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NEPAL ELECTRICITY AUTHORITY

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

Fax: + 977-1-227035,266673

Email : neamd@mos.com.np

Webpage: www.nea.org.np

IN। REVIEW
MIIATE NI

CONTENTS

The Chairman's Message

Photographs-: Board of Directors

Corporate Structure of NEA

Photographs : Chief Executives

Photographs : Directors

7 Managing Director's Report

12 = Introduction

13 5८03] Review

21 Project Highlights

29 = Project Studies
33 Highlights : FY 2000/01
34 Balance Sheet

36 = Profit & Loss Statement
37 Tariff
39 = Statistics, Schematics, Maps

Cover Photo : Construction of Power House at Kaligandaki 'A' HEP

COMPLIMENTARY COPY

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M3lAI8 NI

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MESSAGE
From The Chairman। am pleased to send this message to the annual
publication of Nepal Electricity Authority entitled A
Year in Review. I believe this year's publication will
review NEA's activities over the past fiscal year.
2000/01 - the year that also marks NEA's sixteenth
year of operations. At the outset. ] must congratulate
NEA for its achievement despite the constraints that
it faces in terms of resources and challenges.

I am 8180 to learn that the NEA is credited for
systematic planning of its development works as well
as for the quality of its consumer services. This is in
comparison to similar services in other utilities of
South Asia. However, this does not imply an end to
the efforts that NEA must put in to further improve
and extend its services. Almost 85 percent of the
populace still remain without an electricity supply
and are thus deprived of modern amenities in life that
electricity provides. Over the next three years NEA
will attempt to extend its services to 300,000
consumers over all districts of the country through
rural electrification oriented projects. NEA will also
strive to provide these services at a cost that the
common man can afford.

In the years to follow, NEA will put an end to
unpopular measures such as load-shedding and
frequent supply interruptions. NEA will work towards
better customer relations like handling their
complaints and responding to their inquiries.
Foremost in importance, NEA must act instantly to
end pilferage of electricity. Pilfering of electricity
implies an unacceptable burden on the honest
consumer paying for the theft that someone else
commits. Over the next three years NEA will take
appropriate steps to bring the level of losses to
internationally acceptable levels. His Majesty's
Government, meanwhile, will prepare adequate
statutory grounds for NEA to fight the crime on legal
grounds.

Apart from providing itsservices to its consumers,
NEA must also keep abreast with the demand for its
services and advancements and innovations in the
power sector. NEA must recognize its strengths ofits
human resources and improve its weaknesses, such

as system losses and financial resources. These must
be weighted equitably to design its development
works. I believe NEA has developed the appropriate
expertise to undertake projects of increasing
complexity and magnitude. Again, NEA must base
its works on sound enginecring and financial ethics
and assure that transparency is maintained at all
stages. In keeping with the aims of the free market
NEA must inculcate healthy competition among
providers of services.

Electricity must transcend political and cultural
boundaries and providing to mankind a form of
energy that is conductive to sustainable existence. In
all undertakings. NEA must be aware of our fragile
environment and the universal concerns to preserve
our environs and our heritage. The plentiful
hydropower that we possess in our many rivers that
criss-cross the country can provide the energy that
can make these aims possible. Hydropower in Nepal
must be developed as the clean form of energy the
world is looking for and also what the world is
willing to pay for. lam glad that NEA continues to
rely on the country's plentiful hydropower resources
for ils generation. Hydropower has been rightly
acclaimed to be the resource that will lend to the
country's economic upliftment,

Democratic values form an inseparable part of
our thinking and all the Nepali people look forward
to abctter livelihood for himself, his children and the
generations to follow. It will be an essential part of
NEA's corporate aims to orient its institutional setup
and its programs to build on and adapt to these
aspirations.। believe the Annual review will help
NEA to attain these goals and also to provide to all
concerned witha better appreciation ofNEA's diverse
activities. Through the coming year Lalso wish NEA
all the best in its operations and undertakings.

Bijay Kumar Gachchhadar

Minister for Water Resources and
Chairman, Nepal Electricity Authority

BOARD OF DIRECTORS

Chairman
Mr. Bijaya Kumar Gachchhadar
Minister of
Water Resources.

Mr. L. M. S. Karki Dr. 8. P. Koirala Dr. B. G. Vaidya

Secretary Secretary
Ministry of Water Resources Ministry of Finance

tf। Mr. M. R. Gautam Mr. K. Baskota Mr. रि. B. Shrestha

President FNCCI

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

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IN REVIEW
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CHIEF EXECUTIVES

Mr. Govinda K. C. Mr. M. R. Udpadhyay
Chief Chief
Generation and Transmission DCS Central & East
& S/S

4

Mr. छै, C. Thakuri Mr. P.M.S. Pradhan Mr. 0. रि. Bhattarai
Chief Chief Chief

Rural Electrification & DCS Planning Finance, Middle Marsyangdi
West Administration and Mat. Mgt. HEP

Mr. D. B. Thapa Dr. N. Kapali
Chief Chief
Development Kaligandaki 'A' HEP

IN REVIEW

5105). Ni

4YVIAYV

DIRECTORS &

Mr G. B. Shrestha

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Mr D. P. Upadhyay

Mr M. B. Kayastha

Mr रि. K. Bajracharya

Mr S. P. J. Rana

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Mr D.N. Singh

DEPARTMENT CHIEFS

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Mr B.R. Shrestha Mr S. P. Upadhyay Mr टि. P. Shah

Mr U. ६. Shrestha askey

Mr K.B. Shrestha

Mr K.P. Upadhyay

Mr S. B. Shrestha

Dr J. Jha Mr T. N. Thakur

—— =o

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MANAGING

A YEAR

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M3FIAIY NI

DIRECTOR'S REPORT

As we enter into the second year of the new
millennium and complete the sixteenth year of
NEA's operations,। consider it my obligation to
report the progress we made the past fiscal year
2000/01. Talking of transitions, during the past
year we saw the ascent of His Majesty King
Gyanendra Bir Bickram Shah Deva to the
sovereign throne of Nepal. The past year also left
behind memories of tragedy in the Royal Palace
that will find a dark place in the pages of our
nation's history. Through these events, in NEA
we continued our works to meet our mission to
maximise our contribution to the economic
development of Nepal through the provision of
electricity to our consumers in a sustainable,
cost-effective and efficient manner. We also
remain committed to achieve our corporate goals
to be a financially viable, customer-oriented
business entity, fully autonomous and
accountable.

The Power Sector

Over the year, we continued to work under
the universal concern for privatisation,
commercialisation, regulatory functions and
deregulation of differing concepts. These were
the accepted panacea for efficient corporate
performance and the outcome would be
operations that are cost-effective, self-sustainable
and transparent. We were poised to exist in a
world of volatile finance and economics. We
needed to create a mindset to be proactive and
adaptable. Closer home, we also interacted with
the government and international agencies in the
preparation of the country's water resource
strategy, reforms to the power sector and our
hydropower policy. Over the year, we continued

our efforts to promote the private sector to benefit
from our immense water resources and provide
the long-awaited impetus to our nation's ailing
economy. We also continued to believe that we
possessed in plenty a natural resource in the form
of hydropower which the world would ultimately
acknowledge as one that would lead to sustenance
of a clean environment. There was no doubt that
the world was set to promote clean energy.
Mechanisms were being drawn up by world
bodies to award those who promoted the
generation of clean energy and thereby control
the carbon content in the air which we and our
future generations must breathe to live.

NEA has always been conscious of the
necessity to improve its performance and turn
towards appropriate reforms. Based on the
concept of internal privatisation, one option that
would create a more commercial oriented
management within NEA without change in
ownership of NEA's assets is the Profit Centre
concept. This was earlier identified through a
study of Commercialisation in NEA undertaken
by NEA in 1998. NEA has decided to adopt this
option for application in its distribution centres.
Six of NEA's distribution and consumer divisions
have been. designated Profit Centres and nine
more are expected to be so designated in the near
future. Further in the future, these fifteen profit
centres will be converted into fifteen public
companies with sizeable public shares. InJanuary,
2000, an in-house seminar was organised by
NEA training Centre, Kharipati, to consolidate
the concept of Profit Centres in NEA's operations.

The Supply Side

NEA's consumers have endured the

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inconvenience of generation deficiency in the
form of load shedding over the past decade. The
turn of the century has brought in welcome relief
with the coming on-line of two hydro-generation
projects. Continuing this trend, the past year saw
the completion of two more hydropower projects.
Coming from NEA's own undertaking was the 14
MW Modi Hydropower Project that integrated
into NEA's grid at the Pokhara sub-station in
September 2000. Commencing commercial
operations in January 2001, the entry from the
private sector was the 36 MW Upper Bhote Koshi
linking up at the Lamosangu sub-station. With the
added generation, we attempted to remove load
shedding but were compelled to retain some of
this unpopular measure because of unusually
low river discharge in the rivers used for
generation. With the coming on-line of at least
one 48 MW unit of the 144 MW Kali Gandaki A
Hydropower Project in the first quarter of 2002,
we will definitely see an end to load shedding
ever after.

Planned generation to meet future demand
also looked optimistic for the 70 MW Middle
Marsyangdi Hydropower Project with the
commencement of its civil works. Interest from
donors for the engineering studies of the
Chameliya (30MW) and Kulekhani tll (42MW)
hydropower projects also promised a healthy
stream of generation projects even further into
the future. With the mushrooming number of
generation plants and sub-stations in the country,
the state-of-art Load Dispatch Centre (LDC)
designed to deliver swifter and more reliable
control and dispatch facilities finally started
construction at Siuchatar, Kathmandu.
Construction of the Chilime (2OMW) hydropower
project by NEA's subsidiary, the Chilime
Hyrdopower Co., continued as an entirely in-
country effort but was somewhat upset by delays
arising from retarding geological findings. Also in
the future, joint ventures with private investors
enter as a possible formula in hydropower
development along BOT/BOOT lines. Such
ventures are now being proposed for the Upper
Karnali (300 MW), Khimti i (26 MW) and Thulo
Dhunga (24 MW) hydropower projects.

NEA, in the meanwhile, retained its identity
as the sole buyer of power generated by the
Independent Power Producer (IPP). Interest shown
by the IPPs was encouraging under market-

strapped conditions. Following the issuance of
survey and development licenses to BOT/BOOT
promoters by the Ministry of Water Resources,
several more IPPs sought to sell their generation
to NEA including those for the projects of Madi।
(20 MW), Upper Marsyangdi I/II (300 MW) and
the Lower Modi (20 MW). Also, in accordance
with the NEA's commitment to buy upto 50 MW
of generation from small hydropower projects in
the range from 1 -10 MW, power purchase
agreements (PPA) were signed for purchase of
power from the Syange (0.1MW), Pheme
(0.95MW), Khudi (SMW) and Mailung (5MW)
Khola Small Hydropower Projects. On the eve of
the last fiscal year, NEA also entered into a
agreement for power purchase with Butwal Power
Co. (BPC) from their Andhi Khola and Jhimruk
plants.

The Grid and Regional Prospects

Two major challenges came into sharper into
focus for NEA's grid and transmission system -
the delivery workhorse. The first was to strengthen
the transmission capacity to handle the increasing
generation capacity within the country. The
second was to bolster the grid to enable it cash in
onthe country's immense hydroresource through
regional exchange and wheeling opportunities.
The urgency torehabilitate the transmission system
was evident in many overloaded industrial centres.
NEA has attempted to improve this situation by
rehabilitating sub-stations, introducing shunt
capacitors and increasing the capacity of power
transformers. Where possible, these were
undertaken with NEA financial resources. Larger
undertakings such as the upgrading the system
voltage to 220 kV along the Hetauda-Bardghat
section, the stringing of additional circuits and
the construction of cross-border exchange links
had to look to financing from international
development banks and donors.

Cross-border enhancements was the key topic
of discussion during the Sixth India-Nepal Power
Exchange Committee Meeting which was held in
Kathmandu in January 2001. The Meeting
confirmed the in-principle approval of both
Governments to increase the quantum of power
exchange from a level of 50 MW to 150MW and
further worked on a schedule to construct three
additional 132 kV interconnection links to make

—»

this enhancement possible. Both sides also agreed
to study the feasibility of interconnection using
high voltage direct current (HVDC) techniques
for future exchange.

A very timely effort to boost regional co-
ordination in energy use was undertaken by the
USAID with the introduction of the South Asia
Regional Initiative for Energy (SARI/E). The initial
efforts of the initiative took the form of establishing
interaction between senior officials of the South
Asian countries. NEA has taken a proactive role
by participating in more than twenty training
programs, seminars, workshops and executive
level meetings under the SARI/E banner. We
need to keep in mind that a consensus among the
nations for economical use of regional resources
could mean large benefits for NEA. To be updated
on the current situation, we have also sent our
senior officers to participate in international events
such as the Fourth International Conference on
Hydropower Development (Hydropower 2001)
held in Bergen, Norway, in June 2001.

Customer Orientation

Providing adequate quality supply of
electricity and increasing accessibility to
households at reasonable cost are major
challenges that NEA continues to face. The
introduction of democratic values combined with
the dissemination of ideas by the media have give
new dimensions to the peoples awareness and
their right to good service from utilities. We must
learn to work under these enlightened conditions
to be a successful utility.

NEA's distribution and consumer services
now covers consumers in all the districts of the
country. But immense amounts of work remain to
extend connections to consumers in the remote
and rural areas of the country. Consumers
benefiting from an NEA supply from its grid or
isolated power plants remained in the
neighbourhood of a negligible 15 percent
although the coverage from the distribution
facilities that NEA has constructed is in the
neighbourhood of 32 percent. Rural electrification
(RE) and its effective undertaking remains an area
of heavy investment which needs to be built on
an appropriate institutional structure. RE in Nepal
is evidentially on the crossroads. A semi-
commercial approach emerges as the viable

A YEAR

IN REVIEW

AVIAV

solution embodying designs suchas co-operatives
and other forms of autonomous bodies.

Referring to other areas of the distribution and
consumer services, there are also the important
aspects of improving consumer relations,
introducing a systematic consumer i nquiry system
and providing prompt attention to consumer
complaint. To assist large consumers manage
their electrical consumption better and provide a
more systematic metering arrangement, time-of-
day meters were introduced incorporating
electronic meters which would be fitted with
additional modems to provide telemetering and
make possibleremote monitoring of the consumer
consumption.

An area of NEA's operations which continues
to meet with loud public resentment has been the
losses in its system. NEA has attempted to tackle
this affliction by a series of projects and action
plans but it is obvious that more concerted efforts
will be required before the desired results are
obtained. Given the financial resources, the
reduction of technical system losses is physically
possible with refurbishment and reinforcement
of existing lines, installation of capacitor banks
and other means. On the other hand, reduction of
non-technical losses, and its pilferage implications,
will need to be deterred by adequate statutory
provisions to punish such violation of law.
Presently, legislation in the form of an Anti-
Pilferage Act awaits enactment in the Parliament
and is expected to afford better contro! when put
to use. Itis evident that theft of electricity imposes
undue burden on the honest consumer and
eradication will ultimately depend not only on
customer consciousness to stay away from such
crime but also on the customer taking proactive
action to prevent being cheated by the other
person's criminal actions.

NEA's services to provide street lighting
services to its consumers is another area that has
led to stand-off with the entity liable for making
the payments. Progressing from mere rhetoric
and correspondence, last year concerted efforts
were made to bring Mayors of Municipalities and
other key players to the negotiating table to find
a solution to the long debated issue. A two-day
interaction was arranged in NEA's Training Centre
at Kharipati in February 2001. As a subsequent
result, the accumulated dues over a period of 10
years which totalled Rs. 720 million would be

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paid up in anumber of annual instalments. Of this
figure, a sum of Rs. 175 million has already been
paid by HMG with arrangements with the
Municipalities. Also in agreement with the
Municipalities, from the fiscal year 2001/02, NEA's
expenses towards the provision of streetlights
would be recovered by NEA from its customers.

Development and Finance

It is evident that development activities will
remain a core NEA activity for many years to
come. While development banks in the
international circuits formed the sole resource for
credit financing, added liquidity in the domestic
financial markets now promise increasing
availability of credit from domestic Lenders.
However, major development activities in the
near future will still be through credit from
international Lenders such as the Asian
Development Bank (ADB), World Bank, Japan
Bank for International Co-operation (JBIC), and
10४,

The ADB credit for US$ 50 million, including
a co-financing of a US$ 10 M loan from the OPEC
Fund, to undertake the Transmission Distribution
and RE project has been approved and is expected
to see a loan effectiveness in the near future. The
World Bank has a US$ 46.4 million credit allocated
for NEA's undertaking of the Power Development
Project (in conjunction with the Power
development Fund) which encompasses
transmission, distribution and institutional
building activities. The credit is also expected to
see loan effectiveness towards the end of the
calendar year. DANIDA, meanwhile, still holds
the interest to finance the construction of the 220
kV Hetauda-Bardghat transmission line with mixed
credit Although investment from the private sector
has eased off NEA investment in generation
projects, the interest for the investors for NEA to
come in as a partner in joint venture could set a
new trend for the future.

Grant financing continues to form a part of
NEA's development works. KfW commitments
include grant financing for the construction of the
state-of-art Load Dispatch Centre and the Middle
Marsyangdi Hydropower Project, alluded to in
earlier paragraphs. Japanese grant though JICA is
active in the conduct of a feasibility study for the
storage type Kulekhani III hydropower project in

the district of Makwanpur, and a similar South
Korean grant for the engineering report of the
Chameliya hydropower project in the district of
Accham. A Danish grant through their
international co-operation agency, DANIDA, 15
active in the undertaking of the distribution and
RE works in the districts of Kailaliand Kanchanpur.
A similar Swedish agency, SIDA, is opting to
undertake a similar RE assignment in several
districts of the far-west and mid-west development
regions.

The USAID presence in NEA's activities made
a welcome entry in the form of the Energy
Partnership Program organised by the USEA. The
program got off to a formal start last year with a
signing ceremony in November 2000. The
program is expected to broaden the perspectives
of NEA's senior staff by enabling dialogue with
counterparts from the American utilities of Tacoma
Power and Wisconsin Electric Co. in the states of
Washington and Wisconsin, respectively.। believe more information on the projects।
have referred to, and other projects that NEA is
associated with, may be obtained from other
sections of this Review.

In essence, the heavy up-front investment
needed to carry out development works and the
need to carry out its work in a healthy business
atmosphere are important factors in NEA's
application for tariff increases. The last increase
was filed at the end of the past year and since been
approved by the Electricity Tariff Fixation
Committee. The Government has also approved
the implementation of a semi-automatic tariff
adjustment commensurate with the consumer
produce index but limited to an increase of five
percent per annum. In the meanwhile, we have
made concerted efforts to curtail our expenses
and achieve a trim fiscal management. We also
succeeded to some extent in achieving a well-
managed inventory and timely completion of
audit reports. Such efforts on streamlining financial
management will continue into the coming years.

Operational Performance

Over the financial year, the system peak of the
interconnected system was recorded on January
18, 2001 at the level of 391 MW registering an
11.11 percent increase over the last winter's
figure.

During the past financial year, the electrical
energy available for use within the NEA system
totalled 1868.42 GWh which was an increase of
166.97 GWh (9.81 percent) over the previous
year's figure of 1701.45 GWh. This comprised of
1113.36 GWh obtained from NEA's hydro
generation and 27.14 GWh from NEA's thermal
generation. A total of 226.54 GWh was imported
from Indian State Electricity Boards in accordance
with the Power Exchange agreements and 501.38
GWh purchased from the Nepalese private
generators. Despite generation additions, energy
availability was marginal because of unusually
low river discharge in rivers providing the
generation. During these months, our generation
plants performed well, and aided by efforts from
grid maintenance and the LDC, we managed to
pull off with a fair degree of availability and
scattered application of load shedding.

Electricity sales totalled 1407.127 GWh - an
increase of about 137.53 GWh (10.86 percent)
over last year's sales figure. Internal sales within
Nepal increased to 1281.127 GWhandaccounted
for 91.05 percent of the total sales and registered
an increase of 106.859 GWh (9.1 percent) over
the last year's figures. Exports to India increased
to 126 GWh - an increase of 31GWh over last
year.

Over the past financial year, the number of
consumers grew by an estimated 91,418 (or
13.56 percent) over the previous year's figure to
reach a total of 765, 397. The domestic category
accounted for 95.64 percent of the total consumer
numbers, 36.84 percent of the sales and
contributed to 38.47 percent of the revenue. The
industrial category formed only 2.31 percent of
the total consumers, but accounted for 37.00
percent of sales and contributed to 35.57 percent
of the revenue. Non-commercial category
constituted 1.08 percent of the consumers,
accounted for 5.20 percent of the sales and 7.36
percent of the revenue. Likewise, the commercial
category constituted 0.45 percent of the total
consumers, accounted for 6.69 percent of the
sales and provided 9.27 percent of the revenue.

The financial picture remained encouraging
for another year. NEA's net revenue totalled
NRs.8901.2 million, an increase of 23.42 percent
over the figure for the precious year. NEA's net

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fixed assets increased to reach an estimated NRs.
39.0758 Billion.

To improve our financial position, we made
concerted efforts to improve and taking stern
action against those charged on cases of theft and
misuse of our supplies. To keep expenditures
down, we attempted to cut down our costs in
operation and maintenance. To exemplify NEA's
commitmentto achieve atrim administration, the
number of employees has remained the same as
they were ten years ago. The past fiscal year was
outstanding in that there was not even a single
new recruitment over the entire year. Instead, we
endeavoured to improve the capability of the
existing staff at all levels and faculties instead of
their numbers. This is where our Training Centre
is playing a very important role. For a full-fledged
academic functioning of the spacious Training
Centre, we look forward to investment from
interested donors in the public or private sector.

Acknowledgement

Toend thisreport! wish totake this opportunity
to extend my sincere thanks to all associated with
NEA's activities during the past year.। wish to
acknowledge the goodwill of His Majesty's
Government for the continued assistance and
investment in our activities. Thanks are also
extended to the Donors and Development Banks
who have taken interest in our operations and
made available financing for our development
works. This acknowledgement would be grossly
incomplete without thanking our consumers for
staying connected to our supply lines and sharing
some turbulent times together.

in the end। must thank the staff of NEA at all
levels and -offices for their continued support।
have received from them.। believe our human
resource is our biggest strength and we have
within us the talent and capability to take NEA to
new heights of success.

Thank You.

(Bishnu Bam Malla)
Managing Director

A YVEAR

IN REVIEW
M3IAIE NI

YVIAV

INTRODUCTION

Like any story of growing up, NEA has quietly
reached its prime teens. Now sixteen, it has
become evident that besides reaching a very
sweet age, NEA hasreached maturity in its thinking
and action. The past year was star-studded with
positive pointers for NEA. Examples -

१ NEA's efforts to fight losses and theft in the
system shored up support from the
Government and the public. The Electricity
Pilferage Act now awaits enactment in the
Parliament. NEA geared up its structure to
meet the challenges ahead. Anti-pilferage
issues saw intense media offensive.

e Although conceived several years ago,
definite steps were taken towards NEA's
commercialisation functions. NEA has
designated six of its divisions to function as
Profit Centres.

न NEA took a hard look at its receivable
accounts and was sternly proactive in
bringing the defaulters to the negotiating
table. Dues have started to be paid and
more payments are committed. This applies
more specifically to dues from the
government and parastatals and the decade
long stand-off in the payment of streetlight
bills by the Municipalities.

० Inkeeping with NEA's commitmentto trim
its organisation and slice off expenses,
there were no new recruitment of staff the
last year. This helped fade NEA's portrait
as a Staff-bloated organisation.

४ NEA's corporate planning took on firm
roots. NEA now has a well-studied pipeline
of generation projects and supporting grid
reinforcements. A defect in planning
smeared the entire past decade with
generation deficiency and landed the
customers with sometimes-severe load
shedding. The private sector has joined in
firmly in the generation area with BOT/
BOOT projects which redresses NEA's

commitments and investment obligations
in this area,

७ NEA reviewed its generation picture and
its seasonal hydrology related
characteristics. Actions were initiated to
close the nagging phase difference in
generation and demand nature by looking
towards enhanced exchange with India
and promoting industrial use of electricity.
The results of the Sixth India-Nepal Power
Exchange Committee meeting produced
positive agreements.

However, NEA operates in Nepal's power
sector which is still in a state of flux. There is
reportedly considerable duplication of
responsibilities among the organisational units
and an adequate regulatory mechanism needs to
be set up. Again, the hydropower policy promotes
private sector participation in the power sector
and an institutional set up is required to reflect the
stand,

What would be NEA's role in the midst of all
the reform? There could be a number of issues
here. One would obviously be the service-oriented
role with NEA taking up its social obligations with
more extensive commercial outlook. It is getting
increasingly evident that the large extent of rural
electrification that constitutes the future
development agenda in power sectors
development would best be dealt by a quasi-
government set-up with a subsidy arrangement
originating from the Government. Another issue
emerges from private sector participation in power
sector investment. NEA as (i) a licensed generator,
(ii) the monopoly buyer of IPP power, (iii) the
owner of the country's only load dispatch centre,
and (iii) a promoter in a joint venture with IPPs
from which it would buy back generation is a
situation that could be incriminating.

But the fact that NEA is regarded as one of the
best functioning utilities in the south Asian region
will obviously catapult NEA into newer heights of
institutional responsibility and success in the
years to come.

SECTORAL REVIEW

NEA BOARD AND MANAGEMENT MATTERS

In the beginning of the FY 2000/01 the then
Minister of Water Resources Mr. Khum Bahadur
Khadka was the Chairman of the Board of Directors
of NEA.

After the change in the cabinet, Prime Minister
Girija Prasad Koirala took the portfolio of Ministry
of Water Resources and State Minister of Water
Resources Mr. Ram Bahadur Gurung was assigned
to assume responsibility as the Chairman of NEA
Board from August 28, 2000. On February 7,
2001 cabinet was reshuffled and Mr. Baldev
Sharma Majgaiya became new Minister of Water
Resources as well as Chairman of NEA Board.
After the resignation of Minister of Water
Resources Mr. Majgaiya State Minister of Water
Resources Mr. Benup Raj Prasai became the
Chairman of NEA Board from May 3, 2001. On
July 26, 2001 new cabinet took oath and Mr.
Bijay Kumar Gachchadar became the Minister of
Water Resources and Chairman of NEA Board.

There were changes in the members of the
Board of Directors also. Secretary of Ministry of
Water Resources Mr. B.N. Sapkota retired and
Mr. Lokman Singh Karki became new secretary of
Ministry of Water Resources and Member of NEA
Board. Similarly, Mr. Kishor Banskota was
inducted to NEA Board as a Member from February
23, 2001 replacing Mr. P. P. Dahal and newly
elected President of FNCCI Mr. २. 8. Shrestha has
replaced the outgoing President of FNCCI Mr. P.
K. Shrestha.

GENERATION

In the FY 2000/01 the total available energy
recorded was 1868.42 GWh (9.81% increase),
the peak load recorded was 391.0 MW on January
18, 2001. Of the total available energy
hydropower generated by NEA contributed
1113.36 GWh (59.59 %), thermal 27.14 GWh
(1.45 %), Import from India 226.54 GWh (12.12
%) and purchase from Nepal 501.38 GWh
(26.83%). The purchase from Nepal has increased
significantly compared to the last year purchase

of 169.3 GWh which is almost threefold increase.
This is mainly due to increase in supply from
Khimti Hydroelectric Power Project (HEP) and
Bhotekoshi HEP.

The performance of major hydropower
stations and thermal stations are as follows:

HYDRO GENERATION

Marsyangdi Hydro Power Station (HPS) Gane-

ration of Marsyangdi HPS was reduced to 430.986
GWh which is about 5.80% less than last year.
This reduced generation is due to unfavorable
hydrological conditions and "Take or Pay" contra-
ctual obligation of power purchase agreement
with Khimti and Bhotekoshi HEP which compels
NEA to purchase all the power generated from
Khimti HEP and Bhotekoshi HEP irrespective of
NEA's need.

Regular repair and maintenance works were
carried out in Marsyangdi HPS. Some of the
important repair works are as follows:

* Worn out runner of lower wearing ring of
unitno.2 wasreplaced and damaged blades
were repaired.

"० The gate body of Radial Gate No.1 and
concrete surface were repaired to stop
heavy leakage of water.

¢ CDP (diamond) plates were repaired by
using hard surfacing electrodes. Further,
the right bank vertical concrete wall of
Sluice Canal was alsorepaired by installing
9 pieces of MS plates of size 121.9 cm x
243.8 cm. x 1.5cm

"० Logic card of governor of unit No.2 was
replaced.

Necessary maintenance works were carried
out but annual scheduled overhaul of unit No. 3
could not be carried out because of system
requirement did not permit the shut down of this
unit.

Kulekhani -!HPS: The generation of Kulekhani-। HPS in this fiscal year was reduced to 175.752

A YEAR
!

IN REVIEW
MGlAida NI

GWh which is about 29.61 % less than
that of last year. The main reason being
insufficient rainfall. Regular maintenance
works were carried out on generator air
coolers, generator exciters, SF, circuit
breakers, air circuit breakers, etc. Some
problems occurred in the governor
system of unit No.2 which resulted in
malfunctioning of automatic synchro-
nization load control. The problem has
been solved temporarily and permanent
solution will be sought in the coming
year.

Kulekhani - 1 HPS: In this fiscal year
the generation of Kulekhani-ll HPS was
alsoreduced accordingly to 81.810 GWh
which is about 33.36% less than that of
last year. Regular maintenance works
such as oil filtration of 3 power
transformers; cleaning and maintenance
of generator air coolers, governors and
generator exciter of unit No. 2; commi-
ssioning of a new cooling water pump;
etc. were carried out.

Problem of failure of electronic cards
also occurred in the governors of both
units causing problems in automatic
synchronizing and load control. The
governor of Unit No.1 has been fixed
completely by replacement of the
damaged cards and the governor No.2
will be repaired soon. At present, this
unit is being operated in manual mode.

Thermal Generation

Addition of 116.2 MW of power
from Khimti HEP (60MW), Modi Khola
HEP(14 MW), Puwa Khola HEP (6.2
MW) and Bhotekoshi HEP (36 MW) in
the Grid has greatly reduced the require-
ment for thermal generation this year.
However, system was supported by
generating 26.09 GWh of energy from
thermal generation during this FY 2000/
01 to meet the system energy and power
requirement during the shortage period.

Most of the machines at Duhabi
Multifuel Power Plant and Hetauda
Diesel Power Plant are in operating
conditions, however, major scheduled

maintenance are planned to keep the
machines in good operating conditions.

Grid Operation and Maintenance

Some of the major regular androutine
preventive maintenance works carried
out in the FY 2000/01 by the Grid
Operation Department were as follows:

० 12 MVA, 132/33 kV transformer
at Dhalkebar substation was
shifted to replace the damaged 15
MVA transformer at Bharatpur
substation and necessary major
works were carried out at
Baharatpur substation to install a
new 30 MVA, 132/33 kV
transformer

* 12.5 MVA damaged transformer
at Dhalkebar substation was
repaired and taken to Lahan
substation where it is successfully
operating.

* The old 3 MVA, 33/11 kV trans-
former at Anarmani substation was
replaced by 7.5 MVA, 33/11 kV
transformer from Rani substation.

० Preparatory works for the
installation of 20 MVA transformer
with new bay in Damauli
substation were carried out.

¢ Six old VCBs in Anarmani and 5
old VCBs in Kohalpur substation
were replaced by new ones.

° SF, circuit breaker received from
Kaligandaki-A HEP was used to
replace old MOCB of 132 kV
Pokhara feeder at Bharatpur
substation

* Olddamaged earthing transformer
was replaced at Simara
substation.with a new one.

* Two sets of old OCBs and panels
for a 3.15 MVA transformer at
Parwanipur substation were
replaced with new VCBs.

न Tower protection works were

carried out in Mid Western, Far
Western and Eastern branches and
rerouting of three 132 kV towers
at Surainaka under Western
Transmission Branch is almost
complete.

० Maintenance works for breakers
and other accessories were done
in Bharatpur, Hetauda, Anarmani
substations.

* About 158 new electronic meters
were installed in substations under
Eastern Branch (50), Mid Division
(8) and Bagmati Transmission Grid
Division (100).

¢ Relays testing, calibration and
resettings were done in some
substations.

Transmission Line Design and Construc-
tion Department

Transmission Line Design and
Construction Department (TLDC) is
responsible for design and construction
of grid transmission system of NEA, which
includes transmission networks and
substations. TLDC initiates the trans-
mission projects recommended by the
System Planning Department and
prepares all the preparatory works for
project implementation and monitors
the projects under implementation.

In the FY 1999/00 Khimti-Bhaktapur-
Balaju 132 kV transmission line project
and Chilime-Trishuli-Devighat 66 kV
transmission line project were
completed.

In this FY 2000/01 the following
transmission line & substation projects
are under constructions:

० Hetauda-Dhalkebar and Butwal-
Bardaghat 132 kV Second Circuit
transmission line project.

० Banepa and Panchkhal 66 kV
substation project.

न Modi Khola substation expansion
project.

लमा - ---क-

¢ Butwal-Sunauli 132 kV trans-
mission line project.

Detail engineering survey works for
the proposed 132 kV Indo-Nepal power
exchange interconnections and
Environment Impact Assessment (EIA)
for proposed Kathmandu Valley 132 kV
Ring Main T/L and Pathalaiya-Parwanipur
132 kV transmission lines are completed.

Following Projects are planned for
implementation :

० Thankot-Bhaktapur 132 kV
(Kathmandu Valley 132 kV Ring)
Transmission Line Project.

० Parwanipur-Birgunj 132 kV
Transmission Line Project.

¢ Dhalkebar-Bhittamod 132 kV
Transmission Line Project.

Load Dispatch Center

Launching of commercial operation
of Bhotekoshi HEP (36 MW) in this FY
2000/01 supplemented the Integrated
Nepal Power System to cope with the
rising peak demand which is a welcome
development. But this development
increased suplus energy during the wet
season without increasing much of
peaking capacity during dry season when
demand is highest. Accordingly, this has
added further challenge to the operation
of load dispatch center.

DISTRIBUTION & CONSUMER SERVICES

Distribution and Consumer Services
(DCS) is one of the prime activities of
NEA which includes of distribution and
consumer services to consumers in
integrated as well as isolated supply
areas. The responsibilities of DCS
involves supplying consumers with
electric power and collecting revenue
from them. Though at present only 15
percent of people are being supplied but
about 32% of population have access to
electricity.

The main functions undertaken by
DCS are: (1) to plan, design and

implement the distribution system up to
33 kV; (ii) to operate and maintain the
distribution network; and (iii) to execute
the meter reading, billing and revenue
collection from the consumers. Electricity
has reached district headquaters of all
the 75 districts (74 districts from NEA
and Solukhumbu district from a joint
venture of NEA and a private company).
However, at present only 57 districts are
connected with the central grid, 2 districts
have solar electricity supply and the
remaining districts receive electricity
supply from small hydropower. Total
number of consumers and energy sold
for FY2000/01 are 765397 and 1407.127
GWh respectively which are higher than
that of last FY (1999/00) by 13.56% and
10.86% respectively. Total internal sales
within Nepal increased to 1281.127
GWh and accounted for 91.05 % of the
total sales and registered an increase of
106.853 GWh (9.10 %) over the last
year's figure.

The regional breakdown of number
of consumers and sales are shown in the
table below:

Geographical Region Regional Office

The domestic category of consumers
accounted for 95.64 % of the total
consumer number, 36.84 % of the sales
and contributed 38.47 % of revenue.
The industrial category consumers is
only 2.31 % of the total number but
consumed 37 % of the sales and
accounted for 35.57 % of the revenue.
Non-commercial category constituted
1.08 % of the consumers and accounted
for 5.20 % of the sales and 7.36 %of the
revenue. Likewise, the commercial
category constituted 0.45 % of the total
number, consumed 6.69 % of the sales
and provided 9.27 % of the revenue.

Central Bagmati West _ 164330 363.339
Bagmati East 115880 134.100

East Eastern
Central
West Western
Mid and Far Western

A YEAR

—

IN REVIEW
M3lA3u Ni

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DCS maintained its good relations
and contacts with the consumers and
conducted several programs in this
direction like improvement in the quality
of supply, introducing effective commu-
nication system, conducting public
awareness programs regarding payment
of bills, meter readings, accidents, loss
reduction and safety through electronic
media and newspapers, etc.

Despite the concerted efforts to curb
the system loss, it remained a burning
issue for NEA. DCS has undertaken
various measures like installation of ABC
cables, launching of public awareness
program, regular and through inspection
of big and medium consumers, correct
metering system and introducing
electronic meters in its network toreduce
the losses. Yet it requires the continued
and committed efforts from all walks of
society to control the losses. An act
related to control of unauthorized leakage
of electricity has been submitted to HMG
and is expected to be approved by the
Parliament very soon.

_ For commercial operation, improved

Consumers (No.) Sales (GWh)

307.438
346.434

187.851
67.965

1407.127

127285
140600

151470
65832

efficiency, better accountability and
institutional strengthening of NEA, 6
distribution center are being run under
the concept of profit center. One Profit
Center has been chosen from each
regional office and they are expected to
achieve and fulfill the target regarding
reduction of electricity losses, cutting
the expenses, increasing the revenue
and cash-flow and providing quality
services to its consumers. In the coming
FY 2001/02 the concept of profit center
wil be further expanded to 9 additional
distribution branches and will be
implemented as a separate project.

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Small Hydropower and Rural Electri-
fication

The responsibilities of Small Hydro-
power (SHP) and Rural Electrification
(RE) sector includes of construction and
maintenance of isolated small hydro-
power stations and the rural electrifica-
tion around the SHPs and the extension
of the National Grid to the remote and
difficult hilly region along with the
distribution works.The rural electrifica-
tion works in 34 districts of the Kingdom
are in progress of which 16 districts have
been connected to the National Grid.
Two districts Mugu and Humla have
solar electric supply and 14 districts have
electricity from small hydropower plants
and 10 districts have partial supply from
small hydropower plants in isolated
mode. With only 6% of the population
of these districts having electricity supply
SHP and RE Department is actively
engaged in trying to provide electricity
to the remaining parts of these districts.

In the FY2000/01 nearly 80 km of 33
kV line, 120 km of 11 kV line and 350
km of 400/230 V line have been cons-
tructed and 60 distribution transformers
have been installed increasing the
capacity by 1.5 MVA. Nearly 6000 new
consumers have been added.

DEVELOPMENT

The main activities carried out under
Development Sector are as follows:

Project Identification Program

The Project Preparation and Studies
Department identifies various new
medium to large sized hydropower
projects in Nepal. In the FY 2000/01,
desk studies of seventeen hydropower
projects in Eastern, Central and Western
Development Region of the country have
been carried out. Out of these seventeen
projects at desk study level, four projects
have been studied at reconnaissance
level. The main features of the projects
are summarized in the following table.

Development District
Region

i (m)

Ghunsa Khola। Eastern Taplejung
Dudh Koshi-A_। Eastern। Okhaldhunga

Lower Myagdi Myagdi

Environment

Since the beginning of 1980s,
environmental issues have become an
important aspect of the government's
policies in development projects. HMG/
N has promulgated the Environmental
Protection Act, 1996 and the Environ-
ment Protection Rule,1997 (First
Amendment 1999). This rule has made
it mandatory to carry out Initial
Environmental Examination (IEE)/
Environmental Impact Assessment (EIA)
and Environmental Auditing (EA) for
development projects. Projects that
require IEE are transmission lines up to

66 kV, rural electrification of 1 to 6
MVA, hydropower projects of 1 to 5
MW. The projects that require EIA are
transmission lines above 66 kV, rural
electrification of more than 6 MVA,
hydropower projects above 5 MW and
thermal electricity generation plant
above 1 MW.

NEA- Environmental Division (ED)
was established to take all environmental
issues into consideration when develop-
ing projects. It conducted the following
works in the FY 2000/01.

¢ Fieldwork of Lalitpur 33 kV sub-

transmission line and 33/11 kV
substation project was completed.
ToR has been forwarded to Depart-
ment of Electricity Development
(DoED) for approval.

° Scoping of Upper Tamakoshi HEP

for EIA, prepared its ToR and
submitted it to DoED for approval.

"न Coordinated and supervised the

work of the consultant GEOCE for
carrying out the EIA of Upper
Modi-A HEP. Final Draft Report
has been submitted to DoED for
approval.

"० EIA Report of
Kulekhani-lII HEP
has been forwa-
rded to Ministry
of Water Resour-
ces (MoWR) for
approval.

«० Carried out the
scoping of
Chameliya Gad
HEP for EIA and
ToR preparation is
under process.

* Completed the
preparatory work for carrying out
Goplingtar Lift Irrigation Project
at Marsyangdi HEP affected area.

Coordinated and supervised the
work of the consultants for carry-
ing out IEE of Rural Electrification
and Distribution Strengthening
Project in 37 districts:

NEA-ED organized successfully the

Environmental Training (April 23-
May 9, 2001) to NEA staff, Level
6, 7 and 8 from different offices
and disciplines. 28 persons partici-

pated in this training. Resource
persons of NEA, Ministry of
Population and Environment,
Tribhuwan University, etc.
imparted concise and fruitful
environmental know-how on
different aspects and current trends
of environment.

Electromechanical Design Division

In the F¥Y2000/01 Puwa Khola HEP
(6.2 MW) and Modi Khola HEP (14.8
MW) were completed. Electromecha-
nical Design Division was involved in
testing and commissioning of both these
projects.

This division is working as the
engineering consultant for Chilime HEP
(20 MW) which is under construction.
The design of Pelton turbines, overhead
cranes, gates and valves, generators,
transformers etc. are complete and many
of these equipment are at site. In the FY
2000/01 the division has completed the
electromechanical feasibility study of the
Kulekhani-lll HEP and Upper Tamakoshi
HEP. This division is engaged in prepa-
ration of the tender document of
Chameliya HEP (30 MW) and in the
rehabilitation of power stations.

Soll, Rock and Concrete Laboratory

The Soil, Rock and Concrete
Laboratory (SRCL), a Unit of NEA was
established in 1986 to provide
professional consulting and advisory
services on commercial basis in
accordance with NEA Act. The laboratory
management is controlled, supported
and guided by the SRCL Board with the
Chief of Development acting as the
Chairman and laboratory Chief as the
member secretary.

This unit was originally established
as a specialized unit to provide services
on exploration of construction sites and
testing of construction materials. It has
been involved in one way or another in
almost all of the hydropower projects
which have been studied, under

construction or have completed.
Presently, it has been providing
consulting services not only in the fields
of geotechnical engineering, hydrology
and topography but also in other fields
such as design works, environmental
studies such as Environmental Impact
Assessment, Social Impact Assessment,
Acquisition Compensation and Rehabi-
litation Plan for all power projects.

Some of the areas of expertise of this
laboratory are :

न" Field exploration including
survey, exploratory diamond core
drilling as deep as 250 m, drilling
in soil, penetration tests, test
aditing, geophysical prospecting,
ground monitoring, slope design
and analysis, instrumentation of
natural as well as cut/fill slopes,
etc.

* Construction material investiga-
tion including field works, mate-
rial sampling, field and laboratory
testing and establishment as well
as operation of field laboratory. It
is capable of handling works of
any scale.

* Feasibility (Technical and Econo-
mic) and Design of hydropower

projects covering hydrological,
hydraulic studies, design of
infrastructures such as roads,
bridges, houses, water supply
schemes, electrification systems,
etc.

* Construction management as well
as construction supervision of
hydropower projects.

न Study of glacial lakes as well as
natural and artificial lakes and
reservoirs, study of reservoir
sedimentation.

० Environmental Impact Assess-
ments.

* Cadastral mapping including land
acquisition assistance, negotia-
tion and payment.

"० All other studies related to rivers,
water resources, hydropower and
energy, etc.

Concrete Pole Plant, Amalekhgunj

The Pre-stress Concrete (PSC) Pole
Plant was established in December, 1994
under the Seventh Power Project at
Amalekhgunj, Bara district. It has the
production capacity of 1400 pieces of
PSC poles of different sizes. This plant is
now under the supervision of the
Construction Department.

The plant consists of following
equipment:

a) Concrete mixing plant with a
capacity of 15-20 cu.m. per hour,
0.5 cu.m. per batch.

b) Steam boiler machine with a
capacity of 3 tons per hour.

c) Moulders of 11 m. (4 sets), 9m.
(10 sets) and 8m. (15 sets).

d) Main gantry crane with a capacity
of 5 tons and yard gantry crane
with a capacity of 2.5 tons.

e) Tensioning equipment with a
capacity of 350 ton.

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Central Workshop : Under the IDA loan
for the Power Sector Efficiency Project
(PSEP), the Central Workshop of NEA
was established in 1998 at Hetauda,
Makawanpur district in Narayani Zone.
After the completion of the project the
workshop is running under Electro-
mechanical Division.

The function of the workshop has
been divided into two sections: (1) Repair
and maintenance of distribution transfor-
mer up to 500 kVA and (2) Operation
and maintenance of heavy equipment.

Transformer Workshop: Transformer
Workshop has equipment such as lathe,
shaping, bench drill machine, grinders,
air compressor, gas welding, 25 ton
electric overhead traveling crane, electric

Service

Officer Level Technical

Administration

Assistant Level

Technical 5039 173 5212 _ 4140

oven for distribution transformer, electric
oven for power transformer (under
construction), transformer testing
equipment, etc. It has various testing
facilities also.

Operation and Maintenance of Heavy
Equipment: The workshop has various
kinds of heavy equipment such as 12
and 25 ton wheel cranes, 2.3 m? wheel
loader, 1.3 m? backhoe, 26 and 30 ton
bulldozers, 8 ton dump trucks, 30 ton
tractor trailer, 7 ton flat bed trucks, road
roller, grader, etc. The workshop is
providing equipment services on hire
basis to various government organiza-
tions and NEA projects such as Kulekhani
Disaster Prevention Project, Ilam,
Chilime, Chameliya, Kaligandaki, Modi
Middle Marsyangdi, Trishuli, Devighat,
Sunkoshi HEPs, etc.

Rehabilitation Work of Existing
Hydropower Stations : Civil Design
Department has provided technical
support for rehabilitation of Trishuli HPS
and Devighat HPS. The rehabilitation
works include repair of under sluice at
the barrage, forebay and power channel.

The scouring at under sluice gate
No. 5, 6 and 7 of flushing gate of Trishuli
HPS was repaired by concrete fill
anchored with steel plates whereas the
scouring area of about 600 m? and 4.20
m deep at forebay of Devighat Hydro-
power station was backfilled with suitable
fill material and was covered by
reinforced concrete slab. The slope failure
in the left side of forebay was protected

Personnel Status Fiscal Year 2000/01

Approved Position

890
368

45
0
45
293

पछा। 511.। 9470 7553

7

845 677 784
368 307 0 317
oa i

जहा ङ्गा जहान

by 5 m high stone masonry wall. The
concrete slabs in power channel were
replaced by new concrete slabs and
minor repair works were carried out.
Furthermore the department is continu-
ing the study for other required rehabilita-
tion works for Sunkoshi and Panauti
HPS.

HUMAN RESOURCES

The total approved positions of staff
in NEA during the fiscal FY 2000/01 is
9470 and total number of permanent,
temporary and daily wage staff currently
being employed is 9694.

NEA has undertaken many personne!
welfare activities to boost the morale of
its staff. These welfare activities include
personal loans, financial assistance to
the needy staffs and supports to the
families of staffs who died during
accidents. Personnels have been covered
under life insurance and accidental
insurance policies also.

During the year under review (2000/
01) 8 staffs have resigned, 99 staffs have
been retired and 40 staffs have died.

A total of 294 staffs were promoted
in the FY 2000/01 of which 34 were
officer level and 260 were assistant level.

In order to maintain discipline,
actions were taken against 11 staffs of
whom 6 were suspended and departmen-
tal actions were taken against 5.

Training was imparted 347 staffs out
of which 263 received training in Nepal
and remaining 84 received training
aboard.

Existing Situation

563 741 5444

~e-

Staff Training FY 2000/01

Higher Studies

Seminars, Workshop,
Conference, etc.

Inspection
Training
Total

Note staffs trained in the NEA Training Centre is
not included.

NEA Training Center

NEA Training Center continued its
efforts during the FY2000/01 for
enhancing human resource develop-
ment of NEA's employees. Following
works were carried out by the center:

* A steering committee named as
Training Center Management and
Development Committee was
formed coordinated by Chief,
Human Resources and
Administration and represented
by Chiefs of Finance, Human
Resource and Corporate Planning
for guidance to the Center.
Training Center Chief is the
member secretary of the project.
The Center started operation of all
its facilities for academic purposes
with restoration of hostel, cafeteria
and library facilities.

"न The Center conducted several
management, technical and
functional enhancement training
programs based upon NEA's
needs. In this regard 475 NEA
employees were provided training
in different technical and non-
technical courses. This included
7 courses in management, 6 in
generation, 7 in information
technology, 5 in distribution and
5 in other fields.

* 36 officer level staff were deputed
onshort-term training and seminar
programs in India in the field of
technical, finance and information
technology.

¢ Syllabuses for different courses in
the field of power generation,
hydropower, transmission, distri-
bution, management and informa-
tion technology were prepared
and approved for implementation.

० Tariff was approved for renting of
physical facilities, equipment and
other facilities of the center to the
clients outside of NEA.

LEGAL ASPECTS OF NEA

The Legal and Arbitration Division of
NEA performs legal activities, and
provides legal advice to the management
in all legal aspects which include power
purchase and contract agreements with
different companies, joint venture progra-
ms, power theft and pilferage cases, etc.
In the FY 2000/01, 33 new cases were
filed. In the FY 2000/01, with the 30
pending cases of the previous year there
were a total of 63 cases of which verdict
went in favor of NEA for 10 cases while
11 cases were against NEA and 2 cases
were settled by mutual agreement. So
40 cases are under consideration. Most
of the cases belong to the misuse of
electricity, billing differences, land
acquisition, termination of services etc.

PLANNING

Planning as usual is busy updating
data, carrying out system plans, preparing
the Corporate Plans and monitoring and
evaluating the projects of NEA.

System Planning Department: As its
regular proceedings, System Planning
Department updated the load forecast
which had been prepared by Norconsult
in 1997. It carried out generation
expansion plans including the projects
for which PPAs had been signed. Several
different scenarios were studied.
Transmission studies were also carried
out based on different generation
expansion plans. This department also
provides technical support to other

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departments of NEA for carrying out
load flow and power system studies and
contingency analysis of the power
system.

Corporate Planning Department This
Department has as usual been dealing
with independent power producers (IPPs)
and has signed or is in the process of
signing several power purchase agree-
ments (PPAs), it is very heartening to
know that more and more private compa-
nies are showing keen interest in
developing hydropower projects in
Nepal. The Corporate Development
Plans were also prepared and this is
updated every six months. Projects such
as Nepal Electricity Utility Statistics 2000
was successfully undertaken and a lot of
useful data has been painstakingly
compiled.

Partnership programs jn the energy
sector have been sponsored by USAID
and managed by United States Energy
Association (USEA) for the formation of
partnerships between utilities in the USA
and those in several countries in Asia,
Africa, the Baltic countries and Central
America. The aim of these partnerships
is to foster development of ideas through
the exchange of visits by delegates from
the utilities of the two countries and to
explore areas where further assistance
could be provided.

A signing ceremony in the presence
of the Minister of State for Water
Resources, Hon. Ram Bahadur Gurung
and the US Ambassador to Nepal, His
Excellency Ralph Frank, was held on
November 2, 2001 in Kathmandu in
which Nepal Electricity Authority signed
agreements with Tacoma Electric and
Wisconsin Electric Power Co., from the
states of Washington and Wisconsin
respectively. Mr. Bishnu Bam Malla,
Managing Director, signed on behalf of
NEA and Mr. Steven Klien, Superinten-
dent and Mr. Richard White, Vice
President, signed on behalf of Tacoma
Power and Wisconsin Electric,
respectively. The signing ceremony

indicated the formal commencement of
the energy partnership program between
NEA and the two US utilities. The
partnership program will initially be for
a period of two years and will focus on
discussing current issues such as loss
reduction and metering, tariff issues,
computerization and the independent
power producer.

As programmed in the exchange,
three delegations from NEA have visited
department of interest at the two utilities
in the USA and an equal number of
delegations from the US utilities have
visited Nepal to continue discussions in
the areas of common interest. The
partnership has been useful to NEA in
bolstering its confidence in the
understanding of current issues by
sharing the experiences which the US
utilities have faced in similar situations.

FINANCE AND ACCOUNTS

NEA's financial performance
remained encouraging for FY 2000/2001.
NEA's total revenue increased by NRs.
1688.8 million (23.42% increase) to
reach a figure of NRs. 8901.2 million as
compared to NRs. 7212.4 million in the
previous year. NEA's revalued assets
increased to 39075.8 million as
compared to NRs. 35195.7 million in

the previous FY 1999/00. Expenditure in
operation and maintenance have
increased by 39.3% reaching a figure of
NRs. 8255.3 million as compared to
NRs. 5925.0 million in fiscal year 1999/
00. Overall, NEA registered a net profit
before tax of 409.2 million as compared
to NRs. 756.5 million in FY 1999/00.

In FY 2000/01, NEA has invested
NRs. 8972.0 million in capital works
and projects, the funding of which
comprised of NRs. 974.07 million equity,
NRs. 7092.51 million from borrowing
and the rest from NEA's own resources.
NEA also has invested NRs. 475.0 million
in the Chilime HEP which is being
developed by a subsidiary company. By
the end of FY 2000/01 NEA's total
borrowing stood at NRSs. 37255.7 million
and a total of NRs. 1523.76 million as
debt service.

The financial audit for FY 1999/00
has been completed. The audit for the
year 1999/00 was undertaken by auditors
M/S Price Waterhouse, India, Chitracar
Sharma & Co. of Nepal. For the financial
audit of FY 2000/01 auditors M/S Price
Waterhouse, New Delhi and Chitracar
Sharma & Co., Nepal have been
appointed. Tax assessment for the
FY1994/95, 1995/96 and 1996/97 are in
final stage and assessment for the FY1997/
98, 1998/99 and 1999/00, arein process.

Management Information System

The MIS Department of NEA is work-
ing hard in setting up a computerized
network within NEA headquarters and
linking itwith some offices of NEA outside
Kathmandu Valley via telephone network
system. This network system will be
used for providing management informa-
tion system (MIS) reports also on aregular
basis. The installation of computerized
network system is almost complete and
the system will be commissioned in the
FY 2001/02. The development of custo-
mized application software for producing
MIS reports is also almost complete and
is under testing.

To improve revenue performance in
some of the branches under distribution
and consumer services, MIS Department
has undertaken to extend existing
computerized billing system of
Kathmandu West Division to Kirtipur,
Biratnagar, Janakpur, Birgunj,
Bhairahawa and Nepalgunj. The
computerized billing system in Kirtipur
is already in operation while computer
hardware have been already installed in
the remaining 5 places for computerized
billing system and they will be in
operation in the FY 2001/02.

Internal Audit

In order to improve auditing functions
Internal Audit Department introduced
revenue auditing software which was
developed with the help of a local
consultant and which was found to be
very useful for consumer and revenue
auditing.

To familiarize ledger clerks with this
software training was given to 115 ledger
clerks at the NEA training center.

To ascertain losses of distribution
transformer a pilot project was under-
taken to install meters on all! the trans-
formers of Pulchowk branch (177
transformers) and Baneshwer collection
center (167 transformers) which will be
completed by September 2001.

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PROJECT HIGHLIGHTS

Kaligandaki - 'छै' HEP

Kaligandaki-A is located approximately 180
km west of Kathmandu on the southern edge of
middle mountains on the Kaligandaki river in
Gandaki zone. This project is a run-of-river type
hydroelectric scheme, with an installed capacity
of 144 MW, with peaking capability of 6 hours
even during the dry season. The project is expected
to generate 842 GWh of energy annually using a
power tunnel of about 6 km length. The power
generated from the project will be evacuated to
the central grid through 132 kV transmission lines
to Pokhara and Butwal. The total cost of the
project is estimated to be US$ 452 million which
is being funded by HMG, NEA, Asian
Development Bank and Bank of Japan for
International Cooperation.

The contract for consulting services for design
and construction supervision works was awarded
to Morrison Knudsen International Inc. in
association with Norconsult International and
IVO International. All the construction works
such as civil works, hydraulic steel works, electrical
and mechanical! works, and 132 kV transmission
lines and substations are in place. The contract for
civil works was awarded to Impregilo SpA of Italy;
hydraulic steel works to Noell Stahl of Germany;

electrical works to Mitsui/Toshiba/Alstom Joint
Venture; mechanical works to Mitsui/Toshiba
Joint Venture and 132 kV transmission lines and
substations to TATA/Marubeni Joint Venture.

Though the project was originally supposed
to be completed by the end of 2000, unfavorable
geological conditions, delay in the commence-
ment of civil works and several local problems
have delayed the project. The latest review of the
work schedule carried out by the Consultants
shows that the wet testing of the first unit is
expected to be started around end of December,
2001, while the project is anticipated to be
completed by March, 2002. The tunnel
breakthrough ceremony was celebrated in the
presence of the then Hon. Minister of State for
Water Resources Mr. R.B. Gurung on January 26,
2001. All the three spillway radial gates in the
main diversion dam were successfully installed
on March 15, 2001. Electro-mechanical works,
transmission line tower erection and stringing of
transmission lines are at the final stage and the
Lekhnath substation has already been charged
since January, 2001. The transmission line works
in Pokhara sector suffered due to site access and
land clearance denials posed by local residents at
13 tower sites. A solution has been reached
through negotiations. However, the agreement
has yet to be implemented and work remains
suspended. The overall progress of the project
achieved so far is about 90%.

Middle Marsyangdi HEP

The Middle Marsyangdi HEP, with an installed
capacity of 70 MW, is a peaking run-of-river
hydropower scheme located about 170 km west
of Kathmandu in Lamjung district. The
Government of Federal Republic of Germany
(through KfW), His Majesty's Government of
Nepal and NEA are jointly financing the project.
An European consulting firm Fichtner Joint
Venture is the engineering consultant and the
local consulting firm TAEC-NESS is the
environmental consultant of this project.

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The major structural components of
the project are a 62 m high 95 m long
concrete and rockfill dam, a 1.6 million
m3 capacity peakingreservoir, three 12m
x 19.5 m spillway gates, underground
desanding caverns, 5210 m long power
tunnel, a surgetank, a 450 m long
penstock and a surface powerhouse
equipped with 2 Francis turbines of 36
MW capacity each. The project will
generate about 398 GWh of annual
energy, which will be evacuated through
41 km long 132 kV transmission line to
the national grid at the existing
Marsyangdi Power Station.

The project work has been divided
into several Lots such as Lot C, Lot C-C4,
Lot HSS, Lot M, Lot E, Lot SSI, Lot 552
and Lot TRL. Out of the above lots,
contract agreement has been concluded
for Civil Works (Lot C) with the lowest
evaluated bidder Dywidag-Dragados-
CWE Joint Venture on June 25, 2001 and
the contractor has already started the
mobilization, site installations and survey
works at the project area. The work of
NEA and Engineer's Camp (Lot C-C4) is
being carried out by Tundi-Lama Joint
Venture. The camp contractor's work for
roads, power lines, boundary wall,
foundation and erection of temporary
and permanent buildings is ongoing.
Tubewell drilling has reached the
necessary depth and permanent pump
has been installed. Nine pre-fabricated
houses have already been shifted to the
NEA Camp from the existing Marsayngdi
Hydropower Station. Tender (financial
proposals) received for Hydraulic Stee!
Structure (Lot HSS) and Mechanical
Equipment (Lot M) are being evaluated
by the consultant and tenders have
already been invited for Electrical
Equipment (Lot E) and 132 kV substation
(Lot SSI). Offer obtained for GIS
Switchgear (Lot 552) is also being
evaluated. Tendering for Transmission
Line (Lot TRL) will be started soon after
receiving of the tender documents from
the consultant.

The Environmental Impact Assess-

ment (EIA) of the project was carried out
in 1997 during the upgrading of feasibility
study. Since HMG/N has made changes
in the Environmental Regulations, EIA of
the project hasto be carried outaccording
to the new regula-tions. Accordingly,
Scoping and Terms of Reference (ToR)
for hydropower gene-ration and
transmission line has been prepared,
which has been approved by Ministry of
Population and Environment (MOPE).
Based on the approved Scope and ToR,
the environmental consultant has
prepared the EIA report for hydro-power
generation which has been forwarded
to the MOPE for approval. The EIA of the
transmission line based on the approved
Scoping and ToR is being carried out by
the environmental consultant.

Meanwhile, construction license for
the hydropower generation and survey
license for the transmission line has been
issued to the project. The process for
issuance of construction license for the
transmission line is going on.

The project has already acquired the
necessary land for the resettlement area
at Udipur, NEA camp at Phedikuna,
headwork and contractors' camps and
site installation areas at Phaliasangu.
Distribution of special allowances and
plots free of cost to affected families at
the dam site has been done and the
affected families have taken their
belongings and moved out of the cons-
truction area. Some of them have already
constructed their houses at the resettle-
ment area and started living there. Land
required for powerhouse, surgetank,
penstock, site installations, etc. at
Siudibar has also been acquired for the
project and the compensation is being
distributed. Shifting of temple, cremation
area and local post office out of the
construction area is already complete.

The project has carried out income
generation oriented training programs
to the members of the project-affected
families and the local people of the
project area. Community awareness
programs focusing on public health and

traffic safety has also been carried out at
the project site. Similar other income-
generating training programs and public
awareness programs will be carried out
at the project site in the coming days.

Ham (Puwakhola) HEP

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

During the construction, due to the
adverse geological conditions encoun-
tered which were very different and
difficult from that envisaged during the
project design phase, and the fragile and
unstable slope at the initial penstock
alignment, it was decided to relocate the
penstock pipes and the associated civil
structures.

Since llam Hydropower Project is a
run of river development and most of
the infrastructures are located
underground, the negative impact of the
project construction on the local
environment is insignificant. The projects
has been built at a cost of US$ 15.7
million.

The main civil work consists of the
construction of 30m long diversion weir,
undersluice and intake facilities, two
underground desanding basins, spillway
tunnel and flushing tunnel, 3238 m long
headrace tunnel, head tank, regulating
pond (capacity 2057 m3), penstock
supports and the power house and

switchyard facilities located at the right
bank of Maikhola.

Two units of horizontal axis Pelton
turbines have been installed at the power
house. The power plant is expected to
generate 48 GWh of energy annually.
The power is transmitted through 33 kV
transmission line to Anarmani. {In the
FY2000/01 the power station has been
remedied to supply power to Ilam Bazaar
in an isolated mode when there is no
power available from the National Grid.

Modi Khola HEP

The construction of this 14.8 MW
Modi Khola HEP was completed in july
2000 and the test generation from the
plant was carried out in September, 2000.
The inauguration of the project was
performed by then Rt. Hon. Prime
Minister on December 9, 2000. The
plant is operating satisfactorily and has
already generated 41.4 GWh of electric
energy till July 15, 2001.

The construction of this project was
initiated in 1996. The project was imple-
mented in Deupur VDC of Parbat District
on the Pokhara-Baglung Highway. Main
features of the project includes a 7.5 m
high, 33 m long diversion weir, which
diverts 27.5 m3/sec of water from Modi
Khola into a 155 mlong desanding basin
through four gated 30 m wide intake and
a 250 m long underground box culvert.
An open canal of 63 m length, conveys
25 m3/s of water to aregulating pondage

of 32,900 m3 capacity located at the
right bank of Modi Khola. The semi-
underground power house, housing two
generating equipment is connected to
the pondage through a 1,507 m long
headrace tunnel of 3.15 m diameter, 41
m long horizontal tunnel (below the
surge tank) of 4.24 m diameter, 38 m
high surge tank of 9 m diameter, vertical
shaft of 51 m height with 4 m diameter,
123 m long pressure tunnel with 4 m
diameter and 328 m long underground
penstock pipe with 3.2 ~ 3.5 mdiameter.
A 282 m long underground tailrace
releases the water into the Modi Khola.
The generated power is evacuated to the
national grid through a 40 km long 132
kV trans-mission line to Pokhara.
Because of weak geological condition
encountered during tunnel excavation,
the length of the underground works
was increased from 1888 m to 2409 m
and that of steel penstock was increased
from 90 m to 328 m. The project was
built at a cost of US$ 30 million. The
Government of Republic of Korea has
provided a loan assistance of 12,441
million Korean Won for funding the
electromechanical works, transmission
line and technical assistance. HMG/N
and NEA has managed the remaining
fund for the construction of the project.
Originally, two units of 7 MW
Capacity vertical shaft turbines were
planned to be installed and with a net
head of 67 m and total installed capacity
of 14 MW the plant was to generate 91
GWh of energy
annually. But due to
the high efficiency of
the installed generat-
ing equipment, the
installed capacity of
the units has been
increased up to 7.4
MW each making
the total plant capa-
city 14.8 MW. The
plant now is expect-
ed to generate 92.5
GWh of electric

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energy annually.

Chameliya HEP

Chameliya HEP is amedium size (30
MW) Peaking Run-Of-River (PROR) plant
with 6 hours peaking capacity. The
project is located onthe Chameliya river,
a tributary of the Mahakali river, situated
in Darchula district of Far Western
Development Region, 18 km north east
of Gokule, the nearest road head on
Baitdi-Darchularoad. The projectis about
950 km away from Kathmandu. The
detailed study of the project was carried
out by the Civil Design Department of
NEA, in association with Soil, Rock and
Concrete Laboratory (SRCL), NEA. Since
july, 2000, the detailed design and
preparation of tender documents of the
project is being carried out by a
consortium of consultants Hyundai &
KOWACO and NEA. For this purpose a
grant assistance from Korea International
Co-operation Agency (KOIKA) has been
utilized.

The project will generate 197 GWh
energy annually. The main features of
the project are 23 m high diversion weir
with three 13 m high gates, underground
desander with 2 chambers, 4075 m long
headrace tunnel, restricted orifice type
surge tank and semi underground
powerhouse with three unit of 10 MW
vertical shaft Francis turbines. The power
will be evacuated by 127 km long 132
kV transmission line from switchyard at
Balanch to Attariya substation. Out of 18
km long access road, the construction
(earth work and structural work) of 15
km portion with 40 m span Bailey bridge
construction over Chameliya river has
been completed which facilitates the
transportation of vehicles. The construc-
tion of access road and 22 m span
concrete bridge over Agari Gad is under
progress. Two buildings are constructed
at powerhouse site and construction of
two more buildings are in progress. The
total cost of the project is estimated at
US$ 74.22 million . The detailed design

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and tender documents preparation work
are planned to be completed within
2001. The project is envisaged to be
implemented with co-financing of HMG/
N, NEA and somedonor agencies. HMG/
N has initiated funding arrangement
process. The construction of the project
will be completed within 4 years.

Kulekhani Disaster Prevention Project (Il)

The Kulekhani No.1 and No.2
hydropower stations with capacity of 60
MW and 32 MW were put into operation
in May, 1982 and December, 1986
respectively. These being the only reser-
voir type hydropower plants in the system
are very useful for providing power and
energy during system requirements

Lot ई। Working Area Purpose

KL-1 Reservoir

Construction of check dams to trap

To avoid clogging of existing intake, a
sloping intake to be constructed

especially during the dry season.

Unprecedented heavy rainfalls on
July 19 and 20, 1993 triggered landslides
and flooding in the Kulekhani project
area seriously damaging some important
structures of Kulekhani power station
resulting in the power stations being
completely shut down from July 19,
1993 at 21:25 hr.

In order to have continued supply of
power from the Kulekhani power stations
and to efficiently operate the Kulekhani
reservoir, the Kulekhani Disaster
Prevention Project (1) has been
implemented under an agreement
between HMG/N and Japan Bank for
International Cooperation. The major
works under this project were as follows:

After the commencement of the। Provision

Sloping intake

Check Dam - D-0

sediment in the upstream reaches of the} Check Dam No. 5

reservoir.

Permanent Access Road to reach

Check Dam No. 1

Permanent Access

upstream of Check Dam No.1 to Road.
remove the trapped sediments in the
upstream reaches of the reservoir.

Mandu Area

Project
Inspection

To safeguard the Kulekhani No.2
Headworks from the debris flow, the
reconstruction of Mandu Headwork
were to be carried out.

Embedded Mandu
Headpond. intake
Gate Shaft Outlet
Tunnel Mandu
Intake Rapti Intake.

16 km long road connecting Kulekhani। Bhimphedi - Dam
No.1 Powerhouse and Bhimphedi to

Site Road

Road Kulekhani No.1 Dam Site, Markhu.

To procure the construction equipment। Bulldozer-1 '

Construction

Equipment and
Vehicle Power Stations.

Installation of Telemetering System to

utilize reservoir water efficiently and

System provide warnings to downstream area
during the spillway (gate) operation.

Telemetering

and vehicles for the proper Operation
and Maintenance of the Kulekhani

Backhoe -2, Wheel
Loader -1, Dump
Trucks -4, Pickup
Jeep -4, Station
Wagon -2

Rain Gauge Stations
at Markhu, Tistung
& Daman. Repeater
stations at Deorali
and Chandragiri.
Master Station at KL-
1 Powerhouse
Control Station at
Load Dispatch
Center, KTM.

projecton May, 1996, the overall project
was completed within the scheduled
target on April 28, 2001.

Load Dispatch Center and Balaju Sub-
station Extension Project

In the FY 2000/01 Balaju substation
extension works was completed. With
two new 132 kV GIS switchgears and
one isolator bay with one new 66 kV GIS
switchgear in place, Balaju substation is
now poised to evacuate more power to
Kathmandu and beyond, implying that
the capacity of Khimti, Bhotekoshi and
the upcoming Chilime hydropower
projects could now be fully evacuated
and will result in enhancement of power
system reliability and supply quality.

In Siuchatar, construction of the new
Load Dispatch Center Master Station
building is going on in full swing. Under
a KfW grant, SCADA and associated
telecommunication works are being
executed through the contractor
SIEMENS AG, (Germany) .

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

This project is part of the Hetauda-
Biratnagar 132 kV transmission line 2nd
Circuit stringing project. With this line,
the power imported from India can be
utilized in an even wider area. Along
with increasing the flexibility of power
export/import when necessary, it serves
to transfer power generated in the west
including from Kali-Gandaki to the
central and eastern zones. It constitutes
of 174 km, 132 kV, 2nd circuit stringing
on existing transmission line towers from
Butwal to Bardaghat and from Hetauda
to Dhalkebar. NEA and HMG are funding
the project. The 2nd circuit works is
expected to cost NRs. 300 million.

In Hetauda-Dhalkebar section 131
km out of 138 km stringing works has
been completed, similarly 36 km Butwal-
Bardaghat section has been completed.
The associated 132 kV line bays

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necessary for the new circuit at Hetauda,
Dhalkebar, Butwal and Bardaghat are
also to be constructed soon.

Birgun। Corridor Reinforcement

Birgunj corridor comprising of Simra,
Parwanipur and Birgunj is one of the
major industrial areas in Nepal. The
corridor's power demand is presently
being supplied from Hetauda substation
through a 66 kV double circuit
transmission line. The overloaded 66 kV
system has resulted in a serious low-
voltage problem in the corridor. At the
same time, additional power demand
for new industries is putting increasing
pressure on the 66 kV system. To
eliminate the existing power supply
problems the proposed scheme' for
reinforcement of the corridor constitutes
the construction of the following :

a) 132 kV, double circuit trans-
mission fine from Pathlaiya to
Parwanipur.

b) 132/11 kV substation in
Parwanipur.

c) 132 kV switching station at
Pathlaiya.

d) 132/33 kV and 132/11 kV sub-
station in Chandranighapur.

The implementation of the project,
which was initially proposed for IDA
funding was held-up due to unavailability
of funds. In view of its urgency the works
covered by (a) and (b) above are to be
started with HMG/NEA funds. The
reinforcement is expected to cost NRs.
1000 million.

Thankot-Bhaktapur 132 kV Transmission
Line Project

In line with Transmission System
Master Plan (2002-2017) and NEA's
necessity to cope with the growing
demands to reduce excessive power
losses and taking into account the
reliability in power supply in Kathmandu
valley by completing the second half of

the 132 kV ring-main, the Thankot-
Bhaktapur 132 kV Transmission Line
Project is recommended to be implemen-
ted. On July 13, 2000 a loan agreement
between Asian Development Bank and
HMG/N was signed to implement the
project. The project is composed of the
following components:

i) Transmission Line: 26 km 132 kV
double circuit transmission line
with single circuit stringing.

Substations: Supply and installation
of high voltage substations in
Kathmandu valley comprising: (a)
New 132 kV Thankot switching
substation, (b) New 132/11 kV
Harisidhi substation and (c) Expan-
sion of Patan, Balaju, Bhaktapur
and Chabel substations.

—

As per the Environmental Protection
Act 1997 and Environmental Protection
Regulations, 1998 (with revisions), the
final Environmental Impact Assessment
report has been submitted to HMG/N for
approval. Also request letter seeking the
construction license has been submitted
to Department of Electricity Develop-
ment. Short listing of International
Consultants has been completed. The
project cost estimate including services
is US$ 14.96 million.

Banepa Panchkhal Substation Project

Two 66/11 kV substations at Banepa
and Panchkhal are being constructed
under this project. Construction of
Banepa substation with a 10/12.5 MVA,
66/11 kV transformer is in its final stage.
The power transformer is planned to
take distribution system load from
September 2001. Construction of feeder
lines from the substation has also taken
place. This substation will improve distri-
bution system voltage, reduce technical
losses, relieve Bhaktapur substation to
some extent and will create better
condition for system control.

Panchkhal substation is being
reconstructed to receive energy from
Indrawati hydropower plant. A 5 MVA

power transformer will be installed in
this substation to improve the 11 kV
distribution network of this area.
Construction of this substation started in
this FY 2000/01. Funded jointly by HMG/
N and NEA, the estimated project cost is
NRs. 160 million.

Indo-Nepal Power Exchange Enhance-
ment Project

The systematic power exchange
between India and Nepal began from
1992 after the first power exchange
committee meeting held in New Delhi,
India. Up to 50 MW of power is being
exchanged between the two countries
since the formation of this committee.

The requirement to enhance the level
of power exchange between Nepal and
India from the existing level of 50 MW to
150 MW has been discussed in the
various India-Nepal Power Exchange
Committee meetings. The following 132
kV transmission interconnections has
been mutually considered for enhancing
the level of exchange to 150 MW.

* Butwal (Nepal) - Anandanagar
(UP): 22 km in Nepal and 45 km
in UP.

१ Birgunj (Nepal - Motihari (Bihar):
14 Km in Nepal and 45 km in
Bihar

* Dhalkebar (Nepal) -Stitamarhi
(Bihar) : 43 km in Nepal and 40
km in Bihar.

Considering the excessive energy
available in the Nepalese system during
the wet season from its hydro based
power plants and power deficits during
winter/dry season, it is more practical to
export excess power to the Indian grid
during the wet season and import power
from the eastern grid of India during dry
season.

The construction of the Butwal-
Anandanagar interconnection in the
Nepalese territory up to the border has
been included in the forthcoming Rural
Electrification, Distribution System

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Reinforcement 006 Transmission Project
to be implemented with loan assistance
from the Asian Development Bank. The
financial sources for the remaining two
interconnections on the Nepalese side
up to the border has also been managed
with a target of completing them by the
FY 2003/04.

Butwal - Anandanagar 132 kV Inter-
connection : The transmission line of
this interconnection falling within
the territory of Nepal is undertaken
by the Butwal-Sunauli 132 kV T/L
Project. About 22 km of double
circuit line will be strung under this
project from Butwal substation to
Sunauli (Indo-Nepal border). This
interconnection is on the priority list
for construction, as this line would
be useful for exporting the excess
power to India after commissioning
of the Kaligandaki HEP (144 MW)
and the Middle Marsyangdi HEP (70
MW).

Detail engineering survey works has

implementation works will be
completed by FY 2001/02.

Dhalkebar-Sitamarhi 132 kV
Interconnection: The transmission line
of this interconnection falling within
the territory of Nepal is undertaken
by the Dhalkebar-Bhittamor 132 kV
T/L Project. About 43 km of single
circuit line will be strung under this
project from Dhalkebar substation to
Bhittamor (Indo-Nepal border).

Detail engineering survey works has
been carried out and the most
feasibility route alignment has been
fixed. The land owners along the
proposed line route have also been
identified. All the preparatory works
for project implementation works will
be completed by FY 2001/02.

Small Hydro Projects and Rural Electri-
fication

Following works have been carried

100 kW to 5000 kW, the Small
Hydropower Masterplan Project
(SHMP) was initiated in 1990.
Since then many SHPS have been
identified and inventory study,
feasibility and detailed engineering
design for different rivulets (khola)
have been carried out. Under this
plan the following works have been
completed in the FY 2000/01:

a) Inventory Study of Rok Khola
SHP in Solukhumbu district
(110 kW), Inwa Khola SHP in
Panchthar district (2700 kW),
Roshi Khola SHP in Kabhre-
palanchowk district (4800 kW)
and Charnawati Khola in
Dolakha district (1000 kW)

b) Detailed Engineering design of
Galwa Gad SHP (150 kW) in
Humla district

c) Post evaluation study of
Tatopani SHP (2000 kW) in
Myagdi district

out by Small Hydro Projects and Rural
Electrification Department during the
year in review.

been carried out and the most feasible
route alignment has been fixed. The

* 33 kV Transmission Line Projects:
Following 33 kV Transmission Line

land owners along the proposed line
route have also been identified. All
design works necessary for tendering
purpose are under progress and the
construction works will commence
during the FY 2001/02.

Birgunj-Motihari 132 kV Interconnection:
The transmission line of this inter-
connection falling within the territory
of Nepal is undertaken by the
Parwanipur-Birgunj 132 kV T/L
Project. About 14 km of single circuit
line will be strung under this project
from the proposed Parwanipur
substation to Raxaul (Indo-Nepal
border).

Detail engineering survey works has
been carried out and the most feasible
route alignment has been fixed. The
land owners along the proposed line
route have also been identified. All
the preparatory works for project

* Heldung Small Hydropower Project
(400 kW) The tender for engineering
procurement and construction
(EPC) on turnkey basis have been
floated and finalized. The project
is estimated to cost nearly Rs. 114
million and the work is expected
to start from the FY 2001/02 and
shall be completed in FY 2004/05.

न Gamgad Small Hydropower Project
(500 kW): The tender for EPC on
turnkey basis for this project has
also been finalized. The project is
estimated to cost nearly Rs. 143.4
million and the work is expected
to start from the FY 2001/02 and
shall be completed in FY 2004/05.

न Small Hydropower Master Plan Project:
To assess the potential of small
hydropower projects ranging from

Projects under this department
have been completed and are
under construction:

Sindhuwa-Khandbari 33 kV transmission
line Project: This 47 km long project
with 20 km of distribution line of 11/
0.4 kV, had been started from FY
1997/98 and was completed this FY
2000/01 at a total cost of nearly Rs.
50.7 million. This line connects
Sankhuwasabha with the central grid
at Dhankuta. Under this project one
substation of 33/11 kV 1.5 MVA is
under construction at Piluwa,
Mamling VDC of Sankhuwasabha
district.

Basantapur-Terhathum 33 kV Trans-
mission Line Project: This 13 km long
project started in FY 1999/00 and
was completed in FY 2000/01 at a
total cost of Rs. 8.5 million. This line

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is aimed to connect the Terhathum
district with the Central Grid.

Buipa-Okhaldhunga 33 kV Transmission
Lines Project: This 33 km long project
started in FY 1999/00 and is expected
to be completed in FY 2003/04. The
aim of this project is to connect
Okhaldhunga district with the Central
grid at Khotang district. Under this
project two substations; one at Buipa,
Khotang and the second one at
Okhaldhunga shall be constructed.

Sitalpati-Musikot 33 kV Transmission Line
Project: This 50 km long project
started in FY 2000/01 and is expected
to be completed by FY 2005/06.
Under this project 2 substations, one
at Sitalpati, Salyan and the other at
Musikot, Rukum will be constructed.
The aim of this project is to connect
Rukum district with the Central grid
from Salyan district.

Chhinchu-Rakam-Jajarkot 33 kV
Transmission Line Project: This 70 km
long project started in FY 2000/01
and is expected to be completed by
FY 2005/06. Under this project one
substations at Jajarkot is to be
constructed. The main aim of this
project is to connect Jajarkot district
with the Central grid at Surkhet
district.

llam-Phidim-Taplejung 33 kV transmission
line Project: This 90 km long project
started in FY 1999/00 and is expected
to be completed by FY 2004/05 with
two substations, one at Phidim,
Panchthar and the other at Taplejung.
The main aim of this project is to
connect Panchthar and Taplejung
with the Central grid at Ilam district.

Kailali-Kanchanpur Rural Electrification
Project

As per the agreement signed between
DANIDA and HMG/N in February, 2000,
implementation of the Kailali-Kanchan-

pur Rural Electrification Project has
reached the stage of "Review of Detail
Engineering Design."

The works under the project includes
construction of three new 33/11 kV sub-
stations, rehabilitation of two existing
substations, construction of 600 km 11
kV overhead line and construction of
300 km 400/230 volt distribution line.

Once the project is completed, it will
electrify 29 VDCs and 271 load centers
providing electricity to 16,000 new
consumers and will be managed by
Independent User's Cooperative Group.
The project period is for three and a half
years.

Profit Center

NEA Distribution and Consumers
Services has about 56 offices all over the
country in order to provide quality service
to its consumers and to take proper care
of power distribution, operation and
maintenance of the system. Inthe present
context of the need for making these
offices service-oriented and to operate
NEA on a commercial basis to make it
self-sustainable, 6 distribution centers
(One from each DCS Regional office) are
being operated as profit centers since the
FY 2000/2001. NEA is considering to
introduce the concept of profit centers to
9 other offices from the FY 2001/2002.

The objectives of the profit centers
are: to check and control the losses, to
increase the revenue and cash-flow, to
minimize operation and maintenance
expenses of offices, to further increase
the efforts made so far in order to provide
quality and reliable power supply
services to its consumers, to reduce self-

consumption of electricity in NEA offices,
and to increase the level of services now
being provided to NEA's consumers.
The NEA profit centers are given below
showing percentage of total revenue,
percentage of total consumers and the
losses in each of the centers.

District Distribution Profit Centers
Project, a component of Rural Electrifi-
cation and Distribution System Reinforce-
ment Project funded by ADB is under
implementation. The main activities of
this project are to plan, design and
implement programs to operate the
distribution offices on the concept of
profit centres. International consultants
willbe engaged to undertake this project.

The 9 distribution branches to be
included in the Profit Centre in FY 2001/
02. are Kathmandu East, Kathmandu
West, Bhaktapur, Hetauda, Bharatpur,
Janakpur, Dharan, Butwal and
Bhairahawa.

Rural Electrification and Distribution
System Reinforcement Project (REDSRP)

Rural Electrification and Distribution
System Reinforcement Project (REDSRP),
Jointly funded by ADB, HMG/N and
NEA, will be implemented to extend
electrification to rural areas and also to
reinforce existing distribution system of
NEA. The total cost is estimated to be
US$ 35 million. The project has three
major components. The Rural

Electrification component covers 25
schemes of 22 districts of Eastern, Central
and Western regions under which 240
VDCs are intended to be electrified. This
includes construction of 18 km of 33 kV
line, 1154 km of 11 kV line, 1663 km of

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LV fine, 694 distribution transformers
and 9 new 33/11 kV area substations
(28.5 MVA). The Distribution System
Reinforcement Component covers
addition, upgradation and rehabilitation
of 173 km of 33 kV line, 998 km of 11 kV
line, 545 km of LV line, 481 distribution
transformers and 20 numbers of 33/11
kV area substations (57.5 MVA). The
Distribution Systems for Isolated Power
Project component covers procurement
of identified sub projects by the regional
distribution offices. The project aims to
provide new connections to at least
154,294 consumers within its planned
period.

Computerized Billing Project (Phase 1)

Out of the 56 distribution and
consumer service (DCS) branches and
63 sub-branches of NEA conducting
manual billing and revenue collection
activities, 15 branches located within
and outside the Kathmandu Valley have
been designated as Profit Centers. As a
component of the Rural Electrification,
Distribution and Transmission Project
being financed by the Asian
Development Bank the Computerized
Billing Project will computerize the
billing and revenue accounting system
of these 15 larger DCS branch offices
giving priority to these Profit Centers.
The Bank has allocated a total of US$
1.875 million (foreign component cost
of US$ 1.25 million and local component
cost of US$ 0.625 million) for this project.

Short-listing of consultants for the
project is complete and dispatch of
requests for proposals from these
consultants awaits the effectiveness of
the Bank's financial assistance. Updating
of customer database is in progress.

Loss Reduction Project

Financed by ADB as acomponent of
the loan to the Kaligandaki-A HEP, the
Loss Reduction Projectafter it's initiation
in FY 1995/96 has just completed its

activities in the FY 2000/2001. The main
objectives of this project were to design
and implement a program to reduce the
non-technical losses of NEA. The
Consulting services for this project was
conducted by the International consultant
NRECA International Ltd. USA. The final
report of the consulting services was
submitted by the consultant and it was
reviewed by NEA management. Procure-
ment of materials and equipments like
electronic meter (1200), ABC Cable (150
km), ACSR conductor for street lighting
(500 km), CT/PT metering unit (75 sets),
and photo voltaic switch (700), LT CT
(1100 sets) have beendone. The software
for distribution planning and loss analysis
have been installed and are in use.

Training Center Establishment Project

The Training Center Establishment
Project was started in the year 1997 and
has been completed during the FY 2000/
01. All the construction works in the
project have been carried out as per the
master plan for developing NEA's own
training institution with sufficient infra-
structure facilities for conducting need-
based training to its technical and non-
technical employees. Under the project
separate academic hail, administrative
hall, cafeteria, hostels, staff quarters,
water treatment plant and guard houses
have been constructed. The academic
building includes 22 classrooms, 2 large
classrooms, 2 seminar halls, 2 computer
rooms, 2 technical drawing rooms, 4
instructors' rooms, 6 syndicate rooms, 5
workshops, 4 electrical laboratories and
3 stores. The cafeteria and hostels have
capacity of catering to 105 persons.
During the FY 2000/01 construction of
amphitheater, guard posts, grill works
on academic building and quarters and
stone protection walls were carried out.
Tree plantations of 660 different species
were done around the boundary wall
periphery and on both sides of the internal
roads of the center.

Licensing and Tax Implication
for Existing NEA System

(resume )

A. For Small Hydropower
Projects 1000 kW or less

¢ no license required
¢ no royalty

* no corporate income tax

. For Hydropower Plants
greater than 1000 kW

० LICENSE

issued by MOWR March 20,
1995

license period 50 years
¢ ROYALTY
for first 15 years :

NRs 100/ kW installed
Capacity/annum

2% of energy sales

after first 15 years :

NRs 1000/kW installed
Capacity/annum

10% of energy sales

CORPORATE INCOME TAX

15 year tax holiday
thereon 10% less than
normally levied

IMPORT FACILITIES

(equipment, machinery,
tools and spares)

1% customs duty on items
not manufactured in Nepal;

import license fee and sales
tax exempted

effective from the date of
commercial operation

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PROJECT STUDIES

Upper Tamakoshi (Rolwaling) HEP

The 250 MW Upper Tamakoshi HEP is a
peaking run-of-river scheme located on the
Tamakoshi River in Dolakhadistrict. The dam site
of the project is located at Lamabagar village
which is about 100 km east of Kathmandu, 8 km
south of China border and 30 km north of the
district headquarters Charikot.

On 15th March, 2001 NEA received the
license to conduct the feasibility study of the
project which is to be carried out in two phases.
The feasibility study (Phase-l) of the project was
completed in July, 2001.

According to the feasibility study of the project,
the proposed headworks site lies on the river
valley situated at an elevation of 1970 m.a.s.I. in
the Lamabagar village, Dolakha district. The
catchment area of the project is 1587 sq. km of
which 1261 sq. km lies in Tibet (China). The crest
of ogee shaped weir is 80 m long and 13 m above
the foundation level. The proposed desanding
basin is on the right bank of the river and is a
double bay Dufour type each of which are 14 m

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wide and 146 m long designed to settle particles
larger than 0.2 mm.

The regulating pond is designed for a storage
capacity of 0.35 million m3 for peaking power
supply of minimum 5 hours a day during lowest
flow period of the year. The headrace tunnel is
about 6288 m long with a finished diameter of 5.0
m for a design discharge of 39.35 m3/s. Atthe end
of the headrace tunnel an orifice type surge tank
of 12 m diameter and 42 m height has been
designed. After the surge tank water will flow
through an inclined 1331 m long penstock. The
underground powerhouse is equipped with four
units each capable of generating 62.5 MW of
electrical power. After power generation the water
will flow to Tamakoshi river via a 1450 m long
tailrace tunnel. The generated power will be
trans-mitted to the national grid to Dhalkebar
substation by adouble circuit 220 kV transmission
line.

This peaking run-of-river scheme with a net
head of 753 m and design discharge of 39.35
m3/s will generate 1573 GWh energy annually.
The total project cost is estimated to be US$ 268

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million which includes 100 km, double
circuit 220 kV transmission line and 70
km access road. The economic and
financial analysis shows that the benefit
cost ratio is 2.96 and the IRR is 26.49 %.

As the project is located in a remote
area and it is a peaking run-of-river
scheme, the environmental impacts of
the project will be minimal and no
environmental damage is expected. Plans
are to complete the feasibility study
Phase-I and detail design of the access
road in the year 2002. Provided that the
construction of the access road could
startin year 2003 and the construction of
the main civil works could start in year
2005 then, the project could generate
power by the end of year 2008.

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Upper Karnali HEP

The feasibility study of the Upper
Karnali HEP was completed by NEA/
CIWEC in June 1998. The Project is one
of the most attractive run-of-river
diversion schemes studied so far, with a
daily peaking capacity and high firm
energy.

The project is located on the Karnali
river bend forming the boundary of the
Mid Western and Far Western

development regions. The project site is
approximately 90 km from Birendranagar
the regional headquarters of Surkhet
district. An all weather road from
Birendranagar to Jumla is under construc-
tion and will pass immediately by the
headworks of the project. All the project
facilities such as headworks, tunnel and
powerhouse will be located in the districts
Surkhet, Dailekh and Achham.

The Upper Karnali Project is propo-
sed upstream of the Karnali Chisapani
Project in the Karnali river and the catch-
ment area at the project intake site is
20,120 sq. km. The mean annual flow
estimated at the headwork is 500 m3/s.
The installed capacity of the project is
300 MW having an average annual
energy of 1915 GWh with a firm energy
of 1568 GWh.

An Memorandum of Understanding
(MOU) was signed between HMG/N,
Ministry of Water Resources and Delta
Pacific Consortium Pte. Ltd. Singapore
for the development of Upper Karnali
Hydroelectric Project on August, 2000.
Later HMG/N decided to change the
responsibility of Delta Pacific Consortium
to Elysee Frontiere Company and form
a joint venture company VCO) with
NEA as per the MOU signed between

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HMG/N and Delta Pacific Consortium
on October 3, 2000. A joint venture
company JVCO "Elysee NEA Upper
Karnali Hydroelectric Power Limited
(ENUKHPL)" was formed on January 8,
2001 for the development of the project.
In this regard the survey license possessed
by NEA was transferred in the name of
the joint venture company (ENUKHPL)
on March 15, 2001 with the condition
that the update feasibility and PPA for
the project be completed before applying
for the generation license within 6 months
from the issuance of the survey license.
An MOU was signed between Ministry
of Water Resources and JVCO
(ENUKHPL) for the appointment of an
international consultant to update the
feasibility study and carry out any
additional studies (detail design) for the
construction of the project on May 11,
2001. The JVCO (ENUKHPL) signed an
MOU with the international consultant
CIWEC, Canada for the feasibility study
of the project on May 15, 2001. The
preliminary work for the update feasibility
study of the project has already been
started by the consultant CIWEC
immediately after signing the MOU with
the JVCO (ENUKHPL).

Kankai Storage HEP

Kankai Storage Hydroelectric Project
is located in the south-eastern part of
Nepal in the district of Ilam. The feasibility
study of the project was carried out by
the consultant M/S Salzgitter Consult
GMBH under the technical assistance
from GTZ, Germany in the year 1978. As
per the feasibility study, the capacity of
the project was fixed as 38 MW. Further
feasibility study in the year 1985 by EdF
of France revealed that the installed
capacity may be upgraded up to 60 MW.

The Project is areservoir type hydro-
power project with a catchment area of
1190 km2 having an installed capacity
of 60 MW and a total average annual
energy generation of about 200 GWh.

In view of the present requirement
for the peak power demand in the

Integrated Nepal Power System, Civil
Design Department of NEA is going to
review and upgrade the feasibility study
of Kankai Storage Hydroelectric Project
in FY 2001/02.

Kulekhani-ll HEP

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

Kulekhani-Ill HEP primarily utilizes
the tail water from Kulekhani-Il (13.3
m3/s). A discharge of 1.5 m3/s from
Khani khola shall be added to it. With
the help of a 3.4 km long connecting
tunnel a total discharge of 14.8 m3/s
shall be conveyed to Yangrang Khola
reservoir. In addition, Yangrang Khola
river discharge (0.5 m3/s) shall be added
to it. A 45 m high regulating dam across
Yangrang Khola will be constructed to

create aregulating reservoir of about 0.5
million m3. This water shall be taken to
an underground powerhouse through a
350 m long headrace tunnel of 4.5 m
diameter to generate 42 MW of power
for 4 hours peaking. The water shall be
discharged into the Rapti Khola through
a2.10 km longtailrace tunnel of diameter
4.5 m. The annual energy generation of
this project shall be 50 GWh.

For the investigation purpose various
works have been completed at the
expense of His Majesty's Government
and NEA. These works include core
drilling and seismic refraction survey at
tailrace site, topographic survey of the
whole project area and test adit (420 m)
at different locations. The Environment
Impact Assessment (EIA) study of the
project has been completed and has
been forwarded for approval. For the
geological investigation of the under-
ground powerhouse, the construction of
the test adit is going on and about 300 m
(out of 500 m) long test adit has already

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been completed. The geological investi-
gations of the remaining portion of the
test adit and four of the test chambers of
the powerhouse and drop shaft locations,
will be completed by the end of
November 2001. The EIA study of the
transmission line will be carried out in
this year.

The estimated cost of the project is
about US$ 53.0 million. A Minute of
Meeting between NEA and the prepara-
tory team of Japan International Coopera-
tion Agency (JICA) was signed for the
upgraded feasibility study of the
Kulekhani Ill Hydroelectric Project on
May 17, 2001 at the NEA Head Office,
Kathmandu. According to that Minute of
Meeting, the upgrading feasibility study
of the project will commence in
November 2001 and be completed by
the end of December, 2002 under the
financial and technical grant aid of JICA.

Seti Storage Project

This project located in Tanahu district
was identified as one of the promising
schemes in the fine screening phase of
storage project study. NEA is conducting
feasibility study of this scheme which
would have an installed capacity between
107 and 137 MW. A roller compacted
concrete dam has been proposed in the
gorge section of Seti river about 3 km
upstream of Damauli. The dam height
will be approximately 135 m. The project
has been optimized for 6 hour daily
peaking operation during dry months.
Sediment flushing outlets will be
provided in the lower level of the dam
in-order to effectively utilize the storage
volume. Sloping intake has been
envisaged for the offtake of design
discharge. The underground power-
house and transformer gallery are located
just downstream of the dam site on the
right bank. An alternative project layout
with 1.8 km long headrace tunnel and
shaft type powerhouse has also been
studied. But underground powerhouse
layout near the dam has been identified

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to be economically more attractive thah
the shaft powerhouse alternative. This
project will require only about 4 km of
access road and can be commissioned in
six years. Specific energy cost of the
project is about 3.5 cents/kWh.

Madi Ishaneshwor Storage Project

NEA is currently undertaking the first
phase of the feasibility study of this project
which comprises of field investigations
and alternative studies. Madi storage
projectis located in Lamjung district and
the dam site is just below the confluence
of Madi and Seti rivers. The scheme
would have an installed capacity of 96
MW in toe powerhouse option or 106
MW in the tunnel option. A roller
compacted concrete dam has been
identified as an alternative to rockfill
dam proposed in the earlier study. The
dam site is located about 20 km north of
Damauli. An access road of only 3 km
would be required from the nearest
roadhead at Bhorletar. The design
discharge based on 6 hour daily peaking
during winter is 145 cumecs. ॥ order to
effectively utilize the storage volume of
the reservoir, sediment flushing outlets
will be provided in the dam itself. The
toe powerhouse alternative will have a
waterways length of about 300 m and
powerhouse will be near to the toe of
dam on the left bank. The alternative
project layout will have a 1.8 km long
headrace tunnel and 280 m long penstock
tunnel. Gross head for the two alterna-
tives are 131.5 mand 144 mrespectively.
Annual energy generation is estimated
at 409 and 453 GWhrespectively for the
two alternatives. Plant capacity optimiza-
tion and feasibility level design will be
carried out in FY 2001/02.

Naumure Storage Project

A pre-feasibility study of this storage
project located in Pyuthan district was
carried out in 1990. NEA has recently
made areview study of this project which

will have a 169 m high rockfill dam. The
reservoir will havea gross storage volume
of about 810 million m3 out of which
live storage will be 351 million m3. The
powerhouse will have an installed
capacity of 207 MW and annual energy
generation is estimated to be 844 GWh.
Apart from the underground powerhouse
envisaged earlier in the pre-feasibility
study, a shaft powerhouse alternative
has also been identified in the review
study. An access road of 18 km would be
required and the 220 kV transmission
line up to Bharatpur will have a length of
220 km. Total project cost is estimated at
US$ 324 million. It is also possible to
have re-regulation of the flow from this
storage project that could be utilized for
additional power generation and provide
irrigation in the downstream areas.

A modest sized peaking run of river
development is also possible as an
alternative to this storage scheme. The
headworks in that case would be about
4km north west of the proposed dam site
which would provide with a natural
head of about 40 m. Installed capacity of
such a scheme would be approximately
25 MW.

Reconnaissance of Hewa Khola HEP

Hewa Khola HEP with an installed
capacity of 21 MW was recommended
for further preliminary investigations.
After the completion of the preliminary
study of this project, the capacity of the
Hewa HEP was fixed at 13 MW with a
gross head of 215 m. and discharge of
7.2 m3/s at 45% dependable flow and
2.1 m3/s at 95% dependable flow. The
intake site is proposed near Tunupa
village of the Bharapa VDC of Panchthar
district. The powerhouse site is proposed
on the right bank of the Hewa Khola near
Raigaun village. A 3,500 m long headrace
tunnel along with 300 m long penstock
feeds the water into two turbines of
capacity 6.5 MW each. This scheme
utilizing a gross head of 215 m, produces
an average annual energy of 68.2 GWh

with firm energy of 27 GWh. An 8 km
long 132 kV transmission line is required
in order to evacuate the power to Kabeli-
A HEP (30 MW). The total project cost is
estimated at US$ 25.64 million.

Economic internal rate of return of
the project is 15% and the benefit cost
ratio is 1.54. The project site will be
accessible by the existing Phidim-
Taplejung (Mechi Highway) road. The
length of access road to project site is
about 7 km.

Hewa Khola has a series of potential
sites for cascade hydropower develop-
ment.

Distribution Network Development
Project

The project has completed the
techno-feasibility study for Rural
Electrification and Distribution System
Reinforcement (RE/DSR) schemes of 19
districts of Far Western, Mid Western,
Western and Central Regions of Nepal
under HMG/ NEA financing. The total
cost estimate for the implementation of
RE/DSR schemes of all the following
districts is US$ 136 million (1998 cost).
These districts are Darchula, Baitadi,
Dadeldhura, Doti, Achham, Dailekh,
Surkhet, Bardia, Banke, Salyan, Rolpa,
Dang and Pyuthan from the Far and Mid
Western Regions, Baglung, Parbat and
Syanja from the Western Region and
Lalitpur, Bhaktapur and Kavrepalan-
chowk from the Central Region. More
in-depth studies are necessary before
implementing the schemes. The project
has thus initiated the detail engineering
design of Lalitpur, Bhaktapur and
Kavrepalanchowk districts and Initial
Environmental Examination (IEE) of
Lalitpur and Kavrepalanchowk districts
with funding from HMG and NEA. The
World Bank is requested for financing
the RE/DSR scheme implementation of
Lalitpur, Bhaktapur Nuwakot and
Kavrepalanchowk districts. NEA now
possesses the Techno-Feasibility Study
Report for RE/DSR of 47 different districts.

IN REVIEW

HIGHLIGHTS OF 2000/01

Total Revenue Net (M. NRs)

Net Sale of Electricity (M. NRs)

Income from Other Services (M. NRs)
Operating Expenses,

Including Depreciation (M. NRs)
Depreciation (M. NRs) + +

Net Income, after interest befor tax (M. NRs)
Interest on Long-Terms Loans (M. NRs)
Long-Term Loans (M. NRs)

Net Fixed Assets (M. NRs)

Number of Customers

Total Sales Of Electricity (GWh)

Internal Sale (GWh)

Average Consumer's Consumption (KWh) +
Average Price Of Electricity (NRs/KWh)+

Peak Load Interconnected System (MW)

Total Available Electric Energy (GWh)

Hydro Generation (GWh)

Purchased Energy (GWh) India
Nepal

Exported Energy (GWh)

Thermal Generation (GWh)

Internal consumption (Gwh)

Net System Losses (Percentage)

Note:

Increase/Decrease
Description Amount Percent

8901.2
8339.8
561.4

7212.4
6856.0
356.4

1688.8
1483.8
205.0

8255.3
1998.9
409.2
1306.7
37255.7
39075.8

5925.0
1878.9
756.5"
1244.3
30155.7
35195.7

2330.3
120.0
(-)347.3
62.4
7100.0
3880.1

765,397
1407.127
1281.127
1673.81
6.28

673,979
1269.274
1174.274
1742.31
5.70

91418
137.853
106.853
(-)68.5
0.58

391.0
1868.42
1113.36
226.54
501.38
126.00

351.9
1701.45
1233.22
232.20
169.30
95.00

39.1
166.97
(-)119.86
(-)5.66
332.08
31.00

11.11
9.81
(-)9.72
(-)2.44
196.15
32.63

27.14 66.73 (-)39.59 (-)59.33
20.37 25.52 (-)5.15 (-)20.18
23.60 23.90 (-}0.30 (-)1.26

* Provisional figures; subject to final audit.

+ Internal
++ Onrevalued assets

EQUITY AND LIABILITIES
Equity

Share Capital

Share Allotment Suspense
Capital Reserve

Reserves & Surplus
Revaluation Surplus
Insurance Fund

Total Equity

Long-Term Liabilities
Long-Term Loan
Total Long-Term Liabilities

Current Liabilities & Provisions
Deposit from Customers

Other Deposit

Creditors for Goods

Other Creditors

Payable to Others for power purchase 1363.5

Payable to HMG for Interest (Other)
Payable to HMG for Other (int)
Royalty Payable

Provision for Bonus

Provision for Gratuity & Pension

Provision for Medical Facilities
Provision for Accumulated Leave
Provision for Wealth Tax

Provision for Income Tax

Total Current Liabilities & Provisions
Inter Unit Balance (Net)

TOTAL LIABILITIES AND EQUITY

BALANCE SHEET AS OF JULY 15

in million NRs

2000 1999 1998 1997 1996 1995 1994 1993 1992

1000.0
13634.0

1000.0
12365.8
170.7 158.8
1230.7 = 1065.5

1000.0
11324.3

1000.0
9952.6

158.8 1588 158.6
1200.0 1046.5 359.0

1000.0
8231.6

1000.0
7122.9

1000.0
5796.7

1000.0 1000.0
5190.6 3956.8
147.9 137.6 120.9 88.3
(319.5) (346.0) (444.6) (550.8)
10108.2 10656.0 11965.6 13421.4 14799.3 14286.1 14238.3 13988.0 13421.7
180.0 160.0 140.0 120.00 100.0 80.0 0 0 0
26323.6 25406.1 25788.8 25699.3 24648.5 22317.4 20826.6 19854.9 17916.0

30155.7 23824.3 20848.4 17403.2 14900.4 13367.2 12880.6 11649.5 10070.4
30155.7 23824.3 20848.4 17403.2 14900.4 13367.2 12880.6 11649.5 10070.4

107.0
1057.7
116.1
186.8

76.6
784.8
9.4
266.1
707.9
777.5
975.1
752.1
40.9
140.3
20.7
13.4

59.5
677.5
49.3
201.6
377.6
877.1
914.4
398.7
39.4
140.3
20.7
13.4
28.5
207.0
4005.0

76.8
407.7
32.4
429.1
4.3
647.6
440.4
473.8
38.1
140.3
20.7
13.4
22.5
178.1
2925.2

61.6
359.3
15.7
26.1
6.6
319.0
102
585.0
31.5
140.3
20.7
13.4
17.5
104.8
1803.7

90.5
235.0
28.9
22.6
8.3

36.0
183.2
5.9
31.1
11.6
407.8 270.0 224.5
263.2 648.8 171.8
358.0 - - -
16.6 11.9 6.4 2.4
140.3 140.3 140.3 140.3
20.7 20.7 20.7 20.7
13.4 13.4 13.4 13.4
14.5 11.5 8.5 2.5
34.4 34.5 7.2 7.2
1654.2 1416.9 752.3 427.5
34.9 52.7 71.7
50642.2 46027.7 41352.5 37338.8 35124.1 32291.6 28466.6

42.4
84.5
11.2
16.8
4.6
481.2
935.9
640.3
30.6
276.4
20.7
13.4
647.6
5477.2

221.5
4786.3

61956.5

54016.7

BALANCE SHEET AS OF JULY 15

ASSETS

Fixed assets

Land

Buildings

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

Distribution Line

Meter & Metering Equipment
Consumer Service

Public Lighting

Tools and Instrument
Vehicles

Furniture & Office Equipment
Miscellaneous

Total Fixed Assets

2000

860.8
1257.9
16668.7
1430.5
31.9
3808.3
3393.8
7362.5
92.2
19.3
32.1
37.0
108.0
91.2

1.5
35195.7

1995

[त YEAR

IN। REVIEW

—=।=।=
Ma3lAia NI

ze VIAYV

in million NRs

1993

611.4
601.3

a
1

1992

578.9
973.7

15490.0 15171.2

752.0
41.9
1815.0
2414.2
2244.0
59.7
50.3
15.0
5.2
10.8
14.8
0.2

175.6
43.3
1825.8
2436.4
2226.5
56.3
52.7
15.5
5.4

8.9
13.9
0.3

24126.2 23184.6

Other Assets
Capital Works in Progress
Investment in Securities

Total Other Assets

Deferred Expenditure
Inter Unit Balance (Net)

Current Assets
Inventories

Accounts Receivable
Advances Recoverable
Cash & Bank

Total Current Assets

TOTAL ASSETS

18947.1
521.1
19468.2

1302.8
228.7

982.3
1525.5
1932.0
1321.3
5761.1

1999 1998
768.1 727.0
932.4 885.5
16439.9 16619.5
1524.4 594.1
33.3 34.7
2713.2 2656.0
2914.6 2432.9
5555.9 5630.6
83.3 89.4
20.5 25.6
22.6 18.1
38.4 20.2
93.0 80.5
81.9 76.0
1.3 1.2
31222.8 29891.3
16542.7 14179.0
326.1 247.7
16868.8 14426.7
615.0 443.3
256.9 188.7
740.0 914.9
1530.9 1435.4
1634.2 1709.6
1148.1 1632.3
5053.2

1997 1996
696.1 706.0
789.7 798.8
16180.3 16174.1
651.0 708.0
36.2 37.6
2837.9 3057.3
2651.5 2901.0
4535.0 4750.1
85.8 100.3
31.2 37.0
17.5 16.3
17.0 13.3
95.8 92.4
46.3 43.4
2.1 3.0
28633.4 29438.3
11974.6 7362.7
150.6 54.0
12125.2 7416.7
267.3 410.8
133.2 335.7
804.0 617.9
1209.1 1,040.0
1329.0 848.4
1526.5 1244.7

994

665.3 636.4
755.1 646.4
15951.7 15802.5
716.9 737.2
39.0 40.5
3024.9 2704.6
2959.5 3038.4
3983.4 3042.6
112.5 97.4
42.8 48.4
16.3 14.4
12.4 7.6
85.4 37.9
46.4 39.8
2.0 0.4
-28413.6 26894.5
5229.1 5439.3
30.5 356.7
5259.6 5796.0
588.5 98.6
144.5 143.7
429.1 340.4
682.6 569.9
471.7 149.8
1349.2 1131.2

5692.2 4868.6 3751.0 2932.6 2191.3

6250.1
79.0
6329.1

108.6

289.5
474.8
145.8
817.6

3816.4
30.4

3846.8

121.0

270.4
5 76 0
113.8
354.0

1727.7 1314.2

61956.5 54016.7 50642.2 46027.7 41352.5 37338.8 35124.1 32291.6 28466.6

z
a
[- 4
Zz

PROFIT & LOSS FOR THE YEAR ENDED JULY 15

Particulars 2001*
A. Revenue
Net Sale of Electricity
Income from Other Services 290.0
Interest & Other Income 271.4

2000

188.8
167.6

1999

180.6
205.3

1998

157.6
192.6

1997

135.0
181.3

1996

111.2
172.0

1995

99.9
145.1

in million NRs

1994 1993 1992

8339.8 6856.0 5396.8 5082.5 4767.3 3728.9 3218.5 2437.4 1786.8 1440.4

13.8 8.6 5.6
160.5 109.0 68.2

Total-A 8901.2 7212.4 5782.7 5432.7 5083.6 4012.1 3463.5 2611.7 1904.4 1514.2

B. Operation & Maintenance Expenditure

Operation & Maintenance 2047.4
& General Expenses

Power Purchase 3348.9
Provision for Expenses 35.9
Bad debts written off
Royalty 574.2
Depreciation 1998.9
Deferred Expenditure Written off 250.0
Total-B 8255.3
C. Net Operating
Surplus (Deficit) (A-B)
Loss of Capital Assets -

1752.0 1724.7 1554.5 1049.4

1151.3 867.0 845.6 659.5

177.2

164.0

105.5

80.5

524.8 423.4 348.9 268.8
1878.9 1995.5 1541.4 1482.2

440.8

236.8

270.1

188.7

5925.0 5138.5 4666.0 3729.1

645.9 1287.4 644.2

766.7

1354.5

Interest on Long-Term Loans (1306.7) (1244.3) (1141.3) (1317.2) (1207.5)

Profit and (Loss) before Prior Year's (660.8)
income & Expenses Adjustment

Prior year Income / (50.0)
Expenses Adjustment

Profit & (Loss) after (710.8)
Prior Year Adjustment

Transfer from 1120.0
Revaluation Surplus

Excess Provision Corporate Tax
written back (1993-94)

Net Profit (Loss) Before Tax 409.2
Interest Tax न

Corporate Tax 100.0

43.1

(216.7)

(173.6)

930.1

756.5

571.4

(562.3)

(79.3)

(428.7)

1019.1

589.9
3.5
260.0

(550.5)

(91.7)

(642.2)

844.7

202.5
5.0
23.8

147.0

(176.6)

(29.6)

883.3

853.7
5.0
141.3

942.0

359.6
45.9
227.0
1455.3
204.4
3234.2

777.9

(813.5)
(35.5)

(99.0)

(134.5)

907.5

773.0
7.7
66.7

838.3

340.0
7.7
186.8
1296.0
162.0
2830.8

632.7
35.8
(797.0)
(164.2)

(397.0)

(561.4)

671.6

10.4

120.7
3.9
10.4

499.3

411.3
8.7

1202.4 1026.0 953.6
66.5 53.6 45.1
2188.6 1853.5 1618.0

423.1 50.9 (103.8)

(716.6) (625.5) (632.2)
(329.3) (574.6) (736.0)

(411.7) (48.8) 75.6

(741.0) (623.4) (660.4)

869.2 729.6 610.0

128.2 106.2 (50.4)
2.4
27.2

Transfer to Insurance Fund 20.0
Net Profit/(Loss) after Appropriation 289.2

* Provisional Figures; subject to final audit.

185.1
20.0
165.1

356.0
20.0
336.0

173.7
20.0

707.4
20.0

698.6
20.0

153.7 687.4 678.6

106.4
80.0
26.4

98.6 106.2 (50.4)

98.6 106.2 (50.4)

TARIFF RATES

(Effective from the Billing of September 17, 2001)

: DOMESTIC CONSUMERS

A Minimum Monthly Charge: Minimum Charge

Exempt
(KWh)

20
100

200
400

(Rs/unit)

5.45
6.60
5.90
5.80
4.60

7.70
7.60
7.40

8.25

METER CAPACITY (NRs.)
Upto 5 ampere 80.00
15 ampere 299.00
30 ampere 664.00
60 ampere 1394.00
Three phase supply 3244.00
6 Energy charge:
Upto 20 units Rs. 4.00 per unit
21-250 units Rs. 7.30 per unit
Over 250 units Rs. 9.90 per unit
TEMPLES
Energy charge Rs.5.10 per unit
STREET LIGHTS
A_ With Meter Rs.5.10 एश unit
B Without meter Rs. 1860.00 per kVA
TEMPORARY SUPPLY
Energy Charge Rs. 13.50 per unit
COMMUNITY WHOLESALE CONSUMER
Energy Charge Rs. 3.50 per unit
INDUSTRIAL
Monthly Demand Charge Energy Charge
(Rs/kKVA)
A_ Low Voltage (400/230 volt)
a) Rural and Cottage 45.00
b) Small Industry 90.00
B Medium voltage (11kV) 190.00
C Medium voltage (33kV) 190.00
D High voltage (66 kV and above) 175.00
COMMERCIAL
A. Low voltage (400/230 volt) 225.00
B. Medium voltage (11 kV) 216.00
C. Medium voltage (33 kV) 216.00
NON-COMMERCIAL
A. Low voltage (400/230 volt) 160.00
B. Medium voltage (11 kV) 180.00
C. Medium voltage (33 kV) 180.00

7.80

A YEAR

9: IRRIGATION
A. Low voltage (400/230 volt)
B. Medium voltage (11 kV)
C. Medium voltaghe ( 33 kV)
10 : WATER SUPPLY

A. Low voltage (400/230 volt)

B. Medium voltage (11 kV)

C. Medium voltage (33 kV)
11 : TRANSPORT

A. Medium voltage (11 kV) 180.00
B. Medium voltage (33 kV) 180.00

TIME OF DAY (TOD) TARIFF RATES

Consumer Category Monthly Demand ___Energy charge (Rs/unit)

@ (RSKV. Peak Time Off-Peak Normal
& Supply level Charge RSKVA)—15.00-73.00 23.00.00 6.00-18.00

A. High voltage (66 kV & above)

1. Industrial 175.00 5.20 3.15 4.55
B. Medium voltage (33 kV)

1. Industrial 190.00 6.55

2. Commercial 216.00 8.50

3. Non-Commercial 180.00 8.85

4. Irrigation 47.00 3.85

5. Water Supply 150.00 4.55

6. Transport 180.00 4.70

7. Street Light 52.00 5.70

Medium volatage (11kV)
1. Industrial

2. Commercial

3. Non-Commercial

4. Irrigation

5. Water Supply

6. Transport

7. Street Light

Note: 3) If demand meter reads kilowatts (kW) then kVA ~=kW/0.8
b) 10% discount in the total bill amount will be given to the HMG/N approved Industrial District

c) 25% discount in the total bill amount will be given to HMG Hospitals and Health Center
(except residential complex)

AVAILABILITY FY2001

UTILIZATION FY2001

26 —>। 83%
6.74% 1.09%

12.12%

1.45% 59.59%। 68.57%
57%। छि Hydro & Thermal O Purchase India © Purchase Nepal।। @ Internal M Losses O Export O Self Consumption।

- ALES FY2001

REVENUE FY2001

38.47%-~.
५,

=
क.

35.57%

& Domestic @ Industrial ८) Commercial।
O Non-Commercial @ Export @ Other

@ Domestic BB Industrial 0 Commercial
0 Non-Commercial Mf Export @ Other

EXPENDITURE FY2001

5.97% 1.76%। oh 59%
11.06%

लल Staff Cost ™@ Power Purchase Operation & Adm. छ Interest
छ Depreciation छ Royalty @ Fuel

A YEAR

0

2 Zz
ac m
zZ =

TOTAL ENERGY AVAILABLE
AND PEAK DEMAND

2000 —- ना §00
00
0 500
i ia
1200।]। #9
5 0 i oa ie. =
ला ST LPC
1111 - 200
"8088 681 [111
8 Ee Peace Ge Oe। [। 190
a1 ee

1993 1994 1995 1996 1997 1998 1999 2000 2001

FISCAL YEAR

'ME Total Enegy ME Thermal MEM Hydro C—_] Nepal C1 Import —>*— Peak Demand

Particulars 1993 1994 1995 1996 1997 1998 1999 2000 2001"
Peak Demand (MW)" 214.04 231.0 244.0 275.0 300.11 317.00 326.4 351.9 391.0
Available Energy (GWh) 963.31 1030.89 1,117.46 1,261.96 1,368.58 1,373.17 1475.00 1701.45 1868.42
1. Hydro 804.05 835.48 848.74 1,072.75 1,096.64 971.96 1046.51 1233.22 1113.36

2. Diesel 47.29 62.20 80.92 36.64 39.73 107.45 118.82 66.73 27.14

3. Purchase from 111.97 133.21 187.80 153.57 = 232.21 293.76 309.67 401.50 727.93

(a) India 82.22, 102.77 113.84 72.96 153.98 210.29 232.39 232.20 226.54

(b) Nepal 29.75 30.44 73.96 80.61 78.23 83.47 77.28 169.30 501.38

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

छ तथ रि

20
m
८ 5
=
Zz <

AVIA VY

GROWTH OF CONSUMERS

No of Consumers

1993 1994 1995 1996 1997 1998 1999 2000 2001

FISCAL YEAR

@ Total & Domestic O Others
क क सामा

Particulars 1993 1994 1995 1996 1997 1998 1999 2000 2001*
Domestic 3,71,975 4,04,452 4,36,631 4,71,599 503,330 548,110 593,468 643,314 731,990
Non-Commercial 6,340 6,321 6,369 6,548 6338 7,192 7,654 7,815 8,250
Commercial 1,536 1,848 2,008 2,162 2441 2,637 2,948 3,096 3,450
Industrial 9,595 10,737 11,480 12,329 12928 14,062 14,996 16,179 17,650
Water 9000 131 195 166 177 190 205 25 232 250
0 463 590 630 शा 213 776 8726 १67 1,090
2661 २67 375 420 456 ब82 683 842 932 1,020
Temporary Supply 183 188 189 187 155 175 207 144 180
Transport 8 15 8 8 8 12 21 47 52
Temple 398 525 698 782 867 992 1,131 1,248 1,500
Total (Internal Sales) 3,90,996 4,25,206 4,58,599 4,94,960 527,452 574,844 622,358 673,974 765,392
Bulk Supply (India) 5 4 5 5 5 5 5 5 5
Grand Total 3,91,001 4,25,211 4,58,604 4,94,965 5,27,457 574,849 622,363 673,979 765,397

Note :- * Provisional figures; subject to final audit.

का VEAR

Zz
nan
mi
<
m
=

ELECTRICITY SALES

<<

=

oS

-€

>

f > >)

5

पछ

1993 1994 1995 1996 1997 1998 1999 2000 2001
FISCAL YEAR
Wi Total_M Domestic Ci industrial _C Others। Total &% Domestic O Industrial O Others।
(in GWh)

Category 1993 1994 1995 1996 1997 1998 1999 2000 2001*
Domestic 259.833 275.050 301.611 328.730 355.118 378.778 410.566 467.049 518.360
Non-Commercial 47.607 47.148 53.225 53.464 57.991 60.227 62.931 63.592 73.157
Commercial 47.607 48.988 58.574 62.916 67.606 71.471 77.343 81.822 94.166
Industrial 273.753 303.991 328.316 358.672 376.742 413.738 440.996 508.357 520.634
Water Supply &
Irrigation 24.113 19.401 27.636 25.091 27.978 29.045 22.831 15.742 28.600
Street Light 8.068 8.857 12.173 16.720 20.929 26.585 29.405 31.741 36.981
Temporary Supply 0.924 0.561 1.225 1.154 0.844 0.711 0.766 0.927 0.826
Transport 1.395 1.338 1.455 1.432 1.483 3.663 2.598 2.678 5.892
Temple 0.460 0.658 0.892 1.503 1.691 1.801 1.982 2.366 2.511

Total (Internal Sales) 663.248 705.992 785.108 849.682 910.382 984.019 1.049.418 1174.274 1281.127
Bulk Supply (India) 46.137 50.514 39.479 87.014 100.218 67.410 64.158 95.000 126.000

Grand Total 709.385 756.506 824.587 936.696 1010.600 1051.429 1113.576 1269.274 1407.127

Note :- * Provisional figures; subject to final audit.

REVENUE

(Million Rs)

1993 1994 1995 1996 1997 1998 1999 2000 2001

FISCAL YEAR

'WTotal_M Domestic Ci industrial Cl Others। @ Total @ Domestic DO Industrial OO Others।

(in million Rs)
Category 1993 1994 1995 1996 1997 1998 1999 2000 2001*
Domestic 621.398 916.332 1,195.389 1,379.456 1769.839 1895.845 2056.045 2622.033 3265.668
Non-Commercial 181.076 219.807 284.478 307.246 386.359 405.142 419.580 527.399 624.761
Commercial 186.005 235.781 310.911 349.628 446.964 477.044 515.722 661.578 787.228
Industrial 669.244 936.901 1,260.125 1,406.731 1801.576 1973.372 2093.878 2599.337 3019.677
Water Supply &
Irrigation 36.194 39.526 70.091 68.400 95.701 100.277 78.144 95.654 130.702
Street Light 16.949 27.625 41.835 53.042 80.111 101.977) 111.369 149.945 170.133
Temporary Supply 4.880 3.699 6.886 11.840 7.991 7.170 7.057 13.393 9.912
Transport 2.118 2.985 3.993 4.198 6.090 6.511 9.457 18.311 27.692
Temple 0.693 1.480 3.320 4.556 6.208 6.711 7.416 9.704 11.551

Total (Internal Sales} 1,718.557 2,384.136 3,177.028 3,585.097 4600.839 4974.049 5298.670 6697.354 8047.324
Bulk Supply (India) 75.462 91.364 97.566 206.720 249.292 199.915 198.151 327.804 441.000
Gross Revenue 1,794.019 2,475.500 3,274.594 3,791.817 4850.131 5173.964 5496.821 7025.158 8488.324

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

A YEAR

z
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LOAD FORECAST
for Integrated Nepal Power System (INPS)

Year Energy (GWH) Growth (%) Peak (MW) Growth (%)
2001 1868.42 - 391
2002 2004
2003 2149
2004 2354
2005 2598
2006 2850
2007 3094
2008 3343
2009 3591
2010 3855
2011 4135
2012 4434
2013 4753
2014 5093
2015 5456
2016 5843
2017 6255
2018 6696
2019 7166
2020 7668

Average Growth

ENERGY (in GW)

LOAD FORECAST

3000 [_ -

8000

7000

6000 -

5000 +

4000 --

3000 +

2000

1000

alll
i
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

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1800

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1000

800

600

400

200

PEAK LOAD (in MW)

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