Mandate Statement

Legislative Mandates

The Peace Energy Company Private Limited (PEC) is established as a Private Limited Liability Company under the Cap 5 of Industrial Business Act-2063 (BS), Sub-section (1) of section 5 of Company Act-2006, Rules of company under sub-cap 4 of cap 20 of Company Act-2063 (BS) and Memorandum of Company under sub-cap 18 of cap 6 of Company Act-2063 (BS) of Government of Nepal. Its mandate, as obtained from its Memorandum of Association, is the production, supply and sale of hydro power electricity. PEC is a registered company with authorized capital of NPR 100,000,000. PEC has already acquired the electricity generation license to construct Uper Kabeli Hydro Electricity Project of 28.1 MW capacity and Power Purchasing Agreement has been accomplished with Nepal Electricity Authority. Project has been constructing from financial management with 30% equity of promoter, staffs, local people and public and 70% term loan of consortium banks of Nepal. The main law governing PEC’s operations and the energy sector as a whole are the Hydro Power Development Policy-2001, Electricity Act-1992, Electricity Rules-1993, Environmental Protection Act-2076 BS, Environmental Protection Rule-2077 BS, Labor Act-2074(BS) and Professional Health & Personal Security Policy-2077. The Energy Regulatory Commission (ERC) established under Energy Regulatory Commission Act -2074 and Energy Regulatory Commission Rules-2075 regulates the activities of the company to ensure compliance with the law and other legal requirements.

Policy Mandate

The Hydro Power Development Policy-2001 relating to the electricity sector, in which PEC is a major player, lays the framework upon which cost-effective, affordable and adequate and quality energy services are to be made available to the domestic economy on a sustainable basis over the period 2027- 202057. The Department of Electricity Development under Ministry of Energy, Water Resources and Irrigation, as PEC’s parent ministry, provides overall leadership, oversight, guidance and direction to ensure full implementation of the policy.
  • 1 Sustainable Infrastructure Development Policy (SID Policy): We are committed to develop Sustainable Infrastructure of hydropower projects.
  • 2 Total Quality Management Policy (TQM Policy): We are committed to develop and generate electricity from hydropower projects satisfying our stakeholders through continual improvement in its technology, process, human resource management, monitoring (Progress, Time, Cost & Quality) and complying the statutory & regulatory requirement
  • 3 Environmental & Social Safeguarding Policy (ESS Policy): We are committed to develop and operate infrastructure/plant in an environment friendly and responsive manner by implementing, maintaining and continually improving our environmental management system.
  • 4 Developing Cost Effective Physical Infrastructures & Generating of Maximum Revenue Policy (CEP-GMR Policy): We are committed to develop Sustainable Infrastructure of hydropower projects in the least cost and allocating maximum profit to shareholders of company.

Organization Organization


Strategic Themes & Strategic Objective

The demand for electricity has grown, the technologies have changed, there is more emphasis on renewable sources of energy and erratic weather conditions are more prevalent. There is also the increased drive towards capable and committed human resources development, establishment of corporate governance and effective management system; cost and risk reduction and effective resources aligning for executing and operating of hydroelectricity plant in the most effective way. These and more changes and growth areas require a focused strategy for PEC to maintain its competitive advantage and focus on being a market leader in this sector To guide PEC in the next five years, this strategic plan highlights five (5) main themes and objective. These are namely
Sustainable Infrastructure Development Strategy (SID Strategy)
Development and continuous expansion of sustainable physical infrastructure in the most efficient, reliable and cost effective for generating of hydroelectricity that contribute demand management of electricity and uplifting of economy of the country through exporting of clean power and increased industrialization.
Effective Human Resources Management Strategy (EHRM Strategy)
Enhancing managerial skills and competencies, fostering leadership qualities, improving decision-making abilities, promoting effective communication and interpersonal skills, and developing a strategic mindset Development of capable and committed human resources in the most effective way to implement, operate and maintain of the hydro power projects to achieve the vision, mission and objective of PEC in the most efficient, reliable and cost effective and profit maximization.
Quality Management & Institutional Development Strategy (QMID Strategy)
Institutional and management Development and establishment of corporate governance and effective management system of planning, implementing, operating, monitoring, controlling, coordinating, supporting, reporting that will enhance of management efficiency of BoDs, Senior Management Team, Tactical Management Team, Operation Team Project for operating of business in the least cost and maximum profit.
Loss and Risk Reduction Strategy (LRR Strategy)
Addressing the minimization of risk and loss of the resources from hydrological, geological, social phenomenon, management, project completion, operating and revenue during Planning, Designing, Implementing and Operating of Hydro Power Development Project in the most effective way to achieve the vision, mission and objective of PEC.
Effective Resources Aligning Strategy (ERA Strategy)

Resource Mobilization and alignment for expansion of business in the least cost and maximum profit;

Peace Energy Company (PEC) consists of diversified team of entrepreneur, hydropower engineers and experienced management expert. Our strong national and international business relationship, assets mobilization capacity and reputation helps Peace Energy to scale up its business. Individuals and organization involved in the Peace Energy has a strong financial capacity to inject equity in the future projects. Upper Kabeli Hydro project has 28.1MW installed capacity with Rs 5.68 billion investment. We have planned to complete this pilot project within next 30 months. Peace Energy company is confident in commencing this project on time, while maintaining quality infrastructure, by implementing rigorous project planning, design and execution. Lesson learned from this project will be replicated in planning and management of the next project with higher capacity.