NEA asks govt: Allow private sector to construct transmission line
KATHMANDU, MAY 22 -
The Nepal Electricity Authority (NEA) has asked the government to allow the private sector construct transmission lines, recommending two models: Build-Own-Operate-Transfer (BOOT) and Build and Transfer (BT).
In its report recently submitted to the Ministry of Energy (MoE), the NEA has stated that the private sector could be allowed for the construction of transmission lines to harness power from the hydropower projects below 25 MW, with whom the government had signed power purchase agreement (PPA). The MoE had asked the NEA to conduct a study the probability of bringing the private sector into transmission line construction after a few private sector companies asked the ministry for such approval.
The report has also recommended that the government could handover the construction of transmission lines which the NEA had already committed to build to the private sector. “We have asked the ministry to create a favourable atmosphere for the private sector to attract investments into the construction of transmission line,” said Ganesh Prashad Raj, general manager of the NEA’s Grid Development Department.
The NEA has formed a task force led by Raj to study the possibility of private sector’s entry into transmission line construction. A member of the task force said that the report had recommended to allow a promoter or a group of promoters having the capacity to develop a hydropower project to construct the transmission line. “Such promoters can build the transmission line from the project site to the nearby grid point upon obtaining a licence from the government for appropriate project,” he said.
The taskforce report says the interested developers will have to sign a transmission service agreement (TSA) with the NEA and could make the financial management on its basis.
So far, the NEA is the only authority for developing transmission lines in the country. However, the private sector has long been demanding the government to ensure its participation in the development of transmission line.
A few companies, including Himalaya Energy Development Company (HEDC), have sought the MoE’s approval for their proposals to develop the transmission line. The HEDC has proposed constructing 132KV Khimti-Gajryang transmission line under BT modality. The construction of about 32km-long transmission line will begin from Gajryang of Dolokha and connect the existing Khimti-Dhalkebar transmission line.
Energy Secretary Hariram Koirala said that the ministry is going through the report and is also of the opinion that the private sector should be brought in the development of transmission line, as the NEA alone cannot handle the task. “The ministry is now holding discussions on terms of reference, scope and working procedures regarding the private sectors’ involvement in constructing the transmission line,” Koirala said, adding that the ministry will reach a conclusion on the matter within two weeks.
The private sector had been reluctant to step into transmission line construction due to the lack of guarantee of return. “There is no clear mechanism on how the private sector could be brought into this sector,” said Arjun Kumar Karki, spokesperson of the MoE, “The ministry will soon introduce a provision, which would clear all these confusions.”
Source: The Kathmandu Post
