Nepal

Client: Department of Electricity Development (DoED), under Ministry of Energy (MoEN).

NVE Mandate: Technical Assistance on the implementation of Feasibility Studies.

Contract Value/ Duration: MNOK 3.17 (included in DoED’s total budget for the stud­ies), 2004 – 2011.

Type of Activities: Feasibility Studies, originally divided in 3 lots (Package 1 – 3); Terms of Reference ; Procurement of services (entire process); transfer of NVE competence in the respective fields.

Work Completed 2010: Prepared proposal for reallocation of remaining funds; Submit­ted and consequently approved by responsible Nepalese authorities and by the Norwegian Embassy. Programme Document (PD) for agreement on further institutional cooperation (2011-2015), jointly developed by NVE and DoED, -submitted to Embassy for appraisal.

Work in Progress 2010: Studies in Package 2 being conducted by consultants.

Activities and Outputs:
The status as of end 2010 is as follows:

• Consultants working on Package 2 projects, with most of the required reports already presented and approved (before entire study documentation can be compiled).
• For the three projects in Package 1, which were completed and approved in 2009, neces­sary activities for further preparation towards investment have been defined in order for work to start in 2011.
• Following a national tendering process, the evaluation committee concluded that the fi­nancial bids received for the 2 projects under Package 3 were too high, and hence the Pack­age-3 was cancelled.

DoED requested that the budget allocated for Package 3 be re-allocated for a programme containing short-term assistance (to be ter­minated by mid of 2011) on activities within DoED’s line of work.

These activities include Panel of Experts for Large Storage (Dam) Projects, as well as cooperation and general training activities for DoED officials. The re-allocated funds also cover preparation of the Programme Document (PD) for further institutional cooperation between DoED and NVE (2011-2015).

Funds to cover implementa­tion of activities during the new programme period have, however, to be voted in con­junction with the next bilateral agreement between Nepal and Norway.

Results/Outcome:

• Procedures for procurement of consulting services refined and followed in an orderly fashion
• Projects with completed Feasibility Studies and EIAs seem to move rapidly to implementation.
• EIAs have been given due attention and benefited from Norwegian experience and practises.
• The Feasibility Study requirements have been linked to reforms in the framework for licensing and financing.
• The Programme Document for new institutional cooperation will include a number of new working areas which are reflecting upon the close relationship and mutual confidence between DoED and NVE, provided the request is accepted by the Norwegian Embassy.