Private Sector Participation in Transmission: Blueprint for Reform

This working paper presents a case for private sector participation in transmission infrastructure of Nepal. It argues that the current trend of building transmission infrastructure has not been able to keep pace with the rapid gains in electricity generation. Drawing on global examples from Brazil, Peru, Turkey, and India, the study identifies key reforms Nepal must undertake: unbundling NEA, establishing predictable and cost-reflective wheeling tariffs, institutionalising competitive bidding, guaranteeing open access to transmission infrastructure, improving incentive frameworks, and overhauling land acquisition and Right-of-Way systems. The paper presents a practical roadmap showing how PSP can accelerate transmission development while preserving public oversight.