AIIB Eyes Digital Upgrade for Nepal’s Power System

Kathmandu: The Asian Infrastructure Investment Bank (AIIB) has expressed interest in supporting the modernization and digital transformation of Nepal’s power infrastructure.

An AIIB delegation led by Director General Rajat Misra discussed cooperation with Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha on Thursday. The talks focused on strengthening Nepal’s energy sector, disaster preparedness and early warning systems.

Minister Shrestha proposed greater collaboration to develop Nepal into a regional energy hub, emphasizing the sector’s role as a key pillar of the national economy. He also highlighted ongoing AIIB-supported projects, including transmission lines, substations and distribution systems across Karnali and Lumbini provinces.

Shrestha called for continued support to expand electricity infrastructure and help Nepal achieve its target of generating 30,000 megawatts of electricity within the next decade.

The minister also highlighted improvements in flood forecasting, noting that the warning lead time had increased from three to five days following the recent Bhote Koshi floods.

AIIB representatives expressed readiness to support the integrated upgrading of Nepal’s transmission and distribution networks, as well as post-disaster recovery and reconstruction. The bank also indicated willingness to provide technical assistance for disaster preparedness and early warning systems, drawing lessons from the Bhote Koshi floods.