| Sajha.com Archives | |
| Username | Post |
| _sage | Posted
on 24-Feb-04 05:03 AM
Hi Sajha community, I am writing just to disseminate information about Panda Energy, a Texas company that is the major partner in the Bhote Koshi Power Company (BKPC). As you may know, the Nepal Electricity Authority and the Ministry of Water Resources and Department of Electricity Development have all been taking issue with Panda. The NEA is saying that Panda is charging more than the Power Purchase Agreement called for. The MoWR and DoED are saying that the company built the power plant for more capacity than they were allowed to. I've been investigating this corporation and I've found that it is very dirty, all the signs of being the best Enron-style bubble. There are multiple Panda corporations, all housed in the same office in Texas which is also shared with tons of other businesses (in other words it's only a little suite). Some are actually formed in the Cayman Islands and have no US tax ID number. They are obviously tax shelters. The company has been involved in multiple lawsuits, all regarding similar shady conditions to what is happening in Nepal. For example, they lost a case in the Florida Supreme Court against the Florida Public Service Commission because they were demanding payment for the power purchase agreement, despite the fact that they built the plant bigger than they said they would. They are also involved in disputes in China over the tariff that the Chinese state power corporation will pay for the power of a 100 MW plant in Luannan, Hebei Province. There are some rumours that they sidestepped central government regulation by financlially breaking the project into subprojects so each would fall under the threshold for central government regulation. Now that the PRC is restructuring its power sector, they're coming under scrutiny. They also allegedly use the U.S. government to pressure foreign governments to pay up. For example, there were rumours that the Panda issues may have affected the Feinstein garment bill that would have benefited Nepal. Now the bill is *still* not in the US Senate and may never even be reintroduced. (By the way, please think of writing your Senator and Sen. Feinstein if you did not -- http://feinstein.senate.gov/email.html ...) Have you seen the letter from Panda's president Todd W Carter to Nepali Times? See the bottom of this page: http://www.nepalnews.com.np/ntimes/issue144/letters.htm Regarding China, Rep Eva Clayton made a speech in the House that sounded like a veiled threat to China about the surety of their PNTR (Permanent Normal Trade Relations) status if they did not pay up to Panda. I called the Panda offices and they put me on speakerphone with a group of many people all trying to convince me to stop pursing this. I just wanted to ask some basic questions. Anyway, I found out that the Bhota Koshi plant is actually 45MW generation capability and 83 MW turbine capacity (so in the future they could simply add generators to increase capacity). However, in the PPA and in the Panda filings to the SEC, they all clearly state that it will be a 36 MW facility. Therefore, I think there is some basis to say that Panda committed some level of fraud. By the way, I mentioned the locally-financed Chilime 20 MW plant which I admire, and a Panda exec told me his opinion as a fact that it was financed by "black market money skimmed from other projects". I found that insulting and baseless. I also admire micro-hydro and I am trying to work on finding reconditioned small turbines for less money. If anyone knows companies that make them, please let me know. Thanks for your time. I am simply trying to disseminate information, and I would love any comments or advice. Sage Radachowsky Boston PS - If you also want to dig into the Panda information, you can go here: http://www.sec.gov/cgi-bin/browse-edgar?company=panda&CIK=&filenum=&State=tx&SIC=&owner=include&action=getcompany This is the SEC filings of the Panda group. |
| DWI | Posted
on 24-Feb-04 08:16 AM
Sage You probably have received few accolades for the work you are conducting for Nepal. Here is another thank you note. The Panda Energy, does seem like a Enron Style Financing Shelter to make the taxing process complex and to provide a sudden surge in the short term stock prospect. Nepal Government should be wary of these multi National companies and clearly investigate their track record. I hope you will continue your quest and give it a fair conclusion. Good Luck. |
| ramaychowchow | Posted
on 24-Feb-04 08:34 AM
Dear Sage, Thank you for the information on Bhote Koshi-Panda issue. I have been wondering what exactly happened there. The fault lies on Nepalese Authorities as well because they failed to do some background check on Panda. I wish there was some kind of agency here in US where Nepalese agencies can contact to verify infos. The energy companies here in US is so powerful that they can get away with anything. When they start to blackmail countries like Nepal, whan can we do? It is a very sad situation. I think you are a right on track on thinking about micro-hydro plants for Nepal. Financially, that is the only option we have at the moment. How about getting turbine parts, shipping them to Nepal and reconditioning there. The labor wise it should be much cheaper than anywhere else. Also, Nepalese machanics and engineers will get some jobs. Last time I checked, there are industries in Kathmandu where the work can be done (I guess balaju dhalout karakhana is one of them.). I need to make some inquiries to check on that. Chilemi can be very well used as a model for future. I am also trying to get infos on possible sites to build dams. I think the alternatives they came up with during ArunIII (?) is a good start. I need to people in Nepal regarding this. I will keep posted on what I find. Thanks. |
| _sage | Posted
on 24-Feb-04 08:55 AM
Thank you both for your kind thanks. To me it is a labor of love. The documents I found were public documents, so if the NEA and HMG did more research they could also have found it themselves. But maybe a public group to look after these things, a watch dog group? I know that one Gobal "Chintan" Siwakoti was operating WAFED, a water-watch group in Kathmandu. But I tried to contact him and was unable to do so. Plus I am sure many others are doing similar research, only I have not found them yet. However, you are right. The NEA troubles me because they do not seem accountable. They have made little statement in regard to Bhote Koshi, and only ex-NEA members are writing into the press. I wonder about the NEA and if there are people who are benefiting by deals that they make, and so maybe they want to keep quiet. I don't know how it is working that Nepal can keep signing deals that go bad and never have good benefits for common people of Nepal. (I am thinking also of the Impreglio SpA imbroglio, with the Kali Gandaki "A" cost overruns.) Also I like your idea about shipping used turbines to Nepal. I am searching for used turbines and trying to find the people to ask for them. But a new 20kW microhydro costs about $20k, so even new ones are not too expensive. Certainly less per unit than the many MW projects. |
| ramaychowchow | Posted
on 24-Feb-04 10:05 AM
Sage, I can try to contact Gobal "Chintan" Siwakoti from WAFED. I have never heard about him or his organization but some ones got to know him. Otherwise, there has to be some kind of other organizations. I will look into that. There is no doubt in my mind that some people inside NEA benefited from the deal. I can say that from my own experiences. (One was while trying to work with Ministry of Water Resources.) Most of the time, people are not interested if there is not a big dollar amount up front. But while talking to others, I do see some hope. I have also encountered those who truely look for the benefit of the country. You got a point there: It may not be cost effective to send used one. Shipping, parts and repair might be costly. Other option to look into, will be to go for chinese made ones. Eventhough they won't be to the quality of US/European ones, the ease of getting parts for maintenance can't be ignored. Also, shipping cost will be significantly low. Let me see what I can find. I will get back shortly... unless I get bombared with deadlines at my work. That tends to happen quite often. Cheers |
| Neural | Posted
on 08-Mar-04 03:33 AM
>>>I found that insulting and baseless. I also admire micro-hydro and I am trying to work on finding reconditioned small turbines for less money. If anyone knows companies that make them, please let me know. How about BHEL, India??? Once i 've visited "BHEL" in Hyderabad. Got impressed, the way it was manufacturing Turbines, Generator and other heavy Electrical goods. Transportation costs and other needs wud be cheaper and the best. |
| geordie | Posted
on 08-Mar-04 07:07 AM
as far as i know representative of panda engineering for nepal( so called chairman) is siddharth shumshere rana , son of prabhakar shumsher rana.......Prabhakar is business partner of our be-loved king granendra. |
| Biswo | Posted
on 09-Mar-04 01:31 AM
Well, PANDA energy people are from Texas. It is a small company. The last time I checked there website, they were not even hiring any people:-) They want to expand, and expand real fast. Political connection works here in Texas a lot like that of Nepal. Tom Delay and others from Texas definitely love Panda. Ralph Hill is a local congressman who is in congressional foreign affairs committee. Bush is prez. This is definitely a time when every single Texas company can threaten foreign partners of únilateral action'. Panda deal was a huge mistake. When those who are supposed to lead us can't lead us properly, or worse make deal that are effective for a long time, we are going to suffer. Let's hope that next time a sajhaite is in leadership, he won't make long term deals that are going to affect our posterity and that can't be renegotiated in a foreseeable future. |
| geordie | Posted
on 09-Mar-04 04:02 AM
http://www.nepalnews.com.np/contents/englishmonthly/businessage/2001/may/personality.htm |
| el diablo | Posted
on 09-Mar-04 05:41 AM
Sid Rana is also quite hot-tempered. He once fired at the Verge Inn sign across from his home in Tahachal when he could no longer bear the noise from the wild parties that the establishment used to have. His sister, Maya, is married to Peter Tufo. Tufo was appointed the US ambassador to Hungary by Bill Clinton. The couple live in New York, where Peter Tufo Associates now flourishes. |
| _sage | Posted
on 09-Mar-04 10:51 AM
Thank you for the info on BHEL India. I looked at their website but they sell micro-hydro from 100 kW up, but I am looking at even smaller, like 10-15 kW equipment. If anyone knows good companies in Nepal or India please give their names. Much appreciated for all the comments here. I recall a story in the Kathmandu Post from February 2 which reveals something about how the Nepal Electricity Authority works. It seems like 'former NEA officials' know a lot more than current NEA officials. The last few paragraphs are interesting: http://www.kantipuronline.com/php/kolnews.php?&nid=7062 When contacted, Janak Lall Karmacharya, the NEA managing director, expressed surprise at the development, and said, "I don’t know anything about it. But if it is true, it is a very good offer." Added Govinda K.C., a former NEA officer, "It is something we should not lose. It is the cheapest deal we’ve had so far." Since 1976, Elysee Frontiere has been involved in nearly 30 infrastructure and humanitarian projects across Asia. And Leveque claimed that Hong Kong-based (HSBC) Hong Kong Sanghai Bank has already issued US $ 250 million worth bank guarantee for his venture in Nepal. "This is the last chance for Nepal," a confident Leveque said in French accent, adding, "And if the government here, the ‘water mafia’ here, continue to play games, it will be over for another 20 years. You will lose our offer for ever." |
| _sage | Posted
on 09-Mar-04 10:54 AM
The Upper Karnali project is interesting because that Power Purchase Agreement was for so much lower rates than the Upper Bhote Koshi facility. What is the reason the government wants to give so much more to Panda and Soaltee group? Maybe it is geographical and relates to transmission costs. But if not, then why would the government of Nepal underbid itself so much, when someone else could develop the Bhote Koshi project for less? |