IFC to Invest $3m in Upper Trishuli-1 Hydel

International Finance Corporation (IFC) has subscribed $ 3 Million equity Nepal Water & Energy Development Company (NWEDC) for development of Upper Trishuli Hydropower project. With this, IFC has officially become a shareholder of NWEDC, states a press release from NWDEC. This amount translates into 15 per cent equity in the company. NWEDC Pvt Ltd is a special purpose vehicle company established for the development and generation of 216 MW Upper Trishuli-I Hydroelectricity project.

 

The World Bank Group member IFC is one of the largest global development institutions and focuses exclusively on the private sector in developing countries. IFC subscription will cover the cost to be incurred for lender’s engineer, Cumulative Impact Assessment (CIA), panel of expert along with others, the press release mentions. IFC will invest a total of 15 percent of the total equity for Upper Trishuli-I Hydropower project that will be utilised to enhance and expedite its development works, NWEDC said. K-Construction, a Consortium of three Korean Companies: Korea South East Power Company (KOSEP), Daelim Industrial Company Ltd and Kyeryong Construction Industrial Company Ltd, holds 75 per cent of the equity investment. The consortium has already started injecting in equity portion, states the press release. 

 

The Upper Trishuli-1 project is expected to complete by 2019. After completion it will generate and supply around 10 per cent of total electricity of the country. The project access road construction has been intiated and the company has already acquired private land required for developing the project. Along with that the company has leased necessary land from the government too, for the project license period.

 

The project is making preparations to acquire Guthi land and has already signed leasehold agreement with Department of Forest for cutting and removing necessary trees from the leased government property. Presently, construction of camp facilities and access road bridge over the Mailung river are underway, a press release issued by NWEDC said on Sunday. Along with that the project has initiated process to procure and use explosive materials in the project area. The project aims to employ around 500 people during the UT-I project construction stage and will hire around 50 operations and maintenance staff after the project construction is completed.

 

Presently the company has been working on concluding PPA, PDA and other paper work so that it could commence the project construction. Established in 1956, IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world.

 

EPF’s Interest in Hydropower Sector

Employees Provident Fund (EPF) has decided to invest Rs 26 billion in five different hydropower projects that will jointly generate a total of 726.3 MW electricity. Confirming the investment, Krishna Prasad Acharya, Administrator of the Fund, said that EPF decided to investment in hydropower after apprising the sector secure and productive. “Investment in infrastructure development sector will have a sustainable impact on national economic growth,” he said adding, “Investment in this sector is profitable as well as productive in the long run.”

 

The EPF has decided to invest in Upper Tamakoshi (456 MW), Rasuwa Gadi (111 MW), Bhotekoshi (102 MW), Upper Sanjen (14.8 MW) and Sanjen (42.5 MW) hydro projects, he informed. “Out of the total allocated amount, around Rs 3 billion has been used those four projects,” said Kailash Bhakta Karrananjeet, Chief of the Department of Investment and Treasury Management at the EPF. The meeting of the board of directors of the fund has approved the projects.  EPF has also invested in SL Hydropower Project, through Hydropower Investment and Development Company’s promotional shares and joint-finance process.

 

Chilime’s 295pc Cash, 100pc Stock Dividend in 10yrs

Chilime Hydropower Company Ltd has distributed 295 per cent cash dividend and 100 per cent bonus to its shareholders within a 10-year period. This information was provided during the 17th Annual General Meeting (AGM) of the Company held last October 1. During the programme, Chairperson Arjun Kumar Karki spoke of the company’s plan to make itself a leading hydropower company in Nepal. “We are building four hydropower projects in four years of 270.3 megawatt total capacity,” he said, adding that the company could distribute additional dividend after the completion of the projects.

 

According to the company, it has already managed the fund for these projects The AGM also endorsed the proposal to distribute 30 per cent bonus shares and 10 per cent cash dividend this year. “We have decided to distribute the bonus to manage funds from shareholders for upcoming projects,” he said. The company has said it will increase its paid-up capital by distributing bonus shares every year. The company has Rs 1.75 billion as paid-up capital until the Fiscal Year 2012-13. With the distribution of 30 per cent bonus shares, the paid-up capital reaches Rs 2.30 billion.