Hillsdale Group signs an agreement with Welcom Energy - July 1, 2009

Hillsdale Group signs an agreement with Welcome Energy Development Pvt. Ltd. to develop 20 MW Lower Balephi Hydro Power Project at the Hillsdale Group's corporate Headquarters in Tysons Corner, Virginia. Chairman and CEO of Hillsdale Group Mr. S. M. Sainju and the Managing Director of Welcome Energy Development Company Pvt. Ltd. Nepal Mr. Pushker Dewan signed the agreement.

Lower Balephi 20 MW is a Run of River project and is located in Sindhu Palchock district of Nepal, roughly about 70 KM east of Kathmandu. A complete DPR (Detail Project Report) has been completed including IEE (Initial Environmental Evaluation). The project intends to sign a long term PPA (Power Project Agreement) within few weeks and has obtained a grid connection permission with Nepal Electricity Authority, Ministry of Energy.

Speaking to the media, the Chairman and CEO of Hillsdale Group Mr. S. M. Sainju outlined some of the project features. The project has a gross head of 68.4 meters which will generate net annual energy of 114.166 GWh.

Mr. Sainju assured that the financial closing will take place within six months and during the period EPC (Engineering Procurement and Construction) contractor will be selected and PPA will be signed. Upon finacial closing, construction will commence. It will take about 2 to 3 years to complete the constrution of the project.

At the signing ceremony, among the guests were Hillsdale Group executives, Hillsdale Group Board of Directors, a distinguished guest from Tanzanian Embassy and media. Former US Congresswoman and Hillsdale Group Board of Directors Leslie Byrne said, "To make progress whether it is in South Asia or in East Africa, you got to have basic tools. One of the basic tools is electricity."

Former US Senator, Virginia Governor and Hillsdale Group Board of Directors George Allen said, "This is going to be great for the people of Nepal. Electricity is the life blood of any economy and society. Whether it is in East Africa or in particular in Nepal this is really the start of a brighter future for the people of Nepal literally and figuratively."