IPO of Ngadi Group Power Limited

Ngadi Group Power Limited is the next hydropower company that is going to be listed in Nepal Stock Exchange. Here is my sincere opinions regarding the company, its project and speculated share price when listed in Nepal Stock Exchange.

Impact of dollar PPA when Nepali Rupee is depreciating at an alarming rate.

No sane foreign investor will invest in Nepal's hydro without dollar PPA. It is crystal clear. 

Reality check

The border blockade that strangled Nepal’s fuel supply has pointed out the need for energy security. A lot of articles have been published on the newspaper advocating the importance of hydropower construction for the self sufficiency. By reading the suggestions and recommendations made by our experts, it creates a sort of illusion to me. The path to transform this energy deficit country into a surplus country seems very easy. 

New directive for hydropower licensing

Government of Nepal is preparing a new directive for hydropower licensing related to the projects that are in government’s basket. There are 210 hydropower projects with a total capacity of 10,125 MW, according to Department of Electricity Development (DoED). These projects are actually the cancelled hydropower projects. They were previously developed by government, foreign investors and local developers. One of the main reasons for the cancellation was the failure to meet the deadlines.

Central Banks’ new directive and its impact on hydropower financing.

Nepal Rastra Bank NRB (Central Bank of Nepal) has increased the capital requirement by four times for the commercial banks (NPR 8 billion from NPR 2 billion). The decision to increase the paid up capital within two years is not only applicable for commercial banks but also for development banks and finance institutions.

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.

High time to use water resources to reduce Nepal’s dependence on India

Finally, the much-awaited constitution is with us. This could be the end of the political deadlock that we have been facing for decades. Most of us, including me, are hopeful that this constitution will bring peace and prosperity.

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.

Unwillingness of NEA

The unbundling of NEA has started. But it is now facing a problem from its employees. The formation of National Transmission Grid Company (NTGC) which is planned to sort out the entire problem in transmission line is not getting support.

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.

No wonder NEA records a net loss again‏

The fiscal year 2071/72 is over and the financial statements from various companies are arriving every day. 

ADB plans to fund 3 power projects in Nepal

The Asian Development Bank (ADB) has said it plans to finance three major power projects — two hydropower plants and a new Nepal-India cross-border transmission line — in the next few years.

The two hydropower storage-type projects are the 300 megawatt Dudh Koshi Hydropower Project and the 410 megewatt Nalsing Gadh Hydropower Project.

Doesn’t look cheap as it seems.

HIDCL is expecting to get $50 million soft loans from ADB. I had been to HIDCL recently and met the high ranking officials to discuss their plans regarding the ADB loan.

United Modi Hydropower Limited: IPO analysis.

United Modi Hydropower Ltd. is a registered public limited company established under the companies Act 2063 of Nepal, with an objective of promoting hydropower in Nepal through private investment.

Madhya Bhotekhoshi Jalavidyut Company Limited

Madhya Bhotekoshi Jalavidhyut Company Limited (MBJCL) is a subsidiary company of Chilime, registered as public company in july 2010. MBJCL has planned to develop Middle Bhotekoshi Hydroelectric Project (MBKHEP) with an installed capacity of 102 MW in Sindhupalchowk district of Central Development Region.

Singati signs funding pact

KATHMANDU, AUG 08 - Singati Hydro Energy on Friday signed an agreement with financial institutions for the construction of the 16MW Singati hydropower project based at Waware of Dolakha district.

Belgian Investment Company (BIO) in Nepal.

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

Sanjen Jalavidhyut Company Limited

Sanjen Jalavidhyut Company Limited (SJCL) is a subsidiary of Chilime and was incorporated in February 2010 as a public limited company. 

Rasuwagadhi Hydropower Company limited.

The company has aimed to develop Rasuwagadhi Hydroelectric Project having capacity of 111 MW. It is located in Rasuwa district, Bagmati Zone of Central Development Region. The project is accessible by the Kathmandu -Trisuli - Somdang road at a distance of 130 km to the north of Kathmandu to reach to Syabrubesi and then around 16 km from Syabrubesi to the project site at Rasuwagadhi. A 50:50 debt-equity structure will be employed for financing this project.

Nagarjun Trip

Starting point:- Near Balaju Baaisdhara- roughly 1,350m above sea level.