Nepal Electricity Authority (NEA), the state-owned power utility, has announced plans to construct four high-capacity power transmission lines through a public-private partnership (PPP) model. Publishing a notice on Monday, the NEA invited expressions of interest (EOI) from private firms and companies to build the 118-kilometer Tingla–DudhKoshi–Dhalkebar 400 kV line, the 94-kilometer Arun Hub (Shitalpati)–Inaruwa 400 kV line, the 80-kilometer New Khimti–Dhalkebar 400 kV line and the 30-kilometer Lapsiphedi–Tinpiple 220 kV line.
These lines are part of NEA’s long-term plan to upgrade Nepal’s national grid to support increasing power generation and enhance inter-provincial connectivity.
According to an NEA official, they will select the most suitable companies through a competitive bidding process based on the proposed Annual Required Revenue (ARR) and technical qualifications. The selected companies will develop the projects under a build–own–operate–transfer (BOOT) model, where they will finance, build, operate the transmission lines for a certain period, and then transfer ownership back to the government.
The estimated cost for the Tingla–DudhKoshi–Dhalkebar line stands at approximately $142m (Rs 19.61bn), while the Arun Hub–Inaruwa and New Khimti–Dhalkebar projects are expected to cost $80m each. The estimated cost of the Lapsiphedi–Tinpiple line, the shortest and the cheapest of the four transmission line projects, is $18m (Rs 1.48bn). Interested companies have been given 30 days to submit their EOIs to NEA’s Business Development Directorate.
Earlier, two state-owned entities, National Transmission Grid Company Limited and Hydroelectricity Investment and Development Company Limited (HIDCL), joined hands with six private companies to build the 220 kV Tamor–Dhungesanghu transmission line. The length of the transmission line is 32 kilometers. That project, which also includes a 220/132 kV substation, is being developed under a BOT model at an estimated cost of Rs 3.8bn. Simbuwa Remit Hydro Limited, Remit Hydro Limited, Crystal Power Development Pvt Ltd, Union Hydropower Limited and Nepal Hydro Venture Pvt Ltd and the two state-owned firms signed an agreement to build the transmission line in Kathmandu in December last year.
Meanwhile, the NTGC is also in the process of onboarding private sector companies to build two transmission lines: the 400 kV Hetauda-Shitalpati line of 32 kilometers and the 220 kV Lamabagar–Barhabise line of 43.7 kilometers.
Four companies—White Flower Energy, Api Power Company, Summit Energy Solution and Shangrila Energy - have submitted their EOI to build the application to build the Hetauda–Shitalpati 400 kV transmission line. Similarly, NASA Company Ltd and Sanima Hydropower have submitted an interest to build the 220 kV Lamabagar–Barhabise transmission line.
