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Project Update

Electricity Grid Modernisation Project, Nepal [free access]

September 2, 2020

Developer: Nepal Electricity Authority (NEA) 


Project details and status: The project aims to strengthen and modernise Nepal’s high-priority grid network.


The project entails the automation of 40 grid substations (GS) throughout Nepal; construction of three modern 132/11 kV, 90 MVA GSs with automation, along with the construction of the underground 16-km, 132 kV double-circuit Chobhar–Lagankhel–Sinamangal line and a 5-km, 66 kV Sinamangal–Chabahil double-circuit transmission line in Kathmandu Valley; upgrading 237 km of 132 kV transmission lines with more efficient high-temperature-low-sag (HTLS) conductors; and the construction of four automated GSs with a capacity of 290 MVA and 48 km of power lines in the Myagdi and Dhading districts.


The project is valued at USD195 million, of which USD156 million will be loaned by the Asian Development Bank (ADB).


In August 2020, NEA invited international competitive bids for various works under the project.


The first tender was for the design, supply, installation and commissioning of the 132 kV Dandakhet–Rahughat transmission line and associated substations; the second was for the 132/33 kV air-insulated switchgear (AIS) substations along with associated 33 kV sub-transmission lines; and the last one was for the 132 kV transmission line conductor upgrading.


Later during the same month, NEA invited expression of interests (EoIs) for seeking consultancy services for the supervision, implementation and management of both the project and the contract from technical and safeguard aspects for the ten sub-projects.


This nation-wide project, once completed, will provide improved access to reliable and efficient grid-supply, a strengthened electricity transmission system, a modernised distribution system as well as improved capacity in the targeted areas.


The project will be implemented over five years and is expected to be completed by March 2026.