Advisory, assurance, and tax services for Nepal’s hydropower developers, IPPs, and energy distribution licensees.
Industry context
Nepal’s energy sector sits at the centre of the country’s economic ambitions. With over 3,200 MW of installed capacity and a pipeline of hydropower, solar, and transmission projects under development, the sector draws significant domestic investment, FDI, and multilateral financing. Operators navigate a regulated environment shaped by the Electricity Regulatory Commission (ERC), the Department of Electricity Development (DoED), and the Nepal Electricity Authority (NEA) — alongside evolving tax treatment for power purchase agreements, project finance structures, and cross-border power trade.
For developers and operators, the financial and regulatory complexity rarely lets up. Long project lifecycles, foreign-denominated debt, PPA tariff structures, and a shifting tax landscape mean finance teams need partners who understand both the numbers and the sector.
How SACA serves the energy sector
- Audit & Assurance — Statutory audits for IPPs, special-purpose audits for lenders and multilateral financiers, and NFRS-compliant financial reporting for project companies.
- Tax Advisory & Compliance — Income tax planning around hydropower tax holidays, VAT treatment of construction and O&M contracts, withholding tax on foreign payments, and transfer pricing for related-party arrangements.
- Transaction & Financial Advisory — Support across project finance structuring, financial modelling for PPAs, due diligence for acquisitions and divestments, and lender-side reporting.
- Risk & Internal Controls — Internal audit, controls assessment, and governance frameworks for project SPVs and holding companies.
- Outsourced Finance Functions — Bookkeeping, payroll, and management reporting for project companies through construction and operation phases.