Kathmandu-American investment has returned to Nepal’s hydropower sector after a long hiatus. The Department of Industry reported seven major investment commitments in the first two months of the fiscal year, including a hydropower project with American investment.

The Himalayan Energy Company, registered in Okhaldhunga with 55 percent American and 45 percent Nepali investment, pledged Rs 1.524 billion to build an 8.6 MW hydropower project.

American investment in Nepal’s energy plans has been limited for decades. Panda Energy invested in the Bhotekoshi Hydropower Project in 1998 but exited in 2006, leaving about five percent American ownership.

The project began production in 2001 and operates under a 25-year power purchase agreement with the Nepal Electricity Authority. Electricity is sold at a rate of 1 rupee 62 paisa per unit, one of the cheapest in Nepal.

The company is owned and managed by the prestigious Sipradi Group, with Siddhartha Shamsher Rana as its executive chairman.

Among the US-invested power projects in Nepal, Likhu-1 (77 MW), Likhu A (33.66 MW), and Likhu-2 (60.5 MW) are currently operational.

All three projects were built in partnership between the US company Mogha Energy and the Dugad Group of Nepal. The founder of Mogha Energy, Samarath Mogha, and the Dugad family also have family ties.

According to the latest report of Nepal Rastra Bank, Nepal has direct foreign investment from investors from 60 countries. The total amount of which has reached Rs 332.97 billion.

Of this, US investment is 13.82 billion rupees.