report rumrunga mhs 20120607113351

DETAILED FEASIBILITY STUDY REPORT

Of

RUMRUNGA KHOLA MHS Khaule VDC, Khotang

(11 kW)

TECHNICAL REPORT Volume -I

Submitted to District Development Committee: District Energy and

Environment Section Khotang

Submitted by: DAT Engineering Consultancy Pvt. Ltd.

Kalanki, Kathmandu Ph: 01-4032657, Fax: 977-1-4032683

E-mail: [email protected]

Aug, 2009

Rumrunga Khola Micro Hydro Power System, Khaule VDC, Khotang i

SALIENT FEATURES Project Location

Name of the project : Rumrunga Khola Micro Hydro Power System Location : Khaule VDC District : Khotang Zone : Eastern Region Name of Source : Rumrunga Khola No. of Households : 120 Subscribed Power : 91 watt Load Centre : Main load centers are ward no. 1,2,3,4 and 9 of

Khaule VDC Route to reach the Site : Kathmandu – Udayapur - Khotang

Technical Features Gross Head : 64.00 m Measured Flow : 79 lps in May 20, 2009 Design Flow : 28 lps Design Power : 11 kW Headrace : 605 m lined canal Penstock pipe : 123 m long, 175mm dia. MS, 62.5 m long - 4.0,

and 60.5 m – 4.5 mm thick Type of penstock pipe : Mild Steel Intake : Side Intake Diversion : Temporary Weir

Electro Mechanical Features

Type of Turbine : Pelton Turbine Turbine shaft Power : 15 kW Mechanical Transmission : Flat Habasit Belt Generator : 20 kVA (Synchronous Generator) 50Hz, 400/230 V and 1500 RPM ELC : 11 kW Ballast Load : Industrial Immersion Heater 13 kW Total length of T & D line : 5855 m

Single Phase Line : 1240 m Three Phase Line : 4615 m Financial Features

Total Project Cost : NRs. 5,124,887.00 Cost per kW : NRs. 465,899.00 IRR : 16.0 %

Rumrunga Khola Micro Hydro Power System, Khaule VDC, Khotang ii

NPV : NRs. 1,346,947.00 B/C Ratio : 1.24 Payback Period : 5.56 Annuity Payment : NRs. 493,685.00 Source of Finance:

S.N. Source Amount (Rs)

Share (%) Remarks

1 AEPC/REDP Subsidy 1,457,500 28.44 125000 / kW 2 VDC Support 512,489 10.00 10 % of total cost 3 DDC Support 256,244 5.00 5% of total cost 4 Local Labour & Material 879,031 17.15

Item 4,5 and 6 should be collected

by community 5 Community Cash Contribution 240,000 4.68

6 Bank Loan by Community 1,779,623 34.73

7 Others 0 0.00 Total Source of Finance 5124887 100.00

Proposed End Uses : Agro-processing mills (huller and

grinder), Rural carpentry and Computer Centre

Tariff for lighting : 2.00 /watt/month Tariff for business use : 10.00 per unit

Rumrunga Khola Micro Hydro Power System, Khaule VDC, Khotang iii

ACKNOWLEDGEMENT We would like to acknowledge the Micro Hydro Functional Group (MHFG) of Chima Khola Micro Hydro Power System and the team of DDC:DEES Khotang for entrusting us to prepare detailed feasibility study of this project at Khaule VDC of Khotang district. We would also like to thank Mr. Bhisma Pandit (REA), Manoj Kumar Shah (EDO) , Namrata Shrestha (TO) and other staff of REDP/ DEES (Khotang), for their help throughout survey and the preparation of the report. The valuable suggestion from the overall team of REDP is highly appreciated.

Kind support from all the proposed project beneficiaries is highly appriciated. We are also grateful to the villagers as well for their invaluable help during the field study. We hope the establishment of the project in the village surely lead towards the overall development of this region.

DAT Engineering Consultancy Pvt. Ltd. JV Ph: 01- 4032657, Fax: 977-1-4032683 E-mail: [email protected] Kalanki, Kathmandu

Rumrunga Khola Micro Hydro Power System, Khaule VDC, Khotang iv

EXECUTIVE SUMMARY

Rumrunga Khola Micro Hydropower System is located at Khaule VDC of Khotang district. It has installed capacity 11 kW with design discharge of 28 lps and gross head of 64.00 m. The nearest road head for this scheme is Beltare (Udayapur) and it is about 40 kM away from there. Main load centres are ward no. 1,2,3,4 and 9 of Khaule VDC. Lighting is the primary use and as a secondary use agro-processing mills, rural carpentry and computer centre are proposed. Design discharge is available in the stream even in the dry season. This stream originates from higher mountains. The assumed RL of the intake is about 1009 m.Headrace canal is lined for all the section. 175 mm dia. MS pipe, 4.5 mm, 4.0 mm and 3.5 mm thick has been proposed in the penstock. Total length of the penstock is 104 m. There will be five expansion joint and five anchor blocks. There are twenty-seven support piers. The discharge from the penstock will be passed through 15 kW shaft power, cross flow turbine and generator used for the scheme is 20 kVA, 3-Phase, synchronous, brushless generator. The length of transmission and distribution is 5855 m. Transmission and distribution network is designed for both single phase and three phase connections. The conductors proposed are rabbit and squirrel. Voltage drop across the end load centres is also within permissible range. The total project cost of this scheme is Rs. 5,124,887.00. The cost of mechanical works, electrical works, civil works and other expenses are Rs. 650,177.00, Rs. 1,650,495.00, Rs. 1,222,435.55 and Rs. 1,601,779.00 respectively. Cost per kW of the project is Rs. 465,899.00. Tariff for business use has been fixed Rs. 10.00 per unit (kWh). Tariff rate of 2.00 / watt / month is fixed for lighting purpose after conducting financial analysis.

Rumrunga Khola Micro Hydro Power System, Khaule VDC, Khotang v

ACRONYMS AND ABBREVIATIONS

ACSR : Aluminum Conductor Steel Reinforced

AEPC : Alternative Energy Promotion Centre

CM : Community Mobilization / Community Mobilizer

CO : Community Organizations

DDC : District Development Committee

DDC: DEES : District Development Committee: District Energy and

Environment Section

EA : Environmental Assessment

ELC : Electronic Load Controller

FG : Functional Group

HDPE : High Density Polyethylene Pipe

HH : Households

Km : Kilometer

kVA : Kilo Volt-Ampere

kW : Kilo Watt

lps : Litre per second

m : Metre

MCB : Miniature Circuit Breaker

MHP : Micro Hydro Project

MHS : Micro Hydro Power system

MIP : Medium Irrigation Project

mm : Milli Meter

NEA : Nepal Electricity Authority

PCC : Plain Cement Concrete

PTC : Positive Temperature Coefficient

RCC : Reinforced Cement Concrete

REDP : Rural Energy Development Programme

RPM : Revolution Per Minute

TPC : Total Project Cost

UNDP : United Nations Development Programme

VDC : Village Development Committee

WB : The World Bank

WECS : Water and Energy Commission Secretariat

Rumrunga Khola Micro Hydro Power System, Khaule VDC, Khotang vi

TABLE OF CONTENTS SALIENT FEATURES ........................................................................................................................................... i ACKNOWLEDGEMENT .................................................................................................................................... iii EXECUTIVE SUMMARY ................................................................................................................................... iv ACRONYMS AND ABBREVIATIONS .............................................................................................................. v TABLE OF CONTENTS ...................................................................................................................................... vi CHAPTER ONE ..................................................................................................................................................... 1

1.1 INTRODUCTION .......................................................................................................................................... 1 1.2 OBJECTIVES OF THE STUDY ....................................................................................................................... 1 1.3 METHODOLOGY ......................................................................................................................................... 2 1.4 SCOPE OF THE WORK AND LIMITATIONS .................................................................................................. 3

CHAPTER TWO .................................................................................................................................................... 4 2.1 LOCATION AND ACCESSIBILITY ................................................................................................................ 4 2.2 TOPOGRAPHY AND GEOGRAPHY ................................................................................................................ 4 2.3 CLIMATE AND VEGETATION ...................................................................................................................... 4 2.4 HYDROLOGY AND WATER USE RIGHT ........................................................................................................ 4 2.5 ENERGY POTENTIALS AND USES ............................................................................................................... 5 2.7 SOCIO ECONOMIC CONDITION AND AFFORDABILITY ................................................................................ 5 2.8 STATUS OF COMMUNITY MOBILIZATION PROCESS ................................................................................... 5 2.9 SCHEME LAYOUT, PLANT SIZE AND POWER REQUIREMENTS .................................................................. 6

CHAPTER FOUR ................................................................................................................................................... 7 3.1 CIVIL COMPONENTS .................................................................................................................................. 7 3.1.1 DIVERSION AND INTAKE STRUCTURE ................................................................................................... 7 3.1.2 GRAVEL TRAP CUM DESILTING BASIN ......................................................................................................... 7 3.1.3 HEADRACE CANAL/ SPILLWAY CANAL ................................................................................................ 7 3.1.4 FOREBAY CUM DESILTING BASIN ............................................................................................................... 7 3.1.5 PENSTOCK AND TYPE ............................................................................................................................ 8 3.1.6 ANCHOR BLOCK AND SUPPORT PIERS .................................................................................................. 8 3.2 MECHANICAL COMPONENTS ..................................................................................................................... 8 3.3 ELECTRICAL COMPONENTS ..................................................................................................................... 10

CHAPTER FOUR ................................................................................................................................................. 13 4. DETAILED COST ESTIMATES ....................................................................................................................... 13 4.1 METHODOLOGY ....................................................................................................................................... 13 4.2 COST OF CIVIL COMPONENTS ................................................................................................................. 13 4.3 COST OF ELECTRICAL COMPONENTS ...................................................................................................... 14 4.4 COST OF MECHANICAL COMPONENTS .................................................................................................... 15 4.5 TOOLS AND SPARE PARTS........................................................................................................................ 16 4.6 TRANSPORTATION AND PACKING ........................................................................................................... 16 4.7 INSTALLATION, TESTING & COMMISSIONING ......................................................................................... 16 4.8 CONTINGENCY ......................................................................................................................................... 16 4.9 SUMMARY OF PROJECT COST .................................................................................................................. 16

CHAPTER FIVE .................................................................................................................................................. 17 5.1 FINANCIAL MIX ....................................................................................................................................... 17 5.2 POTENTIAL END USE ............................................................................................................................... 17 5.3 EXPECTED ANNUAL REVENUES .............................................................................................................. 18 5.4 ESTIMATED ANNUAL EXPENSES ............................................................................................................. 18 5.5 DEBT SERVICE SCHEDULE....................................................................................................................... 19 5.6 FINANCIAL ANALYSIS ............................................................................................................................ 20 5.7 NET PRESENT VALUE (NPV), BENEFIT COST RATIO (B/C RATIO) AND INTERNAL RATE OF RETURN (IIR) 20 5.8 ECONOMIC ANALYSIS ............................................................................................................................. 20 5.8.1 INVESTMENT COST .............................................................................................................................. 20 5.8.2 OPERATION AND MAINTENANCE COST ............................................................................................... 20 5.8.3 ECONOMIC BENEFITS .......................................................................................................................... 21 5.8.3.1 BENEFITS FROM KEROSENE REPLACEMENT ....................................................................................... 21 5.8.3.2 BENEFITS FROM DIESEL REPLACEMENT ............................................................................................. 21 5.8.3.3 BENEFITS FROM DRY CELL BATTERY REPLACEMENT ........................................................................ 21 5.8.3.4 INCREMENTAL BENEFIT ...................................................................................................................... 21

CHAPTER SIX ..................................................................................................................................................... 22

Rumrunga Khola Micro Hydro Power System, Khaule VDC, Khotang vii

6.1 INSTITUTIONS .......................................................................................................................................... 22 6.2 SKILLED MANPOWER .............................................................................................................................. 22 6.3 FOLLOW UP, SUPERVISION AND REPORTING ........................................................................................... 22

CHAPTER SEVEN .............................................................................................................................................. 23 7. ENVIRONMENTAL ASPECTS OF THE MHS ................................................................................................... 23

CHAPTER EIGHT ............................................................................................................................................... 25 8. SOCIAL ASPECTS OF THE MHS ................................................................................................................... 25

CHAPTER NINE .................................................................................................................................................. 27 9. CONCLUSION AND RECOMMENDATION ....................................................................................................... 27 9.1 CONCLUSION ........................................................................................................................................... 27 9.2 RECOMMENDATIONS ............................................................................................................................... 27

CHAPTER TEN .................................................................................................................................................... 28 10. REFERENCES ......................................................................................................................................... 28 Annex 1: Detail feasibility Format Annex 2: Detail of costing Annex 3: Financial Analysis Annex 4: Hydrology and Electrical Details Annex 5: Drawings Annex 6: Photographs

Rumrunga Khola Micro Hydro Power System, Khaule VDC, Khotang 1

CHAPTER ONE 1. General 1.1 Introduction

Rural Energy Development Programme (REDP), started in 16 August 1996, with common goal of poverty alleviation by community mobilization. Since the beginning, it has worked in a number of energy related projects. Till now, REDP is working in collaboration with DDCs in 40 districts in Nepal. As a national Programme, the Rural Energy Development Programme (REDP) has a mandate for the integrated rural energy development in Nepal. It, thus, faces the challenge of demonstrating a process while implementing its Programme activities. An important point being considered is to maintain balance between the qualitative and quantitative numbers. For this, six thematic Programme activities- Organization Development, Capital Formation, Skill Enhancement, Technology Promotion, Environment Management and Vulnerable Community's Empowerment have been determined taking into account the overall context of a holistic approach towards sustainable rural energy system development. Recently, third phase of REDP is going on which has comprehensive plan for environmental friendly energy development. Four essential components of REDP paradigm are Equity, Empowerment, Productivity and Sustainability. Barriers will be eliminated for the involvement of people, both male and female, in various economical and social activities. Mandatory requirement to have one man and one woman from each household in the community organizations ensures the access to equal opportunity. The development will be brought by people and for them too. Villagers will participate fully through the community organizations for the decisions and processes that will shape their lives. The development will be sustained not only for the present generation but for the future generations as well. The energy funds, created at district and communities, ensure the replenishment of all forms of physical, human and environmental capital. Rural people will be able to increase their productivity through the participation in various employment oriented income generating enterprises. The power generated by the rural energy system stimulates the process.

1.2 Objectives of the Study The objectives of this study involve the detail inspection, design, and estimate of the following structures and the financial analysis of the whole system.

• Headworks (Diversion work in the stream and intake) • Headrace canal • Gravel trap cum desilting Basin • Forebay • Spillway Structures • Penstock pipe • Anchor block and support Pier • Powerhouse • Tailrace canal • Transmission and distribution system • End uses


1.3 Methodology 1.3.1 Detail Design Following methodology were undertaken for achieving the objectives of the study. With the help of the layout design, the consultant has prepared a detail design of the project. The detail design of the scheme comprises of the following:

• Complete professional design, with calculations on stability analysis, hydraulic design and optimization of various civil components with all necessary detailed drawings.

• Selections of types, with technical and economic optimization of elements like poles, penstock pipes and other accessories.

• Complete mechanical design.

• Complete design of electrical generation including selection of generators, its efficiency, and rating etc, selection of shortest possible route for transmission and distribution system and its design with detailed drawings.

• Complete specification of materials and components to be used for the construction of civil, mechanical and electrical parts of the project.

The detail drawings of the following structures have been prepared as per the following guidelines.

• General Layout: Showing all the components of the project in plan.

• Plans and necessary section of headworks, intake, gravel trap cum desilting basin,headrace canal,forebay, penstock alignment, anchor block, powerhouse, machine foundation and tailrace canal.

• General layout plan of electrical generation, transmission and distribution system networks.

1.3.2 Estimating and Economic Analysis

For the estimating and the economic analysis of the project, following methodology has been adopted.

• Collection of quotation of electrical, electronics, mechanical equipments and the line materials needed for the project from various manufactures and suppliers for their costing.

• Preparation of detail estimates of the project construction costs and annual operation and management cost based on approved designed and updated norms;

• Calculation of tariff rate for the electricity for uses, including all recommended end uses, so that the tariff comes under affordable range for all the users and the fund generated from the tariff becomes sufficient for the annual O/M costs and replacements costs of the project elements;

• Preparation of economic analysis showing economic parameters like IRR, NPV and Payback Period on the basis of cash flows in the scheme.

The detail survey of this schemes was made by the survey team in May 2009 with the support of technical and social team of DDC:DEES , Khotang.


1.4 Scope of the Work and Limitations The study has taken into consideration of the site selection at the appropriate place with less risk of damage the MHS structure and other components. Followings major listed activities were the limitations during the detail feasibility study of the project:

Over all site observation with community people to locate and select suitable sites.

Site survey and locate the different components e.g. intake, headrace canal, forebay tank, powerhouse, transmission and distribution system etc.

Explore the possibility of land stabilization measures.

Identify potential load and collect information required for forecasting present and

future demand.

Identify any other suitable measures for the future sustainability.

Calculation of power output and discussion of end use possibilities.

Identify environmental adverse impacts and find out issues related to water right and land use.

Discussion of possible socio economic and environmental problems associated with

the scheme.

Identify the groups of vulnerable people and collect related information to prepare vulnerable community development plan.

The potentialities of electric based cottage industries were identified based on the

discussions with the communities.

The socio-economic status of the community people was identified through the group discussion with community people.


CHAPTER TWO 2. Project Descriptions 2.1 Location and Accessibility Rumrunga Khola Micro Hydro scheme is located at Khaule VDC of Khotang in Sagarmatha Zone of Nepal. It is about 25 km from the nearest roadhead Beltare (Udayapur). The project site is located at an elevation of about 1009 m.

2.2 Topography and geography

This stream has a gentle slope across the longitudinal alignment. The site seems stable. The canal passes across the paddy field. So lined canal is proposed in this scheme. Clayey soil, soft and minor rocks are in the alignment. There is no problem of landslide at all in this site.

2.3 Climate and Vegetation

The project site lies in MIP region 3. The temperature varies from 0-15 degree. Rainfall occurs mostly during june to september. The climate there is suitable. Different types of vegetations are there and especially Sal, Simal, Chilaune, Katus , Pipal, Lakuri, Bamboo are the main trees. The land is mostly covered with vegetation in the upper belt as well as in lower belt

2.4 Hydrology and water use right

The discharge of the river was measured by the survey team in May 20, 2009. The combined discharge of the streams was found to be 79 lps. No rainfall was observed in the previous days. So, this discharge is taken as the dry flow for the hydrological analysis. 28 lps design discharge is taken for power generation. Table 01: Monthly average flow (MIP region 3)

S.N. Month River Discharge (lps)

1 January 102 2 February 71 3 March 52 4 April 37 5 May 71 6 June 118 7 July 512 8 August 945 9 September 787 10 October 394 11 November 189 12 December 141

A number of small streams are originating to arrive at Rumrunga. The catchment area is about 25 km2. Forest, cultivable land and the human settlements are the different patterns of catchment. There is no water right problem in downstream of the project site and the villagers have no objection regarding landuse.


2.5 Energy Potentials and Uses The main sources of energy are fuel wood , kerosene ,dry cell and Tuki Mara. All houses use firewood for household activities like cooking, space heating, water heating and animal food making. Similarly, almost all houses use kerosene lamp and lantern for lighting. There is possibility of promoting micro hydro in and around the project area.

Activities like cooking human food and animal food are mostly carried out with firewood. Lighting is another important activity performed in the household. Lighting hours per day in the settlements are about 6 -7 hours. However, the lighting hours in this project area has been provisioned 6 hours as per the suggestion and demand from the community members. The proposed Rumrunga MHS would supply electricity to the nearby villages. Average power demand per household has been taken as 91 watt in average. Moreover, the communities are interested to run mills for agro-processing and establish different end uses in future. 2.6 Existing Infrastructure The project area is back in infrastructural development There are some minor drinking water supply projects and some NGO and INGOs are working in this sector. Apart from this,DDC:DEES, Khotang has recently started its work there. They are supporting in social welfare and community mobilization process

2.7 Socio economic Condition and Affordability

There is not so much diversity of cultural group. Most of the people there are Brahmin and Chhetri. There are also some dalit families. Khotang is the origin of most of the Brahmins in Nepal. Major source of income of the people there is agriculture. Major agricultural products are maize, rice, wheat, millet, oil seed and potato. The agricultural production is not sufficient to meet the food demand of the village. So, significant households have their members inside and outside Nepal in search of job. Mostly people go to India for seasonal jobs. The villagers are adopting traditional method of agriculture. Some people are engaged in local businesses, and other similar jobs. People go to India for seasonal job. Hence, sources of income in the village are remittance from different countries, pension, teaching, unskilled labor and so on.

2.8 Status of Community Mobilization Process

Because of the conflict in the past, the role of REDP in the past was not so significant by overall output. But after the settlement of political crisis, community mobilization process is going on there and the villagers have also shown keen interest to develop micro hydro plant there. REDP is working as a part of DDC. Social mobilization process is going there with the support of SO and DDC:DEES Khotang with the six basic principles of community mobilization put forward by REDP viz. Organization Development, Capital Formation, Skill Enhancement, Technology Promotion, Environment Management and Women and VCs Empowerment the community people are supporting for the holistic development.

The formation of COs is going on. Some COs are conducting weekly savings and investment programmes. These COs have been successful in mobilizing their social capital in the weekly savings and have been investing to carry out various income generating activities.


Besides, these COs are carrying out various socio-economic activities in the community, especially through the mobilization of local resources as well as resources from different agencies.

This project is also the result of community mobilization process and its feedback. Apart from MHS, REDP is planning and working to promote other forms of rural energy so that the life standard of the villagers can be raised up.

2.9 Scheme Layout, Plant Size and Power Requirements

Gadi Gad is the source of discharge for this scheme. The discharge of the river was measured by the survey team in May 20, 2009 is found to be 79 lps. The stream carries sufficient discharge even in dry season. Design discharge is taken as 28 lps after making provision of 10 % for evaporation, flushing, seepage and 15% for downstream release. The gross head of the scheme is 64.00 m.

The output power of the scheme is: Power (P) = η x 9.81x Qm3/sec x Hg x g

= 0.55 x 0.028 x 64.00 x 9.81 = 11 kW

Where, Q = Discharge in m3/sec. = 0.028 Hg = Gross head in m = 64.00 η = Overall Efficiency of system (55%) g = acceleration due to gravity 9.81m/sec2


CHAPTER FOUR

3. Technical Aspects of the MHS 3.1 Civil Components

3.1.1 Diversion and Intake Structure The length of the weir is 7 m at Rumrunga intake and temporary weir consisting of gabion is proposed there. No other protection structures are proposed. Temporary weir is easy to construct and such structures along small water course are vulnerable to flooding during monsoon. Side intake is proposed to divert the discharge to the headrace canal. The orifice is designed to convey about 28 lps of water at normal condition. The size of orifice is 350 mm x 200 mm. More details are covered in drawing section.

3.1.2 Gravel Trap cum Desilting Basin

Gravel trap cum desilting basin is proposed at a chainage of 50 m from intake. The size of the tank is 6.0 m x 2.2 m x 1.48 m. The tank is designed to settle particles larger than 0.3 mm and will act as desilting basin as well. The bottom of the tank would have slope of 1:50 for the safe flow of sediment towards the flushing pipe.3.0 m long spillway is proposed for the overflow and 500 mm x 500 mm MS flushing gate is proposed for the flushing of sediments. The overflow will be discharged to the parent stream by 4 m long spillway canal. The tank will be flushed twice a day.

The bottom of the tank would be constructed of 100 mm PCC (1:2:4) cement mortar above 300 mm stone soling. The side of the tank would be constructed of stone masonry in 1:4 cement mortar. Coarse trashrack would stop the entry of large materials into the Headrace canal. More details are covered in drawing section.

3.1.3 Headrace Canal/ Spillway Canal

Total length of the headrace canal is 605 m. The canal passes across clayey soil and soft rock throughout the proposed alignment. The canal of 300 mm x 450 mm is proposed elsewhere. The headrace canal would be constructed of 100 mm PCC (1:2:4) and 300 mm stone soling at the foundation. The side wall would be constructed of stone masonry in 1:4 cement mortars. But plastered is not proposed to control the cost. The canal would covey sufficiently the design discharge. 90m spillway canal is proposed for forway, where only initial 40 m is proposed for lined and the remaining will be earthen.

3.1.4 Forebay cum Desilting Basin

Forebay cum desilting basin is proposed at 605 m chainage from the intake. The discharge in the forebay tank will be controlled by one and half meter spillway and 175 mm dia. MS flushing cone. The excess discharge will be passed to the existing small kholsi by 75 m long spillway canal. The effective dimension of the tank is 6.0 m x 2.2 m x 1.2 m. The tank is designed to settle particles greater than 0.3 mm diameter and sediment concentration taken in the design is 0.5 kg/m3. Flushing frequency of 12 hours is taken in the design.

The foundation of the tank would be constructed of 100 mm PCC (1:2:4) above 300 mm stone soling in foundation. The sidewall would be constructed of stone masonry in 1:4 cement sand mortar. Fine trashrack (1000 x 700 mm) inclined at 1:3 (H:V) is proposed to control the entry of logs and large sediments in the penstock. The discharge then would be


passed to powerhouse through 175 mm dia. MS penstock pipe. Structural details are presented in section.

3.1.5 Penstock and Type 175 mm dia., 3.5 mm thick upto 40 m and 4.0 mm thick for next 35 m and 4.5 mm thick for last 29 m long MS penstock pipe is proposed for this scheme. The penstock pipe would be connected by flange joints. The penstock pipe would carry 28 lps design discharge. Bitumen sheets are recommended in between penstock pipe and support piers for easy sliding. A minimum ground clearance of 175 mm from the bottom of penstock pipe is recommended to protect it from corrosion and to make maintenance work easy. Expansion joints that have minimum 50 mm expansion length have been proposed below each anchor block to allow thermal expansion on penstock due to changes in ambient temperature. An air vent system is installed ahead of penstock pipe inlet. The C-clamp of the support piers should not be tight. It should allow the longitudinal movement of the penstock. The penstock profile is shown in drawing section. 3.1.6 Anchor Block and Support Piers

The gross head of this project is 64.00 m. Five anchor blocks are proposed for this scheme. There will be twenty-seven support piers to support the penstock pipe. They are placed at an average distance of 4 m. The MS pipe would be exposed from the ground to minimum of 30 cm. The consecutive anchor blocks are placed at a distance of 30 m and 60 m respectively and at the bend of the pipe. More details are covered in drawing section.

3.1.7 Powerhouse

Powerhouse building would be constructed in the existing Paddy field. The land is a flat land and is at about 10 m above the high flood level in the stream. Powerhouse building is designed so that all the structures can be placed easily with some free space. The effective dimensions of the building at the base are 5.0 m x 4.0 m x 3.00 m. The wall of the powerhouse building would be constructed of 0.45 m thick stone masonry in mud mortar and local villagers will construct the powerhouse building themselves at reliable cost.

3.1.8 Tailrace

The length of the tailrace canal is 6 m. The earthen canal is proposed for discharge conveyance. The dimension of the canal would be as following. The size of the tailrace canal would be same as the typical canal. Bottom width : 300 mm Depth of water : 300 mm Free board : 150 mm Longitudinal slope : 1 in 200

3.2 Mechanical Components

3.2.1 Turbine and Base frame

For the available gross head of 64.00 meter and the design discharge 28 lps, a pelton turbine is proposed. The turbine should be equipped with manually operated flow regulating valve, case frame, with foundation bolts, high tensile steel metric nut & bolts, belt guard and pressure measure arrangement / gauge. The expected turbine shaft output at the expected design head and flow should be at least 15 kW. The construction and bearings should be


rated to withstand runaway speed of the turbine. Mechanical power would be transmitted by belt drive mechanism. This turbine is easily manufactured by a number of manufacturers in Nepal and has got wider application in a number of micro hydro projects. Specification of the proposed turbine Shaft Output Power : 15 kW Turbine RPM : 1500 Speed Increase Ratio : 1: 2

The final specification might be changed for the required output as the design standard of the manufacturers. The turbine of the above requirement can be manufactured in Nepal. Detail specification may also depend on the manufacturers as well and the turbine of the above equivalence is appropriate.

3.2.2 Penstock Pipe, Expansion Joints, Air Vents

175 mm 4.0 mm thick for 62.5 long in forebay side and 4.5 mm thick for remaining 60.5 m long in powerhouse side MS pipe is proposed for the penstock. Its length is 123 m. five expansion joints (175 mm ID) have been proposed to cover the expansion of about 50 mm at maximum. A 25 mm dia. air vent pipe is proposed for releasing the air inside the penstock.

3.2.3 Valves & Trashracks

Gear operated Butterfly valve of 175 mm dia. is proposed for this scheme. Coarse trashrack (700 mm x 500 mm) proposed in intake would consist of iron flats with section 5 x 40 mm2 @ 50 mm c/c distance and 10 mm bars for bracing. Fine Trash rack of length 1000 mm x 900 mm with iron plates of section 5x25 mm 2 @ 15 mm c/c distance with 8 mm bars for bracing is designed for the forebay. The slope of trash rack will be 1:3 for both the trash racks. The objective of the trash rack is to protect the whole system from logs and other large waterborne objects from entering the canal. The trash rack at penstock inlet protects leaves, twigs and small branches from entering the penstock.

3.2.4 Drive System

The function of the drive system is to transfer mechanical energy from the Turbine shaft to the generator rotor at recommended speed. Hence, the rated speed of the turbine is taken to be 750 rpm and the generators rated speed is 1500 rpm. So, the speed ratio is 1:2. For this, flat belt with flat pulley and nylon endless with belt guard is recommended after consulting with the manufacturing companies. The belt could get loose after some period of operation. A sliding mechanism should be incorporated in the generator base to tight the belt. Specification of the drive system No of belt: 1 ( Flat Belt)

Belt type: Habasit flat belt (A3 type)

Generator pulley: 300 mm

Turbine pulley: 600 mm

Speed Increase Ratio: 1:2


3.3 Electrical Components

3.3.1 Generator

Synchronous, brushless type of generator has been proposed in this scheme in the following specification. Capacity : 20 kVA Type : Brushless, Self Excited with AVR fitted No of Phases : 3 Generation Voltage : 400 V Connection : Star Frequency : 50 HZ Power Factor : 0.8 Efficiency : 85 % RPM : 1500 The generator has been sized considering the nature of the ELC, the power factor, altitude correction factor and temperature. 3.3.2 Governing System 11 kW ELC has been proposed for governing speed and frequency of electricity generated from the plant. Alarm mechanism will be incorporated in the ELC. 13 kW ballast unit is proposed to control the system load such that the generator always operates at full load. The ELC comprises of safety protection board, kWh meter, frequency meter, Volt meter and Ammeter. 3.3.3 Control and Protection System

For the connection of generator to the main panel board, ELC and Ballast, it is recommended to use 12 mm2 armored copper cable. 15 mm2 aluminum cables will be used to connect the powerhouse and the first pole of the transmission line. The rating of the Main switch should be 20 A, with good quality. 25 A TP MCCB will be used for the protection purpose. A set of monitoring meters is recommended for the protection of the System. Ammeter, Voltmeter, frequency meters are placed on the panel board for the measurement of main current ,generator voltage, frequency of the generation and voltage of the ballast. All the electrical components should be checked before the energization of the system. The necessary parts and tools should be kept in the powerhouse. Distribution boxes are proposed in each transformer stations.

3.3.4 Protection System

Seventeen earthing sets have been proposed in this scheme. There will be four earthing sets for the protection of two transformers. Two earthing sets are proposed for the protection of equipments inside the powerhouse an remaining earthing sets are proposed in transmission and distribution line. The size of the earthing plate would be minimum 600 mm x 600 mm x 3 mm. The earthing plates would be connected by 8 SWG copper wires. The earthing pit will be about 3 m deep and would be filled up by fine soil, salt and charcoal.


3.3.5 Transmission and Distribution System

Total length of transmission and distribution is 5855 m. ACSR conductors (squirrel and rabbit) are proposed. Total length of 3-phase and 1-phase line is 4615 m and 1240 m respectively. Total length of squirrel and rabbit conductors is 14160 m and 5085 m respectively. More details about transmission and distribution line are given in annex. Wooden Poles spacing for transmission and distribution line should not exceed 35m.

Pole Spacing Description S.N. Particular Spacing Pole Remarks

1 Low Tension (Single Phase) 35 m 6m (wooden) LT line 2 Low Tension (Three Phase) 35 m 7m (wooden) LT line

The load centres are ward no. 1,2,3,4 and 9 of Khaule VDC. More detail about the load centers, households is given in the drawing of transmission and distribution network in the drawing section of this report. Voltage drop in all the branches is below 10 %. 3.3.6.1 Poles and Accessories

Poles and Accessories

6 m poles are proposed for single phase, 7 m poles are proposed for three phase. Total number 6 m wooden poles and 7 m wooden poles are 38 and 140 respectively.

Type of poles and specifications:

Pole no and eraction Details S.N Description Wooden Pole Type

7m pole 6m pole 1 No of Pole 140 38 2 Burried length 1.2 m 1 m 3 Minimum Top Diameter 140 mm 125mm 4 Ground Clearance 4.6 m 4 m

3.3.6.2 Stay Wire Sets

Stay Sets are required in the starting, bends and the end of the transmission poles to confirm the stability of the poles. In this scheme 31 numbers of stay sets are proposed.

Lightening Arrestors and earthing

There are 20 numbers of lightening arrestors and they are proposed to cover an average distance of about 500 m.

Service Wire

6 mm2 concentric aluminum cables will be used as service wire. In average 30 m wire is proposed for each household and hence 3600 m service wire will be required.

Insulators

Shackle insulators different sizes are used for 0.4/0.23 kV distribution. Shackle insulators of small (93 mm x 93 mm, 200 gm) and medium (75 mm x 90 mm, 600 gm) are recommended for insulating conductors of varied sizes. Small size insulators will be used for the connection of squirrel and medium for rabbit conductors. Total number of small and medium insulators are 429 and 206 respectively.


Load Limiting Devices

Miniature circuit breaker is used as current limiting device and the specification is given below. Specification of Current Limiting Devices: Rating Current : 0.5 A Operation voltage : 400/230 V Rated short-Circuit capacity : 5 kA Insulation Voltage : 500V Operating Temperature : -5 0C to +400C No of Pole : Single No : 20


CHAPTER FOUR

4. Detailed Cost Estimates

4.1 Methodology

The Government of Nepal norms have been used for detail cost estimation and cost analysis of the proposed MHS. Likewise, district rates published by DDC, Khotang have also been considered while analyzing the rates. Since the proposed MHS is a community owned scheme, all the rates for the scheme have been worked out taking into consideration the availability of the local construction materials and labor. Further, the rate of the skilled and unskilled manpower has been taken based on the local practice in the community. The rate of the electromechanical equipment is taken from the current price quotation of the manufacture/installer. The costs are only indicative and close approximation, hence, should be used only for budgetary purpose. The costs of electromechanical equipment may vary according to change in the market price in the given time. All costs of the material are exclusive of VAT. Details of the rate analysis are presented in the annex of this report.

4.2 Cost of Civil Components

The cost of civil components of the project is Rs. 1,222,435.55. It is 23.85 % of the total project cost. The rate analysis is done on the basis of district rate and norms adopted in Nepal, taking into consideration the local rates and practices also. The total cost is divided into two parts i.e. local cost and non-local cost as shown in the table below.

Table 5: Summary Cost of Civil works

SN Description Local Cost Non Local Cost Total Cost

Civil:

1

Headworks (intake, weir and protection works)

20911.13 42926.94 63838.06

2 Headrace canal 299361.28 488172.86 787534.14

3 Gravel Trap cum Desilting Basin

25102.05 20707.21 45809.26

4 Forebay cum Desilting Basin 82561.44 39144.28 121705.72

5 Support piers 37537.02 15531.40 53068.42

6 Anchor blocks 7280.59 11529.75 18810.34

7 Powerhouse building 53319.11 23981.00 77300.11

8 Machine foundation 10780.13 32277.00 43057.13

9 Tailrace Canal 7872.03 3440.34 11312.37

Total 544724.77 677710.77 1222435.55

The non-local cost contains cost of all the components, which have to be bought from the market for civil work such as cement, rod, gabion wire etc. Local cost is the cost of the work, which is locally, carried out in the project area such as management of stone, sand, local labors, wood for powerhouse etc. VAT is added to final cost for all non local cost in civil components. The cost estimate is given in annex.


4.3 Cost of Electrical Components

The electrical component cost of the project is Rs 1,650,495.00. It is 32.21 % of the total project cost. It includes the cost of generator, governing system, control and protection system, transformer, earthing and transmission/distribution line. The costs are based upon quotations from the local suppliers. All the cost is non-local cost in this scheme. The details of cost estimation are given in the table below.

Table 6: Summary Cost of Electrical works

Electrical: Local Cost Non Local Cost Total 1 25 kVA, Synchronous generator, 3

phase, 50 HZ with genetor side MCCB 0

200,000.00 200,000.00

2 11 kW ELC, 3-Phase with alarm system

0 150,000.00

150,000.00

3 Ballast Tank , 13 kW 0 25,000.00

25,000.00

4 25 A, 3-P main swith and 25 A MCCB for protection

0 15,000.00

15,000.00

5 12 mm2 4 core cupper armored cable 0 22,500.00

22,500.00

6 15 mm2 4-core, armored cu cable for connection

0 15,000.00

15,000.00

7 Powerhouse wiring 0 5,000.00

5,000.00

10 0.5 A , MCB 0 96,000.00

96,000.00

11 Squirrel Conductor 0 311,520.00

311,520.00

12 Rabbit Conductor 0 83,925.00

83,925.00

13 Wiesel Conductor 0 389,400.00

389,400.00

14 Shackle insulator"Small Size", 200 gm 0 55,770.00

55,770.00

15 Schakle insulator "Medium Size",600 gm

0 30,900.00

30,900.00

19 Stay Sets 0 40,500.00

40,500.00

20 0.5 kV lightening arrestors 0 20,000.00

20,000.00

21 6 mm2 , concentiric al. Service wire 0 64,800.00

64,800.00

22 Earthing sets, 600x600x3 mm with 8 SWG wire sets in distribution

0 100,000.00

100,000.00

24 Wooden Poles: 6 m 4180.00 4,180.00

25 Wooden Poles: 7 m 21000.00 21,000.00

27 Bitumen paint 0 - -

Total 25180 1,625,315.00 1,650,495.00


4.4 Cost of Mechanical Components

The cost of the mechanical components of the project is Rs. 650,177.00. It is 12.70% of the total project cost. The cost includes the cost of turbine and its fitting, power transmission, penstock pipe and its fittings and trash rack etc. The costs are based upon quotation from the local manufactures/suppliers. The details of cost estimation are given in the table below. Table 7: Summary Cost of Mechanical works

Mechanical: Local Cost Non Local Cost Total 1 Pelton turbine, 15 kW Shaft Output 0 200,000.00

200,000.00 2 Turbine and Generator Baseframe 0 12,000.00

12,000.00 3 Flat Habasit Belt with belt guard 0 9,000.00

9,000.00 4 175 mm dia. MS Pipe, 4.0 mm thick 0 143,437.50

143,437.50 5 175 mm dia. MS Pipe, 4.50 mm thick 0 156,634.50

156,634.50 6 175 mm x 175 mm flushing gate 0 12,000.00

12,000.00 7 Bends 0 16,000.00

16,000.00 8 C-Clamp 0 5,600.00

5,600.00 9 Fine Trashrack (1000x700) mm 0 6,000.00

6,000.00 10 Coarse Trashrack (700x500) mm 0 5,000.00

5,000.00 11 Sluice gate at intake 0 5,000.00

5,000.00 12 Butter fly valve : 175 mm ID 0 15,000.00

15,000.00 13 Expansion joints: 175 mm dia. 0 60,000.00

60,000.00 14 Pressure Gauge 0 3,505.00

3,505.00 15 Air Vent pipe , 25 mm dia. 0 1,000.00

1,000.00

Total - 650,177.00

650,177.00


4.5 Tools and Spare parts

Tools and Spare parts amounting to Rs. 38,000.00 are required for the project. It is 0.74 % of the total project cost.

Table 8: List of Tools and Spare Parts

Tools and Spare parts Local Cost Non Local Cost Total 1 Electromechanical tools,

Slide wrench, screw driver, line tester, grease gun , different files, chisel hammer, wire steeper and Spareparts etc.

38000 38000

Total 0 38000 38000 4.6 Transportation and Packing

Total transportation cost is Rs. 534,536.00. It is 10.4% of total project cost. The remoteness of the project site has increased the transportation cost. But the transportation creates a kind of local opportunity as well and poor people can contribute their share by involving in transportation of construction material and equipment as well.

4.7 Installation, Testing & Commissioning

Installation, testing and commissioning cost of the project is proposed, as Rs. 320,000.00. It is 6.24 % of the total project cost.

4.8 Contingency

The contingency amount is proposed Rs. 244,042.24 which is 5.0 % of sub total project cost and 4.8 % of total cost. 4.9 Summary of Project Cost Summary of project Cost

S.N. Description of works Local Cost

Non local Cost Amount

% of total

cost 1 Civil Works 544,725 677,711 1,222,436 23.85 2 Electrical Works 25,180 1,625,315 1,650,495 32.21 3 Mechanical Works 0 650,177 650,177 12.69 4 Tools & Spare Parts 0 38,000 38,000 0.74 5 Transportation 267268 267,268 534,536 10.43

6 Installation & Commissioning 320,000 320,000 6.24

Sub Total 837,173 3,578,471 4,415,644 86.16 VAT 13 % in non-local part 0 465,201 465,201 9.08

Sub Total with VAT 837,173 4,043,672 4,880,845 Contigencies 5% 41,859 202,184 244,042 4.76

Total Project Cost 879,031 4,245,856 5,124,887 100.00 Cost Per kW 79,912 385,987 465,899

Cost per households 7,325 35,382 42,707 Subsidy per households 11458


CHAPTER FIVE 5. Financial and Economical Aspects of the MHS

The financial and economic analysis of the scheme indicates the validity of the project in terms of its capital cost. It focuses on the sources of funding for the project, annual income, annual expenditure and financial indicators of the project such as Net Present Value, Benefit Cost Ratio and Internal Rate of Return on the investment. The financial and economic analysis of the proposed MHS is conducted as per the guidelines prepared by AEPC / REDP and the analysis shows that the proposed MHS is viable both financially and economically.

5.1 Financial Mix

For the implementation of this MHS, major sources of finance will be provided by AEPC/REDP in the form of subsidy. As per the government's subsidy policy Rs. 125,000.00 will be received as subsidy. Hence, subsidy for 11 kW capacity MHS becomes Rs. 1,457,500.00. Similarly, the other source of finance will be DDC and VDC with 5% contribution each. CO members of beneficiary area have already committed to provide voluntary labor contributions for transportation of construction materials and electromechanical equipment as well as for the construction of canal, powerhouse and other necessary civil works. Apart from this, the villagers are proposed to collect cash as well. The community should manage the amount in item no. 4 ,5 and 6 in the table below. This sum includes the local labour cost, local cash contribution and bank loan. In the present analysis, all the cost is taken as bank loan and hence the bank loan will be Rs. 1,094,100.00. More detail is presented in the table below.

Table10: Financial Mix

S.N. Source Amount (Rs)

Share (%) Remarks

1 AEPC/REDP Subsidy 1,457,500 28.44 125000 / kW 2 VDC Support 512,489 10.00 10 % of total cost 3 DDC Support 256,244 5.00 5% of total cost 4 Local Labour & Material 879,031 17.15

Item 4,5 and 6 should be collected

by community 5 Community Cash Contribution 240,000 4.68

6 Bank Loan by Community 1,779,623 34.73

7 Others 0 0.00 Total Source of Finance 5124887 100.00

5.2 Potential End Use

There is greater potential for the end use of electricity. There is need and demand of alternative energy because of lack of reliable form of energy. They are using local woods as the major source of energy. Some entrepreneurs have running diesel mills in the village with exorbitant cost of agro processing. The villagers have shown keen interest to run different agro processing mills, bakery and rural carpentry in the village. There might also be the possibility of setting up other end uses like computer training centre and photo studio in near future. Demand of energy is increasing over time. Depending upon the interest of the different entrepreneurs and the demand of the villagers agro processing mills, computer centre and rural carpentry is proposed. More detail about end use is given in the table below.


Table 11: List of End Use Demand Total annual income expected is Rs. 915,000.00. The exact location of these end uses has not been made and the final decision about it will be made by the MHFG. All the units are electrically driven. People are interested for the establishment of these end uses and it is expected that these will be run after house holds lighting.

5.3 Expected Annual Revenues

In the case of this MHS, practically tariff is fixed in terms of watts per month for lighting system. However, for milling and industrial purposes tariff is designed in unit basis. The tariff is calculated by considering following points.

Demand for the services

Purchasing capacity of the consumer

Tariff of Nepal Electricity Authority

Income from End uses

Total Project cost

Operating cost of the scheme

Table 12: Proposed tariff

Service Tariff

Lightening Rs 2.00 / Watt / Month

End-use Rs 10.0 per kWh

Tariff needs to be review and revised periodically as the price level changes over time in the economy. The expected annual revenue of the MHS is as follows. Annual Income from Lighting

The annual income from lighting is as follows.

Table 13: The annual income from lighting

S.N. Households Average power Tariff Rs/kwh Total income in NRs./month

1 120 91 watt 2.00 264,000.00

Hence, total income from the scheme annually is Rs. 264,000.00.

5.4 Estimated Annual Expenses The total annual expense of the MHS is NRs. 255,747.00. More detail is presented below.


Table 14: The total annual expenses

S.N

.

Com

pone

nt

No

Mon

thly

Sa

lary

/

Exp

ense

s

Mon

th

Rem

arks

1 MH Manager/0perator 2 3500.00 12 84000

2 Repair & Maintenance LS 1537473% of Project Cost

3 Office Expense LS 1000.00 12 12000 4 Miscellaneous LS 500.00 12 6000

Total 255747 5.5 Debt Service Schedule

The debt service schedule for the annuity payment of bank loan is presented below. Table 15: Debt service schedule

S. No. Debt Service Schedule

Year

0 1 2 3 4 5

1 Annuity payment (Rs) 493685 493685 493685 493685 493685

2 Principal payment(Rs) 280130 313745 351395 393562 440790

3 Interest payment at 12% (Rs) 213555 179939 142290 100122 52895

4 Principal remaining (Rs) 1,779,623 1499493 1185747 834352 440790 0

Table 16: Annual Profit S.No. Description Amount,

Rs Remarks

1 Annuity Payment (Rs) 493685 12 % annual Interest & loan maturity period 5 years

2 Depreciation (Rs) 155659 Straight line Calculation, (Total project cost - Subsidy-loan) / 15

3 Recuring Annual Cost (Rs) 255747 3% and miscellaneous

4 Total Annual Cost (Rs) 905090

5 Net Annual Profit (Rs) 9910 Total income - Total annual cost

6 Dividend to DDC (Rs) 495 5 % dividend as % of investment

7 Dividend to VDC (Rs) 991 10.0 % dividend as % of investment 8 Debt service coverage ratio 1.02

The sources of revenues in this MHS are end uses and the household lighting as specified in the previous tables. More detail is given in the detail format.


5.6 Financial Analysis

The financial analysis of the scheme includes the financial status of the MHS. It focuses on the source of funding for the project, annual income, annual loss and financial indicator of the project such as Net Present Value, Benefit Cost Ratio and Internal Rate of Return.

The financial analysis of the MHS as per the guidelines prepared by REDP has been presented in the following pages. Value Added Tax (VAT) is also included during this analysis and the analysis has shown that the proposed MHS is financially viable and economically affordable for the local people of the target area.

5.7 Net Present Value (NPV), Benefit Cost Ratio (B/C ratio) and Internal Rate of Return (IIR)

With the estimated income and expenditure mentioned in topics 4.5 and 4.6 and considering standard discount rate of 10 % and economic life of the plant to be 15 years, the NPV of the MHS is found to be Rs. 1,346,947.00. Similarly IRR is found to be 16.0 %, B/C ratio 1.24 and Payback period of about 5.56 years. The financial analysis has been done considering the total project cost excluding the subsidy amount. The financial analysis sheet is attached in annex.

5.8 Economic Analysis

The economic analysis is carried out in order to assess the economic viability of the project. Various tools have been adopted to evaluate the economic viability of the proposed MHS. They are Economic Internal Rate of Return (EIRR), Net present Value (NPV), and payback period. In order to carry out the analysis, the assessment of all kinds of costs incurred and benefits brought about by the project in the society as a whole is made. As the scope of the economic cost and benefit is a broad area, in this project some assumption have been made in order to make the assessment of the economic costs and benefit from the proposed MHS simple and precise.

5.8.1 Investment cost The total investment cost has been calculated after deducting all the applicable VAT and taxes from the total project cost. In order to calculate the applicable VAT and taxes in a more simple way that they have been considered as 13 % of the cost of Electro-mechanical equipments and non local cost in civil components. Investment cost is calculated as follow. Investment cost = Total project cost - VAT and Taxes

= Rs. 5,124,887.00- Rs. 465,201.20 = Rs. 4,659,686.00 5.8.2 Operation and Maintenance Cost

In line with the document of the World Bank, Project Appraisal Document, the cost of system administration, management, operation and maintenance of the MHS have been considered as 3 % of the total project cost. Thus the operation and maintenance cost of this project is Rs. 153,747.00.


5.8.3 Economic Benefits

The economic benefits are those benefits, which are brought about by the MHS in the society. The assessment of economic benefits is a complex task it covers a wide range of benefits that include quantifiable and non-quantifiable as well as incremental and non-incremental benefits based on existing level of energy uses. Further the benefits could be direct as well as indirect also. In our case, in order to make the calculation simple as mentioned above, the calculation if EIRR includes only the quantifiable non-incremental benefits.

The benefits have been assessed based on the avoided cost of diesel generation in the case of supply for productive end uses and the avoided cost of kerosene uses in the case of supply to households for lighting purpose. Further, the avoided cost of the dry cell use for household purposes has also been taken into consideration.

5.8.3.1 Benefits from Kerosene Replacement

In the proposed MHS area the average use of kerosene in the locality is 2.0 liters per household per month. After the generation of the electricity it is assumed that the community would require only 1 liter of kerosene per household per month. Hence, two litre of kerosene will be saved per household per month. As the total beneficiary household is 120, so total of 2880 liters of kerosene will be replaced per year. At the rate of Rs.115 per liter in the community, annually Rs. 331,200.00 amount will be saved.

5.8.3.2 Benefits from Diesel Replacement

It is envisioned that two agro-processing mill each will save one and half litre of diesel per operating hour in average. Apart from this, saw mill is also expected to save one litre of diesel per operating hour. So, annually 5100 litre diesel equivalent to Rs. 637,500.00 will be saved with unit cost of NRs. 125 per litre.

5.8.3.3 Benefits from Dry Cell battery Replacement

It is found that the beneficiary households consume about two and half pairs of dry cell batteries on an average, per month. It is estimated that on an average, one and half pair of dry cell batteries per household per month will be saved due to the electricity facility. As the total beneficiary household is 120, so total of 2880 pair of dry cell batteries will be replaced per year. As the price of dry cells is Rs.50 per pair in the local market, it is assessed that the benefit from the replacement of dry cells is Rs.144,000.00 per year.

5.8.3.4 Incremental Benefit

The benefits, which are not included in the analysis but could be mentioned, are the incremental benefits. The incremental benefits are the benefits, which come from the increase modern from the electricity uses due to the availability in lower prices. The benefit includes the direct increases in the communities' education through the advent of electricity in the locality. There could be indirect educational benefits due to the availability of more reading hours and better quality lighting facility. Further, there could be other electricity uses such as media viz. TV, Radio and Computer operation etc. The community will have the opportunity to get engaged in the income generating activities, especially during evening hours and dawn. There could be health benefits due to the reduction in air pollution resulting from kerosene uses and reduction in drudgery due to the promotion of various end-use appliances. There could be also being tremendous reduction in carbon emissions from diesel and kerosene replacements.


CHAPTER SIX

6. Operation and Management Aspects of the MHS 6.1 Institutions

There are a number of community organizations working in this area. DDC: DEES is working since the first phase of REDP. Until the completion of the project, the overall operation and management will be made by DDC: DEES. But after the completion of the project, the project will by handled by the local people themselves. Now the community mobilization process is going on and a number of COs have been formed in the area. There are 18 male and 18 m female COs each comprising of about 25-30 members. These groups will be responsible for carrying out saving credit schemes in each community. The organizational chart of the proposed scheme will be as following. Chart 1: Organizational Structure 6.2 Skilled Manpower

There is lack of skilled manpower in the village. The villagers have no so much knowledge about the proper operation of the MHS. So, DDC: DEES is creating awareness about the development of skilled manpower. DDC: DEES will provide appropriate trainings for both Managers and Operators before the starting of the project. By doing so, the villagers can run the projects themselves.

6.3 Follow up, Supervision and Reporting

DDC: DEES has formed 18 male and 18 female groups in the project area. In each group, there would be about 20 members. They will call the weekly meetings and have started to collect money. The formation of MHFG is in progress. They will call the public meeting with participation of key personals from male and female groups, MHFG, DDC: DEES and project related organizations. The overall activities is supervised and reported as per the conclusion of the mass meeting.

Rumrunga Micro Hydro Scheme

Rumrunga Micro Hydro Functional Group

Rumrunga Micro Hydro Plant Manager

Rumrunga Micro Hydro Plant Operator


CHAPTER SEVEN 7. Environmental Aspects of the MHS

Generally, environmental problems in Nepal are the result of mismanagement of natural resources evolved from the lack of integration of environmental considerations in the development process. Integration of environmental assessment in the development of MH from the planning stage helps identify possible adverse impacts and their mitigation measures to avoid or minimize the adverse consequences in the micro level, which in the long run helps to make the MH scheme cost effective as well sustainable. Realizing this, a separate EIA study of the project has been conducted by DDC: DEES Khotang and the report are prepared as Vol. II of the DPR of the Rumrunga MHS.

After implementation of the MHS, the social situations, community facilities, employment opportunities, land price and markets for local produce will increase considerably. There will not be considerable biological impacts such as effects on vegetation and forest resources, wild life, crops, aquatic life etc. The implementation of the project will not cause significant physical impacts such as floods, landslides, deterioration of water and soil qualities. However, minor impacts such as loss of some agriculture lands, cutting of some trees etc. will occur in the project area. Preventive measures such as awareness creation and tree plantation are suggested to reduce potential adverse impacts. Especially, micro watershed development and tree plantation are recommended in the peripheral areas of the canal, intake, penstock alignment, overflow canal, tailrace canal etc.

In general, the MHS under consideration is small in magnitude and does not require a huge and costly mitigation measures. The intake does not need huge excavation and cutting of trees. More than 15% of the flow will be in the stream even in the dry season, which will help in preserving the flora and aquatic life in the downstream areas. Similarly, the headrace canal with lined will not be any risk of sliding the canal due to seepage and spill of water during water conveyance. The headrace alignment seems stable and fore bay area is also located in the stable area. Hence there is no risk of erosion. The powerhouse is located at the left bank of the small stream and the tail water will be diverted to the stream through a lined canal. There will not be heavy excavations and tree cuttings for civil constructions. Hence, there will not be risk of flooding and erosion.

Environmental impact identification and means of mitigation were also assessed. The environmental impacts as dewatering of riverbed from the intake, potential ground or soil erosion caused by flushing flows discharge from sedimentation basins and overflow of the fore bay, potential ground instability caused by canal construction and leakage from canal, cutting of trees for poles were considered. Likewise appropriate means of mitigation such as maintenance of at least 15 % residual flow in the dewatering section of the river for the aquatic life, cutting of forest cover are also considered.

This project might have impacts on forestation. Only 160 wooden poles will be required for this scheme and it is suggested to collect one pole for each four households. In such a way, the adverse impact can be mitigated. The headrace alignment also does not destroy the trees.


Apart from this, the community mobilization process has motivated the villagers to be engaged in community plantations. So, it will have positive impact in the environment.

Thus, the project does not hamper any household in the project area and does not disturb significant cultivated lands. Since the excavations for the project is minimum, there is no possibility of natural disturbances such as landslide, erosion and flooding. Furthermore, as per the mitigation measures, REDP supports the Environment and Natural Resource Management (ENRM) activities like nursery establishment, bioengineering works, tree, fruit and fodder plantations, training to nursery naike, environment campaigns etc. in the project area. This will be compensated by environmental benefits due to replacements of kerosene and diesel, and other direct and indirect environmental and social benefits in the project area. As per the United Nations Framework for Conventional Climate Change (UNFCCC) guidelines, environmental benefits due to replacement of kerosene by micro hydro electricity are around 0.9 kg of carbon/kWh electricity consumed. So, the micro hydro directly has positive role towards the long term environmental protection thereby supporting global agenda to reduce carbon emissions.


CHAPTER EIGHT

8. Social Aspects of the MHS

Micro-hydro is generally a clean source of energy without adverse impact on the environment. However, the sustainability of micro-hydro schemes depends much not only on technical, management and financial aspects but on social aspects also. The past experience on development suggests that people's access to public goods (such as water and other natural resources) differs significantly depending on their social identity, in terms of caste, ethnicity and gender and on their economic status and location (urban/rural/remote rural). Because policies have been insensitive to the social realities of Nepal, certain groups have been excluded from the mainstream of the development process. Therefore, it is essential to undertake social assessment of proposed scheme in order to assess existing social considerations of the locality, determine possible impacts, plan mitigation measures and implement various social development activities. The social assessment of the proposed MHS area revealed some degree of social exclusion based on caste and ethnicity. It is recommended that serious attention should be given their effective participation in the programme to include a specific focus on social inclusion.

The survey team met with focus groups of the MHS beneficiaries to document any adverse impacts experienced during community mobilization process and consulted with these groups on their concerns about possible adverse impacts. During these consultations, focus group discussions and individual interviews were carried out. Based on these discussions, the survey team learned that the adverse impacts experienced about the MHS was mainly indirect and had mostly to do with lack of cultural sensitivity.

The land needed for canal construction and for constructing other civil structures are already committed by the villagers and it will be handled by MHFG. All the concerned landowners are well off and don’t have many uses of the lands to be used for MH construction at present and they have agreed to provide the lands free of cost. There is also no problem in powerhouse land. Thus there is no issue related to water right conflict and land acquisition at present and it's unlikely that any issue will arise in future related to these. The existing mill in the project can be replaced after the successful implementation of the scheme by giving chance of running agro processing mill to the current mill owner. Moreover, the MHFG has been already initiated to register at the District Water Resource Committee,in order to avoid the possible conflict regarding the use of water in future, even though there is not any sign of conflict on water sharing practice at present.

The project requires some cash contribution. The required collateral for bank loan process i.e. land certificate will be collected from elite households in consensus decision and there is not any problem for other vulnerable communities regarding this. The cash collection from very poor households will be made mandatory and this should be managed by the MHFG. The community will be strongly encouraged to develop mechanisms to subsidize the contribution from the poor groups. Likewise, there are very few opportunities for the poor VC members for economical upliftment. The trained manpower is very less in the MHS area. The provision of end use development with the MHS and internal saving and credit facilities in the COs will


help for economical upliftment of the community. Similarly, the programme will have positive impacts on health and sanitation through environment awareness programme. The communities will encouraged to make, ICS, latrines and waste disposal site and the provision of additional REDP subsidy for toilet attached biogas will be supportive for the promotion of biogas in the MHS area.

It is observed that the community may need additional support to find creative ways to reduce the dominance of the elite and encourage more democratic behavior in the MHFG/WC. The successful implementation of VCs concerns activities will be performed by respective community organizations with the help of support organization and the technical input of DDC: DEES.


CHAPTER NINE

9. Conclusion and Recommendation

9.1 Conclusion

From the preceding analyses and discussions, it is found out that the project is technically and financially feasible. The implementation of the project will provide high quality lighting for household purpose as well as reliable and environmentally safe power for end-use applications. An installed capacity of the MHS is 11 kW comprising a generating unit cross flow turbine, operating at a rated gross head of 64.00 m. and design flow of 28 lps. The financial analysis shows that the NPV of the project is Rs. 1,346,947.00 (10 % discount rate) with payback period 5.56 years, B/C ratio 1.24 and IRR 16.0%. Thus the project should be considered beneficial from all aspects viz. financially, environmentally, socially and economically. The total cost per kW of the proposed project is Rs. 465,899.00

9.2 Recommendations

The proposed power scheme of 11 kW is recommended for the implementation. During installation, it is highly recommended to involve only experienced parties or technicians. As REDP has rich institutional experiences in the field Micro Hydro development, it is hoped that they will also carry out the monitoring the site conditions and other probable implications of the project implementation. The project is believed to be very successful with the assistance and supervision of reputed organizations like REDP and the DDC: DEES.

It is advised that the Rumrunga MHFG should make a written agreement among the power users regarding the use of water and land also in the case of private land and should receive written approval from the VDC for the public land. It is also recommended to organize technical training for operators and managers before commissioning of the project for the sustainable operation of the scheme.

Bio engineering protection measures is recommended both upstream and downstream of the major civil structures with strengthens the capacity of soil mass.

It is highly appreciating that the REDP provides separate support in the form of seed grant for the promotion of end-uses Rs 10,000 per kW. Further, the programme also supports the community people to enhance their entrepreneurial skills, which have been found quite instrumental in ensuring the financial sustainability of the MH scheme. Similarly, necessary supports should be provided for environment conservation activities and bioengineering works, plantation and construction of mini watershed within project areas. The ENRM activities are necessary to minimize the adverse environmental effects from civil construction works. It is also encouraging to note that the REDP supports the communities in these initiatives to ensure the environmental sustainability.


CHAPTER TEN 10. REFERENCES

Canadian International Water and Energy Consultants, Master Plan for Irrigation

Development in Nepal, Cycle-2 Report, NMEN,1980

Civil Works Guidelines for Micro-Hydropower in Nepal

(International Technology 1999)

DHM Climatological Records of Nepal (1987-1998)

Environmental Management Guidelines - REDP, 1997

Financial Guide Line-ITDG, Nepal

Micro-Hydro Design Manual - Adam Harvey, 1983

Micro Hydro Sources Book - NRECS, 1986

Report on Galkot MHP, Baglung -BPC, Butwal - 1997

Statistical Book Nepal - Central Bureau of Statistics, 1998

REDP Publications

Micro Hydro Implementation Guidelines

Technical Guidelines for Installation of MH Schemes

Community Mobilization Guideline

Environment Management Guideline

District Energy Planning and Management Guidelines

Manager’s Manual

Offer of the Millennium

report rumrunga mhs 20120607113351

Documents

dry cell batteries

adverse impacts

income generating

community

shown keen

total beneficiary

long spillway

benefit cost