Sano Milti Khola Hydropower Project, Fulasi VDC, Ramechhap (3 MW)

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Sano Milti Khola Hydropower Project, Fulasi VDC, Ramechhap (3 MW) Monthly Progress Report Prepared by : Sano Milti Khola Hydropower Limited www.smi.com.np smi.investment.limited@gmail.com Date : June, 2016

Executive Summary The Monthly Progress Report is prepared for providing information about the progress of Sano Milti Khola Hydropower Project, Ramechhap (3 MW). It will contain the information about the project activities and achievement of the preceding month along with the work plan for the particular month. This report will be issued in the first week of every month. Major project activities will be highlighted.

1.0 Background The Sano Milti Khola Small Hydroelectric Project (3 MW) is run-off-river type hydropower project proposed along the Sano Milti Khola in Ramechhap and Dolkha District of Janakpur Zone. The project area lies within Fulasi VDC of Ramechhap district and Melung VDC of Dolkha District. Sano Milti Khola Hydropower Ltd. holds the survey license for this project. The boundary co-ordinates of the project are 86 02 55 E to 86 04 33 E and 27 29 36 N to 27 30 17 N. Sano Milti Khola Hydroelectric Project has been promoted by SM Investment Ltd (SMI). SMI is basically a collective effort of Nepalese in South Korea to invest in Sano Milti Khola Small Hydroelectric Project. 2.0 Project Development Milestones S No Date Milestone 1 2066/04/28 BS Survey License Issued in the name of Mr Ram Bdr Tamang 2 2070/03/07 BS DoED extended the Date of Survey License of 3000 kw in the name of Sano Milti Khola Hydropower Pvt. Ltd upto 2071/02/25 BS 3 2071/01/05 BS Ministry of Energy approved the ToR of Sano Milti Khola Hydropower Project 4 2071/05/05 BS DoED extended the date of Survey License up to 2072/02/25 BS 5 2072/02/24 BS Ministry of Energy approved the IEE Report and at the same day the approved IEE Report was submitted in DoED 6 2072/02/24 BS Registered application to obtain Generation License 7 2072/03/10 BS Grid Connection Agreement with NEA 8 2073/01/13 BS Power Purchase Agreement with Power Trade Department/NEA 9 2073/02/09 Agreement with Thodung/Waiba & Lama JV for Civil Construction Works Note: Generation License - Generation License Draft submitted for approval from DoED

3.0 Project Description 3.1 Location & Access The project site is about 175 km away from Kathmandu, the capital city of Nepal. Manthali, the nearest trade center or town is about 22 km away towards south from the project site. Another nearest town is Charikot which is about 37 km away towards north. The powerhouse site of the project is 3 km far from the Milti Dobhan accessible by the graveled road Charikot Kirnetar Manthali Road. The proposed intake site is located on Milti Khola at about 6 km upstream from the confluence of Milti Khola and Tamakoshi River at the boundary of Melun and Phulasi VDC. The forebay location at Aimantar Village can be reached by constructing about 4.5 km road section from Milti Dobhan. Similarly, the headworks site can be made accessible by excavating about 3 km long track along the Milti Khola from the Milti Dobhan.

3.2 Project Layout Map Project Layout Plan

3.3 General Features of the Project Name of River : Sano Milti Khola Nearest Town : Manthali of Scheme : Run-of-River Gross Head : 216m Net Rated Head : 213.32 Installed Capacity : 3.0 MW Average Annual Energy after Outage : 15.833 GWh 1. Hydrology Catchment Area Mean Annual Discharge Design Discharge (at Q40 PoE) Riparian Release Design Flood Discharge Average Annual Precipitation 2. Diversion Weir of Weir Length of Weir Crest Elevation : 55 km2 : 2.17 m3/s : 1.7 m3/s : 0.09m3/sec : 277m3/sec (100 yr. flood) : 1650mm : Concrete Weir : 26 m : El. 1020.0 m 3. Intake Structure : Side intake Size : (1.50 m x 0.80 m) Nos : 2 (Tow) 4. Gravel Flushing structure Length Size (Depth) Width Nos : Surface, rectangular type : 11 m : 1.3 m to 2.50 m : 1.60 m : 2 (Two) 5. Desanding Basin : Surface, rectangular type, Concrete No. of Bays : Double Length : 29 m Wide : 3.50 m Total Depth (Including Hopper) : 2.21 to 3.15 Particle size to be settled : 0.20 mm :

6. Headrace Canal Length Wide Height : Concrete (Rectangular) : 2191 m : 1.50 m : 1.0 m 7. Forebay Surface Area : 153 m 2 (Length 17 m x Width 4 m) Volume : 204.00 m 3 Bed Level : 1014.90 m Gate : Sluice Gate 8. Penstock Pipe : Steel Total Length : 441.00 m Diameter : 0.90 m Material/Thickness : Structural Steel, 10 mm to 18 mm Bifurcation Length : 9.0 m + 9.0 m Bifurcation Diameter : 0.70m 9. Powerhouse Size (L x W) Height Turbine Axis Level 10. Tailrace Section Total length Size Tail Water Level : Surface : 32 m x 14 m : 11.00 m : 802.00 m : RCC Structure (Buried) : Rectangular : 62.00 m : 0.85 m x 2.0 m : 799.00 m 11. Turbine : Horizontal Axis Pelton No of unit : 2 (Two) Rated Output Capacity Per unit : 1500 kw Rotational Speed : 750 rpm Efficiency : 88.15% 12. Governor : Electric-electronic Adjustment for Speed Drop : Between 0 to 10%

13. Generator : Synchronous, 3 Phase No. of Units : 2 (Two) Rated Output Capacity per Unit : 1700 kva Power Factor : 0.85 Voltage : 6600 V Frequency : 50 Hz. Efficiency : 95% 14. Transformer : Three Phase, Oil Immersed Nos of Units : 2 (Two) Rated Capacity per unit : 1700 kva Voltage Ratio : 11/33 kv Efficiency : 99% 15. Transmission Line Voltage Level Length From To : 33 kv : 5 km : Powerhouse : NEA Kirnetar Substation

4.0 Construction Schedule:

5. Project Progress 5.1 Land Acquisition Site Visit was made on 23 rd March, 2016 for identifying the required lands to be procured by the project along with Consultants/Gorkha Hydro & Engineering, Sano Milti Khola HPP team and District Amin. The required land s perimeters were marked at site and detail report was provided by the Amin. Finally, second site visit was made on April 15, 2016 during which 95% of the required land was procured by the project company. One small plot in the headrace section canal section which was remaining to be acquired was also transferred under our project company s name. We have acquired all the required land in the head race section. 5.2 Agreement with Civil Contractor Civil Construction and Access Road Works has been awarded to Thodung/Waiba & Lama JV. Agreement between both parties was signed on 22 nd May, 2016. Excavator has reached the site and access road works is scheduled to be started. Along with this joint survey by contractor team, consultant team and SMKHL team is also in progress at site.

June, 2016

June, 2016

5.3 Meetings with the Local Government Authorities and Political Leaders The joint team of directors of Sano Milti Khola Hydropower Ltd held a meeting with local government agencies and political leaders of Ramechhap District. Discussions were held regarding the coordination and support between the local agencies and the project company for the timely completion of the project.

5.4 Coordination with Ministry of Forest and Department of Forest Ministry of Forest and Soil Conservation had issued the recommendation to Department of Forest (DOF). On assessment, DOF has issued a recommendation District Forest Office (DFO). We have submitted the letter to DFO, Ramechhaap and pressurizing for necessary action for site investigation and verification. 5.5 Project Financing Several meetings with NMB Bank for financing the project have been held. Along with NMB, discussions/meetings have been held with Nepal Bangladesh Bank Ltd. Two round meetings have completed and all the necessary documents have been submitted for the assessment of the loan facility in the bank. 5.7 Site Contact Office (Milti Bazar) Site Contact Office has been setup at Milti Bazaar along with accommodation facility for staff. Site Manager will be residing along with the resident engineer and other staffs. All major activities between the head office and site will be coordinated through the contact office.

5.8 Access Road Track Opening Contractors have started opening the track. Contractor s excavator along with their team is stationed at site and working continuously for opening the access road. 0+2000 km Chainage Access Road track has been opened.

Monthly Work Plan July S No Description May Remarks Week 1 Week 2 Week 3 Week 4 1 Generation License Additional Document Submission 2 District Forest Office, Ramechhap Follow up 3 Commencing Civil Construction Work at Site (Joint Site Visit) Site Visit 4 Document Revision for Loan Processing (Bank) Electromechanical Equipments Factory Inspection 5 (China/India)