Shares of Nepal’s 456-MW Upper Tamakoshi hydropower plant will soon be offered in part on the public market, HydroWorld.com has learned.
The initial public offering — worth approximately US$97.5 million — will be managed by Citizen Investment Trust (CIT) and issued in two phases through the current fiscal year.
The first phase of shares floated will be worth about $67.7 million, according to developer Upper Tamakoshi Hydropower Limited (UTKHPL). These shares will be offered exclusively to residents of the Nepal’s Dolakha District and employees of lender agencies, including Nepal Telecom, Employees Provident Fund, Rastriya Beema Sansthan and CIT.
UTKHPL said the remaining shares will then be offered to the general public.
The $664 million project is about 40% complete and should be generating power by May 2015, according to UTKHPL. Full operation is expected to being in March 2016.
The Upper Tamakoshi is located on the Tamakoshi River — one of the major tributaries to the Sunkoshi River in the Koshi River Basin near Nepal’s northwestern border with Tibet.
UTKHPL is an autonomous company established by the Nepal Electricity Authority (NEA).
The project is one of several revealed by Nepal’s Finance Minister Baburam Bhattarai in September 2008 as part of a government initiative to increase the country’s hydroelectric capacity by 10,000 MW by 2018.