Khimti Khola Hydropower Project

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The $125.7 million, 60-MW, Khimti Khola Hydropower project is being developed by Himal Power Ltd (HPL), a joint venture between three Norweigen companies-- Statkraft (38%), ABB Kraft (5%) and Kvaerner (5%) Energy--and the Butwal Power Company (BPC) (29%). BPC is 75% owned by the government of Nepal and 25% owned by the United Mission to Nepal, a cooperative of 39 Christian organization from 18 countries. The International Finance Corporation (IFC), Asian Development Bank (ADB) each have a 9% stake in the project with local investors having the remaining 5% share. The Khimti Khola project, located approximately 100km from Kathmandu in the east of Nepal, involves diverting a 10km stretch of the the Khimti Khola River and then discharge it into the larger Tama Koshi River. Statkraft Anlegg AS, a subsidiary of Statkraft will undertake the main civil works. Statkraft Engineering, another subsidiary of Statkraft, is responsible for project management during the implementation period. ABB and Kvaerner are the equipment suppliers. A 75-km, 123-kV transmission line to connect to the national grid, constructed by the Nepal Energy Authority (NEA), is not included in the project cost. The Khimti project is notable in being one of the first private power plants in Nepal. The IFC and ADB are providing debt financing, and exercised an option to convert subordinated debt into equity. Financial closure was reached on June 20, 1994. A 20-year power purchase agreement was signed with the NEA. Average tariffs in Nepal are NRs 2.86 or $0.078. The project is being built on a 50-year BOOT basis. 50% ownership in Himal Power Limited (HML) will be transferred to the NEA at the end of 20 years with no charge. At the end of the 50 years license period, the remaining 50% interest in HML will be transferred to the NEA, also at no cost. In its fiscal year 1996, MIGA coverage totaling $32.8 million insured the equity investments of Stratkraft SF, ABB Kraft SF, and Kvaerner Energy AS in Khimti Khola Hydropower Plant against currency transfer, expropriation, and war risks. The plant began generating electricity in July 2000 and officially opened in January 2001. In 2007 SN Power had a 50.4% voting share in Himal Power Limited (HPL)In 2008, two of the minority shareholders, GE Energy (Norway) AS and Alstom Norway AS, decided to divest their shareholdings in HPL. Consequently, SN Power increased its ownership stake to a 57.1% voting share from Oct. 1, 2008. In November 2008, the project was granted a survey license to expand the project with 50MW. The project was at early feasibility stage. http://www.miga.org/screens/projects/guarant/regions/ap02/bkk.htm http://www.snpower.com/projects-and-plants/plants-in-operation/khimti/default.aspx