Nepal to allow private investment in power transmission
The government of Nepal is ready to invite private sector investment in power transmission line projects, an official said here Sunday.
The Nepal Electricity Authority (NEA), Nepal’s government owned power monopoly, has been working to prepare an action plan to pave the way for attracting independent power producers to construct transmission lines, a major component in energy production, Xinhua quoted NEA managing director Arjun Bahadur Karki as saying.
“We have begun to prepare an action plan which will define on what basis, under which model and to what extent the role and capital of the private sector can be entertained on the development of transmission lines in the country,” Karki said.
The Nepal government has so far allowed the private sector to develop hydropower projects only.
According to the official, a team has been formed for studying various international models to prepare the most suitable and investor-friendly system to make private investors feel comfortable.
The NEA board last week decided to allow private sector players to invest in transmission line projects under the build-own-operate-transfer (BOOT) model.
“NEA has not been able to develop required length of transmission lines as it has been focused largely on power generation,” NEA board member Manoj Mishra said.
In January this year, the energy ministry had decided in principle to allow the private sector to build power lines and ordered NEA to prepare an investment modality and draft a transmission service agreement (TSA).
The ministry made the decision after finding NEA was unable to expedite construction of transmission lines.