NEA Opens Doors for Private Investment in High-Voltage Transmission Lines

In an effort to attract private sector investment in Nepal’s electricity transmission infrastructure, the Nepal Electricity Authority (NEA) has called for proposals from private companies to construct four major transmission lines under a public-private partnership (PPP) model.

The NEA issued a public notice on Sunday, inviting expressions of interest (EoI) from potential private developers. This move marks a significant step in involving the private sector in areas traditionally dominated by the state-owned utility.

As per the NEA’s plan, the following high-voltage transmission corridors are being opened for private sector participation:

1. An 80 km stretch of 400 kV New Khimti–Dhalkebar line
2. A 94 km section of 400 kV line from Arun Hub (Sitalpati) to Inaruwa
Each of these projects carries an estimated cost of USD 80 million.

Additionally:

1. A 118 km, 400 kV line along Tingla–Dudhkoshi–Dhalkebar is estimated at USD 142 million
2. A 30 km, 220 kV line from Lapsifedi to Teenpiple is expected to cost USD 18 million

These projects will be implemented under the build, own, operate and transfer (BOOT) model. NEA will select the private developers through a competitive bidding process, based on the annual revenue required by the bidders.

The initiative follows the government's broader policy to break NEA’s monopoly in electricity infrastructure development. A milestone was reached in December 2024, when the Ministry of Energy, Water Resources, and Irrigation formally signed its first agreement with private firms for transmission line development.

This collaborative approach with the private sector is considered crucial to meet Nepal’s ambitious electricity goals. The Government of Nepal aims to generate 13,000 MW by 2030, and 28,500 MW by 2035, under an integrated national energy strategy that focuses on generation, transmission, domestic consumption, and export.

To meet these targets, massive investment in transmission infrastructure will be required. According to government estimates:

1. Rs. 6 trillion will be needed by 2030
2. An additional Rs. 7 trillion by 2035
3. And another Rs. 9.1 trillion by 2040

By opening up transmission line construction to private investment, Nepal aims to accelerate infrastructure development and ensure a better and reliable electricity grid that can support growing domestic demand and cross-border power trade.