The World Bank has granted funding worth $20 million (£13m) to reform the power sector in Nepal.
The project is expected to help strengthen the capacity of power sector agencies in the country as well as develop hydropower generation and transmission line projects.
The funding will support the Upper Arun Hydroelectric Project and the Ikhuwa Khola Hydroelectric Project as well as research programmes.
The World Bank said it will also propose policy recommendations for power sector reforms.
Julia Bucknall, Practice Manager for Energy and Extractives at the World Bank added: “Reforms initiated under this project will underpin the agenda of transformational hydropower development that the World Bank Group intends to support in Nepal over the coming years.
“This project will help identify and address key challenges that stand in the way of Nepal achieving its full potential in the power sector.”
Earlier this year, Nepal was struck by a devastating earthquake, which killed more than 8,000 people.