Not to be confused, these projects are not my plan, some of them are already under construction and some in the pipeline. Mobilizing national capital (i.e from Banks, Cooperatives, EPF, Insurance companies, Public Investment Fund) is not enough to implement these projects. Successful financing of these projects demand foreign direct investment (FDI).
2 Models of Financing:
1)
Khimti HEP Model: Kimti was primarily financed by foreign investment only where investing company later became the owner of that project. Though the investing company became malamal, due to narrow and corrupt mentality of the then water resource minister, secretery and hakims Khimti model was a major failure given Nepal Electricity Authority is suffering huge loss (in millions) every year from purchasing electricity produced from Khimti.
2)
Chilime Model: Chilime HEP was financed, designed, managed and operated by nepali company. One of the best parts of this project is to include investment from local people (by providing them stocks). Doing that local people were financially benefited and also felt the sense of ownership (due to this they didn't made unnecessary demands and obstructions to project). This Chilime model is fairly successful compared to other HEP constructed in Nepal.
Chilime was a small size project (only around 22 megawatt) so less money was required. To construct megaprojects like West Seti, Budigandaki, heavy industries we can use this chilime model with FDI included in it. But the owner of any of these projects should be nepali company.
