Private sector proposes to build transmission line
KTHMANDU, MAY 13 -
With the Nepal Electricity Authority (NEA) investing less in the construction of new transmission lines, the private sector has come forward with proposals to construct the transmission line.
A few companies, including Himalaya Energy Development Company (HEDC), have submitted their proposals, seeking approval from the Ministry of Energy (MoE), according to ministry officials.
MoE Secretary Hari Ram Koirala said that the ministry was positive to the proposal of the private sector and was holding discussion on terms of reference, scope and working procedures regarding the private sectors’ involvement in the construction of the transmission line. “We will probably reach a conclusion on the matter within the next three weeks,” said Koirala.
The NEA has been the sole authority constructing the transmission line until now. With the proposal of the HEDC reaching to the National Planning Commission (NPC), it has sought MoE’s opinion on allowing the private sector to construct the transmission line.
“We can decide on the matter only after the MoE gives its opinion,” said NPC Vice-Chairman Dipendra Bahadur Kshetry. “We are yet to receive response from the MoE.”
The Three-Year Interim Plan (2011-2014) seeks involvement of public, private, community and cooperatives in power generation and transmission. With the NEA failing to purchase power from the independent power producers due to the absence transmission line, a taskforce, formed by the Cabinet on August 26, 2009 to formulate 20-year Hydropower Development Plan, had also suggested for constructing the transmission line by the government itself, through public private partnership and with the help of foreign donors.
The HEDC has proposed constructing 132KV Khimti-Gajryang transmission line under Build and Transfer (BT) modality. The construction of about 32km-long transmission line will begin from Gajryang of Dolokha and connect the existing Khimti-Dhalkebar transmission line.
“As the NEA has failed to construct new transmission lines needed for the new power projects, we proposed that we can help the government by investing from the private sector,” said Guru Neupane, managing director of the HEDC.
According to him, the project is expected to cost Rs 500 million with the construction of one kilometre transmission line costing Rs 120 million and installation of one substation costing Rs 80-100 million. He said that the main objective of the project is to ensure supply of power generated by HEDC’s own hydropower projects and power projects handled by other companies surrounding the area. “There are few projects that can generate 50MW,” he said.
Neupane said that they proposed signing power purchase agreement (PPA) with the Nepal Electricity Authority (NEA) at relatively better PPA rate that will also include the cost recovery of the transmission line. “This will ensure good cash flow enabling the company to repay bank loans,” said Neupane.
Source: The Kathmandu Post
