NT bemoans lack of projects for investment

Despite having funds for investment, Nepal Telecom (NT) has been indecisive about investing on hydropower projects as Nepal Electricity Authority (NEA) has failed to present its prioritized projects to the largest telecom operator in the country. The two government-owned entities have signed a Memorandum of Understanding (MoU) to go hand in hand in developing hydropower projects. As per the agreement, both the entities have agreed to develop hydropower projects to be developed by NEA as 50-50 equity partners.

NT has already agreed to invest Rs 6 billion on Upper Tamakoshi Hydro Electric Project with the installed capacity of 456 MW, which is expected to complete by 2014. Likewise, NT and NEA have also agreed to develop Trishuli 3B project on partnership basis. Apart from these two projects, NEA hasn't presented other projects to NT.

NT has allocated Rs 10 billion for investment in hydropower sector in five years. Of the stipulated amount, NT still has Rs 4 billion to invest in hydropower projects. NT had decided to invest in hydropower sector as a part of its policy of maximizing profit and diversify its investment. "Our fund meant for investment in hydropower projects has remained idle as NEA is yet to approach us with feasible projects," Buddhi Prasad Acharya, deputy managing director of NT, said.

Along with NT, Employees' Provident Fund, Citizen Investment Trust and Rastriya Beema Sansthan have agreed to invest Rs 12 billion, Rs 2 billion and Rs 2 billion respectively in the Upper Tamakoshi project, which is being constructed with domestic investment. However, Diwakar Poudel, director of finance at NEA, said NEA has already presented the projects presently at their hands to NT. "At present we only have Trishuli 3B as a cascade project of Trishuli 3A. Most of the hydropower projects are licensed under Department of Electricity Development. It is not that we are keeping projects in our hands," he added.

NT has a paid-up capital of Rs 15 billion and its net worth has reached Rs 41 billion as of fiscal year 2007/08. On the other hand, NEA has accumulated loss of Rs 12 billion as of 2007/08. "Since both the organizations are state-owned, it would be easy for us to forge investment partnership with NEA," Acharya added.
Source:Republica