March 25, 2013

Nepal has opened doors for the private sector for transmission lines construction. A board meeting of the state-run Nepal Electricity Authority (NEA) decided to allow the private sector to invest in transmission line projects. Till now, NEA was the sole entity permitted to build transmission lines in the country.

As per NEA board decision, the private sector will be allowed to invest in transmission line development projects under the build, own, operate and transfer (BOOT) model. The private sector would be allowed to develop such projects on condition that the NEA would take the projects over after 15 years. Initially, only smaller domestic projects, with costs up to 500 million Nepalese Rupees (USD 5.6 million), will be given to the private companies as trial.

The government has planned to construct 408 km transmission lines in the current Interim Plan (2010-11 to 2012-13). However, not a single transmission line project has been completed although the NEA has already begun work.