The Confederation of Nepalese Industries (CNI), together with German Technical Agency (GTZ) and Winrock International, is going to organize the Hydropower Invest Mart (HIM) in Kathmandu later this month.
President of Confederation of Nepalese Industries (CNI), Binod Kumar Chaudhary, briefing the media on the ‘Hydropower Invest Mart 2006’ to be held from Jan 24-26, Sunday, Jan 08 05.
Addressing a press meet in Kathmandu on Sunday, president of CNI, Binod Kumar Chaudhary, expressed hope that HIM would be a match-making forum bringing together private sector power developers, financiers, investors and technocrats. He said the Mart was taking place at a time when Nepal was reeling through load-shedding.
Sridhar Devkota of the Small Hydropower Promotion Project, GTZ, said small hydropower was only a drop in the bucket but that every drop counted while talking of electricity. Suman Basnet of Winrock International (WI)—an INGO specializing in micro-hydro development, said a number of stakeholders would be involved in the Mart and are expected to take up some of the more attractive projects for financing.
Ratna Sansar Shrestha, a Chartered Accountant who is also affiliated to Winrock International, said Nepal had the liquidity of around 300 billion rupees in its financial system. “If only 5 percent of that money could be invested in hydropower sector, Nepal could herself develop power plants of up to 30 MW every year,” he said.
Shrestha said private sector financing in the hydro-power sector was still a comparatively new phenomenon around the world and that there was the need for Nepali financiers, including banks, to take up the idea of project financial without asking for individual or corporate guarantee.
According to officials, Nepal will need up to 100 million US dollar annual investment just to meet the domestic demand for power after 2008. Nepali banks have so far made an investment amounting to four billion rupees only in the hydropower sector. Experts say Nepali banks, however, have the capacity to invest up to US$ 20 million annually.
According to CNI, would-be investors from India are also expected to take part in the three-day Mart (January 24-26). The Mart will have technical sessions and will also showcase products and services of various organisations working in the small hydropower sector.
Considered to be the second highest in terms of hydro-power potential in the world, Nepal has so far been able to generate only 2 percent of its 43,000 MW of hydropower potential, according to studies.