Strategic options available for private power companies to enter into the hydropower sector of Nepal | |
| Author | Sharma, Pradeep Raj |
| Call Number | AIT RSPR no. SM-95-11 |
| Subject(s) | Water-power--Nepal Strategic planning--Nepal |
| Note | A research submitted in partial fulfillment of the requirement for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-95-11 |
| Abstract | The world wide strategic shift in the sector of energy is occurring. Developed as well as developing countries are increasingly involving the private sector in the electricity supply industry (ESI) that had been a public domain in the past. The main aim behind this strategic shift is to source the private funds, and improve the operational efficiency in the sector. The purpose of this study is twofold. First, the study tries to assess the applicability of Norwegian regulatory model in the ESis of Nepal and Lao PDR. Second, the private sector involvement policy of the governments of Nepal and Laos are analyzed leading to identification of important strategic aspects that needs to be observed by private sector companies while entering the electricity supply industry (ESI) in these countries. The analysis is mainly based on the policy and legal documents in the sector, views of the policy makers and the private investors, and the secondary published information from various sources. The Norwegian ESI evolved decentralized since its very inception that prepared the base for exposing the sector to competition among its various autonomous utilities. Whereas the centrally planned sector development philosophy in Nepal and Laos has lead to a single, huge, state owned electricity supply system in these countries. It is found that the Norwegian Regulatory Model has a very limited applicability in the existing ESis of Nepal and Laos. The centrally planned ESis being the major structural drawback of the system in these countries. Nepal and Laos both formulated the policy for private sector involvement in the electricity sector in the early nineties. Laos aims to earn foreign currency by developing hydropower with the help of foreign private companies and exporting the power to its neighboring countries. Access to the huge electricity market in Thailand strengthens the private sector involvement program of Laos. On the other hand, Nepal primarily aims to overcome the severe power shortage in the country by bringing the private funds to generate hydroelectricity. Though there is tremendous scope for Nepal to export power to India this has not materialized due to lack of the power export agreement on commercial principles. The overall climate for private sector participation in both of the countries is favorable though uncertainty is high in case of Nepal. The most important strategic aspects, that need to be observed and analyzed by private power companies, in case of Nepal are project and energy sales negotiation with the government, forming of strategic alliances and the target market selection. Whereas in case of Laos the most important strategic aspects are creating of an innovative project financing package, and forming of strategic alliances. |
| Year | 1995 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-95-11 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Swierzeck, F.W. ; |
| Examination Committee(s) | Hertzberg, Ellen ;Do, Ba Khang ; |
| Scholarship Donor(s) | French Government; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1995 |