Nepal host a High-level meet to woo investment in hydropower

High-level meet to woo investment in hydropower

MUKUL HUMAGAIN

Marking a resurgence of efforts after a three-year hiatus, a high-level international symposium in Kathmandu to woo foreign investment in hydropower and inform potential investors of Nepal’s policy and regulatory environment.

The Nepal Energy Investors Forum (NEIF), jointly organised by the government and the Asian Development Bank (ADB), is the first high profile seminar on hydropower after the Power Summit was discontinued.

Three editions of the Power Summit have been organised in the country from 2006-08 in association with the Independent Power Producers Association Nepal (IPPAN) and Power Trading Corporation (PTC) India.

What makes the NEIF different from past initiatives is that it is being organised amid a sense of reluctance among potential foreign investors to put money in Nepal’s power sector due to a series of disturbances and lack of a stable regulatory framework.

The forum is being seen as a government effort to assure foreign investors that an investment environment strongly exists in the hydropower sector.

According to Energy Secretary Balananda Poudel, the NEIF will be a multi-stake forum where the government will present its initiatives on hydropower development and the opportunities available.

“The government wants to reiterate that there is still an investment environment in Nepals hydro power developments ,” said Poudel.

The forum will highlight recent policy initiatives introduced by the government to create a competitive, attractive and business-friendly environment for private sector investment in hydropower. It will also showcase a shelf of hydropower projects available in Nepal for private sector  investment. According to Poudel, there will be also sharing of experiences of international best practices during the forum.

Unlike past events, this two-day meet has drawn the interest of investors and bankers from Europe. Among them are Guarant Co, an insurance company from the UK, and two development finance institutions, FMO from the Netherlands and DEG from Germany. In addition, there will be participants from India, China, South Korea, Thailand and Canada.

Two Chinese companies—Sino Hydro Corp Ltd and Dongfang Electric Corporation—will also be attending the NEIF. Sino Hydro has a presence in Nepal as a contractor for the Kulekhani 3, Upper Tamakoshi Hydropower and Sikta irrigation projects. Dongfang has been supplying equipment to medium and small hydropower projects. “The presence of these two at the forum shows they are now keen on hydropower development,” said one senior official at the Energy Ministry. The participation of two Korean companies—Korean Water Resources Corporation and Daelim Industrial Company Limited—reflects a resurgence in Korean interest in Nepal’s hydro sector.

Independent Power Producers (IPPs) have welcomed the government’s initiative to invite and assure investors. “The initiative on the part of the government is quite welcome,” said Sandip Shah, country manager for SN Power.

However, the government will not find it easy to convince potential investors amid disturbances in some hydel projects and delayed power development agreements (PDA). “The government will have to answer investors’ grievances regarding the GMR issue and delays in PDA and construction of cross-border transmission lines,” said Shah. “It’s been almost 19 months that the PDA has been lingering.”

Nepal host a High-level meet to woo investment in hydropower

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