The state-owned Rastriya Prasaran Grid Company Limited (RPGCL) has invited the private sector to collaborate in constructing the 400 kV Haitar-Sheetalpati transmission line in eastern Nepal, estimated to cost around Rs 9 billion. In a public notice issued on Monday, RPGCL called for letters of intent from power generation projects in the Upper Arun River and its tributary corridors that plan to transmit electricity through the Haitar-Sheetalpati transmission line. Interested parties must submit their letters within 15 days if they wish to partner with RPGCL through private capital investment.
This initiative marks the third transmission line RPGCL plans to develop under a public-private partnership (PPP). The company has already initiated processes for constructing the Tamor-Dhungesanghu 220 kV transmission line and the Lamabagar-Bahrabise 220 kV transmission line using the same model.
RPGCL's CEO, Netra Prasad Gyawali, stated that the Haitar-Sheetalpati line would diversify electricity transmission infrastructure and integrate around 2,260 MW of electricity into the national grid. Key contributors include projects such as the 1,061 MW Upper Arun, 454 MW Kimathanka Arun, and 490 MW Arun-4. Gyawali added that the project could transition to full private investment for construction and operation, depending on future requirements.
The 35-kilometer Haitar-Sheetalpati transmission line will feature 98 towers, a 300 MVA high-voltage substation in Makalu Rural Municipality-4 of Sankhuwasabha, and a 630 MVA Sheetalpati substation in Khandbari Municipality-10. The line will connect the 400/132 kV high-voltage substation in Makalu Rural Municipality to the 400/220 kV Sheetalpati substation via Chichila Rural Municipality.
RPGCL is exploring PPPs for transmission line projects to enhance electricity transmission infrastructure. On December 17, 2024, the Tamor-Dhungesanghu 220 kV transmission line was announced as a public-private investment project under a build-operate-transfer (BOT) model. Agreements for this project involve RPGCL, the Hydroelectricity Investment and Development Company (HIDCL), and five private hydropower promoters. Similarly, on January 2, 2025, RPGCL sought letters of intent for the Lamabagar-Bahrabise 220 kV transmission line, also under the BOT model.
Despite the private sector's willingness to invest, challenges remain. One significant issue is the uncertainty around the wheeling charge, the main source of income for private investors in transmission line projects.
Krishna Acharya, a private sector representative involved in the Tamor-Dhungesanghu project, noted that this uncertainty could affect investment decisions. However, he expressed optimism that the government, through discussions with the Ministry of Energy, would resolve the issue.
The involvement of the private sector in electricity transmission is a first for Nepal, signaling a new phase in infrastructure development. RPGCL’s initiatives aim to improve electricity transmission while addressing investment challenges through collaboration and policy adjustments.
