Some Basic Points for Developing a Concept Note
Proposed Title
Sector/ Industry
Subject Area
Objectives of the research
Research Question(s)
(if any)
What would you like to find
out from the research?
Rationale/Background/
Justification
Why have you chosen this
topic?
Methodology
How are you going to carry
out your research?
Examining Profitability of Hydropower Projects in Nepal
Hydropower Development, Construction and Operation
BUS 550 - Financial Management, BUS 623 - Financial Institutions, Market
and the Economy, BUS 624 – Investment Analysis and more
To explore the existing profitability of investment in hydropower sector
and to investigate ways to make hydropower sectors more investment-
worthy and investment-friendly.
Hydropower projects in Nepal have been the centre of attention in
financial sector because of their poor ability to repay its investors. The
sector, also, has been performing poorly in stock market consistently. This
paper intends investigate how hydropower development takes place in
other countries, analyse the fundamentals of hydropower projects to find
out how good or how bad hydropower projects are doing and finally point
out what provisions can be made, for example, establishing a dedicated
regulatory body, or offering some tax-related exemption in policies, or
changing modality in which hydropower projects are built, etc. so as to
make hydropower project perceived positively in eyes of investors.
As an employee of a company that develops hydropower in Nepal, I am
exposed to both the possibilities and the challenges associated with the
sector. I have observed, through my years of employment that
development of hydropower sector in Nepal is beneficial to the country;
however, the sector has had a bad reputation when it comes to repaying
their investors. Being a student of finance has made me curious regarding
what wrong is being done, which has rendered hydropower sector
unattractive for investors, so that recommendations can be made
regarding the same.
 Nature of data, information you will be using
The research will mostly rely on secondary data since
collection of primary data in regards of financial and physical
aspect of hydropower sector is not practicable. If the validity
of the data is doubtful, it will be cross-referenced with
multiple sources.
 Source of data
1. Annual Reports and financial statements of Nepali
hydropower developer companies
2. Annual Reports of Class A and Class B Banks in Nepal
3. Publications of Nepal Rastra Bank, Ministry of Energy, Water
Resources and Irrigation and other governmental and
regulatory bodies
4. Research articles published in peer reviewed journals within
and outside the country
5. Books published
  How will you analyze the data?
1. Statistical and graphical analysis
2. Qualitative analysis
 Presentation of the data
1. Description of present condition of hydropower
development, source of investment and regulation in the
sector
2. Examination of an different models of foreign country
regarding hydropower sector
3. Presentation of recommendation based on the analysis of
preceding two points.
Expected Outcome It is expected that the current financial and technical model in
What is the outcome that which hydropower is developed is defective. Financially, the
you anticipate? hydropower development companies are highly leveraged in nature
and therefore, the first and foremost obligations of those companies
are to repay the loans owed to the bank. With neither investment
nor regulation from government, the hydropower development
companies tend to fall victims of unaccountability. Technically, the
only run-of-river type small projects are made, which makes
hydropower development fussy and devoid of any impact.
References