IPO Overview of Api Power Company Ltd.

Api Power Company is constructing an 8.5 MW small hydropower (run of the river) project in Naugarh river in Dethala VDC of Darchula District. This river originates from the Api Himalayan range and is a subsidiary of Chameliya river. The electricity generated by the project shall be evacuated through a 33kV transmission line to the Balanch substation of NEA. A Power Purchase Agreement (PPA) was signed on 2067/01/19 (2nd May, 2010) with the NEA. According to the PPA, Api Power Company will be paid Rs.4 per kWhr in wet season and Rs.7 per kWhr in the dry season. The rates are to be escalated by 3% each year for 9 years. The Power Generation License has been obtained from the Ministry of Energy on 2069/03/31 which expires on 2104/03/30. The cost of the project is estimated to be Rs.1.4 billion of which 70% (Rs.980 million) is being funded through debt and the remaining 30% (Rs.420 million) through equity.   Click Here to view the detailed analysis of Api Power Company Ltd. (pdf format)