1124MW Kohala Hydropower Project Rs8.23/unit Levelized tariff approved

levelized tariff of Rs8.2328 per unit for 1124MW Kohala Hydropower Project for 30 years is approved by The National Electric Power Regulatory Authority (Nepra).

The reference tariff has been calculated on the basis of net contracted capacity of 1,112.760MW and net annual energy production of 5,149GWh. In the above tariff, no adjustment for Carbon Emission Reductions (CERs) receipts has been accounted for. However, upon actual realization of CERs, the same shall be distributed between the power purchaser and the company in accordance with the GOP Policy for Power Generation Projects 2002 as amended from time of time.

The above tariff is applicable for a period of thirty (30) years on Build-Own-Operate-Transfer (BOOT) basis commencing from commercial operation date (COD). Debt service will be paid in the first 12 years of commercial operation of plant after COD. Redemption of equity has been allowed after 12 years of commercial operation of the plant. Sinosure Fee on debt component of tariff for 12 years period after the COD is allowed at per annum rate of 0.6% (calculated on semi-annual basis).

The difficult geotechnical conditions with respect to the extensive tunnelling and other underground work, the two 17.4km long headrace tunnels to be excavated by drill and blast operation, are on the critical path of the construction activities.

According to tariff determination, variable O&M will be Re 0.1121 per unit for 1-12 years for local components whereas, variable O&M for foreign investors will be Re 0.0480 per unit on foreign component. Water usage charges are fixed at Re 0.4250 per unit for 30 years.

Fixed O&M on local component has been determined at Rs98.7982 per megawatt, and Rs148.1973 per megawatt on foreign component, insurance, Rs105.5339 per megawatt, debt service local, Rs158.2683 per megawatt, debt service foreign, Rs1,499 per megawatt, return on equity (RoE), Rs803.5328 per MW for 1-12 years and Rs854.1364 per MW for 13-30 years. ROE during construction has been fixed at Rs544.5520 per MW.

The Kohala Hydropower Company (Pvt) Limited (KHCL) has requested CPPA (G) for sale of its electric power @ US Cents 9.5585/kWh (Rs10.0220/kWh) for a period of 30 years on BOOT basis.