annual report - hydro-consult

ANNUAL REPORT2019

Hydro-Consult Engineering Limited2

CONTENTS01: COMPANY PROFILE 102: FINANCIAL HIGHLIGHTS 303: CHAIRMAN’S MESSAGE 404: LOCATION OF INTERNATONAL PROJECTS 605: LOCATON OF NATIONAL PROJECTS 706: REPORT OF BOARD OF DIRECTORS 807: CEO’S PERSPECTIVES 1408: CORPORATE GOVERNACE REPORT 1609: BOARD MEMBERS’ BRIEF RESUME 2010: KEY STAFF BRIEF RESUME 2211: FINANCIAL PERFORMANCE OF FY 2075/76 3212: PROJECT OVERVIEW OF FY 2075/76 3313: COMPLETED PROJECTS OF HYDRO-CONSULT

ENGINEERING LIMITED 7614: AUDITORS REPORT 8215: FINANCIAL RATIO 10916: FIVE YEARS SUMMARY OF FINANCIAL STATEMENT 110

Nya

di H

ydro

pow

er P

roje

ct (

30 M

W)

Cover Photo: Nyadi HEP (30MW)

Cover Photo: Ghar Khola HEP (14 MW)

Cover Photo: Solu Khola (Dudhkoshi) HEP (86 MW)

Annual Report 2019/20 1

CompanyProfi le

HYDRO-CONSULT ENGINEERING LIMITED (HCE)Hydro-Consult Engineering Limited (HCE) is the service – oriented company specialized in water resource based infrastructure development engineering solutions. It offers several engineering services in various fi elds. The successful completion of challenging,

complex and diverse projects, requiring truly comprehensive management capacity and interdisciplinary engineering know-how is core HCE’s Strength.

HCE works with water, land and people while respecting the local socio-ecological systems. It investigates designs and assists to develop hydropower projects in Nepal and abroad. Relying on its deeply integrated knowledge in geology, river characteristics, construction industry environmental and socio-economic situation in Nepal; it aims to produce appropriate design and development solutions to its clients. It offers services mainly in hydropower along with water supply, irrigation, and transportation sectors.

HCE has been carrying out consulting and engineering business of Butwal Power Company (BPC) since 1966. In 1986, BPC established BPC

ydroconsult as a fi rm of planners, engineers, environmentalists, consultants and technical specialists offering a broad range of professional services. BPC Hydroconsult was structured as Engineering Department of BPC in 1991. In 2009, Engineering Department of BPC was established as an independent entity; Hydro Consult Private Limited (HCPL), by acquiring major shares in an existing fi rm that was being run by People Energy and Environment Development Association (PEEDA) since 1998. BPC, along with its ongoing consulting business; transferred goodwill, technical data and reports including its library with intellectual property right, staff and assets of Engineering Department (BPC Hydroconsult) to HCE. HCE was transformed into public limited on September 18, 2012 and is the fi rst engineering consulting fi rm registered as public limited company in Nepal. At present, BPC holds 80% share of HCE and 20 % share is held by PEEDA.

Presently, HCE is recognized for its quality and stands among the best consulting company in the hydropower sector of Nepal. The Consultant has three decade long experience of undertaking the pre-feasibility, feasibility, detail design, construction supervision, project management, environmental and social studies and engineering services in post operation of hydropower projects. HCE embraces customer-focused philosophy and works closely with its customers to achieve mutual growth and success. HCE pursuits for competitive excellence that begins and ends with the commitment to excel in engineering services through highest level of quality and customer satisfaction.

HCE has collaborations with International consulting fi rms and has worked with FIC TNER GmbH & Co.KG (Germany), Mott Macdonald (UK), BPR (Canada), Hydro Tasmania (Australia), SWECO (Norway), NORPLAN (Norway), Bernard Ingenieure (Austria), and Lahmeyer (Germany), Multiconsult (Norway), DOLSAR Engineering inc.Co. (DOLSAR) in different projects. Similarly, HCE has close contacts with a pool of local and international experts. HCE is also working with international donor agencies and banks, like World ank, IFC, NORAD, USAID, etc.

Name : Hydro-Consult Engineering Limited

Registration No : 97410

Corporate History : 1986 (As BPC Hydroconsult)

1998 (As HCPL under ownership of PEEDA)

2009 (BPC bought major share of HCPL and transferred BPC Hydroconsult to HCPL)

2012 (As Hydro-Consult Engineering Limited)

Corporate Office : Buddhanagar, Kathmandu

VAT No : 500012033

Statutory Auditor : M/S Prabin Joshi & Co, Chartered Accountants

CORPORATE INFORMATION:


Centre of excellence in engineering services in water resources and infrastructure development with due respect to environment and stakeholders.

Provide quality and cost effective engineering services in water resources focusing on hydropower, environment and infrastructure sectors being a globally recognized consultant.

• Develop and provide quality and cost-effective engineering services to maximize customer satisfaction.

• Deliver socially acceptable and environment friendly engineering solutions with due priority to local resources and technology.

• Expand the services and penetrate into new market.

• Optimum utilization of available resources.

• Develop and enhance professional skills and knowledge.

• Enrich the value of stakeholders.

Our Vision Our Mission Our Objective

Sectors and Services HCE mainly works in Hydropower sector but has also extended its services in all water resource based infrastructure development and energy related projects and therefore, has considered the below listed sectors as its core business area:

Apart from its core sectors, HCE can work in other civil engineering sector such as buildings, landscapes, urban and rural development, bridge etc.

Services

HCE provides full range of services for the entire lifecycle of the projects which consists of Prefeasibility Study, Detailed Feasibility Study Investigations, Feasibility Study Review, Detailed Engineering Design, Tender Document Preparation and Tender Evaluation, Construction Supervision, Project anagement, ill erifi cation, Operation and Maintenance services, Plant Rehabilitations and up-gradations.

HydropowerTransmission

lineIrrigation

Water Supply and Sanitation

Rural Electrifi cation

Roads Environment

HCE also offers the services for Institutional Strengthening & Capacity Development, Governance & Management, Monitoring and Evaluation, Policy and Research in all its sectors.


FY 2071/72 FY 2071/72

FY 2071/72FY 2071/72

FY 2071/72 FY 2071/72

FY 2072/73 FY 2072/73

FY 2072/73FY 2072/73

FY 2072/73 FY 2072/73

FY 2073/74 FY 2073/74

FY 2073/74FY 2073/74

FY 2073/74 FY 2073/74

FY 2074/75 FY 2074/75

FY 2074/75FY 2074/75

FY 2074/75 FY 2074/75

FY 2075/76 FY 2075/76

FY 2075/76FY 2075/76

FY 2075/76 FY 2075/76

OPERATING INCOME (NPR)

BOOK VALUE PER SHARE (NPR)EARNING PER SHARE (NPR)

CURRENT RATIO

GROSS OPERATING PROFIT (NPR)

92,9

39,2

61

120,

662,

166

172,

689,

377

213,

817,

540

109,

209,

021

FINANCIAL HIGHLIGHTS

33,4

31,1

30

38,4

61,7

47

60,8

94,4

02

75,5

34,7

03

487.

26

598.

02

541.

34

695.

85

827.

75

117.

08

135.

77

87.1

2 180.

83

174.

01

3.43

3.10

3.29

3.59

2.91

NET WORTH (NPR) QUICK ASSETS (NPR)

57,3

91,4

93

70,4

38,2

10

79,7

01,5

42

102,

450,

846

121,

871,

111

55,0

25,2

82

66,4

75,3

57

95,8

36,4

53

120,

574,

102

150,

178,

131

FY 2071/72 FY 2072/73 FY 2073/74 FY 2074/75 FY 2075/76

OPERATING EXPENSES AND ADMINISTRATION EXPENSES RATIO

81%

81%

89%

83%

78%

19% 19% 11%17% 22%

28,7

71,0

09


I feel honored and privileged to serve the Company as a HCE’s Chair for the past 4 years. The journey so far is very inspiring and motivating when I look back to consider our progress and all the planning and execution to achieve our goals. My sincere thanks to our board members, industry partners and dedicated staffs for all the collective efforts for making another successful year.

The commendable effort from the Government for making conducive environment and from the private sector for leveraging their resources has made Nepal to do tremendous progress towards the achievement of a signifi cant milestone in power sector. As a result, Nepal is entering into the new era by producing suffi cient energy, meeting the national demands as well as being able to export energy. In addition, the recent political developments, strategic priorities, policies and bilateral and multilateral cooperation have created a market shift towards the bigger sized hydropower projects. With a right strategic collaborations, Hydro-Consult Engineering Limited (HCE)

is able to grasp these opportunities and bring up position itself into a new height. Further, the completion of the projects in Kenya and few projects in Pakistan and current engagements in international front, has increased HCE’s potential to expand its business globally.

HCE is transforming itself for the one stop solution to every aspect of the hydropower industry and is focused to standout with its biggest strength of its resources and technical knowhow to provide the high quality services that will satisfy more Clients as has been since two decades. The Company will make every effort to create examples from its project executions and will continue to expand its business network at both national and international front.

Financially, the Company has generated increased revenue and provided good Return on Equity to its shareholders. This F 2075/76, the company has generated a remarkable high end turnover, which excites all our stakeholders. Along with our strategic direction and increasing demand for company design solutions, we will be continuing to achieve remarkable continual growth, which will certainly benefi t our Shareholders, Employees, Clients and all other stakeholders.

I feel privileged and proud of what we have been able to achieve and for continuously contributing to the country through its knowhow of hydropower development and engineering. Finally, I thank you all for the dedication, support and hard work of the team.

Uttar Kumar ShresthaChairman

Chairman’s Message


Loca

tion

of

Inte

rnat

iona

l Pro

ject

s

1. K

ari M

uskh

ur H

ydro

pow

er P

roje

ct (

446

MW

), P

akis

tan

2. G

abra

l Kal

am H

ydro

pow

er P

roje

ct (

110

MW

), P

akis

tan

3. G

ura

Hyd

ropo

wer

Pro

ject

(5.

6 M

W),

Ken

ya

Keny

a


Nawa

lpara

si E

Nawa

lparas

i W

Ruku

m W

Ruku

m E

Prov

ince

6Pr

ovin

ce 7

Prov

ince

4

Prov

ince

5

Prov

ince

3

Prov

ince

1

Prov

ince

2

IND

EX1.

M

istr

i Kho

la H

ydro

elec

tric

Pro

ject

(42

MW

)2.

So

lu K

hola

(D

udh

Kosh

i) H

ydro

elec

tric

Pro

ject

(86

MW

)3.

Li

khu

2 H

ydro

elec

tric

Pro

ject

(33

.52

MW

)4.

Kh

imti

-2 H

ydro

elec

tric

Pro

ject

Tai

lwat

er T

appi

ng S

tudy

(48

.6 M

W)

5.

Nya

di H

ydro

pow

er P

roje

ct (

30 M

W)

6.

Land

ruk

Mod

i Hyd

roel

ectr

ic P

roje

ct (

86 M

W)

7.

Upp

er R

ahug

hat

Hyd

roel

ectr

ic P

roje

ct (

48.5

MW

)8.

Bh

otek

oshi

5 H

ydro

elet

ric P

roje

ct (

62 M

W)

9.

Chin

o Kh

ola

Smal

l Hyd

ropo

wer

Pro

ject

(8.

5 M

W)

10.

Mis

tri K

hola

-2 H

ydro

elec

tric

Pro

ject

(12

MW

)11

. Sa

nkhu

wa

Khol

a H

ydro

pow

er P

roje

ct (

41.4

9 M

W)

12.

Sank

huw

a Kh

ola-

1 H

ydro

pow

er P

roje

ct (

40.5

MW

)13

. Kh

udi H

ydro

pow

er P

roje

ct (

4 M

W)

14.

Siw

a Kh

ola

Smal

l Hyd

ropo

wer

Pro

ject

(26

.95

MW

)

15.

Budh

i Gan

ga S

mal

l Hyd

ropo

wer

Pro

ject

(11

MW

)16

. Ta

mak

oshi

V H

ydro

pow

er P

roje

ct (

99 M

W)

17.

Kalig

anda

ki T

inah

u M

ultip

urpo

se P

roje

ct (

136.

3 M

W)

18.

Rahu

ghat

Man

gale

Hyd

roel

ectr

ic P

roje

ct (

35.5

MW

)19

. U

pper

Tad

i Hyd

ropo

wer

Pro

ject

(11

MW

)20

. Se

ti N

adi H

ydro

pow

er P

roje

ct (

25 M

W)

21.

Gha

r Kh

ola

Hyd

ropo

wer

Pro

ject

(14

MW

)22

. Lo

wer

Hew

a Kh

ola

Hyd

roel

ectr

ic P

roje

ct (

21.6

MW

)23

. Su

nsar

i Mor

ang

Irri

gatio

n Pr

ojec

t24

. Lo

wer

Lik

hu H

ydro

elec

tric

Pro

ject

(28

.1 M

W)

25.

Palu

n Kh

ola

Smal

l Hyd

ropo

wer

Pro

ject

(21

MW

)26

. H

idi K

hola

Hyd

ropo

wer

Pro

ject

(6.

82 M

W)

27.

Low

er M

anan

g M

arsy

angd

i Hyd

ropo

wer

Pro

ject

(13

9.2

MW

)28

. M

anan

g M

arsy

angd

i Hyd

ropo

wer

Pro

ject

(13

5 M

W)

29.

Kwad

i Kho

la H

ydro

pow

er P

roje

ct (

30 M

W)

30.

Bher

i Kho

la H

ydro

pow

er P

roje

ct (

4.23

MW

)31

. N

yaur

i Gad

Hyd

ropo

wer

Pro

ject

(4.

1 M

W)

32.

Mug

u Ka

rnal

i Hyd

ropo

wer

Pro

ject

(14

1.46

MW

)33

. D

ordi

Kho

la H

ydro

pow

er P

roje

ct (

27 M

W)

34.

Supe

r D

ordi

Hyd

ropo

wer

Pro

ject

Kha

(54

MW

)35

. Lo

wer

Erk

huw

a Kh

ola

Hyd

ropo

wer

Pro

ject

(13

.04

MW

)36

. Sa

psup

Kho

la S

mal

l Hyd

ropo

wer

Pro

ject

(6.

6 M

W)

37.

Buku

Kap

ti H

ydro

pow

er P

roje

ct (

5.0

MW

)38

. Bh

im K

hola

Sm

all H

ydro

pow

er P

roje

ct (

4.96

MW

)39

. So

lu H

ydro

elec

tric

Pro

ject

(23

.5 M

W)

40.

Upp

allo

Khi

mti

Hyd

roel

ectr

ic P

roje

ct (

12 M

W)

41.

Upp

er K

him

ti H

ydro

elec

tric

Pro

ject

(7

MW

)

15

29

32

31

30

1810

21

38

17

9

13

5

26

33

34

20

28

19

27

816

32 39

7

12

3536

1114

25

22

23

4

40

4124

37

1

Solu

khum

bu

Bagl

ung

6


Dear Shareholders,

The directors are pleased to present the Annual Report of the Company along with the Audited Financial Statements as on uly 16 2019.

Company Performance

The year 2019 will be remembered as another year of excellence. Despite all the challenges, the Company has completed number of projects and achieved signifi cant milestones and also continued to acquire projects at both national and international level this year.

The Company has completed Detail Design and Supplementary Environmental Assessment of udhiganga (11 W) and Siwa Khola (26.95

W) hydropower projects and Feasibility and Environmental Impact Assessment (EIA) of Sankhuwa Khola (41.06 MW) and Sankhuwa Khola-I (40.82 MW) hydropower projects for Department of Electricity Development (DOED). Pre-Feasibility Study of 160 MW Mugu Karnali hydropower project (Phase -1) Feasibility Study of istri Khola – 2 (12 W) hydropower project; Due Diligence Appraisal of Bhim Khola ( .9 W), Lower Irkhuwa Khola (1 ,15 W) and

Sapsup Khola (7.1 W) hydropower projects and Rehabilitation of Khudi hydropower project (4 MW) and himruk Upstream Channel are few examples of the projects completed for the Independent Power Producers (IPPs) in this year F 2075/76.

hotekoshi (62 W), Likhu 2 (55 W), Seti Nadi (25 MW), Landruk Modi (86 MW) and Upper Tadi (11 MW), Palun Khola (21 MW), Hidi Khola (6.82 MW) and Chino Khola (7.9 W) hydropower projects are some of the examples of ongoing projects of detailed design for the IPPs.

Currently, at international level, the Company is engaged in the Feasibility Study of 0 W Kari-Muskera and 110 MW Gabral-Kalam Hydropower Projects in Pakistan. The Company is also carrying out Detailed Feasibility Study of 10 W Kaligandaki Tinau Multipurpose Project and Detailed Investigation and Engineering Design of Sunsari Morang Irrigation Project (SMIP) Headworks for the Department of Irrigation (DOI), and Feasibility and IEE Study of Nyaurigad (4.01 MW), Kwadi Khola (30 MW) and Bheri Khola (4.1 MW) hydropower projects for the DOED.

Likewise, the Company is engaged in the Construction Supervision of 86 MW SoluKhola

Report ofBoard of Directors


(Dudhkoshi), 42 MW Mistri Khola, 30 MW Nyadi and 14 MW Ghar Khola hydropower projects.

Summary of Current Projects

Moreover, the Company has also established its satellite offi ce in collaboration with Kathmandu University this year.

Financial Performance

The overall fi nancial performance of the company is

remarkable in the fi scal year 2075/76. The revenue,

corresponding cost of sales and the profi t have

increased compared to previous fi scal year. The

revenue from consultancy business is NPR 210.64

million and the cost of sales is NPR 138.29 million.

The net profi t before and after the tax is NPR 37.7

million and NPR 25.62 million respectively, which

is an increase by 3. 8% and decrease by 3.77%

respectively compared to the previous fi scal year.

The Company distributed 42.11% cash dividend

amounting to NPR 6.20 million from the net profi t

for F/ 207 /075 as per the resolution passed by

7th Annual General eeting of the Company. The

earnings per share stands at NPR 17 .01 at the end

of F/ 2075/076. The shareholders’ fund and net

worth of the Company has increased by 18.96%

from NPR 102. 5 million to NPR 121.87 million. Total

assets of the Company has increased by 23.95% and

reached to NPR 17 .08 million. The current ratio was

maintained as 2.91:1 as on 31 Ashad 2076.

Human Resource

The Company has continuously maintained its

cross-functional team of consultants, professionals,

technicians and administrators, who has created

a sustainable value to the Client, Society and the

Company. There is a high level of competition for

talent, particularly in the fi eld of hydropower. The

Company has made targeted efforts to strengthen its

brand, partly by collaborating with interesting Clients

on challenging assignments, and partly by structured

leadership and personnel development efforts. The

Company encourages its employees to participate

in national and international trainings and seminars

for the capacity development and performance

excellence. Apart from regular in house interactions

on diverse themes among the staff, the Company

conducts a multiday resident workshop yearly for

the employees and also supports its staff for regular

extra-curricular and recreational activities.

The Company has over 142 professionals working in

its head offi ce, satellite offi ce and project sites.

14, 32%

5,12%

8,19%4,9%

12,2

8%

Feasibility StudyDetailed Design & Tender Document PreparationContruction Supervision & ManagementEnvironmental StudiesDue Diligence ill erifi cationsOthers


Board of Directors

There is no change in the Board of Directors of the

Company in this fi scal year. The existing members of

the Board of Directors are as follows:

SN Name Position

1 Mr Uttar Kumar Shrestha Chairman

2 Mr Pratik Man Singh Pradhan Director

3 Mr Radheshyam Shrestha Director

4 Mr Murali Prasad Sharma Director

5 Mr Ratna Sambhava Shakya Alt. Director

6 Mr Shiva Kumar Sharma Alt. Director

The Directors possess broad range of skills,

qualifi cations and experience. The oard meets

regularly and had Six meetings in the F 2075/076.

All information in connection with the agenda

items being discussed at a meeting of the Board

are provided to the Directors prior to the meeting.

The Directors are responsible for providing strategic

direction to the company, setting up corporate

objectives, monitoring of operational and fi nancial

performance of the company’s activities and the

company’s system of internal control.

Audit Committee

The Board has set up the Audit Committee pursuant

to the requirement of the Company Act, 2006.

The Board has also entrusted the responsibility of

scrutiny, supervision, monitoring and control of the

budget making and implementation of the Company

to the Audit Committee. The Audit Committee has

performed its works and duties entrusted to it

effectively and helped the Board for maintaining the

internal control system and fi nancial governance

of the Company. The Audit Committee had Five

meetings in the F/ 2075/076.

The existing members of the Audit Committee are:

SN Name Position

1 Mr. Radheshyam Shrestha Chairman

2 Mr. Ratna Sambhava Shakya Member

3 Mr. Murali Prasad Sharma Member

Corporate Governance

The Company is committed to build and maintain a

corporate governance framework that creates an

effi cient and disciplined operating environment for

its Board and employees, generates shareholder

value and aims to ensure the long-term success

of the Company. The Company ensures that all our

stakeholders receive clear and consistent messages,

both internally and externally.

The Board is independent of management and

performs the supervisory role whereas; the

management executes the day to day operations of

the Company. The Company has also ensured that

laws and regulations have been regularly observed

and have established good rapport with the Client.

Business Climate, Risks and Mitigation Measures

With the favorable government policy on power

sector, hydropower development in Nepal is swiftly

taking its course to produce adequate energy by

implementing medium to large hydro powers. This

consists inherited opportunities for the consulting

businesses but at the same time there has been

increase in fi erce competition, the associated

risks and challenges that are creating hurdles to

exploit the opportunities and smoothly operate the

consultancy business. Incompetency in execution

of large hydropowers, poor governance and lack of

inter-governmental agency co-ordination, prolonged

administrative procedures for clearances, a long list

of inordinate local demands and a week work culture


are some of the frequent reasons of the project

lagging behind. Despite the Government due effort

in transmission line sector, most of the small size

hydropower projects being developed by IPPs are

constrained by the transmission line problem. This

clearly increases the investment risk, resulting lower

participation rate of the private investors in the

electricity generation projects. In addition, the post-

earthquake reconstruction, opening of government

funded consulting companies, mushrooming of

hydropower consulting fi rms has also affected the

Company’s human resource base. These issues may

limit the business opportunities for the Company in

the long run.

To combat with the challenges and associated

risks, the company is expanding its business

network, increasing cooperation with national and

international fi rms, implementing best practices

focusing on quality and attracting and retaining best

employees. Company has made targeted efforts

to strengthen its brand. Further, coupled with long

legacy and prestigious history of constructing

hydropower projects with complete experience

in engineering design and management, site

supervision including safeguard solutions, the

Company is confi dent to respond to these demands

with robust cross-functional solutions to mitigate its

business risks and achieve the sustainable growth of

the company.

In addition, the Company is establishing

internationally. It has already completed three

projects and is engaged in three hydropower

development efforts in Africa and Pakistan. Further,

recent accelerated developments for power

generation by BPC, the parent company of HCE,

will also mitigate the potential business risks and

challenges to the Company.

Relation with the Clients

The Clientele base of the Company consists of the

government and semi-government entities, local and

foreign developers, and international institutions. At

HCE, everything starts with building relationships of

trust and confi dence, and with complete commitment

to its Clients. The Company begins by listening, and

by truly knowing its Clients and their goals. The

Company takes their needs and challenges and

makes them its own. The Company anticipates the

obstacles and spot new opportunities. Above all,

the Company focuses all its knowledge, skill and

creativity on what its clients need to achieve-big or

small, complex or straightforward and help them fi nd

a way to get it done.

Statutory Audit

/S Prabin oshi Co., Chartered Accountants was

appointed as statutory auditor for F/ 2075/076.

The auditor has issued unqualifi ed report on the

fi nancial statements of the Company for the fi scal

year 2075/76.

Health and Safety

The well-being of employees is fundamental

to the Company. The Company implements and

continuously improves the policies, programs

and structures needed to safeguard the health

and safety of its employees. The Company also

encourages people to be proactive when it comes to

their own health, safety and security, and to report

any situation that may jeopardize their well-being.

The employees have been provided 24 hours GPA


insurance, medical insurance and travel insurance

facilities. Further, the fi re and other general insurance

policies have been taken for the safety of offi ce

premises and other assets.

Corporate Social Responsibility and Outreach Activities

The Company provided fi nancial assistance to the

Apangata Samrakshan Sewa Kendra and Pashupati

Briddha Aashram as a part of its corporate social

responsibility. The Company is committed to

ensure that its activities cause no lasting harm to

the environment and to support the sustainable

development of communities where the Company

works. The Company has been creating a sustainable

engineering and design solutions and helping its

Clients to build projects that improve people’s lives,

while preserving the environment and continuing

to provide value to both their businesses and their

stakeholders for generations. The Company fully

adheres to the principles of human rights, labor law,

environment protection and anti-corruption, which

form the foundation for its positions in corporate

social responsibility.

Future Prospect/Outlook

Future prospects for the Company are closely

connected with market trends, its operational

effi ciencies and advancement in its solutions. Along

with the enormous demands of the services for

small and midium sized hydropower projects, a local

demand for the large hydropower projects and its

auxiliary infrastructures is establishing. The Company

is well placed to offer its sustainable engineering and

cost effective design solutions and to respond to the

demand on large hydropower projects The company

is being strengthened by its increased business

networks, acquisition and development of competent

cross functional human resources, and its increased

agility to adapt to the business environment.

With cumulative experience of more than three

decades since 1986, the Company has been able

to position itself as a local market leader in the

hydropower sector and also been able to establish

its footprint in international market. The completion

of the projects in Kenya and Pakistan and current


engagements in feasibility study and construction

supervision projects in Pakistan has increased both

capacity and confi dence of the Company to expand its

business at international level. These developments

will enhance the Company’s position in coming years.

The recent political development of Nepal

has brought an ample of opportunities for the

engineering consultancy business to work in multiple

sectors in Nepal. Several countries and multilateral

agencies have shown an interest and also have been

negotiating with Nepal for possible investment in

infrastructure projects. Consequently, the Company

is also trying to venture in new possibilities, where it

can work using its core competencies and expertise

in hydropower sector. The Company is carrying out

the consultancy services in Irrigation sector and is

exploring opportunities in water supply, sanitation,

road and education sector as well.

Closing remarks

We would like to express our sincere thanks to all

the stakeholders who have directly or indirectly

contributed for the progress of the Company. We

would also like to thank the various agencies of

the Government, internal and external auditors, our

valued Clients, Bankers and local community for

their support. Further, we extend our thanks to our

employees and management for their continuous

dedication and commitment for fulfi lling their roles

effectively for the betterment of the Company. We are

confi dent that Nepal’s hydropower sector will benefi t

greatly from our insights and experience in the

hydropower engineering services in the coming year.

Thank you,

On behalf of the Board of Directors

Uttar Kumar ShresthaChairmanDate: anuary 1 , 2020


Yet another year completed with success, lots of enthusiasm, and great hope towards the future. Now, Hydro-Consult Engineering (HCE) has more than a decade (10 years) of experience as a separate entity after separating from Butwal Power Company, the parent company in 2009.

As always, there is a tough competition in the market to survive. On top of that, the scenario of hydropower sector portrayed in the market is gloomy. There is lack of suffi cient transmission lines to transmit the generated energy. The planned progress of the transmission line construction is not gearing up as required. Moreover, the undergoing construction of the transmission line is also moving forward in a slow pace.

Many new hydropower projects are undergoing construction by the private entrepreneurs and many more are in the pipeline. The Government is also planning to construct big storage projects. Construction of big storage projects is a need of time so that there won’t be any power shortage. But, if all the planned hydropower goes in construction, then there is no doubt that it is high time to explore the market within the country and abroad, and be proactive and prepare the proper future plan.

There is a huge possibility to consume more energy in the domestic market as Nepal is still the least per capita energy consuming country in the SAARC region. Energy could

be consumed more in cooking, heating, air conditioning, etc.; and it can be encouraged by the variable tariff rate as in the developed countries. The Government has also given a vision of mass transit system like electric fast train and mono rail. Trolley bus, tram, electric bus and electric cars should also be encouraged. So by proper planning, we can increase the domestic energy consumption and also look for the export market to match the generation.

In addition to the storage projects, it is also high time to explore the possibilities of developing Peaking Run-of-River (PRoR) projects and converting RoR projects to PRoR even if it could be for two - four hours peaking. Proper policy, planning and development of the big hydropower projects, peaking hydropower projects and required transmission lines will defi nitely have a tremendous impact in the development of the country. Nepal could also be the leader for the sustainable energy, and clean energy source/ battery in this region.

Despite all these scenarios, performancewise the year 2019 will be remembered as another year of success in HCE annals. The company has achieved signifi cant milestones and completed 11 projects and also signed 14 new projects at both the national and the international level. HCE management is well taking care of the staffs’ insurance, health and safety issues and overall good working environment in the organization. This year, as a corporate social responsibility, HCE has supported the old aged home at the Pashupatinath and also the disabled group/organization to build their project.

The overall fi nancial performance of the company is satisfactory in the fi scal year 2075/76. The revenue and the profi t have increased compared to the previous fi scal year. The revenue from the consultancy business is NPR 210.6 million. The net profi t before tax is NPR 37.7 million. Total assets of the Company has increased by 23.95% and reached to NPR 17 .08 million. The current ratio was maintained as 2.91:1 as on 31 Ashad 2076. The Earning per share (EPS) was NPR 17 .01 in F

CEO’sPerspective

be consumed more in cooking, heating, air conditioning, etc.; and it can be encouraged by the variable tariff rate as in the developed countries. The Government has also given a vision of mass transit system like electric fast train and mono rail. Trolley bus, tram, electric bus and electric cars should also be encouraged. So by proper planning, we can increase the domestic energy consumption and also look for the export market to match the generation.

In addition to the storage projects, it is also high time to explore the possibilities of developing Peaking Run-of-River (PRoR) projects and converting RoR projects to PRoR even if it could be for two - four hours peaking. Proper policy, planning and development of the big hydropower projects, peaking hydropower projects and required transmission lines will defi nitely have a tremendous impact in the development of the country. Nepal could also be the leader for the sustainable energy, and clean energy source/ battery in this region.

Despite all these scenarios, performancewise the year 2019 will be remembered as another year of success in HCE annals. The company has achieved signifi cant milestones and completed 11 projects and also signed 14 new projects at both the national and the international level. HCE management is well taking care of the staffs’ insurance, health and safety issues and overall good working environment in the organization. This year, as a corporate social responsibility, HCE has supported the old aged home at the Pashupatinath and also the disabled group/organization to build their project.

The overall fi nancial performance of the company is satisfactory in the fi scal year 2075/76. The revenue and the profi t have increased compared to the previous fi scal year. The revenue from the consultancy business is NPR 210.6 million. The net profi t before tax is NPR 37.7 million. Total assets of the Company has increased by 23.95% and reached to NPR 17 .08 million. The current ratio was maintained as 2.91:1 as on 31 Ashad 2076. The Earning per share (EPS) was NPR 17 .01 in F

Annual Report 2019/20 15 Annual Report 2019/20 15

2075/76. Provision for Income Tax amount is NPR 12.91 million for the F 2075/76.

The Company has altogether 142 professional staffs working regularly in its head offi ce, satellite offi ce and project sites. Apart from the regular team, HCE has good networking with the local and the international experts in individual as well as in the institutional basis. Because of the hard work and dedication of the team, most of our Clients and local and international fi rms are keen to join hands together with CE for bigger challenges and for bigger assignments.

This year has been one more year for HCE to add more knowledge, experience more challenges in the work and learn more experiences from the different organizations and the experts; thus strengthening the organization in all the fonts like technical and managerial. This all has ultimately enhanced the overall Company’s capacity and benefi ts leading to the expansion of the Company.

For all the support and for achieving the great success one year after another; I, personally as a CEO of the company would like to thank all the stake holders, our private and public Clients and Partners, Banks, Government Organizations, Board Chairman and Board Directors; and last but not the least to our hard working dedicated staff/team.

As we always say, our driving force is the satisfaction of our Clients by continual improvement to keep the long term relationship. We enjoy taking challenges; and we are dedicated and we will work harder as a team to generate practical and cost effective engineering solutions.

Manohar ShresthaChief Executive Offi cer


A sustainable growth and perpetual existence of a corporate house can be achieved through properly guided, directed and controlled governance. Based on three pillars of corporate governance - transparency, accountability and integrity, HCE’s Board of Directors is maintaining a good governance of the company in order to safeguard its stakeholder’s interest, form a solid professional relationship among its stakeholders, which include board directors, managers, employees, and most importantly, shareholders and the Client; and make a continual progress of the company. Further, corporate governance at HCE includes the management of risks, safeguarding of assets, ensuring compliance, preservation of the rights of the shareholders, management and the employees and enhancing company’s goodwill in the corporate sector.

HCE has adopted following broad principles with the objective of adhering to the highest standard of governance through continuous evaluation and benchmarking:

• The Board is constituted with well experienced members having proven corporate leadership.

• There is 100% representation on Board by non-executive directors for proper supervision on Executives and has appointed the Chief Executive Offi cer (CEO) to carry the affairs of the company with competent offi cers.

• The strategies adopted and administration governance is transparent and follows adequate procedures.

• The Company practices high level of disclosures for dissemination of corporate, fi nancial and operational information.

• The Company has formed Audit Committee and Budget Committee represented by the non-executive directors.

• The Board has entrusted the CEO to run its affairs and the CEO is responsible to the Board.

• The Meeting of the Board of Directors is conducted on regular basis and the Directors actively take part in the discussion and resolution on the agendas presented.

• The Board is regularly informed about the progress of the projects and takes consent of the board in the matters where required.

The Company has well defi ned corporate structure that establishes checks and balances and delegates decision making to appropriate levels in the organization to all its stakeholders.

• HCE has provision of internal audit on quarterly basis. The internal audit function is outsourced to maintain independence and fair appraisal of company’s governance system.

• All the Operations are carried out based on the written procedures and manuals of the company

For effective fi nancial control budget formulation, approval and evaluation are conducted on quarterly basis.

Board of Directors

HCE Board Members act in good faith in the best interest of the company and are well aware of their individual and collective responsibility towards the institutional shareholders. HCE Board of Directors consists of four members and two Alternate Directors. The Board is chaired by Mr. Uttar Kumar Shrestha, the CEO of BPC. There are four representatives including one Alternative Director from BPC, two representatives from PEEDA including one Alternative Director. A total of 6 Board meetings were conducted during the fi scal year 2075/76(2018/19).

The attendees of the meetings were:

CorporateGovernance Report

Transparency

Accountability

Integrity


SN Name Position Number

of meeting attended

1 Uttar Kumar Shrestha Chairman 62 Pratik Man Singh Pradhan Director 63 Radheshyam Shrestha Director 54 Murali Prasad Sharma Director 65 Ratna Sambhava Shakya Alt Director 17 Shiva Kumar Sharma Alt Director 08 Manohar Shrestha Chief Executive Offi cer 69 Hari Budathoki Company Secretary 6

The roles of the Board of HCE are to:

1. Ensure legal and internal control compliance

2. Review, monitor and approve major fi nancial and corporate strategies

3. Review, monitor and approve budgets and fi nancial results and approve policies and business strategies

4. Delegate appropriate authority to the management to conduct business activities effectively and effi ciently

5. Ensure goal congruence between the shareholders and the management through good governance

6. Work for the benefi t of the institutional shareholders and the company.

Internal Audit

To maintain the independence and objectivity of risk management fair fi nancial and accounting procedures and effective control and safeguard of assets, the internal audit of HCE was outsourced to M/S S.R Pandey & Co. The internal audit was carried out on a triannual basis and reports were submitted to the Audit Committee. The HCE management has effectively implemented the suggestions received from the internal auditor and the decisions of the Audit Committee.

Functions of the Internal Auditor:

1. To review and recommend on the procedures and internal control system.

2. To ensure that the laid down guidelines and procedures are adequate to safeguard the company’s assets and mitigate the associated risk.

3. To ensure that the risk management policies and procedures have been developed and implemented effectively.

4. To review adherence to all the legal compliances and constructive obligations by the company

External Audit

/s Prabin oshi Co. audited the books of accounts of CE for the fi scal year 2075/6 (2018/19). CE has received the unqualifi ed NFRS complied audit report for its fi nancial statements.

Management and Execution

HCE has a blend of professionals to manage the business of the company. The HCE executive team is led by its CEO, Mr. Manohar Shrestha. The Board of HCE oversees the business operation and guides the management on strategic issues.

Code of Conducts and Ethics

HCE has a set of code of conducts and ethics to be complied by all the Staff, Management, Board and the organization. HCE believes in good corporate citizenship and ethical values. HCE adheres to professional competence, professional behavior, confi dentiality, objectivity and integrity in all its business activities.

Shareholding Pattern

HCE has two institutional shareholders. The shareholding details are as follows

117,78580%

29,44620%

BPCPEEDA


ShareholderNumber of Shares Held

Shareholding %

Butwal Power Company Ltd (BPC) 117,785 80%

People, Energy andEnvironment Development Agency (PEEDA)

29,446 20%

Total 147,231 100%

Transparency And Disclosures

HCE values the corporate governance principles and maintains transparency in its business operations and disclosures as required. The disclosures on related party transactions and signifi cant accounting policies are made in the notes to accounts section of the fi nancial report.

Shareholders ’ Information

Butwal Power Company (BPC)

Butwal Power Company (BPC) stands today with around 5 years of experience in the hydro-power industry and has placed itself as one of the leaders in the energy sector. The core business areas of the company are generation and distribution of electricity.

Pursuing the privatization process in 2003, the Government of Nepal handed over majority

ownership and management control of BPC to private investor on public–private partnership model. BPC is registered with the Securities Board of Nepal and listed in Nepal Stock Exchange Limited. Starting off with electrifi cation plan of a small city in the Southern Hills of Nepal, BPC is the only enterprise which can look back to a fi ve decades long history of sustained growth in the country and a track record of a pioneering multi-faceted capacity building initiatives in hydropower development. With its new major projects Nyadi, Kabeli-A and Lower Manang Marsyangdi, BPC will have installed capacity of nearly 300 MW of generation facility in the near future.

Name : Butwal Power Company Limited

Registration number : Pa.Li.No.3-0 9/50

Date incorporate : 29 December, 1965 (2022/09/14 BS)

Date Converted into public limited Company : 17 February, 1993

(2049/09/06 BS) Registered/Corporate Offi ce : Gangadevi Marga-313,

BuddhaNagar, Kathmandu, Nepal

Stock exchange listing : Nepal Stock Exchange (NEPSE), as BPCL


People, Energy & Environment DevelopmentAssociation (PEEDA)

People, Energy & Environment Development Association (PEEDA) was established in 1998 through the joint effort of various hydropower related organizations and United Mission to Nepal (UMN) for the enhancement of renewal energy sector in Nepal. PEEDA aims to mobilize local as well as external resources to harness the indigenous resources of the country thereby promoting poverty alleviation activities. It focuses mainly on institutional development, participation with stakeholders at grass root levels in development activity, research and lobbying for policy change. PEEDA’s team, with its gained experiences in the energy and development sectors, envisioned that economic development can be achieved through sustainable energy development activities, with particular emphasis of seeing this development reach the poor.

PEEDA has also been supporting institutions which have a goal of serving the needs of those developing the water resources of Nepal. It owns 20% shares of

ydro-Consult Engineering Ltd and 50.08% shares of Hydro Lab Pvt Ltd.

PEEDA has also conducted several training events related to management of the energy sector with the aim of building the capacity of people involved in the

development sectors. It has also collaborated with other organizations in the research and development of Pico Hydro and has regularly been organizing workshops and seminars to promote such activities.

Name : People, Energy & Environment Development Association (PEEDA)

Registered At : District Administration offi ce, Kathmandu

Registration number : 85/05 /55

Date incorporate : 17 August, 1997 (205 /05/01 S)

Registered At : Social Welfare Council (SWC)

Registration number : 19 5

Date Incorporate : 20 March, 2006 (2062/12/07 S)

Registered/Corporate

Offi ce : DevkotaSadak, Mid Baneshwor, Kathmandu, Nepal


Mr Uttar Kumar Shrestha is the Chief Executive Offi cer of Butwal Power Company (BPC) and is responsible for its overall operation and management. Prior to oining 1 PC, he was the anaging Director of Nepal Electricity Authority (NEA). e has served NEA for more than 20 years in different capacities. r hrestha holds sound nowledge on hydropower development, pro ect fi nancing, negotiations with IPPs and extensive experience in negotiation with different bilateral and multilateral donor agencies, local fi nancial institutions for fi nancing and implementation of various pro ects. r hrestha has attended various Executive anagement Development training

programs and has participated as an expert in various national and international forums related to hydropower development.

e had also served various hydropower companies as a Chairman/Board ember during his service period at NEA. e was also a member of the Electricity Tariff Fixation Commission, appointed by overnment of Nepal. Presently, he also holds the board directorship in CI International Nepal ydropower oint Development Pvt Co Ltd Board ember of Nepal ydro Electric Co. Ltd, hudi

ydropower Co. Ltd, uransh Energy Ltd Alt. Board ember of Nyadi ydropower Ltd and abeli Energy Ltd. imilarly, he is also associated with various professional organizations such as anagement Association of Nepal ( AN), The Institute of Chartered Accountants of India, The Institute of Chartered Accountants of Nepal, Nepal

ydropower Association (N A), Electricity Development Council (EDC), Independent Power Producers Association of Nepal (IPPAN) and International Association of Electricity eneration, Transmission

Distribution - Afro Asian (IAE TD) r hrestha is a Certifi ed Chartered Accountant

from the Institute of Chartered Accountants of India and holds asters in Business Administration degree from Tribhuvan

niversity, Nepal.

r hrestha holds the position of ice-President-Finance in Butwal Power Company Limited (BPC). r hrestha is responsible for BPC s fi nancial operations, investor and sta eholder relations. e is also the Chairman of Audit Committee of ydro-Consult Engineering Ltd. r hrestha has served for 0 years in different positions in Nepal Rastra

Ban (NRB), the Central Ban of Nepal. e has held the position of Directors of Financial

anagement Department and various other Departments at NRB. e had also wor ed as Professional Accountant in C C Company and R Ba racharya Co, Chartered Accountant fi rms after the NRB service.

A Fellow Chartered Accountant (E A) of the Institute of Chartered Accountants of India and Institute of Chartered Accountants of Nepal, r hrestha also holds a aster s Degree in Commerce from Tribuvan

niversity.

r Pradhan is the ice-President for Business Development and Pro ect Function at Butwal Power Company (BPC), a leading private sector hydropower developer in Nepal.

r Pradhan is a hydropower planning and development expert with over 29 years of experience in the planning and preparation, design, development and implementation of the hydropower pro ects in Nepal. is ey experiences include providing technical and managerial oversight of implementing and upgrading of hydropower pro ects, preparing of the pro ects for implementation, and wor ing on environmental hydraulics issues.

r Pradhan is currently involved in challenging assignment to plan and development of around 1000 in arsyangdi river in oint venture with Chinese partners from ichuon Province. The ey responsibility lies

in streamlining the sequential pro ects into Cassade model of development and optimizing them for maximum benefi t. e completed the challenging wor s of upgrading and commissioning of the 9.4 Andhi hola

ydroelectric Pro ect that has been operating successfully. pon satisfactory planning and preparation of 7.6 abeli A ydropower Pro ect and 0 Naydi ydropower Pro ect, he was instrumental in getting these pro ects under construction and has been supervising them from the begining. r Pradhan is fully responsible for the planning, development and implementation of new hydropower pro ects, li e 100 Lower anang arsyangdi

ydropower Pro ect, 8.5 Chino ydropower Pro ect and preparing for 160 ugu arnali Pro ect. r Pradhan has provided leadership in a hydraulics research laboratory which focused on solving hydraulic related problems in the design of headwor s in sediment loaded rivers in Nepal and the outh Asia region. e has also had extensive experience in the construction of dams, inta es, and tunnels for a number of hydropower pro ects in Nepal. r Pradhan has a Bachelor s degree in Civil Engineering from India and a aster s in cience in ydropower Planning and Development from the Norwegian

niversity of cience and Technology, Norway, as well as a second aster s degree in Civil and Environmental Engineering from the niversity of ichigan, Ann Arbor, A.

Mr. Uttar Kumar ShresthaChairman

Mr. Radheshyam ShresthaDirector

Mr. Pratik Man Singh PradhanDirector

Board Members’ Brief Resume


r harma has gained experience of more than 48 years in general management, fi nancial management and legal fi eld.

r harma has cumulative wor ing experience of around 2 years (from 1968 to 1991) with the overnment of Nepal holding different position relating general administration, fi nancial management and udicial services. Besides, r harma has wor ed for more than 27 ears as legal and management consultant in private sector and is a well nown practicing lawyer and legal consultant for hydropower industries of Nepal. e has provided legal advice and consultancy service to various national and international organizations li e overnment of Nepal, Asian Development Ban , NDP,

I etc. e had served as legal adviser and company secretary to Butwal Power Company Ltd, imal ydro and eneral Construction Ltd, Nepal ydro and Electric Co Ltd, hudi ydropower Company Ltd, and abeli Energy Ltd. Besides, he has been serving as legal adviser to Chilime

ydropower Company Ltd, pper Tama oshi ydropower Company Ltd, an en al Bidyut

Company Ltd and addhe Bhote oshi ydropower Company etc. Presently, r harma is a member of Nepal Bar Council,

Nepal Bar Association and upreme Court Bar of Nepal, Chairperson of People, Energy Environment Development Association (PEEDA) and ember of Council of Arbitration. r harma is also the Chairperson of the Board of Directors of

ydro Lab Pvt Ltd as well.

r harma has attained asters of Commerce and Bachelor of Law Degrees from Tribhuvan niversity of Nepal.

r hiva umar harma brings more than 8 years experience of Construction

anagement to the CE Board. e oined imal ydro and eneral Construction Ltd

in 1981 as a ite Engineer and held the positions of Pro ect anager, anager of Engineering and eneral anager before leaving the company in 201 . At present, he is the anaging Director of outh Asian Infrastructure Pvt Ltd.

Apart from serving in the CE Board, r harma is also the Board Director of ydrolab Pvt Ltd and Executive Committee ember of PEEDA. e has also served

as Board Director of Nepal ydro and Electric and imal ydro and eneral Construction Ltd in the past. In addition, he was associated with Rairang ydropower Development Company and Nepal alvidyut Prabardhan Tatha Bi as Ltd as Chairman Nepal Norway Alumni Association as President and Nepal ydropower Association as ice President. e also holds professional membership of Nepal Engineering Association, Nepal eological ociety and Nepal ydropower Association.

r harma holds Post raduate Course in ydropower Development from Norwegian niversity of cience and Technology,

Norway and aster of cience in ining Engineering from Peoples Friendship

niversity, oscow, Russia.

r Ratna ambhava ha ya brings 6 years of experiences in the fi eld of Finance, Auditing and Corporate management to the CE Board. r ha ya is with BPC since 1994. As a Chief Finance anager in BPC, he was successful in achieving National Best Presented Annual Report Award from ICAN in manufacturing sector for 11 years (2005-2018) for excellence in fi nancial governance and transparency in fi nancial reporting. This had been recognized from outh Asian Federation of Accountants by

awarding certifi cate of erit for four years for Corporate overnance Disclosures Awards in 2009, 2010, 2014 and 2015. On his leadership as ead of Corporate, r ha ya was successful to resolve the con ict with

nion having fi ve years CBA Agreement with Employees nion maintaining sustainable industrial peace in BPC.

r ha ya holds aster s Degree in Business Administration and A in umanities from Tribhuvan niversity.

Mr. Murali Prasad sharmaDirector

Mr Shiva Kumar SharmaAlt Director

Mr Ratna Sambhava ShakyaAlt Director


Education: MSc in Hydraulic Structure, Lumumba University, Moscow, Russia; MSc in Hydropower, Norwegian University of Science and Technology (NTNU), Norway.

Experience: Over 30 years of experience in design, construction management/ supervision and overall planning of hydropower projects and consulting business. Design experience in various projects from 1 MW to 446 MW projects in Nepal and abroad. Working experience in Bhutan, India, Pakistan, Sri Lanka and Kenya. He has experience working with international firms Viz Statkraft Engineering, Multiconsult (then Norplan) Norway, Bernard Austria, Fichtner Germany, Hydro Tasmania, Mott MacDonald etc.

Mr Shrestha is the Founder Member and former Treasurer of Nepal Hydropower Association (NHA) and President of Nepal Norway Alumni Association

Education: MSc in Hydropower Engineering, Odessa State Academy of Civil Engineering and Architecture, Odessa, Ukraine.

Experience: Over 24 Years of professional experience in engineering design, tender document preparation/procurement process, project management/ construction supervision in hydropower engineering consulting business. Experienced in I MW to 300 MW hydropower projects in Nepal and abroad for feasibility studies, detail design, due diligence, construction supervision as well as engineering management.

Consulting job experience with various international organization such as Acres International (Canada), Canadian International Water and Energy Consultant (CIWEC), BPR Inc. (Canada), Norplan, Tractable Engineering GmbH. etc.

Recently, involved and successfully completed the Detail Design and Tender Document preparation of Tamakoshi V HEP (99 MW) of Dolkha and Gura Hydropower Project (5.6 MW) in Nyeri Kenya as an International Consultant for Kenya Tea Development Agency (KTDA). In this project he was responsible for Overall project management, design/ documents review & approval, quality control/construction supervision, Bill verification/recommendation for payment and coordination with Client as well as Contractor etc. At present He is working in the position of Divisional Head of implementation division.

Education: PhD Fellow, University of Newcastle, Upon Tyne UK; MSc in Hydraulic Engineering, IHE Delft, Technical University of Delft, Netherlands; BSc Eng, in Civil Engineering University of the East, Manila, Philippines.

Chattered Engineer Reg. No.: 575823, Engineering Council of UK

Experience: Over 29 years of professional experience in design and construction supervision of hydraulic structures, bridges, hills roads and tunnels. Key experience in structural analysis and design of various components of hydropower projects, structural and hydraulic design of bridges. Mr Pandey has managed construction projects and was involved in preparation of safety standard for hydropower projects. He has also served as Course Coordinator of MSc in Bridge Engineering in Institute of Engineering, Tribhuvan University of Nepal. Mr Pandey is also the Author of different books in Bridge Engineering & Hydraulic Engineering.

Mr. Pandey is the Coordinator of the PEng Title Award for Engineering Council of Nepal (NEC) on-behalf of the “Engineering Council of United Kingdom (UK)”, London and has been heavily involved for the Committee Review of the Executive Committee of the Nepal Engineering Council Board.

Mr Manohar Shrestha Chief Executive Officer

Mr Saroj Lal Shrestha Divisional Head-Implementation Division

Mr Bharat Raj Pandey Chief Engineer

Profi le of The Key Staff Members


Education: MSc in Water Resources Engineering and Management from Asian Institute of Technology (AIT), Thailand; BE in Civil Engineering, IOE, TU, Nepal; MA Sociology from TU, Nepal.

Experience: Over 19 years of professional experience in planning, designing and implementation of hydropower projects with expertise of hydrologic and hydraulic modeling, hydrological analysis, hydraulic and structural design of hydropower components, tender/contract document preparation, evaluation of bids and negotiation with bidders and Contract management.

He has experience of leading the project team as team leader/project manager for feasibility study, detail design, tender/ contract document preparation, contract management, construction supervision and due-diligence study of the various size of projects ranging from 3 MW to 300 MW.

Education: MSc (Environmental Management), National University of Singapore, Singapore; MA (Sociology and Anthropology), TU, Nepal; BSc (General Forestry), Institute of Forestry, Nepal; BSc (Biology), TU, Nepal.

Experience: An environmental professional with over 23 years of experience in both natural and built environment management. Adept in conservation management as well as technical monitoring across various environmental and social media; his core abilities include conducting in-depth research, analysis and review towards the provision of advisory services in the field of environmental management, green product and services, environmental and social safeguards and management frameworks, environmental due diligence and urban environmental management. He has worked with Nepal Government, NEA, UNDP, FINNIDA, AUSAID, NORAD, WE, IFC, ADB, IHA and independent Power Producers in his professional career.

He has overseen studies of hydropower projects arranging from I MW to 456 MW and transmission line projects ranging from 33 kV to 400 kV for fulfilling international financing institution and Government safeguard requirements. At present, he is also overseeing the business relations for HCE and has successfully negotiated technical and socio-environmental assignments with international and national business partners.

Education: MSc in Geology Central Department of Geology, TU, Nepal, 2003.

Experience: Over 15 years of national and international professional experience in managerial and technical fields in the per-feasibility, due-diligence, feasibility, detail design and construction supervision stages of hydropower development. His key expertise include supervision of under construction project leading at front in the area of project control (quantitative & qualitative) and management of interfacing work packages, planning and mobilization of human resources, planning and conducting surface/ subsurface field investigations, preparing engineering geological and hazard maps, Geological Base Line Report (GBR) and Risk Management Plan (RMP); rock slope stability assessment, detail underground design including proper rock support system; seepage and stability analysis of rock fill dams; and mineralogical analysis of suspended river sediments. In addition, he also has experience in geological investigation for mining industry (limestone deposit for Cement Industry) and teaching experience in Environment Geology.

Mr Shyam Bhusal Divisional Head-Engineering DesignDivision

Mr Pranav Acharya Divisional Head-Environment, Social and Business Relations

Mr Diwakar Khadka Manager CadreResident Engineer: Mistri Khola Hydroelectric Project (42 MW)


Education:

M.Sc. in Structural Engineering (2010), IOE, TU, Nepal B.E. in Civil Engineering (2007), Kathmandu Engineering College, TU.

Experience:

Over 12 years of professional experience in Structural Analysis and Design of reinforced concrete structures, especially hydraulic structures. He has been extensively involved in preparation of Design Base Memorandum/Guidelines for detail engineering study, technical specifications, quantity estimation, cost optimization and rate analysis for various projects. Also, he has intensive experience in the preparation and quality control of structural design report and construction drawings. He also comprises a reliable experience working and coordinating with construction supervision team on site regarding design issues. Moreover, he has been continuously engaged in capacity building of civil engineers in stability analysis, structural analysis and design of structures associated with hydropower projects

Education: EMBA with major Finance, PU, Nepal; BE in Electrical and Electronic Engineer (Power& Control), KU, Nepal

Experience: Mr Phaiju holds above 11 years of experience in the hydropower and energy sector with expertise in the field of electro-mechanical and transmission line design. He has been involved in design and review of different projects starting from Feasibility Phase to Detail Design Phase, ranging from I MW to 86 MW. He also holds experience in construction supervision as commissioning engineer upto 10 MW projects. With successful accomplishment of several key assignments, Mr Phaiju demonstrates sound competence to tackle and settle diversified issues/challenges related to due diligence, pre-feasibility, feasibility, detail design and construction supervision of the projects. Mr Phaiju has also attended relevant training courses that have further polished his technical skills and knowledge in the sector.

At present Mr. Phaiju is involved in the design review of Nyadi Hydropower Project, Mistri Hydroelectric Project, Ghar Khola hydropower project and Solu Khola (Dudhkoshi) Hydroelectric Project which is under Construction.

Mr Rakesh Sapkota Manager Cadre Sr. Structural Engineer

Mr Ujwol Phaiju Manager CadreSr Electrical Engineer

Education: Msc in Construction Management (Running), Nepal Engineering College (NEC) BE in Civil Engineering, TOE, Kathmandu Engineering College (KEC), TU, Nepal.

Experience: Completed 11 year of professional experience in construction supervision, detail design and feasibility study of Hydropower projects ranging from 500 KW to 13.6 MW. Responsible for the overall project management, quantity variance, contractors claims with respect to the contract document, update the project cost with respect to the progress, final bill verification, as built drawing as well as operation manual and preparation of final report

Mr Uttam Dhakal Manager CadreResident Engineer: Ghar Khola Hydropower Project (14 MW)


Education: BE in Civil engineering, IOE, Tribhuwan University (TU), Nepal.

Experience: Mr Yakami holds over 9 years of professional experience in planning, feasibility studies, detail design and construction management of hydropower projects. Design experience includes hydraulic design of headworks and waterway system; detailed engineering design of hydropower projects; due diligence studies.

During his professional tenure, he was involved in detailed design, tender document preparation, due diligence study, verification of IPC bills, construction supervision and preparation of proposal/ bid for consultancy services for the government and private jobs in national and international levels.

Currently he is involved as Deputy Resident Engineer for Management of Construction of Mistri Khola Hydroelectric Project (42MW). His role and responsibility in the project is overall quality control and assurance, drawing control at site, critical decision making during construction phase, verification of bills, monitoring of compliance of the Contracts and coordination with multiple contractors.

Mr Lunish Yakami Manager Cadre Hydro-Power Engineer

Education: Msc. in Hydropower Development, Norwegian University of Science and Technology (NTNU), Norway; Bachelor of Civil Engineering, Kathmandu Engineering College, Tribhuvan University (TU), Nepal

Experience: Over 13 years of professional experience in hydropower planning, design and construction monitoring/supervision of hydropower projects in Nepal and overseas. Key experience in hydraulic design of headworks and waterway, Due diligence of hydropower projects, Design of rock support for water tunnels, Project Coordinator/Project manager for feasibility and detail engineering design of hydropower projects in Nepal and overseas. Mr. KC has work experience in wide range of hydropower projects from 1MW to 1410 MW in Nepal and abroad. Currently, Mr. KC is working as Resident Engineer for Solu Khola (Dudhkoshi) Hydroelectric project, 86 MW in Solukhumbu district.

Mr Nishant KC Resident EngineerSolu Khola (Dudhkoshi) Hydropower Porject (86 MW)

Education: MA Sociology, TU, Nepal

Experience: Over 15 years of professional experience in administrative works that includes human resource management and outsourcing, travel management, insurance issues, health and safety and day to day office administration. Mr Joshi has also handled national and international communication and liaising along with event managements successfully.

Mr Ashok Joshi Manager CadreAdministration & Human Resources


Education: PhD Candidate, Kathmandu University, Dhulikhel, Nepal in collaboration with Korea Maritime and Ocean University (KMOU), Republic of Korea; Master’s Program in Planning and Operation of Energy System (MPPOES), Department of Mechanical Engineering, Kathmandu University, Kavre, Nepal in collaboration with Norwegian University of Science and Technology (NTNU), Norway; Bachelor in Mechanical Engineering, Tribhuvan University, Institute of Engineering (IOE), Pulchowk Campus, Lalitpur, Nepal.

Experience: Over 11 years of professional experience in design and construction supervision of Hydro power projects. Key experience in design of steel structures which includes turbines, hydraulic gates, expansion joints, penstock pipe, and Bifurcation pipes. Hehad led numerous mechanical works of hydro Power Projects and involved in fabrication and installation of Hydro and Electro Mechanical components. He is capable in planning, Budgeting, Quality control, finance, logistic, management and documentation. Recently, he is involved in Construction Supervision; Due Diligence; Interim Payment Certificate (IPC); Detail Project Report (DPR) and Preparation of the Tender Documents for the Mechanical Equipment.

Education: M.Sc. in Geotechnical Engineering (IOE, Tribhuvan University); B.E. in Civil Engineering, (Kathmandu Engineering College, Tribhuvan University)

Experience: Mr. Lamichhane has over 9 years of professional experience in planning, design and construction of hydropower, irrigation and road projects.

His expertise lies in the field of Geotechnical Engineering, which involves geotechnical investigations, laboratory testing, planning and design of underground structures (tunnels, caverns, shafts, etc.), slope stability problems, different types of foundations and retaining structures, etc.

He is also very skilled with project management, construction planning, contract engineering, quality control of works and report preparation among others.

Mr Oblique Shrestha Manager CadreSr Mechanical Engineer

Mr Saphal Lamichhane Manager CadreSr Geotechnical EngineerTeam Leader: Nyadi Hydropower Project (30MW)

Hydro-Consult Engineering Limited26 Hydro-Consult Engineering Limited

Education: Master in Business Studies (MBS), TU, Nepal

Experience: Over 19 years of professional experience in accounting and finance administration. Mr Ranjit has experience of overseeing accounting and financial matters of multiple sectors that indudes Non-Governmental Organizations, co-operatives, manufacturing companies and consultancy business.

Mr Rabindra Ranjit Manager CadreAccounts and Finance

Annual Report 2019/20 27 Annual Report 2019/20 27

Education: MSc. in Water Science and Engineering, THE Delft, Delft, The Netherlands; BE in Civil Engineering, Institute of Engineering (Pulchowk Campus), Tribhuvan University

Experience: Over 9 years of professional experience in design and construction supervision of hydraulic structures, bridges and tunnels. Key experience in hydraulic design, structural analysis and design of various components of hydropower projects in Nepal, Noway and Uganda.

Mr Pravash Mool Manager Cadre Hydropower Engineer

Education: MSc in Geology, Central Department of Geology, TU, Nepal, 2004.

Experience: Over14 years of professional experience in the field of geological study of various phases of hydropower projects. It includes per-feasibility, feasibility, due-diligence, and detail design and construction supervision of hydropower projects. He has been involved in construction supervision, monitoring and quality control of tunneling works, planning and conducting of surface/ subsurface field Investigations, preparing engineering geological maps and geological model, assessment of rock mass quality and rock support design for underground structures

Mr Surendra Shrestha Manager Cadre Sr Engineering Geologist

Education: MSc in Geology, Central Department of Geology, TU, Nepal, 2004.

Experience: Over14 years of professional experience in the field of geological study of various phases of hydropower projects. It includes per-feasibility, feasibility, due-diligence, and detail design and construction supervision of hydropower projects. He has been involved in construction supervision, monitoring and quality control of tunneling works, planning and conducting of surface/ subsurface field Investigations, preparing engineering geological maps and geological model, assessment of rock mass quality and rock support design for underground structures.

Mr Surendra ShresthaManager Cadre Sr Engineering Geologist

Education: MSc in Environmental Management, School of Environmental Management and Sustainable Development (SchEMS), Pokhara University (PU), Nepal.

Experience: Mr Bhattarai holds over 16 years of professional experience in environmental studies (EIA/ESIA/IEE) of various hydropower and transmission line projects, forest resource inventory, resource loss estimation, planning and implementation of Environmental Management and Monitoring Programs (EMMP) in manufacturing industries and silvicultural assessment of different forest types. Mr Bhattarai has accomplished a number of environmental study projects as an Associated Team Leader/Forest Expert/Environmentalist and as a study member. He also exhibits expertise on post construction environmental performance studies of transmission and distribution projects and environmental due diligence studies of hydropower projects for bank financing. As an Environmental Expert, Mr Bhattarai also reviews environmental reports for government and development partners.

Mr Balram Bhattarai Manager CadreSr Environmentalist


Education: MSc in Hydropower Development, NTNU Norway; B.E in Civil Engineering, Institute of Engineering, Tribhuwan University, Nepal.

Experience: Over 7 years of professional experience in hydropower. Experience in Feasibility study of various hydropower projects and multipurpose projects including water resource management, hydrological analysis, hydraulic design of civil components, operation modality, irrigation studies etc. Additional experience includes report writing, proposal preparation and bid document preparation for various consultancy services

Ms Anugya Sapkota Manager CadreHydropower Engineer

Education: M.E in Earthquake Engineering, Khwopa Engineering College, Purbanchal University; B.E in Civil Engineering, Pulchowk Campus, IOE, Tribhuvan University.

Experience: Over 9 years of professional experience in structural design and construction supervision of buildings, thermal power and hydropower structures. Key experience in structural analysis, design and drawing of various hydropower components as well as buildings, construction supervision, quantity estimation and CAD Drawing of building structures, supervision of BE final year project.

Education: MSc in Hydropower Development, NTNU, Norway; BE in Civil Engineering, IOE, Pulchowk Campus, Nepal.

Experience: Over 8 years of professional experience in study of different hydropower projects covering various areas such as hydrological studies, project layout studies, optimization studies, hydraulic design of civil components, quantity and cost estimation and tender document preparation. Has been involved in due diligence studies and also in proposal preparation for consultancy services for different government and private jobs.

Mr Pujan Ratna Shakya Manager Cadre Structural Engineer

Ms. Sajana Marahatta Manager CadreHydropower Engineer


Education: BE in Civil Engineering, Tribhuvan University, Nepal.

Experience: Over 6 years of professional experience in detailed engineering design and construction esp. in hill roads, tunnels and water supply. Worked in the proposal/ bid preparation for consultancy services for private jobs.Key experience in hydraulic analysis and design of various components of hydropower projects, preparation of project schedule and contracts including the tender documents.

Mr Anamaya Upadhyay Manager CadreContract Engineer

Education: European Master in Project Management, Fachhochschule Dortmund, Germany

Experience: With over 8 years of professional experience in business development, project management & coordination of various projects; Mr. Rayamajhi is skilled in Enterprise Resource Planning, Business Intelligence, Database technologies, contract management & administration, project financial appraisals and several quality standards

Mr Deyoz Rayamajhi Manager CadreBusiness Development


Education c in Engineering eology from the niversity of Leeds, nited ingdom in 2000. c in eology from the Tribhuvan

niversity, Nepal in 1992,Experience Over 26 years of experience in geology and geotechnical fi eld in hydropower sector from pro ect identifi cation, site investigations, feasibility study, detailed design and construction supervision. e has carried out several feasibility studies and detailed design of hydropower pro ects ranging from 1 to 800 in Nepal and India. e has gained good nowledge on site selection, site investigation, construction of geological model, identifi cation of georis s and design of ma or hydropower underground structures site investigation planning, data acquisition and interpretation for ground conditions site and layout selections of ma or hydropower structures geological mapping, identifi cation of faults/shear zones and construction of geological model Identifi cation and mitigation of georis s evaluation of roc mass and roc support design of underground structures prediction and roc support design in roc squeezing and roc burst construction, supervision, quality control and monitoring of tunnelling wor s preparation of specifi cation eotechnical Baseline report and guidelines for underground structures due diligence studies of hydropower pro ects road ris assessment and mitigation measures landslide study and mitigation measures.

r. unuwar has conducted several trainings as resource person on eological and ydrological issues for

ydropower Design, Organized by IC , 1-5 April 2019.

Detailed Design and Feasibility tudy of Road Tunnel, ointly Organized by ociety of Consulting Architectural and Engineering Firms ( CAEF) and Nepal Tunnelling Association (NTA), 25-26 eptember 2019 and 27-29 une 2018, Nepal.

ydropower Financing Ris s, Organized by IC , 0 an 2014, Nepal.

r. unuwar has presented and published 22 papers in International and National Conferences, ournals and proceedings.

Mr Subas Chandra Sunuwar Sr Consultant, Engineering Geology and Underground Works

Education: PhD in Sedimentation and sediment handling in Himalayan reservoirs, 2008-2012, Norwegian University of Science and Technology (NTNU), Trondheim, Norway; M.Sc. in Hydropower Development, 1999-2001, Norwegian University of Science and Technology (NTNU), Trondheim, Norway.; M.Sc. in Civil Engineering with honours (Specialization in Hydraulics), 1986-1992, Russian Peoples Friendship University, Moscow.

Experience: Dr Shrestha holds over 27 years of professional experience in hydropower planning, feasibility studies, detail designs, hydraulic designs and structural analysis of more than 35 hydropower projects ranging from 1 MW to 280 MW. In his career, he has been involved in project design, management, financial and economic analysis of hydropower projects. He has also been involved in detail design, hydraulic design, design and physical hydraulic modeling of headworks, intensive research on sediment measurement and cost effective sediment handling of various hydropower projects as a team leader

Dr Hari Shankar Shrestha Sr ConsultantHydropower

Education: MSc in Electrical Engineering with higher first division, Belorussian Polytechnic Institute, Minsk, USSR; Bachelor Art in Economics and Political Science form TU, Nepal; Electrical Engineering Diploma, TU, Nepal.

Experience: Over 41 years of professional experience in design of electromechanical equipment, supervision on Factory Acceptance Testing (FAT), Installation, Testing and Commissioning of electromechanical equipment of hydro power projects in Nepal, Pakistan and Kenya; operation and maintenance management of hydro power plants, witness on factory acceptance test (FAT) of plants and equipment of different hydropower projects at manufacturing workshops in China, India and Europe. Involved in due diligence of plant & equipment manufacturing base in India, China, Spain, Austria and Turkey for hydropower projects. Providing the advisory services on national guidelines preparation on hydropower System Optimization to the Department of Electricity Development, under Ministry of Energy, Government of Nepal as an expert.

Mr. Ram Bhakta Karki Sr. Consultant Electrical and Electro-mechanical


Education: MSc in Manufacturing Engineering and Management, The University of Birmingham, UK; BE in Mechanical Engineering, Victoria Jubilee Technical Institute, Bombay, India.

Experience: 9 years of experience in tender document preparation of civil works, electro-mechanical works and hydro-mechanical works of hydropower projects based on FIDIC Conditions of Contract for Construction, Plant & Design Build and EPC. LCB tender document preparation of construction works. Preparation of General Specification for tender documents of hydropower projects. Review of Client-Consultant Contract documents based on FIDIC. Advise resident engineers for contract management. Quality control of report writing. Over 39 years of experience in Department of Roads for procurement and contract management of construction equipment and vehicles based on World Bank as well as Government procedure, fleet management, spare parts management and workshop management.

Mr Narendra Man Patrabansh Sr ConsultantContract Management

Education: MSc Water Science and Engineering, Surface Water Hydrology, UNESCO-IHE, The Netherlands; BE in Civil Engineering, IOE, TU, Nepal.

Experience: Over 19 years of professional experience in construction management and supervision of the hydropower projects from 5 MW to 13.6 MW, Detailed engineering design of the hydropower projects from 5 MW to 86 MW and Feasibility study of the projects up to 260 MW. Experience in hydraulic design of different components of the hydropower projects, hydrological data collection and analysis, quality check of design, drawings and reports, budgeting, team mobilization, resources scheduling, progress monitoring, coordination with the Client and the Contractors.

Education: LLM, TU, Nepal

Experience: Mr Budhathoki has over 19 years of experience as practicing and consulting lawyer in hydropower, infrastructure, investment, environment, employment, corporate and institutional building, securities, and contract and procurement laws. He is also associated with Butwal Power Company Limited, the holding company of HCE, and its subsidiaries.

Mr Bandhu Dhakal ConsultantSr Hydrologist

Mr Hari Budhathoki Legal Advisor

32 Hydro-Consult Engineering Limited

Financial Performanceof FY 2075/76Highlights from income statement:

• HCE earned total revenue of NPR 217.89 million in FY 2075/76. The revenue from consultancy business was NPR 210.64 million whereas combined interest and other income was NPR 7.24 million.

• The Gross profi t was NPR 72.36 million which is 33.21% of the total revenue.

• The profi t before tax was NPR 37.71 million that was 17.31% of the total revenue earned in FY 2075/76.

• The Earning per share (EPS) was NPR 174. 01 in FY 2075/76.

• Provision for Income Tax amounts is NPR 12.90 million for the FY 2075/76.

Highlights from statement of fi nancial position

• The net worth of HCE has increased by 15.93% to NPR 121.87 million in FY 2075/76 from NPR 102.45 million FY 2074/75.

• Total assets has been increased by 19.32% and reached NPR 174.08 million in FY 2075/76.

• The Book Value per Share (BVPS) has increased to NPR 827.75 in FY 2075/76.

• The retained earnings increased by 22.13% to NPR 107.15 million in FY 2075/76 from 87.73 million of FY 2074/75.

The transaction of HCE with its Clients and, parent company and its subsidiaries are NPR. 175.55 million, NPR. 8.73 million and NPR. 26.36 million respectively.

VALUE ADDITION TO THE NATION

HCE contributed following amounts into the Government Revenue

SN Value Addition FY 2075/76 FY 2074/75 FY 2073/74 FY 2072/73

1 Corporate Tax 12,908,164 9,758,136 4,335,464 5,484,765

2 Employee Tax 10,578,275 7,552,656 7,756,276 7,754,023

3 TDS 2,120,159 2,515,437 1,803,942 1,569,804

4 Value Added Tax (VAT) 22,006,909 17,701,115 10,401,469 4,766,157

6 Total 47,613,507 37,527,344 24,297,151 19,574,749


Project Overview of FY 2075/76International Project

Gabral Kalam ydropower Pro ect

(110 )

A oint venture of AGES Consultants, Pakistan with other local Pakistani Consultants, Hydro Consult Engineering Ltd., DOLSAR Engineering Inc. Co., Turkey, is conducting the feasibility study and detailed engineering design of 110 MW Gabral Kalam Hydropower Project located in Swat, Khyber Pakhtunkhwa, Pakistan. Pakhtunkhwa Energy Development Organization (PEDO) is the Client of the Project.

CE as a foreign partner of the oint enture, so far, have provided the services mainly for the conceptual design of the project components and review of the preliminary reports of project hydrology and hydraulic design of the project components. At present, inception report is submitted to the Client PEDO.

Type : Run-of-River

Client: Pakhtunkhwa Energy

Development Organization

(PEDO)

Location : Swat, Khyber Pakhtunkhwa,

Pakistan

Capacity : 110 MW

Gross head : 170 m

Design Discharge : 75 m3/sec

Annual estimated energy : 2036 GWh

River : Swat


Kari Muskhur ydropower Pro ect

(446 )A oint venture of AGES Consultants with other local Pakistani Consultants, Hydro-Consult Engineering Ltd., and DOLSAR Engineering Inc. Co. Turkey, is conducting the feasibility study and detail Engineering Design of 446MW Kari Muskhur Hydropower Project located in Lower Chitral, Khyber Pakhtunkhwa, Pakistan, Pakhtunkhwa Energy Development Organization (PEDO) is the Client of the Project.

CE as a foreign partner of the oint enture, so far, have provided the services mainly for the conceptual design of the project components and review of the preliminary reports of project hydrology and hydraulic design of the project components. At present, inception report is submitted to the Client PEDO

Type : Run-of-River

Client : Pakhtunkhwa Energy

Development Organization

(PEDO)

Location : Lower Chitral, Khyber

Pakhtunkhwa, Pakistan

Capacity : 446 MW

Gross head : 177 m

Design Discharge : 370 m3/sec


River : Chitral


Solu Khola (Dudh Koshi) ydropower-Pro ect (86 )M/S Sahas Urja Limited, Hattisar, Kathmandu (Employer) engaged Consortium of Hydro-Consult Engineering Limited, Kathmandu, Nepal and Fichtner Gmb Co. KG, Stuttgart, Germany (FI ) to serve as the Engineer for Construction Supervision of the Solu Khola (Dudh Koshi) HEP - 86MW Project, Solukhumbu, Nepal.

FI had been the Employer’s Representative previously for the same project when it was being constructed as an FIDIC Silver ook EPC Contract. The project is currently being constructed as an FIDIC Red ook, 1999 Construction Contract.

The project is under the construction supervision of consortium of HCE and Fichtner Gmb Co. KG.

The project is planned to be commissioned by 2020.

Type : Run-of-River

Client : Sahas Urja Limited

Location : Solukhumbu

District Capacity : 86.0 MW

Design Discharge : 17.05 m3/s

Gross head : 614.70 m Annual

Estimated Energy : 520.20 GWh

Diversion Weir : 31.8 m long concrete gravity weir

Intake : 3 nos., 2.3 m height X 4.0 m wide Side Intake

Settling Basin : 85.0 m long three bay Settling Basin, 9.0m wide

Waterway Length : 34.0 m long 4.5m x 4.5m Headrace Box culvert 4.47km , 4.3m x 4.5m high D shaped Headrace tunnel 1865m Penstock tunnel and steel pipe 2.1m to 2.5m varying dia.

Surge Tunnel : 375m long surge tunnel

Powerhouse : Surface powerhouse with 3 nos. Vertical Axis Pelton turbines

Transmission Line : 10.5 km 132kV to Proposed Tingla Substation

Project Overview of FY 2075/76National ProjectConstruction Supervision


Mistri Kholaydroelectric Pro ect

(42 )Mistri Khola Hydroelectric Project (MKHP or Project) is a run-of- the-river type project on the Mistri Khola, a major tributary of the Kaligandaki River. It is located in Myagdi district of Nepal. HCE is entrusted the job of Consulting Services for Construction Management and Supervision of the Project. Commencing on 30th une 2016 about 93.5% of overall physical progress in construction work has been carried out so far.

HCE team has been deliberately supervising the work for commissioning the project within the schedule time assuring the qualitative output. The Consortium of Norplan AS and Hydro-Consult Engineering Ltd earlier had carried the Review of Feasibility Study, Detail Design including construction drawing and preparation of tender drawings/documents for Civil, Electromechanical, Hydro-mechanical, and Transmission line works packages.

Type of Scheme : Run-of-River

Client : Robust Energy Limited (REL)

Location : Myagdi district, Western Nepal

Capacity : 42 MW


Gross Head : 302.75 m

Annual Estimated Energy : 232 GWh

Dam : Concrete gravity founded on bedrock 29.5m including piers (Crest Length), 23 m (Height)

Intake : Frontal Intake, 8m (W) x 5m (H)single opening

Approach Tunnel : Two, Inverted-D, 44 m (length),4 m (Dia.)

Settling Basin : Underground, 2 bays with S4 flushing System, 8m (width)*12.5m (height)*110m (length)

Headrace Tunnel : 2274 m (length), 4m*4.2m Inverted-D, Shotcrete line (partly concrete)

SurgeShaft : 57 m high, 71o inclined, 6m (dia.)

Penstock : 1655 m (L), 2.15 m(dia.), buried

Powerhouse : Surface; 3 units of Pelton Turbine

Transmission Line : 132 kV - Double Circuit, 4km long


Nyadi ydropower Pro ect ( 0 )

HCE is entrusted with the job of contract management, design review, comments and approval of detailed design and construction drawings of civil, Hydro-mechanical, Electro-Mechanical components, Transmission Line works, construction supervision for quality control and quality assurance works.

HCE has supported the Employer to prepare the tender documents and procurement process for Civil, Hydro-

mechanical and Electromechanical works as well as Transmission Line works. Since the starting of Project Construction, HCE is providing its services for design review, discussion in design related meetings with Contractor, design approval, quality control works, construction supervision, contractors’ claim review and recommendation to client etc.

The Construction of Project works and service of HCE are going on

Type : Run-of-River

Client : Nyadi Hydropower Limited

Location : Marsyangdi Municipality- 6, Thulobeshi and Naiche Village, Lamjung District, Nepal

Capacity : 30 MW

Gross head : 335.5 m

Design Discharge : 11.08 m3/sec at 40% exceedance

Annual estimated energy : 168.55 GWh

Diversion weir : 14 m (length) 18.5 m (height)

Approach Tunnel : 230 m (Length)

Settling basin : Underground, 1 bays 60 m (length), 8.0 m (width)

Headrace Tunnel : 3840 m Long Inverted D -Shaped 3.05 m minimum finished Diameter

Penstock pipe : 780 m Long 1.75 m internal diameter

Powerhouse : Surface Type, 45.5m*16 m 2 units ,Vertical axis Pelton turbine

Transmission Line : 132 kV, 6 km long


Ghar Khola ydropower Pro ect

(14 )HCE team is currently carrying out design review and construction supervision of Ghar Khola Hydropower Project (GKHPP) as a consultant. GKHPP is run-off-the- river (ROR) type hydropower project with an installed capacity of 1 W (2 7 W) located in Annapurna Rural unicipality 5 and 6 of yagdi District at Gandaki zone in the Western Development Region, Province No. 4 of Nepal. The project has design discharge of 3.46 m3/s and net head of 480.33m that generates 78.65 GWh of energy annually. The project is owned by Myagdi Hydropower Limited. The Construction Commencment date is on 30th une 2016.

The proposed Headworks site lies at an elevation of 16 5.0 m of Ghar Khola and the Powerhouse is located at an elevation of 1185 m, 300 m downstream of the confl uence of Ghar Khola with Kaligandaki River. Project consists of about 3030 m long tunnel (Finished Dimension (2. m x 2.6 m). There is 57 m long Surge Pipe (Internal dia. 2.2m) followed by 1.2 m dia. 1281m long Penstock Pipe

Type : Run-of-River

Client : Myagdi Hydropower Limited

Location : Annapurna Rural Municipality, Myagdi District

Capacity : 14.0 MW


Gross head : 490 m

Annual Estimated Energy : 78.65 GWh

Diversion Weir : 25.0 m long gravity weir

Intake : 1 no., 1.6 m height X 4.0 m wide Frontal Intake

Settling Basin : 40.0 m long two bay Settling Basin, 5.0m wide and 6.9m depth

Waterway Length : 217 m long 1.8m dia Headrace Steel Pipe 2.998km , 2.4m x 2.6m high D shaped Headrace tunnel 1281 m long 1.2m dia steel Penstock pipe

Surge Shaft : 57m length 2.2m dia Steel Pipe lined

Powerhouse : Surface powerhouse with 2 nos. Horizontal Axis Pelton turbines

Transmission Line : 6 km 33kV to Proposed Dana


Sunsari Morang Irrigation Pro ect

eadwor s

Type : Irrigation Scheme

Client : Department of Irrigation

Location : Sunsari and Morang District

Design Discharge : 60 m3/s

The joint venture of Hydro-Consult Engineering Limited (HCE), ITECO Nepal Private Limited (ITECO) and Total Management Services (TMS) is undertaking the Detailed Investigation and Engineering Design of Sunsari Morang Irrigation Project Headworks owned by Department of Irrigation (DoI), Government of Nepal.

The major scopes of the service includes assessment of diversion headworks to meet the irrigation water requirement of SMIP; prefeasibility study of the Eastern and Western Command Area; topographical survey; geo-technical investigation of headworks; hydrology and sediment study of Koshi River; detailed engineering design of headworks including regulating system and preparation of ICB procurement documents.

At present, CE is working on the fi eld investigation and hydraulic design of civil components of the project, preparation of detail study report following the recognized best practices and applicable standards considering technical, fi nancial, socio-economic, environmental and other relevant aspects of project development.

Detailed Engineering Design and Tender Document Preparation


Tamakoshi Vydroelectric

Pro ect (99 )

Type : Cascade Project from Upper Tamakoshi

Client : Nepal Electricity Authority(NEA)

Location : Dolakha District

Capacity : 99 MW

Gross head : 181m

Annual estimated energy : 483.12GWh

Diversion weir : Underground Structure Cascaded Diversion form Upper Tamakoshi Tailrace

Headrace tunnel : 8485m

Penstock pipe : Underground, Drop Shaft

Powerhouse : Underground

HCE is working with Lahmeyer International GmbH for the Detailed Engineering Design and Tender Document Preparation of Tamakoshi V Hydropower Project, which is a cascaded project through the diversion of Upper Tamakoshi with an installed capacity of 99 MW. Most of the structures for the Project are underground, including Diversion Tunnel with Headpond, Headrace Tunnel, Surge shaft & Drop pressure shaft, Powerhouse & Tailrace Tunnel. HCE is also carrying out the EIA update and social safeguard studies of the project.


Solu Khola (Dudh Koshi) ydroelectric Pro ect (86 )

Solu Khola (Dudh Koshi) HEP is a ROR project, it is currently under construction in Solukhumbu district with Sahas Urja Limited developing the project.

Hydro-Consult Engineering Limited (HCE) has already completed the feasibility study review, Detailed Project Report, Tender Document Preparation and Detail Engineering Design of the project. Based on the scope of works, HCE has concluded studies of overall layout, hydrology, components optimization, engineering geological mapping, installed capacity, cost and energy estimation and fi nancial and sensitivity analysis of the project. Similarly, HCE has provided detail drawings required for the construction of the project.

Hydro-Consult Engineering Limited, Kathmandu is now also the design consultant for this project and will prepare all the construction drawings to be issued to the Contractor for construction.

Type : Run-of-River

Client : Sahas Urja Ltd.

Location : Solukhumbu District

Capacity : 86 MW




Weir : Concrete Gravity Weir, 31.8m long

Intake : 3 gates, 4.0 m (w) x 2.3m (h)

Settling basin : Buried, 3 bays, 85m long, S4 flushing system

Headrace tunnel : 4469.61m long, Inverted D Shaped 4.0m x 4.5m

Surge Tunnel : Inclined Tunnel with vertical ventilation shaft, 375m long, Inverted D-Shaped 4.0m x 4.0m

Penstock : Penstock alignment with two drop shafts, 1880.22m length (2.5m, 2.25m & 2.25m diameter) with double bifurcation (1.7m & 1.2m diameter)

Powerhouse : Surface, 3 units of Pelton Turbine

Tailrace : Box culvert, 70m Long


Landruk Modi ydroelectric Pro ect

(86 )Hydro-Consult Engineering Limited (HCE) has been awarded the contract for detail engineering design and tender document preparation of Landruk Modi Hydroelectric Project owned by Annapurna Vidyut Bikash Company Limited.

The major scopes includes the review of existing feasibility study, identify the need of additional survey including topographic survey, geophysical and geotechnical investigations and detail engineering design of civil components and preparation of the construction drawings and cost estimate along with the advanced tender level design/drawings of HM/EM components. The scope also covers the preparation of Detail Project Report, design of access road, project road, camping facilities, cross drainage structures and tender documents.

At present, HCE has been preparing the Detailed Design Report which includes detail design/drawings of civil, HM and EM components following the recognized best practices and applicable standards considering technical, fi nancial, socio-economic, environmental and other relevant aspects of project development. In overall, the fi nal output of detail design shall comprise the cost estimate, detail design drawings, economic and fi nancial analysis and preparation of BoQ including the tender documents.

Type : Run of River

Client : Annapurna Vidyut Bikash Company Ltd.

Location : Kaski District

Discharge : 7.48 m3/sec

Capacity : 86.59 MW



Weir and Undersluice : 22m long smple weir 6 m (W) x 5 m (H)

Intake : 4 nos. of orifice Side intake, 2.5 m width x 1.6 m height

Gravel trap : 20 m long, 12 m wide with flushing canal ( 2m x 2m)

Approach Culvert : 2 nos. 308.7 m long, 2.2m (B) x 2.4m (H)

Settling Basin : Underground, Rectangular, 144m long, 9m wide, height varying from 4.5m to 4.7m

Headrace tunnel : 7273 m long, 3.2m internal diameter

Surge Tank : 10m diameter underground surge tank

Penstock Pipe : Underground drop shaft and horizontal penstock pipe, 1.3 m diameter, 2273.6 m length

Powerhouse : Underground, 70 m (L) x 16 m (B) x 29 m (H) 2 units, Horizontal axis Pelton turbine


Bhotekoshi - 5 ydroelectric

Pro ect (62 )

Type : Cascade

Client : Kalika Energy Pvt. Ltd.

Location : Sindhupalchowk District


Capacity : 62 MW


Annual estimated energy : 362.80 GWh Siphon Intake 62.14 m length, 4.4 m width, 4.4m height

Headpond : 54 m length, 12 m width, 14.85 m height

Headrace tunnel : 7458.55 m length, horse shoe type with 6.10m excavation diameter

Surge Tunnel : 563.25 m length, horseshoe shaped with 5.20 m finished diameter

Penstock Pipe : 3.8 m diameter, 421.53 m length

Powerhouse : Semi-Underground, 2 units, vertical axis Francis turbine

Hydro-Consult Engineering Limited (HCE) has been awarded the contract for detail engineering design of hotekoshi – 5 ydroelectric Project owned by Kalika Energy Pvt. Ltd.

The major scopes includes the review of existing feasibility study, identify the need of additional survey including topographic survey, geophysical and geotechnical investigations, detail engineering design of civil components, preparation of the construction drawings and cost estimate along with the advanced tender level design/drawings of HM/EM components. The scope also covers the preparation of Detail Project Report, design of access road, project road, camping facilities and cross drainage structures. At present, HCE has completed the Detailed Design Report (Draft) which includes detail design/drawings of civil, HM and EM components following the recognized best practices and applicable standards considering technical, fi nancial, socio-economic, environmental and other relevant aspects of project development. In overall, the fi nal output of detail design carried out by HCE shall comprise the cost estimate, detail design drawings, economic and fi nancial analysis and preparation of BoQ


Likhu-2 ydroelectric Pro ect (55 )

Hydro-Consult Engineering Limited (HCE) was awarded for the detail engineering design of the Likhu – 2 Hydroelectric Project owned by Global Hydropower Associates Pvt. Ltd. The major scopes of the contract includes the review of feasibility study, preparation of Design Base Memoranda, detail engineering design of civil components and preparation of the construction drawings along with the cost estimate. The scope also covers design of permanent and temporary camp facilities and preparation of tender documents for civil, electro-mechanical and hydro-mechanical works.

At present, CE has fi nished all the given scope of works including the hydraulic and structural design/drawings. However, the Client has added the scope of work that includes the detail engineering design/drawings of Headworks and Surge tunnel, which is also completed.

Type : Run-of-River

Client : Global Hydropower Associates Pvt. Ltd.

Location : Ramechhap/Solukhumbu District


Capacity : 55 MW

Gross head : 247 m


Weir : 36.3 m length , 12.5 m height above deepest cutoff

Intake : Orifice Type Side Intake, 4 gates of size 3.0 m width x 2.0 m height

Settling Basin : Surface, 2nos., 65 m length, 19 m breath

Headrace Tunnel : 6528 m length, D shaped, 4 m x 4.25 m

Surgeshaft : 8.0 m diameter, 44.4 m height

Penstock Pipe : 2.5 m diameter, 567 m length

Powerhouse : Semi-Underground, 3 units, vertical axis Francis turbine


Upper Rahughat ydroelectric Pro ect

(48.5 )

Type of Scheme : Cascade to Rahughat Mangale HEP with augmented flow from Bagar Khola

Client : Tundi Power Company Pvt. Ltd.

Location : Myagdi District

Capacity : 48.5 MW

Gross Head : 378 m

Design Discharge : 15.20 cumecs


Forebay : 12.0mx8.0mx10.7m (LxBxH)

Headrace Tunnel : 4875.0 m length Inverted D Shape 3.4m dia.

Vertical Shaft : 45 m length, 3.05m excavation dia.

Penstock Tunnel : 108.5m length Inverted D Shape, 4.0m (W) x 4.2m (H)

Penstock Arrangment : 367.3m long, 2.4m dia. surface penstock 223.0m long, inclined drop shaft 109.5 m long, horizontal tunnel

Powerhouse : Surface

2 units of Vertical axis Pelton turbine

Upper Rahughat HEP is a cascade project to Rahughat Mangale HEP located in Myagdi district, owned by Tundi Power Company Pvt. Ltd. HCE has been entrusted for the detailed engineering design and tender document preparation of the project and the contract was awarded in uly, 2019.

The major scopes includes the review of previous studies, hydrological analysis, project layout studies and optimization, detailed geological mapping, detail engineering design of civil components, preparation of the construction drawings, detailed cost estimate and report preparation of the project. The scope of study also includes the tender document preparation of civil, hydro-mechanical and electro-mechanical works as well as assistance during bid evaluation. Besides that, HCE will also be providing design support during construction supervision of the project.

At present, HCE has conducted the necessary site visits and working on review studies and layout fi nalization of the project. The salient features of the project as per the available documents and review studies are;


Rahughat Mangale ydroelectric Pro ect

( 5.5 )HCE has been awarded the contract for detailed engineering design and tender document preparation for Rahughat Mangale Hydroelectric Project owned by Tundi Power Company Pvt. Ltd in uly 2019.

The major scopes includes the review of previous studies, hydrological analysis, project layout studies and optimization, detailed geological mapping, detail engineering design of civil components, preparation of the construction drawings, detailed cost estimate and report preparation of the project. The scope of study also includes the tender document preparation of civil, hydro-mechanical and electro-mechanical works as well as assistance during bid evaluation. Besides that, HCE will also be providing design support during construction supervision of the project.

At present, HCE has conducted the necessary site visits and working on review studies and layout fi nalization of the project. The salient features of the project as per the available documents and review studies are;

Type : Run-of-River

Client : Tundi Power Company Pvt. Ltd.


Capacity : 35.5 MW




Diversion Weir : 40.0 m (length) and 6.0 m high Concrete Gravity Dam

Intake : Side intake , 2 openings, 4.0 m (w) x 2.2m (h)

Settling Basin : Surface, 2 nos. of bay 80.0 m (length) 6.0 m (width

Headrace Tunnel : Inverted D-shape, 5298 m long, 3.1m dia.

Penstock : Surface, 694 m long, 2.1m dia.




Siwa Khola mall ydropower Pro ect

(26.86 )The joint venture of Hydro-Consult Engineering Limited (HCE) and Environment and Resource Management Consultant Pvt. Limited (ERMC) is undertaking the detail engineering design of the Siwa Khola Small Hydropower Project owned by Department of Electricity Development (DoED), Government of Nepal.

The major scopes includes the review of feasibility study, carrying out topographic survey and geological investigations, construction material survey, land acquisition survey and detail engineering design of civil components and preparation of the construction drawings. The scope also covers preparation of tender documents for civil, electro-mechanical, hydro-mechanical works, transmission line, permanent camp and access road.

At present, HCE has completed and submitted the detail design report, tender level design/drawings of civil, HM and EM components following the recognized best practices and applicable standards considering technical, fi nancial, socio-economic, environmental and other relevant aspects of project development. In overall, the fi nal output of detail design carried out by HCE comprise the cost estimate, detail design drawings, economic and fi nancial analysis and preparation of BoQ.

Type : Run-of-River

Client : Department of Electricity Development

Location : Taplejung District

Capacity : 26.86 MW




Weir : Free Overflow type concrete weir; 27.5 m (l) 4.5 m above river bed

Intake : Side intake ,2 gates of size 3.6 m (w) x 1.5m (h)

Settling basin : Surface, 2 nos. 65 m (l) x 9 m (w)

Headrace tunnel : 4635.31 m length D Shaped 3 m dia.

Penstock tunnel : 85.46 m length D Shaped 3 m dia.

Penstock Length : 1236 m (l) 1.4 m dia


2 units of Pelton turbine


Seti Nadi ydroelectric Pro ect (25 )

Type : Run of River

Client : Vision Lumbini Ltd.

Location : Kaski District

Discharge : 18 m3/sec

Capacity : 25 MW



Intake : Side intake, 3 Orifice of size, 3.5 m width x 2.5 m height

Undersluice : 2 bays, each of size 2.5 m x 2.5m

Gravel trap : 2 nos. 8m long, 6.2m (B) x 6.35 m (H) with flushing canal

Approach Culvert : 626.67 m long, 3.0 m x 3.0 m

Settling Basin : 3 chambered, Intermittent gravity flushing, 60 m length, 6.75 m width, 12 m height

Headpond : 17.70 m x 22.60 m (L x B) with 11.30 m depth

Headrace pipe : 6048 m length, with 86 anchor blocks

Surge Tank : 4.0 m dia, 133.65 m long with upsurge and downsurge chambers

Penstock Pipe : 2.6 m diameter, 354.75 m length

Powerhouse : Sub-surface,

2 units, vertical axis Francis turbine

of ydro-Consult Engineering Limited ( CE) and Building Design Authority (p) Ltd. has been awarded the contract for detail engineering design of Seti Nadi Hydroelectric Project owned by Vision Lumbini Limited.

The major scopes includes the review of existing feasibility study, identify the need of additional survey including topographic survey, geophysical and geotechnical investigations and detail engineering design of civil components and preparation of the construction drawings and cost estimate along with the advanced tender level design/drawings of HM/EM components. The scope also covers the preparation of Detail Project Report, design of access road, project road, camping facilities and cross drainage structures.

At present, HCE has been preparing the Detailed Design Report which includes detail design/drawings of civil, HM and EM components following the recognized best practices and applicable standards considering technical, fi nancial, socio-economic, environmental and other relevant aspects of project development. In overall, the fi nal output of detail design shall comprise the cost estimate, detail design drawings, economic and fi nancial analysis and preparation of BoQ.


Palun Khola mall ydropower Pro ect

(21 )

Type : Run-of-River

Client : Palun Khola Hydropower Pvt. Ltd.

Location : Taplejung District

Capacity : 21 MW




Weir : Free Overflow type concrete weir; 24 m (l) 3.5 m above river bed Intake Side intake ,4 gates of size 2m (w) x 1.25m (h)

Settling basin : Surface, 2 nos. 62 m (l) x 8 m each (w)

Headrace tunnel : 2576 m length D Shaped 3.2 m dia.

Surge Shaft : 15 m height Simple Orifice, 7 m dia.

Penstock : 525 m (l) 2.0 m dia



Hydro-Consult Engineering Limited (HCEL) is undertaking the detail engineering design of the Palun Khola Small Hydropower Project owned by Palun Khola Hydropower Pvt. Ltd.

The major scopes include the review of feasibility study, conduct confi rmatory geological mapping and seismological investigation of the major project structures, fi nalize the layout / alignment and sizing of the project components, detail engineering design of civil components and preparation of the construction drawings and BOQ. The scope also covers preparation of tender documents for civil, electro-mechanical and hydro-mechanical works. Construction supervision works such as providing support for the modifi cation of construction drawings and coordinating for the required design matters also come under the scope of this project.

At present, HCE has submitted the inception report of Palun Khola SHP and working on the hydraulic design of the civil components. The updated topographical survey is being carried out by the client as additional work.


Upper Tadi ydropower Pro ect

(11 )HCE has been awarded the contract for detailed engineering design and tender document preparation for Upper Tadi Hydropower Project by United Builders and Engineers P. Ltd in April 2017.

The major scopes includes the project layout studies, detail engineering design of civil components, preparation of the construction drawings as well as detailed cost estimated of the project. Besides that, the scope of study also includes the tender document preparation of hydro-mechanical and electro-mechanical works as well as assistance during bid evaluation.

At present, HCE has completed the tender document preparation of HM and EM components as well as assisted in bid evaluation of EM works. The construction drawings for headworks components has also been submitted to the Client to ensure construction activities of headworks before the monsoon. In addition to that, HCE has also fi nalized the alignment for Transmission line and carried out the detail survey works of the alignment.

Type : Run-of-River

Client : United Builders and Engineers P. Ltd

Location : Nuwakot District

Capacity : 11 MW

Gross Head : 217 m



Diversion Weir : 25.0 m (length) and 4.0 m high Boulder Riprap Weir


Settling Basin : Surface, 2 nos. of bay 50.0 m (length) 5.5 m (width)

Forebay : 7.2m x 11.4m (LxB)

Penstock : 2459.5 m long, various dia. of 1.8, 1.7 and 1.6m




Budhi Ganga Khola mall hydropower

Pro ect (10.85 )Department of Electricity Development (DoED), Government of Nepal has intended to conduct the detail engineering design of BudhiGanda Small Hydropower Project. In this regard, joint venture of Hydro-Consult Engineering Limited (HCE) and Environment and Resource Management Consultant Pvt. Limited (ERMC) is providing consulting service to (DoED) since uly 2015.

The main objective of the project is to carryout topographic survey and geological investigations, construction material survey, land acquisition survey and detail engineering design of civil components and preparation of the construction drawings and cost estimate of the entire project. The scope also covers the preparation of supplementary IEE report, design of access road, project road, bridges and cross drainage structures and preparation of tender documents for civil, electro-mechanical, hydro-mechanical works, transmission line, permanent dam and access road.

At present, HCE has completed and submitted the detail design report, tender level design/drawings of civil, HM and EM components following the recognized best practices and applicable standards considering technical, fi nancial, socio-economic, environmental and other relevant aspects of project development. In overall, the fi nal output of detail design carried out by HCE comprise the cost estimate, detail design drawings, economic and fi nancial analysis and preparation of o

Type : Run-of-River


Location : Bajura District

Capacity : 10.85 MW (updated)

Gross head : 81.65 m (updated)

Annual estimated energy : 63.97 GWh (updated)

Weir : 85.0m (length) 5.5 m (height) above river bed


Settling basin : Surface, 2 nos., 62 m length, 12 m breadth

Headrace Pipe : 3 m dia., 2566.55m length

Offset Tunnel : 3.6 m dia, 1.8 m height, 27.08m length

Surge shaft : 10 m dia., 33 m height

Penstock : 2.5 m dia, 453.25 m length

Powerhouse : Surface, 2 units, vertical axis Francis turbine


Hidi Khola ydropower Pro ect

(6.82 )

Hydro-Consult Engineering Limited (HCE) was awarded for the detail engineering design of the Hidi Khola Hydropower Project owned by White Lotus Power Pvt. Ltd. The major scopes of the contract includes the review of feasibility study, preparation of Design Base Memoranda, detail engineering design of civil components and preparation of the detailed drawings along with the total project cost. The scope also covers the preparation of tender documents for civil, electro-mechanical and hydro-mechanical works.

At present, CE has fi nished the detailed project report and has started the detailed engineering design. In addition, the DPR level drawings has also been accomplished. Moreover, the tender documents is being prepared

Type : Run-of-River

Client : White Lotus Power Pvt. Ltd.

Location : Lamjung District


Capacity : 6.82 MW

Gross head : 724 m


Weir : 8.5 m length , 6.5 m height above deepest cutoff

Intake : Orifice Type Side Intake, 2 gates of size 1.0 m width x 0.85 m height

Settling Basin : Surface, 2 nos., 25 m length, 2.5 m breath, 5.0 m height

Headrace Pipe : 1232.33 m length, 0.90 m dia.

Surge tank : 4.0 m L x 4.0 m B x 11.70 m H

Penstock Pipe : 0.80 m dia., 2101.08 m L

Powerhouse : Surface, 2 units, Horizontal axis Pelton turbine


Lower Manang Marsyangdi

ydropower Pro ect (1 9.2 )

QYEC International Co. Ltd., China is undertaking the Feasibility Study of Lower Manang Marsyangdi Hydropower Project owned by Butwal Power Company Ltd. QYEC sought association with Hydro-Consult Engineering Limited for reviewing and submission of Feasibility Study Report to the Department of Electricity Development, Nepal. LMMHPP is located on the Marsyangdi River in Manang district of Gandaki Province. It is a cascade-development project with Manang Marsyangdi Hydropower Project Upstream of it.

The major scopes of the Reviewed Feasibility Study included the review of hydrological and meteorological studies, competent translation of all volumes of the report (Chinese to English), cost formatting, and economical and fi nancial analyses. CE has completed all the designated works.

Type : Peaking Run-of-River, and Cascade development with MMHEP

Client : Butwal Power Company Ltd.

Location : Manang District, Gandaki Province

Capacity : 139.2 MWGross head : 418.4 mAnnual estimated energy : 773 GWhWeir : Overflow weir 30 m

(Crest Length) 7.5 m high (foundation to crest)

Side Intake : 1 gate of size 2 x 2 mSettling basin : Surface, Single bay 40 x

5 x 5.35 m (lxbxh)Headrace tunnel : 6192 m length D

Shaped, 4.4 - 5.3 m dia.Surge Shaft : Vertical shaft with

upper chamber 6 m dia., 49.1 m depth 180 m horizontal upper chamber

Penstock : 838 m length, 3.3 m dia.Powerhouse : Surface 2 units of vertical-shaft

pelton turbine

Feasibility Study


Manang Marsyangdi ydro-electric Pro ect

(1 5 )

QYEC International Co. Ltd., China is undertaking the Feasibility Study of anang Marsyangdi Hydro-electric Project owned by Manang Maryangdi Hydropower Company Pvt. Ltd. QYEC sought association with Hydro-Consult Engineering Limited for reviewing and submission of Feasibility Study Report to the Department of Electricity Development, Nepal. MMHEP is located on the Marsyangdi River in Manang district of Gandaki Province.

The major scopes of the Reviewed Feasibility Study included the review of hydrological and meteorological studies, competent translation of all volumes of the report (Chinese to English), cost formatting, and economical and fi nancial analyses.

HCE has completed all the designated works.

Type : Peaking Run-of-River

Client : Manang Marsyangdi Hydropower Company Pvt. Ltd.

Location : Manang District, Gandaki Province

Capacity : 135 MW



Weir : Concrete gravity dam with gated spillway

89.5 m (Crest Length)

24 m high (foundation to crest)

Side Intake : 2 gates of size 6m x 5m

Settling basin : Surface, 2 bays

160 x 14 x 13.6 m (lxbxh)

Headrace tunnel : 6075 m length

D Shaped, 4.4 - 5.3 m dia.

Surge Shaft : Vertical shaft with upper chamber 6 m dia., 83.3 m depth 180 m horizontal upper chamber

Penstock : 965 m length, 3.3 m dia.


2 units of pelton turbine


Kaligandaki Tinau Diversion ultipurpose Pro ect (1 )The joint venture of ITECO Nepal (P.) Ltd., Total Management Services Pvt. Ltd. (TMS) and Hydro-Consult Engineering Limited (HCE) is undertaking the Detailed-Feasibility Study of Kaligandaki Tinau Diversion Multipurpose Project owned by Department of Irrigation (DoI), Government of Nepal. The project is primarily being developed and studied as an irrigation project with provision for hydropower development en route. The hydropower plan has been laid out as a cascade facility which will divert water for irrigation but deliver through the tailrace of one powerhouse. Water in excess after providing for irrigation will be cascaded down to a second powerhouse.The major scope of study includes review of previous studies, irrigation water-demand study; hydrological, meteorological and sediment studies; topographical survey and mapping; logistics, transmission line and access road surveys; construction material survey and seismic activity investigations; construction planning and schedule; cost estimation economic and fi nancial analyses and preparation of tender documents for civil, electro-mechanical and hydraulic steel structures. Geological mapping, and geo-physical and geo-technical investigations were also later added to the scope.

CE has so far completed all the fi eld works, project component design, intake operation modality study, irrigation water demand study. Currently, the Draft Final Report preparation of the project is underway.

Type : Run-of-River with cascade development

Client : Department of Irrigation

Location : Syanja, Palpa and Rupandehi

Capacity : 128 MW (to be updated)

Gross head : 101 m + 104 m

Annual estimated energy : 445 GWh + 575 GWh (to be updated)

Barrage : 125 m (length)

Intake : Side intake 4 gates 6.5x6.0 m

Settling basin : Surface: 4 bays 126m (l) x 14m (w) x 15.6 m (h)

HRT : 27 km + 7 km length Circular tunnel of 6.5 m dia. (To be carried out using TBM)

Penstock : 473 + 406 m (l), 5.4 m dia.

Powerhouse : Two Surface Powerhouse 3 Francis units each


Sankhuwa Khola ydropower Pro ect

(41 )

The joint venture of Environment and Resource Management Consultant Pvt. Limited (ERMC) and Hydro-Consult Engineering Limited ( CE) is undertaking the Feasibility Study and EIA Study of Sankhuwa Khola Hydropower Project owned by Department of Electricity Development (DoED), Government of Nepal.

The major scopes of Feasibility Study includes the review of previous desk studies, topographic survey and mapping, meteorological and sedimentological studies geological and geotechnical fi eld investigation works, layout and design of project components, construction planning, cost estimating and economical and fi nancial analysis. Furthermore, the study also covers the detail EIA study of the project.

HCE has completed all the study works.

Type : Run-of-River


Location : Sankhuwasabha and Bhojpur District

Capacity : 41.06 MW



Weir : Concrete gravity dam

42.0 m (l) 6.0 m above river bed


Settling basin : Surface, 4 nos. 60.0 m (l) x 8.0 m (w)


Penstock : 1034 m length

2.0 m dia


2 units of Francis turbine


Sankhuwa Khola-I ydropower Pro ect

(40 )

The joint venture of Environment and Resource Management Consultant Pvt. Limited (ERMC) and Hydro-Consult Engineering Limited (HCE) is undertaking the Feasibility Study and EIA Study of Sankhuwa Khola-I Hydropower Project located in Sankhuwasabha District owned by Department of Electricity Development (DoED), Government of Nepal.

The major scopes of Feasibility Study includes the review of previous desk studies, topographic survey and mapping, meteorological and sedimentological studies geological and geotechnical fi eld investigation works, layout and design of project components, construction planning, cost estimating and economical and fi nancial analysis. Furthermore, the study also covers the detail EIA study of the project.

HCE has completed all the study works for this project.

Type : Run-of-River with additional discharge from Koluwa Khola


Location : Sankhuwasabha District

Capacity : 40.82 MW



Weir : Concrete Gravity dam in Koluwa Khola

14.0 m (l) and 1.3 m above river bed Boulder Weir in Sankhuwa Khola 29.3 m (l) and 2.0 m above river bed

Intake : Bottom Intake in Koluwa Khola 12 m (l) x 1 m (w) Side Intake in Sankhuwa Khola 4 gates of size 1.9 m (w) x 2.0 m (h)

Settling basin : Underground, 2 nos. 55.0 m (l) x 6.8 m (w)



Pressure shaft : 1.5 m dia

Powerhouse : Underground



Kawadi Khola ydropower Pro ect

( 0 )

The joint venture of Hydro-Consult Engineering Limited (HCE) and Environment and Resource Management Consultant Pvt. Limited (ERMC) is undertaking the feasibility study and IEE Study of Kawadi Khola Hydropower Project owned by Department of Electricity Development (DoED), Government of Nepal.

The major scopes includes review of previous desk studies, topographic survey and mapping, construction material survey, land acquisition survey, hydrological, meteorological and sediment studies, geological and geotechnical fi eld investigation works, layout and design of project components, construction planning, cost estimating and economical and fi nancial analysis. Further, the scope also covers design of access road, conducting Initial Environmental Examination Study and application of the recommendation of IEE report to perform the feasibility study.

Type : Run-of-River


Location : Humla and Bajura District

Capacity : 30 MW

Gross head : 395 m



Weir and undersluice : 21.3 m (length) 5.0 m (height) above river bed

Intake : Side intake ,2 orifice of size 2.8 m (w) x 2.5 m (h)

Settling basin : Surface, 2 nos.

64 m (length)

7.5 m (width)

Headrace tunnel : 5177 m length

D Shaped 3.0 m excavation dia.


1.70 m dia.

Powerhouse: Surface

2 nos. Vertical axis Pelton Turbine


Mugu Karnali ydropower Pro ect

(141.46 )

Hydro-Consult Engineering Limited (HCE) is undertaking the Feasibility study and Environmental Impact Assessment of Mugu Karnali Hydropower Project (phase-I study) owned by Butwal Power Company.

The major scopes includes review of previous desk studies, topographic survey and mapping, construction material survey, land acquisition survey, hydrological, meteorological and sediment studies, geological and geotechnical fi eld investigation works, layout and design of project components, construction planning, cost estimating and economical and fi nancial analysis.

From the fi nancial analysis of the 6 PRoR options and one storage option, it was concluded that Option-III, Option-V and Option- I were feasible in terms of fi nancial indicators. Among the feasible options, the Option-VI was found comparatively better option of all the options studied.

Type : Peaking Run-of-River (option-VI)


Location : Humla and Mugu District

Capacity : 141.46 MW


Design Discharge : 93 m3/s


Barrage and Stilling basin : 10m x 12m radial gates (4 nos.), 41.0 m (length)52 m (width) of stilling basin

Under sluice : 3 nos. 11.2 m (B) x 2.5 m (H)

Intake : 3 nos of Frontal (orifice) of size 9.2 m (w) x 7.2 m (h)

Settling basin : Surface, 3 nos., 183 m (length), 15.2 m (width)

Headrace tunnel : 6244.0 m length, Horse shoe Shaped 7.0 m excavation dia., Concrete lined

Penstock : 382.0 m length, 4.4m internal diameter

Powerhouse : Surface, 67.0m x 16.5 m x 30.3 m3 nos. Vertical axis Fransis Turbine


Mistri Khola 2 ydro-electric Pro ect (12 )Mistri Khola 2 HEP is a cascade project to under construction Mistri Khola HEP in Myagdi district, identifi ed and owned by ountain Energy Nepal Ltd.

CE has been entrusted for the Feasibility Studies, Tender Document Preparation and Detail Design of the project and the contract was awarded on anuary, 2018. ased on the scope of works, HCE has concluded the overall layout studies, hydrological studies, components optimization, engineering geological mapping, feasibility level design, installed capacity, cost and energy estimation and fi nancial and sensitivity analysis of the project.

HCE has successfully completed the feasibility study works and waiting for the decision from the Client for detail design of the project.

Type of Scheme : Cascade to Mistri Khola HEP with augmented flow from Ghatte Khola

Client : Mountain Energy Nepal Ltd.


Capacity : 12 MW




Balancing Pond : 11.0m (length including transition) and 6.0m x 4.0m (B x H)

Headrace Culvert : 396.0m length, 3.5m (w) x 2.5m (h)

Forebay : 16.5m length, 9.0m width, varying height from 6.2m to 13.3m

Headrace Pipe : 262.5m length, 2.85m dia.

Headrace Tunnel : 2223.0 m length D Shaped 4.0m (W) x 4.2m (H)

Vertical Shaft : 45 m length, 3.05m excavation dia.

Penstock Tunnel : 108.5m length Inverted D Shape, 4.0m (W) x 4.2m (H)

Penstock : 109.5 m long, 2.25 m dia. (Before Branching)

36.3 m each and 1.6m dia.(After Branching)

Powerhouse : Surface 2 units of Vertical axis Francis turbine


Chino Khola ydroelectric Pro ect

(7.9 )Chino Khola Hydroelectric Project (CKHEP) was identifi ed by utwal Power Company Limited (BPC) in order to use its power as construction power for development of Lower Manang Marsyangdi Hydropower project being promoted by BPC.

CE is entrusted with the job of Feasibility Study, Tender Document Preparation and Environmental Impact Assessment (EIA) of CKHEP. HCE has completed the Updated Feasibility Study and working with the EIA study for the project. The public hearing for EIA has already been conducted in une 2019.

Type : Run-of-River


Location : Manang District

Capacity : 7.9 MW

Gross head : 902 m


Weir : Hard stone lined sloped weir

Intake : Side Bottom Rack and supplementary side Intake provisioned for the case of chocking of bottom rack, particularly during monsoon

Settling basin : Surface, 2 nos. 30.0 m (l) x 4.0 m (w)

Tunnel : For Penstock Pipe and Walkway 411.5 m length D Shaped 2.0 m dia.

Penstock : 2433.9 m length 0.6 m dia

Powerhouse : Surface, 2 units of Pelton


Bheri Khola ydropower Pro ect

(4.1 )

The joint venture of Hydro-Consult Engineering Limited (HCE) and Environment and Resource Management Consultant Pvt. Limited (ERMC) has carried out the feasibility study and IEE Study of Bheri Khola Hydropower Project owned by Department of Electricity Development (DoED), Government of Nepal.


HCE has successfully completed the feasibility study works and, the IEE report has been approved after completion of the environmental study.

Type : Run-of-River


Location : Jumla District

Capacity : 4.1 MW




Weir and undersluice : 28.5 m (length)5.0 m (height) above river bed

Intake : Side intake ,2 orifice of size 3.0 m (w) x 1.8m (h)

Settling basin : Surface, 2 nos. 50 m (length)6 m (width)

Headrace tunnel : 3851.2m lengthD Shaped 3.0 m dia.

Penstock : 436.85 m length 1.60 m dia.

Powerhouse : Surface2 nos. Horizontal Francis Units


Nyaurigad ydropower Pro ect

(4.01 )

Type : Run-of-River

Client : Department of Electricity Development (DoED)

Location : Province-6, Jumla District

Capacity : 4.01 MW



Weir : 25.0 m (length) 5.0 m (height) above river bed

Intake : Side intake , 2 gates of size 3.0 m (w) x 2.2m (h)

Settling basin : Surface, 2 nos. 50 m (length)6 m (width)

Headrace pipe : 558 m length, 1.9m diameter

Headrace tunnel : 2904 m lengthD Shaped 3 m excavation dia.

Surge shaft : 28 m height, 5 m finished dia

Penstock : 238m length, 1.9m diameter

Powerhouse : Surface2 units of Horizontal axis Francis turbine

Nyaurigad Hydropower Project (NGHP) is located in umla District, Province 6 of Nepal. The project is a Run-of-River scheme with design discharge of 5.92 m3/s and gross head of 81.69 m. The installed capacity of the Project is 4.01 MW. NGHP is a joint venture of Hydro-Consult Engineering Limited (HCEL) and Environment and Resource Management Consultant Pvt. Limited (ERMC); and is owned by Department of Electricity Development (DoED).


The feasibility study works have been successfully completed and, the IEE report has been approved after completion of the environmental study.


Khimti-2 HEP tailwater tapping studyHydro-Consult Engineering limited has undertaken the study of Khimti-2 HEP tailwater tapping by Khimti-1 HEP intake for Himal Power Limited.

The purpose of this study is to explore the alternative option for tailwater diversion of upstream under construction project Khimti-2 HEP directly to the intake of existing downstream project Khimti-1 HEP while ensuring no adverse impacts on the operation of Khimti-1 HEP. The objective of this study will present the best option for clear water tapping directly from the tailrace of Khimti-2 HEP resulting into settling basin loading and fl ushing intensity.

The scope of this study includes topographical survey, Geo-physical Survey, alternative analysis of tailwater tapping conduit according to the fi ndings of Field observation and calculations and technical design and drawings. HCE has completed all the works within the scope of this study.

Type : Tailrace Tapping Structure

Client : Himal Power Limited

Location : Dolakha District

Tapping structure : 42 m long conveyance cul-vert.


Super Dordi ydropower Pro ect ha (54 )

Super Dordi Hydropower Project- Kha is a Run-of-River type hydropower project with generating capacity of 5 W in Province- , Lamjung District. The design discharge of the proposed scheme is 9.9m3/s with gross head of 637.55 m. Peoples’ ydropower Company Limited is the developer of the project.

HCE has carried out due diligence study of the project on behalf of the developer. Major scope for this project is to review the previous studies regarding project accessibility, hydrology & geology, project layout, project component parameters, environmental and social aspect including the potential risk factors. Further, review of project cost estimate, annual energy estimate, fi nancial viability and preparation of due diligence report lies on the scope of work.

Type : Run-of-River

Client : Peoples’ Hydropower Company Ltd.

Location : Dordi Gau Palika, Province-4, Lamjung District


Capacity : 54 MW


Annul energy Generation : 328.47 GWh

Weir : 18.5m long free-flow sloping glacis type concrete gravity weir

Intake : 3 nos. orifice Side intake

Settling basin : 100m long, double chambered underground settling basin

Headrace Tunnel : 6 m finish dia., 4.7 km length

Surge tank : 5m dia. Cylindrical restricted orifice type surge tank

Penstock Shaft : 1.4 - 2m internal dia penstock shaft Vertical drop, Inclined and horizontal shaft of total length 1052m including bifurcation.

Powerhouse : Underground (51m X 13m), 29m height 2 units, Vertical axis Pelton turbines

Tailrace Tunnel : 3m dia, 414m long

Due Diligence Appraisal


Lower Erkhuwa Khola ydropower Pro ect (1 .04 )Lower Erkhuwa Khola Hydropower Project is a Run-of-River type hydropower project with generating capacity of 13.04 MW in Bhojpur District. The design discharge of the proposed scheme is 10.29 m3/s with gross head of 150.9 m. Lower Erkhuwa ydropower (P). Ltd. is the developer of the project whereas the Machhapuchchhre Bank Limited is the lead bank of the consortium of banks/ fi nancial institutions to raise the required loan fi nancing of the project.

HCE has carried out due diligence study of the project on behalf of the fi nancing bank. ajor scope for this project is to review the project accessibility, hydrology & geology, project layout & project component parameters and review of the environmental and social aspect including the potential risk factors. Further, review of project cost estimate and annual energy estimate and preparation of due diligence report lies on the scope of work.

Type : Run-of-River

Client : Lower Erkhuwa Hydropower (P). Ltd.

Location : Bhojpur District


Capacity : 13.04 MW



Weir : 35 m long ogee shaped concrete weir


Settling basin : 58m long, four hoppers, Surface settling basin

Headrace tunnel : 2.7 m dia., D-shaped, 2636 m length

Surge tank : 6 m dia. circular surge tank

Penstock : 730 m length, 2.2m diameter

Powerhouse : (Surface and Underground) 2 units, horizontal axis Francis turbines

Tailrace: 30.5 m long RCC open canal


Sapsup Khola Small ydropower Pro ect

(6.6 )

Sapsup Khola Hydropower Project is a Run-of-River type hydroelectric project with generating capacity of 6.6 MW in Khotang District. The design discharge of the proposed scheme is 7.60 m3/s with gross head of 109.0 m. Three Start Hydropower Limited is the developer of the project whereas the Rastriya Banijya Bank Limited is the lead bank to raise the required loan fi nancing of the project.

HCE has carried out due diligence study of the project on behalf of the fi nancing bank. ajor scope for this project is to review the project accessibility, hydrology & geology, project layout & project component parameters and review of the environmental and social aspect including the potential risk factors. Further, review of project cost estimate and annual energy estimate and preparation of due diligence report lies on the scope of work

Type : Peaking Run-of-River

Client : Three Star Hydropower Limited

Location : Khotang District

Capacity : 6.56 MW

Gross head : 109 m

Weir : 30 m long rectangular weir

Intake : Side, submerged orifice intake

Settling basin : Surface, 2 nos. 64 m (l) x 9 m (w)

Headrace Pipe : 4014 m length, 2m & 2.1m dia.

Surge Tank : 3m dia, 48m long circular surge tank

Penstock : 265.0 m length 1.7 m dia

Powerhouse : Surface, 33.2m x 12.4m x 11.4m2 unit Francis turbines


Buku Kapti ydropower Pro ect

(5.0 )

Buku Kapti Hydropower Project is a Run-of-River type hydropower project with generating capacity of 5.0 W in Solukhumbu and Okhaldhunga District. The design discharge of the proposed scheme is 2.4 m3/s with gross head of 255.0 m. imstar Urja Company Limited is the developer of the project whereas the Prime Commercial Bank Limited is the lead bank of the consortium of banks/ fi nancial institutions to raise the required loan fi nancing of the project.


Type : Run-of-River

Client : Himstar Urja Co. Ltd.

Location : Solukhumbu and Okhaldhunga District


Capacity : 5.0 MW

Gross head : 255 m


Weir : 30 m long boulder riprap weir


Settling basin : 46 m long Surface settling basin

Headrace pipe : 1.3 m & 0.5 m dia., 1911 m & 1300 m length respectively

Forebay : 11m L x 3m B x 8m H

Penstock : 447 m length, 1.1 m diameter

Powerhouse : Surface 2 units, horizontal axis Pelton turbines

Tailrace : 10 m long RCC free flow box culvert


Bhim Khola mall ydropower Pro ect

(4.96 )Bhim Khola Small Hydropower Project is a Run-of-River type hydropower project with generating capacity of 4.96 MW in Baglung District. The design discharge of the proposed scheme is 3.5 m3/s with gross head of 180.0 m. Shikhar Power Development Pvt. Limited is the developer of the project whereas the Rastriya Banijya Bank Limited is the lead bank of the consortium of banks/ fi nancial institutions to raise the required loan fi nancing of the project.


Type : Run-of-River

Client : Shikhar Power Development Pvt. Limited

Location : Baglung District


Capacity : 4.96 MW

Gross head : 180 m


Weir : 16m long boulder lined weir


Settling basin : 35m long, double chambered Surface settling basin

Headrace Pipe : 1.3m dia., 2723 m length

Surge tank : 5m dia. circular surge tank

Penstock : 252 m length, 1.3m diameter

Powerhouse : Sub - Surface 2 units, horizontal axis Francis turbines

Tailrace : 108m long box canal


Lower Likhu ydropower Pro ect

(28.1 )Lower Likhu Hydropower Project (LLHP) is a run-of-river (RoR) type project located in Likhu Tamakoshi Rural Municipality, of Ramechhap district, and Likhu Rural Municipality, of Okhaldhunga district, Province-3, Nepal. The project is being developed by Swet Ganga Hydropower & Construction Ltd. (SGHCL) which is also the Owner/ the Employer. Laxmi Bank is the lead of the consortium of banks/FIs for loan fi nancing of the project.

HCE as the technical consultant for Bill erifi cation on behalf of the consortium of the

banks and FIs, is carrying out the verifi cation of the Interim Payment Certifi cates (IPCs) and fi nal payment certifi cate for civil, hydro-mechanical, electro-mechanical, and transmission line contracts of the project as well as conducts periodic site visit for observation of the progress of construction works.

Type : Run-of-River

Client : Swet Ganga Hydropower & Construction Limited

Location : Ramechhap and Okhaldhunga Districts

Capacity : 28.1 MW

Gross head : 118 m



Weir : 53 m (length)6.0 m (height) above river bed

Intake : Side intake ,4 orifice of size 3.5 m (w) x 2.8m (h)

Settling basin : Surface, 2 bays,65 m (length)14 m (width), 8m (depth)

Headrace tunnel : 4965m lengthD Shaped 4.9 m dia.

Penstock : 217.5 m length

3.75 m dia.

Powerhouse : Surface2 nos. vertical Francis units

Bill Verification


Dordi Khola ydropower Pro ect

(27 )

Type : Run-of-River

Client : Himalayan Power Partner Limited

Location : Lamjung District

Capacity : 27 MW

Gross head : 212m

Weir : Free overflow concrete weir

Intake : Side intake

Settling basin : Surface, 2 nos.60 m (l) x 8.5 m (w)

Headrace tunnel : 2662 m lengthD Shaped

Headrace Pipe : 3237 m length2.65 m dia

Penstock : 700 m length2.30 m dia

Powerhouse : Surface Francis turbines

Dordi Khola Hydropower Project is a Run-of-River type hydroelectric project with generating capacity of 27 W in Lamjung District. The design discharge of the proposed scheme is 15.28 m3/s with gross head of 212.0 m. Himalayan Power Partner Limited (HPPL) is the developer of the project whereas the Prime Commercial Bank Limited is the lead bank of the consortium of banks/ fi nancial institutions to raise the required loan fi nancing of the project.

HCE’s scope of works for this project is to verify the interim payment certifi cates (IPCs) and fi nal payment certifi cate issued for Civil, hydro-mechanical, electro-mechanical and transmission line contracts of the project and submit the disbursal report based on authentic progress reports, IPCs, photographs, clarifi cations provided by the Employer and site verifi cation as required.

CE also undertakes the periodic fi eld visits for progress monitoring and prepare the fi eld visit report.

Till date, CE has reviewed and verifi ed 2 IPCs (12 IPCS of Civil Works, 3 IPCs of nominated sub-contracted work of WCP and Penstock alignment & 9 IPCs of Hydro-mechanical Works) of Construction of Civil and Hydro-mechanical Works (Package-2) and 12 IPCs of Construction of Underground Civil Works (Package-3).


Solu ydroelectric Pro ect (2 .5 )

Solu Hydroelectric Project is a Run-of-River type hydroelectric project with generating capacity of 23.5 W in Solukhumbu District. The design discharge of the proposed scheme is 12.26 m3/s with gross head of 229.0 m. Upper Solu Hydroelectric Company Pvt. Ltd. (USHEC) is the developer of the project whereas the Laxmi Bank Limited is the lead bank of the consortium of banks/ fi nancial institutions to raise the required loan fi nancing of the project.

HCE’s scope of works for this project is to verify the interim payment certifi cates (IPCs) and fi nal payment certifi cate issued for Civil, hydro-mechanical, electro-mechanical and transmission line contracts of the project and submit the disbursal report based on authentic progress reports, IPCs, photographs, clarifi cations provided by the Employer and site verifi cation as required. CE also undertakes the periodic fi eld visits for progress monitoring and prepare the fi eld visit report.

Till date, CE has reviewed and verifi ed 38 IPCs (28 IPCS of Civil Works, 7 IPCs of ydro-mechanical Works & 3 IPCs of Transmission Line Works) of Construction of Civil Works (Lot-2), Hydro-mechanical Works (Lot-3) and Transmission Line Works (Lot-5).

Type : Run-of-River

Client : Upper Solu Hydroelectric Company Pvt. Ltd.

Location : Solukhumbu District

Capacity : 23.5 MW

Gross head : 229m

Weir : 26m long

Intake : Side intake

Settling basin : Surface, 1 bay with SEDICON

Headrace pipe : 3900 m length

Surge tank : Inclined pipe with rectangular Chamber

Penstock Pipe : 400 m length

Powerhouse : Surface 2 units Vertical axis Francis turbines


Lower Hewa Khola ydropower Pro ect

(21.6 )Lower Hewa Khola Hydropower Project (LHKHP) is a RoR type project which is located in Panchthar district of Nepal has the design discharge of 14.84 cumecs with gross head of 175.50 m. The installed capacity of the Project is 21.6 MW.

Mountain Hydro Nepal Limited (MHNL) is the developer of the project and Prime Commercial Bank Limited is the lead bank of the consortium of banks/ fi nancial institutions to raise required debt fi nancing for the project.

HCE’s scope of works for this project is to verify the interim payment certifi cates (IPCs) and fi nal payment certifi cate issued for Civil, hydro-mechanical, electro-mechanical and transmission line contracts of the project along with the periodic fi eld visits for progress monitoring. The construction of the project is about to complete.

Type : Run-of-River

Client : Mountain Hydro Nepal Limited (MHNL)

Location : Panchthar District

Capacity : 21.6 MW




Weir : Free overflow type concrete weir at Hewa Khola and Pheme Khola

Intake : Side intakes

Settling basin : Surface, 2 bays both at Hewa and Pheme Khola

Headrace Tunnel : 5295.49 m length3.5m dia

Penstock pipe : 660 m length2.6 m dia

Powerhouse : Surface3 units of Francis Turbine


Uppallo Khimti ydroelectric Pro ect

(12 )The 12 MW installed capacity Upallo Khimti Hydropower Project (UKHP) is a RoR project located just downstream at confl uence of Gwang khola and Khimti Khola in Chuchure Village Development Committee (VDC) of Ramechhap district.

Upallo Khimti ydropower Project was identifi ed by Himalayan Urja Bikash Company Limited (HUBCL) and is the owner of the Project whereas Loan fi nancing of UK P is being done by a consortium of Nepalese banks led by Nabil Bank Limited. The consortium of Nepalese banks comprises of Nabil Bank (Lead bank) and member banks Nepal Bank, Everest Bank and Ace Development Bank.

HCE’s scope of works for this project is to verify the interim payment certifi cates (IPCs) issued by the engineer for Civil, hydro-mechanical, electro-mechanical contracts of the project along with the periodic fi eld visits for progress monitoring. The Construction of the project is ongoing and

ill verifi cation is carried out on stages.

Till date, CE has reviewed and verifi ed 2 IPCs (14 IPCS of Civil Works & 10 IPCs of Hydro-mechanical Works) of Construction of Civil and Hydro-mechanical Works

Type : Run-of-River

Client : Himalayan Urja Bikash Company Limited (HUBCL)

Location : Ramechhap District

Capacity : 12 MW

Gross head : 300 m



Weir : Gravity free flow weir

Intake : Side intake with 3 openings of 2.20m (w) x 0.90m (h)

Settling basin : Dufour double chamber continuous flushing type2bays55m (l)

Penstock pipe : 3789 m length

Powerhouse : Surface2 units of Horizontal Pelton Turbine


Upper Khimti ydroelectric

Pro ect (7 )The 7 W installed capacity Upper Khimti -II Hydropower Project (UKHP-II) is a cascade project located in left bank of Khimti Khola within Chuchure Village Development Committee (VDC) of Ramechhap district.

Upper Khimti Hydropower Project was identifi ed by imalayan Urja ikash Company Limited (HUBCL) and is the owner of the Project whereas Loan fi nancing of UK P is being done by a consortium of Nepalese banks led by Nabil Bank Limited.

HCE’s scope of works for this project is to verify the interim payment certifi cates (IPCs) issued by the engineer for Civil, hydro-mechanical, electro-mechanical contracts of the project along with the periodic fi eld visits for progress monitoring. The Construction of the project is ongoing and ill verifi cation is carried out on stages.

Till date, CE has reviewed and verifi ed 21 IPCs (13 IPCS of Civil Works & 8 IPCs of Hydro-mechanical Works) of Construction of Civil and Hydro-mechanical Works.

Type : Run-of-River

Client : Himalayan Urja Bikash Company Limited (HUBCL)

Location : Ramechhap District

Capacity : 7 MW

Gross head : 145 m



Weir : Gravity free flow weir25 m (l)

Intake : Side intake with 3 openings of 2.50m (w) x 1.35m (h)

Settling basin : Single chamber

Headrace Pipe : 3000 m long

Surge Tank : 45.0 m (h) and 4.0m diameter

Penstock pipe : 326.51 m length

Powerhouse : Surface2 units of Horizontal Francis Turbine


Completed Projectsof Hydro-Consult Engineering Limited

SN Name of Projects and Short Description Client Place of Work

1Gura Hydorpower Porject (5 MW): Construction Supervision, Project Management and Quality Control

Kenya Tea DevelomentAgency (KTDA), Kenya

Nyeri County, Kenya

2

JamshillTuren More Hydropower Project (260 MW): Review of previous studies, geological study, review of geo-technical investigations and geophysical investigation, review hydrological assessment, sedimentation study, power demand and forecast, layout planning, power and energy potential study, hydraulic and structural design, electro-mechanical design, preparation of BOQ, drawings and cost estimate, economic and financial analysis, construction planning & scheduling, preparation of Feasibility Study report.

Pakhtunkhwa Electricity Development Organization

Chitral District,Khyber Pakhtunkhwa,Pakistan

3

Turen More – Kari Hydropower Project(350 MW): Review of previous studies, geological study, geo-technical and geo-physical investigation, review of hydrological assessment, sedimentation study, power demand and forecast, layout planning, power and energy potential study, hydraulic and structural design, electro-mechanical design, preparation of BOQ, drawings and cost estimate, economic and financial analysis, construction planning and scheduling, preparation of Feasibility Study report.

Pakhtunkhwa EnergyDevelopment Organiza-tion

Chitral District,Khyber Pakhtunkhwa,Pakistan

4Uileann Hydro, Wyvis Hydro and Corrour Hydro schemes: Supported in the structural design and detailing of various structural components such as intake, thrust bocks and switchroom concrete slab.

Hydroplan United Kingdom


1 Due Dilligence of Manang Marshyangdi (135 MW) Butwal Power Company Manang

2 Due Dilligence of Super Nyadi HPP (40 MW) NMB Bank LimitedLamjung District,Western Nepal

3Detail Engineering Design & Tender Document Preparation of Solu Khola HEP(23.5 MW)

Sahas Urja Limited Solukhumbu District

4 Detail Design Of Budhiganga Khola SHP (10.85 MW) DoED, GoN Bajura District

5 Detail Design of Inkhu Khola SHP(21.4 MW) DoED, GoN Solukhumbu District

6 Detail Design of Lower Hongu (30.2 MW) DoED, GoN Solukhumbu District

7 Detail Design of Siwa Khola HPP (26.86 MW) DoED, GoN Taplejung District

8 Dordi Structural Analysis of Powerhouse (27 MW) Himalayan Power Partner Lamjung

9 Due Dilligence of Bhim Khola SHP (4.96 MW)Shikar Power Development Pvt.Ltd

Baglung District

10 Due Dilligence of Sapsup Khola Small HPP(6.56 MW) Three start Hydropower Limited Khotang District

11 Feasibility Study of Mugu Karnali HPP-Phase 1(160 MW) Butwal Power CompanyHumla and Mugu District

12 Jhimruk Dam (Headworks Civil and Intake) Butwal Power Company Pyuthan

13 Khudi Repair Works 2075 Butwal Power Company Lamjung

14 Lower Manang Marshyangdi Additional works (140 M W) Butwal Power Company Manang

15 Repair works of Jhimruk Upstream Channel Butwal Power Company pyuthan

INTERNATIONAL PROJECTS

NATIONAL PROJECTS



16 Solu-Dudhkoshi Sub -Contract Documents (86 MW) Sahas Urja Limited Solukhumbu District

17 Structural Design of Roofttop Windmill Support Butwal Power Company

18 Due Dilligence of Lower Erkhuwa Khola HPP (13.04 MW)Lower Erkhuwa Hydropower(P) Ltd

Bhojpur District

19Feasibility Study,Tender Document and Detail Design of Mistri 2 HEP (12 MW)

Mountain Energy Nepal Ltd Myadi District

20Lower Hongu Khola Small Hydropower Project (30.3 MW): Detail design and Environmental Update

Department of ElectricityDevelopment (DoED),Government of Nepal (GoN)

Solukhumbu District,Central Nepal

21Inkhu Khola Small Hydropower Project (21.4 MW): Detail design and Environmental Update

DoED, GoNSolukhumbu District,Central Nepal

22Upper Jhimruk Storage Project (97.7 MW): Pre-feasibility Study and Environmental Baseline Study

DoED, GoNPyauthan District,Mid-westren Nepal

23 Sediment Management of Run-of River Hydropower Projects of NepalWater and EnergyCommission Secretariat, GoN

Nepal

24Khimti-2 Hydropower Project (48.8 MW): Feasibility Review and Detail Design

Peoples Energy Limited Dolakha District, Central Nepal

25Solu Khola (DudhKoshi) Hydropower Project (86 MW): Feasibility Review and Detail Design

SahasUrja Limited Solukhumbu District, Central Nepal

26 Middle Tamor Hydropower Project (73 MW): Due Diligence Appraisal Nepal Investment Bank Limited Taplejung District, Eastern Nepal

27 Upper Nyasim Hydropower Project (43 MW): Due Diligence Appraisal Sindhu Jwala Hydropower Limited

Sindhupalchok Dis-trict, Central Nepal

28 Super Nyadi Hydropower Project (40 MW): Due Diligence Appraisal NMB Bank Limited Lamjung District, Western Nepal

29 Upper Mailung Hydropower Project (14 MW): Due Diligence Appraisal Siddartha Bank Limited Rasuwa District, Central Nepal

30Hewa Khola A Hydroelectric Project (14.9 MW): Interim Payment Certificate Verification

Sanima Bank Limited/ Pancthar Power Company

Panchthar District, Eastern Nepal

31 Upper Trishuli 3B Hydropower Project (37 MW): Due Diligence Appraisal Nabil Bank Limited Nuwakot District, Central Nepal

32Upper Mai Hydroelectric Project (9.98 MW): Construction supervision, project management and quality control

Mai Valley Hydropower Pvt Ltd Ilam District, Eastern Nepal

33Upper Mai ‘C’ Hydroelectric Project (6.1 MW): Construction supervision, project management and quality control

Panchakanay Mai Hydorpower Limited

Ilam District, Eastren Nepal

34Khudi Hydorpower Porject (4 MW): Site supervision for repair and maintenance of weir, undersluice and siphon area

Khudi Hydropower Limited Lamjung District, Western Nepal

35Thapa Khola Hydropower Project (13.6 MW): Feasibility study, detail engineering design, project management and construction supervision

Mount Kailash Energy Company P. Limited

Mustang District, Western Nepal

36 Nyadi Hydropower Project 132 KV TL: EIA Study Nyadi Hydropower Limited Lamjung District

37 Darbang Myagdi Hydroelectric Project (25 MW): Due Diligence Appraisal Dolma Impact Fund/ Dhaulagiri Kalika Hydro Private Limited

Myagdi District, Western Nepal

38 Mai Hydropower Project IPC varification (22 MW) Laxmi Bank Ltd. Illam District

39 Mai Cascade Hydropower Project IPC varification (7 MW) Sanima Mai Hydropower Ltd. Illam District

40 Midim Khola (Karapu) Hydropower Project (3 MW) Union Hydropower Pvt. Ltd. Lamjung District

41 Super Dordi Hydropower Project-Kha (49.6 MW): Due Diligence Appraisal Nabil Bank Limited Lamjung District, Western Nepal



42

Khimti 1 Hydropower Project (60 MW): Preparation of Detailed Project Report (DPR) for the repair works of headworks area, tender document, detail design of civil structures, construction drawings, and contract management and construction supervision.

Himal Power Limited Dolakha District, Eastern Nepal

43 Bagmati Small Hydropower Project (20 MW): Due Diligence Appraisal Mandu Hydrropower Limited Makwanpur District, Central Nepal

44 Upper Mardi Khola Hydropower Projcet (7 MW) Prime Commercial Bank Ltd. Kaski District

45

Mistri Khola Hydroelectric Project (42 MW): HCE in consortium with Norplan of Norway carried out detail design of civil structures and preparation of construction drawings. Initially, HCE carried out the optimization of final layout and principal design of other project components, updated the technical specifications for electromechanical works and evaluation of technical proposal for electromechanical works.

Robust Energy Private Limited Myagdi District, Western Nepal

46 Ghalemdi Hydropower Project (4 MW): Due Diligence Appraisal NMB Bank Limited Myagdi District, Western Nepal

47 Upplo Khimti Hydropower Project (12 MW): Due Diligence Appraisal Himalayan Urja Bikash Compa-ny Pvt Ltd

Ramechhap District, Central Nepal

48 Upper Khimti II Hydropower Project (7MW): Due Diligence Appraisal Himalayan Urja Bikash Compa-ny Pvt Ltd

Ramechhap District, Central Nepal

49Nwa Gad Small Hydroelectric Project (1 MW): Detailed engineering design and tender document preparation

Jal Urja Private Ltd Darchula District, Far Western Nepal

50

Andhi Khola Hydropower Project (Upgrading) (9.4 MW): Support for construction supervision and quality control. Hydraulic and structural design of all the headworks components, surge tank, powerhouse (civil works) and geotechnical design of tailrace; preparation of as-built drawings. Previously, HCE carried out the IEE study for the upgraded project.

Butwal Power Company Limited

Syangja District, Western Nepal

51Middle Modi Hydropower Project (15.1 MW): Reviewing the updated Feasibility Study, preparation of Design Basis Memorandum (DBM) and tender document and detail engineering works.

Middle Modi Hydropower Limited

Parbat and Kaski Districts, Western Nepal

52

Khani Khola (Dolakha) Hydropower Project (30 MW): Project layout selection; hydraulic design, structural design and construction drawings preparations; tender documents preparation of civil surface works, tunneling works, hydro-mechanical works and electro-mechanical works.

Sasha Engineering Hydropower Private Limited

Dolakha District, Eastern Nepal

53JogmaiKhola Small Hydroelectric Project (7.6 MW): Due Diligence Appraisal of the project.

NMB Bank Limited Ilam District, Eastern Nepal

54DordiKhola Hydropower Project (27 MW): Due Diligence Appraisal of the project.

Prime Bank Limited Lamjung District, Western Nepal

55 Lohare Khola Hydroelectric Project (4.2 MW): Due Diligence Appraisal NMB Bank Limited Dailekh District, Mid Western Nepal

56Naugarh Gad Small Hydroelectric Project (8.5 MW): Due Diligence Appraisal of the project.

Nepal Bank Limited Darchula District, Far Western Nepal

57

Kabeli-A Hydroelectric Project (36.7 MW): Updated feasibility study and detail design; project component optimization; tender document revision and tender evaluation for Civil, Hydro-mechanical and Electro-mechanical works; Social Assessment and Social Action Plan and IEE studies; Coordination of EIA and Cumulative Impact Assessment studies to augment project financing from the WB and IFC

Kabeli Energy Limited Panchthar and Taplejung districts, Eastern Nepal

58Nyadi Hydropower Project (30 MW): Updated feasibility study, detail design, updated EIA study and Supplementary IEE study.

Nyadi Hydropower Limited Lamjung district, Western Nepal

59Lower ManangMarsyangdi Hydroelectric Project (140 MW): Feasibility, detail design, preparation of tender documents and EIA study.


Manang district; Western Nepal

60BheriBabai Diversion Multipurpose Project, Component B: Hydropower (48 MW): Feasibility study review, detail design and tender document preparation

Department of Irrigation Surkhet district, Mid-western Nepal



61TadiKhola Hydropower Project (5 MW): Detailed engineering design, tender document preparation and construction supervision works of the project.

Aadishakti Bidhut Bikas Compa-ny Pvt Ltd

Nuwakot district, Central Nepal

62 Marsyangdi III Hydroelectric Project (42 MW) : Feasibility and IEE Study Keton Hydropower Company Pvt Ltd

Lamjung and Tanahun districts, Western Nepal

63Adhi Khola Upgrading Project (9.4 MW): Feasibility, detail design and IEE study


Syangjha district; Western Nepal

64

Feasibility Study on Agro-Enterprises and Forest-Based Entrepreneurship Options at Jhimruk and AndhiKholaHydropower Project Sites: Feasibility study of agro-enterprises and forest-based entrepreneurship activities at Jhimruk and Andhikhola hydropower project sites.


Syangjha and Pyuthan districts, Western and Mid-Western Nepal

65

Study of large mammals in Hetauda-Dhalkebar-Duhabi 400 kV Transmission Line Project: Specific study on large mammals (Leopard, Royal Bengal Tiger, Elephant and Wild Cats) in the project area to fulfill the requirement of World Bank for Project funding.

Nepal Electricity Authority 10 Terai districts of Central and Eastern Nepal

66Study of Birds in Hetauda-Dhalkebar-Duhabi 400 kV Transmission Line Project: Specific study on Birds in the project area to fulfill the requirement of World Bank for Project funding.

Nepal Electricity Authority 10 Terai districts of Central and Eastern Nepal

67

Study on Regional Hydro Power Projects in Nepal: Study and identified potential projects ranging from 300 MW to 10,000 MW for future regional hydropower plants developments. The study has suggested possible options for grid connectivity of the proposed regional power plants with the neighbouring countries considering SAARC Electricity Grid

SAARC Energy Centre Nepal

68Jhimruk Impact Study: Post operation study of environmental and social impacts in Jhimruk project area.


Pyuthan district; Mid-western Nepal

69 BhimKhola Small Hydropower Project (9 MW): Feasibility and IEE study Butwal Power Company Limited

Baglung district; Western Nepal

70NyasimKhola Hydropower Project: Due diligence study that includes field survey, geological, hydrological and socio-environmental study, conceptual design and drawings, costing, capacity optimization and financial analysis.


Sindhupalchok, Central Nepal

71

Sikta Irrigation Project: Review of detailed engineering design of the project, contract management, construction supervision and quality control and assurance of main canal from Ch 0+614km to Ch 15+000 km through one ICB and 3 NCB contracts.

Department of Irrigation Mid-western Nepal

72

Khudi Hydropower Project (4 MW): Review of feasibility study, detail design, construction supervision, preparation and implementation of environmental management programme and testing and commissioning of the Project.

Khudi Hydropower Limited Lamjung district; Western Nepal

73Rural Electrification and Expansion Project (REEP): Sustainable Rural Electrification, Environmental Impact Examination (EIE) Study and Environmental Performance Study Report


4 districts of Mid- Western and Western Nepal

74

SoluKhola (DudhKoshi) Hydroelectric Project (86 MW): Due Diligence Studythat includes field survey, geological, hydrological and socio-environmental study, conceptual design and drawings, costing, capacity optimization and financial analysis.


Solukhumbhu dis-trict, Eastern Nepal

75

BaramchiKhola Hydroelectric Project (1 MW and targeted for 3 MW): Due Diligence Studythat includes field survey, geological, hydrological and socio-environmental study, conceptual design and drawings, costing, capacity optimization and financial analysis.


Sindhupalchok dis-trict, Central Nepal

76Tamakoshi 3 Hydroelectric Project (880 MW): Environmental study and bridging Study

SWECO Norway Dolakha district, Central Nepal

77MadiKhola, InkuKhola and Bhudi Ganga Khola Small Hydropower Projects (12.25 MW, 20 MW, 6.2 MW) : Feasibility study and EIA study

Department of Electricity De-velopment

Eastern Nepal West-ern Nepal

78 Balephi Hydropower Project (50 MW) : Pre – feasibility study Balephi Hydropower Company Limited

Sindhupalchok dis-trict, Central Nepal

79Upper Mai Hydroelectric Project (9.98 MW) Eastern Nepal: Review of feasibility study, detail design (expected head – works) and tender document preparation

East Nepal Development Endeavour Pvt Ltd/ Mai Valley Hydropower Projects

Ilam district, Eastern Nepal



80Lower HonguKhola Small Hydropower Project (23.5 MW): Feasibility and EIA study


Solukhumbu district, Eastern Nepal

81Rural Electrification Global Development Alliance of Nepal (REGDAN): Sustainable rural electrification and IEE Study

USAID, Kathmandu Western Nepal

82KhareKhola Hydropower Project (14.7 MW): Feasibility study and IEE study for Generation, Access roads and Transmission Line components of the project.

Department of Electricity De-velopment /IRD

Dolakha district, Central Nepal

83Field Workers Training on Electricity Distribution System Operation and maintenance : Development and delivered the training program to Rural Entities (REE) to provide technical skills to field workers of selected REEs

Winrock International Central Nepal

84Khimti I Hydropower Project (60 MW): Socio-economic impact study on fishermen (Information report of the socio- economic impact study on fisherman)

Himal Power Limited Dolakhaand Ramechapdistricts, Central Nepal

85Khimti I Hydropower Project (60MW): Community and Environmental Services and EMP Implementation for the Project.


86

BPCH Design Guidelines- September 2008: Guidelines were developed on considering the necessity to harness the knowledge and experience, to maintain uniformity and quality in design, and to ease up the day-to-day design process at BPCH. This guideline will cover different disciplines of engineering and relevant sciences required in our BPCH activities and will consist of a list of standard and practiced reference materials. It also included the precautions to a potential problem a novice may face, and the clues to get rid of such a problem.


87Health and Safety Standards in hydropower : Prepared safety standards for generation, transmission and distribution of hydropower projects for DoED


Central Nepal

88Sunkoshi Hydropower Project (3.6 MW): Feasibility study, design review, survey of waterways and geological mapping of headworks

Sanima Hydropower Project Sindhupalchok dis-trict, Central Nepal

89

Study for Promotion of Electricity distribution by Cooperatives: Study carried out on "Promotion of Electricity Distribution by Cooperatives" which was commissioned by Department of Electricity Development (DoED) to explore possibilities of franchising electricity distribution through user associations and community participation. The Study was carried out to assist National Planning Commission (NPC) so that the findings of the study and modality of the distribution cooperative(s) could be incorporated in the Tenth Plan of NPC

Ministry of Water Resources Countrywide Re-sources, Department of Electricity

90Low flow hydrology Study and Fish Monitoring of Khimti-I Hydropower Project (60 MW): Low flow hydrological studies and Khimti fish monitoring work in the KhimtiKhola since the start of the operation of the project.

Himal Power Limited Dolakha and Ra-mechhap districts, Central Nepal

91

Melamchi Diversion Scheme (28 km Water Supply Tunnel): Assisted in the final design and preparation of the tender document as a sub-consult to NORPLAN A.S. Worked out social uplift program such as family health, sanitation, nutrition, family planning and income generation activities for women through non- formal education programs with low key input to raise awareness and the living standard of villagers. Designed head works.

Norplan AS Sindhupalchok dis-trict, Central Nepal

92Access Road (24 Km) to the intake and tunnel adits of Melamchi Diversion Scheme: Detailed survey and design of spoil- tips

Melamchi Water Supply Devel-opment Board

Central Nepal

93

TshoRolpa GLOF Risk Reduction Project: Undertook an evaluation of TshoRolpa, an unstable glacial lake located at 4500 m elevation. Prepared a detailed project proposal and then undertook a design -build contract to lower the lake level 3 m.

Dept of Hydrology and Meteo-rology/ Netherlands Develop-ment Assistance (NEDA)


94TshoRolpa GLOF Early Warning System Installation: Design and installation of Syphon drainage system.

BC Hydro, Canada Dolakha district, Central Nepal

95TrishuliKhola Small Hydro Project (4 MW): Prepared feasibility study for a 4 MW hydropower project, including a detailed cost estimate.

Annapurna Power Pvt Ltd Nuwakot district, Central Nepal

96Nyadi Hydropower Project (30 MW): Prepared a feasibility study for a 30 MW hydropower project, including a detailed cost estimate.

Lamjung Electricity Develop-ment Company Ltd

Lamjung district, Western Nepal



97Access Road (5 km) to the Nyadi Hydropower Project (30 MW): Survey and design of about 5 km long access road to the powerhouse area of the project at feasibility stage

Lamjung Electricity Develop-ment Company Ltd

Lamjung district, Central Nepal

98

Glacier Lake Outburst Flood (GLOF) Study of the Tama Koshi basin: Undertook an evaluation of TshoRolpa, an unstable glacial lake located at 4500 m elevation. Carried out detailed flood routing in the downstream valley for about 120 km reach.

Dept of Hydrology and Mete-orology

Central Nepal

99

Khimti I Hydropower Project (60 MW): Provided detailed civil engineering design under sub-contract for the Khimti I Project. The project involves run-of-the-river headworks, 10 km of tunnel, an underground powerhouse and surface and access infrastructure.

Himal Power Limited Dolakha and Ramechap districts, Central Nepal

100 Preparation of Civil Works Guidelines for Micro-hydropower in Nepal Intermediate Technology De-velopment Group (ITDG)

101

Jhimruk Hydropower Plant (12MW): Undertook design and construction supervision of additional river training works for the powerhouse location and at upstream and downstream of the Jhimruk dam structure. Liaised with the power plant owner and local communities to design and implement a mutually acceptable solution.


Pyuthan district, Mid- Western Nepal

102

Khimti I Hydropower Project (60MW): In association with the Norwegian University of Science and Technology, undertook the physical model study for the Khimti I Hydropower Project The study included tests of the proposeheadworks design on physical models of 1: 40 and 1: 15 scale.


103AndhiKhola Hydropower Project (5.1MW): Detailed design of flashboards to enhance the peak generation capacity of the AndhiKhola Hydropower Project.


Syangja district, Western Nepal

104

Khimti I Supplementary Environmental Assessment: Collaborated with Norconsult AS for the detailed study of the fishery, low flows and water use from the KhimtiKhola, as part of an investigation to determine appropriate downstream river-related mitigation measures for the Khimti I Hydropower Project.

International Finance Corpora-tion (IFC)


105

Khimti II Hydropower Project (26 MW): Undertook topographic survey and collection of field data on hydrology, environment, sediments and geology as part of investigations for the possible implementation Khimti II Hydropower Project. The preliminary study was conducted in association with Statkraft Engineering AS.

Himal Power Limited Dolakha district, Central Nepal

106NayapulKirne Road Project (22 km): Design and project management for construction of a road to the site of the Khimti I Hydropower Project.

Electricity Development Centre of Nepal

Central Nepal

107AndhiKhola Headrace Irrigation Project: Undertook feasibility study, detailed design and construction advice for this irrigation project.

United Mission to Nepal Syangja district, Western Nepal

108

Khimti I Hydropower Project Feasibility Study: Undertook detailed feasibility study in conjunction with Norpower AS. Study was completed April 1993. The study was used as a basis to commence funding of the project from international development banks.


109Kali Gandaki `A ’ Hydropower Project: Undertook specific investigations of materials, concrete quality, and HV transmission line alignment and design for Norpower.

Norwegian Power Consultants (Norpower AS)


110

Tinau Hydropower Project - Electro-mechanical rehabilitation and Upgrading: Prepared feasibility reports on rehabilitation of existing equipment, and possible upgrading of scheme capacity. Prepared headworks and desanding basin modifications.

Nepal Electricity Authority Rupandehi district, Western Nepal

111Micro-Hydropower Inventory Studies: Undertook district-wide review of micro-hydro potential and reconnaissance level design for 10 most promising sites in each of three districts.

Canadian International Water and Energy Consultants

Eastern & Western Nepal

112

Jhimruk Hydropower Project (12 MW): Undertook design, preparation of tender documents, project management and construction supervision of all works for the project. This included a 2 km tunnel and underground penstock, physical model of headworks, and extensive river training works.


Pyuthan district, Western Nepal

113Andhi Khola Hydropower Project (5.1 MW): Undertook design and construction supervision of this project. This included headworks tunnel and underground powerhouse, and surface and access infrastructure.



114Tinau Hydropower Project (1 MW): Undertook the design of dam and intake rehabilitation works as well as supervision of construction for the project.

Nepal Electricity Authority Rupandehi district, Western Nepal


HYDRO-CONSULT ENGINEERING LTD.Statement of Financial Position

As at 31 Ashad 2076 (16 July 2019)

Figures in NRs.

Note As at 31 Ashad 2076 As at 32 Ashad 2075

ASSETSNon-Current Assets

Property and equipment 3 15,663,616 13,723,669

Intangible assets 4 1,097,674 1,463,566

Financial assets

Trade receivables 5 2,579,946 948,819

Other fi nancial assets 6 115,490 111,490

Other non-current assets 7 2,697,753 2,697,753

Deferred-tax Assets 10 1,749,890 929,426

Total Non-Current Assets 23,904,369 19,874,723

Current assets

Financial assets

Trade receivables 5 75,371,280 55,196,274

Cash and cash equivalents 8 28,433,390 32,375,485

Bank balance other than cash and cash equivalents 9 5,002,998 6,074,777

Investment in Fixed Deposit 30,186,986 10,229,041

Other fi nancial assets 6 7,890,766 9,494,505

Other current assets 7 3,292,711 624,979

Current tax (net) 10 - 6,579,041

Total current assets 150,178,131 120,574,102

Total assets 174,082,500 140,448,825

EQUITY AND LIABILITIESEquity

Equity share capital 11 14,723,100 14,723,100

Reserves 12 107,148,011 87,727,747

Total Equity 121,871,111 102,450,847

Liabilities

Non-Current Liabilities

Provisions 13 605,404 509,638

Other non-current liabilities 14 - 1,492,873

Total Non-Current Liabilities 605,404 2,002,511

Current Liabilities

Financial liabilities

Trade payables 15 13,608,820 2,767,641

Other fi nancial liabilities 16 12,521,527 15,181,131

Provisions 13 6,901,925 4,218,321

Other current liabilities 14 15,611,552 13,828,374

Current tax (net) 2,962,160 -

Total Current Liabilities 51,605,985 35,995,467

Total Liabilities 52,211,389 37,997,978

Total Equity and Liabilities 174,082,500 140,448,825

Net worth per share 1,182.38 953.94

Notes 1-28 are integral part of these fi nancial statements. This is the same fi nancial statements mentioned in our report.

Manohar ShresthaChief Executive Offier

Rabindra RanjitFinance Manager

Date: 11 Mangsir, 2076Place: Kathmandu, Nepal

Pratik Man Singh PradhanDirector

Murali Prasad SharmaDirector

Radheshyam ShresthaDirector


CA. Prabin D. JoshiPrabin Joshi & Co.

Chartered Accountants


HYDRO-CONSULT ENGINEERING LTD.Statement of Pro� t or Loss and Other Comprehensive Income

For the year ended on 31 Ashad 2076 (16 July 2019)

Figures in NRs.

Note 2075-76 2074-75

Revenue from operations 17 210,646,396 169,059,661

Cost of revenue 18 (138,282,837) (111,794,975)

Gross Profi t 72,363,559 57,264,686

Other income 19 3,171,144 3,629,716

Administrative Expenses 20 (41,814,044) (26,758,151)

Finance Income 21 4,075,726 2,363,314

Finance Cost 22 (88,525) (58,058)

Profi t Before Tax 37,707,860 36,441,507

Income Tax Expense (12,087,699) (9,817,702)

Current tax 10 (12,908,164) (9,758,136)

Deferred tax credit/(charge) 10 820,465 (59,566)

Profi t from continuing operations 25,620,161 26,623,805

Net Profi t for the year 25,620,161 26,623,805

Other comprehensive Income:

Other comprehensive Income not to be reclassifi ed to profi t or loss in subsequent periods

i. Re-measurement (losses) / gains on post employment defi ned benefi t plans - -

ii. Tax relating to items that will not be reclassifi ed to profi t or loss - -

Other comprehensive gain/(loss) for the year, net of tax - -

Total Comprehensive gain/(loss) for the year, net of tax 25,620,161 26,623,805

Earnings per equity share of Rs. 100 each

Basic Earnings per share - NRs. 23 174.01 180.83

Diluted Earnings per share - NRs. 23 174.01 180.83

Net worth per share

This is the same fi nancial statements mentioned in our report.











HYDRO-CONSULT ENGINEERING LTD.Statement of Changes in Equity

As at 31 Ashad 2076 (16 July 2019)

Share capital Retained earnings Total

Balance at 1 Shrawan 2074 14,723,100 64,978,442 79,701,542

Profi t for the year 26,623,805 26,623,805

Other comprehensive income - - -

Total comprehensive income - 26,623,805 26,623,805

Dividends to shareholders - (3,874,500) (3,874,500)

Bonus Share Issued -

Balance at 32 Ashad 2075 14,723,100 87,727,747 102,450,847

Profi t for the year - 25,620,161 25,620,161

Other comprehensive income - - -

Total comprehensive income - 25,620,161 25,620,161

Dividends to shareholders (6,199,897) (6,199,897)

Bonus Share Issued - - -

Balance at 31 Ashad 2076 14,723,100 107,148,012 121,871,111





















HYDRO-CONSULT ENGINEERING LTD.Statement of Cash Flow

For the year ended on 31 Ashad 2076 (16 July 2019)

Figures in NRs.

2075-76 2074-75

CASH FLOWS FROM OPERATING ACTIVITIES

Profi t for the year before income tax 37,707,860 36,441,507

Adjustments for:

Depreciation on property, plant and equipment 3,379,882 3,049,761

Amortization of Intangible Assets 365,891 487,855

Provision for employee benefi ts 2,779,370 (351,024)

Provision for Bonus 3,770,827 3,644,190

Non cash fi nance income (186,982)

Finance income (3,888,744) (822,740)

Assets written off 49,055 -

Unrealized foreign exchange difference on cash and cash equivalents (166,045)

Working capital adjustments:

(Increase)/ decrease in Trade receivables (21,806,133) (20,348,222)

(Increase)/ decrease in other fi nancial assets 1,599,739 (1,253,840)

(Increase)/ decrease in other current assets (1,595,953) 521,302

Increase / (decrease) in Trade payables 10,841,179 670,889

Increase / (decrease) in other fi nancial liabilities (2,744,297) 4,716,962

Increase / (decrease) in other liabilities 290,305 (2,532,500)

Cash generated from operations 30,562,000 24,058,095

Bonus paid (3,686,134) (1,701,443)

Income Tax Paid (3,366,963) (7,411,041)

NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 23,508,904 14,945,611

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property and equipment 601,741

Acquisition of property and equipment (5,368,884) (5,890,973)

Investment In fi xed deposit (20,000,000) (10,000,000)

Interest received on fi xed deposit 4,117,783 822,740

Purchase of intangible assets - -

NET CASH FLOWS FROM INVESTING ACTIVITIES (B) (21,251,102) (14,466,492)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid (6,199,897) (3,874,500)

NET CASH FLOWS FROM FINANCING ACTIVITIES (C) (6,199,897) (3,874,500)

INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C) (3,942,095) (3,395,382)

Net foreign exchange difference on cash and cash equivalents 166,045

Cash and cash equivalents, Beginning of Year 32,375,485 35,604,822

CASH AND CASH EQUIVALENTS, End of Year 28,433,390 32,375,485



HYDRO-CONSULT ENGINEERING LTD. (HCE)Notes to the financial statements for the financial year ended 31st Ashad 2076

Figures in NRs.

Note 1: Background

Hydro-Consult Engineering Ltd. (hereinafter referred to as ‘HCE’ or ‘the company’) was named Hydro-Consult Private Ltd. prior to conversion into public limited company. Hydro-Consult was established on 24 March 1995 and was owned by People Energy and Environment Development Association (PEEDA). Butwal Power Company Limited (BPC) acquired 80% shares of the company on 16 July 2009 and remaining 20% is owned by PEEDA. BPC transferred engineering consultancy business, fi xed assets, goodwill of its Engineering Department (BPC Hydro Consult) to HCE with objective to run the engineering consultancy business as separate entity. HCE inherited 2 years of professional experience from the engineering department of BPC. The company acquired public limited status on 1 September 2012 and took its new identity of Hydro-Consult Engineering Ltd. (HCE).

The fi nancial statements apply to the fi nancial year ended on 31st Ashad 2076 (16 July 2019).

The accompanied fi nancial statements have been authorized for issue by the Board of Directors of the HCE in its meeting held on 11 Mangsir 2076. This shall be presented to annual general meeting of its shareholders for approval.

Note 2: Signifi cant accounting policies

2.1 Basis of preparation and measurement

i. Statement of Compliance

The fi nancial statements are prepared in accordance with Nepal Financial Reporting Standards (hereinafter referred as “NFRS”) issued by the Institute of Chartered Accountants of Nepal (ICAN). The Financial Statements are also prepared in accordance with the relevant presentation requirements of the Company Act, 2063 of Nepal.

ii. Basis of preparation

The fi nancial statements are prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the fi nancial statements. All assets and liabilities have been classifi ed as current or non-current as per the Company’s normal operating cycle. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its

operating cycle as 12 months for the purpose of current or non-current classifi cation of assets and liabilities.

The fi nancial statements are presented in functional and presentation currency of the Company, Nepalese Rupee (“NRs.”) which is the currency of the primary economic environment in which the Company operates.

iii. Basis of measurement

These fi nancial statements are prepared under historical cost convention except for certain material items that have been measured at fair value as required by the relevant NFRS and explained in the ensuing policies below.

2.2 Critical accounting estimates and judgements

The preparation of the fi nancial statements in conformity with NFRS requires the use of certain critical accounting estimates and judgments. It also requires management to exercise judgment in the process of applying the Company’s accounting policies. The Company makes certain estimates and assumptions regarding the future events. Estimates and judgments are continuously evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Management believes that the estimates used in the preparation of the fi nancial statements are prudent and reasonable. Future results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. The estimates and assumptions that have a signifi cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fi nancial year primarily includes:-

Useful life and residual value of property and equipment

Management reviews the useful life and residual values of property and equipment at least once a year. Such life is dependent upon an assessment of both the technical life of the assets and also their likely economic life, based on various internal and external factors including relative effi ciency and operating costs. Accordingly, depreciable lives are reviewed annually using the best information available to the Management.


Impairment of property and equipment

At the end of each reporting period, the Company reviews the carrying amounts of its property and equipment to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount is the higher of fair value less costs to sell and value in use. Value in use is usually determined on the basis of discounted estimated future cash fl ows. This involves management estimates on anticipated commodity prices, market demand and supply, economic and regulatory environment, discount rates and other factors. Any subsequent changes to cash fl ow due to changes in the above mentioned factors could impact on the carrying value of assets.

Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallizing or are very diffi cult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

Recognition of deferred tax assets

Signifi cant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profi ts together with future tax planning strategies. The Company based its assumptions and estimates on parameters available when the fi nancial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company.

2.3 Property and equipment

i. All items of property and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

ii. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefi ts associated with the item will fl ow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as separate

assets are derecognized when replaced. All other repairs and maintenance are charged to profi t and loss during the reporting period in which they are incurred.

iii. The Company identifi es and determines cost of each component/ part of the asset separately, if the component/ part has cost which is signifi cant to the total cost of the asset having useful life that is materially different from that of the remaining asset. These components are depreciated over their useful lives; the remaining asset is depreciated over the life of the principal asset.

iv. The residual values, useful lives and methods of depreciation of property and equipment are reviewed at each fi nancial year end and adjusted prospectively, if appropriate.

v. An item of property and equipment and any signifi cant part initially recognised is derecognised upon disposal or when no future economic benefi ts are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profi t and loss when the asset is derecognised.

vi. Assets in the course of construction are capitalized in the assets under capital work in progress account (CWIP). At the point when an asset is operating at management’s intended use, the cost of construction is transferred to the appropriate category of property and equipment and depreciation commences. Where an obligation (legal or constructive) exists to dismantle or remove an asset or restore a site to its former condition at the end of its useful life, the present value of the estimate cost of dismantling, removing or restoring the site is capitalized along with the cost of acquisition or construction upon completion and a corresponding liability is recognized. Revenue generated from production during the trial period is capitalized.

2.4 Other Intangible Assets

i. Intangible assets with fi nite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Intangible assets with indefi nite useful lives are carried at cost less accumulated impairment losses.


ii. Certain computer software costs are capitalized and recognised as intangible assets based on materiality, accounting prudence and signifi cant benefi ts expected to fl ow there from for a period longer than one year.

iii. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profi t and loss when the asset is derecognised.

2.5 Depreciation and Amortization

i. Depreciation is recognized so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives.

ii. Amortization is recognized under written down value method. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

iii. Depreciation is provided on the written down method based on the estimated useful lives of the assets determined by the management. Depreciation on additions to fi xed assets is charged on pro-rata basis in the year of purchase. The useful life of the assets and the corresponding rates at which the assets are depreciated are as follows:-

Category of asset Estimated useful life

Depreciation Rate

Engineering equipment 18–19 years 15%

Offi ce equipment 10-11 years 25%

Furniture and fi xtures 10-11 years 25%

Computers and accessories

10-11years 25%

Vehicles 13–14 years 20%

Computer software is amortized at the rate of 25% on written down value method.

Useful life is either the period of time which the asset is expected to be used or the number of production or similar units expected to be obtained from the use of asset.

The estimated useful life, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

iv. Leasehold improvements are depreciated

over the period of lease or estimated useful life, whichever is lower, on straight line basis.

v. Depreciation on assets under construction does not commence until they are complete and available for use.

2.6 Impairment of tangible and intangible assets

i. At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identifi ed, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Company of cash-generating units for which a reasonable and consistent allocation basis can be identifi ed.

ii. Intangible assets with indefi nite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

iii. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash fl ows are discounted to their present value using a pre-tax discount rate that refl ects current market assessments of the time value of money and the risks specifi c to the asset for which the estimates of future cash fl ows have not been adjusted.

iv. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in Statement of Profi t and Loss.

v. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying


amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in Statement of Profi t and Loss.

2.7 Borrowing cost

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset until such time as the assets are substantially ready for the intended use or sale. All other borrowing costs are expensed in the period in which they occur.

2.8 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and demand deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignifi cant risk of changes in value net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

2.9 Inventories

Cost of inventories includes cost of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Inventories are stated at the lower of weighted average cost and net realizable value. Net realizable value represents the estimated selling price for inventories in the ordinary course of business less all estimated costs of completion and estimated costs necessary to make the sale.

2.10 Revenue recognition

i) Revenue from consultancy contracts

Consultancy contract revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date, as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs.

Where the outcome of the contract cannot be estimated reliably, revenue is recognised to the extent of the contract costs incurred if it is probable that they will be recoverable. When the outcome of the contract is ascertained reliably, contract revenue is recognised at cost of work performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs. The estimated outcome of a contract is considered reliable when all the following conditions are satisfi ed:

i. The amount of revenue can be measured reliably,

ii. It is probable that the economic benefi ts associated with the contract will fl ow to the Group,

iii. The stage of completion of the contract at the end of the reporting period can be measured reliably, and

iv. The costs incurred or to be incurred in respect of the contract can be measured reliably.

Provision is made for all losses incurred to the balance sheet date. Variations in contract work, claims and incentive payments are recognised to the extent that it is probable that they will result in revenue and they are capable of being reliably measured. Expected loss, if any, on a contract is recognised as expense in the period in which it is foreseen, irrespective of the stage of completion of the contract. For contracts where progress billing exceeds the aggregate of contract costs incurred to-date and recognised profi ts (or recognised losses, as the case may be), the surplus is shown as the amount due to customers.

ii) Interest income

Interest income from a fi nancial asset is recognised when it is probable that the economic benefi ts will fl ow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the fi nancial asset to that asset’s net carrying amount on initial recognition.


2.11 Foreign currency transactions

i. The functional currency of the Company and its subsidiaries is determined on the basis of the primary economic environment in which it operates. The functional currency of the Company is Nepalese Rupee (NRs.).

ii. In preparing the fi nancial statements the Company, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.

iii. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined.

iv. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

v. Exchange differences on monetary items are recognised in Statement of Profi t and Loss in the period in which they arise.

2.12 Employment Benefi ts

The Company has schemes of employment benefi ts namely wages, salaries, provident fund, employee gratuity and encashment of unutilized accumulated leave as per employee service manual.

Defi ned contribution plan – Provident Fund

Under defi ned contribution plans i.e. provident fund, the Company pays pre-defi ned amounts to separate funds and does not have any legal or informal obligation to pay additional sums. Contributions to defi ned contribution schemes (Provident fund) are charged to the profi t or loss statement in the year to which they relate as the company has no further defi ned obligations beyond monthly contributions. Contributions to defi ned contribution schemes are deposited with Employees Provident Fund (Karmachari Sanchaya Kosh).

Defi ned contribution plan – Gratuity Fund

As per the provision of new Labor Act 2074 enacted and effective from September 4, 2017, gratuity plan has been converted into contribution plan from defi ned benefi t plan. Contribution of 8.33% of basic salary needs to be deposited on monthly basis to the separate

Social Security Fund. Company has deposited all amount calculated as per new labor laws in the pool fund maintained with Citizen Investment Trust.

Short term and long-term employment benefi t

i. A liability is recognised for benefi ts accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefi ts expected to be paid in exchange for that service.

ii. Liabilities recognised in respect of short-term employee benefi ts are measured at the undiscounted amount of the benefi ts expected to be paid in exchange for the related service.

iii. Encashment of unutilized accumulated leave, which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the obligation as at the Balance sheet date determined based on an actuarial valuation.

However, the company has not carried out actuarial valuation this year due to few permanent staffs and considering cost benefi t analysis, it believes that current estimates are nearest approximate to such valuation.

2.13 Taxation

Advance Tax

HCE had accounted for the amount withheld in Kenya as advance tax up to fi scal year 2072-73. Tax withheld at Kenya till previous years (fi scal year 2072-73) as per income tax returns of fi scal year 2072/73 is NRs. 10,106,283. Company has fi led for administrative review of reassessment order with Inland Revenue Department (IRD) for matter relating to foreign tax credit of fi scal year 2069/70. The carried forward balances till FY 2072/73 shall be adjusted in the books upon receiving fi nal decision by Inland Revenue Department (IRD).

Income Tax

Income tax on the profi t or loss for the year comprises current taxes and deferred taxes. Income tax is recognized in the profi t or loss statement except to the extent that it relates to items recognized directly to equity.

Current tax

Current tax is the expected tax payable on the taxable income for the year using tax rates at the balance sheet date and any adjustment to tax payable in respect of previous years.


Income tax rates applicable to company is 25% (previous year was 25%).

Deferred tax

i. Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for fi nancial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected realization or settlement of the carrying amount of assets and liabilities using tax rates at the balance sheet date.

ii. A deferred tax asset is recognized only to the extent that it is probable that future taxable profi ts will be available against which the asset can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that suffi cient taxable profi ts will be available to allow all or part of the asset to be recovered.

iii. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

2.14 Earnings per share

Basic earnings per share is computed by dividing the profi t/ (loss) for the year by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share is computed by dividing the profi t/ (loss) for the year as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profi t per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.

2.15 Provisions, contingencies and commitments

i. Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outfl ow of resources embodying economic benefi ts will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

ii. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.

iii. The expense relating to a provision is presented in the statement of profi t and loss net of any reimbursement.

iv. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that refl ects, when appropriate, the risks specifi c to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a fi nance cost.

v. A provision for onerous contracts is recognised when the expected benefi ts to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognises any impairment loss on the assets associated with that contract.

vi. A contingent liability is a possible obligation that arises from past events whose existence will be confi rmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outfl ow of resources will be required to settle an obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the standalone fi nancial statements.

vii. A contingent asset is a possible asset


that arises from past events and whose existence will be confi rmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

viii. Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.

ix. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each reporting period.

2.16 Financial Instruments

i. Financial instruments

Financial assets and fi nancial liabilities are recognised when the Company becomes a party to the contract embodying the related fi nancial instruments. All fi nancial assets, fi nancial liabilities and fi nancial guarantee contracts are initially measured at transaction cost and where such values are different from the fair value, at fair value. Transaction costs that are directly attributable to the acquisition or issue of fi nancial assets and fi nancial liabilities (other than fi nancial assets and fi nancial liabilities at fair value through profi t and loss) are added to or deducted from the fair value measured on initial recognition of fi nancial asset or fi nancial liability. Transaction costs directly attributable to the acquisition of fi nancial assets and fi nancial liabilities at fair value through profi t and loss are immediately recognised in the statement of profi t and loss. In case of interest free or concession loans/debentures/preference shares given to subsidiaries, associates and joint ventures, the excess of the actual amount of the loan over initial measure at fair value is accounted as an equity investment.

ii. Effective interest method

The effective interest method is a method of calculating the amortised cost of a fi nancial instrument and of allocating interest income or expense over the relevant period. The effective interest rate (EIR) is the rate that exactly discounts future cash receipts or payments through the expected life of the fi nancial instrument, or where appropriate, a shorter period.

Income/ expense arising on fi nancial instruments after applying an effective interest rate is recognised in Statement of Profi t and Loss and is included in the “Other fi nance income” or “Other fi nance cost” line item.

iii. Financial assets

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these fi nancial assets are held within a business model whose objective is to hold these assets in order to collect contractual cash fl ows and the contractual terms of the fi nancial asset give rise on specifi ed dates to cash fl ows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets measured at fair value

Financial assets are measured at fair value through other comprehensive income if these fi nancial assets are held within a business model whose objective is either to hold these assets in order to collect contractual cash fl ows or to sell these fi nancial assets and the contractual terms of the fi nancial asset give rise on specifi ed dates to cash fl ows that are solely payments of principal and interest on the principal amount outstanding. The Company in respect of equity investments (other than in subsidiaries, associates and joint ventures) which are not held for trading has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value of such equity instruments. Such an election is made by the Company on an instrument by instrument basis at the time of initial recognition of such equity investments.

Financial asset not measured at amortised cost or at fair value through other comprehensive income is carried at fair value through the Statement of Profi t and Loss.

For fi nancial assets maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the shorter maturity of these instruments.

Impairment of fi nancial assets

Loss allowance for expected credit losses is recognised for fi nancial assets measured at amortised cost and fair value through the statement of profi t of loss.

The company recognises impairment loss on trade receivables using credit loss model for those been outstanding for more than twelve months and whose recoverability is doubtful based on assessment of individual receivable balances.

De-recognition of fi nancial assets

The Company de-recognises a fi nancial asset


only when the contractual rights to the cash fl ows from the fi nancial asset expire, or it transfers the fi nancial asset and the transfer qualifi es for de-recognition under NFRS 9.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the assets and an associated liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred fi nancial asset, the Company continues to recognise the fi nancial asset and also recognises a collateralised borrowing for the proceeds received.

On de-recognition of a fi nancial asset in its entirety, the differences between the carrying amounts measured at the date of de-recognition and the consideration received is recognised in the Statement of Profi t or Loss unless it the fi nancial statements are measured at fair value through OCI on which case the amount already recognized in equity is transferred to retained earnings.

iv. Financial liabilities and equity instruments

Classifi cation as debt or equity

Financial liabilities and equity instruments issued by the Company are classifi ed according to the substance of the contractual arrangements entered into and the defi nitions of a fi nancial liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial Liabilities

Financial liabilities are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, using the effective interest rate method where the time value of money is signifi cant. Interest bearing bank loans, overdrafts and issued debt are initially measured at fair value and are subsequently measured at amortised cost using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in the Statement of

Profi t and Loss.

For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specifi ed debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee.

De-recognition of fi nancial liability

A fi nancial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing fi nancial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modifi ed, such an exchange or modifi cation is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profi t and loss.

v. Off-setting of fi nancial instruments

Financial assets and fi nancial liabilities are offset and the net amount is reported if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

vi. Fair Value measurement:

The Company measures fi nancial instruments, such as, investment in equity instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the asset or liability.


The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-fi nancial asset takes into account a market participant’s ability to generate economic benefi ts by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which suffi cient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the fi nancial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is signifi cant to the fair value measurement as a whole:

Level 1

Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2

Valuation techniques for which the lowest level input that is signifi cant to the fair value measurement is directly or indirectly observable

Level 3

Valuation techniques for which the lowest level input that is signifi cant to the fair value measurement is unobservable

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.17 Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfi lment of the arrangement is dependent on the use of a specifi c asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly

specifi ed in an arrangement.

A lease is classifi ed at the inception date as a fi nance lease or an operating lease.

Company as a lessee

A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classifi ed as a fi nance lease.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Finance leases are capitalized at the commencement of the lease at the inception date fair value of the leased asset or, at the present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments are apportioned between fi nance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in fi nance costs in the statement of profi t and loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Company’s general policy on the borrowing costs.

Operating lease payments are recognized as an expense in the statement of profi t and loss on a straight-line basis over the lease term unless either:

a. another systematic basis is more representative of the time pattern of the user’s benefi t even if the payments to the lessors are not on that basis; or

b. the payments to the lessor are structured to increase in line with expected general infl ation to compensate for the lessor’s expected infl ationary cost increases. If payments to the lessor vary because of factors other than general infl ation, then this condition is not met.

The lease amount payable in respect of operating lease is:

Period Amount (NRs.)

Up to 1 year 4,767,497.00

1-5 years 21,504,910.00

Above 5 years 19,040,849.00

Total 45,313,256.00


2.18 Financial risk management objectives and policies

The Company’s business activities expose it to a variety of fi nancial risks, namely primarily to fl uctuations in foreign currency exchange rates, liquidity and credit risk, which may adversely impact the fair value of its fi nancial instruments. The Company’s Board and senior management has overall responsibility for the establishment and oversight of the Company’s risk management. The Company’s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to refl ect changes in market conditions and the Company’s activities.

The Risk Management is done by the Company’s management that provides assurance that the Company’s fi nancial risk activities are governed by appropriate policies and procedures and that fi nancial risks are identifi ed, measured and managed in accordance with the Company’s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized below:-

a. Currency risk

The Company is subject to the risk that changes in foreign currency values impact the Company’s export of services. As at 31st Ashad, 2076, there is unhedged exposure to the Company on holding fi nancial assets (Bank balances and Trade receivables) other than in their functional currency. The Company is exposed to foreign exchange risk arising from primarily with respect to US Dollar. The aim of the Company’s approach to management of currency risk is to leave the Company with no material residual risk. This aim has been achieved in all years presented. Since, there is not signifi cant risk management has not entered into any forward contract.

The following table demonstrates the unhedged exposure in USD with corresponding equivalent NRs. as at 31st Ashad 2076:-

Particulars Currency Ashad 31, 2076

Cash and bank balance

NRs. 5,602,063

USD 51,226

Trade Receivables NRs. 8,463,890

USD 77,395

b. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in fi nancial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of fi nancial loss from defaults. The Company’s exposure and the credibility of its counterparties are continuously monitored. In addition, the Company is exposed to credit risk in relation to fi nancial guarantees given to banks provided by the Company. The Company’s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on. No amount has been recognised in the fi nancial position as fi nancial liabilities.

c. Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its fi nancial liabilities. The Company’s approach to managing liquidity is to ensure that it will have suffi cient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. A material and sustained shortfall in our cash fl ow could create potential business continuity risk.

The Company maintained a cautious funding strategy, with a positive cash balance throughout the year ended 31st Ashad, 2076 and 32nd Ashad, 2075. Cash fl ow from operating activities provides the funds to service the fi nancing of fi nancial liabilities on a day-to-day basis. The Company’s Finance department regularly monitors the cash position to ensure it has suffi cient cash on-going basis to meet operational needs. Any short term surplus cash generated by the operating entities, over and above the amount required for working capital management and other operational requirements, are retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits to optimize its cash returns on investments. The said investments are made in instruments with appropriate maturities or suffi cient liquidity to provide suffi cient


head-room as determined by the above-mentioned forecasts.

2.19 Capital Management

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity holders of the company. The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to the shareholders. The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.

The Company’s aim to translate profi table growth to superior cash generation through effi cient capital management. The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditor, and market confi dence and to sustain future development and growth of its business. The Company’s focus is on keeping strong total equity base to ensure independence, security, as well as a high fi nancial fl exibility for potential future borrowings, if required, without impacting the

risk profi le of the Company. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The management monitors the return on capital as well as the level of dividends to shareholders. The Company’s goal is to continue to be able to return excess liquidity to shareholders by continuing to distribute dividends in future periods.

No changes were made in the objectives, policies or processes for managing capital during the years ended on 31st Ashad 2076 and 32nd Ashad 2075.

2.20 Cross Border Transactions

There is no cross boarder transaction in the current year as well as previous year.

2.21 Staff Bonus

Staff Bonus is accounted for in accordance with the provisions of Bonus Act 2030.

2.22 Provision for Corporate Social Responsibilities (CSR)

CSR expenses is accounted as per Industrial Enterprises Act 2016 (2073 BS).

Section 48 of Industrial Enterprises Act 2016 (2073 BS) makes it mandatory to allocate 1% of the annual profi t to be utilized towards corporate social responsibility (the “CSR Requirement”).

Particulars31 Ashad 2076 32 Ashad 2075 HCE

ShareAssets Liabilities Assets Liabilities

HCE-ERMC JV 39,170,109 36,196,939 35,268,872 31,317,587

60%Net Worth 2,973,170 3,951,285

HCE Share 1,783,902 2,370,771

ERMC-HCE JV 14,898,793 12,864,068 3,920,478 2,433,372

40%Net Worth 2,034,725 1,487,106

HCE Share 813,890 594,842

ITECO-TMS-HCE JV 7,449,839 1,502,829 5,401,535 5,777,679

30%Net Worth 5,947,010 (376,144)

HCE Share 1,784,103 (112,843)

HCE-ITECO-TMS JV 5,743,582 5,684,025 3,358,441 4,758,523

40%Net Worth 59,556 (1,400,082)

HCE Share 23,822 (560,033)

HCE-BDO JV 762,400 695,013

60%Net Worth 67,387

HCE Share 40,432


HYDRO-CONSULT ENGINEERING LTD.Notes to the � nancial statements for � scal year 2074-75

Figures in NRs.

Note: 3

Property and equipment Vehicles Offi ce

Equipment Furniture

and Fixture Computers

Engineering Equipments

Total

Cost

Balance at 1 Shrawan 2074 5,740,393 2,017,491 3,730,433 3,831,593 155,997 5,475,908

Additions 2,932,792 1,642,539 - 1,240,642 75,000 5,890,973

Disposals (1,054,793) (8,697) - (17,996) - (1,081,486)

Balance at 32 Ashad 2075 7,618,392 3,651,333 3,730,433 5,054,239 230,997 20,285,396

Additions 356,825 1,262,935 1,717,150 1,867,973 164,000 5,368,884

Disposals (62,890) (138,750) (463,432) (665,072)

Balance at 31 Ashad 2076 7,975,217 4,851,379 5,308,833 6,458,781 394,997 24,989,208

Depreciation and impairment losses

Balance at 1 Shrawan 2074 1,231,468 603,393 722,437 1,407,317 27,096 3,991,710

Charge for the year 1,083,534 476,578 751,999 713,734 23,916 3,049,761

Disposals (453,052) (8,697) - (17,996) - (479,745)

Balance at 32 Ashad 2075 1,861,951 1,071,274 1,474,436 2,103,055 51,012 6,561,727

Charge for the year 1,183,736 786,946 580,465 791,882 36,853 3,379,882

Disposals (58,477) (125,908) (431,632) (616,017)

Balance at 31 Ashad 2076 3,045,687 1,799,743 1,928,993 2,463,304 87,864 9,325,591

Net book value

At 1 Shrawan 2074 4,508,925 1,414,098 3,007,997 2,424,277 128,902 11,484,198

At 32 Ashad 2075 5,756,441 2,580,059 2,255,998 2,951,184 179,986 13,723,669

At 31 Ashad 2076 4,929,530 3,051,636 3,379,841 3,995,476 307,133 15,663,616

a) The company does not have any capital commitment at the fi nancial year end.


HYDRO-CONSULT ENGINEERING LTD.Notes to the � nancial statements for � scal year 2074-75

Figures in NRs.

Note: 4

Intangible assets Computer Software Total

Balance at 1 Shrawan 2074 2,873,049 2,873,049

Additions - Externally acquired -

Balance at 32 Ashad 2075 2,873,049 2,873,049

Additions - Externally acquired - -

Balance at 31 Ashad 2076 2,873,049 2,873,049

Amortization and impairment losses

Balance at 1 Shrawan 2074 921,627 921,627

Charge for the year 487,855 487,855

Impairment loss

Balance at 32 Ashad 2075 1,409,482 1,409,482

Charge for the year 365,891 365,891

Impairment losses - -

Balance at 31 Ashad 2076 1,775,373 1,775,373

Net book value

At 1 Shrawan 2074 1,951,422 1,951,422

At 32 Ashad 2075 1,463,566 1,463,566

At 31 Ashad 2076 1,097,674 1,097,674


Figures in NRs.

Note no: 5

Trade receivables

ParticularsAs at 31 Ashad 2076 As at 32 Ashad 2075

Current Non-Current Current Non-Current

Unsecured, considered good

Sundry Debtors 75,621,265 54,573,561 -

Retention Money held by the Customers 3,119,846 2,579,946 2,629,712 948,819

78,741,111 2,579,946 57,203,273 948,819

Unsecured, considered doubtful

Less: Allowances for doubtful receivables (3,369,831) - (2,006,999) -

75,371,280 2,579,946 55,196,274 948,819

Sundry debtors includes amount receivable from Kenya Tea Development Ltd. amounting to Rs. 8.46 million which has remained outstanding for more than two years. Company considers this amount to be good and accordingly, impairment allowance is not provided.

Note no: 6

Other Financial Assets



Advance to employee 179,962 226,036 -

Trade and Security Deposit - 115,490 - 111,490

Accured Contract Revenue 7,643,454 - 9,259,368 -

Gratuity Fund Receivables 67,350 9,101 -

7,890,766 115,490 9,494,505 111,490

Note no: 7

Other current and non-current assets



Advance to Supplier/Contractor/Sub Contract 3,184,422 420,419 -

Deposit with Government authorities - 2,697,753 - 2,697,753

Prepayments 108,289 - 204,560 -

3,292,711 2,697,753 624,979 2,697,753

Note no: 8

Cash and cash equivalents

Particulars As at 31 Ashad 2076 As at 32 Ashad 2075Balance with Banks

In current account 27,898 540,591

In call account 16,764,641 25,700,997

In convertible currencies account 5,602,063 2,757,390

Cash on hand 4,591 6,365

Cheques on hand 6,034,197 3,370,142

28,433,390 32,375,485

Note no: 9

Bank balance other than cash and cash equivalents

Particulars As at 31 Ashad 2076 As at 32 Ashad 2075Earmarked balance with Banks

Margin money accounts 5,002,998 6,074,777

5,002,998 6,074,777

Note: This relates to margin amount frozen in company`s bank account, for advance payment guarantees issued which shall be settled in different dates within 28 March 2020. Detail of such gurantees are given in contingent liability note no. 28.


Figures in NRs.

Note no: 10Income Taxes

A. Tax expense recognized in the Statement of Profi t and LossYear ended

31 Ashad 2076 Year ended

32 Ashad 2075Current income tax charge 12,908,164 9,758,136 Adjustment for under provision in prior periods

Deferred tax credit/(charge)Origination and reversal of temporary differences

Adjustments/(credits) related to previous years - (net)Income tax expense reported in statement of Profi t or Loss 12,908,164 9,758,136

B. Tax expense recognized in Other comprehensive income Year ended


32 Ashad 2075 Deferred taxAdjustments/(credits) related to previous years - (net) - Income tax charged to OCI - - C. Current tax asset / (liability) -net: 31 Ashad 2076 32 Ashad 2075 Advance Income Tax 24,047,769 16,337,177 Less: Income Tax Liability (27,009,929) (9,758,136)Net Advance tax/(tax liability) (2,962,160) 6,579,041During the year, amount carried forward since previous years relating to advance tax withheld at Kenya amounting to Rs. 10,106,283 has been written off. The amount was being carried forward since previous year and company believes that the amount is not longer adjustable against income from Kenya on the grounds that the tax withheld at Kenya will always be higher than the amount to be paid as income tax for income source of Kenya.

Separate calculation of income tax liability of Income source from Nepal and from Pakistan has been done. For calculation of income tax related to income from Pakistan, direct cost as well as proportionate administrative cost has been claimed as expenses and income tax rate of 20% has been considered.

D. Reconciliation of tax liability on book profi t vis-à-vis actual tax liability Year ended


32 Ashad 2075 Accounting Profi t/ (Loss) before income tax 37,707,860 36,441,507 General tax rate 25.00% 25.00%Computed tax expense 9,426,965 9,110,377 Differences due to:Tax effect due to non taxable income (427,500) (495,386)Due to reduced tax rate on foreign income source (16,677)Due to difference in depreciation rate (28,995) (64,978)Effect due to additional deductible expenses (92,024)Effect due to non deductible expenses 4,046,395 1,208,123 Income tax expense charged to the statement of Profi t or Loss and OCI 12,908,164 9,758,136

E. The movement in deferred tax assets and liabilities during the year ended 31 Ashad, 2074 and 32 Ashad, 2075:

i. Movement during the year ended 31 Ashad 2076

“As at 1 Shrawan 2075”

Credit/(charge) in the Statement of Profi t

and Loss

Credit/(charge) in Other Comprehensive

Income

“As at 31 Ashad 2076”

Deferred tax assets/(liabilities)Provision for leave encashment 393,499 320,312 - 713,811 Provision for gratuity - - - - Corporate social responsibility 93,165 21,101 - 114,266 Property and equipment and intangible assets (345,730) (89,224) - (434,953)Provision for PLI 788,491 568,276 - 1,356,767

929,425 820,465 - 1,749,890

ii. Movement during the year ended 32 Ashad 2075

“As at 1 Shrawan 2074”

Credit/(charge) in the Statement of Profi t

and Loss

Credit/(charge) in Other Comprehensive

Income

“As at 32 Ashad 2075”

Deferred tax assets/(liabilities)Provision for leave encashment 354,140 39,360 - 393,499 Provision for gratuity 72,125 (72,125) - - Corporate social responsibility - 93,165 - 93,165 Property and equipment and intangible assets (280,752) (64,978) - (345,730)Provision for PLI 843,482 (54,991) - 788,491

988,994 (59,568) - 929,426


Figures in NRs.Note no: 11

Equity Share Capital

Particulars“As at 31 Ashad 2076” “As at 32 Ashad 2075”

No. of Shares Amount No. of Shares Amount

A. Equity Shares

Authorized

Equity Shares of NRs. 100 each 500,000 50,000,000 500,000 50,000,000

Issued


(1.5 Crores of Equity Shares out of 3 Crores)

Subscribed and Fully Paid


One of the shareholder of HCEL, People Energy and Environment Development Association (PEEDA), does not have the status of incorporated organization as required by Directive 6 of Company Directive, to be shareholder of company. Approval of OCR has been obtained vide decision dated 2074.01.20 for extension of time for two years. The process of transfer of shares is under progress.

B. Reconciliation of the number of shares outstanding at the beginning and end of the year

“As at 31 Ashad 2076” “As at 32 Ashad 2075”

No. of Shares No. of Shares

Balance as at the beginning of the year 147,231 147,231

Add: Issue of Bonus Share -

Balance as at the end of the year 147,231 147,231

C. Details of shareholding

Particulars “As at 31 Ashad 2076” “As at 32 Ashad 2075”

No. of Shares Share % No. of Shares Share %

Butwal Power Company Ltd 117,785 80% 117,785 80%

People Energy and Environment Development Agency (PEEDA) 29,446 20% 29,446 20%

Total 147,231 100% 147,231 100%

D. Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of NRs. 100 per share. Every member holding equity shares therein shall have voting rights in proportion to the member’s share of the paid up equity share capital. The Company declares and pays dividend in Nepalese rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the equity shareholders.

E. Dividend Paid and Proposed:

Company paid dividend of Rs. 42.11 out of profi t and retained earning for fi scal year 2074-75. The Board of Directors has proposed dividend of Rs. 45 per share for the year 2075-76.

Declared dividends and proposed dividends “As at 31 Ashad 2076” “As at 32 Ashad 2075”

Dividend approved

Rs. 42.11 per share for 2074075 - 6,199,897

“Proposed for approval at the annual general meeting (not recognized as a liability as at balance sheet date): “

For 2075-76: Rs. 45 per share (2074-75: Rs. 42.11 per share) 6,625,386 6,199,897

Note no: 12

Reserves

Retained Earnings Total

Balance at 1 Shrawan 2074 64,978,442 64,978,442


Other comprehensive income -


Bonus Share Issued -

Balance at 32 Ashad 2075 87,727,747 87,727,747


Other comprehensive income - -


Bonus Share Issued - -

Balance at 31 Ashad 2076 107,148,011 107,148,011


Figures in NRs.

Note no: 13

Provisions

ParticularsAs at 31 Ashad 2076 As at 32 Ashad, 2075


Provision for Gratuity - - - -

Provision for Leave money 2,379,370 605,404 1,064,359 509,638

Provision for Performance Link Incentive 4,522,555 3,153,962 -

6,901,925 605,404 4,218,321 509,638

Note no: 14

Other current and non-current liabilities



Advance from Customers 6,267,307 - 6,008,256 1,492,873

VAT Payable 7,342,789 - 6,162,248 -

Statutory dues 2,001,456 - 1,657,870 -

15,611,552 - 13,828,374 1,492,873

Note no: 15

Trade Payables



Sundry creditor 13,608,820 2,767,641 -

13,608,820 - 2,767,641 -

Note no: 16

Other fi nancial liabilities



Retention money Payable 353,750 - 624,500 -

Advance payable to JV 1,443,040 - 2,646,075 -

Bonus Payable 3,770,827 - 3,686,134 -

Employee related accural 1,026,738 - 3,002,216 -

Corporate Social Responsibility 380,887 - 368,096

Other payables 5,546,285 - 4,854,110 -

12,521,527 - 15,181,131 -


Figures in NRs.

Note no: 17Revenue from operations:

2075-76 2074-75Consultancy services 212,262,310 168,064,178 Add: Income/(Expenses) recognized due to stage of completion (1,615,914) 995,483

210,646,396 169,059,661 Note no: 18Cost of revenue

2075-76 2074-75Engineering and consultancy expenses 28,662,059 32,584,557 Salaries and other employee cost 93,652,255 66,452,660 Staff bonus 3,411,602 3,280,713 Contribution towards provident and gratuity 4,929,341 1,391,215 Field expenses 6,206,287 6,987,025 Vehicle operation 1,421,292 1,098,805

138,282,837 111,794,975 Note no: 19Other income

2075-76 2074-75Foreign currency exchange gain - 656,379 Gain (Loss) on sale of assets - - Dividend income 1,792,898 - Miscellaneous income 1,378,246 2,973,337

3,171,144 3,629,716 Note no: 20Administrative and other operating expenses

2075-76 2074-75Salaries and other employee cost 8,677,031 7,362,422 Contribution towards provident and gratuity 559,762 291,941 Staff bonus 359,226 363,477 Staff welfare 2,289,438 977,330 Advertisement and business promotion 431,974 149,425 AGM and board expenses 616,876 709,480 Audit fee & expenses 265,779 189,235 Communication expenses 528,452 441,096 Gift and donation 20,375 15,397 Hospitality and refreshment 113,230 73,882 Insurance 333,904 323,012 Legal and professional expenses 384,000 205,850 Offi ce running cost 1,721,915 1,367,903 Printing and stationery 2,714,602 1,481,964 Repair and maintenance 205,315 65,965 Training and development 701,323 589,909 Travelling expenses 471,064 465,383 Support staff expenses 1,000,946 794,077 Foreign exchange loss 69,581 - Miscellaneous expenses 172,491 104,940 Rent 4,531,929 4,375,419 Depreciation & amortisation 3,745,773 3,537,616 Assets written off 49,055 - Bad Debts 11,469,115 501,750 Previous Year Tax Expenses - 2,002,582 CSR expenses 380,887 368,096

41,814,044 26,758,151 Note no: 21Finance income

2075-76 2074-75Interest income 4,075,726 2,363,314

4,075,726 2,363,314


Note no: 22

Finance cost

2075-76 2074-75

Bank Charges & Commission 88,525 58,058

88,525 58,058

Note no: 23

Earnings per share

2075-76 2074-75


Weighted average number of equity shares outstanding 147,231 147,231

Earnings Per Share (NRs.) - Basic (Face value of NRs. 100 per share) 174.01 180.83

Earnings Per Share (NRs.) - (Face value of NRs. 100 per share) 174.01 180.83

Add: Weighted average number of potential equity shares - -

Weighted average number of Equity shares (including dilutive shares) outstanding 147,231 147,231

Earnings Per Share (NRs.) - Diluted (Face value of NRs. 100 per share) 174.01 180.83

Note no: 24

Employee benefi ts expenses included in the statement of profi t or loss:

Particulars 2075-76 2074-75

Included in Cost of Sales 101,993,198 71,124,588

Administrative and other operating expenses 11,885,456 8,995,170

113,878,654 80,119,758

Note no: 25

Disclosure in terms of NAS 11 - Construction contracts

Particulars As at 31 Ashad 2076

Contract revenue recognized during the year 210,646,396

Amount of customer advances outstanding 6,267,307

Retention money due from customers for contracts in progress 5,699,792

Gross amount due from customers for contract works as an asset (unbilled portion) (net of provision for doubtful debt receivable)

7,643,454

Gross amount due to customers for contract works as a liability -

Revenue recognised on percentage completion basis

As described in Note 2.10 (i), revenue on ongoing contracts are recognized on percentage completion basis.

Cumulative amount not yet invoiced to customer 7,643,454

Less: amount already accounted in previous year 9,259,368

Revenue/(expenses) recognized on current year (1,615,914)


Note no: 26

Financial Instruments: Classifi cations and fair value measurements

“Fair value of fi nancial assets and fi nancial liabilities that are not measured at fair value (but fair value disclosures are required)Except as detailed in the following table, the management consider that the carrying amounts of fi nancial assets and fi nancial liabilities recognized in the fi nancial statements approximate their fair values.”

As at 31 Ashad 2076 Carrying value Level 1 Level 2 Level 3

Financial Assets

Financial assets carried at amortized cost

Trade receivables 77,951,226 - - 77,951,226

Cash and cash equivalents 28,433,390 - - 28,433,390

Bank balance other than cash and cash equivalents 5,002,998 - - 5,002,998

Other fi nancial assets 8,006,256 - - 8,006,256

Total Financial Assets 119,393,870 - - 119,393,870


Financial liabilities carried at amortized cost:

Trade payables 13,608,820 - - 13,608,820

Other fi nancial liabilities 12,521,527 - - 12,521,527

Total Financial Liabilities 26,130,348 - - 26,130,348

As at 32 Ashad 2075 Carrying value Level 1 Level 2 Level 3

Financial Assets

Financial assets carried at amortized cost

Trade receivables 56,145,093 - - 56,145,093

Cash and cash equivalents 32,375,485 - - 32,375,485

Bank balance other than cash and cash equivalents 6,074,777 - - 6,074,777

Other fi nancial assets 1,492,873 - - 1,492,873

Total Financial Assets 96,088,228 - - 96,088,228


Financial liabilities carried at amortized cost:

Trade payables 2,767,641 - - 2,767,641

Other fi nancial liabilities 15,181,131 - - 15,181,131

Total Financial Liabilities 17,948,772 - - 17,948,772


Note no: 27

Related party disclosures

(a) Relationship

The company is controlled by Butwal Power Company Limited which owns 80% of the company’s shares.

Relationship Related Parties

Holding Company Butwal Power Company Limited

Subsidiaries of Holding Company

BPC Services Limited

Nepal Hydro & Electric Limited

Nyadi Hydropower Limited

Khudi Hydropower Limited

(b) Those charged with governance

Those charged with governance of the Hydro-consult Engineering Limited include members of Board of directors namely:

i) Mr. Uttar Kumar Shrestha Chairperson

ii) Mr. Pratik Man Singh Pradhan Director

iii) Mr. Radheshyam Shrestha Director

iv) Mr. Ratna Sambhav Shakya Alt. Director (BPC)

v) Mr. Murali Prasad Sharma Director

vi) Mr. Shiva Kumar Sharma Alt. Director (PEEDA)

Mr. Hari Budhathoki from H. B. Law Associates serves as Secretary to the Board in addition to the responsibility of Company Secretary.

The following provides expenses incurred for those charged with governance of BPC.

Nature of Expense Current year Previous year

BoD Meeting Allowances 60,000 108,000

(c) Transactions with key management personnel

Key Management personnel includes:

i) Mr. Manohar Shrestha CEO

Key Management Personnel compensation :

Particulars Current year Previous Year

Salary and Allowances 4,665,125 4,389,604

Note: - The amounts disclosed in the table includes current year salary and allowances and facilities as well as performance allowance and bonus of previous year.

(d) Other related party transactions

Name of the related party Nature of transaction

Transaction O/s Receivable/(Payable)

Current Year Previous Year Current Year Previous Year


Sales invoices 8,731,446 4,930,276 3,563,534 468,995

Expense for Rent and Electricity 4,965,943 4,626,052 - -

Retention Receivable 465,995 468,995

Khudi Hydropower Ltd. Sales invoices 782,500 242,725 490,042 -

Nyadi Hydropower Ltd.

Sales invoices 25,573,937 22,992,620 7,040,929 3,690,359

Advance received against consultancy service

(1,029,530) (1,930,153)


Note no: 28

Contingent Liability

a. Guarantees

Bank Name Purpose Amount Expiry Date

Hydro consult/ITECO/TMS JV

Advance Payment Guarantee for detail engennering design of Sunsari Morang Irrigation Projects headworks, Department of Irrigation (Guarantee on behalf of JV)

1,848,420 4 December, 2019

Sanima Bank Ltd.Advance Payment Guarantee for Nyadi Hydropower Ltd.

1,538,578 28 March, 2020

ITECO/TMS/Hydro consult JV

Advance Payment Guarantee for Irrigation Feasibility Study and Construction of Kaligandaki Tinau Diversion Project (Guarantee on belhalf of JV)

1,616,000 28 September, 2018

b. Income tax matters

The inland revenue department has opened self-assessment returns fi led by the Company for the fi nancial years 2069-70 and demanded additional tax of NRs. 2,609,716.72. The Company has contested the demands as not payable and fi led application for administrative review. The Company has deposited amount of NRs. 2,697,753 against the appeal with the department. The company has created contingent liability of NRs. 2,697,753 against this matter.

Company has carried forward balance of advance tax paid in Kenya amounting to NRs. 10,106,283 (cumulative tax up to 2072-73). As the matter is similar to that the company is in administrative review for tax reassessment of 2069/70, the treatment of this advance tax shall be fi nalized after obtaining decision on the administrative review of fi scal year 2069-70.


SN Parameters UOM FY 2075/76 FY 2074/75 FY 2073/74

Liquidity Ratios

1 Current Ratio x 2.91 3.59 3.29

II Profitability Ratios

Profitability Ratios related to Sales

Profit Margins

1 Gross Profit Margin % 35% 35% 24%

2 Operating Profit Margin % 17% 22% 14%

3 Net Profit Margin % 12% 15% 11%

Expenses

4 Operating Expenses Ratio % 78% 83% 89%

5 Administrative Expenses Ratio % 22% 17% 11%

Investments Ratio

6 Return on Assets % 31% 36% 22%

7 Return on Capital Employed % 31% 36% 22%

8 Return on Equity % 21% 26% 16%

9 Book Value Per Share NRs 827.75 695.85 541.34

10 Earnings Per Share NRs 174.01 180.83 87.12

11 P/E Ratio x NA

III Assets Efficiency Ratios

12 Total Assets Turnover Ratio 1.75 1.69 1.51

13 Working Capital Turnover Ratio 2.07 2.00 1.85

IV Capital Structure

14 Debt-Equity Ratio x 0% 0% 0%

15 Equity to Assets Ratio x 100% 100% 100%

HYDRO-CONSULT ENGINEERING LTD.Financial Ratio


Particulars F.Y 2075/76 NPR F.Y 2074/75 NPR F.Y 2073/74 NPR F.Y 2072/73 NPR F.Y 2071/72 NPR

1. Equity and Liabilities 1 Shareholder’s Fund

Share capital 14,723,100 14,723,100 14,723,100 11,778,500 11,778,500 Reserve and Surplus 107,148,011 87,727,746 64,978,442 58,659,710 45,612,993 Total Shareholder’s Fund 121,871,111 102,450,846 79,701,542 70,438,210 57,391,493

2 Current Liabilities and Provisions Creditors and Accounts Payable 19,933,834 10,845,266 12,077,409 11,438,655 8,391,565 Advance and Deposit received 7,710,347 8,654,331 10,321,232 3,955,771 2,566,605 Provision for Bonus 3,770,828 3,644,190 1,737,817 2,063,339 1,808,751 Provision for Tax 12,908,164 9,758,136 4,335,464 5,484,765 3,957,101 Other Provisions 7,888,216 5,096,055 5,078,983 7,368,233 3,693,513 Total Current Liabilities and Provisions 52,211,389 37,997,978 33,550,905 30,310,763 20,417,535 TOTAL 174,082,500 140,448,824 113,252,447 100,748,973 77,809,028

II. Assets 1 Non-Current Assets 1.1 Property, Plant & Equipments

Gross Block 24,989,208 20,285,396 15,475,908 13,086,001 17,473,193 Less: Depreciation reserve (9,325,591) (6,561,727) (3,991,710) (8,668,064) (11,652,512) Net Block 15,663,617 13,723,669 11,484,198 4,417,937 5,820,681

1.2 Intangible Assets Gross Block 2,873,048 2,873,048 2,873,048 3,570,856 3,570,856 Less: Depreciation reserve (1,775,372) (1,409,483) (921,627) (2,147,336) (1,672,831) Net Block 1,097,676 1,463,565 1,951,421 1,423,520 1,898,025

2 Deferred Tax Assets 1,749,890 929,426 988,994 997,001 142,956 3 Current Assets:

Debtors and Accounts Receivable 116,741,740 82,123,840 55,404,715 23,756,094 26,188,595 Cash in hand and at Bank 33,436,388 38,450,262 40,431,738 42,719,263 28,836,687 Advance and Deposit Paid 5,393,189 3,758,062 2,991,381 27,435,158 14,922,084 Total Current Assets 155,571,317 124,332,164 98,827,834 93,910,515 69,947,366 TOTAL 174,082,500 140,448,824 113,252,447 100,748,973 77,809,028

Balance Sheet

Particulars F.Y 2075/76 NPR F.Y 2074/75 NPR F.Y 2073/74 NPR F.Y 2072/73 NPR F.Y 2071/72 NPR

OPERATING INCOMEConsultancy Services 210,646,396 169,059,661 119,601,558 105,458,610 91,630,441 Other Operating Income 3,171,144 2,973,337 946,371 1,711,529 840,563 Foreign Currency Exchange Gain 656,379 100,254 2,038,882 468,257 Total Operating Income 213,817,540 172,689,377 120,648,183 109,209,021 92,939,261 OPERATING EXPENSEDirect Cost 138,282,837 111,794,975 84,607,937 70,747,274 59,508,131 Total Operating Expense 138,282,837 111,794,975 84,607,937 70,747,274 59,508,131 Gross Operating Profi t 75,534,703 60,894,402 36,040,246 38,461,747 33,431,130 Administrative and Other ExpensesAdministrative Expenses 22,847,272 19,132,653 14,429,601 9,924,451 10,569,531 Depreciation & assets written off 3,745,773 3,537,616 4,089,846 2,055,560 1,997,066 Loss on Investment on JV 227,034 Bad Debts Written off 10,106,283 1,209,513 Provision for Bad Debts 1,362,832 501,750 117,194 2,868,082 1,298,130 Foreign Currency Exchange loss 69,581 Total Administrative and Other Expenses 38,131,741 23,172,019 18,636,641 16,284,640 13,864,727 NON-OPERATING INCOME: Interest Income 4,075,726 2,363,314 1,712,387 462,454 329,858 Gain/(Loss) on sold of Assets 57,164 Total Non-Operating Income 4,075,726 2,363,314 1,712,387 519,618 329,858 PROFIT BEFORE BONUS AND TAX 41,478,688 40,085,697 19,115,992 22,696,725 19,896,261 Provision for Employee Bonus 3,770,828 3,644,190 1,737,817 2,063,339 1,808,751 PROFIT BEFORE TAX 37,707,860 36,441,507 17,378,175 20,633,386 18,087,510 Provision for Corporate Tax 12,908,164 9,758,136 4,335,464 5,484,765 3,957,101 Prior Year Expenses (11,324) (147,870)Deferred Tax Income (820,465) 59,566 216,294 854,045 (191,841)Net Profi t for Appropriation 25,620,161 26,623,805 12,826,417 15,991,342 13,790,698

Income Statement

HYDRO-CONSULT ENGINEERING LTD.Five Years Summary of Financial Statement

111 Annual Report 2019/20

We are deeply grieved by the untimely demise of our beloved Colleague Senior Manager Mr. Basanta Bagale

on January 07, 2019.

You can never be forgotten Mr. Bagale and no words could express what we truely feel. You were a special person, devoted team

member and a true friend than anything else. You will always remain in our heart though your

physical body has left this world.

Hydro-Consult Engineering Family

LATE BASANTA BAGALEMay 17, 1973 - January 07, 2019

HC

E F

AM

ILY

Hydro-Consult Engineering Ltd.GPO Box: 14408 Kathmandu, NepalGangadevi Marg, Buddha NagarTel.: +977 - 1 - 4782507Fax: +977 - 1 - 4785920Email: [email protected]: hcel.com.np

Mistri Khola HEP (42 MW)