Annual Report 2018 - hcel.com.np · Project Overview of FY 2074/75 33 Completed Projects of Hydro-Consult Engineering Limited 66 Auditors Report 72 Financial Ratio 98 Ratio Analysis

Annual Report 2017/18 1

Annual Report

2018

Hydro-Consult Engineering Limited2

CONTENTSCompany Profile 1Financial Highlights 3Chairman's Message 4Location of International Projects 6Location of National Projects 7Report of Board of Directors 8CEO's Perspectives 14Corporate Governance Report 16Board Members' Brief Resume 20Key Staff Brief Resume 22Financial Performance of FY 2074/75 32Project Overview of FY 2074/75 33Completed Projects of Hydro-Consult Engineering Limited 66Auditors Report 72Financial Ratio 98Ratio Analysis 99

Cover photo: Mistri Khola HEP

Cover photo: Solu Khola HEP


Hydro-Consult Engineering Limited (HCE) provides consultancy services in water resource based infrastructure development. We work with water, land and people while respecting the local socio-ecological systems. We investigate, design and assist to develop hydropower projects in Nepal and abroad. Relying on our deeply integrated knowledge in geology, river characteristics, construction industry environmental and socio-economic situation in Nepal; we aim to produce appropriate design and development solutions to our clients. We offer our services mainly in hydropower along with water supply, irrigation, and transportation sectors as well.

HCE has been carrying out consulting and engineering business of Butwal Power Company (BPC) since 1966. In 1986, BPC established BPC Hydroconsult as a firm 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 firm 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 first engineering consulting firm 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. Our pursuit

for competitive excellence begins and ends with our commitment to excel in our services through highest level of quality and customer satisfaction.

HCE has collaborations with International consulting firms and has worked with Mott Macdonald (UK), BPR (Canada), Hydro Tasmania (Australia), SWECO (Norway), Multiconsult (Norway), Fichtner GmbH (Germany), Bernard Ingenieure (Austria) and Lahmeyer (Germany) 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 Bank, IFC, NORAD, USAID, NEDA, CIDA etc.

HCE has a standard office set up in Kathmandu with modern updated software packages and communication systems and currently operates from its Head office at Gangadevi Marg, Buddhanagar, Kathmandu. In addition, HCE also has a satellite office in Kathmandu University (KU) complex, Dhulikhel to work in collabaration with KU for different porjects. At present, HCE is operating its business in Nepal, Pakistan and Kenya.

Com

pany

Pro

fileCorporate Information:

Name: Hydro-Consult Engineering LimitedRegistration No: 97410Corporate 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, KathmanduVAT No: 500012033Statutory Auditor: M/S Prabin Joshi & Co, Chartered Accountants

1


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

Vision

Mission

Objective

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

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

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

3. Expand the services and penetrate into new market.4. Optimum utilization of available resources.5. Develop and enhance professional skills and

knowledge.6. Enrich the value of stakeholders.


Fina

ncia

l Hig

hlig

hts

Operating Income (NPR)FY 2070/71 FY 2070/71FY 2071/72 FY 2071/72FY 2072/73 FY 2072/73FY 2073/74 FY 2073/74FY 2074/75 FY 2074/75

Gross Operating Profit

82,2

44,0

88

32,7

75,7

47

92,9

39,2

61

33,4

31,1

30

109,

209,

021

38,4

61,7

47

120,

662,

166

28,7

71,0

09

172,

689,

377

60,8

94,4

02

Net Worth (NPR)FY 2070/71 FY 2070/71FY 2071/72 FY 2071/72FY 2072/73 FY 2072/73FY 2073/74 FY 2073/74FY 2074/75 FY 2074/75

Quick Assets (NPR)

46,6

34,7

90

48,5

99,4

56

57,3

91,4

93

55,0

25,2

82

70,4

38,2

10

66,4

75,3

57

79,7

01,5

42

95,8

36,4

53

102,

450,

846

120,

574,

102

Book Value & Earning Per Share (NPR)Book Value per Share Earning per Share

FY 2070/71 FY 2070/71FY 2071/72 FY 2071/72FY 2072/73 FY 2072/73FY 2073/74 FY 2073/74FY 2074/75 FY 2074/75

Current Ratio

395

.93

98.2

9

487.

2611

7.08

598.

0213

5.77

541.

3487

.12

695.

8518

0.83

2.83

3.43

3.10

3.29

3.59

Book Value per Share Earning per ShareOperating & Administration Expenses RatioFY 2070/71 FY 2071/72 FY 2072/73 FY 2073/74 FY 2074/75

75%

25%

81%

19%

81%

19%

89%

11%

83%

17%



Recent years’ measured development in the energy sector has made the access to clean energy a key priority of the Government of Nepal. Therefore, development of hydropower and its related infrastructure is imperative to gain momentum for nation building through country’s own resources. The Government has also made hydropower development the National Agenda for the coming decade that has opened up opportunities for public and private investments. In addition, recent positive developments between India and Nepal for cross border trade of electricity will further enhance the hydropower development opportunities in Nepal. Banking on its inherent skills and understanding of the hydropower business of Nepal, Hydro-Consult Engineering Limited (HCE) is in unique position to seize these opportunities. These developments prove a positive motion for the Company’s mission for the improvement of the national energy sector.

HCE, since its establishment, is transforming itself in order to be the one stop solution to every aspect of the hydropower industry in national and international front. The Company has striven to always do better and push its project executions to greater heights for

its Clients. The completion of projects in Kenya and Pakistan in the recent past has strengthened the belief that the Company can expand internationally as well. The on-going projects in Pakistan has further enhanced the international footprint of the Company. The transformation journey of the Company for global quality and cost effective design solutions will continue to build from its achievements in national and international market. The Company will make every effort to create examples from its project executions and will carry on expanding by adding new international and national partners to its business.

Financially, the Company had a historic high achievement in F/Y 2074-75 and a strong year-end, and it is able to increase its revenue significantly. These results, together with the new strategic direction and increasing demand for Company’s design solutions form the foundation for continued profitable growth in the coming year as well.

We want to thank our customers, partners and shareholders for their continued trust. And we want to thank our management and employees for their commitment, energy and irrepressible drive to always improve our capability.

CHAIRMAN ’SMESSAGE

Uttar Kumar ShresthaChairman


1. K

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(4

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27

28

29

30

31

32

33


Dear Shareholders,

Your Board has pleasure in presenting the annual report and the audited statements of accounts of the company for the year ending on July 16, 2018.

Company PerformanceThe overall performance of the Company is satisfactory.Hydro-Consult Engineering Ltd (HCE) continued its engineering and environmental consultancy business by expanding its clientele base in the national and international market in FY 2074/75. It has been an exciting year, influenced by the demand from the clients for our engineeringsolutions, but there has also been an increase in the competition.

The Company completed Detail Engineering Design

and Environmental Update of 30.3 MW Lower Hongu Khola and 21.4 MW InkhuKhola Small Hydropower Project; and Pre-Feasibility and Environmental Baseline Study of 97.7 MW Upper Jhimruk Storage Project for Department of Electricity Development (DOED). The Company also completed the study on Sediment Management in Run-of-River Hydropower Projects in Nepal for Water and Energy Commission Secretariat (WECS). Similarly, Detail Design of 48.8 MW Khimti-2, 30 MW Khani Khola, 86 MW Solu Khola (Dudhkoshi) HP; Due Diligence Appraisal of 73 MW Middle Tamor, 43 MW Upper Nyasim, 40 MW Super Nyadi and 14 MW Upper Mailung HP; and Interim Payment Certificate (IPC) Verification of 14.9 MW Hewa Khola and 7.1 MW Mai Cascade HP are the major projects that are completed for the Independent Power Producers in the recent time.

Report ofBoard ofDirectors

Factory acceptance test of turbine NOZZEL


Presently, in international front, the Company is engaged in the Feasibility Study of 446 MW Kari Muskhur and 110 MW Gabral-Kalam Hydropower Projects; and Construction Supervision and Project Management of 35MW Nagdar Hydel Power Project in Pakistan. For Nepal Government, the Company is carrying out the Detailed Feasibility Study of 136.3 MW Kaligandaki Tinau Multipurpose Project and Detailed Investigation and Engineering Design of Sunsari Morang Irrigation Project (SMIP) Headworks for the Department of Irrigation (DOI). Similarly, the Company is involved in Detail Design of 26 MW Siwa Khola and 11 MW Budhi Ganga SHPs; Feasibility and EIA Study of 41 MW Sankhuwa Khola and 40 MW Sankhuwa Khola – 1 HPs; and Feasibility and IEE studies of 30 MW Kwadi Khola, 4.23 MW Bheri Khola and 4.1 MW Nyauri Gad HPs for the DOED. The Company is also engaged in Detail Design and Environmental Update of 99 MW Tamakoshi V HEP for the Nepal Electricity Authority.

Likewise, Construction Supervision of 86 MW Solu Khola (Dudhkoshi), 42 MW Mistri Khola, 30 MW Nyadi and 14.5 MW Ghar Khola HP; Detailed Design of 62 MW Bhotekoshi V, 55 MW Likhu -2 HPs and 8.5 MW Chino Khola HP; Feasibility and EIA Study of 160 MW Mugu Karnali HP; Feasibility Update of 135 MW Manang Marsyangdi HP; and IPC verification of 27 MW Dordi Khola, 23.5 MW Solu, 21.6 MW Lower Hewa, 12 MW Uppallo Khimti and 7 MW Upper Khimti HPs are some of the major projects that are being studied for the private sector.

Financial Performance The overall financial performance of the company is satisfactory in the fiscal year 2074/75. The revenue, corresponding cost of sales and the profit have increased compared to the previous fiscal year. The revenue from the consultancy business is NPR 169.06 million and the cost of sales is NPR 111.79 million. The net profit before and after the tax is NPR 36.44 million and NPR 26.62 million respectively, which is an increase by110% and 108% respectively compared to the previous fiscal year. The Company distributed 26.32% cash dividend amounting to NPR 3.875 million from the net profit for F/Y 2073/074 as per the resolution passed by 6th Annual General Meeting of the Company. The earnings per share stands at NPR 180.83 at the end of F/Y 2074/075. The shareholders’ fund and net worth of the Company have increased by 28.54% from NPR 79.70 million to NPR 102.45 million.Total assets of the Company has increased by 24.01% and reached to NPR 140.45 million. The current ratio was maintained at 3.59: 1as on 32 Ashad 2075.

Human ResourceThe Company has continuously maintained its cross-functional team of consultants, professionals, technicians and administrators, who have created a sustainable value to the Client, Society and the Company. There is a high level of competition for talent, particularly in the field of hydropower. The Company has made targeted efforts to strengthen its brand, partly by collaborating with interesting clients on challenging

8,18%

10,23%

0,0% 10,23%

11,25%

5,11%

Summary of Current Projoects

Feasibility StudyDetailed Design & Tender Document PreparationContruction Supervision & ManagementEnvironmental StudiesDue Diligence & Bill VerificationsOthers


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 multi-day resident workshop yearly for the employees and also supports its staff for regular extra-curricular and recreational activities. The Company has over 150 professionals working in its head office, satellite office and project sites.

Board of DirectorsThereis no change in the Board of Directors of the Company in this fiscal year. The existing members of the Board of Directors are as follows:

1. Mr Uttar Kumar Shrestha Chairman2. Mr Pratik Man Singh Pradhan Director3. Mr Radheshyam Shrestha Director4. Mr Murali Prasad Sharma Director5. Mr RatnaSambhavaShakya Alt. Director6. Mr Shiva Kumar Sharma Alt. Director

The Directors possess broad range of skills, qualifications and experience. The Board meets regularly and had nine meetings in the FY 2074/075.

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 financial performance of the Company’s activities and the Company’s system of internal control.

Audit CommitteeThe Board has set up the Audit Committee pursuant to the requirement of the Company Act, 2006. The Board has also entrusted the responsibilityof 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 financial governance in the Company. The Audit Committee had three meetings in the F/Y 2074/075. The existing members of the Audit Committee are:

1. Mr Radheshyam Shrestha Chairman2. Mr RatnaSambhavaShakya Member3. Mr Murali Prasad Sharma Member

Corporate GovernanceThe Companyis committed to build and maintain a corporate governance framework that creates an efficient and disciplined operating environment for its Board and the employees, generates shareholder value and aims to

ensure the long-term success of the Company. The Companyensures 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 MeasuresDespite huge hydropower potential in the Country, the associated risks and the challenges are creating hurdles to exploit the opportunities and smoothly operate the consultancy business in the hydropower

sector. The projects and their progress are hindered due to the poor governance and lack of inter-governmental


agency co-ordination, prolonged administrative procedures for clearances and a long list of inordinate local demands. 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 the hydropower consulting firms have also affected the Company’s human resource base. These issues have limited the business opportunities for the Company in the long run. In this scenario, one of the challenges is to attract and retain the best employees.

However, being driven by the increased capacity needs for energy, the national hydropower market is growing. The growing demand of energy in present federal structure of Nepal requires increased capacity in terms of energy, transport and water supply. The government is concerned to generate more energy for self-reliance and has consequently announced a decade-long plan for power generation. The construction of river basin transmission line corridors for evacuating the power has also gathered momentum. To combat the competition for best talents, the Company has made targeted efforts to strengthen its brand.The Company holds a prestigious history of executing hydropower projects with complete experience in engineering design, and site supervision and management including safeguard solutions. Therefore, the Company is confident that its expertise in design solutions, combined with its in-depth specialist knowledge of hydropower development, will enable it to respond to these demands with robust cross-functional solutions to mitigate its business risks.

In addition, the Company is establishing its footprint 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 ClientsThe 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 confidence, 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 find a way to get it done.

Statutory AuditM/S Prabin Joshi & Co., Chartered Accountants was appointed as statutory auditor for F/Y 2074/075. The auditor has issued unqualified report on the financial statements of the Company for the fiscal year 2074/75.

Health and SafetyThe well-being of the 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 fire and other general insurance policies have also been taken for the safety of the office premises and other assets.

Corporate Social Responsibility and Outreach ActivitiesThe Company strives to ensure that its activities cause no lasting harm to the environment and support the sustainable development of communities where the Company works. The Company creates sustainable engineering and design solutions as the core of its offering. The Company helps 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 adheres to the principles of human rights, labor law, environment and anti-corruption, which form the foundation for its positions in the corporate social responsibility.

Future Prospect/OutlookHistorically, the Company has developed well but owing to the trends in the market and the increase in demands from its clients, it is time for a new focus. The journey that is largely still ahead is to add value in its services by offering more projects, solutions, concepts and products while developing and expanding the business.

The Company has carried out and will continue to carry out new initiatives to strengthen its competitiveness. The Company is growing and strengthening its position in the hydropower markets nationally and internationally. The organizational structure has been realigned to make the Company even more distinct and fleet-footed, and to form the foundation for business decisions to be taken at the right level as well as to stimulate more business growth. The Company has successfully completed the construction supervision works of Gura Hydropower Project in Kenya and is engaged in three projects for feasibility study and construction supervision in Pakistan. These developments will enhance the Company’s international standing in the consulting

business.

Nepal is accelerating its development efforts and there are ample opportunities for the growth of the engineering consultancy business. Several countries; especially India, China and Bangladesh have been negotiating with Nepal for possible investment in large-scale

hydropower projects. The slow paced growth of state-owned hydro development has given rise to an increasing interest in investment in the industry


from the private sector. The Company has created its own trademark and goodwill in the market and these initiatives will help it to expand its consulting engineering services in Nepal.

The Company is also trying to venture in new possibilities and there are several potential markets, 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 sanitation, road and education sector as well.

Closing remarksWe 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 fulfilling their roles effectively for the betterment of the Company. We are confident that Nepal’s hydropower sector will benefit 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 Shrestha

ChairmanDate: January 04, 2019


CEO ’s PERSPECTIVES

This year, because of the dedicated efforts from our team, Hydro-Consult Engineering Limited (HCE) has succeeded in enhancing the company’s competitiveness in a challenging environment. Thanks to our staff for their wholehearted efforts and hard work. Our efficiency continued to grow in the project execution and delivery that helped us to take HCE to the financial historic high this year. Moreover, we are proud to remain the home to leading technical experts in hydropower design solutions to use their expertise throughout the project life cycle.


HCE continued to execute successful design and safeguard solutions and completed 12 major projects in this fiscal year for different clients that include Water and Energy Secretariat, Department of Electricity Development, Independent Power Producers and Financial Institutions. Together with our committed Clients and Partners, we have grown in all fronts: individual capabilities, financial achievements and overall strengthening of the company. We are enjoying to take challenges and work harderin a team to generate practical and cost effective solutions to our Clients. Our driving force is the satisfaction of our Clients by continual improvement to maintain a long term relationship.

HCE, like most consulting companies today, is facing increasingly tougher competition, where the demand for innovative and profitable solutions is high. In spite of the tough competition in the market and notable turnover of the staffs, we were able to deliver our assignment on time while maintaining standard quality of services intact. Our focus is on ensuring strong project execution for improving profitability which is always not easy when the billing rates remain low vis-a-vis rising level of expenses. However, we were able to increase the company’s profitability by increasing our efficiency and individual competencies. We have encouraged in-house as well as international interactions and trainings; started a structured approach for recruitment and leadership development; and HCE has become one of the most attractive destination for the engineers in the national market. At present, we have more than 150 full-time professionals working in our head office and project sites. We are developing a culture of empowerment to keep intact our good working environment and competencies within the Company.

At present; political scenario of the country is stable which shows good sign for the development in all fronts including hydropower sector. Therefore, it is high time to develop hydropower and its related infrastructure in order to smoothen the distribution of the generated energy. Moreover, all concerned stakeholders should be much aware on development of the roads, transmission lines, and also for the

planning the demand side management; which helps speeding up the development of hydropower. HCE, with its rich legacy in national hydropower development, is well placed to sustain the growth of its business in the hydropower sector. In addition, we are well equipped to translate our core competencies in the hydropower sector to potential alternative sectors like sanitation, road and education sector as well.

Hydro-Consult Engineering is well aware of the advancement of technology and new software and always keep an eye for continual advancement in this front.Recently, we have started to use drone to verify the survey works for the finalization of project layout and further detailing. We are always proactive in setting up new technologies, but it is all about daring to apply the new approach for attaining innovative and sustainable solutions to our clients.

As always, I appreciate the guidance of the Board this year as well. I would like to thank the Board Chairman, Board Directors, Clients and our dedicated staff for the completion of this fiscal year 2074/2075 with remarkable success. Furthermore, I would also like to assure our clients for more efficient and cost effective solutions with standard quality engineering services in coming years as well. Finally, I would like to encourage my team to continue their efforts to complete the upcoming fiscal year also with grand success.

Manohar ShresthaChief Executive Officer


Corporate Governance Report

A sustainable growth and perpetual existence of a corporate house is possible through properly guided, directed and controlled governance. HCE Board of Directors upholds good governance of the company. The HCE management believes on the spirit of the corporate governance; safeguarding the interest of all stakeholders and continual progress of the company. Corporate governance comprises the management of risk, safeguarding of assets, avoidance of uncertainty, ensuring compliance, preservation of the rights of the shareholders, management and the employees and enhancing company ’s goodwill in the corporate sector.

The Company ’s governance practices are also based on the 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 Officer (CEO) to carry the affairs of the company with competent officers.

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

• The Company practices high level of disclosures for dissemination of corporate,

financial 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 defined 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 the 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 financial 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 9 Board meetings were conducted during the fiscal year 2074/75(2017/18). The attendees of the meetings were:

SN Name PositionNumber

of meeting attended

1 Uttar Kumar Shrestha Chairman 92 Pratik Man Singh

PradhanDirector 7

3 Radheshyam Shrestha Director 94 Murali Prasad Sharma Director 65 Ratna Sambhava Shakya Alt Director 27 Shiva Kumar Sharma Alt Director 3

8 Manohar ShresthaChief Executive Officer

9

9 Hari Budathoki Company Secretary 9

The roles of the Board of HCE are to: 1. Ensure legal and internal control compliance2. Review, monitor and approve major financial

and corporate strategies3. Review, monitor and approve budgets and

financial results and approve policies and business strategies

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

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

6. Work for the benefit of the institutional shareholders and the company.

Fees and Allowances

HCE Board of Directors represents the institutional shareholders. HCE has been paying meeting allowances to its Board members, Audit Committee and Budget Committee members. Board members representing BPC are ex-officio representative holding senior management positions in BPC.

Internal Audit

To maintain the independence and objectivity of risk management; fair financial 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 trimester 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

M/S Prabin Joshi & Co., Chartered Accountants audited the books of accounts of HCE for the fiscal year 2074/75 (2017/18). HCE has received the unqualified NFRS complied audit report for its financial 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, confidentiality, objectivity and integrity in all its business activities.Shareholding Pattern HCE has two institutional shareholders. The shareholding details are as follows:

Shareholder Number of Shares Held

Shareholding %

Butwal Power Company Ltd

117,785 80%

People, Energy and Environment 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 significant accounting policies are made in the notes to accounts section of the financial report.

Shareholders ’ Information

Butwal Power Company (BPC)

Butwal Power Company (BPC) stands today with around 53 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 electrification plan of a small city in the Southern Hills of Nepal, BPC is the only enterprise which can look back to a five 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.3-049/50

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

Date Converted into public limited Company: 17 February, 1993 (2049/09/06 BS)

Registered/Corporate Office: Gangadevi Marga-313, BuddhaNagar, Kathmandu, Nepal

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

People, Energy & Environment Development Association (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 Hydro-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 office, Kathmandu

Registration number: 85/054/55

Date incorporate: 17 August, 1997 (2054/05/01 BS)

Registered At: Social Welfare Council (SWC)

Registration number: 19445

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

Registered/Corporate Office: DevkotaSadak, Mid Baneshwor, Kathmandu, Nepal


Mr Uttar Kumar Shrestha is the Chief Executive Officer of Butwal Power Company (BPC) and is responsible for its overall operation and management. Prior to joining BPC, he was the Managing Director of Nepal Electricity Authority (NEA). He has served NEA for more than 20 years in different capacities. Mr Shrestha holds sound knowledge on hydropower development, project financing, negotiations with IPPs and extensive experience in negotiation with different bilateral and multilateral donor agencies, local financial institutions for financing and implementation of various projects.

Mr Shrestha has attended various Executive Management Development training programs and has participated as an expert in various national and international forums related to hydropower development. He had also served various hydropower companies as a Chairman/Board Member during his service period at NEA. He was also a member of the Electricity Tariff Fixation Commission, appointed by Government of Nepal.

Presently, he also holds the board directorship in SCIG International Nepal Hydropower Joint Development Pvt Co Ltd; Board Member of Nepal Hydro Electric Co. Ltd, Khudi Hydropower Co. Ltd, Guransh Energy Ltd; Alt. Board Member of Nyadi Hydropower Ltd and Kabeli Energy Ltd.

Similarly, he is also associated with various professional organisations such as Management Association of Nepal (MAN), The Institute of Chartered Accountants of India, The Institute of Chartered Accountants of Nepal, Nepal Hydropower Association (NHA), Electricity Development Council (EDC), Independent Power Producers' Association of Nepal (IPPAN) and International Association of Electricity Generation, Transmission & Distribution - Afro Asian (IAEGTD)

Mr Shrestha is a Certified Chartered Accountant from the Institute of Chartered Accountants of India and holds Masters in Business Administration degree from Tribhuvan University, Nepal.

Mr Shrestha holds the position of Vice-President-Finance in Butwal Power Company Limited (BPC). Mr Shrestha is responsible for BPC ’s financial operations, investor and stakeholder relations. He is also the Chairman of Audit Committee of Hydro-Consult Engineering Ltd.

Mr Shrestha has served for 30 years in different positions in Nepal Rastra Bank (NRB), the Central Bank of Nepal. He has held the position of Directors of Financial Management Department and various other Departments at NRB. He had also worked as Professional Accountant in CSC & Company and R Bajracharya & Co, Chartered Accountant firms after the NRB service.

A Fellow Chartered Accountant (FCA) of the Institute of Chartered Accountants of India and Institute of Chartered Accountants of Nepal, Mr Shrestha also holds a Master ’s Degree in Commerce from Tribuvan University.

Mr Uttar Kumar ShresthaChairman

Mr Pradhan is the Vice-President for Business Development and Project Function at Butwal Power Company (BPC), a leading private sector hydropower developer in Nepal. Mr Pradhan is a hydropower planning and development expert with over 28 years of experience in the planning and preparation, design, development and implementation of the hydropower projects in Nepal. His key experiences include providing technical and managerial oversight of implementing and upgrading of hydropower projects, preparing of the projects for implementation, and working on environmental hydraulics issues.

Mr Pradhan is currently involved in challenging assignment to plan and development of around 1000 MW in Marsyangdi river in joint venture with Chinese partners from Sichuon Province. The key responsibility lies in streamlining the 3 sequential projects into Cassade model of development and optimizing them for maxmium benifit.

He completed the challenging works of upgrading and commissioning of the 9.4MW Andhi Khola Hydroelectric Project that has been operating successfully. Upon satisfactory planning and preparation of 37.6 MW Kabeli A Hydropower Project and 30 MW Naydi Hydropower Project, he was instrumental in getting these projects under construction and has been supervising them from the begining.

Mr Pradhan is fully responsible for the planning, development and implementation of new hydropower projects, like 100 MW Lower Manang Marsyangdi Hydropower Project, 8.5 MW Chino Hydropower Project and preparing for 160 MW Mugu Karnali Project.

Mr Pradhan has provided leadership in a hydraulics research laboratory which focused on solving hydraulic related problems in the design of headworks in sediment loaded rivers in Nepal and the South Asia region. He has also had extensive experience in the construction of dams, intakes, and tunnels for a number of hydropower projects in Nepal.

Mr Pradhan has a Bachelor ’s degree in Civil Engineering from India and a Master ’s in Science in Hydropower Planning and Development from the Norwegian University of Science and Technology, Norway, as well as a second Master ’s degree in Civil and Environmental Engineering from the University of Michigan, Ann Arbor, USA.

Mr Pratik Man Singh PradhanDirector

Mr Radheshyam ShresthaDirector

Board Members Brief Resume


Mr Shiva Kumar Sharma brings more than 37 years ’ experience of Construction Management to the HCE Board. He joined Himal Hydro and General Construction Ltd in 1981 as a Site Engineer and held the positions of Project Manager, Manager of Engineering and General Manager before leaving the company in 2013. At present, he is the Managing Director of South Asian Infrastructure Pvt Ltd.

Apart from serving in the HCE Board, Mr Sharma is also the Board Director of Hydrolab Pvt Ltd and Executive Committee Member of PEEDA. He has also served as Board Director of Nepal Hydro and Electric and Himal Hydro and General Construction Ltd in the past. In addition, he was associated with Rairang Hydropower Development Company and Nepal Jalvidyut Prabardhan Tatha Bikas Ltd as Chairman; Nepal Norway Alumni Association as President; and Nepal Hydropower Association as Vice President. He also holds professional membership of Nepal Engineering Association, Nepal Geological Society and Nepal Hydropower Association.

Mr Sharma holds Post Graduate Course in Hydropower Development from Norwegian University of Science and Technology, Norway and Master of Science in Mining Engineering from People ’s Friendship University, Moscow, Russia.

Mr Shiva Kumar SharmaAlt Director

Mr Ratna Sambhava Shakya brings 35 years of experiences in the field of Finance, Auditing and Corporate management to the HCE Board. Mr Shakya is with BPC since 1994. As a Chief Finance Manager in BPC, he was successful in achieving National Best Presented Annual Report Award from ICAN in manufacturing sector for Ten years (2005-2016) for excellence in financial governance and transparency in financial reporting. This had been recognized from South Asian Federation of Accountants by awarding certificate of Merit for four years for Corporate Governance Disclosures Awards in 2009, 2010, 2014 and 2015. On his leadership as Head of Corporate, Mr Shakya was successful to resolve the conflict with Union having five years CBA Agreement with Employees Union maintaining sustainable industrial peace in BPC.

Mr Shakya holds Master ’s Degree in Business Administration and MA in Humanities from Tribhuvan University.

Mr Ratna Sambhava ShakyaAlt Director

Mr Sharma has gained experience of more than 47 years in general management, financial management and legal field. Mr Sharma has cumulative working experience of around 23 years (from 1968 to 1991) with the Government of Nepal holding different position relating general administration, financial management and judicial services. Besides, Mr Sharma has worked for more than 26 Years as legal and management consultant in private sector and is a well known practicing lawyer and legal consultant for hydropower industries of Nepal. He has provided legal advice and consultancy service to various national and international organizations like Government of Nepal, Asian Development Bank, UNDP, GIZ etc. He had served as legal adviser and company secretary to Butwal Power Company Ltd, Himal Hydro and General Construction Ltd, Nepal Hydro and Electric Co Ltd, Khudi Hydropower Company Ltd, and Kabeli Energy Ltd. Besides, he has been serving as legal adviser to Chilime Hydropower Company Ltd, Upper Tamakoshi Hydropower Company Ltd, Sanjen Jal Bidyut Company Ltd and Maddhe Bhotekoshi Hydropower Company etc.

Presently, Mr Sharma is a member of Nepal Bar Council, Nepal Bar Association and Supreme Court Bar of Nepal, Chairperson of People, Energy & Environment Development Association (PEEDA) and Member of Council of Arbitration. Mr Sharma is also the Chairperson of the Board of Directors of Hydro Lab Pvt Ltd as well.

Mr Sharma has attained Masters of Commerce and Bachelor of Law Degrees from Tribhuvan University of Nepal.

Mr Murali Prasad SharmaDirector


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

Experience: Over 29 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, Bhutan, India, Pakistan, Sri Lanka and Kenya. He has experience working with international firms Viz Statkraft Engineering, Multiconsult (then Norplan), Bernard, 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: 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 28 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 isalso the Author of different books in Bridge Engineering & Hydraulic Engineering.

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

Experience: Over 22 Years of professional experience in engineering design, tender document preparation/procurement process, project management/ construction supervision in hydropower engineering consulting business. Experienced in 1 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 etc.

Currently, involved and successfully completed the 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.

Mr Manohar ShresthaChief Executive Officer

Mr Bharat Raj PandeyChief Engineer

Mr Saroj Lal ShresthaDivisional Head

Implementation Division

Profile of The KeyStaff Members


Education: MSc in Water Resource Engineering, IOE, TU, Nepal; BE in Civil Engineering, IOE, TU, Nepal; BSc Physics, Tri-Chandra College, TU, Nepal.

Experience: Over 20 years of professional experience in hydropower sector. He has involved in project coordination, management, design, feasibility study, construction supervision and due diligence appraisals of more than 20 hydropower projects. He has overseen run-of-river, peaking and multipurpose water resource development projects. He also has consulting job experience with Norplan and Mott MacDonald. He has also taught course courses in waterpower engineering as Lecture.

Mr Basanta BagaleSr Manager, Hydropower Engineer

Resident Engineer: Nyadi Hydropower Project (30 MW)

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 18 years of professional experience in planning, designing and implementation of hydropower projects with expertise of hydrologic and hydraulicmodeling, 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.

Mr Shyam BhusalDivisional Head

Engineering Design Division

Education: MSc (Environmental Management), NationalUniversity 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 22 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, 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, WB, IFC, ADB, IHA and independent Power Producers in his professional career.

He has overseen studies of hydropower projects aranging from 1 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.

Mr Pranav AcharyaDivisional Head

Environment, Social andBusiness Relations


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

Experience: Over 14 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, 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, underground rock support design; 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.

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

Experience: Completed 10 year of professional experience in construction supervision, detail design and feasibility sutdy 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.

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

Experience: Mr Bhattarai holds over 15 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 Diwakar KhadkaManager,

Resident Engineer: Mistri Khola Hydroelectirct Project (42 MW) Mr Uttam Dhakal

Manager Cadre,Resident Engineer: Ghar Khola Hydropower Project (14 MW)

Mr Balram BhattaraiManager Cadre,

Sr Environmentalist


Education: MSc in Structural Engineering, IOE, TU, Nepal; BE in Civil Engineering, IOE, TU.

Experience: Over 11 years of professional experience in Structural Analysis and Design of RC structures. He has been constantly involved in capacity building of civil engineers in structural analysis and design, preparation of Design Base Memorandum/Guidelines for various projects, quality control of reports and construction drawings, quantity estimation, cost optimization and rate analysis. He also comprises a reliable experience working and coordinating with construction supervision team on site regarding design ambiguities and issues.

Mr Rakesh SapkotaManager Cadre

Sr Structural Engineer

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

Experience: Over13 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: BE in Civil engineering, IOE, Tribhuwan University (TU), Nepal.

Experience: Mr Yakami holds over 8 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 YakamiManager Cadre

Hydro-Power Engineer


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

Experience: Mr Phaiju holds above 10 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/plan and review of feasibility study, detail design of different projects 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 and 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.

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 10 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: 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 12 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 Ujwol PhaijuManager Cadre

Sr Electrical EngineerMr Oblique Shrestha

Manager CadreSr Mechanical Engineer

Mr Nishant KCResident Engineer: Solu Khola

(Dudhkoshi) HydropowerPorject (86 MW)


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

Experience: Over 8 years of professional experience in structural design and construction supervision of buildings, thermal power and hydropower structures. Key experience in structural analysis and design of various components of hydropower projects and buildings, supervision of BE final year project, quantity estimation and drawing.

Mr Pujan Ratna ShakyaManager Cadre

Structural Engineer

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

Experience: Over 7 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.

Mrs Sajana MarahattaManager Cadre

Hydropower Engineer

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

Experience: Over 8 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 MoolManager Cadre

Hydropower Engineer


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

Experience: Over 6 years of professional experience in study of hydropower projects including project layout studies, hydraulic design of civil components.

Detailed engineering design and Feasibility study of various projects including multipurpose projects. Experience in hydraulic design of headworks and waterway system, drawings and reports, hydrological data collection and analysis.

She has also worked in the proposal/ bid preparation for consultancy services.

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

Experience: Over 5 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.

Education: MA Sociology, TU, Nepal

Experience: Over 14 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.

Mrs Anugya SapkotaManager Cadre

Hydropower EngineerMr Anamaya Upadhyay

Manager Cadre, Contract Engineer

Mr Ashok JoshiManager Cadre,

Administration and Human Resources


Education: MSc in Electrical Engineering, Belorussian Polytechnic Institute, Minsk, USSR; BA in Economics and Political Science, TU, Nepal; Electrical Engineering Diploma, TU, Nepal.

Experience: Over 40 years of professional experience in design of electromechanical equipment, supervision on 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 KarkiSr Consultant

Electrical and Electro-mechanical

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

Experience: With over 7 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 RayamajhiManager Cadre,

Business Development

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

Experience: Over 18 years of professional experience in accounting and finance administration. Mr Ranjit has experience of overseeing accounting and financial matters of multiple sectors that includes Non-Governmental Organizations, co-operatives, manufacturing companies and consultancy business.

Mr Rabindra RanjitManager Cadre,

Accounts and Finance


Education: MSc in Engineering Geology from the University of Leeds, United Kingdom in 2000.; MSc in Geology from the Tribhuvan University, Nepal in 1992.

Experience: Over 25 years of experience in geology and geotechnical field in hydropower sector from project identification, site investigations, feasibility study, detailed design and construction supervision. He has carried out several feasibility studies and detailed design of hydropower projects ranging from 1 MW to 800 MW in Nepal and India. He has gained good knowledge on site selection, site investigation, construction of geological model, identification of georisks and design of major hydropower underground structures; site investigation planning, data acquisition and interpretation for ground conditions; site and layout selections of major hydropower structures; geological mapping, identification of faults/shear zones and construction of geological model; Identification and mitigation of georisks; evaluation of rock mass and rock support design of underground structures; prediction and rock support design in rock squeezing and rock burst; construction, supervision, quality control and monitoring of tunnelling works; preparation of specification and guidelines for underground structures; due diligence studies of hydropower projects; road risk assessment and mitigation measures; landslide study and mitigation measures

Mr Sunuwar is Secretary General and founder member of Nepal Tunnelling Association and successfully organized 3 International Standard Trainings and Tunnelling Conferences. He is the Life members of Nepal Geological Society, Nepal Engineering Association and Nepal Hydropower Association.

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 26 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.

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

Experience: 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. 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 Subas Chandra SunuwarSr Consultant,

Engineering Geology andUnderground Works Dr Hari Shankar Shrestha

Sr Consultant,Hydropower

Mr Narendra Man PatrabanshSr Consultant,

Contract Management


Education: LLM, TU, Nepal

Experience: Mr Budhathoki has over 17 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 Hari BudhathokiLegal Advisor

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

Experience: Over 18 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.

Mr Bandhu DhakalConsultant,

Sr Hydrologist

Education: MSc in Hydropower Development, NTNU, Norway; BE in Civil Engineering, WRC, IOE, TU, Nepal

Experience: Over 13 years of experience in the field of hydropower projects that include project management and planning, project layout studies, optimization studies, hydraulic and structural design of civil components and preparation of tender documents for the national and international projects ranging from 1 MW to 260 MW. Experience in the works of numerical hydraulic modeling and peaking reservoir simulation studies. He has also worked in the proposal/bid preparation for consultancy services for the government and private jobs in national and international levels.

Mr Diwash Lal MaskeyConsultant,

Sr Hydropower Engineer


Highlights from income statement of FY 2074/75

• HCE earned total revenue of NPR 175.05 million in FY 2074/75. The revenue from consultancy business was NPR 169.06 million whereas combined interest and other income was NPR 5.99 million.

• The Gross profit was NPR 57.26 million which is 32.71% of the total revenue.• The profit before tax was NPR 36.44 million that was 20.82% of the total revenue earned in FY 2074/75.• The Earning per share (EPS) was NPR 180.83 in FY 2073/74.• Provision for Income Tax amounts is NPR 9.76 million for the FY 2074/75.

Highlights from statement of financial position of FY 2074/75

• The net worth of HCE has increased by 28.54% to NPR 102.45 million in FY 2074/75 from NPR 79.70 million FY 2073/74.

• Total assets has been increased by 24.01% and reached NPR 140.45 million in FY 2074/75.• The Book Value per Share (BVPS) has increased to NPR 695.85 in FY 2074/75.• The retained earnings increased by 35.01% to NPR 87.73 million in FY 2074/75 from 64.98 million of

FY 2073/74.

The transaction of HCE with its Clients, parent company and its subsidiaries was NPR. 140.96 million, NPR. 4.9 million and NPR. 23.2 million respectively in FY 2074/75.

Value Addition FY 2074/75 FY 2073/74 FY 2072/73 FY 2071/72Corporate Tax 9,758,136 4,335,464 5,484,765 3,957,101Employee Tax 7,552,656 7,756,276 7,754,023 5,334,562TDS 2,515,437 1,803,942 1,569,804 2,207,846Value Added Tax (VAT) 17,701,115 10,401,469 4,766,157 5,944,660Total 37,527,344 24,297,151 19,574,749 17,444,169

VALUE ADDITION TO THE NATIONHCE contributed following amounts into the Government Revenue

Financial Performanceof FY 2074/75


HCE is the international firm for Construction Supervision and Management of the project. The contract is awarded to the JV of AGES Consultants-Bak Consulting Engineers-RENCON Consultants and Hydro-Consult Engineering in June 2016.

The Consultant will provide full support beginning with the selection of the EPC Contractor till the final commissioning Testing and execution of the process of COD of the project. The Contract is in two phases;

Phase I: Pre-construction Phase that include Review of Feasibility Study; preperation of EIA to fulfill the Turk Exim Bank requirements; finalize Land Acquisition Plan, RAP, ESMP; assistance in loan facility agreement and bid evaluation, contractor selection and finalization of contract.

Phase II: Construction Supervision and Contract Management; Monitor, review and supervise the EPC Contractor engineering, procurement, contract administration and construction activities.

Nagdar HydropowerProject (35 MW)

Project Overview of FY 2074/75International Project

Type: Run-of-RiverClient: Power Development

OrganizationLocation: Azad State of Jammu and

Kashmir, PakistanCapacity: 35 MWGross head: 470 mDesign Discharge: 9 m3/secMean annual energy: 146.05 GWhWeir: 14 m (length), 6 m (height)Sand trap: Number of Chambers-2 Clear

Width of each Chamber-4 m Length of Chamber- 54 mHeadrace tunnel: Horse Shoe, partially lined 3840m length, 3.1 m dia.Surge tank: Diameter- 6 m, Depth- 32 m Pressure shaft and Pressure tunnel : Diameter- 2.1 m, Length- 680 mPowerhouse: Cavern (62.6m x14.6m x18m) Access Tunnel- 505 m Tailrace Tunnel- 537 m Tailrace Channel- 25 mElectro-mechanical: Horizontal Axis Pelton


A Joint venture of AGES Consultants, Pakistan with other local Pakistani Consultants, Hydro Consult Engineering Ltd and 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.

HCE as a foreign partner of the Joint Venture has 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.

Gabral Kalam Hydropower Project (110 MW)

Type: Run-of-RiverClient: Pakhtunkhwa Energy

Development Organization (PEDO)

Location: Swat, Khyber Pakhtunkhwa, Pakistan

Capacity: 110 MWGross head: 170 mDesign Discharge: 75 m3/secAnnual estimated energy: 391 GWhRiver: Swat


A Joint 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 446 MW Kari Muskhur Hydropower Project located in Lower Chitral, Khyber Pakhtunkhwa, Pakistan, Pakhtunkhwa Energy Development Organization (PEDO) is the Client of the Project.

HCE as a foreign partner of the Joint Venture has 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.

Kari Muskhur Hydropower Project (446 MW)

Type: Run-of-RiverClient: Pakhtunkhwa Energy

Development Organization (PEDO)

Location: Lower Chitral, Khyber Pakhtunkhwa, Pakistan

Capacity: 446 MWGross head: 177 mDesign Discharge: 370 m3/secAnnual estimated energy: 2036 GWhRiver: Chitral


M/S SahasUrja Limited, Hattisar, Kathmandu (Employer)engaged Consortium of Hydro-Consult Engineering Limited, Kathmandu, Nepal and Fichtner GmbH & Co. KG, Stuttgart, Germany (FIH) to serve as the Employer’s

Representative (ER) to provideDesign Review and Construction Supervision for theSoluKhola (DudhKoshi) HEP (86MW) Project, Solukhumbu, Nepal. The project is being constructed as a FIDIC Silver Book EPC Contract.

Solu Khola (Dudhkoshi) HydropowerProject (86 MW)

Type: Run-of-RiverClient: Sahas Urja LimitedLocation: Solukhumbu DistrictCapacity: 86.0 MWDesign Discharge: 17.05 m3/sGross head: 614.70 mAnnual Estimated Energy: 520.20 GWhDiversion Weir: 31.8 m long concrete gravity

weirIntake: 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 wideWaterway 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 1880m Penstock tunnel and

steel pipe 2.1m to 2.5m varying dia.

Surge Tunnel: 375m long surge tunnelPowerhouse: Surface powerhouse with

3 nos. Vertical Axis Pelton turbines

Transmission Line: 10.5 km 123kV to Proposed Tingla Substation

Project Overview of FY 2074/75National Project


HCE is entrusted the job of Consulting Services for Construction Management and Supervision of the Project. Commencing on 30th June 2016 about 65% of overall construction work has been completed 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, Hydromechanical, and Transmission line works packages.

Mistri Khola Hydroelectric Project (42 MW)

Type of Scheme: Run-of-RiverClient: Robust Energy Limited (REL)Location: Myagdi district, Western NepalCapacity: 42 MWDesign Discharge: 17.1 m3/sGross Head: 302.75 mAnnual Estimated Energy: 232 GWhDam: Concrete gravity founded on

bedrock 29.5m including piers (Crest

Length), 23 m (Height)Intake: Frontal Intake, 8m (W) x 5m (H)

single openingApproach 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, 71⁰ inclined, 6m (dia.)

Penstock: 1655 m (L), 2.15 m(dia.), buriedPowerhouse: Surface; 3 units of Pelton

TurbineTransmission Line: 132 kV - Double Circuit, 4km

long


HCE is entrusted with the job of contract management, 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 and approval, construction quality works and supervision, contractors’ claim review & recommendation to client etc.

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

Nyadi HydropowerProject (30 MW)

Type: Run-of-RiverClient: Nyadi Hydropower LimitedLocation: MarsyangdiMuniciality-

6,Thulobeshi and Naiche Village, Lamjung District, Nepal

Capacity: 30 MWGross head:Design Discharge: 335.5 m 11.08 m3/sec at 40%

exceedanceAnnual estimated energy: 168.55 GWhDiversion weir:Approach Tunnel 14 m (length) 18.5 m (height), 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

DiameterPenstock pipe: 780 m Long 1.75 m internal diameterPowerhouse: Surface Type, 45.5m*16 m 2 units ,Vertical axis Pelton

turbineTransmission Line: 132 kV, 6 km long


We are currently carrying outconstruction supervisionand design review of GharKhola Hydropower Project (GKHPP) as consultant. GKHPP is run-off-the-river (ROR) type hydropower project with an installed capacity of 14 MW (2 X 7MW) located in Annapurna Rural Municipality 5 and 6 of MyagdiDistrict 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 78.498 GWh of energy annually. The project is owned byMyagdi

Hydropower Limited.

The proposed Headworks site lies at an elevation of 1645.0 m of GharKhola and the Powerhouse is located at an elevation of 1185 m, 300 m downstream of the confluence of GharKholawith Kaligandaki River. Project consists of about 3030 m of tunnel (Finished Dimension (2.4 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.

Ghar Khola HydropowerProject (14 MW)

Type: Run-of-RiverClient: Myagdi Hydropower LimitedLocation: Annapurna Rural Municipality,

Myagdi DistrictCapacity: 14.0 MWDesign Discharge: 3.46 m3/sGross head: 490 m Annual Estimated Energy: 78.65 GWhDiversion Weir: 25.0 m long gravity weirIntake: 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

3.03km , 2.4m x 2.6m high D shaped Headrace tunnel

1218 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 Substation


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, HCE is working on the field 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, financial, socio-economic, environmental and other relevant aspects of project development.

Sunsari Morang Irrigation Project Headworks

Type: Irrigation SchemeClient: Department of IrrigationLocation: Sunsari and Morang DistrictDesign Discharge 60 m3/s


The joint venture of Hydro-Consult Engineering Limited (HCE) and Environment Management Consultant Pvt. Limited (ERMC) has completed providing the consulting services in this fiscal year to Department of Electricity Development (DoED) for conducting the detail engineering design and update environmental study of the InkhuKhola Small Hydropower Project.

HCE has already completed overall work of the project which covers the detail design of the project including review and update of project layout, hydrological and

sedimentological studies, geo-physical and geo-technical studies, topographical survey, detailed hydraulic calculation and structural analysis, preparation of civil and reinforcement drawings, Detailed Project Report, preparation of the tender documents for the civil, hydro-mechanical, electro-mechanical works andtransmission line. The work also included the design and tender document preparation of access road and camp as well as preparation of land acquisition report

Inkhu Khola Small Hydropower Project (21.4 MW)

Type: Run-of-RiverClient: Department of Electricity

DevelopmentLocation: SolukhumbuDistrictCapacity: 21.4 MW(updated)Gross head: 271.07 mAnnual estimated energy: 123.238GWh (updated)Weir: Concrete Gravity Ogee Weir 25m long, 9.0 m highIntake 2 gates 4.5 m (w) x 2.5m (h)Settling basin: Surface, 2 bays, 64.0 m longHeadrace tunnel: 4732.8 m long D Shaped 2.8m dia.Surge Shaft: 38.1m high, 6.5m diameterPenstock: 599.95m length (1.9m diameter)

with bifurcated length 11.43 each (1.34m diameter)

Powerhouse: Surface, 2 units of Francis Turbine


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 SiwaKhola 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 andgeological 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 is working on the field investigation, hydraulic and structural design of civil components of the project, design of access road and bridge over LowaKhola and preparation of tender documents.

Siwa Khola Small HydropowerProject (26.95MW)


DevelopmentLocation: TaplejungDistrictCapacity: 26.95 MWGross head: 584.5 mDesign Discharge 5.49m3/s Annual estimated energy: 153.76GWhWeir: Free Overflow type concrete

weir; 23.5 m (l) 4.5 m above river bedIntake 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: 4515.1 m length D Shaped 3m dia.Penstock tunnel: 230 m length D Shaped 3 m dia.Penstock Length: 1375.1 m (l)2.85 m diaPowerhouse: Underground 3 units of Francis turbine


Mistri Khola 2 HEP is a cascade project to under construction MistriKhola HEP in Myagdi district, identified and owned by Mountain Energy Nepal Ltd.

HCE has been entrusted for the Feasibility Studies, Tender Document Preparation and Detail Design of the project and the contract was awarded on January, 2018. Based on the scope of works, HCE has concluded overall layout

studies, hydrological studies, components optimization, engineering geological mapping, feasibility level design, installed capacity, cost and energy estimation and financial and sensitivity analysis of the project.

Currently, draft of feasibility study report and drawings have been submitted to the Client for any comments and suggestions.

Mistri Khola 2 Hydroelectric Project (12 MW)

Type of Scheme: Cascade to MistriKhola HEP with additional discharge from GhatteKhola

Client: Mountain Energy Nepal Ltd.Location: Myagdi DistrictCapacity: 12 MWGross Head: 79.25 mDesign Discharge: 18.70m3/sAnnual Estimated Energy: 69.38GWhBalancing Pond: 11.0m (length including

transition) and 6.0m(w)x 4.0m (h)Headrace Culvert: 396.0m length, 3.5m (w)x 2.5m(h)Forebay: 16.5m (l) x9.0m (w) and varying

height from 6.2m to 13.3mHeadrace Pipe: 262.5m length, 2.85m dia.Headrace Tunnel: 2012.5m length D Shaped 4.0m (w) x 4.2m (h)Vertical Shaft: 45 m (h), 3.05m excavation dia.Penstock Tunnel: 108.5m length D Shaped, 4.0m (w) x 4.2m (h)Penstock: 168.5m total length, 2.25m dia.Powerhouse: Surface, 2 units of Vertical axis

Francis turbine


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 July 2015.

The main objective of the project is to carryout topographic survey andgeological 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 structuresand preparation of tender documents for civil, electro-mechanical, hydro-mechanical works, transmission line, permanent dam and access road.

At present, HCE is working on the detail hydraulic and structuraldesign of the project components and preparation of detail design report.

Budhiganga Small Hydropower project (11 MW)


DevelopmentLocation: Bajura DistrictCapacity: 11 MW (updated)Gross head: 81.65 m (updated)Annual estimated energy: 67.21GWh (updated)Weir: 84.5 m (length) 5.5 m (height) above river bedIntake Side intake ,3 gates of size 5.4

m (w) x 1.8m (h)Settling basin: Surface, 2 bays, 62 m length, 12 m breadthHeadrace Pipe: 3 m dia., 2600m lengthSurge shaft: 6.5 m dia., 27 m heightPenstock: 2.9 m dia, 477 m lengthPowerhouse: Surface, 2 units, vertical axis

Francis turbine


Hydro-Consult Engineering Limited (HCE) has been awarded the contract for detail engineering design ofBhotekoshi – 5 Hydroelectric 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 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 completed the tender level design/drawings of civil, HM and EM components following the recognized best practices and applicable standards considering technical, financial, socio-economic, environmental and other relevant aspects of project development. In overall, the final output of detail design carried out by HCE shall comprise the cost estimate, detail design drawings, economic and financial analysis and preparation of BoQ.

Bhotekoshi – 5 Hydroelectric Project (62 MW)

Type: CascadeClient: Kalika Energy Pvt. Ltd.Location: Sindhupalchowk DistrictDischarge: 50.8 m3/secCapacity: 62 MWGross head: 146.83 mAnnual estimated energy: 332.2GWhSiphon Intake: 4.4 m (w) x 4.4m (h) x 87.80mHead pond: Surface, 54.23 m length, 12 m

width, 14.35 m heightSurge Tunnel: 651.85 m length, 5.2m dia. Horse-Shoe shapePenstock: 3.8 m dia., 432.75 m lengthPowerhouse: Semi-Underground, 2 units,

vertical axis Francis turbine


HCE won the bid to conduct detailed engineering design and tender document preparation for Khimti 2 Hydroelectric Project with People ’s Energy Limited in March 2016.

HCE has already completed the feasibility study review, project layout studies, project component optimization studies, geological studies, hydraulic design and drawings, cost and energy estimates and geo-technical designs and investigation works of the project. Similarly, HCE also completed the preparation of the tender documents for the civil, hydro-mechanical and electro-mechanical

works. Besides that, HCE also assisted in physical hydraulic modelling of headworks of the project carried out in Hydrolab.

However, at later stage the construction model for the project changed from Item Rate to EPC-F to which HCE provided additional assistance in preparation of technical specification of works for EPC module and certain modification of tender drawings and documents as requested by the Client. The project was completed in August 2017.

Khimti 2 Hydroelectric Project (48.8 MW)

Type: Run-of-RiverClient: People ’s Energy LimitedLocation: Ramechhap and Dolakha

DistrictCapacity: 48.8 MWGross Head: 351.5 mDesign Discharge: 16.11 m3/sAnnual Estimated Energy: 263.99 GWhDiversion Weir: Boulder Riprap Weir 27.0 m (length) and 5.0 m highIntake: Side intake ,4 gates of size 3.0

m (w) x 2.0m (h)Settling Basin: Underground, 3 nos. 60.0 m (l) x 7.0 m (w)Headrace Tunnel: 6604m length, D Shaped 4.0m (W) x 4.25m (H)Vertical Shaft: 148 m height, 2.3m finished

dia.Inclined Tunnel: 585m length, D Shaped, 4.0m (W) x 4.25m (H)Penstock: 894m total length, 2.3m dia.Powerhouse: Surface, 2 units of Vertical axis

Pelton turbine


Chino Khola Small Hydropower Project was identified by Butwal Power Company (BPC) and in order to use its power as construction power for development of Lower ManangMarsyangdi Hydropower Project (LMMHEP) being promoted by BPC.

HCE is entrusted with the job of Feasibility Study, Tender Document Preparation and Environmental Impact Assessment (EIA) of Chino KholaSmall Hydropower Project. HCE is now working for updated Feasibility Study and EIA study.

Chino Khola Small Hydropower Project (8.07 MW)

Type: Run-of-RiverClient: Butwal Power CompanyLocation: ManangDistrictCapacity: 8.07 MWGross head: 916.02 mAnnual estimated energy: 46.95GWhIntake: Bottom rack intake Settling basin: Surface, 2 nos., 30 m (length), 4 m (width)Headrace tunnel: 368m length (Tunnel with Penstock pipe and

walkway), D Shaped 2m dia.Penstock Pipe: 2150 m length, 0.65 m diaPowerhouse: Surface, 2 units of Pelton turbine


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 drawingsalong with the cost estimate. The scope also

covers design of permanent and temporary camp facilitiesand preparation of tender documents for civil, electro-mechanical and hydro-mechanical works.

At present, HCE has finished 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.

Likhu-2 HydroelectricProject (55 MW)

Type: Run-of-RiverClient: Global Hydropower Associates

Pvt. Ltd.Location: Ramechhap/Solukhumbu

DistrictDesign Flow: 26.4 m3/sCapacity: 55 MWGross head: 247 mAnnual estimated energy: 185.99 GWhWeir: 36.3 m (l) 12.5 m (h) above deepest cutoff Intake Orifice type Side intake , 4gates

of size 3.0 m (w) x 2.0 m (h)Settling basin: Surface, 2 nos. , 65 m (l) x 19 m (b)Headrace Tunnel: 6528m length 4*4.25 m dia. D-ShapeSurgeshaft: 8.0 m dia.,44.4 m heightPenstock: 2.5 m dia, 567 m lengthPowerhouse: Semi-Underground 3 units,vertical axis Francis

turbine


The joint venture of Hydro-Consult Engineering Limited (HCE) and Environment Management Consultant Pvt. Limited (ERMC) has completed providing the consulting services in this fiscal year to Department of Electricity Development (DoED) for conducting the detail engineering design and update environmental study of the Lower HonguKhola Small Hydropower Project.

HCE has already completed overall work of the project which covers the detail design of the project including

review and update of project layout, hydrological and sedimentological studies, geo-physical and geo-technical studies, topographical survey, detailed hydraulic calculation and structural analysis, preparation of civil and reinforcement drawings, Detailed Project Report, preparation of the tender documents for the civil, hydro-mechanical, electro-mechanical works andtransmission line. The work also included the design and tender document preparation of access road and camp as well as preparation of land acquisition report.

Lower Hongu Khola Small Hydropower Project (30.2 MW)


DevelopmentLocation: SolukhumbuDistrictCapacity: 30.2 MW(updated)Gross head: 177.0 mAnnual estimated energy: 175.80GWh (updated)Weir: 40.0 m length 7.0 m high above river bedIntake Side intake ,4 gates of size 4.0 m (w) x 2.5m (h)Settling basin: Surface, 2 nos. 85 m (length) 11.5 m (width)Headrace tunnel: 2675.0 m length D Shaped 4.2 m dia.Surge Shaft: Simple surge shaft with offset 40.35 m heightPowerhouse: Underground 3 units of Francis turbine


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 KaligandakiTinau Diversion Multipurpose Projectowned 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 financial analyses; and preparation of tender documents for civil, electro-mechanical and hydraulic steel structures. HCE has so far completed the topographical survey and mapping, study of alternative layouts, hydrological, meteorological and sediment studies,and preliminarydesign and layout of major project components. Currently, works for carrying out the irrigation studies and detail design of the project components is underway.

Kaligandaki Tinau Diversion Multipurpose Project (136.3 MW)

Type: Run-of-River with cascade development

Client: Department of IrrigationLocation: Syanja, Palpa and RupandehiCapacity: 136.3 MW (to be updated)Gross head: 113 m + 90 mAnnual estimated energy: 620 GWh + 510 GWh (to be

updated)Barrage: 111 m (length)Intake: Side intake 4 gates 6.8x5.8 mSettling basin: Surface:4 bays 126m (l) x 14m (w) x 15.6 m(h)HRT: 25 km + 6.3 km length Horse-shoe,7.7m diameterPenstock: 473 + 406 m (l), 3.9 m dia. two

parallel pipes eachPowerhouse: Two Surface Powerhouse 4 units Francis turbine each


Hydro-Consult Engineering Limited (HCE) is undertaking the Feasibility study and Environmental Impact Assessment (EIA) of the MuguKarnali Hydropower Project owned by Butwal Power Company (BPC).

The major scopes includes carrying out pre-feasibility study of project; Topographical Survey; Hydrological and sediment data collection; Geological, Geophysical

and Geotechnical Investigations; Feasibility study of the project and EIA study of the project.

At present, HCE is working on the pre-feasibility study phase of the project. In this phase, six peaking RoR options and two storage alternatives are being analyzed, out of which the feasibility study shall be conducted on the most attractive project financially.

Mugu Karnali HydropowerProject (160 MW)

Type: Peaking Run-of-river or Storage Option

Client: Butwal Power Company Location: Mugu DistrictPRoR alternatives 6 nos.Storage alternatives 2 nos.Design Discharge 92 m3/s


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

The major scopes includes the carrying out topographic survey andgeological investigations, construction material survey, hydrological and sediment data collection, feasibility design, IEE study anddesign of access road.

At present, HCE is working on the field investigation and hydraulic design of civil components of the project, design of access road and preparation of feasibility study reportfollowing the recognized best practices and applicable standards considering technical, financial, socio-economic, environmental and other relevant aspects of project development. The final output of Feasibility Study Report carried out by HCE shall comprise the cost estimate, design drawings, economic and financial analysis, and preparation of BoQ.

Kawadi Khola Hydroelectric Project (30 MW)


DevelopmentLocation: Humla & Bajura DistrictCapacity: 30 MWGross head: 388.6 mWeir: 17 m (l) 4.0 m above river bedIntake Side intake ,2 gates of size 2.8

m (w) x 2.5m (h)Settling basin: Surface, 2 nos. 64 m (l) x7.5 m (w)Headrace tunnel: 5100 m length D Shaped 4.0m dia.Penstock 694 m length 1.7 m diaPowerhouse: Surface 2 units of Pelton turbine


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 SankhuwaKhola 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 field investigation works, layout and design of project components, construction planning, cost estimating and economical and financial analysis. Furthermore, the study also covers the detail EIA study of the project.

HCE has completed most of the studies as per the scope and is currently working on Final Reports of both Feasibility and EIA Study.

Sankhuwa Khola HydropowerProject (41 MW)


DevelopmentLocation: Sankhuwasabha and

BhojpurDistrictCapacity: 41.06 MWGross head: 315.92 mAnnual estimated energy: 233.92 GWhWeir: Concrete gravity dam 42.0 m (l) 6.0 m above river bedIntake Side intake ,4 gates of size 2.5

m (w) x 2.5m (h)Settling basin: Surface, 4 nos. 60.0 m (l) x 8.0 m (w)Headrace tunnel: 4657 m length D Shaped 4.0m dia.Penstock 1034 m length 2.0 m diaPowerhouse: Surface 2 units of Francis turbine


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 SankhuwaKhola-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 field investigation works, layout and design of project components, construction planning, cost estimating and economical and financial analysis. Furthermore, the study also covers the detail EIA study of the project.

HCE has completed most of the studies as per the scope and is currently working on Draft Final Reports of both Feasibility and EIA Study.

Sankhuwa Khola-I Hydropower Project (40 MW)

Type: Run-of-River with additional discharge from KoluwaKhola

Client: Department of Electricity Development

Location: Sankhuwasabha DistrictCapacity: 40.82 MWGross head: 548.20 mAnnual estimated energy: 255.08GWhWeir: 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 SankhuwaKhola 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)Headrace tunnel: 4958 m length D Shaped 3.5m dia.Penstock: 793 m lengthPressure shaft: 1.5 m diaPowerhouse: Underground 2 units of Pelton turbine


Nyaurigad Hydropower Project is owned by Department of Electricity Development (DoED). JV ofHydro-Consult Engineering Limited (HCEL) and Environment and Resource Management Consultant Pvt. Limited (ERMC) is providing the consulting service for the Feasibility Study and IEE study of the project.

The main objective of the contract is to carry outthe technical, financial and environmental study of the project. So far, HCE has completed topographic survey, geological mapping and project layout alternative analysis. At present,the geo-technical investigation along with the hydraulic designfor the project capacity optimization and IEE studies are ongoing.

Nyaurigad HydropowerProject (4.07 MW)


Development (DoED)Location: Jumla DistrictCapacity: 4.07 MWGross head: 81.96 mAnnual estimated energy: 25.152 GWhWeir: 25.0 m (l) 5.0 m above river bedIntake Side intake , 2 gates of size 3.0

m (w) x 2.2m (h)Settling basin: Surface, 2 nos. 50 m (l) x 6 m (w)Headrace pipe: 573 m (l), 1.9m diameterHeadrace tunnel: 2945.75 m length D Shaped 2.8mdia.Surge shaft: 29 m (h), 6.5 m dia.Penstock: 199m (l), 1.9m dia.Powerhouse: Surface 2 units of Horizontal axis

Francis turbine


The joint venture of Hydro-Consult Engineering Limited (HCE) and Environment and Resource Management Consultant Pvt. Limited (ERMC) is undertaking the feasibility study and IEEStudy of BheriKhola 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, meteorological and sediment studies, geological and geotechnical field investigation works, layout and design of project components, construction planning, cost estimating

and economical and financial analysis.Further, the scope also coversdesign of access road, conducting Initial Environmental Examination Study.

HCE has completedthe topographic survey and mapping, study of alternative layouts, hydrological and sediment studies, sizing and hydraulic design, structural stability analysis and layout of major project components. HCE is currently working on geotechnicalfield investigation, finalization of layout of all project components, preparation of quantity and cost estimates, economic and financial analysis;optimization study of the project layout and components and the final IEE report of the project.

Bheri Khola HydropowerProject (4.23 MW)


DevelopmentLocation: JumlaDistrictCapacity: 4.2 MW (to be updated)Gross head: 95.80 mAnnual estimated energy: 27.24GWh (to be updated)Weir: 28.5 m (l), 5.0 m above river bedIntake Side intake, 2 gates of size 3.0 m (w) x 1.8m (h)Settling basin: Surface, 2 nos. 50 m (l), 6 m (w)Headrace tunnel: 3860.24m length D Shaped 3.0m dia.Penstock: 462.2 m length, 1.60 m diaPowerhouse: Surface, 2 units of Horizontal

Axis Francis turbine


Middle Tamor Hydropower Project (MTHPP) is a Run-off-River (RoR) type hydropower project located in Taplejung District, Eastern Development Region of Nepal. HCE was assigned to carry out the Due diligence study of Middle Tamor HPP being developed by Sanima Middle Tamor Hydropower Ltd. on behalf of Nepal Investment Bank Ltd.

HCE carried out an independent review of the project, based on the site visit, project description report as well as drawings made available by the Client. The major

scope of services included review studies of hydrology, geology, environmental studies, project layout and project component design and parameters including theproject cost estimates, installed capacity and annual energy estimates.The scope also covered the assessment of available facilities like roads, Transmission line(TL) and project requirements, and risk factors associated with the project. Besides that,financial viability of the project was analyzed and recommendation were suggested based on the study, experience and project findings.

Middle Tamor Hydropower Project (73 MW)

Type: Run-of-RiverClient: Nepal Investment Bank LtdDeveloper: Sanima Middle Tamor

Hydropower LtdLocation: Taplejung DistrictCapacity: 73 MWGross head: 93.0 mDesign Discharge: 73.71 cumecsAnnual estimated energy: 429.2 GWhDiversion Weir: Concrete weir having Ogee

profile, 50.0 m (l)Intake: Side intake ,6 gates of size 4.75 m (w) x 4.0m (h)Settling basin: Underground, 3 nos. 100.0 m (l) x 13.0 m (w)Headrace tunnel: 3308 m length D Shaped 6.5m dia.Penstock: 200 m length, 4.5 m diaPowerhouse: Semi-Surface 4 units of Francis turbine


Upper Mailung Khola Hydropower Project (UMKHPP) is a Run-of-River type hydropower project located in the Rasuwa District. The project has the installed capacity of 14.3 MW with the design discharge of 3.53 m³/s and gross head of 495 m.MathilloMailungKholaJalvidhyut Ltd. is the developer of the project and HCE was assigned for the Due Diligence study of the project on behalf of Siddhartha Bank Limited.

HCE ’s scope of works for this project is to review the studies including hydrology, geology and environmental aspects of the project area. Along with this, the scope of service also included review of the project layout, project component design parameters including the project

cost estimates, financial analysis, installed capacity, annual energy estimates and overall review of the project covering the assessment of available facilities as roads, Transmission Line risk factors associated with the project.The review of the project was carried out based on the site visit, project description report and drawings provided by the Client.

The study of the project is completed concluding that the project is technically and financially feasible based on the estimated energy and project costs and Due Diligence Appraisal Report along with necessary conclusions, suggestion and recommendations is submitted.

Upper Mailung Khola Hydropower Project (14.3 MW)

Type: Run-of-RiverClient: Siddhartha Bank LimitedDeveloper: Mathillo Mailung Khola

Jalvidhyut Ltd.Location: Rasuwa DistrictCapacity: 14.3 MWGross head: 495.0 mDesign Discharge: 3.53 m3/sAnnual estimated energy: 78.85 GWhWeir: Free flow ogee shaped concrete

weir, 20.0 m (l)Intake Bottom and Side intake Settling basin: Surface, 2 baysHeadrace Tunnel: 1855 m length D-shaped with 2.4m diaPenstock pipe 772 m lengthPowerhouse: Surface, 2units of horizontal axis

Pelton Turbines


Upper Nyasem Hydropower Project is a Run-off-River (RoR) type hydropower project being developed by SindhuJwala Hydropower Pvt.Limited.

HCEL has completed the Due-Diligence Study of Upper Nyasem Hydropower Project upon the request of the Client. The major scope of service included independent review of hydrology, geology of the project area, environmental studies in the available reports, project

layout and project component design parameters, project cost estimates, available facilities like roads, Transmission line(TL) and project requirements, existing environment and likely adverse impacts andassessment of the adequacy of the environmental study (EIA). Brief assessment of risk factors in the project was carried out and along with review of the installed capacity and annual energy after whichDue-diligence Report was prepared with recommendations based on the findings.

Upper Nyasem Hydropower Project (43 MW)

Type: Run-off-RiverClient: Sindhu Jwala Hydropower Pvt. Ltd.Location: SindhupalchowkCapacity: 43 MWGross head: 860.3 mWeir: 12 m (l)Intake: Side intakeSettling basin: Surface, 2 nos., 62 m (l)Headrace tunnel: 1236 m length D Shaped 2.5 m dia.Penstock: 2690 m length, 1.6 m diaPowerhouse: Surface, 3 units of Vertical axis

Pelton turbine


Super Nyadi Hydropower Project (SNHPP) is a run-of-river type hydropower project located in the Lamjung District, Western Development Region of Nepal. HCE was assigned to carry out the Due diligence study of the project.

HCE carried out an independent review of the project, hydrology, project description report as well as drawings made available by the Client. The major scope of services included review studies of hydrology, geology,

environmental studies, project layout and project component design and parameters including the project cost estimates, installed capacity and annual energy estimates. The scope also covered the assessment of available facilities like roads, Transmission line (TL) and project requirements, and risk factors associated with the project. Besides that, financial viability of the project was analyzed and recommendation were suggested based on the study, experience and project findings.

Super Nyadi HydropowerProject (40 MW)

Type: Run-of-RiverClient: NMB Bank Limited (NMB)Developer: SiuriNyadi Power Ltd. Location: Lamjung DistrictCapacity: 40.27 MWGross head: 697.7 mDesign Discharge: 6.80 m3/sAnnual estimated energy: 235.76GWhDiversion Weir: Free overflow concrete gravity

weir, 30.0 m (l) x 9 m (w)Intake: Side intake ,3 gates of size 2.5 m

(w) x 1.3 m (h)Settling basin: Dufour type, 2 nos., 72.0 m (l) Headrace tunnel: 6766m length D Shaped 2.6m dia.Penstock: 1290 m length, 4.5 m diaPowerhouse: Surface, 2 units of vertical axis

pelton turbine


DordiKhola Hydropower Project is a Run-of-River type hydroelectric project with generating capacity of 27 MWin 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/ financial institutions to raise the required loan financing of the project.

HCE ’s scope of works for this project is to verify the interim payment certificates (IPCs) and final payment certificate issued for Civil, hydro-mechanical, electro-mechanical

and transmission line contracts of the project and submit the disbursal report based on authenticprogress reports, IPCs, photographs, clarifications provided by the Employer and site verification as required.HCE also undertakes the periodic field visits for progress monitoring and prepare the field visit report.

Till date,HCE has reviewed and verified 14 IPCs (10 IPCS of Civil Works & 4 IPCs of Hydro-mechanical Works)ofConstruction of Civil and Hydro-mechanical Works (Package-2) and 7 IPCs of Construction of Underground Civil Works (Package-3).

Dordi Khola HydropowerProject (27 MW)

Type: Run-of-RiverClient: Himalayan Power Partner

LimitedLocation: Lamjung DistrictCapacity: 27 MWGross head: 212mWeir: Free overflow concrete weirIntake: Side intake Settling basin: Surface, 2 nos. 60 m (l) x 8.5 m (w)Headrace tunnel: 2662 m length, D Shaped Headrace Pipe: 3237 m length, 2.65 m diaPenstock: 700 m length, 2.30 m diaPowerhouse: Surface, Francis turbines


Solu Hydroelectric project is located in Solukhumbu district of Nepal. 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/ financial institutions to raise the required loan financing of the project.

HCE ’s scope of work for this project is to verify the Interim Payment Certificates (IPCs) and Final Payment Certificate issued for the Civil, Hydro-mechanical, Electro-mechanical and Transmission line contracts of the project along with the periodic field visits for progress monitoring.

Solu HydroelectricProject (23.5 MW)

Type: Run-of-RiverClient: Upper Solu Hydro Electric

Company Pvt. Ltd (USHEC)Location: Solukhumbu DistrictCapacity: 23.5 MWGross head: 229.0 mAnnual estimated energy: 132.50GWhWeir: 26.0m longIntake: Side intakeSettling basin: Surface, 1 bay with SEDICONHeadrace pipe: 3900m lengthSurge Tank: Inclined Pipe with Rectangular

ChamberPenstock pipe: 400 m lengthPowerhouse: Surface, 2 units of Vertical Axis

Francis Turbine


Lower HewaKhola Hydropower Project is located in Panchthar district of Nepal. The project is a Run-of-River scheme with a design discharge of 14.84 m3/sand 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/

financial institutions to raise required debt financing for the project.

HCE ’s scope of works for this project is to verify the interim payment certificates (IPCs) and final payment certificate issued for Civil, hydro-mechanical, electro-mechanical and transmission line contracts of the project along with the periodic field visits for progress monitoring.

Lower Hewa Khola Hydropower Project (21.6 MW)

Type: Run-of-RiverClient: Mountain Hydro Nepal Limited

(MHNL)Location: Panchthar DistrictCapacity: 21.6 MWGross head: 175.50 mDesign Discharge: 14.84 m³/sAnnual estimated energy: 116.26GWhWeir: Free overflow type concrete weir

at Hewa Khola and Pheme KholaIntake: Side intakesSettling basin: Surface, 2 bays both at Hewa and

Pheme KholaHeadrace Tunnel: 5454.8 m length, 3.5m diaPenstock pipe 660 m length, varying 2.6 m to 1.44 m diaPowerhouse: Surface, 3 units of Francis

Turbine


Upper Khimti II hydropower project is located in Ramechhap district of Nepal. Himalya Urja Bikas Company Limited (HUBCL) is the developer of the project whereas the Nabil bank limited is the lead bank of the consortium of banks/financial institution to raise the required loan financing of the project.

HCE’s Scope of works for this project is to verify the interim payment certificated (IPCs) and final payment certificate issued for civil, hydro-mechanical, electromechanical and transmission line contract of the project along with the periodic field visits for progress monitoring.

Uppllo Khimti (12 MW) and Upper Khimti II HPP (7MW)

Type: Run-of-RiverClient: Himalaya Urja Bikas Company

ltdLocation: Ramechhap DistrictCapacity: 12 & 7 MWNet head: 285.84 & 131.52mDesign discharge: 5.16 & 6.45 m3/sAnnual estimated energy: 73.61 & 42.29 GWhDiversion Wier: Free overflow concrete weirIntake: Side intakeSettling basin: Surface, 2 bayHeadrace Pipe: 3790 & 3070 mPowerhouse: Surface with Pelton turbine & Surface with Francis turbine


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.

Tamakoshi V Hydroelectric Project (99 MW)

Type: Cascade Project from Upper Tamakoshi

Client: Nepal Electricity Authority(NEA)

Location: Dolakha DistrictCapacity: 99 MWGross head: 181mAnnual estimated energy: 483.12GWhDiversion weir: Underground Structure

Cascaded Diversion form Upper Tamakoshi Tailrace

Headrace tunnel: 8485mPenstock pipe: Underground, Drop ShaftPowerhouse: Underground


SN Name of Projects and Short Description Client Place of Work

International Projects

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

Kenya Tea Develoment Agency (KTDA), Kenya

Nyeri County, Kenya

2 JamshillTuren More Hydropower Project (260 MW): Review of previous studies, geological study, review of geo-technical investigations and geo-physical 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 Energy Development Organization

Chitral District, Khyber Pakhtunkhwa, Pakistan

4 Uileann 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

National Projects

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

Department of Electricity Development (DoED), Government of Nepal (GoN)

Solukhumbu District, Central Nepal

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

DoED, GoN Solukhumbu District, Central Nepal

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

DoED, GoN Pyauthan District, Mid-westren Nepal

4 Sediment Management of Run-of River Hydropower Projects of Nepal Water and Energy Commission Secretariat, GoN

Nepal

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

Peoples Energy Limited Dolakha District, Central Nepal

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

SahasUrja Limited Solukhumbu District, Central Nepal

7 Middle Tamor Hydropower Project (73 MW): Due Diligence Appraisal Nepal Investment Bank Limited

Taplejung District, Eastern Nepal

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

Sindhupalchok District, Central Nepal

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

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

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

Sanima Bank Limited/Pancthar Power Company

Panchthar District, Eastern Nepal

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

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

Mai Valley Hydropower Pvt Ltd

Ilam District, Eastern Nepal

Completed Projects of Hydro-Consult Engineering Limited


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

Panchakanay Mai Hydorpower Limited

Ilam District, Eastren Nepal

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

Khudi Hydropower Limited

Lamjung District, Western Nepal

16 Thapa 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

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

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

Myagdi District, Western Nepal

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

20 Mai Cascade Hydropower Project IPC varification (7 MW) Sanima Mai Hydropower Ltd.

Illam District

21 Midim Khola (Karapu) Hydropower Project (3 MW) Union Hydropower Pvt. Ltd.

Lamjung District

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

23 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

24 Bagmati Small Hydropower Project (20 MW): Due Diligence Appraisal Mandu Hydrropower Limited

Makwanpur District, Central Nepal

25 Upper Mardi Khola Hydropower Projcet (7 MW) Prime Commercial Bank Ltd.

Kaski District

26 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

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

28 Upplo Khimti Hydropower Project (12 MW): Due Diligence Appraisal Himalayan Urja Bikash Company Pvt Ltd

Ramechhap District, Central Nepal

29 Upper Khimti II Hydropower Project (7MW): Due Diligence Appraisal Himalayan Urja Bikash Company Pvt Ltd

Ramechhap District, Central Nepal

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

Jal Urja Private Ltd Darchula District, Far Western Nepal

31 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

32 Middle 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

33 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

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

NMB Bank Limited Ilam District, Eastern Nepal


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

Prime Bank Limited Lamjung District, Western Nepal

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

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

Nepal Bank Limited Darchula District, Far Western Nepal

38 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

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

Nyadi Hydropower Limited Lamjung district, Western Nepal

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


Manang district; Western Nepal

41 BheriBabai 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

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

Aadishakti Bidhut Bikas Company Pvt Ltd

Nuwakot district, Central Nepal

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

Lamjung and Tanahun districts, Western Nepal

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


Syangjha district; Western Nepal

45 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

46 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

47 Study 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

48 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

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


Pyuthan district; Mid-western Nepal

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

Baglung district; Western Nepal

51 NyasimKhola 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

52 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

53 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


54 Rural 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

55 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 district, Eastern Nepal

56 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 district, Central Nepal

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

SWECO Norway Dolakha district, Central Nepal

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

Department of Electricity Development

Eastern Nepal Western Nepal

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


60 Upper 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

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


Solukhumbu district, Eastern Nepal

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

USAID, Kathmandu Western Nepal

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

Department of Electricity Development /IRD

Dolakha district, Central Nepal

64 Field 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

65 Khimti 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

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


67 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.


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


Central Nepal

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

Sanima Hydropower Project


70 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 Resources, Department of Electricity


71 Low 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 Ramechhap districts, Central Nepal

72 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 district, Central Nepal

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

Melamchi Water Supply Development Board

Central Nepal

74 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 Meteorology/ Netherlands Development Assistance (NEDA)


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

BC Hydro, Canada Dolakha district, Central Nepal

76 TrishuliKhola 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

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

Lamjung Electricity Development Company Ltd

Lamjung district, Western Nepal

78 Access 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 Development Company Ltd

Lamjung district, Central Nepal

79 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 Meteorology

Central Nepal

80 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

81 Preparation of Civil Works Guidelines for Micro-hydropower in Nepal Intermediate Technology Development Group (ITDG)

82 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

83 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.


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


Syangja district, Western Nepal

85 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 Corporation (IFC)


86 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


87 NayapulKirne 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

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

United Mission to Nepal Syangja district, Western Nepal

89 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.


90 Kali 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)


91 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

92 Micro-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

93 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

94 Andhi 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.



95 Tinau 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



Figures in NRs. Note As at 32nd Ashad 2075 As at 31st Ashad 2074

ASSETSNon-Current Assets

Property, plant and equipment 3 13,723,669 11,484,198 Intangible assets 4 1,463,565 1,951,421

Financial assetsTrade receivables 5 948,819 188,628

Other financial assets 6 111,490 105,000 Other non-current assets 7 2,697,753 2,697,753 Deferred-tax Assets 10 929,426 988,994

Total Non-Current Assets 19,874,722 17,415,994 Current assets

Financial assetsTrade receivables 5 55,196,274 35,608,243 Cash and cash equivalents 8 32,375,485 35,604,822 Bank balance other than cash and cash equivalents 9 6,074,777 4,826,916 Other financial assets 6 19,723,546 8,476,196

Other current assets 7 624,979 2,394,142 Current tax (net) 10 6,579,041 8,926,134 Total current assets 120,574,102 95,836,453 Total assets 140,448,824 113,252,447 EQUITY AND LIABILITIESEquity

Equity share capital 11 14,723,100 14,723,100 Reserves 12 87,727,746 64,978,442

Total Equity 102,450,846 79,701,542 LiabilitiesNon-Current Liabilities

Provisions 13 509,638 747,161 Other non-current liabilities 14 1,492,873 3,663,077

Total Non-Current Liabilities 2,002,511 4,410,238 Current Liabilities

Financial liabilitiesTrade payables 15 2,767,641 2,096,753 Other financial liabilities 16 15,181,131 8,521,422

Provisions 13 4,218,321 4,331,822 Other current liabilities 14 13,828,374 14,190,670

Total Current Liabilities 35,995,467 29,140,667 Total Liabilities 37,997,978 33,550,905 Total Equity and Liabilities 140,448,824 113,252,447

HYDRO-CONSULT ENGINEERING LTD.Statement of Financial Position

As at 32 Ashad 2075 (16 July 2018)

Notes 1-28 are integral part of these financial statements.


Rabindra RanjitAsst. Manager Finance

Date: 17 Mangsir 2075Place: Kathmandu, Nepal


Pratik Man Singh PradhanDirector

Radheshyam ShresthaDirector

Murali Prasad SharmaDirector

C.A. Prabin Dhoj JoshiPrabin Joshi & Co.

Chartered Accountants

As per our report of even date


HYDRO-CONSULT ENGINEERING LTD.Statement of Profit or Loss and Other Comprehensive Income

As at 32 Ashad 2075 (16 July 2018)










Notes 1-28 are integral part of these financial statements.As per our report of even date

Figures in NRs. Note 2074-75 2073-74

Revenue from operations 17 169,059,661 119,601,558 Cost of revenue 18 (111,794,975) (84,607,937)Gross Profit 57,264,686 34,993,621 Other income 19 3,629,716 1,046,625 Administrative Expenses 20 (26,758,151) (20,349,348)Finance Income 21 2,363,314 1,712,387 Finance Cost 22 (58,058) (25,110)Profit Before Tax 36,441,507 17,378,175 Income Tax Expense (9,817,702) (4,551,758)Current tax 10 (9,758,136) (4,335,465)Deferred tax credit/charge 10 (59,566) (216,294)Profit from continuing operations 26,623,805 12,826,416 Net Profit for the year 26,623,805 12,826,416 Other comprehensive Income: Other comprehensive Income not to be reclassified to profit or loss in subsequent periods

i. Re-measurement (losses) / gains on post employment defined benefit plans - (55,930)

ii. Tax relating to items that will not be reclassified to profit or loss - 13,983 Other comprehensive gain/(loss) for the year, net of tax - (41,947)Total Comprehensive gain/(loss) for the year, net of tax 26,623,805 12,784,470 Earnings per equity share of Rs. 100 each Basic Earnings per share - Rs. 23 180.83 87.12 Diluted Earnings per share - Rs. 23 180.83 87.12


Figures in NRs. Share capital Retained earnings Total

Balance at 1 Shrawan 2073 11,778,500 58,393,183 70,171,683 Profit for the year - 12,826,416 12,826,416 Other comprehensive income - (41,947) (41,947)Total comprehensive income - 12,784,469 12,784,469

Dividends to shareholders - (3,254,611) (3,254,611)Bonus Share Issued 2,944,600 (2,944,600) - Balance at 31 Ashad 2074 14,723,100 64,978,441 79,701,541 Profit 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

HYDRO-CONSULT ENGINEERING LTD.Statement of Changes in Equity

As at 32 Ashad 2075 (16 July 2018)












HYDRO-CONSULT ENGINEERING LTD.Statement of Cash Flow

As at 32 Ashad 2075 (16 July 2018)











Figures in NRs. 2074-75 2073-74

CASH FLOWS FROM OPERATING ACTIVITIES Profit for the year 36,441,507 17,378,175 Adjustments for: Depreciation on property, plant and equipment 3,049,761 2,746,252 Amortization of Intangible Assets 487,855 447,122 Provision for employee benefits (351,024) (177,548) Provision for Bonus 3,644,190 1,737,817 Finance income (822,740) (441,367) Loss/ (gain) on sale of Property, plant and equipment - (3,070) Unrealized foreign exchange difference on cash and cash equivalents (166,045) 104,014 Working capital adjustments: Increase/ (decrease) in Trade receivables (20,348,222) (14,837,640) Increase/ (decrease) in other financial assets (1,253,840) 897,883 Increase/ (decrease) in other current assets 521,302 (7,913,405) (Increase) / decrease in Trade payables 670,889 652,568 (Increase) / decrease in other financial liabilities 4,716,962 588,560 (Increase) / decrease in other liabilities (2,532,500) 10,352,151 Cash generated from operations 24,058,095 11,531,513 Bonus paid (1,701,443) (2,063,338) Income Tax Paid (7,411,041) (2,880,891) NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 14,945,611 6,587,284

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of Property, Plant and Equipment 601,741 73,092 Acquisition of Property, plant and Equipment (5,890,973) (9,882,535) Investment In Fixed Deposit (10,000,000) - Interest Received on Fixed Deposit 822,740 441,367 Purchase of Intangibles - (975,024) NET CASH FLOWS FROM INVESTING ACTIVITIES (B) (14,466,492) (10,343,100)

CASH FLOWS FROM FINANCING ACTIVITIES Dividend paid (3,874,500) (3,254,611) NET CASH FLOWS FROM FINANCING ACTIVITIES (C) (3,874,500) (3,254,611) INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C) (3,395,382) (7,010,427) Net foreign exchange difference on cash and cash equivalents 166,045 (104,014) Cash and cash equivalents, Beginning of Year 35,604,822 42,719,263

CASH AND CASH EQUIVALENTS, End of Period 32,375,485 35,604,822


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, fixed 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 financial statements apply to the financial year ended on 32nd Ashad 2075 (16 July 2018).

The accompanied financial statements have been authorized for issue by the Board of Directors of the HCE in its meeting held on 17 Mangsir, 2075 (03 December, 2018) and has presented to annual general meeting of its shareholders for approval.

Note 2: Significant accounting policies

2.1 Basis of preparation and measurement

i. Statement of Compliance

The financial 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 presentational requirements of the Company Act, 2063 of Nepal.

ii. Basis of preparation

The financial statements are prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements. All assets and liabilities have been classified 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 classification of assets and liabilities.

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

iii. Basis of measurement

These financial 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 financial 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 financial 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 significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year primarily includes:-

Useful life and residual value of property, plant and equipment

Management reviews the useful life and residual values of property, plant 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 efficiency and operating costs. Accordingly, depreciable lives are reviewed annually using the best information available to the Management.

Impairment of property plant and equipment

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant 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

Hydro-Consult Engineering Limited (HCE)Notes to the financial statements for the year ended 32nd Ashad 2075 Figures in NRs.


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 flows. 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 flow 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 difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

Recognition of deferred tax assets

Significant 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 profits together with future tax planning strategies. The Company based its assumptions and estimates on parameters available when the financial 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, plant and equipment

i. All items of property, plant 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 benefits associated with the item will flow 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 profit and loss during the reporting period in which they are incurred.

iii. The Company identifies and determines cost of each component/ part of the asset separately, if the component/ part has cost which is significant 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, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

v. An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits 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 profit 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, plant 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 finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Intangible assets with indefinite 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 significant benefits expected to flow 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 profit 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 fixed 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%

Office equipment 10-11 years 25%Furniture and fixtures 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 identified, 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 identified.

ii. Intangible assets with indefinite 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 flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows 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 Profit 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 Profit 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 insignificant 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 satisfied:

i. The amount of revenue can be measured reliably,

ii. It is probable that the economic benefits associated with the contract will flow 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 profits (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 financial asset is recognised when it is probable that the economic benefits will flow 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 financial 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 financial 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 Profit and Loss in the period in which they arise.

2.12 Employment Benefits

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

Defined contribution plan – Provident Fund

Under defined contribution plans i.e. provident fund, the Company pays pre-defined amounts to separate funds


and does not have any legal or informal obligation to pay additional sums. Contributions to defined contribution schemes (Provident fund) are charged to the profit or loss statement in the year to which they relate as the company has no further defined obligations beyond monthly contributions. Contributions to defined contribution schemes are deposited with Employees Provident Fund (Karmachari Sanchaya Kosh).

Defined 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 defined benefit plan. Contribution of 8.33% of basic salary needs to be deposited on monthly basis to the separate Social Security Fund. Total gratuity obligation calculated as per previous labor act till the transition date also needs to be deposited to the Social Security Fund. As on date, the procedure for depositing in Social Security Fund has not been finalized by the Government of Nepal (GoN).

Short term and long-term employment benefits

i. A liability is recognised for benefits 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 benefits expected to be paid in exchange for that service.

ii. Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits 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 benefit 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 fiscal year 2072-73. Tax withheld at Kenya till previous years (fiscal year 2072-73) as per income tax returns of fiscal year 2072/73 is NRs. 10,106,283. Company has filed for administrative review of reassessment order with Inland Revenue Department (IRD) for matter relating to foreign tax credit of fiscal year 2069/70. The carried forward balances till FY

2072/73 shall be adjusted in the books upon receiving final decision by Inland Revenue Department (IRD).

Income Tax

Income tax on the profit or loss for the year comprises current taxes and deferred taxes. Income tax is recognized in the profit 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% as well).

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 financial 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 profits 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 sufficient taxable profits 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 profit/ (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 profit/ (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 profit 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 outflow of resources embodying economic benefits 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 profit 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 reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

v. A provision for onerous contracts is recognised when the expected benefits 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 confirmed 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 outflow 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 financial statements.

vii. A contingent asset is a possible asset that arises from past events and whose existence will be confirmed 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 financial liabilities are recognised when the Company becomes a party to the contract embodying the related financial instruments. All financial assets, financial liabilities and financial 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 financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit and loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. Transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately recognised in the statement of profit 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 financial 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 financial instrument, or where appropriate, a shorter period.

Income/ expense arising on financial instruments after applying an effective interest rate is recognised in Statement of Profit and Loss and is included in the “Other finance income” or “Other finance cost” line item.


iii. Financial assets

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business model whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows 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 financial assets are held within a business model whose objective is either to hold these assets in order to collect contractual cash flows or to sell these financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows 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 Profit and Loss.

For financial 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 financial assets

Loss allowance for expected credit losses is recognised for financial assets measured at amortised cost and fair value through the statement of profit 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 financial assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the financial asset expire, or it transfers the financial asset and the transfer qualifies 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 financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On de-recognition of a financial 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 Profit or Loss unless it the financial 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

Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial 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 significant. 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 Profit 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 specified 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 financial liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification 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 profit and loss.

v. Off-setting of financial instruments

Financial assets and financial 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 financial 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-financial asset takes into account a market participant’s ability to generate economic benefits 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 sufficient 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 financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant 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 significant to the fair value measurement is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant 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 fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

A lease is classified at the inception date as a finance 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 classified as a finance 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 finance 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 finance costs in the statement of profit 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 profit 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 benefit 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 inflation to compensate for the lessor’s expected inflationary cost increases. If payments to the lessor vary because of factors other than general inflation, then this condition is not met.

The lease amount payable in respect of operating lease is:

Aging Period Amount (NRs.)Up to 1 year 4,334,088.00 1-5 years 24,667,419.00 Above 5 years 8,032,702.00 Total 37,034,209.00

2.18 Financial risk management objectives and policies

The Company’s business activities expose it to a variety of financial risks, namely primarily to fluctuations in foreign currency exchange rates, liquidity and credit risk, which may adversely impact the fair value of its financial 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 reflect 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 financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, 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 32nd Ashad, 2075, there is unhedged exposure to the Company on holding financial 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 significant risk management has not entered into any forward contract.

The following table demonstrates the unhedged exposure in USD with corresponding equivalent NRs. as at Ashad 32, 2075:-

Particulars Currency Ashad 32, 2075

Cash and bank balance

NRs. 2,757,390USD 25,218.49

Trade Receivables

NRs. 8,462,342USD 77,394.75

b. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial 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 financial 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 financial position as financial liabilities.

c. Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure that it will have sufficient 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 flow could create potential business continuity risk.

The Company maintained a cautious funding strategy, with a positive cash balance throughout the year ended 32 Ashad, 2075 and 31 Ashad, 2074. Cash flow from operating activities provides the funds to service the financing of financial liabilities on a day-to-day basis. The Company's Finance department regularly monitors


the cash position to ensure it has sufficient 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 sufficient liquidity to provide sufficient 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 profitable growth to superior cash generation through efficient 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 confidence 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 financial flexibility for potential

future borrowings, if required, without impacting the risk profile 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 32nd Ashad 2075 and 31st Ashad 2074.

2.20 Cross Border Transactions

There is no cross boarder transaction in the current year. In previous year, company had revenue of NRs. 11.11 million and related cost of NRs. 9.92 million and resultant profit of NRs. 1.18 million from business service provided in Kenya.

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) (the "Act") introduced with effect from November 22, 2016 repealing the Industrial Enterprises Act 1992 (2049 BS) (the "Previous Act").

Section 48 of Industrial Enterprises Act 2016 (2073 BS) makes it mandatory to allocate 1% of the annual profit to be utilized towards corporate social responsibility (the “CSR Requirement”).


Figures in NRs. Note: 3

Property, plant and equipment Vehicles Office Equipment

Furniture and Fixture Computers Engineering

Equipments Total

CostBalance at 1 Shrawan 2073 1,054,792 1,198,380 269,986 3,069,990 114,748 5,707,897 Additions 4,685,600 878,735 3,463,073 807,227 47,900 9,882,535 Disposals - (59,624) (2,626) (45,623) (6,651) (114,524)Balance at 31 Ashad 2074 5,740,393 2,017,491 3,730,433 3,831,593 155,997 15,475,908 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 Depreciation and impairment lossesBalance at 1 Shrawan 2073 275,722 250,702 64,909 687,493 11,133 1,289,959 Charge for the year 955,746 374,237 658,676 739,784 17,808 2,746,252 Disposals - (21,546) (1,149) (19,960) (1,846) (44,501)Balance at 31 Ashad 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 Net book valueAt 1 Shrawan 2073 779,070 947,678 205,077 2,382,497 103,615 4,417,938 At 31 Ashad 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 a) The company does not have any capital commitment at the year end.

HYDRO-CONSULT ENGINEERING LTD.Notes to the financial statements for fiscal year 2074-75


Figures in NRs.

HYDRO-CONSULT ENGINEERING LTD.Notes to the financial statements for fiscal year 2074-75

Note: 4Intangible assets Computer Software TotalBalance at 1 Shrawan 2073 1,898,025 1,898,025 Additions - Externally acquired 975,024 975,024 Balance at 31 Ashad 2074 2,873,049 2,873,049 Additions - Externally acquired - - Balance at 32 Ashad 2075 2,873,049 2,873,049 Amortization and impairment lossesBalance at 1 Shrawan 2073 474,505 474,505 Charge for the year 447,122 447,122 Impairment losses - - Balance at 31 Ashad 2074 921,627 921,627 Charge for the year 487,855 487,855 Impairment losses - - Balance at 32 Ashad 2075 1,409,482 1,409,482 Net book valueAt 1 Shrawan 2073 1,423,520 1,423,520 At 31 Ashad 2074 1,951,421 1,951,421 At 32 Ashad 2075 1,463,565 1,463,565


Note no: 5Trade receivables

ParticularsAs at 32nd Ashad 2075 As at 31st Ashad 2074

Current Non-Current Current Non-CurrentUnsecured, considered goodSundry Debtors 54,573,561 - 36,968,104 - Retention Money held by the Customers 2,629,712 948,819 1,625,415 188,628

57,203,273 948,819 38,593,519 188,628 Unsecured, considered doubtfulLess: Allowances for doubtful receivables (2,006,999) - (2,985,276) -

55,196,274 948,819 35,608,243 188,628 Sundry debtors includes amount receivable from Kenya Tea Development Ltd. amounting to Rs. 8.46 million which has remained outstanding for more than one year. Company considers this amount to be good and accordingly, impairment allowance is not provided.

Note no: 6Other Financial Assets


Current Non-Current Current Non-CurrentAdvance to employee 226,036 - 212,311 - Trade and Security Deposit - 111,490 - 105,000 Accured Contract Revenue 9,259,368 - 8,263,885 - Fixed Deposit 10,000,000 - - - Gratuity Fund Receivables 9,101 - - - Interest Receivable 229,041 - - -

19,723,546 111,490 8,476,196 105,000

Note no: 7Other current and non-current assets


Current Non-Current Current Non-CurrentAdvance to Supplier/Contractor/Sub Contract 420,419 - 2,211,765 - Deposit with Government authorities - 2,697,753 - 2,697,753 Prepayments 204,560 - 182,377 -

624,979 2,697,753 2,394,142 2,697,753

Note no: 8Cash and cash equivalents

Particulars As at 32nd Ashad 2075 As at 31st Ashad 2074Balance with BanksIn current account 540,591 518,396 In call account 25,700,997 33,063,624 In convertible currencies account 2,757,390 2,010,361 Cash on hand 6,365 12,441 Cheques on hand 3,370,142 -

32,375,485 35,604,822

Note no: 9Bank balance other than cash and cash equivalentsParticulars As at 32nd Ashad 2075 As at 31st Ashad 2074Earmarked balance with BanksMargin money accounts 6,074,777 4,826,916

6,074,777 4,826,916 Note: This relates to margin amount frozen in our bank account, for advance payment guarantees issued which shall be settled in different dates within March 2019. Detail of such gurantees are given in contingent liability note no. 28


Note no: 10Income TaxesA. Tax expense recognized in the Statement of Profit and Loss

Year ended 32 Ashadh, 2075


Current income tax charge 9,758,136 4,335,465 Adjustment for under provision in prior periods - - Deferred tax credit/(charge)Origination and reversal of temporary differences 59,566 216,294 Adjustments/(credits) related to previous years - (net)Income tax expense reported in statement of Profit or Loss 9,817,702 4,551,759 B. Tax expense recognized in Other comprehensive income



Deferred taxAdjustments/(credits) related to previous years - (net) - 13,983 Income tax charged to OCI - 13,983

C. Current tax asset / (liability) -net: Year ended 32 Ashadh, 2075


Advance Income Tax 16,337,177 13,261,598 Less: Income Tax Liability (9,758,136) (4,335,464)Total 6,579,041 8,926,134 Advance income tax presented is the net amount of advance tax till current year and income tax provision till previous year.D. Reconciliation of tax liability on book profit vis-à-vis actual tax liability



Accounting Profit/ (Loss) before income tax 36,441,507 17,378,175 Enacted tax rate 25.00% 24.65%Computed tax expense 9,110,377 4,283,126 Differences due to: Tax effect due to non taxable income (495,386) (768)Due to difference in Depreciation Rate (64,978) (167,644)Effect due to non deductible expenses 1,208,123 220,750 Income tax expense charged to the statement of Profit or Loss and OCI

9,758,136 4,335,465

E. The movement in deferred tax assets and liabilities during the year ended 31 Ashadh, 2074 and 32 Ashadh, 2075:

i. Movement during the year ended 31 Ashadh, 2074 As at 1 Shrawan, 2073

Credit/(charge) in the Statement of Profit and Loss

Credit/(charge) in Other

Comprehensive Income

As at 31 Ashad, 2074

Deferred tax assets/(liabilities)Provision for leave encashment 386,778 (32,638) - 354,140 Provision for gratuity 194,305 (136,163) 13,983 72,125 Depreciation (112,340) (168,412) - (280,752)Provision for PLI 722,563 120,919 - 843,482

1,191,306 (216,295) 13,983 988,994

ii. Movement during the year ended 32 Ashadh, 2075 As at 1 Shrawan, 2074

Credit/(charge) in the Statement of Profit and Loss

Credit/(charge) in Other

Comprehensive Income

As at 32 Ashadh, 2075

Deferred tax assets/(liabilities)

Provision for leave encashment 354,140 39,360 - 393,499 Provision for gratuity 72,125 (72,125) - - Provision for CSR - 93,165 - 93,165 Depreciation (280,752) (64,978) - (345,730)Provision for PLI 843,482 (54,991) - 788,491

988,994 (59,568) - 929,426


Note no: 11Equity Share Capital

ParticularsAs at 32 Ashad, 2075 As at 31 Ashad, 2074

No. of Shares Amount No. of Shares AmountA. Equity SharesAuthorizedEquity Shares of NRs. 100 each 500,000 50,000,000 500,000 50,000,000 IssuedEquity Shares of NRs. 100 each 300,000 30,000,000 300,000 30,000,000 (1.5 Crores of Equity Shares out of 3 Crores) Subscribed and Fully PaidEquity Shares of NRs. 100 each 147,231 14,723,100 147,231 14,723,100 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 till 2075/08/06.B. Reconciliation of the number of shares outstanding at the beginning and end of the year

As at 32 Ashad, 2075 As at 31 Ashad, 2074No. of Shares No. of Shares

Balance as at the beginning of the year 147,231 117,785 Add: Issue of Bonus Share - 29,446 Balance as at the end of the year 147,231 147,231 C. Details of shareholdingParticulars As at 32 Ashad, 2075 As at 31 Ashad, 2074

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 sharesThe 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: Declared dividends and proposed dividends As at 32 Ashad, 2075 As at 31 Ashad, 2074Declared and approved for during the year: Dividends on ordinary shares: Final dividend for 2073-74: NRs. 26.32 per share (2072-73: NRs. 27.63 per share)

3,874,500 3,254,611

Proposed for approval at the annual general meeting Dividends on ordinary shares: Proposed dividend for 2074-75: **** per share (2073-74: NRs. 26.32 per share)

3,874,500

Note no: 12Reserves

Retained arnings Total Balance at 1 Shrawan 2073 58,393,183 58,393,183 Profit for the year 12,826,416 12,826,416 Other comprehensive income (41,947) (41,947)Dividends to shareholders (3,254,611) (3,254,611)Bonus Share Issued (2,944,600) (2,944,600)Balance at 31 Ashad 2074 64,978,442 64,978,442 Profit for the year 26,623,805 26,623,805 Other comprehensive income - - Dividends to shareholders (3,874,500) (3,874,500)Bonus Share Issued - - Balance at 32nd Ashad 2075 87,727,747 87,727,746


Note no: 13Provisions


Current Non-Current Current Non-CurrentProvision for Gratuity - - - 288,501 Provision for Leave money 1,064,359 509,638 957,896 458,660 Provision for Performance Link Incentive 3,153,962 - 3,373,926 -

4,218,321 509,638 4,331,822 747,161

Note no: 14Other current and non-current liabilities


Current Non-Current Current Non-CurrentAdvance from Customers 6,008,256 1,492,873 7,675,157 3,663,077 VAT Payable 6,162,248 - 5,006,810 - Statutory dues 1,657,870 - 1,508,703 -

13,828,374 1,492,873 14,190,670 3,663,077

Note no: 15Trade Payables


Current Non-Current Current Non-CurrentSundry creditor 2,767,641 - 2,096,753 -

2,767,641 - 2,096,753 -

Note no: 16Other financial liabilities


Current Non-Current Current Non-CurrentRetention money Payable 624,500 - 494,500 - Advance payable to JV 2,646,075 - 2,646,075 - Bonus Payable 3,686,134 - 1,743,387 - Employee related accural 3,002,216 - 2,315,545 - Other payables 5,222,206 - 1,321,915 -

15,181,131 - 8,521,422 -


Note no: 17Revenue from operations:

Year ended 2074-75 Year ended 2073-74Consultancy services 168,064,178 117,583,020 Add: Income/(Expenses) recognized due to stage of completion 995,483 2,018,538

169,059,661 119,601,558 Note no: 18Cost of revenue

Year ended 2074-75 Year ended 2073-74Engineering and consultancy expenses 32,584,557 21,409,119 Salaries and other employee cost 66,452,660 53,334,280 Staff bonus 3,280,713 1,413,090 Contribution towards Provident and Gratuity Fund 1,391,215 613,411 Defined benefit plan expenses - 412,805 Field expenses 6,987,025 5,957,255 Vehicle operation 1,098,805 1,467,977

111,794,975 84,607,937 Note no: 19Other income

Year ended 2074-75 Year ended 2073-74Foreign currency exchange gain 656,379 100,254 Gain (Loss) on sale of assets - 3,070 Miscellaneous income 2,973,337 943,301

3,629,716 1,046,625 Note no: 20Administrative and other operating expenses

Year ended 2074-75 Year ended 2073-74Salaries and other employee cost 7,362,422 5,702,961 Contribution towards Provident and Gratuity Fund 291,941 177,435 Staff bonus 363,477 324,727 Defined benefit plan expenses - 51,461 Staff welfare 977,330 1,032,609 Advertisement and business promotion 149,425 704,492 AGM and board expenses 709,480 359,566 Audit fee & expenses 189,235 165,657 Communication expenses 441,096 478,034 Gift and donation 15,397 32,328 Hospitality and refreshment 73,882 59,732 Insurance 323,012 263,176 Legal and professional expenses 205,850 180,500 Office running cost 1,367,903 932,388 Printing and stationery 1,481,964 972,202 Repair and maintenance 65,965 178,100 Training and development 589,909 358,140 Travelling expenses 465,383 307,087 Provision for doubtful debts 501,750 117,194 Assets written off - 43,093 Support staff expenses 794,077 536,466 Miscellaneous expenses 104,940 88,780 Rent 4,375,419 4,089,846 Depreciation & amortisation 3,537,616 3,193,374 Previous Year Tax Expenses 2,002,582 - CSR expenses 368,096 -

26,758,151 20,349,348 Note no: 21Finance income

Year ended 2074-75 Year ended 2073-74Interest income 2,363,314 1,712,387

2,363,314 1,712,387


Note no: 22

Finance cost

Year ended 2074-75 Year ended 2073-74Bank Charges & Commission 58,058 25,110

58,058 25,110 Note no: 23

Earnings per share

Year ended 2074-75 Year ended 2073-74Profit for the year 26,623,805 12,826,416 Weighted average number of equity shares outstanding 147,231 147,231 Earnings Per Share (NRs.) - Basic (Face value of NRs. 100 per share) 180.83 87.12 Earnings Per Share (NRs.) - (Face value of NRs. 100 per share) 180.83 87.12 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) 180.83 87.12

Note no: 24

Employee benefits expenses included in the statement of profit or loss:

Particulars Year ended 2074-75 Year ended 2073-74 Included in Cost of Sales 71,124,588 55,773,586 Administrative and other operating expenses 8,995,170 7,289,193

80,119,758 63,062,779

Note no: 25

Disclosure in terms of NAS 11 - Construction contracts

Particulars As at 31 Ashad 2075 As at 31 Ashad 2074Contract revenue recognized during the year 169,059,661 119,601,558 Amount of customer advances outstanding 7,501,129 11,338,234 Retention money due from customers for contracts in progress 3,578,531 1,814,043 Gross amount due from customers for contract works as an asset (unbilled portion) (net of provision for doubtful debt receivable)

9,259,368 8,263,885

Gross amount due to customers for contract works as a liability - -

Revenue recognised on percentage completion basisAs described in Note 2.10 (i), revenue on ongoing contracts are recognized on percentage completion basis.Cumulative amount not yet invoiced to customer 9,259,368 8,263,885 Less: amount already accounted in previous year 8,263,885 6,245,347 Revenue recognized on current year 995,483 2,018,538


Note no: 26Financial Instruments: Classifications and fair value measurements

"Fair value of financial assets and financial 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 financial assets and financial liabilities recognized in the financial statements approximate their fair values."

As at 31 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 financial assets 19,835,036 - - 19,835,036 Total Financial Assets 114,430,391 - - 114,430,391

Financial LiabilitiesFinancial liabilities carried at amortized cost: Trade payables 2,767,641 - - 2,767,641 Other financial liabilities 15,181,131 - - 15,181,131 Total Financial Liabilities 17,948,772 - - 17,948,772

As at 31 Ashad 2074 Carrying value

Level 1 Level 2 Level 3

Financial AssetsFinancial assets carried at amortized costTrade receivables 35,796,871 - - 35,796,871 Cash and cash equivalents 35,604,822 - - 35,604,822 Bank balance other than cash and cash equivalents 4,826,916 - - 4,826,916 Other financial assets 8,581,196 - - 8,581,196 Total Financial Assets 84,809,805 - - 84,809,805

Financial Liabilities Financial liabilities carried at amortized cost: Trade payables 2,096,753 - - 2,096,753 Other financial liabilities 8,521,422 - - 8,521,422 Total Financial Liabilities 10,618,175 - - 10,618,175


Note no: 27Related party disclosures(a) RelationshipThe company is controlled by Butwal Power Company Limited which owns 80% of the company ’s shares. Relationship Related PartiesHolding Company Butwal Power Company Limited

Subsidiaries of Holding Company

BPC Services LimitedNepal Hydro & Electric LimitedNyadi Hydropower LimitedKhudi Hydropower Limited

(b) Those charged with governanceThose charged with governance of the Hydro-consult Engineering Limited include members of Board of directors namely: i) Mr. Uttar Kumar Shrestha Chairpersonii) Mr. Pratik Man Singh Pradhan Directoriii) Mr. Radheshyam Shrestha Directoriv) Mr. Ratna Sambhav Shakya Alt. Director (BPC)v) Mr. Murali Prasad Sharma Directorvi) Mr. Shiva Kumar Sharma Alt. Director

(PEEDA)The following provides expenses incurred for those charged with governance of BPC.

Nature of Expense Current year Previous year

BoD Meeting Allowances 108,000 81,000 (c) Transactions with key management personnelKey Management personnel includes:

i) Mr. Manohar Shrestha CEOKey Management Personnel compensation :

Particulars Current year Previous Year

Salary and Allowances 4,389,604 3,386,182 Note: - The amounts disclosed in the table are the amounts recognized as an expense during the reporting period related to key management personnel inclusive of encashed leave amount (payment made) which is different from the expenses of leave that is accouted on actuarial basis. (d) Other related party transactions

Name of the related party Nature of transactionTransaction Outstanding balance

Current Year

Previous Year

Current Year

Previous Year

Butwal Power Company Limited Sales invoices 4,930,276 2,932,356 468,995 468,995 Expense for Rent, Electricity and other Charges

4,626,052 4,361,668 - (145,666)

Khudi Hydropower Ltd. Sales invoices 242,725 505,625 - 341,190 Nyadi Hydropower Ltd. Sales invoices 22,992,620 7,766,633 3,690,359 4,160,826

Advance received against consultancy service

(1,930,153) (2,909,090)


Note no: 28Contingent Liabilitya. GuaranteesParticulars Bank Name Purpose Amount Expiry Date

Corporate Guarantee Hydro consult/ITECO/TMS JV

Advance Payment Guarantee for detal engennering design of Sunsari Morang Irrigation Projects headworks,Department of Irrigation

1,980,429 4 December, 2018

Bank Guarantee Sanima Bank Ltd.Advance Payment Guarantee for Nyadi Hydropower Ltd.

2,478,357 9 March, 2019

Corporate Guarantee ITECO/TMS/Hydro consult JV

Advance Payment Guarantee for Irrigation Feasibility Study and Construction Quality Programme, Department of Irrigation

1,616,000 28

September, 2018

b. Income tax mattersThe inland revenue department has opened self-assessment returns filed by the Company for the financial years 2069-70 and demanded additional tax of NRs. 2,609,716.72. The Company has contested the demands as not payable and filed 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 finalized after obtaining decision on the administrative review of fiscal year 2069-70.

During the year, final assessment order for the fiscal year 2070/71 was received from Inland Revenue Office claiming additional tax of Rs. 18,18,266 in full settlement. The company has booked expenses for the stated amount and subsequently paid full amount in Shrawan 2075.


SN Parameters UOM FY 2074/75 FY 2073/74 FY 2072/73Liquidity Ratios

1 Current Ratio x 3.59 3.29 3.10 II Profitability Ratios

Profitability Ratios related to SalesProfit Margins

1 Gross Profit Margin % 35% 24% 35%2 Operating Profit Margin % 22% 14% 20%3 Net Profit Margin % 15% 11% 15%

Expenses4 Operating Expenses Ratio % 83% 89% 81%5 Administrative Expenses Ratio % 17% 11% 19%

Investments Ratio6 Return on Assets % 36% 22% 30%7 Return on Capital Employed % 36% 22% 29%8 Return on Equity % 26% 16% 23%9 Book Value Per Share NRs 695.85 541.34 598.02

10 Earnings Per Share NRs 180.83 87.12 135.77 11 P/E Ratio x NAIII Assets Efficiency Ratios12 Total Assets Turnover Ratio 1.69 1.51 1.55 13 Working Capital Turnover Ratio 2.00 1.85 1.72 IV Capital Structure14 Debt-Equity Ratio x 0% 0% 0%15 Equity to Assets Ratio x 100% 100% 100%

Financial Ratio


LIQUIDITY RATIO

Liquidity ratios show the short term financial solvency of the HCE. These ratios measure the HCE ability to meet short-term obligations as and when they become due. Liquidity ratio of HCE seems satisfactory.

The current ratio was 3.29 in FY 2073/74 and it increased to 3.59 in FY 2074/75. The increase in debtors and receivable from clients has caused increase in current ratio. However HCE has expectation of recovery of provision made regarding bad debt in FY 2074/75.

PROFITABILITY RATIO

The profitability ratio of HCE measures management’s overall effectiveness as shown by the returns generated on sales and investment.

The gross profit margin has increased to 35% in FY 2074/75 from 24% from that of last year (FY 2073/74). The company’s revenue has increased consistently due to completion of few major projects.

Operating Profit Margin and Net Profit Margin has increased to 22 % and 15% in FY 2074/75 compared to 14% and 11% of FY 2073/74 respectively. Looking at the market prospect of the business we are doing and the number of projects in hand, HCE can substantially improve in the profitability ratio. In conclusion, based on the available resources, competency, the present scenario of countries economic environment and the market condition, company has performed well in terms of profitability.

Ratio AnalysisINVESTMENT RATIO

Return on Capital Employed (ROCE) and Return on Equity (ROE) are 36% and 26% respectively in FY 2074/75. These ratios were 22% and 16% respectively in FY 2073/74.

The Book Value per share in this fiscal year has increased to NPR 695.85 from NPR 541.34 in FY 2073/74. Therefore, the Earning per Share (EPS) in this fiscal year has increased to NPR 180.83 from NPR. 87.12 in FY 2073/74.

ACTIVITY RATIO

Activity Ratio measures HCE effectiveness with which it has used its available resources.

Total assets turnover ratio for this fiscal year is 1.69 as compared to 1.51 in FY 2073/74. The increase in ratio is due to the increase in debtors and receivable in the fiscal year. Considering the project in hand, the company will be able to generate more revenue in the comming year that will improve in the ratio with the maximum utilization of the available sources.

The working capital turnover ratio is 2.00 in FY 2074/75 compared to 1.85 of FY 2073/74. This ratio is expected to be improve in FY 2075/76 as the company has number of projects in hand.

GEARING RATIO

HCE is 100 % equity financed in FY 2074/75 also.



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