Dordi-1Hydroelectric Project

Introduction/Background

Lack of electricity has been one of the major problems in our country. Due to which, industry
hasn’t been able to run to its full capacity and also the running time is very expensive during the
time of load shedding. Setback in industrial development means we set back in country’s growth
as a whole. Keeping this in mind, Dordi Khola Hydropower Company has proposed to develop a
hydropower project to contribution in generation of electricity within the country.

The hydroelectric project is planned to be constructed in Dhodeni, Phaleni & Bansar VDC,
lamjung. The capacity of the hydroelectric project will be 12MW. Some of the major activities
required to be done during the projects are as follows:

 Acquiring survey license for Electricity Generation

 Conduct desk study
 Conduct Feasibility Study
 Prepare Project Report
 Acquire Power Purchase Agreement with Nepal Electricity Authority
 Conclude Financial closure
 Acquiring Connection Agreement
 Detail engineering design
 Purchase and lease land of around 120 ropanies
 Acquire Construction License
 Construction of road network around hydropower project
 Construction of powerhouse, tunnel, dam and other concrete structures
 Connect to grid

The project will start from November 2018 and it is expected to be completed by November
2021. By the completion date, both the dry test and wet test of the hydroelectricity project should
have to be concluded. The project should be able to generate an annual energy of 64 plus/minus
5 GWh with more than 20% of its production made in wet season. The project will have
estimated budget of NPR 2.45 billion.

Objectives

The objective of aforementioned project is the Generation of Electricity by the use of water
resources to fulfill the electricity requirement of Nation.
Scope of Work

The Scope of Construction of Dordi-1Hydroelectric Project is given below as:

 Acquiring all the legal document; company registration certificate, business

commencement letter to start the project
 Acquiring Authority to conduct the project; Survey license , Electricity Generation
License, Power purchase Agreement , Construction License and Connection Agreement
 Meeting Environmental Mitigation and Contingencies requirement
 Acquiring the Resources needed; Human Resources ,Financial Resources , Hydro-
Mechanical Equipment and Electro- Mechanical Equipment
 Generation of Electricity and Connecting to National Grid
 Finally , get the project in operation
Project Chartered Document
Description of the project
The Dordi -I hydroelectric project is planned to be constructed in Dhodeni, Phaleni & Bansar
VDC, lamjung Nepal. The capacity of the hydroelectric project is 12MW. Project Construction
will start from Nov 2018 and it is expected to be completed by mid of 2022. Pre-operating and
development activities are going on. The actual construction and supply works are contracted to
outsider parties so that the work will be done efficiently and effectively. The completion date,
both the dry test and wet test of the hydroelectricity project should have to be concluded. The
project should be able to generate an annual energy of 64 plus/minus 5 Gwh with more than 20%
of its production made in wet season. Within a year Four months are considered as dry season
and remaining 8 months are under wet season .The project will have estimated budget of NPR
2.45 billion. Total project cost is divided in to 70% debt and 30% equity. The debt portion is
fulfilled by the help of Consortium bank. Power Purchase Agreement is signed with Nepal
Electricity Authority for the sale of generated electricity.

Project Requirement
The requirement of Dordi-I Hydropower project is explained as below:

 Land and Building : in order to Run the office activities and construct the project
 Infrastructures : Infrastructure development includes Road access , bridge construction
and Camp house
 Vehicles & Others: the necessary truck and other vehicle to transport the project related
missionaries , Equipment and manpower
 Civil Construction Work: the civil construction work is essential part of the hydropower
project development. it includes more than 40% of the total project work
 Hydro-Mechanical Equipment and Electro-Mechanical Equipment
 Transmission Line & Interconnection Facilities: transmission line includes the connection
line from power house to the National Grid
 Human Resource: in order to construct the aforementioned project recruitment of
manpower is Essential. Bothe direct and indirect personnel's are involved in project
development. Such as Engineers, Financial officers, Liaisons, Public relation Manager,
Business development Manager Etc.
 Financial resources : Financial resources are debt and equity (D/E;70:30)
 Authority and Responsibilities
The Authority and responsibilities hierarchy of the Dordi-1 Hydropower Project is given below:

Chief Operating Officer

Manager-Account, Project Manager Manager-HR & QA

Finance, Investment
Planning & Treasury

 Electrical Engineer  HR officer

 Account Finance
 Mechanical  HR assistant
Officer
Engineer
 Finance and Account
 Civil manager
Assistant
Dordi-1 Hydropower Project mile stone

Business Case
Shortage of electrical energy has been one of the major problems in our country. Due to which,
industry hasn’t been able to run to its full capacity and also the running time is very expensive
during the time of load shedding. Setback in industrial development means we set back in
country’s growth as a whole. Thus, the demand of electricity is ever increasing however limited
is the supply. Also, cost of producing electricity is relatively cheaper than our neighbors thus, if
supply of electricity becomes excessive in the country we can always import to the neighboring
country. We are located in between countries like India, China and Bangladesh whose economy
is growing aggressively. With economic growth, the demand for electricity is also increasing for
them. Hydropower is such a sector where demand for your product is always increasing.

Also Government of Nepal is providing different subsidies for the promoting hydropower.
Hydropower Company is not required to pay any income taxes for the income generated by
selling the electricity for 10 years since the date of the operating followed by partial subsidy in
income taxes in following years. VATs, Custom duty is also subsidized for the hydropower
developers.

Hydropower projects are easy to get financed as this sector has been put into priority sectors by
government of Nepal. Also, financing is received in subsidized interest rates. Hydropower
projects generates on an average return of 15%-20% if we look into existing projects. Thus, the
project is expected to generate handsome returns to developers.
 Project Scope Management
Requirement Traceability Matrix
Requirement Traceability Matrix
Code Requirement Source of requirement Is it in scope? Corresponding Task Status Remarks
R1 Catchment Area of 218 Sq Km Hydropower Engineerers Yes T3
R2 Gross Head of 132 meters Hydropower Engineerers Yes T3
R3 Transmission Line Hydropower Engineerers Yes T6
R4 Two Francis Turbine Hydropower Engineerers Yes T5
R5 Power House Hydropower Engineerers Yes T3
R6 Penstock Pipe Hydropower Engineerers Yes T3
R7 Generators Hydropower Engineerers Yes T5
R8 Transformers Hydropower Engineerers Yes T5
R9 Power Purchase Agreement Shareholder Yes T1.2
R10 Equity IRR of 25% Shareholder Yes T6 Equity IRR of 17%
R11 Give some stake in ownership to locals at free of cost Local residents No
R12 Commercial date of operation by 2080 Board of Directors Yes T6
R13 Headrace Tunnel Detail Engineering Design Yes T3
R14 Diversion wier Detail Engineering Design Yes T3
R15 Construction of Hospital and School from profit Local residents No
R16 Do CSR with some percentage of profit Government Authority Yes T2
R17 Propor compensation during land acquisition Government Authority and Local residents Yes T2
R18 Feasibility Study report Board of Directors Yes T1.1
R19 Financial Closure Board of Directors Yes T1.5

Project Scope Statement

Product Scope Description

The Diversion wier will be free flow concrete weir of 26 meter long and with crest elevation of
904 amsl. And this wier should be 4m above bed level. The Catchment Area should be of atleast
218 km 2 and gross head should be of 132 meters.

There will be two horizontal axis, Francis turbines with rated output capacity per unit of 6500
KW with rated speed of 750 rpm and efficiency of 0.92.

Two Synchronous 3Ø AC horizontal Axis generators will be used with rated output capacity per
unit of 7060 KVA and power factor 0.85. These two generators will be running in 6.6 kV and
50Hz with efficiency level of 0.96.

One Three Phase Transformer with rated capacity per unit 14500 KVA will be used in the
project. This transformer will have voltage ratio of 132kV/6.6 kV with efficiency of 0.99.
Penstock pipe will have diameter of 2 – 3 meter of 10 mm – 20 mm thickness. The project will
have 665 meter long penstock pipe that delivers water to hydro turbines.

Transmission line will be built from power house to NEA Kritipur Sub-Station. The length of
transmission line will be of 3.5 km. Transmission line is of 132kv and single circuit and will be
using ACSR “WOLF” conductor. A powerhouse of 34m x 12m x 18 m will be build.

After completion, the project will be generating an annual power of 64 plus/minus 5 GWh with
20% of these being produced during dry season.

Product Acceptance Criteria

 The project must pass the dry test and wet test
 The project must be producing an annual energy of 64 plus/minus 5 GWh with 20% of
these being produced during dry season.
 The total cost of project shouldn’t exceed 120%
 The project must be completed with maximum delay of 6 months from commercial date
of operation
 The transmission line is completed and energy produced can be sold to NEA

Product Deliverables

 Powerhouse
 Penstock pipes
 Transmission line
 Diversion wier
 Electricity production
 Power Purchase Agreement (PPA)
 Financial Closure

Project Exclusions

 The project will not be construction hospitals or schools for local residents.
 Stakes of project won’t be handed to locals at free of cost

Project Constraints

 The budget for the project is a constraint.

 The project should be completed above mentioned commercial date of operation
 With PPA, the revenue of the project is limited. Thus the profitability is limited
 Dordi river has limited capacity of 12 MW which is also a constraint for the project
Project Assumption

 PPA will be done with no delay

 Force of water will be of 11.36 Nm/s
 Natural disasters like flood and landslide won’t delay the project nor damage the project
 Local residents won’t be creating problem for the project
 The civil contractors, Hydro mechanical contractors and electro mechanical contractors
will complete their job on time.
 Power Generation license will be provided to us by government
 Tax exemption will be provided to us which will help boost the profitability

Work Breakdown Structure

Task
Code Particular
T1 Preliminary Work
T1.1 Feasibility Study
T1.1.1 Desk Study
T1.1.2 Hiring Consultant
T1.1.3 Site Visiting
T1.1.4 Report Preparation
T1.2 Power Purchase Agreement (PPA)
T1.2.1 Obtaining Bank Guarantee
T1.2.2 Submission of Report to NEA
T1.2.3 Obtaining Power Purchase Agreement
T1.3 Obtaining Connection Agreement
T1.3.1 Preparation of Letter/ Agreement
T1.3.2 Apply for connection agreement
T1.3.3 Obtaining Connection agreement
T1.4 Generation License
T1.4.1 Submission for Study Report
T1.4.2 Receiving Comment and Replied the comment
T1.4.3 Obtaining Generation License
T1.5 Financial Closure
T1.5.1 Preparation of D/E ratio on the basis of estimated cost
T1.5.2 Apply for Loan to the Banks
T1.5.3 Preparation for Collecting Equity funds
Task
Code Particular
T2 Development Work
T2.1 Detail Engineering Design
T2.1.1 Hire Consultant
T2.1.2 Prepare detailed report in DOED format
T2.1.3 Submit Report to DOED
T2.2 Land Acquisition
T2.2.1 Find out the required land from TOPO survey
T2.2.2 Site Visits to confirm
T2.2.3 Buy or lease land
T2.3 Infrastructure and others
T2.3.1 Planning
T2.3.2 Designing
T2.3.3 Construction
T2.4 Procurement
T2.4.1 Request proposal
T2.4.2 Evaluation of proposal
T2.4.3 Selection of contractor
T2.5 Conclude

Task
Code Particular
T3 Civil Construction Work
T3.1 Soil Testing
T3.1.1 Hiring Geologist
T3.1.2 Site visit
T3.1.3 Report Preparation
T3.2 Head works
T3.2.1 Layout in the field as per drawing design
T3.2.2 Construction of head works
T3.2.3 Operation
T3.3 Water Way
T3.3.1 Layout in the field as per drawing design
T3.3.2 Construction of water way
T3.3.3 Operation
T3.4 Power house
T3.4.1 Layout in the field as per drawing design
T3.4.2 Construction of Powerhouse
T3.4.3 Operation
T3.5 Switchyard
T3.5.1 Layout in the field as per drawing design
T3.5.2 Construction of Switchyard
T3.5.3 Operation

Task
Code Particular
T4 Hydro mechanical Work
T4.1 Procurement
T4.1.1 Preparing request for proposal
T4.1.2 Analyzing Proposals
T4.1.3 Finalizing the supplier
T4.2 Import
T4.2.1 Get the Designs
T4.2.2 Opening LC /TT
T4.2.3 import the require machines
T4.3 Pipes Fabrication and installation
T4.3.1 Prepare the designs
T4.3.2 Layout in the field as per drawing design
T4.3.3 operating
T4.4 Gates Fabrication & Installation
T4.4.1 Prepare the designs
T4.4.2 Layout in the field as per drawing design
T4.4.3 operating
T4.5 Sensitivity Test
T4.5.1 Operating Equipment
T4.5.2 Study the Efficiency
T4.5.3 Change Control

Task
Code Particular
T5 Electromechanical Work
T5.1 Procurement
T5.1.1 Preparing request for proposal
T5.1.2 Analyzing Proposals
T5.1.3 Finalizing the supplier
T5.2 Import
T5.2.1 Get the Designs
T5.2.2 Opening LC /TT
T5.2.3 import the require machines
T5.3 Designing
T5.3.1 Prepare the designs
T5.3.2 Documentation of designs
T5.3.3 Get approval for execution
T5.4 Manufacture and Supply
T5.4.1 Install the electrometrical Instruments
T5.4.2 Generate the Electricity
T5.4.3 Supply towards the Transmission line
T5.5 Closure

Task
Code Particular
T6 Transmission line and Project Operation
T6.1 Survey and Design
T6.1.1 Hiring a Consultant
T6.1.2 Site visit and Survey
T6.1.3 Prepare a report
T6.2 Procurement
T6.2.1 Preparing request for proposal
T6.2.2 Analyzing Proposals
T6.2.3 Finalizing the supplier
T6.3 Construction
T6.3.1 Layout in the field as per drawing design
T6.3.2 Construction of pools and line
T6.3.3 Operation
T6.4 Testing
T6.4.1 Electricity Passage through Cable
T6.4.2 Test the Capacity
T6.4.3 Join to the national grid
T6.5 Operation
T6.5.1 Operating
T6.5.2 Examining the water flow
T6.5.3 Repair and maintenance

Control Scope Process

Change control is an important part of the project management process. With the pace of change
today, it is almost certain that projects will face the demand for change during their life. While
change may help ensure the project’s alignment with business needs, it is important to consider
and approve each change carefully.
The change control process in project management ensures that each change proposed during a
project is adequately defined, reviewed and approved before implementation. The change control
process helps avoid unnecessary changes that might disrupt services and also ensures the
efficient use of resources.

Changes to a project may have impacts on time, cost or quality. Broadly, the later in
the development of the project that changes occur, the greater those impacts are likely to be.

At certain stages in the design process, a complete package of information will be provided for
the Project manager to approve. Once this approval has been given, a change control
procedure may be introduced to ensure that the approved information is not changed without the
express permission of the chief operating officer.

As the illustration below showcases the change of consultant in the project which usually
contains five stages:

1. Proposing a change
2. Summary of Impact
3. Decision
4. Implementing a change
5. Closing a change

There are two documents used during the process:

 Change Log: used to provide a record of all changes requested and decisions made
 Change Request Form: used to document details of the change

1. Proposing a Change

This process gives the ability for anyone in the project team to suggest a change to the project.
The proposal must include a description of the change and expected benefits or other reason for
the change. The change is presented using the Change Request Form and added to the Change
Log for the project.

2. Summary of Impact

This process is carried out by the project manager, who will consider the overall effect on the
project, covering the following items:

 Quantifiable cost savings and benefits

  Legal, regulatory or other unquantifiable reason for change
 Estimated cost of the change
 Impact on timescales
 Extra resources needed
 Impact on other projects and business activities
 New risks and issues

After this assessment, the project manager recommends whether to carry out the change.

3. Decision

This process involves a review of the change request by an approved authority who will consider
all the information provided by the project manager and person making the request. If the cost of
the overall change is more than 1,000,000, then BOD must be informed otherwise Project
manager makes the decision.

4. Implementing a Change

If the change is approved it is planned, scheduled and executed at a time agreed with all
department heads. As part of the planning, a regression test plan is needed in case the change
needs to be backed out. After implementation, it is usual to carry out a post-implementation
review.

5. Closing a Change
Once implemented, the requester checks and agrees on the change, and it is closed in the Change
Log by the project manager.

Illustration:

Suppose we want to increase the size of the turbine, we first of all develop a document which
rationalizes why we need to increase the size of the generator. Following are the steps you need
to follow:

1. Identify the required change in scope that is required.

2. Prepare a document with rationale to increase the size of the turbine and how this change
in size of turbine will change the other part of the scope and to what extent. The
document should mention how the other changes will be managed as well.
3. Request this change in scope to Change Control Board for approval with this document.
4. After the change is approved, the project scope document is revised including WBS. All
of these documents are also documented.
5. Then this change is cascaded to stakeholders of the project.
Identify the required change in
scope

Prepare documentation
showing rationale for the
change and its consequences

Send the change request to

Change Control Board

Document
Approved? the change
request

Yes
Revise project scope document
including WBS

Implement the change and

cascade to others about the
change
PERT
Pert for the Project
S.N. Activities Code Days to complete Task to be completed
1 Preliminary Work A1 500 Subject to change
2 Development Work A2 150 A1
3 Civil Construction Work A3 365 A2
4 Hydromechanical Work A4 65 A3
5 Electromechanical Work A5 65 A3
6 Transmission line A6 95 A5,A4
7 Operate the project A7 30 A6

A1 A3 A5 A7

Start

A2 A4 A6 End
65 days

Paths No. of Days to complete Remarks

A1 - A2 - A3 - A4 - A6 - A7 905 Critical Path
A1 - A2 - A3 - A5 - A6 - A7 905 Critical Path

Pert for Feasibility Study

S.N. Activities Code Days to complete Task to be completed
1 Desk Study A1 30
2 Issue tender A2 15 A1
3 Analyzing proposal A3 10 A2
4 Collecting Proposal A4 15 A3
5 Appointment of consultant A5 10 A4
6 Site visiting A6 45 A5
7 Report Preparation A7 30 A6
8 Verifying the final report A8 10 A7
 A1 A5 A7
A3

End

Start 30 days

A8
A2 A4 A6

Paths No. of Days to complete Remarks

A1 - A2 - A3 - A4 – A5 - A6 - A7 – A8 165 Critical Path

Pert for Power Purchase Agreement

Task to be
S.N. Activities Code Days to complete
completed
1 Apply for PPA A1 5
2 Obtaining format for bank guarantee A2 20 A1
3 Sending request to bank for bank guarantee A3 5 A2
4 Submission of Project Report to NEA A4 10 A1
5 Obtaining Bank Guarantee A5 45 A3
6 Submission of Bank Guarantee A6 10 A5
7 Signing of PPA A7 5 A4,A6

20 days 5 days
A1 A2 A3 A5

Start A7
A6
A4
End
Paths No. of Days to complete Remarks
A1 - A2 - A3 - A5 - A6 - A7 90 Critical Path
A1 - A4 - A7 20

Pert for Obtaining Connection Agreement

S.N. Activities Code Days to complete Task to be completed
Preparation of request letter for
1 A1 5
Connection agreement
Collection of all required document of
2 A2 15 A1
the project
3 Apply for Connection agreement A3 10 A2
4 Obtaining comment from NEA A4 30 A3
5 Replying comment to NEA A5 20 A4
6 Obtaining Connection Agreement A6 20 A5

A1 A3 A5

End
5 days

Start

A2 A4 A6

Paths No. of Days to complete Remarks

A1 - A2 - A3 - A4 – A5 - A6 100 Critical Path