Partners: DFID’s AIIN Project
Client: NEA
Sector: Electricity, Financial
Project Duration: 2021

VRock is advising Government of Nepal (GoN) and Nepal Electricity Authority (NEA) on managing foreign exchange risk arising out of FDI financing. We have sensitized various GoN agencies on foreign exchange risk, potential losses and available risk management strategies. We have proposed short term and long-term risk management alternatives that are expected to yield significant results in terms of increased FDI investments in the country. We are developing a hedging mechanism that NRB can utilize to mitigate Foreign Exchange Rate Variation (FERV) risks for the investors.
VRock is also working closely with NEA to develop its Corporate Development Plan which will instill a culture of accountability and result-orientation. The plan contains enterprise-wide and cross cutting initiatives that are expected to transform the entity into a modern, efficient, and customer-centric utility.

We are currently advising and assisting the Ministry of Energy on the implementation of a 216MW hydropower project. The Government of Nepal (GON) and the project developer signed a concession agreement in December 2016, which embodies the principles of a Public and Private Partnership (PPP) framework with both parties having obligations and responsibilities to fulfill to ensure timely implementation of the project. The parties have also agreed on a target of achieving financial close within six months of the Agreement Date. We are providing technical and commercial assistance to the Ministry of Energy to fulfill its obligations under the agreement and institutionalize a Project Implementation Unit within the ministry. VRock is advising the Government in balancing the benefit to the state and commercial implications as a result of Power Purchase Agreements (PPA) signed under US dollar terms.