Valuation Report

Malakand-III Hydropower Project

Location Dargai, Malakand Agency,

Khyber Pakhtunkhwa, Pakistan

Requested by Pakhtunkhwa Energy Development Organization,

Peshawar

Prepared by Joseph Lobo (Pvt) Ltd, Pakistan

Report ref 999_01200888B_71180502
Date 17 January 2024

Khalid Anwar
Director Northern Operations Joseph Lobo (Pvt) Ltd

Eng BakhatAli Naper

Engineering Joseph Lobo (Pvt) Ltd

Yusuf Dossa
Engineering Valuation Risk Joseph Lobo (Pvt) Ltd
 Ref 886.01200888B.71180502 | 17 January 2024 | Pg/ 1 of 14.
▬ ►

Valuation Report
[Issued Without Prejudice]

Insured ▪ Pakhtunkhwa Energy Development Organization [PEDO]

Plot# 38, Sect B-2, Phase-5, Hayatabad, Peshawar, Khyber
Pakhtunkhwa, Pakistan.
 Government of Khyber Pakhtunkhwa
Pakistan

▪ Malakand-III Hydropower Project [M3H]

Dargai, Malakand Agency, KP, Khyber Pakhtunkhwa, Pakistan.

Operational locations M3H plant: Dargai, Malakand Agency, KP, Khyber Pakhtunkhwa,
Pakistan.

Instructions from Pakhtunkhwa Energy Development Organization [PEDO]

Peshawar, Khyber Pakhtunkhwa, Pakistan.

Survey dates 10-Mar-2023

0100 Preamble
0101 The Malakand-IIl Hydropower Plant [M3H] is a ‘run-of-the-river’ type hydropower complex of 181m net
head, providing 81.1MW & 51cumec capacity, designed in 2002 to realize the development potential of
the existing infrastructure including the Benton tunnel & Amandara headworks across the Swat River at
Akbarabad, already in place for the earlier 22MW/ Jabban [Malakand-| / M1H / commissioned 1938] &
20MW Dargai [Malakand-Il / M2H / commissioned 1952] neighboring hydropower plant projects.
0102 Construction began in Jun-2005 & the plant was commissioned for commercial operations on 01-Nov-
2008. Total cost at the commissioning stage was reported to have been USD 106.15million [PKR
6.38billion]. The mean annual energy output is 549GWh.
0103 In addition to supplementing the power output of the Jabban & Dargai plants, an intermediate wasteway
from the Sediment Excluder-2 also provides the water for the direct gravity-fed Baizai irrigation scheme
for more than 25,000acres [10,117ha].
0104 M3H was the first hydropower plant in Pakistan to incorporate Supervisory Control & Data Acquisition
[SCADA] as the main control system.

0200 Scope of Assignment

0201 Valuation of the plant, machinery & ancillary equipment, infrastructure, buildings & structures of the M3H
complex, in order to determine the New Replacement Value [NRV] for insurance purposes, as well as the
Present Market Value [PMV], of the above-mentioned assets as listed, as of 04-Jan-2024.
0202 The assessments will be based upon several valuation methodologies for the installed plant / machinery,
ancillary equipment, buildings & structures, as listed below:
0202.1 Cost-approach-1: Assessment & derivation of the New Replacement Value [NRVi] for
insurance purposes, as of 04-Jan-2024.
0202.2 Cost-approach-2: Assessment of the Present Market Value [PMV], from the derived NRV,
including work-back / work-forward recasting using the computed NRV / PMV figures for the
said project, as well as historical costs as the bases of valuation.

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 1/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 2 of 14.

▬ ►

0202.3 Comparative-plant / market-approach: Assessment of NRV & PMV using external, market-
sourced data, values & specifications for other existing plants & facilities of similar
configuration, as well as figures from the extensive databases compiled by JL & our
international partners during other valuations, risk & sums-insured assessments, as well as
claims & loss adjusting assignments in Pakistan, & internationally.
0203 The survey report is to be accompanied by a Photo file of the subject assets.
0204 The report is not intended to have comprehensive self-contained descriptives of subject assets, but short
asset captions using existing nomenclature received from M3H / PEDO who already have access to and
are familiar with the detailed technical specifications of the subject assets.
0205 No material testing is to be performed to assess value &/or condition of the assets inspected. Assessment
is to be based on physical inspection, measurements &/or data provided by M3H / PEDO, in addition to
market inquiries & the combined proprietary worldwide database resources of Joseph Lobo (Pvt) Ltd &
our international partners.

0300 Definitions
0301 New Replacement Value [NRV1] is the estimated cost of replacing the existing subject asset with an
unused substitute of identical or equivalent asset of like kind, quality, equal utility &
output/capacity/specifications, having zero wear-&-tear, using current standards of materials & design,
and with no deduction for depreciation.
0302 Present Market Value [PMV] also termed as Fair Market Value is the estimated value of a tangible asset,
in its current state, as-is-where-is, in an unrestricted market, founded on market information, extrapolation
&/or precedent, based on what an informed, willing, & unpressured buyer without any obligation would
likely arrive at and agree with a similarly knowledgeable, willing, unpressured & unobligated seller in the
market, with neither party under any compulsion to buy or sell. The assessed PMV apply to a degree &
form of deployment related to identical utilization &/or project requirement. Any deviations with respect to
differing utility will entail adjustments or an entirely revised appraisal.
0303 Operational / Useful Life is the estimated life during which an asset is projected to generate revenue or
provide other valuable or quantifiable service. Equivalent to the period over which an asset can be
depreciated, useful life refers to the duration for which the item will be useful to the entity, not how long
the asset will or could actually last before being reduced to scrap at the end of its useful life. Many factors
affect a property's useful life including the frequency of use, the age or running hours already incurred at
the time of acquisition as well as the repair policy & the prevailing environmental conditions during
operation or storage of the asset. Useful life of identical type of assets will differ from user to user
depending on the above factors as well as additional factors as foreseeable technological improvements,
economic changes & changes in laws.
0304 End-Life Residual Value / Scrap Value [ERV] is the estimated value of a physical asset &/or its
component/s after completion of its economic operational life and is deemed no longer usable in original
form. The individual components may at times be put to other use in original form or more often be
processed before reuse. Scrap value is also dependent on the supply & demand for the component
materials of the scrapped asset.

0400 Valuation | Methodologies, Parameters, Metrics

0401 The subject survey was carried out with the consent, logistical support & cooperation of M3H, PEDO &
NICL.
0402 A listing of the assets including plant components, buildings, structures & vehicles was provided by M3H.
Prevailing & historical market values for these listed assets of identical or similar specifications & age.
0403 Principal persons liaised with at PEDO & M3H were: [a] Mr Muhammad Samiullah (MS): Assistant
Director, PEDO-M3H plant; [b] Mr Muhammad Masood (MM): Director Engineering, PEDO-Peshawar; [c]
Mr Qamar Orakzai (QO): Director, PEDO-Peshawar; [d] Mr Zahid Akhtar (ZA): Director, PEDO-Peshawar;
[e] Mr Afzaal Shah (AS): AM Reinsurance, NICL-Islamabad; [f] Mr Khurram Irshad (KI): Chief Manager
Underwriting, NICL-Islamabad; besides several other engineers, technicians & support staff.
◼ Plant / Machinery: Cost & Market Comparative Approaches
0404 The JL asset-groups & listing orders the earlier risk, valuation & Probable Maximum Loss / Maximum
Foreseeable Loss assessments have been followed as the primary reference, & main sub-heads.

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 2/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 3 of 14.

▬ ►

0405 The PC1 document, equipment lists, as well as data with respect to buildings & civil structures was shared.
0406 A listing of the assets including plant components, buildings, structures & vehicles was provided by M3H.
Prevailing & historical market values for these listed assets of identical or similar specifications & age
were researched & used for: [a] Market-based cost-approach derivation of PMV1: NRV1-PMV1 [where
new, unused replacement assets are available] with work-forward for PMV1; [b] Comparative-plant-based
cost-approach derivation of PMV2-NRV2-PMV1 [for independently commissioned &/or custom-designed
assets, &/or assets no available in their original specifications] with work-back / work-forward inter- &
extrapolations for PMV1; & [c] Historical-cost-based OAV-PMV3 extrapolated work-forward derivations,
followed by work-back / work-forward for using the FAR & historical data provided by M3H.
0407 The assessment incorporates a multiple approach to achieve the most broad-based derivation. The
methodologies employed include stand-alone itemized NRV derivations based on worldwide procurement
of materials & services, coupled with a parallel NRV derivation using the JL’s in-house databases,
statistical & trend-derived project costs for comprehensive & comparative appraisal.
0408 The project valuation & itemized costs from comparable projects were referred from the Cunningham
Lindsey Project Control Partnership, UK & Joseph Lobo Ltd, Pakistan worldwide databases.
0409 The heads & format used was compiled from the subject project PC1 document in order to facilitate direct
comparison.
0410 Level-1 / Class-5 & Level-2 / Class-4 computational financial models for small- & medium-sized
hydropower unit capital cost estimations were made in conjunction with inputs from JL-modified capital
cost derivations from IDAM, EWOA & Flow-3D software.
0411 The critical metrics used were:
0411.1 Pakistan PPI escalation 1st-order derivatives for: in-land transport [northern Pakistan],
cement, concrete infrastructure, pavement & building construction, steel fabrication,
engineering services, hvac, selected transformers & electrical distribution cabinets.
0411.2 China PPI escalation 1st-order derivatives for: engineering services, specialized transformers,
MV / HV electrical switchyard hardware, breakers & upstream switchgear, hydroelectric turbine
units, valves, gensets, solenoids, steel sub-assemblies, main control room panels, cranes &
hoists, hydraulic actuation & control systems, electric drives & telecommunication equipment.
0411.3 Discounting factors were used where direct USA / EUR comparatives were used to obtain the
China-origin equivalent.
0411.4 The NRV-for-insurance Sum-Insured [SI] includes the additional costs for Increased Cost-of-
Working [ICW] covering additional surveys, 3rd-party rehabilitation consultancy fees,
allowances for peripheral collateral damage [civil works as well as plant / machinery],
dismantling, disengagement, replacement / rehabilitation / reinstatement, testing & misc costs
till trial production, as well as debris removal & an additional contingency component.
0411.5 Prevailing & historical market values of assets of identical or similar specifications & age were
researched & used for NRV-PMV, PMV1-PMV2, OAV-PMV derivations which were then used
as a comparative basis, with work-back / work-forward using the following factors for assets of
older or later YoM (year-of-manufacture) &/or of an independently commissioned design
nature:
0411.6 Scaling & equivalence factors were applied to normalize production / output capacities,
dimensions, dry weight for asset values of slightly differing specs & enable proper comparative
analyses.
0411.7 Assets were re-grouped in accordance with specific machinery classes to enable more
accurate itemized NRV-PMV / PMV-NRV derivations.
0411.8 Straight-line depreciation was applied on an asset class basis adjusted & categorized to reflect
residual value, operational life, Mean-Time-Between-Failure (MTBF) trends, & cyclical utility
patterns [where applicable].
0411.9 1st order derivatives for the host-country &/or supplier-country Producer Price Index (PPI)
were applied on an asset-class sector-wise basis as applicable.
0411.10 Lapsed-period exchange-differential impact was applied for non-offshore items & other host-
country expenses. USD was used as the primary denominations wherever possible. Exchange
rates on the basis of the annual mean were utilized for each year till 2023. The rate on 04-Jan-
2024 [281.884782] was applied for the year 2024.
0411.11 The relevant obsolescence factors were applied selectively to equipment, components,
electro-mechanical machinery & ancillaries where the base technology &/or instrumentation
has undergone significant change in core &/or display technology, & including assets where
primary functions are dependent on installed microprocessors, IC-modules & logic controllers.

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 3/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 4 of 14.

▬ ►

0411.12 Initial import, logistical & installation costs were factored into the values.
0411.13 Capitalized modifications, standard overhaul &/or major refit expenditures were excluded but
their impact on the operational life of the target assets were applied & adjustments made
accordingly, as a matter of course.
0412 Market-derived NRV & PMV data were compared with our proprietary databases compiled from decades
of experience in plant valuation, machinery insurance claim adjustments, as well as plant & PML / MFL
derivations for project risk assessments.
0413 Market-sourced import, landed cost & installed NRVs as well as direct locally fabricated cost-based NRVs
were obtained &/or computed for identical &/or similar & the relevant factors from above-mentioned basis
applied.
0414 Market-derived individual itemized PMV & NRV data were used as far as possible, under the said
circumstances.
0415 The Modal Mean of the results from the various methodologies was used to derive the final definitive NRV
/ PMV for plant.
◼ Building: Cost Approach
0416 Physical inspection, examination & measurements of buildings & structures to identify the construction
types, standards & levels of finish.
0417 Physical surveys on the ground were followed up by satellite photogrammetry & referenced information
from M3H & our own type & rate databases in order to establish the bases for computing the dimensions,
construction types & rates for derivation of the NRV.
0418 Physical surveys & measurements were conducted independently wherever physical or remote access
was possible & integrity of the superstructure permitted, for the buildings & structures in order to identify
the construction types, dimensions, standards & levels of finish & current condition.
0419 Condition assessment was made on the basis of physical inspection from the ground as well as our own
extensive experience in a wide range of civil engineering projects for ERV, Balance-Operational-Life
[BOL], RCA, post-fire evaluations & other condition / loss-damage assessment assignments.
0420 Structure Mean Operational Life [MOL] & End-Life Residual Values [ERV] was determined by the type of
building construction & building materials.
0421 The covered area was coupled with the applicable construction rates & NRV computed for the entire
developed, built-up & constructed area.
0422 The derived value was then depreciated using declining balance basis [computed on mean life & End-
Life Residual Values [ERV]] work-back computation & our proprietary financial models for buildings & civil
structures.
0423 Details for the individual rates & computed values are listed in the attached Annexures.
0424 The cost-approach derived values were then depreciated using our proprietary financial models using
declining balance basis [computed on mean operational life & end-life residual values] work-back
computation from the Year-of-Completion.

0500 Location
0501 The M3H main project components in order of sequence are:
0501.1 Origin at the Amandara Headworks, branching off into the lower Swat River Canal, running
past the NW outskirts of Akbarabad for 5,960m. The canal leads to a point where it passes
through the far-left & middle-left branches of a 190m 4-chamber sediment-trap & settlement
course [shared by Jabban, Dargai & M3H projects].
0501.2 From here the said water course enters the new auxiliary Tunnel-1 [3,390m] that runs parallel
to the Benton Tunnel [headwater source channeling water for the Jabban & Dargai
hydropower plants].
0501.3 Emerging at the end of a gully between the 2nd & 3rd of the laterally intervening range of 5x
open-ended spurs, 920m NNE of the Jabban powerhouse, the M3H headwater branches off
into another Tunnel-2 [540m, below the 3rd-spur]. This 2nd-tunnel, exits into the Headrace
Canal-2 [2,320m, with several concrete conduit sections] traversing the NW slope of the
penultimate 4th-spur.
0501.4 The canal then enters Tunnel-3 [1,390m, under the 4th-spur] to finally emerge at the main
M3H Sediment Excluder. Here the bulk of the flow, after passing through the excluder, is
channeled to the Forebay reservoir at the SW extremity of the 4th-spur, via Tunnel-4 [1,080m].

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 4/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 5 of 14.

▬ ►

▲ M3H | overall layout | satellite view

0501.5 An offtake from the east side of the excluder provides the source for the direct gravity-fed
Baizai irrigation scheme that branches downstream further east via a multiple-cascade
channel.
0501.6 The headwater channeled through the final M3H sediment excluder, passes into a flow-
stabilizing Forebay reservoir, runs through the final trash grating, & into the 1st & 2nd
interconnected above- grade exposed steel Siphon-1 & -2 [150 & 80m respectively].
0501.7 These siphons lead into the final Tunnel-5 [240m], running below the 5th-spur that overlooks
the northern extremity of the main M3H powerhouse complex. This headrace emerges from
the south face of the 5th-Spur 270m away from the M3H powerhouse, enters steel Siphon-3
[70m], followed by a subsequent concrete conduit [60m].
0501.8 The concrete conduit leads to the high-pressure steel header [100m], before splitting into 3x
individual steel penstocks [41, 42 & 48m respectively] providing near-parallel feed to the 3x
turbines installed in Basement-2 of the powerhouse.
0501.9 The outflow from the turbines enters the Aftbay reservoir [46m] before entering the final
Tailrace [997m], & ultimately emptying into the 28m wide Dargai Nallah.

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 5/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 6 of 14.

▬ ►

▲ M3H | Amandara headworks

▲ M3H | headrace Canal-1 end, Tunnel-1 entry

0600 Building & Structures / Production-Related Civil Work /

0601 The main plant components, are housed in dedicated, fully- & semi-enclosed buildings of various types
including:
0601.1 Steel-frame columns & beams, brick masonry lower walls, with corrugated panels forming the
upper walls [some cases complete walls] & shallow pitched corrugated GRP- & steel-roofing.
0601.2 Main administrative buildings of are RCC column-&-beam framework, with load-bearing as
well as non-load-bearing walls & conventional RCC or pre-cast slab roofing.
0601.3 Secondary & support buildings of are a mix of conventional RCC walls & roof, as well as non-
loadbearing walls & pre-cast slab &/or shallow-pitched GRP- & steel- corrugated roofing.
Depending on the end-use, these are fully enclosed with walls on 4-sides & roof [occasionally
with 1-2x levels of basements, service pits, etc, as required], 2-, 3- & 4-sides open.
0601.4 Covered area summaries are as under:
0602 Covered area summaries are as under:

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 6/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 7 of 14.

▬ ►

Name Covered Area m2

0602.1 Headworks 1,310

0602.2 Tunnels -

0602.3 Canals -

0602.4 Sediment Excluder-1 3,200

0602.5 Sediment Excluder-2 superstructure 6,300

0602.6 Forebay & superstructure 2,200

0602.7 Powerhouse [visible civil components only] 2,520

0602.8 Workshop & store premises 1,900

0602.9 Office / administration block 1,600

▲ M3H | Tunnel-1 end, Tunnel-2 entry

0700 Configuration | Plant, Machinery & Equipment

0701 The finalized project configuration is a run-of-the-river, tunnel-diversion type hydel plant.
0702 The main components, plant / machinery & ancillary equipment & their locations are listed as under:
Name Details | Remarks

0702.1 Amandara ▪ Precedes Spur-1.

Headworks / ▪ PCC liner open canal.
Headwater source ▪ Width 43m.
Canal-1 ▪ Total length 309km.
▪ Max flow capacity 54cumec.
▪ Length utilized for M3H, Jabban & Dargai 5,950m.

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 7/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 8 of 14.

▬ ►

0702.2 Sediment Excluder ▪ Precedes Spur-1.

Course-1 ▪ PCC liner open canal.
▪ Width 4x channels @ 4m | 2x utilized for M3H.
▪ Total length 200m.

0702.3 Auxiliary Tunnel-1 ▪ Below Spur-1, Spur-2 & Mekhband Escarpment-1,-2.

[parallel to Benton ▪ Steel-lattice reinforced concrete wall / steel mesh / shotcrete
Tunnel] surfacing.
▪ Width 4m.
▪ Length 3,390m.
▪ Max flow 56.6 cumecs.

0702.4 M3H Tunnel-2 ▪ Below Spur-1, Spur-2, Mekhband Escarpment-1 & before end of
Escarpment-2, spanning valley between Spur-2 & Spur-3.
▪ Steel-lattice reinforced concrete wall / steel mesh / shotcrete
surfacing.
▪ Width 4m.
▪ Length 590m.

0702.5 M3H Canal-2 ▪ Partially open canal traversing the NW slope of the 3rd-spur
▪ PCC liner partially open canal [4x fully enclosed concrete conduit
sections].
▪ Width 6.50m.
▪ Total length 2,320m.

0702.6 M3H Tunnel-3 ▪ Steel-lattice reinforced concrete wall / steel mesh / shotcrete
surfacing.
▪ Width 4m.
▪ Length 1,390m.

0702.7 M3H main Sediment ▪ RCC open canal.

Excluder ▪ Single inlet.
▪ Single 1-4 splitter.
▪ Width 4x channel [width @ 13m] / 4x stage sediment-trap &
settlement course.
▪ Depth 12m.
▪ Single 4-1 collector.
▪ Total length 140m.

0702.8 M3H Tunnel-4 ▪ Steel-lattice reinforced concrete wall / steel mesh / shotcrete
surfacing.
▪ Width 4m.
▪ Length 1,050m.

0702.9 Wasteway-1 [offtake ▪ Multiple-cascade gravity spillway.

for Baizai Irrigation ▪ RCC construction.
scheme] ▪ Width 2.50m.
▪ Length 240m.

0702.10 M3H Forebay ▪ RCC open canal.

Reservoir ▪ Single inlet.
▪ Single 1-4 splitter.
▪ Width 30m.
▪ Depth 15m.
▪ Total length 74m.

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 8/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 9 of 14.

▬ ►

0702.11 M3H Headrace ▪ Carbon-steel double-flanged bolted line-pipe.

Steel Siphon-1 [low
pressure penstock
section]
▪ Section length 8m.
▪ Shell thickness [data awaited].
▪ Diameter 4m.
▪ Total length 150m.
▪ RCC mono-block connecting unions.

▲ M3H | Headrace Tunnel-2 end, Canal-2 entry

0702.12 M3H Headrace ▪ Carbon-steel double-flanged bolted line-pipe.

Steel Siphon-2 [low
pressure penstock
section]
▪ Section length 8m.
▪ Shell thickness [data awaited].
▪ Diameter 4m.
▪ Total length 80m.
▪ RCC mono-block connecting unions.

0702.13 M3H Headrace ▪ Steel-lattice reinforced concrete wall / steel mesh / shotcrete
Tunnel-5 [low surfacing.
pressure penstock ▪ Width 4m.
section] ▪ Length 240m.

0702.14 Auxiliary Spillway- ▪ Multiple-cascade gravity chute.

1 [forebay to ▪ RCC construction.
powerhouse side, ▪ Compartments 22x.
traversing ▪ Width 14m.
between Spur-4 & ▪ Length 180m.
Spur-5]

0702.15 M3H Tunnel-6 ▪ Carbon-steel double-flanged bolted line-pipe.

[auxiliary spillway-1 ▪ Section length 8m.
to -2, traversing ▪ Shell thickness [data awaited].
under Spur-5] ▪ Diameter 4m.
▪ Total length 250m.

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 9/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 10 of 14.

▬ ►

0702.16 M3H Headrace ▪ Carbon-steel double-flanged bolted line-pipe.

Steel Siphon-3 ▪ Section length 8m.
[intermediate ▪ Shell thickness [data awaited].
pressure penstock ▪ Diameter 4m.
section] ▪ Total length 70m.
▪ RCC mono-block connecting unions.

▲ M3H | Headrace Canal-2 end, Tunnel-3 entry

▲ M3H | Headrace Tunnel-3 end, sand excluder, Headrace Tunnel-4 entry

0702.17 M3H Headrace ▪ RCC construction.

Concrete Conduit ▪ Width 4m.
[intermediate ▪ Length 60m
pressure penstock
section]

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 10/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 11 of 14.

▬ ►

0702.18 M3H Headrace ▪ Carbon-steel seamless line-pipe.

Steel Main Penstock ▪ Shell thickness [data awaited].
& Trifurcation ▪ Diameter 4m.
Header [high ▪ Total length 90m.
pressure penstock ▪ 1-3 trifurcation header.
section]

0702.19 M3H Headrace ▪ Carbon-steel seamless line-pipe.

Steel Turbine ▪ Shell thickness [data awaited].
Feeder Penstock-1,- ▪ Diameter 2.70m.
2,-3 [high pressure ▪ Tentative total length 41 + 43 + 48 = 132m [full details awaited].
final penstock
sections]

▲ M3H | Tunnel-4, forebay, Steel-siphons 1-3, headrace Tunnel-5, spillway Tunnel-1, Penstock, switchyard, powerhouse, aftbay, spillway cascade

0702.20 Auxiliary Spillway-2 ▪ Multiple-cascade gravity chute.

[Spur-5 to tailrace ▪ RCC construction.
channel] ▪ Compartments 29x.
▪ Width 14m.
▪ Length 464m.

0702.21 Tailrace ▪ PCC liner open canal.

▪ Width 15m.
▪ Total length 997m, draining into the ‘Dargai Nallah’.

0702.22 Powerhouse / ▪ Level-1 / Ground-floor: Cabling & turbine hvac plant | 1x rail-
Turbine-1,-2,-3 mounted travelling crane [75/10mt].
▪ Basement-1: LV panels & switchgear.
▪ Basement-2 / Turbine hall:
• 3x Francis type turbines @ 27MW.
• 3x air-cooled 4-component synchronous generators with digital
governors.
• Complete lubrication & cooling systems for turbines.

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 11/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 12 of 14.

▬ ►

0702.23 Switchyard [breaker ▪ 2x 132kV transmission lines are connected the 132kV Dargai
& half scheme / station.
SF6] ▪ 3x ONAF power transformers @ 32MVA / 11/132kV - HV 145kV.
▪ 3x ONAN auxiliary transformers @ 500kVA / 11/400V.
▪ 3x bays | 2x Busbars | 8x breakers | 23x isolators | 24 CT | 12x PT |
5x earth switches | 6x surge arresters | 4x wave traps.
▪ Control is via programmable Distributed Control System, with
duplicated processors to 2x levels of redundancy. Real-time
video displays, with work stations, & remote controllers &
monitoring protocols. Manual backup is available with hard- wired
trip circuits.

▲ M3H | Penstock, switchyard, powerhouse, aftbay, spillway cascade, tailrace

▲ M3H | Switchyard, powerhouse, aftbay, spillway, tailrace

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 12/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 13 of 14.

▬ ►

0702.24 Workshop & store ▪ Various manual & cnc lathe, milling, turning, grinding, measuring
complex machines.
▪ TIG / MIG welding facilities.
▪ Assorted cranes, hoists & jigs.

0800 Valuation Summary

◼ Plant + Buildings / Cost Approach / NRV for insurance purposes:
Asset Group New Replacement Value
PKR [rounded up 10,000]

0801.1 Civil works 509,960,000

0801.2 Hydro-mechanical equipment & associated ancillaries-1 4,236,330,000

0801.3 Electro-mechanical equipment & associated ancillaries-2 8,424,670,000

0801.4 Electrical equipment / powerhouse & associated ancillaries-3 19,041,230,000

0801.5 Control equipment & associated ancillaries-4 348,900,000

0801.6 Misc, balance-of-plant, workshop, vehicles, project infra-structure, 2,952,410,000

spares, etc

0801.7 Total NRVi = PKR 35,513,500,000

◼ Plant + Buildings / Cost Approach / PMV for accounting / finance purposes:

Asset Group Present Market Value
PKR [rounded up 10,000]

0801.8 Civil works 13,550,000

0801.9 Hydro-mechanical equipment & associated ancillaries-1 468,560,000

0801.10 Electro-mechanical equipment & associated ancillaries-2 4,701,220,000

0801.11 Electrical equipment / powerhouse & associated ancillaries-3 7,340,150,000

0801.12 Control equipment & associated ancillaries-4 43,380,000

0801.13 Misc, balance-of-plant, workshop, vehicles, project infra-structure, 598,530,000

spares, etc

0801.14 Total PMV = PKR 13,165,390,000

0810 The estimated sum-insured is derived taking into account freight, import levies, engineering / supervision
expenses for installation / commissioning, start-up, trials & commissioning costs.
0811 The figures do not include costs for design, early-stage project consultancies & start-up costs, physical
contingencies, administration / management, forex losses, contractor’s claims, performance guarantees,
price adjustments, furniture, fixtures, interest, feasibility studies, project planning &/or financial charges.

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 13/14
2024-03-05 | 12:15
■ ►
 . Ref 886.01200888B.71180502 | 17 Jan 2024 | Pg/ 14 of 14.

▬ ►

0812 It must be understood & appreciated that contrary to an entire project being implemented & commissioned
as a single work-order & undertaking, the subject comparative plant basis estimation for each main individual
module of the project has been made treating construction / erection / installation / commissioning for the
various components of the project being treated as single, independent jobs, to be implemented, progressed,
& concluded as complete, stand-alone contracts, as would be the base scenario for probable losses &
insurance claims [PML level & below] in real terms, where only a few individual sections, modules &/or
components of the entire project are affected at any given time, & not the entire project. These insurance-
focused costs will always be substantially higher than the scales-of-economy achievable for a one-time
implementation of an identical project, & several factors greater than the original project costs.

0900 Annexures
0901 Annexure-01 Plant, building details.
0902 Annexure-02 Satellite views.
0903 Annexure-03 Photo file.

1000 General Disclaimer

1001 General Note: This assessment & analysis summarizing our findings & professional opinion is limited to
the extent, nature & quality of data shared by the client.
1002 At no time shall Joseph Lobo (Pvt) Ltd &/or its employees be responsible for any inferences, action,
assumptions, conclusions or implications drawn from the draft &/or final report &/or any annexures
provided.
1003 In no event, regardless of whether consent has been provided, shall Joseph Lobo (Pvt) Ltd &/or its
employees assume any responsibility to any other third party to which the report & annexures, in part
or in toto, is disclosed or otherwise made available.
1004 Neither do we, Joseph Lobo Pvt Ltd, ISO 9001: 2015 certified & holding SECP licenses 01-S-Mach-F,
03-S-F-F, 03-S-M-F & 03-S-Motor-F, nor any of our directors, employees, associated persons,
consultants or other related party, have an interest directly or indirectly by way of insurance, ownership,
agency commission, repair, salvage disposal, or in any other way in the property or interest that
constitute the subject matter of this communication, other than as Valuation Surveyors & Loss Adjusters.
1005 The above assessment was carried out diligently, to the best of our ability, & our responsibility is limited
to the exercise of reasonable diligence & care.
1006 This report represents our findings on the date & at the place stated & is issued without prejudice to the
rights of whomsoever concerned. It does not intend to relieve any party from its legal &/or contractual
obligations.
1007 The lists of assets including stocks were provided by the client &/or their representatives.
1008 We have relied on the information supplied to us in good faith, & accept no responsibility if this should
prove erroneous at a later date.
1009 It is our understanding that we are not required to give testimony or attend in court or government
agency unless prior assignment terms are agreed in advance.
1010 All related documents provided to us will be preserved for 03 years from this day.

The above inspection was carefully carried out to the best of our ability & our responsibility is limited to an exercise of reasonable care. This report represents our findings on the date & at the place stated
& is issued without prejudice to the rights of whomsoever concerned. It does not intend to relieve any party from its legal &/or contractual obligations. All relating documents that were provided to us will
be preserved for 03 years from this day. Neither the whole nor any part of the report nor any reference thereto may be included in any published document or statement nor published in any way without
our written approval of the form & context in which it will appear.

Khalid Anwar Eng BakhatAli Naper Yusuf Dossa

Dir, Northern Operations Engineering Engineering Valuation Risk

Joseph Lobo are a professional firm of licensed Surveyors & Valuers, enlisted by
the Pakistan Banks Association as class-A Valuers with no limit on the Asset value

200888B Malakand3 Hp - 999_50 N_S = 240117_Sr1

p 14/14
2024-03-05 | 12:15
■ ►