Nepal : Electricity Transmission Expansion and Supply Improvement Project

Sovereign Project | 41155-013

The project will improve the reliability of energy supply in Nepal and strengthen the transmission infrastructure needed to promote Nepal's capacity for cross-border energy trade. It will provide support in three critical areas in the electricity supply industry, which has experienced severe underinvestment: (i) electricity transmission capacity expansion, (ii) strengthening of distribution systems including those along the Tamakoshi (Khimti)-Kathmandu transmission line, and (iii) rehabilitation of selected small hydropower plants.

Project Details

  • Project Officer
    Shah, Grishma
    South Asia Department
    Request for information
  • Country/Economy
    Nepal
  • Modality
  • Sector
    • Energy
Project Name
Electricity Transmission Expansion and Supply Improvement Project
Project Number
41155-013
Country / Economy
  • Nepal
Project Status
Active
Project Type / Modality of Assistance
  • Grant
  • Loan
  • Technical Assistance
Source of Funding / Amount
Grant 0270-NEP: Electricity Transmission Expansion and Supply Improvement Project
Source Amount
Asian Development Fund US$ 19.00 million
Grant 0271-NEP: Electricity Transmission Expansion and Supply Improvement Project
Source Amount
Government of Norway US$ 25.00 million
Loan 2808-NEP: Electricity Transmission Expansion and Supply Improvement Project
Source Amount
Asian Development Fund US$ 56.00 million
TA 7923-NEP: Gender-Focused Capacity Development in Clean Energy
Source Amount
Technical Assistance Special Fund US$ 250,000.00
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
  • Regional integration
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
  • Partnerships
Sector / Subsector
  • Energy / Electricity transmission and distribution - Energy efficiency and conservation - Energy sector development and institutional reform

Gender
Effective gender mainstreaming
Description
The project will improve the reliability of energy supply in Nepal and strengthen the transmission infrastructure needed to promote Nepal's capacity for cross-border energy trade. It will provide support in three critical areas in the electricity supply industry, which has experienced severe underinvestment: (i) electricity transmission capacity expansion, (ii) strengthening of distribution systems including those along the Tamakoshi (Khimti)-Kathmandu transmission line, and (iii) rehabilitation of selected small hydropower plants.
Project Rationale and Linkage to Country/Regional Strategy
The current available generating capacity of 705 megawatts (MW) in Nepal comes predominantly from hydropower. At system peak time, up to 400 MW of load is shed countrywide, depending on variations in available water resources and transmission limitations. Six hydropower projects totaling 592 MW are presently under construction. Another six projects with a total capacity of 1,335 MW are planned or proposed in the near to medium term. Limited transmission capacity in Western region of Nepal has restricted additional electricity imports through the western border with India. The first large-scale cross-border transmission line with India between Dhalkebar (Nepal) and Muzarffarpur (India), with a capacity of 1,000 MW, is at an advanced stage of preparation. This will enable Nepal to import electricity from India initially and later facilitate hydropower export. However, the full benefits of this critical regional connection can be harnessed only when adequate strengthening of the related transmission infrastructure within Nepal is undertaken.
Impact

Increased access to reliable supply of electricity

Project Outcome

Description of Outcome

Improved electricity supply

Progress Toward Outcome
Subprojects are at different stages of implementation and expected to ensure achievement of the outcome.

Implementation Progress

Description of Project Outputs

Increased electricity transmission

Expanded electricity distribution

Enhanced electricity generation

Efficient project management

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Increased electricity transmission: Second circuit stringing of Kohalpur - Mahendranagar 132 kV transmission line has been completed. It is under operation along with the associated substations. Tamakoshi (New Khimti) - Kathmandu 220/400 kV and 132 kV transmission lines are under construction.

2. Expanded electricity distribution: All packages under distribution component (i) Part B Lot 1: Augmentation of Distribution Services (East), (ii) Part B Lot 2: Augmentation of Distribution Services (West), and (iii) Part B Lot 3: Upgradation of Distribution Lines are completed and under operation.

3. Enhanced electricity generation: Sundarijal hydropower plant (960 kilowatts) is under operation after successful rehabilitation.

4. Efficient project management: Work completed and data collection is ongoing for electrification. Training programs have been completed with 80% women and marginalized groups.

Geographical Location
Nation-wide, Amuwa, Bagmati Zone, Bahrabise, Belbari, Bheri Zone, Bhimeshwor, Bhurigaun, Butwal, Chandragadhi1, Chapali, Dhading, Gaddachauki, Gaur, Gorkha, Janakpur Zone, Jorpati, Kanchanpur, Kathmandu, Khimti, Kohalpur, KrishnaNagar1, Mahakali Zone, Mahendranagar, Mirmi, Nijgarh, Parasi, Seti Zone, Sundarijal, Syanja, Taulihawa

Safeguard Categories

Environment
B
Involuntary Resettlement
B
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
The initial environment examinations were prepared following ADBs Safeguard Policy Statement (2009), the governments environmental impact assessment guidelines, and related national policies and legislation. Public consultation and information disclosure requirements have been met. Alignment of transmission lines has avoided any environmentally and ecologically sensitive areas. Out of the total length of the Tamakoshi (Khimti)-Kathmandu line, 16 kilometers have been reported to pass through some forest areas in Chanrawati Watershed area. Any loss of vegetation within the right-of-way will be directly offset by reforestation activities consistent with the requirements of the government. The NEA will ensure that ongoing reforestation initiatives within the Chanrawati Watershed will not be affected. Installation of the second circuit for the Kohalpur-Mahendranagar line did not have any significant impacts as existing right-of-way. Decommissioned equipment and materials from the rehabilitation of distribution substations and the small hydropower plants did not cause any risk to community health and safety as these will be stored on site until they can be safely reused and redistributed to other substations. Disposal of unusable equipment will comply with national and international requirements such as the Stockholm Convention. The environmental management plan (EMP) includes mitigation measures, monitoring, and adequate budgetary provisions for its implementation. The EMP will be part of the bidding documents and the NEA will supervise the construction contracts and EMP implementation. Monitoring reports will be submitted semiannually by the NEA to ADB. EMPs will be updated if unanticipated impacts are identified during implementation. Third-party services will be utilized for monitoring and mitigation activities as necessary.Initial Environmental Examination(IEE) is approved for Tamakoshi-Kathmandu 220/ 400kV Transmission Line Project by Government Of Nepal.
Involuntary Resettlement
A detailed resettlement plan will guide the resettlement process and describe the nature of impacts, range of and eligibility for entitlements, income and livelihood restoration, rehabilitation assistance, and compensation for losses incurred. The resettlement plan details the institutional arrangements for implementation, a procedure for grievance redress, a structure for periodic and regular monitoring and reporting of project activities, detailed cost and budget estimates, and a time-bound implementation schedule. The resettlement plan will be updated as needed and publicly disclosed to interested stakeholders on the ADB and NEA websites.
Indigenous Peoples
No adverse impacts on indigenous groups are expected from project activities. People using or living along the transmission line will be temporarily impacted and restricted to using affected land for agricultural purposes. Affected persons will be eligible for compensation in line with ADB s Safeguard Policy Statement requirements. Project-affected peoples will be consulted on a regular basis as needed, in a timely, open, transparent, and culturally sensitive manner and in the local language.

Stakeholder Communication, Participation, and Consultation

During Project Design
Consultations were conducted during project preparation with relevant stakeholder groups (i.e., Ministry of Energy, Nepal Electricity Authority, local authorities, civil society groups, the communities living around the facilities funded under the loan, electricity consumers who benefitted from the project and any associations representing them) through field visits and workshops.
During Project Implementation
Regular meetings with the executing agency and implementing agency-Nepal Electricity Authority (NEA), and contractors of critical packages jointly with NEA are being done. Regular missions to review the progress, identify the issues and ways to resolve them are being carried out. Under TA, stakeholder communication, participation and consultation are being done.

Business Opportunities

Consulting Services

A consulting firm has been recruited, using ADB's Quality and Cost-Based Selection (QCBS) method, to provide support for the 220/400kV Tamakoshi (Khimiti)-Kathmandu Transmission Line and capacity building for staff of the Nepal Electricity Authority. Consultant for the design and implementation of Part C (i.e., the rehabilitation of Sundarijal HPP (640KW) and Tinau HPP (1MW) has been recruited based on the procedures acceptable to ADB for recruiting individual consultants.

Recruitment of a consulting firm, Project Supervision Consultant using ADB's Consultants' Qualifications Selections (CQS) method and recruitment of individual consultant, Social Safeguard Expert using Individual Consultant Selection method have been completed.

A national NGO and an international Technical Advisor have been engaged under the TA project in accordance with ADB Guidelines on the Use of Consultants (2010, as amended from time to time).

Procurement

All procurement to be financed under the ADB will be carried out in accordance with ADBs Procurement Guidelines. International competitive bidding procedures are/ will be used for all the components.

All the contracts have been awarded.

Contact

Responsible ADB Officer
Shah, Grishma
Responsible ADB Department
South Asia Department
Responsible ADB Division
Nepal Resident Mission (NRM)
Executing Agencies
Nepal Electricity Authority (NEA)

Timetable

Concept Clearance
26 Jan 2021
Fact Finding
22 Aug 2011 to 26 Aug 2011
MRM
06 Oct 2011
Approval
15 Nov 2011
Last Review Mission
-
PDS Creation Date
02 Sep 2010
Last PDS Update
16 Sep 2022

Funding

Grant 0270-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Nov 2011 23 Mar 2012 21 Jun 2012 31 Dec 2017 31 Dec 2023 -
Financing Plan
  Total (Amount in US$ million)
Project Cost 19.00
ADB 19.00
Counterpart 0.00
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 22 Apr 2024 19.01 0.00 100%
Cumulative Disbursements 22 Apr 2024 18.68 0.00 98%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Grant 0271-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Nov 2011 23 Mar 2012 21 Jun 2012 31 Dec 2017 31 Dec 2023 -
Financing Plan
  Total (Amount in US$ million)
Project Cost 53.05
ADB 0.00
Counterpart 28.05
Cofinancing 25.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 22 Apr 2024 0.00 24.95 100%
Cumulative Disbursements 22 Apr 2024 0.00 18.53 74%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 2808-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Nov 2011 23 Mar 2012 21 Jun 2012 31 Dec 2017 31 Dec 2023 -
Financing Plan
  Total (Amount in US$ million)
Project Cost 56.00
ADB 56.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 22 Apr 2024 46.06 0.00 98%
Cumulative Disbursements 22 Apr 2024 43.18 0.00 92%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

TA 7923-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Nov 2011 21 Dec 2011 21 Dec 2011 28 Feb 2015 31 Dec 2015 31 May 2016
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
250,000.00 0.00 0.00 0.00 0.00 0.00 250,000.00
Cumulative Disbursements
Date Amount
22 Apr 2024 207,595.49
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (July-December 2023) Environmental Monitoring Reports May 2024
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (January-June 2023) Environmental Monitoring Reports Oct 2023
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (January-June 2023) Social Monitoring Reports Oct 2023
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (July-December 2022) Social Monitoring Reports Mar 2023
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (July-December 2022) Environmental Monitoring Reports Jan 2023
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (January-June 2022) Social Monitoring Reports Sep 2022
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (January-June 2022) Environmental Monitoring Reports Aug 2022
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (July-December 2021) Social Monitoring Reports Jan 2022
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (July-December 2021) Environmental Monitoring Reports Jan 2022
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (January-June 2021) Social Monitoring Reports Jul 2021
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Jul 2021
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (July-December 2020) Social Monitoring Reports Jan 2021
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Jan 2021
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (January-June 2020) Social Monitoring Reports Jul 2020
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jul 2020
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (July-December 2019) Social Monitoring Reports Jan 2020
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Jan 2020
Electricity Transmission Expansion and Supply Improvement Project: Tamakoshi (New Khimti) - Kathmandu 200/400 kV and 132 kV Transmission Lines Initial Environmental Examination Initial Environmental Examination Oct 2019
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jul 2019
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (January-June 2019) Social Monitoring Reports Jul 2019
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (July-December 2018) Social Monitoring Reports Jan 2019
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Jan 2019
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Sep 2018
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (January-June 2018) Social Monitoring Reports Jul 2018
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (July-December 2017) Environmental Monitoring Reports Mar 2018
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (July-December 2017) Social Monitoring Reports Feb 2018
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (January-June 2017) Social Monitoring Reports Nov 2017
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (July-December 2016) Social Monitoring Reports Jan 2017
Electricity Transmission Expansion and Supply Improvement Project: Social Monitoring Report (January-June 2016) Social Monitoring Reports Sep 2016
Electricity Transmission Expansion and Supply Improvement Project: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Sep 2016
Electricity Transmission Expansion and Supply Improvement Project: Tamakoshi-Kathmandu 400 kV Transmission Line Initial Environmental Examination Initial Environmental Examination Apr 2016
Electricity Transmission Expansion and Supply Improvement Project Initial Environmental Examination Sep 2011
Electricity Transmission Expansion and Supply Improvement Project Resettlement Plans Sep 2011
Electricity Transmission Expansion and Supply Improvement Project: Initial Environmental Examination (as of Board approval) Initial Environmental Examination Sep 2011
Electricity Transmission Expansion and Supply Improvement Project: Resettlement Plan (as of Board approval) Resettlement Plans Sep 2011

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Social Safeguard Expert Individual - Consulting Closed
Project Supervision Consultant Firm - Consulting Closed
Loan Nos. 2808/0270/0271-NEP: Electricity Transmission Expansion and Supply Improvement Project [ICB-PMD-TKTLP-075/76-01-R] REBIDDING Invitation for Bids Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Supervision Consultant (Phase II) Loan 2808 24 May 2022 Power Grid Corporation of India Limited in Association with Jade Consult Pvt. Ltd. | Gurgaon, Haryana 122 001 Nepal Electricity Authority (NEA) 377,982.00 377,982.00
DESIGN SUPPLY INSTALLATION AND COMISSIONING OF NEW KHIMTI-BARHBISE 400KV TRANSMISSION LINE Grant 0270 20 May 2019 KEC INTERNATIONAL | INDIA INDIA Nepal Electricity Authority 9,507,864.95
DESIGN SUPPLY INSTALLATION AND COMISSIONING OF NEW KHIMTI-BARHBISE 400KV TRANSMISSION LINE Grant 0271 20 May 2019 KEC INTERNATIONAL | INDIA INDIA Nepal Electricity Authority 3,902,901.49
DESIGN, SUPPLY, INSTALLATION AND COMISSIONING OF N EW KHIMTI-BARHBISE 400KV TRANSMISSION LINE Loan 2808 03 Jun 2019 KEC INTERNATIONAL | INDIA INDIA Nepal Electricity Authority 23,730,349.67 8,350,750.72
PROUREMENT OF BARHABISE-KATHMANDU 400/220KV SS AND 132 KV TRANSMISSION LINE PROJECT (TDTKTLP 072/73 -01) Loan 2808 10 Nov 2017 LARSEN AND TURBO LIMITED | MOUNT POONAMALLE ROAD, MANAPAKKAM PO BOX NO:979, CHENNA INDIA INDIA Nepal Electricity Authority 22,135,487.00 1.00
Procurement of Plant for Barhabise- Kathmandu 400/ 220 Kv and 132 Kv Transmission Line Project (TDTKT LP 073/74-01 Loan 2808 21 Jun 2017 Larsen & Turbo Limited | Mount Poonamalle Road, Manapakkam P.B No:797, Chennai 600089, India Nepal Electricity Authority 22,733,977.00 7,070,221.00

Procurement Plan

Title Document Type Document Date
Electricity Transmission Expansion and Supply Improvement Project: Procurement Plan Procurement Plans Nov 2023