FY 1995/96
gy YEAR IN REVIEW

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FY 95/96: A YEAR IN REVIEW
का पामााडाडाडाडाडाडापाबाबाडाडु

CONTENTS

The Chairman's Message

Photographs : Board of Directors
Organizational Chart
Photographs : Chief Executives
Photographs : Directors
8 Managing Director's Report

14 ~~ s Introduction

15 —s Sectoral Review

23 = Project Highlights

28 = Project Studies

30 Balance Sheet

32 Profit & Loss Statement

33 Highlights : FY 1995/96

34 = Tariff

35 Statistics, Schematics, Maps

Cover Photo : Access Tunnel of Chilime Hydroelectric Project

FY 95/96: A YEAR IN REVIEW

To serve the country and the
consumer with dedication and zeal,
to develop indigenous resources, to
achieve greater efficiency, and to
conduct its business in an open and
transparent manner are the corner
stones a public utility must build on.
The utility must have the resolve to
work under the constraints of re-
source scarcity by competing in a
market place that grows keener by the
day. Once obtained, the utility must
obtain maximum benefits through the
efficient use of the availed resources
by using state-of-art techniques both
in technology and management.
Finally, a modern utility must be
receptive to new concepts and must
always orient itself correctly in terms
of current trends.

Overviewing its performance
along these perspectives,। believe
that the Nepal Electricity Authority
(NEA) must be complimented for
taking pragmatic steps. NEA has now
matured into an able utility with
eleven years of experience behind it.

To meet its objectives, NEA has
undertaken well planned activities in

MESSAGE

From The Chairman

generation, transmission, distribution,
electrification and institutional
development. After the approval of
loan financing by the Asian Develop-
ment Bank, the 144 MW Kali Gandaki
Project is now ready for the next stage
of implementation. To promote
private sector participation in the
power sector, NEA has entered into its
second power purchase agreement
with the Bhote Koshi Power Co., a
joint venture between promoters in
Nepal and the United States. NEA has
also assisted Himal Power Ltd. attain
financial closure for the Khimti।
Hydro Power Project, the first project
developed by the private sector in
Nepal. The Khimti। HEP is also one
of the first hydropower projects in
this part of world to achieve this stage
of implementation for a private sector
enterprise.

NEA has also completed the
construction of the second 132 kV
transmission line that links Nepal and
India. The increased import that this
has made possible has helped
reduce "load shedding " and will
pave the way for increased power
exchanges with India in future. Apart
from the generation aspects, NEA is
aware of the immense challenge
ahead in demands for rural electrifi-
cation from a large percentage of the
populace that does not enjoy the
benefits of electricity. This is where
NEA faces a delicate balance between
operating along commercial lines and
shouldering the social responsibility
of providing service-oriented
functions to its customers. NEA also
faces the challenge of reducing
losses and wastes in all their forms.
NEA must formulate effective strate-
gies to reduce transmission and
distribution losses, so that it can serve

its consumer without some benefiting
at the cost of others. Similarly, NEA
must adopt measures to meet the
universal concerns for the environ-
ment and the country's social
heritage.

NEA is pursuing improvements
to 15 human resources and their
effective utilization by adapting
modern management practices. The
exercise carried out to change the
corporate structure is a step in this
direction. In addition to these priority
areas, NEA has shown maturity by
shouldering its role in the interna-
tional community by sponsoring the
Third International Conference on
Power Development in the Afro-Asian
Region. The conference achieved
remarkable success and NEA deserves
to be congratulated for the undertak-
ing.

Overall,। feel that NEA is
performing better. This has been
possible through the goodwill and
support from domestic as well as
international quarters.। wish to thank
them all for wishing us well. With
their positive support, NEA will attain
even better heights of achievement in
the years to come. To conclude,।
wish to express my sincere thanks to
the NEA Board Members and all the
staff of NEA for their valuable
contribution.

As

_

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( Pashupati Shumshere JB Rana )

Minister for Water Resources

FY 95/96 : A YEAR IN REVIEW

नट करता EDOM EGE 1S RONG ARRON as DOOR HCG, a MOLT OOMNENANONRLREONONT पकाई aT

BOARD OF DIRECTORS

a. 2८, ORC 1 OCR उमम0000202070 धकाक०१७७0:-4,00/2070-.

Chairman

Mr Pashupati Shumshere J.B. Rana
Hon'ble Minister for Water Resources

\ :
Ra tw hr ७। / . \ क् '
Dr D.N. Dhungel Mr R.B. Bhattarai Mr Himalaya S.).B. Rana
Secretary Secretary Thapathali
Ministry of Water Resources Ministry of Finance।

M.L. Pradhan Mr. Pashupati P. Shah Mr Vinaya Man Shrestha
Rt. Hon. Member Baneswor Honorary Consul of Brazil
Raj Parisad

Mr

Member Secretary
Mr K.C, Thakur
Managing Director, NEA

पना ला

NEPAL ELECT!

[ BOARD ० BOARD 0
[MANAGIN MANAGIN

Director - 11
Internal Audit

DMD - 12 DMD - 12
Distribution and Consumer Services Generation & Transmission

Manager -10 Director-11
Internal Audit Technical and Commercial Manager-10
Service Leased Plants & Private

Generation

DIC - 12 DIC - 12
DCS Central Rural Electrification
Directorate Directorate

DIC - 12
Transmission & Substation
Directorate

DIC - 12
Generation
Directorate

Director-1] Director-1]
Small Hydro and Rural Eastern Regional Office
Electrification

Director-11
T/L Design & Construction

Director- 11
Large Power Plants

Director - 11 Director-11
Bagmati West Regional! Western Regional Office
Office

Director-11! Manager-10
Grid Operation Medium / Small Power Plants

Manger-10

Director - 11 Manager-10 Thermal Generation
Central Regional Office Far Westen Regional Office

DISTRIBUTION & CONSUMER SERVICE GENERATION & TRANSMISSION

Note:
DMD = Deputy Managing Director
DIC = Director in Chief

CITY AUTHORITY

DIRECTORS। IRECTORS।

DIRECTOR] IRECTOR

Director -11
Secretariat & Information
Technology

DIC - 12 DIC - 12
Project Preparation and Project Implementation
Studies Directorate Directorate

Director-1} Director - 11
Investigation & Studies Design/Civil

Director - 11
Construction

Director - 11
Project Preparation

Manager-10
Design/Electromechanical

Manager - 10
Environmental Studies

Manager - 10
Non Utility Projects

POWER DEVELOPMENT

Director- 11
Human Resources &

Director - 11
Corporate Planning

Director - 1]
System Planning

Director - 11
Monitoring & Evaluation

Administration Directorate

Director- 11
General Administration

Manager- 10
Legal & Arbitration

Manager - 10
Personnel

Manager-10
Material Management

Manager-10
Public Relation

Manager-10
Training Centre

Director- 11
Finance & Accounts
Directorate

Manager -10
Central Account

Manager - 10
Revenue

Manager-10
Assets Management

Manager - 10
Financial Management

PLANNING & GENERAL MANAGEMENT

FY 95/96: A YEAR IN REVIEW

TTT: WCEP? ० 496K. es

ie ini Ried

CHIEF EXECUTIVES

Mr R.B. Shrestha Mr R.S. Pandey
Deputy Managing Director Deputy Managing Director
Generation & Transmission Distribution & Consumer

Services

Dr .J.L. Karmacharya Mr B.B. Dhungana Mr 8.8. Malla Mr N.T. Bhutia Dr M. R. Tuladhar
Director-in-Chief Director-in-Chief Director-in-Chief Director-in-Chief Director-in-Chief
Project Preparation & Rural Electrification DCS East & West Generation Directorate Planning Directorate

Studies Directorate Directorate Directorate

Mr G.M. Kadaria Mr Govinda K.C. Mr V.N. Uprety Mr O.MSS. Swar Mr U.K. Shrestha
Director-in-Chief Act. Director-in-Chief Act. Director-in-Chief Director Director
DCS Central Project Implementation Transmission & Human Resources & Finance & Accounts
Directorate Directorate Substation Directorate Administration Directorate

Directorate

FY 95/96 : A YEAR IN REVIEW

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DIRECTORS

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Mr P.M.S. Pradhan Mr G. 8. Shrestha

Mr J.N. Nayak Mr. A.P. Rijal

9

Mr 5.0. Upadhyaya Mr M.R. Upadhyaya

Mr. M.P. Upadhyaya

Mr. R.P. Shah

Mr. M.S. Budiyal Mr. D.P. Koirala

Mr. A.B. Chhetri

Mr. B.R. Regmi Mr. K. B. Shrestha Mr. J.R. Shrestha

FY 95/96: A YEAR IN REVIEW

MANAGING

DIRECTOR'S REPORT

It gives me great pleasure to report on
the activities of Nepal Electricity Authority
for the Financial Year 1995/96. The year
marks the eleventh year of NEA's opera-
tions since its inception on August 16,
1985. Over its relatively short history, the
year that has passed will be remembered as
the year which yielded new hopes for a
brighter future for NEA and for the country,
as well.

Following the change in political
leadership in the country during the past
year, there was also a change in the NEA
Board with the present Minister for Water
Resources, Mr. Pashupati Shumshere J.B.
Rana assuming the functions of the Chair-
man of the Board. We also were glad to
have two new Members to the Board,
namely, Mr. Pashupati Pratap Shah and Mr.
Binay Man Shrestha.

The gloomy prospects of energy
deficiency were still alive at the commence-
ment of the year. It was evident from
reflections in the media that our customers
were apprehensive of what the future would
hold for them. Our customers are growing
up in an increasingly electricity dependent
life-style. A power shortage would mean a
reversal of popular trends. We, at the NEA,
understood the implications. And we did
not sit back. We accepted the challenge to
rectify the situation by the turn of the
century. We made efforts to push fast-track
projects into action and put all our efforts in
bringing on-line the Kali Gandaki A, the
centrepiece of our hydropower strategy, at
the commencement of the new millennium.

But financial constraint still hold the key
strings. Although hydropower projects
(HEPs) such as the Puwa and Modi did lift
off, some projects stalled under financing
limitations. However, redress came with the

optimistic attitude of Donor agencies to
the development of power sector in Nepal.
Finally, the year came to a pass with the
much awaited news that the Kali Gandaki
A HEP had received the green signal.

The Year in Summary:

During the past year, we completed
some key strategic planning exercises
including an investment plan based ona
least cost generation expansion plan.
Besides generation, the investment plan
included required reinforcement and
augmentation in transmission, distribution
and grid facilities. The investment plan
formed the basis for a study on electricity
tariff, which ultimately led to the proposal
for a tariff increase. The Tariff Fixation
Commission (TFC) approved a tariff hike
which went into effect with the billing for
the month of Jestha, 2053 (May/June
1996). This increase in tariff will help us to
meet the increasing operation and mainte-
nance costs and the local component
financing requirement of development
projects.

Financing plans has been worked out
for development projects up to the year
2003 to meet the projected load demand.
It has also been noted that greater emphasis
will need to be given to enhancement of
transmission lines to cope with increased
generation capacity. To chart out studies
beyond 2003, we also started hydropower
studies based on a newly institutionalised
screening and ranking (S&R) procedure
which evaluates hydropower projects in
terms of their engineering and environ-
mental attributes. It must be remembered
that the absence of studied projects had led
to the vaccuum in generation plans over
the last decade a situation which is best
never repeated.

FY 95/96: A YEAR IN REVIEW

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In keeping with the Government's
policy to encourage the participation of the
private sector in the development of the
power sector, NEA completed its obliga-
tions required for the financial closing of
the 60 MW Khimti। HEP. Following close
to the Khimti। HEP, the second private
sector undertaking, namely the 36 MW
Bhote Koshi HEP progressed satisfactorily.
The Power Purchase Agreement (PPA) with
NEA was signed in the early days of the
new fiscal year.

We promoted the 20 MW Chilime HEP
to be constructed and operated as a public
limited company with share holdings from
NEA, the domestic private sector and NEA'
staff 'contributing from their Provident

Fund.Measures are underway to mobilise t

financing from entrepreneurs more specifi-
cally, the country's major Commercial

Banks and financial institutions. Favourable
financing proposals to the tune of NRs.800

million are expected in the near future. F

After many years of stalled generation
increment, we increased our available
energy and capacity. A generation addition
came with the completion of the Trisuli-
Devighat Upgrading Project which added
95.3 GWh (11 MW in terms of refurbished
capacity) to the system in November 1995
by improving the dependable discharge
through modifications in intake design of

_ the Project. On the transmission side, we

completed the construction of the Duhabi-
Bhantabari 132kV transmission line and
made possible an additional import
capability of 3OMW from Bihar State
Electricity Board (BSEB). We even entered
into agreement with major industries within
the country for the use of their captive
generation for peaking purposes during the
dry winter months. With these capacity
enhancements, added import from India
and a very finely tuned study of despatch-

i 08 schedule, we successfully brought to an
énd the 'load shedding' that had been
resorted to since the past few years.
However, looking ahead in the generation
picture we foresee a period of "load
shedding" in the year 1996/97 limited to a
few months the necessity arising from the
need to undertake scheduled maintenence
on the Kulekhani and Marsyangdi HEPs. In
the event of such a contingency, we shall

~<

try our best to minimize the extent and
period of load shedding by mobilising all
measures at our disposal. We certainly
believe our Customers will bear with us
through this unavoidable aircumstantces.

The completion of the Duhabi-Kataiya
132 kV transmission line and the additional
quantum of import from India are very
significant events in the chapters of India-
Nepal Power Exchange and lays the
precedence for further consideration in the
future. The last inter-government Power
Exchange Committee meeting introduced
aspirations to increase the exchange level
from 50 MW to 150 MW. We shall study
the possibilities of such enhancements
through the construction of more links with
Indian utilities at 132 kV or higher.

Concerted efforts were made through-
out the year to reduce system losses so as
to achieve the targeted figure of 23 percent
within the year 1996/97. We expect that
losses will also decrease with the comple-
tion of projects such as the Seventh Power
Project, the Power Sector Efficiency Project
(PSEP), the Kathmandu Valley Distribution
Reinforcement Project, and the Computer-
ised Billing Project plus NEA's recurring
annual efforts in rehabilitation and distribu-
tion. As part of its non-technical loss
reduction drive, NEA embarked on a media
campaign through the press, the radio and
the TV to bring about public awareness of
the fact that unauthorised use of electricity
is a public offence and involves consider-
able danger for the offender. The reduction
and control of non-technical losses are to
be undertaken as a specific project under
an ADB loan assistance.

Concern for the environment and the
fragile eco-balance, voiced by NGOs and
INGOs, was prominent through the year.
Our major concerns were directed towards
the rehabilitation and resettlement aspects
of the Kali Gandaki A HEP. A number of
on-site public participation programs were
organised to deliberate on the eco-
sociological aspects. These were followed
by similar programs at Kathmandu and
interaction sessions with NGOs professing
concern in the project's environmental
performance. These programs were
arranged to improve on NEA's transparency

ce

9

FY 95/96: A YEAR IN REVIEW

धा eee ener

in its dealing. In keeping with the concern
for the environment, the proposed financ-
ing for the Kali Gandaki A HEP includes
adequate amounts for environment related
works and institutional development of the
Environment Unit within NEA. To
dissiminate project information in an
organised way we have established a
Public Information Centre for Kali Gandaki
A in our headquarters at Kathmandu.

Besides the focus on Kali Gandaki A,
we shail also use a portion of the revenue
generated from hydropower project to
carry out electrification schemes around
power plants after their commissioning.
These works will include measures to
mitigate environment degradation and will
thereby assist in the improvement of the
environment situation.

A very proud occasion for NEA was the
organisation of the Third International
Conference on Power Development in
Afro-Asian Countries which we organised
in association with the International
Association on Electricity Generation,
Transmission and Distribution (Afro-Asian
Region). The theme of this session was
appropriately labelled Power Develop-
ment Strategies for the Twenty-First
Century. The Conference was attended by
329 participants and observers from 32
countries. Among the many VIPs attending
the Conference were His Excellency, M.
Maher Abaza, the Energy Minister of Egypt.
His Excellency and। have been delegated
the positions of President and Vice-
President of the Association, respectively,
for the period 1996-98. The next Confer-
ence of the Association is scheduled to be
held in Cairo, Egypt.

Over the year, we tried to research the
situation and obtain a pragmatic view of
14८5 position in our society, in our
economy and in the market. We needed to
integrate NEA's operations into the nation's
fast rising aspirations for sustainable
development. With the increasing
industrialisation in the country and the
accelerated rate of urbanisation, NEA
needed to acquire the creditworthiness
and the confidence to run the nation's most
vital economic sector along responsive,
pro-active, management styles.

10

After extensive deliberations, we
decided that an organisational restructuring
would help in orienting NEA's functions to
bring about the qualities required. The
new organsation, which came to effect
with the new financial year, divides NEA
into four distinct functional sectors. The
first Planning and General Management
sector comprises of the units to cater to
central level functions of (i) Planning, (ii)
Finance and Accounts and (iii) Human
Resources Administration. The second
sector named Power Development
comprises of (i) Project Preparation and
Studies and (ii) Project Implementation.
The third comprises of Generation and
Transmission and the last, Distribution and
Consumer Services (DCS).

The rationale behind the restructuring
reflects our commitment to reduce losses
by breaking up the work load of the DCS
functions so that monitoring of losses
activities can be taken up more
intensely.Modification of the structure is
also aimed to facilitate greater accountabil-
ity and commercialisation. The structure
now allows the DCS sector to purchase
power from the Generation and Transmis-
sion sector. Within this sector, further
accountability could be established
between the Generation and Transmission
Directorates.। firmly believe my colleagues at NEA
will use their capacities in the new
structure to bolster NEA's efforts to
achieve new levels of achievement.

Besides the reforms, we continued
efforts to provide personnel with better
career prospects by bringing about timely
promotions and prompt recruitment in
vacant positions, down the rungs of
seniority.We have also continued to add to
staff benefits and perks, even though these
may not be to the extent desired. Profes-
sional training, seminars, workshops,
conferences and academic studies to
strengthen staff competency continued
with almost 600 staff members availing
some form of participation at home or
abroad. To enhance personnel efficiency, a
performance related incentive scheme has
also been introduced.

FY 95/96 : A YEAR IN REVIEW

SE

Operational Performance:

Overall, the number of consumers
served by NEA increased by approximately
8 percent and the service level ( percent of
the nation's population served) approached
the 15 percent level. Achham was the new
addition to the districts headquarters
electrified, bringing the number to 70.
Projects are at hand to bring electricity to
the district headquarters of Dolpa, Kalikot,
Lamjung, Khotang and Dailekh in the very
near future.

During the past financial year, the
electrical energy available for use within
the NEA system totalled 1261.76 GWh
which was an increase of 144.30 GWh
(12.91 percent) over the previous year's
figure of 1117.46 GWh. This comprised of
1074.27 GWh (85.14 percent) obtained
from NEA's hydro generation and 36.56
GWh (2.90 percent) from NEA's thermal
generation. A total of 150.95 GWh was
purchased from other utilities; comprising
of 70.94 GWh (5.62 percent) from electri-
cal utilities in India and 80.01 GWh (6.34
percent) from BPC, in the Nepalese private
sector.

Over the financial year, the system peak
of the interconnected system was recorded
on December 27, 199§ at the level of 275
MW. This was a 12.70 percent increase
over 244 MW for the last winter ( Decem-
ber 25, 1998.

Over the past financial year, the
number of consumers grew by an estimated
36,236 {or 7.90 percent) over the previous
year's figure to reach a total of 494,836.
The domestic category accounted for
94.92 percent of the total consumer
numbers, 35.54 percent of the sales and
contributed to 36.54 percent of the
revenue. The industrial category formed
only 2.51 percent of the total consumers,
but accounted for 37.83 percent of sales
and contributed to 37.27 percent of the
revenue. Non-commercial category
constituted 1.60 percent of the consumers
accounted for 5.98 percent of the sales and
8.24 percent of the revenue. Likewise, the
commercial category constituted 0.48
percent of the total consumers, accounted

11

for 6.57 percent of the sales and provided
9.03 percent of the revenue.

Electricity sales which totalled 937.494
GWh, was an increase of about 112.911
GWh (13.69 percent) over last year's sales
figure. Internal sales within Nepal in-
creased to 847.159 GWh and accounted
for 90.36 percent of the total sales and
registered an increase of 62.055 GWh

- (7.90 percent) over the last year's figures.

The financial picture remained encour-
aging for another year. NEA's total revenue
totalled NRs. 3,927.20 million, an increase
of about 13.4 percent over the figure for
the previous year. The O&M expenses,
meanwhile, totalled an estimated NRs.
3,187 million. The net profit before taxes is
estimated to be NRs. 618.70 million. Also,
last year, NEA paid in cash NRs. 1262.1
Million as interest on loans (including
arrears) and NRs. 195.8 million in repay-
ment of principal. In addition, NRs. 224.5
million was paid as income tax/royalty .
The total paid to the Government Exche-
quer was thus NRs. 1682.40 Million.

Development Efforts :

In order to meet the demands of the
future, we identified essential areas of
investment and linked these with our
projected financial performance. Arising
from the investment plan, we identified a
number of projects which we must
complete within stipulated time periods.

As stated above, the 144 MW Kali
Gandaki-A hydropower project is our
priority project to meet mid-term genera-
tion demands. From the studies conducted,
this project has been established to have
very attractive socio-economic and
technical attributes. Being a run-of-river
(ROR) with pondage type hydropower
scheme, the project is expected to have
very little environmental impact. Neverthe-
less, all environmental issues have been
addressed in the Project. The Kali Gandaki
A is expected to start generation by the
year 2000.

HMGN and NEA are to jointly meet the
local costs of the Kali Gandaki A project

FY 95/96 : A YEAR IN REVIEW
SSS डाडा

while the foreign costs will be met through
loan financing from the Asian Develop-
ment Bank (ADB), Manila and Overseas
Economic Co-operation Fund (OECF),
Japan. Loan negotiations between HMGN/
NEA and ADB were successfully concluded
in a meeting held from June 10-14, 1996 in
Manila. ADB has since approved the loan
financing for the project.

In the rural scene, the isolated 400 kW,
Achham Small Hydropower Project was
inaugurated by the Right Honourable
Prime Minister, Sher Bahadur Deuba, on
May 22, 1996. Our efforts to provide
electricity to consumers in remote areas of
the country continued with the construc-
tion of Small Hydropower Projects at
Dolpa and Kalikot

Equal efforts were devoted to getting
hydro-generation projects such as the Modi
and Chilime HEPs off the ground and
pressing on with the construction of the
Puwa Khola HEP. The foundation stone for
the 6.2 MW Puwa Khola HEP was laid by
the Minister for Water Resources, Mr.
Pashupati Shumshere J. B. Rana, on
October 10, 1995. Puwa has earned the
distinction of being a project attempted
entirely with NEA expertise. Similarly, we
were able to launch the 14MW Modi
Khola HEP with a foundation ceremony
performed by the Minister for Water
Resources on May 17, 1996. Although
initially targeted to be a private sector
undertaking, the Project is now to be
financed by HMG, NEA and South Korea.

The Seventh Power Project, jointly
funded by HMGN, NEA and ADB contin-
ued its construction activities over two
Phases. Phase। of the project is fast
approaching completion while the second
phase is targeted for completion latest by
the end of 1997. In addition (0७ rehabilita-
tion and system strengthening works, Phase। will provide rural electrification of 513
villages spread over 10 districts to serve
83,500 new consumers, and Phase।। will
extend to 388 villages and benefit 85,103
new consumers. Other transmission line
projects are also underway to link the
district headquarters of the districts of
Dailekh, Khotang, Ramechhap and
Lamjung with the national grid.

12

The Kathmandu Valley HV Reinforce-
ment Project, financed under an IDA loan
assistance, faced some problems acquiring
right -of-way and access for the transmis-
sion line in urban areas. However, we were
able to charge the Bhaktapur sub-station
and the Bhaktapur-Chapali line. The
remaining components of the project are
scheduled for completion in 1996/97 after
the amicable settlement of legal issues.

In accordance with the Power Purchase
Agreement with private sector promoters,
we also hold the responsibility for evacuat-
ing power generated by Khimti। and Bhote
Koshi HEPs. This power evacuation, which
will originate at Khimti।, will pick up the
Bhote Kosi power at Sunkoshi and link up
with the grid at Balaju through Bhaktapur.
Yet another link to a power plant we must
construct is the 66 kV line to evacuate
power generated by the Chilime HEP. The
line will be linked with the national grid at
Trishuli/Devighat sub-station.

The Government of Japan has been
providing grant assistance for improving
the power transmission and distribution
system in Kathmandu Valley The project
has greatly reduced voltage drops and line
losses and improved the reliability of the
power supply in the fast growing metropo-
lis. Works under the final second stage of
Phase Il of the financing are to commence
from July 1996 and be completed by
March 1997,

Financed under a loan assistance from
ADB, the pilot scheme of the Computerised
Billing Project went into operation on
October 18, 1995 at NEA's Kathmandu
West Branch in Kalimati, serving about
22,000 customers with new computerised
bills. We are proposing to go ahead with
additional phases of the Project and
computerise the billing activities in all
major NEA branches.

Realising that our human resource is
Our most vital asset, we have not hesitated
to improve and extend the facilities
available in our Training Centre. Other
institutional strengthening measures
include introducing modern office equip-
ment at our Headquarters at Kathmandu to
enhance working conditions. We are also

ला eee eee

FY 95/96 : A YEAR IN REVIEW

errr rere sneer errr

progressing well with the establishment of a
Central Workshop for major repair and
maintenance of electrical and mechanical
equipment.

Acknowledgements :

To end my report,। wish to thank His
Majesty's Government for the continued
encouragement and support we have
received in the operation of NEA.। take
opportunity to express my sincere thanks to
the Chairman and members of the Board
for guiding NEA along the path of

पा...

(Kirti Chand Thakur)
Managing Director

Nepal Electricity Authority

13

sustainability and accountability. My
sincere thanks also to our valued
Customers who have always been the
source of our enterprise and the Donor
community who have assisted in many
ways to achieve our targets.

Last, but not the least,। wish to thank
all the members of the NEA staff, at all
levels, for the diligence and perseverance
they have shown even in times of hard-
ship.। feel confident that with this kind of
spirit we can lead NEA to much higher
levels of achievement.

नका
4 क फे
' *

4% ue

FY 95/96 : A YEAR IN REVIEW

INTRODUCTION

Over NEA's relatively short
history there has seldom been a year
as eventful as the one that has passed.
FY 1995/96 brought on events of joy
and sorrow, challenge and suspense,
success and failure. The events
featured a wide variety of issues,
some still new to NEA's experiences.
Issues touched on the concepts of the
environment, public interaction,
regional exchange and commercialisa-
tion. Issues were rooted in the
complexities of international financ-
ing and dwindling concessional
financing. Issues called for the need to
mobilise all resources available even
in the nascent domestic financial
market and push demand-side
management. All these and more —
bundled into an eventful year that will
be remembered as the year of
reckoning.

The year opened with the pain
still fresh from the wounds caused by
the withdrawal of financing from the
Arun Ill HEP. NEA had promoted
Arun।।। as the centrepiece of its
hydrogene-ration strategy. But time
was not there to waste on lamenting.
An alternative strategy had to be
formulated - fast. With a new century
across the bend, something had to be
done so that the problems would not
spill into the next generation.

The awesome face of energy
deficiency was still prominent at the
start of the year. Efforts were made to
push fast-track projects into the
frontlines. But what options did one
have without adequate finances?
Though a few hydro-generation
projects such as the Puwa and Madi
did lift off, others strained in the mires
of financing from the donors or the
co-financers from the private sector

14

Relief and encouragement came
from options such as regional import,
captive generation and energy
conservation combined with exacting
exercise in load despatching. The
efforts added happily to achieve a
supply situation without 'load
shedding'. Promoting the private
sector in the development of hydro-
power generation gained impetus and
overcame hurdles. After a marathon
exercise in promotion, Khimti। finally
cleared the fences and Bhote Koshi
was Cleared for its last lap to finish. In
the end, the flagging generation
picture looked good. The concern
was that a closer look should now be
focused on the adequacies of trans-
mission and distribution systems.

Relief also came with the
optimistic attitude of Lending
agencies to the development of the
power sector. And last and not the
least, there was an even more
optimistic note that the Kali Gandaki
A HEP - the new forerunner in NEA's
race to meet the nation's demands for
the next century - would get the green
signal.

NEA did well in terms of
financial performance. But success
seemed to mean more than just the
finances. It became evident through
the passage of the year that to provide
sustainable, services NEA must
integrate and balance out all aspects
of its corporate strategy — human
resources most importantly. All the
bits and pieces must tie in to form an
institution that is capable of spontane-
ously providing quality services to the
nation and its customers. Towards the
end of the year it seemed NEA had
grown wiser and knew in what
direction to go and how to go about
it.

FY 95/96 : A YEAR IN REVIEW

SECTORAL REVIEW

The Organisation and Management

The past fiscal year 1995/96 the
country's political leadership change hands
from the Government led by the United
Marxist and Leninists (UML) to that of a
Coalition Government comprising of the
Nepali Congress, the Rastriya Prajatantra
Party and the Sadbhawana Party. After the
formation of the Coalition Government on
September 12, 1995, and the expansion of
the Cabinet of Ministers on September 22,
1996, the present Minister for Water
Resources, Pashupati Sumshere Rana
assumed the functions of Chairman, Nepal
Electricity Authority, and presided over the
first Board Meeting on October 29, 1995 -
this being 204th. Meeting of the NEA
Board. It will be recalled that Minister Rana
has assumed the post of the Minister for
Water Resources on two previous occa-
sions: once during the formation years of
NEA in 1985/86 and again for a brief
period during the political transition period
in 1990,

Towards the end of the financial year,
in June 1996, there was a reshuffle in the
Board of Directors with Mr. Pashupati Shah
and Mr. Binay Shrestha ( representing the
power sector and the commercial sector)
being nominated as Members to replace
Mr. Balaram Pradhan and Mr. Deepak
Bhattarai.

An event of significance to the
management of NEA, was the appointment
of Mr. Kirti Chand Thakur as the Managing
Director for a period of two years on
December 18, 1995. Mr. Thakur has a
memorable record of service in the power
sector, having spent many years of his
service period in the former HMG,
Electricity Department, during which time
he also assumed the post of Project
Director of the Kulekhani।। HEP. Subse-
quently, Mr. Thakur held the position of
Managing Director of NEA from July 1988
to September 1992.

15

Another very significant move to
streamline NEA's management for better
organisational adaptability to the increas-
ing workload was the restructuring of its
organisation approved by the NEA Board
towards the end of the fiscal year. The new
organisation is planned to come into effect
from beginning of the new fiscal year. The
rationale behind the restructuring is stated
to be as follows:

* Rationalising of work load of Director-
ates to operate NEA more efficiently
with better co-oedination;

* Modification of the structure that
facilitates greater commercialisation of
NEA's operation and privatisation of
some NEA activities in the future;

० Pare staff positions where possible

Basically, the new organisation
divides NEA into four distinct functional
blocks. The first Planning and General
Management block comprises of the units
to cater to central level functions of
Planning, Finance and Accounts and
Human Resources and Administration .
The second block named Power Develop-
ment comprises of Project Preparation and
Studies and Project Implementation. The
third comprises of Generation and Trans-
mission and the last, Distribution and
Consumer Services. Major features of the
new organisation include the increased
management focus on DCS functions,
inclusion of RE as a DCS function, and the
merger of the former Construction Direc-
torate functions into generation and
transmission and power development
blocks. The new organisation structure is
shown in the chart attached to this review.

Administration and Human Resources
Development

With an aim to boost personnel
morale and efficiency by the timely
delivery of administrative services, the

FY 95/96 : A YEAR IN REVIEW

process of promoting personnel to
vacant positions and filling up the
remaining vacancies continued down
the rungs of seniority (see insets).
Because of the large number of
personnel and applicants involved in
the appointments to the lower levels,
there was some delay in bringing
forth some of the results. However, it
is hoped that this will be cleared in
the near future.

Staff Promotion FY 95/96

Non-Tech

nings. The last year 1,383 employees
availed of the medical services.
Similarly, 32 employees who had met
with some form of accident benefited
from accident insurance — the total
claim amounting to NRs. 420,082.
Completion of the personnel record
compilation and the coming into
effect of the agreement with Rastriya
Beema Sansthan has brought into
effect the scheme to insure the lives
of all NEA employees. Insurance
claims for seven employees who
expired during the past year has been
settled.

Personnel Status FY 95/96

Non-Tech। Total
MD 1

Professional training, seminars,
workshops, conferences and aca-
demic studies to strengthen staff
competency continued with almost
600 staff members availing some form
of training at home or abroad (see
inset). Notable in the year's events

156
1 992 882 1,874

Other attractive perks which
were added to improve prospects of a
career in NEA included monetary
allowances for office uniform,
afternoon meals and residential
electricity applicable to all levels of
staff. Welcome administrative reforms
also included increments in travel and
daily allowances and a cash and shift
increment. A total of 1701 employees
benefited from staff loans from NEA
resources categorised into loans
equivalent to staff salary of 3 months,
6 months, 1 year, 5 year and 7 year.
Attempts were made to enhance the
medical check-up facilities provided
to NEA staff by improving on the
medical facilities and adding a day -
clinic at the Central Office in addition
to the one operational in the eve-

Staff Recruitment FY 95/96

Non-Tech। Total

was the training arranged on the
subject of Finance for Non-Financial
Executives in conjunction with
Consultants. Apart from the academic
aspects presented to NEA's execu-
tives, the training provided a broader
external view of NEA's capability in
the financial market.

Staff Training and Development
FY 94/95

in-country] Abroad

Higher studies

Seminars, Sympo-
siums and
Conferences

Training
In House Training 279
Others

The Afro-Asian Conference

A very significant occasion that
took on international colours was the
organisation of the Third International
Conference on Power Development
in Afro-Asian Countries organised by
the International Association on
Electricity Generation, Transmission
and Distribution (Afro-Asian Region)
in association with NEA in
Kathmandu from March 4-7, 1996.
The theme of this session was Power
Development Strategies for the
Twenty-First Century. The seminar
was attended by 329 participants and
observers from 32 countries. The
Conference was inaugurated by the
Minister for Water Resources,
Pashupati Sumshere Rana. Among the
many VIPs attending the Conference
was Mr. Jesus Fransisco, Vice
President of the Governing Council
and the Energy Minister of Egypt, His
Excellency, M. Maher Abaza, who
also presented a very foresighted
paper on Pan-African-Asian-European
Regional Electric Interconnection.
Another very interesting presentation
was on The Three Gorges Project by
Mr. Cheng Shan, Executive Vice-

16

FY 95/96 : A YEAR IN REVIEW

President of the Techncial Committee
for China Yangtse Three Gorges
Project Development Corporation.
Keynote addresses on contemporary
issues were also delivered by Mr.
S.K.Malla, Chairman, Tariff Fixation
Commission, Mr.Y.S.R. Prasad,
Managing Director, Nuclear Power
Corporation, India, Mr. Mohd. Annas
Bin HJ Nor, Director General of
Department of Electricity Supply,
Malaysia, and Mr. C.V.J Varma,
Member Secretary, Central Board of
Irrigation and Power, India.

The Afro-Asian Conference

Mr. K.C. Thakur, the Managing
Director, also held the responsibility
of the Chairman of the Local
Organising Committee which had
nine sub-committees dealing with
specific arrangements for the Confer-
ence. Mr. Thakur was also the
Chairman of a Technical Session on
Supplier Consumer Relations in the
Market Economy.

Towards the end of the Confer-
ence, it was announced that H.E. M.
Maher Abaza had assumed the
position of the President of the
Association in place of Dr. Tan Sri Ani
Arope.

The Planning Directorate :

The Planning Directorate
completed some key strategic
exercises including an investment
plan backed by a least cost generation
expansion plan. The investment in
added generation was also linked to

required reinforcement and augmen-
tation in transmission, distribution
and grid facilities. Identification was
also made of other supporting
services such as the LDC, training
centres, central workshops, small
hydro projects, disaster prevention
measures, etc.

The investment plan was used to
study its impact on the tariff employ-
ing ruling covenants such as the self
financing ratio (SFR) and rate-of-return
(ROR) on equity. The studies were
used to propose a tariff
increase after a two-
year lull. The Tariff
Fixation Commission
(TFC), after consider-
able deliberations,
approved a tariff hike
which went into effect
with the billing for the
month of Jestha, 2053
(May/June 1996). Major
aspects of the new tariff
are presented ina
schedule in this
Review. However, this
decision was chal-
lenged by INGOs and
NGOs and a case was filed in the
Supreme Court against NEA, Ministry
of Water Resources (MOWR) and the
Tariff Fixation Commission (TFC).

As a regular annual exercise, the
Planning Directorate also undertook
the preparation of NEA's annual
development budget for the FY 1996/
97 incorporating contributions from
the HMG and Donor institutions.
Apart from the focus on the 144 MW
Kali Gandaki A construction works,

Development Budget for FY 1996/97

a Sector-wise Distribution :

Hydro Generation

( New and refurbished)

Thermal generation
Transmission & Distribution
Institutional strengthening works
Hydro-generation studies
Others

the budget also proposed some new
works iacluding preliminary engineer-
ing studies for the 43 MW Middle
Marsyangdi HEP and the undertaking
of the 2OMW Modi Khola HEP with
HMG equity financing and loan
financing from South Korea's Eco-
nomic Development Co-operation
Fund (EDCF). Besides identifying the
need to initiate reinforcement works
on transmission and distribution
systems after the completion of
planned generation additions, the
budget also makes provisions for
taking up preliminary work for two
small hydropower projects in the
districts of Humla and Gumgadhi to
replace the solar installations there.

The new FY 053/54 budget (see
inset) totals NRs. 6,683,902,000 with
HMG contributing 8.32 percent and
NEA 15.42 percent. The remaining is
met by 14.62 percent foreign grant
and 61.64 percent concessional loan
from international donor agencies. It,
must be noted that these estimates of
expendilure are in addition to the
estimates of NEA's own resources for
capital and O&M works undertaken
by NEA.

In keeping with the Govern-
ment's policy to encourage the
participation of the private sector in
the development of the power sector,
NEA responded by helping out Himal
Power Ltd. (HPL) with the final
documentation required for the
financial closing of the Khimti।
following HMG''s approval of project
loans. After considerable efforts, the
financial closing of the Project
occurred on June 26, 1996.

Following close to
the Khimti। HEP, the
second private sector
undertaking, namely the
36 MW Bhote Koshi

41.54 M% HEP featured in the
9.24 % years activities with
33.37 % positive negotiations to
2.57 % reach a Power Purchase
2.24 % Agreement (PPA) with
: ° NEA. The Minutes of
11.04 %। Agreement was signed

पृ

17

FY 95/96 : A YEAR IN REVIEW

[क पापा

along with the Final Draft of the
Negotiated PPA on February 29,
1996. Towards the end of the
financial year, preparations were
ongoing for the final signing of the
PPA.

Finance

The financial picture remained
encouraging for another year. Over
the year NEA made cash payment of
NRs. 1262.1 Million as interest on
loans (including arrears) and
NRs.195.8 million in repayment of
principal. In addition, NRs. 224.5
million was paid as income tax. The
total paid to the Government Exche-
quer was thus NRs.1682.4 Million.

The Finance Directorate also
completed the special audit of the FY
1994/95 undertaken by Auditors,
Price Waterhouse and BRS & Co.
Likewise, the preliminary report on
the statutory audit for the year 1994/
95 was submitted by Auditors,
B.K.Agrawal & Co.

In terms of the directives issued
by the Public Accounts Committee,
NEA also cleared about 32 percent of
the Auditor's remarks for the Fiscal
Year 1995 (Part।) and 26 percent of
the remarks on Part Il.

The past fiscal year, NEA's total
revenue of NRs. 3,927.20 million
showed an estimated increase of
about NRs. 463.7 million or 13.39
percent over the previous year's
figure. The total O&M expenses, on
the other hand, is estimated at NRs.
3,187.00 million. Net profit before
tax is estimated at NRs. 618.70
million.

Engineering

The actions in the Engineering
Directorate for the year were concen-
trated in initiating studies of hydro-
power projects as well as in launching
fast-track projects into their imple-
mentation orbits.

The studies on screening and

ranking (S&R) which evaluates
hydropower projects in terms of their
engineering and environmental
attributes is a new approach to
preparing a pipeline of hydropower
projects for future development. It
must be remembered that the absence
of studied projects has led to the
vacuum in generation plans over the
last ten years. The S&R studies are
financed through a US$5 Million
allocation from the PSEP Develop-
ment Credit Agreement with the
World Bank. The studies are being
undertaken by NEA with Canadian
International Water and Energy
Consultants (CIWEC ) as the Consult-
ants.

Equal efforts were devoted to
getting hydro-generation projects such
as the Modi and Chilime HEPs off the
ground and pressing on with the
construction of the Puwa Khola HEP.
The foundation stone for the Puwa
Khola HEP was laid by the Minister
for Water Resources, Mr. Pashupati
Shumshere Rana, on October 10,
1995. Puwa has earned the distinction
of being a project attempted entirely
with NEA expertise. The 14MW Modi
Khola HEP finally got off the ground
with a foundation ceremony per-
formed by the Minister for Water
Resources, Mr Pashupati Shumshere
Rana, in May 17, 1996. The project
development strategy for the Modi
HEP had long attempted to affiliate
the private sector participation but
without reaching the desired arrange-
ments. Initial civil works commenced
with entirely NEA financing. Loan
financing from the South Korea's
EDCF is expected for the electro-
mechanical component. From FY
1996/97, budgetary estimates provide
for HMG contribution for the project
works.

The 20 MW Chilime HEP,
considered as a very attractive project,
continued with preliminary tunnelling
works with NEA's sole financing. The
Project is envisaged to operate as a
public limited company with share
contributions from NEA, the domestic
private sector and NEA's staff holdings

in their Provident Fund. The Chilime
Power Co.Ltd was registered with the
Department of Industries on October
31, 1995. Measures to mobilise
financing from entrepreneurs, more
specifically fourteen of the country's
major Commercial Banks and
financial institutions, called for
additional studies from an Indepen-
dent Engineer, CIWEC being later
appointed for this work. A meeting of
prospective investors, lead by the
Himalayan Bank, was arranged to
appraise the Banks of the project's
plus-points in terms of investment
opportunity.

NEA has attempted to undertake
the development of the 14MW Upper
Modi Khola as a joint venture with
domestic or international investment.
Solicitations were made to the private
sector entrepreneurs for proposals to
develop the project at a specific
energy buy-back rate. Negotiations
were initiated with the firm submit-
ting the best evaluated proposal - a
Chinese promoter, China Gezhowba
Construction Group (CGCG).
Negotiations have been delayed
because of the need to review certain
aspects of the feasibility study.

Environment

Domestic and international
concern for the environment and the
requirement for power sector projects
to conform with environmental
regulations made their presence felt
throughout the year. The hydropower
project and its the implications on
sociological, economic and ecologi-
cal impact on the project site contin-
ued to be the subject of intense
public interest. Environment was also
the theme of a very thought provok-
ing workshop organised in
Kathmandu, June 26-27, 1996, by
WECS/TERI (Tata Energy Research
Institute) on the subject, Managing
the Environmental Impact in Water
Resource Management.

Major environmental concerns
were focused on the rehabilitation
and resettlement aspects of the Kali

निरा ना दन ee

18

FY 95/96 : A YEAR IN REVIEW

Gandaki A HEP. A number of on-site
public participation programs were
organised to deliberate on the eco-
sociological aspects. These were
followed by interaction sessions with
NGOs professing concern in the
project's environmental performance.
The proposed loan financing for the
Kali Gandaki A HEP has a component
of approximately US$2.0M for
environment related works and an
additional technical assistance of
US$0.534M for the institutional
development of the environment unit
in NEA.

Environmental studies this year
were also undertaken for the Khimti-
Bhaktapur-Balaju 132 kV transmission

Interviewing smoky tempos

line, the Chilime HEP, and the
multifuel addition at Duhabi. Moni-
toring of mitigation measures were
continued for the Puwa and Modi
HEPs. NEA's Environment Unit is also
reviewing the status of families
rehabilitated during the construction
of the Marsyangdi HEP.

Generation and Transmission

Apart from the commissioning of
the isolated, 400 kW, Achham SHP
on December 26, 1995, (later
inaugurated by the Prime Minister,
Sher Bahadur Deuba, on May 22,
1996) the past financial year ended
with no new generation facilities
added within the NEA system. A
welcome addition did occur with the
completion of the Trisuli-Devighat
Upgrading Project which added 95.3

GWh ( 11 MW in terms of refurbished
Capacity) to the system in November
1995 by improving the dependable
discharge through modifications in
intake design of the Project.

Captive generation available in
large industries was also identified as
source of peaking power. Initiated
through the DCS Directorate, agree-
ments were signed with 18 industries
for the operation of their captive
generation during peak load hours
from 5 to 9 PM in the evenings during
the five winter months. This provided
NEA with about 2.07 GWh of
additional energy and a capacity
addition of approximately 6.5 MW.

NEA was also
nominated as one of
the Promoters of the
Melamchi Diversion
Scheme which is to run
along private company
lines with the formation
of the Melamchi Water
Company. NEA will
own equity shares in
the company and also
purchase power
through a PPA from the
15MW, 54 GWh
hydropower project
appended to the water
supply project. Two small hydro-
power projects constructed within the
framework of other sector projects
were also proposed for transfer to
NEA as equity transfers. These inclu-
ded the 3.152 MW low-head hydro-
power project in the Chatra Irrigation
Canal, in Sunsari district, constructed
by the Sunsari-Morang Irrigation
Project and the 285 kW Saraudi SHP
constructed by the Agriculture
Development Project, at Tanahu.

On the transmission side,
construction of the Duhabi-Bhantabari
132kV transmission line was com-
pleted on February 19, 1996, and
resulted in an added import of up to
30MW from BSEB. The transmission
line involved an interlink between the
132 kV sub-station at Duhabi in
Nepal and one at Kataiya, within

Indian territory. Another transmission
line in the news was the Attariya-
Dadeldhura-Dipayal 66 kV transmis-
sion line which was inaugurated by
the Prime Minister, Sher Bahadur
Deuba, on May 22, 1996. It will be
recalled that the line was constructed
with financial assistance from the
French Government.

With these generation enhance-
ments, added imports from India and
a very finely tuned study of despatch-
ing schedule, the NEA system
successfully brought to an end the
'load shedding' that had been
resorted to since the past few years.

During the past financial year,
the electrical energy available for use
within the NEA system totalled
1261.76 GWh which was an increase
of 144.30 GWh (12.91 percent) over
the previous year's figure of 1117.46
GWh. This comprised of 1074.25
GWh (85.14 percent) obtained from
NEA hydro generation and 36.56
GWh (2.90 percent) from NEA's
thermal generation. A total of 150.95
GWh was purchased from other
utilities comprising of 70.94 GWh
(5.62 percent) from electrical utilities
in India and 80.01 GWh (6.34
percent) from BPC in the Nepalese
private sector.

Over the financial year, the
system peak of the interconnected
system was recorded on December
27, 199§ at 275 MW. This was
12.70 percent increase over the figure
of 244 MW for the last winter
(December 25, 1998).

Operations and Maintenance

A notable event in the O&M
activities was the organisation of a
symposium on the theme, Energy
Management in the Present Context,
held within the premises of the Trisuli
HEP from December 4-6, 1995.
Nineteen papers were presented over
four sessions. Former Managing
Director of NEA, Mr. Ajit Narayan
Thapa was the chief guest for the
occasion. The symposium had

19

FY 95/96 : A YEAR IN REVIEW

FY 93/94: A Year In Review

en eel

participants from the Tribhuban
University, RONAST, and Nepal
Telecommunication Corporation
besides those from organisations
belonging to the power sector.

Some major works undertaken
over the year included the successful
repair and maintenance of Unit No.1
of Gandak Power House, Unit No. 2
of Panauti Power House, Unit No 3 of
Sunkoshi Power House, the turbo-
charger for the Duhabi multifuel, and
machines and control gear of the
Marsyangdi diesel centre — all the
maintenance works being done by
NEA technicians.

Another notable work was the
cleaning and repair to damages
resulting from the flood waters that
entered the Phewa power house on
September 17, 1995 covering all the
machinery within with mud and sand.
The water entry into the power house
was the result of blockage to run-off
water because of a land slide on the
steep slopes along the penstock
alignment following torrential rains
the day before.

Repair works on power trans-
formers, reactors, towers, tower
foundations and circuit breakers at
various places along NEA facilities
also featured in the years activities.
These helped NEA provide continued
supply to its customers without
extended outages.

Distribution and Consumer
Services

Overall, the number of consum-
ers served by NEA increased by
approximate 8 percent and ap-
proached towards the 15 percent
figure. With the completion of the
Achham small hydropower project,
the district of Achham was the new
addition of districts to be electrified
bringing the number to 70.

Construction of transmission
lines to the districts of Dadeldhura,
Doti and Pyuthan were completed
bringing in the benefits of supply

from the national grid in addition to
existing supplies through small hydro
and diesel plants. Of significance is
the electrification of the sacred
pilgrimage spot of Swargadwari in
Pyuthan. By the end of the financial
year, the few districts still not electri-
fied by NEA comprised of : Khotang,
Dailekh, Lamjung, Dolpa and Kalikot,
Projects are at hand to bring electricity
to the district headquarters of all these
districts in the near future.

Over the past financial year, the
number of consumers grew by an
estimated 36,236 or 7.90 percent over
the previous years figure to reach a
total of 494,836. The Domestic
category of consumers accounted for
94.92 percent of the total consumer
numbers, 35.54 percent of the sales
and contributed to 36.79 percent of
the revenue. The industrial category
consumers formed only 2.51 percent
of the total number but consumed
37.83 percent of sales and accounted
for 37.12 percent of the revenue.
Non-commercial category constituted
1.60 percent of the consumers and
accounted for 5.98 percent of the
sales and 8.25 percent of the revenue.
Likewise, the commercial category
constituted 0.48 percent of the total
number, consumed 6.57 percent of
the sales and provided 9.06 percent of
the revenue.

Electricity sales which totalled
937.494GWh was an increase of
about 112.911 GWh (13.69 percent)
over last year's sales figure. Internal
sales within Nepal increased to
847.159 GWh and accounted for
90.36 percent of the total sales and
registered an increase of 62.055 GWh
(7.90 percent) over the last year's
figures.

Despite concerted efforts through
the years ( see inset) system losses still
remained the cause of considerable
concern that was voiced by the local
press and Donors. The DCS Director-
ate is of the opinion that technical
lasses will be reduced through
ongoing projects such as the Seventh
Power Project, the PSEP, the

Kathmandu Valley Distribution
Reinforcement Project, and the
Computerised Billing Project plus
NEA's recurring annual efforts in
rehabilitation and distribution. As part
of its non-technical loss reduction
drive, NEA embarked on a media
campaign through the press, the radio
and the TV to bring about public
awareness of the fact that
unauthorised use of electricity is a
public crime and involves consider-
able physical risk. In addition, the
DCS Directorate has put forth a
definite proposal for the reduction of
non-technical losses. It is expected
that ADB will support this program
with concessional financing. It is
noted that acts such as direct tapping
of overhead LV lines, faulty meter
reading, inaccessibility to consumer's
premises, under-billing, un-metered
supply, faulty meter connection in
large consumers and incorrect
disposition of cut-outs in the con-
sumer meter box constitute some of
the causes of non-technical losses.

Historical Account of Losses
Loss Remarks
29.01

28.39

Year

1985/86
1986/87

Loss reduction
Project initiated

1987/88
1988/89
1989/90

24.89
25.01

28.03 Trade and

transit impasse
1990/91
1991/92
1992/93
1993/94
1994/95

24.99
23.70
25.20
25.46
25.06

The Private Sector and Indepen-
dent Power Producers

June 26, 1996 finally saw the
occurrence of the financial closing for
the 60MW Khimti। HEP developed
by Himal Power Ltd. (HPL), a Nepale-
se company with major shareholders

20

FY 95/96 : A YEAR IN REVIEW

comprising of BPC, Statkraft s.f., ABB
Energi a.s., and Kvaerner Energy a.s.
Sale of interim energy prior to the
Scheduled Completion Date also
comprises a equity contribution in the
project financing. Loan financing for
the project originate from the ADB,
IFC, NORAD and Eksportfinans, the
first two Lenders also providing sub-
ordinated loans. NORAD also has a
grant component in the project and
the Nordic Development Fund (NDF)
has equity contribution in the form of
Income Participation Certificates.

Major contractors in the Khimti।
Project will be the joint venture
between Statkraft ANLEGG and
Himal Hydro Construction for the
civil construction and engineering.
ABB will be the contractor for the
equipment supplier and installation.
Project Management will be handled
by a joint venture between Statkraft
Engg a.s. and BPC. The engineering
firm of Morrison and Knudsen has
been appointed the Independent
Engineer to the Project.

The Khimti। is slated for
Commercial Operation Date of
December 4, 1999. Power evacuation
from the plant will be through a 132
kV transmission line routed through
Sunkoshi to Bhaktapur, Chapali to
terminate in the Balaju sub-station.
NEA has the responsibility to con-
struct this transmission line and
purchase all power generated by the
project through a PPA which was
signed with NEA as an Amended and
Restated Agreement on January 15,
1996.

The private sector development
of the Bhote Koshi also followed
close on the heels of Khimti। with the
signing of the Final Negotiated Draft
of the PPA. A private company called
the Bhote Koshi Power Company was
established on June 23, 1996 to
develop and operate the company,
the major shareholders being Himal
International Power Co, Panda Nepal
and Resource Development Consult-
ants, Nepal, the latter two being
subsidiaries of parent companies in

the USA. The company intends to
undertake the project with loan
financing from International Finance
Corporation (IFC), US Import-Export
Bank and Overseas Private Investment
Corporation. The Bhote Koshi is
scheduled to come into commercial
operation on July 1, 2000. Power
generated by the Bhote Koshi HEP
will be delivered at Sun Koshi sub-
station after which further evacuation
will be through the 132 kV line
referred to in the Khimti। project. As
for the Khimti 1, NEA will purchase all
energy generated by the projects
through a PPA.

The 600 kW isolated SHP at
Namche, Solukhumbu was inaugu-
rated by the Minister for Water
Resources, Mr. Pashupati Shumshere
Rana, on October 9, 1995. Con-
structed with grant financing from the
HMG and the Austrian Government,
NEA was the implementing agent for
the project. A private limited com-
pany named OKO Himal has since
been formed to run the project on an
autonomous basis. NEA holds equity
shares in the company.

BPC strengthened their stand as
the largest private enterprise in the
private sector with the undertaking of
the 60MW Khimti। Project. BPC
underwent some major corporate
changes after the transfer of United
Mission's shares held in the Andhi
Khola Project to HMG. However,
BPC was given the responsibility to
continue with the operation of the

Jhimruk and Andhi Khola
Buy-Back Rates (Per Unit)

Jhimruk Energy :

from January 1, 1995 NRs. 2.18

Andhi Khola Energy :

( exclusive of royalty and taxes)
i) FY 2047/48 & 048/49 NRs.
1) FY 2049/56 NRs.
111) FY 2050/51 NRs.
iv) FY 2051/52 NRs.
v) FY 2052/53 NRs.

Andhi Khola and the Jhimruk HEPs.
All of the Jhimruk generation and a
major portion of the Andhi Khola
generation is sold to NEA through
PPAs ( see inset )

Nepal-iIndia Power Exchange

Following talks with the Bihar
State Electricity Board (BSEB) in Patna
by an NEA delegation led by the
former Managing Director, Mr.
S.B.Pun in September 18-20, 1995,
and the completion of the Duhabi-
Kataiya 132 kV transmission line, a

Highlights of the
Power Trade Agreement

= party ( government, semi-
government or private) may
enter into a power trade
agreement;

the parties will have the
mandate to set the agreement
parameters including the

tariff;

respective governments will
assist the parties to implement
agreements in accordance with
existing laws and regulations;
and

the parties will be granted all
incentives and concessions of
their respective countries.

very significant event in the chapters
of India-Nepal Power Exchange
occurred with an addition to the level
of import from India. The additional
30MW available through this link
helped in avoiding the resort to "load
shedding" within the NEA system.
Earlier NEA, with its own system ina
condition of energy deficiency, had
assisted BSEB with a short-term export
close to 10 MW to cope with condi-
tions following a major electrical
failure in the BSEB electrical system.

A very significant event during
the past year related to India-Nepal
Power exchange involved the signing
of the Power Trade Agreement in
Bombay with features shown in the
inset in the next page.

21

FY 95/96: A YEAR IN REVIEW

Despite the reported dearth of
concessional financing and the onset
of the resource crunch in the interna-
tional finance market, there was
healthy interest in NEA's power plans
from Donors and Lending Agencies
(see inset). Also, with the deferment
of the Arun Ill HEP, financing
commitments for the Project made by
many Donor Agencies were diverted
to alternative projects.

The ADB emerged as one of the
major co-financer for the Kali Gandaki
A HEP with a committed concessional
loan of U$ 160M. In addition a
Technical Assistance was piggy-
backed to the loan to assist NEA
undertake study exercises comprising
of institutional strengthening for
NEA's environment unit, and the
undertaking of load forecasting, rural
electrification and cost-based tariff
studies. KfW opted to divert its

financing to the Middle Marsyangdi
HEP and enhancements to the Load
Despatching Centre (LDC), in
Kathmandu. The French Government
was requested to finance some of the
transmission lines required to
reinforce the NEA system after the
coming into line of the Kali Gandaki
A. The World Bank chose to continue
its interest in developing the power
sector by proposing a Power Develop-
ment Fund (PDF) which would mainly
be a resource for private sector
enterprises in the power sector. A
financial agreement for a JICA grant to
implement the last stage of the
Kathmandu Valley Distribution
Project was also completed during the
fiscal year.

Public Relations
NEA continued to interact with

the public and the media and thereby
attain greater transparency in its

AREAS OF INTEREST

Kali Gandaki "A", Seventh Power Project, Loss

Reduction, Institutional strengthening of NEA''s
Environment Unit, System Planning Master Plan.

Power Sector Efficiency Project, Computerisation

of Consumer Billing (IDA), Introduction of
Computerisation in Accounts, Computerisation
of Material Management, Ranking and Screening

Middle Marsyangdi, Load Despatching Centre,

Marsyangdi Trifurcation Modifications.

DONOR
ADB
World Bank

Studies

KfWw
OECF
JICA
Debt Relief Fund (DRF)
FINNIDA

Kali Gandaki A, Kulekhani Disaster Prevention Hl;
Kathmandu Valley Distribution.

Modi HEP, Puwa HEP.

Khimti।-Sun Koshi-Bharatpur-Balaju 132 kV TL;

Duhabi Multifuel

Finnish Export Credit (FEC)

Duhabi Multifuel extension.

GtZ Devighat-Dhading 33 kV TL, Small Hydro Master
Plan,
ODA Hetauda Diesel Refurbishment

Govt. of France

Nordic Development Fund

Transmission Line Reinforcements and RE

Duhabi Multifuel, Dumre-Besishahar 33 kV TL,

High Voltage Spare Parts

activities. The activities were particu-
larly evident in the proceedings for
the Kali Gandaki A project. A large
number of public hearings and
interaction sessions were arranged at
the site, in Syangja, and at
Kathmandu. Response from the local
community, the press, the NGOs and
INGOs was very encouraging. A
Project Information Centre for the Kali
Gandaki A Project was established in
NEA's headquarters to serve persons
and institutions wishing to obtain
greater information on the. project.

The interest on NEA's activities
was also manifest in the local papers
and NEA's response to queries and
comments posed by the press also
showed healthy bilateral dialogue.

Staff and Sports and Socials

Increase in the sports activities
marked the years activities. Apart
from sports items such as badminton,
carom, chess and quiz contests
undertaken as regular features in
NEA's anniversary celebrations, an
inter-office volley ball contest was
organised in Nepalgunj to mark the
Golden Jubilee Birthday Celebrations
of His Majesty the King. Another
sports event in which NEA won with
flyig colours was the open volleyball
tournament organised by Reiyukai at
Dharan.

The combined efforts of three
NEA units at Pokhara ( Pokhara
Section, Gagangouda Section and the
Seti Hydropower Centre) also bagged
a prize for the best float exhibited
during a procession to mark the
Golden Birthday Celebrations of His
Majesty the King, at Pokhara.

Response for blood donations
from NEA staff showed encouraging
trends with many staff members
donating blood. In return, 84 staff
members were provided blood
through the Red Cross Society when
in need for their medical treatment.

22

FY 95/96 : A YEAR IN REVIEW

PROJECT HIGHLIGHTS

Kali Gandaki-A Hydropower Project

Treated as a priority project, the 144
MW Kali Gandaki-A hydropower project is
located about 500 m down stream of the
confluence of the Kali Gandaki and the
Andhi Khola rivers in the western region of
Nepal, and stretches mainly over Syangja
district but also covers Palpa, Gulmi and
Rupandehi districts.

The main components of the project
include a 6 km long tunnel with a diameter
of 7.4 m leading from the diversion weir to
a surface powerhouse housing three

26, Ps
# "क्ष ve

Kali Gandaki "

generating units to produce 144 MW and
840 GWh energy annually. The scheme is
of the run-of-river type having a daily
pondage with a peaking capacity for about
six hours. The project is to be
interconnected by 132 kV transmission line
to the national grid at Butwal (47.8 km) and
Pokhara (57.8 km). It is expected to start
generation by July 2000.

A" access road

The project is estimated to cost US$
452.8 million at January 1996 price level.
This cost includes IDC, physica!
contingency, price contingency and cost of
environmental protection works.

From the studies conducted, this

project has been established as very
attractive economically, socially,

23

technically and being a run-of-river type
scheme it has relatively very little
environmental effects, which can be
mitigated to a large extent.

At present, a 28.5 km access road has
been completed and all preliminary works
such as tenders for civil works are almost
complete. Bid documents for dam and
desanding basin, main tunnel and power
house have been received and evaluation
of these bids are in progress.

Project information centres have been
set up at the project site and the main
office in Kathmandu in order to maintain
project transparency and several public
meetings and discussions have been held.
The first such meeting was held in Jaipate
and Syangja Bazaar in March 1994 to
inform and discuss with the local public
about the project and its policy on land
acquisition, land compensation and
environmental issues. This was followed by
another in March 1996. Also, from the
beginning of 1996 several open house
discussions have been convened in
Kathmandu with the participation of
various NGO's and voluntary
organisations.

This project will be financed by
HMGN/NEA and loan assistance from ADB
and another donor agency. Loan
negotiations between HMGN/NEA and
ADB were successfully concluded in a
meeting held during June 10-14, 1996 in
Manila and the latter has committed to
provide US$ 160 million at concessional
interest rate. HMG is to finance US$ 32.8
million and NEA US$ 100 million.

Puwa Khola Hydropower Project

Funded jointly by HMGN and NEA,
the 6.2 MW Puwa Khola HEP, with an
average annual generation of 48 GWh, Is
the first hydropower project of that
magnitude to be undertaken by NEA

utilising in-house expertise for
detailed engineering designs and
contract management. The scheme is
located some 70 km from Charaali,
Jhapa and comprises of a 30 m long,
four meter high diversion weir, a

Working in the Tunnel

reservoir with 2000 cu.m. capacity
and a 3.2 m long tunnel, which leads
to the powerhouse situated about 700
m downstream of Rajduwali bridge on
the Mai Khola. The power will be
evacuated to Ilam through a five km
long 33 kV transmission line, which
will be interconnected with the
national grid at Anarmani by another
33 kV line.

With all contracts awarded for
civil and electro-mechanical works,
the project is expected to commence
generation by February 1998. The
present total contract price puts the
cost of the project at NRs. 500
million, about 100 million less than
the initial estimate.

Modi Khola Hydropower Project

This project, with an installed
capacity of 14 MW capable of
producing an annual energy
generation of 91 GWh, is located in
between Betini and Patichaur of
Tilahar and Deupar Village
Development Committee (VDC)s of
Parvat district, about 42 km. north-
west of Pokhara on the Pokhara-
Baglung highway. Its feasibility study
was completed by NEA in 1992 and

FY 95/96 : A YEAR IN REVIEW

engineering services for detailed
engineering were provided by a
Korean Consultancy firm under an
agreement with KOICA.

Among the main features, the
scheme includes a 5.5
m high, 33 m long
diversion weir, which
diverts the water of the
Modi Khola into a 100
m long desanding
basin through a 250 m
long underground box
culvert. An open canal
of 83 m length conveys
the water to a
regulating pondage of
26640 cu.m. capacity,
which is connected to
a semi-underground
powerhouse through a
1888 m long headrace tunnel and a
143 m long steel penstock.

The cost of the project is
estimated at NRs. 1500 million. Civil
works have been awarded and the
Republic of Korea is expected to
finance the electro-mechanical
equipment and a 40 km long 132 kV
transmission line from the
powerhouse to the national grid at
Pokhara. The project, scheduled to be
commissioned by FY 2054/55, is
being constructed by Nepalese
manpower and the experience gained

iranian

Bailley Bridge Construction
from this project will enhance the

Capability of NEA in constructing
future hydropower projects.

24

का पा

Chilime Hydropower Project

Located in Rasuwa district, this
project is designed to produce 20 MW
of power generating 137 GWh energy
annually at an estimated cost of NRs.
1600 million. The project is planned
to be constructed mobilising national
financial resources, local technical
manpower and financial contribution
from NEA staffs.

A presentation program on the
project was conducted in which 14
prominent local banks and financing
agencies were invited. Response from
all of them was very encouraging and
Himalayan Bank Ltd. was elected as
the lead bank to arrange the necessary
loan for the project. All NEA staffs
have also been requested to submit
their share commitment against the
proposed investment of 25% equity
share. A public company under the
name of "Chilime Hydropower
Company Ltd." was registered on
Kartik 14, 2052 and until the com-
pany functions, all related works are
being undertaken by NEA.

All detailed designs of the project
were completed using NEA's in-house
expertise. These designs were
reviewed and approved by the
Consultants, CIWEC, with minor
modifications in the power house and
tunnel. Ninety-five meter of tunnel

excavation has been
completed and civil
works for camp
facilities and access
road to the surge tank
are to commence soon.
The project is targeted
for completion by the
middle of 1998.

Dolpa Small
Hydropower Project

Construction
works on this project
commenced from
1993/94. Located near Dunai, the
district headquarters, the project
utilises the water of the Jairi Khola

FY 95/96 : A YEAR IN REVIEW

Re ee eee errr rere

through a 1.1 km long canal to
generate 200 kW of power, which
will be distributed to 5000 consumers
in Dunai, Shahartara and Jhupal
regions through 30 km. of 11 and 10
km. of distribution lines. The project,
which is being funded by HMGN, is
estimated to cost NRs. 81.8 million.

Kalikot Small Hydropower
Project

The construction of this project
was launched in 1993/94 with
financial assistance from HMGN. The
scheme diverts the water of Sanigad
river into 1.1 km headrace channel to
generate 500 kW of power. The
proposed 50 km of 11 kV lines and
22 km of 400 volt distribution lines
will serve some 1000 households
spread over 13 VDC's including
Manma, the district headquarters, and
adjoining villages of Khadachakra,
Mehalmune, Mumra, Rakhu,
Resilisipkam, Siuna and Phuket. The
project is estimated to cost NRs. 70.4
million.

Seventh Power Project

The Seventh Power Project is
being undertaken in two phases :
Phase। covers (i) rural electrification
of 513 villages spread over 10
districts to serve 83,500 new
consumers, and rehabilitation of
existing 11 kV and 400 volt
distribution networks in Dharan,

Reinforcing the 66 kV sub-station at Birgunj

Birgunj, Hetauda, Butwal and
Bhairhawa, (ii) construction of 276.6
km of 33 sub-transmission line and
associated 12 new 33 kV substations
along with rehabilitation of nine
existing substations thereby increasing
the substation capacity by 165 MVA
(iii) construction of a prestressed
concrete pole manufacturing plant at
Amlekhgunj with an annual
production capacity of 12,354 poles
of various sizes.

Phase I! of the project comprises
of {i) rural electrification of 22 districts
embracing 388 villages. This will
benefit 85,103 new consumers (ii)
construction of 60 km. of 33 kV sub-
transmission line and three new 33
kV substations, which will further
augment the substation capacity by
another 12.5 MVA.

The project cost, initially
estimated at US$ 64 million, is being
jointly met by HMGN/NEA and ADB.
Phase। of the project is fast approach-
ing completion while the second
phase is targeted for completion latest
by the end of 1997.

Kathmandu Valley HV Network
Reinforcement Project

Financed under an IDA loan
assistance, the project aims to
improve the power system reliability,
augment network capacity, improve
technical and operational efficiency of
the system and provide support for
interconnection
facilities at 132 and 66
kV levels mainly in the
Kathmandu Valley.

The project scope

(i) indoor gas insulated
substation and
conventional outdoor
66 kV substations at
Teku and Bhaktapur
respectively along with
extension and
reinforcement of ten
existing substations,

25

includes construction of

which will add to the system 120
MVA transformation capacity (ii) 3.5
km of four circuit tower for 66 kV line
between Siuchatar and Teku and 15
km of 132 kV double circuit between
Bhaktapur and Chapaili.

Acquiring right of way and
access for the transmission tine in
urban areas have been a major
stumbling block in the timely
completion of the project. Court stay
orders prohibiting such construction
have compounded this problem. After
a long delay, the project was able to
charge the Bhaktapur substation and
the Bhaktapur-Chapali line on July 15,
1996. The remaining components of
the project are scheduled for
completion in 1996/97,

Khimti Bhaktapur Balaju 132 kV
Transmission Line

In accordance with the Power
Purchase Agreement, the responsibil-
ity for evacuating power generated by
Khimti Hydropower Project, being
constructed in the private sector by
Himal Power Ltd., lies with NEA. The
main features of this project consist of
a 45 km long single circuit 132 kV
line from Khimti to Lamusangu, where
a switching substation will be created
to accommodate the incomer from
Bhote Kosi hydropower project as
well. Another 45 km long double
circuit 132 kV line will connect this
substation with a new 132/66 kV
substation at Bhaktapur, which will be
connected to the existing Balaju
substation through a 15 km long
single circuit 132 kV line using the
existing towers between Bhaktapur
and Chapali and the right of way
presently used by the 66 kV Chapali-
Balaju 66 kV line. This line will also
serve to transmit the power generated
by Bhote Kosi hydropower power,
which is also to be constructed by the
private sector.

Estimated to cost US$ 20.5
million, the project is to be built with
financial assistance from the Govern-
ment of Finland. Bids have been invi-

FY 95/96 : A YEAR IN REVIEW

—-_— SSS Sy

ted for the transmission line and the
substations separately and the project
is scheduled for commissioning in
February 1999 prior to the commis-
sioning of the Khimti power station.

Chilime Trishuli Devighat 66 kV
Transmission Line Project

A 39 km. long 66 kV line is
proposed for evacuating the 20 MW
of power generated by the Chilime
hydropower project. The line will be
linked with the national grid at
Trishuli substation, which will also be
interconnected with Devighat
substation. The project is estimated to
cost NRs. 126 million and scheduled
for completion by the middle of
1998. HMGN and NEA are to bear its
entire cost.

Kathmandu Valley Power System
Reinforcement Project

The Government of Japan has
been providing grant assistance for
the project with a view to improving
the power transmission and distribu-
tion system in Kathmandu Valley.
Phase। of the project was completed
in March 1995 and the first stage of
Phase।। involving erection of 11 kV
and 400 volt lines, distribution
transformers, addition of four cubicles
in Baneswor substation and construc-
tion of switching substation in
Maharajgunj substation was com-
pleted in Febuarary 1996.

The project has greatly reduced
voltage drop and line losses and
improved the reliability of the power
supply in addition to reducing the
frequency of faults and tripping of the
lines.

Works under the second stage of
Phase II are to commence from July
1996 and be completed by March
1997. Apart from the distribution
works, one 37.8 MVA 132/66 kV
transformer will be installed at
Siuchatar substation.

Kathmandu Valley Power System
Reinforcement Project

Duhabi-Bhantabari 132 kV
Transmission Line Project

The project, which is a part of
the Power Sector Efficiency Project
funded by IDA, was completed in
January 1996. The project consists of
stringing of 27 km of 132 kV second
circuit from Duhabi substation to
Kusaha and construction of 1.0 km of
double circuit and 14 km of single
circuit 132 kV line from Kusaha to
Bhantabari on the Nepal India border.

With the completion of this line,
NEA was able to import bulk power to
relieve load shedding in 1996. At

4

Dubahi-Bhantabari 132 kV Transmission Line

present, the quantum of import is
limited to some 20 MW but a 10
MVAR capacitor is presently being
installed at Duhabi substation to
enhance the transfer capability of the
line.

Dumre-Besisahar Rural Electrifica-
tion Project

The project is financed under a
loan assistance from the Nordic
Development Fund. Estimated to cost
NRs. 206 million, it is targeted for
completion in the current fiscal year.

Construction of 33 kV transmis-
sion line and 1.6 MVA substation is
complete and electricity is now
available at Udipur, Lamjung. 70% of
11 kV and 80% of 400 volt distribu-
tion line is complete and electricity
will be made available soon at
Besisahar. The formulation of User
Group is also underway.

Gaighat Diktel 33 kV Transmis-
sion Line

This scheme envisages the
electrification of Diktel, district
headquarter of Khotang, and its
surrounding villages at an estimated
cost of NRs. 48 million. Erection of
steel telescopic poles along the 68 km
route between the 33 kV substation of
Jaljale and Diktel is complete and
works on the line and substations are
to continue in the current fiscal year.

Modi Pokhara 132 kV
Transmission Line

This 40 km
transmission line is
designed to transmit 14
MW of power gener-
ated by Modi power
station, which will be
connected to the
existing 132 kV
Pokhara substation. To
be funded under loan

26

FY 95/96 : A YEAR IN REVIEW

assistance from Republic of Korea
Government, the line will be com-
pleted by the middle of 1996.

Computerised Billing

Financed under a loan assistance
from ADB, the pilot scheme of the
Computerised Billing Project went
into operation at NEA's Kathmandu
West Branch in Kathmandu, serving
about 22,000 customers with new
computerised bills since October 18,

Introducing Computers in Consumer Billing

1995. The introduction of computer-
ised billing has greatly facilitated
revenue collection and checked
demand for additional booking
manpower to cope with increasing
number of customers. Customers too
have benefited from the system in
numerous ways, the main ones being
(i) they may pay at any payment
counters (ii) any excess amount paid
by them is automatically adjusted in
the next month's bill (iii) rebate and
penalty application periods do not
vary between customers and (iv) bills
are more informative.

The project, which was origi-
nally conceived for application in 29
branches of NEA, will now cover in
addition 12 new branches and sub
branches. Under the present proposal,
Phase।। and Wl of the project will
cover 15 collection centres in
Kathmandu Valley and 25 outside
Kathmandu Valley respectively. IDA
has been requested for the financing
of the remaining phases of the
project.

Sindhull Ramechhap 33 kV
Transmission line

The scheme plans to electrify
Ramechhap district headquarters and
its neighbouring villages at an
estimated cost of NRs. 17.7 million.
Steel telescopic poles have already
been erected along the 30 km route
from Sindhuli substation to Manthali.
In the current fiscal years, remaining
works on the line and substation will
be undertaken.

Surkhet Dallekh 33 kV
Transmission Line

Under this
scheme, a 33 km long
33 kV transmission line
from Surkhet substation
to Dailekh is to be built
along with the electrifi-
cation of Dailekh
district headquarters
and its surrounding
villages. The project is
targeted for completion
by the end of the current fiscal year.

Achham Small Hydropower
Project

After its entire weir structure was
washed away by the floods of 1993,
reconstruction of the project was
completed in 2052/53 at a cost of
NRs. 98 million. The power station
was inaugurated by the Right

Inaugurating the Achham Small Hydro Project

Honourable Prime Minister Sher
Bahadur Deuba on May 22, 1996.

Although its present installed
capacity is 400 kW, the scheme is
designed for a capacity of 600 kW. A
total of 330 consumers is presently
being served in Mangalsen,
Jamalgaon, Bayalpata, Riddikot and
Sanphebagar through 20 km of 11 kV
lines with a further potential to serve
some 7000 consumers spread over
remote villages of Achham district. It
also provides water for irrigating 50
hectare of land. The survey works,
detailed engineering design and
construction of the entire project were
undertaken by Nepalese technicians
and contractors.

Attariya-Dadeldhura-Dipayal
66 kV Transmission Line

The project, completed at the
end of 2051/52 at a cost of NRs. 270
million, was inaugurated by the Right
Honourable Prime Minister Sher
Bahadur Deuba on May 22, 1996.
With the completion of this line, an
estimated ten thousand consumers in
this remote region have access to
reliable and regular supply of
electricity. The 106 km line is
designed for 66 kV but is presently
charged at 33 kV along with one 1.5
MVA, 33/11 kV substation at
Dadeldhura and another 3 MVA
substation at Dipayal. CEGELEC of
France supplied towers and conductor
for the line under grant assistance of
FF 185 million from the Government
of France while the
construction and
erection of the line was
undertaken by the joint
venture of Nepal
Electrical Works and
CCECC of China.
Oriental Electrical
Construction (Nepal)
and PEC of Calcutta
were the contractors for
the construction of the
substations. NEA
handled the project
design and contract
management.

27

FY 95/96: A YEAR IN REVIEW

PROJECT STUDIES

Study of Medium Hydropower Project

The main objective of this project is to
select the most suitable hydropower
projects in the range of 10 to 300 MW from
among those projects that have been
identified to date for advancement to
feasibility level. These projects along with
other projects already at feasibility level but
excluding committed projects will be
included in generation planning studies.

The study is to be conducted in three
phases : (i) Screening and Ranking Study
with techno-economic and environmental
parameters (ii) feasibility study of
seven most attractive projects and
(iii) detailed design and preparation
of tender documents of two projects
recommended by generation expan-
sion studies for system expansion.

An important part of the study
is the public consultation and stake-
holder participation. The overall
objective of this consultation
process is to build consensus on the
projects to be recommended for
further study. Apart from this, the
study intends to use local consult-
ants for feasibility studies of four
medium projects.

The first inter-agency meeting of
primary stake-holder was convened on June
17, 1996. The meeting mainly concentrated
on the methodology and criteria for the
study, which in turn will be applied for
coarse and fine ranking of the projects.
Using this methodology, a technical and
environmental coarse ranking of projects
and recommendations for fine screening
report has been recently prepared by the
Consultant, CIWEC for the second inter-
agency co-ordination meeting to be held
shortly. Out of 127 medium hydropower
projects included in this study, 22 has been
recommended for the fine screening study.
The entire study is scheduled to be com-
pleted within 22 months from the com-
mencement of the work i.e March 1996.

Kulekhani Ill Hydropower Project

According to the latest study conducted by
NEA, this project will generate 14 MW of
power with an annual energy generation of
40.82 GWh using the tail water of
Kulekhani। and an additional discharge of
Khani Khola river totalling 15 cumecs. The
headrace tunnel has a length of 4.45 km
and a 352 m long underground penstock
leads to the surface power house which
accommodates two units of turbo
generators. Power evacuation will be made
through a 500 m long 132 kV line
connected to the national grid at Hetauda.

- -~, न
. सा कन कुट ० A

ao

""Kulekhari lll Intoke Sire

Estimated to cost US$ 21.85 million,
the project could provide the much needed
peaking energy to the system by the year
1999. Mobilisation for construction works
would be relatively easy and quick as
infrastructure facilities such as road, camps
and construction power already exist. NEA
is planning to conduct detailed engineering
study and undertake construction of adit
tunnel in 1996/97.

Upper Modi Hydropower Project

This 14 MW project with an annual energy
generation of 91.2 GWh is a run-of-river
scheme with its headworks located about 6
km upstream from Nayapool in Kaski

ee oo, गा गााकााहाससााााााारमामबलललामानामकाबा-ममकलमाानामालामााकमममहमााााापाकाकाााायााापामामाममााााफालाकालााााााााााकालालालालालाालापालललाललकामाापकाा

28

FY 95/96 : A YEAR IN REVIEW

district. Major structures consist of a
diversion weir, intake, surface
desander, a 3.2 km long headrace
tunnel, surge tank, 263 m long
penstock and a surface power house.
The power generated will be
transmitted to the national grid
through a four km long 132 kV
transmission line. The total cost of the
project is estimated at US$ 28 million
and negotiations are underway with
private developers to construct the
project jointly with NEA so as to
complete it by 1999.

Chamelia Gad Hydropower
Project

Two alterative proposals are
considered under this project. The first
proposal, which is designed with a 51
m high dam and a regulating pondage,
has two alternative schemes with an
installed capacity of 30 MW (176
GWh) and 28.5 MW (164 GWh), The
second proposal, with a 10 m high
diversion weir, also offers two
alternative schemes, one with 16 MW
(117 GWh) and the other with 14 MW
(104 GWh). Among the four schemes,
the 30 MW and the 16 MW schemes
are more attractive, with the latter
producing cheaper power and energy
even though it produces lesser amount
of firm energy. A 130 km long (132 kV
for the 30 MW scheme and 66 kV for
the 16 MW) transmission line is
required to evacuate the power to the
national grid at Attariya.

Development of this project
would not only be instrumental in
harnessing the hydropower potential
of Western Nepal but also lead to
economic development of the region
as well. Survey of the transmission line
from Balanch to Dadeldhura was
completed in the last fiscal year and
the construction of a 21 km long
access road from Gokule to the project
site is planned to be constructed in the
current fiscal year.

Andhi Khola Hydropower Project

With the increasing demand in
the peak power and energy, the need

for another storage plant has been felt
very strongly. The pre-feasibility study
of this project was taken up in 1995
and preparations are being made to
take it through the first phase of the
feasibility level. In the pre-feasibility
study, the project has a capacity of
141 MW for an optimum dam height
of 178 m and a rated head of 299 m,
which would generate 660 GWh
annually. The live storage is estimated
to be 257 cu.m. At this stage of the
Study, it is estimated to cost US$ 507
million at the 1996 price level. An
attractive feature is that the
infrastructure built for the Kali
Gandaki-A project can be utilised for
this project as well.

Middle Marsyangdi Hydropower
Project

This 42 MW project was
identified and studied to the feasibility
level by NEA in 1994. The updating of
this study and preparation for detailed
engineering design will be taken up in
the current fiscal year for subsequent
implementation with financial assis-
tance from the German Government.

Project Identification
Programme

Desk Studies of ten Medium
Scale Hydroelectric Projects and
Reconnaissance Study of eight were
completed in fiscal year 2052/53
under the Project Identification
Programme. The reconnaissance
studied projects are :

1. Suni Gad (SMW) and Budhi Ganga
(25 MW) in the Far Western
Development Region,

2. Rahughat (18 MW), Bhurungdi (7
MW) and Madi (16 MW) in the
Western Development Region.

3. Sankhuwa (13 MW), Mewa (25
MW), Mai Loop (option - I: 45 MW
and option - ll : 72 MW) in the
Eastern Development Region.

Among the studied projects Mai
Loop Hydroelectric project is a storage
project and the others are run-of-river
type projects.

Licensing and Tax Implication

for Existing NEA System

( resume }

A. For Small Hydropower
Projects 1000 kW or less

* no license required
* no royalty

* no corporate income tax

B. For Hydropower Plants
greater than 1000 kW

¢ LICENSE

issued by MOWR March 20,
1995

license period 50 years

*¢ ROYALTY
for first 15 years :

NRs 100/ kW installed
Capacity/annum

2% of energy sales
after first 15 years :

NRs 1000/kW installed
capacity/annum

10% of energy sales

* CORPORATE INCOME TAX

15 year tax holiday
thereon 10% less than
normally levied

9

IMPORT FACILITIES

(equipment, machinery,
tools and spares)

1% customs duty on items
not manufactured in Nepal;

import license fee and sales
tax exempted

* effective from the date of
commercial operation

29

FY 95/96: A YEAR IN REVIEW

ee ee ' er nine Wom eee जना लपल ee a ee Ea eR RE Rinne = SIRE

BALANCE SHEET AS OF JULY 15

in million NRs

EQUITY AND LIABILITIES 1995* 1994 1993 1992 1991 1990 1989 1988
Equity

Share Capital 1,000.00 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0
Share Allotment Suspense 7,122.9 5,796.7 5,190.6 3,956.8 3,916.8 3,146.4 2,502.6 2,615.3
Capital Reserve 147.9 137.6 120.9 88.3 67.6 56.8 44.9 35.2
Reserves & Surplus (319.5) (346.0) (444.6) (550.8) (500.3) (75.6) 39.5 36.1
Revaluation Surplus 14,286.1  14,238.3 13,988.0  13,421.7 12,369.4 12,065.3 11,091.5 -
Insurance Fund 80.0 - ~ - - - - -
Total Equity 22,317.4 20,826.6 19,854.9 17,916.0 16,853.5 16,192.9 14,678.5 3,686.6

Long-Lterm Liabilities
Long-Term Loan 13,367.2  12,880.6 11,649.5  10,070.4 8,812.3 2,422.8 1,890.2 1,541.7
Total Long-Term Liabilities 13,367.2  12,880.6 11,649.5  10.070.4 8,812.3 2,422.8 1,890.2 1,541.7

Current Liabilities & Provisions

Deposit from Customers 90.5 36.0 42.4 25.5 24.8 20.4 12.4 13.6
Other Deposit 235.0 183.2 84.5 42.5 21.3 14.7 11.9 7.8
Creditors for Goods 28.9 5.9 11.2 12.8 10.3 \CreaitorsforGoods २280 59 112 12.8 103 116 191 उ0.9

Other Creditors 22.6 31.1 16.8 40.3 59.4 36.3 2.2 1.8
Payable to Others for power purchase 8.3 11.6 4.6 18.4 106.6 136.8 126.3 78.1
Payable to HMG for Interest 407.8 270.0 224.5 21.4 192.7 198.9 143.1 78.8
Payable to HMG for Other 263.2 182.2 124.9 31.5 73.3 - - -
Provision for Bonus 16.6 11.9 6.4 2.4 2.4 3.3 4.8 4.8

Provision for Gratuity & Pension 140.3 140.3 140.3 140.3 140.3 140.3 112.7 86.5
Provision for Medical Facilities 20.7 20.7 20.7 20.7 20.7 20.7 20.7 20.7
Provision for Accumulated Leave 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4
Wealth Tax 14.5 11.5 8.5 2.5 - - - -
Provision for Tax 34.4 34.5 7.2 7.2 7.2 28.4 35.0 35.8
Project Accounts Payable - - - - - - 28.4 6.0
Payable to HMG for Power - - - - 83.5 83.5 ~ -
Payable to HMG - 464.6 46.9 48.6 44.8 45.7 9.5 -
Royalty Payable 358.0 - - - - - - -
Total Current Liabilities & Provisions 1,654.2 1,416.9 752.3 427.5 800.7 754.0 539.5 378.2
branch Reconciliation - - 34.9 52.7 71.7 19.0 - -
TOTAL LIABILITIES AND EQUITY 37,338.8 35,124.1 32,291.6 28,4666 26,538.2 19,388. 17,108.2 5,606.5

* Subject to final audit

30

FY 95/96: A YEAR IN REVIEW

BALANCE SHEET AS OF JULY 15

in million NRs

ASSETS 1995* 1994 1993 1992 1991 1990 1989 1988
Fixed assets।
Land 665.3 636.4 611.4 578.9 537.6 499.9 478.4 46.1
Buildings 755.1 6464 601.3 573.7. 535.0 451.7 433.6 169.8
Hydraulic Plant & Machinery 19,991.7 13,802.5 15,490.00 15,171.2 14,568.0 9,872.3 9,617.0 2,587.1
Internal Combustion P & M 716.9 737.2 752.0 175.6 178.4 177.6 185.5. 52.0
Solar Power Plant 39.0 40.5 41.9 43.3 45.1 46.2 32.8 -
Transmission Line 3,024.9 2,704.6 1,815.0 1825.8 1,797.6 1,696.4 1,717.5 993.2
Substation 2,959.5 3,038.4 2,414.2 2,436.4 2,404.5 2,408.4 2,434.4 -
Distribution Line 3,983.4 3,042.6 2,244.0 2,226.5 2,142.8 1,479.2 652.0 409.3
Meter & Metering Fquipment 112.5 97.4 59.7 56.3 50.4 40.6 30.9 22.2
Consumer Service 28 48.4 50.3 52.7 52.9 51.9 46.8 42 1
Public Lighting 16.3। 4.4 15.0 15.5 15.9 16.3 15.4 14.8
Tools and Instrument 12.4 7.6 5.2 5.4 3.3 5.4 6.2 3.3
Vehicles 85.4 37.9 10.8 8.9 18.9 26.9 27.4 22.3
Furniture & Office Equipment 46.4 39.8 14.8 13.9 14.0 12.3 13.8 9.5
Miscellaneous 20 O04 0.2 0.3 0.3 0.2 0.1 0.2
Total Fixed Assets 28,413.6 26,894.5 24,126.2 23,184.6 22,366.7 16,785.3 15,691.8 4,371.8
Other Assets

Capital Works in Progress 5,229.) 5,439.3) 6,250.1 3,816.4 2,890.0 1,498.4 778.7 723.2
Investment in Securities 30.5 356.7 79.0 30.4 8.1 8.1 4 4.2
Total Other Assets 5,259.6 5,796.0 6,329.1 3,846.8 2,898.1 1506.5 782.8 727.4
Deferred Expenditure - 588.5 98.6 108.6 121.0 1698 2263 - -
Intern Unit Balance (Net) 144.5 143.7 _ - - - -
Current Assets

Inventories 429.1 340.4 289.5 270.4 250.8 217.0 198.3 141.1
Accounts Receivable 682.6 569.9 474.8 576.0 556.1 357.0 285.5 239.9
Advances Recoverable 471.7 149.8 145.8 113.8 122.2 154.2 74.1 69.7
Cash & Bank 1,349.2 1,131.2 817.6 3540 1745 142.4 75.7 56.6
Total Current Assets. 2326 2/1913 1,727. 1,314.2 1,103.6  870.6 633.6 5073
TOTAL ASSETS 37,338.8 35,124.1 32,2916 28,466.6 26,538.2 19,388.7 17,108.2 5,606.5

* subject to final audit

31

FY 95/96 : A YEAR IN REVIEW

PROFIT & LOSS FOR THE YEAR ENDED JULY 15

in million NRs

Particulars 1996** 1995* 1994 1993 1992 1989 1988

A. Revenue
Net Sale of Electricity 3,697.2 3,218.5 2437.4 1,786.8 1,440.4 690.3) 551.5
Income from Other Services 100.0 99.9 13.8 8.6 5.6 16.8 11.8
Interest & Other Income 130.0 145.1 160.5 109.0 68.2 . 3.6 -4.2
Total-A 3,927.2 3,463.5 2,611.7 1,904.4 1,514.2 711.9 567.5

B. Operation & Maintenance Expenditure

Operation & Maintenance 984.2 838.3 697.1 604.8 499.3 379.7 291.0 284.8 206.4
& General Expenses

Power Purchase 438.7 340.0 214.1 162.1 111.3 50.5 171.5 138.8 63.8
Provision for Expenses 4.1 7.7 8.5 7.0 8.7 - 48.8 26.2 26.8
Bad debts written off - - - - - - 0.3 0.2
Royalty 200.0 186.8 - - - - 0.3 0.2
Depreciation 1,400.0 1,296.0 1,202.4 1,026.0 953.6 879.7 683.9 578.7

Deferred Expenditure Written off 160.0 162.0 66.5 53.6 45.1 56.6 56.6 -

Total-B 3,187.0 2,830.8 2,188.6 1,853.5 1,618.0 1,366.5 1,252.1 1028.7

. Net Operating
Surplus (Deficit) (A-B) 740.20 632.7 423.1 50.9 (103.8) (373.9) (466.7) (316.8)

Loss of Capital Assets - - 35.8 - - - - _
Interest on Long-Term Loans 821.5 797.0 716.6 625.5 632.2 635.1 129.0 130.3

Profit and (Loss) Prior Year's (81.3) (164.2) (329.3) (574.6) (736.0) (1009.) 595.7 (447.1)
income & Expenses Adjustment

Prior year Income / (160.0) (397.0) (411.7) (48.8) 75.6 15.4 (41.4) 33.3
Expenses Adjustment

Profit & (Loss) after (241.3) (561.4) (741.0) (623.4) (660.4) (993.6) (637.1) (413.8)
Prior Year Adjustment

Transfer from 880.0 671.6 869.2 729.6 610.0 568.9 522.0 424.2
Revaluation Surplus

Excess Provision Corporate Tax 10.4
written back (1993-94)

Transfer to Insurance Fund . 80.0
written back (1993-94)

Net Profit (Loss) Before Tax (50.4)

Interest Tax . . ~ -
Corporate Tax - -
Net Profit/(Loss) after Tax (50.4) (424.7)

* Subject to final audit जत Provisional Figures

32

FY 95/96: A YEAR IN REVIEW

HIGHLIGHTS OF 1995/96

Description Increase/Decrease
Amount Percent
3,927.2

3,697.2
230.0

Total Revenue (M. NRs)
Net Sale of Electricity (M. NRs)

3,463.5
3,218.5
245.0

Income from Other Services (M. NRs)

Operating Expenses,

Including Depreciation (M. NRs) 3,187.0
1,400.0
618.7
821.5
15,609.0

30,785.9

2,830.8
1,296.0
110.2
797.0
13,367.2
28,413.6

Depreciation (M. NRs) + +

Net Income, after interest befor tax (M. NRs)

Interest on Long-Terms Loans (M. NRs)

Long-Term Loans (M. NRs)
Net Fixed Assets (M. NRs)

Number of Customers
Total Sales Of Electricity (GWh)

Internal Sale (GWh)

Average Customer's Consumption (KWh) 7
Average Price Of Electricity (NRs/KWh)*

494,836
937.494
847.159
1712.02
4.36

458,600
824.583
785.104
1711.98
4.10

36,236
112.911
62.055
0.04
0.26

275.0
1261.76
1074.25
70.94
80.01
90.34
36.56
24.55

244.0
1117.46
848.74
113.84
73.96
39.48
80.92
25.06

31.0
144.30
225.51
(42.90)
6.05
50.86
(44.36)

Peak Load Interconnected System (MW)
Total Available Electric Energy (GWh)
Hydro Generation (GWh)

Purchased Energy (GWh) India
BPC

12.70
12.91
26.57
(37.68)
8.18
128.82
(54.82)
(0.51)

Exported Energy (GWh)
Thermal Generation (GWh)

Net System Losses (Percentage)

Note:
* Figures for 1996 are provisional.
+ Internal
++ On revalued assets

33

FY 95/96 : A YEAR IN REVIEW

TARIFF RATES

( effective from May 14, 1996)

CATEGORY A : DOMESTIC CONSUMERS

A.1 Minimum Monthly Charges: Minimum Charge Exempt
METER CAPACITY (NRs) (KWh)
Upto 5 ampere 60.00 20
6-30 ampere 160.00 40
31-60 ampere 360.00 80
Three phase supply 960.00 200

Energy charge:

Upto 20 units Rs. 3.00 per unit
21-250 units Rs.5.00 per unit
Over 251 units Rs. 7.75per unit

CATEGORY B : TEMPLES
Energy charge Rs. 3.60 per unit

CATEGORY C: INDUSTRIAL

Sub-category Demand fee Energy charge
(Rs/kVA) (Rs./unit)

C.1 Low voltage (400/230 volt)

Rural and cottage 20.00 4.00

Small industry 40.00 4.90
C.2 Medium voltage (11 & 33kV) 84.00 4.40
C.3 High voltage (66 kV and above) 76.00 3.50
CATEGORY D : COMMERCIAL
D.1 Low voltage (400/230 volt) 100.00 5.80
D.2 Medium voltage (11 & 33 kV) 96.00 5.70
CATEGORY ६: NON-COMMERCIAL
E.1 Low voltage (400/230 volt) 68.00 5.80
E.2 Medium voltage (11 & 33 kV) 76.00 5.70
CATEGORY F : IRRIGATION

F.1 Low voltage (400/230 volt)
Upto 10 KVA
Above 10 KVA

7.2 Medium voltage (11 & 33 kV)

CATEGORY G : WATER SUPPLY

G.1 Low voltage (400/230 volv)
G.2 Medium voltage (11 & 33 kV)

CATEGORY H : TRANSPORTATION
H.1 Medium voltage (11 & 33 kV)

CATEGORY I: STREET LIGHTS

11 Street lights with meter -
1.2 Without meter 1300.00

CATEGORY J : TEMPORARY SUPPLY
][.] With meter

Note: If demand meter reads kilowatts (kW): kVA =kW/ 0.8

34

FY 95/96: A YEAR IN REVIEW

AVAILABILITY FY1996 § B UTILIZATION FY1996 हि

6.34%

5 pS 62%

ns शर

2475 2

2.9%

> M6 Z

85.14%

८7:74 रर। Hydro। Thermal।_। Purchase India।_। oe BPC।। internal a Export a Losses। Self,

_ L a,

Cd FY1996

5.98% 4.44%

3.30%
36.79%

9.64%, 6.57% bes 12%

9.06% 8.25%।. Domestic a Non-Commercial। Commercial

a Industrial [] Export a Others

a Domestic।] Non-Commercial।। Commercial

a Industrial Export।। Others

- EXPENDITURE =

20.5% 12.84%

5.0%

34.95%

a Staff Cost [_] Operation & Adm. a Fuel। Interest।। Depreciation [_] Power Purchase a Royalty

35

4
4

[

FY 95/96: A YEAR IN REVIEW

a eananermetetetenieemennm तका ही emia cmeiemielll a AO 4 RE ता बन का Ae कानमकाबतनमालाला
७ ०० हा, a ee। गा २ a Sa अननल ला? रन का गरा AMS CRON 4,777 1
नपा ae काका तका cd

TOTAL AVAILABLE ENERGY
AND PEAK DEMAND

300 1400
250 1 200
{ 1000
200 .
800
- 150 . wad
ङ्
डट 600 G
100 4
{ 400
50। 200
0.,।। 0
88 89 90 91 92 93 94 95 96
FISCAL YEAR

Ml Peak Demand (MW)
—@e— Available Energy (0५४0)

—— पााााडाडाडाडाडाााडदपाबा
Particulars 1988 1989 1990 1991 1992 1993 1994 1995** 1996***
SS EEE IO

Peak Demand (४४) ५४ 141.000 150.000 176.000 204.000 216.000 214.04 231.0 eee 128.000 204.000 216.000 214.04 2310 244.0 275.0 275.0
Available Energy (GWh) 628.500 672.300 773.842 906.283 981.105 963.314 1030.89 1 EIN 273-842 906.283 981.105 963.314 1030.89 1,117.46 1261.76 117.46 1261.76
1. Hydro 560.200 558.300 712.312 870.203 869.980 804.050 I PB LES 870.203 869.980 804.050 835.48 848.74 1074.25. 848.74 1074.25

2. Diesel - - 0.858 0.800 31.540 47.290 62.20 80.92 BG 0800 34-540 47.290 62:20 8092 364.56
3. Purchase from 68.300 114.00 60.672 35.280 79.585 111.974 133.21 187.80 150:95
(a) India 68.300 114.00 60.672 33.700 54.938 82.223 102.77 113.84 70.94

(b) Butwal Power Co. - - - 1.580 24.647 29.7511 30.44 73.96 80.01

Note :- ४ Peak demand is for all areas covered by integrated system including supply to India.
** Subject to final audit ॥
*** Provisional figures

eee
36

FY 95/96: A YEAR IN REVIEW

ee ee eed नाल A Nw OL. HG eine SEER UNINC» Roe 4 १९ CORSET

GROWTH OF CONSUMERS

(NO OF CONSUMERS)

FISCAL YEAR

Particulars 1988 1989 1990 1991 1992 1993 1994 1995 1996"
Domestic 2,30,178 2,51,758 2,74,921 3,04,480 3,37,715 3,71,975 4,04,452 4,36,631 Momestic 30,178 2,531,758 2,74,921 3,04,480 3,37,715  3,71,975 4,04,452 4,36,631 4,69,684
Non-Commercial 2,403 3,477 4,506 5,633 6,065 6,340 6,321 6,365 7,893
Commercial 641 1,678 1,758 1,827 1,378 1,536 Commercial AT 1678 1798 1827 1378 1,536 1,848 2,008 २2,385
Industrial 6,181 6,769 7,482 8,382 9,113 9,595 10,737 11,480 12,402

Water Supply गह 105 112 119 124 131] 155 166203 Suppl 77 105 112 119 124 131 155 166 203
गहभीला उ] 343 382 420 512 43 590 630 677 311 343 382 420 512 463 590 630 677

Street Light 474885 SIZ 932 ०47 367 375 420 552
Temporary Supply 145 104 123 136 191 183 188 189 189

Transport 8 9 9 9 8 8 15 8 8
Temple 59 152 205 247 335 398 525 698 838
Total (Internal Sales) 2,41,477 2,64,780 2,90,015 3,21,785 3,55,988 3,90,996 4,25,206 4,58,595 4,94,831
Bulk Supply (India) 2 4 4 5 5 4 5 5 5
Grand Total 2,41,479 2,64,784 2,90,019 3,21,790 3,55,953 3,91,000 4,25,211 4,58,600 4,94,836

Note :- * Provisional figures

37

FY 95/96 : A YEAR IN REVIEW

ELECTRICITY SALES

=
५?
FISCAL YEAR। Domestic a Industrial a Others। Total
(in GWh)
का eee
Category 1988 1989 1990 1991 1992 1993 1994 1995* 1996**
$e Eee ss EEE।
Domestic, 185.746 193.308 231.396 261.399 275.248 २259.833 275.050 301.610 333.204
SSeS 1 ee ee
Non-Commercial 52.358 48.059 47.433 46.230 46.684 47.607 47.148 53.225 56.076
SN er P EPO
Commercial, 25.401. 30.778 33.712 36.640 45.200 47.607 48.988 58.574 61.609
$e in wg,e ee
Industrial. 161.577, 175.262 178.321 206.881 246.374 273.753 303.991 328.315 354.633

er

Water Supply &

Irrigation 16.374 22.970 23.893 27.682 27.705 24.113 19.401 27.636 21.348
Street Light 6.163 5.091 7.295 7.308 7.802 8.068 8.857 12.173 16.718
Temporary Supply 0.705 0.677 0.403 0.428 1.003 0.924 0.561 1.225 0.906
Transport 0.763 2.287 2.060 1.825 1.506 1.395 1.338 1.455 1.441
Temple 0.005 0.109 0.270 0.369 0.419 0.460 0.658 0.891 1.224
Total(InternalSales) 449.092 478.541 524.782 588.760 651.941 663.248 705.992 785.104 847.159
Bulk Supply 1 6.053 17.596 23.287 80.640 85.411 46.137 50.514 39.479 90.335

लाला ला न नाल लालााानिााामाानालालाललललालालालालालालाालानालााामाकाााााााााााााालालल लाला पाला पान
Grand Total 465.145 496.137 548.069 669.400 737.352 709.385 756.506 824.583 937.494
NN

Note :- * Subject to final audit ** Provisional figures
meee

38

FY 95/96: A YEAR IN REVIEW

SADA EEN EEE 5 Om vate 00, ee ey

पक, १००७ सम्मा ७०- चा, ese, amaaane nemo ph enema easaasinman Gano ne er]

REVENUE

2

5

त

FISCAL YEAR। Domestic।। Industrial। Others।। Total
{in million Rs)

Category 1988 1989 1990 1991 1992 1993 1994 1995* 1996**
Domestic 191.205 230.184 259.417 311.686 490.642 621.398 916.332 1,195.389 1,380.576
Non-Commercial 79.852 88.853 90.553 91.708 140.909 181.076 219.807 284.478 309.777
Commercial 41.792 59.920 67.792 75.634 136.319 186.005 235.781 310.911 339.899
Industrial 193.840 254.518 267.254 307.005 473.082 669.244 936.901 1,260.125 1,393.118
Water Supply &
Irrigation 22.437 24.284 26.433 = 27.530 31.406 36.194 39.526 70.091 56.799
Street Light 7.121 6.388 8.832 8.767 15.629 16.949 27.625 41.835 52.307
Temporary Supply 1.863 2.449 1.454 1.483 3.980 4.880 3.699 6.886 6.947
Transport 1.591 2.022 1.809 2.138 2.429 2.118 2.985 3.993 3.741
Temple 0.007 0.113 0.381 0.182 0.441 0.693 1.480 3.320 3.954

Total (Internal Sales) 539.708 668.731 723.925 826.135 1,294.837 1,718.557 2,384.136 3,177.028  3547.118
Bulk Supply (India) 12.009 23.076 36.738 135.064 145.783 75.462 91.364 97.566 205.529

Gross Revenue 551.717 691.807 760.663 961.199 1,440.620 1,794.019 2,475.500 3,274.594 3,752.647

Note :- * Subject to final audit
** Provisional figures

FY 95/96 : A YEAR IN REVIEW

LOAD FORECAST
for Integrated Nepal Power System (INPS)

Year Energy (GWH) Growth (%) Peak (MW) Growth (%)
1996 1272 9.3 281 8.9
1997 1392 9.4 303 7.8
1998 1530 9.9 328 8.3
1999 1688 10.3 354 7.9
2000 1860 10.2 383 8.2
2001 2047 10.1 413 7.8
2002 2261 10.5 452 9.4
2003 2500 10.6 498 10.2
2004 2767 10.7 549 10.2
2005 3065 10.8 610 11.1
2006 3392 10.7 676 10.8
2007 3757 10.8 748 10.7
2008 4153 10.5 824 10.2
2009 4593 10.6 909 10.3
2010 5081 10.6 1002 10.2
2011 5617 10.5 1104 10.2
2012 6216 10.7 1215 10.1
2013 6879 10.7 1340 10.3
2014 7641 11.0 1483 10.7
2015 8487 11.1 1642 10.7
2016 ७427 SBS
2017 10471 11.1 2009 10.7
2018 11632 11.1 2232 11.1
2019 12921 11.1 2479 11.1
2020 14353 11.1 2749 10.9
Average Growth 10.6 9.9

* Supply Constrained Load Forecast

ee

40

FY 95/96: A YEAR IN REVIEW

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