Feedback on draft constitution by IPPAN

Independent Power Producers' Association, Nepal (IPPAN) has submitted the feedback on "Preliminary Draft of New Constitution, 2015" to Subash Chandra Nembang, chairman of Nepalese Constituent Assembly. Here are the feedback.

Is it just a mere coincidence?

In recent time, Rs. 160 million per MW has become a rule of thumb. Any project above Rs. 160 million per MW seems to be less attractive. Thus, Rs. 160 per MW can be regarded as a threshold for the current PPA rates with a design discharge of Q40%.

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.

Demand, problem and criticism of private sector

Private sector (domestic and foreign) has done a commendable job. It has been generating hydro-electricity for twenty years. Now, it contributes about 35% of the total hydro-electricity. The rest comes from the government that started generation more than 100 years ago. Many major projects initiated by private sector are underway.

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).

Lurking in the shadows of the earthquakes.

Several hydropower projects that were affected by the powerful April 25 earthquake are now repairing the damages. While the physical damages are getting rebuild slowly, hydro business is about to face some more obstacles.

Breakthrough or anit-national?

There are no export oriented projects in operation as of now. But the PDA with GMR (an Indian company developing 900 MW Upper Karnali project) is suddenly in the limelight. Some experts are claiming to be an anti-national deal while others calling a breakthrough.

Earthquake tremors felt in hydropower share price is slowing down.

The market, which opened on 24^th May, 2015 after remaining closed for almost a month after the April 25 earthquake continued to lose points for the first week. Of the nine trading groups, hydropower saw a massive decline as expected.

NEA did it again.

NEA has recently signed PPA with Nyadi Hydropower Limited, a subsidiary of Butwal Power Company (BPC). Nyadi Hydropower Limited is developing a 30 MW project in Lamjung district. According to the press release, NEA will buy energy at NPR 4.80 and NPR 8.40 per kWh during wet and dry season respectively. The developer is entitled to get three percent escalation for eight years.

Insane sweat equity by our private hydropower developers.

It requires a tremendous amount of time, money and effort to reach the project at operational level from inception. So many risks along with a deep fear of uncertainty always exist. These risks have to be borne by the developers. 

Hydropower Development Policy, 2001

Hydropower Development Policy, 2001

Locally constructed projects vs. foreign/multilateral funded projects

In a quest to find out how foreign investors work, I managed to find out some striking statistics that completely blew me away. Here is a comparison of “Locally constructed projects vs. foreign/multilateral funded projects.”

Earthquake damages over dozen hydropower projects

Generation of 150 MW affected

Earthquake aftermath and ways to move forward.

Mother Nature can be destructive.

Nepal is dealing with a catastrophic damage after the massive 7.8 magnitude earthquake. Thousands of people died and millions are now homeless. Nepali officials fear the death toll may rise above 10,000. Thousands of homes and buildings, including historical landmarks, in Kathmandu have been leveled up. 

Income Tax Act

The Financial Act, 2011 (formerly the Income Tax Act 2002) addresses the charges, taxes, duties, and fees relating to revenue administration of the GON.

Income Tax Act  Download the pdf version

Water Resources Act

The Water Resources Act, 1992 was established to promote the optimum utilization, conservation and development of Nepal's water resources, including surface water or underground water, and to make timely legal arrangements for determining beneficial uses of water resources, preventing environmental and other hazardous effects, and keeping water resources free from pollution.

Water Resources Act Download the pdf version

Foreign Investment and Technology Transfer Act

The Foreign Investment and Technology Transfer Act, 1992 was formulated to promote the maximum mobilization of limited capital to increase the competitiveness of Nepal's human capital and natural resources. The act was amended and enacted in August 2000.

Foreign Investment and Technology Transfer Act  Download the pdf version.

Company Act

The Company Act 2006 was amended and enacted in August 2007. The act aims to foster dynamic economic development by promoting investment in industry, trade and business. Download the pdf version.
Company Act 

Electricity Act

In order to develop electricity power by its generation, distribution as well as to standardize and safeguard the electricity services, the Electricity Act 1992 has come into force since then.

Electricity Act Download the pdf version.

Foreign Investment and One-window Policy

The Foreign Investment and One-Window Policy, was formulated in 1992 in order to increase private sector participation and generate additional opportunities for income and employment, particularly in the area of industrial production. The policy aims to increase productivity by importing foreign capital and modern technology management and skills to increase the competitiveness of Nepalese industries in international markets.

Foreign Investment and One-window Policy Download the pdf version