Northern Power Transmission Expansion Sector Project

The financial sustainability of the project depends on the continued increase in the transmission tariff payable to the NPT, or on the establishment of a cost recovery mechanism that addresses the NPT's operational costs. In case of breach in financial covenants, ADB should conduct updated financial analysis to evaluate whether on-going reforms will have positive impact on the financial strength of the entity. The tariff reforms are expected to translate to full cost-recovery by 2024 of the power sector entities including the NPT.