Preparation of Due Diligence Assessment Report of Likhu 2 Hydroelectric Project

Preparation of Due Diligence Assessment Report of Likhu 2 Hydroelectric Project

Project: Likhu 2 Hydroelectric Project

Assignment: Preparation of Due Diligence Assessment Report of Likhu 2 Hydroelectric Project

Location: Ramechhap and Solukhumbu District

Client: ITECO Nepal

Duration:  January 2021 to February 2021

Project Description: The proposed Likhu 2 HEP is envisaged as a run-of-the-river type project with 33.4 MW installed capacity. The layout of the project draws a discharge of 16.54 m3/s. The Client wishes to develop 55 MW installed capacity by adding additional unit to the project. The plant will withdraw the overall discharge of 26.4 m3/sec and will have 247 m of gross head to generate 55MW.

Scope of Services:

1. Review of studies including hydrology, geology of the project area in the available reports for 21.6 MW;
2. Review of the project layout, design and project component design parameters for 55 MW (including 21.6 MW). Highlight the                change in parameter of the project for additional capacity of the project;
3. Review of cost bifurcation of 55 MW between 33.4 MW & 21.6 MW as per revised design. Report shall include the increase in                   project cost due to revision of design;
4. Review of the project cost estimates for 21.60 MW including cost overrun;
5. Review installed capacity and annual energy estimates;
6. Brief assessment of risk factors in the project particularly for 21.60 MW and combined 55 MW;
7. Review and independent calculation of financial assumptions adopted and financial analysis for entire 55 MW project and for the        individual 33 MW and 21.6 MW components. Analysis to be done at 75:25, and 80:20 debt equity ratio. Sensitivity analysis in case        of both cost and energy to be done in both the cases; and
8. Prepare due diligence appraisal report.