400 kV West Seti transmission line to be built in PPP model

Kathmandu, June,2: The construction of a major 400 kV transmission line in western Nepal has moved forward under a public-private partnership (PPP) model to evacuate electricity from large hydropower projects in the Seti River basin into the national grid.

A special purpose company, West Seti Transmission Company, has been established to implement the project. 

The company was officially registered on May 27, following approval of its investment structure by the Board of Directors of Rastriya Prasaran Grid Company Limited.

The project, estimated to cost around Rs. 20 billion, will be financed through 30 per cent equity and 70 per cent debt.

Lifeline of energy sector 

While addressing the founding partners of the company on Monday, Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha said that the contribution of the private sector in power generation has now expanded into transmission infrastructure development as well. 

He described transmission lines as the “lifeline” of the energy sector and expressed confidence that such partnerships would usher in a new era in the energy sector. 

“Participatory development is also an exercise of democracy. As collaboration with the private sector in transmission lines is a new practice for Nepal, the government will encourage it,” Minister Shrestha said.

Stating that the review process of the Power Purchase Agreement (PPA) is ongoing, he said that decisions would be made based on the received reports. 

He added that if a reliable and sustainable energy supply is ensured, the country’s economy will gain new momentum and it will also significantly contribute to the economic development of the far-western region. 

Reiterating the government’s commitment to support the successful implementation of the project, the minister said the government is ready to resolve any issues. 

“The private sector has taken risks to move this forward. The government will not back away from its responsibility to ensure the successful completion of the project,” he said.

The project aims to transmit up to 2,500 MW of electricity, which is expected to enhance the reliability of the national power system as well as strengthen cross-border electricity trade, energy security, and long-term energy development strategy. 

This project, considered one of the major transmission infrastructure developments under the PPP model in Nepal, is expected to become a milestone in the 400 kV transmission line sector.

Chief Executive Officer of Rastriya Prasaran Grid Company Limited Sagar Shrestha said that construction work will be accelerated after land acquisition, right-of-way clearance, and forest approvals are completed. 

He said necessary preparations have already begun. 

Chairman of the partner company Samriddhi Energy Limited, Shailendra Guragain, said the project as a “game changer” in the energy sector, stating that the private sector is encouraged to invest due to its long-term importance.

On the occasion, Acting Managing Director of Nepal Electricity Authority, Dirghayu Kumar Shrestha, said that the project is strategically very important. 

Target to complete in five years

According to the share structure of the company, the government side will hold 51 per cent ownership, including 26 per cent by Rastriya Prasaran Grid Company Limited, 12.5 per cent by Chilime Hydropower Company Limited, and 12.5 per cent by Chainpur Seti Hydropower Company Limited.

On the private sector side, Samriddhi Energy Limited will hold 25.1 per cent, Ngadi Group Power Limited 7 per cent, and Siuri Nyadi Power Limited 6.9 per cent shares. The remaining 10 per cent will be allocated to the general public.

A 145-kilometre-long 400 kV double-circuit transmission line will be constructed from Chainpur Substation in Jayaprithvi Municipality–1 of Bajhang, passing through Banlek in Doti, to Dodhara Substation in Bardagoriya Rural Municipality–2 of Kailali. 

Under the project, substations with capacities of 160 MVA in Chainpur and 315 MVA in Banlek will also be constructed. 

Necessary land acquisition and preliminary surveys have already been completed, and the construction period has been set at five years.

Through this transmission line, electricity generated from the 750 MW West Seti Hydropower Project, 450 MW Seti River-6 Project, 170 MW Upper Seti Project, and other projects in the Seti River system and its tributaries will be transmitted to the national grid.