BPC and ACE seal a financial deal on developing a hydro project

A leading independent power producer and a financial institution have closed a deal on financing a 34 MW strong hydropower project.

Butwal Power Company Limited (BPC) and Ace Development Bank Limited (ACE) reached an agreement, Wednesday, to develop the 34 Megawatt Marshyangdi III hydropower project.

"Keton Hydropower Limited, a subsidiary company of BPC, will develop the project. The project is based on Tarkhughat VDC of Lamjung District. The MOU was signed by the CEO of BPC, Mr. Ranjan Lohar and the CEO of Ace, Mr. Siddhant Raj Pandey on behalf of their respective companies," says a press release issued by the two companies.

According to the deal, the ACE will take charge of the entire financial management of the project and will play the lead role of Financial Advisor, Fund Manager, and Trustee.

It will raise around USD 78 Million from the domestic and international financial markets with suitable financial instruments.

"Ace has designed partially convertible debenture with embodied option to raise the required capital. It is believed that the instrument will be lucrative for both domestic as well as international investors to invest in. It will also be the first of its kind in Nepal's financial market," adds the release.

"Ace's hydro power initiative focuses on the hydro sector and provides a one window entire financial management facility for the hydropower projects of any size. Ace will pool a team of qualified professionals including hydro technicians, bankers, capital market specialists and network with domestic as well as international investors including global Venture Capital firms. It is believed that the initiative taken by Ace will fulfill the huge capital requirement for the domestic hydro sector to some extent." nepalnews.com sd Jul 09 08