१ 7, EV ft
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Bhadra 2056 (August 1999)।
Durbar Marg, Kathmandu

NEPAL ELECTRICITY AUTHORITY
Head Office: Durbar Marg, Kathmandu, Nepal
Phone: +977-1-227725

Fax: +977-1-227035

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CONTENTS

The Chairperson's Message
Photographs : Board of Directors
Organizational Chart
Photographs : Chief Executives
Photographs : Directors

8 Managing Director's Report

14 = Introduction

15 = Sectoral Review

23  =Project Highlights
30 §=Project Studies

34 Balance Sheet

36 "रा & Loss Statement
37 = Highlights : FY 1995/96
38 Tariff

39 = Statistics, Schematics, Maps
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Cover Photo : Construction of dam at Kaligandaki 'A' HEP

M3IAIY NI

COMPLIMENTARY 'COPY

IN REVIEW

ee YEAR

MESSAGE

From The Chairman

It gives me great pleasure to address this
message through this year's issue of NEA: A
Year in Review.। am happy to deliver this
message in the capacity of the Chairman of the
Government's largest undertaking and the
country's largest corporate body.। am equally
proud to be at the helm of this organisation in a
period of history when the ruling party has won
back the trust of the people with a sweeping
mandate.। am also aware that। need to steer।
Nepal Electricity Authority (NEA) through
contemporary times when the people are
increasingly critical of what is delivered to them
and assure that they receive what is rightfully
entitled to them .। believe that the power sector holds the
key for balanced development of our
economy. Electricity.is power in a form that is
now required in all avenues of modern life and
indispensable to industries and services which
form the backbone of our economy. The
Government has maintained a pol icy that
hydropower should form the resource from
which we must generate our electricity. This
follows from the simple reason that
hydropower apart from being an economical
form of power, is also environmental friendly
and plentiful in our country. In fact, it is
available immense quantities that far exceed
our domestic consumption and we must seek
buyers in neighbouring countries so we may
benefit from a resource which nature has
endowed us with.

The challenge ahead lies in dealing with
prospects that involve not only with our nation
but with the demands of the most populated
regions of the world. It is evident that NEA, with
its vast multi-disciplinary staff numbers, can
play a major part here.। believe their
participation in nation-building extends, not
only in the daily operations of NEA, but also in
applying their expertise to bring about the
breakthrough in electricity production that is
attractive and saleable in the regional

marketplace.। am tossing these thoughts into
NEA's court because। fully realise that this is
where the meaningfu expertise exists but is
sometimes shadowed by indifference.

My appeal transcends the narrow barriers
of rigid bureaucracy. My appeal transcends
political boundaries and extends to the needs
of the human race and the aspirations of the
generations to come. These are not far-fetched
dreams that। refer to. We can achieve these
dreams with a little effort, a little innovation and
perhaps a little sacrifice.

In the domestic scene we must have
dreams for NEA which are spontaneous to the
needs of the nation and transparent in
transaction. From these, we must form attitudes
that guide us in undertaking projects and plans
which aid the modest consumer in the hills and
plains to undertake his simple chores for
livelihood. It is only when this simple Nepali
consumer signals his appreciation of NEA's
services that we can breathe in satisfaction that
services rendered are responsive to the nation.। wish that this simple thinking composes
the mindset of all at NEA. There is little more
that। need to inculcate. We are continually
faced with arguments centred on enormous
figures of project cost and the machinations
afoot to steer these to the benefit of those that
hold the investment strings. Although, we
cannot evade such debates, what। wish is that
in the clamor, none in NEA lose his sense of
fundamentals that underlie the essential scope
of his profession.। wish to thank all in NEA for their co-
operation during the year that has past and
anticipate to obtain continued co-operation in
the years that lie ahead of us.

Teaduda Kay Josh
rained Kat Jost

(Govinda Raj Joshi)

Minister for Water Resources and
Chairman, Nepal Electricity Authority

BOARD OF DIRECTORS

Chairman
Mr. Govinda R. Joshi
Minister for Water Resources

Mr. R.B. Bhattarai Mr. 8. N. Sapkota
Secretary Secretary
Ministry of Finance Ministry of Water Resources

Mr. B.K. Sharma Mr. P. P. Dahal
Deputy Governor
Nepal Rastra Bank

Member Secretary
Dr. Bholanath Chalise
Managing Director, NEA

Dr. B. G. Vaidya

Mr.

P. K. Shrestha
President
FNCCI

IN. REVIEW

qu iE TA V

A YEAR

MIA' NI

NEPAL ELECT.
[ BoarD BOARD

eS
Dr. Bholai

DIC 12
Internal Audit Dirctorate
Director 11
Finance Audit

DMD 12 DMD 12
Distribution and Consumer Services Generation & Transmission

Director 11
Technical &
Commercial Services

Manager-10
Leased Plants &
Private Generation

DIC-12 DIC-12 DIC-12 Actg. DIC-12
DCS Central Rural Electrification DCS East & West Transmission & Sub-
Directorate Directorate Directorate Station Directorate

DIC-12
Generation Directorate

Director-11 Director-11 Director-11

Bagmati East Small Hydro & Rural।।।Eastem Regional Office Director-11 5 Director-11 Manager-10 Director-11
Regional Office Electrification Th Design & rid Operation Hydro Hydro
Construction Generation II Generation।

Director-11
Bagmati West
Regional Office

Director-11
Western

Manager-10
Regional Office

Thermal

Generation

Manager -10 Manager-10
Far Western System Control
Regional Office

Director-11
Central Regional Office

DISTRIBUTION & CONSUMER SERVICE GENERATION & TRANSMISSION

Responsible for design and construction of distribution system,

म for design and construction of transmission line and sub-
distribution of electricity and consumer services.

station, operation and maintenance of thermal plants and operation
& maintenance of power stations and transmission systems.
Implementation of power purchase and leasing activities.

. Note :
Projects : Depending upon the nature and magnitude, projects will be

implemented by the Project Managers reporting to appropriate levels as MD, DMD
DMD, DIC, Director, etc. DIC

DIR

Deputy Managing Director
Director-in-Chief
Director

(CITY AUTHORITY

ree।।
thalise

DIC 12
Information Technology Dirctorate
Director 11
Management Information System

DMD 12
Planning & General Management

DMD 12
Development

DIC-12 DIC 12 DIC-12 DIC-12
Project Preparation & Project implementation Planning छ Human
Studies Directorate Directorate Directorate Management Resources &
Directorate Administration
Directorate
Manager-10 Manager 10 Director-11 Director-11

Projects Studies Evaluation

Manager 10
Assets
Management

Director
Corporate
Planning

Director-11

Director-11 Training Centre

Design/Civil

Director-11
Project
Preparation

Director-11
Construction

Director-11
Investigation &
Studies

Manager -10
Norms and
Specification

Director Manager -10

Director-11

System Inventrory General Servi
Manager 10 al 96,068
Design/Electromechanical Planning Management
POWER DEVELOPMENT PLANNING & GENERAL MANAGEMENT

of Power Projects and environmental impact assessment of different

projects. Management.

The Praject Implementation Directorate will be responsible for design
and construction of all projects funded through NEA or foreign
financiers.

Project Preparation and Studies Directorate will be responsible for
appraving design, cost estimate and construction schedule of Non
Utility projects as well as assisting in PPAs with private investors.

Responsible for Planning, Assets & Material Management, Human
Resources & Adminstration, Finance & Accounts and General

A YEAR

IN REVIEW

M3IAIa NI

२०३: ५

DIC-12
Finance &
Accounts
Directorate

Director-11
Financial
Management

Director-11
Accounts

REVIEW

IN

Development Generation and Transmission Planning & General

Management

Mr. K.B. Chand Mr. 8.8. Malla Mr. N.T. Bhutia
Project Manager Director-in-Chief Director-in-Chief
Kaligandaki 'A' HEP Information Technology Generation Directorate
Directorate

Mr. D. B. Thapa
Director-in-chief
Project Preparation & Studies
Directorate

Mr. G.M. Kadariya Mr.
Director-in-Chief

Distribution & Consumer
Services Central Directorate

Govinda K.C.
Director-in-Chief
Project Implementation

Directorate

Mr. M. रि. Upadhyay
Director-in-Chief

Human Resources &
Administration Directorate

Mr. B. C. Thakuri

Director-in-Chief

Rural Electrification
Directorate

Mr. M. P. Pyakurel
Director-in-Chief

Assets& Material Management
Directorate

AYEAR
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UVIAY
Mr. R.S. Pandey Mr. टि. 8. Shrestha Dr. J. L. Karmacharya Mr. B.B. Dhungana
Deputy Managing Director Deputy Managing Director Deputy Managing Director Deputy Managing Director

Distribution & Consumer

Services

Dr. M. R. Tuladhar
Director-in-Chief

Transmission & Substation

Directorate

Mr. P.M.S. Pradhan
Director-in-Chief

Planning Directorate

Mr. D. R. Bhattarai

Director-in-Chief
Middle Marsyangdi
HEP

DIRECTORS & DEPARTMENT CHIEFS

Dr. N. Kapali Mr G. B. Shrestha Mr O. M. S. Swar

Mr B. R. Shrestha
Mr J. दि. Pradhan Mr A. P. Rijal Mr S. P. Upadhyay Mr टि. P. Shah

Mr S. छै, Shrestha Mr रि. K. Bajracharya Mr U. K. Shrestha

rn ) "

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

Mr K.P. Koirala Mr D.P. Bhattarai

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Mr D. P. Upadhyay Mr G. P. Pokharel Mr 1. R. Pandey Mr D.N. Singh

IN REVIEW

MANAGING

DIRECTOR'S REPORT। am very glad to be reporting the
progress of Nepal Electricity Authority
(NEA) over its fourteenth year of business
operations. Though not a very long period
of time for a public utility, the formative
years behind NEA's history have
culminated into an apex year for opinions
and deliberations from all learned quarters
on NEA's performance and its future.

Our efforts during the past year were
generally aimed to establish NEA on to a
firm platform capable of undertaking the
challenges of development, and to
provide to our customers electrical supply
of adequate quality affordable to the
average consumer. Though an immense
amount of research and analysis has been
devoted to predict what is best,। believe
the best way for us to predict the future is
to create it. It will take vision,
commitment and performance to achieve
NEA's mission for the future. Identifying
and leveraging sustainable competitive
advantage. Delivering results. Staying
ahead of competition. Keeping focused.
Being proactive. Anticipating, meeting
and exceeding the expectations of our
customers. These could aptly be our
resolutions for the new millennium.

The Power Scenario

In the global scenario, we are told
that concepts of competition and choice in
the electricity business has evolved and
consolidated in many industrialised
nations. Entry of the generation
technology affordable to the private sector
seems to have been the key issue that has

made this transition possible and it is
assuring to hear that tariff levels in some
countries are, in effect, showing a down-
ward trend. Concepts built on the recogni-
tion of the electrical system as the carrier,
and electricity as the commodity to be
traded, have revolutionised the electricity
business and has made it possible for the
consumer to choose between retailers and
generators of electricity.

However, circumstances are not the
same for least developed countries like
ours where mobilisation of resources to
undertake even the most modest
development poses a formidable
challenge. Here, in the face of predicted
dwindling public finances, the private
sector participation is more a means to
bring in scarce resource to meet demand.

As a national utility with strong social
obligations, NEA is dedicated to making
electricity available to all at a price
affordable to the average consumer in
Nepal. In fact, faced with the challenges
of managing a burgeoning organisation,
NEA is introducing management
techniques to streamline itself. Ideas such
as internal privatisation and the profit
centre could offer answers to NEA's pursuit
towards accountability and self-sustenance.
However, the long-term external viston for
the power sector still continues in the
shape of an unbundled hybrid institution
with the incorporation of Independent
Power Producers (IPP) to be sustainable in
a situation of resource limitation and
introduction of leasing to get things done
by others what is best done by them.

To meet the demand that has been
projected for the future, one major
exercise a commercial organisation ought
to undertake is to formulate the
investment pattern in its development.

Over the year, we spent considerable
time and effort identifying the appropriate
areas of investment that would provide
financial returns for our own sustenance
and to contribute to the national
exchequer. In accordance to such plans,
we then decided on a number of projects
to add generation and transmission
capacity, improve and extend distribution
and consumer services and enhance
management processes — projects that we
must complete within stipulated time
periods to recover optimum returns.

The Year's Major Events

Recapitulating the major events of the
past year, of foremost importance to the
nation was the overwhelming mandate
given to the ruling Nepali Congress party
by the country's third general elections.
The political change in leadership in the
country followed with the assumption of
the position of Chairman, Nepal Electricity
Authority, by the Minister of Water
Resources, Mr. Govinda Raj Joshi.
Subsequently, there were four new
Members inducted into the eight-member
NEA Board, namely, the new appointed
Secretary of the Ministry of Water
Resources, Mr. B.N. Sapkota, Chairman of
the Federation of the Nepal Chamber of
Commerce and Industry (FNCCI), Mr.
Pradeep Kumar Shrestha, Dr. B. G. Vaidya,
and Mr. P.P. Dahal.

One of the first activities conducted
by the new management was the
organisation of a public interaction
program to discuss NEA : Its Activities and
Present Situation on June 25, 1999.
Chaired by the Minister for Water
Resources, Mr. Govind Raj Joshi, the
interaction program was attended by a
large section of the power sector
intelligentsia, including a number of
Members of Parliament. The intentions of
the interaction program were well taken
by the media and the participants.

Opinions and viewpoints expressed by the
participants were candid and transparent
and provided valuable information for
formulation of future strategic planning in
NEA.

Meanwhile, NEA fared well
financially despite the fact that it had not
been allocated a tariff increase for the past
three years. As the picture of NEA's
investment in the total power sector
development gained clarity, it became
clear that corrective measures were
inevitable for NEA to be capable to
undertake the massive scale of
investment. Even after diverting the
development of several hydropower
projects to the private sector, predicted
financial indicators such as the rates of
return and the capability to self-finance
some portion of its investment indicated
that NEA would be required to explore the
possibilities of joint venture undertakings
with private sector Promoters. NEA will
also need to be more judicious in the
choosing the source of loans and seriously
consider the option of maximising loans
from the domestic capital market.

Another important event that
continued over the year was the formation
of a high level Electricity Master Plan
Review Committee co-ordinated by Dr.
Rameshananda Vaidya, Member, National
Planning Commission, and representatives
from the Ministry of Water Resources
(MOWR), Water and Energy Commission
Secretariat (WECS), Electricity
Development Centre (EDC) and NEA. The
aim of the committee was to review, at
the highest governmental level, the
studies made by NEA on the subjects of
load forecast, least cost generation
planning, transmission line planning and
long range marginal costs. The
recommendations of the Committee were
intended to provide a blend of national
and utility level approaches to the
important aspects of the nation's power
system and introduce desirable flexibility
in such inter-sectoral planning.

We made every effort to bring about
improvement in NEA consumer services

A YEAR

by minimising load shedding as the last
contingent measure. But faced with
generation shortages, we were obliged to
continue the unpopular step for another
year. Apart from shortage of energy in the
system during the severe dry season, we
also faced capacity shortages necessitating
short periods of load shedding during the
evening peak hours even during the
monsoon season when the reservoir level
in Kulekhani indicated that energy in store
was not the point of contention. With the
anticipated coming on-line of some
hydropower projects such as the Puwa,
Modi and Khimti। and completion of the
Lalpur-Gaddachowki connection to the
Tanakpur power house in India, we hope to
eliminate the recourse to load shedding
from June 2000.

An important event to strengthen the
aims of the India-Nepal Power Exchange
Committee was the June 1998 meeting in
Kathmandu of the sub-committee formed to
study the prospects of power exchange
enhancement to 150MW and the
possibility of purchase of surplus power by
India. Considerable seasonal generation
surplus has been predicted in the NEA
system once significant run-of-river (ROR)
plants are added to the system in the near
future. Contribution from the sale of such
surplus to NEA's financial stability could be
considerable. Such prospects make the up-
coming talks with the Indian counterparts
in the India-Nepal Power Exchange
Committee important indeed.

On the subject of ROR deficiencies,
we stressed the fact that introduction of
private investment in hydro-generation
inevitably lead to such plant design
without any form of daily storage. This was
a natural choice for low-cost design for a
commercially motivated Promoter and will
aggravate the skewed nature of energy
availability in the system - energy spilled
during the wet summer months when the
demand is minimal and energy shortage
during dry winter months when the
demand is at the peak. The anomaly that
such plants could bring to the NEA system
reinforced the need to study storage plants

for incorporation in the NEA system. The
divergent state of affairs will also demand
that we adopt a tariff structure to account
for the seasonal variation in energy
demand and availability.

The principles of commercialisation
state that we must build on our strengths.
In application, we must nurture the
engineering talent that lies latent in our
human resources — the strength of NEA.
However, the concentration of a large
percent of this talent is skewed to areas
requiring relatively low engineering
capability. This seems paradoxical and
distressing because। believe the
appropriation of such expertise needs to be
diverted to more challenging areas so that
the expertise may be readily identified
from outside and utilised to generate
innovations in NEA's system and improve
its overall performance. The unbundling of
NEA's Distribution and Consumer Service
functions could be viewed along this
perspective.

In order to expose our senior staff to
world trends and innovations, we arranged
for the participation of our staff in events
of international significance including the
World Energy Conference, in Houston,
Texas, and the World Power Conference in
New York City. Our staff members also
participated in a number of acclaimed
training courses on environment and
hydropower management in the
International Centre for Hydropower in
Trondheim, Norway.

Operational Performance

There were no new generation
additions last year and we operated with
a total installed capacity 301.074 MW of
which approximately 81 percent was
hydro-based and essentially of the run-of-
river configuration. In terms of energy,
hydropower projects within Nepal
provided 70.95 percent, thermal projects,
8.05 percent, purchase from domestic
private power companies, 5.24 percent,
and imports from India, 15.76 percent of
the total availability.

Over the financial year, the system
peak of the interconnected system was
recorded on January 12, 1999 at the level
of 326.40 MW indicating a 3 percent
increase over the last winter's figure.

During the past financial year, the
electrical energy available for use within
the NEA system totalled 1,475.00 GWh
which was an increase of 101.83 GWh
(7.42 percent) over the previous year's
figure of 1,373.17 GWh.. This comprised
of 1,046.51 GWh obtained from NEA's
hydro generation and 118.82 GWh from
NEA's thermal generation. A total of
309.67 GWh was purchased from other
utilities; comprising of 232.39 GWh
imported from India through Power
Exchange agreements and 77.28 GWh
purchased from Butwal Power Co., the
Nepalese private generator. This year
again the energy availability was marginal
and required careful planning in our Load
Despatch Centre (LDC). In a period of
generation deficiency, our generation
plants performed well, and aided by efforts
from grid maintenance, we managed to
pull off with a fair degree of availability.

Electricity sales totalled 1112.886
GWh - an increase of about 61.457 GWh
(5.80 percent) over last year's sales figure.
Internal sales within Nepal increased to
1052.886 GWh and accounted for 94.61
percent of the total sales and registered an
increase of 68.867 GWh ( 7.0 percent)
over the last year's figures. Exports to India
decreased slightly to 60 GWh largely
because of energy constrained conditions
in Nepal.

Over the past financial year, the
number of consumers grew by an
estimated 45, 151 (or 7.85 percent) over
the previous year's figure to reach a total
of 620,000. The domestic category
accounted for 95.31 percent of the total
consumer numbers, 37.31 percent of the
sales and contributed to 37.71 percent of
the revenue. The industrial category
formed only 2.45 percent of the total
consumers, but accounted for 39.28
percent of sales and contributed to 37.80
percent of the revenue. Non-commercial

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category constituted 1.24 percent of the
consumers, accounted for 5.80 percent of
the sales and 7.87 percent of the revenue.
Likewise, the commercial category
constituted 0.48 percent of the total
consumers, accounted for 6.99 percent of
the sales and provided 9.41 percent of the
revenue.

Almost 85 percent of the country's
populace still remains without an electrical
supply essentially in the rural areas. The
difficult terrain, inaccessibility and the
scattered nature of settlements makes
distribution expansion in rural areas a
difficult and expensive proposition. The
task of providing electricity to those still
without electricity is thus an immense task
ahead of NEA and calls for massive
investment in terms of distribution
extensions as well as generation and
transmission additions. This, in turn,
accounts for the tariff increases which NEA
must apply for to make it possible for NEA
to make such investments.

The financial picture remained
encouraging for another year. NEA's total
revenue net totalled NRs. 5,770.00
million, an increase of 6.21 percent over
the figure for the previous year. NEA's net
fixed assets increased to reach an
estimated NRs. 30.988 Billion. With tariff
increases deferred for the past three years,
financial performance indicators were
somewhat bleak. To improve our financial
position, we made concerted efforts to
improve receivables and even resorted to
the unpopular extreme of terminating
supply connections to government and
semi-government consumers and taking
stern action against those charged on cases
of theft and misuse of our supplies. To
keep expenditures down, we limited our
costs in salaries and operation and
maintenance. Such efforts on financial
control will continue into the coming year.

Development Efforts

In a period when generation capacity
has been our major system constraint, the
144 MW Kali Gandaki-A hydropower
project remained the development venture

much~awaited to come on-line. But
unpredictable geology, leading to
tunnelling problems, has shifted the
project delivery date to mid-2001. The
progress of other hydropower projects
which NEA steered along fast-track lines
was encouraging. Puwa Khola (6.2MW)
and Modi Khola (14 MW) are both in the
final stages of construction and should
commence generation within 1999. These
projects, and a chain of projects undertaken
by NEA and the private sector coming on
subsequently, will virtually double 1८05
generation capacity and eliminate the
necessity for load shedding in the NEA
system, which। had earlier alluded to.

An event of commercial calamity in
NEA's own subsidiary, the Chilime
Hydropower Co., was the consequential
delay in Chilime hydropower project
completion following from the termination
of contract for civil works. The concept of
undertaking the very attractive Chilime
project entirely with indigenous resources
(loans from the Sanchaya Kosh and even
shares allocated to NEA staff) had set a
very optimistic tone. Besides the
contractual complexities,। believe a
rational management of conflicting
interests in the project could prevent such
defaults in the future. We hope to remedy
the damages and bring the project on-line
in the year 2001.

A more optimistic note that for our
generation planning was heading on
schedule came with the signing of the
grant assistance for the Middle Marsyangdi
(61MW) hydropower project. Identified as
the major medium hydropower project
after Kali Gandaki A, the target for the
project completion is the year, 2003/4.
Earlier in the year, after a very keen
process of selection, Consultants were
selected for the detailed design of the
Project.

In addition to these medium
hydropower projects, which will integrate
into the national grid, we have kept in
mind our social obligations to provide
relief to the hardship of life in the
difficult, remote mountains of Nepal by

constructing small hydropower projects at
Dolpa, Kalikot, Humla and Mugu. The first
two of the projects ought to commence
generation next year.

In the area of private generation, we
signed the fifth Power Purchase Agreement
(PPA) with the Chinese promoter
registered in Nepal as GITEC (Nepal) Pvt.
Ltd., for the development of the 14 MW
Upper Modi Project. Other private sector
projects now in the phase of
implementation, but faltering in their
completion dates, include the 60 MW
Khimti। promoted by Himal Power Ltd.
and the 36 MW Upper Bhote Koshi
promoted by Bhote Koshi Power Co. Such
delays in receiving the relatively
expensive IPP power will greatly detract
from their value to the NEA system.

To deliver and effectively use the
additional generation from the projects
now approaching completion, we
continued to strengthen our transmission
network by enhancing the capacity of
existing circuits and sub-stations and
planning higher voltages to meet future
integrated demands. The hot stringing of
the second circuit of the Kusaha-Dhalkebar
132 kV transmission line was a project
which we completed. We also
commenced discussion with authorities in
India to construct three more exchange
links so that the quantum of exchange
could be enhanced to 150 MW. The
Lalpur-Gaddachowki transmission line
showed good progress and, by the end of
1999, should be ready to take in the free
power of 70 M units per annum from the
Tanakpur powerhouse in India as provided
by the Tanakpur Treaty . We also
undertook the construction of transmission
lines to receive power expected from a
number of IPP generation projects. The
Khimti-Bhaktapur-Balaju transmission line
project needs to be credited for duly
adhering to its construction schedule in
contrast to the IPP generation projects
which remained stalled and unable to
deliver as committed in the power
purchase agreements (PPA). A project to
provide state-of-art facilities to the Load
Despatch Centre (LDC) to better manage

and control components in the NEA power
systems was also on the anvil.

In the areas of distribution and rural
electrification, the Seventh Power Project
won a letter of Appreciation from the
Asian Development Bank and is now set to
complete the remaining portion of its
works in 25 districts. Several sub-
transmission line projects were continued
to extend 33 kV lines from the 132 kV
backbone to important economic centres in
the mountain areas to the north such as
Dhading, Khandbari, Ramechhap and
Diktel and adjoining VDCs. The need for
rapid extension of distribution schemes is
essential to consume the energy that will
be available after the coming on-line of
approximately 300 MW of new generation
within two years.

To enhance in-house management and
control, we continued to push on with loss
reduction activities. We also commenced
work on application of GIS in consumer
services and we hope to improvise on the
adaptation of this methodology for loss
reduction applications. Realising the
gravity of the matter, the Y2K alarm was
also researched by our IT Directorate.

Acknowledgements

In conclusion, although my affiliation
with NEA is of a short duration,। cannot
restrain from expressing my gratitude for
the continued support। have received from
all levels of staff here.। know of staff

members in NEA staff who have responded
to the call of duty even in challenging
times. My deep sense of respect for such

sincere souls.। believe NEA has the latent
talent, the energy and the devotion to
move on but it is only the motivation and
identification that may be lacking.। also wish to thank His Majesty's
Government for their co-operation in our
activities and for their continued interest
and investment in our enterprise.। also
wish to express my sincerest thanks to the
Chairman and Members of the NEA Board
of Directors for steering NEA towards
accountability and self-sustenance. To
achieve such targets,। must thank the
Donors and Lenders who have provided us
the finances, assistance and advice in our
development works and _ institutional
strengthening.

Most importantly,। wish to thank our
Customers for their proactive interest in
NEA's activities and also for bearing with
us during periods of difficulty. Their
restraint will inspire us to work towards the
day when we will be able to bring to all
our customers an electrical supply that is
reliable and adequate for their needs.

tr
(Dr. Bholanath Chalise)

Managing Director
Nepal Electricity Authority

INTRODUCTION

This August (Bhadra 1, 2056) Nepal
Electricity Authority (NEA) completes its 14"
year as an utility responsible for Planning,
Construction, Operation & Maintenance of
Generation, Transmission and Distribution
facilities throughout the Kingdom of Nepal.

Over these years, the objectives of NEA
have remained consistent as an institution
striving to be efficient, autonomous,
accountable and capable of delivering its
services to its customers at reasonable cost,
while trying to satisfy the stringent conditions of
donors and financing agencies. NEA maintains
its status as the largest government undertaking
in terms of human resources, capital
investment and assets.

NEA has also seen substantial
transformation from the time of its inception.
Starting off as an oversized conglomeration of
loosely tied entities, the initial years were spent
in search of an unified identity. Then followed
years dedicated to clinical analysis of its aims
and strategy to improve its efficiency and
productivity required to attain the capability of
undertaking its investment that the growing
demand for electricity calls for. Corporate
strategy, manpower rationalization, human
resource development, financial efficiency
became pillars of policies and guide words for
intense soul-searching, deliberations and
assessments. Steadily from years in the red,
NEA emerged as a consolidated, profit making
institution with aims to diversify into a more
extensive commercialized mode of operation
in the future. Towards this goal NEA has
recently set up fifteen of its consumer service
divisions as "Profit Centers" with a view for
improving its efficiency.

Due to global economic liberalization
policy, competitive pressure from private sector
and pressure from ever increasing domestic
demand for electricity, NEA is looking ahead to
meet the challenges by carefully planning its
future activities in terms of commercialization,
better management, information technology,

corporate planning and Power System Master
Plan and investment planning. In this regard
The Power System Master Plan was completed
under the grant assistance from the Asian
Development Bank. This Master Plan was
under intense scrutiny from a high level
committee under the leadership of the National
Planning Commission. The committee has
submitted its findings and recommendations.
Also, with a view for disseminating information
on its activities, NEA held a public interaction
program which was well attended by
distinguished people from all walks of life. The
interaction program highlighted NEA's present
situation and the challenges that it faces, useful
suggestions were received from the guests.

The unprecedented long spell of seven
months of no rainfall resulted in low generation
capacities in hydropower plants and despite
NEA's efforts to meet the demand by resorting
to lots of import from India and pressing all its
thermal plants into service as much as possible,
it had to reluctantly carry out load shedding as
the system capacity and energy were not
sufficient. Strict measures are being adopted to
keep the load shedding to a minimum, this
situation is expected to improve with the
commissioning of the under construction
projects within an year.

In the following pages of this Annual
Review, an attempt has been made to prepare
an easily comprehensible overview of
significant events and developments that have
patterned the past fiscal year and how these
events fit into NEA's overall strategy. It brings
forth a birds eye view of major activities carried
out by NEA and various operational data
related to demand growth, generation, sales of
electrical energy and financial performance.
Also included are brief descriptions of projects
and studies NEA has taken on and the outputs
that they will have in NEA's operations.
Schematics and graphical presentations have
been included to give visual display of the
year's achievements.

SECTORAL REVIEW

NEA BOARD AND MANAGEMENT MATTERS

After the general elections, following the
formation of a majority government by the
Nepali Congress, Minister of Water Resources
Mr. Govinda Raj Joshi assumed the position of
the Chairman of Board of Directors of Nepal
Electricity Authority. On June 16, 1999 he
presided over, for the first time, the 298th
meeting of the Board of Directors. On June 11,
1999, Dr. Bholanath Chalise was appointed as
the Managing Director of NEA for a period of
two years.

Subsequently, there was a change in the
members of the Board of Directors with four
members, namely, B.R. Regmi, Mr. Himalaya
S.J.B. Rana, Mr. Gauri N. Sharma, and Mr.
Ananda रि, Mulmi being replaced by Mr. B.N.
Sapkota, Dr. B.G. Vaidya, Mr. P.P. Dahal and
Mr. P.K. Shrestha.

In the fiscal year under review the
organizational structure was modified with the
addition of a new position of another Deputy
Managing Director to look after the affairs of
Planning and General Management. Dr. Janak
Lal Karmacharrya was appointed to this post.

INFORMATION TECHNOLOGY DIRECTORATE

The subcommittee for the establishment of
Management Information System (MIS)
constituted by the NEA board submitted a
report in May 1997 and recommended to
implement MIS in three phases. First Phase was
to work out operational level reports and define
information accessing and information flow
pattern for generation of top level MIS reports
on regular basis. The completed report was
submitted in the FY 1998 (2055 Ashadh 10).

One of the main objective of the first phase
is to establish a computerized network within
NEA headquarters and link it with some offices
of NEA outside Kathmandu Valley via
telephone networking system. The second
main objective is to develop customized
application software for producing MIS reports
for various levels. To achieve these objectives
tendering has been done for supply, delivery
and installation of computer hardware and
proposals have been received for development
of application software. The evaluation for

supply, delivery and installation of computer
hardware and evaluation of proposal for
development of application software are in the
final stage.

To improve revenue performances in some
of the branches under distribution and
consumer services directorate, IT Directorate
has undertaken to extend Computerized Billing
System to five branches (Nepalgunj,
Bhairahawa, Birgunj, Janakpur and Biratnagar).
For this purpose tendering has been done for
supply, delivery and installation of computer
hardware and standard software. The
evaluation of this tender is in the final stage.

FINANCE AND ACCOUNTS DIRECTORATE

Strengthening of NEA's financial manage-
ment and accounting systems continued to
obtain attention over the year, following this,
the Finance and Accounts Directorate has been
upgraded. Finance and accounts management
function has been divided into two
departments, the Central Accounts Department
and the Financial Management Department.

NEA's financial performance remained
encouraging for another year. NEA's total
revenue increased by NRs. 337.3 million
(6.21%) to reach a figure of NRs. 5770.0
million as compared to NRs. 5432.7 million in
the previous year. NEA's revalued assets
increased to 30,988.0 million as compared to
NRs. 30,063.6 million in the previous year.
Expenditure in operation and maintenance
have increased by only 4.99% reaching a
figure of NRs. 4,806.9 million as compared to
NRs. 4,578.5 million in FY 98. Overall, NEA
registered a net profit before tax of 550.9
million as compared to NRs. 391.7 million in
FY 98.

In FY 99, NEA has invested NRs. 7566.6
million in capital works and projects, the
funding of which comprised of NRs. 659.7 in
equity, NRs. 5133.7 from borrowing and the
rest from NEA's own resources. NEA also has
invested NRs. 90 million in the Chilime
hydroelectric project which is being developed
by a subsidiary company. By the end of FY 99,
NEA's total borrowing stood at NRs. 25,982.6
million and a total of NRs. 1595.2 million as
debt service.

The financial audit for FY 1996/97
has been completed and the audit for
FY 1997/98 has been submitted to the
Board. The audit for the year 1997/98
was undertaken by auditors M/S S.R.
Batliboi & Co., India, M.R. Sharma &
Co., and B.K. Agrawal & Co. of Nepal.
For the financial audit of FY 1998/99
auditors M/S Price Waterhouse, New
Delhi and M/K Sharma & Co, Nepal
have been appointed. Tax assessment
for the FY 1993/94 is in process and
the tax audit for FY 1994/95, 1995/96
and 1996/97 are currently being
undertaken by the tax auditor M/S.
M.K.Sharma.

INTERNAL AUDIT DIRECTORATE

In keeping with the modern
concept, the scope of internal audit
has been enhanced from traditional
financial audit function to operational
audit. Following the recent change in
the organization structure, the Internal
Audit Directorate now consist of three
divisions: Financial Audit Department,
Management Audit Division and
Technical Audit Division. These
divisions have been staffed with
necessary administrative and technical
personnel. In the FY 1998/99, 51
financial audits, 18 technical audits
and 17 management audits were
carried out.

ASSETS AND MATERIAL
MANAGEMENT DIRECTORATE

The activities of Assets and
Material Management Directorate are
focused on the following areas:

० Updating fixed assets records. The
process of collecting information
on the legal status of land being
used by various NEA offices has
been initiated. Wherever NEA does
not have ownership certificate of
the land under its use, the process
of securing the ownership
certificates has been initiated.
Already, land ownership certificate
of the lands at Trishuli Power
house, Birgunj and Hetauda offices
have been secured. A task force
has been set up to secure the land
deeds of about 6,985 ropanis of

lands located at various NEA
offices.

Making the inventory manage-
ment efficient. One of the major
thrust areas has been the efficient
management of inventory. The
inventory of goods under its
management has fallen
significantly after the formation of
this Directorate. In the FY 1997/98
the total inventory at central store
at Hetauda, was worth NRs. 115.7
million, by the end of FY 1998/99
the outstanding inventory is worth
NRs. 78.9 million, the total
decrease in inventory over the
period of one year being about
32%. In order to make this job
more efficient, a computerized
inventory management system is
being installed in the year 99/00.
Upon completion of this project, a
centralized information on the
inventory will be available, which
will help in the effective
management of inventory and in
procurement decision making.
Already, the inventory of all DCS
branches has been compiled. Task
force has been formed to carry out
physical verification of the store
inventory at all the budget centers,
and also to identify the items to be
auctioned. The task force shall
submit the report by Aug 23, 1999.
The findings of this report and the
requirements sent in by various
DCS offices shall form the basis for
establishment of the quality of
goods to be procured in this fiscal
year.

Identification of the state of
physical inventory and initiation of
the process of auctions of old
unusable assets. In the fiscal year
under review a total of 41 units of
old vehicles were auctioned, and
this will continue in the FY 99/00
year as well.

Preparation and updating of
technical specification and tender
conditions for various electrical
goods.।n order to bring about
uniformity in procurement process
and in the specifications of similar
goods procured by different DCS

offices, standard tender conditions
and the technical specifications for
the distribution line materials have
been made available for DCS
Directorates. To strengthen this
aspect of standardization of the
technical specifications,
publications of various
international standardization
organizations are being procured
in the FY 99/00.

* Procurement of various goods
from the most competitive
sources. The central procurement
of goods/equipment is done
through competitive bidding. In
respect of the local procurement,
quotations from the suppliers from
among the approved list of
suppliers are invited. The quantity
of centrally procured goods is
established after examination of the
existing inventory of goods in NEA
stores in relation to quantity
requirements sent by the DCS
offices.

७ Management of Self-insurance
Fund. The outflow of funds by way
of annual premiums paid to the
insurance companies in relations
to the claims made by NEA has
been found to be significantly high.
To address this situation, NEA has
established an insurance fund,
which will be used to pay for the
costs of damage to the NEA
properties. A manual for the
management of this fund is now
under preparation.

HUMAN RESOURCES AND
ADMINISTRATION DIRECTORATE

Personnel Administration

In the fiscal year under review,
promotion was granted to a total of
957 employees, of whom 357 were
technical staff members. A total of 133
employees were either retired,
deceased or have resigned. At present
out of the total available staff positions
of 8970, 1209 positions are vacant. To
fill up these vacant positions, written or
practical examinations have already
been conducted.

5875 4957 918

1209

8979 7770

TECH
2 ADM 1
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TECH

TOTAL 3

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46

Staff Training

With the objective of enhancing
the professional competency, 190 staff
members were provided with
training's, seminars, workshops,
inspections, conferences and
academic studies at home or abroad
as shown in table.

In-house training's were also
conducted by the NEA Training Center
which is continuing its human
resource development program to
provide the trained manpower at
various levels. In the fiscal year 97/98,
42 training programs were conducted

8
4 ADM 3
TECH 15

--

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—_ कान्छी RO कान्छी

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by it in various fields and a
total of 434 staff received
training, of whom 136 were
officer level. In addition to the
training programs, the
Training Center also
conducted a one-day regional
workshop programs on
"Safety Practices in DCS" at
Nepalgunj, Kathmandu,
Hetauda and Biratnagar to
identify the problems and
practical difficulties in
implementing the safety
practices and to find solutions
to the existing problems. NEA
is currently constructing a
modern training center at
Khairipati, Bhaktapur.

PLANNING DIRECTORATE

The Power System Master
Plan consisting of the Load
Forecast, the Generation
Expansion Plan, the
Transmission System Master
Plan and the Long Run
Marginal Cost Reports were
completed in August 1998.
These reports were prepared by
Norconsult under the Asian
Development Bank's Technical
Assistance Grant. System Planning
Department was closely involved in
the preparation of these reports. The
Master Plan identifies the projects that

Staff Training FY 1998/99

A. Abroad
1. Higher Studies 5

2. Seminars, Symposiums and
Conferences, workshops etc. 15

3. Inspection 41

4. Training
Total

. In-Country
1. Higher Studies 9

2. Seminars, Symposiums and
Conferences, workshops etc. 49

3. Inspection
4. Training

Note : The above data do not include in-house
training conducted by NEA Training Center

3134 NI

would be required to meet the
forecasted demand up to the end of FY
2016/17. The recommended plan
based on the Base Case Medium
Forecast is as follows:

Generation Expansion Plan

= Middle Marsyangdi (61 MW)
2004/05 Khimti Khola - 2 (27 MW)
2005/06 Kulekhani - 3 (14 MW)
2006/07 Likhu - 4 (44 MW)

2007/08 Upper Karnali (300 MW)
2011/12 Arun -3 (402 MW)
2016/17 Chameliya (30 MW)

The Transmission System Master
Plan has been prepared considering
the above generation plan. The Jong
run marginal costs have been
calculated based on costs at the
generation level. A very high level
committee under the chairmanship of
member of the National Planning
Commission, with members from
MOWR, WECS, EDC and NEA was
formed to review these reports and this
committee has already submitted its
findings and given their
recommendations. The generation
expansion planning is a regular feature
of System Planning Department and
the revision of generation expansion
plans are to be carried out with the
updated data on available projects.

PROJECT PREPARATION AND
STUDIES DIRECTORATE

Under its regular program, the
Investigation and Studies Department
carried out the desk studies of nine
projects, reconnaissance of four
projects and preliminary study of one
project in the different development
regions of Nepal. Out of the 9 desk
studied projects the following 4
projects were studied to the
reconnaissance level and out of the 4
projects 1 project Seti-Bajhang was
studied to the preliminary level.

Project studies of Andhi Khola
Storage Hydroelectric Project (180
MW), Tama Koshi- 3 Hydroelectric
Project (330 MW), Upper Modi 'A'

IN REVIEW

YVIAYV

Name of
the Project (MW)
1. Seti-Bajhang
2. Likhu- 5

3. Rosi- 1

4. Seti-Saraudi

Hydroelectric Project (42 MW), Dordi
Hydroelectric Project (9 MW) and
Balephi Hydroelectric Project (15 MW)
are being carried out by this
directorate, these projects are dealt in
more detail under the Project Studies
chapter.

Environment Division

With a mandate for carrying out
environmental studies and
environmental monitoring works
related to power generation,
transmission and distribution projects,
NEA - Environment Division (NEA-ED)
conducted the following works in the
Fiscal year 2055/56.

1. EIA Studies:

* Selection of Environmental
Consultant for Middle Marsyangdi
HEP. TAEC/NESS JV, the joint
venture of two local consulting
firms, was selected as the
environmental consultant for
Carrying out the Tender Design
Stage Environmental Impact
Assessment and Monitoring of
Mitigation Plan during
Construction. In this regard, an
agreement was singed with TAEC/
NESS JV on June 24, 1999 and the
work for stage ! (EIA) is expected to
be completed by July 15, 2000.

» Completed the EIA of Lalpur
Gaddachauki 132 kV
Transmission Line Project as per
the environment Protection
Regulation, 1997. The ACRP for
this project was carried out by Soil,
Rock & Concrete Laboratory, NEA.

० Coordinated and supervised the
work of METCON Consultant for
the Initial Environment
Examination (IEE) of Janakpur -
Yadukoha 33 kV sub transmission
line project.

Capacity District। २21। Bajhang। 0। Rec. and Preliminary

17 Kaski

Level of 1999. The NEA's stall was visited

Study by about 1000 people.
Sediment Monitoring of Kulekhani
Reservoir

Reconnaissance
Reconnaissance

5 Reconnaissance Since 1996, the Investigation and
Studies Department has carried out the
sediment monitoring programme of
Indra Sarowar on regular basis. The
sediment survey work of Kulekhani
Reservoir was undertaken in
November 1998 and a report has
been published in 1999. According to
the survey report, 0.56 Mm? of
sediment was deposited during the
rainy season of 1998, Out of the
original gross reservoir capacity of
85.3 Mm}, 22.67 Mm? or 26.6% has
been filled with sediment so far.

Coordinated and supervised the
work of GEOCE for carrying out the
EIA of Modi - Pokhara 132 kV
Transmission line project.

2. Mitigation Works:

Coordinated and supervised the
three-month long House Wiring
Training for 16 project affected
families from llam HEP. Cottage
Industries Development Board,
Kathmandu, provided this training.

3. Secondment:

Deputed staff to Soil, Rock and
Concrete Laboratory for carrying
out various environmental studies.

GENERATION DIRECTORATE

Thermal Generation

After the successful warranty
operation of 13 MW Multifuel Power
Plant Extension Project NEA has got
substantial energy support from
Thermal Plants during this fiscal year.

Deputed staff to Rural
Electrification Directorate to carry
out the IEE of Mujkot Small
Hydroelectric Project in Jajarkot
district.

4. Policy input:
Provided input
to the Ministry
of Population
and
Environment in
assessing the
scoping and
ToR documents
related to
various power
genera-tion and
transmission
projects.

Provided input

to Water and Energy Commission
Secretariat by participating in two
workshops for formulating Nepal
Resettlement Policy and Practice.

Out of a total INPS generation of
1475.00 GWh, contribution of
Thermal Plants is 118.82 GWh, which
is 8.06 % of the total generation.
During this fiscal year the
Environmental Package Works of 26
MW (old) Multifuel Power Plant have
been completed with the Financial
Grant Assistance of 7 Million Finnish
Marks from the Government of Finland
and local expenses of about 6 million

5. Environment Day Celebration:
NEA-ED participated in the
environmental fair organized by
Ministry of Population &
Environment (MOPE) to celebrate
the World Environment Day,

NRs. of NEA. Project works have been
completed by Wartsila NSD Finland as
contractor. The public grievances of
noise, air and sludge pollution, and
also the temperature problem inside
the power house have been solved
successfully.

At the Hetauda Diesel Power
Station, rehabilitation works of three
English Electric Engines of 1.5 MW
each have been completed with the
Financial Grant Assistance of the
British Government. UK based North-
Linc Engineering Company has
completed this job satisfactorily.

Hydro Generation

After the butterfly valve incident at
Trishuli, all the units which were
running under manual control were
repaired and made automatic with the
help of Chinese experts.

Repair and maintenance works
have also been carried out at
Devighat(Unit No.3), Sunkoshi (tailrace
of unit 3). The two units (2&3) at
Gandak which have been rehabilitated
and overhauled are operating
satisfactorily. Unit-1 is to be
rehabilitated and overhauled under
the supervision of Chinese experts in
the coming year.

The overall performance of
Kulekhani-l continued to be
satisfactory. The generation in this
fiscal year reached 195,737 MWh, the
second highest since its operations.
The notable maintenance works done
are: (a) the repair of the leakage from
the embedded jet brake pipe of unit
no.1. The repair work was done with
the installation of a new pipe system
outside the concrete structure, (b) the
cooling water pumps of unit no.1
which were on the verge of
breakdown, were repaired locally. This
year the hydrological and
meteorological condition is so far
favourable, and that the reservoir level
reached 1522.35 meter on July 16,
1999 as compared to 1505.83 meter
exactly an year ago. On April 4, 1999
a fire broke out in the near by forest
and it almost reached the switchyard
(near the control house) before it was
controlled and exiinguished with the

help of about 50 army men and one
fire fighting equipment from Hetauda.

The performance of Kulekhani-ll
also was satisfactory. The generation in
this fiscal year was 91,896 MWh,
second highest within the last 13 years
of its operation. Only normal
maintenance on shaft seal, water
supply pump, water control valve,
power unit etc. were performed, The
heavy rainfall of 119 to 212 mm on 1,
2 & 3 of July 1999 caused damages to
the compound walls of workshop, and
powerhouse tunnel and drain tunnel
areas. Similarly, intake and Gabion
protection works of drinking water
supply were also washed away.

Since its commissioning in 1989,
the Marsyangdi Hydroelectric Project
has already generated over four billion
units up to April 3, 1999. Despite the
dry spell lasting for seven months from
December 1999 to June 1999 without
any rainfall, 472 GWh of energy was
generated during the fiscal year 98/99,
which is more than its design energy
generation of 462 GWh. Unit No.1
turbine and its accessories after more
than 65000 hours or over nearly 10
years of operation, revealed serious
damages to the wearing rings caused
by cavitation, corrosion and abrasion.
Thus, for the first time since
commissioning period of unit no.1 the
bottom wearing ring was replaced by
Spare ones as were the head cover
facing plates, and turbine upper and
lower wearing rings. Vane no.13 of
unit no.1 turbine runner was also
repaired successfully. Repair works of
weir gate no.1, 3 and 4 and sluice
canal repair were also carried out.

Load Dispatch

This year was characterized by
unprecedented dry spell compounded
by the demand growing by more than
7% with no capacity additions made
load dispatching difficult. However,
prudent load management has
resulted in a completely filled
Kulekhani। reservoir. Due to the dry
spell Kulekhani was used optimally
with the result that this year the
generation from Kulekhani। P/S was
higher than what it is designed for. The

IN REVIEW

efforts in maximizing generation from
run-of-river plants also bore fruit as
Marsyangdi Power Station could be
exploited to yield 472 GWh of energy
as against its design value of 462
GWh.

TRANSMISSION AND SUBSTATION
DIRECTORATE

Transmission Lines

Construction of 132 kV lines
connecting 1) Khimti Power House
with Kathmandu Valley, 2) Kushaha
with Dhalkebar substation and 3)
Tanakpur (India) with the
Mahendranagar substation will be
completed within this year.

As recommended in the
Transmission System Master Plan
(2003-2007), NEA is determined to
construct 150 km long 220 kV line
from Bardaghat to Hetauda substation
to evacuate power from the Kali
Gandaki-A project. It is also going to
construct a 132 kV ring main around
Kathmandu valley and the Pathlaiya-
Parwanipur 132 kV line to supplement
the heavily loaded 66 kV lines.

Banepa-Panchkhal project will be
started to improve the power
distribution network in Banepa area
and to construct the facilities for the
evacuation of the power from
Indrawati Hydro Project.

IN REVIEW

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boul
ना
नत

Discussions are underway with
DANIDA, ADB and other donor/
lending agencies to implement these
projects.

GridO&M

Amongst its O&M works, (1)
rerouting of 2 km of the 132 kV
transmission line damaged by heavy
landslide in Nawalparasi was done, (2)

two damaged 132 kV towers in the
Eastern Region were replaced by new
towers, and (3) replacement of 11kV
Oil Circuit Breakers with Vacuum
Circuit Breakers were completed at
New Chabel, Bharatpur, Simara and
Parwanipur Substations. Regular
maintenance of transformers were also
carried out, along with testing and
calibrations of energy meters in
various substations in Eastern and
Central regions. Four new energy
meters were installed in Bagmati
Division. All the relays of Eastern and
Central Division were tested and the
distance relay at Dhalkebar substation
was replaced by a new one. Efforts are
being made to improve system
operation and maintenance for
continuous and reliable power supply.

DISTRIBUTION AND CONSUMER
SERVICES

Central and East & West Directorate

With only about 15% of the
population having access to electricity,
the challenge facing the DCS is
enormous. The difficult terrain,
inaccessible and scattered nature of

the settlement makes distribution
system expansion in the rural areas
expensive. In order to control the non-
technical losses, DCS has forwarded
the revised draft of Anti-pilferage Act to
the Ministry of Water Resources after
incorporating the suggestion from the
consultants NRECA and reviewed by
ADB. Moreover, the Electricity Theft
Control Regulation 2050 and the
Electricity Distribution Regulations
have already been
implemented.
Electricity sales,
which totaled
1112.886 GWh,
was an increase of
about 61.457 GWh
(5.8%) over last
year's sales figure.
Internal sales within
Nepal increased to
1052.886 GWh
and accounted for
94.6 percent of the
total sales and
registered an
increase of 68.867
GWh (7 percent) over the last year's
figure. Exports for India decreased by
11 percent largely because of energy
constrained conditions in Nepal.
Over the past financial year, the
number of consumers grew by an
estimated 45,151 (7.85 percent) over
the previous year's figure to reach a
total of 620,000. The domestic
category accounted for 95.31 percent

of the total consumers, 37.31 percent
of the total sales and contributed to
37.71 percent of the revenue. The
industrial category formed only 2.45
percent of the total consumers, but
accounted for 39.28 percent of sales
and contributed to 37.80 percent of
the revenue. Non-commercial category
constituted 1.24 percent of the consu-
mers, accounted for 5.8 percent of the
sales and 7.87 percent of the revenue.
Likewise, the commercial category
constituted 0.48 percent of the total
consumers, accounted for 6.99
percent of the sales and provided 9.4
percent of the revenue.

In the case of DCS East-West
Directorate, there has been improve-
ment in the collection of outstanding
arrears and system loss situation. In the
FY 1998/99, the total loss figure up to
the month of March is 15.16%
whereas the figure for the correspond-
ing month in FY 1997/98 was 17.03%,
thereby posting a reduction in system
loss by 1.87 percentage point.

Profit Centers

In order to bring about efficiency in
the operation of the distribution system
the concept of profit center has been
introduced. In the FY 98/99 a total of
15 DCS Division Offices were
converted into profit centers. These are
(1) Kathmandu Central, (2) Kathmandu
West, (3) Kathmandu East, (4) Lalitpur,
(5) Bhaktapur, (6) Birganj, (7)
Biratnagar, (8) Janakpur, (9) Pokhara,
(10) Nepalgunj, (11) Bhairahawa, (72)
Butwal, (13) Bharatpur, (14) Heta
and (15) Dharan. These 15 profit
centers account for 64% of NEA's
consumers and 81% of NEA's
revenue. Based on the overall impro-
vement in the operational efficiency,
which is evaluated on such parameters
as revenue collection, reduction in the
cost of operation and losses in relation
to the bench mark figures, there is a
provision for reward and punishment.
Over the last one year the major
achievement of these profit centers has
been in the area of establishing the
precise amount of losses in their
system. For this purpose, most of the
Profit Centers have completed the
installation of proper metering system

both for the establishment of energy
balance in the system as well as to
measure the internal consumption. As
a result they are able to identify the
losses precisely. tn the process the
areas of high losses have also been
identified, and corrective measures
initiated.

Rural Electrification and Distribution
Improvement and Reinforcement

Recognizing the need to expand
Nepal's central grid system to provide
power to more people in both the
urban and rural areas, particularly after
the coming on line of the Kali Gandaki
A, a number studies for the expansion
and the reinforcement of the distribu-
tion system has been undertaken.
Loan financing from the ADB will be
directed to help expand and reinforce
the distribution systems, to assist in
agriculture production and cottage
industries, to improve the quality and
the reliability of power supply, and to
reduce system losses. For the formula-
tion of the project proposal under the
proposed Eighth Power Project, ADB
had appointed Worley International
Ltd. of New Zealand to identify the
feasible project areas. The consultants
have already submitted the final report.

The Private Sector and Independent
Power Producers

Two hydro power venture from the
private sector along the BOT regime,

namely the Khmiti। and the Bhote
Koshi HEP showed satisfactory
progress in construction and are
expected to commence operations in
July 2000 and July 2001 respectively.
In the case of Indrawati HEP being
developed by National Hydro Power
Company, the financial closure has
been achieved and are now in the
process of commencement of
construction works.

Power Purchase Agreement (PPA)
was signed on 2056/4/5 (July 21,
1999) with Nepal GITEC Pvt. Ltd. for
the purchase of power from the 14
MW Upper Modi HEP. One notable
aspect of the PPA is that the payment
will be partially done in local currency.
Ten percent of the total bill of the
power purchase will be paid in the
Nepalese rupees to begin with, which
will progressively be increased to 30
percent in fifteenth year and remain at
that level thereafter.

Nepal-India Power Exchange

The Indo-Nepal Power & Exchange
sub-committee meeting was held in
Kathmandu from May 17-21, 1999.
The Indian delegation was led by Mr.
S.K. Thakral, Director (SP&A), CEA,
while the Nepalese delegation was led
by Mr. P.M.S. Pradhan, Director-in-
Chief, Planning Directorate, NEA. The
two teams agreed to the three additio-
nal 132kV interconnection points and
to expedite the implementation of
these projects as soon as possible.
Main objective of the meeting is to
enhance the exchange of power with
India from 50 MW to 150 MW. For

IN REVIEW
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this purpose following three intercon-
nections with India are to be under-
taken : Butwal - Anand Nagar (India)
132 kV transmission line (30 km in
Nepal). Birgunj- Motihari (India) 132
kV transmission line (25 km in Nepal),
Dhalkebar - Sitamarhi (India) 132 kV
transmission line (23 km in Nepal).
Detail route survey and
Environmental Impact study of the
transmission line will be started in the
current fiscal year. The cost of the
project, estimated at NRs. 232.2
million is to be borne by HMG/N and
NEA. The project is scheduled for
completion by the end of 2001.

Donorsand Assistance

Both the bilateral and multilateral
agencies have come forward with the
proposals for grants and soft loans.
The ADB has shown interest in the
funding of Eighth Power Project which
covers rural electrification and system
reinforcement in the urban load
centers. Similarly, DANIDA has shown
interest in the grant assistance in the
construction of Kailali-Kanchapur RE
system and also for the construction of
Hetauda-Bardaghat 220 kV transmis-
sion line. Recently, the German agency
KfW has approved DM 250 million for
the construction of 61 MW Middle
Marsyangdi HEP, under German grant
assistance. "

Public Relations

NEA continued to interact with the
public and the media to attain greater
transparency in its activities. A public
interaction was held
on June 25, 1999 to
appraise the media,
businessmen,
consumer and the
general public about
the activities of NEA
in the power sector.
Various MPs, and
other distinguished
guests voiced their
opinions and gave
their suggestions
during this program.

IN REVIEW
MIIAIY NI

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PROJECT HIGHLIGHTS

Kali Gandaki 'A' Hydroelectric Project

Approximately 180 km west of Kathmandu,
located on the southern edge of Middle
Mountains on the Kali Gandaki River in
Gandaki Zone, this project is a run of river type
hydroelectric scheme, with an installed
capacity of 144 MW. The project will generate
842 GWh of energy annually using a power
tunnel of about 6.0 km length. The power
generated from the project will be evacuated to
the central grid through 132 kV transmission
lines to Pokhara and Butwal. The total project
cost is estimated to be US $ 452 million.

All the construction work contracts such as
civil works, hydraulic steel works, electrical and
mechanical works and 132 kV transmission
lines and substations are in place. The contract
for civil works was awarded to Impregilo SpA of
Italy, contract for hydraulic steel works to Noell
Stahl of Germany, electrical works to Mitsui/
Toshiba/Cegelec a joint venture company,
mechanical works to Mitsui/Toshiba Joint
Venture and 132 kV transmission lines and
sub-stations to TATA/ Marubeni Joint Venture.

The critical activities such as River Diver-
sion through uncompleted Desander Basin and
Diversion of the River back to its Channel
through uncompleted Diversion Dam were
completed in time respectively on November
12, 1998 and June 13, 1999. Excavation of the
remaining portion of the Desander Basin and

concreting work in the piers of the Diversion
Dam are in progress. Excavation of the
Headrace Tunnel and concreting works of the
powerhouse are also in progress. The founda-
tion work of Transmission line towers has been
started. Similarly construction of substation at
Lekhnath, Pokhara is in progress. Manufactur-
ing and supply of hydraulic steel works and
electromechanical works are going on
smoothly.

lam (Puwa Khola) Hydropower Project (IHPP)

Implementation of the 6.2 MW first ever
Medium Hydropower Project, undertaken with
NEA's in-house capability commenced on
September 1995. The feasibility study of the
project was carried out with the assistance of
JICA in 1993. Further studies and subsequent
implementation have been carried out by NEA.

The construction of the main civil works
commenced on October 1st 1995 after the
signing of contract between IHPP/NEA and
CWHEC-Laxmi J/V. Works mainly consist of the
construction of 30 m long diversion weir &
intake facilities, underground desanding basins,
spillway and flushing arrangements, nearly
3400 m long head race tunnel, head tank,
regulating pond (Capacity = 2000 m}), steel
penstock (990 m length) and a powerhouse &
switch yard located at the right bank of Mai
Khola (Kankai River).

Two units of horizontal axis pelton turbines
will be installed at the power house to generate
48 GWh of energy annually, which will be
transmitted to Ilam sub-station through 3.5 km
long 33 kV line.

So far the construction of diversion weir has
been completed. More than 85% progress in
the construction of undersluice/intake struc-
tures has similarly been achieved. Under-
ground work constitute more than sixty percent
of the total civil works volume. However, the
Geological conditions prevailing at most of the
underground works were found to be highly
unfavourable. Geological conditions, have
aggravated the delayed progress and cost
overrun. Despite the difficulties, little less than
60 m tunnel (total 4400 m) excavation is left as
of end July 1999. Head tank/ regulating pond,
penstock and supports and power house civil

works are the major surface works
under construction. The progress
achieved so far in those structures vary
between 60 (power house) to 95
percent (Regulating Pond).

Likewise, the contract for the
Hydro-mechanical works and Electro-
mechanical works have been awarded
to Nepal Hydro & Electro Co. (NHE),
Butwal and Dongfang Electric Co.
(DEC), PR China respectively. NHE has
so far installed more than 850 m of
Penstock pipes. Further installation /
erection of the penstock pipes and
other accessories will commence
soon.

Similarly, DEC has manufactured
most of the Electro-mechanical
equipment, plants and accessories at
factories in China and the majority of
the same have been delivered at site.
The first lot of equipment include
turbines, generators, grounding
materials, OCT, steel structures and
other ancillary parts. The second lot
mainly comprises of rotor, stator,
station transformer etc. Erection of the
equipment will commence soon.

The revised cost estimate of the
project is US$ 15.5 million. With over
85% of the project's work already
complete, power generation from the
project is anticipated to begin by the
end of 1999.

Modi Khola Hydroelectric Project

The construction of this 14 MW
hydroelectric project was initiated in
1996. The Project is being imple-

mented in Deupur
VDC of Parbat
District on the
Pokhara-Baglung
Highway. Main
features of the
project includes a
7.5 m high, 33 m
long diversion
weir, which diverts
water of Modi
Khola into a 155 m
long desanding
basin through a
250 m long
underground box
culvert. An open canal of 61m length
conveys the water to a regulating
pondage of 26,640 cu.m. capacity
located on the right bank of Modi
Khola. The semi-underground power
house is connected to this pondage
through a 1,507 m long headrace
tunnel of 3.15 m diameter, 41 m long
horizontal tunnel (below the surge
tank) with 4.24 m diameter, 38 m high
surge tank of 9 m diameter, vertical
shaft of 51 m height with 4 m diameter,
123 m long pressure tunnel with 4 m
diameter and a 328 m long under-
ground penstock pipe with 3.2 - 3.5
m diameter. A 262 m long under-
ground tailrace releases the water back
into the Modi Khola. Two units of 7
MW capacity vertical shaft turbines
will be installed. With a net head of 67
m and total installed capacity of 14
MW the plant will generate 91 GWh of
energy annually. The generated power
will be evacuated to the national grid
through a 40 km long 132 kV trans-
mission line to Pokhara.

Because of weak geological
condition encountered during tunnel
excavation, the length of steel pen-
stock has been increased from 90m to
328m.

The estimated construction cost of
the Project is US $ 29.9 million. A loan
agreement with the Government of
Korea was signed on 10th November
1997 for an amount of 12,441 million
Korean Won for funding the Electro-
mechanical works, Transmission Line
and Technical Assistance. HMG/N and
NEA are funding the remaining cost.

The current overall progress is
about 80 percent and the Project is
expected to be completed by the fiscal
year 1999/00.

Middle Marsyangdi Hydroelectric
Project

This project is located on
Marsyangdi river in Lamjug District
about 40 km. upstream of this existing
Marsyangdi Powerhouse. The project
is peaking run-of-river type with an
installed capacity of 61.2 MW and an
average annual energy generation of
364 GWh. It consists of a 46 m. high
concrete dam with gated spillways, a
vertical flushing surface desanding
basin, a 5.4 m. diameter and 4.5 km.
long concrete lined headrace tunnel, a
surge shaft with restricted orifice, a
high pressure shaft and an under-
ground powerhouse equipped with
two units of 30.6 MW Francis turbines.
The power will be evacuated by a 41
km long single circuit 132 kV transmis-
sion line to the existing switchyard of
Marsyangdi Power Plant. The total

estimated project

cost is US$ 149
million at 1997
price level. The
construction of the
project will start
from March 2000,
and is expected to
be on line by
August 2004.

With the
completion of the
Upgrading
Feasibility Study,
Hydraulic Model

IN REVIEW

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ACCESS TO PROJECT SITE

Test and additional geotechnical
investigation, the project has entered
into the phase of Detailed Engineering
Design and Tender Document
Preparation. FICHTNER Joint Venture
has been appointed for the Detailed
Engineering Design and Tender
Document Preparation as well as
Construction Design and Supervision.
The Consultant has already com-
menced its work, the land acquisition
for construction including compensa-
tion and resettlement of the project
affected families are also in the
process. Similarly, Joint Venture of
TAEC and NESS has been selected for
the Detailed Environment Impact
Assessment Study and Mitigation and
Monitoring of Mitigation Plan. The
project is to be financed as follows: (a)
German Government (BMZ/
Kreditanstalt fur Wiedirautbau (KfW)
will provide 87% (130 Million US$) of
the project cost as a grant to HMG/N.
Recently, the German Government
and HMG/N have signed the financing

—
MARSYAN GO!
DAM SITE

agreement of the grant of 250 million
DM towards the foreign component of
the project cost, (b) of the remaining
13% (19 million US$) of the project
cost, 25% will be borne by HMG/N
and 75% will be borne by NEA.

Chilime Hydroelectric Project

The construction of Chilime
Hydroelectric Project is being under-
taken by Chilime
Hydropower
Company Limited
with the major
share of NEA.
Located in Rasuwa
district of the
Central Develop-
ment region, the
project will have an
installed capacity
of 20 MW and the
annual energy
generation from it
will be over 137

GWh. The contract for Civil Works Lot
No. 2 was terminated in October 1998
due to slow progress of works by the
contractor.

New contract agreement with two
Nepali construction companies for the
Civil Construction Works of the
surface works has already been made
and both the contractors have started
the construction works. Negotiation on
tender for Civil Engineering Construc-
tion Works for underground works is
in progress and is expected to be
finalized shortly. In the same way, the
re-evaluation of tender for Electro-
mechanical Works is completed. In
order to gain the construction time, the
critical elements of construction of
underground civil works is continued
on labour contract basis through
Nepali contractors after the termination
of previous contract. The construction
of diversion weir and underesluice
have been completed and excavation
of 400 m length of headrace tunnel,
117 m construction adit, the tailrace
tunnel, the main access tunnel,
construction adits to penstock shaft,
powerhouse crown and transformer
cavern have been completed. Under-
ground excavation work of power-
house crown, transformer cavern,
enlargement of surge shaft and the
headrace tunnel is in progress. The
construction of 66 kV transmission
line for the evacuation of power from
the Chilime Hydroelectric Project is
also in progress.

For the financial closure of the
project, the Chilime Hydropower
Company is negotiating with the
financial institutions of Nepal. Share

collections from the employees of NEA
and the public will be launched within
the next six months. The project is to
be completed by April 2001 at an
estimated cost of Rs. 2323 million.

Dolpa Small Hydropower Project

Undertaken with funding from
HMG/N at an estimated cost of NRs. 67
million, the construction of Dolpa
Small HEP started in FY 1993/94. The
project with an installed capacity of
200 kW is located near Dunai, the
district headquarters of Dolpa. The
project utilizes the water of Jairi Khola
through a 1100 metre long headrace
canal. About 5000 people of Dunai,
Shahartara and Jhupal will benefit from
the project which will be served by
some 30 km of 11 kV and 10 km of
400 V distribution lines. The project is
slated for completion by FY 1999/00.

Kalikot Small Hydropower Project

Undertaken with funding from
HMG/N at an estimated cost of NRs. 76
million, the construction of Kalikot
Small HEP started in FY 1993/94. The
project with an installed capacity of
500 kW utilizes the water of Sanigad
river through a 1100 metre long
headrace canal. About 12500 people
of Khadachakra, Manma, Mehalmure,
Mumra, Rakhu, Resilisipkam, Siuna
and Phukhet will benefit from the
project which will be served by some
50 km of 11 kV and 22 km of 400 V
distribution lines. The project is slated
for completion by FY 1999/00.

Gam Gad Small Hydropower Project

Necessary preparatory works for
the implementation of Gam Gad Small
HEP took off in FY 1998/99. The
project with an installed capacity of
400 kW utilizes the water of Gam Gad
river through a 1755 metre long
headrace canal. Once the project is
completed Shreenagar (Gamgadi),
Karkibada, Ruga, Pina and Rara
National Park would have access to
electricity through some 20.5 km of 11
kV and 11.5 km of 400 V distribution
lines. The estimated cost of the project

is NRs 132 million. The project is
slated for completion by FY 2002/03.

Heldung Small Hydropower Project

Necessary. preparatory works for
the implementation of Heldung Small
HEP took off in FY 1998/99. The
project with an installed capacity of
500 kW utilizes the water of Ghatta
Khola through a 838 metre long
headrace canal. Once the project is
completed Simikot, Baragaon (Thehe),
Dandaphaya, Chhipra and Syada
would have access to electricity
through some 18.2 km of 11 kV and
12 km of 400 V distribution lines. The
estimated cost of the project is NRs
103.5 million. The project is slated for
completion by FY 2002/03.

Small Hydropower Master Pian
Project

In order to carry out studies of
potential small hydropower projects
(100 kW to 5000 kW), the Small
Hydropower Masterplan Project
(SHMP) was initiated in 1990. It was
initially supported by GTZ and after
the phasing out of the project in 1993,
HMG/N and NEA decided to continue
the activities of the SMHP project. This
project has so far identified 39 SHP
schemes for grid connections and 32
SHP schemes for isolated develop-
ment. Feasibility studies of eight SHP
schemes and detailed engineering
design of five SHP schemes have been
completed.

During the FY 1998/99, inventory
study of Kalanga Gad (8000 kW) in
Doti, Manahari Khola (4000 kW) in
Makwanpur, Sabha Khola (2000 kW)
in Sankhuwasabha and Dordi Khola
(2500 kW) in Lamjung were carried
out. Also, the feasibility study of
Sunaya Gad (4800 kW) in Baitad!
started from FY 1997/98 has been
completed in FY 1998/99. The field.
survey for detailed engineering design
of Mujkot Khola SHP project has been
completed and final design of this
scheme is scheduled to be completed
in the current FY 1999/00. The
detailed engineering design of Phoi
Gad (150 kW) in Dolpa which was

started in FY 1998/99 is also sched-
uled to be completed in FY 1999/00.

Devighat - Dhading 33 kV Transmis-
sion Line Project

The Devighat - Dhading 33 kV
Transmission Line Project costing
about NRs. 60 million is financed
through a grant of Federal Republic of
Germany and HMG/N's contribution.
The project consists of building 19 km
of 33 kV line, 40 km of 11 kV line,
100 km of 400/230 V line and one 1
MVA 33/11 kV sub-station. On
completion, the project is expected to
electrify Nilkantha, Sankos,
Sunaulabazar, Muralivanjyang and
Khalte VDC's and augment the
electricity supply of Dhading Bazar
which is currently being intermittently
supplied through a 32 kW small hydro
power plant.

The project started in April 1997,
the construction of lines is nearing
completion. The project is slated for
completion by April 2001.

Sindhuwa - Khandbari 33 kV
Transmission Line Project

The Sindhuwa - Khandbari 33 kV
Transmission Line Project costing
about NRs. 66.4 million is financed by
HMGIN. The project consists of
building 47 km of 33 kV line, 25 km of
11 kV and 400/230 V lines and one
1.5 MVA 33/11 kV sub-station. On
completion, the project is expected to
benefit 2300 households of
Sankhuwasaba, Bhojpur and
Tehrathum districts.

Started in FY 1997/98, the project
is slated for completion by FY 2000/
01.

Sindhull - Ramechhap 33 kV
Transmission Line Project

The Sindhuli - Ramechhap 33 kV
Transmission Line Project costing
about NRs. 39.5 million started in FY
1995/96. With an objective of
electrifying Manthali, the headquarters
of Ramechhap district, the project
consists of building 30 km of 33 kV
line, 28 km of 11 kV and 400/230 V

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lines and one 33/11 kV sub-station.
The construction of lines is complete
and works on the 33/11 kV sub-station
will commence during FY 1999/00.

Gaighat - Diktel 33 kV Transmission
Line Project

The Gaighat - Diktel 33 kV
Transmission Line Project costing
about NRs. 57 million started in FY
1995/96. With an objective of
electrifying Diktel, the headquarters of
Khotang district, the project at the end
of FY 1998/99 has constructed 69 km
of 33 kV line and 16 km of 11 kV and
400/230 V lines.

Kusaha-Dhalkebar 132 kV Second
Circuit Transmission Line Project:

This project is built to facilitate
system power transfer and utilize the
power import from India. It consists of
a 120 km, 132 kV second circuit
stringing on the existing transmission
towers from Kusaha to Dhalkebar.
Substation extensions at Kusaha,
Lahan, Dhalkebar and Hetauda are
also being carried out. This project
financed by World Bank started in FY
1996/97 and is expected to be
completed by October 1999 at an
estimated cost of US$ 4.4 million.
Since the credit for PSEP has not been
extended on its expiry on 31st
December 1998, NEA is currently
financing this project from its own
resources.

The hot line stringing of Kusaha -
Dhalkebar 132 kV second circuit is
completed and the second circuit has
been charged on July 23, 1999. Civil
work of reinforcement and extension
of Hetauda, Dhalkebar, Lahan and
Kusaha substations has been com-
pleted and Equipment Erection work in
all the substations is under progress.

Hetauda-Dhalkebar & Butwal-
Bardaghat 132 kV Second Circuit
Transmission Line Project:

This Project 1s part of the Hetauda-
Biratnagar 132 kV Transmission Line
2nd Circuit stringing Project. With this
line the power imported from India

can be utilized. Along with increasing
the flexibility of power export/import
when necessary, it serves to transfer
power generated from Kali Gandaki to
the eastern zone. It constitutes of 174
km, 2nd circuit stringing on existing
transmission line towers from Butwal
to Bardaghat and from Hetauda to
Dhalkebar. The Project was initiated
on the understanding that the World
Bank would finance it under Credit-
NEP 2347 (PSEP) [which expired on
31st December 1998] and the
disbursement after the expiry of this
credit was to be covered under Power
Development Project (PDP, World
Bank). The previous credit expired and
the World Bank did not agree to
extend its validity nor did the new
credit agreement took place. In this
situation the tender (i.e. re-tender) for
transmission line construction was
continued with NEA''s own resources.
The stringing of the 2nd circuit is
estimated to cost US$ 2.2 million.

Khimti-Bhaktapur-Balaju 132 kV
Transmission Line Project:

To evacuate 60 MW power from
Khimti Power House and 36 MW
power from Upper-Bhotekoshi Hydro
Power Plants, this 104 km long Khimti-
Lamosangu-Bhaktapur-Balaju 132 kV
Transmission Line is being con-
structed. Of the total length, 46 km
Khimti-Lamosangu sector is single
circuit and 58 km Lamosangu-

Bhaktapur-Balaju sector is double
circuit. The project also includes one
132/66 kV, 3x16.5 MVA substation at
Bhaktapur and one 132 kV switching
substation at Lamosangu. Funded by
the Govt. of Finland, Nordic Develop-
ment Fund, HMG/N and NEA, the
estimated total project cost is about
NRs 1394 million.

Out of 310 towers, all foundation
works have been completed, 95% of
towers have been erected and 75% of
conductor stringing works has been
completed. Both the substations have
already been completed.

The project is scheduled to be
completed by October, 1999. Thus,
the line will be ready to receive power
prior to the commissioning of Khimti
Hydro Power Plant.

Chilime-Trishuli-Devighat 66 kV
Transmission Line Project:

To evacuate 20 MW of power from
the Chilime Hydropower Project, NEA
is presently constructing a 39 km long
66 kV single circuit line from the
Chilime powerstation at Rasuwa to the
existing Trishuli substation, which will
also be linked with the Devighat
substation thereby reinforcing the 66
kV network in that region.

About 50 percent of the total line
length falls in Langtang National
Reserve. To minimize environmental
impact, the line is routed mostly along
the Trishuli-Somdang road, incurring

an additional cost due to increased
number of tension towers.

This is probably the first major
transmission line project in Nepal
which is not employing turnkey
contractors. Conductors are supplied
by local manufacturers whereas towers
and insulators along with hardware are
procured separately from two Indian
manufacturers. Materials thus arrived
at the project site are being installed by
Nepalese line construction contrac-
tors. About 23% of total towers have
been erected by July 15, 1999 and
stringing of conductors will commence
after the monsoon.

One of the challenges of this
project is the construction of a 1340 m
long span across the Trishuli River at
Dhunche where heavy wind is
encountered continuously throughout
the year. Another special feature is that
all project works relating to survey,
design and construction supervision
are done by NEA engineers without
the help of any consultants.

The project is scheduled for
completion by February 2000.
Estimated to cost NRs. 202 million, it is
jointly funded by HMG/N and NEA.

Lalpur-Gaddachowki 132 kV
Transmission Line Project:

A 12 km long 132 kV transmission
line from the existing 132 kV substa-
tion at Lalpur (Mahendranagar) to
Gaddachowki located in Nepal near
the Indo-Nepal border is being
constructed by NEA. This is to receive
70 million units of energy into

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66

at ey

Nepalese grid from the Tanakpur
powerhouse in India under the
Mahakali Treaty between His Majesty's
Government of Nepal and the
Government of India. The line will be
interconnected with a 4 km long line
being built by the Government of India
from Tanakpur to Gaddachowki. After
completion of this line, the Far
Western Region of Nepal is expected
to have a reliable power supply.
Funded jointly by HMG/N and NEA,
the project is estimated to cost NRs.
119 million.

Construction of the project inside
Nepal has been awarded to the
contractor Larsen & Toubro Limited of
India. About eighty percent of con-
struction and erection of the transmis-
sion line and substation extension
works have been completed. The
remaining transmission line works are
expected to be completed by the end
of 1999.

LDC and Balaju Substation Expan-
sion Project

To enable evacuation of power
from Khimti, Bhotekoshi and Chilime
Power Stations that are currently being
built, existing Balaju Substation is
being expanded under LDC and
Balaju Substation Extension Project.
Under the same project, a new LDC is
going to be built in Siuchatar. The
important benefits once the new LDC
come into operation are increased
power system reliability with fewer and
shorter system trippings, reduction in
transmission losses, better planning
and supervision of
the maintenance
works, better data
management and
forecasting
capabilities and
enhanced quality
of electricity
supply. The new
LDC will be
equipped with
SCADA system.
The installation of a
reliable, NEA
owned and
operated telecom-

munication system and telephone
system between the LDC and all HV
substations and major power plants is
a priority of the project. The NEA
owned and operated telecommunica-
tion system will comprise of PLCC,
digital Fibre Optic link as well as UHF
links. One indirect benefit out of this
project will be the opening of new
avenue of revenue generation for NEA
by commercially exploiting abun-
dance of channels in its telecommuni-
cation system.

Kulekhani Disaster Prevention
Project Il

The 60 MW Kulekhani-! and 32
MW Kulekhani-ll hydropower stations
together presently contribute about 30
percent of the power requirement of
the country. Some important structures
of Kulekhani Power Station were
seriously damaged by the floods of
July 1993. A sediment survey of the
Kulekhani reservoir carried out in
March 1993 revealed that about 7.71
million m? of the reservoir was already
filled with sediment. This meant about
66 percent of the dead storage was
reduced in the last 13 years. Consider-
ing the urgent need of sediment
control works in the reservoir and
permanent restoration works of
Kulekhani Power Stations, the
Kulekhani Disaster Prevention Project
(II) was implemented. The project
commenced from Nov. 1996 and is
scheduled for completion by June
2001.

The main features of the project
include the construction of a sloping
intake, check dams, project inspection
road, Rapti outlet Tunnel, modification
of Mandu head pond and the installa-
tion of telemetering equipment. The
bell mouth intake of Kulekhani-I was
converted into a sloping intake. The
sloping intake is approximately 100 m
long and concrete stoplogs can be
lowered from the stoplog-lowering
device at the top of the intake to
prevent clogging due to sedimentation.
Check dams were constructed on the
upstream side of the reservoir and at
the mouth of Darkot to mitigate
sediment inflow into the reservoir. In

addition, the Check Dam No. 1 at the
upstream edge of reservoir is being
constructed to trap the sediment.

The construction of Mandu
embedded head pond, Mandu
submerged intake, Rapti pump up
intake and outlet tunnel were also
completed to avoid direct attack of
debris flow, to take submerged water
of Mandu river and to pump up water
from Rapti river to the intake of
Kulekhani-Il power station. The
construction of the Project Inspection
Road between Bhimphedi and
Kulekhani (15 km) is being carried out
and about 23% progress has been
achieved as scheduled. The mobiliza-
tion for installation of telemetering and
other related systems has been started.

The estimated construction cost of
the project is approximately 4060
million Japanese Yen. To meet the
project cost a loan agreement between
His Majesty's Government of Nepal
and OECF for an amount of 3,484
million Japanese Yen was signed.
HMG/N and NEA will fund the
remaining cost.

Rural Electrification and Distribution
Improvement Project

Rural Electrification and Distribu-
tion Improvement Project (REDIP) will
be implemented by NEA to extend
electrification into rural areas and also
to reinforce existing distribution system
in various parts of Nepal. The project
will aid rural development as well as
create demand to meet the twofold
increase in the supply in the next few
years. The funds for the project will be
provided by loan assistance from ADB,
HMG/N and NEA. The total cost is
estimated to be US$ 23.159 million.
The rural electrification component
features construction of 18 km of 33
kV lines, two 33 kV substations (4.5
MVA), 846 km of 11 kV lines, 419 km
of composite lines, 1284 km of LV
lines and 683 numbers of distribution
transformer stations with a total
Capacity of 49 MVA. The project aims
to provide connection to at least
165,800 houses within its planned
period of ten years in 287 village
develapment committees.

Loss Reduction Project

Financed by ADB as a component
of loan to the Kali Gandaki-A project,
the Loss Reduction Project is under
implementation since FY 1996/97. The
main activities of this project is to
design and implement a program to
reduce non-technical losses of NEA.
NRECA International Ltd., USA was the
consultant since March 1998 to (1)
conduct a general review and prepare
a plan for non-technical loss reduc-
tion, (2) design incentive and staff
deciplinary schemes, (3) devise
Vigilance and Energy Audit Proce-
dures, (4) establish legal measures for
prosecution of defaulters, (5) prepare
Service Contact for Billing and
Collection Operations, (6) segregate
non-technical and technical losses,
and (7) train NEA staff and recommend
suitable computer software for
Distribution System Planning.

Study tour programs have been
completed with teams visiting electric
utilities of Bangladesh, Thailand and
Philippines to study techniques of
controlling non-technical losses in
their utilities.

The final report of consulting
services has already been submitted
by the consultant and has been
reviewed by NEA management. The
final action plan has been prepared
and approved for implementation by
the NEA Board.

The total cost of the project is
about NRs. 203.5 million. Out of the
total project cost ADB will finance US$
2.3 million, HMG/N NRs. 13.8 million
and the remaining NRs. 41.2 million
will be borne by NEA. The project is
expected to be completed by the FY
1999/00.

Computerized Billing Project
Phase - Il

The Computerized Billing Project
was conceived to computerize the
customer billing and revenue account-
ing system of NEA with a view to
maintaining accurate data of the
consumers, aid loss reduction
activities, improve revenue collection,
provide an improved information

system to the management, provide
improved quality and accuracy of bill
and enable timely availability of
information for preparation of year-
end-accounts.

After the successful introduction of
Phase। of a Pilot Computerized Billing
System in Kathmandu West Branch, in
March, 1997, Phase I! was initiated to
computerize the revenue billing
system in the remaining 15 revenue
collection centers spread throughout
the Kathmandu Valley. This Phase Il
will cover about 38 percent of the total
NEA consumers that contribute about
33% of the total revenue of NEA.

Prior to the extension of the
computerized system used in
Kathmandu West Branch to the
remaining 15 collection centers in
Kathmandu Valley, this pilot system
was reviewed and necessary changes
were subsequently adopted for Phase
Il. Specification and Tender Docu-
ments were accordingly finalized for
the procurement of information
system, equipment, software and
services for a modified system.
Preparation of a short list of consulting
firms and establishment of prerequi-
sites such as preparation of a con-
sumer database for the implementation
of Phase II is also complete. The
project will go into the implementation
phase once funding is finalized.

Seventh Power Project

The Seventh Power Project, jointly
funded by the Asian Development
Bank, HMG/N and NEA with revised
estimate of US$ 67.35 million was
started in 1990 and has now reached
an advanced stage of completion. ADB
loan No. 1011 NEP (SF) meant for the
Project was wound up on 31st.
December 1998 and all activities
relating to investment from ADB have
been completed. However, small
portion of remaining local construc-
tion works required for the rural
electrification in Ilam, Jnapa, Morang,
Sunsari, Siraha, Udaypur, Dhanusha,
Mahottari, Sarlahi, Rautahat, Bara,
Parsa, Chitwan, Dhading, Nuwakot,
Tanahu, Sindhupalchok, Nawalparasi,
Gulmi, Arghakhachi, Palpa, Kapilvastu,

Rupandehi, Banke and Surkhet
through funding of HMG/N and NEA
will continue and is expected to be
completed by FY 1999/00.

To achieve the target to electrify
947 villages in those districts, the
Project has implemented all activities
under the program including reinforce-
ment and rehabilitation of 11 nos. of
existing 132 kV and 33 kV substations,
construction of 15 nos. of new 33 kV
substations, construction of 337 km,
of 33 kV transmission lines, construc-
tion of 2,703 km, of 11 kV and 3,798
km, of 400 volt distribution lines,
procurement of materials and equip-
ment for rural electrification, procure-
ment of office support equipment,
procurement of vehicles and establish-
ment of one pre-stressed concrete pole
plant.

With the completion of the project
about 1,74,470 houses of the 25
districts will receive electrical service
connections, benefiting about
10,50,000 people . Physical progress
of the Project till 15 July 1999 is
estimated at 96.53 percent.

The total investment made by the
Project till 15 July 1999 is US$ 66.39
million. In view of the very satisfactory
achievement of the Project, the Asian
Development Bank awarded a
Certificate of Appreciation to the
Project in March 1999.

Training Centre

NEA is in the process of setting up
a permanent modern and well
equipped Training Centre at Kharipati
Bhaktapur. The project was started in
1997 and is heading for completion in
the current fiscal year. The project is
intended for formulation of training
strategy and development of a Training
Master Plan, conceptualization,
planning, design and construction of
the required physical facilities (Aca-
demic Building, Auditorium, Work-
shop, Laboratories, Simulator Room,
other infrastructure and amenities) and
identification, procurement and
installation of the required equipment.

The Training Centre Complex
Master Plan and the Training Master

Plan have been prepared and final-
ized. The construction of the facilities
is underway and shall be complete by
January, 2000. The facilities under the
Project include lecture rooms, seminar
rooms, simulator rooms, accommoda-
tion for trainees, accommodation for
warden, library, administrative block,
and central dining. The necessary
pedagogical equipment and aids for
conducting various training programs
have been indentified and procured.
These include Electrical Equipment
and Tools, Heavy Mechanical
Equipment and Tools, and Audio-
Visual Equipment.

Data Based Digitized GIS Mapping
System

As an introduction of GIS to NEA, a
pilot project "Data Based Digitized GIS
Mapping System" is being carried out
in NEAs Kathmandu West Branch. This
project is expected to develop
analytical capability for calculating
technical losses of our system. Data
Based Digitized GIS Mapping System is
going to build a data bank and GIS
maps of all information of electrical
parameters. The software to be utilized
are ARC INFO, ARC VIEW and
ORACLE. The project covers approxi-
mately 19000 consumers in urban
and rural sectors of Kathmandu West.
The information data bank consisting
of distribution poles, consumer details,
distribution transformers, transmission
towers, sub-stations and power houses
can be queried, searched and
analyzed on a touch of a button. Maps
can also be drawn instantly as per
requirement. The main objectives are
to build a data base using GIS in order
to conduct studies on loss reduction
and help in inventory management
and maintenance of the system.

Digitization works have been
completed in six feeders and approxi-
mately 9000 consumer household
surveys have been completed . In total,
nearly 60% of works have been
completed. This project is being
financed by NEA and is scheduled for
completion by mid of December
1999.

IN। REVIEW

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

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

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

PROJECT STUDIES

Kulekhani- 111 Hydroelectric Project

Kulekhani-lll Hydroelectric Project is a
peaking power station located 115-km
southwest of Kathmandu. It lies at Bhainse
VDC, Makawanpur district on the right bank of
Rapti river which is situated near the Hetauda-
Bhainse road.

Kulekhani-lll HEP primarily utilizes the
tailwater from Kulekhani-ll HEP (13.5m3/s). A
discharge of 1.5 m3/s from Khanikhola shall be
added to it. With the help of a 3.4 km long
connecting tunnel a total discharge of 15m23/s
shall be conveyed to Yangrang Khola reservoir.
In addition, Yangrang Khola river discharge
(0.5 m?/s) shall be added to it by constructing a
45 m high regulating dam. All these discharges
comprise a pondage of about 0.5 million m? in
the regulating reservoir. Afterward, this water
shall be taken to underground powerhouse
through a headrace tunnel of 550 m to
generate 40 MW of power for 4 hours peaking.
The water shall finally be discharged into the
Rapti Khola through a 2100 m long tailrace
tunnel. The annual energy generation of this
project shall be 59.42 GWh.

For the investigation purpose various works
have been completed. These works include

core drilling and seismic refraction survey at
tailrace site, topographic survey of whole
project area and test-adit (239 m) at different
locations.

The estimated cost of the project is 57
million US$. The Japanese government has
been approached for the financing of this
project.

AndhiKhola Storage Hydroelectric Project
(180 MW)

Andhi Khola HEP is a storage type project
with an installed capacity of 180 MW and
capable of generating 693 GWh including 394
GWh of firm energy annually. This project is
located in Syangja district near Galyang bazar
in the western development region. The cost of
the project according to the 1998 price level is
374 million US$. The benefit cost ratio is
estimated to be 1.56 with an internal rate if
return of 15.11 %.

According to the feasibility study, the salient
features of the project includes a 157 m high
concrete faced rock fill dam capable of storing
336.5 Mm? of water, out of which 238.7 Mm?
is live storage. The water from the Andhi Khola
reservoir will be conveyed by a 3395 m long
headrace tunnel, 230 m high drop shaft and
1350 m underground penstock to a semi
underground powerhouse equipped with three
60 MW Francis turbines and the water is to be
discharged into the Kali Gandaki river through
a 85m tailrace.

According to the updated Environmental
Impact Assessment Study, the project will affect
directly or indirectly about 1192 families (272
of them seriously) of 7 village development
committees (Shree Krishna Gandaki, Nibuwa
Kharka, Jagatradevi, Pelakot, Tulsi Bhanjyang,
Tin Dobato and Thum Pokhara).

Tama Koshi- 3 Hydroelectric Project (330 MW)

This is a storage type project on Tama
Koshi river in Dolakha district of Central
Development Region. The project site is
located about 140 km east of Kathmandu. The
dam site is located about 2.5 km upstream from
Nayapul on the Lamosangu-Jiri road and the

powerhouse is located about 5 km
downstream from Nayapul and 500 m
upstream from the confluence of Dholi
Khola with Tama Koshi. In the FY
1998/99 the Preliminary Investigation
works and conceptual level design
including dam height optimization of
the project was carried out.

With a catchment area at the dam
site of 2752 km?, a 160 m high rock fill
dam, a 7.5 km tunnel, gross head of
214.5 m, and with an installed
capacity of 330 MW and a mean
annual flow of 144.2 m?/s, it will
generate about 1466 GWh of energy
annually. It will have a storage capacity
of 500 Mm.

The Project cost according to 1999
price level is 584.44 MUS$. The
benefit cost ratio has been estimated to
be 1.58 with an internal rate of return
of 1 4.85%

Upper Modi 'A' Hydroelectric Project
(42 MW)

The Upper Modi 'A' HEP is a 42
MW run-of-river scheme located on
Modi Khola in Kaski district of Gandaki
Zone. ॥ is situated just upstream of the
Upper Modi HEP. The Feasibility Study
Phase। of this project was carried out
during the fiscal year 1998/99 under
NEA financing.

The project has a catchment area
of 330 km?, mean annual flow 35.5
m3/s, design discharge of 16.71 m3/s,
a headrace tunnel of 6300 m and a
surface powerhouse with 3 Francis
turbines of 14 MW each. The project
is capable of generating 279.6 GWh of
energy annually including 143.5 GWh
of firm energy. NEA will carry out
further study of the project in the fiscal
year 1999/00.

Dordi Hydroelectric Project (9 MW)

Dordi HEP is a9 MW run-of-river
scheme located on Dordi Khola in
Lamjung district of Gandaki Zone. It is
about 170 km west of Kathmandu. The
Pre-feasibility Study of this project was
carried out during the fiscal year 1998/
99 under NEA financing.

The project has a catchment area
of 267 km?, mean annual flow of 20.2

m?/s, design discharge of 8.3 m?/s, a
headrace tunnel 3160 m long and a
surface powerhouse with 2 Francis
turbines of 4.5 MW each. The project
is capable of generating 59 GWh of
energy annually including 28.5 GWh
of firm energy. The power will be
evacuated by a 4-km long 132 kV
single circuit transmission line up to
the substation at Bhote Odar, the
proposed powerhouse site of Middle
Marsyangdi HEP.

Balephi Hydroelectric Project
(15 MW)

Balephi HEP is a 15 MW run-of-
river scheme located on Balephi Khola
about 5 km north of Jalbire Bazaar in
Sindhupalchowk district of Bagmati
Zone. The Pre-feasibility Study of this
project was carried out during the
fiscal year 1998/99 under NEA
financing.

The project has a catchment area
of 541 km?, mean annual flow of 44.1
m/s, design discharge of 23.5 m3/s,
headrace tunnel 4400 m long and a
surface powerhouse with 3 Francis
turbines of 5 MW each. The project is
capable of generating 95 GWh of
energy annually including 46.6 GWh
of firm energy.

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The estimated project cost is 41.5
MUS$ at 1999 price level. The benefit
cost ratio and internal rate of return of
this project are estimated to be 1.45
and 14.41% respectively.

Likhu - IV Hydroelectric Project

The project is located on Likhu
Khola in Ramechhap and
Okhaldhunga districts of central Nepal
about 36 km. from Tilpu. The project
is a peaking run-of-river scheme with
an installed capacity of 40 MW. With
a gross head of 247.2 m., it will
generate annual and firm energies of
235 GWh and 179 GWh respectively.
It consists of a 43 m high concrete
dam with gated spillways, a double
chamber 90 m long surface desanding
basin, a 3.45 m diameter and 4.3 km
long concrete lined headrace tunnel, a
surge shaft with restricted orifice, a
high pressure shaft and a surface
powerhouse equipped with two units
of 20 MW Francis turbines. The
power will be evacuated by a 25 km
long single circuit 132 kV transmis-
sion line connecting the central grid at
the Khimti HEP. The total estimated
project cost is US $ 76 million at 1999
price level. According to the Formula-
tion Report the project will start on

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May 2001 and is expected to be on
line by the end of 2006.

The feasibility study of this project
was completed in 1998 under the
Medium Hydro Study Project by
Canadian Water and Energy Consult-
ant with Joint Venture of ITECO Nepal,
Shah Consult and Integrated Research
Application and Development as the
sub consultant. This feasibility study
had recommended a power plant of
51 MW capacity with an average
energy generation of 275 GWh.
However, during the Detailed Engi-
neering Study, the installed capacity
has been optimized to be 40 MW
based on the modified firm flows and
pondage volume requirements and
latest information on geology. A 36 km
access road will be required for the
construction of the project. Joint
Venture of Silt Consult and Full Bright
Consultancy has been selected for
carrying out the Detail Engineering of
the access road and the work is in
progress.

The financing required for the
implementation of this project has yet
to be made. NEA is financing NRs.
16,42,480 for the Detailed Engineering
of above access road.

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Chameliya Hydroelectric Project

After the upgraded feasibility study
carried out by NEA in 1996/97,
detailed study of the project is being
carried out in association with SRC Lab
NEA. The present scheme is a peaking
run of river type with an installed
capacity of 30 MW. The project is
expected to generate 196 GWh
annually. The project is located in
Darchula district about 18 km north-
east of Gokuleswor on the Baitadi-
Darchula road. The main features of
the project with 3 units each of 10
MW vertical shaft Francis turbines and
265 m long box culvert type tailrace.
Power will be evacuated by 127 km
long 132 kV transmission lines from
Chameliya switchyard to Atariya sub-
station. Out of the total 18 km long
access road, the earth work and the
structural works of the 10 km portion
has been completed by the end of FY
1998/99. Meanwhile the construction
works for the 40 m span bridge on
Chameliya river at Karkale has been
initiated.

The survey licence of the project is
jointly owned by NEA and Nepal
Industrial Development Co-operation

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(NIDC). The total cost of the project is
estimated at US$ 77 million.

identification and Feasibility Study
of Storage Project

NEA is planning to conduct a study
on "identification and feasibility study
of a storage project" within the next
two years. Objective of this study is to
identify storage project of medium size
that can be taken up for implementa-
tion in the near future in order to
augment the supply of regulated
energy in the Nepalese power grid.
The work plan are divided into three
phases (i) coarse screening and
ranking study, (ii) fine screening and
ranking study and (iii) feasibility study.
During the current fiscal year, the field
investigation part such as survey,
seismic, environmental, conceptual
layout and 100 m exploratory drilling
shall be completed.

The storage projects that have been
studied up to feasibility study are
Andhi Khola, Dudh Koshi, Kankai
Multipurpose Project and Bagmati
Multipurpose Project. In order to
proceed with the study of the storage
projects, the scope of work has been

A YEAR

outlined as follows : (a) preparing the
list of storage project ranging from 10
MW to 300 MW, (b) new site identifi-
cation for storage projects, (c) to see
the possible conversion of listed ROR
and PROR into storage project, (d)
coarse screening and ranking study of
those identified storage project and
recommendation of good storage
projects for fine screening. The total
number of project shall be ten, (e) site
visit of all the storage project thus
screened and prefeasibility level study
of all the projects, (f} fine screening and
ranking study of projects and recom-
mendation of better storage project/s
for feasibility study. The total installed
Capacity should ranges up to 300
MW, (g) detail site investigation of one
project that includes environmental
study, geology and geotechnical study,
hydro-sedimentological study and
GLOF study if any, (h) detail feasibility
study of one project.

Birgunj Corridor Reinforcement:

Birgunj corridor comprising of
Simra, Parawanipur and Birgunj is one
of the major industrial area in Nepal.
The corridor's power demand is
presently being supplied from Hetauda
substation through a double circuit 66
kV transmission line. This overloaded
line has created a serious low-voltage
problem in the Corridor. At the same
time, additional power for new
industries is putting increasing
pressure on the 66 kV system. To
eliminate the existing power supply
problems the proposed scheme for
reinforcement of the corridor consti-
tutes the construction of the following :
(a) 132 kV, double circuit transmission
line from Pathlaiya to Birgunj area, (b)
132 kV, switching station in Pathlaiya,
(८ 132/11 kV substation in
Parwanipur, (d) 132/33/11 kV
substation in Chandranighapur and (e)
substation reinforcement works in
Hetauda and Dhalkebar.

The implementation of the project
is expected to commence from 2000,
and be completed by the end of 2002.
The project is estimated to cost US$ 18
million and is currently held up for
lack of funds.

Hetauda-Bardaghat 220 kV
Transmission Line Project:

This line is urgently required for
the system stability, reliability and for
evacuation of power generated by Kali
Gandaki Hydro Electric Project. it
constitutes of a 150 km, 220 kV
double circuit transmission line from
Hetauda to Bardaghat, and substations
in Hetauda, Kawaswoti and Bardaghat.
Initially it will be charged at 132 kV,
later on it will constitute part of
Integrated Nepal Power System (INPS)
east-west 220 kV trunk transmission
line. The project which should be
ready by the commissioning time of
Kali-Gandaki has not been able to take-
off due to funding problem. The
project is estimated to cost US$ 32
million and was initiated on the
assumption of being financed by the
World Bank under the Power Develop-
ment Project (PDP). As PDP is uncer-
tain, talks are underway with the
Danish Government for the implemen-
tation of this project.

Siuchatar-Chapagoan-
Budhanilkantha 132 kV Transmis-
sion Line Project :

Main component of the project
consists of a 45 km long double circuit
132 kV transmission line from existing
Siuchatar Substation to Bhaktapur
Substation along the southern outskirts
of the Kathmandu Valley. The project
scope includes the construction of 3
new substations in Thankot,
Chapagoan and Chapali. The project
will also take up the augmentation of
transformer capacities at Bhaktapur
substation. With the implementation of
the project, more than 100 MVA
transformer capacity will be added to
the system along with 15 MVAR
capacitor banks for power factor
improvement.

The completion of the project will
create the much needed 132 kV ring
line, which will contribute substantially
to improve the system stability,
operational flexibility and reliability of
power supply in Kathmandu Valley.

Environmental Impact Assessment
study of the project will be completed

in the current fiscal year and the
feasibility study of the project is being
carried out by consultants under the
Technical Assistance of ADB. The cost
of the project, estimated at US$ 22.5
million is under the active consider-
ation to be borne jointly by ADB,
HMG/N and NEA. The project is,
scheduled for completion by the end
of 2001.

Banepa-Panchkhal Substation
Project:

Construction of 10/12.5 MVA, 66/
11 kV substation at Banepa and 3
MVA, 66/11 kV substation at
Panchkhal are proposed under this
Project. The Panchkhal substation is
necessary to evacuate the energy from
the 5 MW Indravati power station. The
Banepa substation will improve the
supply condition of Banepa, Dhulikhel
and Panauti municipalities. It will
reduce system losses and improve
voltage regulation in that area. The
cost of the Project is estimated to be
Rs. 228 million. Government of
Norway was requested for the funding
of this project. At present NEA has
initiated the project from its own
resources.

Subtransmission and Distribution
Network Development Project

The project has completed the
techno-feasibility study for Rural
Electrification and Distribution System
Reinforcement (RE/DSR) schemes of 19
districts of Far Western, Mid Western,
Western and Central Regions of Nepal.
These districts are, Darchula, Baitadi,
Dadeldhura, Doti, Achham, Dailekh,
Surkhet, Bardia, Banke, Salyan, Rolpa,
Dang and Pyuthan from the Mid and
Far Western regions, Baglung, Parbat
and Syangja from the Western region
and Lalitpur, Bhaktapur and Kavre
from the Central region. More in depth
studies need to be carried for this
project and most importantly, financial
arrangements need to be made for
implementing it.

=
=
Pd
८०2
=
7.

BALANCE SHEET AS OF JULY 15

EQUITY AND LIABILITIES 1998* 1997
Equity

Share Capital 1,000.0 1,000.0
Share Allotment Suspense 11,324.3 9952.6
Capital Reserve 158.6 158.8
Reserves & Surplus 1,382.0 1046.5
Revaluation Surplus 11,968.0 13421.4
Insurance Fund 140.0 120.00
Total Equity 25972.9 25699.3

Long-Term Liabilities
17403.2
17403.2

Long-Term Loan 20,848.9

in million NRs

1996 1995 1994 1993 1992 1991 1990

1,000.0 1,000.0 1,000.0
8,231.6 7,122.9 5,796.7
158.6 147.9 137.6
359.0 (319.5) (346.0)

1,000.0 1,000.0 1,000.0 1,000.0
5,190.6 3,956.8 3,916.8 3,146.4
120.9 88.3 67.6 56.8
(444.6) (550.8) (500.3) (75.6)
14,799.3 14,286.1 14,238.3 13,988.0 13,421.7 12,369.412,065.3
100.0 80.0 0 0 0 0 0
24,648.5 22,317.420,826.6 19,854.9 17,916.0 16,853.516,192.9

14,900.4 13,367.2 12,880.6 11,649.510,070.4 8,812.3 2,422.8

Total Long-Term Liabilities

20,848.9

Current Liabilities & Provisions

Deposit from Customers 59.5 76.8
Other Deposit 677.5 407.7
Creditors for Goods 49.3 32.4
Other Creditors 201.6 429.1
Payable to Others for power purchase 377.6 4.3
Payable to HMG for Interest (Other) 877.1 647.6
Payable to HMG for Other (int) 1036.5 440.4
Royalty Payable 398.7 473.8
Provision for Bonus 41,1 38.1
Provision for Gratuity & Pension 140.3 140.3
Provision for Medical Facilities 20.7 20.7
Provision for Accumulated Leave 13.4 13.4
Provision for Wealth Tax 28.5 22.5
Provision for Income Tax 214.4 178.1
Total Current Liabilities& Provisions 4,136.2. 2925.2

Inter Unit Balance (Net) ~ -

TOTALUABILITIESANDEQUITY 50,958.0 46,027.7

* Subject to final audit

14,900.4 13,367.2 12,880.6 11,649.510.070.4 8,812.3 2,422.8

61.6 90.5 36.0 42.4 25.5 24.8 20.4
359.3 235.0 183.2 84.5 42.5 21.3 14.7
15.7 28.9 5.9 11.2 12.8 10.3 11.6
26.1 22.6 31.1 16.8 40.3 59.4 36.3
6.6 8.3 11.6 4.6 18.4 106.6 136.8
319.0 407.8 270.0 224.5 21.4 192.7 198.9
102 263.2 648.8 171.8 80.1 201.6 129.2
585.0 358.0 - - - - -
31.5 16.6 11.9 6.4 2.4 2.4 3.3
140.3 140.3 140.3 140.3. 140.3 140.3 140.3
20.7 20.7 20.7 20.7 20.7 20.7. २20.7
13.4 13.4 13.4 13.4 13.4 13.4 13.4
17.5 14.5 11.5 8.5 2.5 - -
104.8 34.4 34.5 7.2 7.2 7.2 28.4
1803.7 1,654.2 1,416.9 752.3. 427.5 800.7 754.0
- - 34.9 52.7 71.7 19.0 28.4

413525 37,338.8 35,124.1 32,291.6 28,466.6 26,538.2 19,388.7

BALANCE SHEET AS OF JULY 15

Fixed assets

Land

Buildings

Hydraulic Plant & Machinery
Internal Combustion P & M
Solar Power Plant
Transmission Line
Substation

Distribution Line

Meter & Metering Equipment
Consumer Service

Public Lighting

Tools and Instrument
Vehicles

Furniture & Office Equipment
Miscellaneous

Total Fixed Assets

Other Assets
Capital Works in Progress
Investment in Securities

Total Other Assets

Deferred Expenditure

Intern Unit Balance (Net)

Current Assets
Inventories

Accounts Receivable
Advances Recoverable
Cash & Bank

Total Current Assets
TOTAL ASSETS

* Subject to final audit

1998*

727.0
885.5
16,791.8
594.1
34.7
2656.0
2432.9
5630.6
89.4
25.6
18.1
20.2
80.5
76.0
1.2

696.1
789.7
16180.3
651.0
36.2
2837.9
2651.5
4535.0
85.8
31.2
17.5
17.0
595.8
46.3
2.1

1996

706.0
798.8

1995

665.3
755.1

1994

636.4
646.4

16174.1 15,951.7 15,802.5

708.0
37.6
3,057.3
2,901.0
4,750.1
100.3
37.0
16.3
13.3
92.4
43.4
3.0

716.9
39.0
3,024.9
2,959.5
3,983.4
112.5
42.8
16.3
12.4
85.4
46.4
2.0

737.2
40.5
2,704.6
3,038.4
3,042.6
97.4
48.4
14.4
7.6
37.9
39.8
0.4

1993

611.4
601.3

752.0
41.9
1,815.0
2,414.2
2,244.0
59.7
50.3
15.0
5.2
10.8
14.8
0.2

1992

578.9
573.7

175.6
43.3
1,825.8
2,436.4
2,226.5
56.3
52.7
15.5
5.4

8.9
13.9
0.3

=
=
>
if
[-"4
Zz.

uVIAV

M3IAIY NI

in million N .

1991

1990

537.6 499.9
535.0 451.7
15,490.0 15,171.2 14,568.0 9,872.3

178.4
45.1

177.6
46.2

1,797.6 1,696.4
2,404.5 2,408.4
2,142.8 1,479.2

50.4
52.9
15.9

5.3
18.9
14.0

0.3

30,063.6 28633.4 29,438.3 28,413.6 26,894.5 24,126.2 23,184.6 22,366.716,785.3
eee

14,655.2 11974.6 7,362.7 5,229.1 5,439.3 6,250.1 3,816.4 2,890.0 1,498.4

248.0
14903.2

110.4
241.2

914.9
1435.4
1709.6
1579.6

150.6
12125.2

267.3
133.2

804.0
1209.1
1329.0
1526.5

54.0

30.5

356.7

79.0

30.4

8.1

8.1

7416.7 5,259.6 5,796.0 6,329.1 3,846.8 2,898.1 1506.5

410.8
335.7

617.9
1,040.0
848.4

588.5
144.5

429.1
682.6
471.7

98.6
143.7

340.4
569.9
149.8

1244.7 1,349.2 1,131.2
5639.6 4868.6 3751.0 2,932.6 2,191.3 1,727.7 1,314.2 1,103.6 870.6

108.6

289.5
474.8
145.8
817.6

121.0

270.4
576.0
113.8
354.0

169.8

250.8
556.1
122.2
174.5

226.3

217.0
357.0
154.2
142.4

50958.0 46027.7 41352.5 37,338.8 35,124.1 32,291.6 28,466.6 26,538.219,388.7

IN REVIEW

AYVIAV

PROFIT & LOSS FOR THE YEAR ENDED JULY 15

in million NRs

Particulars
A. Revenue
Net Sale of Electricity

1999** 1998* 1997 1996 1995 1994 1993 1992 1991 1990

5420.6 5082.5 4767.3 3,728.9 3,218.5 2437.4 1,786.8 1,440.4 960.9 760.1

Income from Other Services 186.1 157.6 135.0 111.2 99.9 13.8 8.6 5.6 18.2 15.9

Interest & Other Income

Total-A

163.35 192.6 181.3 172.0 145.1 160.5 109.0 68.2 13.5 9.4
5770.0 5432.7 5083.6 4,012.1 3,463.5 2,611.7 1,904.4 1,514.2 992.6 785.4

B. Operation & Maintenance Expenditure

eee
Operation & Maintenance 1679.4 1554.5 1049.4 942.0 838.3 697.1 604.8 499.3 379.7 291.0

& General Expenses

Power Purchase

897.1 845.6 659.5 359.6 340.0 214.1 162.1 111.3 50.5 171.5

Provision for Expenses 25.0 109.3 80.5 45.9 7.7 8.5 7.0 8.7 - 48.8

— Baddebtswritenoff. एल ाठउ मता
Royalty 396.7 348.9 268.8 227.0 186.8 न - - - 0.3
Depreciation 1650.0 1544.9 1482.2 1,455.3 1,296.0 1,202.4 1,026.0 953.6 879.7 683.9
DefaredExpenditureWrittenoff 158.7) 175.3 188.7. 204.4 162.0 66.5 53.6 45.1 56.6 56.6
एम छड ८ कब806,9 4578, 3729.1 3,234.2 2,830.8 2,188.6 1,853.5 1,618.0 1,366.5 1,252.1

C. Net Operating
Surplus (Deficit) (A-B)

Loss of Capital Assets

963.1 854.2 1354.5 777.9 632.7 423.1 50.9 (103.8) (373.9) (466.7)
- - - - 35.8 - - - - -

Interest on Long-Term Loans (1312.2) (1317.2) (1207.5) (813.5) (797.0) (716.6) (625.5) (632.2) (635.1) (129.0)

Profit and (Loss) before Prior Year's (349.1) (463.0) 147.0 (35.5) (164.2) (329.3) (574.6) (736.0) (1009.0) (575.7)
income & Expenses Adjustment

Prior year Income /
Expenses Adjustment

Profit & (Loss) after
Prior Year Adjustment

Transfer from
Revaluation: Surplus

(50.0) 11.3 (176.6) (99.0) (397.0) (411.7) (48.8) 75.6 15.4 41.4
(399.1) (451.7) (29.6) (134.5) (561.4) (741.0) (623.4) (660.4) (993.6) (637.1)

950.0 843.4 883.3 907.5 671.6 869.2 729.6 610.0 568.9 522.0

Excess Provision Corporate Tax - - - - 10.4 - - - - -

written back (1993-94)

eee
Net Profit (Loss) Before Tax 550.9 391.7. 853.7. 773.0 120.7 128.2 106.2 (50.4) (424.7) (115.1)

Interest Tax

Corporate Tax

- 5.0 5.0 7.7 3.9 2.4 - - - --
167.1 31.1 141.3 66.7 10.4 27.2 - ~ - _

Net Profit/(Loss) after Tax 383.8 355.6 707.4 698.6 106.4 98.6 106.2 (50.4) (424.7) (115.1)
Transfer to Insurance Fund 20.0 20.0 20.0 20.0 80.0 - - - - -
Net Profit/(Loss) after Appropriation363.8 335.6 687.4 678.6 26.4 98.6 106.2 (S0.4) (424.7) (115.1)

*

Subject to final audit

** Provisional Figures

HIGHLIGHTS OF 1993/99

Total Revenue Net (M. NRs)

Net Sale of Electricity (M. NRs)
Income from Other Services (M. NRs)
Operating Expenses,

Including Depreciation (M. NRs)
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 Consumer's Consumption (KWh) +
Average Price Of Electricity (NRs/KWh) +

Peak Load Interconnected System (MW)

Total Available Electric Energy (GWh)

Hydro Generation (GWh)

Purchased Energy (GWh) India
BPC

Exported Energy (GWh)

Thermal Generation (GWh)

Net System Losses (Percentage)

Note:
* Subject to final audit
** — Provisional figures
+ Internal
++ On revalued assets

5770.0
5420.6
349.4

4806.9
1650.0
550.9
1312.2
25982.6
30,988.0

620,000
1112.886
1052.886

1698.2
5.07

326.4
1475.0
1046.51

232.39।

77.28
60.00
118.82
22.95

5432.7
5082.5
350.2

4578.5
1544.9
391.7
1317.2
20,848.9
30,063.6

574,849
1051.429
984.019
1711.78
9.05

317.0
1373.17
971.96
210.29
83.47
67.41
107.45
23.40

A YEAR

YVIA ५

Increase/Decrease

Amount

45,151
61.457
68.867
(-) 13.58
0.02

Percent

3.0
7.42
7.67

10.51
(7.42
(-)10.99
10.58
(1,92

M3lAI¥ NI

Mo
=
>
tu
[~ 4
Z

TARIFF RATES

(effective from May 14, 1996)

A.1. Minimum Monthly Charge: 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

छ.२ Energy charge:
Upto 20 units
21-250 units
Over 251 units

CATEGORY B : TEMPLES
Energy charge
CATEGORY C: INDUSTRIAL

Rs. 3.99 per unit
Rs. 5.00 per unit
Rs. 7.75 per unit

Rs. 3.60 per unit

SUB-CATEGORY Demand Charge
(Rs/kVA)
८.1 Low voltage (400/230 volt)
Rural and cottage 20.00
Small Industry 40.00
८2 Medium voltage (11 & 33kV) 84.00
८.३ High voltage (66 kV and above) 76.00
CATEGORY D : COMMERCIAL
D.1 (०४ voltage (400/230 volt) 100.00
0.2 Medium voltage (11 & 33 kV) 96.00
CATEGORY ६: NON-COMMERCIAL
E.1 Low voltage (400/230 volt) 68.00
E.2 Medium voltage (11 & 33 kV) 76.00
CATEGORY F : IRRIGATION **
F.1 Low voltage (400/230 volt)
Upto 10 kVA -
Above 10 kVA -
7.2 Medium voltage (11 & 33 kV) 20.00
CATEGORY G : WATER SUPPLY
०.1] (0४ voltage (400/230 volt) 60.00
०.२ Medium voltage (11 & 33 kV) 64.00
CATEGORY H : TRANSPORTATION
H.1 Medium voltage (11 & 33 kV) 76.00
CATEGORY I: STREET LIGHTS
11 Street lights with meter -
1.2 Without meter 1300.00

CATEGORY J : TEMPORARY SUPPLY
jl With meter -

Energy rates (Rs/unit)
Peak time* Off-Peak Average

- - 4.00
4.90

4.90 3.96 4.40
3.90 3.15 3.50

- 5.80
6.35 5.13 5.70

- 5.80
6.35 5.13 5.70

- - 2.50
- - 2.50
2.79 2.25 2.50

- - 3.00
3.29 2.65 2.95

3.45 2.79 3.10

- - 3.60

- - 9.3

Note: If demand meter reads kilowatts (kW) then kVA =kW/0.8
* TOD Tariff is effective from November 17, 1998
** Tariff for irrigation is effective from July 17, 1998
Peak time : 1800-2200 hrs; Off peak : 2200-0400 hrs; Normal : 0400-1800 hrs.

AVAILABILITY FY1999

1 =D 16%

70.95%

SALES FY1999

5.80% 59-23%

6.9 — %
37.31%

39.28% 5.39%

@ Domestic छे Export 0 industrial
0 Commercial छो Non-Commercial & Others

@ Depreciation
B Fuel

Pe hector bones
[1 Commercial

UTILIZATION FY1999

1.60% 4.07%

> 1.38%। @ internal पा।। Self Consumrptior Self Consumption O Export

REVENUE FY1999

37.80%

O industrial
छि Non-Commercial Others

15.03%

छे Pow er Purchase
D Operation & Administration B& Interest

@ Royalty

A YEAR

TOTAL ENERGY AVAILABLE
AND PEAK DEMAND

1991 1992 1993 1994 1995 1996 1997 1998 1999

FISCAL YEAR
GW Total Energy a Thermal Hydro
Ge BPC import Peak Demand
Particulars 1991 1992 1993 1994 1995 1996 1997 1998* 1999**
Peak Demand Peak Demand 0407 204,000 216.000 21404. 2310 2440. 0750 30011 31700 ape a 204.000 216.000 214.04 231.0 244.0 275.0 300.11 31 $$ 2810 2440 275.0 300.11 317.00 326.4 326.4
Available Energy (GWh) 906.283 981.105 963.314 1030.89 1,117.46 1,261.96 1,368.58 1,373.17 1 RR NO? 903.314 1030.89 1,117.46 1,261.96 1,368.58 1,373.17 1475.00
1. Hydro 870.203 869.980 804.050 835.48 848.74 1,072.75 1,096.64 १71 OE BF FBO 804.050 835.48 848.74 1,072.75 1,096.64 971.96 1046.51 1046.51
2. Diesel 0.800 31.540 47.290 62.20 80.92 A AO 47.290 2.20 8092 36:64 39.73 107.45 118.82 36.64 39.73, 107.45 118.82
3. Purchase from 35.280 = 79.585 111.974 133.21 187.80 153.57 232.21 293.76 309.67
(a) India 33.700 .54.938 82.223 102.77 113.84 72.96 153.98 210.29 232.39
(b) Butwal Power Co. 1.580 24.647 29.7511 30.44 73.96 80.61 78.23 83.47 77.28
Note :- Peak demand is for all areas covered by integrated system including supply to India.

* Subject to final audit
** Provisional figures

=
2
>
iy
os
Z

५४१,

GROWTH OF CONSUMERS

700000 +"

600000--

rm 500000 -"

ro)

3 400000 -

Cc

[टो

© 300000-

बिन

6

°

Z 200000 ;

100000।
बा a मा ee ae
1991 1992 1993 1994 1995 1996 1997 1998 1999
FISCAL YEAR
@ Total @ Domestic D Others

Particulars 1991 1992 1993 1994 1995 1996 1997 1998" 1999**
Domestic 3,04,480 3,37,715 3,71,975 4,04,452 4,36,631 4,71,599 503,330 548,110 590,920
Non-Commercial 5,633 6,065 6,340 6,321 6,369 6,548 6338 7,192 7,700
Commercial 1,827 1,378 1,536 1,848 2,008 2,162 2441 2,637 3,005
Industrial 8,382 9,113 9,595 10,737 11,480 12,329 12928 14,062 15,210
Water Supply 119 124 131 155 166 1727 190 205 २220। 119 124 131 155 166 177 190 205 220
dnigation 420 512 463 590 630 712 713 276 800
Streetlight 032 SAF 367 375 420 456 482 683 77 Light 532 547 367 375 420 456 482 683 772
Temporary Supply 136 191 183 188 189 187 155 175 200
'Transport 9 8 8 15 8 8 8 12 8
Temple 247 335 398 525 698 782 867 992 1160
Total (Internal Sales) 3,21,785 3,55,988 3,90,996 4,25,206 4,58,599 4,94,960 527,452 574,844 619,995
Bulk Supply (India) 5 5 4 5 5 5 5 5 5
Grand Total 3,21,790 3,55,953 3,91,000 4,25,211 4,58,604 4,94,965 5,27,457 574,849 620,000

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

ELECTRICITY SALES

=
Ss
oO
£
>
>
@
[ 4
Wi
1991 1992 1993 1994 1995 1996 1997 1998 1999
FISCAL YEAR
O Total Domestic O Industrial 0 Others
(in GWh)
Category 1991 1992 1993 1994 1995 1996 1997 1998* 1999**
Domestic 261.399 275.248 259.833 275.050 301.611 328.730 355.118 378.778 415.245
Non-Commercial 46.230 46.684 47.607 47.148 53.225 53.464 57.991 60.227 64.494
DS eee मि
Commercial 36.640 45.200 47.607 48.988 58.574 62.916 67.606 71.471 77.788
Industrial 206.881 246.374 273.753 303.991 328.316 358.672 376.742 413.738 437.148
Water Supply &
Irrigation 27.682 27.705 24.113 19.401 27.636 25.091 27.978 29.045 23.443
Street Light 7.308 7.802 8.068 8.857 12.173 16.720 20.929 26.585 29.725
Temporary Supply 0.428 1.003 0.924 0.561 1.225 1.154 0.844 0.711 0.700
Transport 1.825 1.506 1.395 1.338 1.455 1.432 1.483 1.663 2.242
Temple 0.369 0.419 0.460 0.658 0.892 1.503 1.691 1.801 2.101
Total (InternalSales) 588.760 651.941 663.248 705.992 785.108 849.682 910.382 984.019 1052.886
Bulk Supply 80.640 85.411 46.137 50.514 39.479 87.014 100.218 67.410 60.000
Grand Total 669.400 737.352 709.385 756.506 824.587 936.696 1010.600 1051.429 1112.886

Note :- * Subject to final audit नज Provisional figures

क.
~
>
w
x
2

REVENUE

(Million Rs)

1991 1992 1993 1994 1995 1996 1997 1998 1999

FISCAL YEAR

0108) MWDomestic O'ndustrial O Others

(in million Rs)
Category 1991 1992 1993 1994 1995 1996 1997 1998* 1999**
Domestic 311.686 490.642 621.398 916.332 1,195.389 1,379.456 1769.839 1895.845 2080.375
Non-Commercial 91.708 140.909 181.076 219.807 284.478 307.246 386.359 405.142 434.043
Commercial 75.634 136.319 186.005 235.781 310.911 349.628 446.964 477.044 518.849
Industrial 307.005 473.082 669.244 936.901 1,260.125 1,406.731 1801.576 1973.372 2085.198
Water Supply &
Irrigation 27.530 31.406 36.194 39.526 70.091 68.400 95.701 100.277 80.880
Street Light 8.767 15.629 16.949 27.625 41.835 53.042 80.111 101.977 114.145
Temporary Supply 1.483. उ.980 4.680. 3.699 6886 11840 हावा 7.170 6.514
Transport 2.138 2.429 2.118 2.985 3.993 4.198 6.090 6.511 8.790
Temple 0.182 0.441 0.693 1.480 3.320 4.556 6.208 © 6.711 7.838

Total (Internal Sales) 826.135 1,294.837 1,718.557 2,384.136 3,177.028 3,585.097 4600.839 4974.049 5336.632
a ea पन पा र a ee a
Bulk Supply (India) 135.064 145.783 75.462 91.364 97.566 206.720 249.292 199.915 180.000
aoe aes _ ae Se Os eee a wo as ee Oe गा गाना नाला लाला

Gross Revenue 961.199 1,440.620 1,794.019 2,475.500 3,274.594 3,791.817 4850.1 31 5173.964 5516.632
SS

Note :- * Subject to final audit
** Provisional figures
The Revenue fogures do not include rebate and penalty

छै (र

LOAD FORECAST
for Integrated Nepal Power System (INPS)

Year Energy (GWH) Growth (%) Peak (MW) Growth (%)
1475 - 326.4 -
1617 369
1788 408
1967 449
2110 482
2300 525
2502
2702
2922
3150
3377
3637
3914
4205
4514
4840
5185
5550
5937

Average Growth

* Historical

ENERGY (in GW

LOAD FORECAST

7000 1600

1400
6000

1200
5000

1000
4000
800

3000

PEAK LOAD (MW

600

400

1000
200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2008 2010 2011 2012 2013 2014 2015 2016 2017

FISCAL YEAR। ME Energy (GWH) —@— Peak (MW)।

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