Kathmandu, Jan. 8 -- The developer, according to a highly placed source at the electricity authority, is ready to contribute only $5 million to the fund

Jan 8, 2019-Nepal Water and Electricity Development Company (NWEDC) threatened to pull out from Nepal after the government asked it to contribute a hefty sum to a hedge fund to be used as a cushion against exchange rate risks. A hedge fund is an insurance like mechanism that helps to mitigate the risk of additional liability arising from fluctuations in foreign exchange rates.

Sources close to the Korean joint venture company, which is the potential developer of the 216 MW Upper Trishuli-1 Hydroelectric Project, told the Post that it wouldn't execute the project if it was forced to give...