Butwal Power Company (BPC)

active

In October 2001, the government of Nepal invited offers for the purchase of its 75% shares in Butwal Power Compan (BPC), a state-owned company that operated two generation plants (5.1-MW Andhikhola and the 12-MW Jhimruk hydro power plants). In December 2001, Interkraft Nepal of Norway in partnership with Shangrila Energy of Nepal submitted the winning bid. No more public information about the tender and price offered paid. In January 2003, the winning consortium and the Ministry of Finance signed the sale and Purchase Agreement of 75% shares of GON in BPC. BTC had power purchase agreement with Nepal Electricity Authority. No information on that contract was publicly available. By end of 2008, Shangri-La Energy Limited owned 69% of BPC, Interkraft Nepal AS 6%, the general public 10%, and government institutions the remaining. BPC’s distribution business spread to four districts, Syangja, Palpa, Pyuthan and Arghakhanchi, continued to expand under the Rural Electrification Expansion Project. By end of 2008, BPC provided electricity to 31,500 households. Total cost of $30 million is an estimate.