Investment in hydropower lucrative

[THT]

development bank is taking charge of the financial management of the
34-MW Marsyangdi III Hydropower Project, and acting as a financial
consultant for the project, apart from being the trustee.

“Ace Development Bank will take charge of the entire financial
management of the project and will play the lead role of financial
advisor, fund manager and trustee for the project being developed by
Keton Hydropower Ltd, a subsidiary company of BPC,” Siddhanat Raj
Pandey, managing director and chief executive officer of Ace
Development Bank, said.

He added that Ace will raise approximately $78 million needed for the
project, from the domestic and international financial markets by
using ‘suitable financial instruments’.

Ace has designed ‘partially convertible debentures with embodied
option’ to raise the required capital. It believes that the instrument
will be lucrative for both domestic as well as international investors
to invest in. Such a model is the first of its kind in Nepal.

Ace’s hydropower initiative focuses on timely and intelligent
investment in the sector at a time when the country is passing through
a severe energy crisis.

al Oil Corporation (NOC), the sole supplier of the petroleum products
in the country, has been asking more money from the government and
government has time and again refused to provide cash to bail it out.
The government gave the cash-stripped NOC Rs 6 billion at different
times but the NOC is still in loss.

Nepal’s dependency on fossil fuel cannot be lessened without the
development of hydropower.

And the rising global oil prices have left us with no other remedy but
to shift the dependence from fossil fuel to hydropower.

Chilime Hydropower Company became the model hydropower project in
Nepal through mass participation and paved the way for more private
players to enter into the business. It is the first hy- dropower
company to be listed for share trading at the Nepal Stock Exchange Ltd
(Nespe).

However, the much-talked and appreciated Chilime model has not been
replicated, as there are only three listed hydropower companies in the
secondary market.

Read More: http://epaper.thehimalayantimes.com/
Date: Jul 10, 2008 / Agenda Page: 08

[Richard]

$78 million wow, this much of money need for a hydropower project. am
i not greedy to focus only on money. ya pretty much.
But i do also appreciate and salute ACe development bank for it's
effort for energy supply in this need of energy. many such projects
should be implemented because including me millions other nepali are
greedy to get energy.