Nepal Electricity
Authority

FY 1999/00
A YEAR IN REVIEW
i

Bhadra 2057(August 2000)
Durbar Marg, Kathmandu

NEPAL ELECTRICITY AUTHORITY
Head Office: Durbar Marg, Kathmandu, Nepal
Phone. +977-1-22772%
Fan: 4.977-1-227035

A YEAR

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N REVIEW

CONTENTS

The Chairman's Message

Photographs : Board of Directors

Organizational Chart

Photographs : Chief Executives

Photographs : Directors

8 Managing Director's Report

13 = Introduction

14 = Sectoral Review

20 Project Highlights
28 = Project Studies

_ पनन लाला

30 8०51071(02 Sheet
32 = Profit & Loss Statement
ee

33 = Highlights : FY 1999/00
34 Tariff

35 = Statistics, Schematics, Maps

Cover Photo Construction of Head Works end Desanding
Basin at Kaligandak: 'A' HEP

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COMPLIMENTARY COPY

MESSAGE

From The Chairman

Allow me first to congratulate Nepal
Electricity Authority for publishing its Annual
Review for the fiscal year 1999/2000. For a
large organisation like NEA with diverse
activities and issues to be handled,। think it is
very necessary that a review of the past year's
activities be prepared and published for review
and references.। am particularly pleased to be able to send
my felicitations in a year that marks the entry
into the new millennium. The new millennium
has already commenced to bring us good
tidings. For instance, we have witnessed
generation additions from hydropower projects
initiated by Nepal Electricity Authority and by
Promoters from the private sector. More
hydropower projects are in stages of
completion to come on-line in the years to
come. Such achievements promise to alleviate
power shortage in country, foster industrial
growth and aid Nepal Electricity Authority to
serve its customers better.

Meanwhile, we, in Nepal, still live in an
ironic situation where nature had endowed us
with immense hydropower resources but our
capacity to use the resources has been minimal
within the country and as export. The
dimensions of developing the power sector,
therefore, exist both within the country and in
the regional scenario. As a key player in the
present power sector, Nepal Electricity
Authority commands an immense
responsibility in living up to the country's
economic plans and the expectations of the
people. In an age when more and more of our
daily works depend on the use of electrical
appliances, gadgets, instruments and the
electronic media, it is essential that electricity is
made available to all in the country. It is only
when such facilities are available to all our
people that we can anticipate an economic
growth that is commensurate with the people's
expectations.

Energy also needs to be seen as resource
that needs to be shared not within political
boundaries but by the entire world-somewhat
like the air above us. When thinking of energy

we must broaden our horizons and think
beyond artificial political boundaries. We must
conceive our own people living in harmony
with the whole world with clean forms of
energy that nature has endowed the universe
with. For a sustainable environment we must
aim towards widespread energy trade
throughout the region favouring use of cleaner
fuels such as hydropower.

On the regional scene, our approach
should be to bring together energy sector
players from both the public and private
sectors across the region to discuss and resolve
issues that impede cooperation and investment
in energy development. A programme needs to
be designed to catalyse a long-term process of
rationalising energy supply and distribution
across the region, including the development
of the cross-border infrastructure and market
mechanisms that will be required for eventual
trade in electricity. A regional interconnected
power grid needs to be developed with rules
governing pricing, access, quality and bringing
on new capacity. Programmes need to be
initiated to help countries develop the
appropriate policy, regulatory and investment
environments that will also encourage private
sector investment.। also consider Nepal Electricity Authority as
the organisation where the elite of expertise in
electrical and hydropower are employed and
have gained the experience in local conditions
that none can excel. It is therefore necessary
that this expertise be fostered for the
furtherance of development in the power sector
and providing to the people a reliable power
supply which even a common man can afford
for this essential functions of life. Along with its
review of the past year। wish Nepal Electricity
Authority all the best over the years to come.

Ra

Ram Bahadur Gurung

Minister of State for Water Resources and
Chairman, Nepal Electricity Authority

BOARD OF DIRECTORS

Chairman
Mr. Ram Bahadur Gurung
Minister of State tor
Water Resources.

Mr. B.N. Sapkota Dr. B. P. Koirala
Secretary

Secretary
Ministry oF Water Resources

Ministry ot Finance

Mr. P. P. Dahal Mr. रि. K. Shrestha
Chaitman, RBB President FNCCI

Member Secretary
Mr. Bishnu B. Malla
Managing Director, NEA

Dr. B. G. Vaidya

Mr. M.R. ७

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Project Preparation Construction — 11 TIL Design & Hydro
and Studies - 11 Construction ~11 Generation। - 11

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Design / Civil - 11 Environment -10 Grid Operation - 11

Design / Electro- Soil Rock & Concrete
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System Control - 10 Generation II - 10

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Hydro - 11 Dept. - 11 i

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Biratnagar Hetauda Kathmandu Pokhara Procurement -

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Evaluation - 10
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CHIEF EXECUTIVES

Mr. N.T. Bhutia
Chiet
Generation & Transmission

Mr. D. B. Thapa
Chief
Development

Dr. 1५. Kapali
Acung Project Manager
Kaligandaki 'A' HEP

Mr. P.M.S. Pradhan
Chief

Planning & Administration

Mr. D. रि. Bhattarai
Project' Manager
Middle Marsyangdi
HEP

Officiating Chief
Distribution & Consumer
Services

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DIRECTORS & DEPARTMENT CHIEFS

Mr G. 8. Shrestha Mr O. M. Swar Mr J. N. Nayak Mr दि. रि. Shrestha

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Mr A. P. Rijal Mr S. P. Upadhyay Mr रि. P. Shah Mr S. B. Shrestha

Mr छ. K. Shrestha

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Mr K.B. Shrestha Mr J.R. Shrestha Mr M. B. Kayastha Mr S. रि. J. Rana Mr K.P. Upadhyay

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Mr K.P. Koirala Mr B. टि. Regmi Mr D. P. Upadhyay Mr D.N. Singh Dr J. Jha

Mr G. R. Shrestha

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MANAGING

DIRECTOR'S REPORT। am pleased to report on the activities of
Nepal Electricity Authority (NEA) over the past
fiscal year (1999/2000) - the first year into the
new millennium. On a personal note, as a staff
member of NEA,। have observed activities of
NEA and its predecessors over three decades
and। am honored to be reporting the activities
of NEA this year as the Managing Director of
the organization.। feel equally happy that this
report will feature in our Annual Review that is
being published on the occasion of the
fifteenth anniversary of the founding of NEA.

In summary, our efforts during the past year
were aimed to establish NEA on a firm
commercial platform capable of undertaking
the challenges of development, and to provide
to our customers an electrical supply of
adequate quality affordable to the average
consumer. As was reported in earlier reports
by my predecessors, NEA has now divested
much of its monopolistic legacy. Emergence of
the private sector enterprise has made it
imperative that NEA improve its operational
efficiency for sustenance in the power sector.

NEA and the Power Sector

In the global energy scene, the growing
relation between climate change and
detrimental effects of fossil fuels has created
chances that renewables will gain acceptance
as the future form of clean energy. For NEA,
this may be a silver lin ing to its firm trust on
hydropower. With our generation expansion
plans now firmly planted, and many more
licensed to the private sector, itis probable that
investment in hydropower will pay off in the

long run as users realise the premium qualities
associated.

In the international field, reforms in the
power sector were structured to create players
in the sector who will operate in an
environment of increasing deregulation. In the
industrialised world, the trends to deregulate
the power sector in the wake of the creation of
constructive market forces continued
positively. In transitioning countries, reform
took the form of unbundling stagnant national
utilities and introduction of competition and
choice through private sector participation
supported by the establishment of an
independent regulatory mechanism. Though
initiated and promoted in a large number of
countries, such forms of deregulation of the
power industry and the establishment of
regulatory bodies continued in the South Asian
countries with mixed results which were largely
dependant on the efficacy of a well established
regulator.

On the home scene, NEA still maintains its
role as the key player in the nation's power
sector - a sector that has been identified as a
determining economic force in the country's
development. Reforms to strengthen this sector
were a subject of intense deliberation last year.
NEA commanded major focus in a study
entitled Power Sector Development Strategy
undertaken by the World Bank. Shades of
reform are also evident in the draft forms of the
Government's Hydropower Policy and the
Ninth Five-Year Plan. Further
recommendations on reforms are expected
from a World Bank funded study on Water
resources Strategy Formulation Phase I!
undertaken with Nepali expertise. USAID is

also a sponsor of studies on private sector
participation. With private sector participation
already active as Independent Power
Producers (IPPs) in the generation field, the
thrust of the studies concern themselves with
institutional reforms that would allow
sustainable operations to the private sector
contenders in well-defined conditians.

During the past year, South Asia received
considerable attention in terms of regional
trade and exchange of energy. United States
Agency for International Development (USAID),
Trade and Development Agency (TDA) and
United States Energy Association (USEA) were
prominent in their interest in South Asia Energy
and have initiated a well funded program
called South Asia Regional Energy (SARE)
Initiative to promote regional energy balance
by mobilizing latent energy resources in
individual countries. Apart from the
mobilization of its huge hydropower resources,
Nepal could also gain from the concept of the
Regional Grid that is one of the concepts
advanced by the SARE Initiative The American
efforts were highlighted through two high-level
conferences held in Kathmandu in December
1999 and March 2000.

The Year's Major Events

Recapitulating the major events of the past
year, during the initial months, Minister of
Water Resources, Mr. Govind Raj Joshi, led
NEA as the Chairman of the Board. After the
subsequent political change in the country, the
position was delegated to the Minister of Water
Resources, Mr. Khum Bahadur Khadka. State
Minister for Water Resources, Mr. Ram
Bahadur Gurung, also showed interest in
NEA's activities by attending its Board
meetings. Following shortly after the end of the
last fiscal year, and the political adjustments
that ensued, the functions the Chairman has
been assumed by Minister of State for Water
Resources Mr. Ram Bahadur Gurung.

In terms of management reforms within
NEA, attempts were made to shorten decision-
making time by eliminating two upper levels of
the hierarchy and replacing these with four
Deputy level posts responsible to the
Managing Director in the areas of Planning and

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Administration, Development, Generation and
Transmission and Distribution and Consumer
Services.

We made every effort to bring about
improvement in NEA consumer services by
resorting to load shedding as the last contingent
measure. Despite a full-stocked water at
Kulekhani's Indrasarawar reservoir and the
commencement of 70M kWh free-power delivery
from the Tanakpur powerhouse in India, NEA's
system still faced generation shortages and we
were obliged to continue the unpopular measure
— hopefully for the last winter.

Towards the end of the past fiscal year we
saw a long-awaited addition to NEA generation
with the commissioning of the 6.2 MW lam
Hydropower Project - this being the first NEA
generation project to be brought on-line after
the Marsyangdi Hydropower Project that was
commissioned in 1989. We also saw a
milestone event in private sector efforts. On July
11, 2000, Promoters, Himal Power Ltd.,
brought into commercial operations the 60MW
Khimti। hydropower project and commenced
selling all its generation to NEA in accordance
with a Power Purchase Agreement (PPA),
which was signed in January 1996.

On a closer regional issue, the fifth meeting
of the India-Nepal Power Exchange Committee
was held in New Delhi in November 1999 and
helped to further strengthen the relation
existing between power sector organizations in
Nepal and their counterparts in India. A very
positive outcome of the meeting was the
endorsement by the Committee to put up to
their respective government the proposal to
enhance the quantum of exchange from 50
MW to 150 MW. In subsequent high level
contacts between the two countries it is
probable that the study of DC links to facilitate
the synchronized operation of grids will be
forthcoming.

Another area that is expected to contribute
to NEA's institutional building is the Partnership
program between NEA and two utilities of the
USA- Tacoma Power in Washington and
Wisconsin Power from Wisconsin states.
Sponsored by the USEA and USAID, the
Partnership Program included a visit to the US
by NEA officers in December 1999 followed by
return visit in May/June 2000 of

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representatives from USEA, Tacoma Power and
Wisconsin Electric. Areas of cooperation have
also been worked out. It is expected that the
partnership program will be formalized through
a signing ceremony in the near future.

After a space of three years, the Electricity
Tariff Fixation Commission awarded NEA with
a tariff rise. The tariff rise averaged 26 percent
for the industrial consumers and 27 percent for
the other category of consumers. The tariff
increase was aimed to secure financial
indicators such as the rates of return and the
Capability to self-finance a fixed portion of its
investment Following prediction that further
adjustments would also be required, NEA
made a study to assess the level of capital
available for lending in the domestic market
and the merits of resorting such loans to bolster
NEA financial performance and dampen effects
of tariff escalation. Often identified as one of the
highest in the region, tariff escalation continued
to face considerable public resentment and
was a subject of debate on relief from high
market prices in a specially convened session
of the House of Representatives.

After negotiations in Manila in November
and towards the end of the fiscal year the Loan
Agreement between HMG/N and ADB and a
Project Agreement between NEA and ADB
were signed for a US$ 50M loan financing for
the extension of transmission, distribution and
rural electrification and other institutional
development works.

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 a training
course on Infrastructure Regulation and Reform
organized by the World Bank/USAID/TERI in
Agra in April 2000 followed by another
international conference held in Bangalore to
deliberate on Power Sector Reforms and
Privatization issues, in May 2000. Our staff
members also participated in a number of
training courses in hydropower like the one in
Sweden. A delegation from the Norwegian
university, NTNU visited NEA to streamline
procedures for higher studies in the Norwegian
University.

Operational Performance

The past year saw the introduction of NEA
distribution in all the 75 districts of Nepal. Two
more district headquarters commenced to
benefit from an NEA supply viz. in Kalikot
through a small hydropower project and Diktel
in Khotang district through a 33kV grid
extension from Gaighat, Udaipur. Khotang will
be remembered as the last district to be
electrified by NEA.

Although the population benefited by an
electric supply hovered around a figure of 15
percent, NEA's sub-transmission and
distribution infrastructure could cover double
the figure in NEA had the financial amentities,
the generation capacity and demand from the
consumers.

The past year also saw welcome addition to
the generation capacity in the NEA system both
from the NEA sources as well a from private
investment. The entries being the 6.2 MW Ilam
Hydropower Project and the 60MW Khimti
Hydropower Project bringing the total installed
Capacity 389.574 MW of which approximately
85.41 percent was hydro-based and essentially
of the run-of-river configuration. In terms of
energy, hydropower projects within Nepal
provided 72.48 percent, thermal projects, 3.92
percent, purchase from domestic private power
companies, 9.95 percent, and imports from
India, 13.65 percent of the total availability.

Over the financial year, the system peak of
the interconnected system was recorded on
January 20, 2000 at the level of 351.86 MW
indicating a 7.80 percent increase over the last
winter's figure.

During the past financial year, the electrical
energy available for use within the NEA system
totalled 1701.45 GWh which was an increase
of 226.45 GWh (15.35 percent) over the
previous year's figure of 1475.0 GWh. This
comprised of 1233.22 GWh obtained from
NEA's hydro generation and 66.73 GWh from
NEA's thermal generation. A total of 401.50
GWh was purchased from other utilities;
comprising of 232.20 GWh imported from
India through Power Exchange agreements and
169.30 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 1269.274 GWh - an
increase of about 155.698 GWh (13.98
percent) over last year's sales figure. Internal
sales within Nepal increased to 1174.274
GWh and accounted for 92.52 percent of the
total sales and registered an increase of
124.856 GWh (11.9 percent) over the last
year's figures. Exports to India increased to
95.00 GWh.

Over the past financial year, the number of
consumers grew by an estimated 47,637 (or
7.65 percent) over the previous year's figure to
reach a total of 6,700,000 The domestic
category accounted for 95.41 percent of the
total consumer numbers, 36.80percent of the
sales and contributed to 37.90 percent of the
revenue. The industrial category formed only
2.39 percent of the total consumers, but
accounted for 40.05 percent of sales and
contributed to 38.78 percent of the revenue.
Non-commercial category constituted 1.19
percent of the consumers, accounted for 5.01
percent of the sales and 6.87 percent of the
revenue. Likewise, the commercial category
constituted 0.48 percent of the total
consumers, accounted for 6.45 percent of the
sales and provided 8.77 percent of the
revenue.

The financial picture remained encouraging
for another year. NEA's total revenue net
totalled NRs. 7204.5 million, an increase of
24.60 percent over the figure for the previous
year. NEA's net fixed assets increased to reach
an estimated NRs. 33.9811 Billion. To improve
our financial position, we made concerted
efforts to improve receivables and even
resorted to the unpopular extreme ot
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
operation and maintenance. Such efforts on
financial control will continue into the coming
year.

MiIAIY NI

Development Efforts

Keeping in spirit with the ninth five year
development plan adopted by His Majesty's
Government we continued another year of
development activities to obtain definite targets
and to attain desirable performance standards
and meet demand patterns in the country.
Resources for the projects were met from NEA's
own resources and those from HMC in the
form of equity participation. A significant
portion of the financing however still came as
loans from multi lateral lending agencies routed
through Subsidiary Loan Agreements with
HMG. Some projects were financed through
grant contributions to the Government from
friendly countries.

As। have mentioned earlier, as a welcome
result of development efforts, we witnessed the
long-awaited increase in hydropower
generation that would input into the NEA grid.
The addition came from both the public and
private sector efforts- the NEA implemented
Puwa Khola adding 6.2 MW and the HPL
promoted Khimti। putting in 60 MW. Very
soon we will also see the 14MW Modi come
on-line and then the Kali Gandaki in 2001. The
70 MW Middle Marsyangdi hydropower
project got off to a good start and should be
generating electricity to meet the added
demand in the system by the year 2004. We
also have the Kulekhani।।। and the 300 MW
Upper Karnali hydro power projects licensed in
our name and we spent efforts to promote the
projects for financing from interested donors.
We even showcased the Upper Karnali
hydropower project in the Energy South Asia
Conference in Kathmandu.

The small hydro projects at Dolpa and
Kalikot which we had undertaken finally
commenced generation and our subsidiary
company, the Chilime Hydropower Co.,
managed a financial close and is now set to
completion by 2002. Activities of IPPs were
evident in their attempts to promote several
small hydropower projects. We signed PPAs
for the purchase of generation from the Daram
Khola (SMW), Piluwa Khola (3MW) and the
Chaku Khola (980kW) small hydropower
projects.

In parallel with NEA's own investment in

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the generation field and its commitment to
purchase power from a number of IPPs in the
future, an interesting development was the
MOWR decision to grant generation licenses to
11 more generation project for promotion by
the private sector. Although the possibility of
NEA buying power from these projects
remained remote at the present rate of growth,
the prospects of offering NEA's transmission
lines for wheeling the IPP power to markets
which the IPPs would themselves generate
became a possibility.

One notable achievement in the field of
transmission was the timely completion of the
Khimti-Lamosangu-Bhaktapur-Balaju 132 kV
transmission line that would tie-in two IPP
projects (Khimti and Upper Bhote Koshi
together totaling nearly 100 MW) into the NEA
grid. The timely completion of the transmission
line was reflected in the Power Purchase
Agreements as a likely default and involved
high penalties in case of non-completion.
However, NEA completed the transmission
lines much ahead of the Initial Synchronization
Dates stipulated in the PPAs. The stringing of
second circuits on the Kusaha-Dhalkebar
sector was also completed thereby
strengthening the NEA for more flexible power
flows.

On the distribution and electrification areas,
the completion of the Gaighat-Diktel 33 kV
transmission line brought the much-awaited
power to the district headquarters of Khotang.
The transmission line was inaugurated by the
Rt. Hon. Prime Minister Girija Prasad Koirala in
June 2000.

Bhadra 1, 2057

Acknowledgements

For the progress we have been able to
attain over the past year। wish to thank His
Majesty's Government for their co-operation
and continued interest and investment in our
enterprise. Foremost। also wish to express my
sincerest thanks to the dynamic leadership we
have obtained from our Chairman and
Members of the NEA Board of Directors.। also
thank the Donors and Lenders who have
provided us the finances, assistance and advice
in our activities.

In conclusion, arising also from my
affiliation with NEA over thirty year,। cannot
restrain from expressing my gratitude for the
continued support। have received from all
levels of staff here.। have always enjoyed
working with staff members in NEA at all levels
and categories.। believe the staff members in
NEA have the latent talent and the strength to
take NEA to enhanced levels of development.

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. We feel confident that the
day is not far when we will be able to bring to
all our customers an electrical supply that is
reliable and adequate for their needs.

Bbireal te

(Bishnu Bam Malla)
Managing Director

छ YEAR

REVIEW

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YVaaAyV

INTRODUCTION

Along with the rest of the universe, NEA
entered the new millennium the past year. Prior
to the entry, many a pledge had been made
and an equal number of dedications. The
anticipation was for the revelation of what the
new millennium would really bring about.

In the face of conflicting reviews of NEA's
performance, our commitment was to
consolidate and serve the consumers better.
Like the novelty of the new millennium, many
new issues entered into NEA's horizons of
operations. To meet the challenges ahead, it
became certain that NEA would have to sit
down dedicated and do its homework for some
years to come.

Over the longer horizon, it became
evident that the government would adopt
policies to reform the power sector and in the
course of reform, NEA would also face some
changes. Unbundling of the generation,
transmission distribution and dispatch control
were needed to allow the private sector
investors to function competitively in Nepal's
power sector. Indeed, NEA did plan to divest
some of its interest from areas such as small
hydro and distribution - areas of operation,
which others could better. Also, in such a
planned situation where purchase of
generation could take the form of short-term
contracts, the justification of long-term power
purchase agreements based on BOOT
approach assumed shades of an indefinite
future.

Of shorter term was the issue that
revolved around the growing generation plan
and the additional energy that this would soon
plant into the NEA's system. An immediate
after-effect following essentially from the run-of-
river nature of the hydro projects was the

reserve that would gather during the wet
season. With the generation planning
incorporating hydropower projects which had
been optimised for their capacity, it became
obvious that this form of secondary energy
should be priced for the opportunity that this
provides. Whereas NEA had operated for a
long period in conditions of supply deficiency,
the doors now opened towards an era when
NEA would need to adopt rigorous strategies to
market its products and rethink its pricing
structure.

An equally immediate consequence was
the need to distribute this available energy to
larger portion of the populace. The political
insistence to cover larger portions of the
country was overwhelming and reflected the
people's choice of electricity as one of the
coveted facilities in the lesser-developed
districts of the country. The ninth five-year plan
also set definite targets for the population to be
benefited by the end of the plan period. The
immense dimensions in investment that this
required inevitably lead to seeking resources
from lending institutions such as the World
Bank and the Asian Development Bank. These
Lenders have in turn insisted on strengthening
of NEA and its tariff structure as an assurance of
payback guarantee. Covenants attached to the
loan agreements turned into very sensitive
issues in the highest levels of governance and
led to vociferous exchanges refuting the NEA
tariff as one of the highest in the region.

With these issues in the horizons, this
Annual Review of the fiscal year 1999/2000
attempts to capture the spirit of the efforts and
activities that were made and would need to
dovetail into the broader prospects of the
future.

1५ REVIEW

YVIAV

SECTORAL REVIEW

NEA BOARD AND MANAGEMENT MATTERS

In the beginning of the fiscal year 1999/00
then Minister of Water Resources Mr. Govinda
Raj Joshi was the the Chariman of the Board of
Directors of Nepal Electricity Authority.

After the changes in the cabinet, Mr. Khum
Bahadur Khadka became the Minister of Water
Resources on March 22, 2000 (2056/12/9) and
assumed the position of the Chairman of the
Board of Directors, up to a period of August 8,
2000 (2057/4/24).

With the recent change in the cabinet the
Prime Minister Mr. Girija Prasad Koirala has
also taken the portfolio of Water Resources and
recently Minister of State for Water Resources
Mr. Ram Bahadur Gurung has assumed the
Chairmanship of the Board of Directors.

Mr. B. B. Malla who had long career expe-
rience in NEA and was Chief of Distribution
and Consumer Services was appointed as the
Managing Director of NEA on May 22, 2000.

There were changes in the Board members
too. Dr. Bimal Prasad Koirala, Secretary,
Ministry of Finance replaced Mr. R. B. Bhattarai
as Mr. Bhattarai had completed his term as the
Secretary of Finance. Mr. Mukunda Raj Gautam
was also inducted into the NEA Board of
Directors.

GENERATION

1701.45 GWh of energy (15.35% increase) in
its power system and system recorded peak
load of 351.86 MW (7.80% increase). In the
fiscal year 1998/99, the available energy and
peak load are 1475.0 GWh and 326.4 MW
respectively. Out of the total available energy in
NEA system hydropower contributed 1233.22
GWh (72.48%), thermal energy 66.73 GWh
(3.92%), import from India 232.22 GWh
(13.65%), and purchase from Nepal was 169.3
GWh (9.95%).

The operation and maintenance work
related with the major hydro and thermal
power stations are as follows:

Hydro Generation

Marsyangdi Hydro Power Station : The
operation and maintenance of this power
station has been satisfactory. As part of the
scheduled major maintenance works, Unit No.
2 was overhauled between June 10 — July 12,
2000. This period of shutdown is the shortest
so far. In this overhauling works, all the
severely worn out wearing ring of runner, head
cover, etc. were replaced by new ones by the
plant staff themselves. Similarly during this
shutdown, seal of all the butterfly valves which
were leaking were repaired. Repair works on
weir gates No. 3 and 5, were carried out. Repair
of sluice canal including fixing of new CDP was
also done satisfactorily. The generated energy
of the fiscal year1999/00 was 457 GWh. With
this the total energy generation upto July 15,
2000 (Ashad 31, 2057) has clearly reached to
more than 4500 GWh.

Kulekhani - I: The generation of Kulekhani -।
in the fiscal year 1999/00 reached to 249.680
GWh, the highest so far. Regular maintenance
works of 66 kV Breakers of Hetauda feeder No.
1, water flow relay and station transformer and
installation of new protection relays of Hetauda
66 kV feeder line were carried out.

Kulekhani - Ul: The generation of Kulekhani
- Il reached to 122.758 GWh in the fiscal year
1999/00, which is also the highest figure so far.
This is an increase of 17.36% over that of last
year, Regular maintenance works on cooling

water pump, seal ring, control valve
and air compressor were carried out.
Civil maintenance works for protection
of road section near Bhainse which
was washed out by last years rainfall
was partially completed in order to
protect the road from further erosion.
Similarly the protection work in power
house area which was washed out last
year was also carried out. With the
installation of telemetric system by
Kulekhani Disaster Preven-tion Project,
the reservoir water level and spillway
of Kulekhani dam can directly be seen
in Load Dispatch Centre and
Kulekhani -! control room. Rainfall data
from Daman, Tistung and Markhu can
also be seen in Kulekhani-। control,
room. This helps the operator in taking
emergency measures if they are
required due to heavy rainfall.

THERMAL

Due to the good monsoon and
rainfall during the fiscal year 1999/00,
thermal generation had less pressure
to generate extra thermal power except
during the peak-hours. This is why as
compared to that generation of
118.82 GWh in the fiscal year 1998/
99, the thermal generation in the fiscal
year 1999/00 has come down to
66.73 GWh which is about 56.16 "%
of last year and 5.13% of the total NEA
generation.

During the fiscal year 1999/00,
major maintenance plans has been
approved and maintenance works are
in progress to bring all machines in
good operating conditions before
winter so that the thermal plants can
contribute to maximum generation
during the winter when shortage in
generation is expected.

GRID OPERATION & MAINTENANCE

In the fiscal year 1999/00, in
addition to the routine preventive
maintenance works and operation of
the grid substations, the following
major works were carried out:

e A temporary T-connection
between 132 kV Khimti and
Marsvanedi Transmission Line
was carried out as the GIS
switchgear at Balaju substation is

still in progress;

The replacement of damaged 12
kV SF, circuit breakers by
vacuum circuit breakers at
Bardaghat S/S;

Installation of 33 kV switch
board with relays at Damauli S/S;

Installation and testing of more
than 80 energy meters in various
substations including installation
of new meters and testing of
meters at Khimti Power House
and Lamosangu S/S belonging to
independent power producers
(IPP);

More than 200 relay were tested
in the Eastern, Western and
Bagmati regional offices;

Necessary arrangements were
made for isolating the Far-
western and part of Mid-western
regions to consume the 70 GWh
of energy received from
Tanakpur power house in India;

Damaged 66 kV towers of the
Sunkoshi-Bhaktapur
transmission line were replaced;

Improvement in the Earthing
System at New
Chabel S/S and the
improvement of
Power Factor at
Siuchatar S/S were
carried oul;

Spare parts for diesel generators
al Royal Palace and
circuit breakers
were procured;

* TV sets were
installed in all the
thirty-five substations
as an incentive to the
substation operators.

LOAD DISPATCH
CENTRE

With the delivery of
all the five units of
Khimti Power Station,
a new dimen-sion
was added to the
dispatching task.
Notwithstanding the constrains
imposed by the PPA, Load Dispatch
Centre employed the best of its efforts
in the optimum utilisation of its
generating capabilities. The result was
very much visible in the generation of
Sunkoshi and Kulekhani-। power
station. Working in a concerted way,
Sunkoshi power station with a design
capacity of 62.73 GWh could generate
66 GWh in this year beating all its past
records. Similarly, Kulekhani-l। power
station (design capacity - 146 GWh)
broke all its past records by generating
about 250 GWh in this year.

DISTRIBUTION &
CONSUMER SERVICE

Distribution and Consumer
Services (DCS) is responsible for
design and construction of distribution
system, distribution of electricity and
consumer services, operation and
maintenance of distribution system,
meter reading, billing and revenue
collection etc. All the 75 districts of the
kingdom (74 districts NEA, and in
Solukhumbu district joint venture with
private company) now have electricity
supply, however, at present only 57
districts are connected with the central
grid, 2 districts have solar electric
supply and the remaining 16 districts
receive electricity from small hydro
power projects. With only about 15%
of the population having electricity
supply NEA is actively engaged in
providing electricity to the remaining
parts of the kingdom.

DCS is continually making efforts
to maintain good relations with
consumers by providing better and

31:30 NI

IN REVIEW

more efficient consumer services.

In order to reduce system losses,
DCS has carried out activities such as
installing ABC cables, rehabilitation
and sealing of meters, installing elec-
tronic meters in the premises of big
consumers and educating the consu-
mers on efficient energy consumption.

During the past year DCS conduc-
ted a seminar under the chairmanship
of the then Honorable Minister (Minis-
try of Water Resources) regarding the
activities and safety of DCS. Seminars
were also organised in different
regional offices and all the branch
offices actively took part in them.

Identified as the sector with the
potential to be the major profit center
in a commercialised NEA, DCS
maintains its priority to provide more
efficient services by computerising its
billing and revenue accounting
systems and also continues to
implement the concept of profit center
in different branches of DCS to impro-
ve the revenue collection and cut costs
and losses. Financed by ADB as a
component of the Kaligandaki "A"
Hydro Electric Project, the Loss Reduc-
tion Project is under implementation.
The main activity of this project is to
design and implement a program to
reduce non-technical losses of NEA.

Electricity sales, which totaled
1269.274 GWh, was an increase of
about 155.698 GWh (13.98%) over

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last year's sales figure. Internal sales
within Nepal registered an increased to
1174.274 GWh and accounted for
92.52 % of the total sales and register-
ed an increase of 124.856 GWh
(11.9%) over the last year's figure.
Exports for India is 95 GWh which is
higher than last year's export of
64.158 GWh by 30.842 GWh (48.07
% increase). During the year in review
1999/00 the number of consumers
grew by an estimated 47637 over the
previous year 1998/99 figure to reach
a total of 670,000. The domestic cate-
gory accounted for 95.41% of the total
consumers, 36.80% of the total sales
and contributed to 37.90% of the reve-
nue. The industrial category formed
only 2.39% of the total consumers, but
accounted for 40.05% of sales and
contributed to 38.78% of the revenue.
Non-commercial category constituted
1.19% of the consumers, accounted
for 5.01% of the sales and 6.86% of
the revenue. Likewise, the commercial
category constituted 0.48% of the total
consumers, accounted for 6.45% of
the sales and provided 8.77% of the
revenue.

NEA is aware of high loss of elec-

Dead Total
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Nov. 1999 6.98

Survey Date
(Month/Year)

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tricity in its system. It is undertaking
various measures to reduce the techni-
cal and non-technical losses. So far
electricity pilferage is non-cognizable
offence and to make it cognizable
offence NEA has formulated Electricity
Misuse and Leakage Control Act 2057
which has been approved by HMG
and is in process of parliamentary
approval.

DEVELOPMENT:
Project Preparation and Studies

Under project preparation and
studies following programmes were
undertaken in the fiscal year 1999/00.

Project Identification Programme

The Project Preparation and
Studies Department carried out desk
studies of 21 projects, reconnaissance
of 4 projects and preliminary study of
1 project in different development
regions of Nepal. Out of 21 desk study
projects, the following 4 projects :
Likhu-6 (12.5 MW), Likhu- 4A (22
MW), Nyasem (14 MW) and Upper
Chameliya "A" (30 MW) were studied
to the reconnaissance level and 1
project Likhu- 5 (24 MW) was studied
to the preliminary level.

Sediment Monitoring of
Kulekhani Reservoir

The sediment monitoring
programme of Indra Sarowar
(Kulekhani Reservoir) is being carried
out on regular basis since 1996. The
sediment survey work of Kulekhani
was Carried out in the last fiscal year in
November and the survey report was
published in April 2000.

The surface area of the reservoir
has been calculated and the result
obtained from the method was
compared with that from last year and
is tabulated as below:

Total Reduction
in Reservoir

Sediment Deposited
in the last year
Mm') Mm

According to the survey report of
2000 (FY 2056/57) 0.66 Mm? of
sediment was deposited during the
rainy season of 1999, Out of the
original gross reservoir capacity of
85.3 Mm!, 22.66 Mm! (26.56%) has
been filled with sediment so far,

ENVIRONMENT

With a mandate for carrying out
environmental studies, monitoring and
implementation of mitigation measures
related to power generation,
transmission and distribution projects,
NEA- Environment Division (ED)
conducted the following works in the
Fiscal Year 1999/00.

Environmenta! Studies:

* Coordinated the Environment

Impact Assessment (EIA) study of

Middle Marsyangdi
Hydroelectric Project (MMHEP)
carried out by joint venture.
consultants TAEC and NESS.

Coordinated and supervised the
EIA of Kulekhani-lll Hydroelectric
Project conducted by the
consultants NEPECON.

Coordinated and supervised the
work of NEPECON for EIA of
Jagatypur Madi 33 kV sub-
transmission line project in
Chitwan district.

* Coordinated and supervised the
work of the consultants GEOCE
for carrying out the EIA of Upper
Modi-A Hydroelectric Project.

* Coordinated and supervised the
Initial Environmental

Level Service

Officer Level Technical

भि (।111 1411 1[1(211

Assistant Level} Technical

Personnel Status Fiscal Year 1999.

Examination (IEE) work of
Kanchanpur Kailali Rural
Electrification Project conducted
by NEPECON.

* Completed the preparatory
works for carrying out the IEE of
Lalitpur 33 kV sub-transmission
line and sub-station project.
Supervised the environmental
works of Kali Gandaki-A
Hydroelectric Project.

Policy input was provided to the
Ministry of Population and
Environment regarding the changes in
Environment Protection Regulation
1997 and Amendment 1999.

Staffs were deputed to Kali
Gandaki-A Hydroelectric Project and
Soil Rock and Concrete Laboratory for
carrying out environmental monitoring
works and environmental studies.

NEA-ED participated in the enviro-
nmental fair organized by Ministry of
Population and Environment to
celebrate the World Environment Day
2000. Environmental study and
monitoring report of different projects,
video documentation, maps and other
information were displayed. Brochures
of different projects were distributed to
the public.

On the occasion of world
environment day, plantation
programme was conducted in 1.5 ha
(about 3900 plants of different species
including the protected species such
as khair and chanp) area of
Marsyangdi Hydroelectric Project. The
plantation programme was
participated by local VDC officials,
school teachers, representatives of
political parties and staff of NEA-ED.

Approved Position

812 635
361 361

5049 173
Administration 714

Grand Total। 8890।

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IN REVIEW _
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HUMAN RESOURCES

The total approved positions of staff
in NEA during the fiscal year 1999/00
is 9402 and total number of
permanent, temporary and daily wage
staff currently being employed is 9289.
The details of staff situation is as
follows.

NEA has undertaken many
personnel welfare activities to boost
the morale of its staff. These welfare
activities include personal loans,
financial assistance to the needy staffs
and supports to the families of staffs
who died during accidents. Personnels
have been covered under life
insurance and accidental insurance
policies also. In the fiscal year 1999/
00, 1684 staffs received loan facilities
amounting to NRs. 8,99,66,218; four
needy staffs received NRs. 1,00,000
each; three staffs who met accidents
received NRs. 1,50,000 each. Under
life insurance policies premium of NRs.
6,50,00,000 has been paid to National
Insurance Corporation and insurance
claims have been received for NRs.
1,32,65,240.15. In addition, staffs
including their families are entitled for
the reimbursement of medical
expenditure incurred in the nursing
home and government hospital up to
NRs. 52,600 per annum. Staffs of
officer level and non-officer level are
insured against accidents for an
amount of NRs. 2,25,000 and NRs.
1,50,000 respectively.

During the year under review
(1999/00) 14 staffs have resigned, 88
staffs have been retired and 35 staffs
have died as detailed below:

Existing Situation

Total

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PLANNING

The planning activities of NEA
includes updating of data and system
plan of NEA, preparation of corporate
plans and carrying out of monitoring
and evaluation of projects in NEA.

As a part of system planning
activities, System Planning Department
carried oul generation expansion
plans using different scenarios. Also it
has been providing technical
assistance to other departments of
NEA for carrying out system studies
such as load flow study and other
contingency analysis of the power
system.

The Corporate Planning
Department has been busy in dealing
with independent power producers

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(IPPs) and has signed power purchase
agreements (PPAs) for Daramkhola (5
MW), Piluwakhola
(3 MW) and
Chakukhola (0.91
MW) hydropower
projects. It has also
prepared the short
term Corporate
Development Plans
(upto FY 2005/06).
Its other activities
include
compilation of the
Nepal Electricity
Utility Statistics
2000, which is an
enormous task to
collect all relevant power system and
consumer data upto the 11 kV level.
The terms of
reference (TOR) for
preparing GIS
maps for Lalitpur
district has been
completed and the
project is expected
to be uderway
soon.

A partnership
programme with
Tacoma Power and
Wisconsin Electric
sponsored by
United States

bo

Energy Association (USEA) made
further progress with reciprocal
exchange visits and finalisation of
areas of cooperation.

NEA TRAINING CENTRE

NEA considers human resources
as one of the important assets and has
given high priority for their
development. During the fiscal year
under review (1999/00), NEA Training
Centre executed several number of
management, technical and functional
enhancement training programmes
based upon NEA's need. Special
emphasis was given towards
management training for the officer
level employees of NEA. During this
period 36 training programmes were
conducted in 21 different courses for
366 NEA's staffs, out of which 169
were Officers. In addition to its regular
training programmes, the Training

Centre conducted special On-the-Job
training course for the members of
Lamjung Electricity Board also.

NEA AND ITS LEGAL ASPECT

Since 1998 and till the end of the
fiscal year 1999/00, a total of 86 cases
are registered at the Supreme Court,
appellate courts and district courts of
the country. Most of these cases
belong to misuse of electricity,
additional billing, land acquisition,
termination of services, etc. Of the
verdicts from the courts, 17 are in
favour, and 5 against NEA and the rest
are in judicial process in the courts.

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million as debt
service.

The financial
audit for FY 1997/
98 has been
completed and the
audit report for FY
1998/99 has been
submitted to the
Board. The audit
for the year 1998/
99 was undertaken

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

Apart from providing legal advice
to the management, the Legal and
Arbitration Division of NEA is involved
in providing advice on power purcha-
se agreements, contract agreements
with different hydropower companies
and drafting of legal documents.

FINANCE AND ACCOUNTS

NEA''s financial performance
remained encouraging for fiscal year
1999/00. NEA's total revenue
increased by NRs. 1421.8 million
(24.6% increase) to reach a figure of
NRs. 7204.5 million as compared to
NRs. 5782.7 million in the previous
year. NEA's revalued assets increased
to 33981.1 million as compared to
NRs. 30527.3 million in the previous
year 1998/99, Expenditure in
operation and maintenance have
increased by only 4.4% reaching a
figure of NRs. 5364.8 million as
compared to NRs. 5138.5 million in
fiscal year 1998/99. Overall, NEA
registered a net profit before tax of
1427.5 million as compared to NRs.
589.9 million in FY 1998/99,

In FY 1999/00, NEA has invested
NRs. 2621.24 million in capital works
and projects, the funding of which
comprised of NRs. 771.93 million
equity, NRs. 1439.05 million from
borrowing and the rest from NEA's
own resources. NEA also has invested
NRs. 252.26 million in the Chilime
hydroelectric project which is being
developed by a subsidiary company.
By the end of FY 1999/00 NEA's total
borrowing stood at NRs. 31471.1
million and a total of NRs. 23919.5

by auditors M/S
Price Waterhouse,
India, M.R. Sharma
& Co. of Nepal. For the financial audit
of FY 1999/00 auditors M/S Price
Waterhouse, New Delhi and M/K
Sharma & Co., Nepal have been
appointed. Tax assessment for the
fiscal year 1994/95, 1995/96 and
1996/97 are in process.

MANAGEMENT INFORMATION
SYSTEM

With a view to improving efficiency
and achieving cost-effectiveness in
operation and to create culture for
knowledge and sharing them by
allowing the flow of information,
knowledge and best practices across
the boundaries of different business
units, NEA is establishing a compute-
rized network within NEA headquar-
ters and link it with some offices of
NEA outside Kathmandu Valley via
telephone network system. This net-
work system will be used for providing
management information system (MIS)
reports also on regular basis. Towards
this, contracts have been already awar-
ded for supply, delivery installation of
computer hardware and development
of customized application software for
producing MIS reports.

To improve revenue performance
in some of the branches under
distribution and consumer services,
MIS Department has undertaken to
extend Computerized Billing System in
Nepalgunj, Bhairahawa, Birgunj,
Kirtipur, Janakpur and Biratnagar. For
this purpose contract has been
awarded for supply, delivery and
installation of computer hardware and
standard software.

* LICENSE

issued by MOWR March 20,

1995

For Hydropower Plants
greater than 1000 kW

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

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PROJECT HIGHLIGHTS

Kaligandaki-A Hydroelectric Project

Kaligandaki-A is located approximately 180
km west of Kathmandu on the southern edge of
Middle Mountains on the Kaligandaki 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 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 cost of
the project is estimated to be US$ 452 million
which is being funded by HMG, NEA, Asian
Development Bank and Japan Bank for
International Cooperation.

The contract for consulting services for
design and construction supervision works was
awarded to Morrison Knudsen International
Inc. in association with Norconsult
International and IVO International. All the
construction work 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/Alstom Joint Venture; mechanical
works to Mitsui/Toshiba Joint Venture and 132

kV transmission lines and substations to TATA/
Marubeni Joint Ventrue.

Though the project was originally supposed
to be completed by the end of 2000, due to
unfavorable geological conditions, delay in the
commencement of civil works and several local
problems delayed the project. The interim time
extension has been approved up to February
2001. The latest review of the work schedule
carried out by the Consultants shows that the
wet testing of first unit will be started around
September 2001 while the project is anticipated
to be completed by December 2001. So far
74% progress has been achieved in the
construction of diversion dam and desander
basin. Similarly, 53% and 82% progress has
been achieved in the construction of headrace
tunnel and powerhouse respectively. Electro-
mechanical works, transmission line towers
erection and construction of substation at
Lekhnath, Pokhara are going on. The overall
progress of the project achieved so far is about
65%.

Middle Marsyangdi Hydroelectric Project

The Middle Marsyangdi Hydroelectric
Project (MMHEP}, with an installed capacity of
70 MW, is a peaking run-of-river type of
hydropower development scheme located on
Marsyangdi River. The project site is situated
about 170 km west of Kathmandu, in Udipur
and Bhoteodar VDCs of Lamjung district,
Gandaki zone in the Western Development
Region of Nepal.

His Mayesty's Government of Nepal {HMG/
N), NEA and the Government of Federal
Republic of Germany (FRG) are jointly financing
the project. HMG/N and the Government of
FRG have already signed the Financial
Agreement. NEA and the German funding
agency KIW have also signed the necessary
agreements for the implementation of this
project.

The work of tender design and preparation
of tender documents (Stage 1) of MMHEP is
being carried out by NEA employing the
German consulting firm Fichtner Joint Venture.
After carrying out necessary field surveys,
geological investigations and laboratory tests,
the consultant has prepared the Basic Design

Report in April 2000. The draft of
tender design and tender documents
have been submitted by the consultant
in June 2000, and the project has
prepared comments on it. The final
tender design and tender documents
are excepted trom the consultants very
soon.

NEA has entrusted a local
consulting firm (TAEC-NESS) for the
tender design stage, and
Environmental Impact Assessment
(EIA) of this project. The consultants
have submitted the Environmental
Management Action Plan (EMAP),
Scoping as well as Terms of Reference
(ToR) of the EIA study. Notice for the
Scoping and ToR has been already
been published in the national daily
newspaper. The environmental
consultants have submitted the draft
EIA report recently.

To disseminate the information
about the MMHEP to the local people,
a public hearing program was
organized in the project area in
January 2000.

Since some houses are to be
acquired at the dam site, plots will be
distributed to the families losing their
houses for resettlement at the already
acquired land at Udipur. The
preparation of plots, as well as other
physical facilities at the resettlement
area is under construction. Similarly,
relocation of the temple, cremation site
and post office, which lie within the
construction area at the dam site, is
under progress. The project has
acquired land for NEA and consultant
camp at Phedikuna, Udipur. Similarly,
acquisition of land and houses at the
headwork site is under progress.

Nine individual and joint venture
companies have been pre-qualified for
the civil construction of MMHEP and
the list of pre-qualified contractors has
already been published. Notice of
tender for the Civil Works, Lot C has
been published.

Modi Khola Hydroelectric Project

The construction of this 14 MW
Hydroelectric Project was initiated in
1996. The Project is being
implemented in Deupur VDC of Parbat

District on the Pokhara-Baglung
Highway. Main features of the project
includes a 7.5 high, 33m long
diversion weir, which diverts 27.5m7/
sec of water from Modi Khola into a
155m long desanding basin through
four gated 30m wide intake and a
250m long underground box culvert.
An open canal of 63m length, conveys
25m?/sec of water to a regulating
pondage of 32,900 m? capacity
located at the right bank of Modi
Khola. The semi-underground power
house, housing two generating
equipment, is connected to this
pondage through a 1,507m long
headrace tunnel of 3.15m diameter,
41m long horizontal tunnel (below the
surge tank) of 4.24m diameter, 38m
high surge tank of 9m diameter,
vertical shaft of 51m height with 4m
diameter, 123m long pressure tunnel
with 4m diameter and 328m long
underground penstock pipe with
3.2°3.5m diameter. A 282m long
underground tailrace releases the
water into the Modi Khola. The
generated power will be evacuated to
the national grid through a 40 km long
132 kV transmission line to Pokhara.

Because of weak geological
condition encountered during tunnel
excavation the length of the
underground works was increased
from 1888m to 2409m and that of
steel penstock was increased from
90m to 328m.

The estimated construction cast of
the Project 1s US$ 30 million. A loan
agreement with the Government of
Korea was signed on 10th November
1997 for an amount of 12,441 million।:
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Korean Won for
funding the electro-
mechanical works,
transmission line
and technical
assistance. HMG/N
and NEA are
funding the
remaining cost.

Originally, two
units of 7 MW
Capacity vertical
shaft turbines was
planned to be
installed and with a
net head of 67m and total installed
capacity of 14 MW the plant was to
generate 91 GWh of energy annually.
But due to the high efficiency of the
installed generating equipment, the
installed capacity of the units has been
increased up to 7.4 MW each making
the total plant capacity of 14.8 MW.
Thus the plant will generate 92.5 GWh
of electric energy annually.

The construction of the Project is
already completed. The water filling
test of the water conveyance system of
the Project was initiated by Honorable
Minister of State for Water Resources
Mr. R.B. Gurung on 1st July, 2000. The
electricity generation from the plant is
expected to be started in the month of
August 2000.

liam (Puwakholia) Hydropower
Project (IHPP):

Implementation of the 6.2 MW
Hydropower project has been recently
completed with the in house capability
of NEA. The main civil works of the
project commenced on October 1995
and was completed on December
1999. Similarly, the hydromechanical
and electromechanical works of the
project commenced on February 1996
and June 1996 respectively. Testing
and commissioning of the project was
successfully made on April 4, 2000
and the hydropower station is under
commercial operation since then. The
feasibility study of the project was
carried out with the assistance of JICA
in the year 1993. Further detailed
design and subsequent
implementation of the project have

been carried out by NEA,

The main civil work consists of the
construction of 30m long diversion
weir, undersluice and intake facilities,
two underground desanding basins,
spillway tunnel and flushing tunnel,
3238 m long headrace tunnel,
headtank, regulating pond (capacity
2057 113, penstock supports, power
house and switchyard facilities located
at the right bank of Maikhola.

Two units of horizontal axis Pelton
turbines have been installed at the
power house. The power plant will
generate 48 GWh energy annually,
that will be transmitted to [lam
substation through 3.5 km long 33 kV
transmission line. The civil work of the
project was awarded to a joint venture
of a Chinese and a Nepalese
construction company - China
National Water Resources and
Hydropower Engineering Corporation
and Laxmi Shrestha & Co. (CWHEC-
Laxmi J/V). Construction of civil works
faced myriad of problems particularly
in the tunnel / underground works.
The adverse geological conditions
encountered during the Construction
were far different and more difficult
than the envisaged ones during the
project design phase. The extremely
unfavorable geological conditions not
only delayed the original schedule but
also entailed significant additional
cost. Similarly, the nearly complete
penstock had to be relocated from its
original to a new more stable location.

Nepal Hydro and Electric (NHE)
Butwal carried out the
hydromechanical works of the project.
The work mainly comprised of design,

manufacture,
transportatian,
installation,
erection, testing
and
commissioning of
the various
components
namely, gates, stop
logs, valve,
penstock, bends,
bifurcation and
other accessories.

Similarly, the
contract for the
electromechanical works of the project
was awarded to Dongfang Electric
Corporation (DEC}, China. DEC
completed the work regarding the
design, manufacturing, transportation,
installation, erection, testing &
commissioning, of the hydro
generating equipment and accessories
i.e. turbines, generators, control and
relay equipment, switchyard and
substation equipment and accessories.

lam Hydropower Project is a run
of river development and most of the
infrastructures are located
undergound. The negative impact of
the project construction on the local
environment is thus insignificant.

The total revised cost on project
completion has been estimated at US$
15.7 million. The original project cost
was estimated at US$ 12 million. The
incremental cost component has been
mainly attributed to the unfavorable
geological conditions encountered in
the underground works and penstock
relocation works. Also the restoration
and refurbishment of temporary as
well as permanent infrastructures in
the aftermath of the tragic flood
disaster on August 10, 1997
consumed quite some time and
incurred additional cost. The total
project expenditures as of the end of
the last FY 1999/00 (2056/57) is nearly
1000 million NRs. The power station
so far (Ashad 31, 2057) has generated
more than 3 GWh of energy.

Chameliya Hydroelectric Project:

The project is located in Darchula
district of Far-western Development

Region, 18 km north east of
Gokuleshwor, the nearest road head
on Baitadi-Darchula road. In 1997/98,
the detailed study of the project was
carried out for 30 MW peaking run-of
river type scheme by Civil Design
Department, NEA in association will
with Soil Rock and Concrete
Laboratory (SRCL), NEA. The project
will generate 196 GWh energy
annually. The main features of the
project are 23 m high diversion weir
with 3 numbers of 13m high gates,
surface dufour type desanding basin
with 2 chambers, 4075 m long
headrace tunnel, restricted orifice type
surge lank with three units of 10 MW
vertical shaft Francis turbines each and
265 m long box culvert type tailrace.
Power will be evacuated by 127 km
long 132 kV transmission line from
Chameliya switchyard to Attariya
substation. Out of total 18 km long
access road, the earthwork and the
structural work of 14 km portion and
construction of 40 m span bailey
bridge over Chameliya river at Karkale
have been completed by the end of FY
1999/00 (2056/57) The total cost of
the project is estimated at US$ 77
million, In response to the request of
His Majesty's Government of Nepal,
an official agency of the Government
of the Republic of Korea, Korean
International Co-operation Agency
{KOICA) has already chosen
consortium of Hyundai and KOWACO
as the consultant to conduct the
detailed design and preparation of
tender documents of the project.

Small Hydro Projects (SHP)

Various works under the small
hydropower projects have been
completed and carried out during the
year in review. These include:

* Dolpa SHP (200 kW):
Undertaken with the funding from
HMG/N at an estimated cast of
NRs. 67 million, this project was
started in FY 1993/94 and has
now been completed.

* Kalikot Small Hydropower
Project (500 kW): This project
was started in FY 1993/94 with

funding trom HMG/N ताँ an
estimated cost of NRs. 76 million
and has also been completed.

Gamgad Small Hydropower
Project (400 kW): The
preparatory works of this project
was started in 1998/99 and the
technical evaluation is now in
progress. The estimated cost of
the project 1५ NRs. 132 million
and it is slated for completion by
FY 2002/03.

Heldung Small Hydropower
Project (500 kW): The
preparatory works for this project
started in FY 1998/99 and the
technical evaluation is now in
progress. The project is estimated
to cost NRs. 103.5 million and is
stated tor completion by FY
2002/03.

Small Hydropower Master Plan
Project: To assess the potential of
small hydropower projects
ranging from 100 kW to 5000
kW, the Small Hydropower
Masterplan Project (SHMP) was
initiated in 1990. Various works
have been carried oul since then
and the project has been
successful in identitying feasible
projyocts.

33 kV Transmission Line Projects
Related with Small Hydropower
Projects: Following 33 kV
Transmission Lines Projects
related with Small Hydropower
Projects have been undertaken,

- Devighat-Dhading 33 kV
transmission line is complete

except for the
substation portion.

- Sindhuwa-
Khandbari 33 kV
transmission line
will be
completed in the
fiscal year 2000/
01.

- Sindhuli-
Ramechhap 33
kV transmission
line has been
completed.

- Gaighat-Diktel 33 kV
transmission line project is
complete and has been
inaugurated by the Rt. Hon.
Prime Minister on June 2,
2000 (20 Jestha 2057).

- Buipa-Okhaldhunga 33 kV
and Ilam-Phidim-Taplejung
33 kV transmission lines are
under construction.

Kulekhani Disaster Prevention
Project (Il):

The 60 MW Kulekhani-l and 32
MW Kulekhani-ll hydropower stations
together presently contribute about
30% of the power requirement of the
country. Some important structures of
Kulekhani-l 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 reservoir
was already filled with sediment. This
meant about 66% of the dead storage
was reduced in the
last 13 years.
Considering the
urgent need of
sediment control
works 11 the
reservoir and
permanent
restoration works of
Kulekhani-l, the
Kulekhani Disaster
Prevention Project
(IW) was
implemented. The
project commenced। YEAR

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from November 1996 and is schedule
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
installation of telemetering systems
and other related systems. The bell
mouth intake of Kulekhani-l 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 intake to prevent
clogging due to sedimentation. Check
dams were constructed on the
upstream side of reservoir and at the
mouth of Darkot to mitigate sediment
inflow into the reservoir. In addition, to
trap sediment at the upstream edge of
reservoir the check dam No. 1 was
constructed.

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-ll power station.

The construction of the project
inspection road between Bhimphedi
and Kulekhani (15km) is being carried
out and about 77% progress has been
achieved as scheduled. To utilize the
Kulekhani reservoir water efficiently,
the installation of telemetering system
and other related system has been
completed by June 25, 2000.

The overall progress of the Project

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is about 90% and the Project is
scheduled to be completed within
fiscal year 2000/01(2057/58). 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 tor an amount of 3,484 million
Japanese Yen was signed. HMG/N and
NEA will fund the remaining cost.

LDC and Balaju Subtation Extension
Project:

Civil works of Balaju substation
expansion was completed on time.
Delivery and installation of
electromechanical equipment are
underway now. Completion of Balaju
substation expansion works will
greatly facilitate the evacuation of
generated power from Khimti,
Bhotekoshi and Chilime power
stations. Under the same project, a
new LDC is coming up at Siuchatar
substation. The new LDC will be
interlinked with all the major power
Stations and substations in the country
through SCADA system enabling
efficeint and systematic supevision of
the operation of expanding electrical
network in the country. The project is
also expected to establish a strong
back-bone of communication -
capabilities with the use of digital
communication technology.
Negotiations are underway with Nepal
Telecommunication Corporation with
the view to capitalise soon-to-be-added
communication capabilities of NEA.

Kusaha-Dhalkebar 132 KV Second
Circuit Transmission Line Project:

The Indo-Nepal power exchange
agreement has a provision of
importing power from India to the
extent of 50 MW. After interlinking of
the Indo-Nepal 132 kV grid system
through the Duhabi-Kataiya line, about
30 MW of power is being imported.
Since this power could be received
only at Duhabi sub-station, the supply
from India 1s limited only to eastern
zone. For the purpose of importing
additional power from India, stringing

of the second circuit from Kusaha to
Dhalkebar was carried out under this
project so as to transfer power to
Lahan and Dhalkebar sub-station as
well.

The major works carried out under
this project are (a) stringing of 120 km.
of 132 kV second circuit line between
Dhalkehar and Kusaha on the existing
towers. (b) installation of 132/66 kV,
20 MVA transformer at Hetauda sub-
station. (c) installation of 132/33 kV,
15 MVA transformer and one 132 kV
line bay at Dhalkebar sub-station. (d)
installation of two 132 kV line bays at
Lahan sub-station (e) construction of a
switching station at Kusaha and (f)
replacement of 11 kV switchgear
panels at Dhalkebar and Duhabi sub-
station. These works have been carried
out by NEA without the involvement of
consultants.

The cost of the project, which is
about NRs. 210 million, has been
jointly financed by the World Bank,
HMG/N and NEA. All the works have
been completed on June 2000.

Hetauda-Dhalkebar & Butwal-
Bardaghat 132 KV Second Circuit
Transmission Line Porject:

This project is part of the Hetauda-
Biratnagar 132 kV Transmission Line
2nd Circuit Stringing Project. With this
line the power imported from India
(during power shortages) can be
utilized in an even wider-area. Along
with increasing the flexibility of power
export and import when necessary, it
will serve to transfer power generated
from Kaligandaki-A hydropower
project to the eastern zone. It
constitutes of 174 km of 132 kV line,
2nd circuit stringing on the existing
transmission line towers from Butwal
to Bardaghat and from Hetauda to
Dhalkebar. NEA and HMG are funding
the Project which is estimated to cost
US$ 5 million.

So far 118 km (Amlekhganj to
Dhalkebar) stringing works have been
completed. The necessary 132 kV line
bays at Hetauda, Dhalkebar, Butwal
and Bardaghat are also to be
constructed soon.

Birgunj Corridor Reinforcement:

Birgunj corridor which comprise of
Simra and Parwanipur also, 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 along the corridor. At the
same time, additional power for new
industries is putting increasing
pressure on the 66 kV system. The
proposed scheme requires
construction of the following:

a. 132 kV, double circuit
transmission line from Pathlaiya
to Parwanipur.

b. 132/11 kV substation in
Parwanipur.

८. 132/33 & 132/11 kV substation
in Chandranighapur.

The project is estimated to cost
US$ 15 million and the necessary
funding arrangement is being sought.
The implementation of the project is
expected to commence from 2001,
and be completed by the end of 2003.

Chitime-Trishuli-Devighat 66 KV
Transmission Line Project

A 39 km. long 66 kV single circuit
line is in the final stage of construction
for evacuating the 20 MW of power to
be generated by Chilime hydropower
project. The line will be linked with the
national grid at Trishuli 66 kV
switchyard. A 4.56 km. 66 kV line
connecting Trishuli and Devighat
powerhouse has been completed in
April 2000. Similarly, three separate 66
kV line bays (two at Trishuli and one at
Devighat) have been constructed for
the purpose of grid connection of the
line. The project is scheduled for
completion by September 2000. The
entire cost of the project, estimated at
NRs. 264 million is to be borne by
HMG/N and NEA.

Construction and installation work
of the 34.5 km. portion of the 66 kV
line connecting Trishuli and Chilime

power houses is in the final stage of
completion.

About 50 percent of the total
length of the line fall in Langtang
National Reserve. To minimize
environmental impact, the line is
routed mostly along the Trishuli-
Somdang Road at an additional cost of
the line due to the increased number
of tension towers.

One of the challenges of this
project was the construction of a 1250
m long span across Trishuli river at
Dhunche, which has been
successfully completed by the local
manpower.

Khimti-Bhaktapur-Balaju 132 kV
Transmission Line Project:

The objective of the project is to
evacuate power from Khimti-l (60 MW)
and Upper Bhotekoshi (36 MW) both
being undertaken by the private
produces, to the National Grid. The
project has completed all construction
works by December 3, 1999, well in
advance of the completion of Khimti-l
hydropower project.

The scope of the works includes
the construction of 104 km long 132
kV transmission line, 132/66 kV,
3x16.5 MVA transformer substation at
Bhaktapur and 132 kV switching
substation at Lamusangu. The Khimti-
Lamusangu sector, passing through
Ramechhap, Dolkha and
Sindhupachok district is 45 km long
single circuit line while the 48 km
Lamusangu-Bhaktapur sector, passing
through Sindhupalchok,
Kavrepalanchok and Bhaktapur
districts, and the 10 km long Chapali-

Balaju sector in Kathmandu district are
both double circuit lines.

After completion, the lines and
substations were successfully test-
charged on December 3, 1999 (17,
Mangsir 2056) and the evacuation of
power from Khimti-। Hydel Project
started from April 14, 2000 ( 31
Chaitra, 2056).

Funded by the Nordic
Development Fund (Finland), HMG/N
and NEA, the total projects cost is
1200 million Nepalese Rupees.

Lalpur-Gaddachowki 132 KV
Transmission Line Project:

Construction of 12 km long 132
kV transmission line from the existing
132 kV substation at Lalpur near the
Indo-Nepal border has been
completed by NEA to receive the
annual 70 million units of energy from
the Tanakpur hydropower project in
India under the Mahakali Treaty
between His Majesty's Government of
Nepal and the Government of India.
The 132 kV line interconnection with
Tanakpur has been established since
29th December 1999. Currently, the
power from Tanakpur is evacuated in
radial mode up to Kohalpur 132/33 kV
substation in the Far and Mid-western
132 kV grid. Funded jointly by HMG/
N and NEA, the complete project cost
amounts to NRs. 111 million.

Banepa Panchkhal Substation
Project:

Two 66/11 kV substations at
Banepa and Panchkhal are going to be
constructed under this Project. Banepa

छ Substation with a
10/12.5 MVA, 66/
11 kV Transtormer
has been planned
to improve the 11
kV distribution
network of Banepa
& Dhulikhel
munici-palities.
This substation will
receive power from
the existing
Sunkoshi-
Bhaktapur 66 kV

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line and will provide backup supply to
Khopasi powerhouse. Tender for the
supply and construction of this
substation has been awarded.
Construction works will start shortly.

National Hydroelectric Power
Company is undertaking construction
of Indrawati hydropower plant in the
Indrawati basin. NEA has concluded
the power purchase agreement to
procure the energy from this power
plant at Panchkhal substation. For this
purpose the Panchkhal substation has
to be reconstructed within the agreed
time frame. A 5 MVA transformer will
be installed at this substation for local
distribution. Tender for the supply and
construction of this substation has
been floated.

The total! estimated project cost is
NRs. 228 million and will be financed
by HMG/N and NEA.

Seventh Power Project:

The Seventh Power Project, jointly
funded by the Asian Development
Bank, HMG/N and NEA at an
estimated cost US$ 70.468 million was
started in 1990 and is now almost
complete with only minor work
remaining. ADB loan No. 1011 NEP
(SF) for this project was wound up in
December 1998 and all activities
relating to investment from ADB have
been completed within the grace
period i.e. June 1999. The rural
electrification works performed
through local funding of HMG/N and
NEA have nearly been completed
now. The 25 districts benefiting from
the project are Ilam, Jhapa, Morang,
Sunsari, Siraha, Udaypur, Dhanusha,
Mahottari, Sarlahi, Rautahat, Bara,
Parsa, Chitwan, Ohading, Nuwakot,
Tanahun, Sindhupalchok,
Nawalparasi, Gulmi, Arghakhanchi,
Palpa, Kapilvastu, Rupandehi, Banke
and Surkhet. To achieve the target to
electrify 970 villages in those districts,
the project has implemented all
activities under the programme
including reinforcement and
rehabilitation of 11 Nos. of existing
132 kV and 33 kV substations,
construction of 15 Nos. of new 33 kV
substation, construction of 337 km of

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33 kV transmission lines, construction
of 2456 km of 11 kV lines and 3311
km of 400/230 volt distribution lines,
procurement of material and
equipment for rural electrification,
procurement of office support
equipment, procurement of vehicles
and establishment of a new pre-
stressed pole plant. The pole plant has
manufactured 46130 Nos. of 11m, 9m
and 8m. PSC poles within a span of
four years, thus contributing a lot to
the distribution system of NEA. With
the completion of the project about
2,00,520 houses of the 25 districts
shall receive electrical onnections,
benefiting about 12,00,000 people.
The total investment made by the
project till May 2000 is US$ 66.902
million.

Rural Electrification, Distribution
and Transmission Project:

The Asian Development Bank
(ADB) has agreed to provide.a credit
assistance of about US$ 50 million
from the Bank's Special Fund
resources, to HMG/N for the
implementation of the Rural
Electrification, Distribution and
Transmission Project.

The objectives of the project are to
develop rural electrification, to
reinforce NEA's distribution systems
and to improve NEA's performance.
The major components included in
the project are:

* Rural Electrification: To aid rural
development, 240 village deve-
lopment councils (VDC),
1,54,000 rural households are to
be connected. 9 Nos. of 33/
11KV substations will be cons-
tructed for electrification in new
areas. 694 distribution transfor-
mers (11kKV/LV); 1150 km of 11
kV lines, 117 km of 33 kV lines;
and 1314 km of low voltage line
will also be constructed.

Distribution System for Isolated
Power Project: Under this
component electricity
distribution system for small
isolated power supply projects

off the intigrated NEA distribution
grid to be developed.

Distribution System Reinforce-
ment: This component will serve
load growth in existing service
areas in the Eastern, Central and
Western regions. This
component includes 9 new 33/
11 kV area substations; and
upgrading for 11 other area
substations; construction of 74
km of new 33 kV line, and 998
km of new or upgraded 11 kV
line; installation of new or
replacement of 481 distribution
transformers with a total capacity
of 63.2 kVA; and construction or
replacement of 545 km of LV
line.

Transmission Development: To
strengthen transmission in the
Kathmandu valley (expansion of
existing 132 kV substation at
Bhaktapur, Patan, Balaju and
New Chabel), 132 kV ring
around the entire valley will be
completed and provisions for a
new transmission
interconnection with India will
be made.

Computerised Billing Systems:
Out of the 50 branches and 65
sub-branches, NEA is conduct-
ing manual billing and revenue
collection activities. For improve-
ment of revenue collection
performance of NEA, introduc-
tion of computerised billing
system in these branches and
sub-branches is very important.
Out of these branches, 15 larger
distribution branches located
within and outside the
Kathmandu Valley have been
designated as Profit Centres.
Bank has allocated a total of US$
1.875 million (foreign
component cost of US$ 1.25
million and local component
cost of US$ 0.625 million) for
computerised billing system of
these larger distribution
branches. The initial work on
this task has been already

initiated and short-listing of
consultants is currently in
progress.

Initially this task was conceptua-
lised as Computerised Billing
Project Phase-II and was initiated
with financial assistance of the
World Bank from the saving of
the loan to the power sector
efficiency project to computerise
15 revenue collection centres in
Kathmandu valley. However,
after the clasing of this loan at
the end of December 1998,
implementation of the project
could not proceed and ADB was
approached for financing.

* Other Institutional Strengthen-
ing: Under this component,
NEA's institutional capacity will
be strengthened, distribution
profit centres will be established,
revaluation of its fixed assets will
be done and computer database
for these assets will be
established.

In order to operate in a commercial
manner, NEA has introduced profit
centre concept in 1998 in its 15
distribution divisions. These divisions
account for 64% of NEA's consumers
and 81% of revenues. The main
objectives of profit centre concept are
as follows:

० Establish a commercial basis and
orientation for NEA's distribution
operation with profit centre
accounting, to improve
distribution efficiency and
reduce cost;

० Establish reasonable employee
performance schemes;

० Determine the appropriate
performance measures and
bench marks for each centre;

७ Review and analyze the cost
accounting system of NEA and
then establish suitable cost
accounting system for each profit
centre;

* Determine the bulk transfer price
to each profit centre;

लाली

न Determine the delegation of
authority in profit centre;

० Establish energy audit and
vigilance system.

The total cost of this component 15
US$ 4,50,000 (Foreign Loan US$
3,00,000 and HMG/N, NEA
US$1,50,000). Preparation of terms of
reference, short listing and invitation of
proposal for the consulting services
are in progress.

The project will begin in 2000 and
will be completed by the end of 2004
at an estimated cost of US$ 94.5
million. OPEC Fund for International
Development will provide US$ 10
million while the remaining US$ 34.5
million will be from HMG/N and NEA.

Loss Reduction Project:

Financed by ADB as a component
of the loan to the Kaligandaki-A hydro
electric project, the Loss Reduction
Project is under implementation since
the fiscal year 1996/97. The main
activities of this project is to design and
implement a programme to reduce
non technical losses of NEA. The
consulting service for this project was
conducted by the International
consultant NRECA International Ltd.
USA since March 1998 to November
1998. The final report of consulting
services was submitted by the
consultant and it was reviewed by NEA
management. A detailed list of
materials and equipment required to
implement the program for reducing
non-technical losses was prepared
jointly by NEA and the consultant.

Procurement of 1200 electronic
meters for replacement of
electromechanical meters of large
consumers including CTPT metering
units, software for distribution
planning and loss analysis, 150 km
ABC cables, 500 km ACSR conductors
and other hardware have already been
done. About 400 km of ACSR
conductors, 300 electronic meters and
100 km of ABC cables have already
been installed in the selected areas.
This project is expected to be
completed by FY 2000/01.

Kailali-Kanchnapur Rural
Electrification Project:

As per the agreement signed
between DANIDA and His Majesty's
Government of Nepal (HMG/N} in
February 2000, implementation of the
Kailali-Kanchanpur Rural Electrification
Project is now at the detail engineering
design stage.

The Project includes the
construction of 3 new 33/11 kV Sub-
stations, rehabilitation of 2 existing
sub-stations, construction of 600 km
11 kV overhead lines and the
construction of 300 km of 400/230
volt distribution lines.

The project is expected to be
completed in three and half years and
it will electrify 29 VDCs and 271 load
centres providing electricity to 16000
new consumers. Independent User's
Co-operative Group shall manage the
distribution system.

Data Based Digitized
GIS Mapping System

To prepare data based digitized
GIS mapping system, a Pilot Project at
Kathmandu West Branch has been
undertaken from NEA's own financial
resources and it has been completed.
The objectives of this project is to
develop and strengthen the analytical
capability for calculating technical
losses in the distribution system by
using information technology. The
benefits from this project are following:

० Availability of digitized GIS
maps in digital format and
hardcopy.

"० A complete set of consumers
data in hard and softcopy.

० Various recommendations to
reduce technical losses.

* Physical inventory.

These GIS data will be integrated
with Milsoft WindMil software to carry
out loss analysis.

In the fiscal year 2000/01 it has
been planned to prepare GIS Mapping
System of Electrical Network of Lalitpur

IN REVIEW

district covering approximately 47,000
consumers.

Nepal Electricity Utility Statistics -
2000 Project

NEA is planning to compile data of
an entire electricity network covering
powerhouse to distribution
transformer level. The data shall
include the history, salient features and
maps based Auto CAD and GIS (ARC
VIEW/ARC INFO) software.

The various data and electrical
network diagrams will be collected
from respective branches and
department thus it will be a historical
document of electricity utility of Nepal
covering a period of 90 years. This
document will be useful to all who are
concerned with electricity business.

Training Centre Establishment
Project:

Started in the year 1997, NEA
Training Centre Establishment Project
is now heading towards its final stage
of completion. The project was
basically intended for establishing a
permanent modern training institution
of NEA with appropriate infrastructure
facilities.

For executing this project a
Training Centre Complex Master Plan
for the physical establishment and a
Training Master Plan for the academic
programs were prepared and finalized.
The construction of physical facilities
has been completed. The facilities
include academic block (comprising of
22 lecture halls, 2 large lecture halls, 2
seminar halls, 5 workshops, 2
computer rooms, 4 electrical
laboratories, 2 technical drawing
rooms, 4 instructor's rooms, 6
syndicate rooms, 3 stores),
administrative block cum library,
cafeteria, warden's quarter and
trainee's hostel. The remaining works
of the project such as installation of
pedagogical equipment and
landscaping shall be carried out in the
current fiscal year 2000/01. Academic
activities in the Training Centre shall
also start from the fiscal year 2000/01.

REVIEW
MGIAWY NI

ee

PROJECT STUDIES

indentification & Feasibility Study of Storage
Project:

The "Identification & Feasibility Study of
Storage Project" is undertaken with the
objective of recommending medium sized
storage projects that are economically viable &
environmentally sustainable in the long run.
Inventory study of 102 shemes were carried
out, of which 44 are in the eastern, 30 are in
the central and 28 are in the western river
basins of Nepal. These projects were ranked on
the basis of technical, economic and
environmental criteria. Eight of these projects
were recommended for fine screening study
which are as follows:

Mai-0 (67 MW, Ilam), Upper Mai (71 MW,
lam), Madi Begnas (61.5 MW, Kaski), Madi
(230 MW, Kaski), Seti (86.6 MW, Tanahu),
Ridikhola (49 MW, Gulmi), Indrawati (119
MW, Sindhupalchok) and Surnayagad (128
MW, Baitadi).

Two more projects which have been
studied to pre-feasibility level were also
recommended for the fine screening study.
These are: Langtang (175 MW, Rasuwa) and
Lohare (81 MW, Dailekh). Site investigation for
all the 10 schemes have been carried out in
early 2000.

Based on the preliminary design project
optimization, environmental impact

assessment, project economics, etc., two of the
ten best projects will be recommended for
feasibility study which will be carried out in the
year 2000/01.

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 US$ 374 milliion. The benefit/cost (B/C) ratio
is estimated to be 1.56 with an internal rate of
return (IRR) of 15.11%.

According to the feasibility study, the salient
features of the project is 157 m high concrete
faced rock fill dam capable of storing 335.5
Mm? of water, out of which 238.7 Mm? is live
storage. The water from Andhi Khola reservoir
will be conveyed by a 3395 m long headrace
tunnel, 230 m high drop shaft and 1350 m
underground powerhouse equipped with three
60 MW Francis turbines and the water is to be
discharged into the Kali Gandaki river through
a 85 m long tailrace.

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 optimisation
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 ॥13/5, it will
generate about 1466 GWh of energy
annually. It will have a storage capacity
of about 500 Mmi.

For the additional investigation
works 100 m of core drilling,
hydrological survey and reservoir area
Mapping was carried oul.

Kulekhani III Hydroelectric Project

Kulekhani-ll] 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-Ill HEP primarily utilizes
the tailwater from Kulekhani-!] (13.3m3/
5). A discharge of 1.5 m'/s from
Khanikhola shall be added to it. With
the help of a 3.4 km long connecting
tunnel a total discharge of 14.8m)}/s
shall be conveyed to Yangrang Khola
reservoir. In addition, Yangrang Khola
river discharge (0.5m+/s) shall be
added to it. A 45m high regulating
dam across Yangrang Khola will be
constructed to create the reservoir. All
these discharge comprises of a
pondage of about 0.5 million m? in the
regulating reservoir. Afterward, this

water shall be taken to an
underground power house through a
headrace tunnel of 4.5m diameter and
350m long to generate 42 MW of
power for 4 hours peaking. The water
shall be discharged into the Rapti
Khola through a 2.10 km long tailrace
tunnel of diameter 4.5m. The annual
energy generation of this project shall
be 50 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 the whole
project area and test-adit (340m) at
different locations. The Environment
Impact Assessment (EIA) study of this
projects is being carried out.

The estimated cost of the project is
US$ 53 million. Nepal Electricity
Authority has approached the Ministry
of Water Resources to request
Japanese Government to provide
technical and financial assistance for
the detailed design work of the project.

Upper Modi-A HEP (42 MW):

The Upper Modi-A HEP is a 42
MW run-of-river scheme with one
hour peaking facility. The project site is
situated in the Kaski District of Gandaki

~

=
=
>
Saba
co
z

MJlAWd NI

yVIAV

Zone in the Western Development
Region of Nepal. It is located just
upstream of Upper Modi HEP. The
feasibility study of this project was
carried out during the fiscal year
1999/00 by NEA from its financial
resources.

The project has a catchment area
of 330 km?, mean annual flow of 35.3
m?/s, design discharge of 16.71 m?/s,
headrace tunnel of 6085 m lenght and
a surface powerhouse with two
Francis Turbines of 21 MW each. The
project is capable of generating
average annual energy of 283.2. GWh
including 144.1 GWh of firm energy.

The estimated cost of the project is
US$ 60.72 million the estimated IRR
is 22.74% and the B/C ratio is 2.51.

Distribution Network Development

Project:

The project has completed the
techno-feasibility study for Rural
Electrification and Distribution System
Reinforcement (RE/DSR) scheme of 19
districts of Far-western, Mid-western,
Western and Central Regions of Nepal
under His Majesty's Government of
Nepal and Nepal Electricity Authority
financing. The total cost estimate for
the implementation of RE/DSR
schemes of all the above districts is
US$ 136 million (1998 cost). These
districts are Darchula, Baitadi,
Dadeldhura, Doti, Achham, Dailekh,
Surkhet, Bardiya, Banke, Salyan,
Rolpa, Dang and Pyuthan from the Far
and Mid-western Regions. Baglung,
Parbat and Syanja from the Western
Region and Lalitpur, Bhaktapur and
Kavreplanchok from the Central
Region. More detailed studies are
necessary before implementing the
schemes. So NEA has initiated the
Initial Environmental Examination (IEE)
and detail engineering design for RE/
DSR of Lalitpur, Bhaktapur
Kavreplanchok districts with funding
from HMG/NEA. Request have been
made to the World Bank for financing
RE/DSR schemes for implementation
of Lalitpur, Bhaktapur and
Kavreplanchok districts. More
financing arrangements are needed for
further RE/DSR of the remaining 16
districts.

री YEAR

IN। REVIEW
FF

MIA NI

ow
<
ol
i>
lt

BALANCE SHEET AS OF JULY 15

in million NRs

EQUITY AND LIABILITIES 1999* 1998 1997 1996 1995 1994 1993 1992 1991
Equity

Share Capital 1000.0 1000.0 1000.0 1000.0 1000.0 1000.0 1000.0 1000.0 1000.0
Share Allotment Suspense 12418.6 11324.3 9952.6 8231.6 7122.9 5796.7 5190.6 39568 39168
Capital Reserve 158.8 1588 158.8 1586 147.9 137.6 1209 883 67.6
Reserves & Surplus 1536.1 1200.0 1046.5 359.0 (319.5) (346.0) (444.6) (550.8) (500.3)
Revaluation Surplus 10637.9 11965.6 13421.4 14799.3 14286.1 14238.3 13988.0 13421.712369.4
Insurance Fund 160,0 140.0 120.00 1000 800 एता DO DO DO
Total Equity 25911.4 25788.8 25699.3 24648.5 22317.4 20826.6 19854.9 17916.016853.5

Long-Term Liabilities

Long-Term Loan 23919.2 20848.4 17403.2 14900.4 13367.2 12880.6 11649.5 10070.4 8812.3

Total Long-Term Liabilities 23919.2 20848.4 17403.2 14900.4 13367.2 12880.6 11649.5 10070.4 8812.3

Current Liabilities & Provisions

Deposit from Customers 76.6 59.5 76.8 61.6 90.5 36.0 42.4 25.5 24.8
Other Deposit 783.3 677.5 407.7, 339.3 235.0 183.2 84.5 42.5 21.3
Creditors tor Goods 15.2 49.3 32.4 15.7 28.9 5.9 11.2 12.8 10.3
Other Creditors 266.1 201.6 429.1 26.1 22.6 31.1 16.8 40.3 59.4
Payable to Others for power purchase 595.4 377.6 4.3 6.6 8.3 11.6 4.6 18.4 106.6
Payable to HMG for Interest (Other) 777.5 877.1 647.6 319.0 407.8 270.0 224.5 21.4 192.7
Payable to HMG tor Other (int) 1585.7 914.4 440.4 102 263.2 648.8 171.8 80.1 201.6
Royalty Payable 752.1 398.7 473.8 585.0 358.0 - _ - -
Provision for Bonus 48.6 39.4 38.1 31.5 16.6 11.9 6.4 2.4 2.4
Provision for Gratuity & Pension 140.3 140.3 140.3 140.3 140.3 140.3 140.3 140.3 140.3
Provision for Medical Facilities २20, २20, 20.7, 20. 207 २20, २207 उ उठ
Provision for Accumulated Leave 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4
Provision for Wealth Tax ~ 28.5 22.5 17.5 14.5 11.5 8.5 2.5 -
Provision for Income Tax 191.9 207.0 178.1 104.8 34.4 34.5 7.2 7.2 7.2

Total Current Liabilities & Provisions 5266.8 4005.0 2925.2 1803.7 1654.2 1416.9 752.3 427.5 800.7

Inter Unit Balance (Net) - - - - - 34.9 52.7 71.7. 19.0
TOTALLIABILITIESANDEQUITY 55097,.4 50642.2 46027.7 41352.5 37338.8 35124.1 32291.6 28466.6 26538.2

* Subject to final audit

BALANCE SHEET AS OF JULY 15

A YEAR

MiIAI¥ NI

=
~
>
ts
[~ 4
2

in million NRs

ASSETS

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 & Oitice Equipment
Miscellaneous

Total Fixed Assets

1999*

765.2
906.1
15876.3
1496.2
33.3
2669.1
2914.6
3554.8
82.7
20.5
22.6
23.8
79.7
81.1
1.3

1998

727.0
885.5
16619.5
594.1
34.7
2656.0
2432.9
5630.6
89.4
25.6
18.1
20.2
80.5
76.0
1.2

1997 1996 1995
696.1 706.0 665.3
789.7, 798.8 = 755.1
16180.3 16174.1 15951.7
651.0 708.0 716.9
36.2 37.6 39.0

2837.9 3057.3 3024.9
2651.5 2901.0 2959.5

4535.0 4750.1 3983.4
85.8 100.3) 112.5
31.2 37.0 42.8
17.5 16.3 16.3
17.0 13.3 12.4
55.8 92.4 85.4
46.3 43.4 46.4

2.1 3.0 2.0

1994 1993 1992 1991
636.4 611.4 578.9 537.6
646.4 601.3 573.7 535.0
15802.5 15490.0 15171.2 14568.0
737.2 752.0 175.6 178.4
40.5 41.9 43.3 45.1
2704.6 1815.0 1825.8 1797.6

3038.4 2414.2 2436.4 2404.5
3042.6 2244.0 2226.5 2142.8

97.4 59.7 56.3 50.4
48.4 50.3 52.7 52.9
14.4 15.0 15.5 15.9

7.6 5.2 5.4 5.3
37.9 10.8 8.9 18.9
39.8 14.8 13.9 14.0

0.4 0.2 0.3 0.3

30527.3 29891.3 28633.4 29438.3 28413.6 26894.5 24126.2 23184.622366.7

Other Assets
Capital Works in Progress

Investment in Securities

17838.7
326.1

14179.0
247.7

11974.6
150.6

7362.7) 5229.1
54.0 30.5

5439.3 6250.1
356.7 79.0

3816.4 2890.0
30.4 8.1

Total Other Assets

Deferred Expenditure

Inter Unit Balance (Net)

Current Assets
Inventories

Accounts Receivable
Advances Recoverable
Cash & Bank

Total Current Assets
TOTAL ASSETS

* Subject to final auctit

18164.8 14426.7 12125.2 7416.7 5259.6

608.1
426.6

788.8
1697.1
1891.0

993.7
5370.6

443.3
188.7

914.9
1435.4
1709.6
1632.3
5692.2

267.3 4108 588.5
133.2. 335.7 9 144.5
804.0 617.9 429.1
1209.1 1,040.0 682.6
1329.0 848.4 471.7
1526.5 1244.7 1349.2

4868.6 3751.0 2932.6

5796.0 6329.1 3846.8 2898.1

98.6 1086 121.0 169.8
143.7 - - -
340.4 289.5 270.4 250.8
569.9 474.8 576.0 556.1
149.8 1458 113.8 122.2

1131.2) 817.6 354.0 174.5
2191.3 1727.7 1314.2 1103.6

55097.4 50642.2 46027.7 41352.5 37338.8 35124.1 32291.6 28466.6 26538.2

HIGHLIGHTS OF

Description

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
Nepal

Exported Energy (GWh)

Thermal Generation (GWh)

Internal consumption (Gwh)

Net System Losses (Percentage)

* Subject to final audit
Provisional tigures

+ Internal

+ + On revalued assets

2000+। 000**

7204.5
6850.1
354.4

5364.8
1870.0
1427.5
1312.2
31471.1
33981.1

670,000
1269.274
1174.274

1752.66

5.70

351.86
1701.45
1233.22

232.22

169.30

95.00
66.73
29.884
23.90

1999/00

5782.7
5396.8
385.9

5138.5
1853.6
589.9
1206.5
23919.5
30527.3

622363
1113.576
1049.418

1686.18

5.01

326.4
1475.0
1046.51
232.39
77.28
64.158
118.82
23.600
22.90

A YEAR

ln:

५14

1 REVIEW

Increase/Decrease

Amount

47637
155.698
124.856

66.48
0.69

25.46
226.45
186.71
0) 0.17
92.02
30.842
(-) 52.09
6.284
1.00

Percent

7.80
15.35
17.84
(-) 0.07
119.07
48.07
(-) 43.82
26.63

4.36

IN: REVIEW

TARIFF RATES

(effective from November 17, 1999)

CATEGORY A: DOMESTIC CONSUMERS

A.1

Minimum Monthly Charge: Minimum Charge
METER CAPACITY (NRs.)

Upto 5 ampere
6-30 ampere
31-60 ampere

78.00
208.00
468.00

Three phase supply 1248.00

Energy charge:
Upto 20 units
21-250 units
Over 251 units

. 3.90 per unit
. 6.50 per unit
. 9.25 per unit

CATEGORY B : TEMPLES

Energy charge

५. 4.65 per unit

CATEGORY C: INDUSTRIAL

C.1

C.2
C.3

SUB-CATEGORY

Exempt
(KWh)
20
40
80
200

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

Low voltage (400/230 volt)
Rural and cottage 25.00

Small Industry

50.00

Medium voltage (11 & 33kV) 105.00

High voltage (66

kV and above)** 95.00

CATEGORY D : COMMERCIAL

Low voltage (400/230 volt) 125.00
Medium voltage (11 & 33 kV) 120.00

CATEGORY E : NON-COMMERCIAL

Low voltage (400/230 volt) 88.00
Medium voltage (11 & 33 kV) 98.00

CATEGORY F : IRRIGATION

Low voltage (400/230 volt) -
Medium voltage (11 & 33 kV) 26.00

CATEGORY G : WATER SUPPLY

Low voltage (400/230 volt) 78.00
Medium voltage (11 & 33 kV) 83.00

CATEGORY H: TRANSPORTATION
Medium voltage (11 & 33 kV) 98.00
CATEGORY I: STREET LIGHTS

D.1

D.2

E.1
E.2

F.1
F.2

G.1

G.2

H.1

11
1.2

Street lights with meter

Without meter

1690.00

CATEGORY J : TEMPORARY SUPPLY

}.1

With meter

Note: If demand meter reads kilowatts (kW) then kVA =k\V/0.8

* Peak time :

1800-2200 hrs; Off peak : 2200-0600 hrs;

*"* Applicable to consumers of all category

3.00
6.10
5.50
4.35

7.25
7.10

7.50
7.40

3.25
3.25

3.90
3.80

4.00

4.65

Normal : OGO0-1800 hrs.

AVAILABILITY FY2000

9.95%
13.6 <=

3.92%

72.48%

B® Hydro @ Thermal Purchase Indiam Purchase Nepal

SALES FY2000

7.48% 421%

=> 01%
6.45%

40.05%

& Domestic _ Industrial 11 Commercial
m Non-commercial 8 Export w Others

7.41% 397%

2 = 84%

19.54%

a

g@ Interest
& Fuel

EXPENDITURE FY2000

शा।

zz। wn

= mA

ws <

oe =
m7

AVIAW।

UTILIZATION FY2000

5.58% 1.50%

> 3.90%

69.02%। @ Internal Losses 0 Export छ Self Consumption।

REVENUE FY2000

3.28%

4.40%

6 बै 87% 37.90%

m Domestic & Industrial oO Commercial
mw Non-commercial m Export & Others

12.58%

हा Power Purchase
छ Depreciation

© Operation & Admi
a Royalty

मै [लौ रि
= 7
5 2
zZ = pu
५1: ५]।।
TOTAL ENERGY AVAILABLE
5 E I
O।। [।। i
1992 1993 1994 1995 1996 1997 1998 1999 2000
FISCAL YEAR
gus Total Energy ag Thermal C— Hydro sam Nepal mag Import —-e— Peak Demand
SS
Particulars 1992 1993 1994 1995 1996 1997 1998 199१" 2000**
Peak Demand (MW) 216.000 = 214.04 231.0 244.0 2753.0 300.11 317.00 326.4 351.86
eee गितििव्ययतखययव्यााा
Available Energy (GWh) 981.105 963.314 1030.89 1,117.46 1,261.96 1,368.58 1,373.17 1475.00 1701.45
een
1. Hydro 869.980 804.050 835.48 848.74 1,072.75 1,096.64 971.96 1046.51 1233.22
2. Diesel 31.540 47.290 62.20 80.92 36.64 39.73 107.45 118.82 66.73
eee Oe es SS nO ST
3. Purchase from 79.585 111.974 133.21 187.80 153.57 232.21 293.76 309.67 401.50
गा नन
(a) India 54.938 82.223 102.77 113.84 72.96 153.98 210.29 232.39 = 232.20
जि ------ल
(b) Nepal 24.647 29.7511 30.44 73.96 80.61 78.23 83.47 77.28 169.30
eee eee
Nate :- Peak demand Is for all areas covered by integrated system including supply to India.

Subject to final audit
Provisional figures

AD

A YEAR

IN REVIEW
MAlATa NI

५१५ ४

GROWTH OF CONSUMERS

2

छु

E

a

c

fo)

O

5

९

Zz

0 : = - ! ] = = हा .।_।
1992 1993 1994 1995 1996 1997 1998 1999 2000
FISCAL YEAR
Total ७ Domestic O Others

Particulars 1992 1993 1994 1995 1996 1997 1998 1999" 2000**
Domestic 3,37,715 3,71,975 4,04,452 4,36,631 4,71,599 503,330 548,110 593,468 639,233
Non-Commercial 6,065 6,340 6,321 6,369 6,548 6338 7,192 7,654 7,950
Commercial 1,378 1,536 1,848 2,008 2,162 244) 2,637 2,948 3,200
Industrial 9,113 9,595 10,737 11,480 12,329 12928 14,062 14,996 16,000
Water Supply 2A TS 1606 1770 100 202152 215 230
drrigation 012 403 9590 ७630 212 उ 77H 876 29) 776 876 935
Streetlight गर्या 307 379 420 4906 4682 083 BAR २१०9 842 950
Temporary Supply 191 183 188 189 187 155 175 207 160
Transport 8 8 15 8 8 8 12 21 38
Temple 335 398 525 698 782 867 992 1,131 1,300

Total (Internal Sales)
Bulk Supply (India) 9
Grand Total

Subject to final audit
«© Provisional figures

Note :- *

5 4 3 5 9 9 9 5

3,55,993 3,91,001 4,25,211 4,58,604 4,94,965 5,27,457 574,849 622,363 670,000

IN REVIEW
उ

[_भभ14 भ५
1400
1200
1000
£ 800
= 0
©
€ 600
छ;
क 400
c
फ 200
0
1992 1993 1994 1995 1996 1997 1998 1999 2000
FISCAL YEAR
& Total GC Domestic m Industrial @ Others
(in GWh)
Category 1992 1993 1994 1995 1996 1997 1998 1999* 2000**
Domestic 275.248 = 259.833 275.050 301.611 328.730 355.118 378.778 410.566 467.049
Non-Commerctal 46.684 47.607 47.148 9 53.225 53.464 57.991 60.227 62.931 63.592
Commercial 45.200 47.607 = 48.988 58.574 62.916 67.606 71.47) 77.343 81.822
Industrial 246.374 9 273.753 303.991 328.316 358.672 376.742 413.738 440.996 508.357
Water Supply &
Irrigation 27.705 24.113 19.401 27.636 25.091 27.978 29.045 22.831 15.742
Street Light 7.802 8.068 8.857 12.173 16.720 20.929 26.585 29.405 31.741
Temporary Supply 1.003 0.924 0.261 1.225 1.154 0.844 0.711 0.766 0.927
Transport 1.506 1.395 1.338 1.455 1.432 1.483 1.663 2.598 2.678
Temple 0.419 0.460 0.658 0.892 1.503 1.691 1.801 1.982 2.366
Total (Internal Sales) 631.941 663.248 705.992 785.108 849.6082 910.382 984.019 1.049.418 1174.274
Bulk Supply (india! 85.44} 46.137 50.514 39.479 87.014 100.218 67.410 64.158 95.000
Grand Total 737.352 709.385 756.506 824.587 936.696 1010.600 1051.429 1113.576 1269.274
Note :- * Subject to final audit ना Provisional figures

IN REVIEW
31/43४ NI

a

ee। vA sid

REVENUE

8000
7000
6000
5000
e 4000
5
= 3000
=
2000
1000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000
FISCAL YEAR
{in million Rs)
Category 1992 1993 1994 1995 1996 1997 1998 1999* 2000*
Domestic 490.642 621.398 916.332 1,195.389 1,379.456 1769.839 1895.845 2013.589 2657.509
Non-Commercial 140.909 181.076 219.807 284.478 307.246 386.359 405.142 414.948 481.391
Commercial 136.319 186.005 235.781 310.911 349.628 446.964 477.044 512.287 615.301
Industrial 473.082 669.244 936.901 1,260.125 1,406.73) 1801.576 1973.372 2105.896 2719.710
Water Supply &
Irrigation 31.406 36.194 39.526 70.091 68.400 95.701 100.277 77.939 61.079
Street Light 15.629 16.949 27.625 41.835 53.042 80.111 101.977 110.492 137.121
Temporary Stpply Temporary Supply 3980 4880 3.099 6886 160 ee eee 4.880 3.699 6.886 11.840 7.991 7.170 7.208 10.197
Transport 2.429 2.118 2.985 3.993 4.198 6.090 6.511 9.512 11.810
Temple 0.441 0.693 1.480 3.320 4.556 6.208 6.711 7.354 9.937

Temple 0441 0693 छ रि EO ee ता
Total (तशत Sales) 1,294,837 1,718.557 2,384.136 3,177.028 3,585.097 4600.839 4974.049 5259.225 6704.056
Total (Internal Sales) 1.294.837 1.718.997 4,204. 130 9117 MAS POR ee eee eee eee
Bulk Supply (India) «145.783 79,402 91.364 97,566 = 206.720.249.292 199.915 201.933 308.750

Bulk supply (india) SS Ee eee ess eS ee eee Eee ee
Gross Revenue 1,440-620 1,794.019 2,475.500 3,274.594 3,791.817 4850.131 5173.964 5461.158 7012.806

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

IN
p=।

Year Energy (GWH)

2009"
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017

Average Growth

* Historical

1701
1788
1967
2110
2300
2502
2702
2922
3150
3377
3637
3914
4205
4514
4840
5185
5550

5937

LOAD FORECAST
for Integrated Nepal Power System (INPS)

Growth (%)

7.63

Peak (MW)
351.86
408
449
482
525
571
617
667
719
771
830
894
960
1031
1105
1184
1267
1355

Growth (%)

8.25

ENERGY (in GW)

rE AYEA

x

IN REVIEW
२52
Ee

MiIATY NI

x

LOAD FORECAST

7000 1600
1400
6000
1200
5000
1000
4000 =
=
प्रे
800 2
र।
क
3000 पे
600
2000
400
1000
200
0 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

FISCAL YEAR। tam Energy (GWH) —e— Peak (MW)।

IN_ REVIEW

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PROFIT & LOSS FOR THE YEAR ENDED JULY 15

in million NRs

Particulars 2000** 1999* 1998 1997 1996 1995 1994 1993 1992 1991
A. Revenue
Net Sale of Electricity 6850.1 5396.8 5082.5 4767.3 3728.9 3218.5 2437.4 1786.8 1440.4 960.9
Income from Other Services 229.4 180.6 157.6 135.0 111.2 99.9 13.8 8.6 5.6 18.2
interest & Other Income 125.0 205.3 192.6 181.3 172.0 145.1 160.5 109.0 68.2 13.5
Total-A 7204.5 5782.7 5432.7 5083.6 4012.1 3463.5 2611.7 1904.4 1514.2 992.6
B. Operation & Maintenance Expenditure
Operation & Maintenance 1688.5 1714.5 1554.5 1049.4 942.0 838.3 697.1 604.8 499.3 379.7
& General Expenses
Power Purchase 1058.9 802.0 845.6 659.5 359.6 340.0 214.1 162.1 111.3 50.5
Provision for Expenses 30.0 109.9 105.5 80.5 45.9 7.7 8.5 7.0 8.7 -
Bad debts written off - - - - - - - - - 0.3
Royalty 497.4 423.4 348.9 268.8 227.0 186.8 - - ~ -
Depreciation ————~—~SO""":«*N 870.0 1853,.6 1541.4 1482.2 1455.3 1296.0 1202.4 1026.0 953.6 879.7
DeferredExpenditureWrittenoff 220.0 235.1 270.1 188.7 204.4 162.0 66.5 53.6 45.1 56.6
Total-B 5364.8 5138.5 4666.0 3729.1 3234.2 2830.8 2188.6 1853.5 1618.0 1366.5
C. Net Operating
Surplus (Deficit) (A-B) 1839.7 644.2 766.7 1354.5 777.9 632.7 423.1 50.9 (103.8) (373.9)
Loss of Capital Assets - - - - - Tos ofCapialAsscts —SOC=<"—s~=s—s'"'"'~z HB

Interest on Long-Term Loans (1312.2) (1206.5) (1317.2) (1207.5) (813.5) (797.0) (716.6) (625.5) (632.2) (635.1)

cS Oe
Profit and (055 before Prior Year's 527.5 (562.3) (550.5) 147.0 (35.5) (164.2) (329.3) (574.6) (736.0}(1009.0)

income & Expenses Adjustment

Prior year Income / (100) 133.6 (91.7) (176.6) (99.0) (397.0) (411.7) (48.8) 75.6 15.4

Expenses Adjustment

Profit & (Loss) after 427.5 (428.7) (642.2) (29.6) (134.5) (561.4) (741.0) (623.4) (660.4) (993.6)

Prior Year Adjustment

Transter from 1000 1018.6 844.7. 883.3 907.5 671.6 869.2) 729.6 610.0 568.9

Revaluation Surplus

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

written back (199 3-94)

Net Profit (Loss) Before Tax 1427.5 589.9 202.5 853.7 773.0 120.7 128.2 106.2 (50.4) (424.7)

Interest Tax न 3.5 5.0 5.0 7.7 3.9 2.4 -- - -

Corporate Tax 425.4 230.4 23.8 141.3 66.7 10.4 27.2 - - ~

Net Profit/(Loss) after Tax 1002.1 356.0 173.7 707.4 698.6 106.4 98.6 106.2 (50.4) (424.7)
eeeseesese Em

Transfer to Insurance Fund 20.0 20.0 20.0 20.0 20.0 80.0 न - - -

जै

Net Profit/(Loss) after Appropriation 982.1 336.0 153.7 687.4 678.6 26.4 98.6 106.2 (50.4) (424.7)

Subject to final audit नगन Provisional Figures