500 billion investment is required for 10 years to build transmission and substation

Kathmandu; In the country, it has been deemed necessary to invest more than 500 billion rupees in the next 10 years for the construction of essential transmission lines and substations. As per the master plan prepared by the Nepal Electricity Authority (NEA), investment is required to be made for the construction of the pre-requisite infrastructure for electricity transmission and distribution.

Kulman Ghising, the Managing Director (MD) of the NEA, has indicated that an investment of at least 500 billion Nepali rupees will be necessary in the coming 10 years for the construction of such infrastructure to supply quality electricity in the country and integrate electricity produced by private developers into the national grid. He stated this during today's program 'Determination of Transmission Line Costs and Investment,' organized by the United States Agency for International Development (USAID) Urja Nepal.

Development along the East-West, North-South corridors could progress with the construction of various capacity lines. 'Substantial investment sources are required for this,' he said. 'Commitments for some investments in the construction of this sector have already been made. This investment has come from banks such as the Indian Exim Bank, Korean Exim Bank, Japan International Cooperation Agency (JICA), Asian Development Bank (ADB), World Bank, and other development partners.

In hydropower projects, he mentioned the inability to attract investment in the construction of transmission lines. 'There is no guarantee for returns when investing in lines. Investment does not come until there is a return guarantee. For this, revenue guarantee is necessary, and wheeling charges need to be determined,' he said.

Satish Joshi from USAID Urja Nepal presented a paper indicating the necessity of substantial investment in the construction of transmission infrastructure. He emphasized that transmission charges could be determined annually or biennially for investment management.

The NEA has various stages of construction for 236 transmission line projects of 132 kV, 220 kV, and 400 kV underway. The work on the Inaruwa-Dhalkebar-Hetauda line has reached its final stage. Three 400 kV substations on this line have been completed with the support of the World Bank. NEA MD, Ghising also mentioned that with the goal of commencing operation by the coming July, 800 to 1000 more workers have been hired for that purpose. He also informed that the work of stringing wires in the Dhalkebar-Hetauda section is ongoing, and the work of stringing wires from Inaruwa to Dhalkebar will be completed within a month.