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Nepal’s private sector has, for the first time, demonstrated its ability to successfully build high-voltage electricity transmission infrastructure, marking a significant milestone in the country’s energy sector.

A 28-kilometre section of the 220 kV Markichok–Bharatpur Transmission Line under the Marsyangdi Corridor, which had remained stalled for more than seven years, has been completed and energized for testing within just one and a half years through the active participation of the private sector.

The achievement has demonstrated that Nepal’s private sector is capable not only of developing hydropower projects but also of constructing transmission lines and, if permitted by the government, participating in electricity trading.

The project had remained stalled for years before private hydropower developers assumed responsibility for completing the remaining works. It is now being regarded as a major achievement in Nepal’s energy infrastructure development and a successful example of public-private partnership.

The initial construction contract for the transmission line was awarded to Chinese company Pinggao Group in November 2017. However, after more than seven years, the company had completed the foundations of only 35 out of the planned 84 transmission towers and erected just 10 towers. Owing to the extremely slow pace of construction, the Nepal Electricity Authority (NEA) transferred responsibility for the remaining works to the private sector on November 20, 2024.

Four days later, on November 24, 2024, seven hydropower projects under the Marsyangdi Corridor jointly decided to proceed with the construction. They appointed Viva Construction & Engineering Concern and Bhugol Infrastructure Company to carry out the remaining works with an investment of approximately Rs. 49.7 million.

To facilitate coordination and resolve issues related to the transmission line, a committee was formed under the leadership of Uttam Blon Lama, then Vice President and currently Senior Vice President of the Independent Power Producers’ Association, Nepal (IPPAN), as well as a director of Dordi Khola Hydropower Company. The committee also included Arjun Gautam, Project Director of People’s Hydro, and Mohan Bikram Karki, Chairman of Ashutosh Energy Limited. The committee successfully resolved issues encountered during construction and ensured the project was completed on schedule.

Construction progressed rapidly after the private sector assumed responsibility. Foundations for all 84 transmission towers have now been completed, while 78 towers have been erected. A transmission line that had seen virtually no progress for years has now been fully completed and energized.

The transmission line was financed by six privately promoted hydropower projects: the 54 MW Super Dordi Hydropower Project, 12 MW Dordi Khola-1 Hydropower Project, 27 MW Dordi Khola Hydropower Project, 30 MW Nyadi Hydropower Project, 8.60 MW Chepe Khola Hydropower Project, and 9.05 MW Super Chepe Khola Hydropower Project.

According to IPPAN Senior Vice President Uttam Blon Lama, completing a project that had remained unfinished for seven years within just one and a half years has created a new milestone in Nepal’s energy infrastructure development and proved that the private sector is capable of building transmission infrastructure in addition to generating electricity.

“If the private sector is allowed to build transmission lines, the successful completion of the Markichok–Bharatpur section under the Marsyangdi Corridor 220 kV Transmission Line Project has clearly demonstrated that it is fully capable,” Lama said. “At a time when the lack of transmission infrastructure has caused privately generated electricity to go to waste and created financial losses for investors, completing the project within one and a half years is a historic achievement.”

The Nepal Electricity Authority has also confirmed that construction of the Markichok–Bharatpur section under the Marsyangdi Corridor 220 kV Transmission Line Project has been completed. Built with financial assistance from the European Investment Bank, along with joint investment from the Government of Nepal and the NEA, the transmission line has entered the final stage of integration into the national transmission system.

The approximately 28-kilometre-long 220 kV double-circuit transmission line (currently energized through a single circuit) extends from the New Marsyangdi Substation at Markichok in Anbukhaireni, Tanahun, to the New Bharatpur Substation at Aaptari in Bharatpur Metropolitan City, Chitwan. According to the NEA, high-voltage testing has begun, and the line will enter regular operation after the testing is successfully completed.

The transmission line is considered crucial for evacuating electricity generated by existing and under-construction private hydropower projects on the Marsyangdi, Dordi and Trishuli rivers, as well as their tributaries, into the national transmission system. Electricity that was previously at risk of being wasted due to inadequate transmission infrastructure can now be supplied to the national grid for domestic consumption and future electricity trade.

Former NEA Managing Director and former Minister for Energy, Water Resources and Irrigation Kulman Ghising said the achievement marks a milestone in Nepal’s energy development. He said that while serving as NEA Managing Director and later in ministerial roles overseeing energy, physical infrastructure and urban development, he had consistently prioritized financial management, coordination and facilitation of the project. He expressed satisfaction at seeing the project finally completed.

Ghising said that when it became evident the original contractor would not complete the work on time, private hydropower developers stepped forward through subcontracting arrangements and successfully completed the transmission line. According to him, this stands as an outstanding example of the private sector’s responsibility, initiative and partnership in developing Nepal’s energy infrastructure.

He further emphasized that the remaining sections of the Marsyangdi Corridor should now be completed on a priority basis. He stressed that delays in forest clearance, land acquisition and legal procedures continue to hinder nationally important infrastructure projects and called for legal reforms to ensure their timely completion.

Ghising also noted that as Nepal’s electricity generation continues to grow rapidly, equal priority must be given to expanding transmission infrastructure. Otherwise, a significant amount of electricity could go to waste due to transmission bottlenecks.

Meanwhile, the NEA has urged residents living along the transmission line corridor to exercise extreme caution while high-voltage electricity is flowing through the line. Residents of Anbukhaireni Rural Municipality Wards 2, 3, 4 and 5 in Tanahun, the Yangkot area of Gorkha Municipality-14, and the Jugedi-Chaukidanda and Rigdikhola areas of Chitwan have been advised not to climb transmission towers, touch electrical structures, enter areas around the towers unnecessarily or allow livestock near the towers.

The authority has also requested parents to keep children away from electrical structures marked with danger signs and urged the public to immediately inform the nearest police post or any NEA office if electrical sparks or any other abnormal situation is observed during the testing period.

The successful completion of the Marsyangdi Corridor transmission line has demonstrated that Nepal’s private sector is capable not only of developing hydropower projects but also of constructing and operating transmission infrastructure, while also paving the way for its future participation in electricity trading.

Stakeholders in Nepal’s energy sector believe that if the government introduces appropriate policies and licensing mechanisms, the proven capability of the private sector can be harnessed to accelerate the expansion of transmission infrastructure across the country.

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