Kathmandu: The Hydroelectricity Investment and Development Company Limited (HIDCL) has unveiled is planning to invest Rs 36 billion in the hydro sector in the coming five years.
Chief Executive Officer (CEO) of HIDCL Chhabiraj Pokharel said the company has sorted out the commercially viable projects with capacity of 3,238 megawatts for the next five years.
A meeting of HIDCL Board of Directors (BoD) headed by Secretary of the Ministry of Energy has already approved the projects as well.
HIDCL would invest Rs 5.9 billion in eight different projects to be developed by the private sector for the generation of 565 megawatt power.
CEO Pokharel said that the BoD has passed the investment proposal of Rs 16.21 billion in five projects to be developed by the Nepal Electricity Authority (NEA), its subsidiaries and other state-owned companies. Total capacity of the projects would be 640 megawatt.
Likewise, HIDCL is to invest Rs 14.46 billion in five other hydropower projects of 1033 megawatt capacity to be constructed by the private sector in the second phase.
HIDCL would invest in consortium instead of its lone investment.
Pokharel added that HIDCL has the objective to support the private companies that have suffered for lack of seed money for investment.
HIDCL has a total of Rs 10 billion in stock including the amount collected from the initial public offering (IPO). And, remaining other amount would be borrowed from the Employee’s Provident Fund, Citizens’ Investment Trust, Beema Corporation, welfare fund of the Nepal Army and others.
So far, HIDCL has invested Rs 42 million in Power Transmission Company, Rs 255 million in Remit Hydro and Rs 20 million in Electricity Generation Company in shares.
Likewise, preparations are on to invest Rs 15 per cent in share in Power Trading Company and Nepal Engineering Company each.
Similarly, HIDCL has invested Rs 4.63 billion plus in different projects including Misrikhola, Dordi, Lower Solu, Kabeli B-I, Lower Hewa and Super Dordi.
HIDCL is also holding talks with the promoters of five projects of 141 megawatt for investment. Pokharel shared that talks are on for the investment with the promoters of Upper Trishuli-III B, Solu Hydro, Lower Likhu and Nilgiri, Upper Myagdi.
The company is also planning to take 5 million US dollars in loan from the Asian Development Bank (ADB) and the amount would be invested for the development of hydropower projects.