Hydropower Development & investment company: Much hyped govt scheme culminates in registration
KAHMANDU, JUL 11 -
The much talked about Hydropower Development and Investment Company was formally established on Sunday, with the government registering the company at the Company Registrar’s Office (CRO).
The government has opened its office in Tahachal, Kathmandu, which originally was the office of the Nepal Trust.
Energy Secretary will be the chairman of the company’s board, while other board members include representatives from the Finance and Law Ministries, Financial Comptroller General Office (FCGO) and Nepal Rastra Bank (NRB).
The Ministry of Energy (MoE) on Sunday wrote to the secretaries of the Finance and Law Ministries and FCGO to select a joint secretary each as board members. The MoE also wrote to the NRB governor to select a deputy governor as the member of the company.
The company initially will have a paid-up capital of Rs 10 billion with the government and stateowned institutional investors investing Rs 8 billion and the public putting in Rs 2 billion after its initial public offering (IPO).
Given the country facing actuate power shortage over the last few years, especially during winter, the government decided to establish the company so as to finance hydropower projects. The government, in its policies and programmes, had said about the establishment of such a company.
“The company will invest in hydropower projects after studying the due diligent audit report of hydropower developers concerned,” said Balananda Poudyal, secretary at MoE.
According to him, it will generate resources from international financial institutions and the domestic market by issuing various instruments, including bonds. “It may also accept big deposits by taking approval of the central bank,” he said, adding that foreign aid that comes for the private sector development may also go through this company.
The company, as per it’s memorandum of article and the article of association, will invest in hydropower projects bigger than 25MW. It may invest in the projects even through existing banks and financial institutions under refinancing measures.
A Cabinet meeting on July 6 decided to allocate Rs 5 billion for the company with Rs 2 billion each from MoE and Finance Ministry and Rs 1 billion from Law Ministry. Employees Provident Fund (EPF), Citizens Investment Trust (CIT) and Rastriya Beema Sansthan have pledged share investment of Rs 1 billion each to make promoters stake in the company at Rs 8 billion, according to officials.
The institutional investors said they agreed to be the promoters as its memorandum of article and the article of association are convincing in terms of business, and there is a provision of appointing the chief executive officer of the company through free competition.
“We decided to invest in the company as the government assured us that it would not make investment by lowering interest compared to the current market rate,” said Ramesh Bhattarai, administrator of EPF. EPF’s board on July 6 had decided to invest 10 percent of the company’s paid up capital. “We are confident that it will be the best company in terms of profit making,” said Bhattarai.
CIT chairman Chandramani Adhikari also made it clear that the CIT board approved Rs 1 billion investment for the company.
Source: Kantipur
The much talked about Hydropower Development and Investment Company was formally established on Sunday, with the government registering the company at the Company Registrar’s Office (CRO).
The government has opened its office in Tahachal, Kathmandu, which originally was the office of the Nepal Trust.
Energy Secretary will be the chairman of the company’s board, while other board members include representatives from the Finance and Law Ministries, Financial Comptroller General Office (FCGO) and Nepal Rastra Bank (NRB).
The Ministry of Energy (MoE) on Sunday wrote to the secretaries of the Finance and Law Ministries and FCGO to select a joint secretary each as board members. The MoE also wrote to the NRB governor to select a deputy governor as the member of the company.
The company initially will have a paid-up capital of Rs 10 billion with the government and stateowned institutional investors investing Rs 8 billion and the public putting in Rs 2 billion after its initial public offering (IPO).
Given the country facing actuate power shortage over the last few years, especially during winter, the government decided to establish the company so as to finance hydropower projects. The government, in its policies and programmes, had said about the establishment of such a company.
“The company will invest in hydropower projects after studying the due diligent audit report of hydropower developers concerned,” said Balananda Poudyal, secretary at MoE.
According to him, it will generate resources from international financial institutions and the domestic market by issuing various instruments, including bonds. “It may also accept big deposits by taking approval of the central bank,” he said, adding that foreign aid that comes for the private sector development may also go through this company.
The company, as per it’s memorandum of article and the article of association, will invest in hydropower projects bigger than 25MW. It may invest in the projects even through existing banks and financial institutions under refinancing measures.
A Cabinet meeting on July 6 decided to allocate Rs 5 billion for the company with Rs 2 billion each from MoE and Finance Ministry and Rs 1 billion from Law Ministry. Employees Provident Fund (EPF), Citizens Investment Trust (CIT) and Rastriya Beema Sansthan have pledged share investment of Rs 1 billion each to make promoters stake in the company at Rs 8 billion, according to officials.
The institutional investors said they agreed to be the promoters as its memorandum of article and the article of association are convincing in terms of business, and there is a provision of appointing the chief executive officer of the company through free competition.
“We decided to invest in the company as the government assured us that it would not make investment by lowering interest compared to the current market rate,” said Ramesh Bhattarai, administrator of EPF. EPF’s board on July 6 had decided to invest 10 percent of the company’s paid up capital. “We are confident that it will be the best company in terms of profit making,” said Bhattarai.
CIT chairman Chandramani Adhikari also made it clear that the CIT board approved Rs 1 billion investment for the company.
Source: Kantipur
