A presentation on the comparision of financial health of two major hydro projects of Nepal: Chilime Hydro and Arun Valley Hydro Power

1. Financial Analysis of Chilime and Arun
Valley Hydro
Presenters:
Anzu Koirala
Gaurav Ojha
Ram Neupane
Ramesh Aryal

2. Introduction of Hydropower
Development Policy in 1991 and
Electricity Act in 1993 opened new
avenues for private sector to invest in
hydroelectric projects

3. Chilime Hydropower
 Chilime Hydropower Company Limited (Chilime) was
incorporated in 1995 with an objective of hydroelectricity
generation through optimal utilization of resources within the
country.
 Located in Rasuwa district and it owns and operates 22.1 MW
power plant commissioned on August 25, 2003
 It sales bulk electricity to NEA at the long term Power
Purchase Agreement (PPA) price
 Chilime, through its three subsidiaries, is developing four
hydropower projects with aggregate capacity of 270.3 MW.

4. Arun Valley
 Arun Valley Hydropower Development Company Limited was
established in 1997.
 The company is converted into public limited company in August
2005. The company floated 30% of its share to public.
 It own Piluwakhola Hydropower Project (3MW).
 The company has signed Power Purchase Agreement (PPA) with
Nepal Electricity Authority on 23 January 2000.
 The company is also planning to develop multi-purpose projects
that will include any combination of hydro, irrigation, drinking
water, flood control, fishery, and so on.

5. Chilime Hydopower: A Financial Overview

6. Contd……
 Total financing cost of Chilime at the time of




completion of its project in Rasuwa was Rs 2.5
billion.
Rs 960 million was financed through equity
investment, rest of the amount was collected from
borrowings.
Paid back its loan within 3 years.
Now it has paid up capital of Rs 1.35 billion.
Is investing around Rs 7 billion in four projects
within the course of the next five years.

7.  Had made a net profit of Rs.777.43 million in fiscal
year 2009/2010.
 Again made a net profit of Rs. 843.14 million in fiscal
year 2010/2011.
 During the last fiscal year of 2009/2010 dividends
were not given..
 This fiscal year of 2010/2011 dividends of Rs.495.36
millions were paid away.

8. Share Ownership
Genaral
Public
49%
NEA
51%

11. Arun valley Hydro
Kabeli A: 25MW
Lower Phemekhola: 35 MW
Lower Pimuwakhola: 11MW
Upper Khimti: 12MW

12. Income Generation
Net Income
45
40
35
30
25
net income
20
15
10
5
0
2062/63
2963/64
2064/65
2065/66

13. Net Worth
Net Worth
250
200
150
net worth
100
50
0
2062/63
2963/64
2064/65
2065/66

14. Financial Indicators
Financial
Indicators
2062/63
2063/64
2064/65
2065/66
Net worth
per share
133.57
150.31
184.83
188.8
Earnings
per share
25.49
31.74
34
29

15. Company’s Capital Structure

16. Market price
600
500
400
300
market price
200
100
0
2065/66
2066/67
2067/68
2068/69

17. Comparative Analysis

18. 1. Profitability status
Profitability
ratio
Chilime
Arun
ROA
0.201
0.101
ROE
0.206
0.153
Profit Margin
0.95
0.52
2. Capital Structure
Rs.726.9 million of Chilime versus Rs.226.56 million of
Arun valley.

19. 3. Capital Composition
Both companies were established with 2/3 of debt but right now
only Arun Valley has the debt in the capital structure
4. EPS DPS and number of shareholders
Fiscal Year
Chilime
Arun
2065/66 2066/67
EPS
102
106
DPS
60
70
Shareholders 7.296m 8.256m
EPS
28.97
9.83
DPS
40
47.13
Shareholders 1.2m
2.401m

20. Thank you