TA 4997 – NEP - Promoting Private Sector Participation in the Power Sector in Nepal


Funding Agency/Client: Asian Development Bank
Date: October 2008 – April 2010

The Project will be implemented in the context of the Government of Nepal´s policy of attracting private sector participation in hydro-power development for the purpose of mobilizing private sector investment finance and both technical and managerial know-how to accelerate electrification of the country, particularly in rural areas. The Project aims to develop and assist in implementation of a competitive bidding framework designed to introduce a comprehensive PSP system for hydro-power development.

The outputs of the project will be Policy, legislative, and regulatory framework for PSP in domestic and export-oriented hydropower projects; Draft competitive bidding guidelines, including draft pro forma bidding documents and requests for proposal and quotations; Capacity building in bid process management, PSP policy frameworks, and implementation of private sector projects; and Methodology for EIA of private sector projects.

Detailed Description of the Actual Services Provided by your Firm

The major services provided were:

A. Enabling Framework For PSP/ PPP, which includes followings:

  1. Review Current Hpp Policies, Legislation And Regulatory Framework;
  2. Classifying Projects;
  3. Streamline Licensing Process;
  4. Review Financing Options: Efficient Structures, Revenue Sharing, Public;
  5. Analyzing Participation And Risk Sharing;
  6. Analyzing Risk Assessment And Risk Sharing;
  7. Analyzing the agreements on Connection To The Grid / Project Specific Transmission Lines / Access Roads And Bridges;
  8. Examination of Social Issues;
  9. Review Environmental Impact Assessment Strategy;
  10. Develop PPP Model And Guidelines;

B. Assist And Advise In Bidding Process:

  1. Develop Bidding Guidelines;
  2. Conduct Trainings to : Assist In Drafting Bidding Documents;

C: DOED Capacity Building:

  1. Provide Recommendations For Institutional Development Of DoED And MoWR;