Presentation of WAPDA - Planning Commission

Presentation on
Hydel Business Plans
6 October 2010 1

Presentation scheme
• EXISTING HYDEL FACILITIES
• REHABILITATION PLANS
• EXPANSION SO PLANS
• FINANCIAL PLANS
6 October 2010 2

EXISTING HYDEL FACILITIES
6 October 2010 3

EXISTING WAPDA HYDEL POWER STATIONS (6444.0 MW)
STATION
TARBELA
GHAZI
BAROTHA
WATER WAY UNITS CAPACITY OF INSTALLED DATE OF
(River/Canal) NO. EACH UNIT CAPACITY COMMISSIONING
(MW) (MW)
INDUS 1~4 175 700 Jul. 1977
5~8
(Reservoir) 175 700 Dec. 1982
9~10 175 350 Apr. 1985
11~14 432 1728 Feb. 1993
TOTAL 3478
INDUS 1 290 290 Jul. 2003
(D/S Tarbela) 2 290 290 Aug. 2003
3 290 290 Oct. 2003
4 290 290 Dec. 2003
5 290 290 Mar. 2004
TOTAL 1450
MANGLA
WARSAK
CHASHMA
JHELUM
1~4
100 400 1967/1969
(Reservoir) 5~6 100 200 Mar. 1974
7~8
100 200 1981
9~10 100 200 1993-1994
TOTAL 1000
KABUL 1~4 40 160 Jul. 1960
(Reservoir) 5~6 41.48 82.96 Mar. 1981
TOTAL 242.96
INDUS 1 23 23 May. 2001
(Chashma 2 23 23 Apr. 2001
Barrage) 3 23 23 Apr. 2001
4 23 23 Mar. 2001
5 23 23 Mar. 2001
6 23 23 Feb. 2001
7 23 23 Dec. 2000
8 23 23 Dec. 2000
TOTAL 184
6 October 2010 4

EXISTING WAPDA SMALL HYDEL POWER STATIONS
WATER WAY UNITS CAPACITY OF INSTALLED DATE OF
STATION
(River/Canal) NO. EACH UNIT CAPACITY COMMISSIONING
(MW) (MW)
RASUL
UJC* 1~2 11 22 Jul. 1952
DARGAI
NANDIPUR
SHADIWAL
CHICHOKI
K/GARHI
RENALA
CHITRAL
Swat** 1~4 5 20 Dec. 1952
UCC*** 1~3 4.6 13.8 Mar. 1963
UJC* 1~2 6.75 13.5 Jan. 1961
UCC*** 1~3 44 4.4 13.2 Aug. 1959
KUCHKOT**** 1~4 1 4 Feb. 1958
LBDC***** 1~5 0.22 1.1 Mar. 1925
LUDKO 1~2 0.3 1.0 1975
3~4 0.2 1982
Total
6,444
* : Upper Jhelum Canal from River Jhelum
** : Swat Canal from River Swat
*** : Upper Chenab Canal from River Chenab
**** : Kachkot Canal from River Kurram
***** : Lower Bari Doab Canal from Balloki Headworks on River Ravi
NOTE: The Jabban Hydel Pow er Station has been de-commissioned due to fire incident on 12-11-2006 and its capacit
been included in total installed capacity of WAPDA Hydro Electric.
6 October 2010 5

REHABILITATION PLANS
6 October 2010 6

REHABILITATION OF HYDEL POWER STATIONS
Aging E&M equipment of Hydel Power Plants are being
rehabilitated. Rehabilitation / Up‐gradation required for the
following power plants;
• Jabban Rehabilitation Project (Unit 1‐4, each of 5.5 MW) Approved
Cost Rs. 3734 Million. (Implementation underway)
• Mangla Hydel Power Station (Unit 1‐10, each of 100 MW).
Estimated Cost – US$ 500 Million. (Consultants approved)
• Warsak Hydel Power station (Unit 1‐4, each of 40 MW).
Estimated Cost – US$ 300 Million. (Consultant being approved)
• Tarbela Hydel Power Station (Unit 1,3&4, each of 175 MW
Estimated Cost – US$ 16.5 Million. (Implementation of
rehabilitation is underway)
6 October 2010 7

EXPANSION PLANS
6 October 2010 8

PAKISTAN’S HYDROPOWER POTENTIAL
(RIVERWISE SUMMARY)
S# River/ Tributary Power (MW)
1. Indus River 37780
2. Tributaries of Indus (Northern Areas) & NWFP 6006
Sub Total (1+2) 43786
3. Jhelum River 3143
4. Kunhar River 1435
5. Neelum River & its Tributaries 1844
6. Poonch River 397
Sub Total (3+4+5+6) 6819
7. Swat River & its Tributaries 2371
8. Chitral River & its Tributaries 2282
Sub Total (7+8) 4653
9. Schemes below 50 MW on Tributaries 1055
10. Schemes below 50 MW on Canals 408
Sub Total (9+10) 1463
11. Small & Medium Dams 52
TOTAL 56773
6 October 2010 9
9

HYDROPOWER PROJECTS UNDER IMPLEMENTATION
PC-I Cost Gen Capty
Progress/
Sr # Name of Project Location (Rs. Billion) (MW) Donors/ lenders Completion
Addl 644
GOP funding/
Substantially
1 Mangla Dam Raising Mirpur, AJK 62.558 GWh WAPDA bonds completed
GOP funding/ Tariff
2 Gomal Zam Dam FATA 12.829 17.4 financing 59%/ (Jan 2011)
3 Satpara Dam Gilgit Baltistan 4.397 15.8 GOP funding 87% (Oct 2010)
4 Khan Khwar Besham, KPK
IDB/ WAPDA Bond,
5.363 72.0 Tariff financing 94% (Oct/2010)
IDB/ WAPDA Bond,
5 Duber Khwar Kohistan, KPK 9.754 130.0 Tariff financing 74%(Jan/2011)
6 Allai Khwar Battagram, KPK
IDB/ WAPDA Bond,
8.578 121.0 Tariff financing 51% (10/2011)
7 Jinnah Jinnah Barrage
Chinese Supplier's
7.680 96.0 Credit/ Tariff Fin 94% (6/2011)
8 Jabban Rehabilitation Malakand KPK 3.734 22.0 afd France/ Tariff Fin 5% (June 2013)
Surcharge/ Middle
9 Neelum Jhelum AJK 130.000000 969.0 East donors/ CEXIM 13% (10/2016)
Total 241.159 1443.2
6 October 2010 10

Future Hydel Projects to be undertaken
Sr # Name of Project River Location
Capacity
(MW)
Annual
NEO
(GWh)
Estimated Cost (US$ M)
LCC FCC Total
Completion
period
1 Diamer Basha Dam Indus Chilas GB 4,500 18,000 7,266.4 3,911.8 11,178.2 2010-20
2 Tarbela 4th Extension Indus Tarbela, KPK 960 1,600 - 700.0 700.0 2011-15
3 Kurram Tangi Kurram North Waziristan 83 350 148.0 67.1 215.1 2010-14
4 Golan Gol Mastuj Chitral, KPK 106 436 55.0 33.0 87.9 2010-1414
5 Keyal Khwar Indus Kohistan KPK 122 479 83.0 97.0 180.0 2012-16
6 Phandar Ghizar Gilgit Gg Baltistan sa 80 350 40.0 00 30.0 0 70.0 00 2011-15
7 Munda Swat KPK 740 2,400 537.0 612.0 1,149.0 2011-17
8 Dasu Indus Gilgit Baltistan 4,000 21,215 4,118.0 4,668.0 8,786.0 2012-20
9 Bunji Indus Gilgit Baltistan 5,400 20,750 7,905.0 4,237.0 12,142.0 2015-24
6 October 2010 11

FINANCIAL PLANS
6 October 2010 12

Income statement
Unaudited Audited
[Thous.Rs]
For the year ended on June 30 2010 2009
Sales 29,092,610 29,013,170
Cost of fElectricity i 9,151,587 587 9,091,051
051
Gross profit 19,941,023 19,922,119
Operating Expenses 501,728 1,119,174
Operating Profit 19,439,295 18,802,945
Other Income 4,064,259 3,111,951
Financial Cost 13,161,880 6,120,792
Net profit for the year 10,341,674 15,794,104
Less: NHP paid to Kyber PK 6,000,000 6,000,000
Provision for Capital Reserves 4,341,674 9,794,104
6 October 2010 13

Cash Flow Statement
[Mln.Rs]
[Mln.Rs]
Receipts 2009-10 2008-09
Receipts for power sale 18,948 20,063
Foreign loan withdrawls 2,351 1,558
GoP Cash Dev loans 1,373 87
Bridge Financing loans - 2,045
Dividends & misc income 2,609 2,046
Disbursements
Total receipts 25,281 25,799
O&M 3,924 2,731
Debt servicing 2,190 10,479
NHP/WUC 7,455 4,916
Hydel power development 8779 8,779 5,907
Misc payments 1,675 5,620
Total disbursements 24,023 29,653
Incr / (decr) in cash balance 1,258 (3,854)
6 October 2010 14

Balance Sheet
(Thous - Rs.)
2010 2009
ASSETS Unaudited Audited
NON - CURRENT ASSETS
Property Plant & Equipments 111,197,509 , 114,545,887
,
Capital work-in-progress 45,922,819 27,280,839
157,120,328 141,826,726
Long Term Investments 184,298,081 184,298,081
Investment in Associates 4,053,363 363 4053363 4,053,363
Investment in Subsidiaries 1,542,826 1,542,826
Notes Receivables 18,561,183 18,535,638
Long Term Advances, Deposits 241,525 200,143
365,817,305 350,456,777
CURRENT ASSETS
Stores, Spares & Loose Tools 1,422,760 1,441,536
Trade Debtors - CPPA 111,316,430 104,208,132
Advances and Other Receivables 30,967,281 64,882,410
Short term investmenst 261,000 271,000
Cash & Bank Balances 2,699,903 772,191
146,667,374 171,575,269
TOTAL ASSETS 512,484,679 522,032,046
6 October 2010 15

Balance Sheet
(Thous - Rs.)
2010 2009
EQUITY AND LIABILITIES Unaudited Audited
Share Capital 9,522,000 9,522,000
Capital Reserves for GoP investment in 184,298,080 184,298,080
Capital Reserves for development projects 172,970,160 168,628,558
366,790,240 362,448,638
Non - Current Liabilities
Long Term Loans 56,181,958 49,196,251
Grants 1,593,391 1,593,391
Liability Against Assets Subject to Finance 8,000,000 8,000,000
Deferred liabilities 2,530,869 1,239,890
68,306,218 60,029,532
Current Liabilities
Current Maturity of Loans 6,127,812 4,765,631
Accrued Liabilities 1,221,025 1,285,883
Short Term Borrowings 8,409,163 47,162,908
Short Term Liabilities 46,564,021 34,263,371
Other Payables 15,066,200 12,076,083
77,388,221 99,553,876
TOTAL EQUITY & LIABILITIES 512,484,679 522,032,046
6 October 2010 16

WAPDA Hydroelectric
NEPRA determined Revenue Requirement for FY 2009-10
Sr.No.
Hydel Power
Station
Installed
Capacity
Net
Electrical
Output
Regulatory
assets base
Return on
Investment
O&M Depr WUC
Cost at
Bus Bar
Cost at
Bus Bar
MW GWh Mln. Rs. Mln. Rs. Mln. Rs. Mln. Rs. Mln. Rs. Mln. Rs. Rs/kWh
1 Tarbela 3,478 14,650 8,263 1,133 1,281 2,022 4,436 0.3028
2 Ghazi Brotha 1,450 6,200 79,070 10,845 549 2,127 13,521 2.1808
3 Mangla 1,000 5,400 8,637 1,185 1,251 582 720 3,738 0.6921
4 Warsak 243 910 1,102 151 386 60 597 0.6558
5 Chashma 184 1,062 14,563 1,997 334 598 2,929 2.7578
6 Rasul 22 35 141 19 42 6 68 1.9298
7 Dargai 20 155 31 4 92 1 97 0.6255
8 Nandipur 14 35 13 2 50 1 52 1.4978
9 Shadiwal 14 47 13 2 36 1 39 0.8242
10 Chichoki 13 31 - - 36 - 36 1.1599
11 Kuram Garhi 4 17 - - 19 - 19 1.0940
12 Renala Khurd 1 3 14 2 12 - 14 4.7933
13 Chitral 1 5 - - 27 - 27 5.4556
Total 6,444 28,550 111,847 15,340 4,114 5,398 720 25,572 0.8957
Capital Work in Progress 31,207 4,280 4,280
Adhoc NHP to GoKPK 6,000
Other Income (2,152)
Total
143,054 19,620 33,700 1.1804
6 October 2010 17

WAPDA Hydroelectric
Power Sale Billing and Settlement Plan for FY 2010-11
Unit Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Total
Contracted Capacity MW 6,444 6,444 6,444 6,444 6,444 6,444 6,444 6,444 6,444 6,444 6,444 6,444 6,444
Estimated Sale of Power Gwh 3,894 4,064 4,100 2,100 2,471 1,045 514 1,532 1,419 1,553 2,847 3,011 28,550
Fixed Charges Rs./kW/M 265.96 265.96 265.96 414.02 414.02 414.02 414.02 414.02 414.02 414.02 414.02 414.02
Variable Charges Rs/kWh 0.3087 0.3087 0.3087 0.0590 0.0590 0.0590 0.0590 0.0590 0.0590 0.0590 0.0590 0.0590
Revenue invoices
Fixed Charges Mln. Rs. 1,714 1,714 1,714 2,668 2,668 2,668 2,668 2,668 2,668 2,668 2,668 2,668 29,153
Variable Charges Mln. Rs. 1202 1,202 1254 1,254 1266 1,266 124 146 62 30 90 84 92 168 178 4695 4,695
Total Billing Mln. Rs. 2,916 2,968 2,979 2,792 2,814 2,730 2,698 2,758 2,752 2,760 2,836 2,846 33,848
Payments required
Employees Salaries & Benefit Mln. Rs. 248 248 248 248 248 266 266 266 266 266 266 266 3,102
Administration Costs Mln. Rs. 80 80 80 80 80 80 80 80 80 80 80 80 960
Plant Maintenance Cost Mln. Rs. 100 100 100 925 838 89 110 110 110 120 120 122 2,844
Net Hydel Profit to KPK Mln. Rs. 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Water Usage Charges to AJK Mln. Rs. 71 72 64 62 53 39 4 73 42 70 88 82 720
Sukuk Rental 480 - - 516 - - 488 - - 514 - - 1,998
Supplier's Credit payment Mln. Rs. - 794 - - - - 781 - - - - - 1,575
total Mln. Rs. 1,479 1,794 992 2,331 1,719 974 2,229 1,029 998 1,550 1,054 1,050 17,199
Debt servicing of GoP loans Mln. Rs. - - - - - 5,915 - - - - - 5,915 11,830
Surplus for Power dev projects Mln. Rs. 1,437 1,174 1,987 461 1,095 (4,159) 469 1,729 1,754 1,210 1,782 (4,119) 4,819
KAPCO dividends / misc income Mln. Rs. 45 1106 1,106 25 804 50 2030 2,030
Surplus for Power dev projects Total 1,437 1,174 2,032 461 2,200 (4,159) 494 1,729 2,558 1,210 1,782 (4,069) 6,849
6 October 2010 18

PSDP FY 2010-11
Khan Khwar Allai Khwar Duber Khwar Jinnah Jabban Rehab DBDP Thakot Bridge Golan Gol Keyal Khwar F.studies Total
Land Acquisition & settlement 1 10 12,776 12,787
Contract Civil works 351 956 2,747 581 286 200 203 1,238 - - 6,563
Contract E&M works 268 392 552 1 345 1 - 350 - - 1,909
Consultancy & Engineering 36 34 41 100 25 293 45 100 427 1,101
Interest during Construction 50 400 400 80 731 30 1,691
Custom duties, Taxes & Insurance 20 50 30 50 30 10 190
Project Management Expenses 92 116 148 68 33 999 0 42 250 150 1,898
Total
818 1,948 3,928 800 800 15,000 203 1,715 350 577 26,139
6 October 2010 19

Hydel Development Financing Plan
FY 2010-11
11 [Mln.Rs]
Funds required for PSDP 26,139
Foreign relent loans 6,267
GoP Cash Development loans 5,000
Tariff revenue surplus 6,849
Resources committed 18,116116
Sukuk Bond/ TFC 8,023
6 October 2010 20

Projected Capital Investments
Figure are in million Rupees
Name of Project 2010-11 (*) 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
On-going projects 11,139 9,856 10,540 9,567 6,850 6,960 5,870 - - -
Diamer Basha 15,000 4,300 75,250 93,998 104,920 123,582 133,988 116,960 92,106 90,214
Kurram Tangi Dam - 9,890 10,320 13,330 10,750 - - - - -
Tarbela 4th Ext - - - 25,800 34,400400
- - - - -
Munda Dam - 10,320 10,320 18,060 23,220 23,220 16,512 11,868 - -
Dasu HPP - - - 44,720 55,900 78,260 89,440 89,440 78,260 67,080
Bunji HPP - - - - - 41,280 51,600 72,240 82,560 82,560
Total 26,139 34,366 106,430 205,475 236,040 273,302 297,410 290,508 252,926 239,854
(*) Budget provisions in Annual PSDP.
6 October 2010 21

Financing Plans for Capital Investment
• Get enhancing debt ratio from 60% to 80% for foreign loans,
• Get enhancing GoP Cash Development loans size for Hydel
projects,
• Requesting NEPRA to revise tariff fixation method and fix it at
the level to meet with debt servicing as well as projects self
financing needs so that enough funds are internally available,
• Creating special purpose vehicles (SPV) for mega projects and
inviting private investments in these projects,
• Tapping local and foreign capital markets to raise reasonable
funding in the shape of issuing Sukuk, Bonds and TFCs etc
regularly l by securitizing iii WAPDA assets.
• Recovery of overdue receivables from NTDC/CPPA.
• Deferring the project initiations by prioritization.
6 October 2010 22

WAPDA Hydroelectric
Funding Mechanism
Figure are in million Rupees
Financial Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Capital Investment 26,139 34,366 106,430 205,475 236,040 273,302 297,410 290,508 252,926 239,854
World Bank self financing Model
loans- 60% of Capex 15,683 20,620 63,858 123,285 141,624 163,981 178,446 174,305 151,756 143,912
Self financing -40% of Capex 10,456 13,746 42,572 82,190 94,416 109,321 118,964 116,203 101,170 95,942
Total 34,366 106,430 205,475 236,040 273,302 297,410 290,508 252,926 239,854
Change in Tariff fixing method
Revenue surplus - WB Model 10,456 13,746 42,572 82,190 94,416 109,321 118,964 116,203 101,170 95,942
Revenue surplus - existing tariff 5,581 (2,636) 6,772 6,876 6,691 6,525 7,645 14,193 13,784 13,149
Self financing gap 4,875 16,382 35,800 75,314 87,725 102,796 111,319 102,010 87,386 82,793
Effect on tariff
Net Electrical Output [GWh] 29,337 30,693 30,710 31,400 32,320 35,264 37,532 37,532 37,532
Avg. sale rate at existing tariff [Rs/kWh] 124 1.24 118 1.18 116 1.16 111 1.11 105 1.05 093 0.93 085 0.85 083 0.83 080 0.80
Avg. sale rate at WB model [Rs/kWh] 1.80 2.35 3.62 3.90 4.23 4.09 3.57 3.15 3.01
6 October 2010 23

WAPDA Hydroelectric
Funding Mechanism
Figure are in million Rupees
Financial Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Capital Investment 26,139 34,366 106,430 205,475 236,040 273,302 297,410 290,508 252,926 239,854
Projected financing
loans- 60% of Capex 5,716 20,620 63,858 123,285 141,624 163,981 178,446 174,305 151,756 143,912
GoP CDL for Land 5,000 5,000 25,000 18,000 7,000 6,000 5,000 5,000 5,000 5,000
Sukuk Bonds,IPO 10,000 5,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Tariff surplus 5,423 3,746 7,572 54,190 77,416 93,321 103,964 101,203 86,170 80,942
Total 26,139 34,366 106,430 205,475 236,040 273,302 297,410 290,508 252,926 239,854
6 October 2010 24

Thank You
6 October 2010 25