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Private-sector power producers have stated that they are ready to cooperate with the government in the areas of electricity transmission, distribution, and trading.

Participants at a ceremony held to mark the securing of investment for the 420-megawatt Tila-2 Hydropower Project, promoted by Energy Tila Power Company, expressed this view.

In the context of the Government of Nepal’s target of generating 30,000 megawatts of electricity by 2035, they also stated that the private sector is committed to contributing to the achievement of this national goal.

Welcoming the participants, company Managing Director Bhanu Pokharel said that the company had signed a Funded Facility Agreement (FFA) with banks on Bhadra 1 for the 420-megawatt Tila-2 Hydropower Project, which is under construction in Kalikot, Karnali Province.

He informed that, following the completion of the financial arrangements, the company has moved ahead with construction with the goal of completing the project within the next five years.

He said that the timely completion of substations currently under construction in the area by National Grid Company Limited (NGC) is essential to transmit the electricity generated by the project into the national transmission system.

He added that if the Government of Nepal develops an appropriate financial model for involving the private sector in the construction of transmission lines, the company is also ready to cooperate in developing such transmission infrastructure.

Pawan Kumar Acharya, Chief Executive Officer of Sanima Bank, which is serving as one of the co-lead banks in the project’s consortium, said that Tila-2 is not only a technically large project but also the largest hydropower project in Nepal to date to have completed its financial arrangements. He described this as an important milestone for Nepal’s private sector.

Mohankumar Dang, President of the Independent Power Producers’ Association, Nepal (IPPAN), congratulated the project developer and all the consortium banks on successfully securing the financial arrangements. He expressed confidence that the project would contribute to infrastructure development in the region, benefit local communities, and create various opportunities for prosperity.

Highlighting the many challenges facing the energy sector, he said that the major issue in this sector is the lack of transmission lines. He urged the government to develop a model that would enable the private sector to participate in the construction of transmission lines. He said that the private sector is capable of collaborating with the government in the areas of national and cross-border transmission lines as well as electricity trading.

Lock Home, Chairman of The Robbins Company, USA, an international partner of the project, expressed his happiness through a video message at being associated with the project and congratulated the project for completing its financial arrangements. Expressing his financial commitment to the project, he thanked all the banks participating in the consortium and extended his best wishes for the successful implementation of the project's upcoming activities.

Sudesh Khaling, Chief Executive Officer of Everest Bank, the lead bank of the project, said that the enthusiastic participation of banks in the project had demonstrated that banks, alongside project developers, are capable of and committed to partnering in the development of large hydropower projects such as Tila-2.

Addressing the program, Dr. Ram Prasad Dhital, Chairman of the Electricity Regulatory Commission, said that the use of TBM (Tunnel Boring Machine) technology by the project is expected to make it easier to complete the construction work within the scheduled timeframe. He said that although Nepal is moving toward self-sufficiency in electricity generation, seasonal imbalances still exist, and a project like Tila-2 could make an important contribution toward maintaining a balance in the electricity supply. He also expressed the view that private-sector participation in the construction of transmission lines is essential for Nepal's journey toward energy security.

Similarly, Dighayu Kumar Shrestha, Acting Executive Director of the Nepal Electricity Authority, emphasized the need for private-sector involvement in the transmission-line sector. He said that expanding transmission infrastructure is indispensable for effectively transmitting the increasing volume of electricity being generated. Therefore, the private sector should also be involved in this sector.

He further stated that, in line with the Government of Nepal's goals for electricity development, private-sector participation is necessary not only in expanding transmission infrastructure but also in electricity trading.

Concluding the program, Sudarshan Chapagain, Chairman of the company, expressed heartfelt gratitude on behalf of the company to all financial and technical partners, stakeholders, and well-wishers who have expressed their confidence in the project and provided their support, cooperation, and goodwill.

He said that the trust placed in the project has not only made the company proud but has also inspired it to move the project forward with greater responsibility and commitment.