Practical approach to get involved in Nepalese hydro for foreign investors

Department of Electricity Department (DoED) issues the survey license in first come first basis. Almost all the projects that are feasible technically and economically have been acquired. So the best practical option is to either do partnership with the local developer or to buy the project by paying lump sum amount to the developer. There is no universal method for determining the rate of the project as it largely depends on the project itself, project status and negotiation skills. However, Super Six projects can be taken into account for the basis. Government of Nepal awarded six projects to Nepalese private developers through competitive bidding in 2010 for the first time which is know as “Super Six”.

Details regarding fees, tenure, taxation policy, royalty, VAT and custom

Here are some details regarding the fee structures and tenure of licenses.

No PPA in US dollar for the time being: Energy Minister

Minister for Energy (MoE) Radha Gyawali has said Nepal Electricity Authority (NEA) has stopped signing power purchase agreement (PPA) in US dollar.

Cash incentive instead of tax discount for hydroprojects

The government is preparing to give cash incentive at a time when the private sector has been demanding tax discount in development of infrastructure projects including hydropower projects.

FINANCIAL CLOSURE OF KABELI B-1 HYDROELECTRIC PROJECT (25 MW).

A consortium of banks led by Nepal Investment Bank Limited (NIBL) has approved a NPR 2.80 billion loan for the development of the Kabeli B-1 Hydroelectric Project (25 MW) in principal. The signature of loan agreement will take place within two months after clearing few formal procedures.

Hydropower needs foreign investment

KATHMANDU, June 19: Harnessing hydropower is a national priority. There´s no two ways about it. But on the subject of how to finance hydropower projects, the opinion is divided. Should we bring foreign in investment or can our own banks and financial institutions (BFIs) finance the projects?

Need for geniune Private Placement Company in Hydropower Development.

Private Placement can expedite the hydropower development in the country. Here are the two recent examples of mine where I am working as a consultant.

Don’t panic, NEA tells hydel projects that are going to be constructed in Kabeli Corridor

Nepal Electricity Authority (NEA) has assured the construction of the Kabeli Corridor transmission line project will complete before the completion of hydropower projects along the corridor.