Bhairahawa SEZ fails, repeatedly, to call tender bid for sub-station

Published On: June 27, 2019 04:30 AM NPT By: Rekha Bhusal

BUTWAL, June 27: The first Special Economic Zone (SEZ) of Nepal in Bhairahawa has not started a process to manage electricity for the production units even after a year of establishment of factories in the zone.

Construction work has not started for the proposed sub-station that was supposed to provide adequate electricity for the production units.

Although it has been planned to open a tender bid for the sub-station, the SEZ Authority has been deferring it showing technical reasons.

Arun Bhatta, an engineer at SEZ, said that because of lack of expertise, it was difficult to address the technical problems. "So, the tender process is getting delayed every time," he said, adding that the tender process will be completed within mid-July.

Bhatta also said that the sub-station will be completed within one year of the tender announcement.

One factory has already been established in the SEZ and it has already started production. Around half-dozen industrial units are in the process of establishment.

A 33 kva transmission line has been extended to the Dhakdhae area to supply electricity to the SEZ. The process to connect the transmission line to the SEZ is in the last stage. Under a project to strengthen and expand electricity distribution, the transmission line of Yogi Kuti-Dhadhae has been established at a cost of Rs 200 million. Even after the transmission line is connected, a sub-station should be established in the SEZ to supply electricity to the production units.

Only after the sub-station is made, electricity demand of the production units will be met. According to the SEZ officials, earlier the estimated cost was Rs 150 million, but it has now reached Rs 220 million, due to which the tender process has been delayed.

SEZ is a region which has liberal economic laws, adopted with the purpose of attracting foreign and national investors to invest and also establish industrial units for export promotion.


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