ktmbinod@gmail.

com
Upper Trishuli-1 HEP Economic and Financial Analysis

Financial Analysis: Project Delayed by 1 year, cost increased by 10% and generation decreased by 5%
Basic Data Financial Parameter Tax Parameter
Installed Capacity: 353 MW
Dry Season Energy: 328 kWh Interest on Debt: 12.00% Corporate Tax: 21.5%
Wet Season Energy: 1668 kWh Expected Return on Equity: 16% Export Tax: 10%
Construction Cost: 524 Mil US$ Equity Investment: 30% of total investment Interest Tax: 0%
Total Equity 30%: 208 Mil US$ Guarantee Fee Payable to MIGA: 0% on total cost during construction Dividend Tax: 5%
Total Debt 70%: 486 Mil US$ Establishment Fee Payable to Bank: 0% on total debt commitment at signing
IDC 169.27 US$ Commitment Fee Payable to Bank: 0% on debt commitment unused
Total Financial Cost and IDC: 694 US$ Loan Duration: 10 Yrs Repayment Procedure: 86 Equal Repayment of Total Principle and Interest
Annual Depreciation: 4.17% straight line per annum Grace Period: 5 Yrs
Reference Year: 2010 Financial Analysis Duration: 30 Yrs Annual cost for Reference Year
Start of construction activity: 2013
Commercial Operation Year: 2018 Results Operation & Maintenance cost:
1.00% of total construction cost
Dry Season Energy Sale Price: 0.060 US$/KWh Insurance Cost: 0.50% of total escalated cost of the project
Wet Season Energy Sale Price: 0.060 US$/KWh Discount Rate: 10% Bonus & Welfare Fund: 2.00% of Net Profit (Gross Profit-Tax)
Escalation Parameter Specific Average Energy Cost: 0.032 US$/KWh
Inflation on Foreign Currency: 2.50% Specific Average Energy Benefit: 0.033 US$/KWh
Escalation on Benefit: 0.00% IRR: 10.72%
Inflation on Local Currency: 6.00% B/C 0.992 Royalty on Capacity: 5.00 US$ (1-15y) 19 US$ (16-30y)
Escalation on Dry Season Benefit: 3.00% upto 10yrs NPV 14 Royalty on Revenue: 7.50% 1-15 Yrs 12% 16-30 Yrs
Escalation on Wet Season Benefit: 3.00% upto 10yrs

Period Year Equity O & M Insurance Royalty Royalty Total Total Gross Depre- Profit before Interest Profit Bonus & Capital Total Cost+ Energy Total Cost
Profit
from Investment Cost Cost on on Operating Revenue Operating ciation Interest & on Debt before Tax Corporate welfare Net Profit repaymen Net Cash Energy PV Interest+ interest
after tax
Ref. 1% Capacity Revenue Cost Profit (Mil. Tax, PBIT PBT tax fund t Flow sale price Factor +Operation tax, bonus
Year (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) US$/KWh (Mil. US$) (Mil. kwH) (Mil. US$)
0 2010 0.5 0 (0.53) 1.00 1 1
1 2011 0.5 0 (0.53) 0.91 21 1
2 2012 1.1 0 (1.06) 0.83 52 1
3 2013 20.8 0 (20.81) 0.75 52 21
4 2014 52.0 0 (52.03) 0.68 52 52
5 2015 52.0 0 (52.03) 0.62 29 52
6 2016 52.0 0 (52.03) 0.56 0 52
7 2017 29.1 0 (29.10) 0.51 0 29
8 2018 8.36 2.62 1.77 8.48 21.22 113.04 91.82 28.90 62.91 58.27 4.64 1.00 3.64 0.07 3.57 27.67 4.80 0.062 0.47 107.17 1995.95 108.24
9 2019 8.86 2.62 1.77 8.73 21.98 116.43 94.45 28.90 65.55 54.95 10.60 2.28 8.32 0.17 8.15 30.99 6.06 0.064 0.42 107.92 1995.95 110.37
10 2020 9.39 2.62 1.77 8.99 22.77 119.92 97.15 28.90 68.25 51.23 17.01 3.66 13.36 0.27 13.09 34.71 7.28 0.066 0.39 108.72 1995.95 112.64
11 2021 9.96 2.62 1.77 9.26 23.61 123.52 99.92 28.90 71.01 47.07 23.94 5.15 18.80 0.38 18.42 38.88 8.45 0.068 0.35 109.55 1995.95 115.07
12 2022 10.55 2.62 1.77 9.54 24.48 127.23 102.75 28.90 73.84 42.40 31.44 6.76 24.68 0.49 24.19 43.54 9.55 0.070 0.32 110.43 1995.95 117.68
13 2023 11.19 2.62 1.77 9.83 25.40 131.04 105.64 28.90 76.74 37.18 39.56 8.51 31.06 0.62 30.43 48.77 10.57 0.072 0.29 111.35 1995.95 120.47
14 2024 11.86 2.62 1.77 10.12 26.37 134.98 108.61 28.90 79.70 31.32 48.38 10.40 37.98 0.76 37.22 54.62 11.50 0.074 0.26 112.31 1995.95 123.47
15 2025 12.57 2.62 1.77 10.43 27.38 139.03 111.64 28.90 82.74 24.77 57.97 12.46 45.50 0.91 44.59 61.17 12.33 0.076 0.24 113.33 1995.95 126.70
16 2026 13.32 2.62 1.77 10.74 28.45 143.20 114.75 28.90 85.84 17.43 68.41 14.71 53.70 1.07 52.63 68.51 13.02 0.078 0.22 114.39 1995.95 130.18
17 2027 14.12 2.62 1.77 11.06 29.57 147.49 117.92 28.90 89.02 9.21 79.81 17.16 62.65 1.25 61.40 76.74 13.57 0.078 0.20 115.51 1995.95 133.93
18 2028 14.97 2.62 1.77 11.06 30.42 147.49 117.07 28.90 88.17 88.17 18.96 69.21 1.38 67.83 96.73 0.078 0.18 30.42 1995.95 50.76
19 2029 15.87 2.62 1.77 11.06 31.32 147.49 116.18 28.90 87.27 87.27 18.76 68.51 1.37 67.14 96.04 0.078 0.16 31.32 1995.95 51.45
20 2030 16.82 2.62 6.71 17.70 43.85 147.49 103.64 28.90 74.74 74.74 16.07 58.67 1.17 57.50 86.40 0.078 0.15 43.85 1995.95 61.09
21 2031 17.83 2.62 6.71 17.70 44.86 147.49 102.63 28.90 73.73 73.73 15.85 57.88 1.16 56.72 85.63 0.078 0.14 44.86 1995.95 61.87
22 2032 18.90 2.62 6.71 17.70 45.93 147.49 101.56 28.90 72.66 72.66 15.62 57.04 1.14 55.90 84.80 0.078 0.12 45.93 1995.95 62.69
23 2033 125.93 2.62 6.71 17.70 152.96 147.49 -5.47 28.90 -34.37 -34.37 0.00 -34.37 0.00 -34.37 -5.47 0.078 0.11 152.96 1995.95 152.96
24 2034 21.23 2.62 6.71 17.70 48.26 147.49 99.23 28.90 70.32 70.32 15.12 55.20 1.10 54.10 83.01 0.078 0.10 48.26 1995.95 64.49
25 2035 22.51 2.62 6.71 17.70 49.54 147.49 97.96 28.90 69.05 69.05 14.85 54.20 1.08 53.12 82.03 0.078 0.09 49.54 1995.95 65.47
26 2036 23.86 2.62 6.71 17.70 50.89 147.49 96.60 28.90 67.70 67.70 14.56 53.14 1.06 52.08 80.99 0.078 0.08 50.89 1995.95 66.51
27 2037 25.29 2.62 6.71 17.70 52.32 147.49 95.17 28.90 66.27 66.27 14.25 52.02 1.04 50.98 79.88 0.078 0.08 52.32 1995.95 67.61
28 2038 26.81 2.62 6.71 17.70 53.84 147.49 93.66 28.90 64.75 64.75 13.92 50.83 1.02 49.81 78.72 0.078 0.07 53.84 1995.95 68.77
29 2039 28.42 2.62 6.71 17.70 55.44 147.49 92.05 28.90 63.14 63.14 13.58 49.57 0.99 48.58 77.48 0.078 0.06 55.44 1995.95 70.01
30 2040 30.12 2.62 6.71 17.70 57.15 147.49 90.34 28.90 61.44 61.44 13.21 48.23 0.96 47.26 76.17 0.078 0.06 57.15 1995.95 71.32
31 2041 31.93 2.62 6.71 17.70 58.96 147.49 88.53 28.90 59.63 59.63 12.82 46.81 0.94 45.87 74.78 0.078 0.05 58.96 1995.95 72.71

208 531 63 102 332 1,027 3,361 2,334 694 1,640 374 1,266 280 987 20 966 486 966 2,093 47,903 2,395
IRR = 10.7163%
ktmbinod@gmail.com Economic and Financial Analysis

FINANCIAL ANALYSIS: Project Delayed by 1 Year and cost increased by 10%

Basic Data Financial Parameter Tax Parameter
Installed Capacity: 353 MW
Dry Season Energy: 345 kWh outage Interest on Debt: 12.00% Corporate Tax: 21.5%
Wet Season Energy: 1756 kWh outage Expected Return on Equity: 16% Export Tax: 10%
Construction Cost: 524 Mil US$ Equity Investment: 30% of total investment Interest Tax: 0%
Total Equity 30%: 208 Mil US$ Guarantee Fee Payable to MIGA: 0% on total cost during construction Dividend Tax: 5%
Total Debt 70%: 486 Mil US$ Establishment Fee Payable to Bank: 0% on total debt commitment at signing
IDC 169 US$ Commitment Fee Payable to Bank: 0% on debt commitment unused
Total Financial Cost and IDC: 694 US$ Loan Duration: 10 Yrs Repayment Procedure: 86 Equal Repayment of Total Principle and Interest
Annual Depreciation: 4.17% straight line per annum Grace Period: 5 Yrs
Reference Year: 2010 Financial Analysis Duration: 30 Yrs Annual cost for Reference Year
Start of construction activity: 2013
Commercial Operation Year: 2018 Results Operation & Maintenance cost:
1.00% of total construction cost
Dry Season Energy Sale Price: 0.060 US$/KWh Insurance Cost: 0.50% of total escalated cost of the project
Wet Season Energy Sale Price: 0.060 US$/KWh Discount Rate: 10% Bonus & Welfare Fund: 2.00% of Net Profit (Gross Profit-Tax)
Escalation Parameter Specific Average Energy Cost: 0.031 US$/KWh
Inflation on Foreign Currency: 2.50% Specific Average Energy Benefit: 0.033 US$/KWh
Escalation on Benefit: 0.00% IRR: 11.87%
Inflation on Local Currency: 6.00% B/C 1.028 Royalty on Capacity: 5.00 US$ (1-15y) 19 US$ (16-30y)
Escalation on Dry Season Benefit: 3.00% upto 10yrs NPV 37 Royalty on Revenue: 7.50% 1-15 Yrs 12% 16-30 Yrs
Escalation on Wet Season Benefit: 3.00% upto 10yrs

Period Year Equity O&M Insurance Royalty Royalty Total Total Gross Depre- Profit before Interest Profit Corporate Profit Bonus & Net Profit Capital Net Cash Energy Total Cost+ Energy Total Cost
from Investment Cost Cost on on Operating Revenue Operating ciation Interest & on Debt before Tax Tax after Tax Welfare Repay- Flow Sale Interest+ interest
Ref. 1% Capacity Revenue Cost Profit Tax, PBIT PBT Fund ment Price +Operation tax, bonus

(Mil. PV
Year (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) US$/KWh Factor (Mil. US$) (Mil. kwH) (Mil. US$)
0 2010 0.7 0 (0.66) 1.00 1 1
1 2011 0.7 0 (0.66) 0.91 21 1
2 2012 1.3 0 (1.32) 0.83 52 1
3 2013 20.8 0 (20.81) 0.75 52 21
4 2014 52.0 0 (52.03) 0.68 52 52
5 2015 52.0 0 (52.03) 0.62 29 52
6 2016 52.0 0 (52.03) 0.56 0 52
7 2017 28.6 0 (28.57) 0.51 0 29
8 2018 8.36 2.62 1.77 8.92 21.67 118.99 97.32 28.90 68.41 58.27 10.14 2.18 7.96 0.16 7.80 27.67 9.04 0.062 0.47 107.61 2101.00 109.95
9 2019 8.86 2.62 1.77 9.19 22.44 122.56 100.12 28.90 71.22 54.95 16.26 3.50 12.77 0.26 12.51 30.99 10.42 0.064 0.42 108.38 2101.00 112.14
10 2020 9.39 2.62 1.77 9.47 23.25 126.24 102.99 28.90 74.08 51.23 22.85 4.91 17.94 0.36 17.58 34.71 11.77 0.066 0.39 109.19 2101.00 114.46
11 2021 9.96 2.62 1.77 9.75 24.09 130.02 105.93 28.90 77.02 47.07 29.96 6.44 23.52 0.47 23.05 38.88 13.07 0.068 0.35 110.04 2101.00 116.95
12 2022 10.55 2.62 1.77 10.04 24.98 133.92 108.94 28.90 80.03 42.40 37.63 8.09 29.54 0.59 28.95 43.54 14.31 0.070 0.32 110.93 2101.00 119.61
13 2023 11.19 2.62 1.77 10.35 25.92 137.94 112.02 28.90 83.12 37.18 45.94 9.88 36.06 0.72 35.34 48.77 15.48 0.072 0.29 111.86 2101.00 122.46
14 2024 11.86 2.62 1.77 10.66 26.90 142.08 115.18 28.90 86.27 31.32 54.95 11.81 43.14 0.86 42.27 54.62 16.56 0.074 0.26 112.84 2101.00 125.52
15 2025 12.57 2.62 1.77 10.98 27.93 146.34 118.41 28.90 89.51 24.77 64.74 13.92 50.82 1.02 49.80 61.17 17.53 0.076 0.24 113.88 2101.00 128.81
16 2026 13.32 2.62 1.77 11.30 29.01 150.73 121.72 28.90 92.81 17.43 75.38 16.21 59.18 1.18 57.99 68.51 18.38 0.078 0.22 114.96 2101.00 132.35
17 2027 14.12 2.62 1.77 11.64 30.15 155.25 125.10 28.90 96.20 9.21 86.99 18.70 68.29 1.37 66.92 76.74 19.09 0.078 0.20 116.10 2101.00 136.17
18 2028 14.97 2.62 1.77 11.64 31.00 155.25 124.25 28.90 95.35 95.35 20.50 74.85 1.50 73.35 102.26 0.078 0.18 31.00 2101.00 53.00
19 2029 15.87 2.62 1.77 11.64 31.90 155.25 123.36 28.90 94.45 94.45 20.31 74.14 1.48 72.66 101.57 0.078 0.16 31.90 2101.00 53.69
20 2030 16.82 2.62 6.71 18.63 44.78 155.25 110.48 28.90 81.57 81.57 17.54 64.03 1.28 62.75 91.66 0.078 0.15 44.78 2101.00 63.60
21 2031 17.83 2.62 6.71 18.63 45.79 155.25 109.47 28.90 80.56 80.56 17.32 63.24 1.26 61.98 90.88 0.078 0.14 45.79 2101.00 64.37
22 2032 18.90 2.62 6.71 18.63 46.86 155.25 108.40 28.90 79.49 79.49 17.09 62.40 1.25 61.15 90.06 0.078 0.12 46.86 2101.00 65.20
23 2033 125.93 2.62 6.71 18.63 153.89 155.25 1.36 28.90 -27.54 -27.54 0.00 -27.54 0.00 -27.54 1.36 0.078 0.11 153.89 2101.00 153.89
24 2034 21.23 2.62 6.71 18.63 49.19 155.25 106.06 28.90 77.16 77.16 16.59 60.57 1.21 59.36 88.26 0.078 0.10 49.19 2101.00 66.99
25 2035 22.51 2.62 6.71 18.63 50.47 155.25 104.79 28.90 75.88 75.88 16.31 59.57 1.19 58.38 87.28 0.078 0.09 50.47 2101.00 67.97
26 2036 23.86 2.62 6.71 18.63 51.82 155.25 103.44 28.90 74.53 74.53 16.02 58.51 1.17 57.34 86.24 0.078 0.08 51.82 2101.00 69.01
27 2037 25.29 2.62 6.71 18.63 53.25 155.25 102.00 28.90 73.10 73.10 15.72 57.38 1.15 56.24 85.14 0.078 0.08 53.25 2101.00 70.11
28 2038 26.81 2.62 6.71 18.63 54.77 155.25 100.49 28.90 71.58 71.58 15.39 56.19 1.12 55.07 83.97 0.078 0.07 54.77 2101.00 71.28
29 2039 28.42 2.62 6.71 18.63 56.38 155.25 98.88 28.90 69.97 69.97 15.04 54.93 1.10 53.83 82.74 0.078 0.06 56.38 2101.00 72.52
30 2040 30.12 2.62 6.71 18.63 58.08 155.25 97.17 28.90 68.27 68.27 14.68 53.59 1.07 52.52 81.42 0.078 0.06 58.08 2101.00 73.83
31 2041 31.93 2.62 6.71 18.63 59.89 155.25 95.37 28.90 66.46 66.46 14.29 52.17 1.04 51.13 80.03 0.078 0.05 59.89 2101.00 75.22

208 531 63 102 349 1,044 3,538 2,493 694 1,800 374 1,426 312 1,113 23 1,090 486 1,090 2,110 50,424 2,447
IRR = 11.8657%
 Upper Trishuli-1 HEP Economic and Financial Analysis
ktmbinod@gmail.com

FINANCIAL ANALYSIS -Project Cost Increased by 10%

Basic Data Financial Parameter Tax Parameter
Installed Capacity: 353 MW
Dry Season Energy: 345 kWh outage Interest on Debt: 12.00% Corporate Tax: 21.5%
Wet Season Energy: 1756 kWh outage Expected Return on Equity: 16% Export Tax: 10%
Construction Cost: 524 Mil US$ Equity Investment: 30% of total investment Interest Tax: 0%
Total Equity 30%: 196 Mil US$ Guarantee Fee Payable to MIGA: 0% on total cost during construction Dividend Tax: 5%
Total Debt 70%: 458 Mil US$ Establishment Fee Payable to Bank: 0% on total debt commitment at signing
IDC 129.89 US$ Commitment Fee Payable to Bank: 0% on debt commitment unused
Total Financial Cost and IDC: 654 US$ Loan Duration: 10 Yrs Repayment Procedure: 81 Equal Repayment of Total Principle and Interest
Annual Depreciation: 4.00% straight line per annum Grace Period: 5 Yrs
Reference Year: 2010 Financial Analysis Duration: 30 Yrs Annual cost for Reference Year
Start of construction activity: 2013
Commercial Operation Year: 2016 Results Operation & Maintenance cost:
1.00% of total construction cost
Dry Season Energy Sale Price: 0.060 US$/KWh Insurance Cost: 0.50% of total escalated cost of the project
Wet Season Energy Sale Price: 0.060 US$/KWh Discount Rate: 10% Bonus & Welfare Fund: 2.00% of Net Profit (Gross Profit-Tax)
Escalation Parameter Specific Average Energy Cost: 0.032 US$/KWh
Inflation on Foreign Currency: 2.50% Specific Average Energy Benefit: 0.036 US$/KWh
Escalation on Benefit: 0.00% IRR: 13.47%
Inflation on Local Currency: 6.00% B/C 1.080 Royalty on Capacity: 5.00 US$ (1-15y) 19 US$ (16-30y)
Escalation on Dry Season Benefit: 3.00% upto 10yrs NPV 65 Royalty on Revenue: 7.50% 1-15 Yrs 12% 16-30 Yrs
Escalation on Wet Season Benefit: 3.00% upto 10yrs

Period Year Equity O&M Insurance Royalty Royalty Total Total Gross Depre- Profit before Interest Profit Corporate Profit Bonus & Net Profit Capital Net Cash Energy PV Factor Total Cost+ Energy Total Cost
from Investment Cost Cost on on Operating Revenue Operating ciation Interest & on Debt before Tax Tax after Tax Welfare Repay- Flow Sale Interest+ interest
Ref. 1% Capacity Revenue Cost Profit Tax, PBIT PBT Fund ment Price +Operation tax, bonus

Year (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) US$/KWh (Mil. US$) (Mil. kwH) (Mil. US$)
0 2010 0.6 0 (0.62) 1.00 1 1
1 2011 0.6 0 (0.62) 0.91 20 1
2 2012 1.2 0 (1.25) 0.83 53 1
3 2013 19.6 0 (19.63) 0.75 59 20
4 2014 53.0 0 (53.00) 0.68 41 53
5 2015 58.9 0 (58.89) 0.62 21 59
6 2016 41.2 0 (41.22) 0.56 0 41
7 2017 21.1 7.89 2.62 1.77 8.66 20.94 115.52 94.59 26.17 68.41 54.96 13.45 2.89 10.56 0.21 10.35 26.10 (10.64) 0.060 0.51 102 126
8 2018 8.36 2.62 1.77 8.92 21.67 118.99 97.32 26.17 71.15 51.83 19.31 4.15 15.16 0.30 14.86 29.23 11.80 0.062 0.47 102.74 2101.00 107.19
9 2019 8.86 2.62 1.77 9.19 22.44 122.56 100.12 26.17 73.95 48.32 25.62 5.51 20.11 0.40 19.71 32.74 13.14 0.064 0.42 103.50 2101.00 109.42
10 2020 9.39 2.62 1.77 9.47 23.25 126.24 102.99 26.17 76.82 44.40 32.42 6.97 25.45 0.51 24.94 36.67 14.44 0.066 0.39 104.31 2101.00 111.79
11 2021 9.96 2.62 1.77 9.75 24.09 130.02 105.93 26.17 79.76 39.99 39.76 8.55 31.21 0.62 30.59 41.07 15.69 0.068 0.35 105.16 2101.00 114.33
12 2022 10.55 2.62 1.77 10.04 24.98 133.92 108.94 26.17 82.77 35.07 47.70 10.26 37.44 0.75 36.70 46.00 16.87 0.070 0.32 106.05 2101.00 117.05
13 2023 11.19 2.62 1.77 10.35 25.92 137.94 112.02 26.17 85.85 29.55 56.30 12.11 44.20 0.88 43.31 51.52 17.97 0.072 0.29 106.98 2101.00 119.97
14 2024 11.86 2.62 1.77 10.66 26.90 142.08 115.18 26.17 89.01 23.36 65.64 14.11 51.53 1.03 50.50 57.70 18.97 0.074 0.26 107.97 2101.00 123.11
15 2025 12.57 2.62 1.77 10.98 27.93 146.34 118.41 26.17 92.24 16.44 75.80 16.30 59.50 1.19 58.31 64.62 19.86 0.076 0.24 109.00 2101.00 126.48
16 2026 13.32 2.62 1.77 11.30 29.01 150.73 121.72 26.17 95.54 8.69 86.86 18.67 68.18 1.36 66.82 72.38 20.61 0.078 0.22 110.08 2101.00 130.12
17 2027 14.12 2.62 1.77 11.30 29.81 150.73 120.92 26.17 94.74 94.74 20.37 74.37 1.49 72.89 99.06 0.078 0.20 29.81 2101.00 51.67
18 2028 14.97 2.62 1.77 11.30 30.66 150.73 120.07 26.17 93.90 93.90 20.19 73.71 1.47 72.24 98.41 0.078 0.18 30.66 2101.00 52.32
19 2029 15.87 2.62 1.77 11.30 31.56 150.73 119.17 26.17 93.00 93.00 19.99 73.00 1.46 71.54 97.72 0.078 0.16 31.56 2101.00 53.01
20 2030 16.82 2.62 6.71 18.09 44.24 150.73 106.50 26.17 80.32 80.32 17.27 63.05 1.26 61.79 87.97 0.078 0.15 44.24 2101.00 62.77
21 2031 17.83 2.62 6.71 18.09 45.25 150.73 105.49 26.17 79.31 79.31 17.05 62.26 1.25 61.02 87.19 0.078 0.14 45.25 2101.00 63.54
22 2032 124.80 2.62 6.71 18.09 152.22 150.73 -1.48 26.17 -27.66 -27.66 0.00 -27.66 0.00 -27.66 -1.48 0.078 0.12 152.22 2101.00 152.22
23 2033 20.03 2.62 6.71 18.09 47.45 150.73 103.28 26.17 77.11 77.11 16.58 60.53 1.21 59.32 85.49 0.078 0.11 47.45 2101.00 65.24
24 2034 21.23 2.62 6.71 18.09 48.65 150.73 102.08 26.17 75.91 75.91 16.32 59.59 1.19 58.40 84.57 0.078 0.10 48.65 2101.00 66.16
25 2035 22.51 2.62 6.71 18.09 49.93 150.73 100.81 26.17 74.63 74.63 16.05 58.59 1.17 57.42 83.59 0.078 0.09 49.93 2101.00 67.14
26 2036 23.86 2.62 6.71 18.09 51.28 150.73 99.46 26.17 73.28 73.28 15.76 57.53 1.15 56.38 82.55 0.078 0.08 51.28 2101.00 68.18
27 2037 25.29 2.62 6.71 18.09 52.71 150.73 98.02 26.17 71.85 71.85 15.45 56.40 1.13 55.28 81.45 0.078 0.08 52.71 2101.00 69.28
28 2038 26.81 2.62 6.71 18.09 54.23 150.73 96.51 26.17 70.33 70.33 15.12 55.21 1.10 54.11 80.28 0.078 0.07 54.23 2101.00 70.45
29 2039 28.42 2.62 6.71 18.09 55.83 150.73 94.90 26.17 68.73 68.73 14.78 53.95 1.08 52.87 79.04 0.078 0.06 55.83 2101.00 71.69
30 2040 30.12 2.62 6.71 18.09 57.54 150.73 93.19 26.17 67.02 67.02 14.41 52.61 1.05 51.56 77.73 0.078 0.06 57.54 2101.00 73.00
31 2041 31.93 2.62 6.71 18.09 59.35 150.73 91.39 26.17 65.21 65.21 14.02 51.19 1.02 50.17 76.34 0.078 0.05 59.35 2101.00 74.39

196 539 66 103 350 1,058 3,585 2,528 654 1,873 353 1,521 333 1,188 24 1,163 458 1,163 2,063 50,424 2,422
IRR = 13.4694%
ktmbinod@gmail.com
Upper Trishuli-1 HEP Economic and Financial Analysis

FINANCIAL ANALYSIS - Project Delayed by 1 year

Basic Data Financial Parameter Tax Parameter
Installed Capacity: 353MW
Dry Season Energy: 345kWh Interest on Debt: 12.00% Corporate Tax: 20%
Wet Season Energy: 1756kWh Expected Return on Equity: 16% Export Tax: 10%
Construction Cost: 477Mil US$ Equity Investment: 30% of total investment Interest Tax: 0%
Total Equity 30%: 189 Mil US$ Guarantee Fee Payable to MIGA: 0% on total cost during construction Dividend Tax: 5%
Total Debt 70%: 441 Mil US$ Establishment Fee Payable to Bank: 0% on total debt commitment at signing
IDC 154 US$ Commitment Fee Payable to Bank: 0% on debt commitment unused
Total Financial Cost and IDC: 631 US$ Loan Duration: 10 Yrs Repayment Procedure: 78.13 Equal Repayment of Total Principle and Interest
Annual Depreciation: 4.17% straight line per annum Grace Period: 5 Yrs
Reference Year: 2010 Financial Analysis Duration: 30 Yrs Annual cost for Reference Year
Start of construction activity: 2013
Commercial Operation Year: 2018 Results Operation & Maintenance cost:
1.00% of total construction cost
Dry Season Energy Sale Price: 0.060 US$/KWh Insurance Cost: 0.50% of total escalated cost of the project
Wet Season Energy Sale Price: 0.060 US$/KWh Discount Rate: 10% Bonus & Welfare Fund: 2.00% of Net Profit (Gross Profit-Tax)
Escalation Parameter Specific Average Energy Cost: 0.028 US$/KWh
Inflation on Foreign Currency: 2.50% Specific Average Energy Benefit: 0.037 US$/KWh
Escalation on Benefit: 0.00% IRR: 14.18%
Inflation on Local Currency: 6.00% B/C 1.102 Royalty on Capacity: 5.00 US$ (1-15y) 19 US$ (16-30y)
Escalation on Dry Season Benefit: 3.00% upto 10yrs NPV 77 Royalty on Revenue: 7.50% 1-15 Yrs 12% 16-30 Yrs
Escalation on Wet Season Benefit: 3.00% upto 10yrs

Period Year Equity O&M Insurance Royalty Royalty Total Total Gross Depre- Profit before Interest Profit Corporate Profit Bonus & Net Profit Capital Net Cash Energy Total Cost+ Energy Total Cost
from Investment Cost Cost on on Operating Revenue Operating ciation Interest & on Debt before Tax Tax after Tax Welfare Repay- Flow Sale Interest+ interest
Ref. 1% Capacity Revenue Cost Profit Tax, PBIT PBT Fund ment PVPrice +Operation tax, bonus
Year (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) US$/KWh Factor (Mil. US$) (Mil. kwH) (Mil. US$)
0 2010 0.7 - (0.66) 1.00 1 1
1 2011 0.7 - (0.66) 0.91 19 1
2 2012 1.3 - (1.32) 0.83 47 1
3 2013 18.9 - (18.92) 0.75 47 19
4 2014 47.3 - (47.30) 0.68 47 47
5 2015 47.3 - 78.13 (47.30) 0.62 26 47
6 2016 47.3 - (47.30) 0.56 0 47
7 2017 25.7 (25.73) 0.51 0 26
8 2018 7.60 2.38 1.77 8.92 20.67 118.99 98.32 26.28 72.04 52.97 19.07 3.81 15.25 0.31 14.95 25.16 16.07 0.062 0.47 98.80 2101.00 102.92
9 2019 8.05 2.38 1.77 9.19 21.40 122.56 101.16 26.28 74.89 49.96 24.93 4.99 19.94 0.40 19.55 28.17 17.65 0.064 0.42 99.53 2101.00 104.91
10 2020 8.54 2.38 1.77 9.47 22.15 126.24 104.08 26.28 77.80 46.57 31.23 6.25 24.98 0.50 24.48 31.56 19.21 0.066 0.39 100.29 2101.00 107.03
11 2021 9.05 2.38 1.77 9.75 22.95 130.02 107.07 26.28 80.80 42.79 38.01 7.60 30.41 0.61 29.80 35.34 20.73 0.068 0.35 101.08 2101.00 109.29
12 2022 9.59 2.38 1.77 10.04 23.79 133.92 110.14 26.28 83.86 38.55 45.31 9.06 36.25 0.73 35.53 39.58 22.22 0.070 0.32 101.92 2101.00 111.70
13 2023 10.17 2.38 1.77 10.35 24.66 137.94 113.28 26.28 87.00 33.80 53.20 10.64 42.56 0.85 41.71 44.33 23.66 0.072 0.29 102.79 2101.00 114.29
14 2024 10.78 2.38 1.77 10.66 25.58 142.08 116.50 26.28 90.22 28.48 61.74 12.35 49.39 0.99 48.41 49.65 25.03 0.074 0.26 103.71 2101.00 117.05
15 2025 11.43 2.38 1.77 10.98 26.55 146.34 119.79 26.28 93.51 22.52 71.00 14.20 56.80 1.14 55.66 55.61 26.33 0.076 0.24 104.68 2101.00 120.02
16 2026 12.11 2.38 1.77 11.30 27.57 150.73 123.17 26.28 96.89 15.85 81.04 16.21 64.84 1.30 63.54 62.29 27.53 0.078 0.22 105.70 2101.00 123.20
17 2027 12.84 2.38 1.77 11.64 28.63 155.25 126.62 26.28 100.35 8.37 91.98 18.40 73.58 1.47 72.11 69.76 28.63 0.078 0.20 106.76 2101.00 126.63
18 2028 13.61 2.38 1.77 11.64 29.40 155.25 125.85 26.28 99.58 0.00 99.58 19.92 79.66 1.59 78.07 104.34 0.078 0.18 29.40 2101.00 50.91
19 2029 14.43 2.38 1.77 11.64 30.22 155.25 125.04 26.28 98.76 98.76 19.75 79.01 1.58 77.43 103.70 0.078 0.16 30.22 2101.00 51.55
20 2030 15.29 2.38 6.71 18.63 43.01 155.25 112.24 26.28 85.97 85.97 17.19 68.77 1.38 67.40 93.67 0.078 0.15 43.01 2101.00 61.58
21 2031 16.21 2.38 6.71 18.63 43.93 155.25 111.33 26.28 85.05 85.05 17.01 68.04 1.36 66.68 92.95 0.078 0.14 43.93 2101.00 62.30
22 2032 17.18 2.38 6.71 18.63 44.90 155.25 110.35 26.28 84.08 84.08 16.82 67.26 1.35 65.92 92.19 0.078 0.12 44.90 2101.00 63.06
23 2033 124.11 2.38 6.71 18.63 151.83 155.25 3.42 26.28 -22.86 -22.86 0.00 -22.86 0.00 -22.86 3.42 0.078 0.11 151.83 2101.00 151.83
24 2034 19.30 2.38 6.71 18.63 47.03 155.25 108.23 26.28 81.95 81.95 16.39 65.56 1.31 64.25 90.53 0.078 0.10 47.03 2101.00 64.73
25 2035 20.46 2.38 6.71 18.63 48.18 155.25 107.07 26.28 80.79 80.79 16.16 64.64 1.29 63.34 89.62 0.078 0.09 48.18 2101.00 65.64
26 2036 21.69 2.38 6.71 18.63 49.41 155.25 105.84 26.28 79.57 79.57 15.91 63.65 1.27 62.38 88.66 0.078 0.08 49.41 2101.00 66.60
27 2037 22.99 2.38 6.71 18.63 50.71 155.25 104.54 26.28 78.26 78.26 15.65 62.61 1.25 61.36 87.64 0.078 0.08 50.71 2101.00 67.62
28 2038 24.37 2.38 6.71 18.63 52.09 155.25 103.16 26.28 76.89 76.89 15.38 61.51 1.23 60.28 86.56 0.078 0.07 52.09 2101.00 68.70
29 2039 25.83 2.38 6.71 18.63 53.55 155.25 101.70 26.28 75.42 75.42 15.08 60.34 1.21 59.13 85.41 0.078 0.06 53.55 2101.00 69.85
30 2040 27.38 2.38 6.71 18.63 55.10 155.25 100.15 26.28 73.87 73.87 14.77 59.10 1.18 57.92 84.19 0.078 0.06 55.10 2101.00 71.06
31 2041 29.03 2.38 6.71 18.63 56.75 155.25 98.51 26.28 72.23 72.23 14.45 57.78 1.16 56.63 82.91 0.078 0.05 56.75 2101.00 72.35

189 492 57 102 349 1,000 3,538 2,538 631 1,907 340 1,567 318 1,327 25 1,224 441 1,224 1,969 50,424 2,314
IRR = 14.1754%
ktmbinod@gmail.com Economic and Financial Analysis

FINANCIAL ANALYSIS - Base Case

Basic Data Financial Parameter Tax Parameter
Installed Capacity: 353 MW
Dry Season Energy: 345 kWh Interest on Debt: 12.00% Corporate Tax: 22%
Wet Season Energy: 1756 kWh Expected Return on Equity: 16% Export Tax: 10%
Construction Cost: 477 Mil US$ Equity Investment: 30% of total investment Interest Tax: 0%
Total Equity 30%: 178 Mil US$ Guarantee Fee Payable to MIGA: 0% on total cost during construction Dividend Tax: 5%
Total Debt 70%: 416 Mil US$ Establishment Fee Payable to Bank: 0% on total debt commitment at signing
IDC 118.08 US$ Commitment Fee Payable to Bank: 0% on debt commitment unused
Total Financial Cost and IDC: 595 US$ Loan Duration: 10 Yrs Repayment Procedure: 73.70 Equal Repayment of Total Principle and Interest
Annual Depreciation: 4.00% straight line per annum Grace Period: 5 Yrs
Reference Year: 2010 Financial Analysis Duration: 30 Yrs Annual cost for Reference Year
Start of construction activity: 2013
Commercial Operation Year: 2017 Results Operation & Maintenance
1.00%
cost:of total construction cost
Dry Season Energy Sale Price: 0.060 US$/KWh Insurance Cost: 0.50% of total escalated cost of the project
Wet Season Energy Sale Price: 0.060 US$/KWh Discount Rate: 10% Bonus & Welfare Fund: 2.00% of Net Profit (Gross Profit-Tax)
Escalation Parameter Specific Average Energy Cost: 0.029 US$/KWh
Inflation on Foreign Currency: 2.50% Specific Average Energy Benefit: 0.036 US$/KWh
Escalation on Benefit: 0.00% IRR: 15.87%
Inflation on Local Currency: 6.00% B/C 1.146 Royalty on Capacity: 5.00 US$ (1-15y) 19 US$ (16-25y)
Escalation on Dry Season Benefit: 3.00% upto 10yrs NPV 101 Royalty on Revenue: 7.50% 1-15 Yrs 12% 16-30 Yrs
Escalation on Wet Season Benefit: 3.00% upto 10yrs
Period Equity O&M Insurance Royalty Royalty Total Total Gross Depre- Profit before Interest Profit Corporate Profit Bonus & Net Profit Capital Net Cash Energy Total Cost+ Energy Total Cost
from Investment Cost Cost on on Operating Revenue Operating ciation Interest & on Debt before Tax Tax after Tax Welfare Repay- Flow Sale PV Interest+ interest
Year
Ref. 1% Capacity Revenue Cost Profit Tax, PBIT PBT Fund ment Price Factor +Operation tax, bonus
Year (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) (Mil. US$) US$/KWh (Mil. US$) (Mil. kwH) (Mil. US$)
0 2010 0.5 0 (0.52) 1.00 1 1
1 2011 0.5 0 (0.52) 0.91 18 1
2 2012 1.0 0 (1.03) 0.83 48 1
3 2013 17.8 0 (17.85) 0.75 54 18
4 2014 48.2 0 (48.18) 0.68 37 48
5 2015 53.5 0 (53.54) 0.62 19 54
6 2016 37.5 0 (37.48) 0.56 0 37
7 2017 19.3 7.17 2.38 1.77 8.51 19.83 113.45 93.63 23.79 69.83 49.97 19.87 4.27 15.59 0.31 15.28 23.73 (4.00) 0.060 0.51 94 117
8 2018 7.60 2.38 1.77 8.92 20.67 118.99 98.32 23.79 74.52 47.12 27.40 5.89 21.51 0.43 21.08 26.58 18.30 0.062 0.47 94.37 2101.00 100.69
9 2019 8.05 2.38 1.77 9.19 21.40 122.56 101.16 23.79 77.37 43.93 33.44 7.19 26.25 0.52 25.72 29.76 19.75 0.064 0.42 95.09 2101.00 102.81
10 2020 8.54 2.38 1.77 9.47 22.15 126.24 104.08 23.79 80.29 40.36 39.93 8.58 31.34 0.63 30.72 33.34 21.17 0.066 0.39 95.85 2101.00 105.06
11 2021 9.05 2.38 1.77 9.75 22.95 130.02 107.07 23.79 83.28 36.36 46.92 10.09 36.83 0.74 36.09 37.34 22.55 0.068 0.35 96.65 2101.00 107.47
12 2022 9.59 2.38 1.77 10.04 23.79 133.92 110.14 23.79 86.34 31.88 54.46 11.71 42.75 0.86 41.90 41.82 23.88 0.070 0.32 97.48 2101.00 110.05
13 2023 10.17 2.38 1.77 10.35 24.66 137.94 113.28 23.79 89.48 26.86 62.62 13.46 49.16 0.98 48.18 46.83 25.14 0.072 0.29 98.36 2101.00 112.81
14 2024 10.78 2.38 1.77 10.66 25.58 142.08 116.50 23.79 92.70 21.24 71.46 15.36 56.10 1.12 54.98 52.45 26.31 0.074 0.26 99.28 2101.00 115.77
15 2025 11.43 2.38 1.77 10.98 26.55 146.34 119.79 23.79 96.00 14.95 81.05 17.43 63.63 1.27 62.35 58.75 27.40 0.076 0.24 100.25 2101.00 118.94
16 2026 12.11 2.38 1.77 11.30 27.57 150.73 123.17 23.79 99.37 7.90 91.48 19.67 71.81 1.44 70.37 65.80 28.37 0.078 0.22 101.26 2101.00 122.36
17 2027 12.84 2.38 1.77 11.30 28.29 150.73 122.44 23.79 98.65 98.65 21.21 77.44 1.55 75.89 99.68 0.078 0.20 28.29 2101.00 51.05
18 2028 13.61 2.38 1.77 11.30 29.06 150.73 121.67 23.79 97.88 97.88 21.04 76.83 1.54 75.30 99.09 0.078 0.18 29.06 2101.00 51.64
19 2029 14.43 2.38 1.77 11.30 29.88 150.73 120.85 23.79 97.06 97.06 20.87 76.19 1.52 74.67 98.46 0.078 0.16 29.88 2101.00 52.27
20 2030 15.29 2.38 6.71 18.09 42.47 150.73 108.26 23.79 84.47 84.47 18.16 66.31 1.33 64.98 88.78 0.078 0.15 42.47 2101.00 61.96
21 2031 16.21 2.38 6.71 18.09 43.39 150.73 107.35 23.79 83.55 83.55 17.96 65.59 1.31 64.28 88.07 0.078 0.14 43.39 2101.00 62.66
22 2032 123.08 2.38 6.71 18.09 150.26 150.73 0.47 23.79 -23.32 -23.32 0.00 -23.32 0.00 -23.32 0.47 0.078 0.12 150.26 2101.00 150.26
23 2033 18.21 2.38 6.71 18.09 45.39 150.73 105.34 23.79 81.55 81.55 17.53 64.02 1.28 62.74 86.53 0.078 0.11 45.39 2101.00 64.20
24 2034 19.30 2.38 6.71 18.09 46.48 150.73 104.25 23.79 80.46 80.46 17.30 63.16 1.26 61.89 85.69 0.078 0.10 46.48 2101.00 65.04
25 2035 20.46 2.38 6.71 18.09 47.64 150.73 103.09 23.79 79.30 79.30 17.05 62.25 1.24 61.00 84.80 0.078 0.09 47.64 2101.00 65.94
26 2036 21.69 2.38 6.71 18.09 48.87 150.73 101.86 23.79 78.07 78.07 16.78 61.28 1.23 60.06 83.85 0.078 0.08 48.87 2101.00 66.88
27 2037 22.99 2.38 6.71 18.09 50.17 150.73 100.56 23.79 76.77 76.77 16.51 60.26 1.21 59.06 82.85 0.078 0.08 50.17 2101.00 67.88
28 2038 24.37 2.38 6.71 18.09 51.55 150.73 99.18 23.79 75.39 75.39 16.21 59.18 1.18 58.00 81.79 0.078 0.07 51.55 2101.00 68.94
29 2039 25.83 2.38 6.71 18.09 53.01 150.73 97.72 23.79 73.93 73.93 15.89 58.03 1.16 56.87 80.67 0.078 0.06 53.01 2101.00 70.07
30 2040 27.38 2.38 6.71 18.09 54.56 150.73 96.17 23.79 72.38 72.38 15.56 56.82 1.14 55.68 79.47 0.078 0.06 54.56 2101.00 71.26
31 2041 29.03 2.38 6.71 18.09 56.20 150.73 94.53 23.79 70.73 70.73 15.21 55.53 1.11 54.42 78.21 0.078 0.05 56.20 2101.00 72.52

178 499 60 103 350 1,012 3,583 2,571 595 1,976 321 1,655 361 1,295 26 1,268 416 1,268 1,926 50,424 2,315
IRR = 15.8719%
NPV= 134 NPV= 101 Rs.550 18,877 596