Chilime Hydropower Company Limited (CHCL) was incorporated in 1995 with an objective of hydroelectricity generation through optimum utilisation of resources within the country. Nepal Electricity Authority (NEA) holds majority ownership of Chilime with 51 percent share holding. Similarly, NEA and Chilime employees own 25.5 percent shares of the company while the general public holds 14 percent shares of the company. The remaining 10.5 percent shares are owned by the locals of Rasuwa district where the project lies.
CHCL owns and operates a 22.1 MW power plant commissioned on August 25, 2003 and located in Rasuwa district, 133 km north of the capital city Kathmandu. NEA buys the bulk of the electricity produced by CHCL on the basis of a long-term Power Purchase Agreement (PPA) rate. The annual energy generation from the plant is about 150 GWh.
CHCL plans to develop four hydropower projects through its three subsidiaries - Rasuwagadhi hydropower Company Limited, Madhya Bhotekoshi Jalvidyut Company Limited and Sanjen Jalvidyut Company Limited. The aggregate capacity of these projects will be 270.3 MW. The company has expressed commitment to generate 500 MW of electricity by 2020.
Sanjen Jalvidyut Company Limited
Sanjen Jalvidyut Company Limited (SJCL) is a subsidiary of CHCL and was incorporated in March 2010 as a public limited company. SJCL has planned to develop two projects – 42.5 MW Sanjen Hydroelectric Project (SHEP) and 14.8 mw Sanjen Upper Hydroelectric Project (SUHEP) - in Rasuwa district. Both these projects are of the Peaking Run-of-river (PROR) type.
The company will manage the loan requirement of the project from the Employee Provident Fund (EPF) for which a tri-partite loan arrangement has been signed among EPF, CHCL and SJCL. The equity investment will be made through 51% promoter share and 49% public share. CHCL has 38% shareholding in SJCL.
According to the company, 55 percent of the construction work of SUHEP has been completed so far and the project is expected to start commercial production within the next one year. Similarly, the construction of SHEP, a cascade project of SUHEP, is also moving ahead at full speed, according to the company.
Madhya Bhotekohi Jalvidyut Company Limited (MBJCL)
It is also a subsidiary company of CJCL and was registered as a public company in July 2010. The company has planned to develop Middle Bhotekoshi Hydroelectric Project with an installed capacity of 102 MW in Sindhupalchowk district. The run-of-river (RoR) project will have three units with each unit having the capacity of 34 MW.
The PPA and financial closure of the project have already been completed.
According to the company, more than 25 percent of the construction work of the project has been completed so far.
A tri-partite loan agreement has been signed between EPF, CJCL and MBJCL. The equity investment will be made through 51% promoter share and 49% public share. Chilime is a leading company with 38% share.
Rasuwagadhi Hydropower Company Limited
Rasuwagadhi Hydropower Company Limited (RGHPCL) is also a subsidiary of CJCL and was incorporated in August 2011 as a public limited company. It has planned to develop a new project - Rasuwagadhi Hydroelectric Project (RGHEP) having capacity of 111MW in Rasuwa district. The cost of the project is estimated to be NRs. 13,684.20 million excluding the financial cost. A 50:50 debt-equity structure will be employed for financing this project.
The company will manage the debt requirement of the project from the EPF for which a tri-partite loan agreement has been signed between EPF, CJCL and RGHPCL. The equity investment will be made through 51% promoter share and 49% public share. CJCL has 33% shareholding in RGHCL.
Financial situation of CJCL
The company earned a profit of Rs 690.94 million in the third quarter of the last fiscal year (2016/17) which is 0.74 percent less than the profit earned in the same period of the previous fiscal year. CJCL distributed 10 percent bonus share to its shareholders from the profit it made in fiscal year 2015/16.
In the third quarter of the last fiscal year, CJCL's paid-up capital increased by 10 percent to Rs 3.44 billion. The company's paid-up capital was Rs 3.13 billion in the same period of the previous fiscal year. The company's earning per share stands at Rs 27.05 annually.