AHPC to float 1:1 rights shares by mid-Falgun

ShareSansar, January 28:

Arun Valley Hydropower Development Company Limited (AHPC) will be floating its much overdue rights shares within Falgun at 1:1 ratio.

“Now that the SEBON has approved of the rights issue, we don’t want to wait for a single day more than the time taken to meet the statutory compliances,” a highly  placed source at AHPC told ShareSansar today. “Given the situation, the shareholders can expect the rights shares by mid-Falgun.”

AHPC had earlier intended to issue the rights shares by the month of Magh itself, but could not do so due to various reasons, including some comments from the SEBON.

Legally, however, AHPC can issue the rights shares within two months.

The fourth Annual General Meeting of the hydropower developer held two years back had endorsed rights shares.

Back in December end, ICRA Nepal had awarded Grade 3 credit rating to the rights shares of AHPC, which is not bad at all.

Once the hydropower company floats the rights shares, its paid-up capital would rise to 60.98 crore, up from the existing Rs 30.49 crore.

The money collected from the rights issue will go on to fund hydropower projects being constructed by AHPC.

The projects under AHPC are Piluwakhola Hydropower Project (3MW), Ridikhola hydropower (2.4 MW), Kabeli-B1 Hydropower(25MW), Upper Piluwakhola Hydropower - (11MW), Lower Phemekhola Small Hydropower (3.5 MW) and Upper Khimtikhola Small Hydropower Project (12MW).

Among them, Piluwakhola  and Ridikhola hydropower have been completed while the rest are in different stages of development.

Piluwakhola Small Hydropower Project is located in Sankhuwasava district in Koshi Zone. This is a run of river type project on Piluwa River, a tributary of Arun River. The power purchase agreement with Nepal Electricity Authority was completed in 2000 to supply 19.56GWh per annum. The construction of this project was started in March 2000 and completed in August 2003.

Ridikhola Small Hydropower Project is the second project developed and managed by AHPC.The project is located on the left bank of Ridi River, a tributary of Kali-Gandaki River in Gulmi district, Lumbini zone. This is the RoR type project with the installed capacity of 2.4 MW. The company has signed PPA with NEA on 24 August 2006 to sell 15.73GWh energy per annum. The construction work of the project was started on August 2007 and completed on August 2009.

Kabeli-B1 Hydropower Project, investigated at the left bank of Kabeli River at Panchthar district is a RoR type project, which lies upstream of Kabeli-A Project (30MW), a project studied by the government. The project is under the detailed feasibility study. Construction work of the project will be done soon after the PPA.

Upper Piluwakhola Small Hydropower Project (11 MW) is based on the Piluwa River. AHPC is the major shareholder of the project. The detailed feasibility study of this project has been completed and application has been applied to NEA for the PPA.

The company will build this project by utilizing the infrastructure facilities of the existing Piluwakhola Project (3MW). The projects powerhouse lies just upstream of the existing Piluwakhola Project (3MW) and the headwork lies at 4.5km upstream of its powerhouse site. The study showed that this project is one of the most attractive projects.

The next project of the company is Lower Phamekhola Small Hydropower Project investigated on the left bank of Phamekhola in Panchthar district. The company has obtained the Survey License from the government and DPR was completed in March 2010. The project is waiting for the PPA.

Himalayan Energy Development Company Pvt. Limited has investigated 12MW Upper Khimitkhola Hydropower Project on the Khimit River. It is also a RoR  type project in which AHPC holds 16 percent share of the power developer. The project has applied for the PPA and it is in the process of grid connection agreement. The project will go for construction soon.