Relative Importance of Risks in Hydropower Projects and Project Finance in Nepal

Hydropower is the sole internal source of electricity in Nepal. Since government policy private participation hydropower sector launched, Independent Power Producers (IPPs) have gained significant presence under Public-Private Partnership (PPP) model infrastructure development. Risk management crucial PPP projects as mishandling any risk threatens sustainability and may result project failure. This study analyses four major risks including Sector Specific Risks, Project Finance Financing Risks Country Political Legal Risks. Self-administrative survey utilizing questionnaire was conducted among IPPs domestic Banking Financial Institutions (BFIs). Relative Importance Indices been used to determine importance each item. Exchange rate changes, currency mismatch between local revenue foreign loan, cost time overrun, inflation, political turmoil highly volatile environment are few most critical found. For proper allocation stakeholders make bankable. Findings from this indicate no should be neglected relative allocating stakeholders. highlights assessment use RII process general particular.