To improve power distribution, Nepal Electricity Authority(NEA) is soon building 5 substations all around Kathmandu Valley. To do so, NEA has already selected two Chinese companies to work on the construction.
The two Chinese companies selected for this project are Pinggao Group Co and Sinosteel Company. Pinggao is to build 132 kV substations at Mulpani, Phutung, and Chapagaon while Sinosteel will build 220 kV substations at Lapsiphedi and Changu Narayan.
According to the Public Procurement Act, state-owned enterprises like NEA need to hold negotiations with the selected contractors before signing the contract.
Manoj Silwal, chief of the Project Management Directorate at the NEA said, “We have already invited the Chinese companies for negotiations before signing the contract. We will be holding talks with the potential contractors this month.”
According to NEA, the project will start by the end February 2018. And the contractors will be given 30 months to complete the task.
At the same time, NEA is also evaluating technical proposals in order to select a contractor for the construction of a 220 kV substation at Barhabise.
Power Transmission and Distribution Efficiency Enhancement Project(PTDEEP) being executed by the Nepal government in association with the Asian Development Bank(ADB).
The PTDEEP is a $180 million project that will increase the capacity and reliability of distribution networks by undergrounding and automating the networks and using insulated cables for overhead lines. For this, NEA has already called for tenders for the installation of underground power cables in the northern and central parts of Kathmandu in Ratna Park and Maharajgunj.
Silwal said, “Currently, we are evaluating the technical proposals of the bidders, and it will take some time for the selection.”
Currently, the existing network in the Valley cannot support a load of more than 400 MW. With the new project, the network will be able to support a load up to 2,000 MW.