NUPCHE LIKHU HYDROPOWER PROJECT (57.5 MW) · 2019-04-26 · Vision Energy and Power Private Limited...

NUPCHE LIKHU HYDROPOWER PROJECT

(57.5 MW)

Ramechhap, Nepal

Progress Report

November/December, 2018

------------------------------------------------------

Vision Energy and Power Private Limited

New Baneshwor, Kathmandu, Nepal

Tel : +977-14785528

Email : [email protected]

URL : www.veplinfo.com

http://www.hpp.com.np/

Brief highlights of the recent updates in the

Progress Report for November/December 2018 of Nupche

Likhu Hydropower Project

1. HR Audit has been completed and Report has been submitted

2. ISO certification is on process. Contract has been signed with URS Nepal P.

Limited.

3. New Recruitment - Company Secretariat Ms. Rita Niraula Poudyal for

Compliance Department has been recruited from Poush 11, 2075

4. Office shifting – The contract has been signed with the landlord and interior

design of the office is in process. New VEPL office is in Thapagaun, New

Baneshwor.

5. Introduction of New BOD member Mr. Khageswor Bohara (Renowned

Hydropower developer. Director of Kalanga Hydropower Project, BOD

member of Kanchan Development Bank)

6. EIA Report for project has been forwarded to MOE from DOED &

presentation was held on 23rd

December 2018.

7. Scoping notice for EIA of Transmission Line has been published on daily

newspaper and collection of muchulka has been completed

8. Access road from Umathirtha Mandir to Lahaksewar Village (6.344 km)

Location: Power house to Camp Area. Road construction has been completed

up to chainage 3+600m out of chainage 6+344m.

9. Detail Design of the project will be submitted by the consultant (EIM Pvt.

Ltd.) in next two months.

10. Tender drawing for bidding of contractors is going on.

11. Detail Design for camp facilities is going on and contractor selection for

Construction of camp house has been completed.

Table of Contents

CHAPTER ONE – BACKGROUND ............................................................................................................................... 1

1.1 Background ..................................................................................................................................................... 1

1.2 Vision, Mission & Objective of the company ................................................................................................. 1

1.3 Board of Directors ........................................................................................................................................... 1

1.4 About Chairman .............................................................................................................................................. 2

1.5 Sub-Committees .............................................................................................................................................. 2

1.6 Advisory Committee ....................................................................................................................................... 2

1.7 Organogram ..................................................................................................................................................... 3

1.8 Consulting Team ............................................................................................................................................. 4

CHAPTER TWO – PROJECT DESCRIPTION ............................................................................................................... 5

2.1 Introduction ..................................................................................................................................................... 5

2.2 Salient Features of the Project ......................................................................................................................... 6

2.3 Main Features of Project (Based on Draft Due Diligence Report) ................................................................ 10

Dividend Payout Capacity (Considering Project cost as per Draft Due Diligence Study Report) .............................. 10

2.4 Project Milestones (Completed Works) ......................................................................................................... 10

2.5 Project Milestones (Ongoing Works) ............................................................................................................ 11

CHAPTER THREE – OTHERS ..................................................................................................................................... 13

3.1 Public Hearing Notice published on Daily Newspaper ................................................................................. 13

3.2 Photos of Work at Site of the Project : .......................................................................................................... 14

3.3 Financial Closure ........................................................................................................................................... 17

3.4 Construction Work ........................................................................................................................................ 17

3.5 Investment Module ........................................................................................................................................ 17

Vision Energy and Power Private Limited Nupche Likhu Hydropower Project (57.5 MW) Kathmandu, Nepal Ramechhap, Nepal

November/December, 2018 1

CHAPTER ONE – BACKGROUND

1.1 Background

Vision Energy & Power Pvt. Ltd. (VEPL) is registered at Office of Registrar of

Company on Shrawan 2, 2073 with registration no 151997/073/074. It is

registered in Inland Revenue Department on Shrawan 28, 2073 with PAN No.

604286558.

Various professionals and well experienced persons in hydropower sector have

united together and come up with a concept of establishing this company,

which will construct/invest in energy producing companies.

1.2 Vision, Mission & Objective of the company

Vision Become well establish energy producing company in Nepal.

Mission To utilize the available resources for the development of energy in the country

To ensure attractive long term return to our shareholders through professional

management.

Objective Conduct feasibility study of transmission line and environment; perform detail

engineering design, research and survey for the electricity development.

Generate electricity through small or medium scale projects by using alternative

source of energy such as water, wind, solar power, biogas etc.

Sale of electricity to Nepal government and other institutions or supply of

electricity directly to consumers whenever necessary in wholesale or other basis.

1.3 Board of Directors

S.N. Name Position Qualification Experience

1 T. N. Acharya Chairman FCA, B.Com More than 15 years experience in various audit,

public sector & hydropower sector. Ex Board

Member of CIT, NEA, NAC and Current Board

Member of NTA.

2 Rajesh Kumar

Shrestha

Memb er MA (Economics) Renowned Hydropower Developer, Chairman of

Century Commercial Bank. Director (Finance&

Management) of Little Angles School and other

many companies.

3 Desh Bandhu

Karki

Member BBS and

Bachelor’s in

Community

Welfare

Development

More than 5 years of experience in various

sectors. Currently a Businessman.

4 Ramesh

Adhikari

Member B. Com 20 years experience in various government,

private and hydropower sector

5 Khageswor

Bohara

Member MBA Renowned Hydropower developer. Director of

Kalanga Hydropower Project

6 Bhimsen Kumar

Gautam

Member MBS, RA More than 20 years of experience in audit and

involved in various sectors.

7 Snigdha Bhatta Member B.A. / B.Sc. L.LB.

(Hons.) Course

Has experience in Legal Consultancies for more

than 5 years.


November/December, 2018 2

1.4 About Chairman

Mr. T. N. Acharya is a fellow Chartered Accountant with more than 15 years of experience in audit,

consultancy service and hydro power projects.

He is actively involved in development of various hydro powers in the form of investor and

consultant for the past decade. He is actively involved as financial consultant of various

Hydropower companies on behalf of Banks also.

• Current Board Member of Nepal Telecommunications Authority (NTA)

• Senior/Managing Partner at T. N. Acharya & Co., Chartered Accountants

• Member of The Institute of Chartered Accountants of Nepal (ICAN); The Institute of Chartered

Accountants of India (ICAI); and Management Association of Nepal.

• Has experience as Board Member of Nepal Airlines Corporation, Nepal Electricity Authority,

Citizen Investment Trust; Executive Member of The Institute of Chartered Accountants of

Nepal; and Member of Local Body Fiscal Commission under Ministry of Local Development

1.5 Sub-Committees

There are various sub-committees as follows:

1) High Level Coordination Sub-Committee

2) Advisory Committee

3) Technical Sub-Committee

4) Forest and Environment Co-ordination Sub-Committee

5) Financial Management Sub-Committee

6) Local Area Coordination Sub-Committee

7) International Coordination Sub-Committee

1.6 Advisory Committee

5 members Advisory Committee in the Chairmanship of Mr. Umesh Shrestha (Member of

Parliament, Renowned businessman, Founder Chairman of Little Angels School). Other

Members of the Advisory Committee are Mr. Jiwan Bahadur Shahi, Mr. Hitraj Pandey.


November/ December, 2018

1.7 Organogram

Vision Energy & Power Pvt. Ltd. Board of Directors

High Level Coordination Sub-Committee

Technical Sub-Committee

Advisory Committee

International Co-ordination Sub-Committee

Technical Department

Public Relation Department

Finance Department

Administration Department

Local Coordinator

Project

Manager

Public Relation Officer

Finance

Manager

Administration

Manager

Civil Engineer

Electrical Engineer

Mechanical Engineer

Local Coordinator Assistant

Assist. Public Relation Officer

Account

Assistant

Admin Assistant

Civil Sub Engineer

Electrical Sub Engineer Mechanical Sub Engineer

Geologist Project Engineer

Executive

Chairman

Province Coordinator

Compliance Department

Consultant/Contractors

Legal Advisors

Local Area Coordination Sub-Committee


November/ December, 2018 4

1.8 Consulting Team

SN Particulars Name of Consultant

1. Desk Study of Project E.I. Maven Pvt. Ltd

2. Feasibility Study of Project (57.5

MW)

E.I. Maven Pvt. Ltd

3. Desk Study of Transmission line E.I. Maven Pvt. Ltd

4. Feasibility Study of Transmission

line

E.I. Maven Pvt. Ltd

5. Topographic Survey of the

project

R.K. Survey Company Pvt. Ltd.

6. Topographic Survey of the

Project access road and

transmission line

R.K. Survey Company Pvt. Ltd.

7. EIA of the Project Nepal Environmental and Scientific Services (P) Ltd.

8. EIA of Transmission line Nepal Environmental and Scientific Services (P) Ltd.

9. ERT Explorer Geophysical Consultants Pvt. Ltd.

10. Geological/Geotechnical

Interpretation Report by MASW,

MAM and SRT with ERT

Geophysical Research and Consultancy Service (P).

.Ltd.

11. Review of Feasibility Report Keshav Raj Bhatta (Expert: Director of NEA).

Bijay Lal Shrestha (Designer)

Prakash Man Singh (Geologist)

Dr. Prem Chandra Jha (Hydrologist)

Surendra Awasti (Civil Engineer)

12. Automatic Gauge Station Real Time Solutions Pvt. Ltd.

13. DPR E.I. Maven Pvt. Ltd.

14. Due Diligence Study Sanima Hydro and Engineering Pvt. Ltd.



CHAPTER TWO – PROJECT DESCRIPTION

2.1 Introduction

VEPL aims to develop Nupche Likhu Hydropower Project in Ramechhap District using

local technical, managerial and financial capability and is dedicated to supply the power to

the National Grid to fulfill domestic energy demand. This Project is a run-of-river (RoR)

hydropower project.

Fig.: Project Layout Source: Google Earth

The Nupche Likhu Hydropower Project (57.5 MW) is located in Gumdel VDC (Currently

Umakunda Rural Municipality) of Ramechhap District, Nepal. The proposed intake of the

Nupche Likhu Hydropower Project is located North of Lahaksewar village in left bank of

Nupche Khola at an elevation of 3330m above msl.

The source of water for Nucphe Likhu hydropower project is originated from snow fed

rivers starting from the High Mountain/Hilly areas.

The project is proposed to develop with an installed capacity of 57.5 MW by utilizing a

design discharge of 7.11 m3/s with a gross head of 994m.



2.2 Salient Features of the Project

S.N. Particulars Remarks

1. General

Name of the Project Nupche Likhu Hydropower Project

Type of the Project Snow fed Run-off River Hydropower Project

2. Location

Zone/ Development Region Janakpur Zone/Central Development Region

District Ramechhap

Project Location Umakunda Rural Municipality, (Gumdel VDC)

River Nucphe Khola and Likhu Khola

License Boundary

Longitude 86°26’30” E - 86°30’30” E

Latitude 27°40’37” N - 27°43’37” N

3. Hydrology

Catchment Area at Headworks 150 Km2 (Nupche 82km2&Likhu 68 km2)

Design Discharge (Q 45 %) 3.89 m3/s+ 3.22 m3/s (Nupche & Likhu) = 7.11m3/s

Catchment Area at powerhouse:

100 yrs. Flood at Nupche

Headworks

76 m3/s

100 yrs. Flood at Likhu

Headworks

63m3/s

100 yrs. Flood at Powerhouse 178m3/s

4. Likhu- Headworks

Weir

Type Boulder line weir

Spillway length 18.80 m

Weir crest level 3338.00 m amsl

Undersluice

Sill level 3334.3 m amsl

Size 3 m x 2.5 m

Intake

Type Orifice, Side Intake

No. 2

Size 2 m x 1.2 m (W x H)




Gravel Trap

Type Single, Duffer

Size 4 m x 4.5 m

Settling Basin

Basin No. 2

Type Double Bay Duffer

Size 75 m x 7.9 m x 6.2 m each

5. Nupche - Headworks

Weir

Type Boulder line weir

Spillway length 27.0 m

Weir crest level 3338.00 m amsl

Undersluice


Size 3 m x 2.5 m

Intake

Type Orifice, Side Intake

No. 2

Size 2.2 m x 1.2 m (W x H)


Gravel Trap

Type Single, Duffer

Size 4 m x 5 m

Settling Basin

Basin No. 2

Type Double Bay Duffer

Size 82 m x 8.7 m x 6.9 m each

6. Headrace Pipe

Headrace Pipe 839 m & 160 m (Likhu & Nupche River)

Headrace Pipe Dia 1.6 m & 1.6 m (Likhu & Nupche River)

Thickness 8 mm

7. Tunnel Length

Nupche Intel Portal to Junction 1673 m

Likhu Intel Portal to Junction 1424 m



Outlet/Surge Tank to Junction 3242 m

Adit Tunnel Length 360 m

Tunnel Size 2.8m x 3.5m

8. Surge Tank

Type Underground, Circular

Diameter 6 m

Height 33 m

Up surge level 3342.00 m amsl

Normal operating level 3334.92 m amsl

Down surge level 3326.70 m amsl

9. Penstock Pipe Length

Total Steel Penstock Pipe 2780 m

Internal Diameter 1.3-1.6 m

Thickness 8 mm to 44 mm

Steel Lined Vertical shaft 170 m

Steel Lined Tunnel 230 m

10. Power House

Type Surface

Size (L x B x H) 48.5 m x 24.2 m x 16.78 m

Turbine center line 2336 m above msl

Number of Generating Units 3

Turbine Type Pelton

11. Tail-Race Canal

Type Box Culvert

Size 1.5 m x 2 m (each)

Length 38 m

12. Power and Energy as per

PPA

Gross Head 994 m

Net Head at Full Flow 967.15 m

Installed Capacity 57.5 MW

Generated Energy per Annum 139.76 GWh, 36.61% (Dry) and 241.98 GWh, 63.39%

(Wet) Total: 381.74 GWh

13. Transmission Line & Grid This project has to develop the approx. 30 km 132 kV line

up to National grid at 132 kV switchyard of Proposed NEA

Hub at Garjan Substation, Ramechhap district.



14. Approach Road Connection There is an existing all weather road up to Manthali

which is 131km from Kathmandu. From Manthali to

Kyama, Gumdel VDC, there is partly stone paved

earthen road which is about 125 km long and to the

proposed PH site of the project, there exist a foot trail of

about 12 km.

15. Project Road to HW & PH 34 km (estimated)

16. Approximate Cost of

Project

10,578 million NPR (Subjected to increase/decrease after

DPR & DDS)

17. Approximate Construction

Period :

4 Years

18. Required Commercial

Operation Date (RCOD)

2080/05/02(2023/08/19)

19. Financial Indicators

IRR 17.64%

EIRR 27.18%

NPV Nrs. 7,293,135 thousands

BC Ratio 1.82

Pay -back Period –Simple 4.75 Years

Pay-back Period - Discounted

7.64 Years

7.64 Years

DSCR Ratio 1.77



2.3 Main Features of Project (Based on Draft Due Diligence Report)

1. Internal Rate of Return (IRR): 17.64% , Equity Internal Rate of Return (EIRR): 27.18%

2. Simple Payback Period: 4.75 Years; Discounted Payback Period: 7.64 years.

3. The Project has high head. It ensures cost efficiency and high energy.

4. High Energy per MW (6.63 GWh p.a.), Dry Energy 36.61% and Wet Energy 63.29%

5. Total project cost of the project : 10,578,458 thousands and total cost per MW = Nrs.183,973

thousands

6. Income Per MW: More than NPR 4 Crore

7. Professional, Transparent and Responsible Management.

8. Aims to benefit Small Investors too.

9. Focused on high Return on Investment and high value in secondary market

Dividend Payout Capacity (Considering Project cost as per Draft Due Diligence Study

Report)

a. No Change in Project Cost, Revenue & Interest Rate: Year 2081-26%, Year 2082-30%, Year

2083-35%, Year 2084-40%, Year 2085-45% and from Year 2086 to 2110 - 45% - 80%

b. Project Cost increase by 5%, Revenue Decrease by 5% & Interest Rate at 12%: Year 2081-17%,

Year 2082-21%, Year 2083-25%, Year 2084-30%, Year 2085-35% and from Year 2086 to

2110- 35% - 70%

c. Project Cost increase by 10%, Revenue Decrease by 10% & Interest Rate at 12%: Year 2081-

10%, Year 2082-14%, Year 2083-15%, Year 2084-24%, Year 2085-25% and from Year 2086

to 2110 – 25% - 60%

2.4 Project Milestones (Completed Works)

S.N Activities Status Remarks

1 Survey License of project License obtained of 57.5 MW on

2074/06/29(15/10/2017)

Completed.

2 Topography Survey of Project Topography Survey Report Obtained Completed.

3 Quality Measurement of Water Report of Water Measurement has

been obtained.

Completed.

4 Electronic Resistivity

Tomography (ERT)

ERT Consultant has Completed ERT

Works and has submitted Final

Report.

Completed.

5 Geological and Geotechnical

Interpretation Report By

MASW, MAM and SRT with

ERT

Consultant team has submitted the

Final Report

Completed

6 Feasibility Study report of

project

Final Feasibility Study Report has

been obtained from Consultant and

submitted to DOED for approval.

Completed.

7 Review of Feasibility Study

Report of Project by

Independent Consultant Team

The Expert team has submitted Final

review report after field visit.

Completed



8 Approval from Ministry of

Forest.

Approval for Survey Work Obtained. Completed.

9 Desk Study Report of

Transmission line

The consultant team has submitted

Final Desk Study Report.

Completed.

10 Survey license of Transmission

line

License obtained for transmission line

on 2074/12/15 (29/3/2018)

Completed.

11 Transmission Line Survey Transmission Line Survey license

obtained from DOED. Consultant has

submitted the final report of survey

Completed

12 Grid Agreement Connection Agreement has been

entered with NEA to evacuate the

power at Garjyang Sub-station.

(Estimated distance 30 KM).

Completed.

13 PPA PPA has been done with Nepal

Electricity Authority (NEA) on

2074/11/28 (12/03/2018).

Completed.

14 Road Survey The consultant has completed the

survey work

Completed

2.5 Project Milestones (Ongoing Works)

S.N Activities Status Remarks

1 Environment Impact

Assessment (EIA) study of

Project

EIA Consultant has completed initial

field visit and has submitted

preliminarily report. Further the

consultant has presented TOR in

Department of Electricity

Development (DOED) for approval.

EIA Report has been forwarded to

MOE from DOED & presentation is

going to held on 23/12/2018

Ongoing

2 Feasibility Study report of

Transmission line

Consultant team has submitted the

draft Feasibility Study Report

Ongoing

3 Environment Impact

Assessment (EIA) study of

Transmission line.

Scoping notice has been published on

daily newspaper and process of

collection of muchulka is ongoing

process.

Ongoing

4 Detail Design/DPR Agreement with technical Consultant

has been completed.

Work is being done as per

agreement. Expected date

May 2019

5 Generation License Will be applied after approval of

Feasibility Study report.

Ongoing

6 Gauge Station Installation Automatic Gauge Station has been

Installed at Project Site.

Collection of data from

the Gauge Station is going

on.

7 Land Acquisition

Required lands for the project are

identified. 45% of Land acquisition

completed.

Acquisition of required

lands will be completed

within Chaitra 2075.

(Timeline & Required

land changed due to small

changes in penstock

alignment).



7 Access road from Umathirtha

Mandir to Lakschewar Village

(6.344 km)

Location: Power house to Camp

Area

1) Contactor & equipments for

Access road has been mobilized to

site & has started the work.

2) Excavation, boulder breaking etc,

has been done.

3) Excavation for road construction

has been completed up to chainage

3+ 500 (3500 m) out of 6+300

(6300m)

Ongoing.

8 Up-gradation of local road from

Gumdel to Kyama (Approx. 5

km)

Out of 7 km, approx 3.5 km road has

been upgraded

Ongoing

9 Due Diligence Study The Consultant has visited the site. Draft Report has been

submitted & under review.

10 Electromechanical Works Discussion with potential supplier is

going on.

Ongoing

11 Camp Facilities Final Design of Camp area for outlet

has been completed and selection of

potential contractor has been going

on.

Ongoing

12 HR, Finance and Good

Governance Related Activities

HR, Finance & corporate

Governance Guidelines is finalized.

Approval from BOD is

remaining.



CHAPTER THREE – OTHERS

3.1 Public Hearing Notice published on Daily Newspaper



3.2 Photos of Work at Site of the Project :

Fig. 1 Ongoing Access Road Construction from Power House to Camp Area

Fig 2: Ongoing Boulder Breaking Works near Power House Area



Fig 3: Ongoing Road Upgradation Works from Gumdel to Kyama

Fig 4: Ongoing Road Upgradation Works from Umathirtha Mandir to Lakschewar Village



Fig 5: Recent snowfall at Lakschewar i.e Camp Area



3.3 Financial Closure

After PPA, the process for financial closure with Banks is going

on. The company aims to finalize financial closure within Poush

End 2075.In special case it is targeted maximun Falgn End 2075.

Various meeting and presentation are going on with various banks

for loan process for the project.

3.4 Construction Work

The company will start its construction work after

obtaining Generation Liscence. The company plans

to generate electricity within the period of 4 years

from the commencement of construction work

subject to complex disturbances. The construction

work will be commenced after the completion of

the first stage and second stage. Currently

agreement has been done for road construction and

work has been started as per TOR. Identification of

contractors is going on for other construction

works.

3.5 Investment Module

The Investment in Promoters Share has been closed from Aswin End 2075. However any interested

person can apply for the Promoters Share with special approval from the Management. In this case

maximum & minimum limit of the investment will be same as before. Investment schedule will be as

per the Management decision.

Vision Energy & Power Pvt. Ltd.

New Baneswor, Kathmandu, Nepal

Phone No: 01-4785528

Email: [email protected]

Website: www.veplinfo.com

NUPCHE LIKHU HYDROPOWER PROJECT (57.5 MW) · 2019-04-26 · Vision Energy and Power Private Limited...

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Transcript of NUPCHE LIKHU HYDROPOWER PROJECT (57.5 MW) · 2019-04-26 · Vision Energy and Power Private Limited...