The government-owned National Broadcasting Grid Company Limited (RPGCL) has finalized the investment modality for the construction of the West Seti transmission line under the public-private partnership (PPP) model.

Now, a special purpose vehicle (SPV) company will be established to construct the West Seti transmission line, with 49 percent of the private sector and 51 percent of the government entity. RPGCL Chief Executive Officer Sagar Shrestha said that the construction of the 400 kilovolt (kV) West Seti transmission line will be taken forward by the same company.

RPGCL had sought a letter of intent on 23 Poush 2082 for the West Seti transmission line to be constructed in Bajhang-Banlek-Dododhara under the PPP model.

RPGCL had previously sought a letter of intent for investment on 23 Bhadra 2082. Shrestha said that the said notice was cancelled after there was a dilemma over how to select after receiving many proposals. He said that in December, the Electricity Transmission Project Investment Partnership Procedure, 2082, was formulated and a notice was issued again asking for a letter of intent for investment.

Then he said Samriddhi Energy Limited, Ngadi Group Power Limited, Sagarmatha Hydropower Company, Siuri Nyadi Power Limited, Mata Malika Energy Multiple Pvt. Ltd., Surma Sarovar Hydropower Pvt. Ltd., Chilime Hydropower Company Limited, and Chainpur Seti Hydropower Company Limited had submitted letters of intent for investment. RPGCL has stated that after evaluating the technical and financial proposals, 5 companies, including the government, have been selected to invest in the transmission line project.

Samriddhi Energy Limited has 35.1 percent, Siuri Nyadi Power has 6.9 percent, and Ngadi Group Power has 7 percent on the private side, while Chilime Hydropower Company, a subsidiary of Nepal Electricity Authority, will have 12.5 and Chainpur Seti Hydropower Company will have 12.5 percent shares, and RPGCL will have 26 percent shares on the government side.

Shrestha said that preparations are underway to sign an agreement between the six companies, including the private and government. He said that after the agreement, a special purpose vehicle (SPV) company with a share structure of 49 percent of the private sector and 51 percent of the government body will be registered. 'For the first time, the private sector has also been opened to the construction of the transmission line, it will be built on the PPP model,' he said, 'We are moving forward to start the construction of the transmission line in the coming fiscal year after completing the establishment of the company.'

According to the RPGCA, six companies will proceed with the construction of the transmission line by raising 30 percent of their own capital and 70 percent of the loan. 'The Paschim Seti transmission line has attracted investment of 6 billion rupees, including private and government, and we are looking for loans for the remaining 14 billion rupees,' he said.

A 145-kilometer transmission line of 400 kV and two substations will have to be constructed on the Paschim Seti transmission line. 60 kilometers from Bajhang to Banlek and 85 kilometers from Banlek to Dododhara will have to be constructed.'

400/132 kV GIS substations will have to be constructed in Bajhang and Doti. A 160 megavolt-ampere (MVA) capacity substation in Chainpur and a 315 MVA capacity substation with transformers will have to be constructed in Banlek, the company said in a notice issued by the company. The company has estimated the cost to be around Rs 20 billion. The transmission line will reach Dododhara Substation in Shikhar Municipality-1, Doti, via Chainpur Substation in Hammersen, Jayaprithi Municipality-1, and Banlek Substation in Shikhar Municipality-10. The transmission line will reach Dododhara Substation in Bardagoria Rural Municipality-3, Kailali.

RPGCL has already conducted a detailed engineering and environmental study of the Chainpur-Banlek and Banlek-Dododhara transmission lines and the 400 kV Western Seti Corridor transmission line including Chainpur and Banlek substations.

An understanding has been reached between various organizations for the development of hydropower and the construction of a 400 kilovolt (kV) transmission line in the West Seti Corridor. On 5th Shrawan 2082, during the tenure of former Energy Minister Deepak Khadka, a mutual understanding was reached between Hydro Electricity Investment and Development Company Limited (HIDCL), National Transmission Grid Company Limited, Chainpur Seti Hydropower Company Limited, Chilime Seti Hydropower Company Limited and Samriddhi Engineering Limited with the aim of collaborating in the construction of hydropower projects and transmission infrastructure under the West Seti Corridor.

According to the understanding, there will be multilateral cooperation in the construction, mobilization of financial resources and operation of the Bajhang-Nilegada-Dodhara 400 kV international transmission line and the 210 MW Chainpur Seti, 87 MW Seti River-3 and 216 MW Upper Seti hydropower projects to be connected to that line. Once the SPV company is established, HIDCL will lead the financial management of the projects.

 87 MW Chilime River-3, 210 MW Chainpar Seti, 216 MW Bajhang Upper Seti, 25.05 MW Sunigad and Upper Sunigad, 46 MW Super Seti, 60 MW Badimalika, 60 MW Nyadi, 21.92 MW Bajhang Cluster, 54 MW Mahakali Seti, 72 MW Tapovan Seti, 9.84 MW Kalangad A, 12 MW Super Sunigad, 4 MW Lower Sunigad, 51.50 MW Ghatganga, 31.50 MW Syanban Khola, 16 MW Super Kalga Khola, 9.60 MW Lower Seti (Bajhang), 15.33 MW Upper Kalangad, 10.70 MW Sunigad, 3 MW Lower Sunigad, 8 MW Lower Kalangad, 7.3 MW Madhya It has been proposed to connect the electricity of Kalangad, 1902 MW Mugu Karnali, 300 MW Balanch, 800 MW Paschim Seti and 20 MW Budhangga Hydropower Projects to the 400 KV Paschim Seti transmission line.

The government had tried to construct the Paschim Seti transmission line using a concessional loan from the Government of India. The Nepal government, which had proposed the construction of the project in 2080 Shrawan, had not received a positive response from India, but the construction of the project became uncertain. On December 11, the Ministry of Finance wrote to the Ministry of Energy, Water Resources and Irrigation, stating that no response had been received from the Government of India regarding the use of a concessional loan.

The Ministry of Finance had proposed the construction of the transmission line using the remaining 900 million US dollars from the concessional loan agreement (Line of Credit—LoC) three and four with the Government of India. The Ministry of Foreign Affairs has sent the proposal to the Indian government through the Indian Embassy, ​​but there has been no response and the Ministry of Finance has written in a letter that if an agreement is reached in the future, a proposal can be made to manage the funds for the construction of the West Seti-Dododhara transmission line.