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The Independent Power Producers’ Association, Nepal (IPPAN) has urged hydropower companies to make available their shares at the face value of Rs 100 per share to the local residents affected by the projects.

At a time when promoters of a number of hydropower companies have been considering issuing the primary shares to local people only at premium prices, the umbrella organization of private energy producers expressed its serious concern over the issue in a statement.

“As per Sub-rule 4 of Rule 9 of the Securities Registration and Issuance Regulations, 2016, legal provisions have been made to provide 10 percent shares with the aim of benefiting the locals, and IPPAN cordially requests all members to do the same,” the statement said.

“Hydropower projects are not only a means of investment but also a development campaign based on trust, cooperation and partnership with the local community,” IPPAN stated. “The arrangement of shares for local residents has been made for providing land during the construction of the project, tolerating environmental and social impacts, bearing the inconveniences during the construction period and directly supporting the successful implementation of the project.”

The IPPAN in its press statement has said that it believes providing shares to local residents at face value will make them real partners in the project, enhance their sense of ownership and belonging towards the project, reduce social disputes and obstacles during the construction and operation of the project, strengthen cooperation and collaboration at the local level and create a conducive environment for the timely completion of hydropower projects.

The umbrella organization also ensured that local communities will have the opportunity to benefit from the projects in the long run, which will also contribute to economic empowerment, local development and social harmony.