Upper Tamakoshi gets share holders

Nepal Electricity Authority (NEA) on behalf of Upper Tamakoshi Hydropower Company Ltd today signed an agreement with Nepal Telecom (NT), Citizen Investment Trust (CIT) and Rastriya Beema Sansthan (RBS) to share 30 per cent of the total cost of the project.

Of the total project cost, the remaining 70 per cent will be loan.

According to the current equity structure, NEA will have 41 per cent, NT six per cent, RBS and CIT two per cent each, depositors of Employees Provident Fund (EPF) 20 per cent, locals of Dolakha district and public 10 per cent each, employees of Tamakoshi Hydroproject and NEA six per cent and the employees of the lending agencies will get three per cent shares.

However, the equity structure will be changed as according to Securities Board of Nepal’s (Sebon) new regulation, a hydropower company must float atleast 15 per cent shares to public.

“We have started consultation with the regulatory authority of capital market Sebon on the equity structure of the public,” said managing director of the Hydropower company Bhojraj Regmi. “Within a week, we will reach loan agreement with lending agencies.” The EPF, NT, RBS and CIT are lending the 456-MW hydroproject except being involved as a shareholders.

The EPF is lending Rs 6 billion, NT is lending Rs 6 billion, RBS and CIT Rs 2 billion each and the government is lending Rs 11.8 billion to the indeginous hydropower project.

“We are happy to be a part of mega project that is being constructed with domestic capital and technology,” said NT managing director Amar Nath Singh speaking on the occasion.

CIT executive director Rishiram Gautam said that the funding in hydro project is a part of CIT’s diversification in lending.

“Most of the CIT’s funds are with banks and financial institutions,” he said adding that this opportunity has provided the CIT to diversify its funds.

The 456-MW Upper Tamakoshi hydropower project is said to be cheapest hydro project as its estimated cost comes to Rs 35.29 billion, if it is completed on time. “On time completion of the project is a must,” RBS administrator Binod Aryal said adding that otherwise the project cost will go up making the cheapest hydropower project expensive. The project is also estimated to be completed by 2014-15.

NEA executive director and chairman of the Tamakoshi Hydropower Company Ltd Dr Jeevendra Jha asked the EPF, NT, RBS, and CIT to sign the lending agreement at the earliest to expedite the hydro project.

According to the NEA, Tamakoshi Hydropower Project will contribute to 66 per cent of the total installed capacity of the nations power projects and 73 per cent of the total energy that NEA has currently.