Millennium Challenge Account Nepal (ACA Nepal) is going to build a high-capacity transmission line based on a master plan prepared by the government to easily address the electricity demand of major cities of the country.
In particular, the construction of the transmission lines has been given top priority to provide an easy supply of electricity and lay the foundation for economic prosperity in Kathmandu Valley, Pokhara, Narayangarh, Bharatpur, and Butwal of Kaski and its adjoining areas.
The government has already prepared a master plan for the transmission line to be built in the country. The Millennium Challenge Corporation is going to provide assistance to two important projects as per the request of the government for the construction of a transmission line in the central part of the same master plan. The transmission line starting from Nanglebhar in Kathmandu is connected to Ratmate in Nuwakot. One section will go to Hetauda from Ratmate and the other section will reach Nawalparasi via Damauli of Tanahu. The MCC has also approved the selection as it is a priority of the government and of strategic importance.
Khadga Bahadur Bista, executive director of MCA Nepal, said that the transmission line would be helpful to meet the electricity demand of Kathmandu Valley and some major cities for the next decade and a half. Based on the same assistance, a 77 km long road from Bhaluwang in Dang to Shivkhola on the Banke border will be constructed based on new technology. The width of the road will be 14 meters.
The 315 km long transmission line of 400 KW capacity starting from Nanglebhare in Kathmandu will be connected to the existing sub-station of Nepal Electricity Authority at Hetauda in Makwanpur district. Similarly, three new 400 KW indoor gas-insulated substations (GIS) will be constructed under the power transmission project. Ratmate sub-station in Belkotgadhi municipality of Nuwakot, new Damauli sub-station in Tanahu, and new Butwal sub-station in Nawalparasi will be constructed. The transmission line will reach Nawalparasi via Lapsefedi, Ratmate and Damauli. The transmission line will be connected to Gorakhpur, India with a capacity of 400 KW through the new Butwal substation. An agreement has been reached with India to build the transmission line.
The government has moved ahead with the work by keeping it as the second interstate transmission line. The Energy Secretaries of Nepal and India have already agreed to build the transmission line. The transmission line will be constructed by Nepal Electricity Authority and its equivalent authority in India.
According to sources, the transmission line starting from Lapsefedi in Kathmandu can carry 3,000 MW of electricity. The surplus electricity in Nepal can be sent to India and even imported from the same transmission line that Nepal needs. Due to the complexity of constructing a large-capacity transmission line within the Kathmandu Valley, the Ratmate of Nuwakot is being connected from the north of Shivpuri National Park. It will serve as the transmission backbone of the Kathmandu Valley.
Therefore, planning is necessary
The substation to be constructed in Lapsefedi will work to bring the electricity generated from the projects in Sindhupalchok, Dolakha, and other districts to Kathmandu. The substations in Ratmate will be connected to the projects to be constructed in Nuwakot, Rasuwa, and Dhading.
Similarly, the substation in Damauli will help to connect electricity in the area. The high-capacity substation to be constructed in Nawalparasi will be connected to the electricity of the completed and ready projects in the corridor of Kaligand. Bista, executive director of MCA Nepal, said that the project would be helpful to provide energy easily in major cities like Kathmandu and Pokhara, which have a high electricity demand.
The transmission line under construction will also be connected to the existing substations of the Nepal Electricity Authority (NEA) at Lapsiphedi in Kathmandu district and New Hetauda in the Makwanpur district. Are done.
Assistance to NEA and Commission
During the analysis and feasibility study, technical and economic quality, medium and long term power supply targets of Nepal, and compatibility with Nepal's internal and cross-border transmission line investment plan have been taken into consideration, said Executive Director Bista.
Another goal of the energy sector technical assistance activities is to help strengthen the performance of Nepal's energy sector bodies, including the Electricity Regulatory Commission and the Nepal Electricity Authority. With the support of the Commission, the goal is to enable an independent regulatory body in the power sector to create a transparent, efficient, and competitive environment in Nepal's energy sector.
The technical assistance to be provided to the Commission will be focused on formulating rules, resolving disputes, and providing experts within the body to improve financial and technical regulation skills. Similarly, the assistance will be made available to the Nepal Electricity Authority (NEA) for the establishment of improved processes and decision-making structures for the broadcasting business to strengthen network development, operation, and maintenance.
The power transmission project also includes a program of 'knowledge exchange and benefits integration through social acceptance'. The purpose of the MCA Partnership Program is to gain the trust of the local community, expand relationships with them and distribute the benefits of the transmission line to the local community. It is hoped that the distribution of benefits through this program will expand the relationship with the community in the project area and help in the timely completion of the project.
The project will ensure that the benefits of infrastructure development are distributed equally among the people directly and indirectly affected. The MCA Partner Program will be implemented in all the affected wards along the route of the transmission line and in the sub (station construction area).
This is the board of directors
Millennium Challenge Account Nepal was formed in May 2075 BS under the Ministry of Finance based on the formation order of the Council of Ministers. The Board of Directors of MCA will be chaired by the Secretary of the Ministry of Finance. The members include the Joint Secretary of the Ministry of Energy, Water Resources and Irrigation, the Joint Secretary of the Ministry of Physical Infrastructure and Transport, the Executive Director of Nepal Electricity Authority, one from the private sector, one from the civil society, and the Executive Director of MCA Nepal.
The project will have US ५० 500 million MCC grant and US १३ 130 million grant from the Government of Nepal. The condition was that the broadcasting project should be declared a project of national pride. The government has already declared the transmission line project as a project of national pride. Work has already started on the project implementation agreement, act of Electricity Regulation Commission, and formation. The only conditions were the approval of the Compact Agreement by the Parliament, the agreement between Nepal and India on the construction of the Butwal-Gorakhpur transmission line, land acquisition, deforestation, and the right of access to the construction area. Of these, only the issue of parliamentary approval remains.
Project selection and compact design has been completed between 2014 and 2017. In September 2017, the then Finance Minister Gyanendra Bahadur Karki signed the agreement on behalf of Nepal. The project will be completed within five years and the compact will be closed. MCC is cooperating in 24 countries in Africa, Latin America, and Asia. Of these, 17 countries are in compact and threshold implementation and 10 are in development.
Competitive choice
MCC is a special type of institution that invests only based on the country's ownership and results-oriented programs. Competitive selection is made. The MCC Board determines based on 20 indicators such as political rights, control of corruption, investment in the people, and gender equality in investment.
Another good aspect of this is that the development project is based on the priorities set by the country itself. Another project is to build roads with new technology. Institutional projects are established and directed by the country. The project is focused on results and the project is based on the selection process. The progress and evaluation of the project will be monitored continuously.
The MCC is a US-funded organization dedicated to reducing poverty through economic growth. Established by the US House of Representatives in 2004, the program seeks to redefine US assistance. The Board of Directors of the MCC is chaired by the Secretary of State. There are four members from the finance ministry, USID administrators, US trade representatives, the MCC chief executive, and the private sector. They must be approved by the US Congress.
The cost is not high
90 percent of the total budget received in Nepal is spent on transmission line construction. "People are questioning the cost of the transmission line," said Executive Director Bista.
Mentioning that the money spent on the transmission line may have been calculated based on kilometers, Bista said, "All the technical assistance we have provided to the Electricity Regulatory Commission, NEA, and the Road Department is linked to this." It also includes administrative expenses and land acquisition. Only by adding all this money can the total cost be calculated. ” He said that the specific investment will be known only after bidding for the transmission line.
There is no cost for military use
The agreement stipulates that the money received from the MCC cannot be used for military purposes. Executive Director Bista said that it was wrong in itself that foreign troops would come to Nepal as the MCC had written that it would not be used for military purposes.
He said that the protest may have taken place without knowing or understanding the essence of the project. He is of the view that the protest may have taken place based on not reading the agreement, based on what the friends said, or based on the issues that came up on social media. The Accountant General is conducting regular audits.
The Office of the Auditor-General is regularly auditing the expenses incurred by MCA Nepal annually. As MCA Nepal is a development committee under the Ministry of Finance, the Accountant General is the body that keeps track of all expenditures. That is why it has the full right to audit. The last three years have also been audited. Executive Director Bista said that those who want to see the report can easily view, take and read the report from the Accountant General.
Mentioning that the Accountant General also raised questions about MCA Nepal in the 58th Annual Report submitted to President Vidyadevi Bhandari only a few days ago, he said that he would give clear and logical answers to the questions raised. He said, "The accountant general is conducting regular tests. There is no need to protest. ' Why Parliamentary Approval?
The agreement reached with the MCC for the last two years is under consideration in the federal parliament. MCA Nepal says that even if the agreement is approved by a simple majority of the lower house of the federal parliament, it will be easy to implement. This agreement is an international level agreement. It has been mentioned that the agreement can be ratified following the Treaty Act of Nepal. MCC has conducted similar exercises in different countries.
As the project is to be completed in five years, it is expected to get national priority. Executive Director Bista said that such provision has been made so that there would be no problem in using natural resources or public procurement during the construction of the project. On the other hand, there is an understanding that the provision may be passed by a simple majority of the lower house of the federal parliament based on the suggestion of the Ministry of Law, Justice, and Parliamentary Affairs.
The debate has done well
Stating that the recent debate on the MCC project has done well, Executive Director Bista said that every issue can be viewed not only from a negative angle but also from a positive angle. He said that the recent debate on whether to take international assistance to the parliament in the coming days or not and how to reach an agreement on what issues has done well.
