On the same day that the reconstruction of a section of the desilting basin damaged by landslides on September 26 and the 456 MW Upper Tamakoshi hydropower project began generating electricity, Minister Dipak Khadka convened a meeting with Nepal's development partners at his office.

The completion of one part of the desilting basin and the start of electricity generation by the 456 MW Upper Tamakoshi project have brought relief to NEA and coutnry. However, the full operation of the of Upper Tamakoshi project is dependent on the completion of the reconstruction of the second desilting basin.

Despite the challenges, the diligent efforts and frequent site visits by Kulman Ghising, the managing director of NEA, and Mohan Prasad Gautam, the CEO of Upper Tamakoshi Ltd, have led to the completion of maintenance work on the Upper Tamakoshi project. The project has now started generating electricity, helping to avert the imminent energy crisis.

While one desilting basin has been successfully maintained, the maintenance of the other basin, damaged during the last flood, still needs to be completed.

The NEA is facing difficulties in managing power supply with a shortfall of around 400 MW due to a reduction in electricity generation from IPPs by one fourth.

Nepal's installed capacity is over 3500 MW in the rainy season but drops to 1500 MW in winter, while the peak demand remains around 2400 MW at all times. NEA's MD Ghising is managing the shortfall by importing electricity from India during the day and utilizing all of NEA's power plants during peak times. Since IPPs' power plants are run-of-the-river based, they cannot be used during peak demand.

The country's power sector is currently facing challenges, and MD Ghising is working to prevent power cuts for consumers. However, Minister Khadka is focused on removing MD Ghising, as he believes Ghising is pressuring industrialists to pay their dues for dedicated feeder lines used during the 18 load shedding periods at the expense of the public. Minister Khadka's dissatisfaction with Ghising's performance has led him to engage in an

image-boosting strategy, including announcing policy documents, meeting with donors, and using social media to counter Ghising.

Instead of focusing on these tactics

Minister Khadka should support NEA in completing transmission lines and distribution systems, such as the Inaruwa-Hetauda 400 kV transmission line, and facilitate the development of projects like Dudhkoshi, Upper Arun, and Budhigandaki to enhance energy security for the future. He should also work with the Finance Ministry to allocate adequate budgets for new transmission, generation, and distribution projects that have been long overdue. These steps are essential to achieve the goal of utilizing 28,000 MW by 2035.

Since Minister Khadka stated that Nepal will generate 28,000 MW by 2035, he should make further efforts to materialize his words by focusing on transmission, distribution, and generation.

However, the current obstructions created by Minister Khadka and his team, including the secretary and expert advisors, are likely to create a major crisis for the energy sector in Nepal.

Sending one notification letter after another with a list of directions to MD Ghising, opening an office at NEA, and mobilizing the board of directors and other officials to obstruct MD Ghising, Minister Khadka has caused significant damage to NEA and its expansion work. "Although MD Ghising's tenure is just over six months from now, Minister Khadka needs to start fresh with his approach, giving up his single-minded agenda to disrupt NEA and MD Ghising," said an energy expert.

Jagadulla Hydropower Project

His day-to-day interventions have already caused significant damage to NEA and other agencies under him. His recent intervention in the tender process of the Jagadulla Hydropower Project is likely to delay the completion of the project by two years.

Similarly, his decision to sell the shares of Mugu Hydropower and Kimathanka Project to the private sector has sparked a major controversy and forced him to reverse it.

The process initiated for financial partnership in Mugu Karnali and Kimathanka Arun hydropower projects, which are considered commercially attractive, has been cancelled.

The Electricity Production Company Limited (VUCL) called for proposals for both projects, rushing the procedure to accommodate certain individuals and business houses. Now, the process of selecting a company for financial partnership will be restarted by amending the procedure.

The 1902 MW Mugu Karnali and 454 MW Kimathanka Arun projects were hastily compiled by creating procedures to limit competition. With the policy approval of Energy Minister Khadka, VUCL disregarded national interests and previous practices, causing a stir even within the ruling party.

Minister Khadka approved the process on November 7, the same day he submitted a petition requesting policy approval for the investment partnership procedure from VUCL under the Ministry of Energy. Following this, the VUCL Board of Directors meeting, chaired by the Energy Secretary, formed a three-member sub-committee on November 9, led by Binod Kumar Bhattarai, a company director, to draft the 'procedure for sharing investment for project construction'.

The committee approved the procedure on November 14 after the sub-committee submitted it within a week. The proposal for investment partnership was then invited with a 15-day deadline, which was later extended after the Anti-Corruption Commission showed interest.

Congress MP and industrialist Binod Chaudhary's CG Energy Pvt. Even if there is only one proposal, the procedure was made to precede the process.

Similarly, Nobel Group of Hydro Energy as well as Bela Nepal Industries, Vision Energy and Power, NJ Hydro Energy, and Anak Hydropower had proposals for the 454 MW Kimathanka Arun.

Nobel Group of Hydro Energy belongs to Congress MP Sunil Sharma while Vision Energy has Maoist and Congress leaders.

The selection process was stopped on the instructions of Prime Minister KP Sharma Oli after the disputed news.

Energy Minister Khadka's work style has also been criticized within the Congress. Energy Minister Khadka was also questioned in the meeting with party ministers called by Congress President Sher Bahadur Deuba.

In a meeting attended by party vice-chairman, general minister, chief whip, and whip, Khadka informed that a decision has been taken to stop the investment partnership process of the two projects.

Fresh tender issued for Jagadulla Hydropower Project

A fresh tender has been issued for the Jagadulla Hydropower Project, which is set to be developed in Mudkechula Rural Municipality, Dolpa. According to Sanjay Sapkota, the CEO of the company, the tender is valued at Rs 16 billion.

The original tender for civil and hydro-mechanical works was issued on June 2 last year, and seven companies submitted bids, including a joint venture between High Himalayan Hydro and AJI Company, Zhongding International, Patel Engineering, and Lama Construction. However, none of the companies passed the technical evaluation during the bidding process.

The run-of-river project has a capacity to generate 106 megawatts of electricity and is expected to be completed within five years of starting.

The project achieved financial closure in the third week of May, with Nabil Bank leading the consortium with an investment of Rs 4.4 billion. Other consortium members include the Hydroelectricity Investment and Development Company Ltd (HIDCL), the Employees' Provident Fund (EPF), Laxmi Sunrise, and Everest Bank.

HIDCL and EPF will each invest Rs 4 billion, Laxmi Sunrise will contribute Rs 2 billion, and Everest Bank will invest Rs 1.5 billion. The total project cost is estimated at Rs 23 billion, with Rs 16 billion to be financed through loans and Rs 7 billion raised as equity.

The power purchase agreement (PPA) for the project was signed with the Nepal Electricity Authority on May 10. An access road to the project site is currently under construction, and nine Bailey bridges are being constructed as part of the roadwork. Most of the preparatory works are now in the final stages.

Damage Control

Facing controversy one after another and pushing the Nepal Electricity sector to the brink of collapse, Energy Minister Khadka and his advisor planned damage control efforts.

Expressing open displeasure over his activities, Minister Khadka called a meeting last week with representatives of Nepal’s development partners. However, the damage control efforts ended as a fiasco.

As he attended the meeting without full preparation, Minister Khadka was unable to articulate what he wants from Nepal’s development partners and what his plans are for the future in generation, transmission, and distribution.

Having served for a decade as the head of the foreign division for the export of electricity to India and promoting Nepal-India energy synergy, the current expert advisor to Minister Khadka switched his stance, saying Nepal needs to expand its domestic market rather than export to India. Addressing the Independent Power Producers' meeting, the expert reversed his earlier stance to align with PM KP Sharma Oli’s position.

Minister Khadka in donor Meet

Minister Khadka, delivering a prepared speech, called on donor agencies to invest in the hydropower sector. He engaged in discussions with the leaders and representatives of donor agencies to secure the necessary investment for generating 28,500 MW of electricity by 2035. Minister Khadka emphasized the significance of the recently approved 'Energy Development Roadmap-2081' aimed at achieving the target of 28,500 MW of electricity by 2035.

The Minister expressed gratitude to the donor agencies for their support in the development of Nepal's energy sector and encouraged them to continue their assistance in the future. He highlighted the potential of the energy development roadmap to position Nepal as a regional energy hub, enhance national and cross-border infrastructure, and drive economic growth.

Minister Khadka stressed the importance of the roadmap in ensuring energy security, sustainability, and inclusive economic progress. He underscored the roadmap's focus on the development of cross-border transmission lines in addition to generation and distribution.

The Minister expressed confidence in the timely completion of the Upper Arun Reservoir Project, supported by the World Bank, and the Dudhkoshi Reservoir Project, backed by the Asian Development Bank. He called on development partners, international diplomatic missions, international organizations, and the community to collaborate in implementing the roadmap designed for the country's economic advancement.

He said that there would be no problem in meeting the electricity generation target set by the government as 11,161 MW of power purchase agreements (PPAs) have been signed and 12,968 MW of PPAs are in the process of being signed.

Ghising's Presentation

As usual, MD Ghising was direct and clear in his policy presentation and assessment of the country's energy situation. Reluctantly invited by Minister Khadka and his advisor, MD Ghising made his points clearly. During the meeting, MD Ghising outlined NEA's current role and future planning in a concise manner.

A representative from a donor agency mentioned that they found Minister Khadka's speech and statements difficult to understand due to long sentences and technical jargon. The Minister appeared embarrassed when MD Ghising presented a clear message and outlook on Nepal's energy situation.

MD Ghising, the Managing Director of the Nepal Electricity Authority, emphasized the authority's focus on constructing reservoir-based projects to achieve the targets outlined in the energy development roadmap.

He also expressed appreciation for the support provided by donor agencies in Nepal's electricity development.

Country Director of the Asian Development Bank (ADB) for Nepal, Arnaud Cauchois, expressed his commitment to continue supporting the development of Nepal's energy sector in the coming days to fulfill the goals of the Energy Development Roadmap set by the government. He said that such programs will help improve the economies of South Asian countries.

Heads and representatives of donor agencies, including the Asian Development Bank (ADB), the World Bank, the Japan International Cooperation Agency (JICA), the German Agency for International Cooperation (GIZ), the United States Agency for International Development (USAID), the United Nations Development Program (UNDP), the Norwegian Embassy, and others were present in the meeting. Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, has urged donor agencies to invest in the hydropower sector.

Energy Minister Khadka held discussions with heads and representatives of donor agencies today to gather investment after a cabinet meeting held on December 31, 2024, passed the 'Energy Development Roadmap-2081' with an objective of producing 28,500 megawatts of electricity by 2035 in Nepal.

Whatever damage control steps the minister takes now, his actions and obstruction have pushed Nepal’s energy sector backward.