Distribution System in Kathmandu Valley
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The Government of Japan has agreed to extend grant assistance up to sixteen million Yen ( 16,000,000), approximately one hundred and thirty-four thousand US dollars (US$134,000), or about ten million, four hundred and sixty-four thousand Nepalese Rupees (NRS.10,464,000) to His Majesty's Government of Nepal, for the detailed design of the project for the Extension and Reinforcement of Power Transmission and Distribution System in Kathmandu Valley (Phase - III) in Japan's FY 2002.
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 Kathmandu Valley for reliable power supply and decreasing the 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. In light of this, the Government of Japan had 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. Following on from these projects, today's grant is going to be utilized for 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 services necessary for the detailed design of the Project. The Project to be implemented under this grant is expected to contribute to the completion of the detailed design considering the need of effective power transmission and distribution system for Kathmandu Valley in order to meet the rapidly increasing demand, to discharge the increasing power supply capacity and to increase the capacity of the presently available physical facilities for reliable power transmission and distribution to the consumers of Kathmandu Valley in the days to come.
It is also expected that the project going to be formulated under this Grant will address the over-loading, excessive voltage drop on the distribution system, and deterioration of power supply reliability. It is predicted that this project will be indispensable for Kathmandu Valley in the energy sector for the future.
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 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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