Suki Kinari Hydropower Project Feasibility Study Report Financial Analysis

SUKI KINARI HYDROPOWER PROJECT
FEASIBILITY STUDY REPORT
CHAPTER13
FINANCIAL ANALYSIS
FEASIBILITY STUDY REPORTChapter 13 Financial Analysis
Table of Contents
CHAPTER 13 FINANCIAL ANALYSIS ............................................................. 1
13.1 PROJECT INTRODUCTION ....................................................................................................... 1

13.1.1 General ..................................................................................................................... 1
13.1.2 References ............................................................................................................... 1
13.2 TARIFF STRUCTURE ............................................................................................................... 2
13.3 BASIC ASSUMPTION FOR FINANCIAL EVALUATION ................................................................ 3
13.4 FINANCIAL EVALUATION ........................................................................................................ 5
13.4.1 Scheduling ................................................................................................................ 5
13.4.2 Project Investment and Fund Raising .................................................................. 5
13.4.3 Estimate of Operation Cost.................................................................................... 7
13.4.4 Benefit of Energy Production ................................................................................. 8
13.4.5 Tariff Analysis Results ............................................................................................. 9
13.4.6 Finance Analysis.................................................................................................... 10
13.4.7 Financial Analysis Indices .................................................................................... 12
13.5 SENSITIVITY ANALYSIS ........................................................................................................ 12
13.6 CONCLUSION ....................................................................................................................... 13
I
Chapter 13 Financial Analysis

13.1 Project Introduction
13.1.1 General
SukiKinari Hydropower Project is built in Kaghan valley in Kunhar River basin in

the east of Khyber Pakhtunkhwa Province. The project primarily consists of
asphalt concrete faced rock fill dam (54.5m high above riverbed), left and right
spillways, power intake and desander, long headrace tunnel, powerhouse, etc.
The station houses 4 sets of impulse turbine generator units, making use of
gross water head of 910.85m. The plant has a total installed capacity of
873.508MW, capable of generating 3081GW·h of energy per year. The Project is
scheduled to be completed within 72 month. Power generation in the 7th year
and later is 3081GW•h.
13.1.2 References
Economic evaluation of SukiKinari Hydropower Project shall be compiled in

accordance with the national and relevant laws, regulations, and
specifications.Selection of essential data such as tariff, tax rate,O&M cost, price
inflation, etc. shall follow the laws, regulations, rules and guidelines issued by
the government of Pakistan for the private investment projects and the IPP
projects.References for economic evaluation are as below:
(1) Pakistan power generation policy, 2002;
(2) Pakistan IPPs tariff guidelines;
(3) Tariff determination mechanism for hydropower project by Pakistan

SERC;
(4) Temporary power procurement procedures and standards by

PakistanSERC, 2005.
(5) Determination of the Authority in the matter of Tariff Petition filed by S.K,
Hydro (Private) Ltd. for Determination of Generation Tariff in respect of
870.25 MW SukiKinari Hydropower Project [Case
#NEPRA/TRF-232/SKHPL-2013](hereinafter referred to as EPC Tariff
Determination Letter)
The calculation period of the financial analysis is 36 years, including 6 years of
13-1
construction and 30 years of operation.
13.2 Tariff Structure
According to Pakistan power generation policy 2002 and IPPs tariff guideline,
the tariff structure in Pakistan is as below:
Tariff = capacity price + energy price
According to Pakistan power generation policy, 2002, it is stipulated in

sub-clause 6.3.2 Capacity price and energy price that:
56. Bidders will be asked to quote their tariff in two parts: (1) Energy Purchase
Price (EPP) and (2) Capacity Purchase Price (CPP).
57. The RFP may specify a maximum percentage of the overall tariff for the
capacity component. The CPP in case of hydel projects, which traditionally have a
relatively low EPP, will be approximately 60% to 66% and the EPP will be
approximately 40% to 34% of the levelized tariff.
58. The CPP will be expressed in Rs/kW/month; the EPP in Rs/kWh.
59. The CPP will be paid provided the plant is available for despatch to
standards defined in the PPA. The EPP will be paid based upon the amount of
kWh of energy despatched.
60. In order to ensure sustained interest of the Sponsor during the entire life of
the project, the sum of EPP and non-debt related CPP (computed on a kWh basis
at the reference plant factor specified in the RFP) will remain constant or increase
over time. The debt-related CPP stream may match the loan repayment stream.
If the power output meets the standard of power purchase agreement, it will pay
capacity price; electricity price will be based on the distributed kilowatt hours. At
the same time, it clearly stipulatesthat: in order to ensure the interests of
investors during the life of project, the sum of energy price and capacity price
(capacity priceis calculated on the kilowatt hour basis in the plant utilization rate
specified in the tender document,) will remain unchanged or increasewith time.
And debt related capacity price process shall match with the loan
repaymentprocess.
13-2
In Pakistan's electricity system, the capacity price and energy price are
decomposed into several components (see Table 13.2-1) to review and
determine the rationality of electricityprice and price adjustment formula. It is
defined in the EPC tariff determination letter that the capacity price is composed
of fixed O&M cost, insurance, debt serving cost, return on capital and return on
capital in construction period, with the unit of RS/kW/month; energy price is
composed of variable O&M cost and water resources fee, with the unit of
RS/kwh. It can be seen from the EPC tariff determination letterthat energy price
is only the operation cost for paying the new power, and capacity price
undertakesthe fixed O&M cost, insurance, debt serving cost, return on capital
and return on capital in construction period,therefore, if the power supply
capacity required by the agreement can be reached is crucial to the project's
financial income.
Comparison of capacity price and energy price is shown in Table 13.2-1.
Table 13.2-1Comparison of capacity price and energy price

Capacity price Energy price
Unit Rs/kW/month Rs/kWh
Base number Net capacity (contract capacity) Actual on-grid energy
Fixed O&M cost VariableO&M cost
Insurance Water resources fee
Debt serving cost ……
Return on capital
Composition
Return on capital in
construction period
Transfer payment
……
Since hydropower is a kind of clean energy, according to relevant policy in

Pakistan, the capacity price of hydropower projectaccounts for over 90% of the
base price.
The principle of tariff determination in Pakistan is “cost + return", namely, under

the condition of ensuring the investors can recover reasonable construction cost
and operation cost, the investors are allowed to obtain 17% of capital return rate.
13.3 Basic Assumption for Financial Evaluation
The financial evaluation is based on the EPC tariff determination letter on March
28, 2014 and the basic hypothesis of bank negotiation. It carries on the appraisal
13-3
to the project from the financial perspective. The basic hypothesis of the financial
evaluation and EPC approved price is shown in the table below.
Table 13.3-1Basic hypothesis of financial evaluation and price calculation results

Hypothesis for EPC
Hypothesis Hypothesis for calculation
approved price
Basic conditions of power station
Total installed capacity (MW) 873.508 (218.377MW x 4) 870.25 (217.56MW x 4)
Utilization coefficient of
0.99 1.0
effective power
Station service power
0.4% 1%
coefficient
Power in operation period
3.081 billion 3.081 billion
(kWh)
Effective power in operation
3.038 billion 3.05bllion
period (kWh)
Construction period (years) 6 6
Power purchase agreement
30 30
period (years)
Exchange rate (US$: Rs.) 1:97.4 1:97.4
Rate of return on equity 17% 17%
Pakistan CPI 183.58 183.58
America CPI 233.596 233.596
Average value of 15 years 6 month LIBOR,
LIBOR
is 2.4% i.e.0.41326%
Loan arrangement CGGC CGGC
CGGC ownership proportion 20% 20%
EPC cost (104 USD) 131430 131430
-EPC cost (excluding tariff) 130115 130115
-Tariff 1315 1315
Cost except EPC 14088 14088
Amount of loan (excluding
Management overhead
Financing cost rate interest during construction
1%, commitment fee 0.5%
and financial costs) 3%
Insurance premium rate
7% 0
of overseas investment
Financing hypothesis
Debt / capital ratio 75:25 75:25
Margin 410 450
Term of loan (including the
18 18
construction period)
Miscellaneous
O&M costs (104 USD) 2400 2396
Composite depreciation rate 3.3% 3.3%
Taxation No No
Levelized price in operation
8.8145(EPC approved 8.8145(EPC approved
period (excluding dividends tax)
price) price)
(USC/kWh)
13-4
13.4Financial evaluation
13.4.1 Scheduling
The total construction period of SukiKinari Hydropower Station is 72 months.

The energy on the market is calculated as the designed energy production
timesplant factor and then minus station service power consumption and
transmission power loss. Now the plant factor is taken as 0.99; the plant service
power is assumed to account for 0.4% of total energy production; and the
transmission power loss is not considered in this report. The commissioning of
the station is scheduled in Table 13.4-1.
Table 13.4-1Commissioning Schedule of Station
Item Year 1 to Year 6 Year 7 and after
Installed capacity (MW) 0 873.508
Energy production (GW·h) 0 3081
Available energy (GW·h) 0 3050
Energy on the market (GW·h) 0 3038
Note: plant factor at 0.99, service power ratio at 0.4%.
13.4.2 Project Investment and Fund Raising
(1) Construction investment
The construction investment of the project is 1.45518 billion USD (not covering
power transmission); and the cost within the EPC contract is 1314.30 million
USD.
(2) Interest during construction
According to the negotiation with the bank, the proportion of debt capital
and capital is 75:25. In the debt capital, the EPC insurance premium and
insurance premium of overseas investment are financed in 85%, and loan
interest beyond the debt capital is paid by capital. The loan interest rate is the
sum of LIBOR and margin after interest adjustment, here, the average value 2.4%
of 6 month LIBOR of 15 years is used as the LIBOR after interest adjustment.
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According to the banks, the margin istaken as 4.1%, and loan interest rate is
6.5%. It is estimated that the interest during construction is308.04 million USD
and debt capital is 1.47177 billion USD.
(3) Financing cost
The financing cost includes management overhead and commitment fee, which
accounts for 1% and 0.5% of the loan respectively. Thus the management
overhead is 14.72 million USD, and the commitment fee is 36.97 million USD,
which make the total financing cost at 51.69 million USD.
(4) Insurance premium
According to the "EPC tariff determination letter", the EPC approved price does
not include the overseas insurance premiums, but according to the Pakistan
price policy, the tariff can be adjusted at COD stage according to the actual
insurance premium. Overseas insurance premium is considered in this
calculation, the overseas insurance premium takes the sum of principal and
interest of the loan in construction period and loan interest in operation period as
basis, the premium rate is 7% which is one-time payment in the first year of
operation period. The overseas investment insurance premium during
construction is 146.04 million USD.
(5) Working capital
The working capital is calculated to be 1.63 USD/kW times the installed capacity
of the station, i.e. 1.42 million USD. It is considered that all the working capital is
accounted as capital.
(6) Total investment
After accounting interest during construction and financing cost, the total
investment of SukiKinari Hydropower Project is 1.96236 billion USD (including
working capital), as detailed in Table 13.4-2.
Table 13.4-2 Total Project Investment and Fund Raising Plan
In: 104 USD
Construction period
Year
SN Total
Item
1 2 3 4 5 6
1 Total investment 196236 47953 21834 37670 35057 23542 30179
13-6
1.1 Construction investment 145518 29161 18018 32669 28570 15842 21257
Interest during
1.2 30804 1544 2826 4264 6018 7429 8723
construction period
1.3 Working capital 142 0 0 0 0 0 142
1.4 Management overhead 1472 1472 0 0 0 0 0
1.5 Commitment fee 3697 1172 990 737 469 271 57
Insurance premium
1.6 14604 14604 0 0 0 0 0
of overseas investment
2 Fund raising 196236 47953 21834 37670 35057 23542 30179
2.1 Project capital 49059 11988 5458 9418 8764 5886 7545
2.1.1 Equity 33803 6774 4185 7589 6637 3680 4938
Paid for construction

2.1.2 7359 4835 990 737 469 271 57
investment
Paid for working capital and

2.1.3 7755 380 283 1092 1658 1935 2408
insurance premium
Paid for interest during

2.1.4 142 0 0 0 0 0 142
construction period
2.2 Debt 147177 35965 16375 28253 26293 17657 22634
Paid for construction

2.2.1 111715 22387 13833 25080 21934 12162 16319
investment
Paid for interest during

2.2.2 23049 1164 2543 3172 4359 5495 6315
construction period
2.2.3 Paid for working capital 12413 12413 0 0 0 0 0
2.3 Other capital 0 0 0 0 0 0 0
13.4.3 Estimate of Operation Cost
(1) Operation cost
According to the EPC Tariff Determination Letter, the approved annual

maintenance cost is 23.96 million USD, accounting for 1.4% of the total cost of
the Project. In this calculation, the maintenance cost is rounded and taken as 24
million USD, in which 80% is fixed operation costs and 20% is variable operation
costs; namely, the fixed and variable operation costs are 19.2 million and 4.8
million USD respectively. In fixed operation cost, the ratio between foreign
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currency and local currency is 45% to 55%. In variable operation cost, the ratio
between foreign currency and local currency is 20% to 80%.
(2) Insurance premium
According to the EPC Tariff Determination Letter, the insurance premium during
project operation is taken as 1.35% of EPC investment, i.e. 17.74 million USD
per year.
(3) Water usage cost
According to Pakistan power generation policy 2002, the water usage cost is
charged at the rate of 0.15 Rs/kWh (i.e. 0.00154 USD/kWh). Thus the water
usage cost is calculated to be 4.68 million USD per year.
(4) Interest payment
In this calculation, the term of loan is taken as 18 years, including 6 years of

grace period and 12 years of repayment years. The interest rate of USD loan is
6.5%, and the repayment method is equal principal plus interest. The loan is
paid with depreciation cost and interest cost accounted in the project cost
estimate. If not sufficient, the non-distributed profit will be used to repay the loan.
13.4.4 Benefit of Energy Production
(1) Revenue of power generation
Revenue = electricity sold × selling price
The energy sold is calculated as the available energy minus station service
power consumption. Now the plant factor is taken as 0.99; the plant service
power is assumed to account for 0.4% of total energy production.
(2) Tax
According to the Pakistan power generation policy 2002, the government of

Pakistan established the following tax preferential policies:
(1) Exempt from sales tax for facilities, machinery and equipment for power
generation.
(2) Exempt from income tax, including business tax and withholding tax on
imported products.
(3) Duty for imported equipment is 5%.
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The only tax that is not exempted is shareholder dividend tax, because the
dividend amount is uncertain, the government of Pakistan stipulates that 7.5%
capital gains are taken in advance as the withholding tax, but the dividend
withholding tax is used as "transfer payment" to amortize into the capacity price,
and return to the power producers by the purchaser in 12 months.
As mentioned above, the annual sales tax of the project is zero.
(3) Profit
Profit before tax = power generation revenue - total cost;
After-tax profit = profit before tax
13.4.5Tariff Analysis Results
According to the EPC Tariff Determination Letter, the EPC price approved by the
government of Pakistan is 8.8145 US￠/kWh. According to power policy in
Pakistan, the price could be adjusted in the light of the actual investment
happening during COD. In this calculation, the price approved EPC electricity
price is used. According to above mentioned investment estimate and the total
cost estimate, the financial indices, and tariff during and after loan payment are
calculated. It’s calculated, in case dividend withholding tax is not considered, the
tariff in loan payment period is 10.3697US ￠ /kWh, after loan payment is
4.7595US￠/kWh, and the levelized tariff during operation is 8.8145US￠/kWh;
in case the dividend withholding tax is considered, the tariff in loan payment
period is10.5921US￠/kWh, after loan payment is 5.0019US￠/kWh, and the
levelized tariff during operation is 9.00424US￠/kWh. The analysis of power tariff
of SukiKinari HPP is shown in Table 13.4-3.
Table 13.4-3 Tariff analysis of SukiKanari HPP

Loan repayment After loan
Tariff structure period repayment period
Year 1- year 12 Year 13- year 30
Capacity price CPP（US￠/kW/M）
①fixed O&M cost (local currency) 100.7432 100.7432
②fixed O&M cost (foreign currency) 82.4263 82.4263
③insurance premium 169.2697 169.2697
④overseas investment insurance
0.0000 0.0000
premium
⑤repay capital with interest 1703.1199 0.0000
⑥return on capital ROE 600.5490 677.6898
⑦return on capital during construction 258.8806 258.8806
13-9
ROEDC
⑧dividend withholding tax 64.4572 70.2428
Energy price EPP（US￠/kWh）
①variable O&M cost (local currency) 0.1264 0.1264
② variable O&M cost (foreign
0.0316 0.0316
currency)
③water resources fee 0.1540 0.1540
Reference tariff CPP+EPP （ US ￠
/kWh）
①excluding dividend withholding tax 10.3697 4.7595
②includingdividend withholding tax 10.5921 5.0019
8.8145（excluding dividend withholding tax）
Levelized tariff
9.0424（including dividend withholding tax）
13.4.6Finance Analysis
(1) Profitability Analysis
The Project has an independent financial accounting. The revenue of power

generation is the energy sold times the selling price of electricity. The electricity
price in loan repayment period is 10.3679US ￠ /kWh, and that after loan
payment is 4.7595US￠/kWh; the total revenue in the entire calculating period is
6.38306 billion USD.
Profits and profits distribution are shown in Annexed Table 3. It can be seen from
the table that after the station is put into operation, the total annual net profits in
the loan repayment period is between 186.7 million USD and 1000.73 million
USD, and the total annual net profits after the loan repayment period is 24.61
million USD.
The financial indices of the Project are:
①FIRR of total investment is 11.05%.
②FIRR of equity is 12.83%.
③Financial net present value of project cost is 104.71 million USD (Ic=10%).
④Dynamic investment recovery period is 20.7 years (including 6 years of

construction period, benchmark financial return rate is 10%).
Project investment and capital cash flow are shown in annexed Table 1 and
Table 2.
(2) Solvency Analysis
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①Funds for loan repayment
The funds for loan repayment include profits before tax of the year, balance of
undistributed profit of the previous year, and depreciation. In the loan repayment
period, it shall firstly repay the loan, and then consider dividends according to
the repayment conditions. In the beginning of operation with heavy loan
repayment pressure, dividend shall be moderately given to guarantee that there
is always undistributed profit carried forward to next year as the source of
repayment funds.
②Debt service calculation
For the project, 75% of the total investment is bank loan, 25% of the total
investment is equity, with annual interest rate of 6.5%. The loan repayment
period is 18 years (accounting from the date of the first loan), including 6 years
of grace period and 12 years of repayment period. The loan will be repaid once
half a year on the basis of equal principal plus interest. During the loan
repayment period, the interest coverage ratio (ICR) is 2.15 – 24.37; the debt
service coverage ratio (DSCR) is 1.50. The project is highly solvent.
The debt service calculation results are shown in Annexed Table 6 Loan
repayment schedule.
The asset-liability ratio of the project during construction is 75%. As the project
puts into operation, repayment plan will be implemented year by year, and the
asset-liability ratio will decrease gradually in the range of 70.1%-0%. Therefore,
the project is highly solvent.
Balance sheet is shown in Annexed Table 5.
(3) Financial Viability Analysis
It is shown from the cash flow statement that there is sufficient net cash flow
each year for operating activities of the project which can ensure normal
operation of the power station; since the net cash flow of each year’s operating
activities, investment activities and financing activities is positive, it indicates that
the cash flow of each year is in good state.
In the operation period of the project, the accumulated surplus funds of all years
are positive, it indicates that the project does not need to repay loans by
short-term borrowings, its financial conditions have sustainability, and the
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financial viability meets with the requirements.
13.4.7 Financial Analysis Indices
Summary of financial analysis indices are shown in Table 13.4-4.

Table 13.4-4Summary of Financial Analysis Indices
Items Unit Index Remarks
Construction investment 104 USD 145518
Commitment fee and
104 USD 5169
management cost
Insurance premium 104 USD 14604
Interest during
104 USD 30804
construction
Working capital in
104 USD 142
commissioning period
Including working
Total investment of the
104 USD 196236 capital in the
project
commissioning period
Tariff in operation period
(not including dividend USC/kW·h 8.8145
withholding tax)
Investment per kilowatt USD/kW 2247
Unit energy investment USD/kW·h 0.6459
FIRR of total investment % 11.05
FIRR of equity % 12.83
Investment recovery
year 20.7
period
13.5Sensitivity Analysis
The following scenarios are proposed for financial sensitivity analysis:
 Construction investment increase by 10%
 Construction investment decrease by 10%
 Change of interest rate
According to the power policy in Pakistan, the tariff consists of two components,
i.e. capacity price component and energy price component; and the capacity
price component could account for as much as over 90% of the benchmark tariff.
As long as the station reaches the output provided in the PPA, the capacity price
will be paid. This means the energy generation of the station has a minimum
impact on the tariff. As a result, the change of energy generation is not
considered in this sensitivity analysis.
The results of financial sensitivity analysis are shown in Table 13.5-1.
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Table 13.5-1Results of Financial Sensitivity Analysis

FIRR (%) Tariff during
Loan
operation Investment
SN Item Total repayment
Equity (US recovery year
investment year
cent/kW·h)
1 Base scenario 11.05 12.83 8.8145 18 20.7
Variation of
2 construction
investment
Not recovered
Increase by
2.1 9.98 10.51 8.8145 18 in operation
10%
period
Decrease by
2.2 12.23 15.33 8.8145 18 16.9
10%
Variation of
3
interest rate
3.1 Increase by 5% 11.02 15.10 8.8145 18 21.8
3.2 Increase by 6% 11.04 13.62 8.8145 18 21.1
3.3 Increase by 7% 11.06 12.00 8.8145 18 20.2
3.4 Increase by 8% 11.08 10.20 8.8145 18 19.2
It is shown from Table 13.5-1that the financial index varies with the change of
sensitivity factors. The FIRR of total investment varies between 9.98% and
12.23%; the FIRR of equity varies between 10.20% and 15.33%. The FIRR is
basically higher than 10%, meaning that the project is financially resistant to
risks.
13.6Conclusion
In summary, when the tariff is at 8.8145 US cent/kWh, the FIRR of equity is

12.83%, the FIRR of the total investment is 11.05%, the loan repayment period
shall is15 years, the total profit of power generation is 2112.97 million USD, and
the dynamic investment recovery period is 20.7 years.
With the purchase tariff of the project in EPC mode being approved by NEPRA,
the project has good financial indices and is financially resistant to risks. Besides,
completion of the project could also alleviate the power shortage in Pakistan. We
suggest the project be commenced at the earliest possible time.
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Annexed Table 1： Cash Flow of SukiKinariHydropower Project (Equity)

Construction period Operation Period
Year
SN
Item
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
合计
1 Cash inflow 638448 0 0 0 0 0 0 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503
1.1 Operation revenue 638306 0 0 0 0 0 0 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503
1.2 Subsidy income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Recovery of the salvage
1.3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
value of fixed assets
Recovery of
1.4 142 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
working capital
2 Cash outflow 402551 11988 5458 9418 8764 5886 7545 22494 22494 22494 22494 22494 22494 22494 22494 22494 22494 22494 22494
2.1 Equity of project 49059 11988 5458 9418 8764 5886 7545 0 0 0 0 0 0 0 0 0 0 0 0
2.2 Loan principal repayment 147177 0 0 0 0 0 0 8420 8977 9570 10202 10876 11594 12360 13176 14047 14975 15964 17018
2.3 Loan interest repayment 67050 0 0 9432 8876 8283 7651 6977 6258 5492 4676 3806 2878 1889 834
2.4 Operational cost 139265 0 0 0 0 0 0 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
2.5 Additional sales taxes 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2.6 Other expense 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2.7 Income tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Investment for
2.8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
maintaining operation
3 Net cash inflow 235896 -11988 -5458 -9418 -8764 -5886 -7545 9009 9009 9009 9009 9009 9009 9009 9009 9009 9009 9009 9009
4 Accumulative net cash flow -11988 -17447 -26864 -35629 -41514 -49059 -40050 -31042 -22033 -13025 -4016 4993 14001 23010 32019 41027 50036 59044
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Annexed Table 1： Cash Flow of SukiKinariHydropower Project (Equity) - continued

S Year Operation period
N Item 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
1445 1445 1445 1445
1 Cash inflow 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14601
9 9 9 9
1. 1445 1445 1445 1445
Operation revenue 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459
1 9 9 9 9
1.
Subsidy income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2
1. Recovery of the salvage
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 value of fixed assets
1. Recovery of working
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 142
4 capital
2 Cash outflow 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
2.
Equity of project 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1
2. Loan principal
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 repayment
2.
Loan interest repayment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3
2.
Operational cost 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
4
2.
Additional sales taxes 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
5
2.
Other expense 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
6
2.
Income tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
7
2. Investment for
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 maintaining operation
3 Net cash inflow 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9959
Accumulative net 6886 7867 8849 9831 10813 11794 12776 13758 14739 15721 16703 17685 18666 19648 20630 21612 22593 23589
4
cash flow 2 9 6 3 1 8 5 2 9 7 4 1 8 5 3 0 7 6
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Annexed Table 2: Cash Flow of SukiKinariHydropower Project (Total Investment of Project)

S Year Construction period Operation period
N Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
合计
63830 3150 3150 3150 3150

1 Cash inflow 0 0 0 0 0 0 31503 31503 31503 31503 31503 31503 31503 31503
6 3 3 3 3
1. 63830 3150 3150 3150 3150
Operation revenue 0 0 0 0 0 0 31503 31503 31503 31503 31503 31503 31503 31503
1 6 3 3 3 3
1.
Subsidy income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2
1. Recovery of the salvage
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 value of fixed assets
1. Recovery of working
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 capital
28492
2 Cash outflow 29161 18018 32669 28570 15842 21399 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
5
2. 14551
Construction investment 29161 18018 32669 28570 15842 21257 0 0 0 0 0 0 0 0 0 0 0 0
1 8
2.
Working capital 142 0 0 0 0 0 142 0 0 0 0 0 0 0 0 0 0 0 0
2
2. 13926
3 5
2.
Additional sales taxes 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4
2.Investment for maintaining
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
5 operation
Net cash flow before 35338 -2916 -1801 -3266 2686 2686 2686 2686
3 -28570 -15842 -21399 26861 26861 26861 26861 26861 26861 26861 26861
income tax 1 1 8 9 1 1 1 1
Accumulative net cash -2916 -4717 -7984 -10841 -12426 -14566 -11879 -9193 -6507 -3821 -1135 1550 4236 6922 9608 12294 14981 17667
4
flow before income tax 1 9 9 9 1 0 9 8 7 6 5 6 6 7 8 9 0 1
5 Adjustment of income tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Accumulative net cash 35338 -2916 -1801 -3266 2686 2686 2686 2686
6 -28570 -15842 -21399 26861 26861 26861 26861 26861 26861 26861 26861
flowafter income tax 1 1 8 9 1 1 1 1
Accumulative net -2916 -4717 -7984 -10841 -12426 -14566 -11879 -9193 -6507 -3821 -1135 1550 4236 6922 9608 12294 14981 17667
7
cash flow after income tax 1 9 9 9 1 0 9 8 7 6 5 6 6 7 8 9 0 1
13-16
Annexed Table 2: Cash Flow of SukiKinariHydropower Project (Total Investment of Project) - continued
S Year Operation period
N Item 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
1 Cash inflow 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459
1.
Operation revenue 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459
1
1.
Subsidy income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2
Recovery of the
1.
salvage value of 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3
fixed assets
1. Recovery of
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 working capital
2 Cash outflow 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
2.
Construction investment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1
2.
Working capital 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2
2.
3
2.
Additional sales taxes 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4
2. Investment for
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
5 maintaining operation
Net cash flow before
3 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817
income tax
Accumulative net cash 18648 19630 20612 21594 22575 23557 24539 25520 26502 27484 28466 29447 30429 31411 32392 33374 34356 35338
4
flow before income tax 8 5 3 0 7 4 1 9 6 3 0 8 5 2 9 6 4 1
Adjustment of income
5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
tax
Accumulative net cash
6 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817
flow after income tax
Accumulative net cash 18648 19630 20612 21594 22575 23557 24539 25520 26502 27484 28466 29447 30429 31411 32392 33374 34356 35338
7
flow after income tax 8 5 3 0 7 4 1 9 6 3 0 8 5 2 9 6 4 1
13-17
Annexed Table 3: Profits & Profit Distribution

Year Construction period Operation period
SN Total
Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
1 Operation revenue 638306 0 0 0 0 0 0 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503
2 Sales taxes & extra charges 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 Total cost expenses 427008 0 0 0 0 0 0 21430 20874 20281 19649 18975 18257 17491 16675 15804 14876 13887 12833
4 Subsidy income 0
5 Total profit 211297 0 0 0 0 0 0 10073 10629 11222 11854 12528 13246 14012 14829 15699 16627 17616 18670
6 Less prior year deficiency 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
7 Taxable income 211297 0 0 0 0 0 0 10073 10629 11222 11854 12528 13246 14012 14829 15699 16627 17616 18670
8 Income tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
9 Net profit 211297 0 0 0 0 0 0 10073 10629 11222 11854 12528 13246 14012 14829 15699 16627 17616 18670
10 Undistributed profit at beginning of period 0
11 Profit available for distribution 211297 0 0 0 0 0 0 10073 10629 11222 11854 12528 13246 14012 14829 15699 16627 17616 18670
12 Extract for statutory surplus reserve 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
13 Profit available forinvestors' distribution 211297 0 0 0 0 0 0 10073 10629 11222 11854 12528 13246 14012 14829 15699 16627 17616 18670
14 Preferred stock dividends payable 0
15 Extract for discretionary earning surplus 0
16 Common stock dividends payable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
17 All investors' profits 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
18 Undistributed profits 211297 0 0 0 0 0 0 10073 10629 11222 11854 12528 13246 14012 14829 15699 16627 17616 18670
19 EBIT 302946 0 0 0 0 0 0 20324 20324 20324 20324 20324 20324 20324 20324 20324 20324 20324 20324
20 EBITDA 499041 0 0 0 0 0 0 26861 26861 26861 26861 26861 26861 26861 26861 26861 26861 26861 26861
13-18
Annexed Table 3: Profits & Profit Distribution - continued

Year Operation period
SN
Item 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
1 Operation revenue 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459
2 Sales taxes & extra charges 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 Total cost expenses 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 12001
4 Subsidy income
5 Total profit 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2459
6 Less prior year deficiency 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
7 Taxable income 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2459
8 Income tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
9 Net profit 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2459
10 Undistributed profit at beginning of period
11 Profit available for distribution 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2459
12 Extract for statutory surplus reserve 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
13 Profit available for investors' distribution 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2459
14 Preferred stock dividends payable
15 Extract for discretionary earning surplus
16 Common stock dividends payable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
17 All investors' profits 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
18 Undistributed profits 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2461 2459
19 EBIT 3281 3281 3281 3281 3281 3281 3281 3281 3281 3281 3281 3281 3281 3281 3281 3281 3281 3279
20 EBITDA 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817
13-19
Annexed Table 4 Cash Flow Statement in Financial Plan

SN Total
Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
1 Net cash flow in operating activities 499041 0 0 0 0 0 0 26861 26861 26861 26861 26861 26861 26861 26861 26861 26861 26861 26861
1.1 Cash inflow 638306 0 0 0 0 0 0 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503 31503
1.2 Cash outflow 139265 0 0 0 0 0 0 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
1.2.1 Operational cost 139265 0 0 0 0 0 0 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
1.2.2 Sales taxes & extra charges 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1.2.3 Income tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1.2.4 Other outflow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 Net cash flow in investment activities -145660 -29161 -18018 -32669 -28570 -15842 -21399 0 0 0 0 0 0 0 0 0 0 0 0
2.1 Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2.2 Cash outflow 145660 29161 18018 32669 28570 15842 21399 0 0 0 0 0 0 0 0 0 0 0 0
2.2.1 Construction investment 145518 29161 18018 32669 28570 15842 21257
2.2.2 Investment for maintaining operation 0
2.2.3 Working capital 142 0 0 0 0 0 142 0 0 0 0 0 0 0 0 0 0 0 0
2.2.4 Other outflow 0
3 Net cash flow in financing activities -93167 29161 18018 32669 28570 15842 21399 -18672 -18672 -18672 -18672 -18672 -18672 -18672 -18672 -18672 -18672 -18672 -18672
3.1 Cash inflow 196236 47953 21834 37670 35057 23542 30179 0 0 0 0 0 0 0 0 0 0 0 0
3.1.1 Project capital investment 49059 11988 5458 9418 8764 5886 7545 0 0 0 0 0 0 0 0 0 0 0 0
3.1.2 Construction investment loan 147177 35965 16375 28253 26293 17657 22634 0 0 0 0 0 0 0 0 0 0 0 0
3.1.3 Current fund loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3.2 Cash outflow 289403 18792 3816 5001 6487 7700 8780 18672 18672 18672 18672 18672 18672 18672 18672 18672 18672 18672 18672
3.2.1 Various interest expenses 142226 18792 3816 5001 6487 7700 8780 10252 9696 9103 8471 7797 7078 6312 5496 4626 3698 2709 1654
3.2.2 Repayment of debt principal 147177 0 0 0 0 0 0 8420 8977 9570 10202 10876 11594 12360 13176 14047 14975 15964 17018
3.3.3 Profit payable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3.3.4 Other outflow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 Net cash flow 260214 0 0 0 0 0 0 8189 8189 8189 8188 8189 8189 8189 8189 8189 8189 8189 8189
5 Accumulative surplus fund 0 0 0 0 0 0 8189 16377 24566 32754 40943 49132 57320 65509 73698 81886 90075 98264
13-20
Annexed Table 4 Cash Flow Statement in Financial Plan - continued

SN
Item 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
1 Net cash flow in operating 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817 9817
1.1 Cash inflow 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459 14459
1.2 Cash outflow 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
1.2. Operational cost 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
1.2. Sales taxes & extra charges 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1.2. Income tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1.2. Other outflow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 Net cash flow in investment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2.1 Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2.2 Cash outflow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2.2. Construction investment
2.2. Investment for maintaining
2.2. Working capital 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2.2. Other outflow
3 Net cash flow in financing -820 -820 -820 -820 -820 -820 -820 -820 -820 -820 -820 -820 -820 -820 -820 -820 -820 -820
3.1 Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3.1. Project capital investment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3.1. Construction investment loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3.1. Current fund loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3.2 Cash outflow 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820
3.2. Various interest expenses 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820
3.2. Repayment of debt principal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3.3. Profit payable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3.3. Other outflow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 Net cash flow 8997 8997 8997 8997 8997 8997 8997 8997 8997 8997 8997 8997 8997 8997 8997 8997 8997 8997
5 Accumulative surplus fund 10726 11625 12525 13425 14325 15224 16124 17024 17923 18823 19723 20623 21522 22422 23322 24221 25121 26021
1 8 5 3 0 7 4 2 9 6 3 1 8 5 2 9 7 4
13-21
Annexed Table 5: Balance Sheet

SN
Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
1 Assets 47953 69787 10745 14251 16605 19623 19788 19954 20119 20284 20449 20614 20780 20945 21110 21275 21441 21606
7 5 7 6 8 1 3 5 7 9 2 4 6 8 1 3
1.1 Total current assets 0 0 0 0 0 0 8331 16519 24708 32896 41085 49274 57462 65651 73840 82028 90217 98406
1.1. Current assets 0 0 0 0 0 0 142 142 142 142 142 142 142 142 142 142 142 142
1
1.1. Accumulated surplus 0 0 0 0 0 0 8189 16377 24566 32754 40943 49132 57320 65509 73698 81886 90075 98264
2 10745 14251 16605 19623
1.2 Project under 47953 69787 0 0 0 0 0 0 0 0 0 0 0 0
construction 7 5 7 6 18955 18302 17648
16994 16341 15687 15033 14380 13726 13073 12419 11765
1.3 Net value of fixed assets 0 0 0 0 0 0
8 1 5 9 2 6 9 3 7 0 4 7
2 Debts & the owner's 47953 69787 10745 14251 16605 19623 19788 19954 20119
20284 20449 20615 20780 20945 21110 21275 21441 21606
7 5 7 6 8 1 3 5 7 0 2 4 6 8 1 3
2.1 equity
Total current liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2.2 Construction 35965 52340 80593 10688 12454 14717 13875 12978 12021
11000 99133 87539 75179 62003 47956 32982 17018 0
investment loan 6 3 7 7 0 1 9
2.3 Liabilities subtotal 35965 52340 80593 10688 12454 14717 13875 12978 12021
11000 99133 87539 75179 62003 47956 32982 17018 0
6 3 7 7 0 1 9
2.4 Owner's equity 11988 17447 26864 35629 41514 49059 59132 69761 80982 92836 10536 11861 13262 14745 16315 17977 19739 21606
2.4. Equity capital 4 0 2 1 0 7 3 3
11988 17447 26864 35629 41514 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059
1
2.4. Capital reserve
2
2.4. Surplus reserve 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3
2.4. Accumulative 0 0 0 0 0 0 10073 20701 31923 43777 56305 69551 83563 98392 11409 13071 14833 16700
4 undistributed profit 1 8 4 4
75.00 75.00
Asset-liability ratio(%) 75.0% 75.0% 75.0% 75.0% 70.1% 65.0% 59.7% 54.2% 48.5% 42.5% 36.2% 29.6% 22.7% 15.5% 7.9% 0.0%
% %
13-22
Annexed Table 5: Balance Sheet - continued

SN
Item 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
1 Assets 21606 21852 22098 22344 22590 22836 23082 23328 23575 23821 24067 24313 24559 24805 25051 25297 25543 25789
3 4 5 5 6 7 8 9 0 0 1 2 3 4 5 5 6 7
1.1 Total current assets 98406 10740 11640 12539 13439 14339 15238 16138 17038 17938 18837 19737 20637 21537 22436 23336 24236 25135
1.1. Current assets 3 0 7 5 2 9 6 4 1 8 5 3 0 7 4 1 9
142 142 142 142 142 142 142 142 142 142 142 142 142 142 142 142 142 142
1
1.1. Accumulated surplus 98264 10726 11625 12525 13425 14325 15224 16124 17024 17923 18823 19723 20623 21522 22422 23322 24221 25121
2 1 8 5 3 0 7 4 2 9 6 3 1 8 5 2 9 7
1.2 Project under 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
construction
1.3 Net value of fixed 11765 11112 10458 98048 91512 84975 78439 71902 65366 58830 52293 45757 39220 32684 26148 19611 13075 6538
assets& the owner's 7
21606 1
21852 4
22098 22344 22590 22836 23082 23328 23575 23821 24067 24313 24559 24805 25051 25297 25543 25789
2 Debts
3 4 5 5 6 7 8 9 0 0 1 2 3 4 5 5 6 7
2.1 equity
Total current liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2.2 Construction 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
investment loan
2.3 Liabilities subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2.4 Owner's equity 21606 21852 22098 22344 22590 22836 23082 23328 23575 23821 24067 24313 24559 24805 25051 25297 25543 25789
2.4. Equity capital 3 4 5 6 6 7 8 9 0 1 1 2 3 4 5 6 6 7
49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059 49059
1
2.4. Capital reserve
2
2.4. Surplus reserve 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3
2.4. 16700 16946 17192 17438 17684 17930 18176 18423 18669 18915 19161 19407 19653 19899 20145 20391 20637 20883
Accumulative
4 undistributed profit 4 5 6 7 7 8 9 0 1 2 2 3 4 5 6 7 7 8
Asset-liability ratio(%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
13-23
Annexed Table 6: Loan Repayment Schedule

Construction period Operation period
Year
SN
Item
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
合计
1 Loan
1.1 Balance of loan at beginning of period 1468072 0 35965 52340 80593 106886 124543 147177 138757 129780 120211 110009 99133 87539 75179 62003 47956 32982 17018
1.2 Current debt servicing 214227 0 0 0 0 0 0 17852 17852 17852 17852 17852 17852 17852 17852 17852 17852 17852 17852
Including: principal 147177 0 0 0 0 0 0 8420 8977 9570 10202 10876 11594 12360 13176 14047 14975 15964 17018
Interest 67050 0 0 0 0 0 0 9432 8876 8283 7651 6977 6258 5492 4676 3806 2878 1889 834
1.3 Balance of loan at end of period 1468072 35965 52340 80593 106886 124543 147177 138757 129780 120211 110009 99133 87539 75179 62003 47956 32982 17018 0
2 Short-term loan
3 Total loan
3.1 Balance of loan at beginning of period 1468072 0 35965 52340 80593 106886 124543 147177 138757 129780 120211 110009 99133 87539 75179 62003 47956 32982 17018
3.2 Current debt servicing 214227 0 0 0 0 0 0 17852 17852 17852 17852 17852 17852 17852 17852 17852 17852 17852 17852
Including: principal 147177 0 0 0 0 0 0 8420 8977 9570 10202 10876 11594 12360 13176 14047 14975 15964 17018
Interest 67050 0 0 0 0 0 0 9432 8876 8283 7651 6977 6258 5492 4676 3806 2878 1889 834
3.3 Balance of loan at end of period 1468072 35965 52340 80593 106886 124543 147177 138757 129780 120211 110009 99133 87539 75179 62003 47956 32982 17018 0
Index:
Interest coverage ratio (ICR) 2.15 2.29 2.45 2.66 2.91 3.25 3.70 4.35 5.34 7.06 10.76 24.37
Debt coverage ratio (DCR) 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50
13-24
Annexed Table7：Total Cost

Construction period Operation period
S Year
N Item
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
合计
1 Fixed operating cost 57600 0 0 0 0 0 0 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920
Foreign currency 25920 0 0 0 0 0 0 864 864 864 864 864 864 864 864 864 864 864 864
Local currency 31680 0 0 0 0 0 0 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056
2 Variable operating cost 14400 0 0 0 0 0 0 480 480 480 480 480 480 480 480 480 480 480 480
Foreign currency 2880 0 0 0 0 0 0 96 96 96 96 96 96 96 96 96 96 96 96

11520 0 0 0 0 0 0 384. 384 384 384 384 384 384 384 384 384 384 384
Local currency 0
3 Insurance premium 53229 0 0 0 0 0 0 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774
4 Water resource fee 14036 0 0 0 0 0 0 468 468 468 468 468 468 468 468 468 468 468 468
5 13926 0 0 0 0 0 0 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
Operating cost 5
6 19609 0 0 0 0 0 0 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536
Depreciation 4
7 Amortization expense 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 91649 0 0 0 0 0 0 1025 9696 9103 8471 7797 7078 6312 5496 4626 3698 2709 1654
Interest expenditure 2
8. Long-term loan interest
67050 9432 8876 8283 7651 6977 6258 5492 4676 3806 2878 1889 834
1 expenditure
8. Circling capital loan interest
24599 0 0 0 0 0 0 820 820 820 820 820 820 820 820 820 820 820 820
2 expenses
8. Other short-term loans interest
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 expenses
9 Overseas investment insurance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
10 42700 0 0 0 0 0 0 2143 2087 2028 1964 1897 1825 1749 1667 1580 1487 1388 1283
Total cost 8 0 4 1 9 5 7 1 5 4 6 7 3
13-25
Annexed Table7：Total Cost

Operation period
Year
SN
Item
19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
1 Loan 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920 1920
Balance of loan at beginning of
1.1 864 864 864 864 864 864 864 864 864 864 864 864 864 864 864 864 864 864
period
1.2 Current debt servicing 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056 1056
Including: principal 480 480 480 480 480 480 480 480 480 480 480 480 480 480 480 480 480 480
Interest 96 96 96 96 96 96 96 96 96 96 96 96 96 96 96 96 96 96
1.3 Balance of loan at end of period 384 384 384 384 384 384 384 384 384 384 384 384 384 384 384 384 384 384
2 Short-term loan 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774 1774
3 Total loan 468 468 468 468 468 468 468 468 468 468 468 468 468 468 468 468 468 468
Balance of loan at beginning of
3.1 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642 4642
period
3.2 Current debt servicing 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536 6536 6538
Including: principal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820
3.3 Balance of loan at end of period 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Index: 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820 820
Interest coverage ratio (ICR) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Debt coverage ratio (DCR) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
SN YearItem 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 11999 12001
13-26
Annexed Table 7: Levelized Electricity Price

Total price (US￠
Energy price (US￠/kWh) Capacity price (US￠/kW/month)
/kWh)
Variable Variable Variable Variable Capacity
Variable Variable Variable
SN of year Variable Water Water Water price (US￠
O&M O&M O&M O&M O&M O&M O&M
O&M usage Total usage Total usage Total /kWh)
(foreign cost (local (foreign (local (foreign (local (foreign
(local currency) cost cost
currency) currency) currency) currency) currency) currency) currency)
1 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 803.3 899.8 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
2 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 856.4 846.7 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
3 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 912.9 790.2 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
4 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 973.3 729.9 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
5 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 1,037.5 665.6 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
6 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 1,106.1 597.0 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
7 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 1,179.1 524.0 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
8 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 1,257.0 446.1 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
9 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 1,340.1 363.1 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
10 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 1,428.6 274.5 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
11 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 1,522.9 180.2 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
12 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 1,623.6 79.6 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
13 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
14 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
15 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
16 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
17 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
18 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
19 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
20 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
21 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
22 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
23 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
24 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
25 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
26 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
27 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
28 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
29 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
30 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
1-12 Yrs 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 1,170.1 533.1 600.5 258.9 64.5 2,979.4 10.280 10.592 10.370
13-30 Yrs 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 0.0 0.0 677.7 258.9 70.2 1,359.3 4.690 5.002 4.760
1-30 Yrs 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 468.0 213.2 646.8 258.9 67.9 2,007.3 6.926 7.238 7.004
After considering 10% social discount rate
1-30 Yrs 0.126 0.032 0.154 0.312 100.7 82.4 169.3 0.0 787.0 444.0 621.9 258.9 66.1 2,530.3 8.730 9.0424 8.8145
13-27

Suki Kinari Hydropower Project Feasibility Study Report Financial Analysis

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Suki Kinari Hydropower Project Feasibility Study Report Financial Analysis

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SUKI KINARI HYDROPOWER PROJECT

FEASIBILITY STUDY REPORT

CHAPTER 13 FINANCIAL ANALYSIS ............................................................. 1

13.1 PROJECT INTRODUCTION ....................................................................................................... 1

Chapter 13 Financial Analysis

SukiKinari Hydropower Project is built in Kaghan valley in Kunhar River basin in

Economic evaluation of SukiKinari Hydropower Project shall be compiled in

(1) Pakistan power generation policy, 2002;

(2) Pakistan IPPs tariff guidelines;

(3) Tariff determination mechanism for hydropower project by Pakistan

(4) Temporary power procurement procedures and standards by

The calculation period of the financial analysis is 36 years, including 6 years of

construction and 30 years of operation.

13.2 Tariff Structure

Tariff = capacity price + energy price

According to Pakistan power generation policy, 2002, it is stipulated in

58. The CPP will be expressed in Rs/kW/month; the EPP in Rs/kWh.

Comparison of capacity price and energy price is shown in Table 13.2-1.

Table 13.2-1Comparison of capacity price and energy price

Since hydropower is a kind of clean energy, according to relevant policy in

The principle of tariff determination in Pakistan is “cost + return", namely, under

13.3 Basic Assumption for Financial Evaluation

Table 13.3-1Basic hypothesis of financial evaluation and price calculation results

The total construction period of SukiKinari Hydropower Station is 72 months.

Table 13.4-1Commissioning Schedule of Station

Item Year 1 to Year 6 Year 7 and after

Installed capacity (MW) 0 873.508

Energy production (GW·h) 0 3081

Available energy (GW·h) 0 3050

Energy on the market (GW·h) 0 3038

Note: plant factor at 0.99, service power ratio at 0.4%.

13.4.2 Project Investment and Fund Raising

(1) Construction investment

(2) Interest during construction

(3) Financing cost

(4) Insurance premium

(5) Working capital

(6) Total investment

Table 13.4-2 Total Project Investment and Fund Raising Plan

In: 104 USD

1 Total investment 196236 47953 21834 37670 35057 23542 30179

1.3 Working capital 142 0 0 0 0 0 142

1.4 Management overhead 1472 1472 0 0 0 0 0

1.5 Commitment fee 3697 1172 990 737 469 271 57

2 Fund raising 196236 47953 21834 37670 35057 23542 30179

2.1.1 Equity 33803 6774 4185 7589 6637 3680 4938

Paid for construction

Paid for working capital and

Paid for interest during

2.2 Debt 147177 35965 16375 28253 26293 17657 22634

Paid for construction

Paid for interest during

2.2.3 Paid for working capital 12413 12413 0 0 0 0 0

2.3 Other capital 0 0 0 0 0 0 0

13.4.3 Estimate of Operation Cost

(1) Operation cost

According to the EPC Tariff Determination Letter, the approved annual

(2) Insurance premium

(3) Water usage cost

(4) Interest payment

In this calculation, the term of loan is taken as 18 years, including 6 years of

13.4.4 Benefit of Energy Production