Asianet Services Upper Marsyangdi A Hydroelectric Project

Transcription

1 Asianet Services Upper Marsyangdi A Hydroelectric Project

2 Upper Marsyangdi A (UM-0) Hydroelectric Project Nepal Project Idea Note (PIN) Page 1 of 6

3 PROJECT DESCRIPTION, TYPE, LOCATION AND SCHEDULE OBJECTIVE OF THE PROJECT Upper Marsyangdi A is a Run of River Hydro project located in Bhulbhule VDC in the Lamjung District of Nepal. This is in the Central Zone. The objective is to harness the waters of the Himalayas and generate electricity. PROJECT DESCRIPTION AND PROPOSED ACTIVITIES The project is a cascade scheme in the upper reaches of the Marsyangdi River. In order to achieve the objectives outlined above, civil works, including a power house, water release structure, diversion works and the corresponding hydromechanical and electrical equipment will need to be provided This will be a BOT project in which the Project Contractor is also the Project Owner and Operator TECHNOLOGY TO BE EMPLOYED The main components of the project include; Concrete Gravity Diversion Weir with Uncontrolled Spillway Length of Weir 97m Height of Weir 37.5m from foundations Spillway uncontrolled ogee share Length of diversion tunnel 214m Modified horseshow design : 6.0m concrete lined Cofferdams rockfill with impervious core Outdoor Switchyard 132kV transmission line 20km in length Installed Capacity 50MW Page 2 of 6

4 TYPE OF PROJECT Greenhouse gases targeted CO 2 /CH 4 /N 2 O/HFCs/PFCs/SF Type of activities LOCATION OF THE PROJECT Country City Brief description of the location of the project Power generation with minimal CO2 emissions as an alternative to coal or diesel Co2 Abatement Nepal Bhulbhule Nepal lies on the top of the highest mountain ranges of the Himalaya, extending between the Tibetan Plateau and China in the North, and India in the South. Nepal s indigenous energy resource is hydropower and all other forms of energy are based on imported fossil fuel. PROJECT PARTICIPANT Name of the Project Participant Sinohydro Corporation Ltd. Role of the Project Participant a. Project Operator b. Owner of the emission reductions c. Seller of the emission reductions d. Project investor Organizational category a. Private company Contact person Philip Britton (Appointed Representative) CDM Consultant Address Asianet Services 15 th Floor, M. Thai Tower, All Seasons Place, 87 Wireless Road, Bangkok Thailand Telephone/Fax and web address, if any philip@airbservices.com Main activities Sinohydro Corporation is a construction company and an equity partner in this project. Full details can be found at The company has extensive experience in the construction of hydro-electric projects around the world. Page 3 of 6

5 EXPECTED SCHEDULE Earliest project start date July 2008 Estimate of time required before becoming operational after approval of the PIN Expected first year of CER/ERU/VERs delivery Project lifetime Number of years For CDM projects: Expected Crediting Period Time required for construction: 48 months Years Ten Years Fixed Current status or phase of the project Current status of acceptance of the Host Country MOU has been signed between Sinohydro Corporation and the Government of Nepal. The Power Purchase Agreement and the Concession Agreement will be signed within a matter of weeks. The host country has enthusiastically accepted the project. The position of the Host Country with regard to the Kyoto Protocol Has the Host Country ratified/acceded to the Kyoto Protocol? NO / YES, YEAR Has the Host Country established a CDM Designated National Authority / JI Designated Focal Point? NO / YES, YEAR Page 4 of 6

6 METHODOLOGY AND ADDITIONALITY ESTIMATE OF GREENHOUSE GASES ABATED/ CO 2 SEQUESTERED BASELINE SCENARIO Annual (if varies annually, provide schedule): 400,000 tco 2 -equivalent Up to and including 2012: 0 tco 2 -equivalent Up to a period of 10 years: 4,000,000 tco 2 -equivalent Following years of political instability and Maoist insurgencies, the tiny Himalayan kingdom of Nepal now has a great opportunity to secure peace and prosperity. The recent elections have been regarded as free and fair, and the new government s priority is not to modernize the country and bring peace, aswell as prosperity, to its people. The total CO2 emissions from the combustion of fossil fuels amounted to 1,465 Gg in 1994/95. As the largest consumer of fossil fuels, transport sector emitted the largest share of CO2 (31 %) followed by the industrial and the residential sectors (22 % each). When combined, these three sectors emitted more than 75 percent of CO2 emissions. One of Nepal s major export markets is India, and the Upper Marsyangdi project will produce electricity for both the growing domestic demand and export demand. ADDITIONALITY The country needs electricity and there are no restrictions on emissions. Nepal is not a wealthy country and the price of electricity is strictly controlled by the government and the lack of wealth in the population. Initial cost estimates and margins were very low, and the weakness of the dollar have seriously impacted the viability of this project. The political risk particularly the potential lack of hard currency is a major risk. SECTOR BACKGROUND Full permissions and agreements (PPA and CA) have been secured from the Nepalese Government. There is no preferential treatment for the project. A. FINANCE TOTAL CAPITAL COST ESTIMATE (PRE-OPERATIONAL) Development costs US$ million (Feasibility studies, resource studies, etc.) Installed costs 140 US$ million (Property plant, equipment, etc.) Land US$ million Other costs (please specify) US$ million (Legal, consulting, etc.) Total project costs 140 US$ million SOURCES OF FINANCE TO BE SOUGHT OR ALREADY IDENTIFIED Page 5 of 6

7 Equity Name of the organizations, status of financing agreements and finance (in US$ million) Debt Long-term Name of the organizations, status of financing agreements and finance (in US$ million) Debt Short term Name of the organizations, status of financing agreements and finance (in US$ million) Financial Analysis Sinohydro Corporation 30% As Attached B. EXPECTED ENVIRONMENTAL AND SOCIAL BENEFITS Please see the attached Environmental Impact Assessment Report Page 6 of 6