Nepal has taken a historic step by initiating its first transmission line project under the Public-Private Partnership (PPP) model.  

An agreement for the 220 kV Tamor-Dhungesanghu Transmission Line Project was signed on Tuesday, December 17, at the Ministry of Energy, Water Resources, and Irrigation.  

The project unites five private sector power companies — Remit Hydro, Simbuwa Remit Hydro, Crystal Power Development Pvt. Ltd., Union Hydropower, and Nepal Hydro Venture Pvt. Ltd. — with the National Transmission Grid Company and the Hydroelectricity Investment and Development Company Ltd. (HIDCL).  

These five private companies are developing hydropower projects with a combined capacity of 416.8 MW, including the 77.5 MW Ghunsa Khola, 70.3 MW Simbuwa Khola, 166 MW Super Tamor, 60 MW Upper Tamor A, and 43 MW Tamor Khola projects, respectively.  

Estimated to cost Rs 3.8 billion, the project will follow the Build-Own-Operate-Transfer (BOOT) model and include the construction of a 32-kilometer transmission line and a 220/132 kV substation.  

Preparatory work is underway, with approximately 70 ropani of land already acquired, according to the National Transmission Grid Company. HIDCL will provide debt financing for the project, with 74 percent of the shares allocated to private power companies and the remaining 26 percent to the National Transmission Grid Company.  

Revenue from wheeling charges paid by power producers will be used to cover loan repayments, operational expenses, and shareholder returns.  

The Tamor-Dhungesanghu Transmission Line Project is poised to enhance electricity transmission efficiency and bolster hydropower generation in eastern Nepal.