Nepal : Power Transmission and Distribution Efficiency Enhancement Project

Sovereign Project | 50059-001

Electricity is a necessary requirement for accelerating the economic development of any country and is considered an important input to improve quality of life. Overall, the electricity demand has far outgrown the supply, leading to load curtailment and increased dependence on imports from India in recent times. The peak suppressed demand in Nepal in FY20132014 has been around 1,200 megawatt (MW) as against installed capacity of 787 MW, hence resulting in a deficit of about 440 MW due to non-availability of generation. Government has plans to generate additional 10,000 MW in the next 10 years. About 63% of the population in Nepal has access to electricity but the supply quality is unreliable and inadequate. The government has recognized the immediate need for reinforcement and upgrade of outdated distribution systems crucial to deliver the required energy to the customers even if the generation and transmission lines are in place.

Project Details

Project Name
Power Transmission and Distribution Efficiency Enhancement Project
Project Number
50059-001
Country / Economy
  • Nepal
Project Status
Closed
Project Type / Modality of Assistance
  • Technical Assistance
Source of Funding / Amount
TA 9144-NEP: Power Transmission and Distribution Efficiency Enhancement Project
Source Amount
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 1.50 million
TA 9144-NEP: Power Transmission and Distribution Efficiency Enhancement Project (Supplementary)
Source Amount
Technical Assistance Special Fund US$ 500,000.00
TA 9144-NEP: Power Transmission and Distribution Efficiency Enhancement Project (Supplementary)
Source Amount
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
  • Knowledge solutions
  • Partnerships
  • Private sector development
Sector / Subsector
  • Energy / Energy efficiency and conservation

Gender
Some gender elements
Description

Electricity is a necessary requirement for accelerating the economic development of any country and is considered an important input to improve quality of life. Overall, the electricity demand has far outgrown the supply, leading to load curtailment and increased dependence on imports from India in recent times. The peak suppressed demand in Nepal in FY20132014 has been around 1,200 megawatt (MW) as against installed capacity of 787 MW, hence resulting in a deficit of about 440 MW due to non-availability of generation. Government has plans to generate additional 10,000 MW in the next 10 years. About 63% of the population in Nepal has access to electricity but the supply quality is unreliable and inadequate. The government has recognized the immediate need for reinforcement and upgrade of outdated distribution systems crucial to deliver the required energy to the customers even if the generation and transmission lines are in place. In this regard, the need for immediate distribution network enhancement is included in the government's action plan to address energy crisis and provide universal access to reliable and efficient electricity for all by 2030. This will contribute in promoting sustainable energy for all (Sustainable Development Goal #7) and Nepal's Intended Nationally Determined Commitments for the United Nations Framework Convention on Climate Change.



ADB's Nepal country partnership strategy 20132017 supports the government's development objective of accelerated and inclusive economic growth. It seeks to address the infrastructure bottlenecks in the key areas such as energy services and creating an enabling environment for increased business and employment opportunities. ADB's support for the energy sector in Nepal has largely focused on generation and transmission with some distribution extension. This project will be ADB's first investment in Nepal specifically targeting energy efficiency through distribution system enhancements measures.

Project Rationale and Linkage to Country/Regional Strategy
The Asian Development Bank (ADB) will provide a loan to the Government of Nepal (the government) to meet the immediate needs of electricity distribution network in Kathmandu Valley and strengthening of associated transmission lines by the Nepal Electricity Authority (NEA). Major sections of the existing distribution network in the valley were constructed decades ago and despite significant increase in electricity demand and the number of consumers, minimal reinforcement of the distribution network has been carried out. The project will enhance the distribution capacity and improve reliability and quality of electric supply in the Kathmandu Valley by reducing distribution system overloads and technical and commercial losses, which currently is about 20%. The project will also support implementation of other system efficiency upgrades and energy efficiency measures such as advanced grid operations software, distribution system automation, and smart metering. System efficiency improvements and loss reductions will improve NEA's financial health, while customers will benefit from a reliable and improved quality of electricity supply and reduced dependence on diesel generators to meet their daily electricity needs. Operational upgrades will also facilitate integration of new generation capacity scheduled to come on-line during the next three to four years. The project can be replicated in other cities in the country.
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Kathmandu Valley

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Business Opportunities

Consulting Services
The TA will require 31 person-months of international consultants and 46 person-months of national consultants. Consultants will have expertise in the areas of system planning, transmission, distribution, smart grids, supervisory control and data acquisition system (SCADA), economic and financial analysis, social and environmental safeguard, and procurement. ADB will hire consultants through a firm using quality- and cost-based selection process (90:10). Some individual consultants with expertise in areas such as intelligent energy network technologies, geographic information systems, safeguards, finance and economics may be recruited in instances where pre-existing knowledge of local conditions is required and the firm may not be able to rapidly mobilize experts with relevant expertise. Output-based (lump-sum) contracts will be considered for all consulting services where possible. Consultants' selection will be done in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time). The proceeds of the TA will be disbursed in line with ADB's Technical Assistance Disbursement Handbook (May 2010, as amended from time to time).

Contact

Responsible ADB Officer
Acharya, Jiwan S.
Responsible ADB Department
South Asia Department
Responsible ADB Division
Energy Division, SARD
Executing Agencies
Nepal Electricity Authority (NEA)

Timetable

Concept Clearance
-
Fact Finding
-
MRM
-
Approval
22 Jul 2016
Last Review Mission
-
Last PDS Update
15 Dec 2020

Funding

TA 9144-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Jul 2016 18 Aug 2016 18 Aug 2016 31 Dec 2019 21 Jul 2021 01 Oct 2021
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
1,000,000.00 1,500,000.00 0.00 0.00 0.00 0.00 2,500,000.00
Cumulative Disbursements
Date Amount
17 Jun 2022 2,480,695.71

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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

Title Document Type Document Date
Smart Metering Road Map for Nepal Reports Dec 2018

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
Indigenous People Safeguard Specialist Individual - Consulting Closed
Environmental Safeguard Expert Individual - Consulting Closed
Senior Environmental Safeguard Expert (Forestry) Individual - Consulting Closed
Technical Expert (Social Safeguards) Individual - Consulting Closed
Power System Specialist (Regulatory) Individual - Consulting Closed
Power Sector Specialist (EV Charging Infrastructure) Individual - Consulting Closed
Power System Specialist (Digital Utility) Individual - Consulting Closed
Power System Specialist (Smart Grid - Integration) Individual - Consulting Closed
Environmental Safeguard Specialist Individual - Consulting Closed
Energy System Expert (Institutional) Individual - Consulting Closed
Energy System Expert (Finance) Individual - Consulting Closed
Energy System Expert Individual - Consulting Closed
Social Development Expert (GESI Expert) Individual - Consulting Closed
Social Safeguards Expert Individual - Consulting Closed
Power System Specialist (Smart Meter Infrastructure) Individual - Consulting Closed
Environment Safeguards Specialist Individual - Consulting Closed
Power System Specialist (Smart Grid-Smart Meter) - International Individual - Consulting Closed
Environment Specialist - National Individual - Consulting Closed
Financial Specialist Individual - Consulting Closed
Power System Expert (Distribution) Individual - Consulting Closed
Energy Expert (Communication) Individual - Consulting Closed
Energy Expert (Communication) Individual - Consulting Closed
Power System Specialist (Smart Grid-Metering & Billing) Individual - Consulting Closed
Social Development Expert (External Social Monitoring Expert) Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.