Complimentary Copy

Message from the Chairperson 2
Board of Directors 3
Corporate structure of NEA 4
Deputy Managing Directors 5
Managing Director's Report 6
Generation Directorate 12
Transmission Directorate 25
Distribution and Consumer Services Directorate 35
Planning, Monitoring and Information Technology Directorate 53
Engineering Services Directorate 57
NEA's Subsidiary & Associate Companies 70
Central Activities 77
Administration Directorate 79
Finance Directorate 81
Highlights of FY 2013/2014 84
Balance Sheet as of July 16, 2014 85
Income Statement for FY ending July 16, 2014 86
Significant Accounting Policies 87
Tariff Rates 90
Statistics, Schematics and Maps 93-108

Front Cover Photo: PowerHouse area of Chameliya Hydroelectric Project
Back Cover Photo: Dam of Chameliya Hydroelectric Project.

NEPAL ELECTRICITY AUTHORITY

Email: neamd@hos.com.np
Website: www.nea.org.np

Head Office: Durbar Marg, Kathmandu, Nepal
Phone: +977-1-4153007/4153013, Fax: +977-1-4153009

A YEAR IN REVIEW-

Message from Chairperson

It makes me really happy while expressing my thoughts as Nepal Electricity Authority (NEA)'s Chairperson on the
occasion of its 29th anniversary.। want to convey my best wishes to all the employees of NEA and its consumers
alike on this jubilant day.

As a predominant player in the country's power sector, NEA has a crucial role to play to provide adequate and reliable
electricity services to its consumers at an affordable price. Although with the introduction of Nepal Electricity Act,
1992, the country opened its power sector for private sector investment, and accordingly, a number of independent
generation companies have added capacity of the Integrated Nepal Power System since then, NEA, being the sole
state owned power utility, has a special position in country's power sector. In fact, sustenance of IPPs depends on
NEA's health. Apart from energizing industries and other economic operations, NEA also serves as a medium in order
for the Government to meet its obligations of equitable supply of electricity to as many consumers as possible by way
of mainly rural electrification.

Today, everyone of us involving in power sector is not in a comfortable position. Persistent load-shedding is really
a bugbear. Although the problem might not have been solely due to our doings, It is now our responsibility to get
rid of it. Whatever comes on our way, we must gird our loins to face it. The Ministry of Energy is preparing to
establish a national Transmission Grid entity in order to prepare a non-discriminate highway for all power producers.
Establishment of a power trading company may also be required soon in order to smoothen the process of power
trading including the trading through long-term power purchase agreements.

It has become almost certain that in a monsoon-hydro dominated power system as ours, trading and/or exchange
of power with neighbouring country is inevitable. We are constantly working towards to conclude a power trade
and transmission connection agreement with India. It is always good to start a work with considerable amount of
discussion, but such discussion and debate should also have their limits.। feel that we already wasted valuable time
in debating as to what is proper and what is not. They are segregated clearly when we start real work.

We are again working on the new Electricity Bill and Nepal Electricity Regulatory Commission Bill, which remained
in the previous parliament for a considerable length of time. We expect that great reforms will find their ways once
these bills are enacted. We are prepared to make necessary decisions in order to remove all obstructions in the
way to enhancing reliable and affordable electricity supply. In return, we want that no one questions NEA's project
implementation capacity. Almost all of NEA's generation and transmission line projects that are under construction
have undergone severe time overrun or cost overrun or both. Loss reduction is yet another area in which,। think, NEA
should work hard.। see no reason why NEA's employees cannot overturn such situation.

Inthe end,। would like to assure that areform process by no means should adversely affect any one of NEA employees.। wish to congratulate all the NEA staff for their sincere efforts while performing their duties so far, and once again,
wish that they would be successful in quest of their personal as well as organizational bright future.

pe

(Radha Kumari Gyawalli)

Minister for Energy

Government of Nepal and

Chairperson, Nepal Electricity Authority

2 miNepal Electricity Authority

Board of Directors

Chairperson
Radha Kumari Gyawali
Minister for Energy

Member Member

Mr. Rajendra Kishore Kshatri Secretary, Ministry of Finance
Secretary, Ministry of Energy

Member Member
Mr. Laxman Prasad Agrawal Mr. Manoj Kumar Mishra

Member Secretary
Mr. Ram Chandra Pandey
Officiating Managing Director, NEA

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

Member
Mr. Santosh Narayan Shrestha

Member
Mr. Suraj Lamichhane

Nepal Electricity Authority m@ 3

A YEAR IN REVIEW-

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4 Nepal Electricity Authority

A YEAR IN REVIEW-

Deputy Managing Directors

Mr. Birendra Kumar Pathak Mr. Ram Chandra Pandey
Deputy Managing Director Deputy Managing Director D Mr. Subash pana
MD's Secretariat Distribution & Consumer Services Directorate eputy Managing Director

Planning, Monitoring & Information
Technology Directorate

Mr. Sher Singh Bhat, Mrs. Gosai K.C.
Deputy Managing Director Mr. Sunil Kumar Dhungel Acting Deputy Managing Director। irec Deputy Managing Director - ः :
Generation Directorate (On Deputation to Tanahu Hydropower Ltd.) Administration Directorate

Mr. Lekha Nath Koirala
Acting Deputy Managing Director
Finance Directorate

Mr. Kanhaiya Kumar Manandhar।।
Officiating Deputy Managing Director Mr. Lila Nath Bhattarai

Transmission Directorate Officiating Deputy Managing Director

Engineering Services Directorate

Nepal Electricity Authority m™ 5

A YEAR IN REVIEW-

Managing Director's Report

On the occasion of 29th anniversary of the founding of Nepal Electricity Authority
(NEA), it is my pleasure to report on the activities of NEA over the past fiscal year
2013/14. Our efforts during the past fiscal year continued in aiming to function NEA
on a sound commercial basis so as to make it capable of undertaking future challenges
of development, and to provide our valued customers electricity of acceptable quality
and affordable price. NEA is no more the sole player in the country's power sector. With
the emergence of the private sector enterprise, particularly in electricity generation, it
is imperative that NEA improve its operational efficiency not only for its sustenance but
also equally if not more for the development of Nepal's power sector.

On this occasion,। would like to take this opportunity to affirm our commitment to perform
better and deliver better results in the days to come. With this note,। now present my

report on the activities of NEA during past fiscal year 2013/14.

Operational Performance

The annual peak power demand of the Integrated Nepal
Power System (INPS) in fiscal year 2013/14 is estimated
to be 1,201 MW, with 410 MW power estimated to
have been shed. Out of the 791 MW of power actually
supplied, 436.4 MW was contributed by NEA hydro, 22
MW by NEA thermal, 216.4 MW by IPP hydro and the
rest 116.2 MW was import. Compared to the preceding
fiscal year's figure of 1,094.6 MW, the annual peak
power demand of the INPS registered a growth rate of
9.7%.

Energy demand of INPS in fiscal year 2013/14 is
estimated at 5,909.96 GWh, out of which only 4,631.51
GWh (78.4%) could be supplied. The rest 1,278.45
GWh (21.6%) was resorted to load shedding. Of the
total supplied energy volume, 3,559.28 GWh (76.8%)
was contributed by domestic generation and 1,072.23
GWh (23.2%) by import from India. Domestic supply
included 1,258.94 GWh (35.4%) from IPPs and the rest
2,300.34 GWh (64.6%) was from NEA owned power
stations with a share of 2,290.78 GWh from hydro and
9.56 GWh from thermal.

In fiscal year 2013/14, we succeeded in restricting the
load shedding hours to a maximum 12 hours per day.
This was possible due to sound operation of the power
system, to ensure filling up of the Kulekhani reservoir at
the onset of the dry season, and also comparatively a
wet monsoon. Record generation from Kali Gandaki 'A'
and Middle Marsyangdi hydropower plants since their
commissioning and highest generation from Marsyangdi
hydropower plant in the last 15 years also played a
role. Extended load shedding hours for the feeders that
reported high percentage of theft was also a contributing
factor. NEA resorted to all possible means to minimize
load shedding; including purchase of all excess energy

6 miNepal Electricity Authority

from the IPPs, operation of costly diesel plants and all
possible import under power exchange agreement and
power trade with India. Till the supply capability of NEA
power system is substantially improved,। regret to say
that load shedding is NEA's compulsion.

Total energy sales including sales to India was 3,447.58
GWh in fiscal year 2013/14. This is a growth by 9.1 %
in the sales figure of fiscal year 2012/13. Sales to India
however declined to 3.32 GWh from 3.6 GWh in fiscal
year 2012/13.

Decrease in NEA's system loss in fiscal year 2013/14
is also encouraging. NEA's system loss decreased by
0.32 percentage point from the audited loss figure of
25.11% in fiscal year 2012/13 to 24.79 % (provisional)
in fiscal year 2013/14. This, we believe, is the result of
our continued efforts and measures taken on curbing
electricity theft. We are committed in continuing to
intensify our efforts to bring down the system loss to
an acceptable level. For this, support from the political
parties, civil society and the general public will also be
solicited.

The total number of consumers including community
and bulk buyer (India) consumer categories at the end
of fiscal year 2013/14 reached 2.71 million. Out of the
total number of consumers of 2.71 million, the domestic
consumer category alone accounted for 2.56 million
(94.37%).

Financial Performance

In fiscal year 2013/14, net revenue from sales of
electricity amounted to NRs. 27,624.28 million, an
increment of 8.95% over the preceding fiscal year's
sales revenue. Other income such as surcharge, interest

A YEAR IN REVIEW-

income, lease rent, service charge, dividend etc.
contributed NRs. 1,596.84 million to the total revenue.
NEA's total revenue of NRs. 29,221.12 million in fiscal
year 2013/14 recorded a growth rate of 7.34% over the
preceding fiscal year's total revenue.

NEA's operating expenses for generation, transmission,
distribution and administration were NRs_ 1,679.2
million, NRs. 450 million, NRs. 4,855.57 million and NRs.
1,314.23 million respectively in fiscal year 2013/14.
Power purchase from the IPPs and India is a major cost
item in NEA's operating expenses and reached NRs.
16,388.31,a20.75 % increment over the previous fiscal
year's figure. This cost item alone accounted for 56.75%
of NEA's total operating cost. Addition of number of IPP
projects in the NEA power system, increased quantity of
power purchased from India to minimize load shedding,
provision for annual escalation in the power purchase
rates and depreciation of NRs vis-a-vis the US$ that
effect the US$ denominated PPAs are some of the
factors causing increase in power purchase cost in fiscal
year 2013/14.

Annual depreciation charge on fixed assets was NRs.
3,256.48 million in fiscal year 2013/14, an increase
by nearly 1% over the preceding fiscal year's figure.
Interest on borrowing in fiscal year 2013/14 increased
by 1.61% to reach NRs 4,104.75 million.

As, NEA's total revenue could not keep pace with the
total cost, NEA, in fiscal year 2013/14, suffered a net
loss of NRs 5,704.24 million.

NEA capitalized several distribution system
reinforcement and rural electrification projects that
amounted to NRs. 3,984.31 million. With this; NEA's
property, plant and equipment as of end of fiscal year
2013/14 stood at NRs. 84,651.3 million.

Capital work in progress as of end of fiscal year 2013/14
stood at NRs. 50,812.58 million. Four major hydropower
projects namely Chameliyagadh (30 MW), Kulekhani-Il।
(14 MW), Upper Trishuli 3A (60 MW) and Rahughat (32
MW) and a number of transmission lines of different
voltage levels are presently under construction. Most
of the projects are being funded through government
equity and foreign loans channeled through Government
of Nepal. In fiscal year 2013/14, NEA invested NRs.
14,953.72 million in capital works and investment
projects out of which NRs. 6,356.43 million comprised of
government equity and NRs. 8,597.3 million comprised
of government loan. Long term borrowings stood at
NRs. 83,132.19 million and share capital stood at NRs.
44,221.33 million as of end of fiscal year 2013/14.

Development Activities

NEA's electricity supply position is far from satisfactory
to meet the increasing demand, thus compelling NEA
to resort to heavy load shedding. To overcome this
imbalance of supply over demand, as well to keep pace
with the growth in annual demand, NEA is undertaking
the construction of number of hydropower projects.
Quite a few projects are also being developed through
NEA''s subsidiary and associate companies. The private
sector also has a role to contribute. Extension of the
transmission grid and the distribution network are also
NEA's responsibilities.

Construction of Kulekhani-lll Hydroelectric Project
(14 MW), a cascade scheme of existing Kulekhani-ll
Hydroelectric Project (32 MW), is at an advanced
stage for completion with 80% of progress achieved
so far. Civil works relating to the headwork except the
control room have been completed. Excavation of the
tunnel except the inclined portion of the penstock has
been completed. Tunnel lining works is about 70%
complete with the grouting works to be started soon.
Powerhouse superstructure is about 71% complete to
an elevation of 503 meter. Tailrace structures have been
completed. As for the hydro mechanical works, draft
tube has been installed and fabrication of penstock,
penstock bifurcation and hydraulic gates are underway.
Manufacturing of major equipment such as Generator,
Turbine, Spiral Casing, Exciter, Governor, Transformer
and Crane has been completed and already dispatched
from China for installation.

Construction of Chameliya Hydroelectric Project (30
MW) is also at an advanced stage for completion with
94% progress achieved so far for the civil works.
Construction of connecting tunnel and desanding basin
is complete. Similarly, construction of dam, intake,
adit tunnel, headrace tunnel, power house and tailrace
is almost complete. Progress in the construction of
surge tank and penstock is also satisfactory. However,
completion in construction of headrace tunnel has been
hampered due to squeezing of tunnel in 843 meter section
between Adit 2 at downstream and Adit 3 at upstream.
Squeezing to an extent of 40% of tunnel diameter has
been observed. Rectifying this squeezing problem has
been started and 57% work has been completed so far.
Regarding the 131 km 132 kV transmission line, all the
towers have been erected and stringing of conductors
for 86.63 km length has been completed.

The construction of Upper Trishuli -3A Project started
from 1st June 2011. Most of the land needed for the
Project has been acquired including leasing of land for
the temporary facilities. Construction of steel bridge
and a pedes "trian bridge over Trishuli River, temporary

Nepal Electricity Authority हा 7

A YEAR IN REVIEW-

camp at headwork and excavation of 127.5 meter adit
number 1, 134.5 meter adit number 2, 234.6 meter
adit number 3 and 109.32 meter adit number 4 have
been completed. At headwork, first phase of river
diversion with installation of 2 gated weirs, construction
of intake and 106 meter of approach channel have
been completed. Second stage river diversion work
commenced on February 8, 2014 and excavation of
foundation, foundation concreting work, curtain grouting
at diversion axis and concreting at stilling basin have
also been completed. Excavation for desander basin
and 11,180 cubic meter of concreting up to the invert
level of desander flushing in eight panels each of three
layers have also been completed. Similarly, 2,806.4
meter of 4,076 meter (68.85%) headrace tunnel has
been excavated. The drilling operation for two blasting
holes of surge shaft head started on 24 June 2014
and two holes out of five has been completed. For the
construction of underground powerhouse, Powerhouse
Cavern (Upper Portion) excavation has been completed.
Cable tunnel 169.82 meter, access tunnel 180.66 meter
and first stage of excavation of drainage tunnel (239.18
meter) have also been completed. Defect treatment
work of the sheared zone and grouting injection on
rock anchored beam have been completed along with
treatment for fault alteration zone near rock face crane
beam. Crane beam concreting work is progressing. The
concrete lining for colluviums deposit at tailrace tunnel
has also been completed on 14 June 2014.

Rahughat Hydroelectric Project (32 MW) was initiated
with the joint funding of Government of Nepal and
Nepal Electricity Authority utilizing the soft loan made
available through a Line of Credit with the Export Import
Bank of India. So far, track opening for 10 km of 12.5
km access road has been made. The Civil Contractor
has built the Contractor's camp, Army camp and the
Crusher plant. Preparatory works for excavation of adit
3, excavation of powerhouse adit and construction
of access road are being carried out. The process for
selecting the contractors for the Electro-mechanical
and Hydro-mechanical works has already been initiated.
Application for prequalifying (PQ) the contractors for
Electro-mechanical work was invited on 4th March
2012. Presently, the Bidding documents are being
finalized. Similarly, application for prequalifying the
contractors for Hydro-mechanical work was invited on
9th July, 2012. Eight applied and four of them were
qualified.

To prepare promising hydropower projects for their
implementation, study ranging from desk study to
feasibility study level has been carried out on number of
hydropower projects. Noteworthy among them is the
Dudhkoshi Storage Hydroelectric Project. The process

8 miNepal Electricity Authority

for selecting an international consultant for implementing
the Dudhkoshi Storage Hydroelectric Project has
already been initiated. The consultant will: upgrade the
existing feasibility study, carry out detail design and
prepare tender documents. Similarly, for implementing
the Upper Arun Hydroelectric Project, assistance from
the World Bank has been sought and the Expression of
Interest for hiring an international consultant as per the
World Bank Procurement Guidelines will be issued soon.
Other projects that are under active consideration for
implementation are Tamakoshi V (87 MW) and Upper
Modi & (42 MW) together with its cascade Upper Modi
(18.2 MW).

Contracts for most of the packages of 285 km 400
kV Double Circuit Hetauda - Dhalkebar - Inaruwa
transmission line projects have been awarded and tower
foundation works at 50 locations have been completed
so far. Commissioning of this transmission line will enable
in transmitting bulk power for export to India through the
400 kV Double Circuit Dhalkebar - Muzaffarpur cross
border transmission line.

The Khimti- Dhalkebar 220 kV double circuit transmission
line project, with only one circuit initially to be strung,
is almost complete barring interruption of work at few
stretches of the line at Sindhuli due to right of way
compensation dispute. Stringing for the second circuit is
also in progress. Construction of the Hetauda - Bharatpur
- Bardghat 220 kV transmission line is under way.

The Hetauda 132 kV Sub-station and Transmission Line
Project and the Matatirtha Sub-station Expansion Project
were completed in fiscal year 2013/14. Substantial
progress have been achieved in the construction of:
Dumre-Damauli-Marsyangdi 132 kV_ transmission
line, Singati- Lamosangu 132 kV transmission line,
Kabeli 132 kV transmission corridor, Chapali 132 kV
substation, second circuit stringing of Butwal - Kohalpur
- Mahendranagar 132 kV transmission line and second
circuit stringing of Hetauda - Kulekhani-lIl - Siuchatar 132
kV transmission line. Similarly: Modi - Lekhnath, Solu
Corridor (Katari - Okhaldhunga - Solu) and Samundratar
- Trishuli 3B 132 kV transmission line projects were
initiated in fiscal year 2013/14.

Number of other transmission line projects are also
planned for implementation. Most are under project
preparatory stage under-going various studies.

Similarly, anumber of electrification projects, distribution
substation construction and upgrading projects and
33 kV transmission line and substation projects are
underway throughout the country to increase the
accessibility of electricity to the rural population.

A YEAR IN REVIEW-

NEA's Subsidiary and Associate Companies
and the Private Sector

Quite a few development activities are being carried out
through NEA's subsidiary and associate companies.
The Upper Tamakoshi Hydro Power Company Limited
(UTKHPL), in which NEA has a share ownership of 41
%, is undertaking the construction of 456 MW Upper
Tamakoshi Hydroelectric Project, a project of national
pride. The construction works in the project at different
front such as Dam, Intake, Headrace Tunnel, Surge
shaft, Powerhouse and Tailrace tunnel are ongoing at
full swing. The contractor for hydro mechanical works
has installed the second stage embedded part such as
guide frames, sill beams, alignment bolts; wall plates
of dam stop logs and dam radial gates number 3 and
4. The contractor for mechanical and electrical works
has started the installation works in the powerhouse.
Spiral distributor installation works for Unit 1 to Unit 4
are ongoing, whereas pit liner installation work for Unit
5 is almost completed. The contractor for transmission
line and sub-station works has completed the detailed
survey of the transmission line route from Gongar to
Khimti Substation. Land acquisition process has been
initiated for first 35 km of approved section of the
transmission line route alignment and tower foundation
works will commence immediately after this year's
monsoon season.

Chilime Hydropower Company Limited (CHPCL),
NEA's majority (51 %) owned subsidiary company, is
undertaking the development of Upper Sanjen (14.6
MW), Sanjen (42.5 MW), Rasuwagadhi (111MW) and
Middle Bhotekoshi (102 MW) hydropower projects,
through CHPCL's subsidiary companies. All the four
projects are being developed with 50% debt and 50%
equity financing mix. On its own, NEA has a share
ownership of 10 % in Sanjen Hydro Power Company
Limited, a share ownership of 10 % in Middle Bhotekoshi
Hydro Power Company Limited and a share ownership of
18 % in Rasuwagadhi Hydro Power Company Limited.
For all the four projects, consultants and the main
civil contractors have been selected. The main civil
contractors have already started their work.

NEA has also created Tanahu Hydropower Limited, a
special purpose vehicle (SPV) with full NEA ownership
for the development of a 140 MW Tanahu Hydropower
Project. This storage type hydropower project is being
built with co-financing from Asian Development Bank
(ADB), Japan International Cooperation Agency (JICA)
and European Investment Bank (EIB). The construction
of the project is planned to begin in 2015 with the target
set for completion by 2021.

NEA's_ other

subsidiary/associate companies are

Trisuli Jalvidut Company Limited (TJCL) with a share
ownership of 30% and Power Transmission Company
of Nepal (PTCN) with a share ownership of 50%. The
Trisuli Jalvidut Company Limited (TJCL) is developing
the 42 MW Upper Trishuli "3B" Hydroelectric Project
and the Power Transmission Company of Nepal (PTCN)
is implementing the Nepal portion of 400 kV Dhalkebar
— Muzaffarpur double circuit cross border transmission
line. Contract for constructing the Nepal portion of 400
kV Dhalkebar - Muzaffarpur double circuit cross border
transmission line has already been awarded by PTCN and
the contractor has spotted locations for all the towers so
far.

NEA has always considered IPPs as trusted partners in
meeting Nepal's growing electricity demand. PPAs for
148 projects have been concluded so far as of end of
fiscal year 2013/14 that would generate nearly 2,000
MW installed capacity on their completion. In fiscal year
2013/14, a total of 6 new projects developed by the
IPPs with their combined capacity of 23,558 kW were
commissioned. Projects that were commissioned are:
Lower Chaku Khola (1,765 kW), Ankhu Khola - 1 (8,400
kW), Bhairab Kunda (3000 kW), Radhi Khola (4,400
kW), Mailung Khola (5,000 kW) and Chhote Khola (993
kW). With these projects, the total number of IPP-owned
projects that are in operation has reached 39 with a
combined installed capacity of 255.65 MW. During the
fiscal year under review, 9 new PPAs for a total capacity
of 175.47 MW were signed

The Way Forward
NEA's current huge shortfall of supply over demand
cannot be removed outright and is bound to remain for
the next 2-3 years. For the intervening period, following
measures, among others, will be pursued to restrict
number of load shedding hours to 12-14 per day per
consumer during the dry season:

७ Additional import of nearly 70 MW would be
pursued with India on a priority basis on completion
of conductor upgrading work of 132 kV Kusaha -
Kataiya transmission line.

७ Possibility of importing 30 MW power through the
132 kV Gandak - Ramnagar transmission line, 10
MW power from the 33 kV Birgunj - Raxual line and
10 MW power from the 33 kV Bhairahwa - Sunauli
line will be explored with urgency.

७ Considering hydropower alone is not sufficient to
minimize load shedding, other probable sources
of renewable energy including solar power will be
connected to the national grid. With the objective
of minimizing load shedding in Kathmandu Valley,
25 MW solar power plant will be installed in the
coming fiscal year. Other solar power projects will
also be encouraged.

Nepal Electricity Authority m™ 9

A YEAR IN REVIEW-

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

७ Stringent measures shall be taken for the reduction

of technical as well as theft part of the losses. For
this support from political parties, civil society and
the general public will be solicited. Electricity loss
including the theft part will be restricted to 23 % by
fiscal year 2015/16.
NEA will improve the quality of its services through
the use of new technologies to meet the challenges
of new environment of utility business. In particular
following measures will be pursued:

७ The dBase computerized billing system, a 15
year old system based on outdated computer
technology is still in use in some of the distribution
centers. To bring in uniformity in the billing system,
the dBase computerized billing system will be
gradually phased out and replaced by the more
advanced Oracle based M-power computerized
billing system. The M-power computerized billing
system will be gradually implemented in additional
distribution centers.

७ Handheld Meter Reading Device (HHD), which
has helped in reducing human errors at the time
of meter reading, will also be implemented in
additional distribution centers. This device will
also be introduced for reading Time of Day (TOD)
meters.

e Any Branch Payment System will also be extended
to Maharajgunj, Thimi and Bhaktapur distribution
centers in Kathmandu valley.

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

basis.

७ Internet based payment and billing information
system accessible by the customers on line will be
introduced.

७ A system for paying electricity bills either through
a bank or in NEA's revenue collection center will
be implemented. Payment KIOSK will be installed
in major branches to facilitate bill payment outside
office hours.

७ Contracting out revenue collection to 5 third
party will be gradually implemented. With such
an arrangement NEA's customers will have wide
latitude in choosing from different modes of bill
payment as made available by the third party.

७ Automatic Meter Reading (AMR) System for
NEA's 200 large customers will be implemented
in fiscal year 2014/15 ona pilot project basis. This

10 miNepal Electricity Authority

system automatically collects consumption data
and status information of electronic energy meter
(TOD) and transfers them to a real-time central
database for the purpose of billing, troubleshooting
and analyzing. This technology mainly saves utility
providers the expense of periodic trips to each
physical location to read a meter.

७ Centralized customer care center willbe established
to ensure single point of contact for all consumer
related activities, timely service, less processing
time for new connection, prompt grievance
handling services and centralized control and
monitoring over the entire customer care process.

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

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

Transformer Test Bench will be installed in Central
Workshop Hetauda and NEA Training Center, Kharipati.
This will ensure quality control of 33 kV and 11 kV
transformers of capacity up to 10 MVA owned by NEA
as well as grid connected transformers owned by the
private sector. This facility will be gradually extended to
other parts of the country.

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

The projects under construction by IPPs and projects for
which PPAs have been signed are run-of-river type only.
These projects will generate substantial energy during
wet season but provide less quantity of energy during
dry season. This results in surplus during wet season
and deficit during dry season. A comprehensive plan is
required to utilize this surplus energy and to manage the
deficit in dry season. In this regard, completion of 400
kV Dhalkebar - Muzaffarpur Cross Border transmission
line is of utmost importance, following which export of
surplus energy to India in large scale would be possible.
NEA will also implement additional cross border
transmission lines gradually and presently the feasibility
study for the 400 kV Bardghat - Gorakhpur Cross Border
transmission line is ongoing.

A YEAR IN REVIEW-

Development of storage projects will provide along term
solution to resolve the problem of imbalance between
supply and demand during wet and dry seasons.
Andhikhola, Tamor and Uttar Ganga Hydroelectric
Projects have been identified as prospective and viable
storage projects for implementation in near future. NEA
will implement these projects on a priority basis.

Acknowledgements

To conclude,। take this opportunity to thank all those
contributing to NEA's activities over the past fiscal year.
It is only through positive teamwork,। must stress, that
a big organization like NEA can function and achieve
results to the satisfaction of its stakeholders including
customers.। wish to take this opportunity to thank the Government

of Nepal for their continued assistance in our operations
and their contributions to our development activities.। express my deep gratitude to the Chairperson and
members of NEA Board of Directors who have steered
the course successfully in all adverse conditions.
Thanks are also due to the donor community that has
made it possible for NEA to undertake the works for its
development.

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

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

Thank You.

Lebandep

Ram Chandra Pandey
Officiating Managing Director

Nepal Electricity Authority हा 11

Generation Directorate

Generation Directorate, headed by Deputy Managing
Director, is responsible for construction of new power
projects together with operation and maintenance of NEA
owned power stations. This Directorate is supported by
three departments, namely, Generation Development
Department, Technical Support Department, Generation
Operation and Maintenance Department along with
separate Major Generation Construction Projects each
headed by Director. At present this Directorate is taking
care of construction of the following four hydropower
projects.
=) Kulekhani Ill Hydroelectric Project (14 MW)
> Chameliya Hydroelectric Project (30 MW)
> Rahughat Hydroelectric Project (32 MW)
> Upper Trishuli 3 'A' Hydroelectric Project (60
MW)
Chameliya Hydroelectric Project, Rahughat Hydroelectric
Project and Upper Trisuli 3 A' Hydroelectric Project are
headed by respective Project Directors and report to
the Deputy Managing Director. Whereas, Kulekhani III
Hydroelectric Project is headed by a Project Manager
and reports to the Director, Generation Development
Department. The Technical Support Department provides
technical support needed for the ongoing projects and
existing power plants. The four hydropower projects
under construction and the Generation Operation and
Maintenance Department are described as following.

KULEKHANI Ill HYDROELECTRIC PROJECT
Project Background

The 14 MW Kulekhani III Hydroelectric Project is a 3"
cascade scheme of the Kulekhani Reservoir project and
is located immediately downstream of the Kulekhani Il
Powerstation in Makawanpur district. The Civil works
contract was awarded to Sinohydro Corporation, China
and the Electromechanical Contract was awarded to
M/S Zhejiang Jinlun Electromechanic Co., China. By
the end of FY 2013/2014 approximately 80% of the
construction works has already been completed. The
power generated from the Project will be evacuated
to INPS through a 500m long 132 kV single circuit
transmission line.

Government of Nepal and Nepal Electricity Authority

(NEA) are funding the construction of this project.

The initial total estimated cost of the project was 2.43

billion and scheduled to be completed by December 7,

2011. The construction works was halted by the Civil

Contractor citing various problems. Re-negotiations
12 miNepal Electricity Authority

were held with the Contractor and a "Memorandum of
Agreement" (MoA) was signed on February 18, 2012
and subsequently the construction of the project was
resumed from March 23, 2012. The main construction
components of the Project are Civil Works (Lot C-1) and
Electromechanical and Hydromechanical Works (Lot-2).
Originally, the project was scheduled to be completed
within a period of 44 months including mobilization,
testing and commissioning. As per the MoA, the project
duration has been extended by 30 months and the revised
completion date is September 13, 2014. Accordingly,
the initial cost estimate for the project has been revised
and is in the process of approval.

Since, the original contract agreement with the
consultant (Joint Venture of Water Resources Consult
(P.) Ltd, SILT Consultants (P.) Ltd. and Hydro Engineering
& Development Co. (P.) Ltd.) for the Construction
Management and Construction Supervision Work
was terminated in February 2012, a new Engineer
was appointed temporarily in lieu for the time being
until the appointment of the new Consultant. The
current Consultant for the Project is Water and Power
Consultancy Services, (WAPCOS) Ltd., Haryana, India,
in association with Total Management System (TMS),
Nepal.

Project Status

The majority of the Civil Works have already been
completed. All of the Civil Works in the Headworks
excepting the control room have been completed. The
excavation of the overall tunnels except the inclined
portion of the penstock has been completed (about 68 m
of the penstock remaining out of 5916.365 m of overall
underground excavation including forebay, inclined

shaft, penstock, headrace tunnel and adits). The tunnel

क कनल ay. ey 2

Concrete lining works in Forebay of Kulekhani Ill HEP

A YEAR IN REVIEW-

lining works is around 70% completed and the grouting
works for the tunnel is to be started immediately. The
Powerhouse superstructure has been completed up to
an elevation of 503 m and is around 71% completed.
The tailrace structures have been completed. As for
the Hydromechanical works, the draft tube has been
installed and the fabrication of the penstock, penstock
bifurcation, and hydraulic gates are underway. The
inspection of the major parts such as Generator, Turbine,
Spiral casing, Exciter, Governor, Transformer, Crane has
been completed and have already been dispatched from
China for installation. All the switchyard equipments
are in the final stages of manufacturing while the
manufacturing of the Transmission towers, panels,
cables etc are underway.

CHAMELIYA HYDROELECTRIC PROJECT
Project Background

Chameliya Hydroelectric Project under joint funding
of GoN, NEA and Korean loan was started in 2007 and
is scheduled to be completed in March 14, 2015. The
site is located at Sikhar VDC, Ward No. 4, Balanch of
Darchula District. The plant capacity is 30 MW with
average annual energy generation of 184.21 GWh. Even
with numerous problems, the project has achieved 94%
progress so far.

Project Status

By theendof FY 2013/14, 99.8% of the damconstruction
works has been completed. Similarly, 99.1 % of intake,
100% of connecting tunnel, 100% of desanding basin,
94.1% of adit tunnel and 99.1% of the headrace tunnel

Photo: Tunnel sqeezing treatment work in Chameliya HEP

(excluding squeezing portion) has been completed. The
progress of power house, surge tank, penstock and tail
race construction stands at 99.9%, 70.6%, 63% and
99.8% respectively. The overall progress of civil works
is 94%.

The progress in the construction of headrace tunnel has

been delayed due to squeezing problem encountered
in tunnel section between Adit 2 d/s and Adit 3 u/s.
Maximum squeezing of 40% of tunnel diameter has
been observed. Total squeezed length of 843.00m has
been the major challenges of the Project. The treatment
for this problem has been started and 57% work has
been completed so far.

Another major problem faced by the project is the
excessive weak geological condition in the vertical shaft
penstock forming the cavity with debris flow. The Panel
of Experts has recommend R.C.C. with geomembrane
vertical shaft after visiting the site in December 2013.

The embedded parts for powerhouse have been installed.
Installation of two draft tubes with all accessories has
been completed. Similarly installation of turbines have
also been completed. Most of hydro-mechanical and
electro-mechanical equipment have been delivered to
site. In the 132 kV transmission line works, 100% of
tower foundation works and 100% of tower erection
works have been completed. In addition, 86.63 km out
of 131 km stringing works of the 132 kV transmission
line have been completed. Moreover, 100 % tree cutting
has been completed. Similarly, 83.15 percent of total
electromechanical/hydro mechanical/transmission line
works have been completed. A total expense of project
till now is Rs. 12 billion.

RAHUGHAT HYDROELECTRIC PROJECT

Project Background

Rahughat Hydroelectric Project (32 MW) which is under
construction, is located near Beni of Myagdi district.
The Project envisages generating 187.66 GWh energy
from the Rahughat river. The Project was initiated
with the joint funding of Government of Nepal and
Nepal Electricity Authority utilizing the soft loan made
available through the Line of Credit from the Export
Import Bank of India. The estimated cost of the Project
is US$ 67 million (excluding IDC & taxes) out of which
US$ 31 million is available from the Export-Import Bank
(EXIM Bank) of India for civil works and its construction
supervision. The remaining US$ 36 million required for
electro-mechanical, hydro-mechanical, transmission
line & consultancy is available from the EXIM Bank. It's
main civil works comprises of headworks, desander, 6.1
km long headrace tunnel, inclined shaft, power house
and tailrace. The 132 kV transmission line up to New
Modi sub-station will be 28 km long.

Project Status

Construction of camp facilities for the project includes
14 numbers of buildings out of which 11 buildings
have been almost completed. Due to local issues and

Nepal Electricity Authority हा 13

A YEAR IN REVIEW-

contractor's problem, the finishing works are yet to be
carried out. The Contractor will be handing over some
building in near future.

About 30 hectare of land required for project(camp, road,
power-house, etc.) have been acquired. About 1,442
numbers of trees are required to be cut for clearance of
construction site for the project works.

WAPCOS Ltd is the Consultant for construction
supervision of the civil works. For the construction of
Main Civil Works, a Contract agreement was signed on
शु November 2010 with the Contractor IVRCL Limited,
India. The Consultant issued the "Notice to Proceed"
(NTP) to the Contractor on 30th November, 2012.
However, the contractor did not accept the NTP and
asked for a claim of nearly NRs. 31 crore. After a long
period of negotiation, NEA board asked the Consultant
to review/recommend the MOU & addendum to MOU
made between NEA & IVRCL LIMITED.

NEA Board accepted the recommendation of the
Consultant, WAPCOS Limited, including paying the
Contractor NRs 3.93 crores as "Settlement against Claim
and Delay Compensation" on 22™ December, 2013. The
payment for the Contractor was made through the EXIM
Bank in January 2014.

The Contractor was instructed to resume the works

[1 छ aff "NG न,
[ "x = 27. f हे
नर ~ 2- NEL,

Photo: Rahughat HEP Camp under construction

by bringing the necessary equipments and materials.
However, the Contractor almost stopped the
construction work of Access Road at all fronts since 13"
June, 2014 citing the Company's very poor financial
condition.

A team comprising of the representatives of the Ministry
of External Affairs (GOI) and EXIM Bank of India visited
the site in early July 2014 to assess the problem at site.
The line of credit meeting held at Ministry of Finance
gave strict instruction to the Contractor to start work at
the earliest.

So far, 10 km out of 12.5 km long access road track
opening has been made. The Contractor (civil) has built
14 miNepal Electricity Authority

the Contractor's camp, Army camp, Crusher plant and
Adit 3 excavations preparation is being carried out. Lack
of clearance by the Forest Department of Nepal causes
further delay in the access road construction. NEA has
already carried out supplementary IEE of 2.5 km of the
access road.

At present preparatory work for the excavation of Adit 2
and Adit 3 along with access road construction are being
carried out.

The application for  prequalification (PQ) for
Electro-mechanical works of the project was invited
on 4" March 2012. Only one applicant namely Bharat
Heavy Electricals Limited, India (BHEL, India) submitted
the application for PO and it has been qualified. Bidding
documents are being finalized at present. Similarly, the
application for prequalification for Hydro-mechanical
work was invited on 9 July, 2012. Eight applicants
applied and four have been qualified.

UPPER TRISHULI 3A HYDROELECTRIC PROJECT
Project Background

Upper Trishuli 3A is a 60 MW Run of River hydropower
Project located in Rasuwa and Nuwakot districts.
The construction of this project was initiated in FY
2010/11. The project is being financed by a soft loan
from China Exim Bank. An agreement was signed
between the Government of Nepal and China Exim
Bank for a concessional loan of 120 million US Dollars.
The estimated cost of the project is 125.775 Million
US$ and the loan from China Exim Bank is expected to
cover the cost of the major project works including Civil,
Electro-Mechanical, Hydro Mechanical and Transmission
Line works. It is envisaged that this medium sized project
under construction through concessional loan will help
to improve the power supply in the Kathmandu valley.
The Project structures comprise of a 15 m high, 95
m wide diversion weir, Intake, desander, 4.1 km long
headrace tunnel, a surge shaft, a vertical shaft, pressure
tunnel, underground powerhouse, a tailrace, 48 km long
220 kV Transmission line and ancillary structures like
camp facilities. The 2.3 km new access road to reach
the surge shaft and other Project sites, upgrading of
11.5 km existing road and a steel bridge of 55 m span
over Trishuli River are also other components of the
project. The estimated annual energy generation of the
Project is 460 GWh. The construction of this project is
being undertaken under Engineering Procurement and
Construction (EPC) model.

Project Status

Contract for the major construction work (Civil,
electro-mechanical, hydro-mechanical works) was
signed on 28 May 2010 with China Gezhouba Group

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

Company. Ltd. (CGGC) atacost of 89.1779 Million USS.
After signing of the Loan Agreement and subsequent
Subsidiary Loan Agreement (SLA) between Government
of Nepal and NEA the Contract has become effective
since 1st June 2011. The construction work has started
from 1st June 2011.

Contract for construction supervision of the project has
been signed with Northwest Hydro Consulting Engineers
on September 2010. The supervision work has also
started since 1 June 2011.

Land acquisition for the major Project work has been
basically completed including leasing of land for the
temporary facilities.

CGGC has completed construction of steel
bridge and a pedestrian bridge over Trishuli River,
temporary camp at headworks, excavation of

127.5m long adit no.1, 134.5m long adit no.2,
234.6 m long adit no.3 and 109.32m long adit
no.4. At headworks, CGGC has completed first
phase of river diversion with installation of 2 Gated
weirs, construction of Intake works and 106 m of
approach channel. Second stage River diversion work
was commenced at February 8, 2014 and excavation of
foundation, foundation concrete works, curtain grouting
at diversion axis and concrete at stilling basin has also
been completed. Excavation for desander basin and
11180 m? of concrete up to the invert level of desander
flushing in eight panels each of three layers has also been
completed. Similarly, 2806.4m out of 4076m (68.85%)
headrace tunnel excavation works has already been
completed. The drilling operation for two blasting holes
of surge shaft head has been started on 24 June 2014
and two holes out of five has been completed.

In underground powerhouse, Powerhouse Cavern
(Upper Portion) excavation has been completed. Cable
tunnel 169.82m, access tunnel 180.66m, first stage of
excavation of drainage tunnel (239.18 m) has also been
completed. Defect treatment work of the sheared zone
and grouting injection on rock anchored beam has been
completed along with treatment for fault alteration zone
near rock face crane beam and crane beam concrete
work is going on. The concrete lining for colluviums
deposit at tailrace tunnel has also been completed on 14

June 2014.

CGGC has been undertaking upgradation of the 11.5 km
long access road, access road to Surge shaft, Employer's
Permanent camp.

The Transmission line comprises of 46 km long 220
kV line from powerhouse switchyard to Matatirtha
substation in Kathmandu. In addition to 46 km overhead
line about 1 km of 220 kV underground cable route
leads to the Matatirtha Substation and two 132 kV line
bay extension work will be installed for interconnection
with existing Matatirtha substation. The overhead
transmission line comprises of about 4 km 132 kV
double circuit single Bison conductors from powerhouse
to UT3B Hub substation, about 36 km 220 kV double
circuit double Bison conductors from UT3B Hub
substation to Bandbhanjyang and about 220 kV four
circuit having upper two circuits double Bison conductor
and lower two circuits double Moose conductors from
Bandbhanjyang to Matatirtha.

The 22.6 million US$ excluding VAT Contract for the
Transmission line was awarded to China International
Water & Energy Corporation (CWE) in 27 March
2011.The Contract for the transmission line has
become effective from 26 February 2012 after the loan
agreement between GON and China Exim Bank was
signed on 17 August 2011.

Route alignment survey has been finalized by CWE
and Detail survey and geological and geotechnical
investigation of the transmission line has been
completed. 400 km ACSR 'BISON' Conductor and
Anchor Bolt for tower foundations has already arrived
at the site. Land acquisition for tower foundation has
also been completed and approval for tree cutting has
been obtained from the cabinet. Till now two tower
foundation concrete work has been completed and other
are on progress.

Apart from the works mentioned above, NEA has
conducted skill enhancement training to 60 persons from
the project site. Four school building, two water supply
system, road improvement to Trishuli hospital, supply of
hospital equipments, various roads are also on progress
under public support program. The Supplementary Initial
Environmental Examination (IEE) for Transmission line
work has been approved from the concerned ministry.

GENERATION OPERATION AND MAINTENANCE
DEPARTMENT

Generation Operation and Maintenance Department
(GO&MD), headed by Director, is responsible for
operation and maintenance of seventeen (17)
hydropower stations and two (2) thermal power plants
with an objective to maximize production by optimally

utilizing generation resources while undertaking
Nepal Electricity Authority हा 15

A YEAR IN REVIEW-

rehabilitation, periodic overhauling and maintenance
of generating facilities. It has always strived to uphold
economy, operational efficiency and an acceptable level
of reliability in its drive for improvement.

The aggregate installed capacity continues to remain at
523.29 MW with share of 469.29 MW from hydro and 54
MW from thermal plants. The total generation recorded
this yearis 2,283.34 GWh with contribution of 2,273.59
GWh from hydro and 9.75 GWh from thermal. The
Department has strived to increase production of energy
year on year basis especially from hydro resources. This
yielded record generations from Kali Gandaki A and
Middle Marsyangdi since commissioning and highest
generation from Marsyangdi in the last 15 years. An
increment of 0.86% is observed in actual generation
of ROR schemes compared to last year as major plants
exceeded their previous performances whereas an
increment of 6.18% is observed in storage plants. The
maximum water level of Kulekhani reservoir this year
was recorded at 1,530.36 masl on 20 December, 2013
and minimum water level was recorded at 1,507.32
masl on 24 May 2014. Identical reservoir levels are
expected next year as well considering current reservoir
drawdown rate and volume of rainfall in the catchment
area. The production of thermal plants has been reduced
to half as compared to previous year mainly due to high
operating cost compared to their hydro counterparts.
The generation target of 2,170.38 GWh was set this year
for ROR schemes whereby a shortfall of 37.46 GWh is
observed despite major plants exceeding the targets. The
shortfall is reportedly due to problems in Gandak, Trishuli
and Modi although improvements were observed in Modi
compared to previous year. The aggregate plant factor of
generating plants this year is 49.81% with 64.54% that
of ROR power plants. Only 1.3% of available energy is
consumed by generating facilities thereby retaining self
sufficiency ratio of 98.7 %. The Department continues
to work on corrective/preventive maintenance, periodic
overhauling and major maintenances of facilities along
with rehabilitation projects which are financed from
its own sources and/or Government of Nepal and/or
multilateral development agencies.

Apart from preventive and corrective maintenance
works, periodic overhaulings were carried out in Unit No.
1 of Kali Gandaki A, Unit No. 2 of Middle Marsyangdi,
Unit No. 1 of Trishuli and Unit No. 1 of Puwa Khola.
Major maintenance works include commissioning
of Digital Governor and AVR of Unit No. 1 of KL-l,
commissioning of new three phase Power Transformer in
KL-Il, deployment of online sediment monitoring system
in Middle Marsyangdi, emergency repair of generator of
Unit No. 6 of Trishuli, installation of Digital Governors
in Modi Khola and installation of VCBs with C&R panels

11 Panauti. The damaged interfacing transformer
16 miNepal Electricity Authority

of Chatara is being repaired at NEA Transformer
Workshop in Hetauda. Comprehensive investigation and
subsequent rehabilitation have also been planned for
Gandak and Chatara to rectify the damages and alleviate
the degraded performance of equipments.

This year is marked to be a remarkable year for
Kaligandaki A Hydropower Plant Rehabilitation Project
(KGAHPPRP) for achieving three significant milestones.
Financing Agreement of Kali Gandaki A Hydropower
Plant Rehabilitation Project was signed between
Nepal and International Development Association
(IDA) on 11 September, 2013 followed by Project
Agreement between International Development
Association (IDA) and Nepal Electricity. International

pi C2 On peter डौ

RCC Works of Retaining Structure on Downstream of
Undersluice Gate of Modi Khola

Development Association (IDA) has agreed a credit in
an amount equivalent to eighteen million two hundred
thousand Special Drawing Rights (SDR 18,200,000).
Subsequently, Government of Nepal has signed a
Subsidiary Loan Agreement (SLA) with Nepal Electricity
Authority on 8 December, 2013.

Rehabilitation of KL-Il, Panauti, Devighat, Seti and
Gandak under Power Plant Rehabilitation Project,
financed by GoN, was implemented in an effort to
improve the performance of ailing plants. Modernization
of excitation system of Marsyangdi and installation
of Trash Rack Cleaning Machine in Gandak are jointly
financed by Asian Development Bank (ADB) and GoN
under Energy Access and Efficiency Improvement Project
(EAEIP) whereas rehabilitation of Tinau and Sundarijal
small hydropower plants is only financed by Asian
Development Bank (ADB) under Electricity Transmission
Expansion and Supply Improvement Project (ETESIP).
All Projects are currently in progress and at different
stages of implementation. Rehabilitation of Modi Khola,
financed from own sources, is primarily implemented
to enhance sediment handling capabilities and rectify
damages to facilities. It involves civil modifications and

improvements of desander facilities, rectification of
diversion weir and right wing retaining wall, demolition
of upstream boulders in addition to electromechanical
repairs which include improvement in trash rack panels
and maintenance of under sluice gates.

Ageing plants coupled with ageing workforce,
unavailability of spare parts, rapid technological
progress and burgeoning O&M costs pose mounting
challenges in the days ahead. The Department continues
to work in the generation improvement initiatives which
include enforcing preventive maintenance schedule,
timely overhauling, training of staffs, reducing self
consumption and rapid response to breakdowns thereby
reducing equipment down times.

The following section gives a terse overview of plants
and activities carried out during this fiscal year.

1. Kaligandaki 'A' Hydropower Station

Kaligandaki 'A' Hydropower Station is the largest
power plant of Nepal with installed capacity of 144
MW and annual design generation of 842 GWh. It is
located at Krishna Gandaki, Syangja. It has achieved
the highest generation of 864.103 GWh this year since

'A

commissioning in 2002. The significant maintenance
work this year includes overhauling of Unit No. 1 from 9
March 2014 to 19 April, 2014, under which repair and
replacement of HVOF coated runner, guide vanes set and
new facing plate were carried out in addition to repair of
wear rings and application of Metaceram. Maintenance
of diversion gate 1 and 3, under sluice gates, desander
flushing gates and concreting on the base of desander
were also carried out in dam gate structure. As part of
electro-mechanical works of Kali Gandaki A Hydropower
Plant Rehabilitation Project (KGAHPPRP), Contract
Agreements for direct Contract packages for Supply
of Generator and Turbine Spare Parts and Supply of
MIV Spare Parts have been concluded between Nepal
Electricity Authority and Toshiba India Pvt. Ltd. The
other three competitive packages consisting of Turbine
Spare Parts & Repair of Turbine, Supply of Spare Parts
for Power House Auxiliary System and Installation of
Trash Rack Cleaning Machine are under evaluation. In

A YEAR IN REVIEW- FISCAL YEAR-2013/2014
Technical Assistance and Capacity-Building component,
short-listing of Consultants is completed and evaluation
of proposals is underway. The Consultant is expected to
commence the services from November, 2014.

2. Middle Marsyangdi Hydropower Station
Middle Marsyangdi Hydropower Station with installed
capacity of 70 MW and annual design generation of 398
GWh is located at Bhoteodar, Siundibar, Lamjung. It has
recorded the highest generation of 434.17 GWh this
year since commissioning in 2008. Major works carried
out this year include installation of an online sediment

monitoring system at headworks intake and powerhouse
penstock to acquire real time sediment status of turbine
system, emergency repair of turbine parts of Unit No.1,
strengthening of desander flushing channel outlet's
foundation and repair of all three Desander Bieri. As in
previous years, erosion resistant epoxy based compound
was applied in all three spillways and flap gate wall
upto 20 m on either side. Unit pre-startup conditions
were modified to avoid unnecessary blocking of unit
startups due to spurious signals. Also, low level alarm
was added and tripping level of surge tank was lowered
in Controcad system to reduce frequency of plant trips
especially during low reservoir levels.

3. Marsyangdi Hydropower Station

Marsyangdi Hydropower Station with installed capacity
of 69 MW and annual design generation of 462.5 GWhis
located at Aanbookhaireni, Tanahunin the central region.
It was commissioned in 1989 AD. It has consistently
performed well thereby generating 461.69 GWh this
year exceeding all previous years generations for the
last 15 years. Its outstanding operational performance is
rightly supported by periodic overhauling of Units, which
was Carried out in Unit No. 2 this year from 9 March,
2014to 12 April, 2014. Contract Agreement was signed
between Nepal Electricity Authority and Alstom Power
GmbH on 29 January, 2014 for repair and maintenance
works of GIS and its execution is planned for mid
September, 2014. Excitation System Modernization
under Energy Access and Efficiency Improvement

Nepal Electricity Authority हा 17

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

: switchyard is considered for replacement after it failed

Project (EAEIP), Loan Number: 2587-NEP (SF) which is
jointly financed by ADB and GON will be carried out by
Voith Hydro GmbH & Co. KG, Germany next year.

4. Kulekhani-। Hydropower Station
Kulekhani-। Hydropower Station is the only seasonal
storage type Plant in Nepal with installed capacity of 60

primary and 46 GWh secondary). It was commissioned
in 1982 AD and is located at Dhorsing, Makwanpur.
The availability of this Plant is critical to INPS. The plant
was principally designed for operation during dry season
when potential capacities in other run of river schemes
are significantly reduced. Major works this year consist
of installation of 3 numbers of 11 kV SF, circuit breakers,
replacement of station MOCBs of primary distribution by
VCBs with C&R panel and installation of combination
panel of Digital Governor and AVR in Unit no. 1 identical
to that of Unit No. 2. Existing 66 kV XLPE cable laid
between indoor Power Transformers and outdoor

18 miNepal Electricity Authority

twice previously. Civil repair works include maintenance
of shot crete and debris mitigation at dam, construction
of gabion wall and penstock painting.

5.Kulekhani-ll Hydropower Station

Kulekhani-ll Hydropower Station having _ installed

capacity of 32 MW and annual design generation of
104.6 GWh is a cascade of Kulekhani-। with diversion

of Mandu River to specially built intake. There is also a
special facility to pump water from a nearby Rapti River
to KL-Il. This Plant is located at Nibuwatar, Makwanpur
and was commissioned in 1986 AD. The catastrophic
fire and explosion in switchyard last year inflicted severe
damages to facilities resulting prolonged disruptions and
painstaking recovery. In an endeavor to recover, new 3
Phase, 132/6.6 kV, 26/3 7.8 MVA Power Transformer
was commissioned on 14 January, 2014. Outdoor 132
kV SF, Gas Circuit Breakers consisting of 1 (one) number
triple pole and another 2 (two) numbers single pole which
have already been supplied are planned to commission in
August, 2014. Earthing resistance improvement work
was also carried out in switchyard.

6. Trishuli Hydropower Station

Trishuli Hydropower Station is constructed on the
banks of Trishuli River at Trishuli Bazar, Nuwakot. Initial
installed capacity was 21 MW having 7 units of 3 MW
each. It was commissioned in 1967 AD in assistance
with the Government of India at a cost of INR 140 million.
It was later rehabilitated in 1995 AD and upgraded to 24
MW with 6 units each 3.5 MW and one unit 3 MW. It is
a peaking run-of-river plant with peaking capacity of 21
MW and annual design generation of 163 GWh. Major
activities this year include restoration of Unit No. 6 on 24
September, 2013 after emergency repair of generator
and overhauling of Unit No. 1 in which replacement of
runner and repair of wicket gates were carried out. Efforts

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

are underway to restore Unit No. 7 which is down due
to problems in Auto Start/Stop Panel since 15 August,

2013. Balancing reservoir extension and sedimentation
minimization works look plausible alternatives to utilize
the Plant's full potential in future.

7. Gandak Hydropower Station

Gandak Hydropower Plant is a canal drop plant located
in Western Canal at Surajpura, Nawalparasi. This Canal
with maximum discharge of 12,000 cusec advances
further for irrigation in Uttar Pradesh, India. The Plant
has three horizontal mounted tubular bulb type low head
high discharge Kaplan turbo-generators of 5 MW each
with aggregate capacity of 15 MW and annual design

generation of 106.38 GWh. It was commissioned in
1979 AD in assistance with the Government of India.
Operational performance of the Plant is deteriorating
after rupture of coupling bolts of Unit No. 2 & 3 in July,
1999. Presently, Unit No. 1 is not in operation since 1
October, 2008 due to damages in its stator windings.
Excessive leakage of turbine oil from runner bushing and
oil sealing rings inhibited operation of Unit No. 2 since
27 April, 2014. Unit No. 3 is also not in operation since
12 February, 2013 due to wear and tear of turbine parts
and problems in governor and excitation systems. Given

the present status of Plant, Generation Directorate is
considering a thorough investigation and rehabilitation
in assistance with the GoN.

8.Devighat Hydropower Station

Devighat Hydropower Plant with installed capacity of
14.1 MW and annual design generation of 144 GWh is
a tailrace development of Trishuli Hydropower Plant. It is
located at Devighat, Nuwakot and was commissioned in
1984 AD. Improved operational performance is observed
after successful completion of rehabilitation in 2011.
Significant works this year include replacement of AC-DC
and DC-DC converters and programming of Distributed

Processing Unit (DPU) and I/O cards of governor control
panel of Unit No. 1 and replacement of outdoor 66 kV
Y-Phase Bus PT. Inspection of Ni-Cd battery bank was
carried out after problems were observed and subsequent
testing resulted in finding of 9 dysfunctional cells. Other
activities include construction of gabion retention wall
for flood protection and protection of 66 kV steel tower
located on the banks of Trishuli River.

9. Modikhola Hydropower Station

Modikhola Hydropower Station with installed capacity
of 14.8 MW and annual design generation of 92.5 GWh
is located at Dimuwa, Parbat. It was commissioned in
2000 AD. Operation of this Plant has been adversely
affected especially during rainy season reportedly due
to sub-optimal design and inadequate sediment handling
facilities. Ongoing rehabilitation works is expected to
improve its performance. Major works this year include
installation of digital Governors, repair of inlet valves
and replacement of spindle seals in desander, intake and
sand purging gates located at headworks. Problematic
heat exchangers of thrust bearing in both units were also
replaced.

Among rehabilitation activities, 70% of one of the two
boulders located at upstream has been demolished to
uniformly distribute high flood towards diversion weir
and under sluice. Diversion weir rectification works
which include replacement of plum concreting of

Nepal Electricity Authority हा 19

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

downstream apron with RCC apron and construction of
cutoff wall at the end and application of epoxy paintings
are in progress. The existing tilted right wing wall has
been replaced with new RCC cantilever retaining wall.

Erection of protection wall has also been completed
for bye-pass steel pipe system on the right bank of
regulating pondage. In hydro-mechanical works, stop
lugs of under sluice gates has been repaired and detail
design drawings are being reviewed for improvement of
intake trashrack panels.

10. Sunkoshi Hydropower Station

Sunkoshi Hydropower station, located at 81 km east
from Kathmandu on the upper reach of Sunkoshi River
in Sindhupalchowk, is a run-of-river daily pondage
power plant having installed capacity of 10.05
MW and annual design generation of 70 GWh. The
powerhouse was first operated in January 1972. It was
constructed in assistance with Water Conservancy
and Electric Power Ministry of the People's Republic of
China and Government of Nepal. The Project cost was
approximately NRs. 109.4 million including 66 kV single
circuit transmission line up to Kathmandu. Overhauling

of Unit No. 3 scheduled for this year could not take place
and is postponed for next fiscal year. Construction of
gabion wall near the Workshop, barbed wire fencing near
Balka, drain cleaning along the power canal, replacement
of shaft-seal of Unit No. 2 & 3, repair of control cables
and control system accessories of Intake Gate No. 3 and
replacement of damaged trashrack panels at intake in
headworks were carried out this year.
20 miNepal Electricity Authority

11. Illam (Puwakhola) Hydropower Station
Puwa Khola Hydropower Station is a run of river type
with installed capacity of 6.2 MW and annual design
generation of 48 GWh. It is located at Golakharka, llam. It
was commissioned in 1999 AD and was jointly developed
by Government of Nepal and NEA at acost of USD 15.7
million. It has two identical units of 3.1 MW each and has
generated 29.60 GWh of energy this year. Major repair
and maintenance works this year include overhauling

of Unit No. 1 whereby Pelton runner, needle, nozzle
and oil cup seals were replaced. Construction of gabion
wall at intake site, drainage repair of access road and
maintenance of headtank crack were also accomplished
this year. The penstock which has problem of movement
reportedly due to weak geology was rectified to some
extent by constructing saddle support and erecting
manhole. This problem, however, requires a thorough
geological investigation in the future.

12. Chatara Hydropower Station

Chatara Hydropower Station, a canal drop type power
station, is located at Chatara, Sunsari with installed
capacity of 3.2 MW and annual design generation of 6

GWh. It was commissioned in 1996 AD in assistance
with Government of India at a cost of NRs. 162.6 million.

The plant which was originally designed to be a captive
plant powering drazzer pumps to flush sediments from
the Canal was later handed over to NEA by Sunsari
Morang Irrigation Project (SMIP) on 29 March, 1999.
A 3,500 kVA, 11/33 kV grid interfacing transformer
was damaged on 13 May, 2013 and repair works are
underway at NEA Transformer Workshop in Hetauda.
This disrupted normal operation of both units and Unit
No.1 was managed to operate in isolated mode. Unit
No. 2 requires repair and maintenance in turbine runner
assembly, auxiliaries and electrical controls to bring itinto
operation. The Department has initiated for rehabilitation
of this plant from original equipment manufacturers.

13. Panauti Hydropower Station

Panauti Hydropower Station is constructed on Roshi
Khola located at Khopasi, Panauti, 35 km east of
Kathmandu with installed capacity of 2.4 MW and annual
design generation of 6.97 GWh. It was commissioned in
1965 AD with assistance from the then Soviet Union at
a cost of NRs 27 million. The Project was designed for
operation of only two
units at a time with
third unit as a standby.
Power canal of 3,721
m long with discharge
of 3.2 cu. m/s from
headwork to reservoir
has seven (7) outlet
gates for irrigation in
the vicinity of Khopasi.
GON is assisting in rehabilitation of this Plant under which
rewinding of stator coils, replacement of switchgear
and protection system and repair of mechanical parts in
Unit No. 1 & 3 are underway. This Plant further requires
refurbishment of excitation and governing system
along with outdoor power transformers and switchyard
elements.

14. Seti Hydropower Station
Seti Hydropower Station is a run of river plant with
installed capacity of 1.56 MW and design generation of

9.8 GWh. It consists of 3 units of 0.5 MW each. It is
located at Nadipur, Pokhara and was put into operation

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

in 1985 AD with assistance from the People's Republic
of China. Power canal of this Plant serves both objectives
of irrigation and energy. Intake of the canal is regulated
primarily for irrigation by Department of Irrigation and
hence, normal operation of the Plant sometimes gets
affected regardless of availability of Units. Some of
the works carried out this year include repair of runner
and guide vane of Unit No. 1, temporary relocation of
desander gate and maintenance of power canal and
protection of Furse Khola.

15. Fewa Hydropower Station
Fewa Hydropower Station is a small 1.0 MW Plant
erected at the end of Fewa Canal which was mainly
constructed to irrigate land in the vicinity of Birauta. The
main Canal starts from the barrage which is located at
one end of Fewa Lake at a popular tourist destination
called Damsite. This canal after traversing some distance
is branched at Ram Mandir to form main and branch

TES wv

canal. The main canal heads to the East for irrigation
and branch canal heads to the South for both power
and irrigation. This Power Plant is located at the end of
branch Canal at Pardi, Birauta, Pokhara. It consists of 4
units each 0.25 MW and annual design generation of 6.5
GWh. It was commissioned in 1969 AD with assistance
from the Government of India. Currently, three units
are in operation and Unit No. 4 is not in operation due to
problem in generator turbine coupling

16. Sundarijal Hydropower Station

Sundarijal Hydropower Station is located at Sundarijal,

15 km northeast of Kathmandu and serves twin purpose
Nepal Electricity Authority हा 21

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

of water supply and energy. The tailwater discharge is
utilized for water supply system to Kathmandu Valley
whereas it has name plate combined turbine capacities
of 1,300 BHP. This Plant was erected under Colombo
Plan scheme whereby the main equipments were
supplied by The English Electric Company Ltd., England.
It was commissioned in 1934 AD. Considering its
operational life, rehabilitation of this Plant together with
Tinau Hydropower Plant under Electricity Transmission
Expansion and Supply Improvement Project (ETESIP)
jointly funded by ADB and GON is currently underway.
Project specifications and cost estimates are being
prepared by the Consultant

17. Pharping Hydropower Station

Pharping Hydropower Station is the first power station
in Nepal, which upholds the legacy of hydropower
development in Nepal for more than a century. It was
inaugurated by the late king Prithivi Bir Bikram Shah
Dev on Monday, 22 May, 1911 (B.S. 1968, 9 Jestha,
Monday) at 6:30 PM more than 100 years back by
switching on lights in Tundikhel, Kathmandu. It was
erected with a grant from British Government at a

4

cost of 1425. 0.713 million. It is located in Pharping
of Kathmandu district, nearly 12 km south from the
city. It utilizes spring water from Satmule and Shesh
Narayan area. There are two units each 250 kW with an
aggregate installed capacity of 500 kW. Previously, only
one unit was operated for an hour a day, but currently
due to increasing shortage of drinking water. A master
plan has been prepared to develop the site as Live
Energy Museum with constructions and establishments
including scientific research center and model power
station of wind, solar and hydro and as a centenary
celebration memorial. Inauguration day of this Plant, 9
Jestha, is celebrated as a National Energy Day to mark
the beginning of Hydropower Development in Nepal.

18. Multi-Fuel Power Plant

Multifuel Power Plant with installed capacity of 39 MW,
is located at Bansbari, Morang in the eastern industrial
corridor of Nepal. Out of total installed capacity of 39
MW, 26 MW capacity was put into service in fiscal
year 1990/91 and additional 13 MW capacity was put
into service in fiscal year 1997/98. It consists of 6 (Six)

22 miNepal Electricity Authority

Wartsila Diesel engines which use furnace oil (FO) as
a source of energy. There are two units each 7.5 MVA
from Leroy Somer France and four units each 8.144
MVA from Alsthom, France. Rehabilitation of all the six
engine sets was successfully completed in December
2012 from the World Bank financed under Power
Development Project (PDP). Currently, a total of 36 MW
with 6 MW each from all units is available from the Plant.
The Plant operates as a backup in INPS and is normally
operated for peaking during dry season. Major works
this year include installation of plate heat exchanger

(PHE) and modification of cooling pipe line. The plant has
generated 4.98 MWh energy this year.

19. Hetauda Diesel Power Plant

Hetauda Diesel Power Plant with installed capacity of
14.41 MW is located at Hetauda, Makawanpur and
acts as a standby to hydropower plants. The first phase
with three engine sets of English Electric Co. Ltd. was
commissioned in 1963 and the second phase with four
engine sets of GEC Diesel Ltd. was commissioned in
1980 in assistance with British Government. It adds
to generation mix providing operational flexibility.
It operates in an emergency, however, soaring fuel
prices severely restricts its operation. Presently, it is

able to operate at capacity of 10 MW. Major works this
year include repair of 16 CSV Engine cooling towers
and turbocharger casing of Unit No. 6 besides routine
maintenance works. The plant has generated 4.77 MWh
energy this year. ७

A YEAR IN REVIEW-

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Transmission Directorate

Transmission Directorate is responsible for
development, implementation and operation of high
voltage transmission system. This directorate is
headed by a Deputy Managing Director and has Grid
Operation Department (GOD), System Operation
Department(SOD), Grid Development Department, Major
Transmission Projects 220 kV and Major Transmission
Projects 400 kV, each headed by a Director.

This directorate monitors, operates and constructs
transmission lines and _ substation facilities to
evacuate power generated by both NEA and _ IPP
owned power plants and undertake reinforcement of
the existing transmission system. Nepal's first-ever
400kV_ Nepal-India cross-border transmission link
is being implemented with the leading involvement
of this directorate and study work is being initiated
for second cross border Bardghat-Gorakhpur 400kV
transmission link. The Hetauda-Dhalkebar-Inaruwa
400kV transmission line, which is under construction,
will help to build a strong and robust transmission grid in
near future. The Khimti-Dhalkebar 220kV transmission
line, a pioneer line of NEA at 220kV class, is nearing
completion.

This Transmission Directorate is also forging ahead for an
updated Transmission System Master Plan upon which
NEA intends to develop river basin wise transmission
system as a long term strategy for power development
of Nepal.।. System Operation Department (SOD)

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

The availability of realtime dataand better communication
system have improved the overall availability of power
stations and transmission lines and has helped to reduce
the number of complete system collapse and minimize
the time required for restoration of the power system in
case of black-outs, thereby reducing loss of revenue. The
number of complete system collapse has been reduced
significantly to 22 as compared to 40 in the previous
year, and the subsequent complete outage time has been
reduced to 264 minutes as compared to 543 minutes in
the previous year. The magnitude of load shedding has

also been maintained to maximum 84 hours per week.
For the continued smooth functioning of the system, it
is necessary that the data acquisition from the power
stations and substations be updated according to the
latest changes/modifications in the respective stations.
The trained manpower in the LDC has been able to keep
the data up-to-date in the SCADA software in the LDC.
Besides the regular maintenance works, new station
Kamane has been integrated into the SCADA software.
Around Rs.130 million revenue is being received
annually by leasing (to Nepal Telecom and other private
companies) the fibers from the fiber optic cable.

ll. Grid Operation Department

The Grid Operation Department is entirely responsible for
the transmission of reliable and quality power from distant
generators to various load centers as well as providing
connection facilities to IPPs and Bulk Consumers in
different voltage levels by accomplishing Connection
Agreement as per NEA Grid Code. Another main function
of the Department is to look after the operation of 66kV
& above Substations and Transmission Lines along with
routine and breakdown maintenance works including
up-gradation, extension, replacement works, reactive
compensation and rehabilitation works etc. Under the
Department there are three division offices respectively
in Kathmandu, Hetauda, Butwal and three branch offices
respectively in Duhabi, Pokhara & Attaria.

Major Works performed in the F/Y 2070/77 are as
follows:

Transformer Upgrading, Compensation and Substation
Reinforcement Works (Completed)

This department has executed numbers of Transformer
reinforcement, upgrading works in various Substations.
With the increase of power demand and Voltage
problem, up-gradation, Reactive Power Compensation
and rehabilitation of power system equipments in
the Substations is being carried out. The existing
Transformers after being replaced are reused in
other Substations after necessary Overhauling and
Maintenance works. Reallocations of such Power
Transformers among Substations are a cost effective
solution for load management. Grid has completed some
of the connection facilities to evacuate Power from
Independent Power Producers (IPPs).

Various works executed by this department have
supported to reduce forced load shedding caused by

Nepal Electricity Authority हा 25

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

inadequate transformation capacity. The department has

carried out and completed following major up-gradation

and reinforcement works in FY 2070/71 are as follows:

> __Installationof new 132/33kV, 30MVA Transformer
Bay at Chandranigahpur S/S.

2 Installation of new  66/11kV, 22.5MVA
Transformer Bay at Chabel S/S.

> Installation of new 66/11kV, 18MVA Transformer
Bay at Patan S/S.

> Installation of new  33/11kV, 16.6MVA
Transformer replacing the existing 7.5MVA at
Kohalpur S/S.

> Installation of new 33/11kV, 16.6MVA
Transformer replacing the existing 7.5MVA at
Attaria S/S.

> = Shifting and Installation of 33/11kV, 7.5MVA
Transformer replacing the existing 3MVA at
Mahendranagar S/S.

> = Shifting and Installation of 33/11kV, 7.5MVA
Transformer at Butwal S/S.

Following major up-gradation & Reinforcement works

for Substation are initiated and are under progress

=> Installation of new  132/33kV, 63MVA
Transformer Bay at Duhabi S/S.

> Installation of new  132/11kV, 30MVA
Transformer at Pokhara S/S.

> Installation of new  33/11kV, 16.6MVA

Transformer to replace existing 3MVA at Damauli
S/S.

> Installation of
Transformer to
Dhalkebar S/S.

new 33/11kV, 16.6MVA
replace existing 5MVA_ at

=> Installation of new  33/11kV, 16.6MVA
Transformer to replace existing 3MVA at Chanauta
S/S.

> Installation of new  132/33kV, 30MVA

Transformer at Singati S/S of Singati- Lamosanghu
Corridor project as the prject upgraded the existing
132/33kV, 15MVA Transformer at Lamosanghu
S/S with new 30MVA.
The Department has successfully accomplished the
Grid Connection Agreement with 21 IPPS (Independent
Power Producers) for 406.26MW Capacity to mitigate
the future load demand.

Il. Grid Development Department (132kV Trans-

mission Line Projects)
Brief summary of projects under different stages of
development are presented below:

A. Recently Completed Projects
1. Hetauda 132kV Substation and Transmission Line
Project
The main objective of this project is to provide dedicated
power supply to Shivam Cement Industries located at
26 miNepal Electricity Authority

Hatiya, Hetauda and Rural Electrification of Phaparbari
area Makawanpur District. The main component of this
Project is 132/33 kV, 30 MVA substation at Kamane
and 10 km D/C 33 kV transmission line in lattice tower
from Kamane to Hatiya. Total Project cost is NRs. 320

Hetauda-Kamane 132/33kV Substation

Million. This project was commenced on FY 065/066,
Construction of the substation was completed and put
in to operation on Paush 3, 2070 (December 18, 2013).

2. Matatirtha Substation Expansion Project
Objective of this project is to cater the increasing
electricity demand of the western part of Kathmandu

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Matatirtha Substation Expansion work

valley and capacity increment of Bharatpur substation.
Scope of this project also includes electricity supply to
United Cement, Naubise and Laxmi Cement, Lalitpur.
Cost of this project is NRs. 240 Million and is jointly
funded by loan assistance of ADB, GoN and NEA. The
project started in FY 2065/066 and completed, put in to
operation on Baisakh 2071 (May 2014).

B. Projects under Execution

1. Thankot - Chapagaon - Bhaktapur 132kV
Transmission Line

This project was started in FY2055/056 with the

objective of improving and enhancing supply reliability,

transmission capacity of the substations within

Kathmandu Valley with estimated project cost of US$

23 Million. Project was scheduled to be completed by FY

2072/073 (2015/016).

Upgrading of Bhaktapur and Balaju substations and
construction of new Matatirtha substation under
the project has been completed and handed over to
Kathmandu Grid Division. Due to protest from local
inhabitants in the Lalitpur district, construction of
transmission line and substation at Harisiddhi has been
stopped. Due to timely unavailability of right of way
(RoW) at Lalitpur district, prolongation of construction
time, transmission line contract was terminated.

For stringing of conductors on erected towers in
Kathmandu and Bhaktapur districts, a new contract
had been awarded and conductor stringing work in
Kathmandu district has been completed. The line
stringing work in Bhaktapur district is undergoing.

2. Dumre - Damauli - Marsyangdi 132kV
Transmission Line

The objective of this project is to evacuate and enhance

reliability of the power generated by Marshyangdi Power

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Dumre Damauli 2" Circuit Stringing Work is
in Progress

Plants. Cost of this project is estimated to US$ 18.62
Million which ts jointly funded by loan assistance of ADB,
GoN and NEA. This project is started on F.Y 2065/66 and
scheduled to be completed by FY 2072/73 (2015/16).

Major component of this project includes construction
of 40 km of 2nd circuit transmission line on same
existing tower from Middle Marsyangdi-Dumre-Lower
Marsyangdi and double circuit 22km_ transmission
line from Dumre tapping to Damauli, construction of
132/33KV, 24/30 MVA New Marsyangdi (Markichowk)
substation at dam site of Lower Marsyangdi power plant.
As of Ashad 2071, for Transmission Line Construction
Package, all transmission line materials received at site,
about 12km of second circuit conductor stringing work

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

completed. Construction contract has been signed for
substation package.

3. Butwal—Kohalpur-Mahendranagar 132kV
Transmission Line 2nd Circuit

The rationale behind this project is to provide adequate
power to Western Nepal so as to meet the electricity
demand requirement of ADB and Danida funded rural
electrification projects in the region in addition to regular
electricity demand, to provide power to upcoming
cement factories in the region, to evacuate power from
Chameliya hydropower plant (30 MW) and to supply part
of the Butwal area from Tanakpur to alleviate the present
load shedding problem. The line is also required to
evacuate 36 MW free power to be received from Upper
Karnali hydropower plant.

The scope of Butwal-Kohalpur section consists of
second circuit stringing on existing double circuit towers
and construction of necessary line bays in associated
substations. A 20 MVAR capacitor bank is proposed to
be installed at Kohalpur substation as required in NEA's
Transmission Plan, 2008. New 132/11 kV substation
at Kusum, Banke is proposed to cater the local load of
Kusum area and to connect
132/33 kV Hapure substation
through 132 kV  Kusum
— Hapure transmission.
The main activities of the
project includes 132 kV
second circuit stringing on
existing double circuit towers
between Butwal and Kohalpur
(208 km), Replacement of
existing ground wire between
Butwal and Kohalpur with
optical ground wire(211 km),
New transformer 1 3 2/3 3 Butwal-Kohalpur 2" Circuit Stringing Work is in Progress
kV, 24/30 MVA at Shivapur

substation, New 132/33kV, S3OMVA substation at
Kusum and 132kV Bay Expansion at substations.

The project was started in FY 2008/09 with US$ 13.8
million loan assistance from ADB and NRs. 276.4 million
from GON and NEA andis scheduled to be completed in FY
2014/015. As of end of FY 2013/14, the second circuit
stringing of ACSR conductor has been completed for the
length of 200 km out of 208km and the replacement of
ground wire with OPGW has been completed for whole
length of 211 km. Bay extension works at existing
Butwal, Shivpur, Lamahi & Kohalpur 132 kV substations
and construction of new 132 kV Kusum substation have
been completed. All substations are ready for Testing &
Commissioning.

Nepal Electricity Authority हा 27

A YEAR IN REVIEW-

The scope of works under Kohalpur — Mahendranager
second circuit Transmission consists of second circuit
stringing on existing double circuit towers (190km),
replacement of existing ground wire with OPGW from
Kohalpur to Mahendranagar (Lalpur) and construction
of necessary line bays in associated substations. Two
new 132/33/11 kV substations at Bhurigaun of Bardiya
and Pahalmanpurya of Kailali district has been proposed
to meet the increased electricity demand of Bardiya and
Kailali districts.

The project was started in FY 2011/12 with US$ 20.78
million loan assistance from Asian Development Bank
and is scheduled to be completed in FY 2014/015. As
of end of FY 2013/14, Contract has been signed for
transmission Line Package on 23" February, 2014 and
the bid evaluation for Substation package is in progress.

4. Chapali 132kV Substation

Two part of this project are Chapali 132kV Substation
and Chapali Substation Expansion.

The objective of the Chapali 132kV substation project
is to cater and improve power supply reliability of
the increased residential and commercial demand of
Northern part of Kathmandu. The project started in FY
2008/09 (2065/066) is scheduled to be completed in
2071/072 (2014/015). Total cost of the project is US$
16 Million jointly financed by loan assistance of ADB,
GoN and NEA.

The main output of the Chapali 132kV substation
is to construct new 132/11kV, 30MVA substation
at Chapali and built 7.7km long 66kV underground
cable interconnection between existing substations at
Chabahil and Lainchhour.

As of Ashadh 2071, about 75% of the substation
construction work is completed and_ remaining
construction work is in progress.

Second part 132kV Chapali Substation Expansion
Project was started in FY 2068/069 with NRs 807
million jointly from ADB and NEA. Project is scheduled
to be completed in FY2072/073 (2015/016). The main
output of the project includes interlink of 132kV and
66kV voltage level and appropriate bay expansion work
at substations.

As of Ashadh 2071, construction contract is signed and
construction work is about to start.

5. Kabeli 132kV Transmission Corridor
The objective of this project is to connect Hydro Electric
Projects (HEPs) in the Kabeli Corridor to Integrate Nepal
Power System (INPS) to facilitate power evacuate of
150 MW and to improve the distribution network of
Jhapa, llam, Panchthar and Terhathum districts.

28 miNepal Electricity Authority

Scope of project includes construction of 90 km 132 kV
double circuit transmission line from Damak substation
to Kabeli substation, replacement 76 km of shield wire
with optical fiber ground wire (OPGW) from Duhabi
substation to Anarmani substation, construction of
132/33kV substations at Damak, llam, Phidim and

132/33kV, 30MVA Damak Substation

Kabeli and community based rural electrification within
2.5 km of either side of the transmission line.

Project Cost is estimated at US$ 37.77 Million and
funded by WB, GON and NEA. Project was started in FY
2062/063 (2006/07) and is estimated to be completed
by FY 2071/72 (2015/16).

Project status as of Ashadh 2071, 99% construction
work completed of Damak substation, 85% construction
work completed of Ilam substation. Both substations
are planning to charge soon. Phidim S/S and Kabeli S/S
construction work are in progress. 80% transmission line
construction material received at project site. Section-।
(Damak-llam) TL construction work is in progress, out of
95 for first section, 80 tower foundations and 18 tower
erection works has been completed. Construction works
for second and third section shall be started soon. Public
notice has been published for land acquisition for tower
foundation work in Section-ll and Section-lll.

6. Singati-Lamosangu 132kV Transmission Corridor

The objective of this project is to evacuate power from
different hydroelectric projects to be developed by
different IPP's in the Tamakoshi - Singati basin. Project
will construct Singati- Lamosangu 40 km 132 kV Double
Circuit Transmission Line and 132/33 kV, 30 MVA
substation at Singati. Total cost of the project is about
US$ 13 million and is funded by GoN. The project was
started in FY 2065/066 and is scheduled to be completed
in 2072/073 (2015/016).

As of Asadh 2071, substation civil construction work is
completed so far whereas substation equipment erection
work is in progress. Land acquisition work at Dolakha
for tower footing is completed and Transmission Line
construction work is about to start.

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

7. Hetauda-Kulekhani-ll-Siuchatar 2" Circuit 132kV
Transmission Line

The objective of this project is for power evacuation

from Kulekhani।। Hydroelectric Project which is under

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Substation

construction, reinforcement of INPS and to increase
the reliability of INPS. The project is scheduled to be
completed in 2071/072 (2014/015). Cost of this project
is estimated to US$ 2.5 Million and funded by GoN.
Scope of the project includes construction of 46km 277
circuit 132kV Transmission Line on same existing Tower
and Bay extension works at substations (Hetauda,
Matatirtha and Siuchatar).

As of Ashadh 2071, about 32km 2™ circuit 132kV
Transmission Line has been constructed so far from
Fakhel to Chaukitol, Hetauda. Work has been stopped by
local people of Matatirtha and Hetauda demanding RoW
compensation. Construction of four number of 132 kV
Bays at Matatirtha, Hetauda and Siuchatar is completed.
Testing of the equipments has also been completed.

8. Kusaha-Kataiya 132kV Transmission Line

The objective of this project is to reduce load shedding
by increasing import power from India. For this project
is upgrading existing conductor from Kusaha to Kataiya
by the equivalent size high current carrying conductors
called Aluminum Conductor Composite Reinforced
(ACCR). Project started in 2069/070 (2012/13) and
expected to be completed in 2070/071 (2013/014).
Project cost is estimated to US$ 4.0 Million and funded
by government of GON.

As of Ashadh 2071, 12km of Conductor Replacement
work at Nepal side has been completed; remaining
3km of Indian portion is in process. Permission from
Indian Government has been granted to transport the
construction material to Indian side to complete the
remaining 3km. After completion of the work, line will

enable to import around 150 MW Power from India
instead of 8SOMW.

9. Modi-Lekhnath 132kV Transmission Line

The objective of this project is to increase power
evacuation capacity of the IPP's upcoming in the Modi
and Madi river basin. Scope of the project includes
construction of 132kV Double Circuit Transmission Line
42km from New Modi to Hemja Substation to Lekhnath
Substation and New Hemja 132/33/11kV substation.
Cost of this project is estimated to US$ 20.39 Million
and jointly funded by Exim Bank of India and GoN. The
project is scheduled to be completed by FY 2073/074
(2016/0117).

As of Ashadh 2071, Detail Survey work is completed;
Scoping ToR Document is submitted for approval to
Ministry of Energy as part of Environmental Impact
Study. Project approval received from Exim Bank of India
and Preliminary Officer has been appointed for New
Hemja substation Land Acquisition.

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

The objective of this project is to increase power
evacuation capacity of the IPP's upcoming in the Solu
Corridor and expansion of INPS. It includes construction
of 90km of Double Circuit Transmission Line with
CARDINAL conductor from Tingla (Solu) substation
to Mirchaiya and 132/33kV New Substation at Tingla.
Cost of this project is estimated to US$ 29 Million and
jointly funded by Exim Bank of India and GoN. The
project is scheduled to be completed by FY 2073/0074
(2016/017).

As of Ashadh 2071, Exim Bank of India has approved
the project, Project Management Consultant has been
nominated, Feasibility Study, Survey work and Initial
Environmental Examination work completed, Land
Acquisition process concluded for Tingla substation.

11. Samundratar-Trishuli 3B 132kV Transmission Line
Objective of this project is to evacuate the generated
electrical power from IPP's up coming in the Trishuli,
Tadi basin. Cost of this project is estimated to US$ 10.5
Million and jointly funded by ADB/EIB and GoN. The
project is scheduled to be completed by FY 2073/074
(2016/017). It includes construction of 26 km double
circuit transmission line from Samundratar to Trishuli
3B Hub and new 132/33kV, 2x30MVA Substation at
Samundratar, Nuwakot.

As of Ashadh 2071, detail survey work for Transmission
Line and Substation has been completed whereas the
draft report of IEE is submitted to MOE for approval.

Nepal Electricity Authority हा 29

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

Amount of land price for development of Substation
at Samundratar has been delivered ०0 District
Administration Office for distributing compensation
amount to land owners. Construction of the Project shall
be initiated from FY 2071/72.

C. Survey/IEE Study Completed Projects

= Kohalpur-Surkhet 132kV Transmission Line, 50
km

>  Ramechap(Garjyang) —-Khimti132kV Transmission
Line, 30 km

=) Hapure-Tulsipur 132kV Transmission Line, 18 km

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

D. Feasibility Study Completed Projects

>  Gulmi-Arghakhanchi-Chanauta 132kV
Transmission Line, 110 km

> Karnali Corridor (Lamki-Upper Karnali) 132kV
Transmission Line, 6(0km

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

=) Surkhet-Dailekh-Jumla 132kV Transmission Line,
107 km

=) Kaligandaki-Gulmi (Jhimruk) 132kV Transmission
Line, 43 km

> Dhalkebar-Loharpatti 132kV Transmission
Line, 20 km

>  Baneshwor-Bhaktapur 132kV DC Under Ground
Cable Transmission Line, 12 km

>  Rupeni 132kV Substation

>  Shyaule 132/33kV Substation

E. Projects under Feasibility Study

> Budhganga-Umedi-Pahalwanpur 132kV
Transmission Line, 75km

> Butwal (Gorusinge)-Lumbini 132kV Transmission
Line

~> Kusaha-Biratnagar 132kV Transmission Line

F. Projects for Power Supply to Cement
Industries

Government of Nepal has taken policy of developing
transmission line and road networks up to the site to
promote cement industries. A minute of understanding
was signed between Ministry of Industry (Mol) and NEA.
According to the understanding NEA will execute the
transmission line project as per the instruction of Mol
which in turn will provide required funds. Projects aimed
for power supply to cement industries at different stages
of implementation are as follows:

1. Kusum - Hapure 132kV Transmission Line
The main objective of this project is to develop
transmission system up to the site of Dang Cement

30 miNepal Electricity Authority

Industries to be established at Hapure of Dang. Further
extension of this line will benefit Sonapur and Rolpa
Cements. The project started in FY 2008/09 with an
estimated cost of NRs. 500 million and is financed by
GoN.

Hapure 132/33kV, 30MVA Substation

The main activities of this project covers: construction
of 22 km Kusum-Hapure 132 kV transmission line and
132/33kV, 30 MVA Substation at Panchakule of Dang.
Project achievement till date includes: construction of
42 nos. of towers foundation and Substation except the
installation of OLTE, Field testing & commissioning of
S/S, land acquisition for towers, agreement with forest
department for Row clearance and delivery of OPGW,
ACSR bear conductor including insulator and hardware
fittings at site. The arrival of towers is in progress. The
construction of transmission line is likely to be completed
in FY 2070/071.

2. Mirchaiya-Katari 132kV Transmission Line

The objective of this project is to provide power supply
to Maruti Cement Industry to be established at Katari.
Cost of this project is estimated to NRs. 374 Million and
funded by GON. The project is scheduled to be completed
by 2072/073 (2015/016).

Project components includes construction of 132/33
kV, 30 MVA substations at Mirchaiya. For this purpose
one circuit of existing Dhalkebar - Lahan 132kV line
will be looped-in and looped-out at Mirchaiya in Siraha
district to extend the 132kV transmission line to Katari.

As of Ashadh 2071, civilconstruction work is completed,
substation equipments are in process to receive at site.

3. Lamahi-Ghorahi 132kV Transmission Line

The objective of this project is to provide power supply
to Ghorahi Cement Industry and Ghorahi Municipality.
Cost of this project is estimated to US$ 6.5 Million and
GoN through Ministry of Finance allocated budget for
this work. The project is scheduled to be completed by
FY 2072/073 (2015/016). Project components includes
construction of 15 km 132 kV transmission line from
existing Lamahi Substation to Laxmipur VDC Goglee
and construction of 132/33 kV, 30 MVA substations at
Laxmipur VDC Goglee.

A YEAR IN REVIEW-

As of Ashadh 2071, Land acquisition for the substation
construction concluded, tender has been called for the
civil construction work. Substation equipment design/
manufacturing work completed and is about to receive
at site. Forest Field Data Collection work completed for
Transmission Line Right of Way, proposal sent to Forest
Department for approval.

4. Matatirtha-Naubise 33kV Transmission Line

The objective of this project is to provide power supply
to United Cement. GoN through Ministry of Finance
allocated budget for this work. Cost of this project is
estimated to US$ 2.5 Million. The project is scheduled
to be completed by FY 2072/073(2015/016). Project
component includes construction of 25km of 33kV
Double circuit sub transmission line from Matatirtha to
Naubise, 33/11kV, 8MVA Substation at Naubise.

As of Ashadh 2071, substation construction work is in
progress, tender is called for 33kV sub transmission line
construction.

5. Matatirtha- Malta 33kV Transmission Line

The objective of this project is to provide power supply
to Laxmi Cement.Cost of this project is estimated to
US$ 2.2 Million and GoN through Ministry of Finance
allocated budget for this work. The project is scheduled
to be completed by FY 2072/072 (2015/016). Project
component includes construction of 30km of 33kV
Double circuit sub transmission line from Matatirtha to
Malta, 33/11kV, 2X16.5MVA Substation at Malta.

As of Asadh 2071, substation construction work is in
progress, tender is called for 33kV sub transmission line
construction.

6. Tulsipur-Kapurkot 33kV Transmission Line

The objective of this project is to provide power supply
to Rolpa Cement P. Ltd. Cost of this project is estimated
to US$ 1.7 Million and GoN through Ministry of Finance
allocated budget for this work. The project is scheduled
to be completed by FY 2072/073(2015/016).

As of Ashadh 2071, construction of 16 km of 33kV
transmission line from tapping point at Tulsipur
substation (Salyan) up to the proposed substation
construction site at Kapurkot is in progress. Estimate
preparation for 33/11kV substation at Koilachaur is in
the process.

IV. Major Transmission Projects 220 kV

A. Projects under Execution

1.Khimti — Dhalkebar 220 kV Transmission Line

The project was started in 2059/60 with the objective
of enhancing transmission capacity, improving supply
reliability, reducing losses and voltage drop through
construction of 220kV double circuit line and is
scheduled to be completed in 2071/72 (2014/015). The

project cost is estimated at US$ 28 Million and is jointly
funded by World Bank, GoN and NEA.

The scope of the project includes construction of 75
km long Khimti-Dhalkebar 220kV transmission line on
double circuit tower with single circuit of twin Bison
ACSR conductor (initially charged at 132kV) and 132kV
line bays extension work at Khimti and Dhalkebar

Khimti-Dhalkebar 220k V Transmission Line

substations in the first phase and stringing of second
circuit in the second phase.

As of Ashadh 2071, 100% Substation equipment supply
was completed. Bay extension work at Dhalkebar and
Khimti was completed. Stringing of the second circuit is in
progress. Out of 188 no. of Tower Pad Foundations, 181
foundations were completed. 178 no. of Tower Erection
was completed. 65km out of 73km conductor stringing
was completed. Construction work is interrupted due to
right of way compensation dispute at Sindhuli.

2. Hetauda - Bharatpur 220kV Transmission Line

The objective of the projectis to enhance the transmission
capacity and reliability of the Integrated Nepal Power
System (INPS), to evacuate the power to be generated
by other hydro power plants from western region of
Nepal. Cost of this project is estimated to US$ 24.25
Million and funded jointly by loan assistance of WB, GoN
and NEA. The project is started in 2009 and scheduled to
be completed by 2071/072 (2014/015).

Construction of about 75 km long double circuit
Hetauda-Bharatpur transmission line initially to be string
single circuit 220kV transmission line and associated
132kV substations are being taken. The substations
component includes expansion of existing Hetauda and
Bardghat substations and construction of New Hetauda
and New Bharatpur substations.

As of Ashadh 2071, almost all transmission line
construction materials received at site, Out of 226
towers 86 towers foundation is completed, 33 towers
erection completed. Right of way clearance work and
land acquisition for tower footing are in progress. Civil
Nepal Electricity Authority m™ 31

A YEAR IN REVIEW-

works for New Hetauda and Bharatpur substations are
near to completion, substation equipments for both
substations receive at site and installation works are in
progress.

3. Bharatpur - Bardghat 220kV Transmission Line
The objective of the projectis to enhance the transmission
capacity and reliability of the Integrated Nepal Power
System (INPS) and to evacuate the power to be generated
by other hydro power plants from western region of
Nepal. Cost of this project is estimated to US$ 17 Million
and funded jointly by loan assistance of WB, GoN and
NEA. The project is started in 2009 and scheduled to be
completed by the beginning of 2072/073 (2015/016).
The project comprises of construction of approx. 74 km
long double circuit 220 kV line connecting New-Bharatpur
substation (under construction) and existing Bardaghat
substation using ACSR "Bison" duplex conductors. 220
kV lines shall be initially energized at 132 kV.

As of Ashadh 2071, 98 % of the transmission line
construction materials have been received at site, forest
clearance along the alignment is underway.

B. Funding Secured Projects

1. Tamakoshi -Kathmandu 220/400kV Transmission Line
Objective of this project is to increase power evacuation
capacity of theTransmission Line to evacuate IPP's
upcoming projects in the Khimti, Tamakoshi & Sunkoshi
basin and also increase reliability of cross border
transmission. Project will construct about 100km of
Double Circuit 400 kV Transmission Line but initially
charged at 220kV with 220/132/11kV Substations at
Barhabise and Mulpani (Kathmandu). Cost of this project
is estimated to be US$100 Million and jointly funded by
ADB, Norway and GoN. The project is scheduled to be
completed by 2074/075 (2017/018).

As of Ashadh 2071, re-survey work at 400 kV voltage
level has been completed for New Khimti to Barhabise
section and from Barhabise to Mulpani (Kathmandu) is
about to start. ToR for IEE study has been sent to the
Ministry for approval. Evaluation for appointment of
Project Management Consultant has been completed,
concurrence from ADB has already been received and
waiting for approval from NEA Board for Contract
negotiation. Land Selection work at Kathmandu and
Barhabise for Substation Construction is undergoing and
land acquisition is expected to be completed in coming
fiscal year.

2. Marsyangdi Corridor 220kV Transmission Line
Project
Marsyangdi Corridor 220 KV Transmission Line Project
has been envisaged to evacuate approximately 1000
MW of power generated by different hydropower
stations coming on Marsyangdi Corridor. Project will
32 miNepal Electricity Authority

construct 115 km long Double Circuit Transmission Line
from Manag (Dharapani) to Khudi HUB (32km), Khudi
to Markichok (53km),Markichok to Bharatpur (30km)
and 220/132/33kV substations at Dharapani, Khudi,
Udipur, Markichok and bay extension at Bharatpur
Substation. Cost of this Project is estimated to be US$
100 Million which is to be funded by ADB and GoN. The
Project is started in 2065/066 (2008/09) and expected
to be completed on 2075/076 (2018/019).

As of Ashadh 2071, field reconnaissance survey
completed with AP location confirmation for Khudi-
Markichowk section, Survey License for 220 kV voltage
level from Manang-Khudi-Udipur-Markichowk-Bharatput
is expected soon. EIA TOR shall be finalized soon once
the DoED will issue License from Manang to Bharatput.
Land acquisition for Substation Construction at
Khudi and Markichowk has been completed. Udipur
substation shall be constructed at land owned by NEA at
Phaliyasangu, Dalal and bay extension at Bharatpur shall
be done at existing land of new Bharatpur substation at
Aptari.

3. Marsyangdi-Kathmandu 220kV Transmission Line
Project

Objective of this project is to increase power evacuation
capacity of the Marsyangdi Corridor and INPS system
reinforcement. Cost of this project is estimated to US$
37.93 Million and jointly funded by ADB and GON.
Project will construct 220kV DC, 85 (km TL from New
Marsyangdi (Markichok) to Matatirtha and 220/132kV
substation at Matatirtha, bay extension work at New
Marsyangdi (Markichok) substation. The project is
started in 2066/067 (2009/010) and expected to be
completed on 2073/074 (2016/01 7).

As of Ashadh 2071, detail re-survey of the transmission
route is undergoing as previous survey was completed
four years ago and some parts of the route has to
be realigned because of settlements and physical
developments. EIA study is in final stage, land acquisition
for 220kV substation expansion at Markichwok has been
completed and for Matatirtha substation acquisition
process Is undergoing.

4. Kaligandaki Corridor 220kV Transmission Line
Project.
Objective of this project is to increase power evacuation
capacity of the IPP's up coming in the Kaligandaki
Corridor. Cost of this project is estimated to US$ 182
Million and jointly funded by ADB and GON. The project
is started in 2066/067 (2009/10) and expected to be
completed on 2073/074 (2016/017) Project include
construction of 38.2km DC 220kV line from Dana to
KusmaHUB, 71.7km DC 220kV from Kusma HUB to
New Butwal S/S, 45km DC 400kV from New Butwal

A YEAR IN REVIEW-

to Bardghat and 220/132/33kV substations at Dana,
Kusma, New Butwal and Bardghat.

As of Ashadh 2071, details survey work for Kusma-New
Butwal section is completed, re-survey work in 220kV
voltage level for Dana-Kusma section is completed, New
Butwal-Bardghat section is yet to be done, IEE study
report for Dana-Kusma section submitted to Ministry
of Energy for approval. Land acquisition for Dana
substation is completed, for Kusma substation, process
is in progress. Survey License for total Kaligandaki
Corridor renew process started.

5. Koshi 220kV Transmission Corridor

Objective of this project is to increase power evacuation
capacity of generating stations coming in the Koshi
Corridor and expansion of INPS. This project comprises of
two components. Main output of the project component
1 is construction of about 110 km of 220kV Double
Circuit Transmission Line from Khandbari to Baneshwor
to Basantapur to Inaruwa and 220/132/33kV new
substations at Khandbari, Baneshwor, Basantapur.

Construction of about 33km of 220kV double circuit
Transmission Line from Change (Taplejung) to
Basantapur (Terhathum) and 220/132/33kV Substation
at Change will be taken as component 2. The total cost
of this project is estimated to 110 MUSD (90 MUSD
from Exim Bank of India and rest by GoN) and jointly
funded by Exim Bank of India and GoN. The project
is started in 2065/066 (2008/09) and scheduled
to be completed by FY 2075/076 (2018/019) for
Inaruwa-Basantapur-Baneshwor-Khandbari section
& Basantapur -Change section by FY 2076/077
(2019/020).

As of Ashadh 2071, Exim Bank of India has approved the
project; subsidiary loan agreement yet to be signed with
GON, appointment of project management consultant is
concluded, Detail Survey from Inaruwa to Basantapur to
Khadbari and from Basantapur to Change Completed, IEE
Report of Inaruwa-Basantapur-Khadbari transmission
line approved by Ministry of Energy, substation land
acquisition for Khandbari, Baneshwor and Basantapur
concluded, for Change it is in the process.

6.  Chilime-Trishuli
Project
Objective of this project is to increase power evacuation
capacity of the IPP's up coming in the Chilime, Trishuli
basin. Project includes construction of 220kV, 30 km
double circuit Chilime to Trishuli 3B substation and
220/132kV substation at Chilime. Cost of this project
is estimated to US$ 35.0 Million and jointly funded by
EIB, KFW and GoN. Project started at FY 067/68 and

3B 220kV Transmission Line

expected to be completed by FY 2073/0074 (2016/017).
As of Ashadh 2071, Detail Survey work for 220kV
Voltage Level has been completed, MoU has been
signed for IEE Study and ToR/Scoping report for the
work submitted to Ministry has been approved, Contract
has been signed with M/S Lahmeyer International for
feasibility study; which is in final stage. Land acquisition
process for substation at Chilime is also in final stage.

7.  Trishuli 3B HUB 220kV Substation Project

Objective of this project is to increase power evacuation
capacity of the IPP's up coming in the Chilime, Trishuli
basin. Project includes construction of 220/132/33kV
Hub substation at Manakamana VDC of Nuwakot
District. Cost of this project is estimated to be US$ 22.9
Million and jointly funded by EIB, KFW and GoN. Project is
expected to be completed by FY 2073/074 (2016/01 7).

As of Ashadh 2071, Detail Survey work and
Environmental study have been completed, Consultant
for Detail Feasibility, M/S Lahmeyer International
submitted the draft Report of feasibility study; final
report is under process. Land acquisition process has
been completed.

C. Survey/ IEE Study Completed Projects
Lekhnath-Damauli 220kV Transmission Line, 45 km

V. Major Transmission Line Projects, 400kV
A. Projects under Execution
1.  Nepal-India Electricity Transmission and Trade
Project (NIETTP) Hetauda- Dhalkebar - Duhabi
400kV Transmission Line
The objective of this World Bank funded project is to
establish cross-border transmission capacity of about
1000 MW to facilitate electricity trade between India
and Nepal and increase the supply of electricity in
Nepal by the sustainable import of at least 150 MW
of electricity. The project includes construction of
approximately 285 km of 400kV double-circuit Hetauda
- Dhalkebar-Inaruwa transmission line, together with
concomitant substations. Synchronized operation of the
Nepal and Indian grids is another major objective of this
project.

As of Ashadh 2071, detailed route survey has already
been completed for whole line while check survey of
about 194 km has been completed so far. Preparation
of plan profile, soil resistivity test are in progress.
Tower foundation work is completed at 50 locations
and is ongoing at other places. The contract agreement
for supply of conductor, earth-wire and OPGW and
construction of substations at Hetauda, Dhalkebar and
Inaruwa has been signed. Likewise, the evaluation of
transformers/reactors" is in final stage. EDF France

Nepal Electricity Authority m@ 33

A YEAR IN REVIEW-

has been appointed as consultant for transmission
system master plan study, which is under progress. The
consultancy service is functioning satisfactorily. Hot
spot study has also been completed.

B. Feasibility Study Completed Projects
>  Hetauda-Butwal 400kV Transmission Line, 168
km

Butwal-Lamki 400kV Transmission Line, 300 km
Lamki-Mahendranagar 40O0kV Transmission Line,
102 km

Duhabi-Anarmani 400kV Transmission Line, 100
km

Survey/ IEE Study Completed Projects
Butwal- Sunauli 400 kV Tr. Line

Duhabi-Jogbani 400 kV Tr. Line

00

Projects under Feasibility Study
Bardghat-Gorakhpur 400kV 2™ Cross Border
Transmission Line
Mulpani-Naubise-Hetauda400OkV Transmission
Line

> NewkKhimti- Okhaldhunga -Dhalkebar 400kV
Transmission Line

७० ७०७८ ७।$।

VI. Power Development Project - Part C
Power development project (PDP) was_ originally
approved by the World Bank board on May 22, 2003 for
SDR 55.2 million. It had three components, and Power
Development Project implemented by Nepal Electricity
Authority (NEA) is one of them. Additional finance was
provided on May 26, 2009 to further enhance NEA
components, taking the total project amount to SDR
60.1 million. These funds were provided to address the
prevailing power crisis in Nepal through rehabilitation of
generation capacity, strengthening of the transmission
system, and expansion of distribution access.

Original NEA component includes Chandranigahapur
System Reinforcement Project, Distribution and Rural
Electrification Project, Khimti-Dhalkebar 220 kV
transmission line project and Institutional strengthening
project. At the time of restructuring, Hetauda Bharatpur
220kV Transmission Line Project, Distribution system
rehabilitation project and Institutional strengthening
project (Il phase) were started. Similarly under additional
financing following activities were included: Hetauda
diesel rehabilitation project, Kaligandaki-A HEP
rehabilitation project, Duhabi Multifuel power plant
rehabilitation project, Bharatpur Bardaghat 220kV
transmission line project, Pathlaiya 132kV substation
project, Kathmandu valley' distribution system

34 miNepal Electricity Authority

strengthening project, implementation of the integrated
financial management information system (IFMIS) and
conductor procurement for Hetauda-Dhalkebar-Duhabi
(HDD) line. The conductor procurement for HDD
line was included under the PDP in January 2011 to
achieve financial closure of the Nepal-India Electricity
Transmission and Trade Project (NIETTP). However, it
could not be materialized under PDP funding. Instead, It
is now proposed as additional funding under NIETTP.

Chandranigahapur system reinforcement project
and Distribution and Rural Electrification Projects are
now complete. However, Khimti-Dhalkebar 220kv
transmission line project is only 95% complete. Some
of the local problems in the area have delayed progress
to be made in Khimti-Dhalkebar 220 kV transmission
line. Similarly, the Distribution System Rehabilitation
Project, Hetauda diesel rehabilitation project, Duhabi
multifuel power plant rehabilitation project and Pathlaiya
132kV substation projects are complete. However, the
Hetauda-Bharatpur 220kV transmission line project has
been significantly affected due to rerouting and delays
in forest clearance. The forest clearance has now been
received and the contractor is trying to expedite the
work. A substantial proportion of the activity has been
extended beyond the loan closing date, i.e. December
31,2013. Similarly, having taken more time in securing
Forest Clearance approval from the Ministry of Forest,
implementation of  Bharatpur-Bardaghat 220kV
transmission line project has been extended beyond the
loan closing period.

Further, the following three activities are cancelled
from PDP: (1) Conductor for Hetauda-Dhalkebar-Duhabi
line, (2) Rehabilitation of Kaligandaki-A plant and (3)
Implementation of the Integrated Financial Management
Information System (IFMIS) and procurement of System
Integrator (SI). Funds for conductors, system integrator
for IFMIS and remaining part of Hetauda Bharatpur
220kV Line Project and Bharatpur Bardghat 220kV
transmission line projects have been allocated as an
additional financing under NIETTP.

The 144 MW Kaligandaki-A is the largest hydropower
plant in Nepal, providing nearly 22% of the electricity
supply. Although it is in urgent need for rehabilitation,
identification of technical solution has taken much
longer than originally anticipated. The World Bank has
already proposed funds for rehabilitation of Kaligandaki
— A Hydropower Plant as a stand alone project. While
the overall PDP project is closing on December 31, 2013,
the disbursement ratio currently remains at 90%.

Distribution and Consumer Services Directorate

NEA board made decision to change the various
business groups of NEA in to Directorates, as per which
the Distribution and Consumer Services (DCS) Business
Group was also changed to DCS Directorate (DCSD).
DCSDisresponsible for overall management of electricity
distribution services and networks of NEA. The major
activities of this directorate include planning, expansion,
operation, maintenance and rehabilitation of the
electricity distribution networks including substations up
to 33 kV voltage level and consumer services activities
such as new consumer connections, meter reading,
billing, and revenue collection. The directorate has

lately introduced some of the smart meter reading and
billing techniques as a pilot projects in the Kathmandu
valley with plans to introduce even better techniques
and expand them in the entire areas. The operation and
maintenance of off grid small hydro power plants in its
area, also falls under the jurisdiction of this directorate.
There are Planning and Technical Services Department
(PTSD) and Community Rural Electrification Department
(CRED) at the central level and eight regional offices to
manage the overall distribution and consumer services
activities in more effective and efficient manner under
this directorate. During review period of FY 2013/14, it
was initially headed by the General Manager as a chief of
business group and subsequently by Deputy Managing
Director as a chief of DCSD. Under the directorate,
PTSD & CRED at the centre and eight regional offices are
headed by the Directors/chiefs.

DCSD is the largest directorate of NEA in terms of number
of employees and business activities. Approximately
67% of the total staff of NEA are employed in DCSD.

This is also on the forefront to earn revenue for sustaining
operation, maintenance and development activities of
NEA. DCSD is providing services to consumers through
its 90 Distribution Centers spread over the whole
country.

Performance Highlights

In FY 2013/14, total number of consumers under DCS
reached 2,712,633 an increase of 4.36 % over the last
fiscal year's figure. In comparison to the previous years,
less increase in consumer number in last fiscal year
was due to unavailability of energy meters. However,
it is expected to increase substantially once the energy

meters are available in the first quarter of the FY 2014/15.

No of con-
sumer
(% of total
consumers)

Consumer
Category

Similarly, in FY 2013/14, a total of 3413.76 GWh
of energy was sold earning a gross revenue of Rs

27392.84 Million, an increase of 8.10% and 8.03
over the previous year's energy sales and revenue
respectively. Industrial and Commercial consumer
categories combined together represent only 2.01% of
the total number of consumers but shared 43.93% of
total sales. Similarly, the domestic consumer category
represents 94.37% of total consumers and contributed
44.08% to the total sales.

Programs and Activities

The programs and activities of DCSD were hard hit in
FY 2013/14 due to unavailability of goods, specially
the distribution transformers and meters and metering
equipments due to ongoing rift on procurement practices.
However, it was resolved with relentless effort and
the goods are now expected for store delivery by the
first quarter of FY 2014/15, after which the consumer
services activities shall be smoothly run. DCSD took
special drives to expedite the activities for loss reduction,
metering & billing and decreasing amount receivables
from black listed consumers. An additional collection
of about Rs. 50 million and Rs. 43 million was made
from additional billing and collection from black listed
consumers respectively during the period of review. The
goods on stock were closely monitored which resulted
in substantial decrease in the stock material/amount. As
part of reinforcement and expansion of the distribution
systems, many programs, projects and the activities
are undertaken in FY 2013/14 to expand and improve
the service delivery. These programs and activities are
executed by the Departments at center and Regional

Offices.
Nepal Electricity Authority हा 35

A YEAR IN REVIEW-

Loss Reduction Activities

In FY 2013/14, special drives were initiated to reduce
the technical and non-technical losses. Feeder-wise
loss evaluation was continued and extra load shedding
hours were set for high loss prone feeders. This practice
was found substantially effective to bring down the
losses of such feeders. At the same time, distribution
centers were assigned loss targets to achieve within
the prescribed time frame. This was also linked with
the performance of concerned distribution center chief
and a significant loss reduction was observed in many
areas. Special drives were initiated for monitoring and
supervision of overall DCS activities with priority for
loss reduction. Regular review meetings were organized
at the central as well as regional level. The special
efforts of the employees and the support of the various
governmental and nongovernmental institutions in
controlling non technical losses brought in good results.
The overall result towards loss reduction was found
to be encouraging during review period. The Business
Group carried out regular monitoring of the feeders and
areas having more than 30% energy loss. The activities
of the Loss Controlling Committee formed under the
chairmanship of Chief District Officer were effective
enough to reduce non-technical losses. The support
from local administration was commendable in some
districts as Kapilbastu and Chitawan. Loss Controlling
Committee at the center level issued directives to the
concerned offices to improve the loss situation. During
the FY 2013/14, a total of 32952 numbers of consumer
lines were disconnected from which Rs 413,570,000
was recovered. Similarly action was taken against 2147
consumers for electricity pilferage and Rs 15,461,000
was recovered from it. Regular monitoring, data
downloading and analysis of the large industrial and
commercial consumers were augmented.

Significant loss reduction was observed in many high
non technical loss prone areas by the use of Ariel Bundled
Conductor (ABC) cable. Upgrading of overloaded
conductors and transformers was also carried out to
reduce the non technical losses. As per NEA decision,
the electromechanical meters of the consumers of
capacity 25-50 kVA range continued to be replaced with
electronic (TOD) meters. Despite the adverse working
conditions at local levels, especially in terai and some
hilly areas, continued efforts and measures taken to
control losses brought fruitful results by bringing down
the distribution system losses to 17.92 % in this period.

Demand Side Management

With grant assistance from Asian Development Bank,
DCSD completed program to distribute 750,000 energy
saving CFL lamps in selected areas. Installation of

36 miNepal Electricity Authority

capacitor banks in Nepalgunj, Jaleshwor, Rajbiraj and
Tanki-Sinuwari substations resulted substantial voltage
improvement in the areas. The construction of 33/11 kV
Substations near load centers continued during review
period and majority of them are expected to complete
in FY 2014/15. This will substantially reduce the losses
in the feeder lines and improve reliability of electricity

supply.

Future Plans and Programs

As high system loss is a major challenge for NEA,
DCSD is trying to make every effort to bring down the
distribution system loss which contributes in substantial
proportion. It is also planning to improve the quality
of the services through the use of new technologies
and capacity building to meet the challenges of new
environment in utility business. Consumer complaints
shall be addressed without delay and the procedure for
new connection related works shall be made simple and
user friendly. DCSD is committed to establish centralized
customer care center to ensure single point of contact
for all consumer related activities, timely service, less
processing time for new connection and centralized
control and monitoring over the entire customer care
process. NEA is planning to implement Automatic Meter
Reading (AMR) system. Plans are to make available
the payment and billing information in internet so that
consumer can access information on line. A system will
be implemented for consumers to pay the electricity bill
either through bank or in NEA's revenue collection center.
Payment KIOSK shall be installed in major branches to
facilitate bill payment outside office hours.

Safety is one of the aspects where DCSD is entrusting
major priority. In this regard, not only the NEA
employees, public awareness 15 also important. For this
the directorate is giving priority for people's awareness

Fi पंशा सामाजिक eae

W088 peace 4
विुतैत azn तथा mae रहेता छ

People's awareness campaign towards electrical safety organized in

Chitwan district by Jagatpur-Madi 33 kV line project

for electrical safety, right from the implementation of the
project.

Various programs and activities under DCSD are executed
by the Departments at center and Regional Offices.

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

Some glimpses of the major activities undertaken are
presented below in subsequent headings.

Planning and Technical Services Department

The Planning and Technical Services Department (PTSD)

is responsible for planning and preparation of distribution

system expansion programs and supporting DCSD in the

technical and commercial matters. The department is

trying to introduce distribution planning first time in NEA

with the help of the World Bank. Major works under this

department include-

> = Identification of potential rural electrification and
substation rehabilitation projects and implement
them

>  Programming/re-programming, data download
and analysis of TOD energy meters & metering
equipments

> Monitoring and evaluation of region wise monthly
distribution system losses. Assist to identify
and implement programs for loss reduction in
distribution systems

2 Initiate modern facilities for the electricity
consumers in the field of meter reading, billing and
revenue collection

5 Plans to execute distribution planning incorporating
demand side management and loss reduction as an
integral part of it

Ninety collection centers have computerized billing
system till date and plans are to extend it to all with
modern facilities in the coming years. The Computerized
Billing Division under PTSD has plans to cover entire
distribution centers within Kathmandu valley with
'Any Branch Payment System'. With addition of four
collection centers in FY 2013/14, all distribution centers
in the valley, except Maharajgunj, Thimi and Bhaktapur,
have facility of 'Any Branch Payment System' till date.
The department is also implementing AMR for high
valued consumers and study are under way to introduce
SMS billing as well.

Energy Monitoring and _ Auditing of
Distribution Substations

Under the program, static energy meters were installed
at distribution substations to measure the amount of
energy delivered by the substations enhancing the
energy accountability. The Planning and Technical
Services Department co-operated with Grid Operation
Department to install ToD meters in various grid
substations. The static meters installed at different
substations were downloaded to check and verify the
data. The program for installation of Bulk Supply Meters
and the Metering Unit was also continued in FY 2013/14.

The energy monitoring and audit was also augmented
verifying the data with concerned transmission grid and
generation units.

Project Highlights
1. Energy Access and Efficiency
Improvement Project

This project is being implemented under ADB loan/grant.
The various subprojects under this are as follows.

Project for Energy Efficiency through Loss Reduction
This project has been started with the objective of
reducing technical losses in the distribution networks
of Kathmandu valley and Birgunj Simara corridor. This
project is jointly financed by Asian Development Bank
(ADB), GoN and NEA. The project has identified 27
distribution feeders with unacceptable high loss in
Kathmandu valley and Birgunj where rehabilitation is
required. The scope of this project includes upgradation
of 462 Nos of Distribution Transformers (100, 200 and
300 kVA), replacement of 214 Km of overhead 11 kV
undersized ACSR conductor with 120 sq.mm. XLPE
Covered Conductor, use of 35 Km of 300 sq.mm. 11 kV
Underground Power Cable and 401 Km of 95 sq.mm.
LV ABC Cable. Major Line material for this project are
received, check survey is completed and installation
work is initiated. The project is scheduled to complete in
FY 2014/15.

Distribution System Augmentation Project

This project is jointly financed by Asian Development
Bank (ADB), GON and NEA. The scope of the project
includes:

i) Construction of new 33/11 kV, 6/8 MVA substation
Mirchaiya,

at Baniyani, Dhanushadham,  Paraul,

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Construction Works of 33 kV S/S at Mirchaiya of Siraha district

Barhathawa, Banskot, Kushma, Mainapokhar and 11 kV
switching station in Mirmi, Swoyambhu & Mulpani; and
(ii) Construction of 95 km of 33 kV and 156 km of 11 kV

Nepal Electricity Authority हा 37

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

12 kV Indoor switchgears installed at Barhathawa substation in Sarlahi district

lines in the vicinity of substation area.
The construction of substations and interconnection
feeders is expected to complete in FY 2014/15.

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

This project is run under ADB Grant and aims to install
solar powered street lighting systems in some parts
of five municipalities of the Kathmandu valley. This
project's scope also includes installing 100 kWp and
60 kWp Grid-tied PV solar power systems in NEA
Training Centre, Kharipati and Bir Hospital, Kathmandu
respectively. Solar street light project will facilitate the
promotion of solar powered street lighting in important
places of Kathmandu valley. For the successful
implementation of this project, an advisory committee
comprising of representatives from Ministry of Federal
Affairs and Local Development and members from other
stake holders has been set up. The project includes
purchase of solar powered street- lighting system,
replacement /installation and setting up a system to
ensure a smooth maintenance. Around 1000 sets of
solar street lamps will be installed which will reduce
peak demand by 0.2 MW and save about 700 MWh per
year. Two contracts have been signed for supply and
installation of solar street lights and one for PV Grid tied
solar systems and the project is expected to complete by
FY 2014/15.

Energy Efficiency in lighting (CFL) Project

NEA had launched the pilot CFL distribution program in
21 locations of the country successfully in the past and
was found to be effective to save energy and create
awareness among consumers towards use of it. It
encouraged NEA to design and implement additional CFL
distribution program in other parts of the country.

Under this project, around 7,50,000 high quality CFLs
with a capacity of 14W were distributed. The execution

38 miNepal Electricity Authority

of the program has been completed in march 2014. The
objective of this program is to reduce annual energy
consumption by 23 GWh. About 450,000 residential
customers benefited from this program. The project is
financed by ADB & GoN.

Pilot Project for Public Private Partnership in Distribution
System

This project is jointly financed by ADB and GoN. The
project aims at enhancing the quality of service delivery
and overall efficiency through Public Private Partnership
program in the sector of electricity distribution. The
scope of the project includes procurement of the
consulting services for the implementation of Public
Private Partnership in three distribution centers of
NEA. The consultants have submitted draft bidding
document and franchisee agreement which will be used
in implementing PPP in distribution. The consultant has
shortlisted the distribution centers for implementation.

Expanded Electricity Distribution Project

This is one of the components of Electricity Transmission
Expansion and Supply Improvement Project financed by
ADB under Loan No. 2808-NEP (SF). The scope of project
which is divided into three lots comprises of up-gradation
of substations at Gaur, Nijgarh, Chandragadhi, Jare,
Belbari, Parasi, Gorkha, Krishnanagar, Taulihawa,
Amuwa, Gaddhachauki & Mirmi and development of 11
& 0.4 kV network in the affected area along the proposed
Tamakoshi- Kathmandu 400 kV Transmission Line. The
total cost of this project is USD 9.5 Million. The contract
agreement for all the three lots has been signed and the
project is scheduled to be completed by 2015/016.

2. Computerized Billing and Networking
Division

The objective of this Division is to implement a common
billing system in all the revenue collection centers of NEA
for improved billing and revenue collection processes in
a modern, efficient and cost effective manner. M-Power
Billing system has provided NEA with a wider and more
sophisticated array of functions and features that
would enhance the billing efficiency and provide greater
visibility into the entire process chain.

M-power Billing System is in operation in 90 collection
centers which covers more than 50% of the total
consumers and covers 70% of the total NEA revenue.
Handheld Meter Reading Device (HHD) has also been
implemented which is in operation in 55 different
collection centers. This has helped reduce human errors
during meter reading. Further, this division plans to
implement Mpower billing system and Handheld Meter
Reading Device in additional 15 collection centers within
this Fiscal Year. This division also has plans to implement
Handheld Meter Reading Device for TOD (Time of Day)
Consumers.

A YEAR IN REVIEW-

Any Branch Payment System (ABPS) 95 been
implemented in 8 different revenue collection centers
inside Kathmandu valley (Ratnapark DC, Naxal Sub
Branch, Baneshwor DC, Chabahil Sub Branch, Kuleshwor
DC, Balaju Sub Branch, Lagankhel DC and Pulchowk DC)
which has helped the customers to pay their bill in any
of the above locations with ease. This system will also
help NEA to collect revenue and get analytical reports on
time.

The replacement of One Month Delay Billing System
(PSICOBS) to Mpower (Spot) Billing System has been
successfully implemented in 6 locations (Balaju Sub
Branch, Kirtipur DC, Nayamill Sub Branch, Nepalgunj DC,
Biratnagar DC and Bhairawa DC) in the review period.
This has also increased the revenue of NEA for that Fiscal
Year. This division plans to complete the replacement of
the PSICOBS/RAAS system to Mpower system in the
remaining Distribution Centers (Birgunj DC, Janakpur
DC, Bhaktapur DC, Kalaiya DC and Rajbiraj DC) within
this Fiscal Year.

Automatic Meter Reading is 5 technology of
automatically collecting consumption, diagnostic, and
status of electronic energy meter (TOD) and transferring
that data to a central database real-time for billing,
troubleshooting, and analyzing. This technology mainly
saves utility providers the expense of periodic trips to
each physical location to read a meter. Computerized
Billing and Network Division intends to implement this
system in 200 High Value (TOD) consumers as a pilot
project within Fiscal Year 2014/15.

Computerized Billing and Network Division willimplement
the Centralized Billing System of the collection centers
inside the Kathmandu valley within this Fiscal Year. For
this purpose a Billing Data Center shall be established.
A MIS based system with dashboard and snapshot
shall be established so that it will be easier for the top
management to access enterprise-wide billing, collection
and consumer related information with dashboards and
snapshots to get an overall operational view of NEA's
performance that will facilitate swifter decision making.

This division is also planning to implement third party
collections (banks and third party collection) so that it
will be easier for the customer to pay from any means
provided by the third parties.

Customized training programs were conducted to NEA
staff who have been operating with the billing system.
The division plans to conduct more training programs
to enhance the skill and knowledge of these staff for
smooth operation of the Mpower system.

3. Matatirtha Naubise 33 kV Transmission
Line Project

This project aims at supplying power to United Cement
Industry Pvt. Ltd. in Naubise, Dhading and existing NEA
consumers in its vicinity. The project will help to improve
the quality of supply and reduce the technical losses
of the area also. The scope of the project includes the
construction of 33/11 kV, 2*6/8 MVA substation along
with double circuit 13 km 33 kV line. The project was
started in FY 2009/10 with funds from infrastructure
development program of Ministry of Industry, GoN and
is scheduled to complete in FY 2014/15.

4. Matatirtha Malta 33 kV Transmission
Line Project

This project aims at supplying power to Laxmi Cement
Industry Pvt. Ltd. in Malta, Lalitpur and existing NEA
consumers in 15 vicinity. The project will help to
improve the quality of supply and reduce the technical
loses of the area also. The scope of the project includes
the construction of 33/11 kV, 10/13.3/16.6 MVA
substation along with double circuit 35 km 33 kV line.
The project was started in FY 2009/10 with funds
from infrastructure development program of Ministry
of Industry, GoN and is scheduled to complete in FY
2014/15.

5. Matatirtha Markhu 33 kV Transmission
Line Project

This project aims to meet the growing demand of
electricity in Kulekhai area of Makawanpur district and
its vicinity. The project will help to improve the quality
of supply and reduce the technical loses of the area. The
scope of the project includes the construction of 33/11
kV, 6/8 MVA substation along with single circuit 13
km 33 kV line. The project was started in FY 2009/10
with funds from GoN and is scheduled to complete in FY
2014/15.

6. Dhulabari 33 kV Substation Project

The project funded by GoN aims to meet the growing

दन eee 0) ना Oe ee र्न ' दि

Completed Dhulabari 33/11 kV, 6/8 MVA Substation

demand of electricity in Dhulabari area of Jhapa district
and its vicinity. The project will help to improve the
quality of supply and reduce the technical losses of the

Nepal Electricity Authority हा 39

A YEAR IN REVIEW-

area. The scope of the project includes the construction
of 33/11 kV, 6/8 MVA Substation with interconnection
facilities. The construction of Substation has been
completed and 4.5 km long 33 kV Sub Transmission Line
work is in progress and is scheduled to complete within
6 months.

7. Ramghat (Surkhet) 33 kV Substation
Project

The project funded by GoN aims to meet the growing
demand of electricity in Ramghat area of Surkhet
district along Surkhet-Jajarkot route. The scope of
the project includes the construction of 33/11 kV, 6/8
MVA Substation with interconnection facilities. The
construction of substation and Loop In Loop Out has
been completed and testing & Commissioning work is in
progress.

8. Buipa-Okhaldhunga 33 kV
Transmission Line Project
The scope of this project includes the construction
of 32.5 km of 33kV transmission line, 80 km of 11kV
and 80 km of LV distribution line and two 33/11kV,
1.5MVA substations one each at Khotang (Buipa) and
Okhaldhunga districts. Pre-commissioning and testing
of Buipa Substation has been completed. Construction
work at Okhaldhunga S/S is in progress; materials and
equipment have been delivered to the site, control
building constructed and civil construction is in its final
stage. Construction of 32.5 km of 33kV line, 62.9km of
11kV line and 22 km of LV distribution line and 17 nos.
of Transformers has been completed and construction
of remaining LV line is in progress. Buipa to Bakshila, a
major component of project has been almost completed.
Bakshila, one of the remote VDC and centre for
North-East region of Khotang has been electrified.

Since, 33kV line from Jaljale to Buipa is charged at
11kV, parallel 11kV line is being constructed to free
the existing 33kV line to feed the Buipa substation.
55.4 km of 11kV line has been constructed so far.
Also Buipa-Lamidanda-Bhadaure(Okhaldhunga district)
parallel 11kV line construction has been completed.
Maintenance of 33kV line from Jaljale to Buipa is almost
complete. The project is expected to complete in FY
2014/15.

9. Rasuwaghat-Khotang S/S and RE Project
Major works to be performed under this Project include
the construction of 14 km of 33kV transmission line, one
33/11kV 1.5 MVA capacity substation at Rasuwaghat
of Khotang district, 9Okm of 11kV and 90 km of LV
distribution line in Khotang and Udaypur district. Out
of these, 6 km of 33kV transmission line, 28.5km of
11kV line and 33km of LV distribution line construction

40 miNepal Electricity Authority

have been completed and 11nos. of distribution
transformer have been installed. 33kV Bay extension
at Jaljale substation has been completed. Construction
of remaining 4km 33kV line is in progress. Store cum
Quarter building has been constructed in Bagedhunga,
Khotang. 750OkVA transformer and accessories have
been received. 5km long parallel 11kV line construction
has been completed to free Rasuwaghat-Bagedhugna
33kV line. Polling works, line construction for rural
electrifications are in progress.

10. Bharatpur-Madi 33 KV
Sub-transmission Line & RE Project

This project is financed by the Govt. of Nepal (GoN)
and is being implemented for the electrification of Madi
area and its vicinity in Chitwan district. The scope of
the project includes construction of a 3 MVA, 33/11 kV
substation, 20 km of 33 kV overhead line, 8 km of 33 kV
underground Cable, 30 km of 11 kV line and 50 km of 0.4
kV line and installation of 24 distribution transformers.
The project will provide electricity to about 11,000
households of the area. The construction of substation
and U/G cable and Construction of 20 Km of 33 KV
overhead line has been almost complete. The project is
scheduled to be completed in FY 2014/15.

Besides, the 33/11 kV, 6/8 MVA each substations at
Parsa district and Chautara of Sindhupalchok district are
under different stages of construction. The aim of these
projects is to improve the quality of electricity supply in
the area and also to reduce the system losses.

Community and Rural Electrification Department

In order to expand the access of electricity services
to the rural areas on the demand driven approach,
the Government of Nepal (GoN) has brought forward
Community Rural Electrification Program (CREP) since
2003 which is being executed. NEA had established
a separate Department" COMMUNITY RURAL
ELECTRIFICATION DEPARTMENT (CRED)" to efficiently
conduct the Community Rural Electrification Program of
GoN in 2003. Later on in 2010, CRED was dissolved in
the process of restructuring of NEA and the activities of
CREP were carried out through eight Regional Offices.
However, the CREP activities were slowed down due to
lack of coordination at center and regional level. On this
background, CRED has been formed again in July 2013.

Under CREP, the GoN is contributing 90 % of the rural
electrification Cost through NEA and the Rural Electric
Community (REC) is required to contribute remaining
10 % of the cost. NEA sells bulk power to the RECs and
RECs are responsible for operation and management of
electricity distribution within the area. NEA provides
services up to 11 kV Line and the REC itself is responsible

A YEAR IN REVIEW-

for 400/230 Volt Line. NEA, Community and Rural
Electrification By-Law 2065 governs the activities of
NEA, REC and CREP.

Consumer friendly rural electrification program 15
becoming more effective to promote energy access,
consumer capacity building and livelihood development.
Community Rural Electrification Program(CREP) has
been playing an integral role in rural development,
empowering Rural Electric Community (REC) and to
alleviate Poverty. In the journey of 11 years, CREP has
achieved a major success of accessing electricity to
more than 360,000 households of 51 districts through
465 nos. of Different Community entities.

Despite of having many problems like insufficient human

resources and adolescent office itself, the performance

of newly re-born CRED evaluated as satisfactory in FY

2013/14. During review period, CRED initiated activities

to resolve setback old community rural electrification

contracts successfully and by the result hanged out

contracts were regularized and most of them were

completed in this year. CRED's major activities of the

year include:

> New NEA, Community and Rural Electrification
By-Law has been drafted by making the existing
CRE By-Law 2065 compatible to the motive of
re-formed CRED and addressing the problems
experienced in community rural electrification
program & operational activities. However, it is yet
to be submitted for approval.

> ४] together 17 community rural electrification
proposals including extension of existing
11/0.4-0.23 kV distribution network and
transformer upgrading of estimated cost of NRs.
314 Million has been approved. These proposals
comprise construction of 11 kV Line (3 wire) :
151.43 kM, 400/230 V. Line (4 wire): 104.35 km,
400/230 V. Line (Swire): 49.70 km, 400/230 V.
Line (2wire): 104.55 km and installation of total 60
numbers of 11/0.4 kV, distribution transformers (
25 kVA- 17 nos, 50 kVA - 16 nos. and 100 kVA
- 27 nos.) which will electrify to total 6500 nos. of
households.

=) Four numbers of Contracts were signed for the
electrification work in the distribution area
(Khaskushma of Banke Dist, Gadariya of Kailali
Dist, Fulkhang of Dhading Dist, and Memepokhari
of Lamjung Dist) of four new Rural Electric
Community (REC). Their approved proposal
amounted NRs. 200 Million. These electrification
work will be completed by the end of next fiscal
year 2014/15.

~> 305 have been invited for the electrification work

in the distribution area of six other RECs having
approved proposal of amount NRs. 80 Million.

=) In order to strengthen the operating capacity of
RECs, training for Linemen and Accountant was
conducted. 25 Linemen personnel and 25 Account
personnel were trained this year.

> Distribution system operation agreement of 82
nos. of RECs were renewed this year.

=) In order to bring uniformity in cost estimation of
rural electrification work, the major line materials
cost (Pole, Conductor, Insulator, Transformer and
Stay set etc) has been fixed.

2 Proposal of amount USD 26 Million has been
prepared and sent to Ministry of Finance through
Ministry of Energy seeking grant assistance
from GIZ for expansion of community rural
electrification, replacement of wooden poles by
Steel poles, improvement & strengthening of the
distribution network and capacity building of RECs.

> CRED has planned different activities in FY
29014/15 for meaningful and result oriented
implementation of CREP that will strengthen the
CRED and support the sustainability of the RECs
too.

Foremost activities planned for year 2014/15 are :

2 Finalize the New NEA, Community and Rural
Electrification By-Law.

> 'Prepare and maintain up to date database of RECs.
At this stage CRED does not have complete &
updated database of RECs like, number of RECs.
number of consumers served by the RECs, data of
11 kV Line, 400/230 volt Line and Transformers,
Energy consumed by RECs etc,. In the absence of
these data, the effectiveness of CREP is difficult to
evaluate. Renewal of Distribution system operation
agreement did a little help but the number of
renewal remained only about 40 % of actual RECs.

2 Replacement of Wooden pole by Steel pole and
re-strengthening the Distribution Network. Many
RECs having wooden pole in their distribution
network are on the verge of collapse due to their
inability of maintaining replacement cost of rotten
wooden pole. Around 5000 wooden poles of
different RECs are targeted to replace under CREP
in FY 2014/15.

> Move to IT. In coordination with IT Department of
NEA, a separate section for CRED will be formed
in NEA Web site where all the CRE related data,
documents, information, By-law, Directives,
Steering Committee's Decision including
Contract progresses will be uploaded which will
be informative to all the stakeholders and play a
positive role to accelerate CREP activity.

> Bring 216 RECs established by Kailai - Kanchanpur

Nepal Electricity Authority m@ 41

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

Rural Electrification Project (KKREP) under the
umbrella of NEA, Community Rural Electrification
By-law after clearance of their Index loan.

> Training to RECs. Technical, Financial,
Administrative and Managerial trainings will
be provided to the staffs and member of RECs
from Training Centre of NEA. Total 200 trainees
of different RECs will be benefitted in different
discipline.

Regional Offices

There are eight regional offices (ROs) under DCSD
located at Biratnagar, Janakpur, Hetauda, Kathmandu,
Pokhara, Butwal, Nepalgunj and Attariya. The functions
of operation, maintenance, and expansion of the
distribution system up to 33 kV voltage level and
consumer services such as new consumer connections,
meter reading, billing, and revenue collection are carried
out by Regional Offices. In addition, operation and
maintenance of off grid small hydro power plants also
falls under regional office's jurisdiction. Each regional
office is headed by a director/chief and reports to
the Deputy Managing Director. There is provision of
technical division headed by a Manager in each RO which
looks after the technical matters, rural electrification
activities and management of small hydro power plants.
The regional chief is also supported by account and
administrative sections in the related matters.

Loss Reduction Program

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

Review meeting being held at Butwal Regional Office

implemented in various distribution centers. Besides
review meetings were organized in each regional
office by a DCS central team to evaluate the overall
performance of the office.

42 mNepal Electricity Authority

Strict measures for electricity theft control as

confiscation of electric equipments and taking legal
action against culprits were also conducted in various
distribution centers with the help of local administration
and security agencies.

Electrical goods confiscated for illegal use of electricity at Belbari DC

Regional offices in co-ordination with DCSD and PTSD,

implemented extensive programs to avoid electricity

theft, manipulation meter and metering units which

mainly consisted of:

=) Installation of tamper proof meter enclosures and
refurbishment of metering facilities

> Implementation of meter and meter enclosure seal
management system to avoid tampering.

=) Replacement of electro-mechanical meters by
programmable poly phase electronic meters and
replacement of unmatched current transformers
to eliminate possible errors in multi plying factor.

Meter resealing being done at Ramechhap DC

meter

2 Investigations on_ illicit tapings and
tempering

Meter testing: Bulk/ Ordinary supplies
Rehabilitation of meter cubicles
Replacement of bare conductor with ABC cables in

loss prone areas

6 6 6

NEA management made various decisions as 'Immediate
Action Plans' to improve its functioning. Among many,
this plan included regular inspection of Time-of-Day
(TOD) meters, data download and analysis to curb any
connection fault or manipulation. All regional offices and

A YEAR IN REVIEW-

distribution centers actively participated in this drive
which was found to be much effective.

Customer Care

Distribution centers work as interfaces between NEA
and its consumers. So, special efforts were taken to
improve the quality of service at the consumer interface
points. The employees took special efforts to serve our
valued consumers in more effective way. With the Queue
Management System at some of the cash collection
centers, difficulties encountered by the consumers in
queuing for making payments were minimized. Round
the clock no-light services have been implemented in
most of the urban no-light centers. These functions and
activities were carried out by all regional offices.

Concluding session of 'Interaction program on TOD meters'

organized for Regional Chiefs at NEAtraining center

The region wise performance under the review period
is summarized in Annex-1 and 2 below. Some of the
glimpses of the regional offices are presented here under.

Biratnagar Regional Office

Operational highlights

There are 14 Distribution Centers under Biratnagar
Regional Office (BRO) spread over Mechi and Koshi
zones. The distribution loss of BRO is 16.95%. Sales
contribution to NEA system of this RO is 13.85%. The
performance highlights of this regional office during
review period are as under.

Energy sales(MWH) —473121
Revenue (million) — Rs.3793.60
Numbers of consumers —475679

Project highlights
The major projects being implemented under this regional
office are as under.

Rake-Rabi-Chisapani 33 kV Transmission
Line Project

The project includes the construction of 25 km of 33 kV
line, 40 km of 11 kV line, 40 km of LV distribution line,
construction of 33/11 kV substation and 33 kV bay. Out
of which, 23 km of 33 kV line and 10 km of 11 kV line
has been constructed. Land for Switching Station at
Chamaite of Ranke has been already acquired while land
acquisition for Substation at Chisapani is still in process.

Tumlingtar-Dingla-Bhojpur 11 kV
Transmission Line Project

The project includes the construction of 30 km of 11
kV and 25 km of LV distribution line in Sankhuwasabha
and Bhojpur districts. The 11 kV and LV distribution line
as per project scope has been completed. Installation
of distribution transformers is not complete due to
unavailability. The project work is constrained due to
limited allocation of budget.

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

The project includes the construction of 50 km of 33
kV transmission line, 52 km of 11 kV line, 50 km of LV
distribution line and one 33/11 kV substation in Bhojpur
district. Construction of 33 kV transmission line and 33
kV Bay/Switching Substation have been completed and
are in operation. 23 kmof 11 kV line and 15 km of LV line
construction has been completed so far. Construction
of 33/11 kV, Substation at Bhojpur is in progress. The
project is scheduled to be completed by FY 2014/15.

Muga-Ghodetar-Bhojpur 11 kV
Transmission Line Project

The project started in FY 2010/11. Scope of works
includes 10 kmof 11 kV line and 10 km of LV distribution
line in different VDCs of Bhojpur district. Procurement of
Hardware, Insulators, ACSR Conductor has been made
and remaining portion of works is in progress.

Ranibas-Balardaha-Bhojpur 33 kV
Transmission Line

The project started in FY 2010/11. 33 64 km of kV
line survey has been completed in last fiscal year.
Construction of 33/11 Substation at Ghoretar of Ranibas
and 33 kV bay extension at Balardaha is to be done.

Piluwa 33/11 kV Substation Upgrading

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

Nepal Electricity Authority हा 43

A YEAR IN REVIEW-

and Panels has been made and completion of works is
scheduled to be finished by FY 2012/13.

llam-Phidim-Taplejung 33 kV Transmission
Line Project

The scope of the project includes the construction of
90 km of 33 kV transmission line in Fidim and Taplejung
district. Construction of 33/11 kV 1.5 MVA Substation
at Phidim and 33 kV Bay at llam Substation has been
completed. 83 km 33 kV line construction is complete.
Remaining 7 km of 33 kV line, construction of 3 MVA
substation at Taplejung and 33 kV Bay at Phidim
Substation is yet to be completed.

Bokhim Lekharka (Bhojpur) Electrification
Project

The project includes construction of 70 km of 11 kV line
and 100 km of LV line in Bokhim, Khawa, Sideshwor,
Gupteswor, Nagi, Lekharka, Gogane, Timma, Kot,
Chinamakhu and Annapurna VDC of Bhojpur district.
Erection of poles for 11 kV line is in progress. There was
no participation in tenders, though the bids were invited
twice in the last fiscal year. So, project work could not
be expedited.

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

The project includes construction of 27 km of 33 kV line,
50kmof11kVlineand 50 kmof LV lineindifferent V.D.C.
of Bhojpur district. Erection of 33 kV transmission line
has been completed. Construction of switching station
at Pakhribas and substation at Ghoretar of Ranibas is yet
to be commenced.

Other Projects

The following projects in the region are also in the various

stages of execution.

> Panchthar Distribution Substation Project

> Aathrai Sakrantibazar 33 kV Substation Project

> Bhedetar (Rajarani) 33/11 kV Transmission line
and Substation Project

> Chinpur Sitalpati 33 kV transmission line and
Substation Project

Janakpur Regional office
Operational highlights

There are 11 Distribution Centers under Janakpur
Regional Office (JRO) spread over Sagarmatha and
Janakpur zones. The distribution loss of JRO is 36.90%.
Sales contribution to NEA system from this RO is 8.53%.
The performance highlights of this regional office during
review period are as under.

Energy sales(MWH) —291360
44 mNepal Electricity Authority

Revenue (million) - Rs.2000.01
Numbers of consumers —390418

Project highlights
The major projects being implemented under this regional
office are as under.

Sangutar-Okhaldhunga33 KV Transmission
line project.

Major components of the project include the construction
of 40 km 33 kV line, 40 km 11 kV line, one 33 kV bay at
Sanghutar and 40 km LV distribution line. Pole erection
for 20 km of 33 kV line has been completed. Procurement
of 315 nos. of poles and 120 km of conductor with
hardware has been made during the period of review for
construction of 33 KV line and construction work Is in
progress.

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

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

Hetauda Regional Office

Operational highlights

There are 8 Distribution Centers under Hetauda Regional
Office (HRO) spread over Narayani zone. The distribution
loss of HRO is 16.55%. Sales contribution to NEA system
from this RO is 19.93%. The performance highlights of
this regional office during review period are as under.

Energy sales(MWH) -68041 4
Revenue (million) — Rs.5326.58
Numbers of consumers - 31 2361

Project highlights
The major projects being implemented under this regional
office are as under.

Chhatiwan 33/11 kV Project

The project scope includes construction of 33 kV line
from Hatia to Chhatiwan and construction of 6/8 MVA,
33/11 kV substation at Chhatiwan of Makawanpur

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

district. Land acquisition at Bhimsendamar of Chhatiwan
is completed in FY 2013/14. Project is scheduled to
complete in FY 2015/16.

Kathmandu Regional Office
Operational highlights

There are 17 Distribution Centers under Kathmandu
Regional Office (KRO) spread over Bagmati zone. The
distribution loss of KRO is 13.20%. Sales contribution to
NEA system from this RO is 27.91%. The performance
highlights of this regional office during review period are
as under.

Energy sales(MWH) -952922
Revenue (million) — Rs.8898.36
Numbers of consumers —562731

Project highlights
The major projects being implemented under this regional
office are as under.

Bijulikot Nagdaha Distribution line Project
The project includes construction of distribution system
in Bijulikot and Nagdaha VDC of Ramechhap district.
Construction work is in progress and is scheduled to be
completed by the end of FY 2014/15.

Kathajor VDC 1,4,5 Distribution line Project
The project includes construction of distribution system
in Kathajor VDC of Ramechhap district. Construction
work is in progress and is scheduled to be completed by
the end of FY 2014/15.

Saipu VDC 1,2 Distribution line Project

The project includes construction of distribution system
in Saipu VDC of Ramechhap district. Construction work
is in progress and is scheduled to be completed by the
end of FY 2014/15.

Kumari, Duipipal, Sunkhani, Talakhu,
Ghayangphedi Distribution line Project

The project includes construction of distribution system
in Kumari, Duipipal, Sunkhani, Talakhu, Ghayangphedi
VDCs of Nuwakot_ district. Construction work is in
progress and is scheduled to be completed by the end of
FY 2014/15.

Sano kimtang ma. Vi. Distribution line
Project

The project includes construction of distribution system
in sano kimtang of Nuwakot district. Construction work
is in progress and is scheduled to be completed by the
end of FY 2014/15.

Madankudari Makaibari Singati 33 kV
transmission line and Substation Project
The project includes construction of 33 kv line
from Madankudari to Makaibari and construction of
substation. Land acquisition is completed.

Line Re-alignment Due to Road Expansion
In Kathmandu

Extensive line re-alignment work is being implemented
in Kathmandu valley in the areas where road expansion

Old line being dismantled and new constructed due to road

expansion at Lazimpat

is taking place. Concerned distribution centers are
executing this work in co-operation with road department
and other concerned agencies. 220 km of 11kV and LV
distribution line is to be re-aligned. The work is to be
co-ordinated with other agencies also and is scheduled
to be completed in FY 2014/15.

Kathmandu Valley Distribution
Strengthening Project

Kathmandu Valley Distribution System Strengthening
Project is financed by the World Bank, International
Development Association (IDA) for the Nepal Power
Development Projects.

The main objective of this project is to strengthen and
rehabilitate/upgrade the existing distribution system of
eight (8) distribution centers of Kathmandu Valley. The
major works include (i) supply and installation of 100 km
of Covered conductor, 139 km of HV and around 600
km of LV ABC Cables (ii) supply and installation of 735
numbers of Distribution Transformers of various ratings
(iii) laying 34 km of underground XLPE power cable (iv)
supply and installation of Steel tubular and PSC poles
and (v) Dismantling of existing poles, transformers,

System

Nepal Electricity Authority हा 45

A YEAR IN REVIEW-

conductors and hardware.

The project covers following area:

Lot 1: Bhaktapur and Thimi Distribution Center

Lot 3: Baneshwor and Maharajganj and Jorpati
Distribution Center

Lot 4: Ratnapark, Kuleswor and Kirtipur Distribution
Center

The procurement of all items is completed. The
rehabilitation work is underway. Stringing of covered
conductor, LV ABC cables and laying of underground
XLPE cable is in progress. The project is expected to be
completed by FY 2014/15.

Pokhara Regional Office
Operational highlights

There are 10 Distribution Centers under Pokhara
Regional Office (PRO) spread over Dhaulagiri and
Gandaki zones. The distribution loss of PRO is 13.97%.
Sales contribution to NEA system from this RO is 5.65%.
The performance highlights of this regional office during
review period are as under.

Energy sales(MWH) - 193032
Revenue (million) — Rs.1545.89
Numbers of consumers —232037

Project highlights
The major projects being implemented under this regional
office are as under.

Udipur Substation Upgrading Project:
The project has been started from FY 067/068 to upgrade
the existing Udipur substation to 8 MVA capacity.
Upgrading work has been completed and upgraded
substation is in operation during period of review.

Udipur-Besisahar-Manang 33 kV
Transmission Line Project

The project includes the construction of 90 km of 33
kV transmission line, 53 km of 11 kV, 53 km of LV
distribution line and one 33/11 kV, 1.5 MVA substation
in Manang and 33 kV bay extension in the existing Udipur
substation. Out of 90 km long 33 kV transmission line,
pole erection for 70 km up to Danaque of Manang district
and stringing of conductor for 15 km up to Bulbule has
been completed. Land acquisition for Manang Substation
has been completed. Procurement of line materials
(Insulator & Hardwares) for 15 km of 33 kV transmission
line has been completed.

Galkot Substation Project

This project is being implemented to provide electric
supply to Galkot area in Baglung district. 33 KV Bay
extension at Baglung substation has been completed.

46 miNepal Electricity Authority

Land Acquisition for Sub-station construction at Galkot
has been completed. Civil work for land protection is
now in progress.

Other Projects

The following projects in the region are also in the various

stages of execution.

> Jomsom Lomatham Upallo Mustang 33 kV
Transmission Line Project

=) Beni Darbang Myagdi 33 kV Transmission Line
Project

> = Sindhubeshi-Lamjung-Lekhnath Kaligandaki 33 kV
Transmission Line Project

=) Righa Kharwang (Baglung) 33 kV Transmission
Line Project

Butwal Regional Office
Operational highlights

There are 9 Distribution Centers under Butwal Regional
Office (BuRO) spread over Lumbini zone. The distribution
loss of BuRO is 16.61. Sales contribution to NEA system
from this RO is 13.26%. The performance highlights of
this regional office during review period are as under.
Energy sales(MWH) —486833

Revenue (million) - Rs.3315.51

Numbers of consumers —349196

Project highlights
The major projects being implemented under this regional
office are as under.

Thada 33 kV Substation Project

The project scope includes construction of 22 km 33
kV line and 33/11 kV, 6/8 MVA substation at Thada,
Arghakhachi. Purchasing of land has been completed
for the construction of Thada Substation. Polling works
in about 10 km line length for 33 kV line is complete. The
project is scheduled to complete in FY 2016/17.

Bojhapokhari Nawalparasi 33 kV
Transmission Line Project

The project scope includes construction of 15 km 33
kV line, 10 km 11 kV line, 10 km of distribution line
and construction 33/11 kV, 6/8 MVA substation at
Bojhapokhari of Nawalparasi district. Polling works in
about 10 km line length for 33 kV line is complete. The
project is scheduled to complete in FY 2016/17.

Other Projects

The following projects in the region are also in the various
stages of execution.

>  Chandrauta-Maharajgunj (Kapilbastua) 33 kV

A YEAR IN REVIEW-

Transmission line and Substation Project
> Majua (Gulmi) 33 kV Substation Project
>  Amarai-Dohali-Wagla-Aglung(Gulmi)

Electrification Project
> Purkotdaha-MayalpokhariBajhakateri

Electrification Project

Nepalgunj Regional office
Operational highlights

There are 12 Distribution Centers under Nepalgunj
Regional Office (NRO) spread over Rapti, Bheri and
Karnali zones. The distribution loss of NRO is 17.13%.
Sales contribution to NEA system from this RO is 6.53%.
The performance highlights of this regional office during
review period are as under.

Energy sales(MWH) -222975

Revenue (million) - Rs.1692.53

Numbers of consumers —239924

Project highlights
The major projects being implemented under this regional
office are as under.

Surkhet Bijaura 33 kV Substation Project
The project scope includes construction of 30 km 33
kV line, 20 km 11 kV line and construction 33/11 kV
substation at Bijaura Surkhet. Land acquisition work
has been completed and procurement of goods and
installation of line is in progress. Civil construction as
compound wall is in progress.

Dang Bhalubang 33 kV Transmission Line
Project:

The project scope includes construction of 25 km 33
kV line, 10 km 11 kV line and construction 33/11 kV
substation at Bhalubang. Process has been initiated for
land acquisition

Rajapur 33 kV Substation Project

The project scope includes construction of 15 km 33
kV line, 10 km 11 kV line, 10 km of distribution line and
construction 33/11 kV substation at Rajapur, Project
work for the construction of Rajapur Substation is in
progress.

Sitalpati -Musikot 33 kV Transmission Line
Project

The project includes the construction of 50 km of 33
kV transmission line, 50 km of 11 kV line, 40 km of LV
distribution line and two 33/11 kV substations of 1.5
MIVA capacity one each at Sitalpati and Musikot. Out of
50 km long 33 kV transmission line, stringing of 34 km
line & pole erection has been completed. Construction
of 33/11 kV, 1.5 MVA substation at Sitalpati and 33 kV
bay extension at Tulsipur are in progress and expected

to be completed in FY 2014/15. Land acquisition for
Musikot Substation has been completed.

Chhinchu-Rakam-Jajarkot 33 kV
Transmission Line Project

The scope of the project consists of the construction of
70 km of 33 kV transmission line, 100 km of 11 kV, 100
km of LV distribution line and two 33/11 kV substations
at Surkhet and Jajarkot districts. Out of 70 km long
33 kV transmission line, pole erection and stringing of
conductor for 45 km and 11 km of 11 kV line has been
completed. Project work is in progress and expected to
be completed by FY 2014/15.

Ghorahi-Holeri 33 kV Transmission Line
Project

Scope of this project consists of the construction of 45
km of 33 kV transmission line, 50 km of 11 kV, 50 km
of LV distribution line and two 33/11 kV substations
at Holleri & Ghorahi. Construction of 45 km 33 kV
transmission line up to Holleri has been completed.
33/11 kV, 750 kVA sub-station at Holleri is now in
operation from FY 2013/14.

Dailekh Substation Project

The project includes the construction of 25 km of 33
kV, 15 km of 11kV, 10 km of LV distribution line & one
33/11 kV, 1.5 MVA substation at Dailekh and 33 kV
Bay extension at Surkhet. Construction of 33/11 kV,
1.5MVA sub-station at Dailekh and 33 kV bay extension
at Surkhet substation is almost complete. Project is
expected to complete in FY 2014/15.
Kapurkot-Koilachaur 33 kV Transmission Line Project

The project includes the construction of 15 km of 33 kV,
25 km of 11 kV, 25 km of LV distribution line in Salyan
& Rolpa districts & 6/8 MVA 33/11 kV substation at
Koilachaur & a switching substation at Kapurkot.
Construction of 33 kV transmission line from Kapurkot
to Kalachaur has been completed. Land acquisition for
substation construction has been completed. Tender for
construction of 6/8 MVA 33/11kV substation has been
invited and is in the process of evaluation.

Attariya Regional office

Operational highlights

There are 8 Distribution Centers under Attariya Regional
Office (ARO) spread over Mahakali and Seti zones. The
distribution loss of ARO is 17.72%. Sales contribution
to NEA system from this RO is 3.31%. The performance
highlights of this regional office during review period are
as under.

Energy sales(MWH) -11 3108
Revenue (million) — Rs.820.35
Numbers of consumers —150287
Nepal Electricity Authority हा 47

A YEAR IN REVIEW-

Project highlights
The major projects being implemented under this regional
office are as under.

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

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

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

The project includes the construction of 90 km of 33 kV,
40 km of 11 kV, 40 km of LV distribution line in Bajura
and Mugu district, 33/11 kV substations at Martadi and
33 kV Bay extension at Saphebagar. The project is facing
hurdles due to long route, difficult terrain and insufficient
budget allocation.
Saphebagar(Achham)-Martadi (Bajura)33
kV Transmission Line Project

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

48 mNepal Electricity Authority

Dadeldhura-Baitadi
Line Project

The scope of the project includes the construction of
14 km of 33 kV transmission line, 15 km of 11 kV &
LV distribution line, one 33/11 kV 3 MVA substation
at Baitadi and 33 kV bay extension in the existing
Dadeldhura substation. Construction of 33/11 kV,
3 MVA substation is complete and is in operation.
However construction of 11 kV feeder to fully utilize the
substation capacity is still left.

33 kV Transmission

Other Projects

The following projects in the region are also in the various

stages of execution.

5 Balanch-Khalanga 33 kV Transmission line Project

>  Pahalmanpur-Joshipur 33 kV Transmission line
and Substation Project

> Mauwa-Nagardaha (Doti) 33 kV Transmission line
and Substation Project

>  Sanphebagar-Chamara-Chautara 33 kV
Transmission line and Substation Project

>  Budhar-Jogbudha Bagarkot 33 kV Transmission
line and Substation Project

>  Chandani Substation Project

> Chaumala Substation Expansion Project

>  Dhangadi-Attaria Distribution
Reinforcement Project

> Mahendranagar Distribution System Reinforcement
Project

>  Dipayal-Sanphe-Manma-Jumla33 kV Transmission
line and Substation Project

> ~~' Tikapur-Lamki Distribution System Reinforcement
Project

System

A YEAR IN REVIEW-

Annex -1: Features of eight regional offices

S.No. Category Biratnagar। Janakpur Hetauda Kathmandu Pokhara Butwal Nepalgunj Attaria Total

No. of Consumers (Nos) for F/Y 2013/14

Domestic 436440 367215 288530 543142
on-Commercial 2350 1638 1347 3029
Commercial 2120 1157 1549 4973

4। Industrial 8410 3,100 5069

5। Water Supply 324 167 203
a :
७
po foto}. ०2],।
Zz

Sales Unit (MWh) for F/Y 2013/14

Sales Unit (MWh) for FY 2013/14
a।» हि
० po

T 35 381 07

i 936 154

61 2 ]
411 91
>

224559 334729 222988 142365 2559968

Zz

1,629 2339 2206 1453 1599]

1,334 1547 1245 822 14747

ww

3008 1483 40111

2 1673

175 3836 9676 3522 71011
58

24

Ww

9 2207

wa
क
"I
No
[22]

725

N
"I
के
fae

1076 43765

1760 80192
273 1315

6166

3 117 8911

18592 82629

1 fnanicoangin। ar। oe। ve। om [se। ar
५ poo fo fw। oe।
Total 291,360 486,833। 222975। 113108।3413765

epal Electricity Authority 4S

47
36
196 176 8043
63

3293

ma
Oo

A YEAR IN REVIEW-

Anex- 1 Continued...

Revenue (Million NRs) for F/Y 2013/14

ct

fe
र.
फा। ow। se। क। ow। ow। ow। om
००।
[oo। ow। om। om। ow। o। on। om। o। ow। om। om। om। o।»।» fo। io
a

Loss Unit, MWH 96,577 170,374 134903 144874 31352 96983 46086 24364 745513
Loss percentage 16.95 36.90 16.55 13.20 13.97 16.61 17.13 17.72 17.92

50 miNepal Electricity Authority

A YEAR

IN REVIEW-

Annex -2: Perfomance Status of Eight Reginal Offices

Description Biratnagar Janakpur Hetauda। Kathmandu

Mechi &
Koshi

Janakpur & Bagmati,

Zonal Coverage

Narayani

Sagarmatha Janakpur

No. of municipalities fully
electrified

No. of municipalities
partially electrified

No. of VDCs fully
electrified

No. of VDCs partially
electrified

No. of VDCs having no

access to electricity

No. of community
electrified VDCs

No. of distribution center

Units sold during the
year under review (GWh)

473.12 680.41

291.36 952.92

Revenue (NRs in million)

Billing amount 3,793.60 2,000.01 5,326.58 8,898.36
3,550.17 1,887.29 5,111.10 8,680.00

475,679 390,418 312,361 562,731

Total no. of consumers at
the end of the year

No of Additional billed
(Chhut) consumers

Amount recovered from
Additional billing
(Chhut) in million Rs.

38.84

No. of Black listed

4297 3,991 6,389 9351
Consumers
Revenue to be collected

75.52 78.93 150.07 200.7

from black listed

Consumers in million Rs

Pokhara

Gandaki &
Dhaulagiri

193.032

1,545.89

1,497.46

232,037

1486

12.14

Butwal

Lumbini

—_
—

119

238

Ge

wm

45 62 fat) ८
८, ४] —

—

mn

486.83

3,715.00

3,705.00

349,196

4517

83.2

Nepalgunj

Bheri,

Karnali &
Rapti

wn
Ge

224

172

Ge

222.975

1,541.00

1,445.00

239,924

Ge

2,544

33.31

Attaria

<
=
=
"छ,
&

Seti

~I

od —

157

142

113.108

820.35

734.95

150,287

Nn

1.23

1,085

14.32

Total

wn
oN

1259

1636

aN

730

333

3413.755

27640.79

26610.97

2712633

133

53.46

33660

648.19

Nepal Electricity Authority m@ 51

A YEAR IN REVIEW-

Annex -2: Continued...

Description Biratnagar Janakpur Hetauda। Kathmandu Pokhara Butwal Nepalgunj Attaria Total
Revenue collected from

black listed Consumers; 16 65 499 352 33 1753
nos.

Revenue collected from

black listed Consumers in 0.23 2.8 17.54 4,57

million Rs.

0.323 42.493

पु line disconnected; 4394 1,560 9,725 7519 1178 2856 2,715 3,005 32952

64.45 52.21 292.54 122.23 13.71 49.5 41.94 27.61 664.19
42.33 37.13 118.84 97.16 16.23 22.53 27.62 413.57।]।'
0.052
S.

1753 6,108 6,227 5991 3613

-Meter Inspection

(TOD/Three Phase/Single 678 3,310 4,273 1971 1376
Phase); nos.

-Public interaction

Revenue to be collected
from line disconnection
in million Rs.

Revenue collected from
line disconnection in
million Rs.

51.73

Action against theft; nos 262
Collection from Action
against theft in million 2.82 0.169 15.461

1427

2,438 6,104 35493
13.8 152.66

1,177 2,649 15434

3259

=.

N
Bal
an
Coo
nN

-Conductor Upgrading
(HT/LT); km

N

Nee
iv
wn
—

-Transformer
addition/upgradation,
nos,

conducted; nos.

—

—)
BE
a
०९

-Public hearing,
awareness, notice
published; nos.

wn
९0०

ने
60०
—_
\e

52 miNepal Electricity Authority

Planning, Monitoring and Information
Technology Directorate

Planning, Monitoring and Information Technology Directorate is entrusted with the key responsibilities of generation
and transmission system planning, corporate planning and monitoring, appropriate implementation of information
technology in NEA's activities, economic and financial analysis of NEA and trading of power. It is headed by a
Deputy Managing Director and consists of 5 Departments. System Planning Department carries out load forecasting,
generation expansion planning and transmission system planning of the power system of Nepal while Corporate
Planning and Monitoring Department develops corporate plans and programs in addition to monitoring and evaluation
of NEA-implemented projects. Similarly, Information Technology Department introduces new, innovative IT services
and carries out overall maintenance, enhancement and expansion of its fiber and wireless network infrastructure and
server systems. Power Trade Department executes the trading of power with Independent Power Producers and also
carries out the business activities of power exchange and trading of power with India. Likewise, Economic Analysis
Department carries out the activities pertinent to the economic and financial analysis of NEA.

implementation of planned projects. The Department

System Planning Department is also actively involved in the study of Technical
Currently, Grid Impact Study (GIS) for new generation Assistance for Preparing ; Transmission system
projects is the main focus of System Planning Department Master Plan of NEA that Is being studied by EDF as the

(SPD). The GIS analyzes the effect of new connection to consultant. The Department is also involved in the Joint
NEA Grid to ensure satisfactory operation of the NEA Study for the Cross Border Exchange and Trade of Power

Grid in conformity with the NEA Grid Code; requirement between India and Nepal that is being studied by Power

we . . . . ri h nsultant.
for additional transmission lines, reinforcement in Grid as the consultant
the network, and requirement for the installation of

capacitors and reactors are recommended. In FY 2013/14, System Planning Department carried

out number of technical studies at the request of NEA's
different departments. Notable among them are:

> Load flow analysis of Shyaule substation.

> Energy simulation of Power Purchase Agreement
and Grid Impact Study completed projects.

In FY 2013/14, System Planning Department completed
Grid Impact Study for the following hydropower projects
to be developed by the private sector:

SPD also identifies constraints in the grid that could
pose operational risk and that reduces efficiency due to
outages in the Integrated Nepal Power System (INPS).
SPD also develops transmission configurations for
evacuating power from planned generation projects. For
this, different technical studies such as load flow, short
circuit, steady and transient stability are carried out.

SPD also assists other Departments of NEA by providing
necessary data and give suggestions regarding

List of Grid Impact Study (GIS) conducted projects in FY 2013/14

Name of Projects Capacity (MW) Connection Substation

1 [Upper Rahughat HPP
Upper Syange Khola Small HPP Khudi (Tadi Kuna) substation.

Lower Khorunga Khola HEP
४ hopper Myagai मा 2०
Rahughat Mangale HPP 35.5 Upper Rahughat HPP's switchyard

Nepal Electricity Authority हा 93

A YEAR IN REVIEW-। 6। Likhu Khola A HEP

7 \Middle Sunkoshi HEP।।

ambling Khola HEP

fe)

pper Chirkhuwa Khola HPP

1 पती Khola B HEP

८०

ower Hewa Khola HPP

pper Mailung A HPP

ला
Qo

angtang Khola HPP
1 ikhu 2 HEP
15।Suri Khola HEP

1 ikhu 1 HEP

ON

17।Kalanga Gad HPP
pper Kalanga Gad HPP

pper Sani Gad HPP

[9

0

fe

pper Nyasem Khola HEP

[५

नि — — ला
\o oe) N No —
nN

1।Lower Khare Khola Small HPP
22।Kaligandaki Koban HEP

23

Sanjen Khola HPP

2
3
7
4
2
6
3
6
5
]
4
1

1.4 Barabise substation.

4.2
A
27
A
1.6
42

10
3.4
A
1.4
0.7
1.4
11
63
78

New Khimti substation.
Barabise substation.
Barabise substation.
Khandabari Substation.

Lekhnath Substation.

Trishuli 3B hub substation.
Chilime hub substation.
Likhu Khola A HEP's switchyard

Singati substation। 914... Likhu Khola A HEP's switchyard.
15.33 Upper Kalanga Gad HPP's switchyard
38.46 Balanch substation

Upper Kalanga Gad HPP's switchyard

Singati substation.

Dana substation.। Chilime hub substation.

Makari Gad HEP Balanch substation.
Kabeli HEP

Grid Impact Study for the bulk load of 15 MVA of Shivam
Cement in the Kamane substation was also carried out.

Corporate Planning and Monitoring Department
Corporate Planning and Monitoring Department is
responsible for developing corporate and _ periodical
development plans and programs, for carrying out
periodical monitoring and evaluation of projects
implemented by NEA, and for assisting the National
Planning Commission, Ministry of Energy and Ministry of
Finance in the preparation of annual budget and programs
for energy projects being undertaken by NEA. Besides,
the Department also provides necessary support to NEA
management for carrying out various studies related to
institutional reforms and development. In addition, the
Department also provides input for studies undertaken
by various organizations on topics related to NEA.
54 miNepal Electricity Authority

of generation, transmission and distribution systems.
During the year under review, NEA obtained survey
license for one transmission line and transmission license
for two transmission lines. Similarly, NEA also obtained

financing mode.

During the year under review, the Department collected,
evaluated and reviewed monthly, trimester and annual

A YEAR IN REVIEW-

progress of 145 development projects implemented by
various business groups and corporate offices of NEA.
Of these 145 projects, 8 projects were feasibility study
of storage, medium and large hydropower projects; 6
projects were hydropower projects under construction;
36 projects were transmission line projects; 81
projects were distribution system expansion and
rural electrification projects and the rest included
rehabilitation and maintenance of hydropower stations
and institutional strengthening projects.

The Department furnished various data and reports
to Ministry of Energy (MoEn), National Planning
Commission (NPC) and other concerned authorities of
Government of Nepal on energy sector.

Information Technology Department

Information Technology Department is responsible for
IT-related activities within the organization and is headed
by a Director.

The Department has completed a very productive year
with the introduction of new ICT (Information and
Communication Technology) solutions and expansion of
network infrastructure. Apart from the implementation of
newer IT services, the Department provided continuous
ICT maintenance / support and training were imparted at
local and regional level.

To make the procurement system of NEA transparent,
the Department posted more than 500 tenders through
its portal. NEA procurement system portal now has a
total of 590 registered active bidders.

The Department has also made significant progress in
the area of Intranet expansion with fiber optics cable.
The offices under Distribution and Consumers Services
(DCS) such as Naxal, Kuleshwor, Koteshwor, Bhaktapur,
Thimi were linked to the central office network this year
and have initiated any-branch-payment system service
within Kathmandu valley.

ADCS activity portal site was made operational this year
with the aim to capture overall DCS activities including
revenue collection, line connection/disconnection
details, leakage, accidents & electrocution § etc.
The site is accessible through the NEA intranet
site (www.nea.org/revenue) and _ the website
http://nea.org.np/revenue/ .

Considering training as an integral aspect of carrier
development and to enhance the efficiency of the staff,
the Department conducted several training courses at
corporate office level and also at the regional office level.

A total of 10 training sessions were conducted with a
total participant count of 100. A group of Engineers and
Assistant Computer Officers were also sent to India to
participate in a training course of Distributed Database
Management course. Outcome of this training program
is targeted towards making the electricity bill payment
open, accessible and available online for all.

Other major activities taken up by the Department include
rolling out of e-attendance system to more than sixty two
locations and the testing of the document management
system for implementation in the next fiscal year. The
Department has also completed a computer hardware
procurement process for new roll out of e-attendance
system and for replacement of old machines running
CAIS. Furthermore, continuous support was provided to
offices with accounting, inventory, payroll and other IT
systems.

Power Trade Department
Power Trade Department is responsible for trading
of electric power in both domestic and cross border
market. It is the single window interface of NEA with
Independent Power Producers (IPPs) for processing
their application for Power Purchase Agreement (PPA).
Functions of Power Trade Department may be broadly
classified into three categories:
=) PPA Processing and Signing:
It covers PPA processing activities up to and
including its signing.
=) PPA Implementation and Monitoring:
It includes PPA administration after its execution
till commercial operation.
> Operational Administration
PPAs:
It includes PPA administration after commercial
operation.

and Monitoring of

The Department has 3 Divisions to carry out these
functions. Various reform measures have' been
introduced in the Fiscal Year under review so as to make
the processing of the PPA applications systematic and
transparent. The applications are put on a processing
sequence based on pre-established criteria and published
in its notice board. Finally, a PPA Processing Basket is
formed and the applications which have fallen into it with
the completion of necessary criteria are processed ahead
towards the signing of PPAs. When the earlier entries get
completed, the Basket is periodically updated.

A total of 6 new projects developed by the Independent
Power Producers (IPPs) with their combined capacity
of 23,558 kW were commissioned in FY 2013/14.
Projects that were commissioned are: Lower Chaku

Nepal Electricity Authority हा 55

A YEAR IN REVIEW-

Khola (1,765 kW), Ankhu Khola—1 (8,400 kW), Bhairab
Kunda (3000 kW), Radhi Khola (4,400 kW), Mailung
Khola (5,000 kW) and Chhote Khola (993 kW). With
these 6 projects, the total number of IPP-owned projects
that are in operation has reached 39 with their combined
installed capacity of 255.65 MW. Similarly, 62 projects
(including Andikhola upgraded by 4300 kW) of IPPs
with their combined capacity of 1205.61 MW are under
construction. Likewise, 48 projects of IPPs with their
combined capacity of 535.45 MW are in other stages of
development.

During FY 2013/2014, 9 new PPAs with their combined
capacity of 175.47 MW were concluded. With this, the
total number of PPAs conducted so far till FY 2013/2014
stands at 148 with their combined capacity of 1996.7
MW.

Apart from 50 MW import under the Power Exchange
Agreement with India, a short term PPA for the import
of 30 MW power from December 1, 2013 to May 15,
2014 was concluded with Power Trading Corporation of
India (PTC) Ltd. In addition to this, NEA also purchased
electricity from Bihar State Power Holding Company
Nepal (BSPHCL) in the Fiscal Year under review.
Besides, a long term Power Sale Agreement (PSA) was
signed with PTC for the import of 150 MW power from
Mujaffarpur off-take point in India.

Currently, Power Trade Department is also considering
the proposals from the developers of export-oriented
hydropower projects to purchase their energy during the
5 months of dry and winter season. NEA has recently
approved the interconnection and in-principle power
purchase from plants and mini-grid of size less than 100
kW having synchronous generators.

56 miNepal Electricity Authority

Economic Analysis Department

Economic Analysis Department is one of the five

Departments under Planning, Monitoring and Information

Technology Directorate of Nepal Electricity Authority.

The Department is mainly responsible for conducting the

activities related to financial and economic analysis of

NEA. More specifically, the Department is assigned with

the following responsibilities:

> Formulate criteria for economic and_ financial
analysis of NEA's projects;

> ~~ Financial/ economic, commercial and
analyses of NEA;

> Cost benefit analyses of NEA projects;

~> Prepare Log Frame of generation and transmission
line projects of NEA;

> Cost analysis of electricity services distributed by
NEA;

> Prepare documents for review of electricity tariff
to be submitted to Electricity Tariff Fixation
Commission (ETFC);

> Carry out comparative benefit study of hydropower
generation and transmission lines of NEA;

=) Carry out study and evaluation on economic and
financial sustainability of projects completed by
NEA;

2 Assist the Departments of NEA in prioritizing the
selected projects.

market

The Department is the focal point of NEA to coordinate
with Electricity Tariff Fixation Commission (ETFC).
At present, the Department is also assisting Power
Trade Department to conclude PPA with IPPs including
purchasing of dry season energy form export oriented
hydropower projects.

NEA has submitted a proposal to Electricity Tariff Fixation
Commission (ETFC) for the upward adjustment by 20
percent of the existing tariff structure in FY 2012/13.

Engineering Services Directorate

Engineering Services Directorate is entrusted with the
responsibility to carry out engineering studies beginning
from the identification to detailed engineering design,
environmental studies, geological and geotechnical
studies. It is headed by a Deputy Managing Director.
The Directorate has rendered its services to NEA and
private sector particularly for the study of hydropower
and transmission line projects. The Project Development
Department, Soil Rock and Concrete Laboratory,
Environmental and Social Studies and Dudhkoshi
Storage Hydroelectric Project provide these services
to various departments within NEA and to the private
parties. Likewise, Training Center is one of the important
departments of Nepal Electricity Authority, under
Engineering Services Directorate. It has been enhancing
the skills and knowledge to the staffs of NEA as well as
Nepalese citizens since 2046 B.S.

Dudhkoshi Storage Hydroelectric Project

The Dudhkoshi River located in the Eastern Development
Region of Nepal is one of the main tributary of the
Sunkoshi River. The Dudhkoshi Hydroelectric Project is
a storage type of project located between boundaries of
Khotang and Okhaldhunga districts on the Dudhkoshi
River in Eastern Development Region of Nepal. The
project was initially identified during the preparation of
Master Plan Study on the Koshi River Basin in 1985.
The feasibility study was carried out by NEA in 1998 for
300 MW installed capacity and was identified as a viable
and attractive project and was recommended for the
project development. The catchment area upstream of
the dam site is 4,100 km2. The latitude and longitude of
the dam site are 27.3090N and 86.70°E respectively and
the altitude is el. 429 masl. The Nationwide Master Plan
Study on Storage type Hydroelectric Power development
in Nepal conducted by JICA has identified and selected
10 most promising storage projects for development
in which the Dudhkoshi Hydroelectric Project tops the
ranking.

The Dudhkoshi project site is located approximately 5
km northwest of Lamidanda airport located in Khotang
district, which is about 160 km east of Kathmandu. The
dam site can be accessed by a 20 km long fair weather
road that branches from Ghurmi - Diktel road. The dam
site can also be assessed by other fair weather road
from Okaldhunga. Nearest road head for proposed
powerhouse site is located at Dhitung village which is

about 8 km from powerhouse site. Ghurmi, a market
center located at the middle hill road is the nearest
road junction for the project area. The middle hill road
continues towards east connecting Halesi, Diktel etc.
Okhaldhungais also connected to Ghurmi. Regular public
transport services to Diktel, the headquarters of Khotang
district and Okhaldhunga, the district headquarter of
Okhaldhunga district are in operation from Kathmandu
and Katari via Ghurmi.

The recommended scheme in the Feasibility Study
consists of a 160 m high rock fill dam at Dudhkoshi and
powerhouse at Baikhu Khola, a tributary of Sunkoshi. The
predominant rock types in the dam site are phyllite and
quartzite. The reservoir area is 10 km2 at the full supply
level (FSL) of 580 masl with gross storage volume of
687.4 million m3 at FSL, a spillway of discharge capacity
of 5,500 m3/s in the right abutment, a headrace tunnel of
13,260 m length, and an underground powerhouse with
an installed capacity of 300 MW and average annual
energy generation of 1806 GWh, a tailrace tunnel of
370 m length with a surge chamber. The station houses
five Francis turbines each of 60 MW rated capacity with
a rated net head of 249.3 m and a design discharge of
27.2m3/s.

Survey license of Dudhkoshi was issued to NEA by DoED,
in April 2013. The condition of the license requires the
tailrace water of the project to be released in the upstream
of the proposed Sunkoshi-Kamala Diversion head work.
This constraint has preempted the development with
a long headrace tunnel (Scheme B) recommended in
the Feasibility Study 1998. The remaining option is the
toe development (Scheme A) with a possibility of dam
height optimization to maximize the site potential in
given conditions. There is still a possibility of releasing
the required discharge to meet irrigation requirement by
the proposed Sunkoshi-Kamala Diversion during lean
flow months and utilizing the remaining discharge in
order to materialize the layout proposed in the FS, thus
sticking to Scheme B with some operational constraints.
Besides, possibility of a staged development with the
combination of toe powerhouse and then long headrace
tunnel leading to the powerhouse at Baikhu Khola needs
to be given due consideration.

The review report of the project prepared by NEA in FY
2012/13 has compared the two options of development,

Nepal Electricity Authority हा 5/7

A YEAR IN REVIEW-

Toe Option with Long Tunnel Option releasing the
required water for Sunkoshi - Kamala diversion. For the
comparison purpose, the Toe Option as well as Tunnel
Option was analyzed and compared assuming full
supply level of 580 masl as conceived in the feasibility
study. In Tunnel Option, the energy benefit is estimated
by releasing the required discharge from the dam site
to ensure 90 per cent dependable flow of a year (Qgo)
for Sunkoshi - Kamala Diversion. The analysis showed
that with the dam height of 160m, the Toe Option will
generate 210 MW with annual energy of 1,108 GWh
whereas the Tunnel Option will generate 365 MW
with 1,928 GWh of annual energy based on 12 hours
peaking. The comparison distinctly showed that the
Tunnel Option is better than the Toe Option even though
considerable amount of water is released downstream
in the prime dry season. The study further revealed that
there is possibility of increasing the dam height in the
present demand and supply scenario to increase energy
generation. With the increase in dam height up to 220
meter, the project could generate above 800 MW based
on 12 hours peaking.

There is a need of addressing the conditions stated in
the license thereby requiring the release of tail water at
the u/s of the Sunkoshi Kamala diversion. It is required
to review the feasibility study of the project and upgrade
it by taking into consideration of all viable alternatives
including (i) release of tail water at the upstream of the
Sunkoshi Kamala diversion, (ii) releasing water from the
dam site to ensure require water discharge for irrigation
at Sunkoshi Kamala Diversion, and (iii) stage wise
development. Besides, the site capacity is required to be
optimized since the feasibility study of the project was
conducted under the umbrella of Medium Hydropower
Study project (MHSP) where maximum capacity was
limited to 300 MW.

Dudhkoshi Dam site

The main objective of the further study would be to
prepare the project for implementation from the current
status of the existing Feasibility study. Owing to
this, it is planned to employee a reputed international

58 miNepal Electricity Authority

Consultant to carry out necessary field investigation
and update the existing Feasibility study of Dudhkoshi
Storage Hydroelectric Project, carryout detail design
and prepare tender documents and tender drawings;
prepare Environmental Impact Assessment, Social
Impact Assessment, Environmental Management Plan
and Construction Plan to meet the NEA, GoN and leading
multilateral agencies requirements for construction of
the project. In this backdrop, a process for selection of an
international Consultant has already been initiated and a
total of 23 firms has submitted Expression of Interest for
the study. It is envisaged that selection of the Consultant
and award of the Contract would be completed by March
2015. It is planned to complete the field investigation,
detailed engineering design, EIA/SIA and prepare the
bidding documents in 30 months staring from April
2015 and necessary documents would be ready to start
construction by September 2017.

Project Development Department

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

Upper Arun Hydroelectric Project

The Arun River is bestowed with high firm flow and steep
river gradient making very favorable for the hydropower
development. The Upper Arun Hydroelectric Project,
which lies on the upper reach of the Arun River, is one of
the most attractive projects in the Eastern Development
Region of Nepal. Based on the feasibility study carried
out on 1991, the installed capacity of Peaking Run-of
—River type Upper Arun HEP is 335 MW. The design
discharge of the project is 78.8 m3/sec and generates
the firm energy of 2050 GWh per annum. The project
has design head of 492 m. The total cost of the project is
US$ 479 Million.

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

Review Study of this project was carried out by NEA in
2011. The project cost was revised based on the year
2011 unit rate, prevailing road facilities which is already
built up to Num near the dam site of Arun 3 HEP and
transmission line. The total project cost at 2011 was
estimated to be 445.54 M US$. The review study also
showed the increment in the annul generation to 2734.2
GWh. The project is proposed to be developed by NEA
under the ownership of Nepal Government.

In the development of UAHEP, World Bank (WB) has
been introduced as a possible financing partner. The WB
has provided the Aide Memoir for the project. The EOI
documents for the selection of consultant of the project
have been revised considering the WB requirements.
Some of the other works include hydrological updating
of the project. The project development department
(PDD) has also completed the transmission line survey of
the project. The 220kV double circuit line stretches from
the powerhouse site to the Tumlingtar substation. So far
environmental study is concerned; PDD has_ prepared
the ToR for the consultation services of the ESIA and CIA
study of the project. The comprehensive consultation
meeting for finalization of TOR was also conducted in this
fiscal year. EOL and RFP document to procure consulting
services for engineering as well as environmental and
social studies related to the project have been prepared.
It has been planned that two separate international
consultants shall be hired for the environmental study
and detailed engineering design of the project. The ESIA
and CIA study is expected to be started in 2071/72 fiscal
year at the earliest possible.

The Project site is presently not accessible by motorable
road. The nearest accessible point is Num Bazaar. Num
Bazaar can be assessed by about 40 km fair-weather
road from Khandbari. The powerhouse of the Project
is about 25 km from Num. Department of Road,
North-South Koshi Road Project (NSKRP) is currently
constructing new fair weather road from Num Bazaar to

Kimathanka through Gola. The UAHEP will construct a
bridge over the Arun River and a 24 km long new access
road from powerhouse site near Gola to proposed dam
site including 1.7 km of road tunnel. The PDD has been
finalizing the EOI and RFP documents required for the
consultation services for the project road.

As UAHEP is proposed to be developed by NEA under the
ownership of Nepal Government; it will not be possible
for the local people to invest on it. Hence, a separate
project called Iknuwa Khola Hydropower Project (IKHEP)
has been identified and is proposed to be developed
as an integral part of Upper Arun HEP for the social
mitigation purpose. IKHEP is located approximately 8
km downstream from the powerhouse site of Upper Arun
HEP. The feasibility study of the project is being carried
out by the Department of Electricity Development. NEA
is planning to develop Upper Arun and Ikhuwa Khola HEP
at the earliest possible time.

Upper Modi A & Upper Modi Hydroelectric
Project

Upper Modi 'A' Hydro Electric Project was identified
during 1997 and the Feasibility study of this project
was completed in the year 2000. Environmental Impact
Assessment (EIA) of the project was approved in 2004.
Presently this project is conceptualized to be developed
as cascade scheme between Upper Modi 'A' and Upper
Modi HEP with total installed capacity of 62.2 MW
(Upper Modi 'A'- 42 MW and Upper Modi - 18.2 MW)
This project is located approximately 250 km west
of Kathmandu in Kaski District of Gandaki Zone in
the Western Development Region of Nepal. Both the
headwork and powerhouse site of the project is located
in Ghandruk VDC. The nearest highway to the project
site is at Nayapul, about 38 Km west of Pokhara on
Pokhara Banglung highway. Approximately 8 km of
motorable road and a steel truss bridge over Modi Khola
has already been constructed by the local administration.
Hence, approximately 8.0 Km of access road need to
be constructed from powerhouse of the Upper Modi A
to the headwork site. Approximately 1.0 km of project
road will be required for the construction of Upper Modi
project. Similarly, 8 Km long 132 KV single circuit
transmission line will be required to evacuate generated
energy from both projects to the INPS system at New
Modi Khola substation.

This cascade project is conceptualized to be developed
in Public Private Partnership (PPP) model. A Joint
Development Agreement (JDA) was signed between
Nepal Electricity Authority (NEA) and Korean Water
Resources Corporation (K-Water) with the share holding
provision of 60% to NEA, 30% to K- Water and 10%
to the local residents. Presently, the technical team of

Nepal Electricity Authority हा 59

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

NEA and K- Water has completed the joint feasibility
study report of cascade project. Detailed engineering
design of access road up to the headwork site of Upper
Modi 'A' from the existing road has been completed.
Similarly, detailed topographical survey of transmission
line has been completed. Supplementary Environmental
Assessment study of the Biological environment of the
project area has been completed as per the requirements
of Ministry of Forest and Soil conservation. Detailed
Engineering Design of this project is planned for the
coming fiscal year.

Upper Modi 'A' Headwork site

Tamakoshi V Hydroelectric Project

The Tamakoshi-V Hydropower Project is a cascade
development of the Upper Tamakoshi HEP with tandem
operation. It is located approximately 170 km north east
of Kathmandu, the capital of Nepal and approximately
40 km away from the district head-quarter of Dolkha
District- Charikot Bazaar. The newly constructed road
connecting Singate Bazaar and Lamabagar for the
construction of Upper Tamakoshi HEP passes both
powerhouse and headwork sites of this project. Upper
Tamakoshi Project recently built this road.

Tamakoshi V Powerhouse Site

The feasibility study of the Project was carried out by
NEA in fiscal year 2010/11. All the structures of this
project are located on the right bank of Tamakoshi River.
The project being a cascade development to Upper
Tamakoshi HEP, it does not need separate headwork.

60 miNepal Electricity Authority

Tamakoshi-V feeds on the discharge from the tailrace of
the Upper Tamakoshi Project through an underground
inter connection arrangement and conveyed water
to headrace tunnel of the Project. An underground
powerhouse is proposed at Suri Dovan. The design
discharge of the project is 66 m3/sec with an installed
capacity of 87 MW.

The general arrangement of the project comprises of
underground inter connection arrangement of headrace
tunnel with the tailrace tunnel of Upper Tamakoshi HEP.
The interconnection system consists of connecting
tunnel, a head pond required to maintain suction head
before the pressurized head race tunnel entrance,
spillway and spillway tunnel. Discharge from the
tailrace of Upper Tamakoshi HEP is diverted through
interconnection system and conveyed to 8.20 Km
long concrete lined headrace tunnel, 122.38 m high
drop shaft, 41.44 m long pressure tunnel and to the
underground powerhouse containing four number of
vertical axis Francis turbine for the generation of 87 MW
electricity equivalent to 460.5 GWh of energy (without
Rolwaling). Tailrace tunnel of 141.61 mand54.55 mlong
tailrace canal will release the water into the Tamakoshi
River itself after the generation of power. The outlet of
the tailrace is approximately 0.2 km downstream from
the confluence of Tamakoshi River and Khari Khola at
Suri Dovan. With the availability of the infrastructure
developed for the Upper Tamakoshi HEP particularly
the access road and transmission line and also being the
cascade project of Upper Tamakoshi HEP, Tamakoshi
V HEP can be developed along with Upper Tamakoshi
HEP. Hence, the project can be commissioned in five to
six years from FY 2070/71 and shall be the milestone
project to overcome the load shedding in future.

For the speedy implementation of Tamakoshi V, NEA
has initiated the preparatory works for the Detailed
Engineering Design in this fiscal year so that the detailed
engineering design can be carried out in the next fiscal
year. Allthe necessary activities like additional geological
and geotechnical investigation/s, Environmental Impact
Assessment (EIA) finalization, finalization of Expression
of Interest (Eol) and Request for proposal (RFP)
documents for selection of international consultants
are being prepared for the detailed engineering design
of the project. With regards to the interconnection
system, an agreement has been signed between Project
Development Department (PDD) and Upper Tamakoshi
HEP for the detailed engineering design and construction
supervision of interconnection system. This work will be
carried out through the consultant of Upper Tamakoshi
HEP. Similarly, the construction of interconnection
system will also be executed through the present civil
contractor of Upper Tamakoshi HEP.

Andhikhola Storage Hydroelectric Project

Andhi Khola Storage Hydroelectric Project is a medium
sized storage scheme situated on Andhi khola, a tributary
of Kali Gandaki River in the Gandaki Basin. The dam site
is located at about 1.6 km upstream of confluence of Kali
Gandaki and Andhi Khola whereas, powerhouse site is
located on the left bank of Kali Gandaki River, about 12
km downstream of the Kali Gandaki-A HEP powerhouse.

The Feasibility Study of this project was carried out
by NEA in 1998. As per the study, the project will
generate an annual average energy of 693 GWh with
installed capacity of 180 MW. NEA started to upgrade
the feasibility study from the year 2010/11 and NEA
has applied for survey license of this project in the same
year. In the view of further study, altogether four options
have been considered.

An alternative study is carried out considering two
dam and two powerhouse sites including the old dam
and powerhouse site from previous studies (1998).
In the fiscal year 2013/14, the Project Development
Department carried out the project alternative study
with all those options and prepared the Interim Feasibility
Study Report. The study indicated that the old dam site
option is more economically attractive than the new
dam site option. And the economic parameters for both
the power house options do not vary significantly with
old dam site option. Hence the both the alternatives are
recommended for the further study. As per the study, the
project will generate an annual energy of 664 GWh with
installed capacity of 303 MW with dam height of 193
m and Full Supply Level of 710 m with old powerhouse
option whereas in case of new powerhouse option for
the same dam height, the annual energy is 600 GWH
with installed capacity of 275 MW.

Uttar Ganga Storage Hydroelectric Project

The Government of Nepal (GON) has given priority for
the development of storage type hydropower projects
and accordingly NEA has initiated the "Selection and
Feasibility Study of Storage Projects" across the country

on 1. ना ता

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

under funding of GoN. Uttar Ganga Storage Project
is one of such potential projects, for which NEA has
proposed to initiate the feasibility study in the fiscal year
2011/12. The proposed project lies in Baglung District of
Dhaulagiri Zone in Western Development Region (WDR)
of Nepal. The dam site is located at Gaba village of Nisi
VDC whereas the powerhouse site is situated on the left
bank of Nisi Khola nearby Kaigau Village of Nisi VDC.
The earthen track road has been constructed up to Uttar
Ganga (Dhorpatan) in this fiscal year. About 11 KM long
access road from Uttar Ganga, the nearest road head will
be required to reach the dam site. The proposed power
house site is accessible by Rukum - Banglung part of
Madhyapahadi Highway (Pushpalal Lokmarg). A bridge
across the Nisi Khola is needed to be constructed to
reach the powerhouse site.

Ss OE ~ a Pee CF: .
a ro ee Cee

View of Reservoir Area & Uttar Ganga River of Uttar Ganga Storage Project

The application for the survey license was submitted
to DoED in the fiscal year 2011/12. As the dam and
reservoir area of the project are located within Dhorpatan
Hunting Reserve, pre-approval is required from Ministry
of Forest and Land Conservation for conducting the
feasibility study. Though the application for the same
has been submitted, the approval from the Ministry has
not been received yet. However, the third meeting of
Project Facilitation Committee under the office of Prime
Minister and Cabinet chaired by the Chief Secretary on
April 29, 2013 decided to prepare the Detail Project
Report (DPR) and Environmental Impact Study of the
project. Accordingly, NEA has again made a request to
DoED for the survey license of generation submitting the
required additional license fee and prepared the project
status report in the F/Y 2012/13.

The major components of the project are 145 m
high rock fill dam, sloping type intake, 9,800 m long
headrace tunnel, circular restricted orifice surge shaft,
3,900 m long inclined pressure shaft and horizontal
tunnel and an underground powerhouse on the right
bank of Nisi Khola. The installed capacity of the project
has been computed as 300 MW on basis of 18 hours
in dry season (November-May) and 6 hours in wet

Nepal Electricity Authority हा 61

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

season (June-October) operation. The annual energy

generation from the project after outage and losses will

be 1,269.4 GWh of which the firm energy (all dry season

energy from November to May and peak wet season

energy from June to October) is 1,252.0 GWh and the

secondary energy (off peak wet season energy from

June to October) is 17.4 GWh. The energy generated

from the project will be evacuated to the INPS at the

proposed Kusma sub-station through 85 km long 220

kV transmission line. The distinct features of the project

are as follows:

> Availability of very high effective head of up to
1,310 m making the project very cost effective;

> High Run Off Capacity Factor (RCF) of 62%
facilitating the much flexibility in reservoir
operation;

> Less sediment yield of 2,750 t/km2/year thereby
increasing the life of the reservoir;

> Inundation of only 250 ha of cultivated land and
resettlement of 260 households thus having
comparatively less socio-environmental impacts.

The total cost of project has been updated as US$ 775

million at the price level of June, 2013 excluding interest

during construction (IDC) and other financial costs. The

economic indicators EIRR of 12.91 and B/C of 1.30, as

well as financial indicators FIRR of 15.2 and B/C of 1.16

shows that project is viable for development.

During this fiscal year 2013/14, the following works are

carried out:

Topographical survey of proposed power house site.

> Field hydrological works including new gauge
installation at Kanga Village (near to dam site),
discharge measurement at both dam site & power
house site and gauge reading continue at both dam
site & power house site.

> Geological study included geological mapping of
the power house site.

> Presentation at NEA Office Kathmandu to
information sharing with local people from Project
site (Bobang & Nisi VDC of Baglung District).

Tamor Storage Hydroelectric Project

Tamor Storage Hydropower Project lies in Terhathum
and Panchthar districts of Eastern Development Region.
The Project was identified during the Koshi River
Basin Master Plan Study, 1985. Further studies on
the project started only in 2009, after about 25 years
of its identification. The Project is in its initial stage of
study. The Project site can be accessed via. Biratnagar —
Dhankuta- Myanglung black topped road.

An earthen track of about 25 Km connects Myanglung to
Lambhughat which is located at about 1.5 Km upstream
of the proposed dam site. Being a reservoir project with
seasonal storage capacity and suitably located to cater

62 miNepal Electricity Authority

the energy hungry industries of Eastern Development
Region, this is one of the promising storage projects
being studied by Project Development Department.

Proposed Dam Axis of Tamor Storage Hydroelectric Project

DoED has granted licenseto NEA for fullsupply level450m
on Shrawan 2070. Due to high level sedimentation in the
flow, the reservoir will fill within few years (3-4). So this
FSL is not feasible and the alternative study was being
started. Due to the presence of Kabeli 'A'- Hydropower
Project with installed capacity of 37.6 MW, total energy
202.5 GWh and Dry energy 31.0 GWh, planned by IPP
at upstream of Dam site of the Tamor Storage project
directly interfere Tamor Storage Hydroelectric Project.
Thus, the study has been carried out considering two
alternatives. First alternative "with considering the
Kabeli 'A' HEP" in which the maximum reservotr level of
Tamor Storage Hydroelectric Project will be restricted
to EL 450 m and second alternative "without Kabeli 'A'
HEP" in which the maximum reservoir level has been
optimized with the optimization of the design discharge
and corresponding installed capacity.
The following main conclusions were drawn from this
alternative study:
> Based on economical analysis with long run
marginal cost, the alternative-Il with full supply
level 550 masl, Installed capacity 762 MW, net
present value-622.4 Million US$, B/C ratio-1.61
and EIRR-16.17% is economically and technically
viable in comparison to Alternative-l.
~ The comparison of two alternatives clearly shows
that alternative-1 is not feasible due to high flow of
sediment. Considering sediment flushing in three
years, a concrete dam was proposed for this level
of 450 mas! which was found to be economically
non attractive in comparison to Alternative II.
> 'The alternative-ll is more attractive at dam height
550 m and installed capacity 762 MW. In this
option, the cost of Kabeli-A 37.60 MW project is
included in the total project cost.
=) The Project is capable of generating 3,151.5 GWh
of annual energy and dry energy 1,075 GWh.

A YEAR IN REVIEW-

> Abundant discharge ( average: 309.79 m3/s) and
enough storage capacity total: 2725 MCM,
Effective storage volume: 1900 MCM)

> Approximately 30 kilometers of access road from
Mulghat along the river should be constructed and
improvement of existing ragged road of around 25
km from Terhathum to the project site is required.

> Less environmental impact, (few relocation houses
and less cultivated land)

> 'Favorable Project location Eastern Region

> Approximately 75 km of 400 KV transmission
line will be required for the power evacuation at
Inaruwa substation.

Nationwide Master Plan study on Storage
Hydroelectric Power Development in Nepal
The Nationwide Master Plan Study on Storage
Hydroelectric Power Development in Nepal had been
conducted on the basis of the scope of work agreed
between Japan International Cooperation Agency
(JICA) and the Ministry of Energy, Government of Nepal
(MoE) with Nepal Electricity Authority (NEA) as the
counterpart agency. The study aims to prepare a master
plan for storage type Hydroelectric Power Development
for domestic demand in Nepal for the coming 20 years by
selecting promising candidate projects in the range from
100 MW to 300 MW from a list of 67 potential projects
listed by NEA.

Location of Candidate Storage Projects

The study started off in Japan from the end of December
2011. The first work period in Nepal began from
January16, 2012 up to February 26, 2012. The first
stake holder's meeting was held in February 2012 in
Kathmandu. The second work period for the JICA team
in Kathmandu was from the May 8, 2012 up to June 30,
2012. The end of the second work period concluded
with the reconnaissance site survey work of four
storage projects. Third, Fourth and Fifth work period
of JICA study was concluded between November 18th
2012 to December 2nd, 2012, February 3rd, 2013 to
February1 7th, 2013 and May 27th 2013 to June 8th,
2013 respectively.

The Second and Third stake holders meeting between

different agencies was held on November 28th, 2012
and February 13th, 2013 respectively

The Study Team submitted the following report on the
study to JICA/NEA

Inception Report December 2011
Progress Report February 2012
Interim Report November 2012
Draft Final Report February 2013
Final Report March 2014

The Joint Coordination Committee (JCC) and Strategic
Evaluation Assessment (SEA) meeting between different
stake holders was held on June 3, 2013 and June 5,
2013 respectably at Ministry of Energy, Government
of Nepal. The JICA Study Team in coordination with the
Nepal Electricity Authority has submitted the Final Report
in this fiscal year BS 2069/070. Based onthe JCC & SEA
meetings outcome, JICA submitted the Final Report on
March 20, 2014 (FY 2070/0071) & list of ten promising
storage projects selected for Master Plan Study by JICA/
NEA Study Team are as follows.

The Earliest
possible
Installed} Annual। Project। Commis-
Capacity] Energy। Cost*।sioning Year

Project Name MW (MUSS FY

mse fino bose
=
=
_
a
=

*: FY 2012/13 price

The JICA Study Team recommended the three power
development plans related to the Base case, High Case
and Low Case from the year 2012/13 to 2031/32
consisting of storage projects, run of the river projects
and pondage run off the river projects. In those power
development plans, the total installed capacities of
storage type HPPs are 1993 MW for the base case,
3154 MW for the high case and 1664 MW for the low
case demand forecast scenario. The power development
plan of the storage projects for these three cases are as
follows:

Nepal Electricity Authority हा 63

A YEAR IN REVIEW-

Installed।Commissioning Year(FY

)
Low
Base Case।High Case।Case

(MW)

=
=
300।।।।। tows।।
[20]।। tows।।

1644
Total Capacity 1993MW। 3154 MW

*: FY 2012/13 price

Survey of Transmission Lines

Survey Division has been accomplishing different
activities of Engineering Services. During this fiscal year
2070/2071 the following surveying activities of the
transmission line have been undertaken.

Transmission Line Proj-

lect Name

Com-
pleted

Marsyangdi - Kath-
mandu 220 KV

Tanahu, Gorkha,
Chitawan, Dhading
land Kathmandu About 82 [Running
Upper Arun - Tumling- Com-
tar 220 KV Sankhuwasabha 44.80 pleted
Com-
11.10 [pleted

Upper Modi 'A -।Kaski and
INew Modi 132 KV।Parbat

Samundratar - Tri-
shuli3B 132 1९४।[Nuwakot

Com-
25.67 —।pleted

64 miNepal Electricity Authority

Feasibility study

of Rupani 132

KV Sub-station [Saptari
Koshi Corridor,।Taplijung,
Sankhuwas-

Basantapur -

abha and Com-

Taplejung 220

KV Tehrathum 43.30 __ [pleted
Other Activities

In addition to regular work consisting of carrying out
studies at different levels for different projects, PDD has
been carrying out various activities which have been
instrumental in developing the institutional strength
of Nepal Electricity Authority in the field of consulting
services. The following are the few of the activities of
PDD carried out during the fiscal year 2070/71.

> Continuation of the construction supervision of
Chameliya Hydroelectric Project in association
with the joint venture of three local consulting firms
(SHAH, SILT and ICON JV).

> Construction of Corporate Office Building Project
NEA planned to establish a corporate office,
commercial complex and business complex at 26
ropanis land at Durbarmarg, Kathmandu. A master
plan was developed in 1989. Due to enormous
change in building technology, evolution in latest
office design concept and changed scenario in
commercial building requirements, NEA modified
the existing master plan through the Consultant
'Designer Pavilion (P) Ltd. For further improvement
of the Project, NEA has selected the joint venture
consortium of "BDA Nepal (P.) Ltd., Innovative
CREATEERS Architects & Engineers Pvt. Ltd. and
MRB Associates". The detail design of Corporate
Office Building was completed in FY 2070/71 by
the Consultant. Project Development Department
invited a bid for the pre-qualification of the
contractor for the construction of NEA corporate
office building at existing NEA premises. The project
consists approximately rectangular building of 40
m x 29 m (Gross floor area just above 1100 m2 at
the basement level). The building is of 16 floor plus
2 attic floor above ground, double basement for
parking. Total floor area of the proposed building
is approximately 16,000 sqm. From the invited
contractors, the pre-qualified contractors have

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

been short listed and evaluation report has been
prepared. The project is proposed to construct
with the financial investment by NEA itself. The
construction of the building is planned to be started
in the coming FY 2071/2072.

Environmental and Social Studies Department
Environment and Social Studies Department (ESSD) is
one of the integral departments of Engineering Service
Directorate of NEA. This department executes activities
related to all aspects of environmental and social aspects
of hydropower and transmission line projects being
planned, designed, constructed or operated by NEA.
This department is acommercial wing of NEA and with its
technical expertise involved in conducting Environmental
Impact Assessment (EIA), Initial Environmental
Examination (IEE), Social Impact Assessment (SIA),
Vulnerable Community Development Plan (VCDP),
Resettlement Action Plan (RAP) studies along with
environmental monitoring, and implementation of

mitigation measures and community support programs
of hydroelectric, transmission line and distribution line
projects.

सार्वजनिक सुनुताई कार्यक्रम bas

a

SSRIS SS

errs qe cutee cams trae BRS I
Took >
cy ant Ween ॥ V3

VES ee Yon yaa

S

SE. ial

During the fiscal year 2013/14, ESSD was actively

engaged in overall assessment, monitoring and
protection of the environment. The department
successfully conducted several environmental studies
out to which IEE of Rahughat-Modi 132 kV and Koshi
Corridor 220 kV TL projects have been approved by
Ministry of Energy. Similarly, Supplementary IEE of
Upper Trishuli 3'A'-Matatirtha 220 kV TL _ project;
project and Updated EIA (Biological Part) of Upper Modi
A Hydroelectric Project have been approved by Ministry
of Forest and Soil Conservation whereas Suplementary
IEE of Kabeli Corridor 132 kV TL was approved by
Ministry of Energy. ESSD is engaged in different projects
which are at different phases of study. The Terms of
Reference (TOR) of IEE study of two different projects

-Chilime-Trishuli 220 KV and Kaligandaki Corridor
220 kV TL projects have also been approved by the
Ministry of Energy. Similarly, the Updated VCDP of
Khimti-Dhalkebar 220 kV TL Project and hot spot study
of birds, elephant, monkey and large mammals prepared
for Hetauda-Dhalkebar-Duhabi 400 kV TL Project
were cleared by the World Bank. The department has
prepared and submitted the following study reports to
the respective ministries for approval.
1. ElA Completed Projects

- Kohalpur-Surkhet 132 kV TL Project

- Upper Trishuli 3'B' Hydroelectric Project
2. IEE Completed Projects

- Kushaha-Kataiya 132 kV TL Project

- Rahughat Hydroelectric Project (Supplementary)

- Samundratar-Trishuli 3'B' Hub 132 kV TL Project

Trishuli 3'8' Hub Substation Project
3.। ToRand Scoping of the projects

- Dordi Corridor 132 kV TL Project

- Ramechhap-Garjyang 132 kV TL Project

- New Modi-Lekhnath 132 kV TL Project

- New Khimti-Barhabishe-Kathmandu 400 kV TL

Project
ESSD has been undertaking environmental monitoring
and mitigation of three under-construction hydroelectric
projects (30 MW Chameliya, 60 MW Upper Trishuli
3A and 14 MW Kulekhani Ill) by establishing an
Environment and Social Monitoring Unit (ESMU) at
each site. In addition to these, the department has been
monitoring seven  under-construction transmission
line projects (Hetauda-Dhalkebar-Duhabi 400 kV;
Bharatpur-Bardghat 220 kV; Hetauda-Bharatpur 220
kV; Middle Marshyangdi-Dumre-Damauli 132 kV;
Kabeli Corridor 132 kV; Balach-Attaria 132 kV and
Jagatpur-Madi 33 kV) by establishing ESMUs at project
sites. In the near future, an ESMU will be established for
Kaligandaki A Hydroelectric Plant Rehabilitation project
and Upper Trishuli 3'A' —Matatirtha 220 kV TL Project.

Under mitigation and enhancement programs, different
activities were conducted in this FY 2013/14. Vegetable
training was provided to 25 households and 80,000
vegetableseedlings wereprovidedto 200 Projectaffected

Nursery established at Malakheti-8 of Kailali District Vegetable Nursery established at Balach, Darchula District

Families (PAFs) of Chameliya HEP and Balach-Attariya
132 kV TL Project. In addition to this, a nursery was
established at Malakheti-8 of Kailali District with the
objective of producing 2,00,000 seedlings/saplings for
the compensatory plantation program of same projects.

Nepal Electricity Authority हा 65

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

In case of Hetauda-Bharatpur 220 kV TL project, the
department conducted training to 40 Community Forest
Users' Group (CFUGs) members and provided 80,000
seedlings of Non-Timber Forest Project (NTFPs) plants.
Different trainings like forest management and wildlife
conservation; agriculture productivity intensification
and vegetable farming; and Social awareness programs
were conducted at Kulekhani III HEP project area which
benefitted a total of 94 local people. A training on
electricity safety was provided to 63 local people of
Jagatpur-Madi 33 kV TL project area. Similarly, School
Support Programs were conducted in the project areas
of Upper Trishuli 3A HEP, Kulekhani।। HEP and Kabeli
Corridor 132 kV TL.

कमा. ' a Es

2.2 =, छ छछ
Distrubution of Computers to Tribhuvan High
School Chitwan District of Manakamana-8,
Nuwakot District

Participants of Electricity Safety

Training, Madi,

Soil, Rock and Concrete Laboratory

Soil, Rock and Concrete Laboratory (SRCL) established
and developing as Geotechnical Department is under
the Engineering Service Directorate of Nepal Electricity
Authority. It provides services in material testing,
geological and geotechnical investigations for the
different phases of a hydropower project development.
It provides services like geological mapping, various
types of geophysical surveys, core drilling and
construction material investigation at different levels to
the different departments of NEA and the private sector.
In the field of soil and rock 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. on a regular
basis for clients inside and outside NEA.

Following are the major works executed by SRCL in
fiscal year 2013/14

1) Geological and geotechnical investigation works of
Tanahu Hydropower Project:-

This project is being developed by Tanahu Hydropower
Limited ; a subsidiary company of Nepal Electricity
Authority ( formally Upper Seti Hydroelectric Project)
11 Tanahu_ district. Geological and geotechnical
investigation works (Phase 2) including 1320 m core
drilling, and Laboratory tests at the Dam site and
Powerhouse site of the project are near to completion.
2) Geological and geotechnical investigation works at
Headworks site of Rahughat Hydroelectric Project:-

This projects in. construction hase and being developed
BA Nepal Electricity Authority P g P

by NEA. As a part of additional geological investigation
at the Headworks site of the project, a total of 130m
core drilling in five holes has been completed in this fiscal
year.

3) Additional geological and geotechnical Investigation
works at Tamakoshi —V Hydroelectric Project:
Additional geological and geotechnical investigation
works including 280 m core drilling at Surge Tank site,
Detail engineering geological mapping and 2-D Electrical
Resistivity Tomography along the headrace tunnel
alignment, construction
material survey and
Laboratory tests of
the project are near to
completion.

4) Electrical Resistivity
Tomography (ERT) Survey।
at Headwork slope of
Kaligandaki A Hydropower
Station:

Electrical Resistivity
Tomography was carried
out in five profiles with total ae a ;
length of 2290m along the
unstable left bank slope of
Headworks site.

Core drilling at Dam site of

Tanahu Hydropower Project.

Field work for the 2-D Electrical Resistivity Tom

ography

Laboratory works:

SRCL provides laboratory services of carrying out

in-situ tests and laboratory tests including construction

material survey and quarry site investigations. Following

major works has been carried out in this fiscal year.

> Laboratory testing works (Uniaxial Compressive
Strength, Point Load, absorption, Specific gravity
and density test on Core samples) of Rahughat
Hydroelectric Project.

> Construction Material Investigation and reserve
quantity estimation of Tamakoshi V Hydroelectric
Project, NEA, Dolkha.

> _ Laboratory test works of Detail Survey & Design
of Electrified Railway Line for Tamasaria - Butwal
Sector of MMR and Butwal - Bhairahawa Lumbini
Link (DOHWA-KUNHWA-KRNA-ICT-FBC JV).

A YEAR IN REVIEW-

> Laboratory test on core samples of LRBP Project
Charuwa Khola, Dhankuta (I.C.G.S. Pvt. Ltd.)

2 Laboratory test works on Core samples of
Tamakoshi Gum Khola Bridge, Dolkha (N.G.C.
Lab. Pvt. Ltd.)

> Laboratory test works of Bagmati River Basin
Improvement Project(Department of Irrigation &
DHI)

> Laboratory test works on soil and core samples of
Thankot Area Road Improvement Project in Nepal
(JICA)

> Laboratory test works on construction materials
of Ghandruk - Modi Hydroelectric Project, Kaski
(Niltara W & E Pvt. Ltd.)

> Laboratory test works on construction materials
of Solu Hydroelectric Project, Solukhumbu
conducted by Upper Solu Hydro Electric Company
Pvt. Ltd.

2 Laboratory test works (density, uniaxial
compressive strength, tensile strength, point load
& petrography analysis etc.) on core samples of
Rasuwagadhi Hydroelectric Project, Rasuwa (Soil
Test Pvt. Ltd.)

> In-situ concrete over coring works of under
construction building of Sajha Prakashan at
Pulchowk, Lalitpur and report submission of
laboratory test results (concrete grade
reconfirmation) to Nepal Government,
Commission for the Investigation of Abuse of
Authority (CIAA), Tangal, Kathmandu.

> Laboratory test works on core samples of Madi
Khola Hydropower Project, Rolpa (MEH Geo -
Engineering Services Pvt. Ltd.)

> Laboratory test works on core samples of
Dotigad Hydropower Project (MEH
Engineering Services Pvt. Ltd.)

> Laboratory test works (Alkali reactivity (AAR)
bar method and Prism method) on construction
materials of Tanahu Hydropower Project,
Tanahu, (in progress).

Geo-

Electromechanical Design Division

This division handles all of the electromechanical issues
arising within Engineering Services. These issues range
from the design of electromechanical equipments of
projects that are under various stages of study. Apart
from design of the electromechanical equipments, this
division also runs and maintains Central Workshops in
Hetauda and manufacturers of concrete poles from its
two Concrete Pole manufacturing Plants, one in Kotre
and the other in Amlekhgunj.

Central workshop
During the last fiscal year 070/071, Central Workshop
had completed maintenance of 395 _ Distribution

Transformers capacity ranging from 15 KVA to 250
KVA. Also it had completed repairing, servicing, Shifting,
Installation of 7 more Power Transformer capacity
ranging from 630 KVA to 20 MVA. Central Workshop
had also tested 1,119 Distribution Transformer brought
from various outer sectors.

Central Workshop

In order to carry out routine test of transformer up to
1OMVA, Central Workshop is planning to established
test bench. For this, the contract agreement between
Nepal Electricity Authority and M/S Prolific Systems
and Technologies Pvt. Ltd., India is executed on June
9, 2014 for the works known as design, manufacture,
supply, delivery, installation, testing and commissioning
of transformer Test Bench (EPC) to test transformers up
to 10 MVA.

Kotre Pole Plant

Kotre Pole Plant was jointly established by Government
of Nepal & Finland Government in 2042 B.S to implement
for Pokhara Electrification Project. It is located in
Dulegauda-2 VDC, Kotre of Tanahu District. After
termination of this project, the plant was handover to

PSC pole production at Kotre Pole Plant

Nepal Electricity Authority हा 67

A YEAR IN REVIEW-

Nepal Electricity Authority (NEA). Then this plant was run
by NEA, Distribution & Consumer Service Directorate up
to F.Y.2061/2062. In that period this plant was in near to
close condition and only produced very few pole required
for Pokhara Distribution center & its periphery. In F.Y
2061/062, again it was handover Engineering Service
Directorate. Since, then the plant was maintained and
started to produce PSC pole commercially. Now it is
running with separate budget center to implement pole
production & Distribution activities.

Production of PSC Pole in Past Two Fiscal Years.

Types of pole। FY 2012/13। FY 2013/2014

208। 235
= 2520। 261

Amlekhgunj Concrete Pole Plant

Concrete pole Plant was established in 2050 B.S at Bara
District, Amlekhgunj V.D.C, Ward No. 3. It was jointly
established under the Government of Nepal in assistance
of Asian Development Bank to implement for seventh
electrification project. After termination of the project
this plant was handed over to Nepal Electricity Authority
(NEA), Engineering Service Directorate. The total
capacity of manufacturing pole is 14000 in numbers
Daily production capacity of the plant and the production
scenario are as follows. However, from F/Y 2070/71 the
production capacity will increase as shown below:

Pole Type EY 2012/13। FY 2013/014 Remarks

Work in Prog-
8 m long 30 48 ress

11 m long

Amlekhgunj Concrete Pole Plant

68 miNepal Electricity Authority

Production of PSC Pole

FY 2013/2014

1। 8०० 568
3840

Types of pole

3 11 111 1,296
= 10,616

NEA Training Center

Background

NEA Training Center (NEA TC) is one of the important
departments of Nepal Electricity Authority that is
being developed as a center of excellence. It has been
contributing different skills to the staffs as well as
Nepalese citizens since 2046 B.S from Ratnapark and
in Kharipati, Bhaktapur since 2057 B.S. In the last
25 years, NEA Training Center has trained all total of
13,539 employee from the different core group of Nepal
Electricity Authority and some of other organizations.
During initial five years of its inception NEA TC has
conducted trainings only for non officer level. The total
no. of 9,782 employee of non-officer level has been
trained tillF.Y. 2070/71. NEA Training Center has started
training courses for officer level since F.Y. 2051/52 and
3,757 officers have been trained till F.Y. 2070/71.

NEA TC occupies around 203 Ropanis of landin Bhaktapur
district. It provides different technical as well as non
technical trainings with its sovereign identity. Training
Center has 27 (Technical 14 and Nontechnical 13)
staffs under the control of Director. Those staffs cover
all electrical, mechanical, computer, electronics, civil
engineering as well as administration and management
department functions. They prepare training/seminar
programs annually and provide services effectively.
The main function is preparing trainings/resource
management/collecting appropriate trainees and other
general management actions.

With the view to expanse its training programs for clients
outside of NEA, upon their request, TC is also conducting
various programs to non NEA staff.

Objectives
=) Provide Knowledge, Skill and Attitude enhancing
tips.

> Supply need based training to NEA employees of
enhancing their work efficiency and enabling them
for serving the customers effectively.

> Train to the employees to enable them to plan,
implement, maintain and operate NEA's system

A YEAR IN REVIEW-

today and in the future.

> Promote knowledge and skill of the employee to
interface them to the changing environment and
technology.

2 Conduct problem oriented interactions, research
and development and seminars relating to service
business.

~> _ Design training packages and implement.

Vision

NEATC is to be strengthened day by day to be a
sovereign academic institution capable to cope with the
training requirements of power sector of the country.
Finally NEA Training center aims to be developed as a
engineering and management center of excellence. It
also aims its academic standard to be comparable with
the best SAARC regional institutions.

Activities in F/Y 2070/71

The term training refers to the acquisition of knowledge,
skills and competencies as a result of the teaching of
vocational or practical skills and knowledge that relate to
specific useful competencies. As Human Resource is one
of the most important ingredients of any Organization,
its development is indispensable for the survival and
advancement of the Organization. So, investment in
training is treated as corporate assets of organization.
NEA, Training Center (NEA, TC) has been providing
need-based short terms trainings covering 2 days to 15
days for NEA employees with an objective to upgrade
their professional knowledge, skills and attitudes of
manpower at operational and managerial levels involved
in the power sector. The training types involve induction,
in services or refreshers and requested as required.
The training programs are designed as per training
needs assessment (TNA) of an organization and at the
personnel level after discussion has been held with the
management and as feedbacks provided by trainees
respectively.

These trainings were conducted on contract with
corporate and DMD office levels of NEA. Altogether 11
nos. of trainings were conducted during the fiscal year
2070/71 as given below.

Name of the Training Non-officer

No. of Participants in Induction
training for the newly recruited
employees in NEA. 71 71

TOD Meter Data Download and
Analysis (Kathmandu (Engi-
neers and Regional Directors)

Biratnagar, Hetauda, Pokhara

and Nepalgunj)

S Office package। 5.
Total number of Participants

In addition to regular training programs, NEA TC has
managed to facilitate the Stress Management Training
Program to all level personnel in this FY 2070/71. The
total numbers of participants in this program were 54.

In this fiscal year 2070/71, study visit was done by NEA
officials team in Asian Institute of Technology (AIT)
Bangkok and similarly AIT officials team visited NEA
Training Center to access training needs assessment
(TNA) of NEA in order to conduct joint training courses in
between both organizations.

Extra Activities

NEA TC is providing rental facilities of Seminar Halls,
Class rooms, Hostel and Ground space to different
parties on their request. Parties like different engineering
colleges for their survey camping, political parties for
their mass meetings and various organizations for the
conduction of seminars, meeting etc are using this
facility. The total income generated from this rental
activity amounts to Rs. 27,06,473. ००.

Short Term Training Courses Conducted in
last 25 years

2070/71 EZ=_

Fiscal Year

हा Officers Level Non-Officers Level Total

हा No. of Training

Nepal Electricity Authority हा 69

NEA's Subsidiary and Associate Companies

CHILIME HYDROPOWER COMPANY LIMITED

Chilime Hydropower Company Limited (CHPCL), a
subsidiary of Nepal Electricity Authority (NEA)was
established in 1996 with the main objective of harnessing
the hydropower potential of the country for the benefit
of the people at large by optimally utilizing the untapped
resources and creating synergy with the private sector.
The company's 51% share belongs to NEA, 25% to
employees of NEA and CHPCL, 10% to local public of
Rasuwa District and the remaining 14% share to the
general Public.The scheme has an installed capacity
of 22.10 MW, generating 20 MW based on the power
purchase agreement with Nepal Electricity Authority
(NEA). The project is designed to generate 137 GWh
energy per annum. The generated energy from this
Project is being fed into the National Grid of Nepal
Electricity Authority (NEA) through a 38 km long 66 KV
transmission line at Trishuli, Nuwakot District.

Chilime Hydropower Plant (CHPP)
In Fiscal Year 2013/2014 Chilime Hydro power Plant
was able to transmit an excess of 13.72 % of energy

in addition to the deemed energy (133.129 GWh).
Generation figures depict that the plant was able to
deliver chargeable deemed energy of 129.880 GWh and
excess of 21.510 GWh Energy out of which 11.233
GWh was paid while 10.277 GWh was for free.

The Plant loading factor was 79.32 % and the total
availability was 96.27% . The delivered energy to
NEA was 151.390 GWh and the energy for internal
consumption and station load amounted to 0.868GWh.
The total energy for different outages was calculated
to be 3.355 GWh which comprised 0.949 GWh of

70 miNepal Electricity Authority

maintenance outage, 0.308 GWh of forced/plant outage
and 2.098 GWh of NEA outage. Based on these figures,
the available capacity of the plant for the fiscal year
2070/71was estimated to be 154.745 GWh.

Under the scope of Corporate Social Responsibility (CSR)
activities in the fiscal year 2013-14, Chilime has spent
almost 5.47 million in community and local development
works like health, education, infrastructure, drinking
water, irrigation etc.

Chilime has launched four hydropower projects with
total capacity of 270.3 MW for construction in parallel
through its three subsidiaries, namely Rasuwagadhi
Hydropower Company Limited (RGHCL), Madhya
Bhotekoshi Jalavidyut Company Limited (MBJCL) and
Sanjen Jalavidyut Company Limited (SJCL). Likewise
Chilime has already applied for the survey license to
Department of Energy Development (DoED), Govt. of
Nepal for the development of other new hydropower
projects to meet the company's target of 500MW
by2020.

Snjen Jalavidhyut Company Limited (SJCL)

Sanjen Jalavidhyut Company Limited (SUCL), accompany
promoted by Chilime Hydropower Company Limited
(CHPCL) was established on 1* February, 2010 AD with
the objective of harnessing hydropower potential of
the county with maximum participation of local people
in the projects' ownership and mobilization of local
resources for the successful implementation of various
hydroelectric projects. As the first initiative the SJCL has
planned to develop two hydroelectric projects, namely,
Sanjen (Upper) Hydroelectric Project (GUHEP-14.8 MW)
and Sanjen Hydroelectric Project (SHEP-42.5 MW) in
cascade, with its own equity and loan from financial
institutions of Nepal. Both the projects' financing
mechanism will be 50:50 Debt: Equity ratio. 51% of
the equity part will be invested by the promoters of the
company, which is composed of CHPCL (38%), Nepal
Electricity Authority (10%) and District Development
Committee (DDC) and all 18 Village Development
Committees (VDCs) of Rasuwa (3%). For financing
the remaining 49% of the investment, SJCL will raise
through share participation of the public, which is
composed of Depositors of Employees' Provident Fund
(EPF-19.5%), Employees of EPF (1%), Employees of
Promoters (3.5%), General Public (15%) and Project
Affected Local People (10%). Brief progresses are as
follows:

A YEAR IN REVIEW-

=) Chilime — Tiloche main access road and access
road to Surge Tank (18 km).

=) Construction of camps, offices and resettlement
buildings in completion stage.

> Consultancy Services: Detail Design and
Construction Supervision Works are in progress.

=) Lot 2 Civil Works: Contractor for SUHEP is
ECI-BGCCPL J/V and that for SHEP is SEW-TUNDI
J/V. In SUHEP, Headrace Tunnel excavation,
Aeration Tunnel, Adit excavation, Headworks
excavation, Diversion channel excavation
etc. are in progress. Total HRT excavation is
106 m. In SHEP, Powerhouse slope protection
works, preparation of penstock adit portals and
preparation of headrace tunnel adits portals are in
progress.

=) Lot 3 Electromechanical Works: Design works are
in progress for both projects.

=) Lot 4  WHydromechanical Works: Design,
Procurement, Fabrication of Pipes and Gates,
Hoisting etc. are in progress for both projects.

=) Lot 5 Transmission Line Works: Detail Design of
132 kV transmission line works of both projects is
in progress. Contract award has been scheduled
for the first quarter of year 2015.

> A total of 324.31 GWh of electricity will be added
into NEA Grid at Chilime Hub upon completion of
these two projects. The total estimated cost of the
two projects is NRs. 7.24 billion.

Rasuwagadhi Hydropower Company Limited
Background

Rasuwagadhi Hydropower Company Limited (RGHPCL),
a subsidiary company of Chilime Hydropower Company
Limited (CHPCL) is
established in Shrawan
17, 2068 as 5 public
limited company for
the development of
Rasuwagadhi Hydroelectric
Project (RGHEP) having
capacity of 111 MW. The
project is located in Rasuwa
district, Bagmati Zone
of Central Development
Region. The project is
accessible by the Kathmandu-Syabrubesi- Rasuwagadhi
road at a distance of 145 km north from Kathmandu.

The company has planned to manage its capital
requirement for the construction of Rasuwagadhi
Hydroelectric project from debt and equity under the
debt equity ratio of 50:50 excluding IDC cost. The
company is managing the debt requirement of the project

from the Employees Provident Fund (EPF) under the term
loan agreement made on Marg 22, 2068 and equity
investment from 51% promoter share and 49% public
share. The details of the share holdings are as follows:

The Project:

The design discharge of the project is 80m3/sec in 040
exceedance of time. The project is a run-of-river type
having the capacity of 111 MW and the annual energy
generation will be 613.875 GWh with the available
gross head of 167.9 m. The headwork site is located
about 400 m downstream from the confluence of Kerung
khola and Lende khola which are the Boundary Rivers of
Nepal and China. The desanding basin and powerhouse
are underground type. The length of headrace tunnel is
4203m.

The construction works of the project has been divided
into three Lots, namely; Lot 1: Civiland Hydro-mechanical
works, Lot 2: Electro-mechanical works and Lot 3:
Transmission line works.

Project has achieved many milestones including signing
Power Purchase Agreement (PPA) with NEA, signing
loan agreement with Employees Provident Fund etc.
In implementation front, the consultant M/S SMEC
International Pty Ltd., Australia has been appointed for
Consulting Services of the project on 3rd December,
2012 and for Lot-1: Civil and Hydromechanical Works
under Engineering, Procurement and Construction (EPC)
contract modality, the Contractor M/S China International
Water and Electric Corporation (CWE), China has been
awarded the contract on 5th January, 2014. Similarly,
procurement for Lot 2: Electromechanical works in Plant
& Design Build (P&DB) contract model is ongoing.

The completion date of the project has been scheduled
on August, 2017.

Lot 1: Civil and Hydro-Mechanical Works

The contractor M/S China International Water and
Electric Corporation (CWE), China is being mobilized to
site from 6th February, 2014 and the current status of
their construction works are as follows:

Lot 2: Electro-Mechanical Works:

For Lot 2: Electro-mechanical Works, the Contract
agrement has been made with VOITH Hydro Pvt. Ltd,
India on 31st July 2014. The Contractor has started the
Preliminary works of the contract.

Lot 3: Transmission Line Works:

The project has completed detail survey of 10 Km double
circuit 132 kV transmission line and detail design is
in progress. Term of Reference (TOR) for IEE has been
approved by Ministry of Energy and the preparation of
final IEE report is in progress.

Similarly, the contractor ANK Construction Co. Pvt.
Ltd. is constructing the Camp Facilities for the Employer

Nepal Electricity Authority m@ 71

A YEAR IN REVIEW-

at Ghatte Khola Gaun of Timure VDC. The project has
carried out rural electrification in the project affected
villages: Dahalphedi, Thuman, Mendo, Lingling and
Timure of Thuman and Timure VDCs. Other corporate
social responsibilities (CSR) activities including the
construction of village road of the Thuman VDC has
been started.

Madhya Bhotekoshi Hydroelectric Project
(MBKHEP-102MW)

Madhya Bhotekoshi Jalavidyut Company Ltd. (MBJCL)
is a public limited company established in 2010 AD to

harness country's hydropower potential at a reasonable
rate with the maximum utilization of resources (both
financial and technical) available in the country. MBJCL
intends to execute construction of Middle Bhotekoshi
Hydroelectric Project of capacity 102 MW located in
Sindhupalchowk District of Bagmati Zone of the Central
Development Region. The project works are splitted into
three main contract packages:

Lot 1 Civil and hydro-mechanical works on EPC contract
model.

Lot 2 Electromechanical works on PDB contract model.
Lot 3 Transmission line and substation on PDB contract
model.

Key Achievements:

The project has achieved all major pre-construction
milestones that are required for the execution of the
project. Following are highlights of the key achievements
till date:

72 miNepal Electricity Authority

Description Completed on

i Power Purchase agreement with 14-Nov-11
NEA

2 Study License in the Name of 8-Apr-11
MBKHEP
Financial Closure with Employee। 8-Dec-11
Provident Fund

4 Public Hearing 15-Aug-12

5 Contract agreement With Consult-। 4-Nov-12
ant

Sakhuwa(250m)
9।

10 Contract Agreement with LOT 1]। 01-Jan-14
Contractor

11 Commencement of Works (LOT 1। 11-Feb-14
Contract)

12 Contract Agreement with LOT 2। 10-Jun-14
Contractor

Progress Status:

The Project is in the initial take off stage where by LOT 1
—Civiland Hydro mechanical Contractor has already been
mobilized and the LOT 2-Electromechanical Contractor
is about to obtain the Commencement order. The points
stated below will give the quick view on overall current
status of the Project

Land Acquisition/Lease: Approx.255 Ropani out of 360
Ropani of Land procurement completed; Evaluation
and negotiation of existing household completed and
distribution of compensation for the same in progress;the
project has already put the request on District Forest
office for Government Land Leasing and it has to be
decided from the Cabinet.

LOT 1 Civil and Hydro mechanical Contract: Geological
boreholes completed; Manpower and Equipment
Mobilization — in Progress; Preliminary Design
report submitted and is in the process of review;
Construction of relevant Infrastructures (Access Road,
Contractor's Camp facilities Workshop, Batching Plant,
Laboratory..Etc) in progress.

LOT 2 Electromechanical Works: Contract agreement
made with Andritz India Private Limited; Has planned to
provide Commencement is order on or before September
2014.

Infrastructures:Construction of Camp _ facilities for
Employer and Consultant in Progress; Excavation of
Diversion tunnel (Length 330m) completed by Himal
HydroandhasbeenhandedovertoLOT 1 Contractor;
Test Tunnel at Adit 1 already completed.

A YEAR IN REVIEW-

Construction planning and scheduling
The planned Commercial operation date is in 9 June
2017.

UPPER TAMAKOSI HYDROPOWER LIMITED
Upper Tamakoshi Hydropower Limited (UTKHPL) was
established on 09 March 2007 (2063 Falgun 25 B.S.) as
a subsidiary company of NEA with the primary objective
of developing 456 MW Upper Tamakoshi Hydroelectric
Project (UTKHEP) utilizing domestic financial resources.
The majority shares (51%) of UTKHPL belong to four
public entities, namely, Nepal Electricity Authority
(NEA), Nepal Telecom (NT), Citizen Investment Trust
(CIT) and Rastriya Beema Sansthan (RBS) with 41%,
6%, 2% and 2% stakes respectively. The rest of the
equity capital will be raised from general public (15%),
residents of Dolakha district (10%), contributors in
Employees' Provident Fund, EPF (17.28%), NEA and
UTKHPL staffs (3.84%) and staffs of debtor institutions
(2.88%).

A seven-member Board of Directors representing 4 from
NEA, one each from EPF and NT and one from public
shareholder (to be nominated) has been constituted at
present. The board is being chaired by the Managing
Director of NEA, whereas one member each from CIT
and RBS represents as invitee in the board. The company
plans to issue the shares to the residents of Dolakha
district and contributors of EPF in the Fiscal Year of
2014/2015.

Project Features

UTKHEP, one of the national pride projects of Nepal, is
located in Lamabagar VDC of Dolakha District in Central
Development Region of Nepal. UTKHEP is a run-of-the
river development with a live storage volume sufficient
for four hours daily peaking operation. The project
will generate 2,281 GWh of energy annually with the
available gross head of 822 m and design discharge of
66 m3/s. The Project comprises 22 m high and 60 m
long diversion dam integrated with 35 m wide intake
on the right bank of Tamakoshi river, 225 m long twin
settling basin, about 8 km long headrace tunnel, two
vertical penstock shafts, underground powerhouse
cavern (142m x 13m x 29m), transformer cavern (167m
x 13m x 17.5 m) and about 3 km long tailrace tunnel.
The electro-mechanical equipment consists of six sets
of vertical Pelton Turbines (Rated Power of 79.5 MW
each) coupled with six sets of synchronous generators
(Rated Power of 90 MVA each). The generation voltage
of 11 kV will be stepped up to 220 kV by 18 (plus one
spare) numbers of single phase transformers of rated
capacity 90 MVA each. The energy generated from the
project will be evacuated to the national grid at Khimti
Sub-station through 47 km long double circuit 220 kV

transmission line.

Financial Arrangement

The approved cost estimate of the project prior to
bidding of different construction lots and consultancy
services in different stages was 456 MUSD excluding
Interest During Construction (IDC). The project cost
has been forecasted as 463 MUSD due to increments
in administrative expenditures and market prices,
increments in costs of consultancy services. with
increase in scope of works and additional time, additional
taxes and duties to be paid, and modification in design of
lower parts of headrace tunnel including some additional
works. The project is being financed through 30% equity
and 70% debt proportions. As per the separate loan
agreements, EPF will invest NRs. 10 Billion as loan and
NRs 2 Billion as debenture in the project, whereas NT
will invest NRs. 6 Billion as loan. Similarly, CIT and RBS
each will invest NRs. 2 Billion as loans. Furthermore,
Government of Nepal (GoN) has decided to provide
loan upto NRs. 11.08 Billion as the gap funding during
implementation of the project.

Power Purchase Agreement (PPA)

PPA has been signed with NEA on 29 December 2010.
As per the PPA, average purchase rates have been fixed
as NRs. 3.50 per unit for the base year (2010/11) and
NRs 4.06 per unit at Commercial Operation Date (COD).
After 9 years of COD with annual escalation of 3%, the
average purchase rate will remain as NRs. 5.30 per unit
throughout the tenure of PPA.

Project Status

The project is being implemented with four separate
contract packages: (i) Lot 1 - Civil Works, (ii) Lot 2 -
Hydro-mechanical Works, (iii) Lot 3 - Mechanical and
Electrical Works and (iv) Lot 4 - Transmission Line &
Substation Works. The respective Contractors for those
lots are (i) Sinohydro Corporation Ltd., China, (ii) Texmaco

Rail and Engineering Ltd., India, (iii) Andtriz Hydro
GmbH, Austria and (iv) KEC International Ltd., India. J/V
Norconsult AS, Norway — Lahmeyer International GmbH
Germany is assigned as the Engineer/Consultant for
construction supervision of the project.

The project has achieved physical progress of 66.5%
by the end of the fiscal year 2070/71 (2013/14). The

Nepal Electricity Authority हा 73

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

breakdown of progress in major civil works Is as follows:

SN Project Components

71.1%
66.0%
98.2%

0

4.6%

Progress

Powerhouse/Transformer Caverns 100.0%
Tailrace Tunnel Excavation 94.6%
6। P/H and Transformer Caverns Concrete 48.8%

The Lot 2 Contractor has installed the second stage
embedded part such as guide frames, sill beams,
alignment bolts, wall plates of dam stoplogs and dam
radial gates No. 3806 4. The Contractor is also continuing
its work for design and fabrication according to its
schedule. The Lot 3 Contractor has started its installation
works in the powerhouse. Spiral distributor installation
works for Unit 1 to Unit 4 are ongoing, whereas pit liner
installation work for Unit 5 is almost completed. The Lot
4 Contractor has completed the detailed survey of the
transmission line route from Gongar to Khimti Substation.
Land acquisition process has been initiated for first 35
km of approved section of the transmission line route
alignment and tower foundation works will commence
immediately after the ongoing monsoon season. As the
problem of land acquisition has not been resolved yet
for new Khimti Sub-station, detail survey works around
existing Khimti Sub-station have been carried out to seek
as an alternate option.

The commissioning of all six units and thereby overall
completion of the project is targeted to be achieved by
the end of July 2016, which is about 4 months delay
from the base line schedule. This delay is mainly due
to design modification of headrace tunnel and time
taken in crack treatments of powerhouse crown etc.
However, this delay may further increase due to ongoing
difficulties in the construction of vertical penstock shaft
and stoppages of works in headrace tunnel downstream.
The detail design of Rolwaling Diversion as the second
stage development of the project will be carried out in
the current fiscal year for which the RFP documents
have been issued to the short-listed consulting firms.

TANAHU HYPROPOWER LIMITED (THL)
Tanahu Hydropower Limited (THL) is a_ subsidiary
company of Nepal Electricity Authority (NEA) established
in 2012 to develop 140 MW Tanahu Hydropower Project
("the Project") (formerly, Upper Seti Hydropower
Project). The Project site is situated 150 km west of
Kathmandu on Seti River near Damauli of Tanahu District
in Gandaki Zone.

74 miNepal Electricity Authority

The Project is a storage type hydropower project with an
estimated average annual energy generation of 587.7
GWh (Years 1-10) and 489.9 GWh (Year 11 onwards).
The project is designed for peaking up to six hours in dry
season. The main components of the Project are a 140
m high concrete gravity dam with a crest length of 175m
on the Seti River and a reservoir with a total surface area
of 7.26 km? at FSL (EL 415m). The waterway consists
of a 7.4 m diameter, 1,203 m long headrace tunnel. A

Proposed Dam site of Tanahu Hydropower Project

117 mlong 7.4m diameter tailrace tunnel will discharge
the tail water back into the Seti River. An underground
powerhouse measuring 27m wide x 46m high x 97m
long will be built approximately 6 km (along the river
course) downstream of the dam. Access roads (totaling
7.3 km) and several temporary and secondary access
roads will provide access to the Project area. Temporary
facilities include contractor's camps, equipment and
maintenance yard, office areas, project staff's camp
area.

Under construction Bridge over Seti River

The project will also include rural electrification (RE)
and transmission lines (TL) component. A new 220 kV
double circuits TL will evacuate the generated power to
the Bharatpur Substation. The length of the transmission

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

line corridor is 39 km. Additionally, the Project will
electrify villages through its Rural Electrification (RE)
Program in 18 VDC areas.

The project is being co-funded by Asian Development
Bank (ADB), Japan International Cooperation Agency
(JICA), European Investment Bank (EIB). Loan agreement
for an amount of US$ 150 million was signed with ADB
on 21" February, 2013. Similarly, loan agreement for an
amount of US$ 183 million was signed with JICA on 13"
March, 2013 and that with European Investment Bank
(EIB) for an amount of US$ 70 million was signed on 7
May, 2013. Further process is going on for increment of
investment amount by EIB. GoN and NEA fund will be
used for the preparation of preconstruction infractures.

ADB loan will be used for the construction of head

Test audit excavation for additional geological study at dam site.

works, rural electrification, transmission line, and that
for JICA for the construction of tunnel, power house,
and supply and installation of hydro-mechanical and
electromechanical equipment. The project is planned to
commence the construction work in 2015 and complete
in 2021. Estimated IRR of the project is twelve percent.
Land acquisition for access road and camp area has been
completed and preliminary actions for land acquisition
in reservoir area have been initiated. Development
of preliminary infrastructures is in progress. RCC
Bridge over Seti River is under construction and will
be completed in FY 2071/0072. Additional test audit
excavation, exploratory drilling for geological study
of dam and power house is under progress. The
construction of access road and construction power
supply will be initiated in the FY 2071/072. Supervision
consultant will be deployed in the FY 2071/072 and
contractor selection for project construction works will
be completed in the FY 2071/072.

TRISHULI JAL VIDHYUT COMPANY LIMITED
(TUVCL)

Trishuli Jal Vidhyut Company Limited (TJVCL) is a joint
venture company of Nepal Electricity Authority (NEA)
and Nepal Doorsanchar Company Limited (NDCL) having
equal equity share participation apart from other equity
share holders. The main objective of this company is
to develop the Upper Trisuli 3B Hydroelectric Project
(42 MW) located in Nuwakot and Rasuwa District. This
project is cascade project of Trisuli 3A Hydroelectric
Project (60 MW) and therefore, operates with respect to
Upper Trisuli 3A HEP. The equity share structure of the
company is as follows:

Nepal Electricity Authority: 30 %
Nepal Telecom: 30 %
VDCs and DDCs of Nuwakot and Rasuwa: 5%
Financial institutions formed by the natives of Rasuwa
and Nuwakot District: 5 %
Natives of project effected districts (Nuwakot and
Rasuwa): 10 %
General Public: 15 %

Employees of NEA and Nepal Telecom in proportion to
employees ratio: 5 %

Project Status
The feasibility study of the project was completed by
Nepal Electricity Authority in fiscal year 2007/08. TJIVCL
has carried out the review of the project and updated
the project parameters based on the site condition. The
company TJVCL by its own engineer has completed
the detail engineering design of the project in the fiscal
year 2012/13. During the detail design, the project has
been updated to 42 MW with the gross head of 99.31
m, design discharge of 51 m?/s, total energy of 337.88
GWh, the update cost of project is 7745.08 Million NPR.
The company has targeted to commission this project by
the end of year 2018 AD. Following works are carried
out by the company
> Acquisition of about 76 Ropanies of the private
land has been completed.
> The construction of camp facilities shall starts
from Bhadra 1, 2071.
> The generation license of the project has been
acquired by NEA. The company TJVCL has given
the application for the transferring the license and
updating the installed capacity from 37 MW to 42

MW.

> Power Purchase Agreement (PPA) with NEA is in
process.

> First round consultation meeting has _ been

conducted with the potential financing institutions
such as a) Nepal Doorsanchar Company Limited, b)
Provident Fund, c) CIT, d) HIDC.

=) Invitation letter has been issued to all VDCs and

Nepal Electricity Authority हा 75

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

DDCs of Nuwakot and Rasuwa district for their
promoters' shareholder participation.

> Project has carried out the short listing of the
international consultant and selection of the
consultant shall be carried out within two months.

=) Tendering of the Test Adit has been carried out
and expected to start the construction of test adit
within 2 months.

> The EIA study of Upper Trishuli 3B Hydroelectric
Project (37 MW) has been completed by the
local consultant and submitted to the Ministry of
Environment for the approval. The updating study
of EIA for the installed capacity 42 MW shall be
carried out in the fiscal year 2070/71.

Proposed Powerhouse site

POWER TRANSMISSION COMPANY
NEPAL LIMITED (PTCN)

In Mid 2006 IL&FS, NEA and Power Trading Company
of India (PTC India) took initiative to facilitate the
development of transmission interconnection between
India and Nepal for the mutual interest and benefit of
both the countries. For this purpose Power Transmission
Company Nepal Limited (PTCN) and Cross Border Power
Transmission Company India (CPTC) were established.
The responsibilities of these companies' include
development, construction, operation and maintenance
of the Dhalkebar-Mujaffarpur 400 kV Transmission
Interconnection (D-M Line). The PTCN will construct,
operate and maintain an approximately 41.5 km of
transmission line from Dhalkebar to Bitthamod near
Indo-Nepal border in the Nepalese territory and around
87 km of line in India will be constructed, operated and
maintained by CPTC. This Transmission interconnection
will be initially charged at 220kV and would be operated
in Synchronous mode between Indian and Nepalese
Electrical grids.

The Nepalese portion of the project cost includes NRs
1503.57 million (USD 20.0 million) out of which USD

76 miNepal Electricity Authority

13.2 million is to be funded by government of India
through soft loan as a line of credit to GoN through
Exim Bank of India and remaining part would be funded
through shareholder's equity. The debt equity ratio is
70:30. Subsequently, financial closure between NEA
and PTCN has been achieved.

Two separates Agreements namely Implementation and
Transmission Service Agreement (ITSA) that governs
the legal provision for the construction, operation,
maintenance of the line and payment mechanism by
NEA and Power Sale Agreement (PSA) with PTC India
for the purchase of 150 MW of power in long term basis
has been signed on December 12" and 13", 2011.
Joint Venture cum Share Purchase Agreement (JV
cum SPA) was signed on 5th April 2014 among
NEA, POWERGRID Corporation of India Ltd (PGCIL),
Hydroelectricity Investment and Development Company
Ltd. and lIEDCL India. Thus the shareholder of PTCN has
been fullfilled. The shareholder pattern is as follows:
NEA - 50%, PGCIL India - 26%, HIDCL - 14% and IEDCL
- 10%

The agreement between Power Transmission Company
Nepal Limited (PTCN) and M/s Tata Projects Limited
(TPL) for Construction of Dhalkebar-Bhithamod 400kV
Transmission Line (Nepal Portion) was held on 19th
Dec' 2013. The cost of Award is 7.03 Million US dollar
without taxes and VAT and the construction period is 16
months.

The contract between PTCN and TPL to execute
the works under the scope has been approved from
Exim Bank of India. PGCIL India retained as Project
Management Consultant (PMC) for execution of the
400kV D/C Twin Moose of Nepal portion of transmission
line. The contract between PTCN and PGCIL India was
held on 13th August 2012 and the financing contract
for PMC has come into effect from dollar Line of Credit
through Exim Bank of India on 20th June 2014.

As of Asadh 2071, Route alignment of complete route
length has been completed. Detailed survey work and
Check survey work have been completed and approved.
All tower locations have been identified in the field.
Tower spotting data, sag template curve, foundation
drawings, structural drawings and bill of materials of
tower type DA, DB, DC and DD has been approved. Soil
investigation is in progress. Out of 115 towers 81 nos.
lie in Mahottari district and rest are in Dhanusha district.
Public notice for land acquisition in Mahottari district has
been published. Civil foundation works are started on
8th July 2014 from Mahottari district and are going on.
Master list of materials/equipments has been approved
from Ministry of Finance. LC opening has been
completed.

Central Activities

1. Internal Audit Department

The Internal Audit Department, guided by the Audit
Committee and led by the Director is responsible for the
planning, implementation and monitoring & evaluation
of financial, technical and management audits based on
enterprise risks. The department performs the aforesaid
audits on quarterly basis and reports to the Audit
Committee and Managing Director of NEA. Among these
audits, financial audit is performed basically to help the
final audit whichis mandatory by law, and other audits are
performed to evaluate the directorate-wise performance
and to support managerial decision making. Though
the internal audit report is remarkable and valuable
to the organization, the implementation part is yet to
be regarded by high level management for persistent
commitment. As internal audit could play a vital role
in enhancing NEA's performance in the sectors of
internal control system, maintaining financial discipline,
managerial efficiency and technical efficiency, it should
be well-equipped with qualified, trained and motivated
employees. The division-wise summaries of the audits
performed during FY 2013/14 are given in the following
paragraphs in brief:

Audit Committee:

As per international practices and ०0 provide
independency to the internal audit system as well
as corporate governance, NEA _ has_ incorporated
the concept of Audit Committee consisting of three
members, headed by a member of the NEA Board and
two peripheral sectoral experts. The committee, formed
1177 2011/12, is responsible for reviewing the accounts,
financial statements and reports of final audit as well as
internal audit. Among other works, it has prepared the
Audit Operating Procedures and submitted to the Board
of Directors of NEA for approval.

Financial Audit:

The financial audit covers the audit of internal control
system, compliance with existing rules and regulations,
financial discipline and fairness of financial statements.
During FY 2013/14, Financial Audits were carried out in
94 out of 156 budget centers of NEA till the end of second
quarter of FY 2013/14. The audit of transactions of the
third quarter has already started. The status clearing
out audit observations 15 generally not satisfactory. The
details of financial audit shall be included in the Annual
Audit Report for FY 2013/14.

Technical Audit:

The technical audit covers the audit of technical norms
and standards, guidelines, energy balance, preventive as
well as breakdown maintenance, condition monitoring,
energy optimization and electricity loss. Due to
insufficiency of technical staff, the division could carry
out technical audits of a few critical and risk based offices
during FY 2013/14. The major non-compliances were
generally related to equipment & plant maintenance,
especially in the forms of delay in maintenance works
and poor records of maintenance history. A loss analysis
exercise for FY 2012/13 was carried out by the division,
and based on it's learnings a detailed loss analysis report
for FY 2013/14 is expected to be prepared. The details
of technical audits including the loss analysis report shall
be included in the Annual Audit Report for FY 2013/14.

Management Audit:

The management audit covers the review = and
implementations of managerial plans, policies,
procedures, programs and _ targets, procurement
management, organization structure, job analysis,
accountability and monitoring & evaluation. Due to
deficiency of management audit staff, the division could
carry out management audit of a few regional and other
offices during FY 2013/14. The details of management
audit shall be included in the Annual Audit Report for FY
2013/14.

Risk Management Unit:

The Risk Management Unit, which is a relatively new
concept for managing risks within the organization has
been recently established. This unit has been formulated
to collect risk information based on risk indicators
and analyze and link them with other activities of the
entity. It is also responsible for the establishment of
directorate-level enterprise risk management team and it
supports the preparation of the enterprise risk framework
for risk management.

Capacity Building:

A customized training program was conducted for senior
and junior officers in New Delhi by the Institute of Cost
Accountants of India during June, 2014 to enhance
their auditing skills and transfer professional knowledge
related to performance' auditing, procurement
management, risk management, computer based IT
auditing and other issues of internal audit.

Nepal Electricity Authority हा 77

A YEAR IN REVIEW-

2. NEA Board Matters

The then Minister of Energy Mr. Uma Kanta Jha was
Chairman of the NEA Board till Bhadra 26, 2070.
Thereafter the then Energy Secretary Mr. Biswo Prakash
Pandit assumed the chairmanship of NEA Board from
Aswin 26, 2070 to Falgun 6, 2070. Energy Minister
Radha Kumari Gyawali is presently presiding the NEA
Board since Baisakh 14, 2071. Energy secretary Mr.
Rajendra Kishor Chhetri joined the NEA Board as an
ex-officio member from Ashad 6, 2071 and the then
Finance Secretary Mr. Yub Raj Bhusal was NEA Board
ex-officio member from Ashad 6, 2071 to Shrawan 9,
2071.

During Fiscal Year 2013/14, altogether 21 Board
meetings were held. Many important decisions were
taken during this period. Approval of Deputy Managing
Director's Job Description, establishment of Projection
Management Directorate, Pension Fund Regulation,
amendment to Managing Director's/General Manager's
condition of service Regulation were some of the Board
Decisions.

3. Loss Reduction Division

Loss and Leakage Control Activities:

This division headed by Manager, is entrusted with the
key responsibility to conduct and monitor electricity
loss and leakage all over NEA. The major objectives of
this division are to conduct activities related to reduction
of electricity theft, tampering, leakage and loss control
which aims to minimize the overall electrical loss of
Nepal Electricity Authority.

Loss Reduction Division 15 also responsible for
conducting field raid Operation as and when required.
Beside these activities this division is also responsible
for involvement in the technical calculation and billing
amount that is to be charged for energy loss due to meter
tampering, pilferage, outage, wrong MF calculation and
wrong connections. So, it has to perform its activities
successfully to live in close relation with DCS.

The division monitors the present situation of electricity
loss and leakage in various Distribution Centres and also
informs about the methods adopted by other neighboring
countries for loss minimization and actions that can
accordingly be taken in Nepal.

Target of Loss Reduction Division (FY 2070/2071): To
support NEA overall loss reduction target of 1.5% this
year, loss reduction division had set target of 15,00,000
unit recovery through effective and cross verification
of NEA consumers through field visit throughout NEA
distribution Centers. Division has targeted city areas,
tamper infected areas and rural community Consumers.
Beside the approved annual work plan loss reduction
division also conducts activities and sets target as

78 miNepal Electricity Authority

directed by MDNEA as and when required.

Target Vs Achievement of Loss Reduction Division:To
achieve the defined target of recovery of 15,00,000
units, loss reduction division has visited DCS under six
different regional offices namely Hetauda, Biratnagar,
Attariya, Nepalgunj, Butwal and PokharaROs, covering
five development region of the country. This year Loss
Reduction Division has conducted data download of 315
TOD meters and sudden check andcross verify 17, 3-0
whole current meters.

By the end of this fiscal year loss reduction division has

Photo 2: Data being downloaded from
TOD meter during field visit to the consum-
ers under Tikapur DCS.

Photo 1: Data being downloaded from
TOD meter during cross inspection visit to

the consumers under Bhairahava DCS.

recovered 14,92,219.00 units and forwarded the letters
to the concerned Distribution Centers and Regional
Offices for billing purpose of missing units. Details of
units to be billed are listed below:

Regional Office Number। Bill Units। Remarks

of meter

inspected
Biratnagar RO (Anarmani,
Bhadrapur, Rangeli, Bel-

110 228633
bariDCS)
Hetauda RO (Birgunj, Simara। 55 633915
DCS

Nepalgunj RO (GhorahiDCS)। 24 479125 Swargad-
wariBidhut-
Samuday-
ikSanstha
(02-29-110)

Butwal RO ( Bhairahawa DCS)। 62 21303.87 Unit calcula-
tion is yet to
be done for
CT outage.

5। Pokahara RO ( Gagangaud- 26 9384.05
aDCS)

Attariya RO (Tikapur,
Dhangadi, Mahendrana-
garDCS)

119858 Unit calcu-
lation is yet
to be done
for CT out

Even though this division has achieved its 99.48
target and perform loss reduction activities broadly
and effectively it could have recover more units if
human resources are fulfilled according to its approved
"Darbandi".

Administration Directorate

Administration Directorate of NEAis responsible for the management of human resource, logistic support, legal advice
and arbitration, property management and promotion of public relation functions. Timely amendment of personnel
administration regulation and financial administration regulation also falls under the jurisdiction of this Directorate.
This Directorate is led by a Deputy Managing Director and supported by Four Departments, namely, Human Resource
Department, General Services Department, Legal Department and Recruitment Department each led by a Director.

Meanwhile, 34 employees were censured, 41 employees

Human Resource Department
were suspended, promotion of 2staffs were withheld

Human Resource Department is responsible for executing

manpower planning, recruitment, training and capacity
development, disciplinary actions, implementation of
staff welfare activities and other human resources related
functions.

By the end of FY 2013/14, the total number of staff stood
at 8,699 while the approved positions remained at 11,142.
During the year under review, 382 employees were retired
out of which 35 employees took voluntary retirement and

and yearly increment in the salary of one staff was also
withheld. Similarly, 15 employees got removal from
service out of which 14 employees were charged of
having long absenteeism without sanction of leave and
one was charged for irregularity. As a part of staff welfare
activities, additional financial support was provided to10
employees for treatment of different hard diseases and
"Kaaj Kriya Anudan" was provided to 368 employees.
Similarly, under the staff welfare loan facility, a total

sum of NRs. 13,67,80,000.00 was disbursed as loan to
employees for purchase, construction and maintenance
of house/ land, for carrying out social event/ rituals
and so forth. Similarly, a sum of NRs. 1,78,32,886.00
was disbursed to various employees under accidental
insurance and medical facility scheme and NRs.
21,91,40,384.16 was disbursed under life insurance
scheme.

services of 16 employees were terminated on charge of
long absence. Similarly, 39 employees resigned and 36
employees passed away. During the year under review,
667employees of different levels were promoted to higher
levels based on their performance evaluation and 195
employees of different levels were promoted to higher level
based on internal competition. During fiscal year 2013/14,
the Department filed 79 vacant posts of non-officer levels

The statistics of employed personnel till the end of fiscal year 2013/14 is given in the table below:

Approved Position Existing Situation

Level

Service Regular Project Total Permanent Periodic Daily Wages / Total
Contract
i ]

7 0 [7 2 0 0।

गा 50 125 526 52 tft
लो
०
गुफा [3358 10।
गुणा [924 10।
po

Nepal Electricity Authority हा 79

A YEAR IN REVIEW-

General Service Department

General Service Department (GSD) is unit responsible
for vehicle management, logistics management,
maintenance of vehicles and corporate office buildings,
property management and security management of
NEA's corporate offices. It also closely works with other
departments regarding the property issued of NEA. The
Department is also responsible for dealing with media,
organizing press conferences and releasing ceremonial
activities.

The Department also publishes Vidyut, a half yearly
magazine which covers the wide spectrum of technical,
managerial, administrative and other activities of
NEA. It also appoints the advertising agency for the
publication of various notices of NEA. The Department
5150 registers the complaints from _ stakeholders
regarding service delivery and forwards them to the
concerned units for necessary action. During the year
under review, 495 such complaints were registered and
forwarded to concerned units for the necessary actions.
Out of 495 such complaints, 468 complaints were
settled/addressed and remaining complaints are under
settlement procedure.

During the year under review, the Department updated
the records of land owned by NEA and their utilization.
The total land available with NEA is 30,807-13-3-1
Ropanis as per record of Assets Management Section.
In addition, the Department was also entrusted with
the responsibility of organizing sports activities for
staffs. The Department established NEA Sports Club to
encourage participation of staffs in the various sports
competition. NEA was successful in securing First and
third position in the inter-corporation Quiz tournament
organized by Public Enterprises Employees Association
of Nepal (PEEAN) in 2014.

- नका

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~~।... &

weg ९२: oe!
a। as

७
छी न, A 4

aah he

Legal Department

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

During the fiscal year under review, the Department
provided158 numbers of legal advices to the NEA
Management & other departments. Out of 132
cases registered in different courts during fiscal year
2013/14, NEA won 27 cases, lost 6 and the other
cases remained sub-judice. Some disputes related to
contracts of construction projects are presently being
resolved through arbitration and some others are under
consideration.

Organization Restructuring

As per the NEA's 681th Board Decision held
0n2071/4/3,Recruitment Department has been created
under Administration Directorate. This new Department
is basically responsible for recruitment and promotion
activities of NEA.

बा - >: .

08

Photo: The winners of inter-corporation Quiz tournament organized by (PEEAN) in 2014

80 miNepal Electricity Authority

Finance Directorate

The Finance wing, led by a Deputy Managing Director, is
responsible to carry out overall financial and accounting
functions of NEA. Key responsibility areas include
revenue administration, accounting system operation,
budgetary control, and treasury management.
The finance wing is also responsible for financial
planning, monitoring, and control at corporate level of
decision-making process. Two functional departments,
namely Corporate Finance Department and Accounts
Department, are structured to support the finance wing.
The Corporate Finance Department is entrusted to carry
out various functions relating to revenue, budget, and
treasury management. Likewise, Accounts Department
is responsible for consolidating overall accounts within
NEA and prepares entity and group financial statements.
It also deals with the statutory audit, taxation issues,
follow up and settlement of internal and external audit
qualifications. Both Departments are headed by an
individual Director responsible for its functional areas
of operation and report directly to the DMD,Finance.
A separate project office, Institutional Strengthening
Project, has been set up to implement Integrated

Financial Management Information System (IFMIS)
under Accounts Department.
Energy generation from NEA's hydropower plants

remained stable during the year 2013/14. NEA recorded
2,290.78 GWh of hydro electricity generation including
small power plants against the target generation of
2,261.72 GWh. It is a nominal growth of 0.78 %
against the previous year record. The generation from
Thermal Plants recorded as 9.56 GWh against the target
generation of 42.50 GWh. NEA increased power import
from India by 35.70 % as compared to previous year to
minimize load shedding especially in dry season. Total
energy import from India is recorded 1,072.23 GWh
as compared to import of 790.14 GWh previous year.
Similarly, power purchase from IPPs within Nepal also
increased to 1,258.94 GWh which is higher than 82.96
GWh from the previous year purchase. The total energy
purchase constitutes 46.00 % from import and 54.00
% from local IPPs. Total energy available in the NEA's
system increased by 8.77 % over the previous year's
figure of 4,258.08 GWh to reach 4,631.51 GWh. Out
Of the total available electricity NEA could sell only
3,447.58 GWh of energy to its consumers and system
losses accounted for the rest. During the year, total
energy sales increased by 9.05 %. The system losses
reduced to 24.79 % from 25.11% in the FY 2012/13.

NEA''s consumer base increased to 2.71 million including
community and bulk buyer. The domestic consumer
category, whichholds 2.56 million consumers, continued
to be the largest consumer category with 94.37 % share
of entire consumers. Domestic and Industrial consumer
category contributed 42.91% and 34.64 % to the
gross electricity sales revenue respectively. Rest of the
consumer category generated remaining 22.45 % of
gross sales revenue.

During the FY 2013/14, net sales revenue increased
by 8.95 % amounting to NRs. 27,624.28 million. NEA
allowed NRs. 588 million as rebate in order to encourage
consumer to pay their bills earlier than credit period.
Income from other service such as surcharge, dividend,
lease rent, sale of goods and service charge amounted
to NRs. 1,596.84 million. NEA's total income including
income from other services increased to NRs. 29,221.12
million as compared to NRs. 27,222.99 million in the
previous year. The growth in the overall revenue income
is about 7.34 % as compared to previous year.

NEA's overall operating expenses increased from NRs.
25,128.15 million in FY 2012/13 to NRs. 28,873.79
million for the year 2013/14. The increase in the expense
is about 14.91 % as compared to the previous year. The
power purchase expenses continued to be the largest
cost component of the total operating expenses. NEA
paid NRs. 16,388.31 million to the IPPs and for import
from India during the FY 2013/14. The power purchase
cost represented 56.75 % of the total operating cost
and 59.32 % of the total electricity sales revenue. The
power purchase cost increased by 20.75 % for the FY
2013/14 due to increase in volume of purchase and to
some extent of normal increase in price. Other operating
expenses included generation, transmission distribution,
and administration, which reached NRs. 1,679.20
million, 450 million, 4,855.57 million and 1,314.23
million respectively.

Interest costs on long-term borrowings increased by
1.61 % over the previous year's figure to reach NRs.
4,104.75 million. Likewise, depreciation charge on
fixed assets increased by nearly 1% that accounted
NRs. 3256.48 million in the FY 2013/14. NEA realized
foreign exchange translation gain of NRs. 56.58 million
in FY 2013/14 due to appreciation of Nepalese Ruepees
vis-a-vis the Japanese Yen loan for Kulekhani Disaster
Prevention Project. NEA has provisioned NRs. 2,053.40
million towards long term employee liabilities in respect

Nepal Electricity Authority m™ 81

A YEAR IN REVIEW-

of gratuity, pension, medical facilities and accumulated
leave facilities under employees' benefit plan scheme.

NEA continued 1०0 ८6 deteriorating — financial
performance for the FY 2013/14. Despite the growth
in total revenue, it incurred a net loss of NRs. 5,704.24
million for the year under review. The major cause for
attributing this loss is felt to be the higher cost of services
as compared to the electricity sales tariff.

The total receivables at the end of FY 2013/14 remained
NRs 7,813.24 million, which is equivalent to 104 day's
sales revenue. Of the total receivables, street light
dues of different Municipalities from FY 2009/10 to FY
2013/14 and VDCs from FY 2011/12 to FY 2013/14
amounted to NRs. 2,152 million.

At the end of the FY 2013/14, net carrying amount
of property, plant and equipment reached to NRs.
84,651.30 million. During the year, NEA completed
various distribution system reinforcement and rural
area electrification projects resulting in capitalization of
NRs. 3,984.31 million in non- current assets under the
category of property, plant, and equipment. Property,
plant and equipment constitutes 57.63% of total
non-current assets of NEA.

During the year, NEA invested significant amount of
resources in various projects relating to generation,
transmission, and distribution. Capital work in progress,
the second largest element of non-current assets,
figured to NRs. 50,812.58 million with addition of NRs.
14,953.72 million during the review FY 2013/14. The
sources of investment included government equity and
loan, foreign loan and grants, and NEA's internal cash
generation. The ongoing major hydroelectricity projects,
namely Chameliyagadh (30 MW), Kulekhani III (14 MW),
Upper Trishuli 3A (60 MW) and Rahughat (32 MW) and
various transmission systems of different voltage level
contributed to increase capital work in progress.

NEA invested NRs. 4,600 millions in subsidiaries,
associates, joint ventures and others during the FY
2013/14. NEA holds equity share capital of NRs.
489.60 million in Chilime Hydro Power Company
Limited (CHPCL), a subsidiary company of NEA. CHPCL
has initiated to develop about 27O0MW projects namely
Upper Sanjen HEP (14.6 MW), Sanjen HEP (42.5MW),
Middle Bhotekoshi (1OOMW) and Rasuwagadhi (112
MW). NEA is committed to take 10% equity of each
company, Sanjen Hydro Power Company Limited and
Middle Bhotekoshi Hydro Power company Limited and
18 % equity of Rasuwagadhi Hydro Power Company
Limited . During the year, NEA invested NRs. 530
million in different companies promoted by Chilime

82 miNepal Electricity Authority

Hydro Power Company Limited. Investment on those
company included NRs. 150 million in Sanjan Hydro
Power Company Limited, NRs. 210 million in Middle
Bhotekoshi Hydro Power Company and NRs. 170 million
in Rasuwagadhi Hydro Power Company Limited. In
the FY 2013/14, NEA received 10% cash dividend
and 30 % bonus share from CHPCL. During the FY
2013/14, NEA, with its loan provider Nepal Telecom,
Citizen Investment Trust and Rastriya Beema Sansthan,
invested NRs. 4,000 million towards the loan capital for
Upper Tamakoshi Hydro Power Company Limited under
subsidiary financing agreement. At the end of the FY
2013/14, total investment in Upper Tamakoshi Hydro
Power Company Limited reached NRs. 4,341.90 million
as equity and NRs. 4,000 million as long term loan. NEA
holds 41 % interest in equity share capital in Upper
Tamakoshi Hydro Power Co. Ltd.

Other investment of NEA includes equity investment in
KhumbuBijuli Co (NRs. 20.65 million), SalleriChaylsa
Hydro Electric Co. (NRs. 11.63 milion), Nepal Engineering
Consultancy Service Center Ltd (2.28 Million), Nepal
Hydro lab (NRs.1 million), Power Transmission Company
Limited (NRs. 32.5 million) and Butwal Power Company
(NRS.8.8 million). NEA is not receiving any dividend
except CHPCL and Butwal Power Company Limited
(BPCL). During the year, NEA invested NRs. 45 milllion
in Trishuli Hydro Power Co. Ltd and NRs. 16.01 million
in Tanahu Hydro Company Ltd. NEA increased its
investment in Butwal Power Company by NRs. 92.46
million in a form of Right Share. In addition to the above
investment, NRs. 30.22 million was invested in the
equity of Cross Border Power Transmission Company
Limited. NEA deposited NRs. 150 million in Citizen
Investment Trust (CIT) towards gratuity and pension
liabilities. Total asset fund in CIT against the future
liabilities amounted to NRs. 1,033.89 million at the
end of the FY 2013/14. Similarly, NEA deposited NRs.
10 million in NEA Retirement Fund scheme as an equity
capital in order to make the Fund approved by the Inland
Revenue Department.

Government of Nepal (GoN) provided NRs. 4,097.30
million as long-term loan from local source to invest in
different projects relating to generation and transmission.
Likewise, NEA received NRs. 4,500 million as long-term
loan from the donor agencies in the FY 2013/14. At the
end of the financial year, total long-term borrowings
from GON, the main source of project financing, reached
to NRs. 83,132.19 million from NRs. 75,034.89 million
in FY 2012/13. During the FY 2013/14, NEA received
NRs. 6,356.43 million from GoN as equity investment
in various generation, transmission and distribution
projects. With the objective of minimising the load
shedding in the driest season of FY 2013/14, NEA

A YEAR IN REVIEW-

received NRs. 950.87 million as reimbursement of loss
incurred by NEA in respect of power imported from India
under load shedding mitigation programm.

During the year, NEA paid NRs. 600 million as interest
on long term borrowings, NRs. 880 million as royalties,
NRs. 500 million as repayment of long term borrowing to
GoN treasury.

NEA is required to achieve a number of covenants in
respect of borrowing from the donor agencies. Major
covenants related to financial performance are Rate of
Return (RoR) (6%), Debt Service Coverage Ratio (DSCR)
(1.2 times), Average Collection Period (ACP) (< 3month).
In FY 2013/14, NEA achieved RoR (0.30%), DSCR
(0.90) and ACP (3.42 month) which all are default .

In FY 2011/12, Electricity Tariff Fixation Commission
(ETFC) approved to increase tariff by 20 percent in
average. While revising the tariff, ETFC instructed NEA to
comply with certain conditions regarding loss reduction,
inventory management, receivables management and
administrative reform. The tariff revision brought in
positive impact on NEA's operational and _ financial
performance but not to the desired level. Therefore,
NEA has again submitted the tariff petition for upward
adjustment of up to 20 % on existing tariff structure. The
proposed tariff petition is under consideration at ETFC.

Mr. Jagadish Bhattarai and Mr. Mahesh Guragain,
Chartered Accountants, appointed by the Office of
the Auditor General for consecutive third term, jointly
completed the financial audit for the year 2012/13.
Office of the Auditor General has appointed Mr.
Parakram Sharma and Mr. Sudrashan Raj Pandey to
perform financial audit for the FY 2013/14.

Large Tax Payer's Office completed income tax
assessment up to FY 2009/010 in the FY 2013/14.
However, NEA has filed petition for administrative review
against tax assessment order for the FY 2009/10 to
Inland Revenue Department. Similarly, NEA had appealed
to the Revenue Tribunal against the assessment order
given by Large Tax Payer's office for the year 2005/06
and 2006/07. During the year, Revenue Tribunal has
settled the NEA's appeal

During the year, long pending audit qualifications of
NRs. 6.27 million has been settled. NEA expects to
settle remaining balance of NRs. 1.91 million by next
year which is being brought since FY 1993/94.

NEA has perceived the need for improvement in its
current financial management system to meet the
requirement of national and international accounting
standards in preparation and presentation of financial
statements. For strengthening financial accounting
and financial management decision support system,
NEA plans to put in place a modern IT based Integrated
Financial Management Information System (IFMIS).
Accordingly, Institutional Strengthening Project is under
implementation with the assistance from World Bank
to strengthen financial management and accounting
system. MS Deloitte Touch Tohmatsu India Pvt. Ltd.
(DTT) has been appointed as consultant for this project
and has been working since December 2010.The major
scope of the consultancy service includes Accounting
Framework Reform, Design and Support 0
Implementation of new IFMIS & capacity building.
During the year, 14 companies offered their expression
of interest to work as System Integrator (SI) for IFMIS
implementation. Based on technical evaluation, NEA
has selected 6 companies to submit detail financial and
technical proposal and issued Request for Proposal (RFP)
in July 2014.

Nepal Electricity Authority m@ 83

Highlights of FY 2013/14

Increase(Decrease)

ipti F * FY 201
Description Y 2014 013 Amount %

Net Sale of Electricity (M.NRs.) 8.95
Income form other Services (M.NRs.) (14.53
Total Renenue (M. NRs.) 7.34
Operating Expenses:।।।
Genertion Expenses (M. NRs.) 4.67
Power Purchase (M. NRs.) 20.75
Royalty (M. पार) 4:44
Transmission Expenses (M. NRs.) 7.98
Distribution Expenses (M. NRs.) 18.78
Administration Expenses (M. NRs.) (1.00
Depreciation Expenses (M. NRs.) 0.86
Total Operating Expenses (M. NRs.) 14.91
Operating Surplus (M. NRs.) (83.42
Interest on Long-Term Loans (M. NRs.) 1.61
Foreign exhcnage tranlation losses (Gain) (91.32
Provision for Employee benefits (2.81
Prior years Income(Income) Expenses 46.16
Net Income (Loss) (M. NRs.) 69.21
Long-Term Loans (M. NRs.) 10.79
Net Property, Plant & Equipment (M. NRs.) 0.93
Number of Consumers 4.72
Total Sales of Electricity (GWh) 9.05
Internal Sold/Utilised (GWh) 9.07
Annual Average Consumer's Consumption (kWh)* 4.14
Average Price of Electricity (NRs./kWh) (0.02
Peak Load Interconnected System (GWh) 9.72
Toal Available Electric Energy (GWh) 8.77
NEA Hydro Generation (GWh) 0.78
Termal Generation (GWh) (49.28
Purchased Energy (GWh)- India 35.70

- Nepal (intemal) 7.05
Average Power Purchase Rate (NRs./kWh)***। 6.90। 0.13 1.84
Exported Energy (GWh) (0.28 (7.78
Self Consumption (GWh) 8.31 30.38
Net System Losses (Percentage) (0.32 (1.28

Note: *Provisional figures
**on internal sales
84 ***on total purchase

A YEAR IN REVIEW-

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Nepal Electricity Authority हा 85

A YEAR IN REVIEW-

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86 miNepal Electricity Authority

Significant Accounting Policies

Constitution and Ownership

Nepal Electricity Authority ('NEA') was incorporated
on Bhadra 1, 2042 (16 August 1985) under the Nepal
Electricity Authority Act, 1984, through the merger
of the Department of Electricity of Ministry of Water
Resources, Nepal Electricity Corporation and related
Development Boards. The merger was necessitated to
remedy the inherent weaknesses associated with these
fragmented electricity organizations with overlapping
and duplication of works, and became necessary to
achieve efficiency and reliable service.

The principal objectives of NEA include generation,
transmission and distribution of adequate, reliable and
affordable electric power by planning, constructing,
operating such facilities in Nepal's power system both
interconnected and isolated.

1. Significant Accounting Policies

1.1 Basis of preparation of Financial Statements
The financial statements have been prepared in
accordance with Nepal Accounting Standards (NAS) and
Generally Accepted Accounting Principles and practices
following historical cost conventions. These standards
and practices are substantially in line with the principles
set out in IFRS.

a. The preparation of financial statements requires
NEA's management to make estimates and
assumptions that affect the reported balance of
assets and liabilities, revenues and expenses and
disclosures relating to the contingent liabilities.
The management believes that the estimates
used in preparation of the financial statements
are prudent and reasonable and management is
aware that future results could differ from these
estimates. Any revision to accounting estimates
is recognised prospectively in the current and
future periods. Examples of such estimates include
provision for employee benefits, net realisable
value of inventory, diminution in value of long-term
investments and non-recoverability of receivable
balances etc.

b.। The figures for the previous year are rearranged and
reclassified wherever necessary for the purpose of
comparison.

c. Appropriate disclosures are made for the effect
of any change in accounting policy, accounting
estimate and adjustment of error.

For the year ended July 16, 2014 (Ashad 32, 2071)

त. The financial statements are prepared, generally,
on accrual basis. However, some income and
expenses are accounted on a cash basis, for
practical reasons. Management believes that the
impact of recognising those revenues on accrual
basis will not be materially different from the
current practice.

6. Management 55 applied estimation while
presenting financial statements. Such specific
estimates are disclosed in individual sections
wherever they have been applied.

1.2 Foreign Currency Transactions

The transactions in foreign currency are recognised at
the prevailing rate on transaction date.

The balances of monetary assets and liabilities in foreign
currencies are translated at closing rate. The resulting
gain or loss due to the translation is taken to profit and
loss.

1.2.1 Functional and Presentation Currency

Items included in the financial statements of the
Company are measured and presented using the
currency of the primary economic environment in which
the Company operates (the functional currency), which
is the Nepalese Rupees (indicated as Rs. in short).

1.3.Property, Plant and Equipment

Property plant and equipment are stated at cost
of acquisition and/or cost of construction less
accumulated depreciation. The cost of property,
plant and equipment include cost of acquisition or
construction/erection together with other incidental
costs and charges attributable to bringing the asset to its
working condition for its intended use and also include
borrowing costs directly attributable to the acquisition,
construction/erection of qualifying asset.

The incidental costs include proportionate overheads
relating to the following offices at the rates given below:

(a) Planning 50%

(b) Distribution and Consumer 10%

(c) Engineering 50%

(0) Finance and Administration 10%
Depreciation

Depreciation is provided on Property, Plant and

Equipment, except land, on straight-line basis, which
reflects the estimated useful lives of those assets. The
rates of depreciation applied on property, plant and

equipment are as follows:
Nepal Electricity Authority m@ 87

A YEAR IN REVIEW-

Depreciation
Rate (per an-
Assets Category num)

-
पा

Transmission lines (66 KV, 132 KV and

Transmission lines (33 KV)

Distribution system (including < 11 KV
Transmission lines)

Meter & metering equipment

Vehicles, tools and instruments, furniture
(n) jand fixtures

Miscellaneous properties

0% of appli-
cable rates

Additions during the year

1.4 Capital Work in Progress (CWIP)

All expenditures in developing property, plants
and equipments not yet completed or not ready to
use are categorised as CWIP.The value of Capital
works-in-progress includes stock of equipment lying in
store orintransit for the purpose of use in the construction
or development. It also includes the balances with
contractors and suppliers for the value yet to be received.
These are capitalised upon commissioning or identified
as being ready to use.

1.5 Investments in Shares

Allinvestments in shares are carried at cost. Write-downs
are made for impairment, if any, in the value of such
investments. Bonus shares issued by investee companies

88 miNepal Electricity Authority

have not been accounted in books. However, total
number of bonus shares received has been disclosed
with initial investment.

1.6 Inventories
a. Inventories include goods in hand being held
for use, sale or as spares.

9. Inventories are valued at lower of cost or net
realisable value, using the weighted average
method.

८. Net realizable value is the sale price as
estimated by the management in the ordinary
course of business, less estimated costs, if
any, necessary to make the sale. Further,
adjustments are made for those inventories
identified by management as obsolete or
otherwise.

1.7 Trade Receivables

Trade receivable are stated at carrying values except
for those identified by the management as being
doubtful on recovery. Such estimations for doubtful
recovery are reviewed by the management regularly.

1.8 Cash and Cash equivalents

Cash and cash equivalents are carried at cost. They
include cash-in-hand, cash-in-transit (bank transfers
and cheques in collection which are collected in the
subsequent period), and deposits with banks in the
various forms of deposit accounts which may or may
not bear interest, but which are not of the nature of
investments.

1.9 Borrowings

Borrowings that are due after 12 months from
the date of the financial position are classified as
non-current liabilities and those less than 12 months
are classified as current liabilities. Borrowing costs
that are directly attributable to the construction of a
qualifying asset are included in the cost of that asset.
Other borrowing costs are treated as an expense in
the period it occurs.

1.10 Foreign Currency Loans

Liabilities on foreign currency loans as at the year
ended are converted into Nepali Rupees by applying
prevailing year-end exchange rates. The gain /loss
arising there from such transaction is recognised as
profit or loss.

1.11 Trade and other payables

Liabilities for creditors and other payables are carried
at cost which is the fair value of the consideration to
be paid in the future for the goods / services received,
whether or not billed to the Company.

A YEAR IN REVIEW-

1.12 Provisions

Provisions are recognised when the Company has a
present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and the reliable estimate of the amount
can be made.

Recognition of Provisions involves substantial degree
of estimation in measurement. Provisions are reviewed
at each statement of financial position date and are
adjusted to reflect the current best estimate.

1.13 Employee Benefits

a. Employee benefits, other than retirement benefits,
are accounted for in the period during which the
services have been rendered on accrual basis.

0. For Retirement Benefits Plans

> Defined Contribution Plans (such as Provident
Fund and Insurance Schemes) expenses are
charged to income statement on the basis of the
liability recognised for the period.

> Defined Benefit Plans (such as Gratuity, Pension,
Leave Encashment and Medical Benefits) expenses
are charged to the income statement on the basis
of actuarial valuation.

८. Liability of actuarial valuation done during the year
2007/08 (2064/65) is being charged over the
period of five beginning in that particular year.

1.14 Grant-in-Aid, Contribution from
Customer / Local Authority

Grants-in-Aid received from the GoN or other Authorities
towards capital expenditure as well as consumers'
contribution to capital work are treated initially as
Capital Reserve and subsequently adjusted as income in
the same proportion as depreciation is charged on such

assets.

1.15 Contingent Liabilities

Contingent liabilities are disclosed in respect of possible
present obligations that have arose from past events but
their existence can only be confirmed on occurrence or

non occurrence of one or more uncertain future events
not wholly within the control of NEA and possibility of
outflow of resources is not determinable.

1.16. Revenue from Sale of Electricity

a. Revenue from sale of electricity is recognised at
the time of raising bills to the customers as per the
billing cycle. Revenue from the billing cycle date
up to 32Ashad (16 July) has been recognised on
estimated basis. Revenue from sale of electricity is
shown net of rebate.

b. Rebate on payment before the due date and
surcharge for delayed payments are accounted for
on cash basis.

1.17 Income from Other Services

a. Interest on investments and rental income are
recognised on accrual basis.

0. Dividend on investment in shares is recognized
when right to receive has been established.

८. Revenue from other services, including services

provided by Engineering Services, are recognised
on cash basis.

1.18 Insurance Fund

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

1.19 Taxes

a. Current tax
Current Tax is determined as the amount of tax
payable in respect of taxable income for the year.

b. Deferred tax
Deferred tax is recognised on temporary difference,
being the difference between tax base of assets
and liability and carrying amount thereto. Where
there is carry forward losses, deferred tax asset
are recognized only if there is virtual certainty
of realization of such assets. Other deferred tax
assets are recognised only to the extent there is
reasonable certainty of realisation in future.

Nepal Electricity Authority हा 89

A YEAR IN REVIEW-

Tariff Rates
Billing Effective since August 17, 2012। 11.1) Low Voltage (400/230 V)।। Minimum Monthly Charge:

S। METER CAPACITY गन 0०बा8 Exempt (kWH)।। Up to 5 Ampere 80.00
a 365.00
400

60 Ampere 1765.00
hree phase supply

i। __।30 Ampere 795.00।।।T Pp। [Up to 10 KVA 4400.00।। B।।।
ee।
Above 10 KVA to 25 KVA 6900.00। 600।
Energy Charge: (Single Phase) es

Rate NRs
S। Energy Consumption Block Per Unit Billing Method

Up to 20 Units Minimum Charge

Up to 20 units Rs.
4.00/unit, for 21-30 units
Rs.7.30/unit. But, for

>।24-50 Units energy consumption
above 30 units,
consumption from 1 unit
itself shall be charged at
Rs. 7.30/unit.

Rs. 7.30/unit for 0-50
3 151-150 Units Units and Rs. 8.60/unit
Rs. 8.60/unit for 0-150
151-250 Units 9 Units and Rs. 9.50/unit
for 151-250 Units .

0

0
for 51-150 Units .

0

Rs. 9.50/unit for 0-250

7.3
8.6
5
Above 250 Units 11.00 Units and Rs. 11.00/unit
above 250 Units.

4
5
C_।Energy Charge: (Three Phase) pO
1
2। Cc।

Minimum charge
Rs.4400.00 for

Up to 10 KVA 12.00 Consumption up to 400
Units and Rs.12.00/unit
above 400 Units.
Minimum charge
Rs.6900.00 for

Above 10 KVA up to 25 KVA 12.50 Consumption up to 600
Units and Rs.12.50/unit
above 600 Units.

1.2) Medium Voltage (33/11 K.V.) pO
Minimum Monthly Charge: po

S। METER CAPACITY Minim Nee harge

Above 25 KVA 31250.00 2500
Energy Charge a

P।
8।
Rate NRs one

S। Energy Consumption Block Per Unit Billing Method
Minimum Charge Rs.
31,250.00 for

Above 25 KVA 12.90 consumption up to 2500

Units and Rs. 12.90/unit
above 2500 Units.

90 miNepal Electricity Authority

A YEAR IN REVIEW-

Low Voltage (400/230 Volt)
Demand Charge Energy Charge

es ee
3.60
Fd
a) Community Water Supply
600।
Pp
ee ee
Pp
Pd।। 8] Pp 16.50

es ee

es ee।। es ee।। 900।।।। es ee।।।।।। es ee।।।।। es ee।।। 960।।। es ee।।।।।। es ee।।।।।।। ४8]

5
6।।।।। 6।।

3

Nepal Electricity Authority हा 91

A YEAR IN REVIEW-

उ [TIME OF DAY (TOD) TARIFF RATE
Monthly
Charge (Rs.। _।a) 66 kV or above a।। __।b) Medium Voltage (33 kV) a।।। 900।।। a
a
a
a a) a
a
a।। a।।।।। a
a
a
a a)।।.।।।] 8
a a)। 4।COMMUNITY WHOLESALE CONSUMER
a
a pT
a
a
a pT
a
a

N= Total Number of Consumers of a community group.

Notes:

1) Low voltage refers to 230/400 V, Medium voltage refers to 11 kV / 33 kV and High voltage refers to 66 kV and above.

2) If Demand Meter of any consumer reads kilowatts (kW), then KVA=kW/0.8. Consumers having kW demand meter shall
mandatorily install Capacitors within the given time. Otherwise their kVA demand shall be calculated as KVA=kW/0.7.
10% Discount in the total bill amount will be given to the GoN approved Industrial Districts, if the bill is paid within 21 days of

3) 979 date.

4) 20% Discount in the total bill amount will be given to the Nepal Government Hospitals and Health Centres (except residential
complex), if the bill is paid within 21 days of billing date.

5) Consumers supplied at High Voltage (66 kV and above) and Medium Voltage (33 kV and 11 kV) should compulsorily install
TOD Meters.

6) new agetional consumers applying for 11 kV supply are to be supplied at 33 kV, they will be charged as per 11 kV tariff

92 miNepal Electricity Authority

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

Statistics & Schematics

AVAILABILITY OF ENGERGY (FY 2013/14) UTILIZATION (FY 2013/14)

0 > 77%
49.46%

23.15 @। छि

हा1५010 हा112111त। mPurchase India m Purchase Nepal MinernalSales Export wSystemLoss mSelf Consumption

SALES (FY 2013/14) REVENUE (FY 2013/14)

7.53% 5.26%

0.10% ___-_—. % 42.92%

44.29%
36.16%। 11.85%

8.27% 3.65%

m@ Domestic & Non-Commercial i Commercial & Industrial @ Export Others
@ Domestic ® Non-Commercial i Commercial M Industrial @ Export @ Others

EXPE N DITU RE ( FY 2013/14) NO. OF CONSUMERS १५६7 JULY, 2014
2.81% 0.17% &, °। ay % 3.00%

9.83%

हा Staff Cost m Power Purchase
m@ Operation & Maintenance Interest
छ Domestic छ Non-Commercial

छ Commercial @ Industrial
@ Foreign Exchange Translation Loss & Others

@ Depreciation [ Royalty

Nepal Electricity Authority m@ 93

A YEAR IN REVIEW-

Total Energy Avaliable &

Peak Demand

[ 1,400.00
4,500.00 1,200.00
4,000.00
3,500.00 1,000.00
£
S 3,000.00 800.00 =
© — 2,500.00 =
2,000.00 600.00
1,500.00 400.00
1,000.00 200.00
500.00 :
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*
FISCAL YEAR
Cc Available Energy (GWh) C—INEA Hydor Generation C—INEA Thermal Generation
Gags Power Purchase from IPPs tC Power Purchase from India —+— Peak Demand (MW)

Peak Demand (MW 557.53। 603.28] 648.39] 721.73] 812.50। 885.28] 946.10। 1,026.65। 1,094.62। 1,200.98
NEA Hydor Generation 1,522.90। 1,568.55। 1,747.42। 1,793.14। 1,839.53। 2,108.65। 2,122.08। 2,357.43। 2,273.11। 2,290.78
NEA Thermal Generation 13.67 16.10 13.31 13.01 18.85। 2,300.34।। 1,802.31।। 2,121.66। 2,125.48।। 2,291.96।। 1,291.09।। 1,282.20। 1,230.11।। 1,966.12।। 3,051.82। 3,185.95।। 4,631.54।
Note :- Peak demand is for all areas covered by integrated system including supply to India

* Provisional figures

94 mNepal Electricity Authority

A YEAR IN REVIEW-

Growth of Consumers

3,000,000

2,500,000

2,000,000

1,500,000
1,000,000
500,000।।
_ _ _ _ _ _ a 7 5

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*
FISCAL YEAR

of Consumers

No.

So

D Domestic & Grand Total OD Others

Particulars। 609)

Note:- *Provisional figures

Nepal Electricity Authority हा 95

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

Electricity Sales

4,000
3,500
3,000

2,500

2,000

Energy (In GWh)

1,500

1,000

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*
bd Domestic @ Industrial & Grand Total
FISCAL YEAR

931.3 1,169.31 1,401.64
109.9
154.3
785.55
45.50
6.31

1.2 0.7
6.3 5.8
47 5.1
9.1 24.6
1,936.0 2,158.21

60.1
2,310.3

Note:- *Provisional figures

96 miNepal Electricity Authority

A YEAR IN REVIEW-

Revenue

35,000

30,000

25,000

20,000

15,000

NRs. in million

10,000

5,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*
FISCAL YEAR
& Domestic @ Industrial Total Revenue हा Others

2005 2007 _। 2008। 2009। 2010
Temporary Suppl

Net Income from Other
Services 336.70 336.09 689.08 584.18] 1,601.66] 1,188.27) 1,382.94] 1,695.42] 1,868.37 1,596.84

Total Revenue 29,809.19

Note: * Provisional Figures

Nepal Electricity Authority हा 97

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

Load Forecast

30000.0 6000.0
25000.0 ZA। 5000.0
20000.0 4000.0
é 15000.0 3000.0
>
po
न _ जा
0.0 0.0
त) बच ४) ८९ 1-. ८0 0) ८) च्॑ ल्य ती TN ९ KR WO 6) ८ नं त
aA तला तला ला ला सल अल त्य त्य त्य त्य त्य त्य त्य त्य त्य त्य त ती OM ती
Me mE OTE CT EES TER TEEN
NM FN vor WO DO AN MN TN HO KR WO ७)
a cat oA oA ot ot ot A त्य N N N N N N N N N 0) mM ती
८) ८) ८) ८) ८ ८ ८ ८ ८) ८) ८) ८) ८) ८) ८) ८) ८) ८)
NNN NNN NN NN ५4 NNN NN NN NN AN

98 miNepal Electricity Authority

Mas Energy (GWh)

Peak Load (MW)

A YEAR IN REVIEW- FISCAL YEAR-2013/2014

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Nepal Electricity Authority m 99

MW

A YEAR IN REVIEW-

Electricity Generation Power Plants and Projects

Major Hydropower Stations
5. No. Power P ants Capacity (kW) S.No.। Thermal Power PI ants Capacity (KW)
1 Kal igandaki A 144,000 1 Duhabi Mu tifuel 39,000
2 Middle Marsyangdi 70,000 2 Hetauda Diesel 14,410
4a। Sunkoshi 1 0,050 Solar Power Plants
6। Gandaki 15,000 1 Simikot 90
7 Kulekhani। 60,000 2 Gamgadhi 50
8। Devighat 14,100 Total 100
/o _। a eae क) Total Major Hydro (NEA)- Grid Connected 473,394
11 Modi_Khola 14,800 Total Small Hydro (NEA)- Isolated 4,536
Sub Total 459,150 Total Hydro (NEA) 477,930
छ Total Hydro (12?) 255,647
छ पि a Total Hydro (Nepal) 733,577
14 Fewa 1 000 Total Thermal (NEA) 53,410
15 Seti (Pokhara) 1,500 Total Solar (NEA) 100
rant OD Total Installed Capacity (NEA and IPP) 787,087
18 Tinau 1,024 Total Installed Capacity (NEA &IPP)-Grid 782,451
19 Pharping*** 500
20 Jomsom** 240
21 Baglung 200 Under Construction Capacity (KW)
= Sanco = 1] Upper Tamakosi Hydropower Project 456,000
24 Surnaiyagad 200 2 Tanahu Hydropower Project 140,000
25 Doti*** 200 3 Chameliya HEP 30,000
26 Ramechhap 150 4 Kulekhani III 14,000
27 Terhathum™ 100 5 Upper Trisuli 3 A HEP 60,000
28। Gamgad 400 6  Rahughat HEP 32,000
area 475 594 7. Upper Sanjen 14,600
8. Sanjen 42,500
9. Rasuwagadi 111,000
Drankuta*™ 40 10. Madhya Bhotekoshi 102,000
Jhupra (Surkhet)*** 345 11 Upper Trisuli 3 B 42,000
Gorkhe (Ilam)*** 64 Total 1,044,100
Jumla** 200
Dhading*** 32 Planned and Proposed Capacity (KW)
Syangja*** 80 1 Upper Arun HEP 335,000
Helambu _ 90 2 Upper Modi A HEP 47,000
oe ae ३ Dudh Kosi Storage HEP 640,000
Taplejung** 125 4  Tamor Storage HEP 530,000
Manag** 80 5 Uttar Ganga Storage HEP 300,000
Chaurjhari(Rukum)** 150 Total 1,852,000
Syaprudaha (Rukum)** 200
Bhoj pur" 250 Note
sarang 500 ** Leased to Private Sector
Arughat (Gorkha) 150 *** Notin Normal Operation
Okhaldhunga 125
Rupalgad (Dadeldhura) 100
Achham 400
Dolpa 200
Kalokot 500
Heldung (Humla) 500
Total 4,536

100 miNepal Electricity Authority

A YEAR IN REVIEW-। 09८9८८ ]

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Nepal Electricity Authority हा 101

A YEAR IN REVIEW-

Power Purchase Agreement Concluded Projects (in Operation)

S. No.। Name of Company Name of Project। Location (District)। Capacity
(kW)

i

a [Na 3

a

i

=

"
Ltd.

; Sunkoshi KhoTa

;

3

3 3

Sunkoshi Khola। Sindhupalchok
Sisne Khoa
Pvt. Ltd.

996

Ridi Hydropower Development Co. (P.) Ridi Khola 2,400
Ltd.
21 Centre for Power Dev. And Services (P.) Upper Hadi Khola। Sindhupalchowk
Ltd.

Gandaki Hydro Power Co. Pvt. Ltd Mardi Khola 4,800
Himal Dolkha Hydropower Company Ltd.। Mai Khola 4,500
Baneshor Hydropower Pvt. Ltd Sankhuwasabha

Barun Hydropower Development Co. (P.) Hewa Khola Sankhuwasabha 4,455
Ltd

Nyadi Group (P.) Ltd. Siuri Khola 4,950

United Modi Hydropwer Pvt. Ltd Lower Modi I 9,900
Bhagawati Hydropower Development Co. Biayapur-1 Kaski 4,410
(P.) Ltd

Kathmandu Upatyaka Khanepani Board 680.4

Synergy Power Development (P.) Ltd. Sipring Khola 9,658

Laughing Buddha Power Nepal (P.) Ltd. Middle Chaku Sindhupalchowk 1,800

Nepal Hydro Developer Pvt..Ltd CharanawatiKhola 3,520

Laughing Buddha Power Nepal (P.) Ltd. Lower Chaku Sindhupalchowk 1,765
Khola

Ankhu Khola Jal Bidhyut Co. (P.) Ltd. Ankhu Khola - 1 Sindhupalchok 8,400

di।

: i। i
(Thaprek)

i i

-

©.

i,

i।

=

Bhairabkunda Hydropower Pvt. Ltd Bhairab Kunda Sindhupalchowk 3,000
Radhi Bidyut Company Ltd Radhi Khola 4,400

Pashupati Environmental Eng. Power Co Chhote Khola
Pvt. Ltd.

Mailung Khola Hydro Power Pvt. Ltd. Mailung Khola 5,000
Total «SATA

102 miNepal Electricity Authority

A YEAR IN REVIEW-

Power Purchase Agreement Concluded Projects (under Construction)

S. No. Name of Company Name of Project Location Capacity (kW)
(District)
जा
(Upgrading)
6]

Daraudi Kalika Hydro Pvt. Ltd. Daraudi Khola A 6,000
8। Dariyal Small Hydropower Pvt.Ltd Upper Belkhu Dhading 750

6,000
750
" Deurali Bahuudesiya Sahakari Sanstha Midim Khola 100
Ltd.
10 Dibeshwori Hydropower Company Saba Khola Sankhubasha 3,300
Limited
9,980
2,475
2,000

Dovan Hydropower Company (P).Ltd Junbesi Khola Solukhumbu 5,200

600।
Ltd
(14 _[Easiem Hydropower(P) Lid पुमा जमकण। =a।
[15 _। Eleotro-com and Research Centre हर। Ihyadi Khola। Sindhupalchowk। 200।
20 Himal Dolkha Hydropower Company Mai Sana Cascade lam 8,000
Ltd.
Hira Ratna Hydropower Pid
उ
(P).Ltd
Limited

32 Mandakani Hydropower Privated Sardi Khola Kaski 3,500
Limited

Middle Bhotekoshi Jalbidhyut Company। Middle Bhotekoshi Sindhupalchowk 102,000
Middle Modi Hydropower Ltd. Madhya Modi 15,100

Mount Kailash Energy Pvt. Ltd. Thapa Khola Myagdi 11,200
Nama Buddha Hydropower (P) Ltd Tinau Khola। 990

Pachathar Power Company Pvt. Ltd. Hewa Khola 'A' 14,900

Pashupati Energy Development Co. Pvt.। Tungun-Thosne 4,360
Ltd.
Ltd.

Prime Hydropower Co. Pvt. Ltd. Belkhu Khola Dhading
Reliable Hydropower Co. Pvt. Ltd. KhorungaKhola 4,800

Nepal Electricity Authority हा 103

A YEAR IN REVIEW-

Rising Hydropower Compnay Ltd. SelangKhola Sindhupalchowk

4
4
4
4
4
4
4

Shivani Hydropower Company (P.) Ltd Phawa Khola Taplejung 4,950
Sikles Hydropower (P) Ltd Madkyu Khola Kaski 9,968

Sinohydro-Sagarmatha Power Company। Upper Marsyangdi A Lamjung 50,000
(P.) Ltd

Universal Power Company (P) Ltd 8,260
हा]
996
a ee

Sasa Engingeering Hydropower (0). Ltd। Khani Khola 30,000
Sayapatri Hydropower Privated Limited। Daram Khola A Baglung 2,500

3
4
5
6
7
8
9
50
51
52
53
54
55
56
57
58
59

104 miNepal Electricity Authority

A YEAR IN REVIEW-

Power Purchase Agreement Concluded Projects (in Different Stages of Development)

S. No.। Name of Company Name of Project Location ( Capacity
District) (kW)
Panchthar
4।
6
_ 8 ]
=
990।
980
Himalayan Hydropower Pvt. Ltd
Himalayan Urja Bikas Co. Pvt. Ltd
Idi Hydropower Co. Pit
Ingua Hydropower Company Pvt.Ltd
40]
१96
44] 600]
46
a
(P.) Ltd.
ee

Nepal Electricity Authority हा 105

A YEAR IN REVIEW-

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106 miNepal Electricity Authority

A YEAR IN REVIEW-

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