uppertamakoshi

PROJECT STATUS PROJECT STATUS & &

FINANCING PLANFINANCING PLAN

UPPER TAMAKOSHI HYDROPOWER LIMITEDUPPER TAMAKOSHI HYDROPOWER LIMITEDUPPER TAMAKOSHI HYDROELECTRIC PROJECTUPPER TAMAKOSHI HYDROELECTRIC PROJECT

April 2009Kathmandu, Nepal.

Project Location, Lamabagar, Dolakha

ChautraCharikot

Singati

Lamabagar

Upper Tamakoshi Hydroelectric Project

PROJECT LOCATION MAPPROJECT LOCATION MAP

Lamabagar

GauriShankar

GongarKhola

Tamakoshi River

3D VIEW OF PROJECT AREA3D VIEW OF PROJECT AREA

Rolwaling

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Stage 1 : 309 MW(All civil works of the Project capable to generate 456 MW will be constructed. Out of Six Units, four units will be installed in this Stage) 2009 - 2013

Stage 2 : Upgraded to 456 MW(Additional Two Units will be installed for total 456 MW Capacity)2013-2015

Stage 3 : Additional 145 MWto be added to make total installed capacity of 601 MW within 10 years.z

DEVELOPMENT STAGESDEVELOPMENT STAGES

Stage 1Stage 1 Stage 1 + Stage 2Stage 1 + Stage 2

WithoutWithoutRolwalingRolwaling

KholaKhola

WithWithRolwalingRolwaling

KholaKhola

Installed Capacity (MW)Installed Capacity (MW) 309309 456456 456456

Turbine Discharge (mTurbine Discharge (m33/s)/s) 4444 6666 66 66

Project Cost (Million US$)Project Cost (Million US$) 406406 441441 467467Note #1Note #1

Cost per kW (US$) without IDCCost per kW (US$) without IDC13161316 968968 10241024

Annual Average Energy delivered at Annual Average Energy delivered at KhimtiKhimti Substation [Substation [GWhGWh]] 1,727.31,727.3 2,143.62,143.6 2,288.02,288.0

ENERGY GENERATIONENERGY GENERATION

Note #1 : Cost of Rolwaling Transfer is taken as US$ 26.3 Million as per the Feasibility Study.

SALIENT FEATURESSALIENT FEATURESProject TypeProject Type : : Peaking RunPeaking Run--ofof--RiverRiverCatchmentCatchment AreaArea : : 1745 1745 Sq.kmSq.kmDesign FloodDesign Flood : : 875 m875 m33/s (1,000 Yr. R.P.)/s (1,000 Yr. R.P.)Gross Head Gross Head : : 822 m822 m

Development Stage 1Development Stage 1Installed CapacityInstalled Capacity :: 309 MW309 MWAnnual EnergyAnnual Energy : : 1737.7 1737.7 GWhGWhDesign DischargeDesign Discharge : : 44 m44 m33/s/sDiversion WeirDiversion Weir :: 60 m x 22 m60 m x 22 mDesandingDesanding BasinBasin :: 225 m x 26 m , 2 chambers225 m x 26 m , 2 chambers

Headrace Tunnel Headrace Tunnel : : 7,900.0 m7,900.0 m

Pressure Shaft (Penstock) :Pressure Shaft (Penstock) : 477.0 m477.0 m

SALIENT FEATURES (SALIENT FEATURES (contdcontd……))

Power House (U/G) Power House (U/G) : : 142.0x12.9x32m (142.0x12.9x32m (LxBxHLxBxH))TurbinesTurbines : : PeltonPelton, 4 Nos., 4 Nos.Tailrace TunnelTailrace Tunnel :: 2985 m2985 mT/L 220 KVA T/L 220 KVA : : 47 km 47 km Access RoadAccess Road :: 39.5 km upgrading39.5 km upgrading

:: 28.5 km new construction28.5 km new constructionConstruction PeriodConstruction Period :: 4 years4 yearsProject CostProject Cost :: 406.62 Million US$406.62 Million US$

Red Line – Old LayoutBlue Line – New Layout

PROJECT LAYOUT MAP & PROFILEPROJECT LAYOUT MAP & PROFILE

Bhaise Adit(Old)

Bhaise Adit(New)


HeadworksHeadworks Area MapArea Map

Penstock Adit(Old)

Penstock Adit(New)

Headrace Tunnel(Old)

Main Access Tunnel (Old)

Penstock(Old)

Surge Tunnel(Old)

Powerhouse(Old)

Main Access Tunnel (New)

Surge Tank(New)

Powerhouse(New)


Powerhouse Area MapPowerhouse Area Map

Surge Tunnel (Old)

Penstock (Old)Length = 2,243 m

Powerhouse (Old)

Surge Tank (New)

Penstock (New)Length = 725 m

Powerhouse (New)


Penstock Profile

POWERHOUSE LPOWERHOUSE L--SECTIONSECTIONTwo Additional

Units for total 456 MWFour Units for

309 MW

LamabagarLamabagar ((HeadworksHeadworks Site)Site)

Upper Tamakoshi HEP 15

LamabagarLamabagar ((HeadworksHeadworks Site)Site)

GongarGongar (Powerhouse Site)(Powerhouse Site)

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1. Access Road Constructiona. 28.5 km long access road & 3 bridges are under

construction (70% completed & expected to be completed within 2009)

b. Dolakha – Singati Road upgrading (35 km) started from Nov 2008.

2. Detailed Engineering Designa. Feb 2007 - Dec 2008b. Construction of Test Tunnel (500 m long) including

geotechnical Test completedc. 500 m long drill holes completed

PRESENT STATUSPRESENT STATUS

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3. Prequalification for Lot-1 Main Civil Works completed. Tender is expected to award by October 2009. (4 Chinese and 2 Indian Contractors have been pre-qualified)

4. Selection of International Consultant for Construction Supervision will be Completed on Sept 2009. (17 International consulting firms had applied EOI)

5. Prequalification for Lot 2 Hydromechanical and Lot 3 Electromechanical works will be started from April 2009.

6. 750 m Long Access Tunnel to Powerhouse has been awarded to Himal Hydro and the work is under progress.

PRESENT STATUS (Contd..)PRESENT STATUS (Contd..)

PRESENT STATUS (Contd..)PRESENT STATUS (Contd..)

7. 2 Buildings at Dam site & 3 Buildings at P/H site – Under Construction

8. 33kV T/L for Construction Power (16 km Singati- Gongar) –Tender Awarded

9. Land Acquisition10. EIA of the Project and T/L - Completed

Road Construction under ProgressRoad Construction under Progress

Chhetchhet-Thonthong Area (Package 3 & 4)

Whang Khola, Lamabagar(Package 4)

Road Construction under ProgressRoad Construction under Progress

Totlabari (Package 2D)Jamune (Package 2E)

Bridge Construction at Bridge Construction at SingatiSingati

Camp Construction under ProgressCamp Construction under Progress

Head works sitePowerhouse site

Access Tunnel Works under ProgressAccess Tunnel Works under Progress

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CONSTRUCTION SCHEDULECONSTRUCTION SCHEDULE

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PROJECT COST

COST ESTIMATES IN DIFFERENT STUDIESCOST ESTIMATES IN DIFFERENT STUDIES

1.1. Detailed Feasibility StudyDetailed Feasibility StudyCost Estimate prepared by Cost Estimate prepared by NorconsultNorconsult AS in AS in November 2004November 2004

2.2. Detailed Engineering DesignDetailed Engineering DesignEngineerEngineer’’s Cost Estimate prepared by s Cost Estimate prepared by NorconsultNorconsultAS AS –– LahmeyerLahmeyer Joint Venture in November 2008Joint Venture in November 2008

3.3. Revised Project CostRevised Project CostPrepared by Review Committee in March 2009Prepared by Review Committee in March 2009

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PRICE LEVELPRICE LEVELAND EXCHANGE RATESAND EXCHANGE RATES

Feasibility StudyFeasibility Study

Price Level = 2004 Price Level = 2004 NovemberNovember

1 US$ = 1 US$ = NRsNRs 7272

MarkMark--up = 40%up = 40%

EngineerEngineer’’s Cost Estimates Cost Estimate

Price Level = 2008 Price Level = 2008 NovemberNovember

1 US$ = 1 US$ = NRsNRs 8080

MarkMark--up = 26% + 23%up = 26% + 23%= 49%= 49%

Review StudyReview Study

Price Level = 2009 Price Level = 2009 MarchMarch

1 US$ = 1 US$ = NRsNRs 8080

MarkMark--up = 26%+14%up = 26%+14%= 40%= 40%

REVISED COST ESTIMATEREVISED COST ESTIMATE

-- Review Committee formed by UTKHPL BoardReview Committee formed by UTKHPL Board

-- Review Committee has presented Review Study Review Committee has presented Review Study Report together with Supplementary Report to the Report together with Supplementary Report to the UTKHPL BoardUTKHPL Board

-- Revised Project Cost Estimate is approved by Revised Project Cost Estimate is approved by UTKHPL BoardUTKHPL Board

-- The Revised Project Cost Estimate for Stage 1 The Revised Project Cost Estimate for Stage 1 Development (309 MW) is US$ 406 Million whereas Development (309 MW) is US$ 406 Million whereas for Stage 1+2 Development (456 MW) is US$ 441 for Stage 1+2 Development (456 MW) is US$ 441 Million.Million.

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COST COMPARISION COST COMPARISION –– STAGE 1STAGE 1(All amounts in Million US$)

ItemsItems Feasibility Feasibility StudyStudy

EngineerEngineer’’s Cost s Cost EstimateEstimate

Review StudyReview Study

A. LotA. Lot--1 Main Civil Works1 Main Civil Works 149.6149.6 199.2199.2 156.9156.9

B. LotB. Lot--2 2 HydromechanicalHydromechanical WorksWorks 24.524.5 26.826.8 18.818.8

C. LotC. Lot--3 Electromechanical Works3 Electromechanical Works 71.071.0 86.186.1 74.274.2

D. LotD. Lot--4 Transmission Line and Substation Work4 Transmission Line and Substation Work 24.824.8 28.528.5 18.918.9

E. Physical ContingenciesE. Physical Contingencies 27.627.6 29.129.1 22.822.8

Total (A+B+C+D+E)Total (A+B+C+D+E) 297.5297.5 369.7369.7 291.6291.6

F. Access Road, Preliminaries and Other WorksF. Access Road, Preliminaries and Other Works 14.914.9 22.022.0 22.022.0

G. Engineering and Construction SupervisionG. Engineering and Construction Supervision 16.316.3 19.019.0 20.020.0

H. OwnerH. Owner’’s Administration Costs Administration Cost 6.36.3 6.66.6 6.76.7

I. Land Acquisition, Environmental MitigationI. Land Acquisition, Environmental Mitigation 5.15.1 5.15.1 5.15.1

TOTAL COST (Without IDC)TOTAL COST (Without IDC) 340.1340.1 422.4422.4 345.3345.3

J. Price ContingenciesJ. Price Contingencies 41.041.0 34.134.1 26.926.9

TOTAL COST ( WITHOUT VAT )TOTAL COST ( WITHOUT VAT ) 381.1381.1 456.5456.5 372.2372.2

K. Value Added Tax (VAT)K. Value Added Tax (VAT) 10.610.6 25.925.9 24.524.5

TOTAL COST ( WITH VAT )TOTAL COST ( WITH VAT ) 391.7391.7 482.4482.4 396.7396.7

L. Provision for Additional Custom DutyL. Provision for Additional Custom Duty -- -- 9.99.9

GRAND TOTAL ( With VAT )GRAND TOTAL ( With VAT ) 391.7391.7 482.4482.4 406.6406.6

REVISED COST ESTIMATE (REVISED COST ESTIMATE (ContdContd……))

CIVIL WORKS:CIVIL WORKS:

1.1. Revision on General ItemsRevision on General Items2.2. Derivation of Revised Unit Rates for main itemsDerivation of Revised Unit Rates for main items3.3. Main Access TunnelMain Access Tunnel4.4. Reinforcement Steel QuantityReinforcement Steel Quantity

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HYDROMECHANICAL WORKS:HYDROMECHANICAL WORKS:

1.1. Penstock steel quantity decreased (about 40%)Penstock steel quantity decreased (about 40%)2.2. Review of steel rate based on prevailing market Review of steel rate based on prevailing market

price and rate analysisprice and rate analysis

ELECTRICAL AND MECHANICAL WORKS:ELECTRICAL AND MECHANICAL WORKS:

1.1. Review of costs of equipments based on Review of costs of equipments based on prevailing market price as well as with reference prevailing market price as well as with reference to recently completed Hydroelectric Projects.to recently completed Hydroelectric Projects.

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TRANSMISSION LINE & SUBTRANSMISSION LINE & SUB--STATION WORKSSTATION WORKS

1.1. Deferred Deferred ““Installation of 2nd circuit and Installation of 2nd circuit and associated subassociated sub--station works of station works of KhimtiKhimti--DhalkebarDhalkebar sectionsection”” under NEA scope.under NEA scope.

2.2. Review of costs of equipments based on Review of costs of equipments based on prevailing market price as well as with reference prevailing market price as well as with reference to recently completed NEA Projects.to recently completed NEA Projects.

Summary of Project CostSummary of Project Cost(All amounts in Million US$)

ItemsItems StageStage--11 Combine Stage Combine Stage 1 & 21 & 2

A. LotA. Lot--1 Main Civil Works1 Main Civil Works 156.9156.9 159.5159.5

B. LotB. Lot--2 2 HydromechanicalHydromechanical WorksWorks 18.818.8 18.818.8

C. LotC. Lot--3 Electromechanical Works3 Electromechanical Works 74.274.2 100.9100.9

D. LotD. Lot--4 Transmission Line and Substation Work4 Transmission Line and Substation Work 18.918.9 18.918.9

E. Physical ContingenciesE. Physical Contingencies 22.822.8 24.424.4

Total (A+B+C+D+E)Total (A+B+C+D+E) 291.6291.6 322.5322.5

F. Access Road, Preliminaries and Other WorksF. Access Road, Preliminaries and Other Works 22.022.0 22.022.0

G. Engineering and Construction SupervisionG. Engineering and Construction Supervision 20.020.0 20.020.0

H. OwnerH. Owner’’s Administration Costs Administration Cost 6.76.7 6.76.7

I. Land Acquisition, Environmental MitigationI. Land Acquisition, Environmental Mitigation 5.15.1 5.15.1

TOTAL COST (Without IDC)TOTAL COST (Without IDC) 345.3345.3 376.2376.2

J. Price ContingenciesJ. Price Contingencies 26.926.9 29.829.8

TOTAL COST ( WITHOUT VAT )TOTAL COST ( WITHOUT VAT ) 372.2372.2 406.1406.1

K. Value Added Tax (VAT)K. Value Added Tax (VAT) 24.524.5 24.924.9

TOTAL COST ( WITH VAT )TOTAL COST ( WITH VAT ) 396.7396.7 431.0431.0

L. Provision for Additional Custom DutyL. Provision for Additional Custom Duty 9.99.9 10.210.2

GRAND TOTAL ( With VAT )GRAND TOTAL ( With VAT ) 406.6406.6 441.2441.2

Summary of Project Cost DisbursementSummary of Project Cost Disbursement

Fiscal YearsFiscal Years StageStage--11 Combine Stage Combine Stage 1 & 21 & 2

(Without (Without RolwalingRolwaling))Up to 2064/65Up to 2064/65 0.700.70 0.700.702065/662065/66 0.900.90 0.900.902066/672066/67 4.884.88 5.295.292067/682067/68 7.487.48 8.128.122068/692068/69 9.439.43 10.2310.232069/702069/70 6.836.83 7.417.412070/712070/71 2.312.31 2.642.64

TotalTotal 32.5332.53 35.2935.29

(All amounts in Billion (All amounts in Billion NRsNRs including VAT and Custom duties)including VAT and Custom duties)

FINANCING PLANFINANCING PLAN

`̀

Total Investment RequirementTotal Investment Requirement

Total : 406.62 Million US$ (32.53 Billion NRs.)

Equity (30%) : 9.76 Billion NRs.Debt (70%) : 22.77 Billion NRs.

Investment and FinancingInvestment and Financing

StageStage--11 Combine Stage Combine Stage 1 & 21 & 2

Total InvestmentTotal Investment 32.5332.53 35.2935.29

Equity (30%)Equity (30%) 9.769.76 10.5910.59

Debt (70%)Debt (70%) 22.7722.77 24.7024.70

(All amounts in Billion (All amounts in Billion NRsNRs))

EQUITY DISTRIBUTIONEQUITY DISTRIBUTION

Nepal Electricity Authority Nepal Electricity Authority -- 51%51%Depositors of EPFDepositors of EPF -- 20%20%

General Public General Public -- 10%10%Local Public of Local Public of DolakhaDolakha District District -- 10%10%UTKHPL and NEA Staff UTKHPL and NEA Staff -- 6%6%Staff of EPF and other lenders Staff of EPF and other lenders -- 3%3%

DEBT FINANCINGDEBT FINANCING

MoUMoU ConcludedConcluded22CITCITUnder ProcessUnder Process22RastriyaRastriya BimaBima SansthanSansthan

2222TotalTotal

StageStage--11 RemarksRemarksEPFEPF 12(10+2)12(10+2) MoUMoU ConcludedConcludedConsortium of Consortium of Commercial BanksCommercial Banks

66 MoUMoU ConcludedConcluded

DeficitDeficit 0.770.77 Bond MarketBond Market

(All amounts in Billion (All amounts in Billion NRsNRs))

The Project is the most attractive project identified The Project is the most attractive project identified and justified from technical and economic and justified from technical and economic perspectives.perspectives.From environmental perspectives, none of the From environmental perspectives, none of the identified impacts have been classified as serious.identified impacts have been classified as serious.Financial closure to be completed before July 2009.Financial closure to be completed before July 2009.

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CONCLUSIONSCONCLUSIONS

PHOTOGRAPHSPHOTOGRAPHS

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Access Road Construction at SINGATI

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Access Road Construction near to BHORLE

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Access Road Construction

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Access Road Construction at GONGAR

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Access Road Construction near to GONGAR

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Access Road Construction at CHHETCHHET

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TEST ADIT AT GONGAR

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Natural Dam - Lamabagar

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Dam Axis - Lamabagar

56www.tamakoshihydro.org.np

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uppertamakoshi

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