24 PO 9212024 Tariff Petition FMSP

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FRONTIER MEGA STRUCTURE & PO VER (PRIVATE ) LIMITED
2.4 M« GHANOOL HYDROPO' ER PROJECT
TARIFF PETITION

LETTER OF INTEREST (LOI) BY SARHAD HYDEL DEVELOPMENT
ORGANIZATON (SHIDO)

ATTACHMENT T - 1

TECHNICAL CONSULTANTS

FINANCLAL CONSULTANTS

n,^ ^Ll, ic^l r
{, '11r)A Nor
I',I~L^ 1^ I.^^rsV lA

F: E f J ^^.17 i,•J

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SARHA,D N't'L)E^- L.'E^Urt,ntttiT ORGANIZATION
Government of N.W. F.P. Peshawar
No 2-o - -Xj:SITYDO;OPP:Globez
Dated , Pesha •.. r thiu 22 + 3J20 I D
To

^
M:S GLOBEZ
i7-, Shiekh A4altoon Tovrn,
Mardan , NWFP

Phone : 0937-865113
}
Subject: LETTER OF INTEREST (LOt) FOR DEVELOPMENT OF 1.40 MW
HYDEL POTENTIAL PROJECT AT RAW SITE AT GHANOOL NALA,
NEAR BALAKOT, MANSEHRA

PPgis;rj!,or, No S1^Y0J,'PP/2004x_ n0irooi lv';^!o-Crl drlfoJ 6 7 2009
Ref rc'ricd rlus o'r'e tvCC rssU ed was No 110.14.'S!-fYD0/DPP/GL_ 08EZ d sled
7 2.2010 end 'UbsCquc ;t!;'y you'su^m's .cror : i)fUic.s:i,r!r'i;) Gi:ii:;iriIv. No. 62)04 cf:rfr.'d
S 3 2010 .^r,t^unrrr. !,•, Rs: 7,00 .oLia.'-

in )C:n'., Of iho prov,--ILr:; of lho Provincvai Policy for Po';:cr Generation
Projects, 2006 ;the 'Pokey" ), the Government of NV FP hereby confirms its interest rn your
proposal for developing the :A•.v site at GHANOOL NALA near Balakot , Mansohra for
pourer potential of 1.40 MW approxirnatety ithe "Project',).

As per the policy . under cla ',; se 44, you are hereby i ssued the LOt for
conducting the feasibility study for the subject project , at no risk and cost or arty obligation
On part of GoNWFP .,SITYDC) or any other agency . v:ilh:n maximum first 1welvv (12) months
and subsequenlty ccnstruc.on : t%ic:t en of p(-)v:er pizint and bring it into power production
within rem:!in , nrl rn;a : imL.-,i tr.•t9:r ', 1:'.i: f2.f inenthe of 1f-,e totol grace, ptriiod of thing six
(36) months

\'ou v:::i :-) r c to carp uut ttit: fuasib fa; study accoidiiry to the spec.list
milestones ; time :;chedu`u to Lr•u piovide'd by you to SHYDO and subinit the montnty
progress report accolJin J!y
SHYDO v:ifi ip o:nt - i Ponel of t=xperl (POE) 10 monitor the fua3rbittly study
progress according io he 6rq;u:cr1 ina_ ; lungs and to ensure thta rrnptunlcntation of the
project consi s tent With lc: a ii Bill: :JI,u : tcd lot tire 'grace p criDd of lhl%i c
years for 11w COrttitru• ct,on u' the scncmc o;, per Poi'.-el Pu : rcy 2006

Is_;u iii c trig, L0; c . ., th t p:,.i:I`q nt Is .ala i,' Or you: c4r. cluCliny fujsibihly
study there, under Carr nci ;orrn ti 1e Jacii• ; f ;lily :i:r,ill (or c:mpen_ut'on Jr di mo9c5 by the
spans-or or th e

p:C;t-C' Clumng ihlcc:gt ;

U '_ 1 agD nz.I t:te

Go ^; !F P, _ ,H'i'DC or cl it`'. d]i:n.. i:5 C n ^rl'y g ot:nls ^: t',als:)@:ur, diirir 3 or after the

U;.

y' _ r b:^5^K•1"`i .^ ham, - ...^.

Subsequent to the approval of the feasihility study by PoEISITYDOllrrrgatron
,artment, you will be issued LOS of Iihe construction of the project.

In case you fail to comptute the feasibility study within prescribed period of
issuance of this LOI according to me given milestones and other clauses of the GoNWFP
power Policy 200G. SHYDO n nay terminate this LOl and encash the Bank Guarantee.
This LO! has been issued in dupticafe on dale hercof, and it shall come info
effect when one copy hereofis received by SHYDO afterhovirag been duly countersigned
by you. Neverlheless, this LOT shall lapse if the countersigned copy is not received at
SHYDO within thinly (30) days of is issuance.

For and on behalf of
(Nanme& Signature of Sponsor)

\, ; \,^\r f ,

(^ ^

t. Managing Director

cc.
^. The Secretary. Energy & Power Department, Peshawar.
2. The Secretary, Irrigation Department, Peshawar.

i

Managing Director

U

FRONTIER MEGA STRUCTURE & POWER (PRIVATE) LIMITED
2.4 MW GHANOOL HYDROPONXER PROJECT
TARIFF. PETITION

TRANSFER OF LETTER OF INTEREST (LOI) TO
FRONTIER MEGA STRUCTURE. & POWER
(PRIVATE) LIMITED

ATTACHMENT T - 2

TECHNICAL CONSULTANTS FINANCIAL CONSULTANTS

n'r

,:E: ''J.._ P-^

u^

S IT Y D Q
SARHAD HYDEL DEVELOPMENT ORGANIZATION
Government of Khyber Pakhfunkhwa, Peshawar
No 1254-65/SITYDO/DPPIGiobez
Dated Peshawar the 08 112 12C10

MIS GLOBEZ
1 79-A, Shiekn Maltoon Town.
Mardan, 23200 KPK
Phone 0937-881128
Subject: Ghanool Nala near Balakot (1.40 MW).

With referen;e to your re;;uest vide lettei No nil dated 26.11.2010, Managing
Director SHYDO has given approval for chanoe of name from M/S Globez to M/S
Fronlier Mega Structure & Power (Pvt) Ltd, with the condition that the above referred
_CI

trims

cord ;Inns for

Glu IFCt

prcjec t

will rerr:iin

Intact.

-Pi

e

bank

g

uarantee

already provided will be replaced with a new company name mentioned in your letter
with same validity time period Also you are to provide an undertaking, signed by both

original owner/sponsors of th e companies that newly submitted Bank Guarantee would
b.: encashed if any

terms

5 can +^1 ors et 1. 01 are violated

On providing the above. an addendum will be issued for chance of co npony
ran}_ and registration No r.t; and the old Bank guarantee ,will be returned duly
released.

(Private Power)

(:C
PS to Managing Director SHYDO , Peshawar
Director
(Private Power)

FRONTIER MEGA STRUCTURE & POWER (PRIVATE) LIMITED
2.4 MW GHANOOL HYDROPOWER PROJECT
TARIFF PETITION

FEASIBILITY STUDY APPROVAL NOTIFICATION
FROM SITYDO

ATTACHMENT . T - 3

TECHNICAL CONSULTANTS

FINANCLAL CONSULTANTS

RIAZ AHMAD & COMPANY
Cnan;redAccountants

RENCON

- -1

NEX1A

S IT Y D O
SARHAD HYDEL DEVELOPMENT ORGANIZATION
l.nri i r.,... .. ^ ,.l

R err ^ri'r ^nhht1 /11ka<111'[! Pc'.^heiN '1ir

I).it Ca.t I'^:ha ^ .:rr the I i

L1 S Flo!-,e. (main company
tv1,^ 'rr^, i tip' t:teaa Structu ! e & Power (Pvtj Ltd , (sister ccn11.^:
!own

Subject .

Approval _of Feasibility Study for Ghanool Nala HPP (2 a MV1r1 at
Batakot

est LOI` 2070 09;SITYDOIUPP!G!^'^er fated

a! seasibil r study for the subject proj ect was sunmlaeci ':(de
iener Nc E2E4 gated 8 3.2011
Ltea,
SITYDO is pleased to communicate the following de(:,^,,(s taken
P-; e' c,f Experts ( POE) meeting held on 24 3.2011 ',;u rn,^ t h7
,- .. 'nr ("ha n^0! Naia F7 r: F' tv`VV

a*

nas been completed by MIS FMr;c

Lto

1.1a _; t ^_ m Ir51C c5 oivrn !N: Letter of L ,lcl r. ,

e: i;lllfv 'fustify the assumptions made regarotna !-oj;.•c! costs
.v"iie m:lina the tariff petition to NEPRA

FOE certifv only the completion of the Feasibility Study h •CWev?' d ue to
natu,e of data and resultant conclusions . Panel of Experts i r.intlt' and/or
end Rio :al'v -will not be responsible for reliability of data

c.urtt:i t and

conclus ins :Wren n the feasibility study

the Erlvirollmenia' clearance 1'(:'" the
Govt of K-..),bei Pakht,ink;i•..:t ^...,

.i....'. FX.4'! I 11

C

) l f '

1 I-r^ I (r?':'

ii. a- : -,::ranee w i th the provisions of the Policy for Power Generation: Piole:.ts
o' Khyber Pakhtunkhwa and its subsequent amendments upon the
:hr feasibility study by the POE the sponsors are required . n apfl each
^1i"r'•': - P SCO f,-)t tariff negotiation and finalize their tariff within thr,-^t• •nnni`'s

autslEd to approach NEPRA PESCO and l u•

'doff

.,••.a r,+r,li ^) within three i3• months starting t,-or

if
n

Vve appreciate your efforts for completion of the feasibility study and txpec.t the
Sandi pace and spirit for negotiation and filling the tariff petition with NEi

Yours Sincerely

Managing Director
SHYDO
Copy to
a; AAanager (WPPO)
JJhr'O+ r rouse I ahore

Chief Executive PESCO
WAPDA House Peshawar
The Chairman NEPRA

OPF building. G-5/1 Islamabad
PS to Secretary Energy & Power Department Govt of Khyhei
?ab.htunkhwa Peshawar

..If P14w.ri SHrIY

'^f th

apdaHouse Shan Road Peshawar PH j091) 9211558 1 1 %

1:,*

1

FRONTIER MEGA STRUCTURE & POW-ER (PRIVATE LIMITED
2.4 MW GHANOOL HYDROPOWER PROJECT

TARIFF PETITION

Noc FOR TARIFF PETITION APPLICATION
FROM PESHAWAR ELECTRIC SUPPLY COMPANY (PESCO)

ATTACHMENT T - 4

TECHNICAL CONSULTANTS FINANCIAL CONSULTANTS

p 7 L f, er, rnti,v ,`^,

a1"'03-(1

v

t,JCC.I'

P -i NU. : 0O92^ 1 X21 _\323

Jun. 01 2011 10:^2Ari P1

PYC
PH#r 091-9212334
Fax 09) 9212024
Nc
Ivi/s Frontier
tits ^✓
9a Strtjr e

179=A. Shc ^

kh Matto

OFFICE O F THE
EXECUTryE PESCO
WAPDA HOUSE. PESHAWAR

CHlEf

d Power (P ) Ltd.
Town.

L V

"Ref:

your letter No. Ni dam-

AES-o rote,
p •-2011.
-Axcheae
Pier from 2-4 A.NV
Balakot subject to t e Gnool
mo ons:

Hydropower project

frl If the tart? tleterrvrW
lr it ebb to PESC.O.
2) - Metering wig be dome at 132kV OSS
3) The inter onnectxRy

ti

and ft t lwd decided
to B. later on
If the above temisand c+ ors i
ebb b ^e frm• cow of tar•IfT petition be
submitted to this office before apprpa.iir, U* PRA th debermrntbn.

copy to:
- 1 ,I 2h ief o

p ar Cpp

2) Man aging D*r^clor,

F'PB,

Road . F-714. Fstemebad t.

r:

-

-'

FRONTIER NZEGA STRUCTURE & POWER (PRIVATE LIMITED
T-% -r' r r Ti ^ -'r' r) T) T) C-) T-' ('T
Z.` Al^'V
VI1:^1\VVLiiiLnVl " jv L_1^t t^vji.^.^
%'%'7

TARIFF PETITION

Noc FROM ENVIRONMENTAL PROTECTION AGENCY

ATTACHMENT T - 5

TECHNICAL CONSULTANTS FINANCIAL CONSULTANTS

1111±

III' ICn t al

I ' t'() Ie•(ii(, ^ t .1!u nC\

-nvironntcnl I)clla ^ •llncttl
.. . ,,, .'. n 1 t'ul, lrtrrrrltlr„';r

i

ri 7eeshan rr,an:aaa Khan.
Ct el l xecut;ve.
F-ont,er Meca Structure 8 Power (Pvt) L,mitec
Mardar,

;'hone Nc• 35,.,T-S 2

ISSUANCE OF NOC FOR GHANOOL HPP (2.4 MW) BALAKOT.

nciose
E
1Jt.n, d t(! vojr irltj

4

;-egal Environmentai Aparoval;

WV Ghanool f iv:iro Power Pro;ec, Balakct D : slr c:

r-atlcn an d

f urtner

mplem cn t a;,o n , plea s e

ti

j

De J c ector A

1rii F 100r-, Old Courts Building . Kh her Road. l'csh,m;ir (':,ntt.
I c I : '1,, ( ` t l l `)2 10?63-92 1 0 l 4S. 1 ;, \ : 92 (91) 9)? 1O2 8O

ft

SCHEDULE-VI

Decision on TEE
1. Name, address of proponent : Zeeshan Khanzada Khan
Chief Executive
F-owner Mega Structure & Power
(Pvt) Ltd. FMSP.

Phone No. 0092937881128
2. Description of project. Ghanool Hydro Power Project is proposed
to be built on Ghanool Nullah at Ghanool
village. The site is located 16 Km
upstream of Balakot in Distt. Mansehra.
The project is to operate on Run-off river
basis. The flow in Ghanool Nullah shall be
diverted downstream. The channel will run
up to Dhamdar village where Forebay will
be built. A steel penstock shall be installed
to take water from Forebay to
Power House. The water from Power
House will be discharge into Ghanool
Nullah.

3. Location of project

The project is located in Balakot
District Mansehra.

4. Date of filing of !EE , 09-05-2011
(Ref. EPA Diary No. 376)
5. Attcr careful r ev c.•., the Environmental Protection Agency, Govt . of Khyber
Pakhtunkhwa has.::ecided to accord approval of the Initial Environmental
Examination for Gh inool Hydro Power Project , Balakot , District Mansehra, in
line with the guic _-lines . issued by Pak . EPA and IEE / EIA Regulations, 2000
Subject to the follor:,ing terms & conditions:-.
a) Inc proponeril

will adopt all precautionary and mitigatory measures

identified in lEE report as well as any un-anticipated impacts during the
construction and operation phases of project.
h) Land compensation

agreement with land owners / houses and flour mill

owner, should b'' provided to this Agency before starting activities on the
Site-

c) Debris / excavated material should be disposed off in designated areas.
d) Non technical jobs should be provided to the local community.
c) Compensation )f the land should be paid on market rate / as per govt.
policy.
t) Afforestation pi•.^gramme should be planned and communicated to this
A(lenc:y.
g) Renolar dischL•-je of water should he ensured for the: use of present
dependents on ::ownstream river.

Y

n) ..GnStr^J:.iiOn o:tl.:)' Sf1G^IJ not be cameo Out curinng the nest1-.91' tcrung
s(iL^Sn)n of l:•Ilo an'
S

cs

..

.--Ia:!0
`c'ty cif !S-

a`ter

_

mForm Ing

he local

)Crn!n^;rr[^;!O ; so -nunr,y
Health and safet\ •neasu-es ( PPEs ) should , be provided tc the staff during
pnctruCti^n ' -id - e-ation stage.
rhu proponent shale : c IiaS'' e `or correctness and val dity of the mformaticn
supp' ed by the envi

nmental consultant.

i he proponent shale liable for cornol ancc of sections 13, 14, 17 and 18 of
ICI-'CIA I:e_ulations 2000, regarding approval , c;.nfirmation of compliance,
unlry, inspect'ons aT mon!:Or•na.

rt!.S a J(>^ 0^^: S uc: Oed C- y for the i stc Marion/ Construction phase of the
pruiect Thy: pmnor

it w,ll obtain approval for operation of the project in

:sccorduncc w! Section 13 (2) (5)

and Section

: 8 of the IEE/EIA

^,ny C^.an t v^ ect Se commur!Cated to EPA, r;h.,oer
ctintu kSv a a^d c -n enced a':er ebta!ninc the approval.
.'u u e i. CS ^u:l and void if all pr ary of the conc!t!pns
rcn:ion('d anon e 'S, e not c.,mpliea v,, th.
apprcval does : boo-.a the proponent Of the uuty to oDtain ony other
upprova. car C caracc :~at may ae recu ! rec uneer any law i n force
-.:u!nst the pr ^.t

in crc s( of -nu ,tier under Section
A-t, 1,99 the e

12 of the Pakistan Environmental

cersgned is pleased to approve the IEE Report

f(r corst ru, t on o . ,_ of ,ne Droicct

with above mentionCd terms and

conC^t!on-

ISutud: l^ushawcir

`^- 7- ? n /1 ^+

I rack ! nq/ Hlc.No. ! I'A /it C/: :puol •1.PF/ qpZ-

DIRECTOR GENERAL
EPA, Khyber Pakhtunkhwa

^ll I I

3`° Floor , SDU Building , Khyber Road,
Peshawar.

11 S.

FRONTIER MEGA STRUCTURE & PO\'ER (PRIVATE) LIMITED

2. 4 M W GHANOOL HY DROPOWER PROJE C T
TARIFF PETITION

LETTER FROM NATIONAL ELECTRIC POWTR REGULATORY
AUTHORITY (NEPRA)

ATTACHMENT T - 6

TECHNICAL CONSULTANTS FINANCIAL CONSULTANTS

P,Ef'JC^ r'J

,I Its

National Electric Power Regulatory Authority
Islamic Republic of Pakistan

[18 1d

rioor, OFF 5utidtng, G-5i2, 5hanran e :amhurat, ;s a:;;ouu
Phone : 9207200, Fax: 9210215
Wehsite : www.nepra.orq [Ak, Email: info (a)nepraorq.,, k.

REGISTRAR

) :\ Sheikh \lulloon to I1 ' irdtn
'^ulljeet: ^I'YflO^ ' al. OF } F:AStRII ITY STtTDY FOR CHANOOL N ALA HPP ( 2.1 !tlWf AT l3a} .A}:(YI

I'le:,u• :ite: 1„ IL:t:r \'' _-22S SH'i DO'DDP:'FMSI' date) 1'-04.2011 of Sirhad Iltdrl De i , ^pntini
,t1VI)i_)I just e....: :o M F-ontter Mega Structure & Power (Pet ) Limited il=\1..1'i

li 1111 iuf

MC

:,j

'ICI_i :)ro)CC:
lu

the FMSP bus been advised to apnr(1Jcn ^1_I^li `t IUi
guidelines for submission UI a {)r ll^.:'iu: !UI'

N'EPRA' s

etc.=-nati

1J1;',

on ofTariffare detailed hereunder.

I

suhn 111ned pursua nt tU Se' ctiu:l 15 111 ^I:I' {^.•^ \i '. :I lid
the Reet.: l at ions' alone \\11h pil'<: :'Ihc^l !ce :5 Iii:
,i of the Regulauvns Copies ui E}'li , :;i..` :hi 1 _.Ilal iu;. .: i
I Ice nce can he

^^...in:i ^^;.• .

Me pr < uiedure set out in

)CiIi un or :ar 11 Jete:-n,1-tation c an he filed as per Tariff Rules alone with applicable ICC. a., i rc ;air; rn n' , Rote ?t i) of Tariff Rules' Copt of"farifi Rules is enclosed
1'ii^.^: a to h t inc L. i.cnie A.PpltcauonTariff Petition fees are linked Huth C'P1 ret: ed on monthl\ bust..
i:r: n:n: „t•;,;) !,cubic lee :na.v be confirmed from this office at the time of filing Generation Licence
i): i,l:i•^,Y I.I flit P tit: ln.

I ncI: :\I .Ih,•. i
(Seed Safeer 1 ussaut)

P i icclor . SHY DO. _,( 16-'>VAPDA House , Shame Road , Peshatear

tc
jtiI

FRONTIER MEGA STRUCTURE & POWER (PRIVATE) LIMITED
2.4 MW GHANOOL HYDROPOWER PROJECT
TARIFF PETITION

LOCATION PLAN

ATTACHMENT T - 7

TECHNICAL CONSULTANTS FINANCLAL CONSULTANTS

K. AZ AD &: COMPANY

0S

FRONTIER MEGA STIWCTURE & POWER (PRIVATE) LIMITED
2.4 hMW GHANOOL HYDROPOWER PROJECT
TARIFF PETITION

TARIFF PETITION

SECTION °- 8

TECHNICAL CONSULTANTS

FINANCIAL CONSULTANTS

RIAZ AHMAD & COMPANY
C n3rlerec ,ycfoui:ani

RENCON

(Ii,

X1A

i wain " w In
(frontier Mega Structure & Power (Pvt) Ltd.

BEFORE THE NATIONAL ELECTRIC POWER
REGULATORY AUTHORITY

TARIFF PETITION

ON BEFLhLF OF

FRONTIER MEGA STRUCTURE & POWER (PRIVATE) LIMITED

FOR

DETERMINATION OF FEASIBILITY STAGE REFERENCE TARIFF FOR SUPPLY
OF ELECTRICITY POWER SERVICES
FROM 2.4 r W HYDROPOWER PROJECT AT GHANOOL, DISTRICT MANSEHRA,
K IYBER PAMTUNIH-IWA

BEFORE TI-IE NATIONAL ELECTRIC POWER
REGULATORY AUTHORITY

TARIFF PETITION

ON BEHALF OF

FRONTIER MCA STRUCTURE & POWER (PRIVATE ) LIMITED

FOR

DETFRMIN.1TION OF FF.\SIBILITY STAGE REFERENCE TARIFF FOR SUPPLY
OF ELECTRICITY POWER SERVICES

FROM 2.4 MW Hsi DROPO`VER PROJECT AT GHANOOL, DISTRICT MANSEHRA,
I^I-[YBER PAKHTUNKHWA

FRONTIER MEGA STRUCTURE & POWER (PRIVATE) LIMITED
House No. 179, Sector A
Street No. 4 Sheikh Maltoon Town
Mardan, Khyber Pakhtunkhwa

FRONTILP, MrIC_'. STRU,criu t & POWER (PRIVATE) LIMITED
2.4 My Gi-LANNOOL HYDROPOWER PROJECT

TARIFF PETITION

DETAILS OF THE PETITIONER
1. Name and Address:

F rontier Iviega Str u cture & Power (Private ) Limited
I louse No. 1-9, Sect:-,:- -^
`treet No. I sheikh '.1 ,lrc.on Town,
Mardan, h 1, beg P i l:rar.:^^rya
Company Reis rade n No. C^O,Ci319
Phone : 093- - SS 1 1 ,8
Fax: 1193- - S6,-, 113
zkzau 1^;_, rm u.com
Email:

Project Sponsors
i. ^1r. Zeeshan ILnanza is

.Authorized Representatives of the Petitioner
'vIr. Zeeshan

Ch e e c

n -„

I

r:onm " Ic a S ucture & Powe= Pdvate) Jun tee
H oust N o. 1 -9. Sector A
Street No. 4 Sheikh Maltoon Town.
Mardan. Khyber Pakhmn.khwa
Phone - 8811 28
Fax : x:193- - 8681 1 3
Email : zkz(Ft hormail.com

_'. 'vL. Muddassar Mchmoo Z(-A

Partner
Riaz Ahmad & Company
Chartered A ccountants
2A. _118 Centre. 30-West
Fazal - u11-IHay Road. Blue Area
Islamabad, Palastan
Telephones : (92-31) 22 4 1 21-2
Mobile :
(92-333)' 4223 41 49

Fax :
Email :

(92-5 1)
88 59
md(a racopk.com

8.1

} RON'TIER M EGA STRUCTURE & POWER (PRIV =^.T1:) L i it i }. J,
2.4 Mw GHANOOL HYDROPOWER PROJECT

TARIFF PETITION

_n, ,u.Fazal Mahrnood Qureshi Technical Consultant - Renewable Ener ;\
(RE's CONS
-4. _\Lr. _ mmad A hmed Financial Consultant - Raz Ahmad & Co,r
11p,
Chartered Accountants
GROUNDS FOR PETITION
1_-rider the "Regulation of Generation , Transmission and Disrribu .:ion of
the N EPR-^ Act, NEPR^ (the ";:,~
T -' 1
ec _r}c Power Regularon- Authorin-) is responsible , inter-alia , to determine to it
tether terms and conditions for the supply of electric power services by the ronc^.
ua.t srn: ssion and distribution companies and to recommend them to tlx:
(0cv-e r;irnent for noutication. PRA is also responsible for determining the ^,r^_=cep
procedures for reviewing and approving tariffs and tariff adjustment s, etc.
Power _^ct (1I_ of 1990 hereinafter referred to as

Frontier Mega Structure-& Pose r (P '-,-ate ) Limited ('FMSPL"j is a ?tit ;_:
c ompany and registered under the Companies Ordinance, 1954. Sponsors of F^l^ '
,e up, on BOOT basis ,• a 2.4 '\. W Hydropower Pruiect at about :6 Itims ut, rr;
I t, over a narrow `orge 'uf Ghanool N; llah ,ha:ha;:
B_ lak(^t-N.._

i^a tier Pa'!-lhrunLhwa Province of Pakistan.

c

Feasibdin- report tar the project has been approved H the SHYDO , I'.
as convF yet be \ h` )(_.) vide letter No. ~,'_'^` \I-I
I 1( ,) DPP F\ IS v.... _ _.

AOC from Pesha\yar Elee:ric Supply Company vide letter
date- 2 'play "011 has been received.
`.OC from Environmental - Protection "A gency , E nvironment

er: nenr of Khyber Pakhrunkh^wa vide Icrter No. EPA. IEE, Ghanool; 9(.
ui, -,,I1 has also been obtained.
National Electric Power Regulatory- Authority (, EPRA) vide letter
NF_PR_ 'R/ L_AG-30/FMSP,' 285-S6 dated 6 Mar 2(111 has advised the nha,ri^t 1t
1 r.!>n ier Mega Structure & Power (Private) Limited to approach NEPRA for a ^; :• .,
tariff determination for the project.
In accordance with the policy of the Government of Khyber Pakhrunki-jo
Government of Pakistan. F'vISPL'is submitting this petition for determination of Fe o _,:
taee Reference Tariff for the Project based on the technical data and cost estimates
t_le^feasi'bilitt report in order to facilitate its financing and impicmcntat on. F'\ISPI_ ^.._
submi-,ed an application separately for grant of Generation License for the project.

(?31)

F'RON I [AZ INIEGA'STRUCTt RE & POWER (PRIVATE ) LIMITED
2.4 h1\, GI-L',NOOL 1-I-DROPOVER PROJECT

TARIFF PETITION

11. In accordance «-irh the requirements of NEPRA Act and Rules and Regulations
made there under, FMSPL he_-eby submits d1.is Peridon, in accordance with the YEPRA
(Tariff Standards and Proced Mire; Ru] cs 1998, for determination approval of the Feas:biLmStage Reference Iariff and rs Adiustlmenr Indexation provisions and other terms and
conditions for the project.

INTRODUCTION
1?. The project sponsors as listed above have formed consortium comprising of
Renewable Energy Consultants (RENCON) and Riaz Ahmad & Company , Chartered
Accountants (RACO) to und.r:r:l;e the feasibtbn" study of 2.4 MW Hydropower Project.
13. Prolect was offered by the SI-IZ-DO for implementation in the private sector
pursuant to the Sar}aa d Hvdel De:-veloprient Organisation Polies 2006 and GOP's Policy for
Power Generation Projects _, -2 "Policy").
14. The spons:,:-s \vere ; rc gummed and a Letter of Interest ',LOT) for canduct"_1110,
feasibihn study of the said pioiect u-as issued to M;'s GLOBEZ (An associated
u_lder"taking: by Sri r DO lets r tic,. ^i i, -DO, DPP, Giobez dared 22 March
010 (Attachment T- 1). ' ill ryas u ans te:"red the name of \1, s Frontier Mega
Structure & Power :Pr:vane i..r.Zr d vide letter no. 126 4-65 .%_',H1 DO,"DPP,Gobez dared
S December 2011 (Attachment T- 2) as special ucpose company was fanned for this
projccr.

The work ,r,:

.,dy cutn^e:,ced ;11 March 2010. The assienmenr included
s:,ady, t he ccjl]ecIIon and review of th e previous studies
pr oject p arame te rs. cost es-±mates and economic and
op:11m_
zatI
In
if
and eVsung data,
financial analysis. T h(: consulranrs submitted reports on core acu v i aes of the study and gave
presentations to the S1^ .-DO's Panel of Experts (POE; from time to time. POE's valuable
observations and comments were duly acknowledged, evaluated and suitably incorporated in
the feasibility report. By the Trace of _dlrrughn- Allah. the feasibilin- study of the project was
completed within the supulared period and the draft Feasibility report was submitted to
SITYDO on March (1S. _011 and presentation thereon was given to POE on 24 March 2011.
Feasibility. report for the project has been approved by the SH\-DO's Panel of Experts as
conveyed by SHYDO vide letter No. =2 _S, ^H^ DO, DPP;'F \I^P dated April 13,
2 0l 1.(Attachment T- 3)
13.

site roves aeons,

i':1

rcass_^_i

nra n .r 1

16. NOC from Peshawa- Electric Supply Company vide letter No.64--49 dated 28 May
2011 (Attachment T - 4) and NOC from Environmental Protection Agency- Environment
Department, Government of hhv ber Pakhtunklawa vide letter no. EPA/IEE,'Ghanool/ 96_'
dared 0- July 2011 (Attachment T - 5) has also been obtained.

s.3

'10:^TlER MEIGA STRUCTURE & POM'ER

( PPI VATL- )

I .I\la-[

2.4 Mw GHANOOL HYDROPOWER PROJECT
TARIFF PETITION

-
^, is Pll_ for approval of tariff determination for the project.
`:. Pursuant to the directions of the SHZ-DC), this Tariff Petition has tie ^Tl

t.led hr the management of Frontier _Mega Structure & Power ;Prig ate; I_i ',.r
accordance with the requirements of the NEPRA Act and the rules =rained 1r, t::
is z n ew prospective Independent Power Producer (IPP). and is Cur e
i a
Lcensee un der the ",EPRk Act. F"-NISPL has, therefore , shnultaneously tiLc
application -,N-irh NEPP\_A for the grant of Generation License.
1 I he l eference Tariff as determined by NEPRA pursuant to this Peunr;.

b c me a part of the Power Purchase _kgreement (PPA) to be executed bets eel 1 r
Ie :. structure & Po^x er (Private) Limited and the Power Purchaser i.e. CPP.':
}^as^-d cn the PPIB's standardized PPA format and as mutually agreed to by tl,^:-.
CJ_ tilt projc-ct specinc requirements.
All the pertinent information about the project i.e . sponsors infor-ma-i
Repo-:
d^ cc-moon, tl,e Envir onmental and Social Impact Assessment
tic u: n ._._angeIneo ts h \TDC's Grid S^-stern. nnThei:l data, etc
:_t.rlained [hill or at ached this petit7on.
\hana `,ernent of Frontier 'Mega Struct 'r.ire & Potter (Trivate: Limited w all
.-_ a^ additional info- ation a....n.d , hen re:;;:ti d b% \ EP

PROJEC T DESCRIPTION
7 he project ennsages development , deli m. en^zu2eenna, nrancir2y , cc=;._,r_: ;.
_ sn commissioning , 0%x- rung operation , maintenance and transfer of 2.-1 \ IVY P _ .
the Ilwar Hydropower Plant at 16 Km upstream of Balakor in the hhrbct r .hl.,.t_.
Pre,, ;ice of Pakistan on Build, Own, Operate and Transfer (BOOT; basis It, aaa : .
with `.^rhad Hvdel Development Organisation Policy ' 2006 and GOP 's Policy rot P
c ;eneraoon Projects 2002, as amended from tisne to time.
^. The Site is located at about 16 Kms upstream of Balako_, a steel u -us s hadey a:
narrow gorge of Ghanool N ullah (bath.) on Balakot -Na_-an read.

11i. Chanool nt llah is one of the small but perennially flowin- lent bank uihutari
Kunhar River that has its confluence about 16 krns upstream of Balakot tour;
confluence of Ghanool Mullah with hunhar River is almost in front or' Tancair '' :^1.
1, 2 major right bank tributary of Kunhar liver . The Nullah tirnc- on ^i^.,r c
aci i .netts off Makra and Mukharr peaks Vt 121012 are part of a p_onunenr co ch i"._ _. A ,"

FRO'N-1 iER MEGA STRUCTURE & POWER (PRIVATE) LIMITED
2.4 MvV GIT4NOOL HYDROPOWER PROJECT
TARIFF PETITION

feature in the catch : cnt. The Slo.; is further contributed by a number of arterial seasonal
perennial streamsas the nul'ah descends towards its confluence with hunhar River. The
confluence of Ghanool Nulhh with I1"unhar River is at an approximate altitude of 1200 masl
and the highest cle; on of the nulah ca:chment is about 3800 masl.
'D. From the confluence c,f ,ullah ups tream. initial stretch of about 1000 meters is
relatively narrow a gorge lil.e: A bridge on the main Balakot - Naran highway is over a
narro w gorge formed by the :lo;; of Ghanucl nullsh. From the confluence point un til the
biidge, physical mcu\-emenr through the narrow gorge is possible but not easy. Upstream of
this bridge , the bed slope is rulaovely mild and the valley starts opening up and remains so
until the outskirts of Ghanor,! and neighbouring villages. Average bed slope from the intake
down to power house location is about 8"o. This average bed slope and availability of
perennial flow offer favourable opportunities of development for a small run -off-river
project. Although the surface `eology at some of the places along the power channel does
not appear to be stable, protective Measures shall stabilize the slopes.

^6. Pakistan 11 a v:c-arer -rich counter but. unfortunately, Pakistan's energy marker
a ration has been caught up in confusion and paradoxes for
Investment in hydropo,. er
more than a decalc, at^u :a_. .udcaut prowess has been achieved so far. On the other
hand, the Government a t:, ]_?c r-) f acihtarr private tnyesrors to p ro m ote IP:del put; er
generation i n the c- gain'.-A . H'. circ ^cwer is a primary domestic source of energy. Pakistan is
endowed with a i v icl notana d. of ;n(-_)re than :11.009 VW_ most of which lies in the

Palate

n ia;;

a, ^^c _' coi
n . _rC:. .

r

l I n mu

a nd

a

{._ s ?m.!. and Puniab

:ter the c?" 7,C? a tail, the countr- faced numerous prop ems including
dearth of electrical ;,uv, er. i+ : c? cpo;", cr dcveir nmenr in the Indo- Pak subconnnenr stared
in 1925. with the ccinstrucn()r. , •i the Renala 1 \I\\ hydropower station. After a decade, the
1.- \I\\' Malakand-l hedn:pov,-c"r s:axon was built, which was later upgraded to a 20 \I\\
capacity. Subseclue:.1v, in l Ofd. the 26 '\PV Dargai hydropower station Was commissioned.
At the time of independence, Pakistan inherited a veer small power base of only 60 'SPX'
capacity for its 31.5 : iillion people. Ar the tune or creation of \\APDA in 1938. the
country's total h'y d. i potential t ipacin- was enhanced to 119 IV\'. By the Indus Water Treartin 19611, it was decided that Pakistan is entitled to 142 MAF (Indus 93, Jhelum 23 and
Chenab 26) of water _irihzano::. Subsequently. '40 \I\\ \\-arsak, 1000 NI\\ Man-M and 34-S
\P\- Tarbela Hydropower Pruiects ;sere consuvcted. The total installed capacit;" of die
hydropower station.; in the co _.nrr is about 6393 \IVI, our of which 3-6- \I\\ is in N\\FP,
1696 \i\\W in Punjab. 1636 \F\\ in Ally and 93 \I\\ in the Northern Areas.

PROJECT LOCATION ( Attachment T- 7)
^S. As indicated in the feasibility report. various sites for the proposed project were
evaluated using a cot nhi;n: or. of ^.isual assessment. surface geological and topographical
mappin. " geomoi^?InC^Iopa l'..rsictf a.-- _.-s:s. sub-surface site Inyes^^'an am and cost-

ON1IER I\IEGA STRUCTURE & POW ER (P RIVATE)
2.4 %''1w Gi-LA-NOOL H) DROPOWER PROJECT

TARIFF PETITION

base' on estimated energy generation . Seisi-ncitr.- of the project area was aisc
nd taken into account for design of various st uctures.
d4. I_ogistica':iy he project site is most conveniently accessible . irhout anv c :
intcr,t;luon. Except for heat-- spells of rains that cause slides along the main %101:x, a
road a open Throughout the year and project works can continue uninterrupted.
routes to the project site, which mar be used during project development
naer.

Islamabad- Abbotabad - Balakot - Project Site I -O I ms
Peshawar - _-bbotabad - Balakot - Project Site : 24U Kms
Islamabad - Muzaffarabad - Balakot -- Project site : 1 SS hrns
:). Approximate time to travel to the Project Site for two types of vehicles En:
,,canons is zi ven in Table 1.1 as under

I
4x4

■

Islamabad to Project site

Sire
■ Pcsha%-ar to Pr,,ject

P,ck up or SUV

Muzaffarabad r, -, Project sit;
('a rh 1- minutes sropover on the way
• Islamabad to Project s i re
• Peshawar to Project site

Loaded Trucks

■

Muzaffarabad to Projecr site

(.^ itlr m-o ?(t minutes stopovers on the ,:,-a,-)

OPTIMIZATION OF INSTALLED CAPACITY
?. Since he project is to be developed as a Run -Off-River scheme, the opr.n-s;
^crcise starts «irh es 'on of installed c apacin and energy be,ietits at ari_>u.
. , es. The costs and benefits of installed capacity are then computed for c,:ic':,

dcin discharge. The installed capacity , costs and benefits are then plotted on r:
c,rder to establish the optimum point where the difference between benefits and
In the project is maximum or in other words the NPR- is n-ni imu:_^.
Project sizing and power porendal have been computed on the basis .>:
data. The pattern of Clow unde*gvrs a cycle of loves and highs uflu_:::

F RON T LR MEGA STRL 'CTLR ;. & Po yER (P RrV'_A,TE) I_,IMITFD
2.4 My GI-WOOL H Y DROPOWER PROJECT
TA-RIFF PETITION

0.18 m s to 1.4 n-, ,s. e mean annual discharge available for power gencraoon in
Ghanool hat-la i esnn:areu be calculated at design discharge (mod 1.0 mis
riven below.
Available

Month Discharge
(m3/s )
all

Wat er loss t o
1 se epage &
lo cal use

Diverted
Discharge

Power EnergyI
i

(i.04

0.16

40^ 0 20-.600
'00 ! 4 _0.400

Feb

0.?5

0.05

0.30 1

Mar

1.20

0.15

1.('S

Apr !_

1.

_1

1. 0 2401( 1.-^'81_^l^U

:'400 ! I.- ^.60(I

i
' 1.23

'' 40 0 I .-S -.hc,n

\Iav

1.40

Jun

l .i l;

('.10

0.05 24'_'9 I .-2S.(inll

Jul

i'tir)

!..1(0

(I.-0 16^'O l .19i ^_ u ^

-Au-

1.i' 1'

f_^.1 tl

X1.90 X29 1' 1.636,590

1400 1.005.000

Sep

Oct

0. 40 _ 650 . 453,600

Nov !

0_;n

0.1`04

Dec

('.1 S

(1.111

0.14 330 ^ _GO.40(•

Mean

0. 7 4

0.09

0.66

j 0.26

400 IBSOr^n

1
1441.67 1 12,662,400

Annual Plant Factor (" ;! 60.2 ;

S.7
ell.

Fis : . i i iZ I1i I G.1 STRUCTURE &. POWER (PRI\"-vi IL) LI hi i
:.4 N GHANOOL H YDROPOWER PROJECT

TARIFF PETITION

IM can monthly available flows for am average year of precipitation.

1 40

20

0 4Q

0 _'V

0 C0
Jan

Se1.ccnon of number of units is an Lmpcrranr exerci se in proiect lay ou-..=,17
- 0cri e ro have a t inunum number of uiv - s a-,.4 ^i c' :l a^a
mulapie number of units may be necessary due to technieai and economical reas.:
1 of number of units is made on the basis of minimum ava ably c^isr.l: :
acctm able airbine efficienci '. The hydraubc nirb:nos .are deli` _cd to np:r _.
of Ciencc at des n discharge a n d rated head . With 60 v ariabon
di
e efficiency also g ets affected . I n case of Cha ncel FrAmn the des-:-o
1 = "?e
L nch unit is 0. 4 1n , s. The efficiency of the turbine shall thus be 2rfecr ed aIs tihc
31

e How this < alue. It has been observed in practice that the efficienc y still r
accepcablc range if tin available discharge is about 50 w of the design dkcki

um available discharge in Ghanool Nullah is about ':'.I Sm s. \yl ich is ro-;:
e he,i, n discharge. It is thus convenient to conclude that a minimum num.1- e:
:,;r` ,.r SOCI kit- shall be the best choice .or the proposed layout . Otherconsiderations for this choice are.

o Convenience of transportation and handling or he project site . a lower c v,
unit weighs less and is thus more easily transported . handled and op r,itr.. t'
Operational flexibility. The units can be shut and operated 0 An
variation. In case of two units. the turbine shall be forced to opcrar
discharge equivalent to only 25 of the design discharge that mac arrec
efficiency of the unit resulting in power dc-rating.

FRONTIER ?`JEGA STRuc-FURE & POWER (PRIVATE) LIMITED
11.4 Mw G1LXNOOL HYDROPOWER PROJECT

T_°^RII F PETITION

• Commercial benefits. \\-ith rvo or one unit, the power output may be affected
due to low efdci tics in lo-,v flow periods causing reduction in commercial
returns.
• The power house st_ iucru e is lighter with more units as light weight handling is
involved.
_ 4. The proposed powerhouse vU be equipped with three (03) horizontal axis Pelton
turbines of single et. The r,::ed power producing capacity will be SSG k\V- each. The
proposed plant conrigu:anon ;fires maxin-lum annual energy production of 12.66 G\\lh and
an average annual plant factor c,f 60.23° o. Each turbine is connected via an inlet valve to a
common uifu rcation branching off from the main penstock pipe. The spherical butterfly inlet
valves shall be firm, c.IU : ecr d to the penstock pipe and the inlet of distributor of the
turbine . In between the valve and the turbine inlet pipe. a removable pipe with flange at both
ends si?ould be provided which is c. ;!able of bea i_n g small al movement.

HYDROLOGICAL STUDIES
Der:u]e d ' s-udy it given i.. Section Technical Study Volume Y- of
:b 1 t^ d, i uc nibu_.1nes, uhc hydroiu^_n eal staao-ins for !naintiuning
lo ng term records ire no: av.uIablc. At best, th e fow me asur emen t s or about 12 months
duration could be :IlacE ava ::adlr during the course of s tudies. This information on flow
C'i vanaIIOns o, cr longer ,uerch Or amt.
i he catchment a-c.l Ci' Lrl: :^ i<,r;ha cnn1of >^ ncJ' rn :lopes of Iak_ a. lL'ki L',

Gaya and Mali mo_:nt os. T!-, es ni:ired carc}z icnt area upto diversion weir is about
km-. The flow in Glr^nuol h a :.a mosey o!i«i..ates from glacial melt atop peaks of 350(1 naasl
and above in a trellis pattern: _ , number of arterial flows combine to foma Ghanool hatha.
The upper reaches of carc:hm :r : re vet- steep, narrow and inaccessible. The valley starts
widening in the loner :-eaclnes brio,v Ghanool villa *e) where clusters of human dwellings
can be seen right dawn to c :htluencc of nullah with Kunhar River along both the banks.
The tlo,,t- in the '_\lt.iilah is perennial seasonal va 'aeons. The variation in estimated
measured flows ma:, be -pto for d-ry and wet periods.
^G. The climaroloiical cycle in the catchment area for any representative year is a
multitude of avera dn- and et spells. \\ -inter precipiranon (October - March) caused by
\\ esrerly disturbances is the noun. source of snow deposits in upper reaches of catchment
area. A prominent geograpliicai feature in the catchment area is the mountain peak of \Iakra
with an elevation of f5 mash. Must of the mountains in the region above 2800 mash
remain snow bound or about ^ months of the year. Melting of snow from these deposits
stars in the month of Marc", each year. ii, the lower reaches of catchment, the day
temperature is abov, e freezing Cr. in the Midst of -,winter season. Snow deposits in lower

S.9

ftl:L;<> ;
is 1 1 ram. Bulk of this rainfall is in the months of July and Auirust . The chmarc
crchr.hent area is very similar to Balakot town except that at higher elevations. the
:empciarures area few degrees lower.
The flow in Ghanool Kadla continues to recede beyond the month of
,n er \Ionsoo:hs arrive. If the 'Monsoon season is wet. the flow in Gil nooi ..i
ilso _ se from that of June level and it it is r c:ariveiv dr), the :.i( ,%\ " \l-i be eV c n i;>:^ .'
lone. The flu ^^ in Ghanool 1a tha is. t hcrt fore. ur_der :.aluucce
slon^oon rains in the Months of July and August with a sieni dcant amoul-a 0I sc

t. x'l:it U[

:' c ^r ent in the s ream bed. Flash floods caused sudden bursts of runs in thtst

another prominent feature of Ghanool Nuidih.
chmaro loincal activiti es between Sc'r ter'_lber anti rnii:lle C t December
considered to be less prominent . The rain fall :n this period of the year _s far le
l,cr months. There are occasional bursts of rains due to local convects c
ut October most of the farming aetirines also come to close as people prepar<
d :.anters ahead. The flow starts declining from the end of August until it
:ni;i^^ autn in the months of December and lanuaii - each year. This complex-_s rl,-,
c. cle in the catchment area. TI-iis climatic cycle is typical in lower stretches of carcl-,. in
ILaivai.
_orIJu;LhaRivept

SEDIMENTATION STUDY
1 The confluence of Kunhar River and Ihelum Rivers is at Rarha,
dcwnsrream of Dogrel. From confluence downstream , the river traverses a distance
kms before entering :vIang!a reservoir. Previous studies on sediment yield,'rranspcai is
establishes following equations for:
'_- jr is r_,:' in heav f:_od siruanon that bed load is transported
n

44,

Th e

.`11 :111 r_c s not have

dU:,'n^ card- ll^ u _7Ca>'u^^Ilicnt^ are. Cher tore, nor available IOr Ghannool nuflali. Ac^r

r_^e same is available for G aril l :bibulah, Mozaffarabad or Dudhnial stations. Since no bed
load sampling is available citl_^ _ c,r hunhar. Aceluni or Jhelum dyers, a value of 3U° o has
been assumed for the bed lead on the previously available literature. Therefore additional
30° c load is added the sedir:enr load based upon suspended sediment concentfanon.
i^. Suspended sediments :.re particles of sand upto 0.2 mm thickness that can flow
through the stream. \o :ne:ls.;rc•ments for -lie flow of suspended sec merits have been
recorded for Ghanool nullah r various gauging stations. Raring cur -es, however, have been
developed that can be used roughly estimate the movement of suspended material in
Gitanool Nullah. The applicable rawig relationship is as under:

Y= 1.=426X'.=.c
46. \\liere I is sediment c,,ncentranon to ppm and N is the water discharge in ms.
dividing the MS of the eyuanon by 1000. we gee sediment concentration in kgj'rn'. For
sediment load. die R11-5 is mu_upied with v, ter discharge to get the load in kg / sec. The
equation for sediment load in k. cc is as under:
=(i•I1:'.31

f4

i?c)",' 1 Ii R MEcr .^ r RUC"TURE & o'xER (PRi^".^T Ei LL\Ii
2.4 M' GI-iANOOL HYDROPOW ER PROJECT

TARIFF PETITION

I'v using the above equation and the assessed mean annual dow. suspender_'
loads of Ghanool Katha can be estimated. The esdmared suspended sediment I:.sd

SEISMIC II.AZARD EVALUATION
-I`). the project sire is a run - off- river scheme i.e. no poundage or resen"oir
ree1uisernents for prescribing design speeiticarions for a run-off-river structure
iron a reservoir based power station . Generally , a darn based power station

story < capacin- is to be protected from failure as it would entail colossal loss
ropert^ . The design criteria for such projects are thus more suln^gent . The Pea

_',cc-clerauon (PGA) value for such projects usually adopted is "0.3"g as Operanr^;
^_aruhauake (OBE).

But in case of a nin - off river scheme . the failure of diversion weir or parts
Sliann l would not cause damage at the sane scale as in case of a large rese:rvor
;tea ^acn re. Moreover, if a higher value of PGA is adopted even for a
structural stab' could not be ensured as the sr ;icrt es are built in `,
slip or slide under the affects of gtc and shaking: Atte mpts. to stabili ar.
cs throu gh rich designs would be uneconomical . ? he values of ^t rind
the design of a run-orf river protect thus have to 'br J ciJei ur 61L
c :Jsus ^ns and suitabilit<.
proposed p roje ct site : the sei s mic hazard m - e result wren
e:utlie;
:cr gents caused be'tiain Boundart Thrust :,'^ff3T . vnrh a mar utudr
is a lvlsxjmum Credible Earthquake '.DICE' with a PGA value of
i or the

,,17(,(! poyver sranons, the value of OBE is usually taken as half of --ht MCE. It is
:^_cic r .Nate to recommend that the PGA value r--jr structural design should not be a

1_1`,,

AND SOCIAL IMPACT ASSESSMENT

AS indicated in the feasibility report. the environmental and sort
^; sessment SIA) study has been undertaken in accordance v ith Pakistan Is
dards. It focuses on the impacts resulting from the eonstuction of the power cr,._::>ou c house and associated ,vorks. Both environmental and social impacts of the pt ;r,
the r.e have been examined and discussed in the technical and econonvc fc =iii
.: er the project
I1l. porennal environmental impacts of the Project have been any vac ..'
rninganon measures and residual impacts are discussed in the ELA Report. The
c;,r>c of the constrr-ucnon works and the environmental seta-11_ of the Project rc- .._,.

(' ')

J iJ '`t L.

FRONT1LR _ IEGi STRUCTURE &

Pou ER

(PRIVATE) L IMITED

2.4 Mw Ctrl- I_xNooL HV DROPO\VER PROJECT
TARIFF PETITION

there is no sicrurl.r.anr adverse environmental impact. No permanent adverse impact is
anticipated in respect of sens_IIve hablrat, wild life or cultural heritage.

The project v U bn about signincant positive social impacts in 11e area.
Employment opportunity and tr-ailung will be provided to a large number of unemployed
youth. They will receive life-nine benefit through skill training, capacity building and poverty
alleviation. A large number ^.,f semi-skill and unskilled workers in the Project area will be
lured during construction. Greater a\yareness about healthcare amongst the labour folk and
the local conalnumr-. shall be created. At micro level, economic activities may reduce the cost
of living down by making es^•ennal commodities available in greater bulks and at cheaper
rates.
5-1.
In conclusion. many positive economic and social impacts will appear in the qualinof the lives of the c to p le ._rf the area due to implementation of the Cl Link Hydropower
project. These incline g ene a ;,,n o f direct and indirect employment, business opportunities.
infrastructure developm ent, :::a d iiilprover ent of living standards. Through adequate
environmental manalemenr :end ;-unVganon measures, the project %vU have least adverse
impact on the environment and tie surrounding community. The implementation of the
projE'e: \' 11 not tll__5 I' S' :T =-- na Cep: le llnpict on the
cons tructlon or

diin nc

subset'-::211 t_i lerauon c

the

en vironm e nt e i ther

d unn«

pr-o)e ct.

SCOPE OF WORK
Tile

scope U ri: r.o: t.nn
• Iii- w,_ ,. -'.ale
•

A

po

of

E):,lan^ _)r

sele cted project

enco mpass es the followin

.."!d sediment tluslung facilities
s itua ted upstream from the existing . 132/

yr ;i ucci

11

hZ substation

• Tailrace channel dischrr_=ulg the water into the Kunhar River
• 1 11 l^\ Srihstaaon for dispersal of generated power
• \\ orkshc,ps and maintenance facilities
• Staff Colony

INTER CONNECTION WITH NATIONAL GRID
56. Please refer to letter no. 64-49 Ghanool dated .28 May 2011 of Peshawar Electric
Sup ply Company PESCO; ( Attachment T - 4) whereby PESCO has mentioned that
_nterconnecnviry and its cast \v ill be decided li:rer on. Therefore Interconnection details u ill
be mutually agreed v;-ith Pesha\v ar Electric Supply Company (PESCO) at later stage.

8.13

RO" Till.;;', EG.A STRUCTURE &- POWER (Ppmvrr
?.4 My w GI-LANOOL HYDROPO\VER PROJECT

TARIFF PETITION

SALIENT FEATURES OF THE PROJECT
neral

I.oc^tion of project
I :.;r ion wet
B i' ^^^ erhouse
Stream

,! T ributatz

Point of confluence

About 300 inerers dou -nstream of Gha oc,i .i...
About SO meters upstream of Coot ie _n l
Nullah with Kunhar RB-cr.
Ghanool Nullah is small left bank tibut
About 1 G kilns upstream of Balakot -o vn.

hcece r route to Site
1 r.larnabad - Abbottabad Dalal; or - Sire

1-0kns

b lslainabad - Muzaffarabad -.
Gatihi Ha _.ibuliah-Balakot --Sire

1 S3Kt:^s

Peshawar-Idassan -^bdal^bbotabad-Balakot-Site
Approvinate travel time

240 K.n:s

I- ---Route .a-_-

4."
r 4. c

4 h_
6 hrs

0. Surface (i ological features
7. Stream Iivdrologv
.ircnment area

39 km

,esr Cie-, - -)I in the
uclirneui
r^.ge nnual precipitation in 1,001111-1
c tci^menr can annual dr',- year
precipitation in the catchment

1200 mm

\l as annual wet year
recipitaticm in the catchment
term mean flow

2000 min
I 1.,m`

ion:,- available 50° o of nine (Q,,,) 1.0 m'; s
Flow avaulable :' Oc o of nine (Q-„) ti.^ m.,s
F io^.y available 90° o of time (Q,,,) ! 0.2 m s
\.',nirnum observed Clow 0. 18 n

FRONTIER MEG.% STRUCTURE & POWER (PRIVATE) LIMIhED
2.4M\\" GH_ANOOL HYDROPOWER PROJECT

TARIFF PETITION

8. Structural features
Power channel
a

X section (inside)

Rectangle

b

1 section (Ounicle

Rectangle

c

Bed \Vcidrh (inside;

1.0 m

d

Bed width ( outside)

1.-6 m

e

Height above "-),-d

1.1m

Depth of water

0.9 m

Free board

0.2 m

h

\\ idth of sections (Top;

0.15 m

i

\C-idth of section borrom

If

Floe- velocity

4 ft;'s

k

Bed slope '

1:500

1

Length ofwat r c'Iannel

^r

^'wcr^re

RCC

0

m

Forebav
Len` th of main ioreba',- h d

14.2 m

'^Iax Det)di of tor: bav*
c

Overall widrh,-,r-

d

Lr:1«Lh o f ti as

e

St ucrure

ir_

4.c m

RCC

Penstock
a

No. of main LC-

:

Ib

Outside diameter

1).90 - "CH - 0.45 m

IC

Thickness

S mm - 10 mm - 1' mm

' d i Length of penstock , -1' meters
No. of main anchor blocks .1
Dimensions c-f

mai

n ::.1Cnor

J m x? x 3.

1

blocks
No. of e^.pansion joints 21
ii No. of reducer pipes
Power house

! a Floor area

8.15
^^4:i

^TR FGA STRUCTURE &

POW ER (PR1v' IL.)

Mug Gi-L NooL HYDROPOWER PROJECT
TARIFF PETITION

O UtUtS
C :'x(3.1': or 7antrk- crane.

11.5 m
j 12.465 rn

c - ^tlucture

RCC frame with stone ' brick filler ancls-

Divers ion- weir

Tyrolean
- b .`.t^ucire

RCC / PCC / tone g a'lions combinanot sr ,

c l_r rr:'::1 of m ain spur

2 5. 695 in

ct rig _=hr of spur

3 m including 0.5 meters in foundation
34.0 m

3.0 m
\I txunum Height

2.280
RCC

t':lectrct mechanical pant
- r 11'binc

Pov, Cr

Singh ic: P ltcon \\1i.c'1

8-0 k\\'

10e1 0? L1?ll LS

4u
:a C ^_ctlcraQt!n

k \V

3 00

600 RPMi
3(n)0 .'y --^ I
Electro--pneumatic
'o'ver trar.storn-lers

3300/ 11000 volts, I 1'1i 1^ 1 kV A

10 Pla nt C xa. racteristics
1n ta^'led Capacim

2400 K\\

a _Aiir uai t eneranon

12.6621 ink\Vh

Plant factor
ioce of operation

Grid interconnection

Inrerconnecnon Voltage

11000 volts

Leap th or intereonnecnon

13 km

t. ^pL ration at installed capacir\-

1 52 days

FRO?:TJER MEGA STRUCTURE & POWER (PRIV _ATE) LIll4TTI:LD
x Gl IANOOL HYDROPOWER PROJECT
14 MN
TARIFF PETITION

IMPLEMENTATION METHODOLOGY
5The proiecr will be implemented preferably through an Engineering, Procurement
and Construction iEPC) Turnkey contract arrangement. Feasibility study envisages
construction through an contract, involving a consortium of a main contractor, a
consulting firm for detailed d`si`Yri and a supplier of hydropower related E&'\1 equipment
and requires that the contractors be pre qualified as a part of the international competitive
bidding process. Alternatively. the proiect can be built by engaging two EPC contractors i.e.
Engineering and Prod-Irennent ;L-&P) Contractors and a Construction contractor. The E&P
contractors will be responsible for the en-ineering and procurement E&M plant and
equipment and supple. supervision of erection, resting conunissioning and guaranreci.lg
Plant performance and construction contractor will be responsible for civil works, local
transportation of imported plant and equipment. supply of local equipment and materials,
erection testing cc rnassioning of Plant under the supervision of E&P Contractor; The
combined under the two cc n factors will result in a standard and fully functional Plant
meeting required ^ertorn: :ce levels and all PP-\ requirements. In the latter case a
coordination aoreemenr will : ba be signed by the three parties i.e. Owner. F&P Contr=actor
and Construction Contractor to delineate responsibilities of each parr- and thus satisfy the
:-equire^,tent of die ^, Dicer Ic:__i^ s -.id other Tnponents of the works. The quantiries have been derived from the general rani
enu :x.--:,ut drawings of the structures developed as a part of the feasibility - study. I':r
t iared in the Feasibility report is given in Sec6on 6.

(1 Y S

tRONTIi;R MEGA STRUCTURE & POWER (PRIVATE) LIMITED
2. N-1\\ UI 1ANOOL HVDROPO' ER PROJECT

TARIFF PETITION

INTEREST RATES & INTEREST DURING CONSTRUCTION (IDC)
63. The consultants have aher_ KTBOR rates as of 22nd February 2011 in the tariff
calculations. IDC and debt srmcin7 have been computed at the said rates based on a
construction period of 30 months.

Expenditure in Foreign Currencies Other than US Dollars
64. The Consultants have tadicated the project costs in Rupees and t:S Dollars while the
actual payments are likely to be made in other currencies as well. In this connection GOP
has already decided that the IPPs mould not be exposed to impact of exchange rate variation
between t:S Dollars, Euros, Pound Sterlinc, and Japanese Yen up to the Commercial
Operations Date. Pursuanr to :h s decision, the EPC price and other costs will be expressed
in other currencies applicable and NEPR_^ mill be requested to allow
indexation 'adjustment at the I-'PC or COD stage.

TOTAL PROJECT COST
(5. EP(__ cost and :ani-:_l ar esn: axed re be Rupees 468.'1l :.pillion both i, the
feaslbuty report as ell as :.. rho co-, csnr a es for this pettl on. Total p ro j ect co st as per
Feasibility report is Rupees 0-1 _o :ail.lion. So: unat-v of project cost is riven below.

8.19

n^f

l t:C^' ' Fr1:1: MEGA STRU CTURE & POWER (PRIV_?Tr) 1_ Plii
j.4 Mww' GH_4NOOL HYDROPO)X'ER PROIECIT

TARIFF PETITION

C_ MNLI A.RY OF PROJECT COST

Freehold land
b u% dinL- and Civil works
YIN" X"'T

d111 ' / ^:'.ci'/thg . i1^1J17ber

Joe 'or Cbamlei including p/vleclion Ir'or .c
1 ^n^'l^a^ C u'aslcu'a)
I'z os oo :,ioIio;.i ci Sz/ppoll i

s/ee/'pipes (Alain c_ rDillwa))
Pi'2r i- Nnzr.i'
0 ; ie Ozt i pro/cot/ oil 11'07 t„i

Generation plant and equipments
;'o .l lt', :hani: ai anti E/ 7i7: ai e i inment
I 1i'a11^711_'i slot; Pro to

Baiakol

aln'snYI.C;1,.

Oil., .ii;'t'/ ii'o' k.
III i11ra11o:C. /a.A'e.i, l1 711.t 01'i'ci^'l(/li

al.'`P/2i'/It JCC

of 1: fL f 01 pro/n i e.%-"'11d111v IJllelrsl d11J'.11` con.ll7/.71o,l
Iu,t

IDC

Total cost

I

"` Projec t cost amounts to USS 6 . 99 Million . (A t exchange rate of Rupees 86)

FRON,,]'IER MEGA. STRUCTURE & POWER (PRIVATE) LIMITED
2.4 Mw GI-LkNOOL HYDROPOWER PROJECT

TARIFF PETITION

REFERENCE TARIFF
66. The proposed Reference Tariff is a typical tiro-part tariff comprising an Energy
Purchase Price (T-11P) for the energy generated and delivered to the Power Purchaser and a
Capacity Purchase Price ,CPP based on the hydrological data of Ghanool Nullah. Details of
tariff components are as under:

a. Energy Purchase Price
6`. Energy charge is the variable component of the tariff which depends on energy
purchase puce (EPP) and 'yet Electrical Output. The Energy Purchase Price indicates the
price of a unit of electrical energy i.e. k\\_h. EPP is applied on the NEO produced during the
period to calculate -he energy charges of that period. EPP have further two components one
is water use charges and other is variable O&M. Breakup of Energy Charge assumed for the
purpose of tariff calculanons is s,i. en as under:

Rupees Per
KW-1i

Lnerry Charge

U 130

^, n. bye O&T'I

0.168

Evers v Purchase Price

0. ;15

i. Variable O&M Component
68. Variable O & '\l cos- Has been calculated based on the average annual net energy
generation of 12.66 G\Vh work ed out from the hydrological data of Ghanool Nullah based
on plant factor of 60.2 o. Tiu component caters for the cost of O&M on a k \\Th basis for
the day to day management G_;f the hydropower plant . It includes replacement of spare parts
on completion of their scn-ica as well as replacement on account of premature failure of
the parts.
69. For the purposes of tiff calculations. total operation and maintenance cost of the
company will be Rupees 2.5 r 1 i^ .n per annum. 2D_° o of the total operation and maintenance
cos- will be charged to the ^ a_iabie O&M cost and -S° o of the total operation and
maintenance cost y 11 be charged to fixed O&-\I cost. Cost of stores, spares and loose tools
consumed by the company .vill be Rupees 1.3 million per annum. Operation and
maintenance cost per h\\h is given as under:

8.21

051 .

1 1 iEGA TRUCTU RE

.I OWER (1'R?1'A

2.4 M".\: GI-LjNOOL HYDROPOWER PROJECT

TARIFF PETITION

Variable O&M
Rupees 1-,1\Vh'

Operation and maintenance

0.019

Stores, spares and loose tools

(C.11 S
CIA 6S

Calculated on the basis of net electric output i.e. 12',66='.->j K\Vh.
Variable O&M is ndexed with wholesale price index - manufacturers (\\1P"`

O&M

the revised applicable tariff componen t of variable C?t<._', i
die Revised Wh olesale Price Index ;:^l:inufac irrr:
for the month of Januar 201 1
The \lholesale Pace Index !?Ianu:ac:arer,, as
Federal ?Bureau or ^t^esdcs for :hc .,. nth - D_,__,_
i.e. 2OO.i 15

ii. Water Use Charge
This component represents the \X'arcr Use Cha_-^_,e per unit or ent:
n rr:c,l by the Plant and delivered to the Power Purchaser b,- usin the
Nt lah. At aver use charges are parable to the Csovernmenr c,f h hn 1 ak':,~

applicable to the energ<- generated using the water resources of the t .!u:
L se Charge ,\-ill therefore , be subject to approvai, acceptance by the G << <
bcr i'akl!nznkhw a. For the purpose of tariff calculation . v%a.er use chart
IfL ner11-A\h.

Ia, Capacity Purchase Price
Capacin- charge is a fixed component in the calculation of tariff and
t ap,;:n Purchase Price (CPP). Capacin- charges are calculated bv applying

The Capacity Payment is based on optimal plan ; capacin deter n.
re..>i't^il n report on the basis of die hydrology of Ghanool \ ullah . Tine Capaci-n P
been computed on the basis of the plant capacity and is expressed ir, i:sec'.
^. plant factor and is parable d the basis of a\ adabie caoacm

RONTI :I 7^iEGA ` IPUCTL'RE & POWER (PRI ATE) LIMITED
2.4 Mw GI LANOOL HYDROPOWER l'ROJE-CT
TARIFF PETITION

Frontier Mega S tructure & Pu '.ver Private) Limited . This is a Eked monthly payment payable
to Frontier M ega S tructure & Power I'Iiy are ) Limited irrespective of the actual hydrology
i.e. hydrological risk shall be borne by the Power Purchaser as per policy for hydropower
generation projects = '_0116 and GOP' s policy- for power generation projects 2002.
D. CPP consi sts of ±::erent components used for the calculation of tariff which are
explained as under:
Rupees Per

Capacity' Charge

Insurance

h\Vh
1.000
0.4`_5

Debt Service

8.043

ROB du:^ng Construction

0.459

Pitied (P& yI

1.806

F.OL-

0.1-0

ithholdin Tax

11.932

Canaci:--, Purchase Price
Fixed O&M
This tiled <_)&M

6.

I ncludi ng
u

^It

Cr'C1t ('fCI1t renrc- tits the taxed

me remuneration

al so

the

:i ck l^_... such

costs

o all the O:S :'^.i _ ta_.

s ta r a nd oth er a d ministration c osts including rents.
.15 h EPR 1 Leb. audit fi r s, legal retaner sh ip anj

CoIlsult ancy fees. e i c . 1 ius c :':poi:ent is sue ect to

l ocal \V-PI

Lrl

dexacon.

Fixed O&i I is csa_..It d to be Rupees 12.66 million per annum and Rupees 1 per
h\\ h.

S. Fixed O&'\I is indexed with wholesale price index - manufacturers (\\7'I):
Fixed O&M 1.,1^ 1(^ ' \V-PI AV-PI ru
\\here,

\\-PI
Faxed O&?\1
a'V-PI I rr.

the re-.:sed applicable tariff component of Fixed O&M
the Re•.aed \\1-lolesale Price Index (Manufacturers) i.e. 201.9- for the
month of lanuary 2011
the Reterence Wholesale Price Index ('Manufacturers) as nodded by
Feder::] Bureau of Statistics for the month of December 2010 i.e.
00.05

S.,;
F ... _ 13

SI T; h rGA STRUCTURE & POWER (PRI\ _1"i E) [_.! ^'!
2.-;• M1\;' GI-LANOOL HYDROPOWER PROJECT

TARIFF PETITION

insurance
T O. The insurance component consists of all risk insurance reinsurance for :.,
v c ; as business -interruption insurance , u-hich are lenders ' and PP_\ s

c^,s.zcrnernts. Insurance policies are required to be maintained for the plant life a:>
.3^ tnr standardized PPA. The asks to be covered through insurance small include
1 a n, n aturd calamities (like earthquake), sabotage and consequt r, 1:
n :r: uf> iort etc.

insurance cost is estimated to be 10 o of the total project cost and will b
miilir_7n and Rupees 0.4-5 per K\ h.

insurance is indexed with TT&OD selling rates as norihed by Nauon
r-i as under.
u.r^nce n^ L.4-- ' TT&OD .v /.TT& OD,hi.r

the revised Insurance component

The revised TT&OD L \S PIER sel.in` .are ..e. R•. ncc.
Fcbruan- as nodned by National Bank of Pakistan.
The re ference TT&OD L. SS, PKR se-Er., rate i.e. Rupees
^ti e..,a! .
^^a..,i of
nstied b: '^.
st ".
December ^-_iG ,n as cuu

Debt `aervice
The long tern loan will be obtained at markup rare of hIBOR plus "'
«i.ll be repaid in iii fears in quarter '- installments . Repayment be .,

t ,r],-)n of construction phase on the commencement of commercial op, r.^.
e t trio^. is presenrlv estimated as 80° of the project cost. The prop o ,e::
rc is as under:

Percentage

Rupees in Tiiffio ,

Project Cost 01-1 i
Debt
8u°
o
-I
Equip-

For

on

tariff calculation purposes, annual debt service will amount to Rut):

and Rupees S. U4 3, K\X i.

U -5

FRONTIER MEGA STRUCTURE & POWER (PRIVATE) LIMITED
M CSI [ANOOL I-h-DROPOWER PROJECT
TARIFF PETITION

Return on Equity
S 1. The ROE component includes 19° o return on the invested equity, net of
withholding tax. Under the Policy for Power Generation Projects 2006, the hydropower
project is to be constructed on Build, Own, Operate and Transfer (BOOT) basis. Pursuant
to GOP's November 2005 Guidelines for Determination of Tariff for IPP, equity has been
redeemed after completion of the debt servicing. The project on expire- of the concession
period would be transferred to the government against notional cost as stipulated in the
Policy for Power Generation Projects 21)06.
Sf. The equity invesmaenr is expected to be a mix of local and foreign currencies. All the
invested equity (both roreirn and local) will be converted into equivalent US dollars at the
reference exchange rate. This component would be subject to indexation both for Rs. ; U SD
exchange rate variations as well as U^S CPI in ration.
S6. The return on invesunenr has been kept at 19° o in dollar terms as currently the PIB
(Pakistan Investmenr Bond; vicld is 1_;.S0 percent per annum for 30 years bonds. 11113s are
considered as risk free invesinents in market. The investor investing in project always
incorporate risk pr_::^ium r"', i::vcZtment . The hydro proiecr has long gestation period. hick
irks and the inyesrmenr is b ing made in current unpredicred political. severe economic
conditions coupled wi-. n circular debt :slues faced by the power sector. This justifies 19° o
dollar terns return. -also. he below mentioned risk factors are Involved in the project:
1. Political and secar_rv problems

3.
^.

Economic

cone rlons and

financial

crisis

E nvironmen tal & resettlement issue.: people I ndulge
p rolonging the lm pl ementanon, period

in

liti gation

resulting inn

3. Cost over-runs. for various reason including unforeseen delays which cannot
be quantified upfront
6. Higher risks du.u-1g project constriction and completion
Little experience world-wide regarding implementation of IPP hydropower
projects
S. Lack. of appropriate infrastructure
Problems associared with the project being in the remote areas

10.

Longer gestation period

it.

Circular debt is,ues

S.,;

ii{UC.iI_ RF^

/ P UW E t{'
P

2.4 M_w GnA.NOOL HYDROPOWER PROJECT

TARIFF PETITION

i:e,,rrn on equine will be indexed with TT&OD L'SS Pak Rupee Ua
by National Bank of Pakistan as under.

ROI :h, = 1.806 * TT&OD i v / TT&OD

j.,.

Revised Return on Equity
The revised TT&OD USS/PKR selling rate i.e. Rupees
Febnian- as notified by -National Bank of Pakistan.
The reference TT&OD CSSJPKR selling rate i.e. Rupees
December 2009 as notified by National Bank of Pakistan
Return on Equity during Construction
Return on equip- during eonsnvction is the return to the sponsor toot
nje re i onn- construction period. The return is calculated at the rate of 19° e

a t ;or' of thin rears using the P_- IT formula. For the Pu poses of tan-lit Ca
cr..tr: on equip- during construction will be Rupees 0.459/k-tih.
Rholdinag; Tax
or the purpose of determination of tariff, it 't.hoIdint tax on rnru-f;
-<:anonMonth for
Pakistan \\-PI ,`.

Ianuan- 2011

Reference Indexation Month for
Pakistan V,-PI

December 2010

Reference Indexation Date for TT &
1OD,.,, US$ /PhR selling rates as
notified by National Bank of Pakistan

14 Februan- 2011

Reference Indexation Dare for TT &
OD,,,_, l 'PKR sellh_ne rates as
notified by Nation l Bank of Pakistan

31 December 21009

Other General Assumptions
The Arope std Reference Tara f 1F based on the folOAvjns assumptions. A:-,Y- change
.n any of these a sll_^^^7;1:.; 1I necessitate a corresponding adjustment in the Reference
Tariff:

a, Project financing structure is based on S0:20 debt-equip- ratio. If the lenders required
an equity contnbutiori 'ii;g-her than 20" the financing structure shall be adjusted to
meet the lenders' recjw ement. In such an event, the Reference Tariff shall be
adjusted at financial cic,sing accordingly.
b) Capacity- Payment is calculated based on the net plant capacity- determined in the
feasibility report of the project i.e. 1.495 Mw by applying annual plant factor of
60.231' o. Detail is given above under the caption "Reference Tariff.

c) Hydrological risk shall be borne by the Power Purchaser.
d; The consts:-icnon period for the purpose of Reference Tariff calculations has been
assumed as iii months from the Nonce to Proceed' to the EPC contractor. In case
the completion of the project takes mcn-e than 30 months. IDC and ROEDC shall be
adjusted based on the actual time taken for the completion of the project.

el No tax on any income -,r FMSPL including the sales proceeds from CPP_- /\TDC

8.29

(i;i:I

CI,— J1 f 17J !N, 4' 1 :G_^ TRUCTL'RE PO\\"E F. (l'R?^' "^ ?') 1_I i1

2.4 iw GH.ANOOL HYDROPOWER PROJECT

TARIFF PETITION

assumed- Corporate tax, General Sales Tax and all other tales, excise d,.:. .
"es etc. by any Govt. functionary including local bodies as and a he n irnh _+s c .
he treated as a pass through item.
it hhoiding tax C^ 6° o on local supplies/`services by the Contractors1'Cur_ ^^ncluded in the project cost. No %ithhold.ing tax in respect of PC
:u:actor is foreseen. In case there is any change in taxes etc., or if adriia;,_...
i e s. excise dun-, levies, etc. are imposed, the EPC j Project cost and the R, -:,
ariff will be adjusted accordingly.
osier Purchaser shall make payments to FMSPL to cover all the eners sae
the Grid during the pre-COD period on account of the trial niiris
testing/retesnng. commissioning of the Plant and during additional
Gperanons Tests until COD is achieved. Payments will be invoiced re
P^..rchaser as per the EPP component of the Reference Tadf_ in accora r :: .t
mechanism specified in the PPA. Similarly, the price of energy delivered durins
(;OD resting shall be paid as per the EPP component of the Reference
I he Power Purchaser shall be solely responsible for the tinancirn*
>>ocurernent, construction, resting and commissioning of the IntercotLij c
rannussion facilities. The Power Purchaser shall cumniere all
commission the Transmission facilities at least three months prior to the
c,_ missiorung of the tryst unit.
On Debt ;enuces Resen e Account 'DSP . Maintenance Res r c
Co:.tir.crenc^- heserre Account or any other Reserve
_
Account has been c
:anldel.
`^r> n construction period, the timing of debt drawdrnvn may , ar
srirnated now; as such, the actual ('Interest During Consrrucnon' .11)._
updated at COD and the Reference Tariff table ,%ii be aditrsteci 1
Sirnilarly, the adjustments for variations in the assumed benchmark Inhere s r ^v
shall be applied.
(per: non and -Maintenance of the plant v U be as per the OEM's rec r .t:
in the 0&M manuals.
_d11 generable energy from the plant shall be fully dispatched .'accepted
Purchaser or payment in lieu thereof shall be made by the Power Purchaser
ON" aver Use Charge and its indexation shall be in accordance w h
hydropower generation projects, 2006 and the Water t: re Agreement siesnreci .:
the Company and the provincial government.
\Iithholding tax on dividends d -.5°a as required under the
Ordinance , 2001 is assumed . Any change in the rate of the ^t ithholding ten
pass--tl-urougn to the Power Purchaser.

FRONTI R MEG "+ STRUCTURE & POWER (PRIV.ATE) LIIviITI-;I7
Mw C1I-LANOOL HYDROPOWER PROJECT

TARIFF PETITION

o) Zakat deduction on dividends (curiend., at 2.50 o) as required under Zakat Ordinance is
considered as a pass t1E-ough.
p) In case of any wunrennonal error or omissions, n-pographic errors, and any genuine
assumption being oveilooked, the same will be corrected 1 incorporated and advised
toNEPR\ as soon as FMSPL becomes aware of it.

ci)

Any additional indexation or concession allowed by the GOP, NEPR-\ or another
Govt. funcuonan- to any IPP shall be allowed to FMSPL without any discrimination.

91. In order to provide an incentive for operating the plant effectively and c fficienth-, it is
ern isaged that in the event the annual energy production is more than the benchmark
energy assumed for calculation of the Feasibility- Stage Reference Tariff i.e. in excess of
12.66 G\lh net electrical output in any Agreement Year. besides EPP, additional
Capacity- Payment shall be made C 10°,. of the Levelized Capacity- Purchase Price per
kWh for the energy delivered beyond the benchmark energy of 12.66 G\l"-h net
electrical out-nut in any -Agreement Year. This is recommended by the consultants in
the feasibility report and is also in line with the incentive already allowed by _^EPRA to
\Ialakand III H%-d-opower project.

The Co? 1pn r- r_ y se R _'rh rence Tariff fo r the p roject. based on the c osts estln7ared in
the fcasibihrv report an"' the assumptions outlined above, applicable for a period of
thirty- (3 () a,c_ reement Years conunencir:R from, the Cornmercial Operations Date is
placed at Attac hment I - 12 for con,deranon. by the _^urhor`i^' ^iPRA) du Ong
rtariff determination. Tire Debi Servicing Schedule is also placed at Attachment T - 1.3.
summar f Feasibility St::gee Reference Tariff- riven below:

Summan- of Feasibility Stage
Reference Tariff
Levelized
ear 1-30
Rs. per k\\_ Rs. per kW Rs. per k\\-

Year 1 - 10 ' Year 11 - 30

Description
Capacity Purchase price

1.000
0.475
Insurance
1.806
ROE
('.4 59
ROEDC
0.1-'0
\X-ithholding Tax la .5 '
Loan Repayment - Interest Charges 8.043
11.952
T otal
Fixed O&M

1.000
0.473
1.806
0.459
0.1 70
-

1.000
1.806
0.159
0.170
5 243

3.909

9.152

0.168

0.168

0.4c5

Energy Purchase Price (EPP)
V-ar_able OTC M 0.168

S.311
(iEi.

i:C) Ari IF,! N3EGA STRUCTURE & POWER

2.4 I'vlw GI-LANOOL HYDROPOW ER PROJECT
TARIFF PETITION

Summary of Fea sibility Stage
Reference Tariff
Pearl-10

Description.

1 'earll-"0

Itis. p er k\\' I
0.150
0.318
12.270

:tt r i- se Charge
.i ,:tai
J oral "tariff (Rs./k\ h)

I- . t.

Ye i

Rs. per k\\"
0.130
0.318
4.227

(i) CPP equal to 10°% of the l ve
Capacity Purchase Price pee 14.`-, 0
Rupees 0 .915/K'h ; and
EPP delivered beyond 12.66 GWh
^v- A reement Year

(ii) EPP i.e Rupees 0.318/K'A'"lh
Total : Rupees 1.233/Kwh
Cents 1.433 / KWh at ex change . <
of Rupees 86

he Levelized Reference Tariff worked out in the Feasibd iry report is Ru:
I y t: or 1^ S Cents 1 1.010 % h^V-h at exchanze rate of Rupees 56.
NI TAR. MECHANISM FOR DETERMINATION OF T.ARIh
HYDROPOWER PROJECTS
F_I'I

Mec hanism

for D etermination o f

Tariff

i j^ diopo ^ r r ,'t

1Tv i ;. 2003 requires determination ; revision of tariff for hydropower pro
rii^ )v ::c three staves:
a. The tirsr stage foreseen in the _NIechanism is for a tariff
Feasibility Study of the Project. Feasibility Srudy is required tc, be
curate and supported by relevant details including unit rates
activities:

b. The second stage envisaged in the Mechanism provides revisit..,
Feasibility Stage tariff on the basis of EPC Contract(s).
adjustments are allowed at this stage:
Cost Variation due to Geology in Tunnels : The cosy vat aeons arc s:i'i
either due to escalation of rates or changes due to a different das:ifi .
rocks encountered during execution.
ill. Civil Works Cost Escalation: Adjustment in cost is allowed due to eec al
in prices of Steel, Cement, Labour and Fuel.
Cost Variation in Hydraulic Steel Structure and M &E Works: Thu. c

y J t) 4

FROWN-I 11-11, i- 4LC,,-. ,TRLCfLRE &: POVER (PRly l E) L,IniiTL D
?..4 Mvy GHLANOOL M-DROPO\k ER P1tOJECT
TARIFF PETITION

Hydraulic Steel Structure and M&E Works are adjustable based on the costs in
the EPC contracts;.

95. The third stage visualized in the Mechanism is the final revision in costs (arrived at
after EPC contras ) allowed at COD. The adiustments include:
i. Cost Variation due to Geology in Tunnels;
ii. Civil Works Cost Escalation;
iii. Cost Variation in Hydraulic Steel Structure and M& E Works; and
iv. Cost Variation due to Resettlement Cost.
96. The adjustments on account of (i) and (ii) above are allowed in the same manner as
at EPC stage up to the date the project is scheduled to achieve COD. The Cost Variation in
Hydraulic Steel Structure and '\I&E Works (item ( iii)) is allowed at EPC stage or alternatively
at COD provided no adjustment is sought at EPC stage. As regards item (iv) above,
variations in resettlement COS L and land costs from those given in the Feasibilin- report are
allowed provided the rnatiai r _tes and variation in them are certified by the concerned
provincial government and ar,;croved by NEPRA.
9-. Feasibility Study of the project has been prepared by the renowned consultants. It is
supported by the relevant d :.ils including unit rates for various activities. The Reference
t'

t

t:

.n :.GIs l : uIIUn ,:a_ been computed

based

on the Lout

estimates provided in the 1=e sibilin report and the assumptions discussed in this Petition.
Tl^e Feasibiun Stn e Reference Iar f initially determined pursuant to th s Petition sha l he
subject to adjustment in accs^rdance with NE- PRA Mechanism for Determination of Tariff
for i I. dropou er Pre c_s Jucussed below- Since no runnel is involved in the proposed
project. no adiustmc'nt would or. required or account of 'Cost Variation due to Geolog"%

'. The adjusnnen:s -,would, therefore, be limited to the following:

I. Civil W orks Cost Escalation;

ii. Cost Variation in Hydraulic Steel Structure and M&E Works; and
in. Cost Variation clue to Resettlement Cost.
98. The adjustment would be sought at E- PC and COD stage substantially in accordance
with the provisions of the specified Mechanism. The methodology- to be used for Civil
\1; orks Cost Escalation is discussed in detail in the following paragraph.

CIVIL WORKS COST ESCALATION
99. Total cost of Civil \\- orks as estimated in the Feasibility report is Rupees 190.93
mullion . The prices of Cis-il \\-orks will be revised/adjusted on the basis of the EIIC
Contract ( s). These will then hc' subject to adjustment due to variation in BOQs based on
detailed design and due to c:,calanon in input costs from time to time . A n item-wise
summary of the BOQs for the Civil W orks is given in -attachment ... Firm quantities for
such items cannot be wobted c, 1; at un feasibility stage. The quantities of the Civil Works

Hf

-inTuels

if r...^+ CmnTrr
7 )-"-.-^
* m r-\ T rx
J>aair ..'r _,:x.?1r^^1, -1l.cx
^t-ri^
^L R (1
nr' 0 POWE

MW I-I._A.NOOLHYDROPOWER PROJECT

TARIFF PETITION

Berns -n in the Feasibility- report and summarized in Attachment are, tln^rc;or:,

r at; >r on finalization of detailed design . The quantities of the respective
rkz rcnr the project uill be determined and finned up at the detailed design stave
i,ract a rid will then be kept constant as per NEPRA Mechanism. F'^f`PI,

d °ra i s along with documents-in-support to NEPRA for revision of th
ale ^eei nriries and costs and the Reference Tariff.
P)ase rates and sources of prices of the escalable input cost items of the C
^f -he project i.e. Steel and Labour as given in the Feasibility- report are as under:

tem

Unit Rate
(Rupees.)

Source

el 120/Kg As per feasibilit truce
lecav-adore - Bulk 4,3 ! m' - do ::^ecavarion - Structural 13 / irE - do -

:1111 'he cost of Civil \Vorks will be subiect to adjustment from time to u
cot, nn,iction for any variation in the base price of the above inputs i.e . Steel. t
_.ab-cur both spilled and unskilled) . etc. in accordance with NEPRA
he revi sed p?lees of th e I n put c ost i tem s 5'_1bleCt to escala^
noeited from time to time by the widely accepted relevant agencies . The esca
.1
be subject to a gr eem ent with th e, EPC contractor.
lee l:^tn. !

COST V ARIATION IN HI-DRO-M ECI-LANNICAL AND EL Ft
-,Qt- IPMENT
The costs of Hv- dro-Mechanical and Electrical equipme_t. including cron e:
it_:ated as 127.59 mullion in the Feasibility report . These costs shall ,
,. r.ient '.cased on the actual prices in the EPC contract (s). FMSPL will requ
r e eccssain adjustment at EPC stage or altcrnauvely at COD provided no adiu_
: t at the EPC stage. F^ISPL will submit necessar details along « dl out
-.ut-,pui to NFPRA for adjusnnent / enhancement of the Feasibilir- Stage Reference
J] 1112M y-ele EPC Stage Reference Tariff.

`,. ICON CREDITS
I vdropower is a clean form of elecrricin -. The Project Mil reduce CO'
nci uld mitigate other pollutants, such as SO2, NOx and particulates
^_.vy`et generanon from fossil fuels. Currently , only projects due to be completed nit
i,eir;' gnstercd for carbon credits . However, carbon credits will be taken into acc(-,.,:.;
ap;-)a: able.

l.r

FROND if_R M1__.(1_9 STRUCTUREE cc POWER (PR.IVATE) LIMITED
GI-IANOOL HYDROPOWER PROJECT

TARIFF PETITION

SUMMARY OF THE PROJECT INFORMATION
Description Data
Rupees 601.70 'Million (US ':
Million)

Total base project cost
Financing stricture
Debt

so"o

Equurv

Construction period
30 months after notice to proceed
Project basis
BOOT
Type of turbine
Single jet Pelton wheel
No. of units
3
Generator rated cap act iv
800 I3TA x 3
Estimated gross plant capacin2.4 Mw
Auxiiian consumption
Net plant capacity 1.45 Mw
Generation voltage
', .3 Volts
Annual gross energy reneratio. 12.66 G\Vh
Average annual plant factor 60.23 "
Feasibility Stage Reference Tariff
Average tariff for years I to 1,')
Avcrasre t2nrr ror yea^-^ i to 21'
^vera_e tariff for years 2I to
erage tan rr for v ea_ s
L.evelhzed tariff over ears a r discount rare
Canacin- Purchase Price for cne-.,,- delivered beyond
12 . 66 G\\'h in any agreement yea

Rupees 12.2-U / KWI-i
Rupees 4.22 - ' L 9 1Rupees 4.22- / K-W1h
Rupees 6.908 / h\V-h
Rupees 9.469 j 1,^Whh
Rupees 0.915 / h-\\-h

VIABILITY OF THE PROTECT
105. Major advantages of 1:i dropo«-er plants are as under:

a) Hydropower plants are economical on long-term basis. No fossil fuel is
required; hence, operanon cost is low. These advantages grow with the passage
of time due to escalanon of fuel cost and detradar;on of heat rate of thermal
plants exisnng in the system. Tanff is thus sustainable on long term basis.
b) These can be quickly synchronized and brought on full load within a fewminutes.
c) These are capable of responding to rapid variations in loads without loss of
efficiency.
d) The plant and associated aril structures have a long life.

OFD

6.99

PO2 i'IF EG_L `_i' 'RU CTL RE ^, Po ^ R (PRIVATE:) _i_.I Xii 1'i
2.4 Mw GTLANOOL HYDROPOWER PROJECT

TARIFF PETITION

1l:oinrenance requirements are lesser as compared to thermal and nuclear p, C
plants.
i
IIizlropower plants are economical than other n-pes in respect of capita;
<,nl load of plant auxiliaries.

n-toreseen outages are less frequent.
it

'.2 hest facihtare thermal plants to operate in the most economical .gay.
ij .anal Fall;'Run- of-River hydropower plants are better suited for T,:_
load duty.
jj By taking fluctuations of all kinds, the hydropower plants improve
overall operational stability and reliabilin - of the system.
k) They reduce energy-related C02 and other gaseous errussior-a ; ._
mitigate climate change ;global warming.

few disadvantages of the hydro power plants include high capital
period, and higher risks during construction besides cn^ uo n-ier
merit issues. 1-4owever. this project involves exceptionally minor resetri rr ei
au,;s capacity of the hydropower plants; being dependant on available o.Tn':
rh; utr a_nd c: nsiderably reduces durinL- dry years. Nevertheless. th b ,

plants outweigh their disadvanta ,ges. In fact. the hydroelecuic ener ,
ode of renewable energy available for utilization.

2 t ^R - Ghanool F-Tvdropo%ver Proiecr at FMSPL has all the advantages
he tar : being sought be the FNISPL is much lower than the p,rese t
:echnoiogy thermal power plants xv th their emissions adversely , ,:7.i,
,, , ,,;;Went. The tariffs of thermal power p lants are based on 60.23``„ ,
nn factor and in case plant utilization is less than 6n .'3`' o. the actual to _ t 1

l:uriher, these tariffs would keep on increasing over time due to
ion and unceasing price of the fuels. The proposed Levelized Revere: ct
« h for the 2.4 !w Hydropower Project at Ghanool will bec,at6T,_
I -)se of the thermal power plants with the passage of time as it will not be a::
1:-P ii:;:rease in the fuel price . It is also environmentally friendly. All the
including the Power Purchaser,. the provincial government and the electricity co111<,-^r.., ,
11nlee°_i reap benefits on cbmpletion of this project . The 2.4 '^hv Hydropower
.:,.tool is, therefore, viable for implementation.
DETERMINATION SOUGHT
The Petitioner requests the N ational Electric Power Regulator- Authora,
Lndlc approve; determine the following:

0 Fi F

FRONT (.- :I MEC
4-4

STRU C TURE & POWER

(P RIVATE ) LIMITED

M' G. ANOOL I-IYDROPOU ER PROJECT
T uc.iFF i F T iTiOii

a. Fe;lsi5ihty Stare Reference Tariff for the 2.4 ivTw Hydropower Project at
Ghanool for period of thirty (30) Agreement Years from d-ie Commercial
Operations D.Ite.
b. Pry ,visions for adjusunent of Reference Tariff for EPC Cost as contracted
and for the Cost Reopeners specibc to hydropower projects; and
^d^usnnent,'indesanon of the Reference Tariff components over the
period of dhiro- (30) Agreement Years and approval of other salient terns
and condition:; of the Power Purchase Agreement.

8.,7

il''

ATTACHMENT - T - 7

FRr..•T E Mrcn

2.4 M W

STRUCTURE

(PR TVATF) T.TMTTFD

GH 4NOOL HS'DROPOWTER PROTECT

LOCATION PLkN

Map Satemte

Mo,t

three
A

how
LAW

Pys

Project Site

A,

1^'.

Fa

^.r•

j•,

Gr.1 JGO^
,tw
JJ
^•W

Lar
r,r %^

FJIitoC

Fmr
.YY

N J

FrI. !.J n

A.:Y

tw.. 1 aAarat,aC
d,J
ANC

B-C

I IInT.'

fawn

4F^Nv
MA7A aW
tj..r•_

Ji.." GAM

: Goopr • r

FRONTIER MEGA STRUCTURE &- PO-\X-ER (PRIVATE ) LIMITED
2.4 MW GHANOOL HYDROPO E R P ROJECT

TARIFF PETITION

ANNUAL ENERGY GENERATION
OF
THE PROJECT BASED ON HISTORICAL HYDROLOGICAL DATA

ATTACHMENT T - 8

TECHNICAL CONSULTANTS

FINANCIAL CONSULTANTS

RL:LZAHMAD & COM?ANY

ATTACHMENT - T - 8

t-FONi1LK IN1LC .^ STRUCTURE {PE I 1, T L1 L

,ITE D

2.4 M . W' GHANOOL HyDROPOWER PROTECT

ANNUAL ENERGY GENERATION BASED ON HISTORICAL H'DROLOGICAL DATE

Month

Available
Discharge
(m3/s)

Water loss to
seepage &
local use

Diverted
Discharge

Power

Energy

tan

0.20 0.04

0.16

400

297.600

Feb

0.35 0.05

0.30

^'^f0

470.400

Mal

1 0 0-15

Apr

1.35 0.15

1.20

2.400

1,728.000

1\1a^

J 1.40 0.15

1.25

2,400

1,785,600

)un

1.05 (1 10

n0

2.4I

1.7.9 COO

lul

0.S0

0.10

0.70

1,600

1,190,400

Aug

1.00

0.10

0.90

2 200

1,636,800

Sep

0.65

0.10

0.55

1,400

1,008,000

Ocr

0.45

0.05

0.40

650

483,600

Nov

0.30

0.04 I

0.26

400

288,000

Dec

0.1 S

0.04

0.14

350

260,400

Mean

0.74

. 0. 09

0.66

1,441 .67

12,662,400

Annual Plant Factor (%)

i 1.i0

T

=. i_lil 1,-85,6100

60.23

FRONTIER MEGA STRUCTURE & POWER (PRIVATE) LIMITED
2.4 MW GHANOOL HYDROPOWER PROJECT
TARIFF PETITION

PROPOSED ACTIVITY SCHEDULE

ATTACHMENT T - 9

TECHNICAL CONSULTANTS

FINANCIAL CONSULTANTS

RIAZ AHMAD & COMPANY
Cnartereo Accountants

RENCON

U90

N' 1A
P;- iP.`•61111.9

FRONTIER MEGA STRUCTURE & POWER (PRIVATE ) LIMITED
2.4 MW GHANOOL HYDROPOWER PROJECT
TARIFF PETITION

ESTIMATED PROJECT COST
As PER FEASIBILITY REPORT

ATTACHMENT T - 10

FINANCIAL CONSULTANTS

TECHNICAL CONSULTANTS

RIAZ AHMAD & COMPANY
Chartered Accountants

RENCON

U9''•

V, ',I A11cGn_

ATTACHMENT - T - 10
FRONTIER MEGA STRUCTURE & POWER (PRIVATE) LIMITED
4 n^. C11'. QOLHDROPO.1 ER PRn!F.CT

ESTIMATED COST AS PER FEASIBILITY REPORT

PROJECT COST AND SOURCE OF FINANCE
Rupees in Million
27.89

Freehold land
Building and Civil works
Diversion weir

3.01

Approach Channel

6.01

Penstock anchors & Supp;
kisin

Pcnstfwk l)il)cs (111,111 1,111d
"past c\Vay)
I)^ccr 11(nlsc

(;lilracc
^Iisccllanc( ^ us l)rc ^ tccli()n

Total BOQs
Unit Rate (Its.)

Total amount

0
(I

O

I40O

15.35 G5.7`1l
3.5 7.N20
O 15.535

(I -(^ -

O -225 --

t)

31735(1

6.35

4-I.432

4O(IO

1500
'O

4.5

2(.018

3.226

--

44137
423

18.669

11485

2523

3351

i.u1U

15.31

452.25

4000

322800
120

705

8645

12595

4500

285

8.096

21 .811

42 .205

2.035

--- 1.14

38.736

30
30 190.932

ATTACI-I111ENT - T - 11
FRON'rII, lt MEGA STRUCTURE (PRIVA'T'E) LIMITED
2.4 MW Gi IANOOL HYDROPOWE 3 R PROJEICr
ConIPONEN'r - WISE BILL OP QUANTITIES AS PER FEASIBILITY REPORT

Brcak-Up of E / 111 Cost
C& F

Dut y

T ill,

Erection

Cost/unit

Unit

'T'otal

I nLc1 ^ ;l1 c

u.765

Op I'R

( I) 18

(6

(1. 88(1

3 .( )()n

(,','!

I'cltlln turl )inc

').51)11

(1.475

U.1138

(1,(124

10,037

3.()_(1

?U.I i l

2. (, tO

1).13- ^

li.I l l

13,1

3.(1;(2

3.11(11)

210

2.8711

O.I I !

0.1'111

(1.144

3.301

3.000

9.902

').1011

O.47O

04.711

(1.47(1

111,M1(1

3.O 11()

I?.130

3300 \' unit switch I )uarcl

5 -565

().27;1

11,278

(.2711

6.41111

2.11110

1'.1111()

3300/11000 1 NT\';\'I•t-mis(u)rnlcr

4.11110

().2()()

0.200

(1200

'I.61)(1

3.1100

13.(1pl

1.25_

0.2I3

0.213

0.213

4 .R iR

_3.1)0 (1

1 I.(16j

Item

1\.(Il llllic ( ^1,^crnl,r

Spcm- & NI"zIc
\(, Gcncralor

I000 v()IIs sa'itcligcar
IIIN lntcrcunncrli1 ,11
(^11SCCI1aI1C1 , US sl('Cl l

D utie s,

pert C

_

_

_

-__ .__-__ _
11.791

\'1)I'I:C

l eara nces, Inslirallcc

& (a

2.1128

xcs.

3 19.030

1.1952

1.515

, 1500

13.1)97

171.31

FRONTIER MEGA STRUCTURE & POWER (PRIVATE) LIMITED
2.4 MW GHANOOL HYDROPOWER PROJECT

TARIFF PETITION

PROPOSED FEASIBILITY STAGE REFERENCE TARIFF

ATTACHMENT .

T - 12

TECHNICAL CONSULTANTS FINANCLAL CONSULTANTS

RAZ

AH ^tiiAD &• COMPANY
arr .;:ccul:m;

Attachment - T - 12
Fruitier Mega Structure (Private ) Limited
2.41.1'4( Ghauoul H,drupu44ti Project
Feasibilitc Stage Reference Tariff

Year

Water Variable
Charges O&M

Total

Fixed
O&M 'Insunoce Debt Service

. \Vtthhuidlug

KUL during j

ROE
Constructionl I Tax
Rupees / 9"\X'b

Total I Tariff

1 11.150

1)108

(1.319

1 11011

114-5

6.043

)).4599

1.806

('.120

11,952

12.270

2 (1-150

0.108

0.3 11,

1.000

04-5

8.1143

0459

1.806

(.I-1 O

11.952

11.2%)

3 0.150
4 11.150

0.168

(1.318

1.000

8.043

(1459

1.800

12 .2-0

0.319

LODU

6.043

11.459

1.800

11.1-0
11,1%0

11.952

0,168

04-5
0.4-5

11.952

12_2-0

5 11.151)

1)169

0.318

1 000

04-5

8(,43

11499

1.806

11.1740

11.952

12.270

( 0.151)

0.168

1.0011

11.45

6.043

(I 459

1.806

11.1-,0

11.952

12__2"U

0.1510

(.108

0.3
0.318

1 (100

04-5

8.043

11 459

1.806

11.170

11.952

12.210

0.108.

0.318

1 000

114-5

81143

11459

1.8(16

11.1-11

11,9522

12.2-6

11.168

0.318

1.000

04-5

1,,043

0.459

11.318

5.001

(14-5

9.043

0459

0.1'0
0.170

11.952

0.108

1.806
1.8(16

11.952

12. 2-0
12.2-0
4.227

8 11.150

9 0.150
1(1 1 150

.

11 (0150

0.108

'.(318

(If 10

(14-5

-

0.459

1.806

(1.1'11

3.9119

12 (1.151)

0,168

U 318

1,000

04-5

-

0.459

1.800

0.170

3,9(19

4.227

13 0.15(1

0.168

'1,,18

I l t'

04 - 5

-

(1459

1.8(16

0.1-0

3909

4.22 -

14 0.150

(1.108

11.318

1.(100

04-5

-

0.459

1.806

11.1-0

3,909

4.227

15 (1.150

0.108

0.318

1.0..11

0,4-5

• -

1.459

1.806

0.1-0

3.919

4.227

16 . 0.150

(1.168

?) _;19

1'ta11:

('4-5

-

0459

1,806

(11-0

3.909

4.227

1 IL15(1

(1.166

).318.

1 0'19

('4-5

(1499

18(10

1 7 (1

3.91)9

4.22-

i 60,15v

(:.1

1,459

i.816

('.1

390'9

4.

(9 ,,;S1)

ui0h

1,450

1.25(0

(.1-('

3,91)9

0 459

' 1.806

0 , 1 - 1,

1.8u6

0.111

3.909
39119

4 ...
4.-^ ---

'

220 0 151>

0.168

0_3

21 0.150

121,0E

U.-'s

__ 11.15)

('.1 (•8

-r

, 1 li,

---

-

11_;59
f' 451

1.1411(,

11.1 11

2.91"

(1. 1

1' 161,

I1.5(9

(n n'

;; 4-5

-

(459

1.806

01-0

r19.
'
3.9

4.22-

24 0-150

(1.166

('.3(

I 0 n,

1.4-5

-

(1459

1-8(96

111-0

3.9(19

4.- -'-

0 168

('.319

I 1111,

1,.4 5

-

('.459

1.8110

11.1-0

3.9119

4.22-

016E

318

4'

04-5

(1.459

1.806

0.1-0

3.9(19

4.227

1 1 1('

11 4-5

0.459

1.809

11.1-1

3.91)9

4.22_7

-(99

)906

(: l 0

3.9(19

1.459

1.806

(1.171)

3.909

4.227

ROE during
Construction

ROE

Withholding
Tax

Total

T ar iff

0.

26 11.151>
- 015))

0 161,

(.3 (

1.'911

((.15(1

a ton

;1 r

1 u r'

30 (115(1

(!.108

0.318

LOJU

7ou1

Fixed
O& A1

28

4-5

-

-

4.22

a
45

AVERAGE TARIFF
Year

)Xater Vanablr
Char1 es O&M

Insurance Debt Serv ice

Ru p ees / fM'h

(11 to 111

(1,150

(!-108

(,3 18

1.(1!111

0.1-0

11.952

12.2 %0

0.150

0.168

(.319

1!1,01

04-5

(.459
0.459

1.8116

1 11 .20

1.806

11.1-0

3.909

4,z_,-

21 i0 30

11.15(1

11.168

(', 318

0011

II4-5

(459

1.10 06

(I. 1-(1

3.91))

4.2-1-

1 to 30

1.130

((.168

0.319

1.0'41

((4-5

(1.439

1.800

0.1-0

6.590

(,.1)8

Total

Fixed
O &M

ROE

Withholding
Tax

Total

Tariff

1.806

0.170

9.152

9.469

(.043

2.081

LEVELLIZED TARIFF
water Variable
Charges O &M

Itnuranct

Debt
Service

ROE during
Construction

Ru ees 1 hV'b
0.15 0.168 0.318 1.00(1

(.4-5

5.243

(1.459

() 9

FRONTIER MEGA STRUCTURE & POWER (PRIVATE) LIMITED
2.4 MW GHANOOL HYDROPOWER PROJECT
TARIFF PETITION

DEBT SERVICING SCHEDULE

ATTACHMENT T - 13

TECHNICAL CONSULTANTS

FINANCIAL CONSULTANTS

RIAZ AHMAD & COMPANY
Caartereo Accountants

RENCON

jjqq

N'IXIA

Attachment - T - 13

Frontier Mega Structure & Power (Private ) Limited
2.4 MW Ghanool Hydropower project
D

Period
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year 1
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year 2
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year 3
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year 4

Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year 5
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year 6
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year 7
Quarter 1

Principal
481 357
476.653
471.747
466.629
481.357
461.290
455.721
449.911
443 852
461 . 290
437.530
430 937
424 058
416.884
437.530
409 400
401.593
393 449
384.954
' 409 . 400

376 093
366 850
357.208
347 150
376. 093
336.659
325 715
314 299
302.391
336 . 659 '
289.970
277.012
263.496
249.397
289.970
234.690

e bt

sched'..'!

Repayment
4304
4.907
5118
5.339
20 . 067
5.569
5809
6.060
6.321
23 . 759
6.594
6 878
7 1 75
7 484
28 .131
7 807
8 144
8495 '
8 861
33.306

9 243 .
9 642
10.058
10 491
39 . 434
10 944
11 416
1 1 908 .
12 422
46.689
12 957
13.516
14.099
14.707
55 . 279
15.341

e
Balance

Debt Service

476.653
471.747
466.629
461.290
461 . 290
455.721
449.911
443.852
437.530
437.530
430.937
424.058
416.884
409400
409 . 400
401.593
393.449
384.954
376.093

25462
25.462
25.462
25.462
101.849
25.462
25.462
25.462
25.462
101.849
25.462
25.462
25 462
25 462
101.849
25.462
25.462
25.462
25.462

68 . 543

376 . 093

101.849

16.219
15.820
15.405
14.971
62. 415
14.518
14 046
13.554
13.041
. 55 . 160
12.505
11.946
11.363
10.755
46 . 570
10.121

366.850
357.208
347.150
336.659
336.659
325 715
314.299
302.391
289.970
289. 970
277.012
263.496
249.397
234.690
234.690
219.349

25 462
25.462
25.462
25 462
101.849
25 462
25.462
.25462
25.462
101.849
25.462
25 462
25 462
25.462
101.849
25.462

Mark - up
Rupees in Million
20.759
20.556
20.344
20.123
81 .782
19.893
19.653
19.402
19.141
78 . 090
18.868
18.584
18.288
17.978
73. 718
17.655
17.319
16,967
16.601

Quarter 2

219 349

16.003

9.459

203.346

25.462

Quarter 3
Quarter 4
Year 8
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year 9
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year 10

203.346
186.653
234 . 690
169.240
151.076
132.129
112 365
169.240
91.749
70.243
47.810
24.410
91 .749

16693
17 413
65 . 450
18.164
18 947
19.764
20.617
77. 492
21.506
22 433
23 400
24 410
91 . 749

8.769
8.049
36 . 399
7.298
6 515
5.698
4.846
24 . 357
3.957
3.029
.
2062
1.053
10. 100

186.653
169.240
169 . 240
151.076
132.129
112.365
91.749
91.749
70.243
47.810
24.410
0.000
0 . 000

25.462
25.462
101.849
25.462
25.462
25.462
25.462
101.849
25 462
25.462
25462
25.462
101.849

1. 0 ,-,1

-11^' . P^' ^'< q
1

bb-

NATIONAL ELECTRIC 11 01VE11
REGULATORY AUTHORITY
NOTICE OF ADMISSION / PUBLIC HEARING
PETITIO N FOR DET RUINATION OF GENERATION TARIFF FOR 2 .4 MW GHANOOL HYDROPOWER PROJECT TO BE SETUP BY FRONTIER
MEGA STRUCTURE A POWER (PVT.) LIMITED (FMSPL) AT GHANOOL NALA , BALAKOT, KHYBER Pl1KHTUNKHWA
I

i

N stakeholders . inleresledrafected persons and tie general pcbk are hereby notified that the Authority (NEPRA) has admitted the tariff petition filed
by FRONTIER MEGA STRUCTURE & POWER (PVT.) LIIIlTED (FMSPL) for consideration. .
1. The applicant has requested for determination of feasibility stage reference tariff for the 2.4 MW hydropower plant to be set up at Ghanool Nala,
Balakol, Khyber Pukhtunkhwa , Pakistan on build, own, operate and transfer (BOOT) Oasis, The project, on completion, is expected to annually
generate 12.66 GWh gross energy at 60.22 % average annual plant capacity factor.
2. The petitioner has proposed a total project cost of USS 6.9965 million (Rs 601 70 million) with the proposed debt equity structure d 8020.
3. The proposed reference tariff is typical two pad tariff comprising an Energy Purchase Pricy (EPP) for the energy generated and delivered to the
power purchaser and a Capacity Purchase Price (CPP).
4. The reference tariff proposed for be propel has been based on 19% return on equity (IRR based).
5. The petitioner has assumed that all lerdng for the project will be arranged locally for a tenure of 10 years plus 30 months grace period at
interest rate of KIBOR plus 3%.
6. Construction period o(30 months has been assumed.
7. The summary of the proposed tariff is as under.
Tariff Component

Total Tariff
C41 11111111M.
'PKR/kWh
12 270
14.267
4 .227 .
4.915
.9011
8.033
4
11. 10

Average tariff 1.10 ym)
Aver lard 11-30 years)
Aver tarn 1-30 yms)
Levehzed tW over A term (30 yean) at 10% discount rate
•PKRN•US$I
8. The breakup of protect cast provided by to petitioner is given hereunder

EstImated cost
(PKR Milian)
27.89
190.93

Description
Freehold Lib
(l crvi works

Estimated cat
(USS Million)
0.3243

a

uerwavori

Tome, Part arias. Insurance, Transportation
Other Noll-EIRC C'011118

e
rerrcaM charves
Canlargonew
T OW Plow rest jeffk"

22201

.144
- T V3
1000
1 0.11183
03750
13.50
.1
0.2593

)•
133.48

Pre0d Cost

9. The Authority has decided to hold public hearing of the petition on the date , time and venue mentioned below:
Date: . Wednesday, 19th October, 2011 ,

Titre: • 10:30 amts.
NEPRA, Main Office, 2nd Floor, OPF Building, Sector 6-5/2, Islamabad, Pakistan
Venue:
10.You may participate in to proceedings a(#* tariff setting process in the following manner:
Any person at party, who intends to participate in the proceedngs, may deliver in ft Registrar a statement of comments alongwith evidence
(d any). Comments should reach the office of Me Registrar NEPRA within 7 days of publication of This notice . In case any person intends to
participate is a party in the proceedings he may file an Intenentn Request , for leave to intervene describing the manner in which such person
is likely to be affected by the deterrrinabon in the proceedings and present his argument for or against the petition along with a summary of
evidence I any to support his ass.

11. Copies of the totbwing documents, if desired. can be obtained on payment from the olfia of Registrar NEPRA:
Rs. 1321- per copy
Copy of Petition
KS. 2201Intervention Request Fee
I

Photocopy of NEPRA Act
NEPRA Tariff Rules
Any other information
All communications should be addressed to:

Re. 30fRe. 30I-

Rs. 31- per page

Registrar NEPRA
2nd Floor, OPF Building , Shahrah-.Jamhuriat, 0-512, Islamabad, Pakistan,
Ph: 051 -920 7200 Fax : 051-92102115, e-mail. office@nepra.org.pk
For further information and to download the tariff petition please visit our website . www.nepra.org pk

IV

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---

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