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Nation building by the people for thepeople: it is the key driving force toform this company. And we, at NPBCL,

aim at building a prosperous Nepal.We all are aware of the hard fact thatthe process of nation building anddrearning of building a prosperousNlepal is NOT possible, without properinfrastructures in place. Former BritishPrime Minister Margaret Thatchersaid, "You and I come by road or rail,but economists travel oninfrastruetu re."

Hence, NPBCL has been establishedas a public infrastructure-developercompany that aims at bringingtogether a nd managing investments,skills, expertise and resources of theNepalese people from within andoutside the country.

Displaying sheer brilliance in qualityand services to set a benchmark ofrepute, we have earned the trust ofour stakeholders, which we believe isa true spirit of bonding on 4 pillars wecalled a '4P model,'the combinationof Peopie, Public and PrivatePartnership; it has added the value,strength and network of the company.

I would like to appeal to all Nepaleseto come together to build our nationby investing in infrastructure projectssuch as Kath,,rnandu KulekhaniHetauda Tunnel {KKl-lT) Highwaymaking a path for economic activities.Thus can we alltransforrn ourrnotherland ltlepal into the mostbeautiful and prosperous country andfeel proud and say, "Yesll i arn aisspart of it."

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Nepal Purwadhar Bikas Company Limited (NPBCL) is a pubiic timited company established underCompany Act, 2006.

NPBCL is Nepal's first public limited company building a national toll highway of Asian HighwayStandards. As a public infrastructure-developer company, we aim at bringing together andnranaging investments,.skills, expertise and resources of the Nepalese people from within andoutside the country for the national development and wealth maximization. We offer uniqueopportunities not only of making secure investment in infrastructure development, but also ofmaking important contribution to the achievement of the holistic goal of nation-building.

NPBCL has emerged as a public limited company with tremendous prospects as its prime objectiveto construct, operate and manage large-scale infrastructure projects that cater to the needsof the Nepalese people and country as a whole. The company has been formulated with activesupport and credentials of business group, contractor's group, engineering and managementexperts and local groups. lt is based on the modal[tV of people, public and private partnership(4P), and the key success factor of any development initiative.

COMPAr{Y'$ CAPITAL $TRljCTl]RE

. Authorized Capital: NPR 18,000,000,000 {Eighteen Billion)

. lssued Capital: NPR 18,000,000,000 {Iighteen Billion)

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BfiA$f *f ,)txt*?$*?$ M" Kush Kumar Joshi ' Past President, FNccr' Chairman . Managing Director, Nepal Ekarat Engineering Company

. Chairman, Liberty Energy Hydropower and Energy Engineering Hydro Power

. Chairman, Himalayan Bamboo Pvt. Ltd.

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Mr. Lal Krishna KC . Principal, Full Bright ConsultancyVice Chairman . Project DirectoL Simara-Bardibas Section-Mechi-Mahakali Railway & Simara-Birgunj Link, Dept of Railway

. Project Coordinator, Sub-Regional Transport Enhancement Project, Oepartment of Roads/AD'S

Mr. Jayaram [amichhane . President, Federation of Contracto.s Association of Nepal (FCAN)

Director . Managing Director, Swachhanda Nirman Sewa Pvt Ltd. Joint Treasurer,Rotary Club of Lalitpur Midtown

Mr. Pradeep Jung Pandey ' President, FNcclDirector . Chairman, Citizen Bank

. Managing Director, Lomus Pharmaceuticals

Mr. Sukunta Lal Hirachan o Past President, FCANDirector . Managing Director, United Bullders

. Executive Member, FNCCI

Mr.ShubhashChandraThakuri . ElectedMember,constituentAssembly{Makwanpur-2)Director . Managing Director, Soundlink Pvt Ltd

. Past President, Sisneri Village Development Committee

. Representative, Sisnery Region

Mr. Bhaban Bhatta o President/Executive Chairman of TBI Holdings, JapanDirector . Vice President Non Residential Nepalese Association

. President of United Breweries Nepal' e Chariman ofTBl Publication, Nepal

Mr.SanatNeupane . GroupcEoofTBiGroup,NepalDirector

Mr. Nugal Ananda Vaidya . Director, Creation & Development Pvt. Ltd.Director . chairman, cls construction pvt. Ltd.

. Chairman, Citizen Printers Pvt. Ltd.o Chairman, Pioneer Fuel & lubricants Pvt. Ltd.

Bhuban Lal Shrestha . Makwanpur Chamber of Commerce & lndustry' Director/Representative 1

Etsistinr: F{i$hwav {Kathmandu-l"{etauda}

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A Concession Agreement between the Government of Nepal and Nepal Purwadhar Bikas Cornpany Limited was signed on

14th of May 2013 to construct the tunnel highway. Following are some of the favorable ter.ns and conditions of theagreement:

. License valid for 30years with an option to extend license for next 5 years

' Option to change the toll rate on the request ofthe license owner

. Project construction cornpletion date December 2016

. Lieense to build, own; operat€ and transfer

r Raise toll on operation of the road under partial completion or completion of the road construction

. Nepal Government will not charge any royalty frorn the project owner during:the constructlon qr operation ofthe KKHTH

project

" Nepai Government will not issue license to any other projects that will impact the viability of the KKTI-i project except

for the Kathmandu Nijgadh Fast Track

c lf the concession agreement has to be terminated due to breach of contract by any party, the Governrnent of Nepal will

terminate the contract but will have to provide compensation to the company. Compensation will be calculated such

that it will include all the actual expenses incurred by the company for the project during the €greement period plus

the profit which could have been earned by company if the project had been implernented till ttle total concession period

as agreed in the agreernent

. tlepal Governrnent shall not nationalize land, buiiding, instruments and infrastructure associated with the KKHTH project

. Nepal Government will assist KKTH proiect in acquisition private land and building and will also make availablegovernment/public land to the project under rental or lease

o Will allow the pro.lect owner to collect required debt and capital in foreign currency and according to FDITTA allow

repatriation of interest, principle, dividends or share capital i'nvested

. No source of investment would be sought for investment made till Chaitra 2075 (April 2019)

^

Estimated Project Cost

Debt/Equity Ratio

Equity

Debt Financing

Promoter Shares

lnitial Public Offerings (lPO)

Shares from Promoters/Share in lieu

tPo

Dividend PayoutYear

Debt Repayment Period

lnterest on Debt

Payback Period

lnternal Rate of Return (lRR)

Equity IRR

NPV

Simple payback period

Discount Payback Period

Simple payback period with construction

Discount payback period with construction

Depreciation

Discount Rate

Levy Custom Duty

lncome Tax

lnflation Rate on Local Currency

Rs. 34.876 Billion (excluding IDC)

80:20

Rs. 9 Billion

Rs. 27.901 Billion (Excluding IDC and Cost of raising debt)

60%

40o/o

Rs. 4.815 Billion (60% of Equity Capital including preferred dividends)

Rs. 2.79 Billion

7 Years after operation

17 Years (with moratorium period for first 2 years)

8.50%

9.59 years after operation

16.69%

22.8L%

Rs. 21.29 Billion

12.94 years

18.04 years

9.44 years

14.54 years

Over the life of the operation of the project

WACC at Cost of Debt @ 8.5% and Equily @14.77%

1% on import of Machinery/Equipment needed for the project

72% li.e.40% rebate on existing 20% tax rate)

7% (Assumed)

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First gathering at Sisneri,Makawanpur District

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2011 sEP-OCTEstablishment oftheCompany

Commencement ofPreliminary Survey

Helicopter Survey ofKathmandu HetaudaCorridor

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Main sponsor "MONEYEXPO" Expo

Chairman's EuropeTour

NPBCL Presentation atNational PlanningCommission

Meeting - Ministry ofPhysical lnfrastructure &Transport

Hetauda Meet andlnteraction Program

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NPBCL Presentation atNepal EngineeringAssociation

lnteraction Program atPrime Minister's Office

Participation at FCAN's1sth AGM

201 2 JULY

Government decides to Commencement ofhandover the project to Detailed SurveyNPBCL

lnteractions with LocalSigning of PPA with CommunitiesGovernment of Nepal

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Interaction with politicalLeaders

Main Sponsor- 39thJaycees convention,Hetauda

2013 JAN

EIA Presentation atMinistry of Science andTechnology

MOU Signing Ceremonywith NRN

Interaction program withFCAN

5hubha Muhurta Puia atKulekhan

2013 MAY

Signing of ConcessionAgreement

NPBCI-s Flag on top of Mt.Everest

Permission Letterlssuance Program

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Europe Promotional Tour

MOU between PrabhuFinance and NPBCL

MoU Signing with ANAand NPBCL

lnteraction program withNRNA in Japan

NPBCL team's MalaysiaTour

SEJON lnteractionProgram with Hon.Minister Chhavi Raj Pant

SarokarSamitee Meetino.WTC

NPBCL First AGM

Ground BreakingCeremony

Share purchase Agreementwith TBI Holdings

EIA Public Hearino inMakrwanpur and-Kathmandu

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2nd Floor, Orn Bhawan, KantirajpathTel: 057 -527 320/30 fax: 057 -527 340

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2nd Floor, Hotel Peace Zone, Sisneri 3azar, Makawanpur .

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