.

PROJECT LOCATION & ACCESS

Location

District : Bhojpur, Eastern Dev. Region

VDC : Kulunga, Nepaldande

Latitude : 28000'15"N to 28002'10"N

Longitude: 85016'10"E to 85019'00"E

Project area

Access:

Nearest Market -- Tumlingtar Bazaar

Distance from Kathmandu 545 km to powerhouse : 545 km

Project Layout

HeadworksPowerhouse

Erkhuwa Khola

Head race tunnel

Surgetank

Penstock

BASIC DESIGN PARAMETER

• Design Discharge : 8.75 m3/s

• Gross Head : 144 m

• Net Head : 136 m

• Installed Capacity : 10 MW

• Annual Energy : 59.9 GWh/year

• Design Discharge : 8.75 m3/s

• Gross Head : 144 m

• Net Head : 136 m

• Installed Capacity : 10 MW

• Annual Energy : 59.9 GWh/year

HYDROLOGY

Total Catchment Area 201 km2

Design discharge (Q40) 8.75 m³/sLong term annual average flow 12.2 m³/sDesign flood at intake (100 yrs) 423 m³/s

Total Catchment Area 201 km2

Design discharge (Q40) 8.75 m³/sLong term annual average flow 12.2 m³/sDesign flood at intake (100 yrs) 423 m³/s

HYDROLOGICAL INFORMATION• Eastern Nepal having high monsoon index (Avg.

Precipitation of 1915 mm)• Regular real time measurements• Correlation with Sabha and Hinwa Khola DHM

gauging sites 1974-2006

GEOLOGY

• Bed rock exposed at intake• Minimum size tunnel being excavated

manually• No erosion and landslide seen around

structures• No habitation upstream to induce sedimented

floods• Significant amount of geological

investigations remain

• Bed rock exposed at intake• Minimum size tunnel being excavated

manually• No erosion and landslide seen around

structures• No habitation upstream to induce sedimented

floods• Significant amount of geological

investigations remain

HEADWORKS

Weir :Type Free flow Ogee Type StructureCrest length 25 mCrest elevation 517.5 mHeight of weir 4m

Intake:Type : Side Intake, Orifice TypeNo. :3 nos.Size of Orifice: 4 m (W) x 2.6 m (H)

Weir Axis

Intake:Type : Side Intake, Orifice TypeNo. :3 nos.Size of Orifice: 4 m (W) x 2.6 m (H)

Bird’s Eye View of Head Works

HEADWORKSApproach Canal:Type: Rectangular, Stone Masonry Channel with

Concrete BedNo. 1 no.Size 20m (L) x 4 m (W) x 1.75m (H)Bed Slope 1:750Settling Basin:Number of Basins 4 nos.Size 48 m (L) x 5.5 m (W) x 4.9 m (H)Nominal size of trapped particles: 0.2 mm

Approach Canal:Type: Rectangular, Stone Masonry Channel with

Concrete BedNo. 1 no.Size 20m (L) x 4 m (W) x 1.75m (H)Bed Slope 1:750Settling Basin:Number of Basins 4 nos.Size 48 m (L) x 5.5 m (W) x 4.9 m (H)Nominal size of trapped particles: 0.2 mm

Settling basin area

Exposed rock at intake

WATERWAYHeadrace Tunnel:Shape of tunnel Inverted D-shapedSize 2.5.0m x 2.5mLength 2400 m

Water gauge formeasurement

WATERWAYSurge shaft, penstock,

powerhouse and tailrace

Surge Shaft:Type Restricted Orifice Type and open ShaftShape CircularDiameter of orifice 2.0 mDiameter of surge tank 8.0 mHeight 25 mPenstock:Type SurfaceLength 338 mInternal diameter 2 mShell thickness ~ 16 mm

Surge Shaft:Type Restricted Orifice Type and open ShaftShape CircularDiameter of orifice 2.0 mDiameter of surge tank 8.0 mHeight 25 mPenstock:Type SurfaceLength 338 mInternal diameter 2 mShell thickness ~ 16 mm

POWER HOUSE & TAILRACE

Power House:Type SurfaceSize 36.6m(L) x 18(W) x 14.5 m(H)

Turbine:Type Francis (Horizontal Axis)Unit 2 nos.Design discharge: 4.38 cumecs

Tailrace:Type Rectangular with coveredSize 183 m (L)

2.5 m (W)2.0 m (H)

Powerhouse area and tail race

Power House:Type SurfaceSize 36.6m(L) x 18(W) x 14.5 m(H)

Turbine:Type Francis (Horizontal Axis)Unit 2 nos.Design discharge: 4.38 cumecs

Tailrace:Type Rectangular with coveredSize 183 m (L)

2.5 m (W)2.0 m (H)

WORK ACCOMPLISHED• Access road opened to powerhouse• Site Survey complete• ToR of IEE submitted for approval• Renewal of survey license for 4th year applied• Sediment study complete• Project Company established

Road to powerhouse Survey works

Work to be completed prior to construction• Access road construction to head works /tunnel outlet

• IEE study approval

• Connection Agreement and Power Purchase agreement

• Drilling and geological investigation

• Obtaining generation license

• Detail design

• Tender documents/ specifications and contracts

• Construction power

• 33 kV line license and construction

• Access road construction to head works /tunnel outlet

• IEE study approval

• Connection Agreement and Power Purchase agreement

• Drilling and geological investigation

• Obtaining generation license

• Detail design

• Tender documents/ specifications and contracts

• Construction power

• 33 kV line license and construction

Schedule of construction

ASSUMPTIONS IN FINANCING• Debt Equity ratio : 70:30

• Project Cost : NRs. 1,900 Mn• Interest Rate : 9.5 %• Investment : Pro-rata• Loan term : 3+12 years• Total Energy : 59.9 GWh• Energy Rate : NRs. 8.40 for Dry and

4.80/kWh and Wet• Escalation in tariff : 3% for 5 times• RCOD : 2019 June• Project financial life : 35 years

• Debt Equity ratio : 70:30

• Project Cost : NRs. 1,900 Mn• Interest Rate : 9.5 %• Investment : Pro-rata• Loan term : 3+12 years• Total Energy : 59.9 GWh• Energy Rate : NRs. 8.40 for Dry and

4.80/kWh and Wet• Escalation in tariff : 3% for 5 times• RCOD : 2019 June• Project financial life : 35 years

FINANCIAL INDICATORS

Equity IRR 18 %

Financial IRR 11 %

Debt Service Coverage Ratio

Min. 1.49

Average 1.69

Cost per kW $1900

Market Capitalization ???

Equity IRR 18 %

Financial IRR 11 %

Debt Service Coverage Ratio

Min. 1.49

Average 1.69

Cost per kW $1900

Market Capitalization ???

Flow of Funds (In Rs. X1000)Yr 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Pre-construction

Construction Operation

36,700 35,500 385,000 637000

728,000

200,000 312,607 320,423 328,238 336,053 343,868 351,683

Total 72,200Expense

1,820,000Expense

1,841,191Income

Total 72,200Expense

1,820,000Expense

1,841,191Income

Equity 30 % Equity70 % Debt

Total revenue over project life time 10,843,139

Pre construction and constructionschedule of costs (amount x N. Rs.1000)Event 2015 2016 2017 2018 2019

License acquisition 25,000 7,500

IEE study 700

Feasibility study 1,500 1,500

PPA 500 2000

Survey/generation license 2,000 3,000Survey/generation license 2,000 3,000

Land acquisition 3,000

TL license 1,000

Company Registrar's Exp 1,000

Access road 1,000 2,500

Detail design/Site investigation (geo/topo) 5,000 15,000 20,000

Project Construction 365,000 637,000 728,000

Total (Rs. 1,900 Mn.) 36,700 35,500 385,000 637000 728,000

Project cost details (Rs. *1000)Details Engg

costContingency Nett cost

Tax/VAT

Cost withVAT

1 General works 25,000 8% 27,000 13% 305102 Infra development 32,700 8% 35,316 13% 39907.083 Upgrade/construct access road 35,000 8% 37,800 13% 427144 Civil construction works

River diversion works 4,227 8% 4,565 13% 5158.6308River training works 26,638 8% 28,769 13% 32509.0152Intake and Under sluice 11,126 8% 12,016 13% 13578.1704Spillway structures 34,438 8% 37,193 13% 42028.1352Intake canal and Flood wall 2,606 8% 2,814 13% 3180.3624Settling basin 86,309 8% 93,214 13% 105331.5036Head race tunnel and portal 318,736 12% 356,984 13% 403392.2816Surge shaft 39,144 12% 43,841 13% 49540.6464Penstock alignment -

Anchor blocks 21,515 8% 23,236 13% 26256.906Anchor blocks 21,515 8% 23,236 13% 26256.906Saddle supports 4,953 8% 5,349 13% 6044.6412

Power house complex 50,095 8% 54,103 13% 61135.938Tailrace conduit 16,574 8% 17,900 13% 20226.9096

A Total Civil works cost 709,061 780,101 881,5145 Metal works 120,008 5% 126,008 1% 127268.4846 Plant an machinery 357,000 5% 374,850 1% 378598.57 Transmission line and switchyard 51,700 5% 54,285 1% 54827.85

B Total E/M cost 528,708 555,143 560,695C Base cost of Project 1,237,769 1,335,244 1,442,209D Project engineering, Admin, and management (6 %) 74,266.14 83,921 13% 94,830E Environmental mitigation and resettlement 4 % 49,510.76 49,511 49,511F Land acquisition and compensation cost at 3 % 37,133.07 37,133 37,133G Project development cost @ 1 % 12,377.69 13,987 13% 15,805I Cost of office equipment and vehicles 29,000 32,770 13% 37,030

Total cost (C, D, E, F, G, H,I) 1,440,057 1,552,566 0 1,676,518IDC 223,732Total project cost 1,552,566 1,900,250

TRANSMISSION LINE

• Sending end:Lower Erkhuwa Hydropower Project , Nepaldande VDC

• Receiving end:220/132/33 kV substation at Tumlingtar

Approximately 14 km of 33 kV line (single Circuit or doubleCircuit)Possibility to partner with other developers in the area atChirkhuwa, Erkhuwa and Sankhuwa Rivers)

• Sending end:Lower Erkhuwa Hydropower Project , Nepaldande VDC

• Receiving end:220/132/33 kV substation at Tumlingtar

Approximately 14 km of 33 kV line (single Circuit or doubleCircuit)Possibility to partner with other developers in the area atChirkhuwa, Erkhuwa and Sankhuwa Rivers)

CONCLUSION• Attractive technical aspects

• Experienced promoters / management team in NHPC

• Substantial time available in survey license to completeworks

• Very strong local support

• Investors will benefit by investing : Reasonable returns

• Good hydrology and geology

• Easy access and power evacuation

• Attractive technical aspects

• Experienced promoters / management team in NHPC

• Substantial time available in survey license to completeworks

• Very strong local support

• Investors will benefit by investing : Reasonable returns

• Good hydrology and geology

• Easy access and power evacuation

ATTRACTIVENESS OF SCHEME

• Perennial water source from stream and lake• 2 years still available to complete survey works• Medium Head Project• Run of River Scheme• Minimum size tunnel• Eastern Nepal where energy demand is high• Minimal environmental impact• Project does not lie in sensitive zone• Motor able access is available• Short transmission line

• Perennial water source from stream and lake• 2 years still available to complete survey works• Medium Head Project• Run of River Scheme• Minimum size tunnel• Eastern Nepal where energy demand is high• Minimal environmental impact• Project does not lie in sensitive zone• Motor able access is available• Short transmission line

WAY FORWARD• Finalize equity partners• Acquire shares in company (acquire license)• Site visit• Start PPA negotiations• Complete IEE Study• IPO of project company• Start detail design and investigation• Financial closure• Obtain generation license• Obtain TL license• Start construction of Project and TL• Complete construction

• Finalize equity partners• Acquire shares in company (acquire license)• Site visit• Start PPA negotiations• Complete IEE Study• IPO of project company• Start detail design and investigation• Financial closure• Obtain generation license• Obtain TL license• Start construction of Project and TL• Complete construction