Contents

Complimentary Copy

NEPAL ELECTRICITY AUTHORITY

Head Office : Durbar Marg, Kathmandu, Nepal
Ph : +977 1 4153007

Fax: : +977 1 4153009, 4153013
Email :  neamd@mos.com.np

Website : www.nea.org.np

A YEAR IN REVIEW
FISCAL YEAR 2011/12

KATHMANDU
NEPAL

Message

It gives me great pleasure to congratulate Nepal Electricity Authority (NEA) on its completion of
twenty seven years of service to the nation. This occasion, on one hand, is a moment of glory
for NEA for what it has achieved so far and on the other, it is an occasion to come with strong
commitment to reform the NEA and reduce load shedding in the coming days.

We are in the process of logically concluding the enactment of constitution with political con-
sensus. While the political deliberations are going on, the economic agenda should also get the
priority of the government. Without economic development and poverty reduction, achieving only
political agenda may not be sustainable. Due to the consistent energy crisis, we have not been
able to fully exploit the potentials of the economic development. Therefore, we should be able
to meet the growing demand of energy in order to push the high economic growth. In this back-
drop, NEA must play a vital role to provide reliable and affordable energy. The government has
already initiated reforms in the country's power sector which will continue in the coming days as
well. The government is committed to create an investment friendly environment for harnessing
country's huge hydro potential.

NEA should explore all options to mitigate the energy crisis which our country is currently facing.। am happy to note that NEA has come up with short term, medium term and long term energy
crisis mitigation plans and has started working towards the implementation. The government is
committed to provide the necessary support in the implementation of these plans.। hope that
NEA will improve its operational efficiency and exhibit greater commitment and dedication to
provide better services to its customers in the days to come.। wish NEA and its staff every success in its endeavor to serve the nation.

(Dr. Baburam Bhattarai)

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Message rom the Chairman

It is a moment of great pleasure for me to put my thoughts as
the Chairman of Nepal Electricity Authority, the country's larg-
est public sector utility, on the occasion of its twenty seventh
anniversary. On this occasion,। congratulate NEA and thank its
staff for their sincere efforts to provide better service.

The country is currently passing through the severe energy
crisis. Each year, load shedding is increasing. In this backdrop,
NEA, as a government undertaking utility, must play a bigger
role in meeting the energy demand of the country.। am happy
to note that NEA has come up with short term, medium term
and long term energy crisis mitigation plans to make available
reliable and quality electricity at an affordable price for the de-
velopment of the country.

Despite all possible measures taken, demand for electricity
could not be met and NEA had no other option but to resort to
long hours of load shedding. It is obvious that load shedding
cannot be reduced without addition of significant generation
capacity and augmentation of transfer capacity. We have noted
that despite the government's effort to increase the participa-
tion of private sector in the development of hydropower, not
much has happened. Unstable political climate, poor security
situation, financing hurdles and lack of adequate returns are
some of the reasons cited for the lack of adequate private
participation. With the political and security situation improv-
ing, and a raise of 20% in the posted power purchase rate,।
am hopeful that more private sector investment will be coming
in the hydropower sector. However, our experience indicates
that the private sector is more interested in undertaking the
run-of-river type of hydropower projects. The current load
shedding is the outcome of run of river mode of electricity
generation. What is needed at this hour is storage hydropower
plant of reasonable capacity to reduce and ultimately end the
load shedding. Therefore, NEA should focus its efforts in the
development of more and more reservoir type hydropower
projects.। am pleased to note that NEA is working towards
the development of storage hydropower plants. In this respect,
NEA has already initiated the development of 140 MW Upper

Seti (Tanahun) Storage Hydropower Project. Further, NEA is in
the process of undertaking detail designs of 600 MW Budhi
Gandaki and 530 MW Dudh Kosi Storge Hydropower Projects in
addition to the feasibility studies of many storage hydropower
projects.

NEA is working towards augmenting the transmission links with
India for greater volume of power import and ensuring comple-
tion of Trisuli 3 'A', Chameliya, Kulekhani Ill, Rahughat, Upper
Tamakosi hydropower projects at the earliest possible. NEA
has completed rehabilitation of many hydropower plants. The
overhauling of multi fuel and Hetauda Diesel plants is nearing
completion. This together with commissioning of the hydropow-
er projects under construction will definitely help reduce load
shedding to some extent in near future.

Fiscal year 2011/12 proved to be yet another year of despair
for NEA. Severe supply demand gap led to the load shedding
of 12 hours a day during the dry season of the year. This
together with increased import of power had adverse effect in
its financial health. Nonetheless, NEA was able to improve its
performance in many fronts. It is worthwhile to mention here
that NEA was able to reduce the system losses by more than
2%.। hope that NEA will put further efforts in the coming year
to bring down the system losses to an acceptable limit. Elec-
tricity generation from its hydropower plants registered an im-
pressive growth, NEA has exhibited remarkable improvement
in its operational efficiency with implementation of advance
techniques and stringent cost measures.। am sure that the continual improvement will transform NEA
into a successful commercial entity in the years to come.

To conclude,। thank all NEA staff for the valuable services they
have provided.

(Hari Ram Koirala)
Secretary, Ministry of Energy

Nepal Electricity Authority। 3

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Board of Directors

Chairman
Mr. Hari Ram Koirala
Secretary, Ministry of Energy

Member Member Member
Mr. Krishna Hari Banskota Mr. Biswa Prakash Gautam Mr. Mohan Raj Panta
Secretary, Ministry of Finance

Member Member Member Secretary
Dr. Krishna Prasad Dulal Mr. Tek Nath Acharya Mr. Mahendra Lal Shrestha
Act. MD, NEA

4। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

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Nepal Electricity Authority। 5

A YEAR IN REVIEW
FISCAL YEAR 2011/12

General Managers and
Deputy Managing Directors

MR. TEEKARAM B.C. MR. LAVA BAHADUR GHIMIRE MR. UPENDRA DEV BHATTA
Deputy Managing Director Deputy Managing Director General Manager
On Deputation to WECS Finance DCS West

MR. BIRENDRA KUMAR MR. RAM CHANDRA MR. RAJESWAR MAN MR. GANESH PRASAD RAJ

PATHAK PANDEY SULPYA General Manager
General Manager General Manager General Manager Grid Development
Engineering Services Generation Construction Transmission & System Operation

MIR. CHIRANJIBI SHARMA MR. BADRI NATH ROKA MR. KESHAB RAJ BHATTA MIR. ISHWARI PD.
PAUDEL Acting DMD Act. General Manager KHATIWADA
General Manager Administration Generation Operation & Maintenance Officiating DMD
DCS East Internal Audit

6। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Directors and Department Chiets

9. १ 69

MR. SUBHASH DAHAL CHHETRI MR. PUSHPA RAJ MR. SHER SINGH BHAT MR. SUNIL KUMAR DHUNGEL
Director KHADKA Director Director
Monitoring & Tech. Department Director Power Trade Dept. Project Development Dept.

Cross Border TL Project

MR. BUDDHA KRISHNA MR. RISHIKESH SHARMA MR. RAM E. MANDAL MR. KANHAIYA K.

MANANDHAR Director Director MANANDHAR
Director Trishuli 3A HEP Planning & Tech. Service Dept. Director
Soil, Rock & Concrete Lab TL Cons. Dept. 220 KV & above

MR. SURENDRA MR. MAHESH PD. MR. MADHAV PD. LUITEL = MR. GOVINDRA RAJ KHAREL
RAJBHANDARI ACHARYA Director Director
Director Director Human Resource Dept. Training Center
Corporate Planning ४ Mon. Dept. On Deputation to Tanahun
Hydro Power Co.

2 >)

MR. ARJUN KUMAR CHAUHAN MR. SUDHIR PRASAD SINGH MR. DEVA SHARMA PAUDEL

Director Director Director
Corporate Finance Dept. Biratnagar Regional Office TL Construction Dept. upto 132 KV

Nepal Electricity Authority। 7

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Directors and Department Chiets

MR. LAXMAN DANGOL MR. HARI RAM SHRESTHA MR. HEMANTA KUMAR JOSHI MR. RAJEEV SHARMA

Director Director Director Director
IT Department Grid Operation Dept. System Planning Dept. Rahughat HEP

MR. LILANATH BHATTARAI MR. GOPAL BABU MS. GOSAI BHANDARI (९6) MR. JAGADISHWAR MAN

Director BHATTARAI Director SINGH
Budhi Gandaki HEP Director Legal Department Director
Chameliya HEP Generation Construction Dept.

MR. JUJU KAJI RANJIT MR. MOHAN RATNA SHAKYA MR. ASTA RATNA SHAKYA MR. JAYANDRA SHRESTHA

Director Director Director — Director
Kathmandu Regional Office Environment & Social Study Dept. MD's Secretariat Economic Analysis & Planning Dept.

MR. BINDU JOSHI MR. PRAKASH CHANDRA MR. HITENDRA DEV SHAKYA MR. LEKHANATH KOIRALA
Chief SHRESTHA Chief Act. Director
Medium Power Plant O&M Dept. hief Large Power Plant O&M Dept. Account Department

Pokhara Regional Office

8। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Directors and Department Chiets

MR. MAHENDRA RAJ MR. SURYA NATH YADAV MR. HARARAJ NEUPANE MS. SHANTI LAXMI
ADHIKARI Chief Chief SHAKYA
Chief Nepalgunj Regional Office Planning & Tech. Ser. Dept. Chief
Butwal Regional Office General Service Dept.

MR. RAM EKBAL YADAV MR. HARISH BD. PAL MR. BHUWAN KUMAR CHHETRY MR. BRAJ BHUSHAN
Chief Chief Chief CHAUDHARY

Janakpur Regional Office Internal Audit Department System Operation Department Chief
Hetauda Regional Office

Nepal Electricity Authority। 9

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Managing Director s
IeEO0OrT

We are gathered here to mark the 27th anniversary of Nepal Electricity Author-
ity, As the Acting Managing Director, it is a great honor for me to present before
this distinguished gathering a report on the activities and the performance of
NEA for fiscal year 2011/12.। have been associated with this organization from the time of its founding.
Twenty-seven years long engagement in this organization has enriched me with
a great deal of insight on multitude of issues, challenges, opportunities and
possibilities of this organization. It is a significant event in itself that the top
management responsibilities have been entrusted on an insider. Therefore,।
would like to begin by expressing words of gratitude to the Chairman and NEA
Board for giving me the opportunity to serve as the Acting Managing Director.
On this occasion,। would like to take this opportunity to once again affirm our
commitment to perform better and deliver better results in the days to come.
With this note,। now present the Managing Director's report on the activities of

past fiscal year 2011/12.

The Year's Significant Events

Two major decisions were witnessed in fiscal year 2011/12
that will have positive impact on NEA's financial health. The
Government of Nepal, as part of NEA's financial restructuring
plan, decided to write off NEA's accumulated loss of over NRs.
27 billion as of end of fiscal year 2010/11. The other one is
Electricity Tariff Fixation Commission finally approved, after a
space of over a decade, a tariff raise of 20 % on an average,
effective from the beginning of the current fiscal year. However,
low income group domestic consumers that consume up to
20 units of electricity in a month will not be affected from this
increase in tariff. While granting the tariff raise, the Electric-
ity Tariff Fixation Commission has issued number of directives
to NEA for improving its operational and financial efficiencies.
The main directives are related to loss reduction, inventory
management, account receivables management and institu-
tional reforms. NEA is committed to the timely implementation
of those directives. Both the decisions, one on writing off the
accumulated loss and the other on the tariff raise, will have
favorable impacts on NEA's Balance Sheet and will help in win-
ning investor's confidence.

Though small sized, two hydropower projects came on-stream
to NEA's Integrated Nepal Power System during fiscal year
2011/12, both developed in the private sector. One is Hewa
Khola of capacity 4,455 kW and the other is Lower Piluwa
of capacity 990 kW, thus augmenting our system capacity by

10। Nepal Electricity Authority

5,445 kW. NEA also commissioned the 400 kW Gamgad Small
Hydropower Project for supply in an isolated mode in the re-
mote district of Mugu. The execution of this project was hin-
dered for the past ten years due to remoteness of the site
and also due to contractual problems. With this project, NEA's
supply of electricity reached to 74 districts of Nepal.

Necessary ground works are now in place for taking off the
implementation of the much awaited 400 kV Dhalkebar — Mu-
zaffarpur double circuit transmission line. This cross-border in-
terconnection between Nepal and India will initially be charged
at 220 kV and operated in synchronous mode between the
two respective grids. Three forms of agreements necessary for
the implementation of this cross-border transmission line were
concluded during fiscal year 2011/12. One was the Power Sales
Agreement (PSA) between NEA and Power Trading Corporation
(PTC) India Limited for the bulk purchase of 150 MW power by
NEA from India on a long term contract basis. Two other agree-
ments, namely the Implementation and Transmission Service
Agreement (ITSA) between NEA and Power Transmission Com-
pany Nepal Limited (PTCN), that will own the Nepal portion
of the transmission line; and between NEA and Cross Border
Power Transmission Company India (CPTC), that will own the In-
dia portion of the transmission line, were concluded. Similarly,
Share Holder's Agreements between NEA (64%), Power Grid
Corporation of India Limited (PGCIL-26%) and IL & FS Energy
Development Company (IEDC-10%) for the ownership of PTCN

A YEAR IN REVIEW
FISCAL YEAR 2011/12

and between IEDC (38%), PGCIL (26%), Sutluj Jul Vidhyt Nigam
Limited (SJVNL-26%) and NEA (10%) for the ownership of
CPTC were also concluded. This cross-border transmission line
is expected to be in operation by 2014. With the import of 150
MW or more power through this line, the imbalance of supply
over the demand is expected to lessen to some extent thereby
reducing the amount of load to be shed. There are number of
hydropower projects presently under construction both in the
public sector as well as in the private sector. Some are planned
for implementation. With the commissioning of all those hy-
dropower projects, substantial surplus energy is expected to
be available especially during the night hours in the summer
months. With the 400 kV Dhalkebar — Muzaffarpur double cir-
cuit cross border transmission line in place, this surplus energy
could be exported to India. Import at the time of deficit and
export at the time of surplus will ultimately lead to low cost of
electricity supply for NEA. The successful implementation of the
400 kV Dhalkebar — Muzaffarpur double circuit cross border
transmission line will eventually open the doors for the imple-
mentation of other cross border transmission lines.

The Chilime Hydropower Company Limited, a subsidiary of
NEA, is undertaking the implementation of Rasuwagadhi Hy-
droelectric Project (111 MW), Middle Bhotekoshi Hydroelectric
Project (102 MW), Upper Sanjen Hydroelectric Project (14.8
MW) and Sanjen Hydroelectric Project (42.5 MW) through its
subsidiary companies. All the four projects are being developed
with 50 % debt and 50 % equity financing mix. Loan agree-
ments between the respective subsidiary company of Chilime
Hydropower Company Limited and the Employees' Provident
Fund were concluded on &th December, 2011 for financing the
construction of those projects.

NEA and K-Water of South Korea signed the Joint Development
Agreement (JDA) for the development of 47 MW Upper Modi
- A hydropower project. On completion of Updated Feasibility
Study of the project and on securing financing for its develop-
ment by K-Water, a Special Purpose Vehicle (SPV) with 20 %
share ownership of NEA and 80 % share ownership of K-Water
will be created for the execution of the project.

The then Honorable Energy Minister, Mr. Post Bahadur Bogoti
laid the foundation stones of NEA's two important projects.
One is the Upper Trishuli — 3A (60 MW) hydropower project.
The other one is the 220 kV Hetauda — Bharatpur transmission
line, which on completion will remove some of the bottlenecks
and congestion problems in NEA's transmission network.

An agreement for the purchase of additional 9 MW of power
from Bhotekoshi hydropower project at a nominal price of NRs.
1.625 per kWh was concluded with the Bhotekoshi Power Com-
pany Limited.

Disputes on the claims by the civil contractor, in the Middle
Marsyangdi Hydropower Project were recently settled amicably
between NEA and the contractor. Regarding the disputes on
the claims by the civil contractor, in the Kali Gandaki - A Hydro-
power Project, a Memorandum of Understanding (MoU) was
recently reached at for the full and final amicable settlement of
the disputes between NEA and the contractor.

The Organization and Management (0 & M) sub-committee
formed by the NEA Board to undertake an O & M survey of
NEA for recommending necessary organizational restructuring
and administrative reforms recently submitted its report.

Operational Performance

The annual peak power demand of the Integrated Nepal
Power System (INPS) in fiscal year 2011/12 is estimated
to be 1,026.65 MW, with 448 MW power estimated to have
been shed. Out of the 578.65 MW of power actually supplied,
349.71 MW was contributed by NEA hydro, 5.3 MW by NEA
thermal, 102.2 MW by IPP hydro and the rest 121.44 MW
was import. Compared to the preceding fiscal year's figure of
946.1 MW, the annual peak power demand of the INPS regis-
tered a growth rate of 8.5 %.

Energy demand of INPS in fiscal year 2011/12 is estimated
at 5,194.78 GWh, out of which only 4,178.63 GWh (80.4%)
could be supplied. The rest 1,016.15 GWh (19.6%) was re-
sorted to load shedding. Of the total supplied energy volume,
3,432.56 GWh (82.2%) was contributed by domestic generation
and 746.07 GWh (17.8%) by import from India. Domestic supply
included 1,073.57 GWh (31.3%) from IPPs and the rest 2,358.99
GWh (68.7%) was from NEA owned power stations with a share of
2,357.43 GWh from hydro and 1.56 GWh from thermal.

Considering supply options available, we had predicted re-
sorting to a maximum of 18 hours of load shedding per day
per consumer during the driest months of January, February,
March and April. However, we succeeded in restricting the load
shedding hours to 12 per day per consumer. This was possible
due to sound operation of the power system, to ensure filling
up of the Kulekhani reservoir at the onset of the dry season,
and also comparatively a wet monsoon. Extended load shed-
ding hours for the feeders that reported high percentage of
theft was also a contributing factor. NEA resorted to all possi-
ble means to minimize load shedding including purchase of all
excess energy from the IPPs, operation of costly diesel plants
and all possible import under power exchange agreement and
power trade with India. Till the supply capability of NEA power
system is substantially improved,। regret to say that load shed-
ding is NEA's compulsion.

Nepal Electricity Authority। 11

Total energy sales including sales to India was 3,041.93 GWh
in fiscal year 2011/12. This is a growth by 11.5 % in the sales
figure of fiscal year 2010/11. Sales to India however declined
to 4.1 GWh from 31.1 GWh in fiscal year 2010/11.

Decrease in NEA's system loss in fiscal year 2011/12 is quite
encouraging. NEA's system loss decreased by more than 2
percentage points from the audited loss figure of 28.55%
in fiscal year 2010/11 to 26.43 % (provisional) in fiscal year
2011/12. This, we believe, is the result of our continued ef-
forts and measures taken on curbing electricity theft. We are
committed in continuing to intensify our efforts to bring down
the system loss to an acceptable level. For this support from
the political parties, civil society and the general public will also
be solicited.

The total number of consumers at the end of fiscal year
2010/11 grew by 12.85 % and reached 2.32 million at the
end of fiscal year 2011/12. Out of the total number of con-
sumers of 2.32 million; domestic, industrial and the other re-
maining consumer categories accounted for 94.94%, 1.57%
and 3.49% respectively. However, in terms of sales the cor-
responding shares are 44.05%, 36.95% and 19.0% of total
sales.

Financial Performance

In fiscal year 2011/12, net revenue from sales of electricity
amounted to NRs. 20,079.13 million, an increment of 11.9%
over the preceding fiscal year's sales revenue. Other income
such as surcharge, interest income, lease rent, service charge,
dividend etc. contributed NRs. 1,349.74 million to the total rev-
enue. NEA's total revenue of NRs. 21,428.87 million in fiscal
year 2011/12 recorded a growth rate of 10.9% over the pre-
ceding fiscal year's total revenue.

NEA's operating expenses for generation, transmission, dis-
tribution and administration were NRs 1,756.61 million, NRs.
459.38 million, NRs. 3,670.68 million and NRs. 1,009.38 mil-
lion respectively in fiscal year 2011/12. These expenses in-
creased by 88.97%, 32.78%, 22.19% and 16.46% respec-
tively compared with figures in the preceding fiscal year. The
substantial increase in the generation operation and mainte-
nance costs was due to the major overhauling works carried
out at Duhabi multi fuel and Middle Marsyangdi power plants.
Price hike of construction materials and spare parts as well as
salary increment (about 30%) for NEA staff were the major
reasons behind general increase in NEA's operation and main-
tenance cost. Power purchase from the IPPs and India is a ma-
jor cost item in NEA's operating expenses. This cost item alone
accounted for 39.13% of NEA's total operating cost. Increased

12। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

quantity of power purchased from India to minimize load shed-
ding, provision for annual escalation in the power purchase
rates and depreciation of NRs vis-a-vis the US$ that effect the
US$ denominated PPAs are some of the factors causing in-
crease in power purchase cost in fiscal year 2011/12.

Annual depreciation charge on fixed assets was NRs. 3,105
million in fiscal year 2011/12, an increase by 2.43% over the
preceding fiscal year's figure. Interest on borrowing in fis-
cal year 2011/12 increased to NRs 3,780 million from NRs
3,594.01 million in fiscal year 2010/11. This represents a
growth rate of 5.17 %. Street light dues amounting to Rs. 580
million of Village Development Committees' (VDCs) as of end
of fiscal year 2010/11 was written off after receiving an equal
amount as full settlement from GoN.

As, NEA's total revenue could not keep pace with the total
cost, NEA, in fiscal year 2011/12, suffered a net loss of NRs
8,550.76 million.

NEA capitalized some of the distribution system reinforcement
and rural electrification projects amounting to NRs. 4,500 mil-
lion. With this; NEA's property, plant and equipment as of end
of fiscal year 2011/12 stood at NRs. 86,120.47 million.

Capital work in progress as of end of fiscal year 2011/12
stood at NRs. 31,924.53 million. Four major hydropower
projects namely Chameliya (30 MW), Kulekhani-3 (14 MW),
Upper Trishuli 3A (60 MW) and Rahughat (32 MW) and a
number of transmission lines at different voltage levels are
presently under construction. Most of the projects are being
funded through government equity and foreign loans chan-
neled through GON. In fiscal year 2011/12, NEA invested NRs.
13,592.5 million in capital works and investment projects out
of which NRs. 5,392.5 million comprised of government eq-
uity, NRs.6,766 million comprised of government loan and
NRs. 1,434 million was borne through NEA's internal source.
Long term borrowings increased by 13.75 % and stood at
NRs. 71,245.74 million as of end of fiscal year 2011/12. The
adjusted share capital stood at NRs. 31,087.31 million as of
end of fiscal year 2011/12 following the writing off of accu-
mulated loss incurred up to fiscal year 2010/11 amounting to
NRs. 27,188.19 million.

Development Activities

NEA's electricity supply position is far from satisfactory to meet
the ever increasing demand, thus compelling NEA to resort to
heavy load shedding. To overcome this imbalance of supply
over demand, as well to keep pace with the annual demand
growth presently averaging at 8.5 %, NEA is undertaking the

A YEAR IN REVIEW
FISCAL YEAR 2011/12

construction of number of hydropower projects. Quite a few
are being developed through NEA's subsidiary and associate
companies. The private sector has also a role to contribute.
Extension of the transmission grid and the distribution network
is also NEA's responsibilities.

Construction of Kulekhani-3 Hydroelectric Project is in prog-
ress, The original construction period was 44 months includ-
ing mobilization, testing and commissioning. Due to various
reasons the project period has been extended for another 30
months with the revised completion date set for September
13, 2014; after reaching a settlement on February 18, 2012
with the civil contractor for the continuation of the contract.
Construction works at the headworks intake channel and de-
sander is in progress. Out of the 4 adits, the construction of
Adit 2 and Adit 3 is going on in full swing. Adit 1A and 4 have
already been completed. In the case of the headrace tunnel,
excavation problems due to cave-in resulted in many months
of delay in the excavation works. However, this problem has
been tackled by making a detour of about 82.0 m in the align-
ment of Adit 3. The excavation work is in full swing, and it is
anticipated that the adit will meet the headrace tunnel within a
month. Works in the powerhouse area have also been resumed
after a break of nearly three years.

Chameliya Hydrolectric Project (30 MW) has achieved 80% of
physical progress so far. The major milestone achieved in fiscal
year 2011/12 is the tunnel breakthrough which took place on
12th May 2012. Regarding civil works, 76% of the dam con-
struction works has been completed. Similarly, 11% of intake,
97% of connecting tunnel, 62% of desanding basin, 94% of
adit tunnel and 90% of the headrace tunnel has been com-
pleted. The progress of power house, surge tank, penstock
and tail race construction are 87%, 71%, 60% and 63% re-
spectively. The overall progress of civil works is 75%. The em-
bedded parts for powerhouse are installed. Installation of two
draft tubes including accessories has been completed. Similar-
ly, installation of turbines has also been completed. Ninety nine
percent of tower foundation works and 93% of tower erection
works of 132 kV transmission line have been completed.

The construction Upper of Trishuli -3A Project started from 1st
June 2011. Most of the land needed for the Project has been
acquired including leasing of land for the temporary facilities.
Construction of steel bridge and a pedestrian bridge over Tri-
shuli River, construction of temporary camp at headworks,
excavation of Adit no. 1, installation of aggregate screening
plant, 1st phase river diversion work at headworks area, foun-
dation excavation for Diversion Weir, about 10,000 cu.m. of
concreting works in stilling pool and construction of retaining

walls of right bank headworks structure have been completed.
Upgradation of the 11.5 km long access road, construction of
access road to Surge shaft, construction of Employer's Perma-
nent camp, excavation of Headrace tunnel on both upstream
and downstream face from Adit-1 and from the headpond and
excavation work for Desander, Intake and Headpond are pres-
ently being carried out.

The contract agreement for the consultancy services for the
Supervision of construction of main civil works of Rahughat
Project was signed with the selected Consultant on 16 Febru-
ary 2012 and the concurrence from the Export-Import Bank
of India is awaited. As per the contract agreement with the
main Civil Contractor, only the construction of access road and
bridge could be started. Construction of major works of the
Project is to commence only after the issuance of Work Order
by the Consultant.

To prepare promising hydropower projects for their implemen-
tation, study ranging trom desk study to feasibility study level
has been carried out on number of hydropower projects. Note-
worthy among them is the Budhi Gandaki Hydropower Project.
To prepare feasibility study and detail design of the project,
procurement for the consulting services of the project is pres-
ently underway.

The Khimti — Dhalkebar 220 kV double circuit transmission line
project, with only one circuit initially strung, is 95 % complete.
Yet, the completion of the project is hampered due to obstruc-
tions created by local residents regarding the right of way is-
sues. Contract for the stringing of the second circuit has been
awarded. Construction of the Hetauda- Bharatpur - Bardghat
220 kV transmission line is under way.

Construction of Syangja 132 kV substation is almost com-
plete and is expected to be commissioned soon. Substantial
progress have been achieved in the construction of: Dumre
— Damauli — Marsyangdi 132 kV transmission line, Singati -
Lamosangu 132 kV transmission line, Kabeli 132 kV trans-
mission corridor, Chapali 132 kV substation, Pathlaiya 132 kV
substation, Matatirtha 132 kV substation extension, second
circuit stringing of Butwal — Kohalpur- Mahendranagar 132
kV transmission line and second circuit stringing of Hetauda —
Kulekhani-Il - Siuchatar 132 kV transmission line. To improve
the voltage profile, capacitor banks in different grid substations
have been installed. In some, they will be installed soon.

The Hetauda — Dhalkebar — Duhabi 400 kV transmission line

project is being implemented to enhance cross border power
exchange with India and augment the transfer capacity of the

Nepal Electricity Authority। 13

INPS. Seven transmission line/substation projects are also
being implemented to facilitate power supply to cement in-
dustries. Similarly, a number of other transmission lines are
planned for implementation. Most are under project prepara-
tory stage under-going various studies.

Similarly, a number of electrification projects, distribution sub-
station construction and upgrading projects and 33 kV trans-
mission line and substation projects are underway throughout
the country to increase the accessibility of electricity to the
rural population.

NEA's Subsidiary and Associate Companies and the Private
Sector

Quite a few development activities are being carried out
through NEA's subsidiary and associate companies.

The Upper Tamakoshi Hydro Power Company Limited (UTKH-
PL), in which NEA has a stake of 41 %, is undertaking the
construction of 456 MW Upper Tamakoshi Hydroelectric Proj-
ect, a project of national pride. The construction works in the
project at different front such as Dam, Intake, Headrace Tun-
nel, Surge shaft, Powerhouse and Tailrace tunnel are ongoing
at full swing, following upgrading of the Dolakha Singati road
(35 Km) and construction of access road from Singati to La-
mabagar ( 28.6 Km ). Around 4 km of excavation of tunnel
works has been completed by the end of fiscal year 2011/12

Chilime Hydropower Company Limited (CHPCL), NEA's majority
(51%) owned subsidiary company, is undertaking the develop-
ment of Upper Sanjen (14.6 MW), Sanjen (42.5 MW), Rasu-
wagadhi (111MW) and Middle Bhotekoshi (102MW) hydropow-
er projects, through CHPCL's subsidiary companies. Project
preparatory works such as land acquisition, construction of
access roads, selection of consultant and selection of contrac-
tors for all the four projects are presently under way. On its
own, NEA has a stake of 10 % in Sanjen Hydro Power Company
Limited, a stake of 10 % in Middle Bhotekoshi Hydro Power
Company Limited and a stake of 18 % in Rasuwagadhi Hydro
Power Company Limited. In fiscal year 2011/12, NEA received
NRs. 129.74 million (30%) cash dividend and 40 % bonus
share (equivalent to NRs. 1,958.40 million) from CHPCL.

NEA has also created Tanahu Hydropower Limited, a Special
Purpose Vehicle (SPV) with full NEA ownership for the develop-
ment of the 140 MW Tanahu Hydropower Project. ADB & JICA
are the potential donors for this project. The detailed engineer-
ing study of the project is in the final stage of completion. The
infrastructure development activity is underway. If financing
agreement could be concluded in the year 2012, the construc-
tion is planned to begin by mid 2013.

14। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

NEA's other subsidiary/associate companies are Trisuli Jalvidut
Company Limited (TJCL) developing the Upper Trishuli "3B" Hy-
droelectric Project with an installed capacity of 37 MW and the
Power Transmission Company of Nepal (PTCN) implementing
the Nepal portion of 400 kV Dhalkebar — Muzaffarpur double
circuit cross border transmission line.

NEA has always considered IPPs as trusted partners in meet-
ing Nepal's growing electricity demand. PPAs for 104 projects
have been concluded as of end of fiscal year 2011/12 that
would generate 1,574 MW installed capacity on their comple-
tion. Twenty five of those projects with total installed capacity
of 181.67 MW are already in operation. During the fiscal year
under review, 23 new PPAs for a total capacity of 334 MW were
signed whereas five PPAs for capacity up gradation totaling
20.72 MW were amended.

The Way Forward

NEA's current huge shortfall of supply over demand cannot

be removed outright and is bound to remain for the next 3-4

years. For the intervening period, following measures, among

others, will be pursued to restrict number of load shedding
hours to 12-14 per day per consumer during the dry season:

० — Possibility of importing 30 MW power through the 132 kV
Gandak — Ramnagar transmission line, 10 MW power from
the 33 kV Birgunj — Raxual line and 10 MW power from
the 33 kV Bhairahwa — Sunauli line which have been lying
idle for quite some time will be explored with urgency.

० 105 power system will be operated and managed in
such a way, even by utilizing existing thermal and import
under exchange as well as trade, so that the Kulekhani
Reservoir is full at the onset of dry season.

¢ Demand side management such as promoting the use
of energy efficient lamps and electrical appliances will be
implemented.

* — Stringent measures shall be taken for the reduction of
technical as well as theft part of the losses. For this sup-
port from political parties, civil society and the general
public will be solicited. Electricity loss including the theft
part will be restricted to 23 % by fiscal year 2012/13.

¢ — Refurbishment work in the Hetauda diesel plant and Du-
habi multi-fuel plant are nearing completion. They will be
operated to the extent possible.

NEA will improve the quality of its services through the use
of new technologies to meet the challenges of new environ-
ment of utility business. In particular following measures will
be pursued:

A YEAR IN REVIEW
FISCAL YEAR 2011/12

० The dBase computerized billing system, a 15 year old
system based on outdated computer technology is still
in use in some of the distribution centers. To bring in
uniformity in the billing system, the dBase computerized
billing system will be gradually phased out and replaced
by the more advanced Oracle based Mpower computer-
ized billing system. In fiscal year 2012/13, the Mpower
computerized billing system will be implemented in 20 ad-
ditional distribution centers.

० — Any Branch Payment System within the Kathmandu valley
will be introduced very soon. For this, major Distribution
Centers within the valley are already connected through
fiber cables and the remaining few will be connected with-
in a couple of months.

* Payment of electricity bills through the use of Mobile
phone will be implemented on a pilot project basis.

"० Automatic Meter Reading (AMR) System for NEA's large
customers will be introduced.

* — Centralized customer care center will be established to
ensure single point of contact for all consumer related
activities including prompt grievance handling services.

"० — Application of Smart Grid and GIS based automated distri-
bution system will be initiated.

Tariff based on the cost plus principle will be applied to the
customers availing NEA's power through dedicated feeder. This
has in principle been agreed by the Electricity Tariff Fixation
Commission.

Safety for the NEA personnel while operating and maintaining
the electrical supply lines as well as safety to the consumers
will be accorded a high priority.

Integrated Financial Management Information System (IFMIS)
based on Enterprise Resource Planning (ERP) will be imple-
mented next year. With such a system in place, NEA will be
transformed into an IT enabled organization with prompt and
reliable information for facilitating effective and efficient deci-
sion-making.

The projects under construction by IPPs and projects for which
PPAs have been signed are run-of-river type only. These proj-
ects will generate substantial energy during wet season but
provide less quantity of energy during dry season. This results
in surplus during wet season and deficit during dry season.
A comprehensive plan is required to utilize this surplus en-
ergy and to manage the deficit in dry season. In this regard,
completion of 400 kV Dhalkebar — Muzaffarpur Cross Border
transmission line is of utmost importance goal, following which

trading of surplus energy to India in large scale could be real-
ized,

Development of storage projects will provide a long term so-
lution to resolve the problem of imbalance between supply
and demand during wet and dry seasons. Apart from Budhi
Gandaki Storage; Dudh Koshi, Nalsingh Gad, Tamor and Ut-
tar Ganga Storage Hydroelectric Projects have been identified
as prospective and viable projects for implementation in near
future. NEA will implement these projects on a priority basis.

Acknowledgements

To conclude,। take this opportunity to thank all those contribut-
ing to NEA's activities over the past fiscal year. It is only through
positive teamwork,। must stress, that a big organization like
NEA can function and achieve results to the satisfaction of its
stakeholders including customers.। wish to take this opportunity to thank the Government of Ne-
pal for their continued assistance in our operations and their
contributions to our development activities.। express my deep
gratitude to the Right Honorable Prime Minister for his inter-
est and guidance in our activities and to the Chairman and
members of NEA Board of Directors who have steered the
course successfully in all adverse conditions. Thanks are also
due to the donor community that has made it possible for NEA
to undertake the works for its development.

Despite very adverse working conditions, our staff have shown
consistent strive for betterment and dedication throughout the
year.। am thankful to the entire staff of NEA and their rep-
resentative Unions for their support and cooperation to the
management.

Most importantly,। wish to thank our valued customers for
bearing with us during periods of difficulty and assure them
that we are in constant pursuit for providing electrical supply
that is reliable and adequate for their needs.

Thank You.

Mabender L. Shctrthy

Mahendra Lal Shrestha
Acting Managing Director

Nepal Electricity Authority। 15

FISCAL YEAR 2011/12

Generation Construction
Business Group

Generation Construction Business Group is responsible for
construction management including detail engineering of new
power projects. It is headed by a General Manager. The busi-
ness group has further division of Generation Construction
Department and Monitoring and Technical Support Department
both of which are headed by Director. In accordance with NEA
Board's decision in line with the new organizational set-up, this
Business Group is overseeing the construction of Chameliya
Hydroelectric Project (30 MW), Kulekhani Ill Hydroelectric Proj-
ect (14 MW), Rahughat Hydroelectric Project (32 MhW), and
Upper Trisuli 3 'A Hydroelectric Project (60 MW). Chameliya Hy-
droelectric Project, Rahughat Hydroelectric Project and Upper
Trisuli 3 'A Hydroelectric Project report to the General Manager
while Kulekhani Ill Hydroelectric Project reports to the Director,

In order to facilitate and optimize the generation construc-
tion of hydropower projects in the near future the Generation
Construction Business Group will have to undertake more re-
sponsibilities and include in its scope all aspects of hydropower
development.

Generation Construction Department

Generation Construction Department headed by a Director
is responsible for the construction of new power projects.
Currently, this Department is managing the construction of
Kulekhani Ill Hydroelectric Project. The construction activities
and project features of the project are as described below:

Kulekhani Ill Hydroelectric Project

Kulekhani is the only storage Project in Nepal, and it has been
providing peak energy to the Integrated National Power Sys-
tem (INPS). The 14 MW Kulekhani Ill Hydroelectric Project is a
cascade project, which utilizes the regulated flow of Kulekhani
Reservoir including additional water from Khani Khola. It is
expected to generate about 40.85 Gigawatt-hours (GWh) of
electric energy per annum. The fund for the construction of
the project is being provided by the Government of Nepal and
Nepal Electricity Authority (NEA). The initial total estimated cost
of the Project is NRs. 2.43 billion. The project is located south-

16। Nepal Electricity Authority

west of Kathmandu in Makawanpur district, Narayani Zone of
Central Development Region. The headworks site is located
on the left bank of Khani Khola at Bhainse Village Develop-
ment Committee. The powerhouse site is located at Sanutar of
Bhainse VDC. It is located at a distance of about 4 km north
of Hetauda and similarly the headworks site is located about
11 km north of Hetauda. The Project site has a good access
facility as it is located near the Tribhuwan Highway.

The power generated from the Project will be evacuated to
INPS through a 500 m long 132 KV single circuit transmission
line. The acquisition of the construction license for the trans-
mission line is in its final stages.

The main construction components of the project are Civil
Works Lot C-1 and Electromechanical and Hydromechani-
cal Works Lot-2. The original construction schedule was 44
months including mobilization, testing and commissioning. Due
to various reasons the project period has been extended for
another 30 months with the revised completion date set for
September 13, 2014. The settlement with the Civil Contrac-
tor M/S Sinohydro Corporation related to the continuation of
the contract was settled on February 18, 2012, leading to the
signing of a Memorandum of Agreement. As a result, the con-
tractor has resumed works from March 23, 2012.

The Joint Venture of Water Resources Consult (P) Ltd. (WRC),
SILT Consultants (P) Ltd. and Hydro Engineering & Develop-
ment Co, (P) Ltd. (HEDCO) was appointed as Consultant for
the Construction Management and Supervision Work. Due to
various reasons, the contract with this Joint Venture was termi-
nated in February 2012 and at present an individual Engineer
has been appointed temporarily in lieu for the time being until
a permanent arrangement is made.

Construction works at the headworks intake channel, desander
and the connection pipe is in progress. Out of the 4 adits, Adit
1, 2, 3 and 4 the construction of Adit 2 and Adit 3 is going
on in full swing. Adit 1A and 4 have already been completed.
In case of the headrace tunnel excavation problems due to a

A YEAR IN REVIEW
FISCAL YEAR 2011/12

cave-in resulted in many months of delay in the excavation
works. However, this problem has been tackled by making a
detour of about 82.0 m in the alignment of Adit 3. The excava-
tion work is in full swing and it is anticipated that the adit will
meet the headrace tunnel within a months time.

Works in the powerhouse area have been resumed nearly after
three years. The work had been stalled after the completion
of excavation of the pit. Works have again been initiated and
the placement of electrodes for earthing has already been in-
stalled by the Electromechanical Contractor M/S Zhejiang Jinlun
Electromechanic Co., China. Similarly, the concrete pad has
been constructed by the Civil Contractor. Several tests need
to be carried out for the confirmation of the foundation works.
Soil, Rock and Concrete Laboratory of NEA have already sub-
mitted their proposal for the works and it is anticipated that the
investigation works will start very soon.

Salient Features of Kulekhani Ill Hydroelectric Project

: Headwork near the tailrace of
Kulekhani Il at Bhaise Dobhan and
Powerhouse in Sanutar village (4.5 km

Location

Head pond
Headrace Tunnel

Forebay

Adit Tunnel

Tunnel Penstock
Powerhouse

Tailrace

Turbine
Generator
Transmission Line

: Capacity 2067 m3; Size 30mx10m;

Siphon Barrel Size2.7mx2.7mx68.8m

: Horseshoe shaped concrete lined;

Length 4.3 m; Diameter 3.5 m

: Underground; Horseshoe shaped

concrete lined; Length 107 m; width/
height 6 m/9 m

: 4 numbers; Inverted D shaped;

1118.5 m (including branch of Adit 3;
Diameter 3.5m)

: Horseshoe shaped; Length 370 m;

Diameter steel/tunnel 2.3 m/3.8 m

: Subsurface, 13.10 m X 21.8 m X

31.1 1)

: 44.3 m RCC closed duct and 57.89 m

open channel; Size 3 mx3.5 m
for closed duct; 10m width of open
channel

: 2 Vertical Axis Francis Turbine
: Two 3 phase, Synchronous AC
: 132 kV; 0.5 km

-

\

MY
\}

y

Chameliya Hydroelectric Project

Type

Installed Capacity
Annual Energy
Catchment Area
Design Discharge
Gross Head

Net Head
Headwork

north of Hetauda city), Makawanpur
district

: Cascade project of Kulekhani Storage

Project

: 14 MW

: 40.85 GWh

: 143 km2

: 16.0 m3/s

: 109.8 m

: 103.17 m

: Khani Khola Intake Conventional Side

Intake on stilling basin downstream of
the consolidation check dam

: Conveyance length 302 m

Chameliya Hydroelectric Project under joint funding of GON,
NEA and Korean loan was started in 2007 and is scheduled
to be completed in 2013. The site is located at Ward No. 4,
Balanch of Darchula District. The plant capacity is 30 MW with
average annual energy generation of 184.21 GWh. Even with
numerous problems, the project has achieved 80% progress
so far. The major milestone achieved in 2012 is the tunnel
breakthrough which took place on 12th May 2012.

So far 18 km long access road has been completed and lo-
cal transportation services are in operation. Six bridges and
one cause way on the access road have also been completed.
Seventeen numbers of buildings which include administration;
workshop and guard house have been completed. Likewise,

Nepal Electricity Authority। 17

32.3 km 33 kV transmission line from Gothalapani in Baitadi to
Balanch in Darchula is completed and 33/11 kV, 3 MVA sub-
station work is at final stage of completion.

Towards civil works, 76% of the dam construction works has
been completed. Similarly, 11% of intake, 97% of connecting
tunnel, 62% of desanding basin, 94% of adit tunnel and 90%
of the headrace tunnel has been completed. The progress of
power house, surge tank, penstock and tail race construction
stands at 87%, 71%, 60% and 63% respectively. The overall
progress of civil works is 75%.

The embedded parts for powerhouse are installed. Installation
of two draft tubes with all accessories has been completed.
Similarly installation of turbines has also been completed.
Most of hydro-mechanical and electro-mechanical equipment
are delivered to site. Ninety nine percent of tower foundation
works and 93% of tower erection works of 132 kV transmis-
sion line works have been completed. Thirty five percent of the
tree cutting has been completed. Eighty two percent of total
electromechanical/hydro mechanical/transmission line works
has been completed.

A total expense of project till now is Rs. 8.8 billion. A month
long Far Western strike adversely affected the project prog-
ress. The construction materials could not be transported to
site and site works stopped completely. Tree cutting works

A YEAR IN REVIEW
FISCAL YEAR 2011/12

could not be completed and transmission line stringing works
could not be started. Heavy flood on July 1, 2012 at Balanch
Khola damaged the coffer dam inside box culvert of tailrace
and water entered inside turbine. The cofferdam was over-
topped by the flood water on July 4, 2012 causing the par-
tial stoppage of concreting activities at dam site. Dewatering
and cleaning works is underway. Heavy rain of July 20, 2012
washed away Gokule-Balanch road at many places and dis-
rupted the transportation to power house site.

Transmission line Work in Progress

18। Nepal Electricity Authority

Construction of Headworks in Progress

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Tunneling work in Progress

Er eed

Construction of power house in progress

Tnneling work in Progress

Salient Features of Chameliya Hydroelectric Project

Type of Project

Catchment area
Gross head
Design discharge
Installed capacity
Dam

Desanding basin

Type
Number of basin

Headrace Tunnel
Tunnel Type
Length/diameter
Type of surge tank

Surge tank
diameter/height

Penstock
length/diameter

Powerhouse

Type
Length/Width/height

Turbine

Type of turbine
Number of unit
Tailrace
Transmission Line
Access Road
Annual Energy

Run-off - river plant with (6 hours
daily peaking)

835 Km2

103.7m

36 cumecs (38% exceedence flow)
30 MW

Concrete with gated weir

Underground
2

Horse shoe, Pressure tunnel
4067m/5.2m (4.2 m)
Restricted orifice

8.0m/49.8m

383.64m/3.7m

Semi-underground
37.5m/23.5m/27.4m

Vertical Shaft Francis

2

Cut and cover box culvert

132 kV single circuit, 131km long
18 km

184.21 GWh

Nepal Electricity Authority। 19

Rahughat Hydroelectric Project

Rahughat Hydroelectric Project (32 MW) which is under con-
struction, is located in Galeshwor, near district headquarter
Beni of Myagdi district in Dhaulagiri zone of western Nepal.
The Project envisages generating 187.66 GWh energy from
the Rahughat river.

The Project has been initiated with funds made available from
the Government of India through Export-Import Bank of India
and is scheduled to be completed in 2016 A.D. The status of
various activities in progress is as follows:

Camp Facilities

Construction of camp facilities for the project includes 14 num-
ber of buildings (office, guest-house & staff-quarters) along
with compound wall and associated works. The concrete works
for the buildings are almost completed and remaining civil con-
struction works of the buildings are in progress. The works are
scheduled to be completed by 20 December 2012.

Consultant Appointment

The contract agreement for consultancy services for construc-
tion of main civil works was signed with WAPCOS Ltd. (A Govt.
of India Undertaking) in association with TATA CONSULTING
ENGINEERS LIMITED AND LARSON & TOUBRO LIMITED on 16
February 2012 and the concurrence from the Export-Import
Bank of India is awaited.

Land Acquisition

About 30 hectare of land required for project needs (camp,
road, power-house, etc.) has been acquired. Payment for the
cost of acquired land has been distributed from office of Chief
District Officer (CDO) of Myagdi District.

Forest Clearance

About 1,442 numbers of trees are required to be cut-down
for clearance of construction site for the project works. Tree-
cutting order was issued in February 2012 and about 50%
trees have been cleared.

Main Civil Works

Contract agreement was signed on 4th November 2010 with
IVRCL Limited, India for construction of main civil works. As
per contract agreement, only the construction of access road
and bridge was started and the rest of the works is to com-
mence only after the issuance of Work Order by the consultant.
The construction of the access road has been disturbed due
to forest clearance issue and problems from local people. As
the consultant for the construction of main civil works has not

20। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

been approved by the Export-Import Bank of India yet, so let-
ter to proceed has could not be issued to the contractor.

Fund Management Status

The fund requirement for the Project is US$ 68 million out of
which US$ 31 million is available from the Export-Import Bank
(EXIM Bank) of India under US$ 100 million Dollar Credit Line
Agreement dated September 14, 2007. Out of US$ 31 million
available from EXIM Bank of India, US$ 28.5 million will be uti-
lized for the construction of "Main Civil Works" and remaining
US$ 2.5 million will be utilized for the consultancy services for
the construction of "Main Civil Works". The deficit fund of US$
37 million required for electro-mechanical, hydro-mechanical,
transmission line and main civil works & consultancy services
has been made available from EXIM Bank of India under US$
250 million Dollar Credit Line Agreement dated October 21,
2011.

Electro-mechanical and Hydro-mechanical and Transmis-
sion Line works

Application for prequalification (PQ) for electro-mechanical
works for the project was invited on 4th March 2012. Only one
applicant namely Bharat Heavy Electricals Limited, India (BHEL,
India) submitted the application for PQ which is under consid-
eration of NEA.

Application for prequalification for hydro-mechanical has been
invited on 9th July, 2012 and last date of submission of the
application is scheduled on 23rd August, 2012.

Construction of under camp facilities.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

7" छ =

Installation of crushing plant for the main civil works.

Salient Features of Rahughat Hydroelectric Project:

Location

Total Catchment Area

Design Flow

Diversion during Construction

Designed for (dry season, 1:10 yrs) :

Type of Weir & Undersluice Gated
Capacity of Weir & Undersluice

(1 in 1,000 years flood)

Number of Desanding Basin

Size of Desanding Basin

(Length x Width x Depth per bay)
Length of Headrace Tunnel
Internal diameter of Headrace
Tunnel-Shotcrete lined/ Concrete
lined

Diameter of Surge Tank

Height of Surge Tank

Length of Concrete Lined Pressure
Tunnel

Internal Diameter of Concrete Lined

Pressure Tunnel
Length of Steel Lined Penstock

Diameter of Penstock (underground) :
Size of Power House Length x width :

Number of generating units
(19 MVA each)

Turbine type

Turbine rated capacity
Gross Head

Rated Net Head

Installed Capacity

Transmission Line (Powerhouse site

to Modi Sub-station, Double circuit)
Access road (from Powerhouse to
headworks)

Project Cost

Total Financial Cost

Total Annual Salable Energy
Generation

Firm Energy

(90 % Hydrological Firm)
Secondary Energy

Benefit / Cost at 10 % discount rate :

Nepal Electricity Authority। 21

Myagdi District
305 km2
13 m3/s

27 m3/s

688 m3/s
2

80.0 x 8.0 x 5.2 (m)

6,151. m

3.5/2.9 (m)
10m
47m

740.5 m

2.6m

352m

1.95m

52.6 x 16.7 (m2)

2

Pelton (vertical axis}

2x16MW
295.5m

284.3 m
16x2=32 MW

28 km

12.9 km

67 MUSD
90 MUSD
187.66 GWh
98.92 GWh

88.74 GWh
1.135

Upper Trishuli 3A Hydroelectric Project

Current Status

Construction of this 60 MW Run of River hydropower Project
located in Rasuwa and Nuwakot districts was initiated in FY
2010/11. The loan agreement for 640 Million Chinese Yuan
(about 93 Million US$) covering the major project works (Civil,
Electro-Mechanical, Hydro Mechanical works) and its construc-
tion supervision was signed on 28 February 2011 between
Nepal Government and China Exim Bank. Estimated cost of the
project is 125.775 Million US$ and China Exim Bank has com-
mitted to provide concessional loan of 120 Million US$.

The Project structures comprise of a 15 m high, 95 m wide
diversion weir, Intake, Desander, 4.1 km long Headrace tun-
nel, Surge shaft, Inclined shaft, Pressure tunnel, Underground
powerhouse, Tailrace, 46 km long 220 kV Transmission line
and ancillary structures like camp facilities. The access road
to be built consists of 2.5 km long new road to Surge shaft
and other Project sites, upgrading of 11.5 km existing road
and a steel bridge of 55 m span to be built over Trishuli River.
The estimated annual energy generation of the Project is 460
GWh. The construction of this project is being undertaken un-
der Engineering Procurement and Construction (EPC) model
and comprises of three packages as follows.

22। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR-2011/12,

P ही
* .

५ २?
a

Adit 1 Portal

Major construction work

(Tender No. UT3A-01-2066/67)

Contract for the major construction work (Civil, electro-me-
chanical, hydro-mechanical works) was signed on 28 May
2010 with China Gezhouba Group Co. Ltd. (CGGC) at a cost of
89.1779 Million US$. After signing of the Loan Agreement and
subsequent Subsidiary Loan Agreement (SLA) between Gov-
ernment of Nepal and NEA the Contract has become effective
since 1st June 2011. The construction work has started from
ist June 2011 and shall be completed in 35 months.

Land acquisition for the major Project work has been basically
completed including leasing of land for the temporary facilities.
CGGC has completed construction of steel bridge and a pedes-
trian bridge over Trishuli River, temporary camp at headworks,
excavation of Adit no. 1, aggregate Screening plant, ist phase
river diversion work at headworks area, foundation excavation
for Diversion Weir, about 10,000 cu.m. of concreting works in
stilling pool and retaining walls of right bank headworks struc-
ture. CGGC has been undertaking upgradation of the 11.5
km long access road, access road to Surge shaft, Employer's
Permanent camp, excavation of Headrace tunnel on both up-
stream and downstream face from Adit-1 and from headpond.
Similarly excavation work for Desander, Intake and Headpond
is being carried out.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Construction Supervision

(Tender No. UT3A-03-2066/67)

Contract for construction supervision of the project has been
signed with Northwest Hydro Consulting Engineers on Septem-
ber 2010. The contract amount is 3.923 Million US $ and the
supervision work has started since 1 June 2011.

Transmission line work

(Tender No. UT 3A-04-2067/68)

The Transmission line comprises of 46 km long 220 kV line
from powerhouse switchyard to Matatirtha substation in Kath-
mandu. In addition to 46 km overhead line about 1 km of 220
kV underground cable route leads to the Matatirtha Substation
and two 132 kV line bay extension work will be installed for
interconnection with existing Matatirtha substation. The over-
head transmission line comprises of about 4 km 132 kV double
circuit single Bison conductors from powerhouse to UT3B Hub
substation, about 36 km 220 kV double circuit double Bison
conductors from UT3B Hub substation to Bandbhanjyang and
about 220 kV four circuit having upper two circuits double Bi-
son conductor and lower two circuits double Moose conductors
from Bandbhanjyang to Matatirtha. The Contract for Transmis-
sion line was signed in 27 March 2011 and was awarded to
China International Water & Energy Corporation (CWE) and its
cost is 22.6 million US$ excluding VAT. The Contract for the
transmission line has become effective from 26 February 2012
after the loan agreement between GoN and China Exim Bank
was signed on 17 August 2011.

Till now route alignment survey has been finalized by CWE and

२ किकाक 10] / 1 }k- _

~~

: ~ 7S ay : न
a 7 ease ca eee ..

Detail survey of the transmission line will be started very soon.
Geotechnical investigation works of 20 out of 48 angle points
has been completed.

Apart from the works mentioned above, NEA is preparing to
impart skill enhancement training to 120 persons from the
project site. The Draft Report of Initial Environmental Examina-
tion (IEE) for Transmission line work, after incorporation of all
the reply to MOE's comments, has been submitted to Ministry
of Energy on September, 2011 and is under process of ap-
proval.

It is envisaged that this medium sized project under construc-
tion through concessional loan will help improve supply in Kath-
mandu valley.

२

mae नु.

'-

Diversion Weir construction at right bank of Headworks

Nepal Electricity Authority। 23

- 2७. te

Headrace Tunnel Inlet Portal at Headpond

Salient Features of Upper Trishuli 3 A Hydroelectric Project

Type of project
Project location
District/Zone
Headworks

Powerhouse
Nearest Town
Nearest Roadhead

Length of access road :

Hydrology
Name of River

Reference Hydrology :

Catchment area
Design Discharge

Geology
Regional geology

Geology of project area :

Run of River hydropower

Rasuwa & Nuwakot of Bagmati zone
1 km downstream of Mailung Trishuli
confl uence

Near Simle village

Trishuli about 19 km to the south
Simle near proposed powerhouse
site

2.3 km new and upgrading of 11.3
km between Betrawati & headworks
site

Trishuli

Betrawati St. no. 447
4542 sq. km

51 cumecs based on 70%
exceedance flow

Lesser Himalyas
Good rock type, Gneiss, Schist

Project General Description

Gross Head
Type of headworks
Design flood

Full Supply level

Undersluice gate size :

Intake type
Intake channel length

144.5 m

Gated weir with side intake

2424 cumecs based on 1:1000 year
fl ood

El: 870.5 m

Anos. 11.6mx10m

Side intake

: 148 m

24। Nepal Electricity Authority

Desander
Desander size

Headrace tunnel length :
Headrace tunnel Shape :

Headrace tunnel Size :

Shotcrete lined portion :
Surge shaft

Inclined shaft
Pressure tunnel

Powerhouse Type
Powerhouse Size
Turbine Type
Installed Capacity
Switchyard Size
Tailrace Conduit

Tail water Level

Power & Energy

Min. power Generation :
Annual average Energy :
Power Evacuation

Line ः
Transmission Voltage :
Interconnection point :
Project Cost

Estimated cost

Project Economics
Benefit cost ratio

EIRR

Specific energy cost

Length of Transmission

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Twin Berri type

95 mx 30 mx 9.2 m (Lx Bx 1)
4095 m

D type (excavated) and circular (fin-
ished)

5.4 m for concrete lined and 5.9 m
for shotcrete

60% of total length

Restricted orifice type 17 m dia.
37.7 m high

Length 168.27 गा, diameter 4 m
Length 86.6 m, diameter 4.0 m to
2.0m

Underground

42.6mx 14mx 30.2 m
Vertical Francis

60 MW (2 X 30 MW)
2nos of 50mX 15m

D type 6.2mx5.0 m
m length And twin
25 m length

El. 726m

size,115
conduits

43.75 MW
489.76 GWh (gross)

48 km
220 KV initially charged at 132 kV
Thankot substation at Kathmandu

109.224 Million US $
2.18

21.6%
3.03 cents/kWh

Monitoring and Technical Support Department

Monitoring and Technical Support Department headed by a
Director is responsible for monitoring of power projects that
are under construction, provide technical support to the power
projects as necessitated by site conditions, supporting the su-
pervision works and monitoring the progress of the construc-

tion activities.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Generation Operation and
Maintenance Business Group

Generation Operation and Maintenance (GO&M) Business is
responsible for the optimum operation and maintenance of
the seventeen (17) hydropower stations and two (2) thermal
power plants presently owned by NEA. 'Generation of energy
by optimally utilizing the resources available while undertaking
periodic overhauling, major maintenance works and rehabilita-
tion projects of the generating stations'; that approximately
describes the mission of the GO&M Business Group.

One hundred years have passed since Nepal, in 1911, started
producing hydro-electricity from Pharping power station. The
erstwhile Bijuli Adda has found its continuity in various forms
of government agency and is presently the Nepal Electricity
Authority. In this way, GO&M business can be called to possess
the heritage of a hundred years of operation and maintenance

of power stations.

The total installed capacity of hydropower stations and thermal
power plants under this business group now has reached a
humble 469.29 MW and 53.41 MW respectively. There has not
been any capacity addition in this year nor the preceding year.
Despite it, the GO&M business has strived to increase total pro-
duction of energy year on year basis, without accounting for
the thermal energy that has been kept minimal due to its high
operating cost. The year-on-year increase of total generation
of last FY 2010/11 had been a modest increase of 0.6%.
This year the same resources have been maximally used to
generate 2,351.53 GWh which represents again a 10.99% in-
crease over the previous year. Hydro-energy claims a share of
2,349.97 GWh of the total with a mere 1.56 GWh from thermal.

The generation target set for the year was 2,344.55GWh which
has been exceeded. The bars will be further raised this fiscal
year with the same power plants in hand, placing more demand
on optimum operation and maintenance practice so as to fulfill
the targets, while trying to reduce the load-shedding torment
of the nation. The run-off river (ROR) generating units op-
erated at only 64.61% plant factor whereas Kulekhani-l and
Kulekhani-ll, the two storage hydropower stations in cascade,

showed the aggregate plant factor of 26.64%. The maximum
water-level of the Kulekhani reservoir was recorded at 1530.5
mas! on November 24th, 2012. The water extraction from
Kulekhani reservoir has been cautiously limited this year to
1497 masl minimum level while expecting to fill the reservoir
for the coming winter season.

The Business Group has continued to work on the repair and
maintenance activities, periodic overhauling and rehabilitation
as well as renovation, modernization and upgradation (RMU)
projects in assistance with Government of Nepal and multilat-
eral agencies. After the successful completion of RMU project in
Devighat last year, the generation has been satisfactory which
has been limited only by the obstacles in generation faced by
upstream cascade plant of Trishuli. The Multifuel power plant
is undergoing major overhauling. After the overhaul work, one
unit has been tested at full capacity. However, the other units
are still under repair and expected to be completed by October
2012. The other RMU projects in KGA, Modi and Marsyangdi
Power Plant are at various stages of implementation.

Ageing generating stations resulting in increased operation
and maintenance costs coupled with inadequate skilled work-
force and unavailability of spare parts are some of the chal-
lenges faced by this business. Advanced technologies used in
the new power plants demand manpower up to the notch. Ef-
forts have been made to upgrade available manpower at floor
level and at engineer level. Systemic improvements are called
for in this sector to bring the generation to the optimum level.
Efforts have been made towards this, but more disciplined
continuity is required supported by corporate commitment for
the same. The Business Group will continue to work on genera-
tion improvement initiatives in a broader framework.

This Business Group is structured into two departments,
namely, Large Power Plants and Medium Power Plants Opera-
tion & Maintenance Departments.

Lagre Power Plant Opertation & Maintenance Department
The (LPPOM) Department oversees the operation and main-

Nepal Electricity Authority। 25

tenance of five (5) hydropower stations and one (1) thermal
power plant above 30 MW owned by NEA, with a total of 414.9
MW of installed capacity. The generations of the power plants
have been very satisfactory excluding the Multi-fuel power
plant which is hardly operated due to high fuel costs. Overhaul-
ing of generating units is a regular practice normally carried
out in the lean season avoiding energy loss. This ensures that
design capacity is available during wet season.

Annual overhauling and repair works were carried out in Ka-
ligandaki A, Middle Marsyangdi and Marsyangdi power plants.
Kulekhani 1 and Kulekhani 2 being reservoir type power plants
does not experience erosion problems and hence, only regular
preventive maintenance exercises are undertaken. Kaligandaki
power plant is shutdown for few hours periodically during early
monsoon due to overload of floating debris at its intake, which
also reduces the desander efficiency. Model studies made
have suggested simple modification in the intake that can sig-
nificantly improve the performance. Works for such modifica-
tion as well as repair and rehabilitation and spares purchase
are being forwarded under World Bank loan. Underwater works
to repair the stoplog gate seal beams and concrete were car-
ried out in gate 3. Valuable experience has been gained and
such works may be necessary to apply in future installations.

Urgent left bank repair of Middle Marsyangdi dam side was
carried out with 2 weeks of plant shutdown. It has revealed
need for further structural improvements. Bathymetric survey
and model study will be carried out this year to determine the
works. Stoplog gates were placed in undersluice of Marsy-
angdi weir requiring drawdown of water and plant shutdown
for nearly 4 days, Further efforts shall be made this year to
bring the Undersuice gate to operation and carry out flushing.
Technical support from Fichtner GmbH for operation and main-
tenance of Middle Marsyangdi is being availed under KfW loan
program for improving the maintenance practices, imparting
training and providing technical advice where found necessary.
In Kulekhani 2, one 132 KV power transformer was damaged
due to lightning and resulting fire. The transformer is sent to
NEA workshop in Hetauda for possible repair while necessary
cable and busbar repair was carried out to bring the unit in
service within 3 days.

Present power system faces transmission congestion in the
Bharatpur-Hetauda line which limits the power production of
Kaligandaki A during off-peak hours. Possible solutions were
explored to improve voltage profile around this network area
so as to reduce congestion during off-peak and produce
maximum by Kaligandaki A. Major power plants as Kulekhani
1 and 2, Marsyangdi and Middle Marsyangdi now contribute

26। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

to their capacity in boosting the Reactive power generation
and improving voltage profile in Hetauda and Bharatpur area.
Test operation in Synchronous capacitor mode of Kulekhani 1
pushing approximately 38 MVAr to the system was done re-
cently to demonstrate the reactive support possible from this
plant during periods when it is not generating. Together with
Kulekhani 2, it is in nodal position to support the system volt-
age and frequency.

The rehabilitation project of Multi-fuel Power Plant was re-
newed with a contract amendment and additional spare parts
have been delivered and repair and machining works are being
carried out.

Further to the repair works and operation of power plants,
capacity building efforts were initiated in-house from May
2012 in all five hydro-power stations. The dire need to transfer
knowledge to the lower level technicians is recognized and the
best means for doing that is in-house. Short training courses
of one week duration were carried out by the engineers and
Supervisors of the plant to their own junior colleagues, bol-
stered with some external resource persons also. Following
very encouraging results, this initiative will now be pursued
vigorously in the coming year.

1. Kaligandaki 'A' Hydropower Station
Kaligandaki 'A' Hydropower Station, located at Beltari, Sy-
angja is the largest with installed capacity of 144 MW and
annual design generation of 842 GWh which was com-
missioned in 2002. Aided by favorable river discharge
and increasing load in the western region, it exceeded
the target and design generation this year. This also indi-
cated that with rigorous operation practice in intake area,

A YEAR IN REVIEW
FISCAL YEAR 2011/12

timely repair activities and proper operational support,
generation can be increased even further. Unit no1 was
overhauled this year. Other major works include under-
water repair works at radial gates in damside, steel liner
replacement of gates, epoxy application in ogee surface,
132kV GIS repair and maintenance works and timely re-
placement of balancing pipes of Unit 2 which allowed the
postponement of Plant shutdown and MIV seal repair.

Rehabilitation project scope under World Bank finance
was modified while the PDP project itself is concluded
in Decmebr 2012. Bid Documents for the works are pre-
pared and now awaiting bridging of the loan program
so that the works can be concluded by December 2014.

Middle Marsyangdi Hydropower Station

Middle Marsyangdi Hydropower Station is located at Bho-
teodar, Siundibar, Lamjung with the installed capacity of
70 MW and annual design generation of 398 GWh. It was
commissioned in 2008. This year it exceeded the genera-
tion target as well as the design generation by high mar-
gin which was also aided by favorable river discharges.
It is apparent that with better repair practices, intake
operation, sediment management and operational sup-
port, generation can be increased even further without
aggravating the turbine health. Apart from the left bank
rip-rap protection and sediment removal accumulated in
reservoir which was carried out in a short plant period of
13 days from January 29, 2012 to February 11, 2012,
major unit repair works was carried out in Unit 2 and
Unit 1. New runner was installed in Unit 1. The runners
and turbine parts have shown severe erosion indicating
annual repair with recovery of runner blades and wicket
gates as essential. Repair of steel liners and epoxy coat-
ing of ogee surface was also carried out in Headworks.
Scares created due to the troubles occurring in the so-
phisticated control system were overcome avoiding any
major generation loss similar to previous years. Urgent

capacity building in this area is indicated, and efforts are
being undertaken to upgrade our manpower knowhow.
The sluice service gate was repaired by VA TECH under
contractual obligations.

Kulekhani-I Hydropower Station

Kulekhani-। Hydropower Station, located at Dhorsing,
Makwanpur is a storage type power station with installed
capacity of 60 MW and annual design generation of 211
GWh (165 GWh primary and 46 GWh secondary) which
was commissioned in 1982 AD. Civil repair works to pro-
tect the reservoir storage capacity was carried out, in-
cluding excavation and gabion works in Chakhel intake
and in the tributaries pouring to Indra sarovar. During the
last monsoon season, sandbags were placed in the spill
way crest by 50 cm height increase to increase the water
storage. The winter of 2011/12 was much helped by this
additional energy. Installment of a new 350 KVA D.G. set
and replacement of two number of air compressor sys-
tem was carried out in this fiscal year. Regular check-up
of generator and turbine is carried out including cleaning
of stator coils of both units. Presently, all of the two units
are in normal operation. It works as a backup in INPS.

A «

Kulekhani-Il Hydropower Station
Kulekhani-Il Hydropower Station, located at Nibuwatar,
Makwanpur is a cascade of Kulekhani-l with installed ca-

Nepal Electricity Authority। 27

pacity of 32 MW and annual design generation of 104.6
GWh which was commissioned in 1986 AD. The Plant has
faithfully followed the generation of Kulekhani। while also
boosted with water intake from Mandu and Rapti pump-
ing. Every year Mandu intake is cleaned after the wet sea-
son to allow the filtered water to the intake pond. Survey
was carried out to explore the addition of Mandu and
Rapti more extensively such that one unit can run while
Kulekhani 1 is closed preserving water. In April 2012,
lightning stroke inflicted heavy damage in the 132 kV
Y-phase power transformer, damaging power cable and
busbar. However, generation was promptly resumed with
necessary repair and replacement within 4 days. Pres-
ently, all of its two units are in normal operation.

5. Marsyangdi Hydropower Station

Marsyangdi Hydropower Station is located at Aabookhai-
reni, Tanahun in the central region with installed capacity
of 69 MW and annual design generation of 462.5 GWh.
It was commissioned in 1989 AD. The generation was
highest since more than a decade, although handicapped
with increased tailrace bed. The runner efficiencies after
many years of overhauling and repair need to be tested
to determine further ways of increasing the generation.
The overhauling of turbine runner assembly of Unit No. 1
and replacement of six (6) numbers of line side 132 kV
GIS CTs to address the line bottlenecks have been suc-
cessfully completed and Weir Control modernization and
rehabilitation of Excitation System under EAEIP funded
by ADB are under different phases of implementation.
Presently, all of its three units are in normal operation.
Stoplog gate placement in Undersluice, repair of radial
gate steel liners, epoxy and magma quartz coating of
the ogees surface are some of the works carried out in
Headworks.

28। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

6. Multi-Fuel Power Plant

Multifuel Power Plant, located at Bansbari, Morang in
the eastern region with installed capacity of 39 MW uses
furnace oil (FO.) as a source of energy. There are four
units each 7.5 MVA from Leroy Somer France and two
units each 8.144 MVA from Alsthom, France. The plant
has installed capacity of 39 MW with 26 MW put into ser-
vice in FY 1990/91 and additional 13 MW put into ser-
vice in FY 1997/98. The rehabilitation of all the six units
under World Bank finance and support from Government
of Nepal and NEA own finance, is underway. Unit No. 1,
Unit No. 2, Unit No. 5 and Unit No. 6 overhauling is un-
dergoing whereas Unit 3 and 4 are being investigated
after it was shutdown in March. The works is expected to
be completed by October 2012 and ready for generation
in coming winter provided support strategy for high fuel
costs are in place.

Medium Power Plant Operation and Maintenance Depart-
ment

The (MPPOM) is responsible for operation and maintenance of
medium & small power stations with installed capacity of below
30 MW. There are 12 Hydropower & 1 Thermal power stations
under this department.

In this fiscal year, the old excitation system in the remaining two
units of Trishuli Hydropower Station has been replaced with
new static digital excitation system. The RMU project for reha-
bilitation of Devighat Hydropower Station, consisting of design,
manufacture, testing, supply of 3 numbers of 5 MW Turbine,
completed last year is performing well & its warranty period
has completed recently. The intermittent operation of Gandak
Hydropower Station in the recent past has been a concern.
Government of Nepal and NEA has jointly made budgetary pro-
vision to address the problems in its generator and turbine
runner assembly. Renovation of excitation and control system

A YEAR IN REVIEW
FISCAL YEAR 2011/12

of Seti Hydropower Station is at its final stage. The rehabilita-
tion of Panauti Hydropower Station is underway. Its Unit No.
2 generator is being repaired which is at its final stage and
Unit No. 1 & 3 is likely to be completed in coming fiscal year.
Rehabilitation & upgrading of electromechanical system of
Sundarijal Hydropower Station is proposed for 2012/13 in the
second phase of ADB aid program. The penstock alignment
of llam Hydropower Station due to fragile geology in the vicin-
ity is under close watch and all possible temporary measures
with crack filling, repair works with high strength concrete in
forebay, head tank, improving penstock support blocks etc.
have under taken. The functioning of headworks of Modi Khola
Hydropower station has been a concern since its commission-
ing. Study for the possibility of modification of headworks of
this Hydropower Station is underway with formation of Expert
Team. Total generation from Medium Hydropower stations is
404.18 GWh in FY 2011/12, which is 3.26% more than that of
previous fiscal year, while particular note is made of the record
generation by Sunkoshi power station this year. Key challenges
for increasing generation from power stations remain the en-
forcement of maintenance schedule, reducing downtimes, im-
parting skills and operating prudence.

The following sections provide a concise description of the
power stations and highlight major activities carried out under
this department during the fiscal year.

.
a
क

1. Trishuli Hydropower Station
Trishuli Hydropower Station, located at Trishuli, Nuwakot,
previously with installed capacity of 21 MW consisting
of 7 units each of 3 MW commissioned in 1967 AD was
rehabilitated in 1995 AD and upgraded to 24 MW with
6 units each of 3.5 MW and one unit of 3 MW. The re-
placement of excitation cubicles in remaining two units
has been completed and the replacement of existing SF6

breaker carriages with VCB carriages is underway and
installation of electrical control cubicles of the governors
of Unit No. 1, 2 & 3 has been completed. Leaking gate
No. 4 & 5, highly eroded Seal Beam & SS Plate has been
repaired & high strength concrete M60 has been applied
in eroded concrete areas.

Gandak Hydropower Station

Gandak Hydropower Station, located at Surajpura, Nawal-
parasi with installed capacity of 15 MW and annual design
generation of 106.38 GWh was commissioned in 1979
AD. The ongoing repair and maintenance works of the
Main Western Canal carried out by Government of India
has largely resulted in the intermittent operation of the
power station. The overhauling of Unit No. 2 has been
completed while Unit No. 1 was down since 2065 B.S.
due to burning of Generator Stator Coil. This year 15.4%
higher energy was generated compared to previous year.
The intake section rehabilitation project financed by ADB
under EAEIP is under consideration.

Devighat Hydropower Station

Devighat Hydropower Station, located at Devighat, Nuwa-
kot with installed capacity of 14.1 MW and annual design
generation of 144 GWh was commissioned in 1984 and
rehabilitated recently in and its installed capacity has been
upgraded to 15 MW in 2011. The 105.1 GWh generation
this year is highest since FY 1999/2000.

Nepal Electricity Authority। 29

4.

Modikhola Hydropower Station

Modikhola Hydropower Station is located at Dimuwa, Par-
bat with installed capacity of 14.8 MW and annual design
generation of 92.5 GWh and which was commissioned in
2000 AD. New AVRs were installed in both the units and
combined bearing oil coolers in Unit no. 2 have been re-
placed. Civil repair works such as high strength concret-
ing on the downstream of under sluice has been com-
pleted. Presently, both units are in operation but frequent
choking of intake with boulders and high rate of sand
inflow from intake frequently disturb normal operation in
rainy season. In 2068/69 the power station generated
the lowest since its commissioning due to long shut down
for maintenance and frequent cooler failures.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

sin and head works repairing are the significant mainte-
nance works of this year. The power station has recorded
the highest generation of 66.38 GWh with PF of 75.40%
this year outperforming the previous best of 66.19 GWh
in 1999/00.

llam (Puwakhola) Hydropower Station

llam Hydropower Station is located at Golakharka, llam
with installed capacity of 6.2 MW and annual design
generation of 48 GWh. It was commissioned in 1999 AD.
The water leakage due to crack development at the head
tank/forebay has been repaired to some extent. The frag-
ile geology in the vicinity poise threat to the penstock
alignment especially during rainy season.

Sunkoshi Hydropower Station

Sunkoshi Hydropower Station, located at Lamosanghu,
Sindhupalchowk with installed capacity of 10.05 MW and
annual design generation of 70 GWh was commissioned
in 1972 AD. The replacement of turbine, head-cover
and wicket gate assembly in Unit No. 2, the installation
of overhauled power transformer, the application of RCC
high strength concrete in sloping part of the settling ba-

30। Nepal Electricity Authority

Chatara Hydropower Station

Chatara Hydropower Station is located at Chatara, Sun-
sari with installed capacity of 3.2 MW and annual design
generation of 6 GWh. It was commissioned in 1996 AD.
Overhauling of turbine runner assembly of Unit No. 2 and
repair and maintenance of Unit No. 1 are underway to
bring both the units into normal operation. The sharing
of water inflow with Sunsari-Morang Irrigation Project,
Biratnagar for irrigation purposes primarily restrains the
normal operation of this plant.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Panauti Hydropower Station

Panauti Hydropower Station, located at Khopasi, Panauti
with installed capacity of 2.4 MW and annual design gen-
eration of 6.97 GWh. It was commissioned in 1965 AD.
The rehabilitation of the units has been planned with GON
assistance. Presently, unit 1 is running at 400 to 500
Kw . Generator of Unit 2 is being repaired by NHE But-
wal. Unit 1 & 3 are scheduled to undergo major repair in
2069/070 under ADB/GON/NEA budget.

Seti Hydropower Station

Seti Hydropower Station, located at Nadipur, Pokhara with
installed capacity of 1.5 MW was commissioned in 1985
AD. The rehabilitation of excitation system along with
Switchgear control and protection system are underway
and is likely to be completed in 1st quarter of 069/070.
This year generation was affected due to heavy flood in
the river Seti.

10.

Fewa Hydropower Station

Fewa Hydropower Station, located at Pardi, Birauta,
Pokhara with installed capacity of 1 MW and annual de-
sign generation of 6.5 GWh, was commissioned in 1969
AD. The public encroachment of power canal and con-
sumptive use of water from the canal have always af-
fected the power station. The power canal has been
repaired this year.

Sundarijal Hydropower Station

Sundarijal Hydropower Station, located at Sundarijal,
Kathmandu with installed capacity of 640 kW and design
generation of 4.77 GWh was commissioned in 1934 AD.
Both of its units are in normal operation. The cracks de-
veloped in the number of anchor blocks of the penstock
has been repaired. Exciter coil rewinding in unit no. 1
and runner repair on unit no. 2 are the major works of
this year. The rehabilitation of electromechanical works is
underway with assistance from ADB and GON.

Nepal Electricity Authority। 31

12.

Pharping Hydropower Station

The first in Nepal and second in Asia, Pharping Hydropower
Station, is a century old hydropower station commissioned in
May, 1911 AD with installed capacity of 500 kW. It is located
at Setidevi VDC, Pharping, Kathamandu. It was erected with
a grant from British Government at a cost of NRs. 0.713
million. It is presently not in normal operation. A master plan
has been prepared to develop the site as Live Museum with
construction and establishments including model power sta-
tion of wind, solar and hydro and as a centenary celebration
memorial. Now only one unit is running for an hour in a day
due to water being utilized for drinking water supply.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Training Activities

Verious training programs in different fields of special-
ization were conducted for the staff of this Business
Group to enhance and upgrade their skill and knowl-
edge. Training program were conducted at Kulekhani।, Marsyangdi, Middle Marsyangdi and Kulekhani Il
Hydropower Stations to enhance inhouse capacity in
maintenance and overhauling works.

13.

Hetauda Diesel Power Plant

Hetauda Diesel Power Plant, with installed capacity of 14.41
MW, is located at Hetauda, Makawanpur, The first phase
with three Units was commissioned in 1963 and the second
phase with four Units was commissioned in 1980. The major
overhauling of all the seven units and the replacement of
MOCBs by VCBs with C&R panels were successfully completed
this year. The plant primarily stands up as a system backup.
The high fuel prices restrain its normal operation.

32। Nepal Electricity Authority

Training at Kulekhanii।

A YEAR IN REVIEW
FISCAL YEAR 2011/12

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Nepal Electricity Authority। 33

A YEAR IN REVIEW
FISCAL YEAR 2011/12

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34। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Grid Development

Business Group

Grid Development Business Group is responsible for de-
velopment and implementation of high voltage transmis-
sion system. This Business Group is headed by a General
Manager and has four departments, namely, Transmis-
sion Line Construction Department (220 kV and above),
Transmission Line Construction Department (up to132
kV), Power Development Project, and Cross Border
Transmission Line Project, each headed by a Director.

This Business Group builds new transmission lines and
substations to evacuate the power generated by both
NEA and IPP owned power plants and undertakes rein-
forcement of the existing transmission system. Nepal's
first-ever 220 kV transmission line is nearing completion.
This Business Group helps to develop and implement
cross border transmission lines which are emerging as
important links in the overall development of Nepal and
these links will play a pivotal role in the South Asia region
in future. The first high voltage cross border link from
Dhalkebar (Nepal) to Muzzafarpur (Bihar, India) at 400
kV double circuits is going to be executed very soon.

This Grid Development is moving ahead with short-term
as well as long-term transmission system plans as envis-
aged in Transmission System Master Plan.

Brief summary of projects under different stages of
development are presented below:

A. Transmission Line Construction Department up to

132kV

The key transmission lines and substations and the major
activities with regard to the development of these lines
under the jurisdiction of this Department are as follows:

Projects under Execution

Thankot — Chapagaon - Bhaktapur 132kV
Transmission Line

The project was started in FY 1998/99 with the objective
of enhancing transmission capacity, improving supply reli-
ability in Kathmandu Valley, reducing losses and voltage
drops through construction of 132kV ring main and was
scheduled to be completed in FY 2011/012. The project
is estimated to cost US$ 23 Million and will be jointly fi-
nanced by loan assistance of ADB and OPEC, GoN and
NEA.

The scope of the project includes the construction of 28km
Thankot-Chapagaon-Bhaktapur 132kV double circuit
transmission line, construction of a 132 / 11kV, 22.5MVA

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sub-station at Matatirtha, addition of 132 / 11kV, 45MVA
transformer at Bhaktapur, addition of 66/11kV, 45MVA
transformer at Balaju substation. Expansion and Upgrad-
ing of existing Balaju and Bhaktapur substation has been
completed and handed over for operation. The newly con-
structed Matatirtha Substation has been operated from
August 2011.

In case of 132kV transmission line works only 0.5km
transmission line in Matatirtha area has been constructed
to connect Matatirtha substation to INPS. Rest of trans-
mission line construction work has been stopped because
of right of way issues raised by local inhabitants of few
VDCs of Lalitpur District.

4 Circuit Tower at Matatirtha Substation for Loop in Loop
Out Connection from Siuchatar

Syangja 132kV Substation

The objective of this project is to improve the power
supply in Syangja and its vicinity and was started in FY
2008/09. Total project cost is estimated at US$6.6 Million
which is jointly financed by GoN and NEA.

The main activities of the project are construction of
132/33kV, 30MVA and 33/11kV, 8MVA substation. The
existing Kaligandaki-A Lekhnath 132kV transmission line
will be looped-in looped-out at Rang Khola of Shyangja
District to construct this substation.

As of end of FY 2011/12, Substation construction work
is about 95% completed. Substation testing and commis-
sioning work will be completed by Bhadra 2069.

36। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

. ~ os ~~ *
ज् छ न. एल न, Fe
Me. न" ना त,

Shyangja 132/33kV, 30MVA Substation under construction

Dumre — Damauli — Marsyangdi 132kV

Transmission Line

The objective of this project is to evacuate power gener-
ated by Middle Marshyangdi power plant, enhance the re-
liability of Middle Marshyangdi power plant and facilitate
the power evacuation from candidate hydro power proj-
ects of Marshyangdi Corridor. The objective also includes
enhancing the performance of INPS and reduces outage
frequencies of Bharatpur-Pokhara 132kV transmission
line. Cost of this project is estimated to be US$ 18.62 Mil-
lion which is jointly being funded by loan assistance from
ADB, GoN and NEA. The project started in FY 2008/09
and is scheduled to be completed in FY 2013/014.

The scope of project includes: the construction of 18 km
of double circuit transmission line from Dumre to Dam-
auli and 1km of four circuit loop-in loop-out transmission
line at Middle Marshyangdi power plant, stringing of 39
km 132 kV second circuit transmission line from Middle
Marshyangdi to Dumre and construction of 132/33kV,
30MVA substation at dam site of Lower Marshyangdi
power plant.

Construction work for this project has been divided into
two packages. As of end of FY 2011/12, for Transmis-
sion Line Construction Package, Environmental Study and
Survey work has been completed; Tower Design Work has
also been completed. Hardware and fittings are about to
be delivered to the site. Row clearance is in progress.
Contract for Substation Construction Package has been
awarded, L/C has been opened and copy sent to ADB for
L/C commitment. Substation staff quarter, boundary wall
construction works are in progress.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Butwal — Kohalpur-Mahendranagar 132kV
Transmission Line Second Circuit

The project is divided into two parts, one is from Butwal
to Kohalpur and second part is from Kohalpur to Mahen-
dranagar. First part was started in FY 2008/09 with US$
13.8 million loan assistance from ADB and NRs. 276.4
million from GoN and NEA and this project is scheduled to
be completed in FY 2013/014.

The main objective of this project is to supply increased
power to Western Nepal, to meet growing electricity de-
mand in the area, to supply upcoming cement factories
and evacuate power from Chameliya Hydropower plant,
power to be received from Upper Karnali. It is also target-
ed to import additional power from Tanakpur via this line.
The summary output of the project include: 132kV sec-
ond circuit stringing on existing double circuit towers
between Butwal and Kohalpur (208km), replacement of
existing ground wire between Butwal and Kohalpur with
Optical ground wire (208km), addition of one 132kV
line bay at Butwal substation, addition of two 132kV line
bays at Shivapur substations, addition of one 132kV line
bay, one 20MVar capacitor bay, one 132/33kV, 30MVA
transformer bay at Kohalpur substation. Also included in
the project is construction of new 132kV substation at
Kusum with five 132kV line bays, one 132/11kV, 30MVA
transformer bay, 12kV switchgears and associated lines,
one control building and double bus bar.

As of end of FY 2011/12, bids for the project have been
invited in two lots one for substation work and another for
transmission line work. Construction contract has been
signed for both packages, construction license has been
acquired, land for Kusum substation has been acquired,
L/C for both packages has been opened, Optical Ground
Wire, Hardware and Fitting have been received at site
for Transmission Line Package and Substation Equip-
ment Power Transformer, 132kV Circuit Breakers, Battery
Charger received for Substation Construction Package.
Second part was started in FY 2011/012 with US$26.7
million loan assistance from ADB including funding by
NEA and it is scheduled to be completed in FY 2014/015.
Estimate for this phase has been approved and draft ten-
der document has been sent to ADB for approval.

Capacitor Banks at Grid Substations

The objective of this project is to improve the voltage and
reduce the losses through installation of capacitor banks
in grid substations. Cost of this project is estimated to

be around US$ 2.2 Million and it is being jointly funded
by loan assistance of ADB, GoN and NEA. The project is
estimated to be completed by FY 2012/013.

The project scope includes installation of 330
2X12.5MVar at Bharatpur, 2X12.5MVar at Dhalkebar,
2X20MVar at Butwal and 11kV 3X5MVar at Simra, 2X5M-
Var at Hetauda, 2X10MVar at Siuchatar, 2X10MVar at
Patan, 2X12.5MVar at New-Baneshwor, 2X12.5MVar at
Balaju and 2X12.5MVar at Chabel substations.

Construction works at Butwal, New Chabahil and Banesh-
wor Grid Substation has been completed and already put
into operation. Installation, testing and commissioning of
works at Balaju substation is nearing completion. Re-
maining work is expected to be completed soon.

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. क ा a
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छ र् ७५

Capacitor Bank Installed at Butwal Substation

Chapali 132kV Substation

Project is divided into two parts. Objective of the first part
of the project is to cater to the increased residential and
commercial demand of Kathmandu North and to improve
power supply reliability. The project started in FY 2008/09
and is scheduled to be completed in FY 2013/014. Total
cost of the project is US$ 16 Million and it is being jointly
financed by loan assistance of ADB, GoN and NEA.

The main output of the project includes 132/11kV, 30MVA
substation at Chapali, 66kV GIS bay at Lainchhour substa-
tion and Chabahil-Lainchhour 7.7 km long interconnection
by 66kV underground cable. In the second phase there is
a plan to develop Chapali Substation link with 132kV and
66kV installing 132/66kV, 45MVA Transformer.

As of end of FY 2011/12, land required for the substation

has been acquired and construction contract has been
signed. L/C opening for the equipment is in progress.

Nepal Electricity Authority। 37

Second part of Chapali Substation Expansion Project was
started in FY 2011/012 with US$23.0 million loan assis-
tance from ADB and NEA and it is scheduled to be com-
pleted in FY 2014/015. The main output of the project
includes 132/66kV, 2X45MVA Transformers at Chapali,
132kV GIS bay at Balaju substation, 132kV Bay at Bhak-
tapur Substation and 4X 66kV Bays at Chapali Substation
to make Double Circuit Connection from Balaju to Bhak-
tapur and 132/66kV Link to Kathmandu Valley.

Estimate for this phase has been approved and Draft Ten-
der Document has been sent to ADB for approval.

7. Matatirtha Substation Expansion

Objective of the project is to cater to the increasing elec-
tricity demand of Kathmandu West as well as to supply
United Cement, Naubise and Laxmi Cement, Lalitpur. This
substation will also help to relieve overloaded Siuchatar,
Teku and New-Patan substations feeding core areas of
the Kathmandu Valley. Cost of this project is estimated
to be US$ 3.3 million and is being jointly funded by loan
assistance of ADB, GoN and NEA. The project was started
in FY 2008/09.

Main project activites include: Addition of 132/33kv,
30MVA transformer, 33kV and 11kV switchgears at exist-
ing Matatirtha substation and 132/11kV, 22.5MVA trans-
former at Bharatpur substation.

132kV Equipment Foundation Work at Matatirtha Substation

As of end of FY 2011/12, civil works at Matatirtha and
Bharatpur Substations are in progress, some of the
equipments have been received at site.

8. Kabeli 132kV Transmission Corridor

Objectives of this project are to facilitate evacuation of
power generated from Kabeli-A Hydro Power Project

38। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

and power produced from Hydro Power Projects in Ka-
beli, Hewa, Mai and other rivers in the eastern region.
Construction of transmission line and associated sub-
stations will meet the increasing electricity demand of
Damak area, relieve Anarmani substation and improve
power supply situation in this part of the country. Cost
of this project is estimated at US$ 31 Million and funded
by WB, GoN and NEA. Project was started in FY 2008/09
and Damak Substation is estimated to be completed by FY
2012/013; Damak-Kabeli 132kV DC Transmission Line
and Illam, Phidim, Kabeli Substationsare estimated to be
completed by FY 2013/014.

The scope of the project includes construction of 90 km
of double circuit 132kV transmission line from Damak to
Kabeli. In addition, the project also includes construction
of:

i)  132/33/11kV Damak substation with 132/33,
30MVA and 33/11kV, 8MVA transformers,

ii) 132/33/11kV Illam substation with 132/33kv,
30MVA and 33/11kV, 3MVA transformers,

ii) 132/33kV Phidim substation with 132/33, 2OMVA
and 33/11kV, 3MVA Transformers and

iv) 132/33/11kV Kabeli substation with 132/33k\,
30MVA, 33/11kV, 3MVA transformers.

Project status as of end of FY 2011/12, includes comple-
tion of transmission line survey works, IEE, acquisition of
land required for substations, detailed engineering study
of the transmission. Control building, equipment founda-
tion of Damak Substation are almost completed, Power
and Station Transformers, Capacitor Bank, Control Relay
Panel for Damak Substation have been received at the
site, contract agreement for construction of Illam, Phidim
and Kabeli substation has been signed.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Pathlaiya 132kV Substation

Objective of this project is to provide adequate supply
to the Birgunj industrial corridor, improve quality of sup-
ply and reduce technical losses in the area. The project
started in FY 2008/09 and is scheduled to be completed
in FY 2012/013. Cost of this project is estimated to be
US$ 5.4 Million and is being jointly funded by loan assis-
tance from WB, GoN and NEA.

The Project activities include construction of 132/11kv,
22.5MVA substation at Pathlaiya, 24km of 11kV distribu-
tion line and replacement of existing earth wire by OPGW
conductor from Pathlaiya to Birgunj and Old Parwanipur
to Simra substation.

As of end of FY 2011/12, 85% of substation construc-
tion work has been completed including installation and
erection of the substation equipments.

Singati-Lamosangu 132kV Transmission Corridor

Objective of this project is to evacuate power from dif-
ferent hydroelectric projects to be developed by different
IPP's in the Tamakoshi-Singati basin. Total cost of the
project is about US$ 13 million. The project was started in FY
2008/09 and is scheduled to be completed in FY 2012/013.

Project will construct Lamosangu-Singati 40 km 132 kV
Double Circuit Transmission Line and 132/33 kV, 30 MVA
substation at Singati and the Bay extension at Lamosangu
Substation will also be carried out.

As of end of FY 2011/12, Route alignment survey, Check
Survey and Tower Spotting for transmission line has been
completed. IEE study has been completed and the de-
sign of the Towers has been approved. Major substation
equipments like CT, PT and DS have been received at site.
The power transformer and the SF6 CB are under delivery
stage. Conductors and Hardware Fittings have been re-
ceived at the site for the Transmission Line Package and
land has been acquired for substation. Civil work for Staff
Quarter and Boundary Wall is completed. Construction of
approach road, Switch Yard, and Control Building are in
progress.

. Hetauda-Kulekhani-Il-Siuchatar 2nd Circuit 132kV

Transmission Line
Objective of this project is to increase power evacua-
tion capacity from the different IPP's and reinforcement

Million and it is being funded by GON.

Scope of the project includes stringing of 45 km sec-
ond circuit on the Hetauda-Kulekhani-Il-Siuchatar 132
kV Transmission Line. It also includes the bay extension at
substations and reinforcement work on existing 132kV Line.

As of end of FY 2011/12, contract has been signed for
Transmission and Substation packages. L/C opening for
Substation package is in progress and so is the mobiliza-
tion payment for Transmission Line Package.

Funding Secured Projects

1.

Modi-Lekhnath 132kV Transmission Line

Objective of this project is to increase power evacuation
capacity of the IPP's up coming in the Modi-Lekhnath
Corridor. Scope of the project includes construction of
132kV Double Circuit Transmission Line from New Modi to
Hemja Substation to Lekhnath Substation, Switching Sub-
station at New Modi and 30MVA New Substation at Hemja.
Cost of this project is estimated to be US$ 14.8 Million
and it is being jointly funded by Exim Bank of India and GoN.
The project is scheduled to be completed by FY 2014/15.

As of end of FY 2011/12, detail survey has been com-
pleted. The MoU has been signed with Environment and
Social Study Department for IEE study and ToR for the
work has been received.

Solu Corridor (Katari-Okhaldhunga-Solu) 132kV
Transmission Line

Objective of this project is to increase power evacuation
capacity of the IPP's coming up in the Solu Corridor.
It also includes the expansion of INPS. Construction of
90km of Double Circuit Transmission Line with CARDINAL
conductor from Tingla (Solu) substation to Mirchaya and
132/33kV New Substation at Tingla is the main output of
the project. Cost of this project is estimated to be US$
26.5 Million and it is being jointly funded by Exim Bank of
India and GON. The project is scheduled to be completed
by FY 2015/016.

As of end of FY 2011/12, Detail Survey Work and Envi-
ronment Study have been completed, Tender Document
Preparation work is in progress and an officer has been
designated for Land Acquisition work. The land acquisi-
tion process has already been started.

of INPS. The project is scheduled to be completed in FY Survey/ IEE Study Completed Projects

2012/013. Cost of this project is estimated to be US$ 2.5

1.

Kohalpur-Surkhet 132kV Transmission Line, 50 km

Nepal Electricity Authority। 39

छा के: wD

Sunkoshi 132kV Substati on, 15 km

Ramechap — Garjyang —Khimti 132kV Transmission Line, 30 km
Madi-Lekhnath 132kV Transmission Line, 22 km
Gulmi-Arghakhanchi-Chanauta 132kV Transmission Line,
110 km

Tadi Corridor (Samundratar-Trishuli 3B) 132kV
Transmission Line, 20 km

Hapure-Tulsipur 132kV Transmission Line, 18 km

Dordi Corridor (Kirtipur-Udipur/Marsyangdi)
Transmission Line, 16 km

Feasibility Study Completed Projects

1.

Oo BR ७०

Karnali Corridor (Lamki-Upper Karnali) 132kV
Transmission Line, 60km

Bajhang-Deepayal-Attariya 132kV Transmission Line,
130 km

Surkhet-Dailekh-Jumla 132kV Transmission Line, 107 km
Kaligandaki-Gulmi (Jhimruk) 132kV Transmission Line, 43 km
Dhalkebar-Loharpatti 132kV Transmission Line, 20 km
Butwal-Lumbini 132kV Transmission Line, 22 km

Projects under Feasibility Study

1.

Baneshwor-Bhaktapur 132kV DC Under Ground Cable
Transmission Line, 12 km
Budhganga-Umedi-Pahalwanpur 132kV Transmission
Line, 75km

Balefi-Barhabise 132kV Transmission Line,25km
Rupeni 132kV Substation

Projects for Power Supply to Cement Industries

In order to promote cement industries, the GoN has taken
a policy of developing transmission line and road net-
works up to the site of the cement industries. The budget
was allocated under the Ministry of Industry. A minute of
understanding was signed between Ministry of Industry
(Mol) and NEA with regards to development of transmis-
sion line. According to the understanding NEA will execute
the transmission line project as per the instruction of Mol
which in turn will provide required funds. Projects aimed
for power supply to cement industries at different stages
of implementation are as follows:

Kamane, Hetauda 132kV Substation

The main objective of this project is to provide power
supply to Shivam Cement located at Hetauda. The project
was started in FY 2008/09 with an estimated cost of US$
3.5 million and is financed by GON.

The main project output includes construction of a new
132/33kV, 30MVA substation at Kamane and construc-
tion of 11 km of 33kV sub transmission line from Kamane

40। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

to Laxmipur and Phaparbari.

As of end of FY 2011/12, Construction of 11km of 33kV
sub transmission line is almost completed. Approval of
IEE report and contract agreement for the substation
work . Land for Substation Construction has been allo-
cated by Ministry of Forest. Approval of the Equipment
Design Drawing has almost been completed. Major equip-
ment like Power Transformer, communication equipment,
protection equipment has already arrived at the site. The
casting of the slab of the control building under the civil
works is completed. Super structure work for staff quar-
ter and store building is in advanced stage. Switchyard
foundation work is in progress. Project is expected to be
completed by November 2012.

Kusum - Hapure 132kV Transmission Line

The main objective of this project is to develop transmis-
sion system up to the site of Dang Cement to be estab-
lished at Hapure of Dang. Further extension of this line
will benefit Sonapur and Rolpa cements. The project was
started in FY 2008/09 with an estimated cost of NRs.
500 Million and is financed by GON.

Main activities of the project include: construction of
22km Kusum-Hapure 132kV transmission line and
132/33kV, 30MVA substation at Panchakule of Dang.
Project achievement till date includes: land acquisition for
substation, construction of staff quarter, boundary wall,
and control building, switchyard and contract agreement
for both transmission line and substation construction
works. Power Transformer, Fiber Optical Cables have
been received at site and the arrival of other equipment
is in process.

Hapure 132/33kV, 30MVA Substation under Construction

Mirchaiya-Katari 132kV Transmission Line

The objective of this project is to provide power supply to
Maruti Cement Industry to be estabilished at Katari. Cost
of this project is estimated to be NRs. 675 Million and it

A YEAR IN REVIEW
FISCAL YEAR 2011/12

is being funded by GoN. The project is scheduled to be
completed by FY 2012/013.

Project components include construction of 25 km 132
kV double circuit transmission line from Mircahaiya to
Katari and construction of 132/33 kV, 30 MVA substa-
tions at Mirchaiya and Katari. For this purpose one cir-
cuit of existing Dhalkebar — Lahan 132kV line will be
looped-in and looped-out at Mirchaiya in Siraha district
to extend the 132kV transmission line to Katari.

Transmission line route survey has been completed and
TOR for IEE study has been submitted for approval.

Lamahi-Ghorahi 132kV Transmission Line

The objective of this project is to provide power sup-
ply to Ghorahi Cement Industry and Ghorahi Municipality.
Cost of this project is estimated to be US$ 6.5 Million
and GON through Ministry of Finance has allocated the
budget for this work. The project is scheduled to be
completed by FY 2014/015. Project components include
construction of 15 km 132 kV double circuit transmis-
sion line from existing Lamahi Substation to Laxmipur
VDC Goglee and construction of 132/33 kV, 30 MVA
substations at Laxmipur VDC Goglee.

As of end of FY 2011/12, substation bids has been ap-
proved by the management and construction contract
has been signed with M/S CWE-NHE JV. The re-invitation
of the Transmission Line Bid is in process (As no Bid-
ders took part in the first Bid invitation).

Matatirtha-Naubise 33kV Transmission Line

The objective of this project is to provide power supply
to United Cement. GoN through Ministry of Finance has
allocated the budget for this work. Cost of this project is
estimated to be US$ 3.06 Million. The project is sched-
uled to be completed by FY 2014/015. Project compo-
nent includes construction of 10 km of 33 kV Double
circuit sub transmission line from Matatirtha to Naubise,
33/11 kV and the construction of a 2X8 MVA Substation
at Naubise.

As of end of FY 2011/12, Substation Construction Ten-
der has been called. The preparation of the estimate for
the Transmission Line has been completed. Land Acqui-
sition has been finalized with Cement Industry.

Matatirtha- Malta 33kV Transmission Line

The objective of this project is to provide power sup-
ply to Laxmi Cement. Cost of this project is estimated
to be US$ 5.33 Million and GoN through Ministry of Fi-

nance has allocated the budget for this work. The project
is scheduled to be completed by FY 2014/015. Project
component includes construction of 30km of 33kV Dou-
ble circuit sub transmission line from Matatirtha to Malta,
33/11kV and the construction of a 2X16.5MVA Substa-
tion at Malta.

As of end of FY 2011/12, Letter of Intent has been is-
sued for Construction of 33/11kV Substation. Preparation
of Tender for 33kV Sub-Transmission Line is in final stage.

Tulsipur-Kapurkot 33kV Transmission Line

The objective of this project is to provide power supply
to Rolpa Cement P. Ltd. Cost of this project is estimated
to be US$ 0.4 Million and GoN through Ministry of Fi-
nance has allocated the budget for this work. The project
is scheduled to be completed by FY 2014/015.

As of end of FY 2011/12, Tender has been called for
construction of 16 km of 33kV transmission line from
tapping point at Tulsipur substation (Salyan) up to the
proposed substation construction site at Kapurkot.

Transmission Line Construction Department
220kV and above

The key transmission lines and substations and the major
activities with regard to the development of these lines
under the jurisdiction of this Department are as follows:

Projects under Execution

Khimti — Dhalkebar 220 kV Transmission Line

The project was started in FY 2002/03 with the objec-
tive of enhancing transmission capacity, improving sup-
ply reliability, reducing losses and voltage drops through
construction of 220kV double circuit line and is sched-
uled to be completed in FY 2012/13. The project cost is
estimated at US$ 22 Million and is jointly funded by World
Bank, GoN and NEA.

The scope of the project includes construction of 75 km
long Khimti-Dhalkebar 220kV transmission line on double
circuit tower with single circuit of twin Bison ACSR conduc-
tor (initially charged at 132kV) and two nos. of 132kV line
bays at Khimti and Dhalkebar substations in first phase
and stringing of second circuit in the second phase.

As of end of FY 2011/12, in the first phase of work,
supply of line materials and substation equipment is com-
pleted and the construction of transmission line is 95%
completed. The rest of the construction work has been
interrupted because of right of way issues raised by local
inhabitants of Sindhuli District whereas bay extension is
in ready position. Contract has been signed for second
phase of work and supply work is in progress.

Nepal Electricity Authority। 41

Hetauda - Bharatpur 220kV Transmission Line

The objective of the project is to enhance the transmis-
sion capacity and reliability of the Integrated Nepal Power
System (INPS) and to evacuate the power to be gener-
ated by other hydro power plants from western region of
Nepal. Cost of this project is estimated to be US$ 24.25
Million and it is being funded jointly by loan assistance of
WB, GoN and NEA. The project was started in 2009.
Construction of about 75 km long double circuit Hetau-
da-Bharatpur transmission line initially to be strung as
a single circuit 220kV transmission line and associated
132kV substations are being taken up. The substation
components include expansion of existing Hetauda and
Bardghat substations and construction of New Hetauda
and New Bharatpur substations. New Hetauda substa-
tion shall comprise of 132kV line bays and bus coupler
bay while New Bharatpur substation shall comprise of
132kV line bays, bus coupler bay, transformer bay and
132/11kV, 22.5MVA power transformer.

As of end of FY 2011/12, Final Route Alignment Survey
has been approved. Acquisition of Land for Tower Foun-
dation is in final stage. RoW Clearance work is in prog-
ress. Earth Wire and OPGW cable dispatch order has been
made. ACSR BISON conductor, Insulators, Hardware Fit-
tings, 99 nos of Tower accessories have been received at
the site. 22 Tower Foundations are completed on Trans-
mission Line Construction side.

Civil works for control building, store house, guard house
and staff quarter on New Hetauda Substationis is in its
final stages. Substation equipments including Power
Transformer, SF6 Circuit Breakers, Battery and Battery
Chargers has been delivered at site on Substation Con-
struction Part.

Bharatpur - Bardghat 220kV Transmission Line

The objective of the project is to enhance the transmis-
sion capacity and reliability of the Integrated Nepal Power
System (INPS) and to evacuate the power to be gener-
ated by other hydro power plants from western region
of Nepal. Cost of this project is estimated to be US$ 17
Million and is being funded jointly by loan assistance of
WB, GoN and NEA. The project was started in 2009 and it
is scheduled to be completed by the beginning of FY 2013/014.
The main output of the project is the construction of 75
km Bharatpur-Bardghat 220kV double circuit transmis-
sion line.

As of end of FY 2011/12, alignment and detail survey
has been completed. Design and Testing of transmission
line materials is in the final stage. Site delivery of line
materials has already commenced (about 70% of ACSR

42। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Conductors has been delivered to site). Right of Way
Clearance (forest and other land) is in progress.

Funding Secured Projects

1.

Tamakoshi -Kathmandu 220/400kV

Transmission Line

Objective of this project is to increase power evacu-
ation capacity of the IPP's coming up in the Khimti
(Tamakoshi)-Kathmandu area and increase cross border
transmission capacity enhancement. Project will construct
85km of Double Circuit 400kV Transmission Line but it
will initially be charged at 220kV, 220/132/11kV. 1OOMVA
Substations at Barhabise and Mulpani (Kathmandu) will
also be constructed. Cost of this project is estimated to
be US$ 88 Million and is being jointly funded by ADB and
GON. The project is scheduled to be completed by FY
2015/016.

As of end of FY 2011/12, desk study & field reconnain-
ance survey from Tamakoshi to Mulpani (Kathmandu)
220kV has been completed. Revision of the survey for
400kV Line from New Khimti to Barhabise to Mulpani
(Kathmandu) has been started by Project Development
Department with a changed scope . The New Khimti to
Barhabise reconnaissance survey has been completed
within the changed scope. The report has been received.
Evaluation on Expression of Interest for Consultant ap-
pointment is going on. Land Selection work for Substation
Construction has been completed.

Koshi 220kV Transmission Corridor

Objective of this project is to increase power evacuation
capacity of the IPP's coming up in the Koshi Corridor and
expansion of INPS. Main output of the project is construc-
tion of 110km of 220kV Double Circuit Transmission Line
from Khandbari to Baneshwor to Basantapur to Inaruwa,
Construction of 65km of Double Circuit Transmission Line
from Lelep to Hangpang to Basantapur, construction of
220/132/33/11kV, 250MVA Substation at Basantapur,
construction of 220/132/33/11kV, 2X75MVA Substations
at Khadbari, Baneshwor, Hangpang and Lelep. Cost of
this project is estimated to be US$ 90.0 Million and it is
being jointly funded by Exim Bank of India and GoN. The
project ewas started in 2065/066 (2008/09) and it is
scheduled to be completed by FY 2014/015.

As of end of FY 2011/12, detail survey from Inaruwa to
Basantapur to Khadbari has been completed. MoU for the
survey work has been signed for Basantapur to Hagpang
to Lelep consisting of 65km. Additional scope and the
Desk Study Report has been received for the project from

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Project Development Department, Engineering Services .
IEE Draft Report of Inaruwa-Basantapur-Khadbari trans-
mission line has been approved by Ministry of Energy.
Preparation of ToR is in final stage for Consulting Servic-
es. An officer has been designated for Land acquisition.

Marsyangdi-Kathmandu 220kV Transmission Line
Objective of this project is to increase power evacuation
capacity of the Marsyangdi Corridor and INPS system
reinforcement. Main scope of the project is to construct
85km of Double circuit Transmission Line with 2X MOOSE
Conductor from New Marsyangdi to Naubise to Matat-
irtha, 220/132/33/11kV Substation at Naubise. Cost of
this project is estimated to be US$ 35.0 Million and it is
being jointly funded by Exim Bank of India and GoN. The
project was started in FY 2009/10 and it is scheduled to
be completed by FY 2014/015.

As of end of FY 2011/12, detail survey and reconnais-
Sance survey work has been completed. EIA report has
been submitted to Ministry for approval. Substation Land
Acquisition at Marchichwok is completed. Distribution of
compensation has been completed. Contract has been
signed for the construction of compound wall and Mobiliza-
tion payment has been released for the work. Land acquisi-
tion process at Naubise and Matatirtha has been started.

Survey/ IEE Study Completed Projects

1.
2.

छा तले छन 09 >

Marshyangdi Corridor 220kV Transmission Line, 90 km
Kaligandaki (Dana-Kusma-New Butwal) 220kV
Transmission Corridor, 110 km

Chilime-Trishuli 220kV Transmission Line, 40 km
Lekhnath-Damauli 220kV Transmission Line, 45 km
Feasibility Study Completed Projects

Trishuli 3B 220kV HUB Substation

Hetauda-Butwal 400kV Transmission Line, 168 km
Butwal-Lamki 400kV Transmission Line, 300 km
Lamki-Mahendranagar 400kV Transmission Line, 102 km
Duhabi-Anarmani 400kV Transmission Line, 100 km

Projects under Feasibility Study

1.
2.

Marsyangdi-Bharatpur 220kV Transmission Line, 25 km
Damauli-Bharatpur 220kV Transmission Line, 40 km

Power Development Project — Part C

Power development project (PDP) was originally ap-
proved by the World Bank board on May 22, 2003 for
SDRs 55.25 million. It had three components, and Power
Development Project implemented by Nepal Electric-
ity Authority (NEA) is one of them. Additional finance
was provided on May 26, 2009 to further enhance NEA
components, taking the total project amount to SDRs

93.81 million. These funds were provided to address the
prevailing power crisis in Nepal through rehabilitation of
generation capacity, strengthening of the transmission
system, and expansion of distribution access.

Original NEA components include construction of Chaan-
dranigahpur sub-station, the Distribution and Rural
Electrification Project and the Khimti-Dhalkebar 220 kV
transmission line. At the time of restructuring, following
activities were started: Distribution System Rehabilitation
Project, Rehabilitation of the Hetauda diesel plant, Re-
habilitation of Kaligandaki-A plant, multi-fuel power plant
and the Pathlaiya substation, implementation of the inte-
grated financial management information system (IFMIS),
Hetauda-Bharatpur 220 kV transmission line, Bharatpur-
Bardaghar transmission line and conductor procurement
for Hetauda-Dhalkebar-Duhabi (HDD) line. The conduc-
tor procurement for HDD line was included under the PDP
in January 2011 to achieve financial closure of the Nepal-
India Electricity Transmission and Trade Project (NIETTP).
Chandranigahpur sub-station, the Distribution and Ru-
ral Electrification Project are now close to completion.
However, Khimti-Dhalkebar transmission line is only 90%
complete. Some of the local problems in the area have
delayed the progress to be made in Khimti-Dhalkebar
220 kV transmission line. Similarly, the Distribution Sys-
tem Rehabilitation Project, the Rehabilitation of Hetauda
diesel plant, rehabilitation of the Duhabi multi-fuel plant
and the Pathlaiya substation are proceeding well towards
completion by the project closing date (December 31,
2012). However, the Hetauda Bharatpur transmission
line has been significantly delayed due to rerouting and
delays in forest clearance. The forest clearance has now
been received and the contractor is trying to expedite
the works. It is likely that a significant proportion of the
activity would extend beyond the project closing date.
Similarly, the implementation of the Bharatpur-Bardaghat
transmission line has witnessed a delay in securing Forest
Clearance from the Ministry of Forests.

Additionally, three activities are yet to be procured (1)
Conductor for Hetauda-Dhalkebar-Duhabi line, (2) Reha-
bilitation of Kaligandaki-A plant and (3) Implementation
of the Integrated Financial Management Information Sys-
tem (IFMIS) and procurement of System Integrator (SI).
Although the project is closing on December 31, 2012,
the disbursement ratio currently remains low (58%).
The 144 MW Kaligandaki-A is the largest hydropower
plant in Nepal, providing nearly 22% of the electricity
supply. Although it is in urgent need for rehabilitation,
the identification of a technical solution has taken much
longer than originally anticipated.

Nepal Electricity Authority। 43

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Transmission and System Operation Business Group is entrusted with the key responsibilities of genera-
tion and transmission system planning, system operation, operation and maintenance of national grid
and trading of power. It is headed by a General Manager. The System Planning Department carry out
load forecasting, generation expansion planning and transmission system planning of the power system
of Nepal while System Operation Department performs the operation planning and real time system op-
eration. Similarly, Grid Operation Department carries out overall operation and maintenance of national
grid and Power Trade Department executes the trading of power with Independent Power Producers and
also carries out the business activities of power exchange and trading of power with India.

System Planning Department

In the context of increased private sector participation in elec-
tricity generation, and the Government of Nepal's 10,000 MW
in 10 years and 25,000 MW in 20 years plans made public in
recent years, the role of centralized generation planning by
NEA has become minimal.

However, least cost generation expansion plan is vital for any
utility to ensure reasonable cost of supply to the consumer.
After the entry of private sector in generation; different fac-
tors make the deterministic approach to least cost generation
expansion planning very complex. In the changed context, a
modified approach for generation expansion planning has be-
come inevitable.

Currently, Grid Impact Study (GIS) for new generation projects
is the main focus of System Planning Department (SPD). The
GIS analyzes the effect of new connection to NEA Grid. To en-
sure satisfactory operation of the NEA Grid in conformity with
the NEA Grid Code; requirement for additional transmission
lines, reinforcement in the network, and requirement for the
installation of capacitors and reactors are recommended.
SPD also identifies constraints in the grid that could pose
operational risk and that reduce efficiency due to outages in
the Integrated Nepal Power System (INPS). SPD also devel-
ops transmission configurations for evacuating power from
planned generation projects. For this, different technical stud-
ies such as load flow, short circuit, steady and transient stabil-
ity are carried out.

44

SPD also assists other departments of NEA by providing nec-
essary data and give suggestions regarding implementation of
planned projects.

In FY 2011/12, System Planning Department carried out num-
ber of technical studies at the request of NEA's different de-
partments. Notable among them are:

* — Study on compensation requirement in the INPS

* Load flow analysis of Hetauda-Birgunj transmission cor-
ridor

* Energy simulation study of West Seti (750 MW) Hydro-
power Project

० — Transmission system study for the NausalGad Storage Hy-
dropower Project (400MW)

* — System based analysis for the sizing of Nausalgad Hydro-
power Project

न Study on compensation requirement at Butwal sub-station

* — Load flow analysis for the extension of Chapali sub-station

* Transmission system study for the Upper Modi — A (42
MW) Hydropower Project

* — Transmission system study for the Kulekhani - Ill (14 MW)
Hydropower Project

* — Transmission system study for the Chamelia (30 MW) Hy-
dropower Project

* — Load flow and dynamic stability study of Tanahu (140 MW)
Hydropower Project

* — Load flow analysis for the bulk load of 5.9 MW of Saakha
Steel Industry in the Hetauda-Birgunj transmission cor-
ridor

A YEAR IN REVIEW
FISCAL YEAR 2011/12

In FY 2011/12, System Planning Department completed
Grid Impact Study for the following hydropower projects to
be developed in the private sector.

List of GIS conducted projects in FY 2011/12

S. N. Name of Projects "ay Connection Substation
1 Ankhu Khola 42.9 Upper Trishuli 3 'B' Hub substation.
2 Lower Khare 8.26 Singati substation.
3 Junbesi Khola Small 5.2 Tingla substation.
4 Madi Bhorletar 10 New Damuali substation.
5 Middle Bhotekoshi 102 Barhabise Hub substation
6। Rasuwagadhi 111 Chilime Hub substation
7। Singati Khola 16 Singati substation
8 Dordi-l 10.3 Udipur Hub substation
9। Bagamati Small 17 Kulekhani-।
10। Mai Cascade 4.5 Mai HPP
11। Idi Khola 0.975 Lekhnath substation
12। Ghalemdi Khola 4 Dana substation
13। Midim 3.4 Damauli substation
14। Upper Seti। 21 Hemja (Banskot) substation
15। Nyadi 30 Khudi (Tadi Kuna) hub substation
16। Mai 22 Godak substation (llam Hub, Kabeli Corridor)
17। Kabeli Bi 25 Kabeli substation
18। Lower Pheme Khola 3.5 Phidim substation
19। Super Dordi 'Kha' 49.6 Kirtipur (Dordi corridor) hub substation
20। Lower Jogmai Khola 6.3 llam substation (Godak hub)
21 Mai Cascade 7 Mai HPP
22। Phalakhu Khola 14.7 Trishuli 3 B hub substation
23। Upper Piluwakhola 9.622 Baneshwor substation
24। Solu 23.5 Tingla Substation
25। Hewa Khola 'A' 14.9 Phidim Substation
26। Lower Hewa Khola 9.5 Phidim Substation
27। Upper Mai 'C' 5.1 llam substation (Godak hub)

Grid Impact Study for the bulk load of 5 MW of Hulas Steel
Industry and 3.3 MW of Ashok Steel Industry in the Hetauda-
Birgunj transmission corridor were also carried out.

System Operation Department

As in the past years, Load Dispatch Centre has been work-
ing round the clock to keep the operation of the Integrated
Nepal Power System (INPS) on the right track through the use
of computer based Supervisory Control and Data Acquisition
(SCADA) system.

The availability of real time data and better communication
system have improved the overall availability of power stations
and transmission lines and has helped to minimize the time
required for restoration of the power system in case of black-
outs, thereby reducing loss of revenue. The magnitude of load
shedding was also reduced considerably.

For the continued smooth functioning of the system, it is

necessary that the data acquisition from the power stations
and substations be updated according to the latest changes/

45

modifications in the respective stations. The trained manpower
in the LDC has been able to keep the data up-to-date in the
SCADA software in the LDC. Besides the regular maintenance
works, new bays from upgraded substations and new substa-
tion Simara have been integrated into the SCADA software.
Around Rs.100 million revenue is being received annually by
leasing (to Nepal Telecom and other private companies) the
fibers from the fiber optic cable.

- — — 7 7 ा
ae ™ 2 ७ ७७ बह we, a

oe ae —

anes
' ron -
पी ना ng.
बि हे,

Control Center at Siuchatar, Kathmandu

Grid Operation Department

The Grid Operation Department is responsible for transmitting
reliable and quality power trom distant generators to various
load centers. It also provides connection facilities to IPPs and
Bulk Consumers at different voltage levels by entering into Con-
nection Agreement as per the NEA Grid Code. Another main
function of the Department is to look after the operation of 66
kV & 132 kV substations and transmission lines by carrying out
routine and breakdown maintenance such as: up-gradation,
extension, replacement and rehabilitation works including in-
stallation of necessary reactive compensation equipment. Un-
der this Department there are division offices in Kathmandu,
Hetauda and Butwal and branch offices in Duhabi, Pokhara and
Attaria.

Major Works performed in F/Y 2068/69 are as follows:

a. Transformer Upgrading, Reactive Compensation and

Substation Reinforcement Works (Completed)

This department has executed number of transformer
reinforcement and upgrading works in various substa-
tions. With the increase of power demand and below ac-
ceptable voltage level, up-gradation and rehabilitation of
power system equipment and installation of shunt capaci-
tor banks in different substations are being carried out.
Transformers that are being replaced are installed in

46। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

other substations after necessary overhauling and main-
tenance. Relocation of power transformers in different
substations is a cost effective way of load management.
The department has also completed some of the con-
nection facilities for evacuating power from power plants
owned by the Independent Power Producers (IPPs).

Various works executed by this department have sup-
ported to reduce forced outage rate caused by inad-
equate transformation capacity. The department carried
out and completed following major up-gradation and re-
inforcement works in FY 2068/69.

— Installation of new 132/66 kV, 45MVA transformer at
Parwanipur S/S.

— Shifting two 33/11 kV, 16.6 MVA transformers from
Duhabi S/S to Anarmani S/S.

— Commissioning of 66/11kV, 7.5MVA transformer at
Indrawati Power House.

— Rehabilitation work at Amlekhgunj S/S.

— Repair and Commissioning of damaged 33/11 kV, 8
MVA transformer at Butwal S/S.

— Repair and Commissioning of damaged 33/11kV, 5
MVA transformer at Dhalkebar S/S.

— Installation of new Air Compressor for pneumatic
breaker charging mechanism at Balaju S/S.

— a ie

2 क रे ;
> . : 44, र

Power Transformer at New Parwanipur S/S

Following major up-gradation & reinforcement works for

substation are initiated and are currently under progress

— Replacing 7.5 MVA transformer with new 30 MVA
transformer at 132/33 kV Lamahi S/S.

— Installation of new 132/33 kV, 30 MVA transformer
at Chandranigahpur S/S.

— Installation of new 22.5 MVA and 18 MVA trans-
formers at 66/11 kV Chabel and 66/11 kV Patan
S/S respectively.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

— Replacing 3 MVA transformer with new 16.6 MVA
transformer at 33/11 kV Chanauta S/S.

— Shifting each of the two 33/11 kV, 7.5 MVA trans-
former from Anarmani S/S to Attaria S/S and Lamki S/S.

— Shifting 33/11 kV, 3 MVA transformer from Attaria
S/S to Lamahi S/S.

— Replacing 5 MVA transformer with 10 MVA trans-
former at 132/33 kV Mahendranager S/S.

c. Relay Testing and Energy Meter Testing Works
Testing and calibration of more than 200 relays of differ-
ent types and more than 450 energy meters have been
carried out by the Relay and Meter Testing Group of this
Department in various Grid substations including some of
the meters owned by the IPPs.

d. Grid Connection Agreement
The Department has entered into the Grid Connection
Agreements with 21 IPPs (Independent Power Producers)
with a total combined capacity of 419.5MW.

e. Routine & Breakdown Maintenance Works

Routine Maintenance works were carried out as per
schedule for Substations and Transmission Lines.
Recently the Department acquired the capability for the
hot spot scanning through Thermal Surveillance Camera
provided by Statnett SF, Norway. These Cameras are being
used to identify the faulty points & hot spots in transmis-
sion lines, equipment and connection points. Problems so
identified have been rectified successfully before reaching
the breakdown point.

Power Trade Department

Power Trade Department is responsible for trading of electric
power both in domestic and cross border market. It is the sin-
gle window interface of NEA with Independent Power Produc-
ers (IPPs) for processing their application for Power Purchase
Agreement (PPA). Functions of Power Trade Department may
be broadly classified into three categories:

a. PPA Processing :
This function covers PPA processing activities up to and
including the conclusion of power purchase agreements.

b. PPA Implementation and Monitoring:
This function includes PPA administration and monitors the
testing and commissioning of IPP projects to commence
their commercial operation.

c. Operational Administration:
This function includes PPA administration after commercial
operation.

Hewa Khola (4,455 kW) and Lower Piluwa (990 kW) were com-
missioned during fiscal year 2068/69 thus augmenting the
system capacity by 5,445 kW. With these two projects the total
number of IPPs in operation reaches 25 with their combined
installed capacity of 181.67 MW. Similarly 22 projects of IPPs
with their combined capacity of 840 MW were noted to be un-
der construction.

During FY 2068/69, 23 new PPAs with combined capacity of
334 MW were concluded whereas PPAs of five projects for up-
grading their capacity by 20.72 MW in total were amended.
Besides this, PPAs for 90 projects with their combined capacity
of 926 MW are in progress.

The total number of PPAs concluded so far till FY 2068/69
stands at 104 with their combined capacity 1,574 MW.

Apart from 50 MW import under the Power Exchange Agree-
ment with India, a short term PPA for the import of 20 MW
power from January 1, 2012 to April 30, 2012 was concluded
with PTC India Limited.

Nepal Electricity Authority। 47

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Distribution and Consumer
Services East Business Group

The Distribution and Consumer Services, East
(DCSE) Business Group is entrusted with the key
responsibility of overall management of electricity
distribution network of NEA in Mechi, Kosi, Sagar-
matha, Janakpur, Narayani and Bagmati zones of
Nepal. The major activities of this Business Group
include operation, maintenance, rehabilitation and
expansion of the network up to the 33 kV volt-
age levels and consumer services such as new
consumer connections, meter reading, billing,
and revenue collection. The operation and main-
tenance of off grid small hydro power plants in
its area, also falls under the jurisdiction of this
Business Group. DCS East is the largest business
group of NEA in terms of number of employees
and business activities. Approximately 18% of the
total staffs of NEA are employed in DCS, East. Also,
DCS East is on the forefront to earn revenue for
sustaining operation and maintenance and devel-
opment activities of NEA.

DCS, East provides services to 64.65% of total
electricity consumers through 50 Distribution Cen-
ters spread over 34 districts of the country. This
Business Group is headed by a General Manager.
The General Manager is supported by one depart-
ment and four regional offices each headed by a
Director.

48। Nepal Electricity Authority

Performance Highlights

In FY 2011/12, total number of customers under DCS East
reached 14,78,557 an increase of 11.67 % over the last fiscal
year's figure.

Customer No of consumer
Category (% of total Sales %। Revenue %
consumers)

Domestic 93.63 41.50 41.381
Non-Commercial 0.49 4.19 5,81
Commercial 0.57 8.63 12.23
Industrial 1.69 39.12 35.18
Others 3.62 6.56 4,98

Similarly, in FY 2011/12, a total of 2191.31 GWh of energy
was sold earning a gross revenue of Rs. 14727.47 million, an
increase of 8.64% and 3.87% over the previous year's en-
ergy sales and revenue respectively. Industrial and Commercial
consumer categories combined together represent only 2.26%
of the total number of consumers but share 47.74% of total
sales. Similarly, the domestic consumer category represents
93.63% of total consumers but contributes only 41.5% to the
total sale.

Programs and Activities

As part of system reinforcement and expansion of the distribu-
tion systems, many activities, programs and the projects were
undertaken in FY 2011/12 to expand and improve the service
delivery. These programs and activities were executed by the
Department and Regional Offices. The main activities under-
taken are listed below:

Electrification Program

The program during the year under review focused on exten-
sions of the existing distribution system and on completion of
outstanding incomplete electrification works on a priority basis.
The activities of the program are spread over all the areas

A YEAR IN REVIEW
FISCAL YEAR 2011/12

under the jurisdiction of the DCS, East business group. During
FY 2011/12, four 33/11 kV transformers of 6/8 MVA capacity
and two 33/11 kV transformers of 10/13.3/16.6 MVA capacity
were charged at different substations of NEA.

Loss Reduction Activities

In FY 2011/12, special drives were initiated to reduce the
technical and non-technical losses. Feeder-wise loss evalua-
tion was made and extra load shedding hours were set for
high loss prone feeders. This practice was found to be effective
and losses of the many high loss prone feeders were brought
down substantially. At the same time, distribution centers were
assigned loss targets to achieve within the prescribed time
frame. This was also linked with the performance of concerned
distribution center chief and a significant loss reduction was
observed in many areas. The special efforts of the employees
and the support of the various institutions in controlling non
technical losses brought in good results in many areas. The
Business Group carried out regular monitoring of the feeders
and areas having more than 35% loss. The Loss Reduction
Committee was formed in many distribution centers under the
chairmanship of Chief District Officer. Loss reduction com-
mittee at center level issued directives to the concerned of-
fices to improve the loss situation. During the FY 2011/12, a
total of 2955 numbers of direct hooking was caught and Rs
16,701,384.89 was recovered from persons involved in direct
hooking. The Business Group also took action against 1103
customers for electricity pilferage and Rs 11,569,953.72 was
recovered from them. Similarly, 21.2 million units of electricity
was billed that was wrongly read due to CT/PT errors. Regular
monitoring, data downloading and analysis of the consumption
of large industrial and commercial consumers were augment-
ed, Significant loss reduction was observed in many high non
technical loss prone areas by the use of Ariel Bundle Conductor,
ABC. Upgrading of overloaded conductors and transformers
was also carried out to reduce the non technical losses. As per
NEA decision, the electromechanical meters of the consumers
of 25-50 kVA range are also being replaced with electronic
meters. Despite the adverse local work environment especially
in terai and some hilly areas, continued efforts and measures
taken to control losses brought fruitful results by bringing down
the distribution system losses to 21.72 % in this period.

Demand Side Management

With grant assistance from Asian Development Bank, DCS East
has initiated program to distribute 750,000 CFL lamps to im-
prove the power factor and voltage level in some selected ar-
eas of the country. Besides, installation of capacitor banks was
completed in Nepalgunj, Jaleshwor, Rajbiraj and Tanki-Sinuwari
substations and substantial voltage improvement has been ob-

served. Similarly, LV capacitor installation program is underway
to improve voltages of the distribution networks. The goods
have already been received and the program is expected to
complete in few months.

Project Highlights
Energy Access and Efficiency Improvement Project
Project for Energy Efficiency through Loss Reduction

This project has been started with the objective of reducing
technical losses in the distribution networks of Kathmandu val-
ley and Birgunj corridor. This project is jointly financed by Asian
Development Bank (ADB) and GON. The project has identified
27 distribution feeders with unacceptable level of loss in Kath-
mandu valley and Birgunj where rehabilitation is required. The
project is scheduled to be completed in 2013 AD.

Distribution System Augmentation Project

This project is jointly financed by Asian Development Bank
(ADB), GoN and NEA. The scope of the project includes: (i)
Construction of new 33/11 kV, 6/8 MVA substation at Baniyani,
Mirchaiya, Dhanusadham, Parual, Barathawa, Baskot, Kusma,
Mainapokhar and 11 kV switching station in Mirmi, Swoyambhu
& Mulpani and (ii) Construction of 95 km of 33 kV and 156 km
of 11 kV lines in the vicinity of substation area.

The construction of substations and interconnection feeders is
expected to complete in 2013.

33/11 kV substation construction at Baniyani, Jhapa

Distribution System Rehabilitation Project

The scope of the Project includes upgradation of distribution
substations at 10 locations viz Khanar and Inaruwa of Sunsari
district, Rupani of Saptari district, Janakpur of Dhanusha dis-
trict, Haripur of Sarlahi district, Chanauli of Chitawan district,
Bhairahawa of Rupandehi district, Ghorahi of Dang district,
Gulariya of Bardiya district and Tikapur of Kailali district. It also
includes construction of 68 km 11 kV line, rehabilitation of

Nepal Electricity Authority। 49

131 km of existing 11 kV distribution network, construction of
49 km 0.4 kV line using ABC Cable and rehabilitation of 155
km of existing 0.4 kV distribution network in above mentioned
districts. To ease the implementation, the Project has been split
into two Lots. Lot-1 covers all the works in Sunsari, Saptari,
Dhanusa and Sarlahi districts while Lot-2 covers the remaining
districts.

Upgradation work of distribution substations of both lots have
been completed adding 82 MVA capacity of 33/11kV power
transformers. The construction of new distribution network
and rehabilitation of existing distribution network will be com-
pleted during first trimester of F/Y 2069/070.

Project for Solar Powered Street Lighting and Grid-tied PV
Solar System

The ADB funded project aims to install solar powered street
lighting systems in some parts of five municipalities of the
Kathmandu valley. This project also aims at installing 100 KW
and 60 KW Grid-tied PV solar power systems in NEA Training
Centre, Kharipati and Bir Hospital, Kathmandu respectively.
Solar street light project will facilitate the promotion of so-
lar powered street lighting in historically important places of
Kathmandu valley. For the successful implementation of this
project, an advisory committee comprising of representatives
from Ministry of Local Development and members from other
stake holders has been set up. The project includes purchase
of solar powered street- lighting system, replacement/installa-
tion and setting up a system to ensure a smooth maintenance.
Around 1000 existing street lamps will be replaced by solar
energy which will reduce peak demand by 0.2 MW and save
about 700 MWh per year.

Energy Efficiency in lighting (CFL) Project

The success of the pilot CFL program which was launched in
21 locations of the country has encouraged NEA to design and
implement CFL distribution program in other part of country.
Under this program, around one million high quality CFLs with a
capacity of 12 W- 15 Wwill be distributed. The implementation
of the project is expected to begin from December 2012 and
the objective of this program is to reduce annual energy con-
sumption by 23 GWhr. About 500,000 residential customers
are expected to be benefited from this program. The project is
financed by ADB & GON.

Pilot Project for Public Private Partnership in Distribution
System

This project is jointly financed by ADB and GoN. The project
aims at enhancing the quality of service delivery and overall ef-
ficiency through Public Private Partnership program in the sec-

50। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

tor of electricity distribution. The scope of the project includes
procurement of the consulting services for the implementation
of Public Private Partnership in three distribution centers of
NEA. The consultants have submitted draft bidding document
and franchisee agreement which will be used in implementing
PPP in distribution.

Kathmandu Valley Distribution System Rehabilitation
Project

This project has been started with the objective of improving
the quality and reliability of the power supply and reducing
technical losses in Kathmandu valley. The project will also en-
hance the capacity of the distribution networks to meet the
growing energy demand in the Kathmandu valley. The project is
jointly financed by World Bank (WB), GoN and NEA. The scope
of the project includes addition & up gradation of distribution
transformers (735 nos.), extension & upgradation of 11 kV
and 0.4/0.23 kV line using covered conductors and ABC Cables
(650 km), installation of Switches and replacement of poles.
The contracts for procurement of line materials are complete
and construction work is in progress. The project is scheduled
to be completed in 2013 A.D.

Energy and Customer Accountability Enhancement Project
This Project focuses on NEA' efforts (a) to enhance account-
ability to its customers through (i) the improvement of services
to customers; (ii) the improvement of customer interface and
responsiveness by establishing easy and quick systems and
processes for new service registration to enhance customer
Satisfaction, and through easy and convenient any-time access
to customer information over the internet; (b) to build an ener-
gy accountability framework (metering and billing, verification)
and revenue collection system for large customers receiving
high voltage supply.

Consultant was appointed for this project which conducted few
workshops including inception workshop, bid process manage-
ment workshop, customer feedback and communication strat-
egy workshop and improving customer billing workshop. The
consultant has also submitted the draft bid document for pilot
implementation of remote meter reading. It has also submit-
ted the report on Customer Billing Enhancement in NEA and
Consumer Asset Codification Methodology. Field data collection
has almost been completed. The consultant is doing analysis of
these data to prepare the report. This assignment is also ex-
pected to be completed during first trimester of F/Y 2069/070.

Computerized Billing Project
The objective of the this Computerized Billing Project (CBP) is
to implement a common billing system in all the revenue col-

A YEAR IN REVIEW
FISCAL YEAR 2011/12

lection centers of NEA for improved billing and revenue collec-
tion processes in a modern, efficient and cost effective manner.
The system (Mpower) is in operation in 68 collection centers.
Computerized Billing Project has also implemented Handheld
Meter Reading Device (HHD) which is in operation in 27 differ-
ent collection centers. This has helped to reduce human error
during meter reading. The project has implemented computer
assisted interactive voice response service (IVR) in major col-
lection centers.

Bank through Payment System (Online Banking) has already
started for Ratnapark Distribution Center through Prime Com-
mercial Bank. This system will help customers pay their bills
without standing in queues. The use of IVR in this sector has
helped the customers to have information on payment dues
and other service.

The introduction of Any Branch Payment System (ABPS) cur-
rently implemented in 4 revenue collection centers (Ratnapark
DC, Baneshwor DC, Lagankhel DC and Pulchowk DC) will help
the customers to pay their bills easily on time. This system will
also help NEA to collect revenue and get analytical reports on
time.

The project targets to centralize the billing system of the col-
lection centers inside the Kathmandu valley within this Fiscal
Year. For this purpose a Billing Data Center shall be set up.
Bank through Payment System (Online banking) shall also be
extended to other banks. Billing information of the customer
shall be put on the internet such that customers can know their
respective billing history. Further Computerized Billing Project
plans to implement Mpower billing system and Handheld Meter
Reading Device in additional 20 collection centers within this
Fiscal Year.

Inauguration of Any Branch Payment System at Ratnapark
by Acting MD, NEA

33/11 kV, 6/8 MVA Substation at Dhulabari (Jhapa)

This project was started in FY 2009/10 to meet the growing
demand of Dhulabari and its vicinity. The project will help to
improve the quality of supply and reduce the technical loses
of the area. The scope of the project includes the construction
of 33/11 kV, 6/8 MVA substation at Dhulabari. The project is
funded by GoN and is scheduled to complete in 2012.

llam-Phidim-Taplejung 33 kV Transmission Line Project
The project includes the construction of 90 km of 33 kV, trans-
mission line in Fidim and Taplejung district. Construction of
33/11 kV 1.5 MVA Substation and 33 kV Bay at llam Substation
has been completed. Pole erection for 80 km line is complete
out of which conductor stringing in 60 km line is completed.
For supply, delivery, installation and commissioning of 3 MVA
substation at Taplejung and 33 kV Bay at Phidim Substation is
scheduled to be completed by FY 2012/13. Tender for material
supply and construction of remaining work of line has been
made.

Buipa-Okhaldhunga33 kV Transmission Line Project
(Khotang and Okhaldhunga Districts)

The scope of this project includes the construction of 32.5 km
of 33 kV transmission line, 35 km of 11 kV and 30 km of LV
distribution line and two 33/11 kV, 1.5 MVA substations one
each at Okhaldhunga and Khotang districts. Construction of
substation at Buipa (Khotang district) has been completed and
construction work at Okhaldhunga is in progress. Construction
of 32.5 km of 33 kV line, 35 km of 11 kV line and 18 km of
LV distribution line has been completed and construction of
remaining LV line is in progress.

Since, 33 KV line from Jaljale to Buipa is charged at 11 ky,
parallel 11 kV line is being constructed to free the existing 33
kV line to feed the Buipa substation. About 28 Km of 11 KV
line has been constructed so far and works for remaining 7
Km of line is in progress. The project is expected to complete
in FYO069/70.

Rasuwaghat-Khotang S/S and RE Project

Major works to be performed under this Project include the
construction of 14 km of 33 kV transmission line, one 33/11
kV, 1.5 MVA capacity substation at Rasuwaghat of Khotang dis-
trict, 90 km of 11 kV and 90 km of LV distribution lines in Kho-
tang district. Out of these, 6 km of 33 kV transmission line, 16
km of 11 kV line and 29 km of LV distribution line construction
have been completed. 33 KV Bay extension at Jaljale substation
has been completed.

Nepal Electricity Authority। 51

Bharatpur-Madi 33 KV Sub-transmission Line & R.E.
Project

This project is financed by the Govt. of Nepal (GoN) and is
being implemented for the electrification of Madi area and its
vicinity in Chitwan district. The scope of the project includes
construction of a 3 MVA 33/11 kV substation, 22 km of 33 kV
overhead line, 8 km of 33 kV underground line, 30 km of 11
kV line and 50 km of 0.4 kV line and installation of 30 distribu-
tion transformers. The project will provide electricity to about
11,000 households of the area. The construction of substa-
tion and U/G cable is under progress. Construction of 22 Km
of 33 KV overhead line has been almost complete. The project
is scheduled to be completed in 2013.

Dhankuta-Hile-Leguwa-Bhojpur 33 kV Transmission Line
Project

The project includes the construction of 35 km of 33 kV trans-
mission line, 52 km of 11 kV line, 50 km of LV distribution line
and one 33/11 kV substation in Bhojpur district. Construction
of 33 kV transmission line and 33 kV Bay/Switching Substation
have been completed and are in operation. Construction of
33/11 kV, Substation at Bhojpur and 11 kV line is in progress
and is scheduled to be completed by FY 2012/13.

Tumlingtar-Dingla-Bhojpur 11 kV Transmission Line Project
The project includes the construction of 30 km of 11 kV and
25 km of LV distribution line in Sankhuwasabha and Bhojpur
districts. Pole erection for entire 11 kV line and 20 km of con-
ductor stringing have been completed. Similarly, 18 km of LV
distribution line has also been completed. Tender for material
supply for remaining work is under progress.

Pie?
क्न्श

epal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Sangutar-Okhaldhunga 33 kV Transmission line project.
Major components of the project include the construction of
40 km 33 kV line, 40 km 11 kV line, one 33 kV bay at Sang-
hutar and 40 km LV distribution line. Pole erection in half of the
of 33 kV line has been completed. Procurement of 315 nos. of
poles and 120 km of conductor with hardware has been made
for construction of 33 KV line and work is in progress.

Okhaldhunga-Salleri 33 kV Transmission line project

The major component of this project are construction of 40
km 33 KV line, 40 km 11 kV line, one 33 KV bay construction
at Okhaldhunga substation and 1.5 MVA Substation & 40 km
of LT line at Salleri of Solukhumbu district. Procurement of
315 nos. of poles and 120 km of conductor with hardware
has been made for construction of 33 KV line and work is in
progress.

Khurkot-Nepalthok 33 kV Transmission Line Project

Major components of the project include the construction of
25 km of 33 KV line, 25 km of 11 kV line, 40 kM of LV distribu-
tion line at Sindhuli District & 33/11 kV, 1.5 MVA Substation at
Nepalthok. The procurement of poles & conductor for 12 KM of
33 KV Transmission line has been completed and construction
of line is in progress.

Hatia-Kamane 33 kV line Project

The project scope includes construction 10 km, 33 kV double
circuit line from Kamane in Hetauda to Hatia. This project aims
to meet the load demand of the industries in Hatia and eastern
part of the Makawanpur district.

A section of Kamane-Hatia 33 kV line

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7 क्ष.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Almost 90% of the project work is complete except about 2 km
of line in the forest area for which IEE is required. IEE report
has been approved and it is in process complete and the proj-
ect is expected to complete soon.

Aathrai VDC-Sankranti Bazaar 33/11 kV Substation Project
Major components of the project includes the construction of
25 km of 33 kV line, 25 km of 11 kV line, 40 km of LV dis-
tribution line in Tehrathum district and a 33/11 kV Substation
at Sankarnti Bazaar. Construction of 23 km of 33 kV line has
been completed. Tender for line material and construction has
been made. The construction is in progress. The land for Sub-
station construction has been selected and its acquisition is in
process.

Bokhim Lekharka (Bhojpur) Electrification Project

The project includes construction of 70 km of 11 kV line and
100 km of LV line in Bokhim, Khawa, Sideshwor, Gupteswor,
Nagi, Lekharka, Gogane, Timma, Kot, Chinamakhu and An-
napurna VDC of Bhojpur district. Erection of poles for 11 kV line is
in progress and tender for ACSR Conductor has been made.

Dhankuta-Hile-Ranibas-Bhojpur 33 kV Transmission Line
Project

The project includes construction of 27 km of 33 kV line, 50
km of 11 kV line and 50 km of LV line in different V.D.C. of
Bhojpur district. Erection of poles for 33 kV transmission line
has been completed. Tender for other material supply and con-
struction of line has been made. Procurement of land for sub-
station construction is being made.

Piluwa 33/11 kV Substation Upgrading

The scope of works includes upgrading of 1.5 MVA, 33/11
kV transformer by 6/8 MVA, 33/11 kV power transformer and
replacement of 33 kV Switchgear and Panels. Contract for
supply, delivery, installation and commissioning of 6/8 MVA
transformer was made and works is in progress and sched-
uled to be completed by FY 2012/13. Tender for replacement
of Switchgear and Panels has been made and completion of
works is scheduled to be finished by FY 2012/13.

Ranibas-Balardaha-Bhojpur 33 kV Transmission Line

The project started in FY 2010/11. Scope of works includes
33 kV line survey and construction apart from construction of
33/11 Substation / 33 kV Bay at Balardaha. Tender for Detailed
Survey has been completed in FY 2011/12. Similarly, tender for
procurement of poles has also been invited.

Muga-Ghodetar-Bhojpur 11 kV Transmission Line Project
The project started in FY 2010/11. Scope of works includes 10

km of 11 kV line and 10 km of LV distribution line in different
VDCs of Bhojpur district. Tender for Hardware, Insulators, ACSR
Conductor has been made and remaining portion of works is
in progress.

Rake-Rabi-Chisapani 33 kV Transmission Line Project

The project includes the construction of 25 km of 33 kV line,
40 km of 11 kV line, 40 km of LV distribution line, construction
of 33/11 kV substation and 33 kV bay. Out of which, 23 km
of 33 kV line and 10 km of 11 kV line has been constructed.
The procurement of material has been done. Tender for con-
struction of line has been made. Land for Switching Station
at Chamaite has been already acquired while acquisition for
Substation is still in process.

Bhadratar Talakhu Electrification Project, Nuwakot

This project is financed by GoN to electrify Mahakali, Likhu, Ta-
lakhu, and Chhap VDC of Nuwakot district. The scope of the
project includes construction of 12 km of 11 kV line, 16 km
of 0.4/0.23 kV line and installation of 5 nos of distribution
transformers. Construction is in progress and is scheduled to
be completed by the end of 2012.

Belkot Kumari Chauthe Electrification Project, Nuwakot
This project is financed by GON to electrify Belkot, Kumari, Ch-
authe VDC of Nuwakot district. The scope of the project in-
cludes construction of 9 km of 11 kV line, 10 km of 0.4/0.23
kV line and installation of 4 number of distribution transform-
ers. Construction is in progress and is scheduled to be com-
pleted by the end of 2012.

Line Re-alignment Due to Road Expansion in Kathmandu
Extensive line re-alignment work is being implemented in Kath-
mandu valley in the areas where road expansion is taking place.
Concerned distribution centers are executing this work in co-oper-
ation with road department and other concerned agencies.

é > SER we UF
: o Ss

Fy ps

Dismanting and realigement of pole

Nepal Electricity Authority। 53

Community Electrification

As part of the government policy to promote community par-
ticipation in rural electrification, the Business Group carried out
community based electrification in various parts of the coun-
try and handed over the facilities to the community for op-
eration. The government provided 90% of the capital cost of
electrification, and the remaining 10% of the capital cost was
borne by the Community. NEA is responsible for maintenance
of HT line where as Community/ Users' Group is responsible for
maintenance of LV distribution system. The public response to
this initiative of NEA has been overwhelming. Altogether, about
73,000 households have been provided with electricity by the
end of FY 2011/12 through 94 community groups in the juris-
diction of the business group.

Planning and Technical Services Department

The Planning and Technical Services Department is respon-
sible for planning and preparation of distribution system ex-
pansion programs and supporting DCS, East Business group in
the technical and commercial matters. At present, major works
under this department include identification of potential rural
electrification and substation rehabilitation projects and plan-
ning for implementation. The department is also responsible
for management of TOD energy meters & metering equipment
and identify and implement programs for loss reduction in dis-
tribution systems. In addition, the Department also carries out
impact studies for evacuation of power from IPPs to distribu-
tion substation.

The department aims to include distribution planning, demand
side management and loss reduction as an integral part of the
planning process in future. Besides, this business group is ea-
gerly trying to meet consumer aspirations by providing modern
facilities to the electricity consumers. Sixty eight distribution
centers have computerized billing system till date and plans
are to extend it to all distribution centers with modern facilities
in the coming years. The Computerized Billing Project under
this department has plans to cover entire distribution centers
within Kathmandu valley with 'Any Branch Payment System'.
Four distribution centers, Ratnapark, Baneswar, Lagankhel and
Pulchowk were selected for implementation in the first phase.
This system is already implemented between Ratnapark and
Baneswar DCs and will be operable soon between Lagankhel
and Pulchowk DCs.

Future Plans and Programs

NEA has taken the high system loss as a major challenge and
shall make every effort to bring down the system loss to 23%
in the coming fiscal year. It is also planning to improve the qual-
ity of the services through the use of new technologies and

54। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

capacity building to meet the challenges of new environment
in utility business. Consumer complaints shall be addressed
without delay and the procedure for new connection related
works shall be made simple and user friendly. Centralized cus-
tomer care center shall be established to ensure single point
of contact for all consumer related activities, timely service,
less processing time for new connection and centralized con-
trol and monitoring over the entire customer care process.
NEA is planning to implement Automatic Meter Reading, AMR
system a large industrial and commercial customers. Payment
and billing information shall be made available in internet so
that consumer can access information on line. A system will
be implemented for consumers to pay the electricity bill either
through bank or in NEA's revenue collection center. Payment
KIOSK shall be installed in major branches to facilitate bill pay-
ment outside office hours.

Regional Offices

There are four regional offices under DCS East, located at Bi-
ratnagar, Janakpur, Hetauda and Kathmandu. The functions of
operation, maintenance, and expansion of the network up to
the 33 kV voltage levels and consumer services such as new
consumer connections, meter reading, billing, and revenue
collection are carried out by Regional Offices. In addition, the
regional Offices are also responsible for managing community
based rural electrification and operation and maintenance of
off grid small hydro power plants within their jurisdiction. Each
regional office is headed by a director and reports to the Gen-
eral Manager. Technical division headed by a Manager looks
after all the technical matters, rural electrification activities and
management of small hydro power plants.

Apart from the regular consumer services, the Regional Offices
focused on the following activities in FY 2011/12:

Loss Reduction Program

The distribution networks comprise of technical and non- tech-
nical losses, in which proportion of non-technical losses is
quite high. During the year under review, various measures
taken in the preceding years were continued to reduce the
non-technical losses. Massive awareness campaigns as MlCing,
rallies and workshops were implemented in various distribution
centers.

Besides, strict measures for electricity theft control as contisca-
tion of electric equipments and taking legal action against cul-
prits were also conducted in various distribution centers with
the help of local administration and security agencies.
Extensive programs were implemented to avoid electricity theft
manipulating meter and metering units, mainly consisting of:

A YEAR IN REVIEW
FISCAL YEAR 2011/12

fg काका det,। र जै तरी Rit

री

त नका"

Awareness rally against electricity theft in Birgunj Loss reduction workshop in Hetauda

¢ — Installation of tamper proof meter enclosures and refur-
bishment of metering facilities

* — Implementation of meter enclosure seal management system.

* Replacement of electro-mechanical meters by program-
mable poly phase electronic meters and replacement of
unmatched current transformers to eliminate possible er-
rors in multi plying factor.

० — Investigations on illicit tapings and meter tempering

० Meter testing: Bulk/ Ordinary supplies

* — Rehabilitation of meter cubicles

० — Implementation of meter seal management system to se-
cure energy meters from tempering

* Replacement of bare conductor with ABC cables in loss
prone areas

NEA management made various decisions as 'Immediate Ac-
tion Plans' to improve its functioning. Among many, this plan
included regular inspection of Time-of-Day (TOD) meters, data
download and analysis to curb any connection fault or ma-
nipulation. All regional offices and distribution centers actively
participated in this drive which was found to be much effective.

~ बनमा 4 bd ७

TVs, Fridges and electric motors confiscated at Malangawa

Nepal Electricity Authority। 55

Energy Monitoring and Auditing of Distribution Substa-
tions

Under the program, static energy meters were installed at
distribution substations to measure the amount of energy de-
livered by the substations. The Planning and Technical Ser-
vices Department co-operated with Grid Operation Department
to install ToD meters in various grid substations. The static
meters installed at different substations were downloaded to
check and verify the data. The program for installation of Bulk
Supply Meters and the Metering Unit was also continued in FY
2011/12. The energy monitoring and audit was also augment-
ed verifying the data with concerned transmission grid and
generation units.

Customer Care

Distribution centers work as interfaces between NEA and its
consumers. So, special efforts were taken to improve the qual-
ity of service at the consumer interface points. The employees
took special efforts to serve our valued consumers in more ef-
fective way. With the Queue Management System at some of the

A YEAR IN REVIEW
FISCAL YEAR 2011/12

cash collection centers, difficulties encountered by the consum-
ers in queuing for making payments were minimized. Round
the clock no-light services have been implemented in most of
the urban no-light centers. These functions and activities were
carried out by all four regional offices.

NEA employees and APF personnel Departing
for loss control activities at Tandi

Features of these four regional offices are given in the following table:

Description Kathmandu Biratnagar Hetauda Janakpur
P Regional Office। Regional Office। Regional Office। Regional Office

Zonal Coverage Bagmati Mechi & Koshi Narayani Janakpur &
Sagarmatha
No. of municipalities fully electrified : 11 6। 7 8।
No. of municipalities partially electrified _ 0। 3 0। 1
No. of VDC's fully electrified 133 30 232 389
No. of VDC's partially electrified 337 278 114 204
No. of VDC's having no access to electricity 47 117 19 128
No. of community electrified VDC's 38 38 23 16
No. of distribution centres 17 14 8। 11
Units sold during the year under review (GWh) 896.274 467.20 591.231 236.598

- Billing Amount 6779.44 3026.284 3675.848 1245.89

- Collection Amount 6552.14 2848.325 3534.823 1261.42
Total no. of consumers at the end of the year 511523 389936 254948 325355
No. of new connections provided during the year 26667 40934 27068 55330
Length of 33 KV line (Km) 200.2 595.3 259.2 856
Length of HT Distribution (11 KV) Line (KM) 3357.4 3709.5 3284.1 3918
Length of LV Distribution (0.4/0.23 KV) Line (Km) 19707.65 11440.4 6912.3 6646
No. of 33/11 KV primary S/S 10 18 8। 16
Total installed capacity of 33/11 KV substations (MVA) 184 82.1 234.5
No. of distribution transformers 4709 2450 2563 2377
Total installed capacity of distribution transformers (MVA) 527.98 176.11 245.3 176.76

56। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Distribution and
Consumer Services
West Business Group

The Distribution and Consumer Services, West (DCSW) Busi-
ness Group is entrusted with the key responsibility of overall
management of electricity distribution network of NEA lying on
western territory of Nepal from Narayani River. The responsibil-
ities of DCS West include construction, operation, maintenance,
rehabilitation and expansion of the network up to the 33 kV
voltage levels and consumer services such as new consumer
connections, meter reading, billing, and revenue collection. It
is also entrusted with the work of Operation & Maintenance of
western region Small Hydro power plants and Rural Electrifica-
tion projects. It is one of the main interfaces with the consum-
ers, It is the second largest among the business groups of
NEA in terms of number of employees and business activities.
about 12% of the total staffs of NEA are employed in DCS West.
Also DCS West is on the forefront to earn revenue for sustaining
operation and maintenance and development activities of NEA.

This Business Group provides service to consumers through
40 Distribution Centers spread over 35 districts of the coun-
try. This Business Group is headed by a General Manager and
organized into Department at central level and four regional
offices.

Performance Highlights:

In FY 2011/12, total number of customers under DCS West
reached 8,35,441 an increase of 10.61% over the last fiscal
year's figure.

No of consumer
Customer Sales Revenue
(% of total
Category % %o
consumers)
Domestic 94.21 45.56 44,96
Non-Commercial 0.26 3.01 4.53
Commercial 0.57 5.71 8.60
Industrial 1.95 33.37 33.61
Others 3.01 12.35 8.3

Similarly in FY 2011/12, a total of 838.9 GWh of energy was
sold earning gross revenue of Rs, 538.58 million, an increase
of 15.38 % and 14.36% over the previous year's energy sales
and revenue respectively. Sales and revenue contributions of
different customer groups under DCS, West in FY 2011/12 are
depicted above: Industrial and Commercial consumer catego-
ries combined together represent only 2.52% of the total num-
ber of consumers but share 42.21% of total sale. Similarly,
the domestic consumer category represents 94.21 % of total
consumers but contribute only 44.96% to the total sale.

As part of system reinforcement and expansion of distribu-
tion system program, many activities were undertaken in FY
2011/12 to improve the service delivery. The main activities
undertaken are listed below:

Electrification Program

Electrification program focuses on extensions of the existing
distribution network and on completion of outstanding incom-
plete electrification works on a priority basis. The activities of
the program are spread over all the areas under the juris-
diction of the DCS West business group. During the FY year
construction on three 33/11 kV substation was added. These
are 6/8 MVA substation at Arghakhachi, 8 MVA substation at
Nepalgunj and 3 MVA substation at Baitadi. Similarly 36 km of
33 kV line and 221 km of 11 kV line was constructed. In addi-
tion 446 km of LT Line was added to the distribution network
and 295 numbers of distribution transformers having total ca-
pacity of 20.745 MVA was added.

Planning and Technical Services Department

The Planning and Technical Services Department is respon-
sible for planning, preparation of distribution system expan-
sion programs and supporting DCS West Business group in the
technical and commercial matters. The Department identifies
potential RE projects and substation rehabilitation projects for
implementation in phase wise manner. The Department also

57

carries out management of TOD energy meter & metering
equipment and develops and implements programs for reduc-
tion of distribution system losses. In addition, the Department
carries out impact studies for evacuation of power from IPPs
to distribution substation.

Loss Reduction Activities in DCS, West

In FY 2011/12 special efforts were taken to reduce the Tech-
nical and Non-Technical Losses. Distribution and Consumer
services, West have started regular monitoring of the feed-
ers and areas having more than 40% loss. The Loss Reduc-
tion Committee was formed in many distribution centers. The
Committee is headed by the concerned Chief District Officer.
Loss reduction committee at center level have regularly col-
lected loss related information from the distribution centers
and regional offices, analyzed the collected information and
directed the concerned offices to improve the loss situation.
During the FY 2011/12, 7522 numbers of direct hooking was
caught and Rs 10,33,818.90 was recovered from it Similarly,
343 customers were penalized for electricity pilferage and Rs
27,89,425.79 was recovered from it.

Monitoring, data downloading and analysis of the consump-
tion of large industrial and commercial consumers have been
increased. Use of Arial Bundle Conductor, ABC has been en-
couraged in high non technical loss prone areas. Upgrading
of overloaded conductors and transformers has been carried
out to reduce the non technical losses. Despite continued ef-
forts and measures taken to control non technical losses, the
desired result could not be achieved. This is mainly due to the
adverse local work environment especially in terai and some
hilly areas.

Queue Management System (QMS)

As a continuous effort to provide better service and comfort to
our valued consumers, QMS has been implemented in different
branches and improvement in physical infrastructure at these
locations has also been made to provide comfort to consumers.

E-bidding system

DCS continues to explore various modes to utilize technologi-
cal developments for operational efficiency. This FY. DCS has
introduced e-bidding with co-ordination from MIS Department
of NEA. This has helped a lot in ensuring fair, transparent and
more competitive bidding procedure.

Human Resource Development

In FY 2011/12, about 68 technical and non-technical staffs
participated in various training program and seminars orga-
nized by NEA in Training Center and other agencies to enhance

58। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

the technical and managerial skill of employees.

Small Hydro Power and Rural Electrification Projects:

After the structural intervention in FY 2011/12, Distribution
and Consumer Services, West is also responsible for Operation
and Maintenance of Small Hydro Plants located in western part
of the country which was previously under Small Hydro and Ru-
ral Electrification Department of Electrification Business group.
Besides rural electrification, the Business Group also oversees
distribution and consumer service functions of 22 small/mi-
cro hydro plants located at different districts. Out of 21 small
hydropower plants 18 are in operation. These centers serve
20187 consumers in total. Apart from these, 9 more small/mi-
cro hydro plants located at various districts have been leased
to private companies or communities. These leased small hy-
dropower plants serve around 10977 consumers.

Small Hydro Plants under DCS West

S.N. Name or he capacity kW No of Consumers
1। Aachham 400 2660
2। Arughat 150 855
3। Dolpa 200 1039
4। Kalikot 500 1518
5। Heldung (Simikot) 500 781
6। Tatopani 2000 997
7। Gamgad 400 1090
8। Rupalgad 50 270
9। Surnayagad 200

Total 4400 9210

Rupalgad Small Hydro plant and Surnayagad Small Hydro Plant
are operated by Dadeldhura Distribution Center and Baitadi
Distribution Center respectively.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Small Hydro Plants Leased to Private Communities and

Monitored by DCS West

S.N.। Name of Center Capacity kW No of Consumers
1। Bajhang 200 1300
2। Bajura 200 923
३। Chame 45 376
4। Chaurjahari 150 702
5। Darchula 300 1518
6 Jomsom 240 2050
7। Jumla 200 1350
_ 8. Manang। 80 631
_9 Syarpudaha 200 2127

Total 1615 10977

Baitadi Small Hydro Plant

Small Hydro Plants under DCS West not in operation:

S.N.। Name of Center District Capacity kW
1 Setibeni Syanja 80
2 Jhupra Surkhet 345
3 Doti Doti 200
4 Baglung Baglung 200
Total 825

For Rural Electrification, a number of 33 kV transmission lines
and 33/11 kV substation projects are under construction. The
status of projects carried out by then SHPRED in FY 2010/11

which is now managed by DCS, West is summarized below.

Gamgad Small Hydropower Project (Mugu District)

The construction of Gamgad Small Hydro Project (400 kW) was
started in FY 2001/02. NEA Board deputed special taskforce
to complete this project within 6 months and the construction
of project has been completed at Sept-15-2011.

Sitalpati -Musikot 33 kV Transmission Line Project (Salyan
and Rukum Districts)

The project includes the construction of 50 km of 33 kV trans-
mission line, 50 km of 11 kV line, 40 km of LV distribution line
and two 33/11 kV substations of 1.5 MVA capacity one each
at Sitalpati and Musikot. Out of 50 km long 33 kV transmis-
sion line, stringing of 34 km line & pole erection has been
completed. Construction of 33/11 kV, 1.5 MVA substation at
Sitalpati and 33 kV bay extension at Tulsipur are in progress
and expected to be completed in this current FY. Land acquisi-
tion for Musikot Substation has been completed.

Chhinchu-Rakam-Jajarkot 33 kV Transmission Line Project
(Surkhet and Jajarkot Districts)

The scope of the project consists of the construction of 70
km of 33 kV transmission line, 100 km of 11 kV, 100 km of LV
distribution line and two 33/11 kV substations at Surkhet and
Jajarkot districts. Out of 70 km long 33 kV transmission line,
pole erection and stringing of conductor for 45 km and 11 km
of 11 kV line has been completed. Construction of 33/11 ९४
750 kVA substation at Rakam is completed. Contract for 33kV
and 11kV Protection Scheme of Rakam Substation has been
awarded and work is in progress and expected to be com-
pleted by FY 2012/13.

aad।।, गी] Hi x a) ॥ छी, oa lo

oa
+, =
Es oe nn र. अं

fea ee 22 Sade - टा

33KV Bay at Ghorahi Underconstruction

Nepal Electricity Authority। 59

Ghorahi-Holeri 33 kV Transmission Line Project

(Rolpa District)

Scope of this project consists of the construction of 45 km of
33 kV transmission line, 50 km of 11 kV, 50 km of LV distribu-
tion line and two 33/11 kV substations at Holleri & Ghorahi.
Construction of 45 km 33 kV transmission line up to Holleri has
been completed.Construction of 33/11 kV, 750 kVA sub-station
at Holleri and 33 kV bay extension at Ghorahi are near comple-
tion. Substation Building at Holleri has been completed.

Construction of 10 km 11 kV Transmission and Distribution line
and installation of two (2) 50 kVA distribution transformer has
been completed. Procurement of Poles, Conductor of 33 kV
transmission line has been completed. The project is sched-
uled to be complete in F/Y 2012/13.

2 च

33KV Bay at Ghorahi under construction

Udipur-Besisahar-Manang 33 kV Transmission Line Project
(Lamjung and Manang Districts)

The project includes the construction of 90 km of 33 kV trans-
mission line, 53 km of 11 kV, 53 km of LV distribution line and
one 33/11 kV, 1.5 MVA substation in Manang and 33 kV bay
extension in the existing Udipur substation. Out of 90 km long
33 kV transmission line, pole erection for 70 km up to Danaque
of Manang district and stringing of conductor for 15 km up
to Bulbule has been completed. Land acquisition for Manang
Substation has been completed. Procurement of line materials
(Insulator & Hardwares) for 15 km of 33 kV transmission line
has been awarded. Tendering has been done for construction
of 8 km line stringing of 33 kV transmission Line from Khudi up
to Thakanbesi (Lamjung) and the work is completed in last छी,
Dadeldhura-Baitadi 33 kV Transmission Line Project.

The scope of the project includes the construction of 14 km
of 33 kV transmission line, 15 km of 11 kV & LV distribution
line, one 33/11 kV 3 MVA substation at Baitadi and 33 kV bay

60। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

extension in the existing Dadeldhura substation. Construction
of 33/11 kV, 3 MVA substation and its testing & commissioning
at Baitadi has been completed in FY 2010/11 and electricity to
local consumer is supplied by Baitadi S/S.

Dipayal-Sanfebagar-Manma-Jumla 33kV Transmission Line
Project:

Major components of the project include the construction of
155 km of 33 kV, 15 km of 11 kV & 3 nos. of 33/11 kV substa-
tions at Sanfebagar, Manma and Jumla. -Out of 155 km long 33
kV transmission line, pole erection for 22 km up to Saphebagar
has been completed. Process has been initiated for land acqui-
sition at Saphebagar (Achham). Procurement of line materials
(Insulator & Hardwares) has been completed.

Dailekh Substation Project:

The project includes the construction of 25 km of 33 kV, 15
km of 11 kV, 10 km of LV distribution line & one 33/11 kV, 1.5
MVA substation at Dailekh and 33 kV Bay extension at Surkhet.
Construction of 33/11 kV, 1.5MVA sub-station at Dailekh and
33 kV bay extension at Surkhet substation is under construc-
tion. Power transformer and other major electrical equipments
has been transported to the construction site.

33-11 KV Substation at Dailekh under construction

Galkot Substation Project

This project is being implemented to provide electric supply to
Galkot area in Baglung district. 33 KV Bay extension at Baglung
substation has been completed. Land Acquisition for Sub-sta-
tion construction at Galkot has been completed. Tendering for
construction civil work for land protection has been done and
is now in evaluation process.

Kapurkot-Koilachaur 33 kV Transmission Line Project:
The project includes the construction of 15 km of 33 kV, 25 km
of 11 kV, 25 km of LV distribution line in Salyan & Rolpa districts

A YEAR IN REVIEW
FISCAL YEAR 2011/12

& 6/8 MVA 33/11 kV substation at Koilachaur & a switching
substation at Kapurkot. Construction of 12 km, 33 kV trans-
mission line from Kapurkot to Kalachaur has been completed.
Land acquisition for substation construction has been complet-
ed. Tendering for construction of 6/8 MVA 33/11kV substation
has been done and is now in evaluation process.

Saphebagar (Achham) -Martadi (Bajura) 33 kV Transmis-
sion Line Project:

The project includes the construction of 48 km of 33 kV, 40
km of 11 kV, 40 km of distribution line in Achham and Bajura
district, 33/11 kV substations at Martadi and 33 kV Bay ex-
tension at Saphebagar. construction Of 12 kV transmission in
progress. Procurement of conductors and insulator hardware
for 33 kV transmission line has been completed. Process of
land acquisition has been initiated.

Martadi (Bajura)-Gamgadi (Mugu) 33 kV Transmission
Line Project:

The project includes the construction of 90 km of 33 kV,
40 km of 11 kV, 40 km of LV distribution line in Bajura and
Mugu district, 33/11 kV substations at Martadi and 33 kV
Bay extension at Saphebagar. construction of 10 km of line
has been completed. Procurement of conductor hardware for
construction of additional 10 km 33 kV has been completed.
Land Acquisition process for Sub-station construction has been
initiated.

Khorpe (Baitadi) Chainpur (Bhajang) 33 kV Transmission
Line Project:

The scope of this Project includes the construction of 90 km
of 33 kV, 40 km of 11 kV, 40 km of LV distribution line in
Baitadi and Bajura district, 33/11 kV substations at Chainpur
and 33 kV bay extension at Baitadi Substation. construction of
10 km of 33 kV Transmission line was completed. Tendering
has been done for poles for construction of additional 10 km
33kV line. Land Acquisition process for Sub-station construc-
tion has been initiated.

Udipur Substation Upgrading Project:

The project has been started from FY 067/068 to upgrade the
existing Udipur substation. Contract has been signed for the
upgradation of Udipur substation in Lamjung to 8 MVA capacity
and the work is to be completed by Kartik of this F/Y.

Rajapur 33 kV Substation Project:

The project has been started from FY 067/068 to construct
15 km 33 kV line, 10 km 11 kV line, 10 km of distribution
line and construction 33/11 kV substation at Bardiya. Process
has been initiated for land acquisition for the construction of

Rajapur Substation.

Bojhapokhari Nawalparasi 33 kV Transmission Line Project:
The project has been started from FY 067/068 to construct
15 km 33 kV line, 10 km 11 kV line, 10 km of distribution line
and construction 33/11 kV substation at Nawalparasi. Process
has been initiated for land acquisition and tender document
preparation.

Dang Bhalubang 33 kV Transmission Line Project:

The project has been started from FY 067/068 to construct
25 km 33 kV line, 10 km 11 kV line and construction 33/11 kV
substation at Dang. Process has been initiated for land acquisition.

Surkhet Bijaura 33 kV Substation Project:
The project has been started from FY 067/068 to construct
30 km 33 kV line, 20 km 11 kV line and construction 33/11 kV

substation at Bijaura Surkhet. Land acquisition work has been
completed. Construction of compound wall is in progress.

Khairenitar 33 kV Substation Project:

The project has been started from FY 067/068 to construct 12
km 33 kV line. Process has been initiated for land acquisition
for the construction of Khairenitar Substation.

Thada 33 kV Substation Project:

The project has been started from FY 067/068 to construct
22 km 33 KV line and construction of 33/11 kV substation at
Thada, Arghakhachi. Purchasing of land has been completed
for the construction of Thada Substation.

Regional Offices

Under Distribution and Consumer Services, West four Regional
Offices namely Butwal Regional Office (BRO), Nepalgunj Re-
gional Office (NRO), Attaria Regional Office (ARO) and Pokhara
Regional Office (PRO) are in operation. The main function of
the Regional Offices is to co-ordinate the activities of distribu-
tion centers within its region.

Key objectives of the Regional Offices are:

० Provision of reliable electricity supply to the consumers
within the region at statutory levels of voltage

¢ — Sell electricity and achieve planned surpluses of revenue
over the total expenditure

० — Provide new connections to prospective consumers

० — Ensure rational development of the electricity distribution
system within the region

* Operation and maintenance of Small Hydropower Plants
within the region

Nepal Electricity Authority। 61

१ Management of community based rural electrification
projects

Main Activities of Regional Offices

1. Loss Reduction Program
The problem of "Distribution Losses" was addressed by
two separate ways: Reduction of non-technical (commer-
cial) losses and reduction of technical losses. During the
year under review following steps which were taken in
previous years were continued to reduce the non-techni-
cal losses especially at the bulk supply installations

* — Installation of tamper proof meter enclosures and refur-
bishment of metering facilities

* Implementation of meter enclosure seal management
system.

न — Replacement of electro-mechanical meters with program-
mable poly phase meters and replacement of unmatched
current transformers to eliminate possible errors in mul-
tiplying factor.

During the year following steps were also taken as in previous

years to reduce non technical losses in different distribution

centers

¢ — Investigations on illicit tapings and meter tempering

"न — Fixing meter enclosures for bulk supplies and 5-30A supplies

० Meter testing: Bulk/ Ordinary supplies

० — Rehabilitation of meter cubicles

"न — Implementation of meter seal management system to se-
cure energy meters from tempering

¢ — Replacement of bare conductor with ABC cables in loss
prone areas

During the FY 2011/12 stern measures were also taken to
reduce the electricity losses: mainly non-technical. The name
of the feeders having more than 50% loss was made public in
the first stage and public notice was given mentioning that load
shedding for feeders having such loss will be more than less
loss feeders. In the second stage name of the feeders having
more than 40% loss was made public. In many distribution cen-
ters employees actively participated in the national campaign
of reducing the electricity loss and this drive brought good
results in many areas.
2. Energy Monitoring and Auditing of Distribution Substa-
tions
Under this program energy meters were fixed at distribu-
tion substations to measure the amount of energy dis-
tributed by the substation. TOD meters installed at differ-
ent substations were downloaded to check and verify the
data. The program for installation of Bulk Supply Meters
and the Metering Unit was also continued in FY 2011/12.

62। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

3. Customer Care:

Special efforts were taken to improve the service at the
customer interface points. The staffs took special efforts
to serve our valued customers effectively in the current
year. With the Queue Management System at some of the
cash collection centers, difficulties encountered by the
customers in queuing for making payments were mini-
mized.

Butwal Regional Office

Introduction

Butwal Regional Office (BRO) is one among the four Regional
offices of Distribution and Consumer Services, West (DCS West).
The office is headed by a director who is directly responsible to
the General Manager. Area of operation of this regional office
covers the districts of Lumbini zone.

Operational Structure

There are 9 Distribution Centers within the regional office for
effective administration. In addition, there is technical divi-
sion headed by a Manager who looks after all the technical
matters. Rural Electrification activities within the region and
management of Small Hydro Plants within the region are also
coordinated by the technical division. The finance and revenue
functions of the Region are carried out by Accountants and
Controlled and supervised by the Asst. Director of the region.
The Regional Office is provided with a separate administrative
officer to attend human resource function.

Highights of the year

¢ — Units sold within the region during the year: 409.56 GWh

* — Revenue earned from Units sold: Rs 2651 Million

* — Total no. of consumers within the region at the end of the
fiscal year: 304457

० 0 of new connections provided during the year: 29793

* — Average revenue per consumer per month: Rs 725.75

न Average energy per consumer per month: 112.08 kWh

Distribution Infrastructures

० 33 kV Distribution Lines: 500km

० 11 kV Distribution Lines: 2500 km

० 33/11 kV Primary Substations: 14Nos

० — LV Distribution Lines: 7653 km

० — LV Distribution Substations (Distribution Transformers):
4086 Nos

० — Distribution Transformers total installed capacity: 285460
kVA

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Sales

BRO reported 48.82% of electricity sales within the DCS West.
In the year 2011-12, 409.56 GWh of electricity was sold in the
region.

Revenue

The revenue from electricity sales during the year was Rs
2651.69 million. The reasons for increased revenue than the
previous year are growth of energy sales and recovery of old
dues from consumers. BRO accounts for 49.23% of the total
revenue of the DCS West.

Electricity Consumer Accounts and New Service Connec-
tions

BRO recorded 304457 consumer accounts by the end of the
year 2011-12. The majority of the consumer accounts were in
the domestic category. During the year under review, a total of
29793 new connections were provided.

33 kV Transmission Line and Substation Projects under
Butwal Regional Office:
1. Chanauta-Maharajung (kapilbastu) 33 kV transmission
line project:
- Land has been purchased for construction of S/S and
other works has been remaining.

2. Gulmi-Majuwa 33/11 kV S/S Project:
- Purchasing of land for S/S is in process.
3, Ramnagar (Nawalparasi) 33/11 S/S Project:

- Land has been selected for construction of substa-
tion but purchasing has been left.

4. Hanspur (Arghakhachi) 33/11 kV S/S Project:
- Purchasing of land for S/S is in process.
5. Amrai-Dohali-Wagla-Aglung (Gulmi) Electrification
Project:

- 75% work has been completed and remaining work
will be completed in this FY.

Nepalgunj Regional Office

Introduction

Nepalgunj Regional Office (NRO) is one among the four Re-
gional offices of Distribution and Consumer Services, West
(DCS, West). The office is headed by a director who is directly
responsible to the General Manager. Area of operation of this
regional office covers the districts of Rapti & Bheri zone. Total
population within the region is 2.388 million (Census 2001).
Out of 6 municipalities and 370 VDCs under NRO, 5 munici-
palities are fully electrified, 1 municipality and 204 VDCs are
partially electrified and 166 VDC have no access to electricity.

Operational Structure

There are 13 Distribution Centers within the regional office
for effective administration. In addition, there is technical divi-
sion headed by a Manager who looks after all the technical
matters. Rural Electrification activities within the region and
management of Small Hydro Plants within the region are also
coordinated by the technical division. The finance and revenue
functions of the Region are carried out by Accountants and
Controlled and supervised by the Asst. Director of the region.
The Regional Office is provided with a separate administrative
officer to attend human resource function.

Highlights of the year

* — Units sold within the region during the year: 145.37 GWh

० — Revenue earned from Units sold: Rs 9594 Million

० — Total no. of consumers within the region at the end of the
fiscal year: 200169

० 10 of new connections provided during the year: 26182

न Average revenue per consumer per month: Rs 399.00

० Average energy per consumer per month: 60.51 kWh

Distribution Infrastructures

० 33 kV Distribution Lines: 461 km

० 11 kV Distribution Lines: 1468 km

० 33/11 kV Primary Substations: 9 Nos

० — LV Distribution Lines: 5381 km

० — LV Distribution Substations (Distribution Transformers):
1469 Nos

० — Distribution Transformers total installed capacity: 100000
kVA

Sales

NRO reported 17.303% of electricity sales within the DCS
West. In the year 2011-12, 145.37 GWh of electricity was sold
in the region.

Revenue

The revenue from electricity sales during the year was Rs
9594.43 million. NRO accounts for 17.81% of the total rev-
enue of the DCS. Higher revenue is due to the recovery of old
dues.

Electricity Consumer Accounts and New Service Connections
NRO recorded 196517 consumer accounts by the end of the
year 2011-12. The majority of the consumer accounts were in
the domestic category. During the year under review, a total of
27806 new connections were provided.

33 kV Transmission Line and Substation Projects under
Nepalgunj Regional Office:

Nepal Electricity Authority। 63

1. Rolpa-Sulichaur 33 kV Transmission Line Project:

- Process of land purchasing is in initial phase.

2. Surkhet-Gagate-Matela-Jajarkot 33 kV Transmission Line
Project:

- Process of land purchasing is in initial phase.

Attaria Regional Office

Introduction

Attaria Regional Office (ARO) is one among the four Regional
offices of Distribution and Consumer Services, West (DCS West).
The office is headed by a director who is directly responsible
to the General Manager. Area of operation of this regional of-
fice covers the districts of Seti & Mahakali zone. Total popula-
tion within the region is 1.12 million (Census 2001). Out of 6

Office of Attariya Regional Office

municipalities and 257 VDCs under ARO, all the municipalities
and 37 VDCs are fully electrified, 96 VDCs are partially elec-
trified and 124 VDC have no access to electricity. Previously
this Regional office has not their own building but form this FY
2069/70 it has been shifted to their own new building.

Operational Structure

There are 8 Distribution Centers within the regional office for
effective administration. In addition, there is technical divi-
sion headed by a Manager who looks after all the technical
matters. Rural Electrification activities within the region and
management of Small Hydro Plants within the region are also
coordinated by the technical division. The finance and revenue
functions of the Region are carried out by Accountants and
Controlled and supervised by the Asst. Director of the region.
The Regional Office is provided with a separate administrative
officer to attend human resource function.

64। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Highlights of the year

० — Units sold within the region during the year: 109.854 GWh

* — Revenue earned from Units sold: Rs 619.84 Million

० Total no. of consumers within the region at the end of the
fiscal year: 124950

० — No of new connections provided during the year: 14205

* Average revenue per consumer per month: Rs 413.39

० Average energy per consumer per month: 73.00 kWh

०  Surnayagad SHP under Baitadi DC that was previously not
in operation. After major maintenance both of the units (2
x 100 kW) are connected to 11 kV grid line with the initia-
tion of ARO.

Distribution Infrastructures

० 33 kV Distribution Lines: 315.71 km

० 11 kV Distribution Lines: 2888.15 km

० 33/11 kV Primary Substations: 13 Nos

०।[ Distribution Lines: 7946.66 km

० — LV Distribution Substations (Distribution Transformers):
1248 Nos

० Distribution Transformers total installed capacity: 68156 kVA

Sales

ARO reported 17.32% of electricity sales within the DCS West.
In the year 2011-12, 109.854 GWh of electricity was sold in
the region.

Revenue

The revenue from electricity sales during the year was Rs
619.84 million. ARO accounts for 11.50 % of the total revenue
of the DCS, West.

Electricity Consumer Accounts and New Service Connections
ARO recorded 109453 consumer accounts by the end of the
year 2011-12. The majority of the consumer accounts were in
the domestic category. During the year under review, a total of
14205 new connections were provided.

33 kV Transmission Line and Substation Projects under

Attaria Regional Office:

1. Pahalmanpur 33/11 kV Transmission Line Project:

- Survey work has been completed,

- Land has been received from related VDC for S/S

- — Polling is 33 kV transmission line is in progress.

2. Budar-Jogbudha-Bagarkot 33 kV Transmission Line Proj-
ect:

- Survey work completed, site is located for construction
S/S and Tender is awarded for polling of 33 kV transmis-
sion line.

3. Khalanga Darchula 33 kV Transmission Line Project:

A YEAR IN REVIEW
FISCAL YEAR 2011/12

-  Tende is awarded for survey and polling work and land
has been received for S/S from related VDC but remains
to handover for transfer to NEA from their owners.

4. Doti-Mauwa-Nagardaha 33 kV S/S construction Project:

- Survey work has been completed, site is located for S/S
and Tender is awarded for polling of 33 kV transmission
line.

5. Safebagar-Chamra Chautara 33 kV Transmission Line
Project:

-  Surver work has been completed, Land is received from
related VDC for S/S but remains for transfer to NEA. Ten-
der is awarded for polling of 33 kV transmission line.

Pokhara Regional Office

Introduction

Pokhara Regional Office (PRO) is one among the four Region-
al offices of Distribution and Consumer Services, West (DCS,
West). The office is headed by a director who is directly respon-
sible to the General Manager. Area of operation of this regional
office covers the districts of Gandaki & Dhaulagiri zone.

Operational Structure

There are 10 Distribution Centers within the regional office
for effective administration. In addition, there is technical divi-
sion headed by a Manager who looks after all the technical
matters. Rural Electrification activities within the region and
management of Small Hydro Plants within the region are also
coordinated by the technical division. The finance and revenue
functions of the Region are carried out by Accountants and
Controlled and supervised by the Asst. Director of the region.
The Regional Office is provided with a separate administrative
officer to attend human resource function.

Highlights of the year

* — Units sold within the region during the year: 174.12 GWh

* — Revenue earned from Units sold: Rs 4031.08 Million

* — Total no. of consumers within the region at the end of the
fiscal year: 205865

* — No of new connections provided during the year: 11981

¢ Average revenue per consumer per month: Rs 743.46

न Average energy per consumer per month: 64.65 kWh

Distribution Infrastructures

¢ 33 kV Distribution Lines: 500km

० 11 kV Distribution Lines: 1200 km

* 33/11 kV Primary Substations: 8 Nos

० — LV Distribution Lines: 7643 km

० — LV Distribution Substations (Distribution Transformers):
4026 Nos

० — Distribution Transformers total installed capacity: 282460
kVA

Sales

PRO reported 20.75% of electricity sales within the DCS, West.
In the year 2011-12, 174.12 GWh of electricity was sold in
the region.

Revenue

The revenue from electricity sales during the year was Rs.
1154.88 million. The reasons for increased revenue than the
previous year are growth of energy sales and recovery of old
dues from consumers. PRO accounts for 21.44% of the total
revenue of the DCS.

Electricity Consumer Accounts and New service connec-
tions

PRO recorded 205865 consumer accounts by the end of the
year 2011-12. The majority of the consumer accounts were in
the domestic category. During the year under review, a total of
11981 new connections were provided.

33 kV Transmission Line and Substation Projects under

Pokhara Regional Office:

1. Jomsom Lomatham Upallo Mustang 33 kV Transmission
Line Project:
- Process of land purchasing is in initial phase.

2. Beni Darbang Myagdi 33 kV Transmission Line Project:
- Process of land purchasing is in initial phase.

3. Sindhubeshi-Lamjung-Lekhnath Kaligandaki 33 kV Trans
mission Line Project:
- Process of land purchasing is in initial phase.

4, Righa Kharwang (Baglung) 33 kV Transmission Line
Project:
- Process of land purchasing is in initial phase.

Nepal Electricity Authority। 65

Project Development Department (PDD)

Project Development Department (PDD) looks after the study
of hydropower projects at different levels. It is headed by a
Director. There are six divisions under the department each
headed by a Manager. The Department mainly focuses on the
preparation of hydropower projects for development by NEA.
This includes identification of projects, their screening and
ranking, carrying out their feasibility studies and finally pre-
paring tender documents and detailed drawings through a de-
tailed design study. The department has also been providing
construction supervision services for the projects under con-
struction as per the agreements with the concerned project. In
addition, PDD has also been providing consulting services for
the detailed survey of a number of transmission line projects
being carried out by Grid Development Business Group Brief
descriptions of the projects being carried out from this depart-
ment is outlined in the following sections.

Nalsyau Gad Storage Project

Nalsyagu Gad Storage Hydropower Project was conceived as
one of the most attractive storage projects among the 93 stor-
age projects screened and ranked during the "Identification
and Feasibility Study of Storage Projects- 2001". This project
is located in Jajarkot District in Mid We stern Development Re-
gion of Nepal. Nalsyaugad is a small tributary of Bheri River in
Karnali River Basin.

The present study has established the dam site location just
downstream of Udheri Khola at approximately 9.25 km up-

66। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Engineering Services
Business Group

== Services is entrusted with the responsibility to carry out engineer-
ing studies beginning from identification to detailed engineering design, environ-
mental studies, geological and geotechnical studies. It is headed by a General
Manager. The Business Group has rendered its service to NEA and private sec-
tor particularly for the study of hydropower and transmission line projects. The
Project Development Department, Soil Rock and Concrete Laboratory and Envi-
ronmental and Social Studies Department provide these services to the various
departments within NEA and to the private parties.

stream from the confluence of Nalsyaugad and Bheri River to-
wards Nalsyaugad River. The power house is located on the left
bank of Nalsyaugad River near the confluence with Bheri River.
Chinchu Jajarkot road will serve as main access for the project.
At present the access road has been constructed up to the
other side of powerhouse at Dali. The road starts from Khol-
apur Surkhet highway at Chhinchu and passes through Rimna.
A bridge over Bheri River Rimna has not been constructed yet.
Another bridge either over Bheri River or over Nalsyagu Gad
river will be required to connect the project site at powerhouse.
Apart from this approximately 40 km of project road is re-
quired to provide access to the major structures of the project
before the construction of this project. An alternative access, a
seasonal motorable road, from the Rukum airport to the pow-
erhouse site is also available at the site.

The topographical survey, reservoir mapping, hydrological
study and geological study inclusive of surface geological map-
ping, seismic refraction survey (8050 m), drilling (605 m) have
been completed. Detail transmission line survey to evacuate
the power from power house to national grid has been carried
out. Environmental studies of the hydropower and transmis-
sion line have been initiated.

The project has been designed to produce 410 MW of power.
Full supply level has been fixed to 1570 masl. About 200 meter
high rock fill dam, 8.2 km long headrace tunnel and 1100 me-
ter long drop shaft have been proposed with an underground
power house housing four units of pelton turbines. The reser-

A YEAR IN REVIEW
FISCAL YEAR 2011/12

voir has live storage of 296.37 million cubic meter. The design
discharge of 75.0 cumecs will utilize 635.80 meter of net head
to produced 1406.06 GWh of annual energy. Total useable en-
ergy in the system is estimated to be 794.17 GWh where as
the spill energy is estimated to be 611.89 GWh. The power is
proposed to be evacuated to the national grid through 112 km
400kV transmission line with substation at Kohalpur.
Kaligandaki Storage Project

Kaligandaki Storage Project lies in Nawalparashi district of
Western Development Region of Nepal. The project site is lo-
cated in Kaligandaki River, about 25km upstream from Devghat
where the Kaligandaki joins the Trishuli river Basin. The pre-
feasibility of Project was completed in 1985. The project site
of this project lies approximately 20 km trom Gaindakot, Nawal-
parasi via earthen road.

The Project is in its initial stage of feasibility study with site
reconnaissance and hydrological study perfomed in the fiscal
year 2011/2012.The application for the survey license for the
study of the project is submitted to the Department of Elec-
tricity Development (DoED) in the year 2011/2012.The pre-
feasibility study has recommended a 177 m high rockfill dam
on Kaligandaki river, at Khalte and the powerhouse located at
the toe of dam. The dam will create a reservoir of 106.5 sq.km
with full supply level at 375 masl with gross capacity of 5200
M m3. The study proposed the project with installed capacity of
660 MW with annual firm energy of 3470 GWhr.

The hydrological study of the project has been updated. A
gauging station has been established just upstream of the pro-
posed dam site of the project. The further study of the project
is planned to be carried out in fiscal year 2012/13.

Dam site area (Kaligandaki 2)

Nisti Panah Storage object
Nisti Panah Storage Project lies in Gulmi district of Western
Development Region of Nepal. The project is located at Chhaldi

khola which is one of the main tributary of Badigad Khola. The
project site is accessible via earthen road of approximately 15
km from Tamghas, district headquarter of Gulmi district.

The Project is in its stage of pre-feasibility study on going in the
fiscal year 2011/2012.The application for the survey license
for the study of the project is submitted to the Department of
Electricity Development (DoED) in the year 2011/2012. The
ongoing study has recommended a 200 m high rockfill dam
on Chhaldi Khola which lies approximately 2.5 km downstream
of the confluence of Nisti Khola and Chhaldi Khola and the
powerhouse is located on the right bank of Badigad Khola
about 31 km from Riddi bazaar, Gulmi District and about 7 km
downstream of confluence of Chhaldi and Badigad Khola. The
dam will create a reservoir of 9.90 sq.km with full supply level
at 891 mas! with gross capacity of 430.80 M m3. The study
proposed the project with installed capacity of 189.60 MW with
annual energy generation of 389.50 GWhr with 6 hrs opera-
tion daily.

The topographical survey, preliminary geological and hydro-
logical study of the project has been completed .A gauging
station has been established at damsite and powerhouse site
of the project. The further study of the project is planned to be
carried out in fiscal year 2012/13.

Dam Site Area (Nisti Panah)

Tamor Storage Hydropower Project

Tamor Storage Hydropower Project lies in Terhathum and
Panchthar districts of Eastern Development Region. The Proj-
ect was identified during the Koshi River Basin Master Plan
Study during 1985. Further studies on the project started only
in 2009, after about 25 years of its identification. The Project
is in its initial stage of study. As per the study conducted so
far, the Project will have an installed capacity of 530MW and
an annual energy generation capacity of about 2406GWh. The
Project site can be accessed via Biratnagar — Dhankuta- My-
anglung black topped road. An earthen tract of about 25 Km

Nepal Electricity Authority। 67

Dam Site Area (Tamor Storage Project)

connects Myanglung to Lambhughat which is located at about
1.5 Km upstream of the proposed dam site. Being a reservoir
project with seasonal storage capacity and suitably located to
cater the energy hungry industries of Eastern Development
Region; this is one of the promising storage projects being
studied by Project Development Department.

The topographical survey, preliminary geological and hydro-
logical study of Tamor Storage project has been completed
with the assistance from JICA. A gauging station has been es-
tablished at Lambhughat on Tamor River. The PDD completed
the site reconnaissance study and Power Evacuation Study
identified and confirmed the new license for generation for this
Project at DoED.

Upper Modi "A" Hydroelectric Project

Upper Modi "A" HEP was identified during 1997 and the Feasi-
bility study of this project was completed in 2000. The Environ-
mental Impact Assessment (EIA) of the project was approved
in 2004. Presently this project is conceptualized to be devel-
oped as a 42 MW run of the river scheme.

68। Nepal Electricity Authority

Upper Modi A Headworks Site

A YEAR IN REVIEW
FISCAL YEAR 2011/12

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2967 Modi 'A' and Upper. eke) Prac

Hing Ceremony for, 7 A
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Publigdfrivate Partnershig

This project is located approximately 250 km west of Kath-
mandu in Kaski District of Gandaki Zone in the Western Devel-
opment Region of Nepal. Both the headwork and powerhouse
site of the project is located in Ghandruk VDC. The nearest
road head to the project site is at Nayapul, about 38 Km west
of Pokhara on Pokhara Banglung highway. Approximately 8 km
of gravel road and a steel truss bridge over Modi Khola has al-
ready been constructed by the local VDC. This bridge connects
Nayapul to the powerhouse site at Sauli Bazar. Therefore, ap-
proximately 10 Km of access road need to be constructed from
powerhouse to the headwork site at Himalku. Around 7.5 Km
long 132 KV single circuit transmission line will be required to
evacuate 214.87 GWh of generated energy to the INPS system
at New Modi Khola substation.

This project is conceptualized to develop in Public Private Part-
nership (PPP) model. Hence, a Joint Development Agreement
(JDA) was signed between Nepal Electricity Authority (NEA)
and Korean Water Resources Corporation (K-Water) on 27th
March 2012. By the end of this year K water will complete the
project review followed by the formation of Special Purpose
Company (SPC) with 20% NEA's share and 80% K- Water's
shares. Among the 80% K- Water's share, up to
10% share should be provided to the local people.

Tamakoshi-V HEP

Tamakoshi-V Hydroelectric Project is located just
downstream of the Upper Tamakoshi Hydroelectric
Project, being implemented by Upper Tamakoshi
Hydroelectric Company. This project is conceptu-
alized to operate in tandem operation with Upper
Tamakoshi HEP taking the design discharge from
the tailrace of Upper Tamakoshi HEP

This project is located approximately 170 km north
east of Kathmandu and approximately 42 km away
from Charikot Bazar. Topographical survey, hydro-

A YEAR IN REVIEW
FISCAL YEAR 2011/12

J =

Proposed Headworks Site
logical study and surface geological study were completed in
the previous fiscal year. In this fiscal year, a high flood level
measuring gauging station has been installed, construction
material survey, seismic refraction study of 2000m and 90
m of core drilling has been completed as a part of feasibil-
ity study. Feasibility design of this project for the 87 MW of
installed capacity is expected to be completed by this fiscal
year 2011/2012.

Indra Sarovar - Reservoir of Kulekhani Powerhouse

Bagmati Kulekhani Pharping Study Project

Under this study project every possible options have been
studied and the Bagmati Indrasarovar Water Pumping Project
is finally selected.

The Bagmati Indra Sarovar Water Pumping Project is located in
the Kathmandu, Lalitpur and Makawanpur Districts. The head-
works of the project lie in the Bagmati River about 3 km south-
east of Pharping Bazar at Katuwal Daha in Simpani Mukha
Basti village. The project lifts the water 350 m up from Bagmati

River to feed the Indra Sarovar, reservoir of Kulekhani —।.
The main objective of this study is to augment firm energy
from the three power plants of Kulekhani KL-1, KL-2 and KL-3
diverting water from the Bagmati river and feeding in to the
Indra Sarovar in case of if it is not filled completely from the
present source, during wet months.

The total power generating from the three powerhouses is 106
MW and the operation power required is 74 MW. The main ben-
efit of this proposed project is to generate power from higher
head than the smaller lifting head.

Gaudi Khola Headworks Site

The water from tailrace of KL-3 flows to the Rapti river sys-
tem. Therefore, this water will have impacts on the downstream
project such as Bagmati Multi Purpose Storage Projects.

Gaudi Khola (Khadgakot) Storage Project

Gaudi Khola (Khadgakot) Storage Project is a small reservoir
type Project, for which the preliminary study was proposed in
the fiscal year 2011/12 under the program of "Identification
and Selection of Storage Project" being carried out by PDD.

og - 4५,

Uttar Ganga Headworks Site

Nepal Electricity Authority। 69

The proposed project is located in Gulmi district of Lumbini
Zone in Western Development Region. An earthen road from
Ridi-Purtughat via Shantipur provides access to the project
area. The study so far has shown that the installed capacity of
the project will be 17 MW with an average annual generation
of 34.6 GWh.

The proposed project will have a rock fill dam of 135 m height,
2,900 m long headrace tunnel, surge shaft, 750 m long sup-
ported steel penstock pipe and a surface powerhouse on the
right bank of Gaudi Khola. The tentative project cost is esti-
mated to be US$ 152.96 Millions. With the project economic
indicators like IRR of 3.98% and B/C Ratio of 0.49, the project
is far from economic viability. Hence, it was recommended not
to apply for survey license for further study.

Uttar Ganga Storage Project

Uttar Ganga Storage Project is one of potential storage proj-
ects, for which NEA has proposed to initiate the feasibility study
in the FY 2011/12 under the program of "Identification and
Selection of Storage Project" being carried out by PDD. The
project was identified by NEA during "Identification and Feasi-
bility Study of Storage Projects" and after selection as one of
the prominent projects during coarse screening and ranking
study, the pre-feasibility Study of the project was carried out in
the FY 2003/2004. The proposed project is located in Baglung
District of Dhaulagiri Zone in the Western Development Region.
The dam site lies nearby Gaba of Nisi VDC and the reservoir
area lies in Boban VDC of the district within Dhorpatan Hunting
Reserve. About 30 km of access road from Boban, the nearest
roadhead to the dam site is required.

Uttar Ganga Headworks Site

As per the pre-feasibility study, the project will have the installed
capacity of 300 MW with average annual energy generation of
1,518 GWh in operation of 24 hours during November-May.
The major components of the project are 190 m high rock
fill dam, sloping type intake, 9,800 m long headrace tunnel,
circular restricted orifice surge shaft, 3,900 m long inclined
pressure shaft and horizontal tunnel and a powerhouse on the
right bank of Nisi Khola. The tentative project cost is estimated
to be 650 millions US$ at the price level of 2004. With the
economic indicators like IRR of 18.2% and B/C Ratio of 2.04
using LRMC, the project is very attractive from the economic
point of view.

PDD completed the site reconnaissance study of the project
in the FY 2011/12. The application for the survey license for
the study of the project has been submitted to DoEd. As the
permission from the Ministry of Forest & Land Conservation

70। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

has not been received, the field investigation works could not
progress as proposed in the current fiscal year 2011/2012.
An inception report based on the site reconnaissance visit and
review of pre-feasibility study is being prepared.

Indrawati Storage Hydroelectric Project

Indrawati Storage Hydroelectric project is located in Indrawati
River in Sindhupalchowk district of Central Development Region
of Nepal. The Indrawati river is a major tributary of Sun Koshi
river. The dam site is located at Indrawati river about 2 km
upstream from the bridge over Sun Koshi river at Dolalghat
on Araniko highway. As the project has been planned to be
developed as a toe development, the powerhouse will be locat-
ed just downstream of the dam. About 1km long access road
which takes off from the existing Araniko highway is required
to be constructed to reach the dam site.

NEA identified 102 medium sized storage projects with capaci-
ties ranging from 10 MW to 300 MW and carried out coarse
screening and ranking in Phase I. During Phase Il, a Fine
Screening and Ranking Study was caof 10 projects including
Indrawati storage was carried in 2000. The study conducted
option study of Rockfill and concrete dam and concluded that
rockfill dam option is better and recommended accordingly.
The height of the Dam is 111m. Its installed capacity is 91.2
MW. It can generate 384 GWh of annual energy including dry
season energy of 116 GWh. The capital cost of the project is
estimated at 198.72 million US$ at 2000 price level. The B/C
ratio and IRR of the project are 0.76 and 7.4% respectively
based on the project economic analysis. The study concludes
that the project is good from the point of access and location.
The project lies at fair geological condition. The main impacts
associated with the project will be relocation of 460 house-
holds and inundation of about 810 ha of fertile agricultural
land. Thus the project is technically feasible but possesses sig-
nificant environmental impacts. The project is not economically
feasible as the B/C ratio is less than unity and the IRR is less
than the discount rate considered at 10%.

In the current FY 2011/12, review study of the Indrawati stor-
age project is in progress. A multi desciplinary team of profes-
sionals of NEA including the director of Project Development
Department (PDD), NEA and Mr. Ozaki, JICA Expert to NEA
visited the site on August 26, 2011 to review and reexamine
specially the dam site. A separate site visit report was pre-
pared and submitted by the JICA expert to PDD, NEA. The team
assigned for the project prepared a Project Review Report.
The main features of the report are summarized in the follow-
ing paragraphs.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

* Survey license are either issued to IPPs or IPPs has
applied for survey license for several hydropower proj-
ects in Indrawati River and its tributaries. Among them,
Indrawati-Sunkoshi Project (46 MW) having coordinates
of 27035'45"- 2704120" to 85040'00"- 85041'00"
applied by Koshi Hydropower Co. Ltd. for survey license
will affect the Indrawati Storage Project.

० A roock fill dam is suitable from the topographical condi-
tions which is relatively gentle and the geological condi-
tions consist of fragile phyllite. Waterway and powerhouse
will be aligned on the left bank and the spillway will be
located on the right bank in consideration to topography
and geology at the dam site.

The height of the Dam is 109m. Its installed capacity is 78
MW. It can generate 334 GWh of annual energy including firm
energy of 1172.9 GWh. The capital cost of the project is esti-
mated at 459.32 million US$ at 2011 price level. The B/C ratio
of the project is 0.88 based on the project economic analysis.
The study concludes that the project is good from the point
of access and location. The dam site conditions are not so
appropriate topographically and geologically. Some amount of
river discharge will be diverted by the ongoing Melamchi water
supply project and inflow volume will be decreased. The main
impacts associated with the project will be relocation of 460
households and inundation of about 810 ha of fertile agricul-
tural land as of 2000, the both are derived from "Identifica-
tion and Feasibility Study of Storage Projects in 2000 by NEA".
Thus the project is not economically feasible as the B/C ratio of
0.88 is less than unity.

Master Plan Study on Storage-type Hydroelectric Power
Development in Nepal

The Nationwide Master Plan Study on Storage Hydroelectric
Power Development in Nepal is being conducted on the basis
of the Scope of Work agreed between Japan International Cop-
eration Agency and the Ministry of Energy of Nepal with Nepal
Electricity Authority as the counterpart agency. The study aims
to prepare a master plan for storage type hydroelectric power
developments for domestic demand in Nepal for the coming
20 years from the year 2013 by selecting promising candidate
projects in the range from 100 MW to 300 MW from a list of 65
potential projects as listed by NEA.

The study started off in Japan from the end of December 2011.
The first work period in Nepal began from January 2012 up to
the end of February 2012. The first stake holder's meeting
was held in February 2012 in Kathmandu. The second work
period for the JICA team in Kathmandu was from the beginning

of May up to the end of June 2012. The end of the second
work period concluded with the selection of four storage proj-
ects. Reconnaissance site visits were also conducted for these
four projects.

Andhi Khola Storage Hydroelectric Project

Andhi Khola Storage Hydropower Project lies in Syangja district
of Western Development Region to fulfill the peaking demand
of the country. The feasibility study of this project was com-
pleted in 1998 by NEA. As per this study, the project will gener-
ate about 693 GWH of energy annually with installed capacity
of 180 MW. NEA has applied for survey license of this project
in the fiscal year 2010/11. In fiscal year 2011/12, the project
Development Department (PDD) has completed a new topo-
graphical survey of dam site and powerhouse site, installed
the gauging stations at the dam site, carried out the sediment
sampling at the dam site as the part of the upgraded feasibility
study of the project. PDD plans to begin environmental impact
study (EIA of this project in 2012/13 provided that the survey
license is issued to NEA by DOED. Apart from this, PDD shall
carryout the geotechnical investigation and design works in
this fiscal year.

Andhi Khola Headworks Site

Kali Gandaki 'A Model Test Project

Kali Gandaki 'A Hydropower Project (KGA) was commissioned
in August 2002. It has an installed capacity of 144 MW and is
the largest hydropower project in operation in Nepal till date.
From the very beginning year of its operation, the power sta-
tion has been facing problems related to floating debris and
sediment at its headworks. The hydraulic performance of the
headworks and desander has also been below par leading
to unexpected damage to turbines and other hydromechani-
cal parts resulting in frequent shutdowns for repair and this
has caused a loss in the overall generation from the project.
To identify the cause behind these problems and to propose

Nepal Electricity Authority। 71

Kaligandaki A Model Testing

appropriate remedial measures, the World Bank has provided
financial assistance to conduct a physical hydraulic model study
of the KGA headworks., Hydro Lab Pvt. Ltd. has been appointed
to carry out the physical model study.

The consultant has collected necessary data, reports and field
measurements required for the model study. Then, the consul-
tant constructed the model of the Kaligandaki A headworks at
1:40 scale and simulated various flow scenarios at the prem-
ises of Hydrolab Pvt. Ltd. at Pulchowk, Lalitpur. The consultant
has submitted the draft final report. The consultant has simu-
lated various possible modifications and recommended the
possible modifications for improvement of sediment and debris
handling at headworks and desander of KGA.

Upper Arun Hydroelectric Project

The Arun River is bestowed with high firm flow and steep river
gradient making very favorable for the hydropower develop-
ment. The Upper Arun Hydroelectric Project, which lies on the
upper reach of the Arun River, is one of the most attractive
projects in the Eastern Development Region of Nepal. Based
on the feasibility study carried out on 1991, the installed ca-
pacity of Peaking Run-of —River type Upper Arun HEP is 335
MW. The design discharge of the project is 78.8 m3/sec and
generates the firm energy of 2050 GWh per annum. The proj-
ect has design head of 492 m. The total cost of the project is
US$ 479 Million. Similarly, this project has an economic internal
rate of return of 14.52 and specific energy cost of the project
is 1.90 cents/kWh.

Recently the Review Study of this project is carried out by NEA.
The project cost is revised based on the today's unit rate, pre-
vailing road facilities which is already built up to Num, near the
dam site of Arun 3 HEP and transmission line. The total project
cost at present cost is calculated to be 445.54 M US$. The
review study also shows the increment in the annul generation
to 2734.2 GWh. This makes the project more attractive than
presented in the feasibility study.

72। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

The review study shows that the project is very attractive in
both the cases either the project is constructed by NEA with the
loan taken from Nepal Government or the project is develop
by NEA by taking loan from commercial bank. The estimated
energy cost of Rs. 2.10 per kWh as of today is far below the
prevailing rate offered in power purchase agreement (PPA), if
the project is developed by NEA with finance from international
donor agencies. The cut off energy rate is Rs. 2.74 per kWh
from the year 2020 on ward.

Burhi Gandaki Hydropower Projects

Burhi Gandaki Hydroelectric Project is a storage type of proj-
ect located between boundary of Gorkha and Dhading district
on the Burhi Gandaki River in Central/ Western Development
region of Nepal. After identification during the Gandaki Basin
Study in 1978, the prefeasibility study was completed by De-
partment of Electricity in 1984. The prefeasibility study found
that the project with the option of 600 MW will be the most
promising and recommended option for the project develop-
ment. The major components of the project will be as follows:

० — Rock fill dam of height 225 m with full supply level at 520
masl incorporating an ogee type gated spillway;

० — Reservoir having the area of 50 km2 and the live capacity
of 3,320 million cubic meter;

* — Shaft type intake having three gates of size 4.25 m x 10.0 m;

०  Headrace tunnel of length 276 m having finished diam-
eter of 12.0 m;

* — Steel penstock of the length 3,900 m and diameter 4.0 m;

¢ Underground powerhouse accommodating 4 units of
electro-mechanical equipment;

० — Tailrace tunnel of length 1.1 km having the size of 13 mx
13 m.

० The proposed Storage Project has been envisaged to
generate annual energy of 2,500 GWh with the estimated
cost of US$774 millions.

Though the prefeasibility study has recommended the proj-
ect to be implemented immediately, the project remained in
hibernation for about 26 years, With the onset of the acute
energy crisis during dry season, studies have been reinitiated
by NEA since the fiscal year 2010/11 realizing the attractive-
ness of the project due to the ability to generate dry season
energy and proximity to Kathmandu, the major load center of
the country. The additional studies carried out additional stud-
ies in that year includes hydrological investigation and studies,
household counting in the reservoir area establishing 62 sur-
vey monuments and identification of alternate powerhouse and
tailrace location near Fisling around 10 km downstream of the
Benighat in Trisuli river with the possibility of additional gen-

A YEAR IN REVIEW
FISCAL YEAR 2011/12

eration of about 700 GWh. Ministry of Energy has also issued
the survey license of BGSHEP to Nepal electricity Authority.

The GoN has given a high priority for the development of the
project citing it as one of the projects of national pride. NEA
has received the fund from GoN toward the cost of consulting
services for feasibility study and detail design of the project.
Procurement of consulting services to prepare the project for
implementation from the current status of pre-feasibility study
is in progress. The overall objective of the planned further
study is to carryout necessary field investigation and upgrade
the existing pre-feasibility study of Budhi Gandaki Hydropower
Project to a feasibility level, prepare a detailed design and ten-
der documents and tender drawings, and prepare Environmen-
tal Impact Assessment, Social Impact Assessment, Environmen-
tal Management Plan. In accordance with the QCBS selection
method, the selection of the consultant is being carried out in
two phases. In the first phase six (6) firms were short listed
from a long list of 24 firms who submitted their Expressions of
Interest. All six (6) short listed firms submitted their proposals
within the stipulated due date for submission. The technical
proposal of three firms is accepted and the financial document
is scheduled to open on July 25, 2012. The process of selec-
tion of the Consultant and Award of Contract for is scheduled
to be completed by the end of august 2012. Feasibility study
and detail engineering design of the project is aimed to be
completed within two and half years in February 2015. It is
also envisaged to complete financial closure by mid 2015 and
tendering and contracting by the end of 2015. After this the
construction of project can be completed within the 6 years.

Dudhkoshi Storage Hydropower Project

Dudhkoshi Storage Hydropower Project is another reservoir
type project identified during the Koshi basin study in 1985.
it lies in Khotang and Okhaldhunga districts of Eastern Devel-
opment Region. The Project was studied further in 1995 by
Medium Hydropower Study Project. The studies done so far
have shown that the installed capacity of the project will be
300 MW with an annual energy generation capacity of 1806
GWH. A seasonal road from Khurkot of the Banepa — Bardibas
National Highway via Harkapur and Halesi to the proposed dam
site exists at present.

PDD completed the site reconnaissance study of this project in
the fiscal year 2067/68. The application for the survey licence
for the study of the project be submitted to DOED in the fiscal
year 2068/69 and an interim study of the project is currently
being carried out by Project Development Department.

Other Activities

In addition to the regular work consisting of carrying out stud-

ies at different levels for different projects, PDD has been car-

rying out various other activities which have been instrumental
in developing the institutional strength of Nepal Electricity Au-
thority in the field of consulting services. The following are the
few of the activities of PDD carried out during the fiscal year
2010/11:
* — Continuation of the construction supervision of Chameliya
Hydroelectric Project in association with the Joint Venture
of three local consulting firms (Shah SILT and ICON JV).
¢ The conduction of the annual sediment survey at
Kulekhani Reservoir.
* Construction Supervision of Bridge construction at
Devighat Hydropower Station
* Construction Supervision of Slope Stabilisation works
near Powerhouse of Puwa_ Khola Hydropower Station
० Preliminary Engineering Study of Slope Stability of
Kulekhani Valve house area and Puwa Khola Penstock
alignment
० — Initiation for the design of three new NEA Office Complex-
es based on the new master plan within the premises in
RatnaPark.
* Construction supervision of the following substation
buildings
-  Unichaur substati on building in Lalitpur District
(11kV-33kV)

-  Salyantartar substati on building in Dhading District
(33kV-66kV)

-  Chaughada substati on building in Nuwakot District
(33kV-66kV)

* — Detailed survey and design of Access Road of Upper Tri-
shuli 3 A HEP for upgrading of road from Trishuli Colony
to Upper Trishuli 3 B hub site at Champani.

* — Detailed survey and design of Access Road of Upper Seti
Storage HEP.

Air Sampling at Balanch, Powerhouse site of Chameliya HEP

Nepal Electricity Authority। 73

Air Sampling at Balanch, Powerhouse site of Chameliya HEP

Environment and Social Studies Department

The Environment and Social Studies Department (ESSD) of
Nepal Electricity Authority is one of the integral Departments
of Engineering Services, which executes activities related to
all aspects of environmental studies of hydropower and trans-
mission line projects being planned, designed, constructed or
operated by NEA. This Department located in Kharipati, Bhak-
tapur is a commercial unit of NEA with its technical expertise
in conducting

Environmental Impact Assessment (EIA), Initial Environmental
Examination (IEE), Social Impact Assessment (SIA), Resettle-
ment Action Plan (RAP), Vulnerable Community Development
Plan (VCDP) studies and Environment Management Action Plan
(EMAP) of hydropower and transmission line projects. This
department is also responsible for the implementation of envi-
ronmental and social mitigation measures, enhancement mea-
sures, community support programs and environmental and
social monitoring during construction and operation phases of
the project. Active public involvement in all phases of the proj-
ects is another major responsibility of the department.

Local People Participating in the Public Hearing of Upper Karnali HEP

74। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

During this fiscal year 2010/2011, ESSD 27 projects were
undertaken by ESSD which includes 7 are hydropower and
20 transmission line projects. The Department successfully
conducted several environmental studies out of which Scop-
ing Document and ToR for EIA of Kohalpur — Surkhet 132
kV Transmission Line Project has already been approved by
MoEST. Similarly, Terms of References for IEE of Koshi Corri-
dor 220 kV Transmission Line project and Solu Corridor 132 kV
Transmission Line Project has been approved by the Ministry
of Energy. The IEE report of Upper Trishuli 3 "A' - Matatirtha
220 kV T/L Project and Scoping Document and ToR for EIA of
Tamakoshi ४ Hydroelectric Project are at the stage of final
approval.

Typical landuse of Rahughat-Modi T/l Project

Environmental Monitoring of Khimti-Dhalkebar 220 kV T/L
Project has been completed and site offices at Sindhuli and
Ramechhap has been closed. The compensatory plantation
sites have been handed over to the the concerned District For-
est Offices and Community Forest User's Groups. At present,
additional Mitigation works for Khimti-Dhalkebar 220 kV T/L
Project is being carried out.

Three new site offices for Environmental Monitoring Units
(EMU) of Upper Trishuli 3 "A' HEP Kabeli-Damak 132 kV T/L
Project and Hetauda - Bharatpur 220 kV T/L Project has been
established in this fiscal year. The EMU of Chameliya HEP is
continuing construction phase Environmental Monitoring and
the implementation of mitigation programmes like Vegetable
and Livestock Training and Assistance Support, Social and en-
vironmental Awareness and Library Support and Extra Educa-
tional Activity have been implemented this year.

ESSD also participated in the Public Hearing of 900 MW Up-
per Karnali Project which is being promoted by GMR- India in
collaboration with NEA. NEA possess 27% of equity share in
the project.

Draft EIA Report of Upper Trishuli 3 "B" HEP has been pre-

A YEAR IN REVIEW
FISCAL YEAR 2011/12

pared and preparations for PublicHearing is being done. Simi-

larly, Draft IEE Reports of Rahughat- Modi 132 kV T/L Project

and Solu Corridor 132 kV T/L Project is being prepared.

The department has successfully completed SIA,RAP and VCDP

documents for Hetauda-Bharatpur 220 kV T/L and Bharatpur-

Bardaghat 220 kV T/L projects as per the requirement of the

World bank and obtained approval form the concerned agen-

cies. The Inception report for Hot Spot Study (Large mammal,

Monkey, Birds and Elephant) of Hetauda - Duhabi 400 kV T/L

Project has been submitted and approved from World Bank

and the field work is in progress.

Beside the above mentioned projects the following assign-

ments are at hand:

EIA of Tamor Storage HEP

EIA of Nausalgad Storage HEP

EIA of Upper Arun HEP

EIA of Modi - Lekhnath 132 kV T/L Project

EIA of Ramechhap - Garjyang 132 kV T/L Project

EIA of Manang Marsyangdi 220 kV T/L Project

EIA of Kali Gandaki Corridor 132 T/L Project

EIA of Kohalpur - Nausalgad 400 kV T/L Project

IEE of Sunkoshi 132 kV T/L Corridor.

IEE of Gulmi - Arghakhanchi 132 kV T/L.

. IEE Upper Dordi A 132 kV T/L Project

. IEE of Lamahi-Ghorahi 132 kV T/L Project

. Environmental Mitigation Monitoring and Management of
Balach—Attariya 132 kV T/L Project

९० त छ? छा PWN >

नल नाला नाना नाला (८)
८० ५) -" ८?

Soil, Rock and Concrete Laboratory
Soil, Rock and Concrete Laboratory (SRCL) established and
developing as Geotechnical Department under the Engineering
Services of Nepal Electricity Authority. It provides services in
material testing, geological and geotechnical investigations for
the different phases of a hydroelectric project development.
It provides services like geological mapping, various types of
geophysical surveys, core drilling and construction material
investigation at different levels to the different departments
of NEA and the private sector. In the field of soil and rock en-
gineering, it also provides services of carrying out in-situ tests
and laboratory tests viz. determination of index properties,
tri-axial tests, consolidation tests, point load tests, direct shear
tests, uniaxial compressive strength tests etc. on a regular ba-
sis for clients inside and outside NEA.
Following are the major works executed by SRCL in fiscal
year 2011/12
1) Geological and geotechnical investigation works of Nal-
509५ Gad Storage Project :
Geological and geotechnical investigation works includ-
ing 602 m core drilling, construction material survey and
Laboratory tests have been completed.

2) Karnali-7 HEP :
Drilling work of 710 meters has been completed in this
project under taken by Lanco Intratech, India. Laboratory
tests and final report preparation is in concluding stage.

3) Tanahu Hydropower Project (formerly; Upper Seti Storage
HEP) :
This project is under taken by NEA. The consultant re-
sponsible for desian work is J-Power of Japan.

Photo: Core drilling work at Karnali-7 HEP
A total of 835 m of core drilling (680m of the first stage,
and 155m of the second stage has been completed. Differ-
ent laboratory tests of the core samples are also going on
simultaneously. Further core drilling works of about 1300m
has been planned for this year and proposal for the work has
been submitted to Tanahu Hydropower Company.
4) Bheri-Babai Multipurpose Project :-
This project is under taken by Ministry of Irrigation. A total
of 270 m of core drilling out of 300 m has been com-
pleted. Different laboratory tests of the core samples are
also going on simultaneously.
5) Upper Modi-A HEP :-
This project is under taken by NEA. A total of 116 m of
core drilling out of 155 m has been completed. Detail

Nepal Electricity Authority। 75

engineering geological mapping of tunnel alignment and
geophysical investigations including different laboratory tests
of the core samples are also going on simultaneously.

6) Nisti-Panah Storage HEP :-

This project is under taken by NEA. Detail geological map-
ping and 2-D ERT survey is in progress.

5) Rasuwagadi HEP:-

This is under taken by Chilime hydro power company. A
total of 106 meters of drilling works has been completed
including laboratory test of core samples.

6) Rasuwa-Bhotekoshi HEP:-

This is also under taken by Langtang Bhotekoshi hydro
power company. A total of 130 meters of drilling works has
been completed including laboratory test of core samples.

7) Middle-Bhotekoshi HEP:-

This is also under taken by Chilime Hydro Power Company.
A total of 60 meters of drilling works has been completed
including laboratory test of core samples.

8) Solu-Katari-Mirchaiya 132kv Transmission line Project:-
Detail geological Mapping and geotechnical investigation
work of 90 km long transmission line from Lamane (So-
lukhumbu to Mirchaiya) has been completed.

Laboratory works:

SRCL provides laboratory services of carrying out in-situ
tests and laboratory tests including construction mate-
rial survey and quarry site investigations. Following major
works has been carried out in this fiscal year.

— Construction material survey and laboratory test of Kar-
nali-7 HEP, Rasuwagadhi HEP and Sisa Khola HEP has
been completed

— Sediment Test, Construction material survey and labo-
ratory test of Nalsyau Gad Storage Project and Tanahu
Hydropower company (Upper Seti Storage Project) has
been completed.

— Construction material survey and laboratory test of Mugu
HEP and Bheri-Babai HEPhas been completed.

— छिन pit excavation, sampling and laboratory test of So-
lu-Katari-Mirchaiya Transmission line corridor has been
completed.

In addition to these major project works, SRCL has carried out

various laboratory tests of rock and soil samples from private

sector hydropower projects.

For this fiscal year, SRCL expecting and planning of Exploratory

core drilling along with geological and geotechnical investiga-

tions of Saptakoshi High Dam project, Budhi Gandaki Storage

Project, Super Trishuli HEP and some more projects trom IPP

Photo: Standard Penetration Test at Solu-Katari-Mirchaiya

Transmission line corridor

In the fiscal year 2012/13, SRCL is planning to extend its scope

76। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

of works towards Adit Tunnel excavation, Geophysical Explora-
tion with latest equipments, Petrographic study of rock and
entire facilities on rock tests viz.

० — Triaxial test of rock

* Petrographical study of rocks

"० 50९९ durability test

* Plate load test

* Hydrofracture test

० — Dilatometer test

* — Rock sonic test
For this, a separate detail proposal for establishment of above
mentioned tests including cost have been forwarded to NEA
management.
Electromechanical Design Division
This division handles all of the electromechanical issues aris-
ing within Engineering Services. These issues range from the
design of electromechanical equipments of projects that are
under various stages of study. Apart from design of the elec-
tromechanical equipment, this division also runs and maintains
Central Workshop in Hetauda and manufacturers of concrete
poles from it's two Concrete Pole manufacturing Plants, one in
Kotre and the other in Amlekhgunj. During the last fiscal year
068/069, a total of 13324 concrete poles were manufactured
at the concrete pole plant in Amlekhgunj. Similarly, a total of
2124 concrete poles were produced from Kotre pole plant in
Tanahu, Pokhara.

Manufacturing of PSC Pole under process

A YEAR IN REVIEW
FISCAL YEAR 2011/12

NEA's Subsidiary and
Associate Companies

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Chilime Hydropower Company Limited
Chilime Hydropower Company Limited (CHPCL), a subsidiary
of Nepal Electricity Authority (NEA), is the first public limited
company in hydropower sector in Nepal. The company was in-
corporated in 1995 with an objective of hydropower genera-
tion through optimal utilization of resources within the country.
The majority of Company's ownership with 51% share belongs
to NEA. The remaining 49% shareholding belongs to general
public which includes 10% shares from local people.
CHPCL owns and operates 22.1 MW power plant located in Ra-
suwa district, 133 km North of capital city Kathmandu. The
Company is undertaking the development of four hydropower
projects with total capacity of 270.3 MW through following
three subsidiaries:

1. Rasuwagadhi Hydropwer Company Limited

2. Madhya Bhotekoshi Jalavidhyut Company Limited

3. Sanjen Jalavidhyut Company Limited

Chilime Hydropower Plant (CHPP)

The Chilime Hydro Power Plant, a peaking runoff river (PROR)
type plant with installed capacity of 22.10 MW, is delivering
energy to the National Grid through 38.5 km long 66 kV single
circuit transmission line at Trishuli Power Plant, Trishuli, Nuwa-
kot. During fiscal year 2011/12, the plant delivered a total of
156.083 GWh of Energy against the annual deemed energy of
132.795 GWh. Tunnel draining was carried out in the month
of March for the replacement of Valves as leakages were ob-
served. New Auma matic Drain) valves were fitted on both units
and mmanual Valves (Drain, Bypass, brake Nozzle) were re-

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Figure: Fitting of Repaired Pelton Runner on Unit-2 in Progress

placed by new ones. Also, Brake Nozzle Hydraulic Valve in Unit-
2 was replaced by new one while that of Bypass was replaced
by a repaired one. Replacement of old pelton runner of unit-2
by the repaired one was successfully done in the month of July.
The unit has been operating at its full potential since then.

Madhya Bhotekoshi Jalavidyut Company Limited

Madhya Bhotekoshi Jalavidyut Company Limited (MBICL), a
subsidiary company of Chilime Hydropower Company Limited is
undertaking the development of Middle Bhotekoshi Hydroelec-
tric Project with an installed capacity of 102 MW in Sindhupal-
chowk district. MBJCL has already completed financial closure
with debt: equity ratio of 50:50. Promoter equity structure of
MBICL to develop the project consists of 38% of CHPCL, 10%
of Nepal Electricity Authority (NEA), 1% of Nepal Araniko Hy-
dropower Co. Pvt. Ltd., 1% of Sindhu Investment Company Pvt.
Ltd. and 1% of Sindhupalchowk Hydropower Company Limited.
Similarly, general public share participation consists of 3.5% of
employees of promoting institutions, 1% of employees of EPF,
19.5% of contributors in EPF, 15% of general public and 10%
of local public of Sindhupalchowk district. The major activities
completed till the end of FY 2011/12 are as given below:

PPA has been made with NEA on 14th November 2011
with the commercial operation date on December 2016.
Loan agreement has been signed on 8th December 2011
between MBJCL, CHPCL and EPF for debt portion. MB-
JCL has planned to start the construction of MBKHEP by
2013 and targeted to complete the project by December
2016.

Nepal Electricity Authority। 77

० — Evaluation of Request for Proposal (RFP) for the appoint-
ment of Consultant is in final stage.

* — Pre-qualification for the selection of construction compa-
nies is in progress.

* Geological investigation including drilling in headworks,
surge tank and powerhouse as well as sub-surface ex-
ploration with ERT has been carried out to determine the
geological condition in the key structure locations.

० नै 250m long and 5m diameter test adit tunnel excavation is in
progress in the location of construction Adit-1.

¢ A Draft Environmental Impact Assessment Report of the
project has been submitted.

* Land acquisition process is in progress to acquire land
required for this project.

Sanjen Jalavidhyut Company Limited (SJCL)

Sanjen Jalavidhyut Company Limited (SJCL), a company pro-
moted by Chilime Hydropower Company Limited (Chilime) was
established on 1st February, 2010 AD with the objective of
harnessing hydropower potential of the county with maximum
participation of local people in the projects' ownership and
mobilization of local resources for the successful implementa-
tion of various hydroelectric projects. As the first initiative the
SICL has planned to develop two hydroelectric projects, namely,
Sanjen (Upper) Hydroelectric Project (14.8 MW) and Sanjen
Hydroelectric Project (42.5 MW) in cascade, with its own equity
and loan from financial institutions of Nepal. Both the projects'
financing mechanism will be 50:50 Debt: Equity ratio. 51% of
the equity part will be invested by the promoters of the com-
pany, which is composed of Chilime (38%), Nepal Electricity
Authority (10%) and District Development Committee (DDC)
and all 18 Village Development Committees (VDCs) of Rasuwa
(3%). For financing the remaining 49% of the equity invest-
ment, 910 will raise through share participation of the pub-
lic, which is composed of Depositors of Employees' Provident

78। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Fund (EPF-19.5%), Employees of EPF (1%), Employees of
Promoters (3.5%), General Public (15%) and Project Affected
Local People (10%). The Company has concluded loan agree-
ment with Employees' Provident Fund on 8th December, 2011
for financing 100% of the loan part in the two projects.
The Company has obtained Generation License from Ministry
of Energy for Sanjen HEP. Other preliminary works like land
acquisition, registration in the Department of Industry and
Environment Impact Assessment (EIA) have been completed
for these projects. Main Access Road (Chilime — Tiloche), ac-
cess road to Surge Tank and buildings construction works for
Camps and Offices is in progress. The Company has completed
the prequalification of contractors for Lot-2 Civil works, Lot-
3 Electromechanical Works and Lot-4 Hydromechanical Works
and short listing of Consultants for Final Design and Construc-
tion Supervision Works. Bids for Lot-2 Civil
यि Works are under evaluation, notice for In-
vitation for Bids for Lot-3 Electromechani-
cal Works has been published and Lot-4
Hydromechanical Works has been pub-
/ lished. The Company has scheduled the
construction of both simultaneously from
September 2012. The commercial opera-
tion dates for Sanjen (Upper) HEP and
Sanjen HEP are July 2015 and December
~ 2015 respectively. A total of 324.31 GWh
of electricity will be added into NEA Grid
within 2015 AD. The total cost of the two
projects is ५05. 7.24 billion excluding in-
terest during construction.

Rasuwagadhi Hydropower Company Limited
Rasuwagadhi Hydropower Company Limited (RGHPCL), a sub-

Chilime - Tiloche Access Road Construction

sidiary company of Chilime Hydropower Company Limited (Chil-
ime), has been established in 17th Shrawan, 2068, for the
implementation of Rasuwagadhi Hydroelectric Project (RGHEP)
in Rasuwa district which is a run-of-river type project with in-
Stalled capacity of 111MW.

RGHPCL has planned to manage its capital requirement from
debt and equity under the debt equity ratio of 50:50. The com-

pany will manage the debt requirement of the project from the

Employees Provident Fund (EPF) under the term loan arrange-

ment and equity investment will be made from 51% promoter

share (Chilime - 33.0% and NEA - 18%) and 49% public share

including 10% to the local people.

RGHEP utilizes a gross head of 167.90 m by diverting the

flow of Bhotekoshi river through a 4.203 km long tunnel to an

underground powerhouse. The design discharge of the project

is 80 cumecs and installed capacity is 111 MW. The net head

of the project is about 158.48 m. RGHPCL has planned to start

the construction of RGHEP by January 2013 and targeted to

complete the project by the end of December 2016. The status of

the Project at the end of fiscal year 2011/12 is as follows:

* Detailed project report of the project has been accomplished.

* — The EIA report has been approved from the Ministry of
Environment.

* — PPA has been signed with NEA on November 14, 2011.

* The tri-partite loan agreement for the construction of
project has been signed on 8 December, 2011 between
RGHPCL, Chilime and EPF.

* — The evaluation of pre-qualification document is in progress.

* — Detail design and tender document preparation for camp
facilities is in progress.

* PQ document for Electro-Mechanical works is in final stage.

* — Construction of 260m Test Adit tunnel (Figure 2) to in-
vestigate the geological condition of the underground
powerhouse is in progress

* — Land acquisition process is in progress.

* — Selection of Consultant for the project is in final stage.

Upper Tamakoshi Hydropower Limited
Upper Tamakoshi Hydropower Limited(UTKHPL) was formed
as a subsidiary company of NEA on March 9, 2007 with the

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Figure 1: Construction of Test Adit Tunnel

primary objective of developing and managing 456 MW Up-
per Tamakoshi Hydroelectric Project (UTKHEP) utilizing the
financial and the technical resources from within the country.
NEA is the major shareholder of the Company with 41% stake.
Contributors of Employees Provident Fund (EPF) will contrib-
ute 17.28%, Nepal Telecom (NT) 6%, Citizen Investment Trust
( CIT) 2% and Rastriya Beema Sanathan ( RBS) 2% of the
share equity. The rest of the equity capital will be raised from
general public (15%), natives of Dolakha District (10%), NEA
and Company staff (3.84%), and staff of financial institutions
providing the debt for the Project (2.88%). A Seven-member
Board of Directors representing four from NEA, one each from
EPF and NTC and one free lancer [ to be nominated) for the
Company has been constituted after shareholder agreement
between UTKHPL and NEA, NT, CIT and RBS which was signed
on 26 July, 2010 ( Sravan 10, 2067). One member each from
CIT and RBS will represent the UTKHPL Board as invitee. A
tripatriate loan agreement between NEA, EPF and UTKHPL was
signed on 30 July, 2010 (Shravan 14, 2067) for NRs 10 Billion
loan and NRs 2 Billion Debenture. A loan agreement for Rs.
2 Billion each from CIT and RBS was signed on December 7,
2010 (Mangsir 21, 2067) and for Rs. 6 Billion from NTC was
signed on May 12, 2011( Baisakh 29,2068). The Government
of Nepal has also decided to provide loan up to NRs. 11.8 Bil-
lion during construction period in case of shortfall. With this,
the financial arrangement for the project has been completed.

Project Features

Upper Tamakoshi Hydroelectric Project (UTKHEP) is located in
Lamabagar Village Development Committee of Dolakha District
and is a peaking run-of-river type of project with 822 m gross
head, design discharge of 66 m3/s and Installed capacity of
456 MW. The Project will be generating about 2,281.2 GWh of

Nepal Electricity Authority। 79

energy annually. The major components of this Project are: an
intake, a 22.0 m high concrete dam, twin desanding basins,
7.86 km long headrace tunnel, 360 m high surge shaft, 495
m long penstock pipe, underground powerhouse with six units
of pelton turbines, 2.9 km long tailrace tunnel and 47 km long
220 kV transmission line to Khimti substation.

Financial Management of the Project

The total cost of the project is estimated at 441.17 MUSD
without interest during construction (IDC). Out of the total esti-
mated cost of 441.17 MUSD, Project Costs amount to 376.26
MUSD and Price Contingencies amount to 29.81 MUSD. Simi-
larly, VAT is estimated at 24.89 MUSD and while Taxes and Du-
ties are estimated 10.21 MUSD. The project funding comprises
of NRs 10.59 Billion (30%) of equity and NRs 24.70 Billion
(70 %) of debt.

Project Status

Power Purchase Agreement ( PPA ) with NEA was signed on
December 29, 2010 (Poush 14, 2067). The PPA rate agreed
stands at NRs 3.5 average per KWh for the base year (
2010/11) and NRs 4.06 average per KWh at required com-
mercial operation date (RCOD).

JV Norconsult AS —Lahmeyer International GmbH (JVNL) is the
Engineer for consultancy services for construction supervision
and the Ms. Sinohydro Corporation, China is the Contractor for
the main civil works ( LOT-1). Texmaco India Limited has been
awarded the contract for Hydromechanical works (Lot-2) while
Andritz Hydro GmbH, Austria has been awarded contract for
Electromechanical works (Lot-3). The tendering process is un-
derway from the prequalified contractors for Transmission and
Substation works (Lot-4). Similarly, procurement process for
"Management Team" including Chief Executive Officer (CEO ) of
UTKHPL is underway.

Honorable Prime Minister Dr. Baburam Bhattrai inspected
the project construction works on June 11, 2012 (Jestha 29,
2069). Honorable the then Prime Minister Mr. Jhala Nath Kha-
nal laid foundation stone at underground powerhouse site, Gongar on May 18, 2011 ( Jestha 4, 2068 ) signaling the
construction of main civil works. Upgrading of Dolakha Sin-
gati raod (35 Km) and the construction of access road from
Singati to Lamabagar (28.6 Km ) has been completed.
The construction works in the project at different front such
as Dam, Intake, Headrace Tunnel, Surge shaft, Powerhouse
and Tailrace tunnel are ongoing at full swing. Around 4 km of
excavation of tunnel works has been completed by the end of
fiscal year 2011/12.

Power Transmission Company Nepal Limited (PTCN)
In Mid 2006 IL&FS, NEA and Power Trading Company of India
(PTC India) with support from the then MOWR/MOF Nepal and

80। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Embassy of India in Nepal took initiative to facilitate the de-
velopment of transmission interconnection between India and
Nepal for the mutual interest and benefit of both the countries.
Following three cross border interconnections were identified
by Power Exchange Committee.

¢ — Dhalkebar-Mujaffarpur 400kV Transmission Interconnection
० — Duhabi-Purnia 400kV Transmission Interconnection

¢ — Butwal-Gorkhapur 400kV Transmission Interconnection
Among above Dhalkebar-Mujaffarpur 400 kV Transmission
Line (D-M line) was prioritized in the first phase and decided
to realize in commercial modality. According to this modality,
the transmission line would be developed by two Companies,
one each in India and Nepal and NEA would buy the whole
Transmission Capacity from the Companies. Furthermore, NEA
would enter into a long term Power Purchase Agreement with
PTC India. Consequently, JVC-Nepal called Power Transmission
Company Nepal Limited (PTCN) was established in Nepal in
2007 with NEA and IL&FS as 50:50 equity partners. Likewise
JVC- India called Cross Border Power Transmission Company
India (CPTC) was established in India with a sole ownership of
ILG&FS, India. Later, it was decided to induct Power Grid Com-
pany of India Limited (PGCIL) in PTCN as a new partner, result-
ing in new equity structure of PTCN. The new equity structure
comprises of 64% shares of NEA, 10% of IL& FS Energy
Development Company (IEDC) and 26% of PGCIL. Out of the
64% share of NEA, 14% will be divested to Nepalese Financial
Institutions. Similarly NEA, PGCIL and Sutluj Jul Vidhyut Nigam
Limited (SIVNL) were inducted in CPTC, resulting in new equity
structure as IEDC: 38%, PGCIL: 26%, SJVNL: 26% and NEA:
10%. To this effect a Share Holder's Agreement (SHA) was
signed on 9th July, 2012 in Kathmandu. The responsibilities of
these companies include development, construction, operation
and maintenance of the Dhalkebar-Mujatfarpur 400 kV Trans-
mission Interconnection (D-M Line).

The PTCN will construct, operate and maintain an approximately
40 km of transmission line from Dhalkebar to Bitthamod near
Indo-Nepal border in the Nepalese territory and around 100
km of line in India will be constructed, operated and maintained
by CPTC. NEA will pay Transmission Service Charge to Both
the Companies for the booking and usage of the whole Capac-
ity of the Transmission Line. The two separates Agreements
namely Implementation and Transmission Service Agreement
(ITSA) that governs the legal provision for the construction,
operation, maintenance of the line and payment mechanism
by NEA has been signed between two Companies and NEA on
December 13, 2011.

This transmission interconnection is envisaged to be initially
charged at 220kV and would be operated in synchronous
mode between two grids. The Nepalese portion of the project
cost is estimated at NRs 1.28 billion (USD 20.0 million) out

A YEAR IN REVIEW
FISCAL YEAR 2011/12

of which USD 13.2 million is to be funded by Government of
India as a line of credit to GoN through Exim Bank of India
and remaining portion of the costs would be funded through
shareholder's equity.

NEA has also signed Power Sale Agreement (PSA) with PTC
India for purchase of 150 MW of power for long term. The
signing of ITSAs and PSA will lead to the financial closure of
the project. The construction of the Dhalkebar-Mujaffarpur
D-M line is expected to be complete in December 2014.

Trisuli Jalvidyut Company Limited

Trisuli Jalvidut Company Limited (TJCL) is a joint venture Com-
pany of NEA and Nepal Telecom established on Baisakh 29,
2068. The main objective of this company is to develop the
Upper Trisuli "3B" Hydroelectric Project with installed capacity
of 37 MW located in Nuwakot District. The Project is expected
to generate 296 GWh of energy annually. The estimated cost of
the Project is 68.0 MUSD. The equity structure of the company
is as follows: Nepal Electricity Authority: 30%, Nepal Telecom:
30 %, Village Development Committees and District Develop-
ment Committees of Rasuwa and Nuwakot districts (DDC and
VDCs): 5 %, financial institutions formed by the natives of Ra-
suwa and Nuwakot: 5 %, natives of project affected district
(Rasuwa and Nuwakot:10 %, general public:15 % and em-
ployees of NEA and Nepal Telecom in proportion to employees
ratio: 5 %. The company has six Board Members, three each
from NEA and Nepal Telecom.

The Project has completed its feasibility study, scoping docu-
ment and terms of reference for environmental impact assess-
ment study. The detail engineering is expected to be complete
by the end of year 2012. The Project is targeted to be commis-
sioned by the end of 2016 AD.

Signing of Shareholder's aggreement of PTCN

Tanahun Hydropower Limited
The Upper Seti Hydropower Project is a 140 MW reservoir project
planned to be constructed on the Seti River in Tanahu district.

The Detailed Engineering Study (DES) is being carried out
since August 2011 with the financial assistance of Asian De-
velopment Bank (ADB), for which J-POWER has been engaged.
In addition, ADB has also engaged Price Waterhouse Coopers
(PwC), India for safeguard related studies, project structuring,
and other studies under a Project Preparation Technical Assis-
tance (PPTA). Both the DES and PPTA consulting activities are
in the advanced stage of completion.

The physical project consists of a 140 m high RCC dam about
1 km upstream of the confluence of Seti and Madi river in
Damauli, and about 1500 m long tunnel, and an underground
power house. The dam will create a 25 km long reservoir with
surface area at FSL (EL.415) of about 6.5km2. One of the key
features of the project is flushing of the sediments in the reservoir.

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The project is being planned to be developed through a Special
Purpose Vehicle (SPV) as a subsidiary company of NEA. The
Tanahu Hydropower Limited (THL) has been registered for this
purpose. For the provision of the project management and
engineering services a Project Management Consultant (PMC)
is being hired. The procurement of PMC is being carried out by
the Asian Development Bank.

Asian Development Bank and JICA have shown keen interest in
the financing of the project construction. Discussions with the
above donors have been held on several occasions over the past
one year on various aspects of the project, including the project
structuring. PMC is also expected to invest in the project.

Land acquisition for the road and the camp facilities is in the
advance stage, with acquisition of land planned to be com-
pleted in the current fiscal year.

Development of infrastructure such as access road and bridge
is being planned in the FY 2069/70. The project has floated
tender for the construction of a RCC bridge over the Seti River.
The bidding for the construction of access road will begin soon.
If all go well including the lining up of the financing of the
project, the bidding process for the procurement of project
construction works is expected to begin in the second quarter
of 2013.

Nepal Electricity Authority। 81

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Central Activities

82। Nepal Electricity Authority

Information Technology Department

Information Technology Department is responsible for all IT related activities within NEA and
is headed by a Director. The Department has completed a fruitful year with the introduction
of new innovative IT services such as IP telephony, Biometric attendance system apart from
continuous Information and communication Technology (ICT) development, maintenance and
support. The Department made further enhancements and extensions to the network infra-
structure and server systems to provide reliable and transparent e-bidding services and
continued its support as a service provider to Chillime Hydropower Company Ltd. for providing
email, e-bidding and computer server / network based services.

During the year under review, more than 254 tenders were fed into the system for e-bidding
service. Out of this total, 37 tenders were for Building and Construction, 38 tenders were for
Consultancy & Others and 173 bids were for Electricity and Equipment. Similarly, three tenders
each were also fed into the system for Road Construction and Maintenance and Vehicle and
Spare Parts. A total 43 tender award notice was also fed into the system. The introduction of
the e-bidding has transformed the procurement process of NEA into a transparent, trustwor-
thy and up-to-date system.

The Department also continued laying fiber cables within the Kathmandu valley. Almost all the
major Distribution Centers within the valley are now connected and the Department is geared
up to connect the remaining few locations within a couple of months. This has rendered a
possibility for introducing any branch payment system within the valley very soon.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

During this fiscal year, customized accounting and inventory
(CAIS) of NEA was introduced to very remote locations such
as Helambu, Ghamgad, Doti, Dolpa, Bajhang, Khadbari, Diktel,
Baitadi, and Darchula distribution centers and branches. The
implementation of CAIS and payroll system now remains to be
introduced in very few branches within NEA.

The Department also made a contributing role towards the
implementation of computerized billing systems. A team of
engineers was assigned this year to take up the task of imple-
menting the billing system at several billing locations.

The Department introduced Biometrics attendance system in
more than 18 locations of NEA this fiscal year. The Department
further revamped NEA website this year with attractive design
and improved services.

Corporate Planning and Monitoring Department

Corporate Planning and Monitoring Department is responsible
for developing corporate development plans and programs, for
carrying out periodical monitoring and evaluation of projects
implemented by NEA and for assisting the National Planning
Commission, Ministry of Energy and Ministry of Finance in the
preparation of national budget by providing data related to
projects undertaken by NEA.

In addition, the Department also provides necessary support
to NEA management and data input for studies undertaken by
various organizations on topics related to NEA. This Depart-
ment also assists in obtaining new licenses and any extension
there of as required for development of power projects. During
the year under review, NEA obtained one survey license each
for transmission line and hydropower project. Similarly, the va-
lidity of survey licenses was extended for three transmission
lines.

The Department also plays coordinating role in the develop-
ment of hydropower projects under different financing mode.
During the hear under review, a Joint Development Agreement
was signed with K-Water of Korea for the development of 47
MW Upper Modi 'A' Hydropower Project located in Myagdi Dis-
trict.

During fiscal year 2011/12, the Department collected, evalu-
ated and reviewed monthly, quarterly and annual progress of
177 the projects being implemented under various Business
Groups of NEA. The Department also furnished various data
and reports to Ministry of Energy (MoEn), National Planning
Commission (NPC) and other concerned authorities of Nepal
Government.

Loss Control Division

Loss Control Division was created as a special task force in
August 2011 with the objective of monitoring and controlling
technical as well as non technical electricity losses of NEA. It is
headed by a Manager and reports its activities directly to the
Managing Director. This Division is responsible for monitoring,
carrying out surprise check and testing the energy meters and
associated equipments installed in the consumer premises. It
is also responsible for patrolling distribution lines to monitor
the unauthorized uses such as tapping and hooking. The Divi-
sion carried out surprise checks of many industrial, commercial
and domestic consumer premises to test the energy meters.
The Division has completed a fruitful year by finding out net
recoverable 21,806,964.53 kWh (units) of electricity which is
equivalent to worth Rs. 112,827,079.30 from the various dis-
tribution centers of NEA.

NEA Board Matters

Mr. Hariram Koirala, Secretary, Minister of Energy was appoint-
ed Chairman of Board of Directors of NEA. Mr. Krishna Hari
Banskota, Secretary, Ministry of Finance continued as Board
Member. Similarly, Mr. Biswa Prakash Gautam, Mr. Mohan Raj
Panta and Dr. Krishna Prasad Dulal were appointed Board
Members by the decision of Government of Nepal effective
from Aswin 13, 2068 BS. Mr. Tek Nath Acharya was appointed
Board Member by the decision of Government of Nepal effec-
tive from Marga 12, 2068 BS. Mr. Mahendra Lal Shrestha, took
over as Membeer Secretary of the Board with his appointment
as Acting Managing Director of NEA.

During the year under review, altogether forty six Board meet-
ings were convened to deliberate and decide on various agen-
da. Scores of important and far reaching decisions were made.
Among them, approval of the Shareholders Agreement of Pow-
er Transmission Company Nepal, decisions on dispute settle-
ment of Kaligandaki 'A Hydropower Station, full and final settle-
ment of Middle Marsyangdi Hydropower Project, shortlisting of
consultants for the detail design of Budhigandaki Storage Hy-
dropower Project and amendment of Financial Administration
Regulation taken by the Board would definitely contribute to
the successful growth of NEA. Furthermore, various decisions
and action plans relating to personnel, financial and consumer
management were taken to impart greater degree of efficiency
and effectiveness on the functioning of NEA.

Nepal Electricity Authority। 83

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Human Resource Department

Human resource department is responsible for executing
manpower planning, recruitment, training and capacity devel-
opment, disciplinary actions, implementation of staff welfare
activities and other human resources related functions.

By the end of FY 2011/12, the total number of staff stood at
9,013 while the approved positions remained at 10,325. Dur-
ing the year under review, 252 employees were retired while
18 employees took voluntary retirement and services of 11
employees were terminated on charge of long absence. Simi-
larly, 35 employees resigned and 46 employees passed away.
During the year under review, 450 employees of different lev-
els were promoted to higher levels based on their performance
evaluation and internal competition and 22 employees were
promoted to higher level under special promotion scheme.

Managing Director
GM/DMD (Level-12
Officer Level (Level 6-11

69

Assistant Level (Level 1-5

es ee 0]
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हमलामा। भार। छ ]

84। Nepal Electricity Authority

= wing of NEA is responsible for the management of human resources, logistic
support, legal advice and arbitration, property management and promotion of public relation
functions. Timely amendment of personnel administration regulation and financial administration
regulation also falls under the jurisdiction of this wing. This wing is led by a Deputy Managing
Director and supported by four departments, namely, Human Resources Department, General
Services Department, Legal Department and Training Center, each led by a Director.

Sep। 0
me fo
21। 89।
0।

During fiscal year 2011/12, the Department filled 588 vacant
posts of which 66 were officer and 522 were non officer lev-
els. Meanwhile, one employee was cautioned and 9 employees
were suspended under disciplinary action. Similarly, yearly in-
crement in the salary of 4 staffs was decreased.

As a part of staff welfare activities, financial support was pro-
vided to 17 employees for different causes. Similarly, under the
Staff welfare loan facility, a total sum of NRs. 130,263,370.00
was disbursed as loan to employees for purchase, construction
and maintenance of house/land, for carrying out social event/
rituals and so forth. Similarly, a sum of NRs. 15,150,000.00
was disbursed to various employees under accidental insur-
ance and medical facility scheme and NRs. 215,072,712.42
was disbursed under life insurance scheme.

1

A YEAR IN REVIEW
FISCAL YEAR 2011/12

The statistics of employed personnel till the end of fiscal year
2011/12 is given in the table below.

General Service Department

General Service Department (GSD) is an auxiliary unit respon-
sible for vehicle management, logistics management, main-
tenance of vehicles and corporate office buildings, property
management and security management of NEA's corporate
offices. The Department is also responsible for dealing with
media, organizing press conferences and releasing ceremonial
activities.

The Department also publishes 'Vidhyut', a half yearly maga-
zine which covers the wide spectrum of technical, manage-
rial, administrative and other activities of NEA. It also appoints
the advertising agency for the publication of various notices
of NEA. The Department also registers the complaints from
stakeholders regarding service delivery and forwards them
to the concerned units for necessary action. During the year
under review, 442 such complaints were registered and for-
warded to concerned units for the necessary actions.

During the year under review, the Department updated the
records of land owned by NEA and their utilization. The De-
partment also succeeded in receiving new Land Registration
Certificate for 70-5-2-3 Ropanis of land. In addition, the De-
partment was also entrusted with the responsibility of organiz-
ing sports activities for staffs. The Department established NEA
Sports Club in FY 2011/12 to encourage participation of staffs
in the various sports competition. NEA was successful in secur-
ing second position in the inter-corporation sports tournament
organized by Public Enterprises Sports Development Associa-
tion, Nepal (PESDAN) in 2011.

Legal Department

The Legal Department is responsible for dealing with all legal
matters of NEA. It provides legal advice to the management as
well as to the different departments of NEA. The department
is also involved during negotiations for power purchase and
contract agreements. Another area of its participation is to
defend cases of NEA through NEA's legal advisors in different
courts of the country and abroad for dispute resolution. Gen-
erally, cases to be resolved are related to the misuse of elec-
tricity, electricity theft and unauthorized use of electricity, land
acquisition, employees' service termination, staff promotion
and contracts/tenders disputes. The Department also provides
assistance to the various committees formed for formulating
rules and regulations of the organization.

During the fiscal year under review, the Department provided
165 numbers of legal advices to the NEA Management & other
departments. The Department also organized legal workshop
in Attariya Regional Office of Distribution & Consumer Services
West. Out of 143 cases registered in different courts during
the fiscal year 2011/12, NEA won 44 cases, lost 12 and the
other cases remained sub-judice. Some disputes related to
contracts of construction projects are presently being resolved
through arbitration and some others are under consideration.

Training Center Department

NEA Training Center (NEATC) is responsible for providing
need based short term training ranging from 2-15 days to
NEA employees to upgrade and enhance their skill, knowledge
and attitude. As human resource is one of the most important
and critical ingredients of any organization, its development
is indispensable for survival and advancement of the orga-
nization. During the year under review, NEATC conducted 32
training programs including Induction Training for the staffs of
NEA in different fields of specialization. The training programs
conducted covered computer software, finance, administration,
sanitation and plumbing, mechanical engineering in addition to
the induction training. The training programs involved induc-
tion, in-services or refreshers course as well as custom de-
signed courses as per the request and the requirement. A total
of 640 participants participated in those training programs.
Out of 640 participants, 256 were of officer level and 384
were of assistant level.

In addition to the training programs, NEATC also provided sem-
inar halls, class room, hostel and ground space on rental facili-
ties to different users, groups/organizations etc. upon their re-
quest. Engineering colleges, scout, political parties and various
organizations used the facilities available in the training center
for various purposes on the rental basis. The total income gen-
erated from these services amounted to Rs. 2,484,460.00.

Nepal Electricity Authority। 85

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Internal Audit

Financial Audit

During FY 2011/12, Financial Audit was carried out in 149
budget centers out of 191 budget centers of NEA. The au-
dit findings, suggestions and recommendation thereon to be
included in the annual report for the FY 2011/12 are in prog-
ress. The transactions of 99 offices have been audited up to
the end of second trimester of fiscal year 2011/12. The audit
of the transactions of the third trimester has already started.
The status of progress on clearance of audit observations is
in improvement.

Technical / Energy Audit

Non-availability of adequate technical audit staffs constrained
the coverage of technical audit. It also audits management
activities, energy balance and technical aspects carried out by
various business groups.

Management Audit

Although, no management audit as such was carried out sue
to non-availability of capable audit staff, some aspects of
management audit were covered under the financial audit. The
findings under this activity were covered under the financial
audit report. Beginning from this fiscal year internal audit is
planning to carry out management audit separately.
Reporting and Progress Monitoring

For the preparation of annual audit report, all the regional of-
fices must submit their annual report to the Deputy Managing
Director, Internal Audit. Then all the reports are consolidated
and sent to the Managing Director. The annual audit report
for FY 2010/11 was submitted to the Managing Director in
May 2012.

Capacity Building

A customized training program was conducted for a
group of 10 officers in the Institute of Cost and Works Ac-
countants of India, Delhi in June 2012 to enhance pro-
fessional knowledge on various issues of internal audits.

Audit Committee

The Board of Directors of NEA formed "Audit Committee" in
the last quarter of FY 2011/12, with the objective of enhanc-
ing the effectiveness of internal audit functions and ensuring
transparency, integrity and accountability within NEA. The Com-
mittee comprising of three members lead by a Board Member
as Director has started discussion with NEA management on
internal control, financial management and internal and exter-
nal auditors' audit qualifications.

86। Nepal Electricity Authority

FISCAL YEAR 2011/12

Finance

The Finance wing of NEA is responsible for overall financial
management and accounting functions and is headed by a
Deputy Managing Director. Apart from the conventional role of
financial management, accounting, budgeting, treasury opera-
tions, the wing is also responsible for financial analysis & plan-
ning, financial administration, supervision & control. Finance
wing is divided into four functional departments, namely, Cor-
porate Finance Department, Accounts Department, Revenue
Department and Economic Analysis and Planning Department.
Each Department is headed by a Director who is accountable
to the Deputy Managing Director and is independently respon-
sible for its functional areas of operation.

During fiscal year 2011/12, energy generation from NEA's hy-
dropower plants registered an impressive growth of 11.09%
over previous year's figure of 2,122.08 GWh to reach 2,357.43
GWh. The import of energy from India grew by 7.50% over pre-
vious year's figure to reach 746.07 GWh. The power purchase
from IPPs stood at 1,073.57 GWh registering a marginal incre-
ment of 3.34% over previous year's figure of 1038.84 GWh.

During the year under review, the total electricity available in
the system stood at 4,178.63 GWh which is 8.30 % higher than
the previous year's figure. Out of the total electricity available
in the system, consumption accounted for 3,074.10 GWh and
system losses accounted for the rest. The special measures
and programs undertaken by NEA helped reduce system loss-
es from 28.55% to 26.43 %.

During the year under review, total energy sales including ex-
ternal supply increased by 11.52 % to reach 3,041.93 GWh.
Export sales to India decreased by 86.76% over previous
year's figure of 31.10 GWh to reach 4.12 GWh. Despite the
decline in export sales, internal sales reached 3,037.81 GWh reg-
istering an increase of 12.66% over the previous year's figure.

During fiscal year 2011/12, the total number of consumer grew
by 12.85 % to reach 2.32 million. Of the total consumers, do-
mestic consumers accounted for 94.94% and industrial con-
sumers accounted for 1.57%. The domestic and industrial con-
sumers contributed 44.05% and 36.95% to the total revenue
respectively. Rest of the consumers accounted for 3.49% of the
total consumers but contributed only 19 % to the total revenue.

In FY 2011/12, net revenue trom sales of electricity amounted
to NRs.20,079.13 million, an increase of 11.88% over the
previous year's figure. Other income in the form of surcharge,
interest, lease rent, service charge and dividend amounted
to NRs. 1,349.74 million. NEA's total income reached NRs.
21,428.87 million, which is higher than last fiscal year's total
income by 10.86%.

NEA's operating expenses on generation, transmission, dis-
tribution, and administration in the FY 2011/12 stood at
NRs1,756.61 million, NRs. 459.38 million, NRs. 3,670.68 mil-
lion and NRs.1,009.38 million respectively. As compared to
previous year's figures, the expenses on the above headings
increased by 88.97%, 32.78%, 22.19% and 16.46% respec-
tively. The high growth in the operating expenses on generation
was primarily due to major overhauling works of multi fuel pow-
er plant and Middle Marsyangdi power station. Power purchase
costs accounted for 39.13% of the total cost and 58.42 % of
the total net sales revenue. The additional power import from
India to minimize the load shedding basically contributed to the
increase in power purchase costs. In addition, annual escala-
tion in power purchase rate and devaluation of NRs against
USD in respect of some PPA made in USD also helped to in-
crease the power purchase costs.

During the year under review, interests on borrowing increased
by 5.17% over the previous year's figure to reach NRs 3,780
million. Similarly, annual depreciation charge on fixed assets in-
creased by 2.43% to reach NRs, 3,105 million. During the year,
street light dues of Village Development Committees'(VDCs)
amounting to NRs. 580 million was written off after receiving
an equal amount as full settlement from Government of Nepal
(GoN). NEA incurred a foreign exchange translation loss of NRs
897.24 million in FY 2011/12 due to depreciation of Nepalese
Rupees vis-a-vis the Japanese Yen loan for Kulekhani Disaster
Prevention Project. Based on previous actuarial valuation re-
port, a provision of NRs 2,053.40 million was made to cover
up expenses for future liabilities and retirement benefits to the
employees on account of gratuity, pension, medical facilities
and accumulated leave for the FY 2011/12. The total expenses
exceeded total revenue in fiscal year 2011/12 and ultimately,
NEA suffered a net loss of NRs 8,550.76 million.

Nepal Electricity Authority। 87

During FY 2011/12, revenue collection remained satisfactory
with collection rate of more than 95% of the total sales. The
high collection rate helped in the management of fund to some
extent. However, the street light dues of municipalities amount-
ing to NRs. 1,070 million still remains a serious problem in
revenue collection. NEA also collected NRs.210 million from
GON treasury against government offices' electricity dues up to
FY 2010/11. The total receivables at the end of FY 2011/12
stood at NRs 6,672.13 million, which is equivalent to sales rev-
enue of 119 days.

During the year under review, NEA capitalized NRs. 4,500
million in property, plant and equipment. The net carrying
amount of NEA's property, plant and equipment reached NRs.
86,120.47 million which is 70.04 % of total noncurrent assets.
This addition was mainly due to the capitalization of projects
related to distribution system reinforcement and rural area
electrification.

The second largest component of noncurrent assets is capi-
tal work in progress (CWIP). The total expenditure on capi-
tal works and projects stood at NRs. 31,924.53 million at the
end of FY 2011/12. The ongoing major hydroelectric projects,
namely Chameliyagadh (30 MW), Kulekhani Ill (14 MW), Upper
Trishuli 3A (60 MW) and Rahughat (32 MW) and many trans-
mission lines of different voltage levels contributed to increase
in CWIP In FY 2011/12, NEA invested NRs. 13,592.50 million
in capital works and projects. Out of this total, NRs.5,392.50
million was received as government equity, NRs.6,766 million
was received as government loan and NRs. 1,434 million was
born from NEA's internal source. The long term borrowings in-
creased by 13.75 % to reach NRs.71,245.74 million at the end
of FY 2011/12. Accumulated loss up to FY 2010/11 amounting
to NRs. 27,188.19 million was adjusted in the books of ac-
counts for the same period as per the decision of 2 Jan, 2012
of council of ministers. Following the decision of the council of
ministers, the adjusted share capital reached NRs. 31,087.31
million at the end of FY 2011/12.

NEA borrowed NRs.2,000 million as short term loan from
local banks to meet the working capital requirements for FY
2011/12. In addition to this, NEA also received NRs.1,000 mil-
lion as long term loan from GON for project financing.

NEA's investment in subsidiaries, associates, joint ventures
and others reached NRs. 5,008.07 millions at the end of FY
2011/12. In FY 2011/12, NEA invested NRs.530 million in
Sanjen Hydro Power Company Limited and Middle Bhotekoshi
Hydro Power Company, both promoted by Chilime Hydro Power
Company Limited, a subsidiary company of NEA. By the end of

88। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

FY 2011/12, NEA's equity investment in Upper Tamakoshi Hy-
dro Power Company Limited (UTKHPL) reached NRs.3,690 mil-
lions, constituting 73.68% of the total investment. NEA holds
41% of the total equity in UTKHPL. Likewise, NEA's equity
in Chilime Hydro Power Company Limited (CHPCL) remained
at NRs. 489.60. In FY 2011/12, NEA received NRs. 129.74
million (30%) cash dividend and 40 % bonus share (Equiva-
lent to NRs. 1,958.40 million) from CHPCL. It is expected that
CHPCL will yield better results in future as it is undertaking
the development of Upper Sanjen HEP (14.6 MW), Sanjen HEP
(42.5), Middle Bhotekoshi (100MW) and Rasuwagadhi (112
MW) through three subsidiary companies. NEA has 10% equity
each in Sanjen Hydro Power Company Limited and Middle Bho-
tekoshi Hydro Power Company Limited and has 18 % equity
in Rasuwagadhi Hydro Power Company Limited. Other invest-
ment of NEA includes equity investment in Khumbu Bijuli Co
(NRs. 20.65 million), Salleri Chaylsa Hydro Electric Co. (NRs.
11.63 milion), Nepal Engineering Consultancy Service Center
Ltd (2.28 Million), Nepal Hydro Lab (NRs.1 million), Power
Transmission Company Limited (NRs.2.50 million) and Butwal
Power Company (NRS.8.8 million). NEA is not receiving any
dividend trom these subsidiary and associate companies ex-
cept CHPCL and Butwal Power Company Limited (BPCL). NEA
received NRs 2.54 million (25%) cash dividend from BPCL
in the FY 2011/12. In addition to the above investment, NEA
deposited NRs. 100 million in Citizen Investment Trust (CIT)
towards gratuity and pension liabilities. Total amount invested
in CIT reached NRs.716.43 million at the end of FY 2011/12.

During FY 2011/12, NEA paid NRs. 2,400.12 million as royal-
ties and NRs 650 million as interests to the GON.

NEA's petition for upward adjustment in electricity tariff was
finally rewarded. The Electricity Tariff Fixation Commission
(ETFC) approved this fiscal year to increase tariff by 20 per-
cent in average. The new tariff will be effective on consumption
of electricity from Shrawan 1, 2069. While revising the tariff,
ETFC has instructed NEA to comply with certain conditions with
regard to loss reduction, inventory management, receivables
management and administrative reform. This tariff adjustment
will definitely support to improve the financial health of NEA but
this will not be adequate to meet the challenges lying ahead.

The financial audit of NEA for FY 2010/11 was carried out and
completed within nine months following the financial year by
the joint auditor Mr. Jagadish Bhattarai and Mr. Mahesh Gur-
again, Chartered Accountants, appointed by the Office of the
Auditor General. Same auditors have been appointed to carry
out financial audit for FY 2011/12. The audit for FY 2011/12
is expected to be completed by December 2012. Verified In-

A YEAR IN REVIEW
FISCAL YEAR 2011/12

come Tax Returns for FY 2010/11 was filed with the Large Tax
payer's Office in second week of May 2012. In FY 2011/12, the
Large Tax Payer's Office completed income tax assessment of
NEA up to FY 2007/08. NEA has filed petition to Review Tribu-
nal for review against tax assessment order for FY 2005/06.

Series of discussion on audit qualification for period from
2003/04 to 2008/09 were held in Parliamentary Public Ac-
counts Committee in FY 2011/12. Most of these audit qualifi-
cations have been settled by NEA. During FY 2011/12, out of
the total outstanding audit remarks of NRs. 9.58 million for the
period from FY 1973/74 to FY 1993/94, NRs. 0.57 million was
settled and remaining qualifications could not be settled due to
non existence of Parliamentary Public Account Committee after
the dissolution of Constituency Assembly.

NEA is required to achieve a number of covenants in respect
of borrowing from the donor agencies. Major covenants re-
lated to financial performance are Rate of Return (RoR) (6%)
Self Financing Ratio (SFR) (23%), Debt Service Coverage
Ratio (DSCR) (1.2 times), Average Collection Period (ACP)
(<3month) and Average Payment Period(APP) (<3month).
NEA could not achieve any of the above loan covenants due to
the deteriorating financial health. Considering the weakening fi-
nancial health of NEA, the World Bank dropped covenants oth-
er than ACP and APP Accordingly, NEA has to comply with only
ACP and APP towards World Bank funded projects. NEA could
achieve ACP of 4.04 (months) and APP of 5.35 (months) in
FY 2011/12.

NEA has perceived the need to improve its current financial
management system in order to meet the requirement of na-
tional and international accounting standards in preparation
and presentation of financial statements. For strengthening
financial accounting and financial management decision sup-
port system, NEA is planning to put in place a modern IT based
Integrated Financial Management Information System (IFMIS).
Accordingly, Institutional Strengthening Project is under imple-
mentation with the assistance from World Bank to strengthen fi-
nancial management and accounting system under Institutional
Strengthening of NEA Project. MS Deloitte Touch Tohmatsu
India Pvt. Ltd. (DTT) in association with Raj MS, Kathmandu
Nepal has been appointed the Consultant for this Project. The
major scope of the consultancy service includes Accounting
Framework Reform, Design and Support for Implementation of
new IFMIS & capacity building. During the year under review,
the Consultant prepared and submitted new accounting policy
manual and internal audit manual and also provided a prelimi-
nary in house training on the use of these manuals.

Nepal Electricity Authority। 89

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Nepal Electricity Authority

Highlights of FY 2011/12

Increase (Decrease)

Description FY 2012* FY 2011
es
Net Sale of Electricity (M.NRs.) 20,079.13 17,946.82 2,132.31 11.88%

Income form other Services (M.NRs.) 1,349.74 1,382.94 -33.20 -2.40%
Total Renenue (M. NRs.) 21,428.87 19,329.76 2099.11 10.86%

Operating Expenses
Power Purchase (M. NRs.) 11,731.64 10,493.74 1,237.90 11.80%

Genertion Expenses (M. NRs.) 1,756.6 929.56 827.05 88.97%
Royalty (M. NRs.) 936.30 854.76 81.54 9.54%
Transmission Expenses (M. NRs.) 459.38 345.96 113.42 32.78%

Distribution Expenses (M. NRs.) 3,670.68 3,004.18 666.50 22.19%
Administration Expenses (M. NRs.) 1,009.38 866.74 142.64 16.46%

ee अछा उमा
(M. NRs,

Provision for Employee benefits 2,053.40 1,890.01 163.39 8.64%
Street light dues written off 580.00 580.00। -।

Depreciation Expenses (M. NRs 3,105.00 3,031.33 73.67 2.43%

Net Income (Loss) (M. NRs.) -8,550.76 -6,089.22 -2,461.54 40.42%

)
Long-Term Loans (M. NRs 71,245.74 62,631.85 8,613.89 13.75%
Net Property, Plant & Equipment (M. NRs.) 86,120.47 84,725.47 1,395.00 1.65%
Number of Consumers 2,320,409 2,056,155.00 264,254.00 12.85%
(

Interest on Long-Term Loans (M. NRs 3,780.00 3,594.01 185.99 5.17%
(
Total Sales of Electricity (GWh) 3,041.93 2,727.62 314.31 11.52%

1
(M.
)
५)
NEA Hydro Generation (GWh)
Termal Generation (GWh) 1.56 3.40 -1.84 -54.12%
Purchased Energy (GWh)- India 746.07 694.05 7.50%

Self Consumption (GWh) 32.17 29,30 9.80%
Net System Losses (Percentage) 26.43 28.55 -7,41%

Note:- — *Provisional figures +on internal sales ++on total purchase

90। Nepal Electricity Authority

A YEAR IN REVIEW

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91

A YEAR IN REVIEW
FISCAL YEAR 2011/12

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(uonjrur ut ७0)

Z102 5। Ajng Buipua seak yeasty ay} 70] JUBWD}e}S BWODU।

Auoyyny /4121242213 jedan

92। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Accounting Policies

1. Basis of preparation of Financial Statements
The financial statements have been prepared in
accordance with Nepal Accounting Standards (NAS) and
Generally Accepted Accounting Principles and practices
following historical cost conventions.

The preparation of financial statements requires NEA's
management to make estimates and assumptions that
affect the reported balance of assets and liabilities,
revenues and expenses and disclosures relating to the
contingent liabilities. The management believes that the
estimates used in preparation of the financial statements
are prudent and reasonable. Future results could differ
from these estimates. Any revision to accounting estimates
is recognized prospectively in the current and future
periods. Examples of such estimates include provision for
employee benefits, provision for obsolescence in value of
inventory, diminution in value of long-term investments,
provision for doubtful debts/advances, etc.

2. Property, Plant and Equipment

Property, plant and equipment are stated at cost of
acquisition and/or cost of construction less accumulated
depreciation. The cost of property, plant and equipment
includes cost of acquisition or construction/erection
together with other incidental costs and charges
attributable to bringing the asset to its working condition
for its intended use and also include borrowing costs
directly attributable to the acquisition, construction/
erection of qualifying asset.

The incidental costs include proportionate overheads
relating to the following offices at the rates given below:

(a) Planning 50%
(b) Distribution and Consumer 10%
(c) Engineering 50%
(d) Finance and Administration 10%

3. Depreciation
Depreciation is provided on Property, Plant and
Equipment, except land, on straight-line basis, which
reflects the estimated useful lives of those assets. The
rates of depreciation on property, plant and equipment
are as follows:

Depreciation Rate
Assets Category (per annum)

Buildings
Hydro Electric Structures 2%-3%

(त) Hydro Electric Plant & 3%
Machinery
(e) Internal Combustion on plant 2%
& machinery
Transmission lines (66 KV, 3%

132 KV and above

Transmission Substations

Distribution system (including
< 11 KV Transmission lines 3% 4%
i
(k)। Meter & metering equipment

Vehicles, tools and instru-
20%
ments, furniture and fixtures

Office Equipment 15%

(p)। Miscellaneous properties
Additions during the year 50% of applicable rates

4. (Capital Work in Progress (CWIP)
All expenditures in developing property, plants, and
equipments not yet completed or ready to use are cat-
egorized as CWIR

5. Investments in Shares
All investments are carried at cost. Provisions are made
for impairment, if any, in the value of such investments.

6. Deferred Revenue Expenditure

Certain expenditures incurred on training, investigation,
survey, software development, feasibility studies of infra-
structure projects and major overhauling etc. which ex-
pected to generate benefits over a period of time, were
being treated as deferred expenditures and were written
off over a period of five years, including the year in which
the said expenditures are incurred.

Nepal Electricity Authority। 93

10.

11.

12.

However considering the requirement of NAS all out-
standing deferred expenditures have been charged to
the income statement from the previous FY2010/11.

Inventories

Inventories are valued at lower of cost or net realisable
value, using the weighted average method. Management
estimates provision for decrease in value of inventory
due to obsolesce or otherwise.

Trade Receivables

Trade receivables are stated at book values, less provi-
sion for doubt on recovery as may be considered appro-
priate by the management.

Foreign Currency Loans

Liabilities on foreign currency loans as at the year ended
are converted into Nepali Rupees by applying prevailing
year-end exchange rates. The gain /loss arising there
from such transaction is recognized as income or expens-
es in the Income Statement.

Grant — in- Aid, Contribution from Customer /

Local Authority

Grants-in-Aid received from the GoN or other Authorities
towards capital expenditure as well as consumers' contri-
bution to capital work are treated initially as Capital Re-
serve and subsequently adjusted as income in the same
proportion as depreciation is charged on such assets.

Revenue from Sale of Electricity

(i)। Revenue from sale of electricity is recognised at
the time of raising bills to the customers as per
the billing cycle Revenue from the billing cycle date
up to 31 Ashad (15 July) has been recognised on
estimated basis. Revenue from sale of electricity is
shown net of rebate.

(ii)। Rebate on payment before the due date and sur-
charge for delayed payments are accounted for on
cash basis.

Income from Other Services

(i) Interest on investments and rental income are
recognised on accrual basis.

(ii)। Dividend on investment in shares is recognized

when right to receive has been established.

Revenue from other services, including services

provided by Engineering Services, are recognized

on cash basis.

(ii

. Employee Benefits

a. Employee benefits, other than retirement benefits,
are accounted for in the period during which the
services have been rendered on accrual basis.

b. For Retirement Benefits Plans

94। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

८ Defined Contribution Plans (such as Provident Fund
and Insurance Schemes) expenses are charged
to income statement on the basis of the liability
recognised for the period.

d. Defined Benefit Plans (such as Gratuity, Pension,
Leave Encashment and Medical Benefits) expenses
are charged to the income statement on the basis
of actuarial valuation.

e. Liability of actuarial valuation done during the year
2007/08 is being charged over the period of five
beginning for the year.

. Insurance Fund

Insurance fund is created by setting aside a sum of Rs
20 million every year, in case of profit for the year, to
cover any loss of property, plant and equipment, for any
eventuality.

Taxes
Current tax is determined as the amount of tax payable in
respect of taxable income for the year.

Deferred tax is recognized on temporary difference, be-
ing the difference between tax base of assets and liability
and carrying amount thereto. Where there is carry for-
ward losses, deferred tax asset are recognized only if
there is virtual certainty of realization of such assets.
Other deferred tax assets are recognized only to the ex-
tent there is reasonable certainty of realization in future.

. Provisions

Recognition of Provisions involves substantial degree
of estimation in measurement and are recognized when
there is a present obligation as a result of past events
and it is probable that there will be an outflow of resourc-
es to settle such obligations. These are reviewed at each
yearend date and adjusted to reflect the best current es-
timate.

. Contingent Liabilities

Contingent liabilities are disclosed in respect of possible
present obligations that have arose from past events but
their existence can only be confirmed on occurrence or
non occurrence of one or more uncertain future events
not wholly within the control of NEA and possibility of out-
flow of resources is not determinable.

. Prior year's figures/ regrouping

Previous year's figures have been reclassified/regrouped,
where ever necessary, to make them comparable with
current year's figures.

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Tariff Rates

(Billing Effective from August 17, 2012)

1 DOMESTIC CONSUMERS

A. Minimum Monthly Charge:
METER CAPACITY
5 Ampere

Minimum Charge (NRs.)
80.00
365.00
795.00
1765.00

Exempt (kWH)

ol
८)

15 Ampere

Li Ro
८)

(a)
८)

30 Ampere

60 Ampere

Three phase supply

Up to 10 KVA

Above 10 KVA to 25 KVA
B. Energy Charge: (Single Phase)

Energy Consumption Block Rate NRs. (Per Unit) Billing Method
Up to 20 Units Minimum Charge

Up to 20 units Rs. 4.00/unit, for 21-30 units, Rs.7.30/unit. But, for energy consumption above
८ 21-50 Units 730 30 units, consumption from 1 unit itself shall be
charged at Rs. 7.30/unit., Rs, 7.30/unit for 0-50 Units and Rs. 8.60/unit for
51-250 Uni 5 Rs. 8.60/unit for 0-150 Units and Rs. 9.50/unit for
5 Above 250 Units 41.00 Rs. 9.50/unit for 0-250 Units and Rs. 11.00/unit
above 250 Units.

C. Energy Charge: (Three Phase)

4400.00
6900.00

चि 1५७)
८ fa)
८» ८)

DD
oO
oO

a

Minimum charge Rs.4400.00 for Consumption up to
400 Units and Rs.12.00/unit above 400 Units.
Minimum charge Rs.6900.00 for Consumption up to
600 Units and Rs.12.50/unit above 600 Units.

12.00

—

~ 7

Up to 10 KVA

12.50

Above 10 KVA up to 25 KVA

—_

.2. Medium Voltage (33/11 K.V.)
. Minimum Monthly Charge:
METER CAPACITY Minimum Charge (NRs.)

Above 25 KVA 31250.00
B. Energy Charge
Rate NRs. (Per Unit) Billing Method

42.90 Minimum Charge Rs. 31,250.00 for consumption up
to 2500 Units and Rs. 12.90/unit above 2500 Units.

>

2500

Energy Consumption Block

Above 25 KVA

—_—_

a
om)
[००
=
[4]
८
=
पा
a
फो

DN)
5

HE

2.1 Low Voltage (400/230 Volt) Rate (NRs.)
N. Consumer Category Demand Charge Rs./KVA/month Energy Charge (Rs./Unit)
a) Rural and domestic 55.00
b) Small Industry 100.00

Nepal Electricity Authority। 95

पा

९)
=

2 Commercial 295.00 9.35

तालका

हब

कण
a
ao
जात लल
]
]
]
]
]
]
]

Water Supply
a) Community Water Supply 200.00 5.00

हे
a
ao
ao
—
—
—
—
—
का लामा
जालमा
हे
_।

5.10

_—

छ
८

TIME OF DAY (TOD) TARIFF RATES

3
arge (Re. /KVA Off Peak। Normal।
S.N. Consumer Category Charge (Rs. /KVA) Peak Time Off-Peak
17:00-23:00। 23:00-5:00 5:00-17:00।। a) 66 kV or above

Energy Charge (Rs./Unit)

96। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

b) Medium Voltage (33 kV)

या

Transportation
a) Trolleybus 230.00 6.35 3.10 5.20

_
c) Medium Voltage (11 kV)

ता ता
_
_
[6 [Transporton पाए

a) Trolleybus 230.00 6.50 3.50 5.30

—
oa
9।

4 COMMUNITY WHOLESALE CONSUMER।। Voltage Level Energy Charge (Rs./Unit)।_। a) Medium Voltage (33 kV/11 kV)।__। b) Low Voltage (400/230 Volt)

N = Total number of consumers of a community group.

Note:
Low voltage refers to 230/400 V, Medium voltage refers to 11 kV / 33 kV and High voltage refers to 66 kV and above.

छ थि

2,।एिटाक्षार्ष Meter of any consumer reads kilowatts (kW), then kKVA=kW/0.8. Consumers having kW demand meter shall mandatorily install
Capacitors within the given time. Otherwise their kVA demand shall be calculated as kVA=kW/O. 7.

3... 10% Discount in the total bill amount will be given to the GoN approved Industrial Districts, if the bill is paid within 21 days of billing date.

4. 20% Discount in the total bill amount will be given to the Nepal Government Hospitals and Health Centres (except residential complex),
if the bill is paid within 21 days of billing date.

5. Consumers supplied at High Voltage (66 kV and above) and Medium Voltage (33 kV and 11 kV) should compulsorily install TOD Meters.

6. If new additional consumers applying for 11 kV supply are to be supplied at 33 kV, they will be charged as per 11 kV tariff structure.

Nepal Electricity Authority। 97

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Statistics & Schematics

AVAILABILITY OF ENERGY FY 2011/12 UTILIZATION FY 2011/12

a [ हा 0.77%

%
हा 56.42% छ 26.43% हा 72.70%

g 17.85%

m 0.10%

छ Inernal Sales m@ Export

@ Hydro @ Thermal Purchase India ™ Purchase Nepal m System Loss हा Self Consumption

SALES FY 2011/12 REVENUE FY 2011/12

छ 0.14% हा 7.14% M0.15% 5 412%

[ @
[ S > 44.05% ° ® 42.78%

mw 11.48%

हा Domestic हा Non-Commercial Commercial हा Domestic हा Non-Commercial हा Commercial
हा Industrial छ Export m Others हा Industrial छ Export Others

EXPENDITURE FY 2011/12 NO. OF CONSUMERS AS OF
2.99% 0.51% 15 JULY, 2012

8.78%
7 o> 12% छ 13.68% & 1.57%

हा 10.36% हि 0.59% --------

mw 12.61%
mw 39.13%

हा 94.94%

हा Staff Cost हा Power Purchase

छ Operation & Maintenance छ Interest छा Domestic m@ Non-Commercial

हा Depreciation Royalty Commercial हा Industrial

हा Foreign Exchange Translation Loss Others छा Others

98। Nepal Electricity Authority

A YEAR IN REVIEW

FISCAL YEAR 2011/12
Total Energy Available &
Peak Demand
4500.00 1200.00
4000.00
1000.00
3500.00
c 3000.00 800.00
छै 2500.00 600.00 z
2000.00
1500.00 400.00
1000.00 200.00
500.00
0.00 0.00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

FISCAL YEAR

छ Available Energy (GWh) M@ NEA Hydro Generation NEA Thermal Generation

@ Power Purchase from IPPs छि Power Purchase from India —@ Peak Demand (MW)। Partiewars। ticulars

Peak Demand (MW) 470.33। 515.24 557.53। 603.28} 648.39) 721.73} 812.50] 885.28) 946.10} 1026.65
NEA Hydor Generation 1478.04। 1345.46। 1522.90। 1568.55। 1747.42। 1793.14। 1839.53। 2108.65। 2122.08। 2357.43

NEA Thermal Generation 4.40 9.92 9.17 906) 3.40 1.56
NEA Generation Total (GWh) 2358.99
Power Purchase from India 746.07
Power Purchase from IPPs 1073.57
Power Purchase Total (GWh) 1819.64

Note :- Peak demand is for all areas covered by integrated system including supply to India
* Provisional figures

Nepal Electricity Authority। 99

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Growth of Consumers

25,00,000
2,000,000

1,500,000

1,000,000

No. of Consumers

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
FISCAL YEAR

500,000

छ Domestic @ Grand Total & Others। Particulars। rticulars

Domestic 930,554। 1,010,719। 1,113,740

1,227,295। 1,339,253। 1,450,254। 1,595,015। 1,775,571। 1,949,530। 2,202,969
10,010 10,215 10,556 10,518 10,952 12,520 13,772
6,170 6,000 6,052 7,305 8,919 10,802 11,882
23,020 24,089 25,548 28,559 29,410 33,030 36,333
6,450 13,183 18,614 22,335 32,089 42,494 46,743
1,550 1,608 1,961 2,339 2,214 2,374 2,611
2,290 2,628 2,746 2,911 2,941 3,181 3,499
1,277,442। 1,397,808। 1,516,878। 1,670,605। 1,864,063 056,290। 2,320,404

1,277,447। 1,397,813। 1,516,883। 1,670,610। 1,864,067। 2,056,292। 2,320,409

Non-Commercial 9,722 9,865 9,950

Commercial 5,317 5,454 6,000

Industrial 19,833 21,374 22,500

Water Supply 305 352 3

Irrigation 1,721 2,557 3,400

Street Light 1,229 1,437 1,500

—

Temporary Supply 138 150

oo

Transport

Temple 1,738 1,959 2,150

uo = [oe]
uo

on

Community Sales

Total (Internal Sales) 970,606। 1,053,930। 1,159,850

Bulk Supply (India)

Grand Total 970,611। 1,053,935। 1,159,855

Note:  * Provisional figures

100। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Electricity Sales

3500.00

3000.00

2500.00

2000.00

Energy (In GWh)

1500.00

1000.00

500.00

0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

FISCAL YEAR

m@ Domestic @ Industrial @ Grand Total & Others

(in GWh)
Particulars 2003 2009 2010 2011 2012*

Non-Commercial 83.01 100.54
Water Supply & Irrigation 31.67 49.98

Street Light 45.80 55.20 54.86 63.24 66.90 70.26 67.51 65.58 67.21 72.04
Temporary Supply 0.25

Transport 5.47

Temple

Bulk Supply (India) 192.25] 141.23] 110.70] 9655} 7687] 6010] 4638] 75.07] 31.10

Grand Total 1,696.82 1,795.22 1,964.38 2,032.62 2,204.20 2,310.32 2,204.59 2,601.53 2,727.62 3,041.93

Note: * Provisional figures

Nepal Electricity Authority। 101

A YEAR IN REVIEW
FISCAL YEAR 2011/12

Revenue

2500.00

2000.00

1500.00

NRs. in million

1000.00

500.00

0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
FISCAL YEAR
छ Domestic @ Industrial & Total Revenue Others

(NRs. in million)। Particulars। lars

Note:  * Provisional figures

102। Nepal Electricity Authority

A YEAR IN REVIEW

FISCAL YEAR 2011/12
Load Forecast
20,000 4,200
18,000
3,600
16,000
= 14,000 3,000 z
= —। ७ छ
र 12,000 2,400 छ
ट 10,000 हक
Cc ©
Wig 000 1,800 ४
6,000 1,200
4,000
600
2,000
N N N N N N N N N N N N N N N N
८) [७० fo] oO Oo ९) Oo fo) ८) ८) ८) ८) ८) ८) ८) ८)
नन = —_ —_ = —_ [ [सो N N N N N N N N
ऐ फु के पा कै N % Fe क रो Pe Pe PUP UN
—_ = = = = = = N N N N N N N N N
Ww A ul Oo N" foe] oO ८) [को N Ww BN ul oa ६.। Co
FISCAL YEAR
m Energy (GWh) -@ System Peak Load (MW)

Fiscal Year Energy (GWh) System Peak Load (MW)

2015-16 1,510.0
2017-18 8,218.8
2021-22 1,053.6

Nepal Electricity Authority। 103

A YEAR IN REVIEW
FISCAL YEAR 2011/12

०५]
rah LZ 0८ 6। gL Zh OL Gl vi eb 741 bb

nm
64
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००
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(£९0114 ZL0Z 'Eb ५) 890८ 6८ ५5०५

0९0 peo ९०५ JO SAIN 0९०1 Wa }sAS

MW

104। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

oOo ON DU BPWwWP —

ee
—-— oO

12
13
14

16
17
18
19
20
21
22
23
24
25
26
27

CON DOP Wh ना

1५ ७) 1) 12 रा या ला पा ना पा ना गा HSE
WDM ना ८) ९८ OND USP ८७ 1 न ©

Electricity Generating Stations & Projects

Major Hydropower Stations
Existing
Middle Marsyangdi
KaliGandaki "A"
Marsyangdi
Kulekhani No. 1
Kulekhani No. 2
Trisuli
Gandak
Modi Khola
Devighat
Sunkosi
Puwakhola
Sub Total
Small Hydropower Stations
Chatara
Panauti
Tatopani/Myagdi(i) & (II)

Seti (Pokhara)

Phewa (Pokhara)
Tinau (Butwal)
Sundarijal
Pharping***
Jomsom**
Baglung
Khandbari**
Phidim**
Surnaiyagad (Baitadi)
Doti
Ramechhap
Terhathum**
Sub Total
Total
Small Hydropower Stations
Existing (Isolated)
Dhankuta***
Jhupra (Surkhet)***
Gorkhe {llam)***
Jumla **
Dhading***
Syangja***
Helambu
Darchula (I) & (II)**
Chame**
Taplelung**
Manang**
Chaurjhari (Rukum)**
Syarpudaha (Rukum)**
Bhojpur**
Bajura
Bajhang**
Arughat Gorkha
Okhaldhunga**
Rupalgad (Dadeldhura)
Achham
Dolpa
Kalikot
Heldung (Humla)
Total

NOTE : * Line length within Nepal Portion

70,000
144,000
69,000
60,000
32,000
24,000
15,000
14,800
14,100
10,050
6,200
459,150

3,200
2,400
2,000

1,500

1,000
1,024
640
500
240
200
250
240
200
200
150
100
13,844
472,994

240
345
64
200
32
80
50
300
45
125
80
150
200
250
200
200
150
125
100
400
200
500
500
4,536

** T eased to Private Sector

kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW

kW
kW
kW

kW

kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW

kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW
kW

nam 4 ८४) ५) —

CON Do BWP ना

Diesel Power Stations
Existing
Duhabi Multifuel
Hetauda
Total
Solar Power Stations
Existing
Simikot
Gamgadhi
Total

Total Major Hydro (NEA) - Grid Connected
Total Small Hydro (NEA) - Isolated

Total Hydro (NEA)

Total Hydro (IPP)

Total Hydro (Nepal)

Total Thermal (NEA)

Total Solar (NEA)

Total Installed Capacity (Including Private
& Others)

Under Construction
Upper Tamakoshi
Chamelia
Kulekhani Ill
Upper Trishuli 3"A"
Rahughat
Gamgad
Total
Planned & Proposed
Upper Trishuli-3'B'
Budhi Gandaki
Upper Seti (Storage)
Dudh Koshi (Storage)
Upper Modi 'A'
Nalsing Gad (storage project)
Tamor (Storage)
Uttar Ganga (Storage)

Total 2,564,000

*** Not in Normal Operation

Nepal Electricity Authority। 105

39,000
14,410
53,410

50
50
100

472,994
4,536
477,530
187,581
477,530
53,410
100

718,621

456,000
30,000
14,000
60000
32000

400

592,400

37,000
600,000
140,000
510,000
47,000
400,000
530,000
300,000

kW
kW
kW

kW
kW

kW
kW
kW
kW
kW
kW
kW

kW

kW
kW
kW
kW
kW
kW
kW

kW
kW
kW
kW
kW
kW
kW
kW
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A YEAR IN REVIEW
FISCAL YEAR 2011/12

High Voltage Transmission Lines & Substations

EXISTING Type of Ckts Length Conductor Conductor
132 kV Transmission Line Circuit km Type Size (Sq.in.)। Anarmani-Duhabi Single 75.76 BEAR 0.25
2 Kusha-Katiya(India) Single 15 BEAR 0.25
3 Duhabi-Lahan-Cha-pur-Pathaliya/Parwanipur-Hetauda Double 598 BEAR 0.25
4 Hetauda-KL2 P/S Single। 8s BEAR 0.25
5 Bharatpur-Marsyangdi P/S Single 25 DUCK 0.3
6। Hetauda-Bharatpur Single 70 PANTHER 0.2
7 Marsyangdi P/S-Suichatar Single 84 DUCK 0.3
8। Suichatar-KL2 P/S Single 36 BEAR 0.25
9। Suichatar-Balaju-New Bhaktapur Single 26.9 BEAR 0.25
10 New Bhaktapur-Lamosangu Double। Cd BEAR 0.25
11 Lamosangu-Khimti P/S Single 46 BEAR 0.25
12 Lamosangu-Bhotekoshi P/S Single 31 BEAR 0.25
13 Bharatpur-Damaulli Single 39 WOLF 0.15
14 Bharatpur-Kawasoti-Bardghat Single 70 PANTHER 0.2
15 Bardghat-Gandak P/S Double 28 PANTHER 0.2
16 Bardghat-Butwal Double। 85। BEAR 0.25
17 _।Butwal-KGA P/S Double 116 DUCK 0.3
18 KGA P/S-Lekhnath Double। sid DUCK 0,3
19 Lekhnath-Damauli Single 45 PANTHER 0.15
20 Lekhnath-Pokhara Single 7 DOG 0.1
21 Pokhara-Modikhola P/S Single 37 BEAR 0.25
22 Butwal-Shivapur-Lamahi Single 112 BEAR 0.25
23 Lamahi-Jhimruk P/S Single 50 DOG 0.1
24 Lamahi-Kohalpur-Lumki-Attariya Single 243 BEAR 0.25
25 _।Attariya-Mahendranagar-Gaddachauki Single 49 BEAR 0.25
26 Marsyangdi -M. Marsyangdi Single 40 BEAR 420 sq mm
Total 2,129.7
66 kV Transmission Line। Chilime P/S-Trishuli P/S Single 39 0.15
2 Trisuli P/S-Balaju Double 58 0.1
3 Trisuli P/S-Devighat P/S Single 4,596 0.15
4 Devighat P/S-Balaju Single 30 0.1
5 Devighat P/S-New Chabel Single 33 0.1
6। Balaju-Lainchor Single 2 0.2
7 Balaju-Siuchatar-KL1 P/S Double 72 0.15
8। KL 1 P/S-Hetauda-Birgunj Double 144 0.15
9। Suichatar-Teku Single 4.1 0.25
10 —_।Suichatar-New Patan Double 13 0.15
11 Teku-K3 (underground) Singlecore 2.8 XLPE Cable 400 sq.mm.
12 Suichatar-K3 Single। 69 XLPE Cable 0.25+500 sq.mm.
13 New Patan-New Baneswor Single 2.8 120 sq mm
14 Bhaktapur-New Chabel Single 23 250 & 100 sq.mm.
15 Bhaktapur-Banepa-Panchkhal-Sunkoshi P/S Single 48 120 sq. mm.
16 Indrawati- Panchkhal Single 28 95 sq.mm.
Total। 511.16 11.16
EXISTING GRID SUBSTATIONS 66KV SUBSTATIONS (CAPACITY IN MVA)
132KV SUBSTATIONS (CAPACITY IN MVA) 1. Birgung 55.0
1 Mahendranagar 15.5 2. Amlekhgunj 3.2
2 Attariya 25.5 14. Dhalkebar 68.0 ३. Simra 20.1
3 Lumki 10.5 15, Lahan 74.0 4. Hetauda 20.0
4 Kohalpur 37.5 16. Duhabi 159.2 5. Siuchatar 36.0
5 Lamahi 18.0 17, Anarmani 75.0 6. K-3 45.0
6। Shivapur 41.0 18. Pokhara 45.0 7, Teku 45.0
7 Butwal 142.6 19. Lekhnath 12.5 8. Patan 36.0
8। Bardghat 13.5 20. Damauli 26.0 9. Baneshwor 36.0
9। Kawasoti 38.0 21, Lamosangu 15.0 10. Bhaktapur
10 Bharatpur 55.0 22. Bhaktapur 94.5 11. Banepa 22.5
11 Hetauda 40.0 23. Balaju 45.0 12. Panchkhal 10.0
12 Parwanipur 90.0 24, Siuchatar 113.4 13. Lainchour 45.0
13 Chandranigahapur 38.0 25. Matatirtha 22.5 14, New-Chabel 45.0
15. Balaju 45.0
Total 1,315.20 Total 463.75

106। Nepal Electricity Authority

A YEAR IN REVIEW
FISCAL YEAR 2011/12

High Voltage Transmission Lines & Substations

UNDER CONSTRUCTION Type of Ckts Length Conductor Conductor
132 kV Transmission Line Circuit km Type Size। 132 kV Thankot-Chapagaon Double 57 BEAR 0.25
2।132 kV Chameliya-Attaria Single 129 BEAR 0.25
3 {132 kV Butwal-Kohalpur-Mahendranagar 2nd Circuit Double 208 BEAR 0.25
4।132 kV Mid. Marsyangdi-Dumre- Damauli-Marsyangdi Double 76 BEAR 0.25
6। 132 kV Kabeli-Damak Double 180 BEAR 0.25
7।132 kV Singati-Lamosangu Double 76 BEAR 0.25
8। 132kV Kusum -Hapure Single 22 BEAR 0.25
9। 132kV 2nd Circuit Hetauda-KL-ll-Siuchatar Double 45 BEAR 0.25
Total 793.0
220 kV Transmission Line Type of Ckts
1 [220 kV Khimti-Dhalkebar Double 150 BISON
2/220 kV Hetauda-Bharatpur Double 146 BISON
३।220kV Bharatpur-Bardghat Double 150 BISON
Total Double। 446s
PLANNED & PROPOSED
220 KV Transmission Line
1 [Koshi Corridor Double 350
2 __।Kaligandaki Corridor Double 219.8
३।Lekhnath-Damauli Double 80।
4 —_।Marsyangdi-Kathmandu Double 170 MOOSE
9।Marsyangdi-Bharatpur Double 50
6। Marsyangdi Transmission Corridor Double 180
7।Chilime-Trishuli Double। 80।
8। Tamakoshi-Kathmandu 220/400kV Double 170
Total 1129.80
132 kV Transmission Line। Butwal-Lumbini Double 44 BEAR 0.25
2।Dhalkebar-Lohar patti Double 40 BEAR 0.25
३ /Gulmi-Arghakhanchi-Gorusinghe Double 220 BEAR 0.25
4 __।Ramechap-Garjyang-Khimti Double। 60 ~—i«। BEAR 0.25
4।Dordi Corridor Double 32 BEAR 0.25
6। Modi-Lekhnath Double 84 BEAR 0.25
7 _।Samundratar-Naubise/Chapali Double 40 BEAR 0.25
8। Kohalpur-Surkhet Double 100 BEAR 0.25
9। Karnali Corridor Double 120 BEAR 0.25
10।Bajhang-Deepayal-Attariya Double 260 BEAR 0.25
11 /Hapure-Tulsipur Double 36 BEAR 0.25
12।Surkhet-Dailekh-Jumla Double 214 BEAR 0.25
13।Kaligandaki-Gulmi (himruk) Double। 86। BEAR 0.25
14 {Solu Corridor (Katari-Okhaldhunga-Solu} Double 180 CARDINAL
15।Baneshwor-Bhaktapur Double 24 XLPE 800 sq.mm.
Total 1540.00
Planned & Proposed 400kV Cross Border Transmission Line
1।400 kV Dhalkebar-Muzzaffarpur Cross Border Line* Double 78 MOOSE
2 __।Hetauda-Dhalkebar-Duhabi Double 570 MOOSE
3३।Duhabi-Jogbani* Double 52 MOOSE
4 _।Hetauda-Butwal-Lamki-Mahendranagar Double 1140 MOOSE
9।Butwal-Sunauli* Double 40,74 MOOSE
Total 1880.74
UNDER CONSTRUCTION GRID SUBSTATIONS
1 132/11 kV Matatirtha 2.5 [12 — 132/33kV Mirchaiya 30.0
2।132/33/11 kV Syangja 38.0 {13 132/33kV Ghorahi 30.0
3 132/33/11 kV Damak, Illam, Phidim, Kabeli 124.0।14 132/11kV New Bharatpur 30
4।132/11 kV Chapali 120.0 Total 529.50
9 {132/33/11 kV Matatirtha 52.5
6। 132/33 kV Hapure 30.0 PLANNED & PROPOSED GRID SUBSTATIONS
7 _।132 kV Hetauda (Kamane) 30.0
8। 132/11 kV Pathlaiya 22.5 Voltage Level No. of Substations। Total Capacity (MVA)
9। 132/33 kV New Marsyangdi 30.0 1. Up to 400kV 5 2025
10 _।132/33 kV Singati 30.0 2, Up to 220kV 18 3876
11।132/33 kV Kusum 30.0 3. Up to 132kV 21 917
Total 7877.00

Nepal Electricity Authority। 107

A YEAR IN REVIEW
FISCAL YEAR 2011/12

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FISCAL YEAR 2011/12

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FISCAL YEAR 2011/12

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