5 hydropower companies in pipeline to issue IPO

Initial Public Offerings of a string of public limited companies are in the pipeline.   There are five hydropower companies in pipeline to issue IPO.

Crowdfunding

The liquidity surplus situation with a very limited investment opportunity has made IPO a popular choice among investors.  Now it seems like it doesn’t matter what sector you throw in. Every IPO seems to be overwhelmingly oversubscribed.

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.

Hydropower promoter shares: A quick guide

I have been receiving tons of emails lately. People are asking me whether or not I should invest in promoter shares. Well, I don't want to list the projects here but a lot of hydropower companies are inviting general public to invest in promoter shares informally.
 

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.

Nepal government declares National Energy Crisis Reduction and Electricity Development Decade.

The government has declared a National Energy Crisis Reduction and Electricity Development Decade with the aim to end the existing energy crisis of the country by constructing ten thousand Megawatts in 10 years. Below is the gist.

Financial closure of Super Dordi Hydro

KATHMANDU: Nabil Bank has announced the successful arrangement of the largest loan syndication ever among banks in Nepal for a private sector led project under Nabil Bank’s leadership. 

Absolutely needed

It is the duty of government to provide basic infrastructures like electricity to its citizens. When government struggles to do so and invites private investors to join hands, it is absolutely necessary to reward them properly. Expectation of healthy profits by private sector is very natural.

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. 

Energy ministers’ new commitment.

The newly elected deputy prime minister and energy minister Mr. Top Bahadur Rayamajhi has recently expressed his verbal commitment to provide equal treatment between domestic (private), NEA's projects and foreign funded projects. Let's find out what additional benefits NEA and foreign funded projects are getting at the moment.

Dollar PPA: Reasons for and against it

In my previous post, I wrote about what we lose if we do "dollar denominated PPA for 15 years from COD for up to 55 percent of total payment." I concluded that Nepal ends up paying an additional amount of NRs. 71.16 million per MW.

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.