Chilime
hydropower, the high priced hydropower company at Nepal Stock Exchange had
decided to issue 23, 04,000 units ordinary share to public at premium of Rs.
323.70 from 15th June 2009 (2066 Ashad 1). Chilime which was established with
the national investment and capital (no international funds) has total capacity
of producing 20MW electricity. Nepal
Electricity Authority is the highest shareholder of Chilime with 51% of
holdings followed by 25% by its employees which has already been listed in
secondary market. However, the issue to public was allocated to only 24
percent.
Just
a day before the issue of ordinary share, the Supreme Court issued a notice to
withheld the IPO of Chilime after the case filed from the locals of Rasuwa
district appealing the company did not allot shares to local people as per the
earlier agreement. The company had decided to provide 5% of total public issue
to the locals lower than their demand of 8%. Since from the period, the IPO of
chilime that has congregate the interest of many investors shutter down in
absence of thorough provision on the issue.
After
more than seven months of IPO halting, Securities Board of Nepal (SEBON)
revised the existing provisions in the Securities Registration and Issue
Regulations by altering five percent cap on allotment of public shares to local
people in hydropower and manufacturing projects excluding financial
institutions.
> According to Lila Nath
Bhattarai, managing
director of Chilime, SEBON had recommended increase in the stakes of local
people in the project to 10 percent. "This is a good decision" and
possibly would open door for issuing IPO. However, the provision is under the
super vision of Ministry of Finance."
I believe that, the
IPO of Chilime might come within this month of Chaitra if everything goes well. However, it depends upon the MOF
when will the amendment on provisions comes into existence. Nevertheless, the
ministry of finance have assured us to pass the ordinance very soon and opened
us the door to issue public share, he further added.
In
a questioned asked, how much percent of share will Chilime give to the local
peoples after the pass of ordinance, he replied, previously SEBON rule
restricted us to exceed 5% share to locals which was below their demand of 8%.
But, if once the ordinance comes in to action, we will certainly resolve the problem
and issue shares to public as soon as possible.
Short Glimpse of
Chilime (source: Chilime website)
Chilime
Hydropower Company Limited (CHPCL) is a subsidiary company of NEA with 51%
equity ownership. The Company was established in 1996 with the objective of
promoting the utilization of resources within the country for the development
of hydropower. Chilime Hydroelectric project with installed capacity of 22.1 MW
and located at Rassuwa district was built and commissioned by this Company on
August 25, 2003 (2060/05/08 BS). The Project is now in fifth year of commercial
operation. The project has delivered 528.63 GWh of electrical energy to NEA
since August 2003. In FY 2006/07, the project was successful in delivering
104.5% of the Contract Energy to NEA.
CHPCL
is now executing four more hydroelectric projects which are at various stages
of development. The feasibility study of two projects, Upper Sanjen
Hydroelectric Project (11 MW) and Sanjen Hydroelectric Project (35 MW) have
been completed and application has been submitted for the power purchase
agreement (PPA) with NEA. Both of these Projects are located upstream of the
existing Chilime HEP. Local people in the project area are very eager to
participate in the implementation of these projects. A Letter of Intent for
financing in Upper Sanjen HEP has already been received from citizen Investment
Trust. Construction of these two Projects will be started as soon as the
construction license is issued by the Ministry of Water Resources.
CHPCL
has also completed the feasibility study of Middle Bhotekoshi Hydroelectric
Project (80 MW) located in Sindhupalchowk district. Local people of
Sindhupalchowk distric and other organization will be participating in the
development of this project. CHPCL has Feasibility Study License of Rasuwagadi
Hydroelectric project (75 MW) in the Rassuwa District. CHPCL is committed to
develop more of medium and large scale hydroelectric projects in future with
greater participation from various sector in the country. |