The cross-border transmission line with China will be constructed in government-to-government (G2G) model, as per a bilateral pact signed during Chinese President Xi Jinping’s two-day state visit to Nepal. Earlier, the work was being carried out in government-to-business (G2B) model.

It is expected that profit-loss calculations do not come in the way to affect the construction work under the G2G model.

From the Nepal side, the government has been providing Nepal Electricity Authority (NEA) with the funds for the construction of the project and previously, from the Chinese side, State Grid of China had been working with its own investment. With agreements signed on Sunday, the project is now converted to G2G model.

According to Ratamate-Rasuwagadhi-Kerung 400 KV transmission line project, the implementation of the model will curb the possibility of the project to be hampered even if the project suffered losses during the construction of the project. This is the first cross-border transmission line with China.

If the construction is successfully completed, Nepal may be able to sell power to Bangladesh. If the project is built in business model, profit and loss is taken into consideration. But in the G2G model, economic, social and political benefits are taken into consideration.

According to the project, the line will be 400 KV double-circuit in the Nepali side and 500 KV double-circuit in the Chinese side. The pre-feasibility study of the project to be constructed from Kerung of China to Ratamate of Nepal has been completed.

There will be 214 towers in the transmission line. Komalnath Atreya, chief of the project, said that the feasibility study and the environmental study should be completed within two years. The draft report of the feasibility study was submitted on March 17, 2019.

Details about the number of tower, location to install towers, river areas, national park areas and necessary land have been included in the study report. The substation in the Nepali side will be located at Ratamate, whereas in the Chinese side the substation will be placed at Jilong County of Tibet.

The distance of the transmission line from Rasuwagadhi border point to Ratamate is 70 kilometers. The cross border transmission line is targeted to be completed within six years. The project is being handled by the Department of Project Development under Nepal Electricity Authority.

Atreya informed that the State Grid of China and NEA had agreed to jointly prepare the detailed project report (DPR).

This will be Nepal’s first cross-border transmission line with China. With India, Nepal is connected at 11 locations. China, under the Belt and Road Initiative, is aiming to expand transmission lines with seven continents within 2030. After Nepal is connected to China with the transmission line, it will connect India and other Asian countries.

If electric railway is brought into operation, the distance of the transmission line will increase too. The 70 kilometer line will be 105 kilometer if extended to Kathmandu.