Private Sector Entry Opens in Power Transmission as NEA Invites Bids for Four Projects

Kathmandu — Nepal’s private sector, which has long been active in electricity generation, has now been given an opportunity to directly participate in the construction and operation of transmission lines. The move comes after Nepal Electricity Authority invited Expressions of Interest (EOI) for four transmission line projects, formally opening the sector to private investment.The authority issued the call on Falgun 28, seeking applications from domestic and international developers to build the projects under the Build–Own–Operate–Transfer (BOOT) model. Under this framework, private companies will finance, construct, and operate the infrastructure for a fixed period before handing it over to the government.The proposed projects include two high-capacity 400 kV transmission lines — Shitalpati–Inaruwa (95 km) and Tingla–New Khimti–Sunkoshi Hub–Dhalkebar (134 km). In addition, two 132 kV lines — Dadakhet–Burtibang (33 km) and Ridi–Tamghas (28 km) — will also be developed under the same model. These projects are expected to play a crucial role in strengthening Nepal’s national transmission network and improving electricity distribution efficiency.The government’s decision reflects a broader realization that large-scale transmission infrastructure cannot be financed solely through public resources. To address this, the Ministry of Energy, Water Resources and Irrigation introduced a ‘Tariff-Based Competitive Bidding’ framework in Mangsir, paving the way for private sector participation in transmission development.Under this framework, NEA has been designated as the bidding agency. According to NEA spokesperson Rajan Dhakal, interested companies can submit applications within the specified deadline. Following the evaluation, a shortlist of qualified bidders will be prepared, who will then be required to submit detailed technical and financial proposals.Selected developers will be responsible for carrying out surveys, preparing detailed project reports, acquiring land, and executing construction. They will operate the transmission lines for up to 20 years, during which NEA will guarantee service purchase by booking transmission capacity. This arrangement is designed to ensure revenue stability and attract long-term private investment.Private sector representatives have welcomed the move. Krishna Prasad Acharya, former president of the Independent Power Producers’ Association, Nepal, described it as a significant opportunity for expanding private involvement in the energy sector. He noted that if reasonable returns are ensured, private investment in transmission infrastructure is likely to grow further.As Nepal continues to expand its hydropower generation capacity, the need for a robust transmission network has become increasingly urgent. Experts say that without parallel development of transmission infrastructure, surplus generation cannot be effectively utilized. In this context, opening the sector to private participation is seen as a strategic step toward bridging infrastructure gaps and enhancing overall energy security.