Non-Resident Nepali Association
3rd NRN APAC Regional Meet 2013, Manila
Hydropower Investment in
Development of Nepal
Rameshwar Shah
Vice President
Non-Resident Nepali Association, International Coordination Council
Background:
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10 years of Diaspora
3.2mn NRN’s in over 100 countries, over 90% in Foreign
Employment
$5bn Remittance, >92% used in domestic cause
Emerging Need for overall economic development.
NRN’s voice for Collective Investment
NRB Governor formed High level TF in January 2011 to
identify the GAP in law and recommend amendment in
legal provisions to allow NRN’s to bring investment
collectively.
“for NEPALI by NEPALI"
Background:
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High Level TF recommendation to the NRB and SEBON.
5TH NRN Global Conference confer investment in 100MW
hydropower project in Nepal by NRN’s.
ICC decision to pursue Collective Investment
NRNA Executive started Collective Investment campaign in
various countries and regions using their global network
“for NEPALI by NEPALI"
The Investment Company:
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NRN’s formed an Investment Company in Nepal in
September 2013
Some 785 investors, including 3 FDI and 4 local company
subscribed for nearly Rs. 1bn investment
25% of the commitment amount was called and received
ending Feb 2013.
Some 18 hydropower project was identified and analyzed
NRNIL acquired 51% stake in 27MW Dordi Khola
Hydropower Project in Lamjung.
“for NEPALI by NEPALI"
Dordi Khola Project: 27MW
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4 years Project period, 142.32GWh Energy, 4.3bn project
cost, IRR 13.1%, RoE 16.9%, Simple Pay back <6yrs.
Project work is continuing, DPR is expected end May.
Land acquisition work is going on.
Banks are engaged, financial closure is expected mid July.
Interaction Program and project site visit are organized.
Nepali media are keenly covering project progress update
situated under Dordi Khola corridor.
Our web site can be visited for the. The site link is:
http://nrnil.com/index.php?option=com_content&view=article&id=94&Itemid=478.
“for NEPALI by NEPALI"
NRNIL work update:
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Necessary appointments such as: BOD, MD, Auditor, CS,
office staff are done. Office is working smoothly.
Engineering and Consulting Team selection in process
Team is working on to get share lagat certified from ROC
Issuance of Share Certificate to the investors in process.
NRNIL team is continuously working with government
authorities and hydro engineering consulting team to
secure other projects which will aggregate to 100MW.
All un-invested money has been kept under call account.
This now earns some 9% interest annually, the return.
“for NEPALI by NEPALI"
The Strategy:
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Government has cancelled some 672 hydropower project
licenses recently.
Many more license cancellation is on the way…
This is to invite and facilitate real investors in Hydropower
sector instead,
“Jhola ma Khola ko satta khola bat bidhyut”
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We have taken strategy to go for fresh licenses.
This is to avoid possibility of unsupported expense and/or
premium payment.
“for NEPALI by NEPALI"
my Perspective:
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In my perspective, Hydropower is the best sector for all
type of investors. It’s a risk free investment!-HOW??
संसारको सबभन्दा अप्ठे रो काम भनेको उत्पादन बबक्रिनैहो, तर
नेपालको जलविधत
ु एकमात्र एउटा यस्तो क्षेत्रहो जसको उत्पाद
बबक्रिको ननश्चितता उत्पादन हुनु अगाबैनै तय हुनेगरे को , अर्ाात ्
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Guaranteed Revenue
Government subsidy: Tax and Custom Rebate
Long term return-30 years
Easy financing- prioritized sector, must finance senario, low interest
rate.
“for NEPALI by NEPALI"
Thank you…
æg]kfnLsf nflu g]kfnLÆ
“for NEPALI by NEPALI"