The West Seti 400 kV transmission line project has been taken forward under the public-private partnership (PPP) model to connect the electricity generated from large hydropower projects to be built in western Nepal to the national transmission system. A special purpose vehicle (SPV) named ‘West Seti Transmission Limited’ has been established for the implementation of the project.

The project, estimated to cost around Rs 20 billion, will be constructed with 30 percent equity and 70 percent debt investment. The company registration process has been completed with the approval of the investment structure by the board of directors of the National Broadcasting Grid Company Limited (RPGCL).

Addressing the founding partners of the company on Monday, Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha said that the contribution made by the private sector in energy production has now expanded to the development of transmission infrastructure. He termed the transmission line as the ‘lifeline’ of the energy sector and expressed confidence that such a partnership would usher in a new era in the energy sector. ‘Participatory development is also an exercise in democracy.’ The government will encourage it as collaboration with the private sector in transmission lines is a new practice for Nepal,' said Minister Shrestha.

Informing that the review process regarding the Power Purchase Agreement (PPA) is ongoing, he said that necessary decisions will be taken based on the report received. He said that if sustainable and reliable supply is ensured in the energy sector, the country's economy will gain new momentum and will also make a significant contribution to the economic development of the Far West. Expressing the government's commitment to provide necessary support for the successful implementation of the project, Minister Shrestha said that the government is ready to solve the problem. 'The private sector has taken the risk. The government will not shy away from its responsibility to complete the project successfully,' he said.

RPGCL Chief Executive Officer Sagar Shrestha informed that the construction work will be carried out rapidly after land acquisition, 'right of way' and forest clearance. He said that the necessary preparations for this have begun. Shailendra Guragain, chairman of the company's partner Samriddhi Energy Limited, termed the project a 'game changer' project in the energy sector and said that the private sector is excited to invest in it due to its long-term importance.

Similarly, Dirghayu Kumar Shrestha, acting executive director of Nepal Electricity Authority, mentioned that the project is also very important from a strategic point of view. According to the share structure of the company, the government will have 51 percent ownership. Under this, RPGCL will have 26 percent, Chilime Hydropower Company Limited 12.5 percent and Chainpur Seti Hydropower Company Limited 12.5 percent investment.

Samriddhi Energy Limited will have 25.1 percent share, Ngadi Group Power Limited 7 percent and Suree Ngadi Power Limited 6.9 percent share on the private sector side. The remaining 10 percent share has been allocated to the general public. A 400 kV double circuit transmission line of about 145 kilometers will be constructed from Chainpur Substation in Jayaprithi Municipality-1 of Bajhang to Dodhodhara Substation in Bardagoriya Rural Municipality-2 of Kailali via Banlek in Doti. Under the project, substations with a capacity of 160 MVA will be constructed in Chainpur and 315 MVA in Banlek. The necessary land acquisition and preliminary survey for the project have been completed, and the construction period has been set at five years. Through this transmission line, electricity generated from various projects to be built in the Seti River system and its tributaries, including the 750 MW West Seti Hydropower Project, the 450 MW Seti River-6 Project, the 170 MW Upper Seti Project, will be transmitted to the national transmission system.