In an interesting update, Nepal Ministry of Energy, Water Resources and Irrigation (MoEWRI) is gearing up to come up with a modality that allows general public to buy hydro power projects’ primary shares on an installment basis.
Following Energy Minister Barsha Man Pun’s directions, the state-owned Hydro-electricity Investment and Development Company Limited (HIDCL) created the scheme to welcome maximum people’s participation in the development of these government projects.
According to the scheme, people can now buy shares by paying 10 percent of the original cost at the initial public offering. The remaining amount can be paid in a 50:40 ratio where 50 percent will be paid prior to 80% of construction progress and 40 percent has to be paid when the project is almost due for completion.
“If the public is allowed to make investments this way, the financial burden will be less, and a larger section of the population can invest in such projects. Also, the people will feel that their investment is secure as they will be making payments in installments based on the progress of construction works,” Therefore, we came up with this scheme,” says Chhabi Raj Pokharel HIDCL CEO.
In the meantime, HIDCL has shortlisted 19 government-owned projects that need public investments including 725 MW Upper Arun, 450 MW Kimathanka Arun, 101 MW Tamakoshi-5 and 48 MW Bheri Babai Diversion Multipurpose projects.