A Year in Review
Fiscal Year 2008/09

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August 2009 (Bhadra 2066
Durbar Marg, Kathmandu, Nepal

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Go छ। Nepal Electricity Author
lead Office: Durbar Marg, Kathmandu. Nepal

Nepal Electricity Authority

Head Office
Phone

Fax

E-mail
Webpage

: Durbar Marg, Kathmandu, Nepal
» +977-1-4153007

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

: WWw.nea.org.np

Contents

Board Of Directors 0.0.0.0... cccccc cece cece teee eee e eee e eee ee ee ae aeeeeeeeeaaaee 1
Corporate Structure Of NEA ...........ccccccccccsseeceeesseeeeeseeeeeeesnaees 2
Chief Executives Of NEA ..................२.-.२- २२ -ल लन नन न नन पन नननननननननननननननिननन 3
81-12:1111-1014201--ििििििििििििििििििििििििििििििििििििीीी 4
Managing Director's REpoft की 8
Generation BUSINESS GrOUD............cccceececeeeeeeeeeeeeeeeeeeeeesneaes 15
Middle Marsyangdi Hydroelectric शि डट.................... «२ २२--० 19
Transmission and System Operation Business Group ....... 21
Distribution and Consumer Services Business Group ........ 32
Electrification BUSINESS ८0५? ............::----5०२२२०००० ०० ०००० ०० ०००० ०००० 39
Engineering Services Business Group .............. २ :२२२२२०००००००००२ 47
NEA''s Subsidiary & Joint Venture Companies..............00 54
Planning, Monitoring & Information Technology ................. 57
ACMINIStratiOn ..........ccccccececeeeeeeeeeeeeeeeeeeeeeesaaeeceeeeeeeeeeeeeeeeaaas 61
Internal रि 63
बि 64
Highlights Of FY 2008/09 ............ccssccccccccceceeeseseessssssssteeeeeees 68
Balance Sheet as of July 15, 2009........................:----7------म 69
Income Statement for the FY ending July 15, 2009 ............ 70
ACCOUNTING POIICICS ............ccceeeeccceeeeeeeeeeeeeeeaeeeeeeesaeeeesaaeeeeees 71
Tariff RAtCS «2.0... cece eceeeeeee cece eee aeeeeeeeeeeeeeeeeeeeeaeaaacneeeeeeeeeeeeaes 73
Statistics, Schematics ANd MADS...............cccccseececeeeeeeseeeeeees 15

Front Cover Photo
छ Reservoir of Pharping Power Stations - The First Power Station of Nepal

Dr. Prakash Sharan Mahat
Minister of Energy

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Message from the

Chairman

It is a matter of great honor for me to express
my thoughts as a Chairman of Nepal
Electricity Authority (NEA) as the
organization completes its twenty-third years
of operation. Without electricity one cannot
envisage a society, which can deliver the
basic services to the people. As a
predominant player in the power sector,
NEA has an important role to play in the
provision of electricity in Nepal.

Following the enactment of the Electricity
Act 1992, there was an initial surge in the
development of hydropower by the private
sector but the momentum was short lived.
In successive years, despite government's
plan to bring in more private investment in
this sector, not much have happened.
Unstable political climate, poor security
situation are but a few reasons often cited
for the lack of adequate private participation
in this sector. With the political and security
situation improving,। am hopeful that more
and more private sector investment will be
channelized in this sector.। believe NEA should play vital role as a
public sector utility in the development of
power sector. From the system's optimal
operational point of view, the generation
mix of the system should consist of a
combination of both run-of-the-river (ROR)
plants as well as reservoir plants with
seasonal regulation capability. Therefore
NEA should focus its efforts in the
development of storage type hydropower
projects.

The FY 2008/09 was a challenging year for
NEA. Significant drop in water level in the
rivers together with damage of principal
transmission link for import of power from
India resulted in a severe supply-demand
gap in the system causing NEA to resort to
an unprecedented load shedding up to
sixteen hours a day. This situation has
severely impacted its financial condition. In
addition, there are other challenges facing
NEA such as those resulting from high
system losses, transmission capacity
constraints, lack of necessary investment
capital and so on.। am pleased to note that, amidst these

challenges, NEA has begun to take a long
term perspective in adding its generation
and transmission capacity. Among the
generation projects that NEA has initiated
implementation include Upper Tamakoshi,
Trishuli 3A and 3B, Upper Seti and
Rahughat. NEA is also implementing various
transmission projects to enhance power
evacuation capacity within the country, as
well as cross-border transmission lines to
exchange power with India. These are
commendable efforts to meet the long term
demand growth as well as to encourage
private sector investment in this sector.

To address the immediate challenge of load
shedding, NEA is working towards
rehabilitation/ overhauling of the existing
generation plants. The Multi Fuel Power
Plant, Hetauda Diesel Plant, and Kali
Gandaki 'A', Marsyangdi and Gandak
Hydropower stations are being rehabilitated.
Similarly, import of electricity from India and
demand side management are some of the
other measures taken by NEA to reduce
the gap between demand and supply. With
the completion of these activities,। hope
there will be some relief from load shedding.

Another area where NEA needs to focus
its efforts is in the loss reduction. The poor
security situation in the past not only
impacted the loss reduction efforts but also
the billing and collection. While further efforts
to address this situation on NEA's part is
necessary, support from the local
administration and various political parties
on the ground is also equally necessary.

In spite of the numerous challenges,। must
commend NEA for the services it has
provided to the customers and for its efforts
to address the load shedding situation.।
wish NEA and its staff best wishes in their
effort to serve the nation by providing reliable
and affordable electricity.

Nes aN

Dr. Prakash Sharan Mahat
Minister of Energy
Chairman, Nepal Electricity Authority

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Chairman
Dr. Prakash Sharan Mahat
Minister of Energy

Member Member Member Member

Mr. Shankar Prasad Koirala Secretary, Ministry of Finance शा. Lekh Man Singh Bhandari Mr. Ananda Raj Batas
Secretary, Ministry of Energy

Memeber Member Member Secretary
Dr. Jivendra Jha

Page No. 1

A Year in Reviw, Fiscal Year 2008/09

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VAN SO AYNLONALS ALVAYOdYOD

Page No. 2

८८४ Executives of NEA

]

2
3
4
5.
6.
7.
8.
9.

. Mr. Dipak Prasad Upadhyay (GM, Distribution & Consurmer Services)
. Mr. Bhojraj Regmi (GM, Engineering Service)

- Mr.Yugal Kishor Shah (GM, Transmission & System Operation)

. Mr. Shiv Chandra Jha (DMD, Planning, Monitoring & IT)

Mr. Chhatra Bahadur Bajracharya (GM, Generation)
Mr. Rameshwar Yadav (GM, Electrification)

Mr. Diwakar Poudel (DMD, Finance)

Mr. Tika Ram B.C (DMD, Internal Audit)

Mr. Binod Kumar Dhakal (DMD, Administration)

Page No. 4

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Mr. Upendra Dev Bhatta Mr. Tirtha Man Shakya Mr. Harihar Man Palikhe
Director Project Coordinator Director
Information Technology RE, Distribution & Transmission Project TL/SS Construction

Mr. Birendra Kumar Pathak Mr. Mahendra Lal Shrestha Mr. Ram Chandra Mandal
Director Director Director
Generation Construction Mid-North Regional Office Mid-South Regional Office

as.
Mr. Ram Chandra Pandey Mr. Lava Bahadur Ghimire Mr. Sashi Sagar Rajbhandari
Director Director Director
Nepal India Cross Border 400 kV TLP Corporate Finance Power Trade

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

छि
Mr. Rajeswor Man Sulpya Mr. Pradeep Lal Shrestha Mr. Ganesh Prasad Raj
Director Director Director
Upper Trisuli 3 'A' HEP DCS Eastern Regional Office

Mr. Mohan Krishna Upreti Mr. Chiranjibi Sharma Poudel Mr. Keshab Raj Bhatta
Director Director Director
Grid Operation Technical Services/Commercial Chameliya HEP

Mr. Anuj Ratna Shakya Mr. Vishnu Bahadur Singh Mr. Subhash Dahal Chhetri
Director Director Director
Monitoring Project Development Western Regional Office

Page No. 5

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Mr. Puspa Raj Khadka Mr. Sher Singh Bhat Mr. Sunil Kumar Dhungel
Director Director, Project Director
MD Secretariate System Operation Middle Marsyangdi HEP

Mr. Jaya Narayan Thakur Mr. Radesh Man Pradhanang Mr. Rishikesh Sharma
Act. Director Act. Director Act. Director
Mid & Far Western Regional Office Soil, Rock & Concrete Laboratory Environment & Social Studies

Mr. Dev Sharma Poudel Mr.Madhab Prasad Luitel Mr. Sudhir Prasad Singh
Act. Director Act. Director. Officiating Director
Generation, Operation & Maintenance Training Centre Corporate Planning

Page No. 6

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Mr. Ishwori Prasad Khatiwada Mr. Dandapani Bashyal Mr. Badrinath Roka
Act. Director Act. Director Act. Director
Human Resources General Service Finance & Account

am 84
Mr. Govinda Raj Kharel Mr. Arjun Kumar Chauhan Mr. Ishwori Prasad Tiwari
Act. Director Act. Director Act. Director
Legal & Grievance Handling Internal Audit Kaligandaki 'A' HEP

&

Mr. Juju Kaji Ranjit Mr. Asta Ratna Shakya Mr. Yogendra Prasad Baidya
Officiating Director Act. Director Officiating Director
SHP and Rural Electrification System Planning Finance, DCS

Page No. 7

Dr. Jivendra Jha
Managing Director

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Managing

Director's Report। feel honored to present this 24th Annual
Report of Nepal Electricity Authority on
the occasion of this Annual Anniversary
Ceremony as Managing Director. It is
of great pleasure to all of us that
unperturbed by joys and despairs our
beloved organization has completed 24
glorious years in the service of the
nation.

FY 2008/09 shall be noted historic
because for the first time in a century
long history of electricity generation and
consumption, government declared
"National Electricity Crisis" in the country
and introduced a 38 point package
program to mitigate this crisis. Reviewing
the slow pace of developments in the
sector, NEA through its "White Paper"
published in 2007, had indicated the
stepping of grave situation and need of
government intervention. Ultimately we
faced it in 2008/9 in form of 16 hours of
load shedding per day, though a little
early than expected. Combination of
expected normal unbalance and natural
contingencies aggravated the mismatch
between demand and supply to this
level. NEA as single buyer cannot be
solely held responsible for this severe
mismatch of demand and supply but
had to absorb and dissipate the
mounting pressure of dissatisfaction of
consumers which some times went
violent. As NEA is not the only player in
the sector,। cannot promise a magical
change in situation although we will
intensify our efforts through our strategic
options to minimize the crisis. It is high
time and। request government to extend
arms to help NEA to pull country out of
darkness.। believe that though distressful, Year
2008/9 has been helpful to open eyes
of all stakeholders that NEA must be
supported for what it has been
requesting i.e. revision of retail tariff,
financial restructuring and autonomy
etc. We assess Year 2008/9 more of
challenges than achievements and get
inspired with the famous quote "Success
is not measured by the heights one
attains, but by the obstacles that were
overcome in the attainment."

System Operation

Year 2008/9 recorded a 12.58% growth
in peak power demand and 10.58%
growth in energy demand. Presuming
normal availability of domestic and
import supply sources, we had
forecasted mild two hours per day load
shedding from month of November to
a maximum of eight to nine hours per
day for driest few days in February. But
additional six hours of load shedding
was attributed to natural causes
including historic low water level in
Kulekhani reservoir, relatively low inflow
in rivers in dry season and damage to
towers of Kataiya - Duhabi 132 k V
Transmission line. Justifying the saying
"Trouble never comes alone" reliable
supply from Bhotekoshi power plant
was also interrupted due to technical
problem thereby contributing one more
hour of load shedding and making it up
to sixteen hours per day per consumer.
NEA resorted to all possible options to
minimize this crisis including purchase
of all excess energy from IPPs,
operation of costly diesel plants, possible
import in trading mode and call for
captive supply but these measures could
not offset the large gap between
demand and supply.

Page No. 8

Contingencies caused by nature are beyond control
of NEA but we had to absorb mounted dissatisfaction
of consumers expressed as lockups, agitations,
physical assault on our employees and damage to
NEA property at many places. As a backstopping
measure to such situation, additional seasonal
storage capacity and high capacity cross border
interconnections have emerged as need of the time
to reduce our dependence on Run-of-river plants.

System load factor over the year is recorded 54.22%
compared to 55.2% of previous year. Analysis of
load factor and other such system indicators is
misleading when the system is running in abnormal
conditions of very long hours of load shedding daily.
A massive campaign on use of efficient lighting and
other appliances, off peak use of electricity and
other various Demand Side Management techniques
may contribute to peak flattening which is already
started and will get continuity in future.

Operational performance

Peak power demand of Integrated Nepal Power
System (INPS) over the year in review 2008/9
reached 812. 50 MW at 18:25 hours on January
20, 2009 registering 12.58% increase over peak
demand of previous year 721.73 MW. Likewise
annual energy demand totaled 3,859 GWh marking
10.58% growth over annual energy demand of
previous year 3,490 GWh. Out of this total energy
demand only 3,130.77 GWh could be served through
available sources and 728.23 GWh had to be
curtailed as load shedding to keep the system in
operation.

Contribution of hydro sources in the served energy
volume was 88.33% including 29.57% contribution
from IPPs. Import accounted for 11.39 % and rest
0.29% of served energy was managed from thermal
plants. Unavailability of Kataiya - Duhabi 132 k V
transmission line, has reduced net import from India
compared to previous year.

NEA has been able to maintain consistent growth
in its number of customers during 2008/9 also. With
a 10.13 % growth over last year, our total number
of customers at the end of FY 2008/9 reached
16,70,610. Around 95.48% of total customers belong

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

to domestic category accounting for 42.52% of total
energy sales and 41.87% of total revenue earned
during the year under review. Although industrial
category of consumers is only 1.71% of total number
of consumers but it contributes a substantial 37.37%
of energy sales and 34.80% of total revenue earned.
It indicates that average tariff of industrial consumers
is lower than domestic category.

NEA owned power stations managed to generate
1,839.52 GWh during FY 2008/09 with an increase
of 2.59% over the figure of previous year. This could
be possible after the onset of operation of the long
awaited Middle Marsyangdi Hydropower Station on
December 14, 2008. Apart from regular preventive
maintenance of generating plants, major overhauling
works were carried out on generating units of number
power stations. Overhauling of turbine of one unit
of major power plants Kaligandaki "A", Marshyangdi,
Gandak and Puwakhola was accomplished. Repair
and overhaul of generator and turbine of second
unit of Kulekhani-2 was completed whereas repair
of unit no. 1 of Kulekhani — 1 was in progress at
the year end. Kaligandaki "A" suffered a set back
due to problem in GIS PT and a temporary solution
was sought by installing outdoor CVT to run the
units.

Commissioning of Chandranigahpur 132/33 kV and
Kawaswoti 132/11 kV, rehabilitation of five towers
of Duhabi - Kataiya 132 kV transmission line that
were washed away by Koshi floods within stipulated
time and reinforcement of overloaded grid
substations by installing new transformers and
relocating the old ones at Parwanipur, Butwal,
Anarmani, Lahan and Lamosangu Substations were
major accomplishments in transmission business
area. But our system reliability is degraded as
indicated by increased number of system collapses
during the year compared to previous years. Lack
of protection coordination, inappropriate load
frequency response of governors of major units and
absence of alternative transmission paths to meet
"n-1" criterion are identified as reason to degrading
reliability and work has been initiated to update the
same. Study of protection coordination of whole
INPS is in progress. Although System Average
Interruption Frequency Index (SAIFI) is degraded
by increased frequency of interruptions yet System

Page No. 9

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Average Interruption Duration Index (SAIDI) is good
making time availability of the transmission system
99% during the period.। sincerely confess that we have not been able to
perform and meet the target of reduction of system
losses. Our efforts have not generated encouraging
results and INPS has endured 25.27% system loss
provisionally in FY 2008/9. There is little contentment
on this figure as the audited final loss figure of
preceding year was 26.52% (provisioned 25.15%).
Our loss reduction activities could not yield much
because our employees had to face fierce resistance
from misusers. Yet, we are committed to intensify
our efforts to bring down the system loss to an
acceptable level.

Financial Performance

Historically low replenishment of water in Kulekhani
reservoir and poor run off in various rivers during
dry season had a direct impact of more than a billion
rupees on our revenue. Managing the energy deficit
so caused to the extent possible through other
sources like operation of costly thermal plants and
importing costly energy from short term market
under trading mode imposed additional costs of
about half billion rupees. Thus due to lack of supply
sources we missed the opportunity of translating
the encouraging demand growth into revenue.
Besides this about one billion rupees due of Street
Lights was written off and we had to bear about 0.8
billion rupees loss from foreign currency exchange
rate fluctuations. All these factors have directly
imposed a loss of about 3 billion rupees.

Normal operation of business was frequently
disturbed by work stoppages and strikes as well as
heightened insecurity experienced as physical
threats, extortions, manhandling, cutting water
supply to staff quarters and vandalizing the property.
We were deprived of performing effectively in meter
reading, cash collection, loss reduction and system
improvement. These activities have large bearing
on our financial performance.

Operating costs also increased due to hike in price
of spare parts and consumables as well fluctuating
rates of exchange of foreign currencies in upward
direction.

One basic reason of financial losses appeared in
the income statement of FY 2008/9 and preceding
years is pegging of retail price for many years there
by not making up the increasing cost of service.
Reasonable cost of service must be allowed to pass
through to consumers for the financial sustainability
of the utility.

NEA has a revenue rate of Rs 6.71 per kWh against
cost of service Rs 9.05 per kWh for its main
business. Besides its main business NEA makes
miscellaneous income contributing Rs 0.43 per kWh
of sales. Even after adjusting this miscellaneous
income to revenue rate of main business, NEA
suffered a loss of NRs 1.91 per kWh of energy
sales.

Total earning of NEA during FY 2008/09 reached
NRs 16,212.65 million which includes NRs
15,220.87 million from sale of electricity and NRs
991.78 million as other incomes. Electricity sales
revenue increased marginally by only 1.19%
compared to NRs 15,041.49 million figure of previous
year. With an increase of 12.95% over the previous
year figure, Operating expenditure reached NRs
16,184.19 million thereby recording operating
surplus of NRs 28.46 million. However net loss
incurred during the year mounted NRs 4,681.24
compared to NRs 961.47 million of previous year.
Accumulated losses by the end of fiscal year reached
to an alarming figure of NRs 12,332.67 million. Net
property of NEA in terms of plant and equipment
valued at historical cost reached NRs 78,678.89
million whereas Capital works in progress at the
end of fiscal year amount for NRs 18,054.38 million.
Similarly NEA has NRs 2,320.19 million remained
as equity investment in subsidiary and joint venture
companies like Chilime, Upper Tamakoshi etc.
Likewise NEA has liability of NRs 32,273.67 million
as equity towards Government of Nepal and NRs
58,217.77 million as long term loan.

Overall picture and trend of the financial condition
by the end of FY 2008/9 is crippling and asks for
urgent and effective financial restructuring for the
sustainability of the organization. Gradual recovery
of accumulated financial losses and generation of
investment funds for expansion may be possible
only by reviewing retail tariff, reducing interest rate
on government loans, capitalization of grant projects

Page No. 10

at average cost estimate of the region, reduction of
system losses and management of seasonal surplus
energy.

Ongoing Projects

Apart from professional operation and maintenance
of existing plant and equipment, NEA has the
responsibility to expand the system to meet the
growing needs. This includes development activities
related to generation, transmission and distribution
services.

Chameliya Hydroelectric Project (30 MW) scheduled
to be commissioned in 2011 is progressing amidst
frequent disturbances at site. Civil contractor China
Gezhouba Water and Power Group Company
Limited (CGCC) has completed 35% civil works
including two adit tunnels, one diversion tunnel, two
connecting tunnels, one aeration tunnel and one
access tunnel to desander. Excavation of 950 m of
headrace tunnel is completed whereas that of power
house is 90% complete. Contract for construction
of Electromechanical, Hydromechanicaland
Transmission line is also awarded whereas Saman
Corporation, Korea has been appointed consultant
for these works. Government of Republic of Korea
is financing USD 45 million as soft loan for electro-
mechanical, hydro-mechanical & transmission line
works, including cost of Engineering Services for
these works.

Kulekhani -lll Hydroelectric Project (14 MW) is
scheduled to be commissioned in FY 2010/11 at an
estimated cost of NRs 2.43 billion. Excavation of
the powerhouse, adit tunnel -1A and 325 m of
headrace tunnel has been completed whereas work
at intake portal, adit tunnel - 4 and access road to
adit tunnel-3 are progressing. Invitation for the
prequalification of contractors for electromechanical,
hydromechanical, transmission line and substation
works of the Project through International
Competitive Bidding was published on 26 June
2009. The process for the prequalification is in
progress.

On May 5, 2009 tenders were submitted for the first
package of Upper Trshuli 3-A (60 MW) and technical
proposal of Chinese Bidders for this package is in

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

final stage. Actual construction of the project is
envisaged to start in the dry season of FY 2009/10.
Draft Tender Documents and Tender Drawings for
the civil works of Upper Trishuli 3- B project (37
MW) have been completed. The prequalification of
bidders for civil works of Rahughat Hydroelectric
Project ( 30 MW ) has already been initiated as well
as invitation for the expression of interest from
local, international or/and the Joint venture of both
for the construction supervision and management
of the project has already been published. This
being less than 50 MW project, IEE is sufficient and
has been initiated. Topographical survey including
reservoir mapping and surface geological mapping
of the project areas of Nalsyagu Gad storage project
(400 MW) have already been completed. A gauging
station has been established at the dam site and
hydrological data is currently being updated. Detailed
geological investigation followed by detailed
feasibility design will be carried out in this fiscal
year. Negotiations are ongoing with Korean Public
Company KEPCO regarding joint development of
40 MW Upper Modi —A project.

Transmission expansion has been realized as the
main thrust for development of hydropower and
government has come forward for public investment
in this sector. Khimti — Dhalkebar 220 kV, Hetauda-
Bharatpur 220 kV, Thankkot-Chapagaun-Bhaktapur
132kV, Kusum-Hapure 132kV Transmission lines
and Hetauda (Kamane) 132kV S/S are the major
projects under construction. Parallel to this
Bharatpur-Bardghat 220kV, Butwal-Kohalpur 132kV
Second Circuit, Marsyangdi-Dumre-Damauli 132kV,
Mirchaiya-Katari132Kv transmission lines as well
as Matatirtha 132kV Substation Expansion, Chapali
132kV new Substation, Pathalaiya 132 kV new
Substation, Syangja 132 kV new Substation Projects
are under preparatory stage. New proposed projects
include Lekhnath-Damauli 220kV Transmission Line
and High Voltage Transformer Upgrading & HV
Capacitor Bank. Funding negotiation with Norwegian
Government for Capacitor banks is in progress. In
total 32 transmission line projects of 400 k V, 220
k V and 132 k V of total length 2439 km have been
envisioned to be completed within a decade under
National Electricity Crisis Mitigation Program - 2065.
Estimated cost of these projects amounts NRs 55
billion.

Page No. 11

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Various rural electrification programs are launched
through financial assistance of donor agencies and
progressing to make electricity accessible to rural
dwellers. Rural Electrification, Distribution and
Transmission Project with loan assistance from
Asian Development Bank(ADB) and OPEC Fund
for International Development (OFID) and the
Distribution and Rural Electrification Project financed
by the World Bank are nearing completion, The
Kailali-Kanchanpur Rural Electrification Project
(KKREP) funded by DANIDA and Ilam Rural
Electrification Project (IREP) with non-project grant
assistance from the Government of Japan have
been successfully completed in this reviewed period.
Government of Nepal (GoN) has also financed
many rural electrification projects through 20:80
partnership scheme. Total 55,453 consumers were
served through offices under Electrification business
in the review period. 500 kW Heldung Small
Hydropower Project (Humla District) has been
commissioned and providing electricity to about
300 consumers. Construction work of 400 kW
Gamgad Small Hydropower Project (Mugu District),
is making good progress and expected to be
completed within FY 2009/10.

It is realized that NEA cannot afford its scarce
resources in development activity like rural
electrification as well as it cannot continue to provide
bulk electricity to Communities at almost half of the
average retail tariff. We hope that formation of Rural
Electrification Company will take shape soon to
carry out rural electrification and associated works
as government responsibility.

Capacity Building and
Institutional Strengthening

According to approved organizational structure in
place at the end of FY 2008/9 there are 10314 staff
positions; of which a total of 9280 are already placed.
A total of 304 positions were filled by new recruitment
during the year under review.

NEA firmly believes that employees are one of the
major factors of success of an organization. To
sharpen the skill of employees NEA training center
organized need based trainings for its employees
and a total of 709 staffs got benefited through these

training programs. Similarly Information Technology
Department also conducted a total of 5 training
programs participated by 86 NEA staff on use of
the software applications developed/supported by
the Department. NEA executives were given
opportunity to study, participate, interact and learn
from the development taking place elsewhere in
the world through peer exchange programs.

There have been significant developments in the
use of information technology for reporting, creating
database, analyzing and developing a knowledge
base to improve our operational efficiency. To
enhance and expand NEA intranet into a country-
wide data network, fiber network is extended to
Lagankhel, Bhaisipati and Pulchowk DCS branches.
The public service telephone system (PSTN) lines
within NEA complex are replaced with telephone
lines from Optical Network Unit provided by Nepal
telecom. Enhanced availability and use of IT in our
decision making and delivery of service has shown
clear indication of improvement in these areas. The
fabric of organization structure as corporate and
business functions has been suitable for
concentrated efforts in particular business area and
creation of expertise in specific areas.

NEA's Subsidiary Companies and
the Private Sector

Chilime Hydropower Company Limited (CHPCL),
the first subsidiary company of NEA, has been
successfully delivering deemed as well as excess
energy to NEA from its Chilime Hydroelectric Power
Plant in six years of operation including the year in
review. It has distributed attractive dividends to its
share holders at the rate of 10%, 20%, 35%, 30%
and 35% respectively in the last five fiscal years.
CHPCL has included four more projects for
development in its corporate plan. These include
Sanjen Upper (11 MW), Sanjen (35 MW),
Rasuwagadhi (100MW) and Middle Bhotekoshi (80
MW).

Upper Tamakoshi Hydropower Company Limited
(UTHPCL) has arranged financing for its 456 MW
Upper Tamakoshi Hydroelectric Project in Dolkha
District. Employee Provident Fund (EPF) has
pledged to provide NRs 10 billion as debt and NRs

Page No. 12

2 billion as debenture whereas Himalayan Bank
Ltd. (HBL), the lead bank for the consortium of
commercial banks of Nepal has also pledged to
provide NRs 6 billion as debt for the project. Citizen
Investment Trust has committed a loan investment
of NRs. 2 billion and discussions are underway with
Rastriya Beema Sansthan to arrange remaining
funds required for the Project. Six international
construction companies have been prequalified for
Project civil works and 5 international consultants
have been short listed for the construction
supervision of the project. Last 28.5 km stretch of
the 68 km long access road and upgrading of its
35 km long Dolakha-Singati section is underway.
Power Purchase Agreement with NEA is at final
stage. Local Construction Company Himal Hydro
is in progress with the construction of 700 m long
access tunnel.

Power Transmission Company of Nepal (PTCN)
engaged in development of cross border power
transmission line is preparing to float the tenders
for proposed Dhalkebar — Muzaffarpur 400 k V
transmission line. NEA is reviewing the draft
Transmission Service Agreement (TSA) submitted
by the company.

NEA has always considered Independent Power
Producers as trusted peers in meeting country's
growing electricity demand. Total number of PPAs
concluded so far has reached 52 with total installed
capacity of 286,179 KW. Out of this, 19 projects
with total installed capacity of 158,315 KW are
already in operation. To encourage small size
developers using domestic sources, NEA declared
fixed generation tariff for PPA of plant size less up
to 25 MW. This was a major event of the year that
has simplified the PPA process and attracted
developers of that range. As a result 12 new PPAs
worth 42.963 MW were concluded and 3 active
PPAS were revised to enhance a total of 8.986 MW
during FY 2008/9. A total of 87 PPAs are under
consideration and combined capacity of projects in
these PPAs happens to be 1209.680 MW.

Future Plans

NEA is passing through critical stage and we are
aware that the challenges will grow exponentially

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

in the days to come. But we have a vision to face
these challenges and rejuvenate. We are ready
with short term, medium term and long term strategic
plans to expand our generation, transmission and
distribution capacity; curb the system losses and
improve financial health. Implementing Demand
Side Management techniques, importing maximum
possible power from India, rehabilitating existing
hydro and thermal plants for 100% availability shall
be launched as short term measures. Kulekhani -
3 Hydroelectric Project, Chameliya Hydroelectric
Projects and Muzaffarpur — Dhalkebar 400 kV Cross
border Transmission Line Project will be completed
as medium term measure. Upper Tamakoshi (456
MW), Upper Trishuli- 3A (60 MW), Upper Trishuli
3-B (37 MW), Rahughat (30 MW) and Upper Seti
Storage (127 MW) hydroelectric projects will go in
implementation as long term measures. Similarly
from private sector Kabeli — A (30 MW), Upper
Marshyangdi (50 MW), Upper Modi-A (40 MW) and
few more projects are expected to be completed
within five years from now. With the completion of
high capacity cross border interconnection, seasonal
trading shall be possible and problem of base load
supply during dry season shall be resolved. NEA
plans to take up storage projects like Nalsyagugad
and Budhigandaki as longer term option. With plans
in hand for expansion, we shall have a vast fabric
of transmission network to meet our domestic and
export capacity requirement. NEA will intensively
expand distribution facilities and network and
reinforce it for reliable supply. Modes operandi of
distribution and supply services shall be changed
to make it consumer friendly by use of Information
Technology and latest state of art used elsewhere.

Acknowledgements

It is opportune to mention that credit for NEA's
performance and achievements attained during
2008/09 goes to all those who have been directly
or indirectly contributing to this cause. Our deep
gratitude goes to Chairman and members of NEA
Board of Directors who have strategically steered
the course in adverse conditions.। also sincerely acknowledge government support
in our regular operation and development pursuits.। am also indebted to bilateral donors such as India,

Page No. 13

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Japan, Germany, South Korea, Norway, Denmark,
Sweden and USA as well as the international
development banks such as World Bank, Asian
Development Bank, Japan Bank for International
Cooperation and Kreditanstalt fur Wiederaufbau
(kfW) that have generously supported us and
contributed in our development and institutional
strengthening activities.। sincerely express my
thanks for their support in meeting the growing
energy needs of the nation.। am aware that NEA
has a large well wisher community in the society
that stands in favor of NEA at difficult times.।
sincerely thank that community and request for
continued support in future. Our staffs have shown
consistent strive for betterment and dedication
throughout the year.। am thankful to the entire staff
of NEA as well as their representative Unions for
their support and cooperation. At last। apologize
to our valued customers for not meeting their
expectations and sincerely thank them for bearing
with us during adversities.

Thank You.

Ser

Dr. Jivendra Jha
Managing Director

Page No. 14

Generation
Business Group

The Generation Business Group is entrusted with
the responsibility of constructing new power projects
and the operation and maintenance of NEA owned
power plants. It is headed by a General Manager
and has Generation Construction Department,
Operation and Maintenance Department and
Kaligandaki "A" Hydropower plant under it.

This Business Group is now overseeing the
construction of Chameliya Hydroelectric Project (30
MW) and Kulekhani - III Hydroelectric Project (14
MW). It is operating and maintaining seventeen
hydropower stations with a total installed capacity
of 424.12 MW and two thermal power plants with
a total installed capacity of 53.41 MW. It is also
operating the Middle Marsyangdi Hydropower Station
following its inauguration on 14 December 2008.

Generation from NEA owned power stations in FY
2008/09 was 1841.63 GWh, an increase of 2.55 %
over the previous fiscal year's figure.

Operation and Maintenance
Department

The Operation and Maintenance Department,
headed by a Director, is responsible for operating
and maintaining NEA owned power plants with the
exception of Kaligandaki "A" Hydropower Plant. A
total of 1088.26 GWh of energy was generated from
these power plants in FY 2008/09.

In FY 2008/09, preventive maintenance works were
carried out on a regular basis in all the power
stations to ensure timely detection of faults and
their rectification. Overhauling of turbine runners of
Marsyangdi, Gandak and Puwakhola Hydropower
Stations was performed. Repair and major
overhauling of Unit No. 2 generator and turbine set
of Kulekhani-Il Hydropower Station (KL-IIl) were
completed under the supervision of experts from
Fuji Electric Systems Co. Ltd. (Japan). Repair of
inlet valve and overhauling of Unit No. 1 generator

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

and turbine set of Kulekhani -l (KL-I) is presently
under progress.

On 6 April 2008, NEA entered into a contract
agreement with the Bharat Heavy Electricals Limited
(BHEL) of India for the rehabilitation of Devighat
Hydropower Station. The fabrication of turbine,
generator and the spare parts required for the
rehabilitation work has already commenced and
other equipment and materials have already arrived
at the Birgunj Customs. The rehabilitation project
is funded jointly by the Government of India (GOI)
and NEA. GOI has agreed to provide IRs 150 million
as grant assistance and IRs 150 million as loan
under a line of credit. The balance of fund required
for the rehabilitation work will be managed by NEA.

With the loan from the Asian Development Bank
(ADB), procurement for the rehabilitation of excitation
system and the modernization of weir control system
at Marsyangdi Hydropower Station and installation
of trash rack cleaning machine at Gandak
Hydropower Station is presently under way. Similarly,
the procurement of spare parts and overhauling of
Hetauda Diesel Plant and Multifuel Power Plant are
scheduled to be carried out in FY 2009/10 in order
to enhance their reduced outputs.

A Central Maintenance Division is being proposed
under this Department for the purpose of regular
preventive maintenance and repair work at NEA
owned stations. A mobile team of this proposed
maintenance division will travel to different NEA
power stations on an as-and-when required basis
and maintain them as far as practicable. The
Department also avails the services of other experts
or technicians as the case may be in case such
expertise is not available within NEA for maintaining
and repairing power plants in NEA.

Page No. 15

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Kaligandaki-A Hydropower Plant

The Kaligandaki-A Hydropower Plant, headed by a
Director, oversees the operation and maintenance
of the 144 MW plant, Nepal's largest hydropower
plant to date.

In FY 2008/09, a total of 753.368 GWh of energy
was generated from Kali Gandaki -A Hydropower
Plant, a decrease of 0.74 % over the preceding
fiscal year's figure. This decrease was mainly due
to the problems noticed with the Gas Insulated
Switchgear (GIS) Potential Transformer (PT) of Unit
Nos. 1 & 2 of the station. The GIS PT of Unit No.
1 and 2 were damaged on May 5, 2009 and April
4, 2009 respectively. This resulted in non-operation
of Unit Nos. 1 and 2 till June 18, 2009 and May 11,
2009 respectively primarily due to non-availability
of spare PTs. Damaged PT of unit No.2 was replaced
with the PT from the rural transformer and an outdoor
CVT was installed temporarily to bring Unit No. 1
in operation

In FY 2008/09, spillway gates, intake under-sluice
gates, de-sander flushing gates and trash rack
cleaner were repaired and maintained. Similarly,
inspection & runner replacement of Unit No. 1 and
major overhauling of Unit No. 3 were successfully
completed. Analog input/output PLC cards, EPABX
communication cards and high voltage bushings of
56.5 MVA power transformer of Unit No. 2 that were
damaged, were also replaced.

Generation Construction
Department

The Generation Construction Department is also
headed by a Director and presently is executing
the construction of 14 MW Kulekhani-Ill Hydroelectric
Project. The status of the Project is outlined below.

Kulekhani-lll Hydroelectric
Project

The 14 MW Kulekhani-lll Hydroelectric Project (KL-
Ill) is located at Bhaise Village Development

Tunnel Construction of Kulekhani 11] HEP

Page No. 16

Committee (VDC) of Makwanpur District, about 115
km south west of Kathmandu.

Kulekhani -Ill Hydroelectric Project is a cascade
project, which utilizes the regulated flow of Kulekhani। and Il hydropower stations and water of Khani
Khola for power generation. Main features of the
Project comprise head pond, 4293 m long and 3.5
m diameter headrace tunnel, underground forebay,
370 m long penstock and semi-underground
powerhouse with two units of 7 MW vertical shaft
Francis Turbines. The Project is estimated to
generate about 40.85 GWh of energy annually.
Power generated from this Project will be evacuated
to Hetauda Substation through 0.5 km long 132 kV
single circuit transmission line.

Excavation at the powerhouse site, 308 m long adit
tunnel 1A and 325 m headrace tunnel has been
completed so far. In addition, work is in progress
at intake portal and adit tunnel 4. Construction of
access road to adit tunnel 3 that provides access
to the forebay as well is also moving ahead.

Invitation for the pre-qualification of Contractors
through International Competitive Bidding for electro-
mechanical, hydro-mechanical, transmission line
and substation works of the Project was published
on 26 June 2009. The process of pre-qualifying the
Contractors is in progress.

This Project has been accorded a National Priority
Project by the Government of Nepal (GON). The
total project cost is NRs. 2.43 billion and is being
funded by GON and NEA. The Project is scheduled
to be commissioned in FY 2010/11.

Chameliya Hydroelectric Project

The Chameliya Hydroelectric Project (CHEP) is
being handled by a Project Director reporting directly
to the General Manager, Generation Business
Group. It is a six-hour daily peaking run-of-the-river
(PROR) project with an installed capacity of 30 MW.
The Project is estimated to generate an average of
184.21 GWh annually. The project lies in the Far

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Western Region of Nepal, about 950 km west of
Kathmandu in Chameliya valley, Darchula District.
Main features of the Project are 54 m high concrete
dam with two 13.5 m high radial gates, underground
de-sander with 2 basins, 4,067 m long headrace
tunnel, 49.8 m high restricted orifice type surge
tank, 461 m long penstock and semi-underground
powerhouse with two units of 15.3 MW vertical shaft
Francis turbines. Power generated from the project
will be evacuated through 131 km long 132 kV
transmission line to Attariya Substation in Kailali
District.

In December 2001, detailed design and preparation
of tender document were completed with the grant
assistance from Korea International Co-operation
Agency (KOICA). Construction of 18 km long access
road has been completed. Six of the seven bridges
on the access road have already been completed
and the construction of the remaining one is in
progress. Construction of the camp facilities is about
93 percent complete. Land acquisition for the Project
has been completed.

China Gezhouba Water and Power Group Company
Limited (CGGC), China was awarded the contract
for the construction of the civil works of the Project
on 21 December 2006. Excavation works for 308
m long adit 1, 214.0 m long adit 2,274 m long adit
3,203 m long diversion tunnel, 127 m long
connecting tunnel 1, 116 m long connecting tunnel
2,156 m long aeration tunnel and 182 m long access
tunnel to de-sander have been completed. Likewise,
excavation works for de-sander and tailrace are in
progress. Out of 4067 m headrace tunnel (HRT),
950 m excavation is complete, whereas that for the
powerhouse is 90% complete. The overall progress
of the civil works is about 35 %.

The Government of Republic of Korea is providing
USD 45 million as soft loan towards the cost of
electro-mechanical (E/M) equipment, hydro-
mechanical (H/M) equipment & the construction of
132 kV transmission line (T/L), including the cost
for Engineering Services of E/M and H/M works.

Page No. 17

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

On 30 April 2009, KHNP Consortium comprising
Korea Hydro & Nuclear Power Co. Ltd. (KHNP)
Korea; Hwachon Plant Construction Co. Ltd.
(HWACHON) Korea; Sean Engineering and
Construction Co. Ltd. (SEAN) Korea; and Nepal
Hydro & Electric Ltd. (NHE) Nepal was awarded
the contract for the E/M, H/M & 132 kV T/L works
of the Project. Similarly on 11 May, 2009; Saman

Corporation, Korea was appointed Consultant for
the E/M, H/M & 132 kV T/L works. Both the contractor
and the consultant for the E/M, H/M & T/L works
have already started their respective work.

The Project is scheduled to be completed in year
2011.

Flushing Tunnel of Chameliya HEP

<2)

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

a,
ayy: i भै १
हु

Middle Marsyangdi
Hydroelectric Project

Background

Middle Marsyangdi Hydroelectric Project is located
near Besishahar in Lamjung District, Gandaki Zone,
about 170 km West of Kathmandu. The Project is
a peaking Run-of-River Project with an installed
capacity of 7OMW and an average annual generation
of 398 GWh. The Consultant (Engineer) Fichtner
JV (FJV) was selected in the year 1999 after
concluding financial and project agreements between
Government of Germany, the Government of Nepal
(GoN) and Nepal Electricity Authority (NEA) for the
grant of Euro 178.26 millions through Kreditanstalt
fur Wiederaufbau (KfW). The procurement of
Consulting Service, Civil Works and
Electromechanical Equipment was carried out
through Limited Bidding System. The initial estimated
Project Cost in year 2000 was USD 181.27 millions

equivalent to Euro 212 millions at the exchange
rate USD1=Euro 1.17. But due to different
circumstances, the project could not be completed
within the original scheduled completion period of
43 months and accordingly, the project cost
increased. As per the Engineer's updated project
cost in January 2009 (Paush 2065), the revised
cost is estimated to be Euro 276.35 million. These
costs do not include Interest During Construction
(IDC).

In addition, KfW has provided Euro 3.0 million for
Neighborhood Support Program (NSP) to support
the development activities and to improve the
infrastructures related to education, health, water
support & sanitation and rural electrification of eleven
Village Development Committees (VDCs), in
Lamjung District, in the vicinity of Project area.

Reservoir of Middle Marsyangdi HEP

Page No. 19

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Civil construction works started from June 25, 2001
(Ashad 11, 2058) with the completion target of 39
months on September 24, 2004 (Ashoj 8, 2061).
But, due to law and order situation such as bandhs,
strikes and design changes, the civil works was
completed only on November 7, 2008 (Kartik 22,
2065). The Engineer issued Taking Over Certificate
effective from November 7, 2008 with the punch list
of remaining works. After impounding of the reservoir,
wet commissioning of 2 units started from November
28, 2008 (Mangsir 13, 2065) and subsequently, on
December 14, 2008 (Mansir 29, 2065), the project
was inaugurated and synchronized with the National
Grid. As of July 15, 2009 (Asad 31, 2066), altogether
169 GWh of energy has been successfully generated
from two units.

Status

Payment: Till June 14, 2009 (Jestha 31, 2066), an
amount of NRs 21,840 million for the services and
works has been spent excluding IDC amount of
NRs 4,360 million. With IDC, the total expenditure
comes to NRs 26,200 million. The expenditure of
NRs 21,840 million consists of about NRs 13,427
million for total works and services, about NRs 5,130
million for foreign exchange rate difference, about
NRs 913 million for prices escalation and about

NRs. 2,370 million for claims.

Contractor's Claim: The Civil Contractor DDC-JV
till date has submitted the claim of Euro 122 million
and NRs 2,928 million. The amount of Euro 26
million and NRs 417 million has been paid as on
account basis as per the Engineer's certification.
With regard to Electromechanical lots, an amount
of Euro 4 million and NRs 0.1 million has been paid
as per the Engineer's certification.

Arbitration and Amicable Settlement: As per the
provision of the Contract, both parties DDC-JV and
NEA issued the Notice of Intention to commence
Arbitration in March 2005 (Chaitra 2061) after having
dissatisfaction with the Engineer's decision. Two
attempts of amicable settlement have been made
but settlement of the dispute could not be made
amicably. As part of the first phase of the Arbitration,
the Contractor has referred disputed claim amount
of Euro 38.4 million and NRs 527 million to the
International Court of Arbitration (ICA) of the
International Chamber of Commerce (ICC) for the
commencement of the Arbitral proceedings. Three
Evidentiary Hearings and one Post Hearing have
been conducted and the partial award is expected
by the end of the year 2009. In this regard, NEA
has also made counter claim amounting Euro 37
million against DDC-JV.

Overview of Middle Marsyangdi HEP Site

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Transmission and System
Operation Business Group

Among five business groups of Nepal Electricity
Authority (NEA), Transmission and System
Operation (TSO) business group is responsible for
the design, construction, operation and maintenance
of 66 kV and higher voltage level of transmission
system. These functions are entrusted to the
Transmission Line/Substation Construction
Department, Grid Operation Department and System
Operation Department.

The issues and challenges facing NEA in general,
TSO business group in particular, are funding
constraints, hurdles in acquisition of land for
transmission line tower footing, substation, and
acquisition of right of way (RoW) for transmission
line, bottlenecks in major transmission system,
inordinate time taken in environmental studies
(EIA/IEE). Other challenges include implementation
of 38-point program of the government related to
transmission system expansion under National
Electricity Crisis Mitigation Program — 2065 of the
government, synchronization of INPS with Indian
Grid etc.

Transmission Line / Substation
Construction Department

Transmission Development Planning performed by
the System Planning Department of NEA guides
the implementation of transmission projects. The
Transmission Development Plan is based on system
studies of INPS and the generation expansion plan.
Development of transmission projects involve
several phases-- acquiring license for survey,
conducting survey, performing EIA/IEE studies,
acquiring construction license, forest clearance,
acquiring land for tower footings and substation,
acquiring right of way (RoW) of transmission line,
designing, tendering, construction and handing over
the constructed transmission system to the Grid
Operation Department for operation and
maintenance. Most of the transmission development
works are carried out through turn key contracts.

Recently completed projects, projects under
construction and those in pipeline are described
below.

Recently Completed Projects
Chandranigahpur System Reinforcement

The objective of this project is to meet the increasing
electricity demand of Rautahat and Sarlahi districts
and to reduce the technical loss in the transmission
system in Chandranigahapur area. The scope of
this project included construction of a new substation
at Chandranigahapur consisting of 132/33 kV, 30
MVA and 33/11 kV, 8 MVA transformers and
associated equipment; and 74 km of 33 kV sub-
transmission line to connect the new
Chandranigahpur substation with the existing 33
kV substations at Harsaha, Haripur, Gaur and
Nijgadh. Completion of this project is expected to
contribute to reduction in system losses,
improvement in the reliability and quality of supply
in the project areas mentioned above as well as in
and around Birgunj. Construction of the 132/33/11kV,
30 MVA Chandranigahpur Substation has been
completed, commissioned and charged in FY
2065/066 (2008/09) whereas construction of 33 kV
sub-transmission line is in progress. In this project,
AAAC-250 sq. mm. conductor has been used for
the 33kV sub- transmission line for the first time in
Nepal to avoid growing cases of stolen conductor.

This project was jointly funded by NEA/GoN and
WB and is estimated to cost about NRs. 421.00
Million (equivalent to US$ 5.26 Million).

New Kawasoti 132 kV Substation

This project was undertaken to cater to the high
electricity demand in the eastern part of Nawalparasi
District. The main objective of this project is to
provide reliable and quality of electricity supply to
the consumers of Kawasati and its vicinity, and
reduce system losses. Moreover, this substation is

Page No. 21

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

also expected to attract the industrial consumers
and independent power producers (IPPs) in the
area. Additionally, this project provides opportunities
for 33/11kV sub-transmission / distribution network
expansion to supply electricity to the large number
of rural hilly communities living in the northern part
of the district.

Under this project the existing Bardghat - Bharatpur
132 kV transmission line is looped-in- looped - out
(LILO) at Pragatinagar to construct a new 132/33/11
kV substation.

Major components of the project are two 132 kV
line bays, one 132 kV transformer bay with 132/33
kV, 30 MVA power transformer; one 33 kV
transformer bay with 33/11 kV, 8 MVA power
transformer, two outgoing 33 kV feeders and 11 kV
cubicles.

This project is jointly funded by the Government of
Nepal / Government of Japan and Nepal Electricity
Authority. The total cost of the project is equivalent
to NRs.581.00 Million, which includes Japanese
Grant of JP¥ 847.00 Million, and local fund
amounting to NRs.56.00 Million borne by GoN and

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(May 2009).

Power Development Project

The Power Development Project under NEA
Transmission and Distribution component is being
implemented under the loan/grant assistance of the
World Bank. The initial allocation to this project was
about USD 31 million. As part of the original scope,
the following projects are being implemented:

7 Khimti-Dhalkebar 220 kV Transmission Line

Project
7 Distribution and Rural Electrification Project
7 Chandranigahapur System Reinforcement
Project

7 NEA Institutional Strengthening Project

Under the Khimti-Dhalkebar 220 kV Transmission
Line Project, a 75 km long 220 kV line is being
constructed. The Distribution and Rural Electrification
Project consists of reinforcement of distribution
systems and electrification in Lalitpur, Bhaktapur,

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Page No. 22

Kavre, Dhading and Nuwakot districts. The
Chandranigahpur System Reinforcement Project
involves construction of a 132/33 kV substation at
Chandranigahpur and related 33 kV sub-
transmission lines. Finally, the Institutional
Strengthening Project focuses on improving the
processes in finance, accounts and internal audits
within NEA.

The 220 kV Khimti-Dhalkebar Transmission Line
and the facilities under the Distribution and Rural
Electrification projects are currently under
construction. The 132/33 kV substation at
Chandranigahpur has been completed and the
related sub-transmission lines are under
construction. The activities under the NEA
Institutional Strengthening have been completed.

In February 2008, the Power Development Project
was restructured, whereby the scope of work under
the NEA Transmission and Distribution component
was increased providing an additional allocation of
about USD 36 million. Under this additional scope
of work the following projects are being implemented:

7 Hetauda-Bharatpur 220 kV Transmission
Line Project

7 Distribution System Reinforcement Project
7 NEA Institutional Strengthening (Il)

The tender for the supply and installation of Hetauda-
Bharatpur 220 kV has been awarded, and the
constructors have begun route survey work. The
tender notice for the construction of 132/11 kV
substations at Hetauda and Bharatpur has been
published. The Distribution and System
Reinforcement Project includes two major activities
(a) Energy and Customer Accountability
Enhancement focusing large customers in
Kathmandu valley and in major industrial corridors,
and (b) Distribution System Reinforcement and
Rehabilitation of 33/11 kV substations in the following
ten locations : (i) Khanar, (ii) Inaruwa, (iii) Rupani,
(iv) Jankpur, (v) Haripur, (vi) Chanauli, (vii)
Bhairahawa, (viii) Ghorahi, (ix) Tikapur, and (x)
Gularia.

The Energy and Customer Accountability activity

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

focuses on NEA's efforts (a) to enhance
accountability 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 energy
accountability framework (metering and billing,
verification) and revenue collection system for large
customers receiving high voltage supply.

The short listing of consultants to implement this
activity has been completed and the Request for
Proposal (RFP) is being issued soon.

The progress of implantation of Distribution System
Reinforcement is in various stages. Contracts for
the supply of equipment have been awarded. The
tenders for the rehabilitation of 33/11 kV substation
are under advanced stage of evaluation/award. The
tenders for the rehabilitation of distribution networks
are being issued soon.

In May 2009, the World Bank has decided to provide
additional credit of about USD 74 million to NEA
primarily to address the energy crisis. The activities
being implemented as part of this additional financing
are:

7 Kali Gandaki 'A' HEP rehabilitation
7 Duhabi Multifuel Plant rehabilitation
7 Hetauda Diesel Centre Rehabilitation

7 Bharatpur-Bardaghat 220 kV Transmission
Line construction

7 Pathlaiya 132 kV substation construction

7 Kathmandu Valley distribution network
strengthening

Initial procurement actions such as preparation of
tender documents and hiring of consultants, have
been initiated for all the above activities.

Page No. 23

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Projects under Construction

The projects under construction are listed below

लाग्न। roject

Khimti-Dhalkebar
220kV Transmission
Line

Chandranigahapur
System
Reinforcement

Hetauda-Bharatpur
220kV Transmission
Line

sn N.
Thankkot-
Chapagaun-
Bhaktapur 132kV
Transmission Line

Kusum-Hapure 132kV

Transmission Line

Hetauda 132kV S/S
and 33 kV sub -
transmission line

Scope of Works & Status

75 km of 220kV Transmission Line &
two Substation Bays at Khimti and

Dhalkebar substation. The

construction work is in progress

75 km of 33kV Transmission Line
The construction work is ongoing.

70 km of 220kV Transmission Line &
Substations at Hetauda, Bharatpur &

Bardghat. Check Survey of

Transmission line is in progress, the

tender has been floated for
construction of substations.

28km of 132kV Transmission Line
from Matatirtha to Bhaktapur,

New 132kV, 22.5MVA Substation at
Harisiddhi, Switching Station at
Matatirtha, 132/11 kV & 66/11kV,
22.5MVAX2 Transformer replacement
at Bhaktapur & Balaju substations

respectively.

Transmission line construction
partially completed. RoW problem
and local problem for land acquisition
in Harisiddhi 132 kV S/S hindered
construction works, Substation
extensions at Matatirtha, Balaju &
Bhaktapur substations are in

progress.

20 km Transmission Line and 132/11
kV, 30 MVA S/S. The project is
financed by the GoN through Ministry
of Industries to supply power to Dang
Cement Industry. The project is in the
final stage of tender floating.

10 km 33 kV Transmission Line and
132/33/11 kV substation at Kamane,
Hetauda. The project is financed by
the GoN through Ministry of Industries
to supply power to Hetauda Cement
Industry. The project is in the final

stage of tender floating.

Funding Source

NG,NE,WB
NG,NE,WB

NG,NE,WB
NG,NE,AD,OF

Completion
Year

2009/10
2009/10

2010/11

2009/10

2010/11
2011/12

Page No. 24

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Projects under Preparatory Stage

Completion

su.। Project। Scope of Work & Status Funding Source Year

1। Butwal-Kohalpur 208 km of second circuit stringing with
132kV Second Circuit। associated substations extension.
Transmission Line Country Agreement with ADB is expected NG,NE, AD 2010/11
in September 2009. Tender Document
Preparation is in final stage.

Marsyangdi-Dumre-। 38 km of second circuit stringing & 18 km
2।Damauli 132kV of 132 kV transmission line with
Transmission Line। Aabukhaireni substation and bay
extensions.
Country Agreement with ADB is expected
in September 2009. Tender Document
Preparation is in final stage.

3। Matatirtha 132kV 132/33/11 kV substation extension.
Substation Expansion। Country Agreement with ADB is expected
in September 2009. Tender Document
Preparation is in final stage.

4।Chapali 132kV 132/11 kV substation at Chapali & High
Substation Voltage UG cable with associated bay

extensions at Lainchaur S/S and Chabel
S/S. NG, NE,
Country Agreement with ADB is expected AD
in September 2009.
Land acquisition is in process. Tender
Document Preparation is in final stage.

NG,NE, AD 2011/12

NG, NE, AD 2010/11

2010/11

5। Capacitor Bank Capacitor Bank Installation in different
grid substations.
Country Agreement with ADB is expected NG.NE.AD 2011/12
in September 2009. Tender Document
Preparation is in final stage.

o Bharatpur-Bardghat। 70 km of 220 kV transmission line.
220kV Transmission। MOU signed with WB, Tender Document। NG, NE, WB 2011/12
Line completion process is final stage.

7।Pathalaiya 132 kV 132 kV Substation at Pathalaiya. MOU
Substation signed with WB, Tender Document NG, NE, WB 2011/12
Preparation is in progress.

7 Syangja 132 kV 132 kV Substation at Syangja. Land
Substation acquisition for substation is completed.
Tender Document Preparation is in
progress.

2010/11

7 Mirchaiya- 20 km transmission line and 132/11 kV
Katarit32kV substation at Mirchaiya.
Transmission Line। The project is financed by the GoN
through Ministry of Industries to supply
power to Katari. Survey work is in

NG,NE 2011/12

progress.

Page No. 25

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Lekhnath-Damauli
220kV Transmission
Line

High Voltage
Transformer
Upgrading & HV
Capacitor Bank

extension

Scope of Works & Status

Funding Source Completion

45 km transmission line with bays

Grid Transformer Upgrading and HV
Capacitor Bank Installation at grid
substation. Funding negotiation with
Norwegian Government is in progress

Year
NG,NE 2012/13
NG,NE, NR 2011/12

38 Point Transmission System Expansion Related Programs of Government of Nepal
under National Electricity Crisis Mitigation Program - 2065

su.।। Project चय nang Preliminary Scope of Works & Status
1।Kabeli 132kV Transmission Corridor NG 79 km TL and S/S hub at Godak -3 of Ilam, Phidim -
4 of Panchthar & S/S at Lakhanpur -1, Damak.
Survey and EIA in progress.
Singati-Lamosangu 132kV NG 40 km TL and S/S at Singati.
Transmission Corridor Survey and EIA in progress.
Kohalpur-Surkhet 132kV NG 55 km TL and S/S
Transmission Line
Lamki-Upper Karnali 132kV NG 60 km TL and S/S
Transmission Line(Karnali Corridor)
Marsyangdi 132kV Corridor NG 45 km TL Corridor and S/S,। 6. Sunkoshi-Dolakha 132kV NG 20 km TL Corridor and S/S,
Transmission Corridor
7।Hapure-Tulsipur 132kV Transmission NG 18 km TL and S/S at Tulsipur,
Line
a छ ones
Transmission Line
=। Sanense
Transmission Line
Surkhet-Dailekh-Jumla 132kV NG 110 km TL and S/S,
Transmission Line
11। Katari-Okhaldhunga-Solu 132kV NG 70 km TL and S/S,
Transmission Line
12। Kaligandaki-Jhimruk 132kV NG 90 km TL and S/S,
Transmission Line
Duhabi-Dharan-Dhankuta-Tirtire NG 100 km TL and S/S,
132kV Transmission Line Survey in Progress
Transmission Line Survey in Progress
Line
Line
Transmission Line

Page No. 26

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Funding

Source Preliminary Scope of Works & Status

50 km TL and S/S,

SN. .। Project।
Transmission Line।
Transmission Line

i
Line।
ransmission Line

60 km TL and S/S,
22 km TL and S/S,
110 km TL and S/S,

60 km TL and S/S,

100 km TL and S/S at Kathmandu,

70 km TL and S/S,
Survey in Progress

105 km TL Corridor and S/S,
Survey in Progress
160 km TL and S/S,

on

T - -
2। Gulmi-Arghakhanchi-Chanauta 132kV
Transmission Line
23। Khimti-Kathmandu 220kV
Transmission Line
4।Marsyangdi-Kathmandu 220kV
Transmission Line
Koshi Corridor (Basantapur-Kusaha)
220kV Transmission Line
6।Kaligandaki (Parbat-Butwal-Bardghat)
Transmission Corridor
Hetauda-Butwal 400kV Transmission
Line
Butwal-Lamki 400kV Transmission
Line
Lamki-Mahendranagar 400kV
Transmission Line
Duhabi-Anarmani 400kV
Transmission Line

31।Hetauda-Dhalkebar 400kV
Transmission Line

32।Dhalkebar-Duhabi 400kV NG 160 km TL and S/S,
Transmission Line

Total 2439 km of Transmission Lines (1229 km of 132kV,
365 km of 220kV, 845 km of 400kV Lines)
Note:

NG = Nepal Government

NE = Nepal Electricity Authority

AD = Asian Development Bank

WB = World Bank

OF = OPEC fund for International Development
NR = Norwegian Government

200 km TL and S/S,
105 km TL andS/S,

80 km TL and S/S,

Oo

wo N nN nN nN २? Le)
५) foe) N

140 km TL andS/S,

85 km TL and S/S,
Survey, EIA in Progress

Page No. 27

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

GRID OPERATION DEPARTMENT

The Grid Operation Department under the
Transmission and System Operation (TSO) business
group performs various activities related to operation,
maintenance, up-gradation, reinforcement, reactive
compensation and rehabilitation works in substations
and transmissions lines. The Department along with
six offices under it carried out the following major
works in the FY 2008/09.

Transformer Upgrading, Compensation
and Substation Reinforcement Works
(Completed)

Up-gradation, extension and replacement works
have been regularly carried out by this department
to manage the growing demand in the existing
substations. Similarly, reactive power compensation
works are regularly carried out to improve the system
voltage and overloading problems of transformers
and transmission lines. Some intermediate
substations are also built to improve voltage and
increase the power transfer capability in the system.
Activities like strengthening of bus system to facilitate
power import from India were also completed. This
year, NEA faced a severe load shedding situation.
With a view to address this situation, additional
connection facilities were constructed in some of
the substations to facilitate the evacuation of power
from independent power producers (IPPs).

Activates performed by this Department have
supported reduction of load shedding caused by
inadequate transformation capacity. This department
has carried out and completed following major up-
gradation and reinforcement works in FY 2008/09.

7 Supply, Delivery & Commissioning of
132/33kV Transformer Bay at Lamoshangu
with shifting of Transformer from Anarmani
Substation. Provision of evacuating the Power
from Independent Power Producers (IPPs)
at 33kV level was provided as part of this
upgradation.

7 Supply, Delivery & Commissioning of 33/11kV,
16.6MVA Transformer with replacement of
33/11kV, 8MVA Transformer at Butwal
Substation. The 8MVA Transformer was
shifted to Lahan Substation. Replacement

of old 12kV Switchgears with new switchgears
was also carried out at Butwal Substation.

7 Supply, Delivery & Commissioning of 33kV,
1OMVAr & 11kV, 1OMVAr Capacitor Banks
at Birgunj Substation. There are now a total
of 15MVAr Capacitor Banks in 33kV and
15MVAr in 11kV sides.

7 Conversion of main and transfer bus to
double bus system at Butwal and Chanauta
Substations to make power transfer from
India possible.

7 Supply, Installation & Commissioning of
132/66kV, 45MVA Transformer at new
Parwanipur Substation with interconnection
of 132kV and 66kV system. This was helpful
to improve poor voltage problems at Birgunj
corridor.

7 Installation of 132/33kV, 5MVA Transformer
Bay at Mahendranagar Substation in addition
to existing 7.5MVA Transformer.

7 Replacement of 23 numbers of old Indoor
Vacuum Circuit Breakers (VCBs) with new
VCBs at Teku Substation.

Work in progress: Following major up-gradation
& reinforcement works at various substations have
been initiated and works are in progress:

7 Installation of 132/33kV, 63MVA Power
Transformer to replace the existing 30MVA
Power Transformer in addition to existing
132/33, 683MVA Power Transformer at Duhabi
Substation to meet the growing load demand
of Eastern region.

7 Installation of two numbers of 132/33kV,
63MVA Power Transformer in replacement
of two numbers of 132/33kV, 30MVA Power
Transformers at Butwal Substation to meet
the growing load demand of Western region.

7 Supply, Delivery and Commissioning of
66/11kV, 7.5MVA Transformer at Indrawati
lll Power House to facilitate the local loads.

7 Shifting, Installation and Commissioning of
132/33kV, 30MVA Power Transformer at

Page No. 28

Anarmani Substation and installation of On
load Tap Changer (OLTC) on this transformer.

7 Shifting, Installation and Commissioning of
132/33kV, 30MVA Power Transformer from
Butwal to Dhalkebar Substation and
132/33kV, 15MVA Power Transformer from
Dhalkebar to Attaria Substation.

7 Shifting, Installation and Commissioning of
two numbers of 66/11kV, 10MVA Power
Transformers from Balaju to Hetauda
Substation with replacement of old two
numbers of 66/11kV, 6MVA Power
Transformers.

7 Shifting and Installation of 66/11kV, 1OMVA
Power Transformer from Bhaktapur to
Panchkhal Substation to augment the
capacity from the existing 66/11kV, 5MVA
Power Transformer.

7 Shifting and Installation of 132/33kV, 5MVA
Power Transformer from Kohalpur to Damauli
Substation to replace the damaged 132/33kV,
10MVA Power Transformer.

7 Supply, Delivery and Commissioning 33kV
line Control and Relay Panel at Damauli
Substation.

Transmission Line Maintenance Work
(Completed)

Re-routing, erection and stringing of 132kV Kusaha-
Kataiya Transmission Line damaged by the Koshi
floods were successfully completed. Five numbers
of transmission line towers were heavily damaged
at Shreepur in Sunsari district due to this flood.
Around 60MW of Power could not be transferred
from India to Nepal Grid due to this incident.

Relay Testing and Energy Meter Testing
Works

7 Purchase of portable three-phase online
meter testing equipment was completed.

7 Meter Testing Group of the Department has
carried out Relay and Energy Meter Testing
works from various Grid Substations including
from IPPs.

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Routine & Breakdown Maintenance Works

Routine Maintenance works were carried out as
per schedule for substations and transmission lines.

SYSTEM OPERATION
DEPARTMENT

As a department responsible for the operational
planning, scheduling, dispatching and contingency
action, the System Operation Department had to
perform its responsibilities in a very difficult time of
severe generation capacity constraints during this
year. Unprecedented low water level in Kulekhani
reservoir, historically low inflow in the rivers, problem
in Bhotekoshi Power Plant and damage of towers
of Duhabi-Kataiya 132 kV transmission line thereby
eliminating the key power import backbone made
the FY 2007/08 "a year never before". Despite
conscientious efforts of the department to minimize
load shedding, the demand and supply gap widened
recording about 50% supply deficit in terms of
capacity and energy. In this situation, the system
operation could be made possible by enforcing a
load shedding of 16 hours per day per customers.

Due to extreme supply conditions and poor
protection coordination, the number of system
tripping events increased to 40 this year compared
to 15 tripping events last year. This situation further
degraded system reliability. As a preventive
measure, the System Operation Department has
taken initiatives to improve protection coordination,
load frequency responses and voltage
compensations.

SCADA and associated telecommunication system
remained fully functional throughout the country
due to timely scheduled maintenance and immediate
repairs. Inclusion of new substations and extension
of bays in the existing substations was successfully
completed. Availability factor of the fiber
communication system has been high contributing
to continued growth in revenue through optical fiber
leasing.

Page No. 29

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

CROSS-BORDER 400 kV Transmission
Interconnections

Under Cross-Border Transmission Line Project,
following three cross-border Indo-Nepal
Transmission Interconnections have been identified

7 Dhalkebar-Mujaffarpur 400 kV Transmission

Interconnection

7 Duhabi-Purnia 400 kV Transmission
Interconnection

7 Butwal-Gorkhapur 400 kV Transmission
Interconnection

The Dhalkebar (Nepal)-Mujaffarpur (India) 400 kV
Transmission Interconnection consists of about 145
km of transmission line, of which approximately 45
km of transmission line section from Dhalkebar to
Bhittamod near Indo-Nepal border falls under the
Nepalese territory and remaining part of this line
(about 100 km) falls in the Indian territory. The
interconnection would be designed at 400kV Double
Circuit line to be initially charged at 220kV and
would be operated in synchronous mode between
the Nepalese and Indian grids.

7 As per latest development with the Indian
counterparts, this part of transmission
interconnection has been prioritized to be
constructed in phase-1. Efforts are underway
to realize this project. This project will solve
the problem of power shortage in central
region where the demand for power is higher.

7 Total project cost of Nepalese portion is NR
1.28 billion (USD 20.0 million), of which the
Government of India is financing INR 13.2
million as soft loan to Government of Nepal.
The Indian portion of the transmission line
is being financed through domestic sources
by the Indian company "Cross Border Power
Transmission Company'.

7 The "Power Transmission Company Nepal
Ltd." (JVC Nepal)- has been incorporated in
Nepal for the construction of the 45km section
of Nepal portion of the line. Similarly, the
"Cross Border Power Transmission Pvt. Ltd."
has been incorporated in India for the

construction of 100km of Indian portion of
the transmission line.

7 The investors in "Power Transmission
Company Nepal Ltd." are NEA (50%), JVC
Nepal-IL&FS IDC (26%), and Banks/IPPs of
Nepal (24%),

The Duhabi-Purnia 400 kV Transmission
Interconnection consists of about 22 km of
transmission line section from Duhabi in Nepal to
Jogbani near Indo-Nepal border in the Nepalese
territory, and 99 km of line in the Indian territory.
NEA has secured the survey license for the project.
An application for construction license has been
filed.

The Butwal-Gorkhapur 400 kV Transmission
Interconnection consists of about 25 km of
transmission line section from Butwal in Nepal to
Sunauli near Indo-Nepal border, and remaining
section of bout 100 km of the line falls in the Indian
territory. NEA has secured the survey license for
the project. An application for construction license
has been filed.

Present Status of the Transmissions Line

7 The Nepal Electricity Authority is pursuing
EIA studies of Dhalkebar—Bhittamod (Nepal),
Duhabi-Jogbani and Butwal-Sunauli sections
of the Transmission Line. EIA studies of all
these lines are expected to be completed
within December 2009.

7 Preliminary works such as route alignment
and survey of transmission line route have
been completed.

7 Expression of interest for construction has
been invited from Indian contractors.
Thirteenth Indian firms have submitted their
expressions of interest in ILFS-Delhi office.

7 Tender documents under preparation by
POWER-GRID through PTCN is expected
to complete in this F/Y 2009. For seamless
execution of the work, the technical
parameters of the transmission lines on both
the sides have been kept same.

Page No. 30

13.5 million USD funding is available through
the Government of India under the line of
credit to execute the project. Indian
counterpart is exploring different financial
option for funding of the transmission line in
Indian side.

Draft Implementation and Transmission
Service Agreement and back to back
Transmission Agreement prepared by PTCN
were sent to NEA for review and comments.
NEA has sent its comments.

Project is expected to complete within two

a Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

years from the date of contract agreement.
Tenders for both Nepal and India portions of
the lines will be floated simultaneously under
one Notice Inviting Tender and IL & FS
Infrastructure Development Company Limited
has been authorized to publish the notice.

As per mutual understanding with the Indian
Counterparts, Duhabi-Purnia and Butwal-
Gorkhapur interconnections will be realized
under the second phase after completion of
Dhalkebar-Mujaffarpur interconnection.
Feasibility study is yet to be undertaken for
these interconnections.

132 kV Matatirtha substation under construction

Page No. 31

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Distribution and Consumer
Services Business Group

Distribution and Consumer Services (DCS) is the
largest business group of NEA in terms of number
of employees and business activities. About 62%
of the total staff employed by NEA is in this Business
Group providing service to 97 % of NEA's customers
through 34 Distribution Centers and 32 branch
offices spread over 49 districts.

This business group is entrusted with the key
responsibility for the overall management of
electricity distribution network of NEA. It includes
construction, operation, maintenance, rehabilitation
and reinforcement of the network up to 33 kV voltage
levels, as well as customer services like new
connection, meter reading, billing, revenue collection
and grievance handling. It is also involved in Demand
Side Management activities such as encouraging
and supporting the use of energy saving lamps and
appliances.

This business group is headed by the General
Manager. Five regional offices, each headed by a
Director, cater to the need of ever growing number
of customers for providing a better service. In the
central office, there are four departments namely,
Technical Services/Commercial, Distribution &
Consumer Services, Demand Side Management
and Finance.

Performance Highlights
New Service Connections

In FY 2008/09, 156,574 new service connections
and 613 bulk supply connections were made. The
total number of customers under DCS at the end
of FY 2008/09 reached 1,625,506 an increase of
10.70% over that of previous fiscal year's figure.

Revenue Collection

A total of 2,227 GWh of energy was sold, earning
gross revenue of Rs. 14,931 million in FY 2008/09,
an increase of 0.65% and 0.73% respectively over

previous fiscal year's figures. Sales and revenue
contribution of different customer groups under DCS
in FY 2008/09 are depicted in the following table.

No. of
consumer

6.25%
9.57%
37.31%
5.64%

Customer

Category Revenue

Domestic

Non- Commercial 0.65% 4.60%

Commercial

Industrial and Commercial customer categories
together comprise only 2.09% of the total number
of customers but share 46.81% of total sales.
Domestic customer category, however, comprises
95.33% of the total number of customers, but share
41.80% of total sales.

Industrial

Others

Operational Highlights
New Distribution Lines

The Government of Nepal (GoN) in FY 2008/09
continued funding electrification works that have
remained incomplete since last several years.
Distribution networks were expanded by erecting
22 km of 33 kV overhead lines, 707 km of 11 kV
overhead lines and 2,290 km of LT lines. Similarly,
Distribution Transformers (DTRs), totaling 718, were
also installed.

Reinforcement/Upgradation of Existing
Distribution Network

Upgradation of 185 nos. of distribution transformers,
1 km of 33 kV line, 75 km of 11 kV line and 105 km
of 0.4 kV line were made in various parts of the
country to improve and strengthen the existing
distribution network. DTR failure rate in FY 2008/09
increased to 10% from 7% in FY 2007/08, primarily
due to increased incidence of sudden energization
of distribution transformers after load shedding
hours.

Page No. 32

Major Substation Works carried out in FY
2008/09

Upgradation of 1.5 MVA, 33/11 kV Transformer to
3 MVA at Ghorahi S/S, installation of 33KV, 800A
VCB with Control panel at Tikapur S/S, 12 kV VCB
in Inruwa S/S, 33 kV Isolator switch in Bhaktapur,
and 33 kV VCB for Jiri Feeder at Dolakha Branch.

Supply Reliability

During the year under review, the supply reliability
improved with the exception of load-shedding hours.
The number of breakdowns per month remained
at about 5,550 for High Tension lines and at 10,986
for Low Voltage lines. Analysis of supply failures
has revealed that the main causes for the supply
failures were obstructions by growing trees, burning
of jumpers due to loose connections, and damaged
insulators. Rehabilitation of lines and clearing of
branches/twigs of growing trees are being
continuously carried out as precautionary measures.

Loss Reduction Activities

New laptop computers have been provided to 20
distribution centers/branch offices to download and
analyze the data from bulk supply meters. Now the
data download works have been carried out in
almost all the branches.

Use of Ariel Bundle Conductor has been encouraged
in high non-technical loss prone areas.

Installation of metering units and meters in all the
incoming and outgoing feeders of all the distribution
substations continued in the year under review as
well. This has helped in identifying high loss feeder
as well as areas.

Upgrading of overloaded conductors and
replacement of defective insulators have helped
improving the voltage and reducing the loss in some
of the areas.

In FY 2008/09 around 268 km of single wire, for
the purpose of street lighting were strung and 1,706
nos. of meters and photovoltaic switch installed at
162 locations.

Under the chairmanship of the Chief District Officer,

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

an Electricity Theft Control Coordination Committee
has been formed in 20 districts to curb the non-
technical losses. In other districts, it is in the process
of being formed.

Similarly, interactive programs were held in Hetauda
and Biratnagar jointly in coordination with Nepal
Engineering Council and Nepal Engineers
Association with the participation of Regional
Administrative & Security Officers and other
stakeholders to discuss and formulate plans and
programs to curb the non-techncal losses.

Despite continued measures taken, the desired
outcome could not be realized to control the non-
technical losses. This is mainly due to adverse local
work environment especially in terai. Strikes,
extortion and even manhandling of NEA staff in the
field continued throughout the year. Given these
situations addressed, NEA is committed to achieve
the set target for the loss reduction.

Meter Calibration and Testing

A total of 137,193 new meters were calibrated and
tested at the Meter Testing Laboratory during FY
2008/09.

Customer Service Reforms

DCS is striving hard to provide best service to its
customers using the latest technology. The major
reforms that have been made in this direction are
as follows:

Separate Feeder to Industrial Corridor

As part of government program to serve high valued
consumers in a reliable manner, NEA has
constructed dedicated feeders for the industry and
other essential services such as hospitals.

Queue Management System (QMS)

To provide better service to our customers, DCS
has introduced Queue Management System (QMS)
in its cash collection operations in another 6
Revenue Centers in FY 2008/09. With this the
number of Revenue Centers with QMS facility has
reached 20. Improvement in physical facilities at
these centers has also been made for the benefit
of consumers at the time of bill payment.

Page No. 33

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

alk ale

ia

Que Management System (QMS)

Computer Assisted Interactive Voice
Response Service

The Computer Assisted Interactive Voice Response
Service has been implemented in some of the
offices. This will enable the customers to know their
payment dues and other service related queries
over the telephone promptly. It is planned to be
implemented in all the major branch offices in near
future.

Handheld Meter Reading Device

The handheld meter reading device that
automatically generates the electricity bill has been
introduced in one branch office. With the introduction
of this device, error in calculating the bill amount
and meter reading manipulation will be reduced to
a great extent. It will be implemented in 40 large
collection centers during FY 2009/10 and to other
collection centers in a phase-wise manner.

Automatic Bill Payment Kiosk System

DCS is planning to set up 10 numbers of Bill Payment
Kiosks in public places or NEA premises in FY

2009/10. This will enable the customer to pay the
bill using Cash and Electronic Cards - Credit cards
/ Debit cards.

One Window Service Delivery System

One window service delivery system has been
implemented in 5 distribution centers and it is
planned to be implemented in all the distribution
centers and branch offices. This will facilitate the
customers greatly to complete all the formalities
required for a new connection and they will know
the exact date for the new connection.

MOU with PEA

A Minute of Understanding (MOU) between NEA
and the Provincial Electricity Authority (PEA) of
Thailand was signed in FY 2008/09. As per the
MOU, PEA will share their experience with this
Business Group in the field of preparation/updating
of existing distribution construction standards,
distribution automation, SAIDI & SAIFI indices
improvement and loss reduction.

Page No. 34

Information Technology

'DCS Mail Club' launched to facilitate exchange of
ideas and information on pertinent issues and
assignments using the available IT facilities has
continued to accelerate the speed of information
sharing and reduced the usage of paper. It has
further helped in creating a positive environment
among the concerned branch offices to perform
better by floating and learning from the innovative
ideas for solving the problems effectively.

Human Resource Development

To enhance the technical and managerial skills of
employees, around 188 nos. of technical and non-
technical staffs were deputed to participate in various
training programs and seminars organized by NEA
and other agencies. The outcome of such trainings
helps in increasing the operational efficiency of
employees.

Demand Side Management Department

DCS has initiated an awareness campaign for

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

consumers regarding the efficient use of electricity.
NEA has created a separate department to look
after all the activities relating to demand side
management.

CFL Pilot Program

Much awaited and publicized program for the
demand side management was initiated this year
as part of "National Electricity Crisis Mitigation Plan
2065' of Government of Nepal. The main objectives
of the campaign are: replacement of incandescent
and inferior CFL lamps by quality CFL lamps,
promotion on the use of quality CFL lamps, increased
public awareness on the usage of energy efficient
lamps and appliances and reduction of evening
system peak. This campaign will be implemented
initially at 21 locations in the country (as a pilot
program) with funding from Government of Nepal
and NEA. As part of the program, one CFL lamp
will be given free to NEA's domestic consumers
with monthly electricity consumption of energy up
to 20 kWh. For consumers consuming more than
20 kWh of electricity per month, one additional CFL

Page No. 35

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

lamp will be provided free of cost for the purchase
of one CFL lamp and two additional CFL lamps will
be provided free of cost for the purchase of two or
more than two CFL lamps. In this program, around
627 thousand CFL lamps are planned to be
distributed. A high level CFL Lamp Committee
formed by the then MoWR has selected 'GE' and
'Radiant' Brands as quality CFL through open
bidding. The selected models are ELI certified.

The procurement of CFL by vendors and media
campaign by NEA are both in advanced stages.
Orientation trainings have been given to NEA Meter
Readers and vendors' retail outlets in Kathmandu
Valley. CFL distribution is expected to commence
from the first week of Bhadra, 2066 in Kathmandu
Valley and 15 days later in other parts.

Projects
Computerized Billing Project

The New Computerized Billing System prepared

under this project has been in operation at 25
revenue collection centers. It is planned to implement
this system in 40 more revenue collection centers
by July, 2010. The project is also planning to
implement the centralized billing system starting
initially from Kathmandu Valley which will be
extended to other offices in a phase-wise manner.

Chitwan Madi Electrification Project

This project, aimed at electrifying the Madi areas
of Chitwan district, consists of construction of 3
MVA 33/11 kV sub-station at Madi. Similarly, around
22 km of 33 kV overhead line & 10 km of 33 kV
underground cable, 30 km of 11 kV line and 50 km
of 0.4 kV line using ABC Cable will also be
constructed under this project.

The project, being jointly financed by the Govt. of
India (Gol) and Govt. of Nepal (GoN). The Gol is
providing a grant assistance of approx. USD 1.5
million and the remaining amount will be provided
by GON. The EIA study for the project is in an
advanced stage.

Visit of Vice President of ADB to observe Computarised Billing System at
Pulchwok Distribution Center

Page No. 36

Rural Electrification Master Plan Project

As part of plan to provide electricity to all, the
Government of Nepal is providing funds to prepare
a Master Plan for rural electrifications. The project
will identify the resources to electrify and prepare
a policy and guidelines for systematic and planned
rural electrification.

Projects under WB Assistance

Kathmandu Valley Distribution System
Strengthening Project

The preliminary scope of the Project includes
rehabilitation of 733 km of 11 kV line, 992 km of
0.4/0.23 kV line; addition of 901 distribution
transformers and addition and replacement of 2,350
poles in Kathmandu Valley.

The project cost is estimated at USD 24 million,
which is jointly financed by the World Bank (WB),
GON and NEA.

Distribution System Rehabilitation Project

The scope of the Project includes up-gradation of
distribution substations at 10 locations viz: Khanar,
Inaruwa, Rupani, Janakpur, Haripur, Chanauli,
Bhairahawa, Ghorahi, Gulariya and Tikapur. It also
includes construction of 68 km new 11 kV lines,
rehabilitation of 131 km existing 11 kV distribution
network, construction of 49 km of 0.4 kV new line
using ABC Cable and rehabilitation of 155 km
existing 0.4 kV distribution network.

This Project, jointly financed by the World Bank
(WB), GoN and NEA, is being implemented.
Contract for procurement of various line materials
has already been awarded and tender for the supply
& construction of substations is under evaluation.
Preparation of bidding documents for the
construction of 11 kV and 0.4 kV networks is in
progress.

Energy and Customer Accountability
Enhancement Project

The Energy and Customer Accountability
Enhancement Project, funded by the World Bank

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

under the Power Development Project, has the
objectives of assisting NEA in its efforts to enhance
its accountability to its customers and building an
energy accountability framework (metering and
billing; verification) and revenue collection system
for large customers getting supply at high voltage
level.

In FY 2008/09, international consulting firms
expressing their interest in the job were short listed.
Presently, the Request for Proposal (RFP) document
is under preparation and is expected to be issued
to the short listed consulting firms shortly. The
project is targeted to be completed by FY 2010/11.

Projects under ADB Assistance
Distribution System Augmentation Project

This project covers construction of new distribution
substations at 8 locations namely at Baniyani,
Mirchaiya, Dhanushadham, Paraul, Barahathwa
Mainapokhar, Kusma, Banskot, and new switching
stations at 3 locations viz: Mirmi, Swoyambu and
Mulpani. During this FY, tender documents were
prepared and submitted to ADB for approval.

Project for Energy Efficiency through
Loss Reduction

This component is proposed to address high
technical and non technical losses in medium and
low voltage distribution networks in Kathmandu
valley and Birgunj corridor. Around 22 number of
feeders and distribution lines have been identified
with unacceptable level of loss and are to be
rehabilitated with the technical advice and support
from international consultant.

These feeders then will become model components
of networks that can be replicated across the country.
They will incorporate best international practice with
respect to design, construction and commercial
operation. The project cost is estimated to be around
USD 13 million.

Project for Introduction of Compact
Fluorescent Lamps (CFLs)

This project is the continuation of NEA's current

Page No. 37

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

CFL pilot project and aims to scale-up nationwide
distribution of one million high quality CFL with
rating of 9 W, 12 W and 20 W. Implementation of
this project is expected to reduce Peak demand by
10 MW and curtail consumption by 23 GWh annually.
Assistance will also be available for public
awareness campaign, hiring of consultant and other
resources required for the establishment of a DSM
cell. The project cost is estimated to be around
USD 2.1 million.

Project for Solar Powered Street Lighting

This component will facilitate the promotion of solar-
powered street-lighting in urban areas of Nepal and
will fund a pilot project in Kathmandu Valley. The
areas where the solar-powered street lighting system
is to be installed are Kathmandu, Patan and
Bhaktapur Durbar Squares; Pashupatinath,
Boudhdhanath and Swayambhunath temples; New
Road and King's Way. The project includes purchase
of solar powered street- lighting system,

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replacement/ installation and setting up a system
to ensure a smooth maintenance. Around 1200
existing street lamps will be replaced by solar-
powered lamps which will reduce peak demand by
0.2 MW and save 750 MWh of energy annually.
The project cost is estimated to be around USD 2.7
million.

Effect of Terai Turmoil

The turmoil in Terai continued throughout this year
also, restricting the movement of men and materials
and creating numerous hurdles on the way for the
smooth functioning of distribution and customer
services works. In addition, severe security concern
including the cases of extortion and manhandling
of NEA staff in the field had negative motivational
impact on them. Despite the above adverse situation,
the Distribution and Consumer efforts Services
Business Group has continued to achieve the set
target.

Meter Testing Bench installed by REDSRP at NEA Office, Hetauda

Electrification

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Business Group

Government of Nepal (GoN) has an objective of
extending electricity services to rural areas for the
socioeconomic development of the rural people.
Electrification Business Group, headed by a General
Manager, is mainly responsible for rural electrification
in Nepal. Several donor assisted projects are being
implemented under this Business Group. The Rural
Electrification, Distribution and Transmission Project
with loan assistance from Asian Development Bank
(ADB) and OPEC Fund for International
Development (OFID) and the Distribution and Rural
Electrification Project financed by the World Bank
are nearing completion. The Kailali-Kanchanpur
Rural Electrification Project (KKREP) funded by
DANIDA and Ilam Rural Electrification Project (IREP)
with Non-project Grant Aid from the Government of
Japan have been successfully completed in FY
2008/09. Apart from these, with financing from GoN,
many other rural electrification projects are being
implemented through Small Hydropower and Rural
Electrification Department and Community Rural
Electrification Department of this Business Group.
Besides rural electrification, this Business Group is
also providing distribution and consumer services
to rural people through small hydropower plants
and branch offices in the remote and hilly districts
in the country. In FY 2008/09, the Small Hydropower
and Rural Electrification Department under this
Business Group served 55,453 consumers,
generated 6,819,421 kWh, sold 29,331,554 kWh
and earned revenue of Rs. 172,153,723. The
highlights of the activities of different departments
and projects under this Business Group are
presented below:

Small Hydropower and Rural
Electrification Department
(SHPRED)

This department is responsible for construction,
operation and maintenance of isolated small
hydropower plants, execution of rural electrification,
and extension of the National Grid to remote hilly

regions and establishing distribution system to
provide electricity to rural population. Under this
Department, 26 small hydropower plants, 2 solar
plants and 7 distribution branch offices carry out
various activities related to operation and
maintenance of electricity generation, distribution
and consumer service, covering 27 districts in 12
zones of the country. Out of 26 Small Hydropower
Plants (SHP) in operation, eight are leased out to
private firms and four are leased out to the consumer
communities, which operate under the guidelines
set forth by NEA. A number of 33 kV transmission
lines and 33/11 kV substation projects are under
construction. The status of projects carried out by
SHPRED in FY 2008/09 is summarized below.

Heldung Small Hydropower Project (Humla
District)

Construction work of this 500 kW project, which
commenced in FY 2001/02, is almost fully complete.
The power plant has been commissioned and
providing electricity to about 300 consumers.

Gamgad Small Hydropower Project (Mugu
District)

Construction work of this 400 kW project, which
commenced in FY 2001/02, is ongoing. Construction
of most of the civil structures has been completed.
Electro-mechanical equipment has been transported
to the site. The Project is expected to be completed
within FY 2009/10.

Buipa-Okhaldhunga 33 kV Transmission Line
Project (Khotang and Okhaldhunga Districts)

Major components of the Project consist of
construction of 32.5 km of 33 kV transmission line,
35 km of 11 kV and 30 km of distribution line and
two 33/11 kV, 1.5 MVA substations in Okhaldhunga
and Khotang districts. Construction of 33/11 kV, 1.5
MVA substation at Buipa is about 90% completed.
Altogether, 30 km of 33 kV transmission line, 6.5
km of 11 kV transmission line and 7 km of distribution
line have been completed.

Page No. 39

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

llam-Phidim-Taplejung 33 kV Transmission
Line Project (Panchthar and Taplejung
Districts)

The project includes the construction of 90 km of
33 kV transmission line and 33/11 kV, 1.5 MVA
substation each at Phidim and Taplejung districts.
Out of 90 km long 33 kV transmission line, stringing
of conductor in 60 km & erection of poles in 73 km
have been completed. Construction of 33/11 kV,
1.5 MVA Substation at Phidim is expected to be
completed soon.

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

The project includes the construction of 50 km of
33 kV transmission line, 50 km of 11 kV line, 40 km
of 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 transmission line, stringing
of 32 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, सि

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Transportation of Distribution Transformer to Remote Areas by Helicoptor

+

ongoing and are expected to be completed in FY
2009/10.

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

The project includes the construction of 70 km of
33 kV transmission line, 100 km of 11 kV, 100 km
of distribution line and two 33/11 kV substations in
Surkhet and Jajarkot districts. Out of 70 km long
33 kV transmission line, pole erection and stringing
of conductor for 33 km and 9 km of 11 kV line has
been completed. Construction of 33/11 kV, 750 KVA
substation at Rakam is ongoing and expected to
be completed in FY 2009/10. Contract for 33 kV &
11 kV Protection Scheme of Rakam substation has
been awarded.

Ghorahi-Holeri 33 kV Transmission Line
Project (Rolpa District)

The project includes the construction of 45 km of
33 kV transmission line, 50 km of 11 kV, 50 km of
distribution line and two 33/11 kV substations at

Page No. 40

Holleri & Ghorahi. Construction of 33 kV transmission
line have been completed and 4 km of 11 Kv line
& 5 Km of 400 V distribution line has been
constructed. Construction of 33/11 kV, 750 kVA
substation at Holleri and 33 kV bay extension at
Ghorahi are ongoing and expected to be completed
in FY 2009/10. Contract for 33 kV & 11 kV Protection
Scheme of Holleri substation has been awarded.

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

The project includes the construction of 90 km of
33 kV transmission line, 53 km of 11 kV, 53 km of
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 70 km long 33 Kv
transmission line, pole erection for 66 km and
stringing of conductor for 35 km have been
completed.

Dadeldhura-Baitadi 33 kV Transmission Line
Project

The project includes the construction of 14 km of
33 kV transmission line, 15 km of 11 kv & distribution
line, one 33/11 kV 3 MVA substation at Baitadi and
33 kV bay extension in the existing Dadeldhura
substation. Construction of 33/11 kV, 3 MVA
substation at Baitadi is in progress and is expected
to be completed in FY 2009/10.

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

The project includes the constructions of 35 km of
33 kV transmission line, 52 km of 11 kV, 50 km of
distribution line and one 33/11 kV substations in
Bhojpur district. Out of 35 km long 33 kV transmission
line, pole erection of 34 km and stringing of conductor
for 28 km have been completed. Construction of
33/11 kV substation at Bhojpur is ongoing and
expected to be completed in FY 2009/10. Contract
for 33 Kv & 11 Kv Protection Scheme of Bhojpur
substation has been awarded.

Tumlingtar-Dingla-Bhojpur 11 kV Transmission
Line Project

The project includes the construction of 30 km of
11 Kv, 25 km of distribution line in Sankhuwasabha
and Bhojpur districts. Pole erection of 27 km &

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

stringing of conductor in 19 km has been completed.
Similarly, 16 km of distribution line has also been
completed.

Rasuwaghat-Khotang 33 kV Transmission
Line Project

Major works under this Project are construction of
14 km of 33 kV transmission line, one 33/11 kV, 1.5
MVA capacity substation at Rasuwaghat of Khotang
district, 90 km of 11 kV and 90 km of 400 V
distribution lines in Khotang district. Out of these,
6 km of 33 kV transmission line, 14.44 km of 11 kV
and 21 km of 400 V distribution line constructions
have been completed. Construction of 33 kV bay
extension at Jaljale substation is nearing completion.

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

The project includes the construction of 155 km of
33 kV, 15 km of 11 kV & 3 nos. of 33/11 kV
substations at Sanfebagar, Manma and Jumla. For
33 kV transmission line, pole erection of 12 km 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 400 V distribution
line & one 33/11 kV, 750 kVA substation at Dailekh.

Galkot Substation Project

The main purpose of the Project is to provide
electricity to Galkot area in the Baglung district. Bay
extension work at Baglung substation is being
constructed. Line survey is ongoing.

Rake Ravi-Chisapani-Dashami Bazaar 33 kV
Transmission Line Project

The project includes the construction of 25 km of
33 kV, 40 km of 11 kV, 40 km of 400 V distribution
line in Panchthar district. Line survey is ongoing
and procurement of poles for 6 km of 33 kV
transmission line has been completed.

Manthali-Sangutar 33 kV Transmission Line
Project

The project includes the construction of 30 km of
33 kV, 40 km of 11 kV, 40 km of distribution line in

Page No. 41

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Ramechhap district. Line survey is ongoing and procurement of poles for 6 km of 33 kV transmission line
has been completed.

Kapurkot-Koilachaur 33 kV Transmission Line Project

The projects includes the construction of 15 km of 33 kV, 25 km of 11 kV, 25 km of 400 V distribution line
in Salyan and & Rolpa districts and 33/11Kv substations one each at Koilachaur & Kapurkot. Line survey
is ongoing & procurement of poles for 6 km of 33 kV transmission line completed.

Furkot-Nepalthok 33 kV Transmission Line Project

The project includes the construction of 25 km of 33 kV, 25 km of 11 kV, 40 km of 400 V distribution line
in Kavrepalanchowk district and one 33/11 kV, 1.5 MVA substation at Nepalthok. Line survey is ongoing.

Aatha Rai VDC-Sankranti Bazaar 33/11 kV Substation Project

The project includes the construction of 25 km of 33 kV, 25 km of 11 kV, 40 km of 400 V distribution line
in Tehrathum district and one 33/11 kV substation at Sankranti Bazaar. Line survey is ongoing.

Panchthar 33/11 kV Substation Project

Major expected outcome of the Project is to take 11 kV line to the Panchthar district from a 33/11 kV 1.5
MVA substation at Phidim.

Community Rural Electrification Department (CRED)

This Department was established in February 2003 following the enactment of the "Community Distribution
Regulation-2060", to carry out community based electrification works in an organized way. The idea behind
this regulation is to promote community participation in rural electrification by providing 80% of the capital
cost of electrification by the government and the remaining 20% of the cost by the community. The public
response to this initiative has been overwhelming. Altogether, about 225,000 households will be provided
with electricity after completion of programs approved until F/Y 2008/09.

CRED status till July 15, 2009

Details of Works accomplished under CRED from 2004/05 to 2008/09

HT Line length 1,320 km
LT Line Length 3,841 km
Distribution Transformer 890 Nos.
33/11 kV, 3 MVA Substation 4 Nos.

Description CBRE CBOM
Applications registered
2 4

6
Agreements signed
Currently in operation 22

Note: CBRE: Community Based Rural Electrification Program; CBOM: Community based Operation and
Maintenance CBG: Community based generation

74
Applications approved 262।] %।
9

Page No. 42

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2

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

2 AN
Ne,। A

Rural Electrification, Distribution and Transmission Project

This project is being implemented with loan assistance from Asian Development Bank (ADB) and OPEC
Fund for International Development (OFID). In addition to it, GoN and NEA are financing the local expenses
of the project. Out of six components of the REDTP, the following components have already been completed.
Grid Substation Reinforcement Project
Fixed Assets Revaluation Project

Distribution District Profit Center Project

The following remaining components are under implementation and are expected to be completed in FY
2009/10.

Rural Electrification and Distribution System Reinforcement Project
Computerized Billing Project

Thankot-Chapagaon-Bhaktapur 132 kV Transmission Line Project

Construction of 33/11 kV Substation at Aurahi

Rural Electrification and Distribution System Reinforcement Project

This Project is jointly funded by ADB, GoN & NEA. The Scope of this Project includes rural electrification
in 22 Districts covering 277 VDCs of the Eastern, Central and Western development regions with estimated
cost of USD 37.3 million. So far, nearly 98.96% of works under the Project have been completed and the
remaining works are expected to be completedEin FY 2009/10. The status of the 33/11 kV Substations
under this Project is as follows.

Page No. 43

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Status of the 33/11kV Substations। «Substations। ons

Co
ey
es
i
CT
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CS
CO

Page No. 44

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Distribution and Rural Electrification Project

This project is funded by International Development Association (IDA) of the World Bank under the Power
Development Project formulated to help realize the government's objective of increasing the population
coverage of electricity service by extending the distribution network to the rural areas of the country. Total
estimated cost of the Project is NRs. 859 million. Physical progress up to FY 2008/09 is 92.65%. The
Project is scheduled to be completed by FY 2009/10. This project is expected to benefit 170,625 people.

This project covers five districts, namely, Dnading, Nuwakot, Lalitpur, Bhaktapur, and Kavrepalanchok.
The project comprises of the Rural Electrification Schemes and Distribution System Reinforcement schemes
as follows :

Rural Electrification Schemes

Rural Electrification schemes cover the extension of the sub-transmission and distribution systems to the
rural not yet electrified. The Project scope is summarized below.

33/11 kV substation / switching station (set)

33 kV Line (km)

Dhading। po। pt
. लि
ps

6.

Distribution System Reinforcement Schemes

The Project also covers the reinforcement and replacement of the existing system in Lalitpur, Bhaktapur
and Kavrepalanchok districts. The Project scope is summarized below.। 8.4. N. Description

1.। 14 kV Line (km)
400/230 V Line (kn 12
istributi 3 2 15

11/0.4 kV distribution transfermer (set) 4। 42] 15।
Consumers to be benefited (nos.) 4,100 7,200 5,620

Supply of equipments and materials has been completed except for some spare parts of circuit breakers
and load break switches. The construction of substation, 33 kV Sub-transmission lines and other distribution
lines are completed 80%. The overall physical progress of the project is about 95% and the project is
scheduled to be completed by FY 2009/010

lam Rural Electrification Project

This Project was started on July 17, 2006 with NRs. 70 million Non Project Grant Aid (NPGA) of Government
of Japan for electrification of 11 VDCs only. Later NRs. 45 million added for additional 6 VDCs. In FY
2007/08, additional sum of NRs. 20 million was provided by the Government of Japan as grant. Thus the

Page No. 45

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

total Project cost adds up to NRs. 135 million. Scope
of work consists of construction of 120 circuit km
of 11 kV line, 150 circuit km of distribution line and
installation of 75 distribution transformers. The
Project provides electricity to around 5000
households in 17 Village Development Committees
(VDCs), namely, Maipokhari, Sulubung, Jamuna,
Soyang, Nayabazar, Chisapani, Siddhithumka,
Mangalbare, Dhuseni, Jitpur, Phakphook, Laxmipur,
Shantipur, Shree Antu, Godak, Danawari and
Samalbung of Ilam district, Mechi Zone. The Project
has been completed in FY 2008/09. The Rt.
Honorable Speaker of the Constitutional Assembly,
Mr. Subhas Nemwang inaugurated the Project on
May 24, 2009 in the presence of his Excellency the
Ambassador of Japan to Nepal.

hy a
Fr

Rt. Honorable Speaker of the Constitutional Assembly
Mr. Subash Nemwang inaugurating the Illam Rural
Electrification Project in the presence of His
Excellency the Ambassador o 1 apan to Nepal

Kailali Kanchanpur Rural
Electrification Project

Kailali Kanchanpur Rural Electrification Project
started in 1999 with DKK 85 million grant assistance
of Danish Government and NRs. 420 million of
GON & NEA. The Project has been completed in
FY 2008/09 The Project supplies electricity to around
70,000 new consumers of 35 VDCs and one
municipality in Kailali and Kanchanpur districts.

The project comprises of six numbers of 33/11 kV,
3 MVA substations at Lamki, Attariya, Lalpur,
Joshipur, Choumala and Jhalari; and one 33/11 kV,
1.5 MVA substation at Shripur. Similarly, 93 km of
33 kV, 587 km of 11 kV and 1,935 km of distribution
line are also part of the project. The substations
are already in operation and have resulted in
improvement of the voltage and reliability of power
supply in the districts.

The substation and high voltage lines shall remain
as property of NEA while the low voltage distribution
line and distribution transformers were handed over
to load centre based electricity user's cooperatives,
responsible for owning, operating and maintaining
distribution systems.

Altogether, 216 cooperatives are registered at district
cooperative office. Umbrella organization of
cooperatives covering both the districts has been
established and it provides technical, management
and administrative support to load centre based
cooperatives.

The 33/11 kV substations, 33 & 11 kV lines had
been handed over to respective distribution and
grid office of NEA while Danida funded low voltage
distribution line along with distribution transformers
were handed over to 216 rural electric cooperatives
formed in the district. Each individual cooperative
is given a subsidy of Rs. 7,200 per household while
the balance of investment in low voltage distribution
line, transformer and service connections are
provided as an index loan at 2% real rate of interest
over 20 years to be collected along with payment
for NEA's wholesale supply of electricity. The total
amount of index loan to cooperatives is Nepalese
Rupees 167 million.

Sindhu Dolakha Distribution Line Extension
Project

Started in FY 1999/2000, the project is under
implementation with funding from the Government
of Nepal. The Project is expected to benefit about
50,000 households, and some small and medium
industries in Dolakha and Ramechhap districts. The
major works under the project are as follows.

7 Construction of 82 km of 33kV, 200 km of
11 kV and 460 km of low voltage line

7 Installation of 278 nos. of distribution
transformers

7 Construction of 4 nos. of 33/11 k V, 1.5 MVA
Substations at Makaibari, Jiri, Kirnetar and
Singati

The 1.5 MVA substations at Jiri, Makaibari & Kirnetar
are completed. Likewise, construction of 60 km of
11 kV and 100 km of 400 volts lines are completed.
Construction of Singati Substation is 78% completed.
The project is scheduled to be completed by FY
20010/11.

Page No. 46

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Engineering Services

Business Group

The consulting and other engineering services within
Nepal Electricity Authority (NEA) is mandated to
the Engineering Services (ES) business group. This
business group under takes services such as the
preparation of projects from their identification stage
up to its implementation phase including all the
environmental study requirements, field
investigations, manpower training and other works
related to electromechanical services. With over
several decades of sound experience in these fields,
Engineering Services also caters to the private
sector and other agencies in providing services
related to numerous technical fields. These services
are provided by the following four departments and
one division.

7 Project Development Department

7 Environmental and Social Services
Department

7 Soil, Rock and Concrete Laboratory

7 NEA Training Centre

7 Electromechanical Division

Project Development Department

Project Development Department (PDD) is involved
in the identification and the subsequent development
of hydropower projects through several levels of
studies. It has ample experience in identifying,
carrying out pre-feasibility studies, feasibility studies,
detailed engineering studies, preparation of EPC
(Engineering, Procurement and Construction) and
BOQ (Bill of Quantities) related tender documents
and also the supervision of the construction activities
of hydropower projects. Construction supervision
of Chameliya HEP, preparation of detailed
engineering design for Kulekhani Ill HEP, preparation
of the feasibility study for Upper Tamakoshi HEP,
are some of the works that have been carried out
by PDD in the past. It is currently involved in the
following projects.

Upper Trishuli 3 B Hydroelectric Project

Upper Trishuli 3 B Hydroelectric Project with an
installed capacity of 37 MW is a cascade
development of Upper Trishuli 3 A Hydroelectric
Project. Project Development Department recently
completed the preparation of draft Tender
Documents and Tender Drawings for the civil works
of the project. NEA plans to implement this project
by forming a Public — Private Company. Necessary
is currently in the process of forming an NEA
Subsidiary Company along with the involvement of
the people from the project area and other
government bodies as equity partners.

The project is estimated to cost USD 68 Million and
will generate 296 GWh of energy annually.

Rahughat Hydroelectric Project

Rahughat Hydroelectric Project is also entering the
construction phase. This 30 MW project is located
in Myagdi District. The project is being implemented
under financing arrangements involving a soft loan
from the EXIM Bank of India, Government of Nepal
and Nepal Electricity Authority. Upgraded Feasibility
Study for this project was carried out in the FY
2007/08 which increased the capacity from 27 MW
to 30 MW. Subsequently, a Detailed Project Report
was prepared in FY 2008/09, using its indigenous
resources. Preparation of the tender documents
and tender drawings are in its final stages of
completion.

NEA has plans to immediately take up this project
with the construction of the civil works and the camp
facilities. The prequalification of bidders for civil
works has already been initiated and evaluation is
ongoing. Invitation for the expression of interest
from consulting firms for the construction supervision
and management of the project has already been
published and the submission of the related
documents took place on July 7, 2009.

Page No. 47

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

The estimated cost of the project is USD 65.5 Million
and the project will generate 186 GWh of energy
annually. This project will also have a capacity to
supply 6 hours of peak power. According to the
project construction schedule the project is expected
to be completed in 3.5 years after the start of its
construction. IEE study for this project has already
been started.

Upper Seti Storage Project

The proposed 128 MW Upper Seti (Damauli)
Storage Hydroelectric Project is located in Tanahun
District of Gandaki Zone. In order to enhance the
peak hour supply with firm energy and to minimize
the prevailing seasonal deficit in energy supply,
Nepal Electricity Authority had identified and carried
out the feasibility study of this project in year 2001.
Subsequently, as per the agreement with JICA in
2004, the Upgrading Feasibility Study of this project
was carried out and completed in June 2007. The
140 m high dam located near Damauli creates a
reservoir with a storage capacity of 295 million cubic
meters of water which is diverted to the underground
powerhouse through a 1 km long headrace tunnel.

The project will generate 484 GWh annual average
energy and the project cost is USD 341 million.
Damauli-Bharatpur Transmission Line of 220 kV
voltage and 39 km length is planned for power
evacuation.

Project Road, Bridge, Camp facilties and Field
Investigation works for detailed engineering shall
be initiated in FY 2009/10.

Tama Koshi V Hydropower Project

Tamakoshi-V Hydroelectric Project is located just
downstream of the existing Upper Tamakoshi
Hydroelectic Project, being implemented by Upper
Tamakoshi Hydroelectric Company. Due to this, it
does not require any additional infrastructures for
its development. This project can be developed to
operate in tandem operation with Upper Tamakoshi
HEP.

This project is located in Dolakha District
approximately 170 km north east of Kathmandu
and approximately 42 km away from Charikot

Bazaar. The topographical survey, the hydrological
studies and the geological studies were carried out
in the last fiscal year. Currently, a feasibility study
of the project is being carried out and according to
this study, two possible powerhouse locations on
the right bank of Tamakoshi River with installed
capacities of about 80 MW are studied. The feasibility
study of this project is expected to be completed
by FY 2009/10.

Nalsyaugad Storage Hydropower Project

Nalsyagu Gad Storage Hydropower Project was
conceived as one of the most attractive storage
projects among the 93 storage projects screened
and ranked during the "Identification and Feasibility
Study of Storage Projects" (IFSSP).The feasibility
study of this project is currently being carried out
by the Project Development Department (PDD).
The Project is located in Jajarkot District in the Mid-
western Development Region of Nepal. Nalsyaugad
is a small tributary of Bheri River in the Karnali
River Basin. An access road of approximately 30
km length is required to reach the powerhouse site
from the district head quarter. An additional 20 km
of road will be required to access other components
of the Project.

The present study has established the dam site
approximately 9.25 km upstream from the
confluence of Nalsyaugad and Bheri Rivers.

The topographical survey including reservoir
mapping and surface geological mapping of the
project area have already been completed. A
gauging station has been established at the dam
site and hydrological data is currently being updated.
Detailed geological investigation followed by detailed
feasibility design will be carried out in FY 2009/10.

Transmission Line Projects

As in the past, Project Development Department
has been extending its services, especially in the
survey of transmission line alignment. During the
FY 2008/09, PDD was involved in the study of 16
transmission line projects. Most of them have already
been completed. The status of these projects are
as follows:

Page No. 48

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Name of the Project Project Status

Syagnja Substation Detailed Survey work completed

nen हत MY toposes Kabeli Detailed survey work has been completed

- - Desk study and the site visit for the location of the hub
Kaligandaki 220/132 kV T/L has been completed.
Dhankuta- Tirtire T/L Desk study and walkover survey has been completed

Marshyangdi Transmission Line Desk study has been completed and the preparation for
corridor the walkover survey is going on.
Hetauda-Dhalkebar-Duhabi 400 kV। Desk study has been completed and the preparation for
T/L the walkover survey is going on.

Kohalpur- Surkhet 132 kV T/L Desk study has been submitted to TLSCD.

Karuwa- Katari Cement Industry Desk study and walkover survey has been completed
3। Mamane -Laxmipur 33 kV T/L Detailed survey has been completed

- Desk study has been completed and the preparation for
14 Raxual- Parwanipur 132 kV T/L the reconnaissance survey is going on.
Singti 132 kV Sub-station Detailed survey has been completed
Pathlaiya 132 kV Substation Detailed survey has been completed

Complexes based on the new master plan within
the NEA premises in Ratna Park.

—_—।

नन नन —_— —_ .

NO —_—

=f oa
५)। ८

Other Activities

Apart from the regular works of carrying out studies
at different levels for different projects, PDD is
involved in various other activities which have been
very instrumental in developing the institutional

Construction supervision of the following substation
buildings

strength of Nepal Electricity Authority in the field of
consulting services. Other activities that were carried
out during the FY 2008/09 are as follows.

Continuation of the construction supervision of
Chameliya Hydroelectric Project in association with
the Joint Venture of three local consulting firms
(Shah Consult. SILT and ICON ).

Conducting of the annual sediment survey at
Kulekhani Reservoir.

Initiation for the design of three new NEA Office

Unichaur substation building in Lalitpur District
Salyantartar substation building in Dhading District
Chaughada substation building in Nuwakot District

Upper Trishuli 3 A Hydroelectric Project

This 60 MW run of river type hydropower project
located in Rasuwa and Nuwakot districts is being
implemented on a priority basis so as to augment
the generation capacity of the Integrated Nepal
Power System (INPS) at the earliest. This project

Page No. 49

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

7.5 * काम

[

Public Hearing of Upper Trisuli 3 'A' HEP

was studied by PDD using its indigenous resources
and a Detailed Project Report (DPR) was prepared
for the FY 2064/065. The project is envisaged to
be funded through a concessional loan from China
EXIM Bank. The estimated cost of the project is
USD 125 Million and it will generate 460 GWh of
energy annually. This project will be the first major
hydropower project that will be implemented under
the Engineering, Procurement and Construction
(EPC) model.

NEA is currently developing this project in two
packages.

1. EPC contract for major works comprising of
infrastructure, civil, electromechanical and
hydro mechanical works

2. Construction of 220 kV Transmission Line to
Kathmandu

Tender submission for the first package took place
on 5th May 2009. The technical proposal submitted
by the Chinese Bidders for Package 1 is in its final
stage of evaluation and the actual construction of
the project is envisaged to start in the dry season
of the year 2009. The expression of interest for the
construction supervision and tendering for the
transmission line will be carried out in the near
future. The project construction period is estimated
as 3 years after the start of the construction. NEA
is also in the process of finalizing the EIA study of
the project, which will provide multifarious benefits
to the local area as well as improve the macro
economy of the area.

Upper Trisuli 3'A' Project Site

Page No. 50

Environmental and Social Studies Department

Environment and Social Study Department (ESSD)
is one of the integral departments of Engineering
Services Business Group. It has been providing all
activities related to the environmental aspects of
all projects, designed, and constructed or operated
by NEA. This department has now developed into
a full-fledged commercial unit of NEA and in close
association with different national and international
consulting companies is now involved in conducting
ElAs,SIAs,IEEs,monitoring and implementing
mitigation measures and environmental auditing of
hydroelectric, transmission line and distribution line
projects.

The department currently has the following works
in hand:

7 The EIA study of Upper Trishuli -3A (Draft
Report Completed)

7 The EIA study of Dumre-Damauli 132 kV T/L
Project (Draft Report Completed)

7 The IEE study of the following cross-border
400kV T/L Project.

- Duhabi — Jogbani (Draft Report Completed)
- Butwal — Sunauli (Draft Report Completed)
- Dhalkebar — Bittamod (TOR Approved)

7 The EIA study of Upper Trishuli -3B (TOR
Approved)

7 The IEE study of Rahughat HEP (TOR
Approved)

7 The EIA study of Galeswar — Modi Substation
(Scoping/TOR draft report completed)

7 The EIA study of Bharatpur - Damauli 220
kV T/L project (Public hearing completed)

7 The EIA study of Marshyangdi-Kathmandu
220kV [7 (On-going)

7 The EIA study of Singati- Lamasangu 132kV
T/L (On-going)

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

7 The Implementation of Environmental
monitoring and mitigation program for the
following projects.

- Chameliya HEP (On-going)
- Khimti-Dhalkebar 220kV project (On-going)
7 Vulnerable Community Development Plan,

Social Impact Assesment and Resettlement
Action Plan (Draft Report Completed)

7 Quarterly Monitoring of air noise and water
quality of Middle Marsyangdi HEP
(Completed)

7 Chitwan — Madi Electrification Project (On-
going)

Soil Rock and Concrete Laboratory

Soil, Rock and Concrete Laboratory (SRCL) 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 level
of studies to various departments of NEA and the
private sector. In the field of soil and rock
engineering, 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.

The following works were undertaken by this
laboratory during the FY 2008/09:

7 Core drilling at Sunkoshi storage cum
diversion scheme in Okhaldhunga District
for Sapta Koshi Multipurpose Project

7 Geological Study of Kabeli Damak
Transmission Line (ongoing).

7 Seismic Refraction Survey of Upper
Marshyangdi Hydroelectric Project for GMR.

Page No. 51

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

7 Core Drilling at Tamakoshi — 2 Hydroelectric
Project for SN Power Holding Singapore Pte.
Ltd.

7 Core Drilling at Misti Knola Hydroelectric

Project for Nepal Mountain Energy.

7 Surface Geological Mapping of Nalsyaugad
Hydroelectric Project in Jajarkot

7 Soil Test for the foundation of the substation
at Syangja
7 Construction Material Survey and Laboratory

Tests of Misti Knhola Hydroelectirc Project for
Nepal Mountain Energy.

7 Construction Material Survey and Laboratory
Tests of Tamakoshi — 2 Hydroelectric Project
for SN Power Holding Singapore Pte. Ltd

(ongoing)

NEA Training Centre

As human resource is one of the most important
ingredients for any organization, its development
is indispensable for the survival and advancement
of the organization. So, investment in training is
treated as a corporate asset of any organization.

For upgrading and enhancing the skill, knowledge
and attitude of human resources, NEA, Training
Center TC has been providing need-based short
terms trainings covering 3 days to 23 days for NEA
employees with an objective to upgrade their
professional knowledge, skills and attitudes of
manpower at operational and managerial levels.

Types of Training

Technical

No. of Participants in On the Job Training
according to Contract with business group
and private hydropower Company (Short-
term courses)

2। No. of Participants in Induction training। 4
for the newly recruited employees in NEA.

Officer

The training programs are designed as per the
Training Needs Assessment (TNA) of an
organization and at the personnel level after
discussions with the management and after the
feedbacks provided by trainees respectively.

These trainings are conducted as per the contract
with corporate and GM office levels of NEA. Since
FY 2007/08, with a view to expand its training
programs for clients outside NEA, upon their request,
TC has conducted various programs to non NEA
staff also. Altogether 50 numbers of trainings were
conducted during the FY 2008/09. The following
table summarizes the training programs conducted
during the FY 2008/09 to meet the needs of different
offices within and outside NEA.

The details of the trainings conducted in the FY
2008/09 are given below

In addition to the employees of NEA, participants
from other business organizations of power
industries such as Chilime Hydropower Limited
(CHPL) and other agencies have also participated
in the training programs.

In addition to regular training programs, NEA Training
Center also conducts different training programs in
the areas of distribution, transmission, generation,
management and information technology upon
request.

In the last 14 years, NEA Training Center has trained
a total of 8,825 employee from the different business
groups within Nepal Electricity Authority and other
organizations as well.

Assistant

- 14: . Non -
Ti Non echnical जा .
echnical echnical।। Total number of Participants [1।

Page No. 52

Electromechanical Design Division

This division handles all of the electromechanical
issues arising within Engineering Services. These
issues range from the design of electromechanical
equipment of projects to the transmission line and
power evacuation studies for private sector projects.
The jobs that have been completed or are currently
being undertaken by this division are as follows.

7 Techno-Feasibility Study for elelctrification
of 13 VDCs of Nawalparasi District.

7 Project Identification and Feasibility Study
for transmission system development.

7 System Study required for power evacuation
of Tama Koshi Sub Basin Projects.

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

oR
So,
a wa
Ss

7 System study required for power evacuation
of Nyadi and Marshyangdi III Hydropower
Projects

Apart from the above mandate, this division also
runs and maintains a central workshop in Hetauda
and manufactures concrete poles from its two
concrete pole manufacturing plants, one in Kotre
and the other one in Amalekhgunj. During the last
fiscal year, a total of 11,017 concrete poles were
manufactured at the Concrete Pole Plant in
Amalekhgunj. Similarly, a total of 1488 concrete
poles were produced from Kotre Pole Plant in
Tanahun. Likewise, approximately one hundred
transformers were repaired at the Central Workshop
in Hetauda.

Project Site of Upper Modi 'A' HEP

Page No. 53

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

NEA's Subsidiary and
Joint Venture Companies

Upper Tamakoshi Hydropower
Limited

Upper Tamakoshi Hydropower Limited(UTKHPL)
was formed as a subsidiary company of NEA on
March 9, 2007 (Falgun 25, 2063) with the primary
aim of developing and managing 456 MW Upper
Tamakoshi Hydroelectric Project (UTKHEP)
utilizing the financial and technical resources
from within the country. NEA is the major
shareholder of the Company with 51% stake.
Employment Provident Fund (EPF) will contribute
20% of the equity. The rest of the equity capital
will be raised from general public (10%), natives
of Dolakha District (10%), NEA staff (6%), and
staff of financial institutions providing debt for
the Project (3%). NEA Board has constituted a
five-member Board of Directors for the Company
on March 12, 2008 (Falgun 29, 2064). The
Company also has plans to develop other
hydropower projects in Nepal.

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 820 m gross

*
a

Upper Tamakoshi Project Site

head, design discharge of 66 m3/s and Installed
capacity of 456 MW. The Project will be
generating about 2,281.2 GWh of energy
annually. The major components of this Project
are an intake, a 22 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.

Project Status

A MoU was signed between NEA and EPF on
January 29, 2008 (Magh 15, 2064) where the
latter pledged to provide NRs. 10 billion as debt
and NRs. 2 billion as debenture totaling NRs. 12
billion for the project. Similarly in another MoU
signed on July 16, 2008 (Shravan 1, 2065)
between NEA and Himalayan Bank Ltd. (HBL),
the lead bank for the consortium of commercial
banks of Nepal, the latter has pledged to provide
NRs. 6 billion as debt for the Project. Likewise,
a MOU between NEA and Citizen Investment
Trust was signed on December 5, 2008 (Mangsir
20, 2065) for a loan investment of NRs. 2 billion.
Discussions are underway with Rastriya Beema
Sansthan to arrange remaining funds required
for the Project. The Project is estimated to cost
USD 441 Million, 70% of which is structured as
debt and the rest as equity.

Detailed engineering design for tender document
preparation of the Project has been completed
in December 2008 (Mangsir / Poush, 2065). In
response to the Company's call for proposals for
pre-qualification of contractors for Civil Works
Lot-1, six international construction companies

Page No. 54

have been prequalified for civil works and five
international consultants have been short listed
for the construction supervision work of the
Project. Invitation for Tender to prequalified
contractors and consultants is underway. At the
project site, construction of the last 28.5 km
stretch of the 68 km long access road and
upgrading of 35 km long Dolakha-Singati section
of access road are underway. Power Purchase
Agreement with NEA is at final stage. Regarding
funding for the project discussion with EPF and
the Banks are underway. Local Construction
Company Himal Hydro has been awarded a
contract for the construction of the 700 m long
access tunnel and the work is in progress.

Chilime Hydropower Company
Limited

Chilime Hydropower Company Limited (CHPCL)
was established in 1996 AD as a subsidiary
company of Nepal Electricity Authority (NEA).
NEA has a 51% stake in this company while the
employees of NEA and CHPCL have a stake of
25% and the remaining 24% of the stake is
intended for the general public. The Company
recently published a notice, inviting the general

Deemed
Energy

Fiscal Year

Kwh

Total Excess Total
Generation Generation Sales

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

public for participation in the 24% of its equity
share. However, the process was suspended due
expressions of disagreement by the local
inhabitants, regarding the allotment of the
shares. It will be continued after a decision has
been received from the Supreme Court regarding
this issue.

With the objective of promoting and utilizing
the national resources from within the country
in the field of hydropower development, the
company successfully commissioned and
commenced its commercial operation of Chilime
Hydropower Project (CHPP) with an installed
capacity of 22.1 MW on August 24, 2003 (Bhadra
8, 2060). Accepted as a model project, it has
been successful in delivering its deemed as well
as excess energy to NEA in its six years of
operation. As a result of this, the Company has
been successful in providing dividends to its
share holders at the rates of 10%, 20%, 35%,
30% and 35% in the last five fiscal years 2003/04,
2004/05, 2005/06, 2006/07 and 2007/08
respectively. The following table shows the status
of the generation and sales scenario since the
date of commissioning of the project on August
24, 2003.

Units (Kwh) Amount

Received
NRs.

2003/ 04 115,198,000 119,831,494 2,263,669 111,412,807 585,837,395
132,795,000 134,309,206 2,646,070 124,486,883

2004 / 05
2005 / 06
2006 / 07
2007 / 08
Total

644,871,810 691,919,209

133,223,644 145,083,730 6,530,200 136,328,395
132,790,000 147,619,730 7,188,325 139,650,818
132,795,000 145,075,049 6,908,035 138,165,844

690,902,201

816,607,088

903,540,792

870,014,527

3,866,902,003

25,536,299 650,044,747

Page No. 55

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Projects in Pipeline

At present, the company has four hydropower
projects, at different level of studies and with a total
installed capacity of 226 MW in the pipe line. Detailed
engineering studies of two of these projects namely,
Sanjen Upper Hydroelectric Project with an installed
capacity of 11 MW and Sanjen Hydroelectric Project
with an installed capacity of 35 MW are in progress.
Activities for the construction of the access road for
these projects have already been initiated. Plans
are currently underway to form a subsidiary company
of Chilime Hydropower Company Limited for the
development of these projects. It is envisaged that
a wider participation of the village development
committee of Rasuwa will be involved in the
formation of the company with the purpose of sharing
the benefits accruing from these projects. Similarly,
the feasibility study of Middle Bhotekoshi
Hydroelectric Project located in Sindhupalchowk
district, with an installed capacity of 80 MW and
Rasuwagadhi Hydroelectric Project with an installed
capacity of 100 MW is also in progress.

Power Transmission Company
Nepal Limited

The need of development of cross-border
transmission lines have been felt for some time as
a link for the export of power from Nepal to India.
With increased interest shown by Indian IPPs to
develop hydropower projects in Nepal in the last
few years, there has been renewed interest to
implement such interconnections. Considering this
fact, NEA and IL&FS has formed a joint venture
company under the name "Power Transmission
Company Nepal Limited (PTCN)" on September
16, 2007 for taking up the development of
transmission projects in Nepal including cross border
transmission links. The investors in PTCN are NEA
(50%), JVC Nepal-IL&FS IDC (26%), and
Banks/IPPs of Nepal (24%). Similarly, "Cross Border
Power Transmission Company Limited (CPTC) has
been incorporated in India on December 19, 2006
to undertaken line construction activities in India.

Under Cross-Border Transmission Line Project,
following three cross border Indo-Nepal Transmission
Interconnections have been _ identified

7 Dhalkebar-Mujaffarpur 400 kV Transmission

Interconnection

7 Duhabi-Purnia 400 kV Transmission
Interconnection

7 Butwal-Gorkhapur 400 kV Transmission
Interconnection

The Dhalkebar (Nepal)-Mujaffarpur (India) 400 kV
Transmission Interconnection consists of about 145
km of transmission line, of which approximately 45
km of transmission line section from Dhalkebar to
Bhittamod near Indo-Nepal border falls under the
Nepalese territory and remaining part of this line
(about 100 km) falls in the Indian territory. The
interconnection would be designed at 400kV Double
Circuit line to be initially charged at 220kV and
would be operated in synchronous mode between
the Nepalese and Indian grids.

The Duhabi-Purnia 400 kV Transmission
Interconnection consists of about 22 km of
transmission line section from Duhabi in Nepal to
Jogbani near Indo-Nepal border in the Nepalese
territory, and 99 km of line in the Indian territory.
NEA has secured the survey license for the project.
An application for construction license has been
filed.

The Butwal-Gorkhapur 400 kV Transmission
Interconnection consists of about 25 km of
transmission line section from Butwal in Nepal to
Sunauli near Indo-Nepal border, and remaining
section of bout 100 km of the line falls in the Indian
territory. NEA has secured the survey license for
the project. An application for construction license
has been filed.

Page No. 56

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Planning, Monitoring and
Information Technology

The Planning, Monitoring and Information
Technology, a corporate office of NEA is headed
by a Deputy Managing Director. This office is
responsible for directing and supervising the activities
of five departments, namely, Power Trade
Department, System Planning Department,
Information Technology Department, Monitoring
Department and Corporate Planning Department.
Each of these departments is headed by a Director.
The activities thus supervised by this office include
power purchase agreements; coordination of cross-
border power exchange and trading; load forecast,
generation and transmission plans, grid impact
studies and periodical monitoring and evaluation of
NEA projects.

Power Trade Department

Power Trade Department is responsible for
coordinating the trading of power both within the
country and across the border as per the policy
and strategies of Nepal Electricity Authority. NEA
has been executing Power Purchase Agreements
(PPAs) with Independent Power Producers (IPPs)

for the purchase of power on long-term basis.
Following the recent announcement of price and
policy incentives, there has been a huge upsurge
in the applications for PPAs. The Department is
working diligently to accommodate the ever
increasing applications for PPAs. As part of the PPA
process, the Department verifies the documents
submitted by the IPPs, reviews the technical as well
as financial aspects of the project, facilitates
execution of the Connection Agreement between
the IPP and the concerned department of NEA,
negotiates and finalizes the PPA for signing by both
parties. Besides the PPA processing, this
Department also plays prominent role in PPA policy
formulation, monitoring and administration of the
PPAs including processing of invoices submitted
by IPPs.

During Fiscal Year 2008/09, this Department has
concluded PPAs for 12 projects with total installed
capacity of 42,983 kW and amended PPAs of 3
projects to accommodate the capacity increase of
these projects by a total of 8,986 kW. Draft
Agreements for 6 new projects and amendment
draft for one project have been prepared by the end
of the Fiscal Year. These PPAs and amendment

Chart 1: Summary of activities of Power Trade Department in FY 2008/09

PPAs concluded।। New Projects (12 projects)

Capacity Upgrading (3 projects)। 51,969 kW।,969 kW

8,986 kW

Draft PPA prepared

New Projects (6 projects) 43,247 kw
Capacity Upgrading (1 project) 100 kW।।
Connection Agreement Concluded।। 293,505 kW

New Projects (22 projects)
Capacity upgrading (1 project)

43,347 kW

Projects under Detail Technical Review (20 projects)

3,210 kW
126,009 kW

Projects under General Review (11 projects)।। 126,300 KW।

Projects with Problems for connections (9 projects)

45,989 kW

Projects under Preliminary Review (10 projects) 96,300 kW

Applications for Upgradation (5 projects)

Total Projects under PPA considerations (87 projects)

1,209,680 kW

Page No. 57

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

are expected to be signed soon. Total number of
PPAs concluded by the end of the FY 2008/09 has
reached 52 which amounts to a total capacity of
286,179 kW. Out of these 52 projects, 19 projects
with total installed capacity of 158,315 kW are already
in operation. Two of these 19 projects, namely, Pati
Khola Small Hydropower Project (996 kW) and
Seti-Il Small Hydropower Project (979 kW), both
located in Kaski district, were commissioned in FY
2008/09. Three more projects with total installed
capacity of 6,491 kW are scheduled to be
commissioned within few months. Out of the 33 IPP
projects yet to be commissioned only 4 projects with
total installed capacity of 12,345 kW are under
construction. The processing of PPA for the Upper
Tamakoshi Hydroelectric Project (456,000 kW) is
being carried out with priority. It is expected that a
Memorandum of Understanding will be signed for
the purchase of power from this project soon. The
Department is processing 87 proposals with total
installed capacity of 1,209,680 kW at present.

Under the cross—border power trading, this
Department deals with agencies in India and
negotiates and finalizes cross border power purchase
and sale arrangements as per the directives of NEA
management. This Department also assists in the
processing as well as settlement of the Invoices
received from PTC India Ltd., the nodal agency
appointed by the Government of India for power
trading with Nepal. Furthermore, coordinating the
activities related to the power exchange with India
is another facet of this Department's responsibility.
Under the Power Exchange Agreement, up to 50
MW power is being imported via Duhabi—Kataiya
132 kV transmission line. In order to mitigate the
sever power crisis, 20 MW power was imported from
India through Tanakpur Delivery Point on commercial
basis. Due to lack of transmission line facilities,
enough power could not be imported to ease the
power crisis. Though, arrangement were completed
on Nepal side, 30 MW power import through Gandak
Delivery Point could not be materialized.

System Planning Department

FY 2008/09 was a defining year for System Planning
Department (SPD) with regard to its new roles and
responsibilities. On December 24, 2008; Government
of Nepal (GoN) declared 35-point National Power
Crisis Mitigation Action Plan to which 3 more

programs were appended on March 3, 2009. Among
various measures, the Mitigation Plan envisaged to
build 29 transmission lines in different parts of the
country. Earlier, GON had announced a plan to add
10 thousand Megawatts by 10 years. On July 13,
2009, the new government made public a plan to
generate 25 thousand Megawatts by 20 years. The
plans and priorities thus already defined, the system
planning functions have to go through a phase of
assessment and adjustment to suit the emerging
environment. The conventional planning process
comprising of indentifying the least cost option out
of the basket of hydropower projects, determining
the needs of new transmission links for the
evacuation of selected generation projects and
identifying the reinforcement requirements of NEA's
transmission network as per the load forecast and
selected generation plan, did have little relevance
in the changed scenario. On the other hand, the
upsurge of requests for the Grid Impact Study, a
mandatory step for all power generation projects
wishing to be connected to the Grid before a
Connection Agreement, conferred Grid Impact
Studies as the major responsibility on the System
Planning Department.

In the year under review, Grid Impact Studies of 9
Projects with a total capacity of 148.6 MW were
accomplished (see Table 1). Furthermore, the
Department also carried out Power Evacuation
Studies of five private power projects with a total
capacity of 786 MW on behalf of the Engineering
Services of NEA (see Table 2). The Department was
also involved in five packages of transmission system
development studies carried out by the Engineering
Services Business Group of NEA (see Chart 1).

Information Technology
Department

The Information Technology Department, in FY
2008/09, took up significant initiatives towards the
expansion of NEA intranet, development of new
software, implementation and roll-out of the software
that were developed in the past years.

To enhance and expand NEA intranet into a country-
wide data network, the Department initiated and
accomplished stringing of fiber optics cable for

Page No. 58

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Lalitpur and Pulchowk Distribution Centers and Saibu-Bhaisepati Sub branch of Distribution and Consumer
Services (DCS). Further initiatives are being taken with the aim to extend its network reach to all the DCS
offices in Lalitpur district which the Department hopes to achieve within next few months.

Initiatives were also taken towards the development of application software, roll-out of tested software

Chart 1 :Project Identification Studies carried out under Engineering Services

Package A Project Identification and Feasibility Study for Transmission System Development

Dhankuta-Tirtire Corridor Transmission Feasibility Study
Marsyangdi Corridor Transmission Line Study

Package D Modi-Butwal Corridor Transmission System Development Study

Package E Kabeli Corridor Transmission System Development Study

Package F Sunkoshi Corridor Transmission System Development Study

Table 1: List of the Projects for which Grid Impact Studies were carried out by System
Planning Dept.

Connection Substation

Bijayapur-1 Small HPP 4.5। Lekhnath

Lower Balephi HPP 20.0। Lamosanghu

Table 2 : List of the Projects for which Power Evacuation Studies were carried out by System
Planning Dept.।Projects 5। Connection Substation

1 Marsyangdi-Ill HPP 34। Middle Marsyangdi
Nyadi HPP 20। Middle Marsyangdi

Tamakoshi 2&3 640। Dhalkebar

Khimti-Il 46। Khimti

७1

Total 786

Page No. 59

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

into newer locations, extension of the NEA Intranet
system, etc. The Department has also conducted
a total of 5 training programs participated by 86
NEA staff on use of the software applications
developed/supported by the Department. Software
developed and supported by the Department was
also updated with additional facilities this year on
the request of the users. These include the
accounting and payroll software.

Software application for Power Trade Department
and Technical Services/Commercial Department
has been completed. Testing, implementation and
roll-out of these software applications are scheduled
for FY 2009/10. Power House Maintenance software
developed and tested in the previous fiscal year
was rolled out to 13 new centers this year. The
Department is also implementing the Customized
Accounting and Inventory System (CAIS) in
additional NEA offices. So far, CAIS has been
implemented in 129 locations of NEA.

Enhancing telecommunication system was another
task taken up by the Department in the fiscal year
under review. The public service telephone system
(PSTN) lines within NEA complex were replaced
with telephone lines from Optical Network Unit
provided by Nepal Telecom. This will cater to the

NEA Board Matters

increasing communication needs of NEA.

NEA intranet site www.nea.org was refurbished this
fiscal year with improved interface updates and
inclusion of various utilities. NEA intranet site now
includes important facilities like telephone inquiry
system, library, book inquiry system, document
dispatch system, complain management system
and so forth. Most of the information about NEA
activities can be downloaded from the NEA website:
and NEA intranet site www.nea.org.

Corporate Planning Department

Corporate Planning Department undertakes various
tasks involving plans and programs at corporate
level. The Department assists the National Planning
Commission and ministry of Finance in the
preparation of Annual Budget and programs by
providing data related to projects undertaken by
NEA. Besides, the Department also provides data
input for studies undertaken by various organizations
on topics related to NEA and provides necessary
support to NEA management. This Department also
assists in obtaining new licenses and any extension
there of as required for development of power
projects.

MThe Board of Directors of NEA has been recently reconstituted. Dr. Prakash Sharan Mahat,
Honorable Minister, Ministry of Energy became the Chairman of Board of Directors of NEA since
July 1, 2009. Likewise, Mr. Shankar Prasad Koirala, Secretary, Ministry of Energy continued as
Board Member. Similarly, Mr. Lekha Man Singh Bhandari and Mr. Ananda Raj Batas were re-

appointed as Board Members by the Government of Nepal on August 4, 2009. Also, Dr. Jivendra
Jha has been appointed to the post of Managing Director on July 29, 2009 and he also serves as
the Member Secretary of the Board.

During the year in review, altogether, twenty-three board meetings were convened. Various by-laws
relating to personnel, financial & consumer management were amended to impart greater degree
of efficiency and effectiveness on the functioning of NEA.

Page No. 60

Administration

Administration wing of NEA is responsible for
management of human resources of NEA. Besides
human resource management, Administration wing
is also responsible for logistic support, legal advice
and arbitration, property management, security
arrangement of central office and promotion of
public relations functions. Timely amendment of
the Personnel Administration Regulation of NEA
also falls under the purview of this wing. This office
is headed by a Deputy Managing Director and
supported by three departments, namely, Human
Resources Department, General Services
Department and Legal & Grievance Handling
Department.

Human Resources Department

This Department is responsible for executing
manpower planning, recruitment, employees training
and development, employees record keeping,
disciplinary actions, implementation of staff welfare
activities and other human resource related
functions.

At the end of FY 2008/09, there are 10,314 approved
positions and a total of 9,280 staff employed in
NEA. During the year under review, 5 Directors
were promoted to General Manager/Deputy
Managing Director level based on performance
evaluations. Similarly, 120 Officers and 190
Assistants were promoted to higher levels in the
fiscal year. The Department also carried out internal
competition to promote 5 Officers and 105 Assitants
to higher levels. Moreover, 5 Officers and 59
Assistants were promoted under 12 year time-bound
promotion scheme. NEA organizational structure
and approved staff positions were also revised in
the FY which came into effect from April 12, 2009.
In order to keep the NEA regulations in tune with
requirement the changing time, amendments were
made to various NEA regulations. Accordingly,
Personnel Administration Regulation-2006, Travel

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Allowance Daily Allowance Regulation-2009 and
NEA Personnel Code of Conduct were amended
and implemented in the FY 2008/09.

As part of human resource development activities,
arrangements were made for a total of 278 NEA
staff to participate in trainings, seminars, workshops,
conferences, and study and inspection tours in
Fiscal Year 2008/09. Similarly, 170 officer level and
539 assistant level staff were given training in NEA
Training Center. As part of the program to familiarize
newly recruited staff on various aspects of NEA
functions, induction trainings were organized for
298 newly recruited employees of NEA.

As part of staff welfare activities, financial supports
were provided to 10 employees for causes like
cancer treatment, kidney transplant, cardiac surgery
and treatment of other serious illnesses. Similarly,
under the staff welfare loan, a total sum of Rs.
6,04,00,000 were disbursed as loan to 456 staff for
purchase, construction and maintenance of
house/land, social events and so forth. In FY
2008/09, 189 staff were retired, 16 staff took
voluntary retirement, 27 staff resigned and 36 staff
passed away. In different accident cases in course
of duty, 30 staff were injured and 4 staff passed
away.

NEA has been providing conducive environment
for their staff to develop and excel in sport activities.
This policy yeilded a plethora of medals in the sports
fete organized by the Public Enterprises Sports
Development Association in June 30—July 5, 2009.
NEA was succesful in bagging the running shield
as team champion. Moreover, NEA staff were also
succeessful in bagging 8 gold medals, 10 silver
medals and 7 bronze medals in the sports event
thus making the year an eventful and satisfing year
sportwise.

Page No. 61

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Employees Status FY 2008/09 (July 15, 2009)

Approved Position

Managing Director

GM/DMD (Level -12)
Officer Level

(Level 6 - 11)
Assistant Level
(Level 1-5)

120.00

1.00

=

संग. एनी

60.00

Sumber of Emp! In Hunde)

Existing Situation

Fiscal शाहा

General Services Department

General Services Department is entrusted with the
responsibility of vehicle management, repair &
maintenance works of NEA buildings, property
management, logistic support for corporate offices
and security management of NEA offices. This
Department also deals with trade unions of NEA.
It also deals with the Media, organizes press
conferences and various ceremonial activities. This
Department also publishes "Vidhyut" magazine
every six month.

Legal and Grievance Handling
Department

Legal and Grievance Handling Department deals
with all legal matters and cases of NEA. In FY
2008/09, in total 122 cases were registered in
different courts and arbitration tribunals out of which
the courts have given their verdict in favour of NEA
in 17 cases and against NEA in 5 cases. One case
was withdrawn by the concerned party and another
one was settled through amicable settlement. At
present, 98 cases are sub judice and being defended
by NEA in different courts.

Page No.

62

oe क

Nepal Electricity Authority

Nay,
4 छ,
कनत छ A Year in Reviw, Fiscal Year 2008/09

Internal Audit

Internal Audit is headed by the Deputy Managing Director (DMD). The Deputy Managing Director is
supported by a Director and four Divisions namely, Financial Audit Division, Energy Audit Division, Technical
Audit Division and Management Audit Division. In addition, there are four regional centers responsible for
the audit of offices falling under respective jurisdiction: (i) Mid- north Centre Kathmandu, (ii) Mid-south
Centre Hetauda, (iii) Eastern Centre Biratnagar, (iv) Western Centre Butwal, (v) Mid and Far West Centre
Nepalgunj.

Internal Audit is responsible for carrying out the function of internal control using the tools of audit observation.
It performs auditing of various budget centers as per its annual plan covering the areas of revenue,
expenditure and project accounting. It also audits technical affairs, energy balance and management
activities conducted by the various business groups. As part of its control function, it discloses non-
compliance to the rules and regulations, the circulars and directives issued by the corporate office from
time to time by the concerned budget centers. It also brings to the notice of the Managing Director the
audit issues and its recommendations for appropriate rectification and reforms in the rules and regulations.

Activities of Internal Audit with respect to financial audit coverage during FY 2008/09 are listed below:

Total Number of Audit Coverage Annual Audit
Budget Centers। Within 2066 Asadh Completion Target

Distribution Center-8 Sept. 16, 2009
Others - 3
Distribution Center- Sept. 16, 2009
Others - 14
छ -
5

Regional Office

Mid North
Mid South

शु।Western Distribution Center- Sept. 16, 2009
Others -
Distribution Center-
Mid & Far Western Others - 14 Sept. 16, 2009

Financial audit was carried out in 102 budget centers out of total 148 budget centers.

open
Others -

Regarding the technical audit only 7 budget centers were covered in this fiscal year. Non-availablity of
adequate human resource significantly constrained the coverage of technical audit function.

To enhance the professional skill for internal audit officers, intensive training program was conducted in
association with Indian Cost and Works Accountants Association (ICWA) in Calcutta and Gantok from
14-22 April 2009. Altogether 24 officers participated in the training program.

Page No. 63

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Finance

The Corporate Finance is headed by the Deputy
Managing Director, and is responsible for the overall
finance and accounting functions. It is supported
by the Corporate Finance Department and Finance
& Accounts Department, each headed by a Director.

Corporate Financial Performance

FY 2008/09 has been a mixed year in terms of
achievements and challenges facing NEA
businesses. Despite financial difficulties, NEA has
been able to commission the long awaited 70 MW
Middle Marsyangdi Hydroelectric Project (MMHEP)
in this financial year. NEA was also able to manage
the required funds for Chameliya (30 MW) and
Kulekhnai-3 (14 MW), which are planned to be
commissioned by FY 2010/11. Similarly, required
funds for Upper Trishuli-3A (GOMW) Rahughat (30
MW) have been mobilized. Furthermore, Upper
Tamkoshi Hydro Electric Project (456 MW) promoted
by NEA along the PPP modality has entered into
construction phase and is planned to be
commissioned by FY 2013/14. The financing for
this project is provided by the Employment Provident
fund, Citizen Investment Trust, Rastriya Bima
Sansthan and a Consortium of Banks with
Himalayan Bank as Lead Bank.

Notwithstanding these achievements in fund
mobilization and investment for the generation
capacity augmentation, it has not been a good year
for NEA in terms of realization of targeted sales.
Against 17 percent of target sales growth, NEA
experienced for the first time in its sales history a
negative sales growth in FY 2008/09. However,
even with the negative sales growth, NEA
experienced a marginal revenue growth by 0.69 %.
In FY 2008/09, total sales is 2,308.91 GWh, which
is equivalent to 84.90 % of the target, less than 0.06
% in comparison to the sales of 2,310.32 GWh in
FY 2007/08. In the period under review (FY 2008/09)
the total internal sales grew marginally by 0.45 %,
whereas export to India decreased by more than
19.15 % in comparison to the last review period In
FY 2008/09, total internal sales and export stood

at 2,260.32 GWh and 48.59 GWh respectively.

Revenue from internal sales (net) and export
amounted to NRs. 14,870.41 million and NRs.350.45
million respectively in the year under review. The
increase in gross internal sales revenue of less than
1 % was recorded whereas the export revenue
declined by less than 3 % in the same period.
Strikes, bandhs and unrest in Terai as well as in
other parts of Nepal not only restricted mobility
leading to lapses in theft control, meter reading and
maintenance etc. but also resulted in decrease in
energy sales, particularly in industrial and non-
commercial consumer categories. As a result, overall
sales income was only NRs. 15,499.37 million,
against the target of NRs.18,234.55 million in FY
2008/09. This is a marginal increase by less than
1 % in comparison to sales of NRs. 15,391.97 million
in FY 2007/08. Net sales revenue was NRs.
15,220.87 million after rebate amount of NRs. 278.50
million. This rebate amount is 1.80% of the sales
revenue which is little less in comparison to FY
2007/08 (2.28 %). As a result, increase in net sales
revenue for the review period is slightly higher (1.19
%) in comparison to the same period last year.

Income from other services such as surcharge
dividend, lease rent, interest, sales of goods etc. is
estimated at NRs. 992 million, an increase of 6.11
% as compared to FY 2007/08. Income from other
services contributed to 6.12 % to total income in
FY 2008/09. Total revenue inclusive of income from
other sources for FY 2008/09 amounted to NRs.
16,212.65 million, showing an increase of 1.48 %
over preceding year's income.

In NEA's total operating expenditure, an increase
of 12.95 % is observed in FY 2008/09 in comparison
to FY 2007/08 and stood at NRs.16,184.19. Of the
total expenditure, NEA spent NRs. 2,665.79 million
in staff cost in FY 2008/09 which is less by 5.20 %
in comparison to budget figure. Staff cost is
equivalent to 16.47 % of the total operating
expenditure and 16.44 % of the total income. The
corresponding figures were 14.64 % and 13.31 %

Page No.

64

in FY 2007/08. Reason behind this increase in staff
cost is attributable to a raise in staff salary in FY
2008/09. Operation and maintenance expenses
stood at NRs. 1,117.35 million in FY 2008/09, which
is around 6.90 % of total operating expenditure.
There has been a saving of 26.39 % in comparison
to budget figure. Saving in operation and
maintenance cost in comparison to budget is resulted
mainly due to non procurement of spare parts for
diesel and multi-fuel plants.

Depreciation, royalty, provisions and administrative
expenditure amounted to NRs. 2,231.40, NRs.
811.70, NRs. 110.00 and NRs. 730.43 million
respectively.

Power purchase expense is the largest component
of the total expenditure and is equivalent to 52.05
% of total operating expenditure and 51.95 % of
total income. The figure for power purchase
expenses amounted to NRs. 8,423.09 million for
FY 2008/09. Notwithstanding the decrease in energy
purchase by 7.33% in comparison to FY 2007/08,
there has been increase of 13.26 % in power
purchase expenses. As a result, there has been
more than 22.35% increase in average power
purchase rate (from NRs. 5.37/ kWh in FY 2007/08
to NRs. 6.57/kWh in 2008/09).

Interest on long term loan is second largest
expenditure amounting to NRs. 2,809.46 million in
FY 2008/09. There is 23.53 % increase of interest
cost over the last year's figure. Interest on Power
Bond and Middle Marsyangdi HEP has resulted in
an increase in interest cost for this year in comparison
to last year figure.

In FY 2008/09 NEA recorded operating surplus of
NRs. 28.46 million as against NRs. 1647.65 million
in FY 2007/08. Increased cost of power purchase
and other expenses are the reasons behind the
decrease in operating surplus. In FY 2008/09, NRs.
980 million was written off in respect of municipalities'
street light dues after receiving an equal amount as
the full settlement from GoN. Translation loss on
foreign exchange loan in Japanese Yen for Kulekhani
Disaster Prevention Project further added a burden
of NRs. 800.24 million in F/Y 2008/09. Consequently,
NEA suffered a net loss of NRs. 4,681.24 million

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

(previous year NRs. 961.47) and accumulated loss
reached NRs. 12,332.67 million at the end of FY
2008/09.

The realized average revenue rate after rebate of
NRs. 6.59 per kWh was marginally higher in
comparison to FY 2007/08 figure. Cost of service
for providing electricity to consumers which increased
by 23.46 % and reached NRs. 9.05 per kWh ( NRs.
7.33 in FY 2007/09), is the primary reason for
financial losses to NEA. The last tariff adjustment
was made in FY 2001/02. It is evident that tariff
adjustment is a must for financial sustainability of
NEA.

At the end of the FY 2008/09, total assets was
valued at NRs. 80,377.50 million, an increase of
NRs. 5,831.48 million (7.82%) as compared to
previous years figure. In FY 2008/09, NRs. 28,950.00
million worth of capital expenditure spent in the
completed projects was capitalized of which NRs.
25,950.00 million was from recently completed 70
MW Middle Maryangdi Hydro Electric Project
(MMHEP). At the end of FY 2008/09, net property,
plant and equipment valued at historical cost
reached NRs. 78,678.89 million of which NRs.
3,663.70 million was received as Government equity,
NRs. 6,628.00 million through GoN loan and NRs.
3,021.70 million was born by NEA during the review
period. At the end of FY 2008/09, construction
expenditure in ongoing projects stood at NRs.
18,054.38 million.

NEA's total borrowing stood at NRs.58, 217.77
million as of end of FY 2008/09. In FY 2008/09,
NEA paid NRs. 485.78 million for interest, NRs.
586.63 million for royalty and NRs. 579.31 million
for repayment of loan to government.

There is a small improvement in collection rate in
the review period in comparison to last year. Revenue
collection in FY 2008/09 was about 92 % of the total
sales as against 88 % in FY 2007/08. Dues with
Municipalities have been cleared up to end of FY
2008/09 by writing off 50 % of the dues and rest
being collected through Ministry of Local
Development. However, dues of street light of
different VDCs amounting to NRs.897.00 million is
yet to be settled. Similarly, the public sector dues

Page No. 65

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

still remain a serious problem in revenue collection.
The receivable balances from VDCs, government
offices and public institutions stood at approximately
NRs. 487.20 million at the end of FY 2008/09. This
is about 29.04 % of total receivables of NRs.
4,765.88 million. Hence the total receivables stood
at 3.74 months of total sales.

NEA has initiated promoting various subsidiary and
joint venture companies relating to generation and
transmission business. Chilime Hydro Power
Company Limited (CHPCL), already in commercial
operation, and Upper Tamakoshi Hydropower
Limited (UTKHPL), under construction, have been
incorporated as subsidiary companies of NEA.
Similarly, Power Transmission Company Nepal
Limited (PTCN) was promoted as a joint venture
company of NEA and IL & FS for taking up the
development of transmission projects in Nepal
including the cross boarder transmission links. A
total of NRs. 1,363.01 has been invested in CHPL
(14२5. 489.60 million) UTKHPL (NRs. 870.91 million)
and PTCN (NRs. 2.5 million) till the end of FY
2008/09. Other investments of NEA include equity
investment in Nepal Engineering Consultancy (NRs.
2.28 million), Knumbu Bijuli Co (NRs. 20.65 million),
Salleri Chaylsa Hydro Electric Company (NRs.
11.63 million) and Butwal Power Company (Rs 8.86
million). In addition to this NRs 466.25 million was
invested in Citizen Investment Trust (CIT) towards
gratuity and pension liabilities up to FY 2008/09.

In the context of the financial losses in successive
years and difficult cash flow situation, NEA faceed
daunting task of managing huge budget deficit in
FY 2008/09. However, in comparison to the
proposed deficit budget of NRs. 4,383 million, NEA
managed to bring down the deficit substantially. A
budgetary support of NRs. 1,000 million for rural
electrification by the Government of Nepal and
receipt of payment against Municipalities dues for
electricity sales of NRs. 980 million eased to a larger
extent the task of managing the cash flow.
Furthermore, NEA borrowed short term loan of NRs.
1,000 million from different commercial banks with
interest rate ranging from 7.25 % to 7.75 % per
annum.

Assessment of financial performance against the

challenging task of improving supply situation for
the excising customers and for population without
access to electricity suggest that NEA needs to put
in serious efforts to enhance efficiency in financial
management and business practices. In this context,
various initiatives have been taken for the
improvement of financial health of NEA.

As a result of persistent request from NEA, GoN
has revised the on lending interest rate from 10.25
% to 8.0 % and a new royalty calculation procedure
has been established. This has resulted into a
positive and a long term impact on financial health
of NEA. Further GoN has agreed to make a due
diligence study on financial health of NEA, review
its existing capital structure and its impact on NEA's
financial performance and explore an alternative
financial restructuring plan. A separate committee
has been formed by GON in this regard in 2008/09,
the recommendation of which is expected to come
shortly.

The audit for the FY 2007/08 was carried out by
the Office of the Auditor General in FY 2008/09.
The Audit Report was made available to Donors as
per the loan agreement. Similarly, Income Tax
Return of the Income Year 2007/08 was filed with
the concerned Authority under self assessment
procedure. In FY 2008/09, due diligence audit of
NEA was conducted by an independent professional
in order to provide comfort to Upper Tamakoshi
Hydro Power Limited's to the principal lender,
Employees' Provident Fund.

During FY 2008/09, a Short Term Financial
Improvement Action Plan, based on audit
observation report of the previous years, was drawn
and circulated to all business groups as well as to
different units of corporate level for implementation.
Notable achievements on various issues were
recorded in FY 2008/09. Likewise, NEA board has
issued a number of instructions to be implemented
immediately for improving the overall performance
of NEA.

NEA has different post employment benefit schemes.
At present, the future liability in respect of gratuity,
pension and accumulated leave is provided on
estimated basis which is inconsistent with NAS/IAS.

Page No. 66

In FY 2008/09, employees' personal data collection
and updating work for actuarial valuation was
completed. Procurement of consultancy service of
actuarial professional has been initiated.

For the proper management of gratuity fund, a by
law "Gratuity Fund Management and Operation
Procedure 2008" was approved by NEA Board of
Directors and a separate division under
Administration has already been formed in order
to manage the fund.

In the FY 2008/09, Pending audit remarks of NRs.
14.51 million, out of NRs. 35.37 million, was settled

for the period FY 1973/74 to FY1993/94 fulfilling
the target fixed by the GoN.

NEA management has also perceived the need for
improvement in the financial management system
and accounting practice for strengthening financial
accounting and financial management decision
support system to enhance financial performance
of NEA. Accordingly, NEA has developed Oracle
based Customized Accounting and Inventory

J :
.
२, oa \ *
क
७, छ
: र
. . छ गी

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

System (CAIS), which is considered as a remarkable
step in the computerization of accounts. The
implementation of the CAIS is well underway; out
of 147 accounting units, 119 units are using CAIS.
This includes 96 accounting units using the inventory
module. NEA is planning to adopt full automation
in the near future by introducing new financial
accounting system in ERP platform under the
financial assistance of International Development
Association to be implemented under Institutional
strengthening Project.

A Technical Assistance (TA) has been approved by
the World Bank to implement the strategy and road
map to bring about desired changes in system and
practices in financial management that includes
strengthening its accounting system and internal
audit system as recommended in a recent study
under first phase of NEA Institutional Strengthening
Project. Accounting framework reform and design,
development, procurement, installation and rolling
out of a new Financial Accounting System (FAS)
along with required capacity building program will
be implemented under this TA.

NEA Team Receiving Intercorporation Championship Trophy Awarded by Rt.

Honorable Youth and Sports Minister, Ganesh Tiwari Nepali

Page No. 67

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Nepal Electricity Authority
Highlights of FY 2008/09

(NRs. in million)

DESCRIPTION 2008। Percent।
a। 16,212.65 15,976.15] 236.50] 1.48।
ु ee ee ee। 12.95।__(1,619.19)
es। 6.66.

Net System Losses (Percentage) 25.27 26.52 (1.25) (4.71)

Note:

* Provisional figures; Subject to final audit.
+ On Internal sales.

++ On total purchase

Page No. 68

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Page No. 69

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Page No. 70

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Accounting Policies

1. Basis of preparation of
Financial Statements

The financial statements have been prepared on
the basis of historical cost convention in accordance
with the generally accepted accounting principles.

The financial statements comply with Nepal
Accounting Standards (NAS) and presentational
requirement of the Companies Act 2063.

2. Revenue from Sale of Electricity

(i) Revenue from sale of electricity is recognized
at the time of raising of bills on the customers
as per the billing cycle. Revenue from the
billing cycle date up to 31 Ashad (15 July)
has been accrued taking average rate.
Revenue from sale of electricity is shown net
of rebate.

(ii) Rebate and surcharge for delayed payments
are accounted on cash basis.

3. Income from Other Services

(i) Interest on investments and lease rent are
recognized on accrual basis.

(ii) Dividend on investment in shares is
recognized when received.

(iii)। Revenue from other services is recognized
on cash basis.

(iv) Revenue from services provided by
Engineering Services are accounted for on
cash basis on the completion of the relevant
job.

4. Property, Plant and Equipment

Property plant and equipment are stated at cost of
acquisition or cost of construction less accumulated
depreciation. The cost of acquisition, construction/
erection include interest on loans related to the

period of construction/erection up to the date of
completion of the project, along with other incidental
costs and charges attributable to bringing the asset
to its working condition for its intended use. The
incidental costs include proportionate overheads
relating to the following offices at the rates given
below:

(a) Planning 50%

(0) Distribution and Consumer 10%

(c) Engineering 50%

(d)। Finance and Administration 10%

5. Foreign Currency Loans

Liabilities on foreign currency loans which remained
unpaid at the year end are converted at the year
end exchange rates. The profit/loss arising there
from is recognized as income or expenses in the
Income Statement.

6. Contribution from Customer/
Local Authority

Contribution from customer or local authorities for
property plant and equipment are shown as capital
reserve. An amount as depreciation of the
contributed amount for the respective assets is
charged on capital reserve.

7. Investments in Shares

Investment in the shares of subsidiary and other
companies held for long term are stated at cost.

8. Depreciation

Depreciation is provided on all categories of property,
plant and equipment on straight line basis which
reflects the estimated useful lives of the assets.

The rate of depreciation on property, plant and
equipment is as follows

Page No. 71

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Historical Cost
Basis। 8. 14. - 1.

कमा
[० ]
[5]
=

17। Additions during the year At applicable rates
for half year

financial year in which the services are rendered
by the employees. NEA's contributions to provident। डक sets

9. Inventories

Inventories are valued at cost, using the weighted
average method.

10. Accounts Receivable

Accounts receivable are stated at book values, less
provision as may be considered appropriate by
the management.

11. Deferred Revenue Expenditure
Certain expenditure incurred on training,
investigation, survey, software development,
feasibility studies of infrastructure projects and
major overhauling etc. which are expected to
generate benefits over a period of time, are treated
as deferred revenue expenditures and written off
over a period of five years, including the year in
which the said expenditures are incurred.

12. Employees Benefits

Salary, wages, allowances, overtime, paid annual
leave and electricity facility are accrued in the

fund are charged to income statement. The provision
for Pension and Gratuity is created by 15 % of
annual salary less actual amount paid during the
year. If any amount appears short fall, then additional
provision is made. Liability on account of
accumulated home and sick leave has been
provided for on an estimated basis to cover the
liability. Liability on account of medical
reimbursement continues to be accounted for on
cash basis.

13. Insurance Fund

Insurance fund is created by setting aside a sum
of Rs. 20 million every year irrespective of profit/loss
for the year to cover any loss of property, plant and
equipment, in case of any eventuality.

14. Prior year's figures/ Regrouping

Previous year's figures have been reclassified/
regrouped, where necessary, to make them
comparable with current year's figures.

Page No. 72

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Tariff Rates
(Billing Effective since Septermber 17, 2001)

4:। :
Minimum Charge (NRs.)। Exempt (kWh)
20
50
200
400
a।
का
का
का।।।।।।

कामा
कामा
विग काडा
[fa
Tel
विउ म म
कामा
[COMMUNITY WHOLESALE CONSUMER पा

a
(Rs./kVA) (Rs./unit)

परम्परा]

a
rt
fe
a
[त
काडा
लि
fe
a
खि नका
a
fe
=

Page No. 73

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

IRRIGATION

9:। :
[ [A [Low voltage oomsovey लि
TB [Medium Votage(Mk) [SS
ps
WATER SUPPLY es ee
Pp।B [Medium Voltage (11KV)।।

Pp .

PF
ps
pO

180.00

Medium Voltage (33 kV) 150.00।। A।Medium Voltage (11 kV)।। B।Medium Voltage (33 kV)

TIME OF DAY (TOD) TARIFF RATES

Consumer Category & Energy Charge (Rs./unit)

Pt। Supply Level Charge (Rs./kVA) Off-Peak Normal

18:00-23:00। 23:00-6:00
A:।High Voltage (66kVandAbove)।।।। 1। Industrial 175.00 5.20 3.15

oO)
©
८)
—_
oe)
०
©

4.55

a

छ:।Medium Voltage (33 kV) Po।

Te 426
=

a) If demand meter reads kilowatts (kW) then kVA = kW/0.8
b) 10% discount in the total bill amount will be given to the Government of Nepal approved Industrial District

८) 25% discount in the total bill amount will be given to the Nepal Government Hospital and Health Centers (except
residential complex)

Page No. 74

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Statistics, Schematics and Maps

AVAILABILITY FY 2008/09 UTILIZATION FY 2008/09
हा 72.20%

छ 58.76%
oO 29.57%

आना 1.55%
1 11.39% हा 0.29% 0 0.98% o_o

25.27%

mHydro mThermal OPurchase India O Purchase Nepal Internal Sale MExport OSystemLoss O Self Consumption

SALES FY 2008/09 REVENUE FY 2008/09

2.10% 6.91% 2.26% 5.47%
. (s) . 0

41.87%

37.37 of

6.78% 4.31% छ Domestic # Non-Commercial

छ Domestic Non-Commercial 0 Commercial O Commercial O Industrial

O Industrial Export O Others छ Export O Others

EXPENDITURE FY 2008/09
3.83% 16.03% NO. OF CONSUMERS

mw 12.76%

4 1 0.44% Te
03.88% Oo 1.71% m Domestic

हा 10.68% mw 1.75%। G Commercial
g Others
m@ Non-Commercial

O Industrial
[1 13.45%

—" 40.31%

@ Staff Cost @ Depreciation

हा Power Purchase O Royalty

O Operation & Maintenance —™ Foreign Exchange Translation Loss हा 95.48%
O Interest O Others।

Page No. 75

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Total Energy Available
& Peak Demand

3500 900
3000 800
700
2500
600
2000 500
<=
= 1500 400 =
6 =
300
1000
200
500 100
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
FISCAL YEAR
CI Available Energy C1 1. NEA Hydro C1] 2. NEA Thermal
ME Nepal (IPP) 1 India (Purchase) —?— Peak Demand (MW)
Particulars। 2000।। 2001। 2002। 2003। } 2004।। 2005। 2006 2007। 2008 2009*

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

Page No.

76

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

1,800,000
1,600,000
_ 1,400,000
= 4,200,000
5 1,000,000
8 800,000
9 600,000
— 400,000
200,000
/ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009"
FISCAL YEAR
[] Domestic mg Grand Total [] Others
Particulars। 2000।। 2001।। 2002।। 2003। 2004।। 2005।। 2006। 2007। 2008 2009*

हु

Note : * Provisional figures; subject to final audit.

Page No. 77

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Electricity Sales

2500.00

2000.00
1500.00
1000.00

(A।।
aaa ॥ ॥ ॥ ॥॥
Ati।]!।।।।
० sth Uh te te Uh dh।।।

500.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009"

Energy (In
GWh)

FISCAL YEAR
mw Domestic jlindustrial (। Grand Total [1 Others

(in GWh)

931.35
109.93
154.38
901.09
46.86
70.26

467.05 518.36 557.94 805.72 893.27

617.11 758.19
80.74 100.54
92.74 109.31

629.51 764.00
29.98 49.98
45.80 54.86

Non-Commercial 63.59 73.16 78.22 95.29 100.52

Commercial 81.82 94.17 90.43 120.30 141.69

508.36 520.63 596.68 785.55 849.13

15.74 28.60 29.28 45.50 47.96

31.74 36.98 39.52 63.24 66.90

0.93 0.83 2

=

2

A

alto

5। ०
जप

6 0.70
2.68 5.89 6.31 5.88
Temple 2.37 2.51 4 8 5.12

>
N
न
के

7

डि

8 0.35 0.39
.64 5.53 5.80
8 2.81 4.58
2 4.74 6.03

Community Sales

on

7 9.18 15.51

1174.27

1504.57। 1654.00। 1853.69
192.25 141.23 110.70
1696.82। 1795.23। 1964.39

1281.13} 1400.46

2250.22। 2260.32
60.10 48.59
2308.91

1936.07] 2127.33

Bulk Supply (India) 95.00 126.00 133.86 96.55 76.87

Industrial

Water Supply & Irrigation
Street Light

Temporary Supply

Total (Internal Sales)
Grand Total

1269.27। 1407.13] 1534.32

Note : * Provisional figures; subject to final audit.

Page No. 78

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Revenue

18000.00

छो 12000.00

[

5००० a el el।
ee TPE LEE।
4000.00 Ad

AO

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

FISCAL YEAR

[] Domestic O Industrial O Total Revenue Others

(in million NRs)
Category
Domestic 2622.03। 3161.38] 3641.43] 4249.81] 4701.07] 4987.04] 5405.12। 6021.40। 6297.65] 6489.29

Non-Commercial 527.40} 835.78] 722.12] 783.99 816.03 862.37 881.73} 940.20 982.08 944.02

a
[साम
[नसम माण Tazaor Yar a रु sree] ताका

Note : * Provisional figures; subject to final audit.

Page No. 79

Energy(GWh)

20,000.00

18,000.00
16,000.00
14,000.00
12,000.00
10,000.00
8,000.00
6,000.00
4,000.00

2,000.00
0.00

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Load Forecast

९०२ भ२ ९०२ भ२ Yr A] ९०२ भ२ Yr A] Yr A] Yr A] Yr A] Yr A]
८ ८) lan) ८) ८) ८) lan) ८) ८) ८) ८) [० fan] [० fan] [० fan] [०
oO => = = = = > = > = > wp p wp p yp yp Ww
eo F RP OCF FFP क ee Pe र ZF O
नल _ = —_ _ _ _ _ _ _
८ > w oo > n o>) " o Xe) 3 2 8 'ठे रे 'छ 3 २
Fiscal Year

Me Energy (GWh) —@— System Peak Load (MW)

2026-27 16142.7 3418.9
2027-28 17403.6 3679.1

gee

4,200.00

3,600.00

3,000.00

2,400.00

1,800.00

1,200.00

600.00

0.00

Peak Load (MW)

Page No. 80

भै Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

Aepsen। (५90८ '2 ube) 6002 'oz "पट?
4123), ०५) 5० Aeg ४०० JO SAIND peo wisa}shs

agsagegen?

दा
PiPt

REBEL ERE ErboL i teen tt td

AALAL

Page No. 81

Nepal Electricity Authority

A Year in Reviw, Fiscal Year 2008/09

System Load Curve of Typical Dry Season
March 8, 2009 (Falgun 25, 2065), Sunday

SRE ARRRIRERET AS TPIS PETS ARRRZAREETS

MA

ब83254-

६...

T

BEY

et

1"

Wa

10

Hours

Page No. 82

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83

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Page No. 84

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Page No. 85

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Page No. 86