NEPAL > The Magic Number – 25
The involvement of Nepalese private sector in hydropower generation is not so long ago. They were mainly involved in constructing micro and small scale hydropower. The largest hydropower project constructed through Nepalese investment is Chilime hydropower. The installed capacity is 22.1 MW.
In the recent times, Nepalese developers are moving towards 25 MW capacities. The shift in this trend is largely due to so many changes in Nepalese investment climate. A lot of financial instruments are introduced which contributes towards this changing scenario. Initial Public Offering (IPO) during construction is to name few of the instruments. Likewise, Bank and financial institutions (BFIs) are currently sitting on a big pile of cash due to a heavy increase in deposit mobilization without much expansion in loan advancement.
On top of that, developers have to go through same licensing procedures and face the same local problems regardless of the project size. This could be one of the reasons why developers are tempted towards relatively big size project compared to the past.
But interestingly, developers are reluctant to limit the project size to 25 MW. One of the reasons for not going bigger size project is the difficulties in arranging funds because bigger size project means larger investment. And the second reason is due to the government’s requirement and the pre-determined PPA rates. For a project up to 25 MW, there is a standard PPA rate, i.e. NPR 4.80 per kWh during wet season and NPR 8.40 per kWh during dry season. Also, Initial Environmental Examination (IEE) report is sufficient for project below 25 MW whereas Environmental Impact assessment (EIA) report is mandatory for project above 25 MW which is more costly and involves cumbersome process.
Below are the projects with a capacity of 25 MW or similar that have done the financial closure or at the final stage of financial closure and are under construction.
Upper Dordi-A Hydro Electric Project
Size:- 25 MW
Developing Company:- Liberty Energy Hydropower Pvt. Ltd (Mr. Kush Kumar Joshi)
Financial Closure:- Completed
For detail article please click (Rs 2.83b loan okayed for Upper Dordi hydro )
Kabeli B1 Hydro Electric Project
Size:- 25 MW
Developing Company:- Arun Kabeli Power Limited (Mr. Guru Prasad Neupane)
Financial Closure:- Final Stage
For detail article please click (FINANCIAL CLOSURE OF KABELI B-1 HYDROELECTRIC PROJECT (25 MW). )
Khare Khola Hydropower Project
Size:- 24.1 MW
Developing Company:- Consortium Power Developers Pvt. Ltd (Er. Lal Krishna KC)
Financial Closure:- Completed
For detail article please click ( Khare Khola Hydropower Project signs loan deal.)
Solu Hydroelectric Project
Size:- 23.5 MW
Developing Company:- Upper Solu Hydroelectric Company
Financial Closure:- Completed
For detail article please click (Upper Solu signs Rs 3 billion loan deal with consortium )
Mai Hydropower Project
Size:- 22 MW
Developing Company:- Sanima Mai Hydropower Limited
Financial Closure:- Completed
