World Bank concerned over Butwal Power rights shares row

ShareSansar, Sept 20:

The World Bank has expressed concern over the rights shares that Butwal Power Company Limited wants to issue at 3:2 ratio.

The power developer has not been able to issue its rights shares for the last three years following a dispute between the government and United Mission to Nepal, a non-governmental organization.

The Commission for the Investigation of Abuse of Authority (CIAA) is investigation the case.

The World Bank now is concerned whether the power company can invest in the equity of the 37.6 MW Kaveli A hydropower Project if it cannot issue its rights shares, according to government sources.

The World Bank’s Nepal Manager Tahseen Sayed voiced this concern during her meeting with two joint secretaries at the Ministry of Energy, Anup Kumar Upadhyay and Keshav Dhoj Adhikari.

The multilateral donor is planning to invest in Kaveli A project.
“We assured her that Butwal Power Company will issue the rights share even if it does not issue the rights shares,” Upadhyay said.