KOSEP to Construct Hydroelectric Power Plant in Nepal

Board approves an investment in the project

A consortium led by Korea South-East Power Co. (KOSEP) will undertake a project to build a hydroelectric power plant near the Himalayas in Nepal.
KOSEP's board of directors recently held a meeting and gave a green light on the investment in the Nepal Trishli-1 hydroelectric power joint development project involving Daelim Industrial, Kyeryong Construction & Industrial, and the International Finance Corporation (IFC).
The project will cost $524 million or 550 billion won, and the Asian Development Bank (ADB) will also participate in the project as a lender.
The hydroelectric power plant with a capacity of 216MW is to be located on the Trisuli River 70 km north of the Nepalese capital of Kathmandu.
The consortium partners will soon sign an agreement on the capital funding of a special purpose company for the project and the consortium will begin on basic design in April and complete the project by 2018. The project will be carried out over 35 years, including the construction period.
KOSEP, the biggest shareholder of the project with a 50 percent stake, will be responsible for the maintenance and operation of the plant. Daelim Industrial with a 15 percent stake and Kyeryong Con-struction & Industrial with a 10 percent share, will be charged with procuring necessary pieces of equipment and materials and the primary construction. The remainder will be held by the IFC and other financial investors.
Nepal is rich in hydroelectric resources, but it still remains untapped with a power development rate of only 2 percent. The country now buys electricity from its neighbor India to meet its needs.
A KOSEP official said the project is expected to reap stable profits with returns on stake investments averaging more than 18 percent a year for 30 years after completion.

MOU ON JOINT VENTURE FOR COAL-FIRED POWER PLANTS
KOSEP and KEPCO KPS have teamed up with PTC Energy of India to undertake joint ventures on the development of coal-fired power plants in India.
KOSEP President and CEO Jang Do-soo, KEPCO KPS President and CEO Tae Sung-eun, and PTC Energy Chairman T. N. Thakur signed a Memorandum of Understanding on the joint exploration of the Indian coal-fired power market at the KEPCO KPS headquarters in Bundang, Gyeonggi-do, on Jan. 10.
KOSEP President Jang said at the signing ceremony, "The three representative companies of the Korean and Indian power industries are very pleased to announce the full-fledged launch of their joint coal-fired power business in the Indian state of Andhra Pradesh." He expressed his hope that this project will not only contribute to the development of the Indian power industry, but also will become a model business practice of collaboration between Korean and Indian companies.
KEPCO KPS President Tae said the signing of the MOU will serve as a good opportunity for KEPCO KPS with its accumulated experiences in power operation and maintenance in India, KOSEP, which has the strength of operating power plants, and PTC Energy, with an advantage over power transactions, to have synergetic effects for shared growth by maximizing their respective strengths. The three companies standing side by side will do their utmost to make the Indian coal-fired power business a success, he added.
The PTC Energy chairman said the project will serve as a good opportunity to expedite the private sector's investments in the Indian power industry, and, to this end, his company will spare no efforts to provide cooperation and advice to KOSEP and KEPCO KPS.
KOSEP and KEPCO KPS signed an MOU on their joint exploration of the Indian power industry and business collaboration last October. nwperformance record.

KOSEP President Jang Do-soo is flanked by KEPCO KPS President Tae Sung-eun and PTC Energy Chairman T. N. Thakur as they sign an MOU on the joint exploration of the Indian coal-fired power market at the KEPCO KPS headquarters on Jan. 10.