Upper Trishuli 1 Dollar Exchange Risk Explained

While Nepal government is all set to organize another investment summit, Nepal Water and Electricity Development Company (Korean) has threatened to pull out from Nepal after the government asked it to contribute a hefty sum to a hedge fund to be used as a cushion against exchange risk. According to newspaper, the Korean company is ready to contribute only USD 5 million. I was curious if it is sufficient to cover the exchange risk.

West Seti Hydropower in limbo

It looks like another company is going to pack its bag. China Three Gorges International Corporation, the potential builder of West Seti Hydropower Project (750 MW), showed dissatisfaction over the Power Purchase Rate Policy proposed by Nepal Government. Storage project like West Seti is entitled to receive NRs. 12.40 per kWh and NRs. 7.10 per kWh during dry and wet season respectively.

PPA IN DOLLAR Too Little Too Late

At a time when the government has announced an ambitious plan to generate 20,000 MW of electricity within a decade, there is the need of a huge foreign investment to fulfill the objective. To lure foreign investment, there is the need to sign the PPA in dollars.

Foreign Investment Climate

All of a sudden Nepal has been bombarded by summits. In the past few months, different organizers have held several investment/infrastructure summits so hastily. The objective of those summits was to attract foreign investment in the country but the outcomes were not that satisfactory. However, ‘Investment Summit 2017’ organized by Investment Board, Nepal last week did draw world’s attention. Investors pledged a jaw-dropping FDI commitment of US $ 13.51 billion.

Panel endorses PPA in dollar terms

A sub-committee under the Parliamentary Public Accounts Committee has endorsed the government’s plan to sign Power Purchase Agreement (PPA) in US dollar terms with hydropower developers for a certain period, but raised question over some of such deals already signed.

Development partners vow to extend Rs 200 billion

The Asian Development Bank (ADB), along with other development partners, has promised to extend assistance of over Rs 200 billion for implementation of the action plan, ‘National Energy Crisis Prevention and Electricity Development Decade’, which was unveiled by the Ministry of Energy envisaging developing 10,000 megawatts of hydroelectricity within the next 10 years.

MCC to explore investments in power and transport sectors

Nepal and the US government have held talks regarding investment opportunities in energy and transportation sectors in Nepal.

The world is watching to see whether the returns compensate for 'political risk' of investing in Nepal

Nepal's small and medium sized companies have growth potentials but often lack capital and skills to invest. Dolma Impact Fund (DIF), which was founded in September 2014, is helping has been providing capital and expertise to such companies. It is the only international private equity fund focused purely on Nepal. It has so far raised US$ 26 million for the purpose. 

Lack of forex risk protection could dissuade hydro investors

Foreign investors, who pour money into country’s hydroelectric sector without assurance of foreign exchange (forex) risk protection, stand to incur losses to the tune of 26 per cent of project’s capital cost, says a latest report prepared by Deloitte, one of big four consulting firms in world.

PPA in US dollar is a hot debate again

Another committee has been formed to address the solution for PPA in US dollar after 14 months since the previous committee could not complete the task. PPA in US dollar is always a sensitive issue. The past experience of NEA regarding dollar PPA is horrible. This is the main reason why NEA and Nepal Government always hesitate to sign dollar PPA again.

InvestBank Acquires Equity Stake In Asian Hydroelectric Projects

LAS VEGAS, Sept. 1, 2015 - InvestBank Corp., the global investment bank headquartered in the United States of America, has acquired a 70% equity stake in the 440 MW Tila-1 hydroelectric project and the 420 MW Tila-2 hydroelectric project in the South Asian country of Nepal.

Belgian Investment Company (BIO) in Nepal.

Finally, Belgian Investment Company for Developing Countries (BIO) has entered into Nepalese hydropower.

U.S. Government Supports Expansion of Nepal’s Hydropower

The U.S. Embassy, through the U.S. Agency for International Development (USAID), today announced the launch of the Nepal Hydropower Development Project (NHDP). This five-year, $9.8 million project implemented by Deloitte Consulting LLP will support Government of Nepal efforts to expand the country’s access to modern, high-quality hydropower services and become an energy exporter in South Asia.

Energy sector attracts Rs54b in FDI pledges

With some landmark agreements over the last few years, energy has become the most lucrative sector in Nepal for foreign direct investment (FDI).

IndusLaw, Shearmans, Clifford Chance, Nepal firm on $140m hydropower financing

IndusLaw, Shearman & Sterling and Neupane Law Associates advised the Dutch development financing institution, FMO and a consortium of lenders on the $142.5m financing of the proposed 82 MW Nepalese Lower Solu hydropower project.

Nepal IPB approves development of hydropower projects

The Nepal Industrial Promotion Board (IPB) has approved the development of hydropower projects in the county.

MoI plans to declare FY 2015-16 ‘FDI Year’

KATHMANDU, JAN 01 - The Ministry of Industry (MoI) said on Wednesday it plans to declare fiscal year 2015-16 as the “Foreign Direct Investment (FDI) Year” to attract more FDI into the country.

New Foreign Investment Policy.

The Government of Nepal (GoN) is preparing to provide housing facility for investors investing more than US 1 million for the tenor of project operation. Such facility will be borne by Government of Nepal. To encourage foreign investment in the country, Department of Industry (DOI) has decided to add such provision in the foreign investment policy.

PDA talks for Arun III hydel project begin

KATHMANDU, NOV 05 - Project Development Agreement (PDA) negotiation for Arun III hydropower project started in Kathmandu on Tuesday. The talks between Investment Board Nepal (IBN) and India’s Satluj Jal Vidyut Nigam Limited will continue on Wednesday.

Chaudhary urges foreigners to invest in Nepal

President of Chaudhary Group Binod Chaudhary has urged international business leaders to invest in Nepal saying there is a high return in Nepal with minor risks.