Project Description

The goals of NHDP are to expand access to modern, high quality hydropower services for the citizens of Nepal and to realize the potential for Nepal’s hydropower exports in South Asia. The project will accomplish this by facilitating private sector investment in hydropower resources in Nepal in an environmentally and socially sustainable manner. In addition, the project will support the restructuring of the electricity sector to create viable, efficient national power services and promote expanded electricity trade between India and Nepal.

The expected long-term results of the NHDP Project are:

• Improved economic growth, job creation, and quality of life.
  
• Strengthened economic relationships with Nepal’s neighboring countries, and improved balance of payments due to electricity sales.
  
• Greater energy security due to enhanced domestic generating capacity and integration with the Indian market.
  
• A lower carbon generation future for both India and Nepal
  

Background on Setting up the Electricity Regulator

In March of 2017, a bill for an act (the ERC Act) to establish the Electricity Regulatory Commission of Nepal (the Commission) was introduced in the Parliament. On 11 August, Parliament passed the bill by acclamation. On 4 September, the President of Nepal signed the bill into law. It entered into force on December 4, 2017. As provided in the ERC Act, the Commission’s functions will include:

• Technical management
  
• Tariff Setting
  
• Maintaining competition in the electricity market and protecting the interests of consumers
  
• Enhancing organizational capacity
  
• Advising Government
  
• Examining and inspecting; and 
  
• Resolve Disputes.
  

Objective

NHDP’s support has been pivotal in setting up the Electricity Sector Regulator in Nepal. In the remaining duration of the project, NHDP will assist the Regulatory Commission in its initial Stand-up phase. The Electricity Sector Financial Specialist will support NHDP on financial analysis work required in the stand-up phase in the Regulatory Commission, in addition to supporting other NHDP counterparts and workstreams as required. He/she will work directly with the Chief of Party (COP), Regulatory Specialists, as well as other team members and, will communicate findings to clients including USAID.  

Deliverables, Tasks and/or Outputs

Key responsibilities include but are not limited to:

Hydropower Development Tasks: 

• Support the Chief of Party (COP), Senior Energy Sector Restructuring Specialist and Senior Financial Advisor(s) as well as other team members with their work and deliverables; Support financial analysis of hydropower projects. Support the Financial Advisors to build financial models of the projects. Support COP in the construction of financial models and analysis necessary for IBN, NEA and MOE to evaluate economics, financing & feasibility of proposed energy projects & impact on Nepalese power sector. 
  
• Support the development of cost benefit analyses on, the financial impact of proposed sector-wide reforms. For example, he/she will help to analyze the effect of unbundling on NEA’s operations, plus the potential for new HPP supply arrangements to support lifeline tariff programs for vulnerable communities - thereby enabling the GON to select options that are financially sustainable and have a net positive impact
  
• Meet with IFIs such as the WB, IFC, DFID, KfW & ADB to understand their positions and requirements to invest in HPPs. Work with team to convene investors and institutions to identify ways of minimizing transaction risks, including improving the enabling environment for cross-border power evacuation
  
• Work directly with team members to advise and train IBN on findings across listed tasks
  
• Perform capacity building on deal structuring and financial analysis of PDAs for IBN, Ministry of energy and potentially NEA.
  

Regulation Related Tasks: 

• Support the Chief of Party and Regulatory Specialists with their work and deliverables
  
• Study and analyze the financial and commercial aspects, to assist the Commission in its regulatory responsibilities;
  
• Assist the Commission and the Utility(ies) in the preparation/review of tariff models for generation, transmission and distribution of electricity
  
• Assist the Commission in assessment and quantification of the impact on tariff, presumably energy charges; 
  
• Assist the Commission in the due diligence and prudence check of inputs for Utilities, such as cost of plant & machinery, transportation, taxes and duties etc. and any other related aspects
  
• Assist the Commission in the due diligence of project documents including contract documents;
  
• Assist the Commission in the investigation of any matter permissible under the Electricity Act, 2049, Electricity Regulatory Commission Act, 2074 and as assigned by the Commission
  
• Assist the Commission in the preparation of fact sheets of cases, Record of Proceedings, interim orders/ orders etc.;
  
• Assist the Commission in the scrutiny of Petitions with terms of the checklist, issuing deficiency statements, correspondence with parties for compliance, registration of petitions, processing petitions for listing, preparation of cause list for hearing, issuing notices of hearing and related works
  
• Work directly with team members to advise and train the Commission on findings across listed tasks
  
• Perform capacity building on tariff modeling and financial analysis of rate cases for the Commission and NEA

Deliverables may include:

• Summary reports on work
  
• Contributions to project deliverables
  
• Financial models
  
• Presentation materials for formal trainings 
  

Qualifications/Requirements

The Electricity Sector Financial Specialist should have the following qualifications: 

• Minimum of five years’ relevant professional experience  
  
• Minimum of three years working in the electricity sector
  
• Experience and understanding of electricity sector functioning under-regulated environment and the electricity tariff setting process either in the South Asian region or in other developing countries is preferred
  
• Minimum of Bachelor’s degree ( Master’s degree preferred) in the areas of finance, economics, or business or other related fields
  
• Experience in working with USAID, International Financing Institutions, Regulatory Commissions and/or commercial lending institutions is preferred 
  
• Experience with hydropower strongly preferred 
  
• Fluent knowledge of both English and Nepali languages, in terms of speaking, reading and writing.
  
• Strong communication skills 
  
• Proactive, self-starter willing to take the initiative 
  
• Ability to team well with others, including with remote team members 
  
• Willingness to be flexible and responsive in a dynamic work environment