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Advance Action on Procurement, Recruitment of Consultants

Country/Borrower: Nepal

Title of Proposed Project: Clean Energy Access Improvement Project

Name and address of the Executing Agency

Nepal Electricity Authority (NEA)
Contact: Managing Director
Address: NEA Head Office, Durbar Marg, Kathmandu, Nepal
Telephone No. 977-1-4153007
Fax No.: 977-1-4153009
E-mail address: neamd@mos.com.np, uk.shrestha@nea.org.np

The Government of Nepal has applied for a loan/grant from ADB to help finance the cost of the Clean Energy Access Improvement Project.

The proposed Project will demonstrate a commitment by the Government of Nepal and NEA to address the present power crisis in the short term and the medium term by improving power transmission and distribution capacity, generation availability and energy efficiency. It also improves network performance and coverage so that electricity can be delivered more efficiently and reliably with increased access. The investment will reduce technical and commercial losses in parts of the network, increase energy output of two hydropower plants and shift/reduce the peak-time system load, improving NEA's financial performance. Increased reliability and quality of power supply to the consumers will expand economically productive uses of electricity and enhance quality of life for consumers.

The proposed Project consists of seven components under three main categories:

(i)    Energy Access

Facilitating Access to Clean Energy (Component 1) consists of construction of Middle Marshyangdi-Damauli-Marsyangdi transmission line and associated facilities strengthening evacuation of power from the 70MW Middle Marsyangdi and 69 MW Marsyangdi hydropower stations, construction of 2nd circuit of Butwal-Kohalpur transmission line assisting cross border power transmission capacity and construction/expansion of Chapali and Matatirtha grid substations and reactive power compensation strengthening the transmission capability in the system.

Energy Access Quality Enhancement (Component 2) consists of construction of 8 primary distribution substations and 3 switching stations in different parts of Nepal strengthening the system's ability to connect new consumers and enhancing the quality of power supply to existing consumers.

(ii)    Clean Energy

Clean Energy Plant Improvement (Component 3) involves rehabilitation of two hydropower plants Marsyangdi (69 MW) and Gandak (15MW) increasing generation efficiency. It also includes developing detailed engineering designs and safeguard assessments of proposed Upper Seti hydropower plant of 127MW.

Supply-side Energy Efficiency Improvement (Component 4) includes a pilot project to rebuild selected distribution feeders and low voltage networks with unacceptably high losses, using international best practice in order to reduce both technical and commercial losses.

Energy Efficiency in Lighting (Component 5) includes the distribution of approximately 1 million compact fluorescent lamps (CFL)/light emitting diode (LED) lamps to households and CFL/LED program implementation support for improved energy efficiency in lighting.

Renewable Energy for Street Lighting (Component 6) consists of installation of 1000 solar streetlights in Bhaktapur, Lalitpur and Kathmandu Municipal areas reducing the burden on the main electricity grid.

(iii)     Sector Reforms/PPP

Public Private Partnership (PPP) in Distribution (Component 7) involves assisting NEA with expert services and basic instrumentation required to support PPP in three identified distribution areas.

Brief Description of Goods and Related Services, or Works to be Procured:

ADB has approved the Government's request for advance contracting to expedite project implementation. Advance contracting will include: (i) preparation of tender documents, and (ii) evaluation of bids. The advance contracting will be undertaken in accordance with ADB's Guidelines for Procurement .

Date of Advance Contracting Approval: 8 July 2009