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Electrification Business Group

Electrification Business Group is primarily responsible for rural electrification in the country. All the major rural electrification projects funded by GoN, NEA and other donor agencies are implemented by this business group. Construction, operation and maintenance of small hydropower plants are the other responsibilities of this business group. It is headed by the General Manager and is organized into two departments, namely, Small Hydropower and Rural Electrification Department and Community Rural Electrification Department, each headed by a Director. Furthermore, Rural Electrification, Distribution and Transmission Project, Distribution and Rural Electrification Project, 11am Rural Electrification Project, Dhankuta Rural Electrification Project, Kailali-Kanchanpur Rural Electrification Project and Sindhu Dolkha Distribution Line Extension Project are being implemented under this business group. The activities of the Departments and Projects under the business group are highlighted below.
Small Hydropower and Rural Electrification Department

Small Hydropower and Rural Electrification Department is responsible for the construction, operation and maintenance of small hydropower plants and implementation of rural electrification programs in the remote hilly regions. Presently, this Department is overseeing the management of 26 small hydropower plants, 2 solar plants and 5 distribution branch offices spread over 27 districts in 12 zones of the country. Out of 26 small hydropower plants, 8 have been leased out to private firms and 3 have been leased out to the consumer communities. A number of 33 kV substation and transmission line projects are under construction. A 1.5 MVA, 33/11 kV substation at Jiri-Khimti VDC of Terhathum district has been commissioned recently.

A number of projects as listed below are being implemented under this Department.
(a) Heldung Small Hydroelectric Project (500 kW) in Humla district, scheduled to be completed in FY 2007/08;
(b) Gamgad Small Hydroelectric Project (400 kW) in Mugu district, scheduled to be completed in FY 2007/08;
(c) Buipa-Okhaldhunga 33 kVTransmission Line Project in Khotang and Okhaldhunga districts;
(d) lIam-Phidim-Taplejung 33 kV Transmission Line Project in Panchthar and Taplejung districts;
(e) Sitalpati-Musikot 33 kV Transmission Line Project in Salyan and Rukum districts;
(f) Chhinchu-Rukum- Jajarkot 33 kV Transmission Line Project in SurkhetE and Jajarkot districts;
(g) Ghorahi-Holeri 33 kV Transmission Line Project in Dang and Rolpa districts;
(h) Udipur-Besisahar-Manang 33 kV Transmission Line Project in Lamjung and Manang districts;
(i) Dadeldhura-Baitadi 33 kV Transmission Line Project;
(j) Dhankuta-Hile-Leguwa-Bhojpur 33 kV Transmission Line Project;
(k) Tumlingtar-Dingla-Bhojpur 11 kV Transmission Line Project;
(I) Rasuwaghat-Khotang 33 kV Transmission Line Project, and
(m) Dipayal-Sanfebagar-Manma-Jumla 33 kV Transmission Line Project;

Community Rural Electrification Department
In order to increase the coverage of electricity supply in the rural areas and promote local participation for sustainable growth, GoN has adopted a policy in FY 2003/04, which call for sale of power to rural electricity consumer groups after setting up the requisite distribution infrastructure. Under this program,
consumer associations, typically in the form of cooperatives and user groups, take the responsibility of managing, maintaining, and expanding the rural distribution of electricity. Communities raise 20% of the investment cost for distribution system extension in their area and 80% of the fund is provided by the government. The primary objectives of the program is to reduce the cost of distribution, make distribution system effective, accelerate the pace of expansion of distribution lines in the rural areas and check the pilferage of electricity.
Initial response to this new initiative has been overwhelming. This is reflected in large number of agreements signed between NEA and local consumer groups. Altogether, 38 consumer groups have already started operating out of 165 communities which have signed the agreement. Further 190 rural electricity communities are expected to operate under this model. The following depicts the status of implementation status of the program till June 30, 2007:

 

Rural Electrification, Distribution and Transmission Project (REDTP)
REDTP is being implemented with loan assistance from ADB and OFID (OPEC fund for International Development). GoN and NEA are funding the local component of the Project. The Project consists of the following components.
(a) Rural Electrification and Distribution System Reinforcement Project
(b) Transmission Development
(i) Thankot-Chapagaon-Bhaktapur 132 kV Transmission Line Project
(ii) Grid Substation Reinforcement Project
(c) Computerized Billing Project
(d) Institutional Strengthening:
(i) Distribution District Profit Center Project
(ii) Fixed Assets Revaluation Project
The Distribution Profit Center Project and Fixed Assets Revaluation Project have already been completed. Rural Electrification and Distribution System Reinforcement Project, Grid Substation Reinforcement Project and Computerized Billing Project will be completed in FY 2007/08. ThankotChapagaon-Bhaktapur 132 kV Transmission Line Project will be completed in FY 2008/09. Rural Electrification and Distribution System Reinforcement Project The main scope of Rural Electrification and Distribution System Reinforcement Project includes electrification in 277 VDC covering 22 districts of the eastern, central and western development regions. The Project comprises of Rural Electrification (RE) and Distribution System Reinforcement (DSR) components. Under the RE component, eight new 33/11 kV substations with total capacity of 34.5 MVA and 553 numbers of 11/0.4 kV distribution transformers with total capacity of 34.55 MVAwiII be installed. Similarly, 45 km of 33 kV lines, 807 km of 11 kV lines, 495 km of 11/0.4 kV lines and 1,425 km of 0.4 kV lines will be built under this Project.
Under DSR component, six new 33/11 kV substations construction and augmentation works in existing nine 33/11 kV substations will be carried out resulting in the capacity addition of 77 MVA. Similarly, 566 numbers of 11/0.4 kV distribution transformers with total capacity of 71 .32 MVA will be installed. Moreover, 57 km of 33 kV lines, 867 km 11 kV lines and 583 km of 0.4 kV lines will be  added to distribution system of NEA.
The Project is estimated to cost US$ 37.3 million and is jointly funded byADB, GoN and NEA. Nearly 85% of works under the Project have been completed so far. The Project is expected to be completed by FY 2007/08.
Distribution and Rural Electrification Project
Distribution and Rural Electrification Project is being implemented in the five districts, namely, Dhading, Nuwakot, Lalitpur, Bhaktapur and Kavrepalanchok with funding from International Development Association (IDA) of the World Bank under Power Development Project. Power Development Project intends to help meet the government objectives of expanding electricity coverage in the rural areas to substitute the use of kerosene and fire-wood by electricity and spur economic activities. There are two components under this Project, namely, Rural Electrification Scheme and Distribution System Reinforcement Scheme. Rural Electrification Scheme focuses at construction and extension of distribution lines, whereas, the other scheme aims at reinforcing the existing distribution network and increase quality of electricity supply to the consumers. The scope of works under these schemes are depicted in the following tables:

 

Scope of works under Distribution System Aein1orcemen Scheme:

Supply and delivery of distribution line materials for RE and DSR have been completed. Tender for construction works for RE and DSR has been evaluated and the evaluation report has been submitted to the World Bank for concurrence. The contract for the construction of substation has been awarded and detail design work is in progress. All the works under the Project will be completed by December 2008.
11am Rural Electrification Project
11am Rural Electrification Project is being implemented with Non-project Grant from the Government of Japan. The Project plans to provide electricity to 10,659 households in 17 VDC. The total cost of the project is NRs. 115 million. The Project works comprise of construction of 316 km of 11 kV lines, 284 km of 400/230 volts lines and installation of 60Edistribution transformers. Most of the distribution line materials have been delivered and contract for construction has been awarded for the first stage of works. For the second stage of works, evaluation of tenders for the supply and delivery of distribution line materials and construction is in progress. All the works under the Project will be completed by FY 2007/08.

Dhankuta Rural Electrification Project
Dhankuta Rural Electrification Project was started in FY 2005/06 and completed in FY 2006/07. The Project was completed at a cost of NRs. 600 million, funded by Government of Japan. Under the Project, 74km. of 11 kV lines and 85 km of 400/230V lines were constructed and 39 distribution transformers were installed in five VDC, namely, Aankhisalla, Khoku, Chhintang, Aahale and Mahabharat.

Kailali-Kanchanpur Rural Elctrification Project
Kailali-Kanchanpur Rural Elctrification Project was started in 1999 (2056/057 B.S.) with a grant assistance of Danish Government of DKK 66.3 million and G0N/NEAfunding of NRs. 668 miliion. The Project will be completed in FY 2007/08. The Project was revised and upgraded in May 2006 to include construction of additional four new substations (10.5 MVA) through extension of 75 km of 33 kV line, upgrading of distribution transformers and conversion of two phase distribution system to three phase in several load centers. This revision in Project scope required additional funding of DKK 17.5 million, which Danida has committed to provide. About 70,000 consumers of 33 VDC and one municipality of Kailali and Kanchanpur districts will be benefited from this Project. So far three numbers of 3 MVA, 33/11 kVsubstations have been constructed and commissioned at Lamki, Attariya and Lalpur. Similarly, construction of 24 km of 33 kV, 443 km of 11 kV and 1,448 km of 400/230 V lines have been completed. These works have contributed in improving the voltage profile of the network in the districts. Around 26,000 new consumers are already supplied with electricity from the newly built lines.
The ownership and responsibility of operation/ maintenance of the substations and high voltage lines will remain within NEA, while the low voltage distribution lines and distribution transformers will be handed over to electricity users groups. The groups will own, operate and maintain the distribution system and promote and facilitate productive end- use. The cooperatives will get a subsidy of NRs 7,200 per household while the balance of investment in low voltage distribution lines, transformers and service connections will be provided as an index loan at 2% real rate of interest over 20 years to be collected along with payment for NEA’s wholesale supply of electricity. Distribution lines have already been handed over to 31 user groups thereby supplying electricity to 6,100 consumers. About 80% of the total project works have been completed till date.

Sindhu Dolkha Distribution Line Extension Project
Sindhu Dolkha Distribution Line Extension Project was started in FY 1999/2000 and is being implemented in three phases. After completion of the Project, 50,000 households and small-scale industries in the project area of Dolkha and Ramechhap districts will be directly benefited. The major scope of the Project includes:
• construction of 82 km of 33 kV, 200 km of 11kV and 460 km of low voltage line.
• installation of 278 distribution transformers.
• construction of 4 numbers of 1.5 MVA, 33/11 kV sub-station (Makaibari, Jiri, Kirnetar & Singati)
Currently, the Project is in the second phase and construction of two numbers of 33/11 kV sub-station at Jiri and Makaibari have been completed and will be commissioned shortly. The construction of 52 km of 33 kV line, 172 km of 11 kV line, 356 km of low voltage lines have been completed and 156 nos. of transformers have been installed. The total cost of the Project is estimated at NRs. 450 million and is funded by GoN. The Project is expected to be completed by FY 2008/09.