Kathmandu – The private sector will now be allowed to construct transmission lines under a public-private partnership model. The Middle Tamor-Dhungesanghu 220 kV transmission line, studied by the National Transmission Grid Company Limited (RPGCL), will be constructed under this model.

To facilitate this project, Hydro Electricity Investment and Development Company Limited (HIDCL) has agreed to provide the required loan investment to RPGCL. The agreement was signed today at the Ministry of Energy in the presence of Energy, Water Resources, and Irrigation Minister Deepak Khadka. RPGCL CEO Dr. Netra Prasad Gyawali and HIDCL CEO Arjun Kumar Gautam signed the agreement.

For the construction of the transmission line, RPGCL has also partnered with private sector companies such as Remit Hydro Limited, Simbuwa Remit Hydro Limited, Crystal Power Development Pvt. Ltd., Union Hydropower Limited, and Nepal Hydro Venture Pvt. Ltd.

During the agreement ceremony, RPGCL CEO Dr. Gyawali stated that the government is pushing forward the construction of transmission lines under public-private investment to achieve the target of generating 28,500 MW of electricity by 2035. He also mentioned plans to increase private sector participation in other transmission line projects gradually.

HIDCL CEO Gautam emphasized that private sector involvement in transmission lines will ensure that the generated electricity will not go to waste due to a lack of transmission infrastructure. He further stated that HIDCL will invest not only in electricity production but also in the construction of transmission lines.

Krishna Prasad Acharya, an advisor to the Independent Power Producers’ Association of Nepal (IPPAN), stressed the need to complete transmission line projects promptly to support the hydropower sector’s growth. Energy Minister Khadka described the agreement as a milestone for Nepal’s energy sector. He expressed confidence that allowing the private sector to handle transmission line projects will ensure timely completion and help meet the government’s targets.