Saturday, March 14, 2015

The Asshole Effect

http://cdn.alternet.org/files/styles/story_image/public/story_images/shutterstock_127785641-edited.jpg
Image Source: http://cdn.alternet.org


Does your rich neighbor often play loud music till late night that really disturbs your sleep?

Does your boss is at unease if he has to share table with you during lunch?

We see examples such as above in our daily life where rich people behave extremely selfishly. And, we increase our hatred with them. There are times, when their behavior makes us feel so small.
In this post, I try to talk of why these people react the way they do. The answer lies in the human mind and the impulses it gets when one becomes rich. It is called the asshole effect. Coined by US psychologist Paul Piff, this effect tries to relate creation of wealth with selfishness and entitlement attitude. Through his numerous research, Paul Piff found that with growth in wealth of an individual, he/she starts believing and behaving in a more selfish way. He/She feels that he/she is entitled to the earthly bliss more than an average person. There is decrease in empathy and they start developing narcissism. They start treating people with lower wealth as inferior to them. They demand special treatment from the society, government and the nation.

For more, read at: The age of entitlement: how wealth breeds narcissism
   

Saturday, March 7, 2015

Sanima Mai Hydropower Limited : Increase in project cost in Phase II

Sanima Mai Hydropower Limited issued its shares to public a little while back. As mandated by Securities Board of Nepal (SEBON), it had the public offering assessed by ICRA Nepal.

http://theloanconsultant.com/files/2013/02/Cost-Increase_Red-Arrow-184x300.jpg
Image Source: http://theloanconsultant.com
The company had issued the offering to finance its two run-of-river hydropower projects with 22MW capacity project being built in Phase I and 7 MW capacity project being built in Phase II. The Phase II project will not require any Headworks as it is being built on cascade model, i.e. the water from tailrace of Phase I will be tapped to source the Phase II project. Cascade model have its inherent advantages in reducing environment impact as well as reducing capital investment required for the downstream project.

As per the rating by ICRA Nepal, the total project cost is estimated at NPR 4375.80 million. This converts to capital investment of NPR 150.89 million per MW. The rating further states that the project cost in Phase I (22 MW) is NPR 3119.53 million, i.e. 141.79 million per MW. The project cost for Phase II (7 MW) can be deduced from the above at NPR 1256.27 million. The per MW cost for Phase II comes out to be NPR 179.47 million, which is NPR 37.68 million additional cost per MW against the Phase I cost. The cost increment is of 26.57%. This is quite interesting, given the fact that cascade projects bring in cost advantages. The reverse is seen in the above case.