Nepal : Electricity Grid Modernization Project
The project will finance high-priority electricity grid modernization investments both in transmission and distribution system in Nepal under the following outputs:
Output 1: Electricity transmission capacity in project areas strengthened and modernized. The project will finance (i) automation of 40 grid substations throughout the country; (ii) construction of 3 units of modern 132/11 kV grid substations with automation (each with 2x45 megavolt ampleres [MVA] capacity) together with 16 km of 132 kV double circuit underground line along Chobhar-Lagankhel-Sinamangal, and 5 km of 66 kV double circuit underground transmission line along Sinamangal-Chabahil in Kathmandu Valley; (iii) upgrading of 237 km of 132 kV transmission lines with more efficient high-temperature-low-sag conductors; and (iv) commissioning of transmission system consisting of 4 automated grid substations with capacity of 290 MVA and 48 km transmission lines in Myagdi and Dhading districts.
Project Details
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Project Officer
Shah, Grishma
South Asia Department
Request for information -
Country/Economy
Nepal -
Sector
- Energy
Related Projects
| Project Name | Electricity Grid Modernization Project | ||||||||
| Project Number | 54107-001 | ||||||||
| Country / Economy | Nepal |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP4: Making cities more livable OP6: Strengthening governance and institutional capacity OP7: Fostering regional cooperation and integration |
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| Sector / Subsector | Energy / Electricity transmission and distribution |
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| Gender | Effective gender mainstreaming | ||||||||
| Description | The project will finance high-priority electricity grid modernization investments both in transmission and distribution system in Nepal under the following outputs: Output 1: Electricity transmission capacity in project areas strengthened and modernized. The project will finance (i) automation of 40 grid substations throughout the country; (ii) construction of 3 units of modern 132/11 kV grid substations with automation (each with 2x45 megavolt ampleres [MVA] capacity) together with 16 km of 132 kV double circuit underground line along Chobhar-Lagankhel-Sinamangal, and 5 km of 66 kV double circuit underground transmission line along Sinamangal-Chabahil in Kathmandu Valley; (iii) upgrading of 237 km of 132 kV transmission lines with more efficient high-temperature-low-sag conductors; and (iv) commissioning of transmission system consisting of 4 automated grid substations with capacity of 290 MVA and 48 km transmission lines in Myagdi and Dhading districts. Output 2: Electricity distribution system in project areas modernized. This will include (i) construction of distribution control center in Kathmandu; (ii) installation of additional 350,000 smart meters in Kathmandu Valley; (iii) construction of 8 substations with automation along with distribution system reinforced and extended in Dhading, Dharan, Morang, Nepalgunj, Parasi, Sindhupalchowk and Surkhet; and (iv) 150,000 new households (including xx women-headed households) connected to the national grid. Output 3: Capacity of NEA and electricity users in project areas strengthened. Considering the importance of continued support to NEA and users, the project will support increasing knowledge of (i) at least 40 eligible NEA staff (including 30% eligible women) on automation of grid substations; (ii) at least 30 eligible NEA staff (including 30% women) on NEA's organizational development; (iii) at least 20 eligible NEA staff (including 30% women) on putting in place improved billing and collection measures; and (iv) at least 2,000 electricity consumers in project areas (40% women and disadvantaged group on safe and efficient use at distribution centers. The project will also support implementation of key actions from NEA's gender equality and social inclusion (GESI) strategy and operational guidelines in its regional offices, to complement corporate level activities covered under a forthcoming project. These outputs will result in the following outcome: access to efficient grid electricity supply in Nepal improved. The project will be aligned with the following impact: investments in industrial and commercial hubs promoted. |
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| Project Rationale and Linkage to Country/Regional Strategy | Nepal is a landlocked, mountainous country located between the large and fast-growing economies of the People's Republic of China to the north and India to the east, west, and south. Nepal's gross domestic product (GDP) growth averaged 7.3% during FY2017FY2019. With deepening economic uncertainties because of the coronavirus disease (COVID-19) pandemic, compounded by social and health emergencies, the preliminary estimates from the Central Bureau of Statistics in Nepal show that GDP growth will significantly decline to 2.3% in FY2020. The need to stimulate post-COVID-19 economic recovery by developing Nepal's infrastructure has become more relevant. | ||||||||
| Impact | Reliable and efficient electricity for all achieved NEA developed as modern and sustainable corporate entity that provides reliable services to its customers |
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| Project Outcome | |
|---|---|
| Description of Outcome | Reliability, efficiency, and financial sustainability of electricity supply in Nepal improved |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Electricity transmission capacity in project areas strengthened and modernized Electricity distribution system in project areas strengthened and modernized Capacity of NEA to implement its corporate development plan strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Implementation is ongoing |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | B |
| 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 project will be implemented and supervised by the project management unit under the Project Management Directorate (PMD) of NEA. NEA will assign a dedicated team headed by a project director. Environmental and Social Management Plans and Occupational Health and Safety Plan implementation and monitoring support will be provided to the safeguard unit at PMD. A project supervision consultant will be hired to support NEA in implementing the project. Most of the contracts are expected to be tendered as turnkey for project implementation. Procurement (including consulting services) will follow ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). The government will ensure proper coordination during implementation of this project. |
| Procurement | Nepal Electricity Authority (NEA) is the proposed executing and implementing agency which has significant experience in implementing ADB projects and established processes and capacity to handle ADB procurement. While most of the contracts are limited to specific geographical area, the substation automation package involves 40 substations throughout the country but would be easy to implement. |
| Responsible ADB Officer | Shah, Grishma |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Nepal Resident Mission |
| Executing Agencies |
Nepal Electricity Authority (NEA) |
| Timetable | |
|---|---|
| Concept Clearance | 03 Jun 2020 |
| Fact Finding | 22 Jun 2020 to 26 Jun 2020 |
| MRM | 20 Aug 2020 |
| Approval | 26 Nov 2020 |
| Last Review Mission | - |
| Last PDS Update | 16 Sep 2022 |
Loan 4014-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 26 Nov 2020 | 30 Dec 2020 | 04 Feb 2021 | 30 Sep 2026 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 195.00 | Cumulative Contract Awards | |||
| ADB | 156.00 | 28 Apr 2023 | 133.71 | 0.00 | 86% |
| Counterpart | 39.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 28 Apr 2023 | 21.16 | 0.00 | 14% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Unsatisfactory | Unsatisfactory | Satisfactory | Satisfactory | Unsatisfactory |
Loan 4109-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 17 Sep 2021 | 26 Nov 2021 | 08 Feb 2022 | 30 Sep 2026 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 75.00 | Cumulative Contract Awards | |||
| ADB | 60.00 | 28 Apr 2023 | 27.08 | 0.00 | 45% |
| Counterpart | 15.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 28 Apr 2023 | 2.50 | 0.00 | 4% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Unsatisfactory | Unsatisfactory | Satisfactory | Satisfactory | Unsatisfactory |
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 Grid Modernization Project: Environmental and Social Safeguard Monitoring Report (January-June 2022) | Environmental and Social Monitoring Reports | Nov 2022 |
| Electricity Grid Modernization Project: Environmental Monitoring Report (July-December 2021) | Environmental Monitoring Reports | Mar 2022 |
| Electricity Grid Modernization Project: Environmental Monitoring Report (January-June 2021) | Environmental Monitoring Reports | Jun 2021 |
| Electricity Grid Modernization Project: Social Monitoring Report (January-June 2021) | Social Monitoring Reports | Jun 2021 |
| Electricity Grid Modernization Project: Initial Environmental Examination | Initial Environmental Examination | Oct 2020 |
| Electricity Grid Modernization Project: Initial Environmental Examination | Initial Environmental Examination | Aug 2020 |
| Electricity Grid Modernization Project: Combined Resettlement Plan and Indigenous Peoples Plan | Combined Resettlement Plan and Indigenous Peoples Plans | Jul 2020 |
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.
ADB Approves Loan to Upgrade Power Grids in Nepal
ADB has approved a $156 million concessional loan to modernize power transmission and distribution systems in Nepal.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| ICB/FD/EGMPAF/RMS-078/79-02: Supply and Installation of Revenue Management System | Loan 4109 | 26 Jan 2023 | LongShine Technology Group Co., Ltd., PRC | LongShine Industrial Park, No. 118 Jinghui East Road, Xinwu District, Wuxi City, Jiangsu Provience, China | Nepal Electricity Authority (NEA) | 9,989,553.68 | 9,989,553.68 |
| Design, Supply Installation, Testing, and Comissioning of Ghorahi-Madichaur 132KV TL and Associated Substations at Khungri and Ghorahi | Loan 4014 | 30 Dec 2022 | KEC International Limited, India | RPG House 463, 1st Floor, Dr. Annie Besant Road, Worli, Bombay, 400030, India | Nepal Electricity Authority (NEA) | 14,798,589.15 | 14,798,589.15 |
| Design, Supply, Installation, Integration, Testing and Commissioning of Substation Automation System (SAS) for Existing Grid Substations of Six Grid Division offices across Nepal | Loan 4014 | 23 Dec 2022 | GE T&D India Limited | Noida, India | Nepal Electricity Authority (NEA) | 21,239,800.07 | 21,203,300.27 |
| Design, Supply, Installation, Testing, and Commissioning of Borang-Naubise (Ratmate) 220kV Transmission Line and Associated Substations | Loan 4014 | 16 Oct 2022 | SEPCO1 & POWER SICHUAN JV | Building A2-6, Hanyujingu Business Center, Gaoxin Zone, Jinan, Shandong, China | Nepal Electricity Authority (NEA) | 30,821,508.18 | 30,806,749.19 |
| Design, Supply, Installation, Testing, and Commissioning of 132/33/11 kV Pangtan Substation and Associated Bay Expansion works at Bahrabise Substation | Loan 4014 | 24 Jun 2022 | CQNEC-NHE JV | BUTWAL, RUPANDEHI DISTRICT | Nepal Electricity Authority (NEA) | 5,199,127.46 | 5,199,127.46 |
| Procurement of Plant for Design, Supply, Installation and Commissioning of 132kV Transmission Line Upgrading | Loan 4014 | 06 Jun 2022 | HG Power Transmission SDN BHD | 15th Floor, Rohas Purecircle, West Wing, 9, Jalan P. Ramlee 50250 Kuala Lumpur, Malaysia | Nepal Electricity Authority (NEA) | 17,361,060.17 | 15,480,530.45 |
| Project Supervision Consultant for Electricity Grid Modernization Project | Loan 4014 | 29 Dec 2021 | Tractebel Engineering Pvt. Ltd. | 37 Institutional Area, Sector 44, Gurugram Haryana 122002, India | Nepal Electricity Authority (NEA) | 1,520,332.56 | 1,520,332.56 |
| Design, Supply, Installation, Testing and Commissioning of 132 kV Transmission Line and associated substations at Rahugyat-Dadakhet (Package A-2) | Loan 4014 | 31 Dec 2021 | Larsen & Toubro Limited | L & T House, Ballard Estate, Mumbai Construction Head Office, Construction Division, PT and D, TC-3, Tower B, 7th Floor, 'B' WingPost Box 979 Mount Poonamallee Road, Manapakkam, Chennai 600-089, India | Nepal Electricity Authority (NEA) | 26,493,999.86 | 26,493,999.86 |
| Design, Supply, Installation and Commissioning of Distribution Command and Control Center | Loan 4014 | 03 Aug 2021 | Yangtai Dongfang Wisdom Electric Co. Ltd.China | No. 6, JINDU ROAD, LAISHAN DISTRICT, YANTAI CITY, SHANDONG PROVINCE, P.R.CHINA | Nepal Electricity Authority (NEA) | 11,691,346.50 | 11,691,346.50 |
| SUPPLY, INSTALLATION, AND COMMISSIONING OF 132/33 KV AIR INSULATED SUBSTATIONS AT KERAUN, MORANG DISTRICT WITH ASSOC SUB-TL (PACKAGE B-2) | Loan 4014 | 29 Jun 2021 | ENERGYPAC ENGINEERING LTD | RABI BHABAN. KATHMANDU, NEPAL | Nepal Electricity Authority (NEA) | 6,320,024.04 | 6,312,446.27 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Electricity Grid Modernization Project: Procurement Plan | Procurement Plans | May 2021 |