Kamal Nepal is taking a major step toward improving its electricity transmission system by involving the private sector in key infrastructure projects. The Nepal Electricity Authority (NEA) has officially invited private companies to partner in the development of four high-voltage transmission lines. These projects will be developed under a Public-Private Partnership (PPP) model.
NEA Invites Private Sector Participation
The NEA recently published a public notice calling for Expressions of Interest (EoI) from private developers. This marks a major shift in the country’s approach, as electricity transmission has mostly been controlled by the state in the past. Now, by allowing private companies to invest and operate, Nepal hopes to accelerate progress and attract new funding.
Key Transmission Projects Open for Bidding
NEA plans to open the following four major transmission corridors for private sector involvement:
-
New Khimti–Dhalkebar (80 km, 400 kV)
-
Arun Hub (Sitalpati) to Inaruwa (94 km, 400 kV)
-
Each project is estimated to cost around USD 80 million.
-
Additional projects include:
-
Tingla–Dudhkoshi–Dhalkebar (118 km, 400 kV)
-
Estimated cost: USD 142 million
-
-
Lapsifedi to Teenpiple (30 km, 220 kV)
-
Estimated cost: USD 18 million
-
All these projects will be developed using the Build, Own, Operate, and Transfer (BOOT) model. Through this model, private developers will construct and operate the lines for a specific time before transferring them to the government. The selection process will be competitive and based on how much annual revenue each company requires for the project.
Breaking the Monopoly and Encouraging Investment
This move is part of Nepal’s broader policy to reduce NEA’s monopoly in transmission infrastructure. In December 2024, Nepal’s Ministry of Energy signed its first deal with private firms to develop transmission lines, showing a clear shift toward public-private collaboration.
The private sector’s involvement is essential to meet the country’s long-term energy goals. Nepal has set ambitious targets to generate 13,000 MW by 2030 and 28,500 MW by 2035. Achieving these goals will require not only electricity generation but also strong and reliable transmission systems.
Huge Investment Needed to Meet Energy Goals
The government estimates that building the required transmission infrastructure will demand massive funding:
-
Around Rs. 6 trillion by 2030
-
Another Rs. 7 trillion by 2035
-
An additional Rs. 9.1 trillion by 2040
By opening the doors to private investors, Nepal is aiming to meet these financial needs and strengthen its energy network for both domestic use and cross-border electricity trade.
Conclusion
Nepal’s decision to involve private developers in transmission line projects is a bold and necessary step toward energy security and economic growth. This new model of collaboration will not only boost infrastructure development but also ensure a more efficient and reliable power supply for the future.
