Nepal - Marsyangdi Hydroelectric Power Project

Document of The World Bank FOR OFFICIAL USE ONLY FILE UMP Report No. P-3795-NE] REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EKECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 100.6 MILLION TO THE KINGDOM OF NEPAL FOR A MARSYANGDI HYDROELECTRIC POWER PROJECT May 3, 1984 This document has a restricted distribution and may be used by recipients only in the perfonnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  t CURRENCY EQUIVAL.ENT NRe 1.0 = US$0.0625 US$1.0 = NRs 16.0 ABBREVIATIONS AND ACRONYMS ED - Electricity Department HMG - His Majesty's Government KfW - Kreditanstalt fur Wiederaufbau of the Federal Republic of Germany LI - Lahmeyer International MRDB - Marsyangdi Hydroelectric Development Board NEA - Nepal Electricity Authority NEC - Nepal Electricity Corporation SHDB - Small Hydroelectric Development Board SMEC - Snowy Mountains Engineering Corporation WEC - Water and Energy Commission WEIGHTS AND MEASURES kV - kilovolts kWh - kilowatt hours m - meters MW - megawatts FISCAL YEAR July 16 - July 15  FOR OFFICIAL USE ONLY NEPAL MARSYANGDI HYDROELECTRIC POWER PROJECT Credit and Proiect Summary Borrower: Kingdom of Nepal Beneficiary: Nepal Electricity Corporation Amount: SDR 100.6 million (US$107.0 million equivalent) Terms: Standard Terms to Beneficiary: 30 years with interest at 12 percent per annum Project The project seeks to meet the forecasted demand for Description: electricity in Nepal for the medium term and to strengthen the Borrower's power sector. This would be a run-of-river hydroelectric power project, with an installed capacity of 69 MW, located on the Marsyangdi River. Major project components include diversion works and diversion weir, headrace and tailrace tunnels, powerhouse, transmission lines, substations and equipment. The project also provides for consulting engineers, technical assistance and training. A primary benefit would be derived from the generation of additional electricity for industrial, commercial and domestic consumption, and for irrigation purposes. Benefit would also be received through improvement of the distribution system, enhancement of maintenance capacity and the training of manpower. Some risk relates to possible deficient project design and construction, poor management and cost overruns. Appointment of a panel of experts to review design and construction, adequate provision for supervision in close cooperation with the consulting engineer, and assignment of a claims advisor should help minimize these risks. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Costs: -----US$ millions----- Item Foreign Local Total 1. Preliminary Cost 2.5 2.9 5.4 2. Administrative Expenditure 0.5 2.7 3.2 3. Civil Works (Lot I) 45.0 13.6 58.6 4. Civil Works (Lot II) 73.7 25.0 98.7 5. Equipment 40.8 6.9 47.7 6. Substations and Local v Distribution System 8.4 2.2 10.6 7. Transmission Lines 5.5 2.8 8.3 8. Consulting Engineer 7.5 - 7.5 9. Technical Assistance 4.1 - 4.1 Total Base Costs 188.0 56.1 244.1 Physical Contingencies 25.8 7.8 33.6 Price Contingencies 34.6 11.0 45.6 TOTAL 248.4 74.9 323.3aj Financing Plan: