In a bid to involve the private sector in construction of transmission lines, Nepal Electricity Authority (NEA) has asked private companies to submit their proposals for construction of four transmission lines.

Issuing a public notice on Sunday, the NEA invited Expression of Interest from the private companies. According to the NEA, it intends to install a number of high voltage transmission lines under public-private-partnership (PPP) model.

Under the plan, the NEA aims to install 400 kV electricity corridors for 80 km stretch of New Khimti-Dhalkebar transmission line and 94 km stretch between Arun Hub in Sitalpati and Inaruwa. The estimated cost of each of these infrastructures is US $80 million.

The NEA has also sought proposals for the installation of a 118 km stretch of 400 kV line along Tingla-Dudhkoshi-Dhalkebar, at the cost of USD 142 million. Likewise, a 30 km stretch of 220 kV Lapsifedi-Teenpiple transmission line has an estimated cost of USD 18 million.

These projects will be based on build, own, operate and transfer model and the participating private firms will be selected on annual required revenue based competitive bidding process, according to the NEA.

The NEA’s move has come in line with the government’s initiative to end the monopoly of the state-owned NEA in construction of electricity related infrastructures. For the first time in December 2024, the Ministry of Energy, Water Resources, and Irrigation signed an agreement with private companies for the collaboration.

The partnership with the private sector for the development of transmission infrastructure has been considered a major step toward achieving the government’s goal of generating 28,500 megawatts of electricity by 2035.

The Government of Nepal has adopted an integrated policy of transmitting, distributing, consuming and exporting electricity by generating 13,000 MW of electricity by 2030 and 28,500 MW by 3035. Nepal will need Rs 6 trillion by 2030, an additional Rs 7 trillion by 2035 and another Rs 9.1 trillion by 2040 for the construction of transmission lines.