Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The government and Nepal Electricity Authority on Tuesday launched the Lekhnath–Damauli 220 kV transmission line project, a major infrastructure initiative backed by German financing, even as concerns persist over Nepal’s ability to deliver such projects on time and fully utilize growing hydropower output.
The groundbreaking ceremony in Tanahun was attended by senior officials including German Ambassador Udo Volz and representatives from KfW Development Bank, which is co-financing the project.
According to project details, the transmission line will span 45 KM and carry up to 1,000 MW electricity through a double-circuit system, alongside the construction of modern substations in Lekhnath and Damauli.
The project is expected to facilitate power evacuation from key hydropower projects, including the Tanahun Hydropower Project, and strengthen Nepal’s national grid.
However, energy sector observers note that Nepal has historically struggled to complete transmission projects on schedule, leading to seasonal energy wastage despite rising generation capacity. The concern remains whether this project will follow the same trajectory.
The project underscores Nepal’s continued reliance on foreign development partners. Germany, through KfW Development Bank and GIZ, has played a long-standing role in Nepal’s energy sector—from hydropower development to transmission systems.
While officials have framed the project as a milestone in Nepal–Germany energy cooperation, analysts point out that core institutional bottlenecks—land acquisition delays, weak project management, and bureaucratic inefficiencies—remain unresolved.
The new line is expected to enhance grid reliability and renewable energy integration, particularly in Gandaki Province, while supporting Nepal’s broader goal of reducing dependence on imported fossil fuels.
Yet, the timing is critical. Nepal is rapidly expanding hydropower generation and promoting electricity consumption in transport and industry. Without parallel expansion in transmission infrastructure, experts warn of a widening mismatch between generation and evacuation capacity.
With multiple transmission projects either delayed or stalled, pressure is building on the Nepal Electricity Authority to ensure timely execution of this project.
The Lekhnath–Damauli line is being viewed as more than just another infrastructure project—it is a test of Nepal’s ability to convert donor-backed commitments into functional, on-ground capacity.
Despite the ceremonial launch and strong diplomatic backing, the real challenge now lies in execution—where Nepal’s energy sector has repeatedly fallen short.
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