NUPCHE LIKHU HYDROPOWER PROJECT (57.5 MW)

Vision Energy & Power Pvt. Ltd Nupche Likhu Hydropower Project (57.5 MW)

NUPCHE LIKHU HYDROPOWER PROJECT

(57.5 MW)

Ramechhap, Nepal

Project Progress Report

Baisakh – Ashadh, 2078

Vision Energy and Power Private Limited

New Baneshwor, Kathmandu, Nepal

Tel: +977-01-5244998

Email: [email protected]

WEBSITE:www.veplinfo.com/


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Executive Summary

This Progress Report is prepared for providing information about the progress of Nupche Likhu

Hydropower Project (NLHP), Ramechhap (57.5MW). It contains the information about the

project activities and progress of the months of Baisakh to Ashadh, 2078. The major

achievements during the period are:

A. Forest and EIA Related Works

1. Procurement of Land for the replacement of the government land used by the Project has

been completed;

2. Agreement with the concerned government agencies for the tree cutting has been

completed;

3. Field Work for Tree Counting and Stamping is Completed;

4. Tree cutting work is going on in parallel to the Construction of access roads of the

Project;

5. “Term of Reference (ToR)” to conduct the study of Initial Environmental Examination

(IEE) of the transmission line has been approved by the Government of Nepal, Ministry

of Energy, Water Resources and Irrigation (MoEWRI), Kathmandu;

6. Preparation of “Environmental and Social Management Plan” for the Developer, Civil

Contractor and other Contractors is under progress.

B. Preliminary/Preparatory Works

1. Taking over of Camp facilities from the Contractor has been completed;

2. Construction of Army Camp Facilities and Bunker house has been completed;

3. Installation of Nepal Telecom Tower at the site has been completed;

4. Contract Agreement for the construction of whole project access roads (For Surge Shaft,

Nupche HWs, Likhu HWs) has been completed;

5. About 40 % of the construction of access road has been completed;

6. Detailed design of the Likhu River bridge has been completed;

7. Construction of Civil works of Likhu River bridge has been going on;

8. The construction Power Distribution Lines and Associated Structures is under progress;

9. The construction of Health post for the local community and the project has been

completed.

C. Civil Works

1. Contractor’s camp facilities, crusher plant, and material testing lab has been established

by the Civil Contractor;

2. Civil work is going on at Vertical Shaft, Penstock Tunnel, and Anchor Blocks;


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3. Portal preparation for the vertical shaft has been completed and excavation of the Shaft is

going on;

4. Portal preparation and related works for Penstock Tunnel is under progress;

D. EM/HM Works

1. The contract agreement for the Electromechanical (EM) Works has been signed with

Voith Hydro Pvt. Ltd.;

2. Technical Bid Evaluation for Hydromechanical (HM)Works is in the last stage.

E. Transmission Line

1. Layout of the Transmission Line in the field has been completed;

2. Land acquisition works for the Transmission Line is going on;

3. Bid Evaluation for Transmission Line Works is in progress;

4. Processes required for Bay allocation at NEA Gargyang Sub-station has been started;

F. Planning, Governance and Other Works

1. The Final Project Implementation Plan has been revised and finalized;

2. The company has completed all the processes of ISO (International Standards

Organization) 9001:2015 certifications;

3. The credit rating of the Vision Energy & Power Pvt. Ltd. (Nupche Likhu Hydropower

Project) for the purpose of loan disbursement is completed from ICRA Nepal;

4. Some of the major plan for next quarter is discussed in detail report. Please refer to the

status of the project below.


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Contents

Section A- About the Project

1. Introduction ............................................................................................................................ 5

1.1 Background ....................................................................................................................... 5

1.2 About the Project .............................................................................................................. 5

1.3 Location & Access: .......................................................................................................... 5

1.4 Main Financial Features of the Project ............................................................................. 5

1.5 Salient Features of the Project .......................................................................................... 6

1.6 Investment Module ........................................................................................................... 7

2. Human Resources and Good Governance ........................................................................... 7

2.1 Organization Chart ........................................................................................................... 7

2.2 Good Governance ............................................................................................................. 8

3. Project Implementation ......................................................................................................... 8

3.1 General .............................................................................................................................. 8

4. Current Status of the Project .............................................................................................. 10

4.1 Completed Works ........................................................................................................... 10

4.2 Ongoing Works of the Project ........................................................................................ 13

4.3 Challenges Faced: ........................................................................................................... 14

4.4 Financial Progress........................................................................................................... 15

4.5 Loan Details .................................................................................................................... 16

4.6 Planning for the next quarter .......................................................................................... 16

Annex – 1: General Layout Map of the Project ......................................................................... 17

Annex – 2: Some Glimpse for the Completed and Ongoing works of NLHP ........................... 18


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Section A: About the Project


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1. Introduction

1.1 Background

Vision Energy Power Pvt. Ltd (VEPL) aims to develop Nupche Likhu Hydropower Project (57.5

MW) 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. The

project is a run-of-river (RoR) hydropower project.

1.2 About the Project

The proposed Nupche Likhu Hydropower Project is located in Gumdel VDC of Ramechap

district of Nepal. The source of water for the project is originated from Nupche and Likhu rivers

which are snow fed Rivers starting from the High Mountain/Hilly areas. The proposed intake of

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

Nupche Khola with its weir crest level at an elevation of 3338 m above amsl and the right bank

of Likhu Khola with its weir crest level at an elevation of 3338 m above amsl. The powerhouse

is located on the right bank of the Likhu Khola with the turbine center line level at 2336 m amsl.

The gross head estimate is 1003.5 meter and design discharge is 7.11 m3/sec.

1.3 Location & Access:

The project can be access from Kathmandu through an existing all-weather road up to Manthali

(131 km) or 94 km road from Bardibas. After Manthali, following about 125 km partly stone

paved earthen road reaches up to Kyama, Gumdel VDC. Furthermore, from Kyama an access

road has been reached near to Kongematar village, the proposed powerhouse site, Surge Shaft

and to Lahaksewar village which is the residential area for the project employees.

1.4 Main Financial Features of the Project

Total project cost of the project: 10,578,458 thousand and total cost per MW = NRs. 183,973

thousands

Internal Rate of Return (IRR): 17.50 %, Equity Internal Rate of Return (EIRR): 27.57%

Simple Payback Period: 4.75 Years; Discounted Payback Period: 7.68 years.

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

Income Per MW: More than NPR 4 Crore.

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

Professional, Transparent and Responsible Management.

Aims to benefit Small Investors too.

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


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1.5 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 m

3/s (Nupche & Likhu) = 7.11m

3/s

4. Nupche & Likhu- Headworks

Weir

Type Boulder line weir

Bed Load Sluicer

Type Bed Load

Intake

Type Orifice, Side Intake

Gravel Trap

Type Single, Duffer

Settling Basin

Type Double Bay Duffer

5. Headrace Pipe

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

6. Tunnel Length

Total Length 6661 m

Tunnel Size 3.2 m x 3.8m (Excavation Size)

7. Surge Tank

Type Underground, Circular

8. Penstock Pipe Length

Total Steel Penstock Pipe 2481 m

Steel Lined Vertical shaft 291 m

Steel Lined Tunnel 580 m

9. Power House

Type Surface

Turbine Type Pelton

10. Tail-Race Canal

Type Box Culvert

11. Power and Energy

Gross Head 1003.5 m

Net Head at Full Flow 968.46 m


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Installed Capacity 57.5 MW

Generated Energy per Annum 139.821 GWh, 36.64% (Dry) and 241.791 GWh, 63.36%

(Wet) Total: 381.612 GWh

12. Transmission Line & Grid

24 km 132 kV line up to National grid at 132 kV

switchyard of Proposed NEA Hub at Garjyang

Substation, Ramechhap district.

13. Project Road to HW & PH 29.75 km

14. Generator

Number of units 3

Synchronous speed 750 rpm

Runaway speed 1350 rpm

15. Transformer

Rated Capacity 8 MVA (1-phase)

Quantity 10 nos. (Including spare)

16. Approximate Cost of Project

10,578 million NPR (As per DDS report by DDS

consultant for bank “Sanima Hydro & Engineering

Pvt. Ltd.”)

17. Approximate Construction Period: 4 Years

18. Required Commercial Operation

Date (RCOD)

2080/05/02 BS

2023/08/19 AD

1.6 Investment Module

The investment in Promoters Share has been closed from Ashwin 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.

2. Human Resources and Good Governance

2.1 Organization Chart

The organization structure of Nupche Likhu Hydropower Project has been prepared considering

construction, Operation & Maintenance phases of the Project. The detained organization chart is

presented in the official website of the company i.e. www.veplinfo.com.

http://www.veplinfo.com/

Vision Energy & Power Pvt. Ltd. Nupche Likhu Hydropower Project (57.5 MW)

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2.2 Good Governance

Nupche-Likhu Hydropower Project has proposed Performance Based Incentive program for its employee.

The key performance area (KPA) and Key performance index (KPI) is developed for whole project

period. Based on the developed KPI the performance evaluation mechanism is developed. Further,

1. Various manuals such as Finance Manual, Human Resource Manual, Investment Manual,

Corporate Governance Guidelines, Performance Evaluation Guidelines, Project Management

Guidelines, Branding Guidelines, etc. are in practice.

2. Formation of various committees such as High-level coordination sub-committee, Audit

Committee, Local Area Co-ordination Sub-Committee and International Co-ordination Sub-

Committee.

3. Recruitment of highly professional consultants.

4. Work plan assigned to each executive level and working level personnel.

5. Performance evaluation of each personnel conducted on quarterly basis.

6. Compliance officer appointed for legal and internal guidelines compliance.

7. Regular meeting of Board of Directors and Various Committees.

8. Unique investment module and mechanism to select quality investors.

9. Integrity, transparency, legal compliance, team work, higher return, responsibility, safe

investment, accountability are the core values of the Company.

3. Project Implementation

3.1 General

The company has obtained the Generation Liscence. It has planned to generate electricity within

the period of 4 years from the commencement of construction work. Civil contractors, explosives

suppliers and supervision & management consultants has been selected and agreement has

already been signed. The Civil Contractor has been mobilized to the project construction site and

has started the construction. Construction of Camp has been completed. Contract for EM Works

has been awarded. Bid evaluation of HM works is in final stage. Bid evaluation of Transmission

Line (TL) work is under process. Detailed progress of the project is also presented in the official

website of the company i.e. www.veplinfo.com.

http://www.veplinfo.com/


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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%100%

4% 0% 0% 0%

44%

10% 3.27%

23.33%

38.63%

6.26%

18.93%

34.22%

Work Progress

Section B: Current Status of the Project


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4. Current Status of the Project

4.1 Completed Works

4.1.1 Forest and EIA Related

A. Major Completed Works

Environmental Impact Assessment (EIA) study of Project has been approved;

The application for approval of 'Tree Cutting and use of Government Land' has

been approved from the Council of Ministers;

Procurement of Land for the replacement of the government land used by the Project

has been completed;

The agreement between Department of National Parks and Wildlife Conservation,

Department of Forests and Soil Conservation and Vision Energy and Power Pvt. for

use of 'Tree Cutting and use of Government Land’ has been signed on 30th

Chaitra, 2077.

Field Work for Tree Counting and Stamping is Completed;

“Term of Reference (ToR)” to conduct the study of Initial Environmental

Examination (IEE) of the transmission line has been approved by the Government of

Nepal, Ministry of Energy, Water Resources and Irrigation (MoEWRI), Kathmandu;

Preparation of “Environmental and Social Management Plan” for the Developer, Civil

Contractor and other Contractors is under progress.

4.1.2 Preliminary/Preparatory Works


Survey License of the project has been obtained for 57.5 MW on 2074/06/29

(15/10/2017);

Power Purchasing Agreement (PPA) has been done with Nepal Electricity

Authority (NEA) on 2074/11/28 (12/03/2018);

Financial Closure has been completed with the following banks::

i. Machhapuchchhre Bank Ltd. (Lead Bank)

ii. Himalayan Bank Ltd. (Co-Lead Bank)

iii. Citizens Bank International Ltd.

iv. NCC Bank Ltd.

v. Kumari Bank Ltd.

vi. Agriculture Development Bank Ltd.

vii. Rastriya Banijya Bank Ltd.

viii. Bank of Kathmandu Ltd.


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ix. Kamana Sewa Bikash Bank Ltd.

Generation License has been obtained on 12/10/2076;

The Survey License of Transmission Line for the 4th year i.e., up to 2078/12/14 has

been renewed;

Automatic Gauge Station has been Installed at Project Site;

Hydroelectricity Investment and Development Company (HIDCL) has approved

to invest in equity share capital of Vision Energy and Power Pvt. Ltd (VEPL);

Detailed Engineering Design of the Project & Transmission Line has been

completed;

The Construction of Camp House and associated facilities has been completed;

Bank’s consultant for the project has been selected;

B. Other Completed Works

Access road from Lahaksewar to Surge Shaft (8.5 km) has been constructed up to 7.5

km out of 8.5 km;

The construction of access road for the for Nupche Headworks up to 4 km has been

completed;

The construction of access road for the for the Likhu Headworks up to 5 km has been

completed;

Improvement of Bhandar to Gumdel Road (also called Madyemargi road) has been

completed;

About 40 % of the construction of access road has been completed;

Gabion and soling and protection work on road alignment from Umatirtha to

Lahakshewar has been completed;

Land acquisition required for the project has been completed;

Contractor for the construction of superstructure of Likhu Bridge has been selected;

Consultant for the detailed design of Nupche River bridges has been selected;

Contract for construction of civil works of Likhu bridge has been awarded, mobilized

to site and has concreted the footing works of first pier;

First rehabilitation Works of the access road from the Powerhouse to Camp house has

been completed;

The construction of Health post for the project personnel and the Local Community

has been completed;

Application for Extension of Required Commercial Operation Date (RCOD) has been

submitted. The company has applied for the one-year extension;


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Improvement of Bhandar to Gumdel Road (also called Madyemargi road) has been

completed.

4.1.3 Civil Works


The contract for “Construction of Civil Works” has been awarded and contractor

has been fully mobilized to the site.

The Contract for “Construction Supervision and Management” team has been

mobilized to the site.


Portal preparation for the Vertical Shaft has been completed.

Material testing lab has been established.

Crusher plant has been established.

About 30 % of the work for the contractor’s camp facilities has been completed.

4.1.4 EM/HM Works


Contract has been signed VOITH Hydro Pvt. Ltd. for EM Works

4.1.5 Transmission Line


Layout of the Transmission Line in the field has been completed.

Processes required for Bay allocation at NEA Gargyang Sub-station has been started.

Invitation to Bid for the selection of potential contractor for Transmission Line and

Interconnection Works has been completed;


Bidders have visited the site and submitted their bid;

Bid Evaluation for Transmission Line Works is in progress

4.1.6 Planning and Other Works


The Final Project Implementation Plan has been revised and finalized.

The company has completed the ISO 9001:2015 certifications process successfully.

The credit rating of the Vision Energy & Power Pvt. Ltd. (Nupche Likhu Hydropower

Project) for the purpose of loan disbursement has been completed from ICRA Nepal.


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Application for Extension of Required Commercial Operation Date (RCOD) has been

submitted. The company has applied for the one-year extension.

4.2 Ongoing Works of the Project

4.2.1 Forest and EIA Related Works

A. Major Ongoing Works

Tree cutting work is going on in parallel to the Construction of access roads of the

Project;

Preparation to conduct Public Hearing for IEE of Transmission Line is in progress;

B. Other Ongoing Works

Preparation of checklist for the Environmental and Social management plan is in

progress;

4.2.2 Preliminary/Preparatory Works


The construction of access road for the Nupche Headworks is in progress;

The construction of access road for the Likhu Headworks is in progress;

The construction of access road for the Outlet Portal, Surge Shaft, Vent Tunnel is in

progress;

The construction of structures like warehouse, Guardroom etc. is in progress;

Supply of Explosives and deployment of army at NLHP site;


Equity collection from the shareholders is in progress;

The documents verification works for the disbursement of loan with the financial

bank is in progress;

The negotiation and Contract Agreement for the Construction Power required for the

project with downstream project is under progress;

Contract award for the detailed design of two nos. of Nupche Bridges;

Contract award for the construction of superstructure of the Likhu Bridge;

The discussion regarding the alignment of access road with downstream hydropower

project (Likhu 1 HP) is in progress;

4.2.3 Civil Works


Portal preparation for the Penstock tunnels is under progress;


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Construction of foundation for Gantry system in vertical shaft is in progress;

Excavation of Vertical shaft is in progress;

Construction of the contractor’s camp facilities is in progress;


Storage of adequate construction material and equipment at site is going on

4.2.4 HM (Hydromechanical) Works


Negotiation with the hydromechanical bidders is in progress.

4.2.5 Transmission Line


Bid Evaluation for Transmission Line Works is in progress.


Discussion with the design consultant.

Identification of land for acquisition for Transmission Line is in progress.

4.2.6 Planning and Other Works


Blasting plan

Explosive’s storage plan

B. Others Ongoing Works

Site Office Staff Management Plan-2078 for Site Office.

Camp management Plan

Drainage system plan of camp area

4.3 Challenges Faced:

Though the company is committed to complete the work in stipulated time and schedule and

despite the availability of multiple resources, company struggles to tackle the project

management challenges and issues related to the processes and directions of government, local

community etc. This section shall point out the major challenges we have faced.

1. Government Prohibitory Order due to Covid-19 Pandamic;

2. Monsoon

3. Equity collection


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Management Plan for the Mitigation of Challenge

The company has extensively planned and arranged the resources for the smooth operation of

the project with coordination of Civil Contractor.

Adequate materials for the monsoon have been stocked at site by the Civil Contractor.

Management has extensively planned to collect equity with the shareholders. Various

correspondence, discussion and interaction are going on and we are gradually entering into a

comfortable zone.

4.4 Financial Progress

Vision Energy & Power Pvt. Ltd records important financial data on every aspect of a business’s

activities. As such they can be evaluated on the basis of past, current, and projected performance.

Below is the financial progress data to manage the operations of our business and also to provide

reporting transparency to our stakeholders.

Allocated Budget Vs. Actual Utilization Upto End of Ashadh, 2078

SN Particulars Total Budget

(NPR)

Utilization (expenses

+ Advance)

Upto 31st, Ashadh

2078 (NPR)

Balance Budget

(NPR)

Utilization

%

1 Preliminary Works 24,69,69,000 246,601,761.00 367,239.00 99.85%

2 Civil Works 3,76,57,06,000 161,619,782.79 3,604,086,217.21 4.29%

3 Electromechanical Works 1,56,64,38,000 - 1,566,438,000.00 0.00%

4 Hydro Mechanical Works 1,13,33,71,000 - 1,133,371,000.00 0.00%

5 Transmission line &

Switchyard 47,40,75,000 5,290.00 474,069,710.00 0.00%

6 Land Acquisition/

Compensation/Development 12,70,50,000 55,781,511.74 71,268,488.26 43.91%

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Project

Supervision/Management and

Engineering

41,45,49,000 55,518,353.56 359,030,646.44 13.39%

8 Construction Design, Drawing

and DPR 11,43,56,000 3,734,935.00 110,621,065.00 3.27%

9 Office Building including

Camp Facilities 22,64,79,000 88,274,744.67 138,204,255.33 38.98%

10 Office Equipment 4,03,42,000 12,849,870.66 27,492,129.34 31.85%

11 Vehicle 8,89,90,000 5,574,933.17 83,415,066.83 6.26%

12 Infrastructure Development

(Temporary and Permanent) 78,04,70,000 195,183,830.85 585,286,169.15 25.01%

13 Environment Mitigation and

Social Responsibility 10,66,80,000 36,831,302.45 69,848,697.55 34.53%

14 General Expenses 7,35,01,000 - 73,501,000.00 0.00%

15 Loan Documentation Fee 6,96,85,000 56,054,960.00 13,630,040.00 80.44%

16 Interest During Construction 1,34,97,97,000 - 1,349,797,000.00 0.00%

Total 10,57,84,59,000 918,031,275.89 9,660,426,724.11 8.68%

Remarks: Till the end of Ashadh, 2078, 8.68 % of the budget is utilized.


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4.5 Loan Details

Total loan from nine Consortium Banks is 7.93 crores. Loan disbursement during this period is

Nil. Total cumulative loan disbursement till this period is Nil. Bridge Gap loan utilized during

this quarter is Nil.

4.6 Planning for the next quarter

Confirmation of Extension of RCOD;

Conduct Public Hearing for IEE Study of Transmission Line and Getting approval from

Related Ministry;

Contract agreement with selected Electromechanical contractor Commencement of EM

Works;

Selection of Hydromechanical Contractor;

Completion of 8 km road towards Likhu Headworks;

Completion of 6 km road towards Nupche Headworks;

Completion of access road towards Surge Shaft;

Finalize Bid Evaluation of Transmission Line Works;

Completion of Construction Power distribution lines;

Construction of Likhu Truss Bridge;

Finalize detailed design of the Nupche Bridges;

Completion of preparatory works for the construction of Bifurcation of the project.

Blasting and advancement of vertical shaft;

Blasting and advancement of penstock tunnels;

Portal preparation of surge shaft /outlet area;

Quality control and monitoring activities during the construction;

Maintenance of access road damaged in the monsoon.


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Annex – 1: General Layout Map of the Project

Likhu River

Nupche River


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Annex – 2: Some Glimpse for the Completed and Ongoing works of NLHP

LOA Issued to VOITH Hydro for Electromechanical Works


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Stone Laying Ceremony by Mr. Chairman and Board of Directors


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Board of Director’s Site Visit and Meeting at the Site Office


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Ongoing Construction of Access Road


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Ongoing Construction of Likhu Bridge


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Nupche Likhu Hydropower Project’s Camp Facilities


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Army Camp Facilities and Bunker House


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Health Post Facilities for Project and Locals


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Civil Contractor’s yard and Crusher Plant


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Portal Preparation of vertical shaft


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Portal Preparation of Adit Penstock Tunnel and Bifurcation


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Protection works for Assess Road and River Engineering

NUPCHE LIKHU HYDROPOWER PROJECT (57.5 MW)

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