Investment Opportunities

[To...Top of Page, Invest in LEDCO, Invest in Nyadi, Invest in Khudi, Invest in Syange]  

Development agencies have come to agree that private enterprise is one of the most effective means of guaranteeing the sustainability of projects. LEDCO is a new concept in Nepal - a community based profit oriented company with a strong social mandate.  

LEDCO offers four investment options:  

1. The first is in LEDCO itself. This will be of interest to individuals and small organisations as the level of capital sought is relatively small.
    
2. The second is in Nyadi Hydropower Ltd. (NHL), the company developing the 20 MW Nyadi small hydro scheme. It is envisioned that investors, power companies and engineering firms interested in the Nepalese energy sector, as well as development agencies will be interested in becoming involved in this project. 
3. The third is in Khudi Hydropower Ltd. (KHL), the company developing the 3.4 MW  Khudi small hydro scheme.
   
4. The fourth is in Syange Electricity Corporation (SECO), the company developing a grid-connected mini hydro plant. The Project having installed capacity of 183 KW has been in Operation Since last three years .
   Investing in LEDCO

LEDCO has been set up to develop the energy resources of Lamjung District while providing a reasonable return to its shareholders. Even though the people of Lamjung have invested heavily in the company, the scope of developing a project the size of Nyadi is beyond their collective financial capacity. It is therefore essential to attract external investors. Since the amount LEDCO is raising through its share offering is relatively small, LEDCO is focussing on attracting individual foreign investors. At present US$200,000 of shares are available to foreign investors.  

Some of the advantages for investing in LEDCO are:  

• The value of the shares should increase significantly once financial closing occurs and LEDCO receives a finders fee of 6% of construction costs. 
• A steady stream of dividends shall be realised once production of electricity commences and will continue over the lifespan of the project. 
• By investing in LEDCO, individuals are using their investment capital to foster the creation of wealth in an environmentally sustainable manner in a developing nation. The impacts of the Nyadi project will include a reduction in the dependence on fossil fuels, an increase in employment, and a reduction in the rampant deforestation presently threatening the hill environment. LEDCO’s activities in rural electrification will have a direct impact upon poverty alleviation, improved local economy, access to communication and improved education. An investment in LEDCO will ensure this continues. 

[To...Top of Page, Invest in LEDCO, Invest in Nyadi, Invest in Khudi, Invest in Syange]  

Investing in Nyadi Hydropower Limited (NHL)

LEDCO is seeking partners to develop the Nyadi 20 MW hydroelectric project. LEDCO envisions at least two partners investing either in cash or through services to NHL.  

The Nyadi Project is driven by the pressing demand for electricity. The current and rapidly expanding demand for electricity both within Nepal and India provides, and will continue to provide, a solid market for the power produced by Nyadi during its project lifespan.  

A long term Power Purchase Agreement (PPA) with either the NEA will guarantee a market for the electricity produced during the life of the project. The technical simplicity of the run of the river design will facilitate a timely and cost effective construction phase. Furthermore, since LEDCO is owned by the local community, the support of local groups is guaranteed. These factors greatly mitigate the risk to investors.  

The advantages of investing in Nyadi Hydropower are:  

• A good return on investment at little risk; 
• A footing in the energy sector of Nepal with only a small investment; 
• An opportunity for in kind equity investments; 
• Investment in an ethically and environmentally sound project; 
• Increasing the capacity of private enterprise in the energy sector of Nepal. 
• Supporting local initiatives in developing their own resources. 

Investing in Khudi Hydropower Limited (KHL) 

Investing in KHL has similar advantages as investing in NHL. However, it is scheduled to begin construction sooner, involves less capital and has a lower construction cost per kW as it has nearby road access.

[To...Top of Page, Invest in LEDCO, Invest in Nyadi, Invest in Khudi, Invest in Syange]  

Investing in Syange Electricity Corporation (SECO) 

LEDCO has successfully completed the construction of Syange Project (183KW) and is presently selling the power to NEA.

The Syange project represents one of the cheapest and quickest projects that has been built in Nepal, with extremely attractive low risk returns. In addition, local investors are encouraged to buy all the shares of overseas investors during the first 5 years of operation, which limits the risk for the overseas investor as well as maximising the return for local investors. The project is cheap because it taps a 50m high waterfall with only minimal civil works required. Similar sites exist in hundreds of locations around Nepal, and it is hoped that this project will be the start of many more in the future.

[To...Top of Page, Invest in LEDCO, Invest in Nyadi, Invest in Khudi, Invest in Syange]

How to invest

To invest in either LEDCO, NHP or KHP, or for further information, please contact:  

• Devi Bahadur Thapa, General Manager
  or Dikendra Kandel, Chairman, Board of Directors 
  Lamjung Electricity Development Company 
  P.O. Box 5926 
  Kathmandu, Nepal 
  Telephone: 977-1-4414519
  Fax: 977-1-4427013. E-mail:ledco@ntc.net.np

To invest in Syange, or for further information, please contact:  

• Devi Bahadur Thapa, General Manager 
  or Dikendra Kandel, Chairman, Board of Directors 
  

For more information, please contact our ledco office in Kathmandu.
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