Kathmandu: The government-owned Rastriya Prasaran Grid Company Limited (RPGCL) has failed to complete its very first transmission line project on schedule, putting nearly 85 MW of electricity generation in eastern Nepal at risk.
The Mewa–Dhungesanghu 132 kV double-circuit transmission line, for which a contract was signed in October 2020 with a target completion period of three years, remains unfinished even as it approaches its fifth year. The project deadline has already been extended three times, and the contractor has now applied for a fourth extension.
The government established RPGCL in June 2015 with the objective of streamlining and accelerating high-voltage transmission line construction. Formed under the restructuring (unbundling) concept of the Nepal Electricity Authority, the company was entrusted with building major transmission infrastructure across the country. However, nearly 11 years after its establishment, RPGCL’s inability to complete its first transmission line project has raised serious questions about its operational effectiveness.
The Mewa–Dhungesanghu 132 kV double-circuit transmission line is the first project undertaken by RPGCL. The approximately 20-kilometre transmission line contract was awarded to Cosmic Electrical Limited. According to available information, the contract was signed in October 2020, with a construction period of only six months.
However, the project could not be completed within the stipulated timeframe. The deadline was subsequently extended three times—first by six months, then by another six months, and later for a third time. Despite these repeated extensions, the project remains incomplete, prompting the contractor to seek a fourth extension. Documents show that the third extension remains valid until mid-July 2025.
Meanwhile, hydropower projects awaiting the transmission line are nearing completion. The transmission line is expected to evacuate power generated by the 21 MW Palun Khola Hydropower Project, the 9 MW Sona Khola Hydropower Project, the 23 MW Union Mewa Khola Hydropower Project, and the 32 MW Upper Mewa Khola Hydropower Project. Together, these projects represent around 85 MW of installed capacity and are in their final stages of development.
According to project promoters, one project is expected to begin operations within the next seven months, another within about 12 months, while the remaining two are scheduled to come online within the next 18 months. However, if the transmission line is not completed on time, the generated electricity may not be able to flow into the national grid. This could result in clean energy produced through investments worth millions of rupees going to waste.
The situation raises a serious policy question: if private developers are unable to sell electricity due to the absence of transmission infrastructure, who will bear responsibility?
The hydropower projects in the Mewa–Dhungesanghu corridor did not obtain licences to build their own transmission lines. This was because there was a common understanding among the Ministry of Energy, the NEA, and the private sector that constructing separate high-voltage transmission lines within the same corridor would be inefficient. To avoid duplication of public investment, minimise environmental impacts, and promote shared transmission infrastructure, the policy was to develop a single transmission line through RPGCL. Trusting this policy, developers opted not to construct their own lines. However, despite hydropower projects nearing completion, the state has yet to deliver the promised transmission infrastructure.
The problem now appears to have moved in the opposite direction. Under the Energy Ministry’s policy, the private sector is not encouraged to build transmission lines, while state-owned RPGCL assumes responsibility for construction. Yet, projects that could be completed within two to three years have remained unfinished for eight to nine years.
Energy sector experts argue that the issue extends beyond delays in a single project. It concerns the state’s project management capability, institutional efficiency, and accountability.
Several questions remain unanswered. Why was the project delayed? Were forest clearances or land acquisition the primary obstacles? Were there weaknesses in contract management or institutional decision-making? Was the contractor responsible, or was project management inadequate? Which laws and regulations hindered implementation? What efforts were made to remove these obstacles?
Stakeholders argue that the responsibility for answering these questions lies with the Ministry of Energy, Water Resources and Irrigation and RPGCL itself. They have called for public disclosure of the reasons behind the delay, measures taken to address the issues, and strategies to prevent similar problems in the future.
According to energy sector investors, private developers face penalties if they fail to complete projects on time. They are subject to pressure from Power Purchase Agreements (PPAs) and Required Commercial Operation Dates (RCODs), must continue servicing bank loans, and may even incur financial penalties. However, when a state-owned institution fails to fulfil its responsibilities, the question of accountability remains unanswered.
Nevertheless, stakeholders say some positive signs have recently emerged within RPGCL. Since the appointment of the new Chief Executive Officer, efforts have reportedly been made to accelerate work and revive stalled projects, giving some hope to power producers awaiting transmission line and substation connectivity.
Yet, hope alone is not sufficient. Results must now be delivered. The issue is no longer limited to the Mewa–Dhungesanghu transmission line; it concerns the overall credibility of Nepal’s energy infrastructure development.
If the state prevents the private sector from building transmission lines, assumes the responsibility itself, and still fails to provide infrastructure when power generation begins, the question of who is truly hindering Nepal’s energy development will become even more pressing.
RPGCL, however, rejects claims that the project has been completely neglected. According to the company’s Chief Executive Officer, Sagar Shrestha, delays have primarily been caused by delays in forest clearance approvals and the contractor’s slow performance.
Shrestha said that when he assumed office about a year ago, only 29 out of the project’s 62 transmission towers had been completed.
“When I joined, the project was significantly behind schedule. Over the past year alone, progress has increased by nearly 50 percent. At present, 55 out of 62 towers have been completed, and work remains on only seven towers,” he told Jalasrotkar.
According to him, around five kilometres of conductor stringing has also been completed.
Noting that the contractor’s deadline remains valid until the end of the current Nepali month of Asar, Shrestha said liquidated damages would be imposed in accordance with the contract if the work is not completed within the stipulated period.
“If the work is not completed within the deadline, a penalty of 0.001 percent per day will be imposed. The contract is worth approximately Rs 300 million,” he said.
Shrestha added that completing the project has been given high priority during his tenure and that efforts are underway to finish the remaining works as quickly as possible and bring the transmission line into operation.
Meanwhile, Mahesh Mahato, owner of Cosmic Electrical, said that his company has had materials stationed at the project site for the past three and a half years but has been unable to proceed because the required Right of Way (RoW) has not been secured.
He further stated that land acquisition has still not been completed, and that the company itself has become a victim of the prolonged delay, having to repeatedly renew bank guarantees and insurance coverage.
Jalasarokar
