Nepalese Society / NRN NCC Singapore held an interaction program with NRNA ICC President Mr Jiba Lamichhane on 5th September 2012.
Speaking on the occasion, the Honorary Consulate General of Nepal to Singapore , His Excellency Mr N M Swami highlighted the role of Nepalese NRNs for betterment of Nepal and requested Nepalese Society’s members to build it as a platform to achieve shared goals while serving Nepal and the Nepalese. He reassured that he will continue to provide assistance to several projects in Nepal , the Nepalese Society and Nepalese people in his professional and personal capacity.
NRNA President Mr Jiba Lamichhane shared the vision of NRNA in general and appealed to the Nepalese living in Singapore to engage in the NRNA activities and economic and social development of Nepal .
Speaking on the main agenda of the interaction program, NRN’s “Collective Investment”, Mr Lamichhane explained in detail the concept, goals, plans and preferred investment sectors, as well as touched on risks and benefits of the Collective Investment Movement.
Sharing his personal experience of investing in Nepal in sectors such as Banking, Hydro Electricity and Media, he highlighted that Power Sector (Hydro-Electricity) is a sector where the investment return is high, although not immediate.
He informed that the Government of Nepal has urged NRNs to take initiative to bring concrete investment in terms of fund, technology, skill and knowledge to several sectors. Highlighting that the NRN Act 2064 issued by the Nepalese Government has made it attractive for People of Nepalese Origin (PNO) and NRN’s to invest in Nepal, he expressed confidence that the Nepalese Government will address other teething issues faced by NRNs in due course.
Adding that the NRN’s should contribute to the economic development of Nepal, he urged the participants to consider making some investment in Nepal, according to personal preferences and comfort level, either through NRN’s Collective Investment Movement or through other means which they feel comfortable with.
Some of the key points reiterated by NRNA President Mr Jiba Lamichhane are:
- The environment is favorable for NRNs to make some investment in Nepal .
- NRNA being a social organization can not conduct business. Hence a separate investment company will be registered in Nepal . It will be a Public Limited Company. Proposed company’s name is “NRN Investment Company”.
- Promoter Shares shall be issued to anyone who wishes to invest minimum NPR 100,000 to maximum NPR 10,000,000.
- Anyone wishing to invest less than NPR 100,000 can invest as a group, under one name or a company.
- Companies registered by NRN/PNO’s in countries other than SAARC, are eligible to purchase promoter shares.
- Initial deposit of 25% of committed amount must be deposited to the proposed Investment Company’s bank account, which will be set up in October. Balance amount needs to be deposited in due course, when called for.
- Preferred investment sector identified is Hydro-Electric Sector.
- This sector is considered due to the load shedding problem Nepal is facing and the vast opportunity the sector offers to investors.
- Hydro-Electricity sector has Return on Investment (ROI) of 15-20% and pay-back period 5-7 years.
- Depending on the fund garnered, the Investment Company will invest in maximum 100MW Hydro Electricity Project.
- The investment company hopes to garner 30% funding for the project whereas 70% of investment shall be funded by financial loans.
- Since last year Nepal government along with Nepal Electric Authority agreed to timely review the power purchase agreement with several projects that are in pipeline.
- Produced power has huge domestic market (current production: 750 MW : Country demand: 2000 MW).
Some of the questions answers at the program are attached in the appendix
Earlier, welcoming the guests, Mr Dan Bahadur Shahi (NRN, ICC Representative from Singapore) expressed gratitude that Mr Jiba Lamichhane could visit Singapore and meet up with NRNs there.
President of Nepalese Society & NRN NCC Singapore, Mr Kishore Dev Pant, in his closing remarks, thanked all participants for lively discussion and hoped that direct interaction with NRNA President, MR Jiba Lamichhane would have cleared the air regarding the “Collective Investment Movement”. Advising that NRN NCC Singapore will form a collective investment committee shortly, he urged the participants and all Nepalese living in Singapore to consider investing a portion of their investment portfolio into Nepal.
The program was attended by about forty (40) Nepalese living in Singapore including the Management Committee members of Nepalese Society, NRN NCC Singapore, businessmen, professionals and students. The event was held at Gorkha Palace Restaurent, Chander Road, Singapore.
Nepalese Society/ NRN NCC Singapore
Questions and Answers
(Including Q&A at the first interaction program held in Singapore on 20 Aug 2012 by Nepalese Society / NRN NCC Singapore)
A. Is there a prospectus of the proposed public limited company?
- There is TOR and the concept paper on the internet, actual prospectus us not ready. Please visit the website which contains most of the information.
B. Who are the board of directors?
- It is not decided yet that the share holders will choose the directors.
C. Which projects have been identified as the viable Collective Investment Projects?
- The first project is to be a hydro project upto 100MW.
D. For hydro projects, what is the stage of the project (ie, dpr completed, waiting for financing, etc).
- We are collecting funds right now and depending on the size , government of Nepal will allocate a project to us. Current commitment is that they will provide a project of around 100MW.
E. Has NRNA signed PPA with the government?
- No not yet, but the government has promised to make around 100MW project to be available for NRN investment.
F. Is the hydrology report available?
-It will be available when the project is finalized.
g. What is the expected rate of returns?
- We are targeting anywhere from 15-20%, but the actual will depend on project to project base.
H. When is the Company registered?
- It is under the process of registration
I. Does NRN have any projects that provide short term benefits? (it seems public finance is seek only for projects that do not bear fruit in the short run, such as Hospitals, airlines, etc).
- Hydro power is the first project identified for now. Others will follow later.
K. Is this investment for all? Can we ascertain that we will get return?
- Every investment has risks associated with it, and depending on individual return expectations one should decide whether this investment is for him or not. Everyone is encouraged to invest in something for the mother land – according to his comfort level.
L. Can the Government of Nepal Guarantee the capital investment?
- There has been no discussion on this subject. Every investment is associated with certain risks.
M. Can a NRN repatriate his investment or dividends overseas?
- yes investment and dividends can be repatriated through legal channels.
N. Can a promoter share holder sell his shares?
- Promoter share holder can sell his shares to other promoters. If its not taken by other promoters, it can be sold to the public share holders.
O. Can a foreign registered company invest in the “NRN Investment Company?”
- Yes, a foreign registered company, reigistered by NRN’s or PNO’s can invest in NRN Investment Company.