Determination Thar Coal

National Electric Power Regulatory Authority
Islamic Republic of Pakistan
Registrar
NEPRA Tower, Ataturk Avenue (East) G-511, Islamabad

Ph: +92-51-9206500, Fax: +92-51-2600021
Web: www.nepra.org.pk, E-mail: infonepra.org.pk
No. No. NEPRA/TRF-TCUT/2014/7834-7836

July 9, 2013
Subject: Determination of the Authority in the Matter of Thar Coal Upfront Tariff
Dear Sir,
Please find enclosed herewith the subject Determination of the Authority along with
Annex-1, 1A, 2, 2A, 3, 3A, 4, 4A, 5, 5A, 6, 6A & 7 (43 pages).
The Determination is being intimated to the Federal Government for the purpose of
2.
notification of the approved tariff in the official gazette pursuant to Section 31(4) of the
Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997).
Please note that Order of the Authority at para 51 of the Determination along with
3.
Annex-1, 1A, 2, 2A, 3, 3A, 4, 4A, 5, 5A, 6, 6A & 7 needs to be notified in the official Gazette.
Enclosure: As above
( Syed SafeeriTiiiiRin )
Secretary
Ministry of Water & Power
`A' Block, Pak Secretariat
Islamabad
CC:
1. Secretary, Cabinet Division, Cabinet Secretariat, Islamabad.
2. Secretary, Ministry of Finance, 'Q' Block, Pak Secretariat, Islamabad.
National Electric Power Regulatory Authority

(NEPRA)
*************
Determination of the Authority

In the matter of Thar Coal Upfront Tariff
July
Commentators
1. Riala Hydro Power
2. Mr. Muhammad Arif Bilvani
3. Custom Syndicate
, 2014

in the matter of Thar Coal Upfront Tariff
Background
1.
Thar Power Company Limited (the "Company") is a subsidiary of Sindh Engro Coal Mining
Company Limited (the "SECMC") which is a joint venture between Government of Sindh (the
"GoS") and Engro Group. According to the Company, SECMC was incorporated in 2009 with the
aim of exploring and developing the yet untapped coal reserves in Thar Coal Block II. The Mine and
Minerals Development Department of Sindh has issued a 30 year lease to SECMC for Block II,
which is an area of nearly 96 square km.
2.
NEPRA notified an upfront tariff for power projects based on local and imported coal other than
Thar coal vide its determination dated June 6th 2013. The Upfront Tariff for the projects based on
Thar coal was not determined by the Authority due to its unique issues such as water availability,
quality of Thar coal etc.
3.
The Company through its letter dated January 24, 2014 requested the Authority to announce
upfront tariff for Thar coal based power plants. The Company submitted relevant
data/information to assist the Authority in arriving at an informed decision. The Authority, being
cognizant of the importance of the development of Thar coal and its associated power plants,
decided to initiate Suo moto proceedings on the basis of information / data / documentary
evidences submitted by company in exercise of its powers under rule 3 of the NEPRA (Tariff
Standards and Procedure) Rules, 1998 read with regulation 3 of the NEPRA Upfront Tariff
(Approval & Procedure) Regulations, 2011. In order to provide opportunity to the stakeholders for
meaningful participation, the Authority decided to hold a hearing on April 02, 2014 at the Marriott
Hotel, Karachi. Accordingly, notices of hearing were published in leading newspapers highlighting
the salient features and the proposed figures. In addition to that individual notices were also sent
to key stakeholders who, in the opinion of the Authority, were interested or likely to be affected
by the outcome of the proceedings.
4.
Subsequent to the publication of the key features of the Company's proposal, two
comments/clarifications were received from Custom Syndicates and Riala Hydro Power and one
intervention request from Muhammad Arif Bilvani.
NEPRA
u. AUTHORITY

Comments / Intervention
5.
The intervener, Mr. Muhammad Arif Bilvani objected to the proposed net thermal efficiency of
37% and proposed that the efficiency should be at least 41% by installing super critical boilers
instead of the older version of boiler i.e. subcritical. He stressed upon the Government of Sindh to
provide the necessary infrastructure for the development of Thar coal based power plants. The
intervener objected to the proposal of allowing RoE of 32% as he considered it the highest ever
allowed by the Authority for all technologies and stressed that consumers should be allowed to
have affordable electricity. To attract investors, the intervener proposed 5% spread over LIBOR
instead of the proposed 5.5%. Subsequently, the intervener withdrew its proposal for allowing a
spread of 5% when it came to his knowledge during the hearing that Chinese banks have shown
interest in lending to the project rate of LIBOR + 4.5% spread.
6.
The representative of Custom Syndicate (a coal transportation Company) requested certain

information with regards to; 1) break up of coal transportation cost and; 2) coal pricing
mechanism. Riala Hydro Power while emphasizing a preference of Hydro over Coal opposed to
allowing a higher return to coal over Hydro as the later entail more risk therefore, demand higher
returns.
7.
Most of the participants appreciated Thar coal based power projects and NEPRA's effort to
determine tariff through a judicious and transparent process. Some sought clarification
written/verbal from the project sponsor and NEPRA which were either provided at the time of the
hearing or through a letter sent to the relevant parties. The feedback of the intervener and the
comments of commentators have been considered and have been discussed, where appropriate
in the relevant paragraphs of the determination.
8.
During the hearing, The Company advocated that Thar coal power project is not merely a power
generation scheme but a lifesaver for Thar region. The Company stated that Political leadership of
Pakistan reached a consensus to jointly support this Project and declared it a "Project of National
Importance". The Company informed that although Chinese banks have shown their willingness to
finance the project with LIBOR + 4.5% but in its opinion the spread should be finalized at the time
of financial close subject to a maximum of 5.5%. Due to lack of experience of the Chinese boiler
manufacturer with Lignite coal, the Company stressed that the cost of European boiler like FW,
2

Alstom should be allowed as it is most suitable for the Thar lignite coal power generation. The
Company requested an increase of US$ million 0.1 per MW for this purpose. The Company
requested to increase fixed O&M cost by US$ cent 0.1/Kw/h to cater for additional
administrative and manpower requirement due to the reason that there is going to be two
separate power plants each with 330 MW capacity to be financed by two separate companies with
two different owners.
Issues Framed for Authority's Consideration

9.
The following issues were framed for consideration of the Authority considering the information
provided by the company, comments of stakeholders/general public, intervention request and the
proceedings of the case.
i.
Whether Changes in the Approved Net Thermal efficiencies requested by the Company is
Justified?
ii.
Whether a request for revision in project cost is justified?
iii.
Whether Allowing Return on Equity During Construction (ROEDC) and Change in Project
Drawdowns with 80% Upfront Equity Injection is justified?
iv.
Whether an increase in operations and maintenance costs is justified?
v.
Whether Water Charge to be paid to GoS is justified?
vi.
Whether introducing Two Parts Fuel Cost Component (FCC) for Covering Mine Costs is
justified?
vii.
Whether an increase in the spread over LIBOR from 4.5% to 5.5% is justified?
Other issues
a.
Whether There Is a Need for One or More Upfront Tariff Announcements for Thar
Coal?
b.
Whether Allowing 1% Transportation Loss on Thar Coal is justified?
Changes in the Approved Net Thermal efficiencies re uested by Thar Power Com an
1.
10. The Company proposed 37% LHV (net) efficiency given high moisture of Thar coal and due to
additional crushing requirement against 39.5% LHV (net) allowed by the Authority in upfront tariff
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determination for 220 MW plant. The Company further informed that most of the bids received
have around 37% efficiency with sub-critical technology. However, the Company suggested that
the efficiency should be determined on the basis of tests to be carried out during the
commissioning. Mr. Muhammad Arif Bilvani objected to low efficiency of 37% on sub-critical and
argued in favor of newer technology, i.e. supercritical to achieve increased net thermal efficiency.
11.
The Company in response to the Intervener's objection, stated that as compared to subbituminous coal, Thar lignite has lower carbon content and higher moisture, therefore it leads to
lower thermal efficiency. The Company requested an efficiency of 37%, which is in line with
subcritical technology as recommended by consultants and as also indicated by the EPC market.
To support its point of view on the proposed efficiency figures, the company also provided a
report of technical consultant RWE indicating an efficiency of 37%.
12.
The Company suggested that the efficiency should be adjusted based on net efficiency tests
carried out at the time of COD only in case the efficiency is established higher than the reference
minimum net efficiency of 37% LHV. The Company further stated that the Variable Fuel Cost
Component of the Proposed Upfront Tariff will be adjusted at the time of Commercial Operations
Date based upon a heat rate test to be carried out at the time of commissioning.
13.
The Authority has seen that the issue of revision in the approved efficiency was also raised by the
Government of Pakistan in its reconsideration request pertaining to the Authority announced coal
upfront tariff. While being aware of the importance of thermal efficiency in any power plant's
tariff, the Authority carried out in depth analysis of efficiencies that are being achieved for similar
technology and coal specification in Europe and US including neighboring India where a large part
of electricity is generated using lignite coal. The benchmark analysis of efficiency was carried out
to review not only the Thar Power Company' suggested efficiencies for 330 MW units, but also to
analyze the revision of efficiencies sought by GoP for 220/660/1099 MW sets.
14.
The Authority understands that the actual efficiencies may vary and will be dependent on coal
quality, operations and design parameters, and location etc. However, the Authority also realizes
that for upfront tariff determination, the technical benchmark to be established is not supposed
to be specific plant/location, but a generic number, which the investors can achieve without
compromising the cost/efficiency tradeoff. The Authority analyzed numerous studies on the
subject, some of which are summarized in the table below:
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Table - I
Reports/Studies
Efficiency LHV
SubC/CFBC
SC PCC
lEA Coal Advisory Council -
38%
41%
lEA 2012 Technology Roadmap High-Efficiency, LowEmissions Coal-Fired Power Generation

the Future of Coal MiT 2007
38%
42%-43%
35%-39%
39%-42%
lEA Clean Coal Tech Centre
39%
43%-45%
Energy Information Administration 2013 Energy

Information Administration (EIA) Updated Capital Cost
Estimates for Utility Scale Electricity Generating Plants,
April 2013
CERC 2014-2019 Tariff Norms
N/A
40.70%
35.5%-36.8%
38.3%-41.8%
Technology Action plan HELE, Major Economies Forum On

Energy and Climate December 2009
15.
40.20%
42%
The Authority also considered 37% efficiency for CFBC/SubC technology approved for 220 MW
project in its decision with respect to the Government of Pakistan reconsideration request in the
matter of coal upfront tariff. Keeping in view the information gathered from different sources,
including the comparative studies quoted above, the Authority is of the opinion that the efficiency
of 37% LHV net offered by the Company for CFBC technology is reasonable and can be achieved
using Thar coal, hence approved. For 660MW and 1099 MW category based on Thar coal, the
Authority decided to maintain the efficiency of 39% and 40% respectively as recently revised in
the decision of the Authority regarding reconsideration request filed by the Government of
Pakistan in the matter of Upfront Tariff for Coal Power Projects dated June 26, 2014. The following
are approved efficiencies for Thar coal based power plants.
Table - II
Efficiency LHV (net)
Thar Coal
16.
330MW
660MW
1099MW
37%
39%
40%
No adjustment; however will be allowed if the efficiency is established lower than the approved
minimum benchmark efficiencies. To encourage efficiency in the sector, the Authority has decided
to devise a sharing mechanism through which investors will be incentivized and will share the
benefit if they bring plants with an efficiency, higher than the benchmark efficiency approved by
the Authority as indicated in Table - II above. The Authority has already provided such mechanism
to the investors who are willing to build power plants based on imported and local coal (other
than Thar) in the decision of the Authority regarding reconsideration request filed by Government
5

of Pakistan in the matter of Upfront Tariff for Coal Power Projects dated June 26, 2014. The
sharing mechanism as provided herein below, will be applicable only in case the efficiency,
approved by the Authority for different capacities is established higher as a result of heat rate
tests carried out at the time of COD.
Gross MW
Efficiency net (LHV)

achieved At COD
Table - Ill
Sharing Ratio
Power Purchaser :
Sponsor
330
37% (min)
100% : 0%
660
39% (min)
100% : 0%
1099
40% (min)
100% : 0%
330
37.01% - 37.50%
70% : 30%
660
39.01% - 39.50%
70% : 30%
1099
40.01% - 40.50%
70% : 30%
330
37.51% - 38.00%
50% : 50%
660
39.51% - 40.00%
50% : 50%
1099
40.51% - 41.00%
50% : 50%
330
38.01% - 38.50%
30% : 70%
660
40.01% - 40.50%
30% : 70%
1099
41.01% - 41.50%
30% : 70%
330
>38.5%
0% : 100%
660
>40.5%
0% : 100%
1099
>41.5%
0% : 100%
Whether Request For Revision In Project Cost Is Justified?

17. The Company requested US$ 412.5 million for the plant size of 330 MW, or US$ million 1.25 per
MW, which is the same per MW cost allowed by the Authority for 220MW units. According to the
Company, this will include the cost of the Main Plant Equipment System, Boiler including
Auxiliaries, STG &Auxiliaries, Balance of Plant Equipment System, Other Mechanical Equipment
System, Electrical Equipment System and C&I, Engineering & Project Management, Erection
&Commissioning, land, site development and civil works, transportation and evacuation cost up to
interconnection point and soft costs like IDC and financing fee.

18.
The Company stated that plant and machinery will be sourced from China. However, Chinese
boiler vendors do not have adequate experience to handle lignite fuel containing high moisture
and low ash like Thar. Whereas, European vendors have proven experience of designing and
delivering reliable boilers for similar lignite. According to the Company, the boiler is the heart of
any thermal power plant, and that the reliability of power plants is extremely important for the
bankability of the power plant and ultimately, the mine. The experience of boiler vendors is of
significant importance and therefore, has to be considered especially for Thar based projects.
Therefore, according to the Company, sourcing the critical parts of the boiler from a European
vendor would result in a significant, though justifiable increase in the capital cost.
19.
In view of all this, the Company requested to allow additional cost of US$ million 0.1 per MW in
capital cost of the power project to absorb the impact from a Chinese vendor to experienced
European boiler vendor (though based in China). This translated the Company's total claim for a
330 MW unit from US$ million 1.25 per MW to US$ 1.35 MW per million.
20.
The Authority observed that Thar Power Company has principally agreed to accept $ million 1.25
per MW cost allowed for 220 MW Gross on local coal/foreign financing category for its proposed
330 MW sets. The Company was asked to provide justification for requesting additional US$36
million (IDC + financing fee included) or US$ million 0.1 per MW in the project cost for opting
European boiler that is considered to be expensive as against the Chinese. In support, the
Company submitted a Vendor Audit Report dated April 14, 2014 prepared by a well-known
Consultant RWE Power who proposed that "Regarding the long-term experiences and the knowhow of utilizing high moisture lignite, the interviewed European Vendors seem to be a good choice
for the project as process owner and the boiler manufacturer". The Company further submitted a
letter from one of its EPC bidder, China Machinery Engineering Corporation, which indicated boiler
hard cost of US$ 33 million if European boiler is included instead of Chinese.
21.
The Authority is aware that RWE is the world leading operator and consultant in the field of coal
power technologies and the Authority values RWE's suggestions/recommendations to incorporate
European boiler technology for Thar coal based power generation. The Authority feels that this is
going to be a first project on Thar coal, which is in advance stage of development, therefore, every
effort must be taken to ensure its reliability and smooth functioning. If this fails, it will have a
negative effect on the other projects proposed to be built on Thar Coal. The government is also
7

expecting big contribution of power generation from Thar to cope with economic/energy issues in
the medium to long term. The Authority also realizes that European boiler technology will bring
decades of experience and knowledge which in the long-run, will most likely increase the
probability of success of Thar Projects. In view of the above, the Authority has decided to approve
an additional allowance of US$ million 0.1 per MW (which includes IDC and corresponding
financing charge) in case a sponsor desire to include European boilers.
22. The Authority, in its determination dated June 06, 2014 of upfront tariff for coal power projects
allowed certain items as pass-through including Sinosure fee (in case the investors avail Chinese
financing) and custom duties. Similarly to provide comfort to the investors the Authority has
decided to include the impact of Sinosure fee @ 7 % of total debt and interest payment along with
the customs duties @ 6% of EPC and thus decided to approve the following cost for different
capacity of Thar coal projects.
Table - IV
Thar Coal
Description
MW (Gross)
L. Financing
F. Financing
US$M per MW
330 MW
659 MW
1099 MW
23.
In order to claim the cost of Sinosure, customs duties and additional cost of European boiler, the
verifiable documentary evidence shall have to be provided to the satisfaction of the Authority. The
investor, however, shall not be allowed the costs, above the allowed limits as accounted for in the
upfront tariff.
Whether Allowing Return on Equity During Construction (ROEDC) Is Justified and Change in Project
Drawdowns with 80% Upfront Equity Injection is justified
24.
The Company has requested NEPRA to allow fiscal incentive package for indigenous coal mining
and power generation project on the basis of following ECC decision dated October 15, 2010,
which is reproduced as under:
"20% ($based) IRR to firms which achieve Financial Close before 31st December 2015
for mining and Power Projects based on indigenous coal and additional half a
percentage i.e. 20.5% IRR for firms which achieve financial Close by or before 31st
December 2014".
8

25.
As per the Company, it is important to incorporate the ROEDC component in the tariff for Thar
based IPPs. The Company further stated that without this adjustment, IRR comes out to be less
than 13%. This is due to the fact that construction period is significantly longer in coal fired power
plants ranging from 40-48 months, depending on the size and complexity of the project. ROEDC is
a material and significant cost to the project. In view thereof, the company added ROEDC
component to achieve IRR of 20%. The Company has assumed a project cost drawdown of 47%,
23%, 16%, and 14% during the 40 month construction period based on milestone payment
schedule as given by the EPC bidders. The approved tariff has drawdown in a ratio of 20%, 30%,
35% and 15% for 220 MW projects and 20%, 20%, 25% and 35% for 660MW and 1099 MW
project. According to the Company, the reason for the difference in drawdown is that most of the
machinery and equipment will be imported by the contractor during the first 1 1.5 years against
which payment will have to be made to the contractor and the sub-contractor.
26.
Pursuant to the GoP's reconsideration request pertaining to upfront coal tariff, the Authority has
already revised RoE number as indicated in the table below in its decision dated June 26, 2014.
The deliberations, including the reasons for maintaining ROE based return against IRR are detailed
in the same decision.
Description
220 MW 40 months construction time
660/1099 MW 48 months
27.
Table - V
RoE Allowed
Local Coal
Imported Coal
26.5%
24.5%
29.5%
27.2%
The Authority is cognizant of the fact that Thar coal is a strategic energy resource, and investment
in Thar has to be incentivized in order to expedite Thar coal development. The Authority
acknowledges that RoE for Thar coal has to be more than the RoE offered to import/local coal
(non-Thar). In view of the above, the Authority has decided to approve the following RoE (based
on reference parameters including IRR of 20%) for Thar coal based mine mouth power projects:
Description
330 MW 40 months construction time
660/1099 MW 48 months construction time
Table - VI
RoE Allowed
Thar Coal
30.65%
34.49%
I/

28.
It is however, clarified that these returns will only be allowed for mine mouth based power plant.
For projects utilizing Thar coal for non-mine mouth plants, RoE shall be of local coal, which in the
instant case is 26.5% for 220MW (40 month construction period) and 29.5% for 660/1099 MW (48
month construction period).
Whether Increase In Operations And Maintenance Costs Is Justified
29.
While principally agreeing with O&M allowed by the Authority for 220 MW projects in the upfront
tariff determination dated June 06, 2013, the Thar Power Company requested additional Rs
0.0971 per kWh at 85% plant factor in the fixed O&M component due to expected higher fixed
costs of human and other resources in remote and undeveloped areas of Thar.
30.
The Authority considered the argument put forward by the Company and is of the view that the
company's contention in this regard is not valid because area development cost such as land
leveling, access road, housing colony utilities connection etc. has already been compensated in the
Authority's approved project cost. Secondly, everywhere in the World, large scale coal power
plants are expected to be built in remote areas, away from the general population, so that, the
general public is not affected by the plant' environmental side effects.
31.
The Authority further noted that in neighboring India, total O&M cost recently allowed by its
central regulator, CERC, for 330 MW units is equivalent to Pak Rs 0.55 per kWh after accounting
for 30% escalation (giving allowance for India's technological advantage and experience in running
lignite based power plants). The CERC's approved O&M benchmark for 330MW units is
significantly less when compared to the total allowed O&M cost of Pak Rs 0.79 per kWh allowed
for 220 MW units (@ 84% plant factor, Ash handling + Limestone cost included) . In view of the
above, the Company's argument in support of increase in O&M cost does not hold ground; so, the
already allowed O&M is more than sufficient to meet O&M expense. Therefore, the Authority has
decided not to consider the additional O&M cost of Rs. 0.0971 per kWh as requested by the
Company and decided to maintain its O&M cost already approved for 220 MW set.
Whether Water Charge to be Paid To GoS Is Justified
32.
The Company stated that for Thar power projects, Government of Sindh (GoS) has developed a
water supply scheme from Left Bank Outfall Drain (LBOD) to Vajihar which is located outside the
coal block. This scheme can meet water requirement of up to 3600 MW. The GoS has given a
10

water cost of Rs. 0.32/ Gallon. This cost will be charged to SECMC and will be paid by the
Company.
33. According to the Company, Vajihar is outside the coal blocks and to make the water available to
the mine-mouth power plant, the Company will also set up a Pumping Station at Vajihar and a
Pipeline from Vajihar to Block II. For this purpose, a capital investment of U$ 40.26 million for 660
MW (330 x 2) or USD 20.13 million for 330 MW will have to be made by the Company for the
pumping station and the pipeline. In addition to this, it would also incur operations and
maintenance expenses on an annual basis for running the pumping station (cost of electricity,
manpower and maintenance). The detailed computation of the Water Cost component (all
levelized) provided by the Company is as follows:
Table - VII
Water Charge to be paid to GoS by SECMC Rs/Gallon
0.32
A Water Charge to GoS Cents/kWh
0.2984
Capital Expenditure incurred by SECMC for setting up a Pumping Station at

Vajihar & Pipeline from Vajihar to Block II for Transmission of LBOD Water
USD 20.13 MN
Investment in the Vajihar to Block II Project Rs/Gallon
0.1425
B Tariff Component for Capital Investment 85%PF Cents/kWh
0.1308
O&M Cost of the Pumping Station at Vajihar, incurred by SECMC

Total Electricity cost from B-3 HESCO PKR/annum
103,941,000
Maintenance cost of pumping station at Vajihar PKR/annum
25,000,000
Cost of manpower for pumping station PKR/annum
25,000,000
Total Annual O&M cost for Vajihar project PKR/annum
153,941,000
O&M Cost Rs/Gallon
0.0698
C O&M Cost Cents/kWh
0.0651
Tariff Component for Water Cost (A+B+C) cents/kWh
0.4943
34. The Company has proposed the following indexation of different components of the Water Cost:
i.
Component of GoS Charge will be adjusted for the revised water charge as announced by GoS.
ii.
Component of Capital Investment to be indexed with USD to PKR Rupee devaluation.
iii.
Component of O&M would be adjusted for Power (as this would be one of the variable
cost for the Pumping station at Vajihar), and with local CPI or USD CPI + PKR/USD parity
for manpower and maintenance.
11

35.
However, in support of the Capex cost of US$ 20.13 million, the Company submitted excerpt
related to the feasibility report prepared by EA consulting Pvt. Ltd titled "Water Carrier from
Vajihar Reservoir to Thar Coal Field", dated February 2014. The Engineer's estimate for 4 x 330
MW water Capex was indicated in the report as PKR 8,349 million. The Company further
discounted the cost estimate by 10%, indexed it by 2% p.a. for inflation and divided it by 4 to work
out US$ 20.13 million estimate for water carrier cost from Vajihar to Thar field for each unit of 330
MW power project. As per the Company's estimation, the tariff component for Capex part of
water supply works out to be US cent 0.1308 per kWh. After reviewing the submitted documents,
the Authority is of the opinion that the Capex cost of US$ 20.13 million is reasonably estimated
and backed by a feasibility study therefore, the Authority decided to approve the cost as such. The
Authority also decided to index that portion of the cost with the exchange rate variation that has
been incurred in a currency, other than Pak Rupees.
36.
In support of the O&M cost of US Cent 0.0651/kWh, the Company provided assumptions and
background calculations. The Authority carefully analyzed and rationalized certain assumptions
with regard to projected diesel price per liter, average load shedding for B-3 consumer category in
HESCO area and annual O&M cost per year, the resultant O&M cost works out to be Rs 0.060 per
kWh against Rs 0.0691 per kWh requested and the same is therefore, approved. Depending upon
the nature of the O&M expense that will be finalized at the time of COD, the Authority also
decided to allow indexation with local WPI and/or US$/PKR exchange rate variation as the case
may be.
37.
The Government of Sindh was subsequently asked to provide detailed working and background
assumptions of the water supply scheme cost estimated to be US Cent 0.30 Per kWh (Rs. 0.32 per
Gallon) from Left Bank Outfall Drain (LBOD) to Vajihar vide letter dated April 16, 2014. The GoS
reply in the matter is still pending. The Authority is aware that Thar regions do not have
indigenous water resources enough to sustain thousands of MW of possible power generation and
realizes that infrastructure investment will have to be incurred in order to supply millions of
gallons of water p.a. to feed the large coal fired units. The Authority also appreciates GoS's efforts
of heavy investment to ensure a reliable supply of water without recovering the Capex and only
recovering O&M cost. In view of the above, the Authority decided to allow water use cost of US
cent 0.30 per kWh to be paid to GoS subject to indexation as and when GoS revise the rate.
.12
4:1

Whether Introducing Two Parts Fuel Cost Component (FCC) for Covering Mine Costs is justified?
38.
Thar Power Company informed that under ECC Incentives dated October 15th 2010, TCEB is the
designated authority to determine the coal price for Thar coal based power plants. Therefore, final
price of coal for each power plant based on Thar coal will be determined once TCEB complete a
review of submitted costs by leaseholders of blocks undertaking mining project. According to the
Company, the coal tariff will be a determined tariff and will be trued up at the time of CoD of the
Mining Project. As the mining project is also based on guaranteed IRR and cost-pass through
structure like the current IPP structure, therefore, the cost of the mine will be fully accommodated
in the coal price tariff, which in turn will comprise of the variable and fixed portion.
39.
According to the Company, this mechanism will ensure that fixed costs of the mine are fully and
timely paid whenever the mine is available for coal supply in order to ensure that it can meet its
obligations to lenders and contractors and without this mechanism, no mining or Thar based
Power Project will be bankable. The coverage of the costs incurred for running the Mining Project
is to be under the power tariff. This is already contemplated in Power Policy 2002 under Section
6.2 (54), which states:
"For projects requiring substantial investment in dedicated production and/or

transportation facilities for indigenous fuel, expenses would be accounted for in the
power tariff in the form of capacity and energy charges".
40.
The Company also informed that once a mine signs a Coal Supply Agreement (CSA) with a
company operating power plant, entire throughput of the mine will be dedicated to that power
plant. Moreover, TCEB will periodically announce revised coal price of mine associated with a Thar
coal based IPP due to variation in Coal Price on account of indexations and adjustments during
mine operations, which is similar to as determined by NEPRA for IPPs operating under their
respective Power Policy framework.
41.
The Company informed that TCEB will also periodically adjust prices downward with each
expansion of mine to reflect higher scales and consequent lower fixed costs per ton. The
Company further informed that, it will be amply clear in CSA and in a coal tariff determination by
TCEB that any benefit of incremental coal production for a new power plant & consequent
reduction in coal costs per ton will require downward adjustment in coal tariff. The Company
nticipates that NEPRA will use fixed and variable component of the Coal Tariff as determined by
13
NEPRA
:.7y
AUTHORITY

TCEB at COD of the Mining Project for the purpose of determining fixed and variable Fuel Cost
Component for Thar coal based IPP, which will be revised as and when TCEB revises Coal Price.
42.
For the purpose of this proposed upfront tariff, the Company used a coal price as determined by
SECMC after firming up of project cost estimates for a mine capacity of 6.5 million tons per annum
(mtpa) which is projected to cost around US $46 per ton. According to the Company, the price of
coal and hence power tariff will keep declining as the mine further scales up, which the Company
believes will set a trend once the first project breaks ground. In support, the Company provided
the following illustration:
Size of the Mine Mtpa
No. of Years after

Completion of Mine
Coal Price USD/Ton
Table - VIII
Levelized Power Tariff @
85% LF - cents/kWh
10.144
68.69
3.5
8.251
46.10
5.0
7.399
35.93
7.5
7.125
32.67
10.5
19.5
Above assumes that Mine size remains constant at the respective capacity (in mtpa) throughout 30
years.
43.
The Company was asked to provide detail working and background assumption of Thar coal
proposed fuel cost component including its two parts i.e. variable and fixed charge. The Company
subsequently submitted certain numbers but the detail working on different capacity mining was
not submitted. However, the company gave a presentation to the NEPRA's tariff professionals on
proposed power plant in general and mining project in particular. The company submitted the
following breakup and constituent of the possible Thar coal price:
Table - IX
Coal Price @ 6.5 Mt/a Mine
Cost Component
VARIABLE CHARGE
Fuel Cost
Maintenance Cost
Royalty
Total
FIXED CHARGE
Fixed Operation & Maintenance
- Foreign
- Local
Average
(1-10 Years)
USD/Ton
7.50
4.56
2.30
14.35
Average
(11-30 Years)
USD/Ton
7.36
4.56
2.30
14.22
Levelized
(1-30 Years)
USD/Ton
7.45
4.56
2.30
14.30
1.49
7.28
1.49
7.28
1.49
7.28
14

Table - IX
Coal Price @ 6.5 Mt/a Mine
Cost Component
VARIABLE CHARGE
Power Cost
Average
(1-10 Years)
USD/Ton
1.68
Maintenance Reserve
1.46
2.44
Cost of Working Capital
1.65
1.16
1.48
Total
DEBT & ROE
Debt Servicing
Return on Equity
14.77
13.08
14.38
11.11
9.65
20.77
49.89
0.00
9.65
9.65
36.95
7.76
9.65
17.42
46.10
Sub Total
44.
Average
Levelized
(11-30 Years) (1-30 Years)
USD/TonUSD/Ton
1.68
1.68
The Authority observed that pursuant to the Thar Coal Energy Board Act, 2011 TCEB is mandated
by Government of Sindh to determine and control the price of coal. TCEB was asked to provide the
status of development of fuel price mechanism for Thar coal. As of now, TCEB has not replied. The
Authority was informed by Thar Power Company that TCEB will engage an internationally reputed
consultant to develop the pricing mechanism. While developing whatever mechanism for Thar
coal pricing, the Authority expects TCEB to be cognizant to ensure the process of determining Thar
coal price determination is participatory and based on principle of fairness and justice while taking
on board all the stakeholders including NEPRA. Therefore, keeping in view the relevant provision
of Power Policy 2002 and the fact the a separate body (TCEB) has been constituted by the
Government to fix coal price, the Authority has decided to accept the proposed mechanism of
dual part fuel cost component as requested by the company and subsequent changes will be
made after TCEB finalizes coal pricing mechanism.
Whether In Increase in LIBOR from 4.5% to 5.5% is justified?

45.
The Company has submitted that due to uncertainty shrouding Pakistan, given the present market
conditions, the spread over LIBOR should be 5.5% against 4.5% allowed by the Authority. The company
further stated that the spread could be adjusted once the actual Term Sheet is signed with the lenders,
based on which the debt component in tariff and IDC component in project cost will be revised
accordingly. Mr., Arif Bilvani, an intervener proposed that the spread should not be more than 5% to
attract foreign investors.
15

46.
During the hearing, CEO of the Company indicated that Chinese lenders have shown willingness to
fund the project with a 4.5% LIBOR spread. However, he was of the opinion that since the spread was
based on initial understanding, therefore, it should not be fixed at 4.5%. In fact, the Company
requested to assume LIBOR spread of 4.5% spread for tariff calculation with a cap of up to 5.5%.
47.
The Authority appreciates that the company has made an effort to reach an understanding with
lenders to bring the spread to the Authority's approved spread of 4.5%. The Authority is of the opinion,
that if investors show strong commitment to the project development, as SECMC has shown, lenders
will most likely reduce the spread even further especially, when the negotiation will be in the advanced
stage. The Authority feels that considering the strong GoP/GoS backing for Thar coal projects and after
inclusion of this project in the $38 billion worth China-Pakistan Economic Corridor prioritized/early
harvest projects, Chinese lenders are most likely to further reduce the spread. In view of the above, the
Authority sees no reason to increase the approved spread to 5.5% and therefore, has decided to
maintain the spread of 4.5% over LIBOR. Furthermore to encourage the company to reduce spread,
and pursuant to para 1.5 of the "Guidelines for Determination of Tariff for IPPs" the Authority also
decided to share the benefit of better margin negotiation between power purchaser and IPPs in the
ratio of 60:40.
Other Issues
Whether There is a Need for one or more Upfront Tariff Announcements for Thar Coal
48.
This issue came to the Authority's attention after discussion with various stakeholders. Thar coal is
spread over a vast area of Sindh and different blocks may not necessarily share the same characteristic
with each other. The question was that should there be a unified upfront tariff for all the block of Thar
coal or different tariff for different blocks, keeping in view individual block peculiarities?
49.
TCEB, being the relevant agency, was asked to assist the Authority in determining what issues and key
assumptions needs to be kept in mind while determining block-wise Thar coal tariff. TCEB reply in the
matter is still pending. The Authority noted that only Thar Power Company/SECMC approached NEPRA
with tariff proposal with advance stage project development for BLOCK-II of Thar Mine. Neither has
TCEB nor any other investors have shared any data/information regarding differences among various
Thar blocks. After discussion with the stakeholder, the Authority is of the opinion that in all likely hood,
peculiarities within Thar blocks will impact fuel cost component which itself is to be determined by
TCEB. With regards to the water related costs, the Authority further considered that half of the cost
16

relates to water charges to be fixed by GoS, which leaves only Capex and O&M cost of water supply
from GoS managed water supply scheme to the power plant which may vary from block to block. The
Capex cost to be incurred by the investors are already to be adjusted on actual and reasonable O&M
cost with periodic indexation has already been allowed by the Authority. Therefore, the Authority
decides that the Thar upfront tariff be broad based and generic, without specifying block as provisions
have already been made to account for block to block variations.
Whether Allowing 1% Transportation Loss on Thar Coal is Justified?
50.
The Company has indicated transportation loss (from mine mouth to Plant) of 1%. The company was
asked to provide justification for loss ratio. TPC informed that 1% transportation loss was taken from
the Authority's determination for tariff based on Local coal. The Company further informed that they
understand that for mine mouth plant it should be lower. The Authority considered that the 1% loss
figure was allowed for local coal transportation and not for Thar coal mine-mouth based power plant.
The Company plans to build the plant within 40 km proximity of the mine for which the transportation
loss cannot be 1%. However, the Authority realizes that at this stage, when the Company doesn't have
a background working it is very hard to fix a transportation loss percentage at this stage. Further, this
issue concern fuel cost component for which TCEB is the competent Authority. Therefore, the
Authority has decided that the Company along with all the prospective investors should approach TCEB
to determine a reasonable and prudent transportation loss on block to block basis.
51.
Order
The Authority hereby determines and approves the following upfront tariff and
adjustments/indexations for Thar coal power generation projects for delivery of electricity to
the power purchaser:
Table - X
Capacity Charge 1-10 Years
F. Financing
L. Financing
Rs./kW/Hour Rs./kW/Hour
4.9612
330 MW
3.6736
660 MW
3.6683
5.1242
3.4191
4.7747
1100 MW
MR
Table - XI
Capacity Charge 11-30 Years
F. Financing
L. Financing
Rs./kW/Hour Rs./kW/Hour
330 MW
1.9183
2.0270
660 MW
1.9992
2.1958
1100 MW
1.8648
2.0480
17

Table - XII
F./L. Financing
Energy Charge 1-10 Years
Variable
Fixed
Rs./kWh
Rs./kW/Hour
330 MW
2.0988
2.9567
660 MW
2.0392
2.8056
1100 MW
2.0115
2.7355
I .
F./L. Financing
Variable
Fixed
Rs./kWh
Rs./kW/Hour
330 MW
2.0010
1.9473
660 MW
1.9419
1.8478
1100 MW
1.9145
1.8016
Table - XIV
F./L. Financing
330 MW
Variable
Fixed
Rs./kWh
Rs./kW/Hour
2.0010
1.7310
660 MW
1.9419
1.6426
1100 MW
1.9145
1.6015
i. The Tariff Tables & Debt Service Schedules for each project are attached as Annexes to
this determination.
ii.
The tariff period is 30 Years.
iii.
In case of power complex of 660 MW (330 MWx2), the tariff of 330 MW will apply
however, the heat rate and IDC tests will be conducted on the basis of complex as a whole
and relevant tariff components will be adjusted accordingly. Same will be applicable for
other combinations.
II.
Basis for Determination

The above tariff is worked out on the following basis:
i. Design Coal (Quality of Coal)
The Reference LHV calorific value of 11,005 Btus/Kg. for Thar coal has been assumed for
the calculation of fuel cost component which will be subject to adjustment on the basis
of actual calorific value.
ii. Plant Size
a. The upfront tariff has been determined for the plants of following sizes;
<0R Re
(
_()
C.)
330 MW Gross
"j
41 NEPRA A
...,
-<
u.1
300 MW Net
660 MW Gross
607 MW Net
1,099 MW Gross
1,011 MW Net
18

b. The actual net capacity of the complex will be determined on the basis of Initial
Dependable Capacity (IDC) Test at the time of COD and the relevant tariff
components will be adjusted downward. However, the upward adjustment in tariff
will not be allowed if the IDC established lower than the benchmarks stated above.
The minimum net capacity will be gross capacity minus the maximum allowed
auxiliary consumption.
iii.
Site of Plant
This tariff will be applicable only for the mine mouth projects in Thar area.
iv.
Plant Specifications
The sponsors of the plant will be at liberty to select plant of any technology based on
the quality of coal as far as the minimum efficiency thresholds are ensured.
v.
Auxiliary Consumption
The auxiliary power consumption factor shall be 9% for 330MW and 8% for 660 MW and
above.
vi.
Exchange Rate
Reference exchange rate of Rs. 97.10/US$ has been used in calculating the reference
tariff and the same shall be used for indexations/adjustments where applicable.
vii.
Capital Cost including EPC Cost
a.
The capital cost for coal based power project includes cost of Main Plant Equipment
System, Boiler including Auxiliaries, STG &Auxiliaries, Balance of Plant Equipment
System, Other Mechanical Equipment System, Electrical Equipment System and C&I,
Coal Handling Infrastructure, Engineering & Project Management, Erection &
Commissioning, land, site development and civil works, transportation and
evacuation cost up to inter-connection point.
b. The following capital cost for coal based power projects has been determined by the
Authority; FY 2014-15 will be the first year of validity period. The capital cost shall be
linked to the specified indexation mechanism.
c.
330 MW
US$ 408.245 Million
660 MW
US$ 767.868 Million
1,099 MW & above
US$ 1,191.670 Million
The incremental cost of European boiler @ US$ 0.1 million per MW has been assumed
in the overall project cost on account of capital cost, financing fees & IDC. The sponsor
will submit verifiable documentary evidence at the time of COD regarding installation
of European boiler for entitlement of this cost. The projects which do not install
European boiler will not be eligible for this cost.
d.
Any boiler will be categorized as European boiler regardless of its place of

19

manufacture if it is designed and supplied by European boiler manufacturer and

installed under its warranty.
e. In case of variation in installed capacity to standard modules assumed above, the
capital cost will be adjusted accordingly on a pro rata basis.
viii. Capital Cost Indexation Mechanism
The following indexation mechanism shall be applicable for adjustments in capital cost
during the validity period with the changes in Producers Price Index (PPI) for Steel and
Electrical Machinery.
(CC(o) * 51% * ASI) + (CC(o) * 38% * AEI) + (CC(o) * 11% )
CC(n)
Where:
Capital Cost at the time of opting the tariff during the validity period
CC(n)
CC(o)
Capital Cost at the beginning of the validity period
ASI
Variation in US PPI for Steel i.e. SI(n)/S1(0)

=
Sl(n)
PPI Steel at the time of opting the tariff
= PPI Steel for the month of June 2014

AEI
Variation in US PPI for Electrical Machinery i.e. El(nvE1(0)
El(n)
PPI Electrical Machinery at the time of opting the tariff
El(0)
PPI Electrical Machinery for the month of June 2014
Note:
ix.
Breakup of capital cost indicated in the above formula has been taken from
New Coal-Fired Power Plant Performance and Cost Estimates (SI-009808) by
Sargent & Lundy and International Energy Agency; Coal Industry Advisory
Board (Ian M. Torrens & William C. Stenzel)
Customs Duties, Cess and Withholding Tax
Customs duties & cess @ 5.95% of the 66.75% of the capital cost has been assumed in
the project cost which will be adjusted at the time of COD on actual basis. No withholding
tax on local foreign contractors, sub-contractors, supervisory services and technical
services provided by foreign (non-residents) entities has been assumed. Actual
expenditure, if any, on this account will be included in the project cost at the time of COD
on the basis of verifiable documentary evidence.
x.
Construction Period
a. Construction period for the generation facility having a capacity up to 330MW shall
be 40 months.
20

b.
Construction period for the generation facility having a capacity of 660MW and above
shall be 48 months.
xi.
Financing of Coal Projects
a.
The sponsor of the project can arrange foreign financing in American Dollar ($), British
Pound Sterling (E), Euro (), Japanese Yen (Y) and Chinese Yuan (Y) or in any currency
as the Government of Pakistan may allow.
b. The upfront tariff has been determined on the basis of debt equity ratio of 75:25;
c.
The minimum equity shall be 20% and the maximum equity shall be 30%; if the equity
actually deployed is more than 30% of the capital cost, equity in excess of 30% shall
be treated as loan;
xii. Financial Charges
a.
For the purpose of determination of upfront tariff loan tenure of 10 years plus grace
period equivalent to construction period has been considered.
b.
Interest Rate
A. The reference Karachi Inter Bank Offer Rate (KIBOR) of 11.91% plus 350 basis
points has been used for calculating the financial charges.
B. The reference London Inter Bank Offer Rate (LIBOR) of 0.45% plus 450 basis
points has been used for calculating the financial charges.
C. The interest calculated in the reference debt service schedule shall be subjected
to adjustment for variation in quarterly-KIBOR in the case of local loan and
quarterly-LIBOR in the case of foreign loan on a quarterly basis. The adjustment
shall be made on 1st July, 1st October, 1st January and 1st April based on latest
available TT&OD selling rate and KIBOR notified by the National Bank of Pakistan
and Reuters for the purpose of LIBOR.
D. The maximum allowed premium on LIBOR and KIBOR is 4.5% and 3.5%
respectively and there will be no adjustment on the basis of actual higher
premium than the maximum allowed limit. In case spread negotiated is less than
the said limit, the saving will be shared in the ratio of 60:40 between the power
purchaser and the power producer respectively.
E. The repayment of loan shall be considered from the first year of commercial
operation.
xiii. Financing Fees & Charges
Financing fee & charges are taken @3.5% of the borrowing to cater for the upfront fee,
commitment fee, lenders' technical, financial and legal consultants' fee etc.
xiv. Sino sure Fee
Under the foreign financing originating from Chinese banks, upfront Sino sure fee @7%
on the total debt servicing (including principal and mark-up for the entire loan tenor) has
been included in the project cost. The project cost will be adjusted at the time of COD on
the basis of actual Sino sure fee subject to maximum of 7%. In case the sponsor managed

better alternative Sino sure fee arrangement, the same will be considered at the time of
COD.
xv. Interest During Construction (IDC)
a. Interest During Construction (IDC) has been calculated on the basis of 75% of the
CAPEX including customs duties as per the following reference parameters;
Table - XV
Year
330 MW 660MW 1099 MW
15t Year
33.33% 33.33% 33.33%
2nd Year
33.33% 33.33% 33.33%

20.00% 13.33% 13.33%
3rd Year
4th Year
13.33% 20.00% 20.00%
b.
IDC shall not be adjusted for any variation on account of actual expenditure
percentage during the construction period.
c.
At the time of COD, IDC shall be reestablished on the basis of indexed capital cost,
actual custom duties & cess, withholding tax on contracts/services, actual premium
on LIBOR & KIBOR subject to maximum of 4.5% and 3.5% respectively and the impact
of Sino sure fee, if any.
d.
In case of more than one financing plans, separate IDC shall be calculated for each
plan on reference parameters.
e.
IDC shall be recalculated on the basis of weighted average quarterly LIBOR/KIBOR

during the construction period plus actual premium subject to the maximum limit on
reference parameters.
xvi. Summary of Project Cost
The following project costs have been assumed for different projects in the upfront coal
tariff, which will be subject to adjustments at the time of COD in accordance with the
methodology prescribed in the preceding paragraphs:
Description
Capital Cost
,oNNER R
c''
0:,,,
Ai
.c)
LI NEPRA
...., AUTHORITY
Custom Duties & Cess

Sub-Total
Financial Charges:
Financing Fees &
Charges
Sinosure Fee
IDC
Sub-Total
.A Total
7_Z
4.-
330MW
F. Fin.
L. Fin.
US$
US$
Mins
Mins
408.2
408.2
16.2
16.2
424.5
424.5
11.1
33.2
28.9
73.3
497.7
11.1
100.6
111.7
536.2
660MW
F. Fin.
L. Fin.
US$
US$
Mins
Mins
767.9
767.9
30.5
30.5
798.4
798.4
21.0
63.9
72.8
157.7
956.1
21.0
261.6
282.5
1,080.9
Table - XVI
1099MW
L. Fin.
F. Fin.
US$
US$
Mins
Mins
1,191.7
1,191.7
47.3
47.3
1,239.0
1,239.0
32.5
99.2
113.0
244.7
1,483.7
32.5
405.9
438.5
1,677.5
22

xvii. Return on Equity (ROE)
The Return on Equity shall be:

a.
30.65% per annum for the projects having construction period of 40 months.
b. 34.49% per annum for the projects having a construction period of 48 months.
c.
In case there is a time lag between the construction of power complex and coal mine
and the power complex becomes available earlier than the mine, the responsibility
to provide coal will be of the sponsor and the ROE component of tariff will be adjusted
accordingly depending on ROE allowed on imported/local coal usage.
xviii. Thermal Efficiency

a.
The following minimum reference net LHV thermal efficiencies have been established
for calculating reference fuel cost component;
300MW net capacity (at mean site conditions)
37%
39%
40%
b. The fuel cost component will be subject to downward revision on the basis of actual
heat rates established as a result of heat rate test conducted at the time of COD in
accordance with the established benchmarks in the presence of the representatives
of the power purchaser. For acceptance of the test, approval of the power purchaser
will be mandatory. Upward revision in the fuel cost component will not be allowed in
case the net LHV heat rates are established lower than the minimum thermal
efficiency specified above and the financial impact, if any, of lower thermal efficiency
over the term of the Agreement will be borne by the power producer. However the
following sharing mechanism will be applicable only in case the efficiency, approved
by the Authority for different capacities is established higher as a result of heat rate
tests carried out at the time of COD.
Table - XVII
Sharing Ratio

achieved At COD
Power Purchaser : Sponsor
660
37% (min)
39% (min)
100% : 0%
100% : 0%
1099
40% (min)
100% : 0%
330
660
37.01% - 37.50%
39.01% - 39.50%
70% : 30%
70% : 30%
1099
40.01% - 40.50%
70% : 30%
330
37.51% - 38.00%
50% : 50%
660
39.51% - 40.00%
40.51% - 41.00%
50% : 50%
Gross MW
330
1099
50% : 50%
23

Table - XVII
Gross MW

achieved At COD
Power Purchaser : Sponsor
330
38.01% - 38.50%
30% : 70%
660
40.01% - 40.50%
30% : 70%
1099
41.01% - 41.50%
30% : 70%
330
>38.5%
0% : 100%
660
>40.5%
>41.5%
0% : 100%
0% : 100%
1099
Sharing Ratio
xix. Price of Coal
a. The following two part reference coal price has been used for determining the
upfront tariff for Thar Coal Projects:
Table - XVIII
Variable Price
Fixed Price
Total Price
US$/Ton
US$/Ton
US$/Ton
Year
b.
1-10
14.35
36.33
50.69
11-21
14.22
23.93
38.15
22-30
14.22
21.27
35.49
The actual coal price of each block of Thar Coal will be determined by Thar Coal
Energy Board (TCEB)/Competent Authority and the reference fuel cost components
will be adjusted accordingly.
c.
xx.
The basis of coal price shall be provided in the Power Purchase Agreement.
Water Charges
a.
Component of Government of Sindh water charge will be adjusted for the revised
water charge as announced by GoS.
b. Capital cost of 20.13 million has been assumed for water pumping station/pipelines
from Vajihar to the project site. At the time of COD, this cost will be indexed in whole
or in parts for the exchange rate variation for the portion of cost that has been
occurred in foreign currency. Pumping station and pipelines cost from Vajihar to
different Thar blocks will vary, therefore, reasonable cost will be allowed for mine
mouth power plant for Thar Blocks other than Block-II.
c.
The O&M cost of Rs 0.06 per kWh for pumping station at Vajihar will be indexed with
Local WPI or US CPI as the case may be, at the time of COD along with timing and
mode of indexation.
Insurance Cost During Operation
During the term of the Agreement, insurance component of tariff will be adjusted on
the basis of actual insurance cost with maximum of 1% of the 70% of Capital Cost
24

determined under (vii) above converted into Pak Rupees on the basis of Rs.-US$ parity
prevailing on the 1st day of the start of each Agreement Year. The reference insurance
premiums used in the calculation of the insurance component of tariff are as under:
Table - XIX
xxii.
Description
330MW
660 MW
1099 MW
Ref. Insurance Premium (Rs. Mins)
248.21
542.65
842.15
Interest on Working Capital

a. The Working Capital requirement has been worked out in accordance with the
following:
A. 30 days coal inventory at 100% plant load.
B. Receivables equivalent to one month of fuel charges at 100% plant load.
b. Interest on Working Capital has been calculated on the basis of quarterly-KIBOR of
11.91% plus 200 basis point, which will be adjusted for variation in quarterly-KIBOR
and weighted average cost of coal inventory.
xxiii. Operation and Maintenance (0 & M) Expenses

a. Operation and Maintenance or O&M expenses comprise of repair and maintenance,
establishment including employee expenses, administrative & general expenses.
b.
Reference O&M expenses shall be;

Rs.421 per MWh for a plant of 330MW
c.
d.
The following shall be the breakup of O&M expenses for the different plant size:
Plant Size
Fixed O&M
Variable O&M
330 MW
Rs.0.307/kW/h
Rs.0.114/kWh
660 MW
Rs.0.287/kW/h
Rs.0.114/kWh
1099 MW
Rs.0.266/kW/h
Rs.0.114/kWh
50% of the fixed O&M expenses shall be indexed with local CPI whereas 50% shall be
indexed with USCPI and Exchange rate (PKR/US$) variation.
e.
40% of the variable O&M shall be indexed with local CPI whereas 60% shall be indexed
with USCPI and exchange rate (PKR/US$) variation.
f.
The reference WPI and US CPI will be of June 2014.
d.
The following costs with respect to limestone and ash handling have been
determined, which are shown separately in the reference tariff table;
25

Cost of Lime Stone
Cost of Lime Stone including Transportation
Rs.1250.00/M.Ton
Consumption
Kg.0.07/kWh
Cost of Lime Stone
Rs.0.09/kWh
Cost of Ash Disposal
Ash produced
Kg.0.22/kWh
Ash Transportation cost
Rs.1000.00/M.Ton
Ash Disposal Cost
Rs.0.22/kWh
h. The cost of Lime Stone and Ash Disposal will be adjusted on actual basis at the time
of COD.
xxiv.
Fuel Price Adjustment Mechanism
During the tariff period, the fuel cost components shall be adjusted for actual variation
in coal prices as and when announced by the competent Authority. The approved fuel
price adjustment mechanism will be prescribed at the time of COD.
xxv.
Ill.
If the plant has to operate on imported fuel due to unavailability of Thar Coal, the pricing
mechanism for imported coal as described in the imported coal tariff determination will
be applied to calculate fuel cost component.
Monitoring Mechanism for the use of coal fuel
The Power Producer shall furnish a monthly coal usage and coal procurement statement duly
verified and certified by the Central Power Purchasing Agency (CPPA) for each month, along
with the monthly energy bill. The statement shall cover details such as i.
Quantity of fuel (tons) consumed and procured along with a heating value during the
month for power generation purposes,
ii. Cumulative quantity (tons) of coal consumed and procured till the end of that month
during the year,
iii. Actual (gross and net) energy generation (denominated in units) during the month,
iv. Cumulative actual (gross and net) energy generation (denominated in units) until the end
of that month during the year,
v.
Opening fuel stock quantity (tons),
vi. Receipt of fuel quantity (tons) at the power plant site and
vii. Closing fuel stock quantity (tons) for available at the power plant site.
IV.
Tariff Structure
The tariff for coal based generation technologies shall be two-part consisting of the following:
i. Energy Purchase Price
a. Fuel Cost Component;

26

b. Variable O&M Local;
ii.
V.
c.
Variable Foreign;
d.
Cost of Lime Stone; and
e.
Cost of Ash Disposal
Capacity Purchase Price
a.
Fixed O&M (Local);
b.
Fixed O&M (Foreign);
c.
Insurance Cost
d.
Cost of Working Capital;
e.
Return on equity; and
f.
Debt Service (Principal Repayment and Interest Charges);
Tariff Design
i.
The Capacity portion of upfront tariff has been determined for two periods i.e. for the
period of first ten years when the project will be paying its debt and the remaining period
of twenty years without debt servicing.
ii. For the purpose of comparison, levelized tariff assuming 10% discount factor has also
been worked out.
iii. Levelization has been carried out for the "useful life" of the project which in the instant
case is equivalent to "Tariff Period".
VI.
Dispatch Criteria:
i.
The sole criterion for dispatch of all the coal based power plants shall be the "merit order
dispatch".
ii. Variable fuel cost component will be the basis of dispatch.

iii. The coal based generation facility shall be subjected to scheduling and dispatch code as
specified under NEPRA Grid Code.
iv. The generation plant having capacity up to 330MW shall be connected at 132/220kV and
/or 500KV connection point and above shall be subjected to scheduling and dispatch code
as specified under NEPRA Grid Code (IEGC) -2010, as amended from time to time.
VII.
Plant Availability
The guaranteed availability of the plants will be 85%.

VIII. General Conditions
i.
In case of mix financing, separate debt service schedules shall be developed using the
annuity method at COD;
ii. At the time of COD, project cost will be converted into Pak Rupees using the Average of
the Exchange Rates prevailing on 1st day of each month during construction period.
During life of the project operations, Quarterly adjustments/indexations for local
27

inflation, foreign inflation, exchange rate variations and interest rate variations will be
made on 1st July, 1st October, 1st January and 1st April each year based on latest
available date with respect to CPI notified by the Federal Board of Statistics (FBS), USCPI
issued by US Bureau of Labor Statistics and revised TT&OD selling rate of foreign
currencies (US Dollar, British Pound Sterling, Euro, Japanese Yen and Chinese Yuan or
any other currency as the Government of Pakistan may allow) notified by the
National Bank of Pakistan. The method of indexation will be as follows:
Table - XX
Tariff Components
Tariff Indexation & Adjustment
Fuel Cost component
Delivered Fuel Price (inclusive of transportation) at

the Power Plant
Variable O&M (Foreign)
US$ to Pak Rupees & US CPI
Variable O&M (Local
Pakistan PI
Fixed O&M (Foreign)
US$ to Pak Rupees & US CPI
Fixed O&M (Local
Pakistan CPI
Cost of Working Capital
Adjustments for relevant KIBOR variations
Return on Equity
US$ to Pak Rupees
Principal Repayment
(Foreign Currency Loan)
US$/Euro/Yen/Pound to Pak Rupees (based

on borrowing by the Company)
Interest//Mark-up Payments*
(Foreign Currency Loan)
Adjustments for relevant LIBOR or other

applicable Interest Rate benchmark
Adjustment for variation in Rs./Foreign Currency
(US$/Euro/Yen/Pound) rates as applicable
Interest/Mark-up Payments*
(Local Currency Loan)
IX.
Adjustments for relevant KIBOR variations
Validity of Tariff
This tariff shall remain in force for a period of 2 years from the date of notification in the
official gazette. The revision in upfront tariff for next validity period shall be undertaken at
least six months prior to the end of the validity period and in case upfront tariff for the next
validity period is not notified until the commencement of next validity period, the reference
tariff parameters as per this determination shall continue to remain applicable until
notification of the revised upfront tariff.
X.
Scope and extent of application
This tariff shall apply in all cases for a generating facility or a unit thereof based on
imported/local coal other than Thar coal subject to fulfillment of eligibility criteria.
XI.
Eligibility Criteria
The upfront tariff shall be only available for the brand new machinery only.
28

XII. Definitions and Interpretations
i.
"Auxiliary energy consumption" means the quantum of energy consumed by auxiliary

equipment of the generating facility, and transformer losses within the generating
facility, expressed in Megawatts as well as in percentage of the sum of gross output at
the generator terminals of all the units of the generating plant;
ii. "Capital cost" means the cost of all capital work including plant and machinery, civil work,
erection and commissioning and evacuation infrastructure up to inter-connection point;
iii. "Control Period" means the period required to achieve the financial close and complete
the construction of generation facility. The Control Period shall be of six years starting
from the date of unconditional opting of the upfront tariff.
iv. "Design Coal" means the ideal type of coal or fuel that is selected to be used during
performance testing of steam generators in power plant engineering;
v.
"Grace Period" means a period equivalent to the construction period of the coal project.
vi. "Installed capacity" means the summation of the name plate capacities of all the units of
the generating facility or the capacity of the generating facility (reckoned at the generator
terminals), approved by the Authority from time to time as indicated in the generation
license;
vii. "Inter-connection Point" shall mean interface point of energy generating facility with the
transmission system or distribution system, as the case may be:
viii. "Operation and maintenance expenses" or 'O&M expenses' means the expenditure
incurred on operation and maintenance of the project, or part thereof, and includes the
expenditure on manpower, repairs, spares, consumables and overheads;
ix. "Project" means a generating facility or the evacuation system up to inter-connection
point;
x.
"Tariff period" means the period for which the upfront tariff has been determined by the
Authority on the basis of reference parameters which in the instant case is 30 years. The
tariff period shall commence from the date of commercial operation.
xi. 'Useful Life' in relation to a unit of a generating facility including evacuation system shall
mean the period during which the generating facility including evacuation system is
expected to be usable for the purpose of generating electricity from the date of
commercial operation (COD) of such generation facility, namely coal based power project
is 30 years;
xii. "Year" means a period of 12 months.
XIII. The above order along with 13 annexes will be notified in the Official Gazette in accordance
with Section 31(4) of the NEPRA Act.
Table - XXI
Annex-1
Reference Tariff Table 330MW Thar Coal Foreign Financing
Annex-1A
Debt Repayment Schedule
(t,
29

Annex-2
Reference Tariff Table 330MW Thar Coal Local Financing
Annex-2A
Annex-3
Annex-3A
Annex-4
Annex-4A
Annex-5
Annex-5A
Annex-6
Annex-6A
Annex-7
Summary of Upfront Coal Tariff
Authority
am:
Khawaja Muhammad Naeem
Major (Retd.) Haroon Rashid
Member
Member
(Y/717-0 /9
Habibullah Khilji
Member / Vice Chairman
30
11 front Tariff for Thar Coal based Power Projects for 330 MW on Foreign Financing
Year
Energy Purchase Price (Rs./kWh)
Ash
Lime
Var. O&M
Var. FCC ' . Water
Charges , Disposal . Stone
Foreign ... Local
Fixed FCC
Total
EPP
Rs/kW/hr.
Annex -1
Capacity PurChase Price (PKR/kW/Hour)
at 85% PF
(Rs/1(M)
- Fixed Om
Local Foreign
'..,. Cost of
'. W/C
Insurance.
ROE
Debt ..
Repayment
interest
Charges
Total
CPP
Capacity
Total..
Total
Charge* . Tariff .
Tariff
85%
Rs. /kWh Cents/kWh
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.1677
1.4075
0.5071
0.2200
1.0933
0.0900
0.6620
0.0684
3.6736
0.0456
4.3218
2.0988
2.5132
9.3773
2.9567
0.1535
0.1535
0.1094
0.0944
1.4075
1.1484
0.6068
3.6736
4.3218
9.3773
9.6574
2.9567
0.1535
0.1535
0.1094
0.0944
1.4075
1.2063
0.5489
3.6736
4.3218
9.3773
9.6574
9.6574
9.6574
1.1677
0.5071
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.1677
1.4075
0.5071
1.2672
0.2200
0.0900
0.4881
0.0684
3.6736
0.0456
4.3218
2.0988
9.3773
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.4075
1.3311
0.4242
3.6736
4.3218
9.3773
2.5132
9.6574
2.9567
0.1535
0.1535
0.1094
0.0944
1.4075
1.3982
0.3571
3.6736
4.3218
9.3773
9.6574
1.1677
0.5071
0.2200
0.2200
0.0900
0.0900
0.0684
0.0684
0.0456
0.0456
2.0988
2.0988
2.5132
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.1677
1.4075
1.4687
0.5071
0.2200
0.0900
0.2866
3.6736
0.0684
0.0456
4.3218
2.0988
9.3773
2.5132
9.6574
2.9567
0.1535
0.1535
0.1094
0.0944
1.4075
1.5428
0.2125
3.6736
4.3218
9.3773
9.6574
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
10
1.1677
1.4075
0.5071
1.6206
0.2200
0.1347
0.0900
0.0684
3.6736
4.3218
0.0456
2.0988
9.3773
2.5132
9.6574
2.9567
0.1535
0.1535
0.1094
0.0944
1.4075
1.7023
0.0530
3.6736
4.3218
9.3773
9.6574
6.3905
11
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
12
1.1571
1.4075
0.4200
0.0000
01200
0.0000
0.0900
1.9183
0.0684
0.0456
2.2568
2.0010
6.2052
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
6.2052
6.3905
1.9473
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
6.2052
6.3905
13
1.1571
0.4200
0.2200
14
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
15
1.4075
1.1571
0.4200
0.0000
0.2200
0.0000
0.0900
1.9183
0.0684
0.0456
2.2568
2.0010
6.2052
1.6552
6.3905
1.9473
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
6.2052
6.3905
0.0900
0.0684
0.0456
2.0010
1.6552
16
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
17
1.1571
1.4075
0.4200
0.0000
0.2200
0.0000
0.0900
1.9183
0.0684
0.0456
2.2568
2.0010
1.6552
6.2052
6.3905
1.9473
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
6.2052
6.3905
18
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
19
1.1571
1.4075
0.4200
0.0000
0.2200
0.0000
0.0900
0.0684
1.9183
0.0456
2.2568
2.0010
6.2052
1.6552
1.9473
6.3905
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
6.2052
6.3905
6.3905
20
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
21
1.1571
1.4075
0.4200
0.0000
0.2200
0.0900
0.0000
0.0684
1.9183
0.0456
2.2568
2.0010
6.2052
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
1.4714
6.2052
1.7310
6.3905
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
5.9889
6.1677
6.1677
22
1.1571
0.4200
0.2200
23
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
24
1.1571
1.4075
0.4200
0.0000
0.2200
0.0000
0.0900
0.0684
1.9183
0.0456
2.2568
2.0010
5.9889
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
5.9889
1.4714
6.1677
1.7310
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
5.9889
6.1677
6.1677
0.0900
0.0684
0.0456
2.0010
25
1.1571
26
1.1571
0.4200
0.2200
0.0900
0 0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
0.1094
27
0.0944
1.1571
1.4075
0.4200
0.0000
0.2200
0.0000
0.0900
0.0684
1.9183
0.0456
2.2568
2.0010
5.9889
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
5.9889
1.4714
6.1677
1.7310
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
5.9889
6.1677
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
5.9889
6.1677
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
5.9889
6.1677
28
1.1571
0.4200
0.4200
0.2200
0.2200
0.0900
0.0900
0.0684
0.0684
0.0456
0.0456
2.0010
2.0010
29
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
30
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310_
0.1535
0.1535
Averaae
1-10
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
11-30
1.1571
1 4075
0.4200
1.3779
0.2200
0.3774
0.0900
3.6736
0.0684
4.3218
0.0456
2.0010
9.3773
1.5725
9.6574
1 8500
0.1535
0.1535
0.1094
0.0944
1.4075
0.0000
0.0000
1.9183
2.2568
2.2189
6.1078
0.1535
6.2903
0.1535
0.1094
0.0944
1.4075 _
0.4593
0.1258
2.5034
2.9452
7.1977
7.4126
2.5874
0.1535!
0.15351
0.10941
0.0944
1.4075
0.86431
0.2798
3.0624
3.6028
8.2550
8.5015
1-30
1.1606
0 4490
0.2200
0.0900
0.0684
0.0456 _ 2.0336
1.8860
Levelized
1-30
1.1640
0.4768
0.2200
0.0900
0.0684
0.0456
2.0648
2.1993
Levelized Tariff =
8.2550 Rs./kWh
3i
8.5015 Cents/kWh
Annex-1A
Upfront Tariff - Debt Servicing on Foreign Financing

Gross Capacity
Net Capacity
LIBOR
Spread over LIBOR
Total Interest Rate
330.00
300.30
0.45%
4.50%
4.95%
Principal
Principal
Repayment
Million $
Million $
1
373.30
7.27
2
366.03
7.36
3
358.67
7.45
4
351.22
7.54
1st Year
29.62
5
343.68
7.64
6
336.04
7.73
7
328.31
7.83
8
320.48
7.92
2nd Year
31.11
9
312.56
8.02
10
304.54
8.12
11
296.42
8.22
12
288.20
8.32
3rd Year
32.68
13
279.88
8.42
14
271.46
8.53
15
262.93
8.63
16
254.29
8.74
4th Year
34.33
17
245.55
8.85
18
236.70
8.96
19
227.74
9.07
20
_ 218.67
9.18
5th Year
36.06
21
209.49
9.30
22
200.19
9.41
23
190.78
9.53
24
181.25
9.65
6th Year
37.88
25
171.61
9.76
26
161.84
9.89
27
151.96
10.01
28
_
141.95
10.13
7th Year
39.79
29
131.82
10.26
30
121.56
10.38
31
111.18
10.51
32
100.66
10.64
8th Year
41.80
33
90.02
10.77
34
79.25
10.91
35
68.34
11.04
36
57.30
11.18
9th Year
43.90
37
46.12
11.32
38
34.80
11.46
39
23.34
11.60
40
11.74
11.74
10th Year
46.12
Period
MWs
MWs
Interest
Million $
4.62
4.53
4.44
4.35
17.93
4.25
4.16
4.06
3.97 _
16.44
3.87
3.77
3.67
3.57
14.87
3.46
3.36
3.25
3.15
13.22
3.04
2.93
2.82
2.71
11.49
2.59
2.48
2.36
2.24
9.67
2.12
2.00
1.88
1.76 _
7.76
1.63
1.50
1.38
1.25
5.76
1.11
0.98
0.85
0.71
3.65
0.57
0.43
0.29
0.15
1.44
Parity
Debt
Debt in Pak Rupees
97.10 PKR/US$
373.30 US$ Million
36,246.96 PKR Million
Debt
Principal
Interest
Debt
Service
Repayment Rs./kW/
Servicing
Million $ Rs./kW/hour Hour
Rs./kW/h
366.03
$11.89
358.67
11.89
351.22
11.89
1.0933
343.68
11.89
0.6620
1.7553
47.55
336.04
11.89
328.31
11.89
320:48
11.89
1.1484
312.56 _
11.89
0.6068
1.7553
47.55
304.54
11.89
296.42
11.89
288.20
11.89
1.2063
279.88
0.5489
11.89 _
1.7553
47.55
271.46
11.89
262.93
11.89
254.29
11.89
1.2672
245.55
0.4881
11.89
1.7553
47.55
236.70
11.89
227.74
11.89
218.67
11.89
1.3311
0.4242
209.49
11.89
1.7553
47.55
200.19
11.89
190.78
11.89
181.25
11.89
1.3982
171.61
0.3571
1.7553
11.89
47.55
161.84
11.89
151.96
11.89
141.95
11.89
1.4687
0.2866
131.82 _
1.7553
11.89 _
47.55
121.56
11.89
111.18
11.89
100.66
11.89
1.5428
0.2125
1.7553
90.02
11.89
47.55
79.25
11.89
68.34
11.89
57.30
11.89
1.6206
0.1347
1.7553
46.12 _
11.89 _
47.55
34.80
11.89
23.34
11.89
11.74
11.89
1.7023
0.0530
1.7553
11.89
47.55
Balaance
Million $
32_
Upfront Tariff for Thar Coal based Power Projects for 330 MW on Local Financing
Year
Energy Purchase Price(Rs./kWh).

....Water
. :Ash
Var. O&M
:Lime
Var. FCC

. 'Charges :Disposal , : Stone

foreign
Local
Fixed FCC
Total
EPP
at 85% PF
(Rs./kWh)
.
.
,
"'''.
:.: Fixed O&M...

I Foreign '..
Annex - 2
' Capacity Purchase Price (PKRAWA- our)

_
Cost of
.
p rw.
Debt '.
Interest
WC
insurance,
--- . Repayment. Charges
..: Total
'..: CPP
Capacity
Total
Charge@
. Tariff
85%
Rs. /kWh
. Total ..
. Tariff
.Gantt/kWh
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
0.6852
2.2490
4.9612
5.8367
10.8922
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
0.7971
2.1371
4.9612
5.8367
10.8922
11.2176
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
0.9272
2.0070
4.9612
5.8367
10.8922
11.2176
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
1.0785
1.8557
4.9612
5.8367
10.8922
11.2176
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
1.2546
1.6796
4.9612
5.8367
10.8922
11.2176
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
1.4594
1.4748
4.9612
5.8367
10.8922
11.2176
11.2176
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
1.6976
1.2366
4.9612
5.8367
10.8922
11.2176
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
1.9747
0.9595
4.9612
5.8367
10.8922
11.2176
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
2.2970
0.6372
4.9612
5.8367
10.8922
11.2176
10
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
2.6720
0.2622
4.9612
5.8367
10.8922
11.2176
11
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
6.5222
12
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
6.5222
13
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
6.5222
14
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
6.5222
15
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
6.5222
16
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
6.5222
6.5222
17
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
18
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
6.5222
19
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
6.5222
20
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
6.5222
21
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.6552
1.9473
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.3331
6.5222
22
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.1168
6.2995
23
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.1168
6.2995
24
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.1168
6.2995
25
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.1168
6.2995
26
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.1168
6.2995
27
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.1168
6.2995
28
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.1168
6.2995
29
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
30
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.4714
1.7310
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.1168
6.2995
1.7310
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.1168
6.2995
vera e
1-10
1.1677
0.5071
0.2200
0.0900
0.0684
0.0456
2.0988
2.5132
2.9567
0.1535
0.1535
0.1094
0.0944
1.5163
1.4843
1.4499
4.9612
5.8367
10.8922
11.2176
11-30
1.1571
0.4200
0.2200
0.0900
0.0684
0.0456
2.0010
1.5725
1.8500
0.1535
0.1535
0.1094
0.0944
1.5163
0.0000
0.0000
2.0270
2.3847
6.2358
6.4220
1-30
1.1606
0.4490
0.2200
0.0900
0.0684
0.0456
2.0336
1.8860
2.2189 _
0.1535
0.1535
0.1094
0.0944
1.5163
0.4948
0.4833
3.0051
3.5354
7.7879
8.0205
1.1640
0.4768
0.2200
0.0900
0.0684
0.0456
2.0648J
2.1993
2.5874
0.1535
0.1535
0.1094
0.0944
1.5163
0.8608
1.0518
3.9396
4.6348
9.2869
9.5643
Levelized
1-30
eve ize
9.2869 Rs./kWh
9.5643 Cents/kWh
Annex-2A
Upfront Tariff - Debt Servicing on Local Financing

Gross Capacity
Net Capacity
KIBOR
Spread over KIBOR
Total Interest Rate
330.00
300.30
11.91%
3.50%
15.41%
MWs
MWs
Parity
Debt
Debt in Pak Rupees
97.10 PKR/US$
402.13 US$ Million
Principal
Debt
Principal
Interest
Debt
Principal
Interest Balaance
Repayment
Service
Repayment
Rs./kW/
Servicing
Million $
Million $
Million $
Million $
Rs./kW/h
1
402.13
4.38
15.49
397.75
$19.87
2
397.75
4.55
15.32
393.20
19.87
3
393.20
4.73
15.15
388.48
19.87
4
388.48 _
4.91
14.97 _
0.6852
383.57
2.2490
19.87
2.9342
1st Year
18.56
60.93
79.49
5
383.57
5.10
14.78
378.47
19.87
6
378.47
5.29
14.58
373.18
19.87
7
373.18
5.50
14.38
367.68
19.87
8
367.68
5.71
14.16 _
0.7971
361.97 _
2.1371
19.87
2.9342
2nd Year
21.59
57.90
79.49
9
361.97
5.93
13.95
356.05
19.87
10
356.05
6.16
13.72
349.89
19.87
11
349.89
6.39
13.48
343.50
19.87
12
343.50
6.64
0.9272
13.23 _
336.86
2.0070
2.9342
19.87 _
3rd Year
25.12
54.37
79.49
13
336.86
6.90
12.98
329.96
19.87
14
329.96
7.16
12.71
322.80
19.87
15
322.80
7.44
12.44
315.36
19.87
16
315.36
7.72
1.0785
12.15
1.8557 _
307.64
19.87
2.9342
4th Year
29.22
50.27
79.49
17
307.64
8.02
11.85
299.61
19.87
18
299.61
8.33
11.54
291.28
19.87
19
291.28
8.65
11.22
282.63
19.87
20
282.63
1.2546
8.98
10.89
1.6796
2.9342
273.65
19.87 _
5th Year
33.99
45.50
79.49
21
273.65
9.33
10.54
264.32
19.87
22
264.32
9.69
10.18
254.63
19.87
23
254.63
10.06
9.81
244.56
19.87
24
244.56
1.4594
10.45
1.4748
9.42
2.9342
234.11
19.87
6th Year
39.54
39.96
79.49
25
234.11
10.85
9.02
223.26
19.87
26
223.26
11.27
8.60
211.98
19.87
27
211.98
11.71
8.17
200.28
19.87
28
200.28
12.16
1.6976
7.72
1.2366
2.9342
188.12
19.87
7th Year
45.99
33.50
79.49
29
188.12
12.63
7.25
175.49
19.87
30
175.49
13.11
6.76
162.38
19.87
31
162.38
13.62
6.26
148.76
19.87
32
1.9747
148.76
14.14 _
0.9595 _
5.73
2.9342
134.62
19.87
8th Year
53.50
25.99
79.49
33
134.62
14.69
5.19
119.93
19.87
34
119.93
15.25
4.62
104.68
19.87
35
104.68
15.84
4.03
88.84
19.87
36
_
2.2970
88.84
0.6372
16.45
2.9342
3.42 _
72.39
19.87
9th Year
62.23
17.26
79.49
37
72.39
17.08
2.79
55.31
19.87
38
55.31
17.74
2.13
37.56
19.87
39
37.56
18.43
1.45
19.14
19.87
40
19.14
2.6720 _
19.14
0.2622
2.9342
0.74
(0.00)_
19.87
10th Year
72.39
7.10
79.49
Period
Upfront Tariff for Thar Coal based Power Projects for 660 MW on Foreign Financing
Fixed FCC '..
:Efleigy Purchase Price ffRs./kWh)
Capacity Purchase PriCe (PKR/kW/Hour)
Year
Var. FCC
1.1081
0.5071
1.1081
Lime
Stone
Var. O&M
Foreign
Local
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
Water . ." Ash

Charges :. Disposal
Total
EPP
at 85% PF
ft/kW/hr.
.
ARs./kWh)
Fixed O&M
'.. Local . Foreign
Cost of
W/C
Insurance
0.1435
0.1038
0.1021
0.1435
0.1435
0.1038
2.8056
0.1435
0.1435
2.3848
2.8056
0.1435
0.1435

ROE
Annex - 3
Capacity.. '....T.Otal.
Charge
.:. Tariff .
Total
Tariff
Rs. /kWh : Cents/kWh
, : Debt
Rejsayment
Interest
Charges
1.5062
1.0397
0.6295
3.6683
4.3157
9.1604
9.4340
0.1021
1.5062
1.0921
0.5771
3.6683
4.3157
9.1604
9.4340
0.1038
0.1021
1.5062
1.1472
0.5220
3.6683
4.3157
9.1604
9.4340
0.1038
0.1021
1.5062
1.2050
0.4641
3.6683
4.3157
9.1604
9.4340
Total
CPP
854 . -
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.5062
1.2658
0.4034
3.6683
4.3157
9.1604
9.4340
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.5062
1.3296
0.3396
3.6683
4.3157
9.1604
9.4340
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.5062
1.3966
0.2725
3.6683
4.3157
9.1604
9.4340
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.5062
1.4671
0.2021
3.6683
4.3157
9.1604
9.4340
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.5062
1.5410
0.1281
3.6683
4.3157
9.1604
9.4340
10
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.5062
1.6188
0.0504
3.6683
4.3157
9.1604
9.4340
11
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
6.3251
12
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
6.3251
13
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
6.3251
14
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
6.3251
15
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
6.3251
16
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
6.3251
6.3251
17
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
18
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
6.3251
19
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
6.3251
20
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
6.3251
21
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.1417
6.3251
22
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
5.9365
6.1138
23
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
5.9365
6.1138
24
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
5.9365
6.1138
25
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
5.9365
6.1138
26
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
5.9365
6.1138
27
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
5.9365
6.1138
28
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
5.9365
6.1138
29
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
5.9365
6.1138
30
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.5062 _
0.0000
0.0000
1.9992
2.3520
5.9365
6.1138
Average
1-10
1.1081
0.5071
0.2200
0.0900
0.0684
0,0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.5062
1.3103
0.3589
3.6683
4.3157
9.1604
9.4340
11-30
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.4921
1.7555
0.1435
0.1435
0.1038
0.1021
1.5062
0.0000
0.0000
1.9992
2.3520
6.0493
6.2300
1-30
1.1013
0.4490
0.2200
0.0900
0.0684_
0.0456
1.9743
1.7897
2.1055
0.1435
0.1435
0.1038
0.1021
1.5062_
0.4368
0.1196
2.5555
3.0065
7.0864
7.2980
1.1045
0.4768
0.2200
0.0900
0.0684
0.0456
2.00531
2.0869
2.4552
0.1435
0.1435
0.1038
0.1021
1.50621
0.8219
0.2661
3.0871
3.63191
8.0924
8.3341
Level ized
1-30
evelized Tariff =
8.0924 Rs./kWh
8.3341 Cents/kWh
Annex-3A
Gross Capacity
Net Capacity
LIBOR
Spread over LIBOR
Total Interest Rate
Period
Principal
Million $
659.34
606.59
0.45%
4.50%
4.95%
MWs
MWs
Principal
Interest
Repayment
Million $
Million $
13.96
8.87
14,14
8.70
14.31
8.53
_
14.49 _
8.35
56.89
34.45
Parity
Debt
Debt in Pak Rupees
Debt
Service
Million $
$22.84
22.84
22.84
22.84
91.34
Balaance
Million $
1
2
3
4
1st Year
717.04
703.08
688.95
674.64
5
6
7
8
2nd Year
660.15
645.48
630.63
615.60
14.67
14.85
15.03
15.22
59.76
8.17
7.99
7.80
7.62
31.58
645.48
630.63
615.60
600.39
22.84
22.84
22.84
22.84 _
91.34
9
10
11
12
3rd Year
600.39
584.98
569.38
553.59
15.41
15.60
15.79
15.99
62.78
7.43
7.24
7.05
6.85
28.57
584.98
569.38
553.59
537.61
22.84
22.84
22.84
22.84
91.34
13
14
15
16
4th Year
537.61
521.42
505.04
488.46
16.18
16.38
16.59
16.79 _
65.94
6.65
6.45
6.25
6.04
25.40
521.42
505.04
488.46
471.66 _
22.84
22.84
22.84
22.84
91.34
17
18
19
20
5th Year
471.66
454.67
437.46
420.03 _
17.00
17.21
17.42
17.64
69.27
5.84
5.63
5.41
5.20
22.07
454.67
437.46
420,03
402.40
22.84
22.84
22.84
22.84
91.34
21
22
23
24
6th Year
402.40
384.54
366.46
348.16
17.86
18.08
18.30
18.53
72.76
4.98
4.76
4.53
4.31
18.58
384.54
366.46
348.16
329.63
22.84
22.84
22.84
22.84
91.34
25
26
27
28
7th Year
329.63
310.88
291.89
272.67
18.76
18.99
19.22
19.46
76.43
4.08
3.85
3.61
3.37
14.91
310.88
291.89
272.67
253.20 _
22.84
22.84
22.84
22.84 _
91.34
29
30
31
32
8th Year
253.20
233.50
213.56
193.36
19.70
19.95
20.19
20.44
80.28
3.13
2.89
2.64
2.39
11.06
233.50
213.56
193.36
172.92
22.84
22.84
22.84
22.84 _
91.34
33
34
35
36
9th Year
172.92
152.22
131.27
110.06
20.70
20.95
21.21
21.47
84.33
2.14
1.88
1.62
1.36 _
7.01
152.22
131.27
110.06
88.59
22.84
22.84
22.84
22.84 _
91.34
88.59
66.85
44.84
22.56
21.74
22.01
22.28
22.56 _
88.59
1.10
0.83
0.55
0.28
2.76
37
38
39
40
10th Year
703.08
688.95
674.64
660.15
66.85
44.84
22.56
(0.00)
22.84
22.84
22.84
22.84
91.34
97.10 PKR/US$
717.04 US$ Million
Principal
Interest
Repayment Rs./kW/
Rs./kW/hour Hour
Debt
Servicing
Rs./kW/h
1.0397
0.6295
1.6691
1.0921
0.5771
1.6691
1.1472
0.5220
1.6691
1.2050
0.4641
1.6691
1.2658
0.4034
1.6691
1.3296
0.3396
1.6691
1.3966
0.2725
1.6691
1.4671
0.2021
1.6691
1.5410
0.1281
1.6691
1.6188
0.0504
1.6691
Upfront Tariff for Thar Coal based Power Projects for 660 MW on Local Financing
'.

: . liar. FCC
Water
Charges
Energy:
. - 'ASh
Disposal
Fixed FCC.
Price (Rs./kWh)
.. '.. Var. O&M Lime
Stone
Foreign " , Local
Total
EPP.

Rs./kW/hr
. .
at 85% PF..
(Ai jkwh.:.:
)
Fixed O&M
Local
Foreign :
Annex
- Capacity Purchase Price (P.KikiliW Hour) ...

Cost of
Dahl'
ROE
W/C
Insurance
Repayment
Interest
Total
Charges
CRP
Capacity
Charge@
65%
Total .
Total ..
Tarlfr:. Tatiff,'..:
Ra /kWh.. Cents/kWh
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
0.6839
2.2445
5.1242
6.0285
10.8733
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
0.7955
2.1329
5.1242
6.0285
10.8733
11.1980
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
0.9253
2.0030
5.1242
6.0285
10.8733
11.1980
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
1.0764
1.8520
5.1242
6.0285
10.8733
11.1980
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
1.2521
1.6763
5.1242
6.0285
10.8733
11.1980
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
1.4565
1.4719
5.1242
6.0285
10.8733
11.1980
11.1980
11.1980
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
1.6942
1.2342
5.1242
6.0285
10.8733
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
1.9708
0.9576
5.1242
6.0285
10.8733
11.1980
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
2.2925
0.6359
5.1242
6.0285
10.8733
11.1980
10
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
2.6667
0.2617
5.1242
6.0285
10.8733
11.1980
11
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
12
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
13
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
14
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
15
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
16
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
17
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
18
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
19
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
20
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
21
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.5706
1.8478
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.3731
6.5634
22
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.1678
6.3521
23
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.1678
6.3521
24
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.1678
6.3521
25
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.1678
6.3521
26
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.1678
6.3521
27
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.1678
6.3521
6.3521
28
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.1678
29
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.1678
6.3521
30
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.3962
1.6426
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.1678
6.3521
11.1980
Average
1-10
1.1081
0.5071
0.2200
0.0900
0.0684
0.0456
2.0392
2.3848
2.8056
0.1435
0.1435
0.1038
0.1021
1.7029
1.4814
1.4470
5.1242
6.0285
10.8733
11-30
1.0979
0.4200
0.2200
0.0900
0.0684
0.0456
1.9419
1.4921
1.7555
0.1435
0.1435
0.1038
0.1021
1.7029
0.0000
0.0000
2.1958
2.5833
6.2807
6.4683
1-30
1.1013
0.4490
0.2200
0.0900
0.0684
0.0456
1.9743
1.7897
2.1055
0.1435.
0.1435
0.1038
0.1021
1.7029
0.4938
0.4823_
3.1720
3.7317
7.8116
8.0449
1.1045
0.4768
0.2200
0.0900
0.0684
0.0456
..
2.0053
.__
2.0869
2.4552
0.1435
0.1435
0.1038
0.1021
1.7029
0.8591
1.0497
4.1046
4.8289
9.2894
9.5668
Level ized
1-30
eve izea 1 arltt =
.2894 Rs./kWh
9.5668 Cents/kWh
Annex-4A
Gross Capacity
Net Capacity
KIBOR
Spread over KIBOR
Total Interest Rate
659.34
606.59
11.91%
3.50%
15.41%
MWs
MWs
Parity
Debt
Debt in Pak Rupees
Principal
Principal
Interest
Balaance
Repayment
Million $
Million $
Million $
Million $
1
810.67
8.83
31.23
801.84
2
801.84
9.17
30.89
792.67
3
792.67
9.53
30.54
783.14
4
783.14
9.89
30.17
773.25
1st Year
37.42
122.83
5
773.25
10.27
29.79
762.98
6
762.98
10.67
29.39
752.31
7
752.31
11.08
28.98
741.23
8
741.23
11.51
28.56
729.72
2nd Year
43.53
116.72
9
729.72
11.95
28.11
717.77
10
717.77
12.41
27.65
705.36
11
705.36
12.89
27.17
692.47
12
692.47
13.39
26.68
679.08
3rd Year
50.64
109.62
13
679.08
13.90
26.16
665.18
14
665.18
14.44
25.63
650.74
15
650.74
14.99
25.07
635.75
16
_ 635.75
15.57
24.49
620.18
4th Year
58.90
101.35
17
620.18
16.17
23.89
604.01
18
604.01
16.79
23.27
587.21
19
587.21
17.44
22.62
569.77
20
569.77 _
18.11 _
21.95
551.66
5th Year
68.52
91.73
21
551.66
18.81
21.25
532.85
22
532.85
19.54
20.53
513.31
23
513.31
20.29
19.78
493.02
24
493.02
21.07
18.99 _
471.95
6th Year
79.70
80.55
25
471.95
21.88
18.18
450.07
26
450.07
22.72
17.34
427.35
27
427.35
23.60
16.46
403.75
28
403.75 _
24.51
15.55 _
379.24
7th Year
92.72
67.54
29
379.24
25.45
14.61
353.78
30
353.78
26.43
13.63
327.35
31
327.35
27.45
12.61
299.90
32
299.90 _
28.51
11.55
271.39
8th Year
107.85
52.40
33
271.39
29.61
10.46
241.78
34
241.78
30.75
9.31
211.03
35
211.03
31.93
8.13
179.10
36
179.10
33.16 _
6.90
145.93
9th Year
125.45
34.80
37
145.93
34.44
5.62
111.49
38
111.49
35.77
4.30
75.72
39
75.72
37.15
2.92
38.58
40
38.58
38.58
1.49
(0.00)
10th Year
145.93
14.32
Period
97.10 PKR/US$
810.67 US$ Million
Debt
Principal
Interest
Debt
Service
Repayment Rs./kW/
Servicing
Rs./kW/h
$40.06
40.06
40.06
0.6839
2.2445 _
40.06
2.9284
160.25
40.06
40.06
40.06
0.7955
2.1329
2.9284
40.06
160.25
40.06
40.06
40.06
0.9253
2.0030
2.9284
40.06
160.25
40.06
40.06
40.06
1.0764 _
1.8520 _
2.9284
40.06 _
160.25
40.06
40.06
40.06
1.2521
1.6763
2.9284
40.06
160.25
40.06
40.06
40.06
1.4565
1.4719
2.9284
40.06
160.25
40.06
40.06
40.06
40.06 _
160.25
40.06
40.06
40.06
40.06
160.25
40.06
40.06
40.06
40.06
160.25
40.06
40.06
40.06
40.06
160.25
1.6942
1.2342
2.9284
1.9708
0.9576
2.9284
2.2925
0.6359
2.9284
2.6667 _
0.2617
2.9284
38
Year
: .
Var. FCC
U front Tariff for Thar Coal based Power Pro'ects for 1 099 MW on Forel n Financin
,Fixed FCC :
:. Energy Purchase Price (Rs:/kWh)
Capacity Purchase Price (PKR/kW/Hour)
Water.
Ash
. Var.' O&M
Total
Lime
Rsikimihr. at 85% PF
- Fixed O&M
Cost of :
Debt
'FROE
Annex - 5
Total
' Tariff
Cents/kWh
Charge&
DiSposal
Stone
Repayment
Interest
Charges
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
0.9681
0.5861
3.4191
4.0224
8.7694
9.0313
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
1.0169
0.5373
3.4191
4.0224
8.7694
9.0313
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
1.0682
0.4861
3.4191
4.0224
8.7694
9.0313
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
1.1220
0.4322
3.4191
4.0224
8.7694
9.0313
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
1.1786
0.3756
3.4191
4.0224
8.7694
9.0313
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
1.2381
0.3162
3.4191
4.0224
8.7694
9.0313
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
1.3005
0.2537
3.4191
4.0224
8.7694
9.0313
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
1.3661
0.1882
3.4191
4.0224
8.7694
9.0313
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
1.4350
0.1193
3.4191
4.0224
8.7694
9.0313
10
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
1.5073
0.0469
3.4191
4.0224
8.7694
9.0313
11
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
12
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
13
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
14
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
15
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
16
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
17
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
18
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
19
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
20
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
21
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.9100
6.0865
22
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.7099
5.8804
23
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.7099
5.8804
24
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.7099
5.8804
25
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.7099
5.8804
26
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.7099
5.8804
27
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.7099
5.8804
28
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.7099
5.8804
29
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.7099
5.8804
30
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.7099
5.8804
9.0313
Foreign Local ..:
EPP
' (Rs:/kWh)
Local
Foreign
W/C
Insurance
.....
Total
CPP
Capacity _ Tdtel
Charge(g)
Tariff
85%
Rs. /kWh
Average
1-10
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.4025
1.2201
0.3342
3.4191
4.0224
8.7694
11-30
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.4548
1.7116
0.1330
0.1330
0.1012
0.0951
1.4025
0.0000
0.0000
1.8648
2.1939
5.8200
5.9938
1-30
1.0738
0.4490
0.2200
0.0900
0.0684
0.0456
1.9468
1.7449
2.0529
0.1330
0.1330
0.1012
0.0951
1.4025
0.4067
0.1114
2.3829
2.8034
6.8031
7.0063
1.0769
0.4768
0.2200
0.0900
0.0684
0.04561
1.9777
2.03471
2.3938
0.1330
0.1330
0.1012
0.0951
1.4025
0.7653
0.2478
2.8779
3.3858
7.7572
7.9889
Levelized
1-30
Levelized Tariff =
7.7572 Rs./kWh
7.9889 Cents/kWh
Annex-5A

Gross Capacity
Net Capacity
LIBOR
Spread over LIBOR
Total Interest Rate
Period
1
2
3
4
1st Year
5
6
7
8
2nd Year
9
10
11
12
3rd Year
13
14
15
16
4th Year
17
18
19
20
5th Year
21
22
23
24
6th Year
25
26
27
28
7th Year
29
30
31
32
8th Year
33
34
35
36
9th Year
37
38
39
40
10th Year
1098.90
MWs
Parity
1010.99
MWs
Debt
0.45%
Debt in Pak Rupees
4.50%
4.95%
Principal
Debt
Principal
Interest Balaance
Repayment
Service
Million $
Million $ Million $
Million $
Million $
1,112.80
21.67
13.77
1,091.13
$35.44
1,091.13
21.94
13.50
1,069.19
35.44
1,069.19
22.21
13.23
1,046.98
35.44
1,046.98
22.48
12.96 _ 1,024.50
35.44
88.30
53.46
141.76
1,024.50
22.76
12.68
1,001.74
35.44
1,001.74
23.04
12.40
978.70
35.44
978.70
23.33
12.11
955.37
35.44
955.37
23.62
11.82
931.75
35.44
92.75
49.01
141.76
931.75
23.91
11.53
907.84
35.44
907.84
24.20
11.23
883.64
35.44
883.64
24.50
10.94
859.13
35.44
859.13
24.81
10.63 _
834.32
35.44
97.43
44.33
141.76
834.32
25.11
10.32
809.21
35.44
809.21
25.43
10.01
783.78
35.44
783.78
25.74
9.70
758.04
35.44
758.04
26.06
9.38
731.99
35.44
102.34
39.42
141.76
731.99
26.38
9.06
705.61
35.44
705.61
26.71
8.73
678.90
35.44
678.90
27.04
8.40
651.86
35.44
651.86 _
27.37
8.07
624.49 _
35.44
107.50
34.26
141.76
624.49
27.71
7.73
596.78
35.44
596.78
28.05
7.39
568.72
35.44
568.72
28.40
7.04
540.32
35.44
_ 540.32
28.75
6.69
511.57
35.44
112.92
28.84
141.76
511.57
29.11
6.33
482.46
35.44
482.46
29.47
5.97
452.99
35.44
452.99
29.83
5.61
423.16
35.44
423.16
30.20
5.24 _
392.95 _
35.44
118.61
23.14
141.76
392.95
30.58
4.86
362.38
35.44
362.38
30.96
4.48
331.42
35.44
331.42
31.34
4.10
300.08
35.44
300.08 _
31.73
3.71 _
268.36
35.44
124.60
17.16
141.76
268.36
32.12
3.32
236.24
35.44
236.24
32.52
2.92
203.72
35.44
203.72
32.92
2.52
170.80
35.44
170.80
33.33
2.11
137.48
35.44
130.88
10.88
141.76
137.48
33.74
1.70
103.74
35.44
103.74
34.16
1.28
69.58
35.44
69.58
34.58
0.86
35.01
35.44
_
35.01
35.01
0.43
(0.00):
35.44
137.48
4.28
141.76
4- 0
97.10 PKR/US$
1,112.80 US$ Million
Principal Interest
Repayment Rs./kW/
Rs./kW/hour Hour
Debt
Servicing
Rs./kW/h
0.9681
0.5861
1.5542
1.0169
0.5373
1.5542
1.0682
0.4861
1.5542
1.1220
0.4322
1.5542
1.1786
0.3756
1.5542
1.2381
0.3162
1.5542
1.3005
0.2537
1.5542
1.3661
0.1882
1.5542
1.4350 _
0.1193
1.5542
1.5073 _
0.0469
1.5542
U front Tariff for Thar Coal based Power Pro'ects for 1 099 M
_ W on Local Financin
Year
Var. FCC
Energy PUichastPiice (Rs./kWh)

Water
Var. O&M
=Lame
Charges
Disposal
Stone
Foreign
. Local
Total
EPP
FiZed FCC .
at 66%. pp
.
Rs.lkWihr: (Rs./kWh)
.
..:1.:.: Axed O&M.'

. LaCal Fdreign
Annex - 6
Capecity:PUrChase Price (PKR/kW How)

Cost of
Debt Interest.
ROE
..i WIC
Insurance
Repayment.. Charges.
Total
CPP
Total
Capacity
Charge@
Tariff
85%
RS::: /kWh
Total
Tariff
Ceints/kWh.
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
0.6368
2.0900
4.7747
5.6173
10.3643
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
0.7407
1.9860
4.7747
5.6173
10.3643
10.6738
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
0.8616
1.8651
4.7747
5.6173
10.3643
10.6738
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
1.0023
1.7245
4.7747
5.6173
10.3643
10.6738
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
1.1659
1.5609
4.7747
5.6173
10.3643
10.6738
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
1.3562
1.3706
4.7747
5.6173
10.3643
10.6738
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
1.5776
1.1492
4.7747
5.6173
10.3643
10.6738
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
1.8351
0.8917
4.7747
5.6173
10.3643
10.6738
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
2.1346
0.5921
4.7747
5.6173
10.3643
10.6738
10
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
2.4831
0.2437
4.7747
5.6173
10.3643
10.6738
11
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
12
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
13
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
14
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
15
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
16
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
17
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
18
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
19
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
20
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
21
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.5314
1.8016
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.1255
6.3084
22
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
5.9254
6.103
23
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
5.9254
6.1023
24
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
5.9254
6.1023
25
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
5.9254
6.1023
26
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
5.9254
6.1023
27
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
5.9254
6.1023
28
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
5.9254
6.1023
29
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
5.9254
6.1023
30
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.3613
1.6015
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
5.9254
6.1023
10.6738
verage
1-10
1.0804
0.5071
0.2200
0.0900
0.0684
0.0456
2.0115
2.3251
2.7355
0.1330
0.1330
0.1012
0.0951
1.5857
1.3794
1.3474
4.7747
5.6173
10.3643
10.6738
11-30
1.0705
0.4200
0.2200
0.0900
0.0684
0.0456
1.9145
1.4548
1.7116
0.1330
0.1330
0.1012
0.0951
1.5857
0.0000
0.0000
2.0480
2.4094
6.0354
6.2157
1-30
1.0738
0.4490
0.2200
0.0900
0.0684
0.0456
1.9468
1.7449
2.0529
0.1330
0.1330
0.1012
0.0951
1.5857
0.4598
0.4491
2.9569
3.4787
7.4784
7.7017
1.0769
0.4768
0.2200
0.0900
0.0684
0.0456
1.9777
2.0347
2.3938
0.1330
0.1330
0.1012
0.0951
1.5857
0.7999
0.9774
3.8253
4.5004
8.8718
9.1368
Levelized
1-30
eve izea 1 antt =
.8718 Rs./kWh
9.1368 Cents/kWh
Annex-6A
Upfront Tariff - Debt Servicing on Local Financing

Gross Capacity
Net Capacity
KIBOR
Spread over KIBOR
Total Interest Rate
Period
1
2
3
4
1st Year
5
6
7
8
2nd Year
9
10
11
12
3rd Year
13
14
15
16
4th Year
17
18
19
20
_
5th Year
21
22
23
24
6th Year
25
26
27
28
7th Year
29
30
31
32
_
8th Year
33
34
35
36
9th Year
37
38
39
40
_
10th Year
1098.90
1010.99
11.91%
3.50%
15.41%
MW
MWs
Parity
Debt
Debt in Pak Rupees
97.10 PKR/US$
1,258.10 US$ Million
Principal
Debt
Principal
Interest
Debt
Principal
Interest Balaance
Repayment
Service
Repayment
Rs./kW/
Servicing
Million $
Million $
Million $
Million $
Rs./kW/h
1,258.10
13.71
48.47
1,244.40
$62.18
1,244.40
14.23
47.94
1,230.16
62.18
1,230.16
14.78
47.39
1,215.38
62.18
1,215.38 _
15.35
0.6368
2.0900
46.82
1,200.02 _
2.7268
62.18
58.08
190.62
248.70
1,200.02
15.94
46.23
1,184.08
62.18
1,184.08
16.56
45.62
1,167.52
62.18
1,167.52
17.20
44.98
1,150.32
62.18
1,150.32
0.7407
17.86
44.32
1.9860
2.7268
1,132.47
62.18
67.56
181.14
248.70
1,132.47
18.55
43.63
1,113.92
62.18
1,113.92
19.26
42.91
1,094.66
62.18
1,094.66
20.00
42.17
1,074.65
62.18
1,074.65
0.8616 _
1.8651
20.77
2.7268
41.40
1,053.88
62.18
78.59
170.11
248.70
1,053.88
21.57
40.60
1,032.30
62.18
1,032.30
22.41
39.77
1,009.90
62.18
1,009.90
23.27
38.91
986.63
62.18
1.0023
1.7245 _
986.63
24.17
2.7268
38.01
962.46
62.18
91.41
157.29
248.70 .962.46
25.10
37.08
937.37
62.18
937.37
26.06
36.11
911.30
62.18
911.30
27.07
35.11
884.24
62.18
1.1659
884.24
1.5609
2.7268
28.11
34.07
856.13
62.18
106.34
142.36
248.70
856.13
29.19
32.98
826.93
62.18
826.93
30.32
31.86
796.62
62.18
796.62
31.49
30.69
765.13
62.18
1.3562
1.3706 _
2.7268
765.13 _
32.70
29.48
732.43
62.18 _
123.69
125.01
248.70
732.43
33.96
28.22
698.47
62.18
698.47
35.27
26.91
663.21
62.18
663.21
36.63
25.55
626.58
62.18
1.5776
1.1492
2.7268
626.58
38.04
24.14 _
588.55
62.18
143.89
104.81
248.70
588.55
39.50
22.67
549.04
62.18
549.04
41.02
21.15
508.02
62.18
508.02
42.60
19.57
465.42
62.18
1.8351
0.8917
2.7268
465.42
44.25
17.93 _
421.17
62.18
167.37
81.33
248.70
421.17
45.95
16.23
375.22
62.18
375.22
47.72
14.46
327.50
62.18
327.50
49.56
12.62
277.94
62.18
2.1346
0.5921
2.7268
277.94
51.47
10.71
226.48
62.18
194.70
54.01
248.70
226.48
53.45
8.73
173.03
62.18
173.03
55.51
6.67
117.52
62.18
117.52
57.65
4.53
59.87
62.18
2.4831
0.2437
2.7268
59.87
59.87 _
2.31
(0.00)
62.18
226.48
22.22
248.70
I- 2
Annex-7
SUMMARY OF THAR UPFRONT COAL TARIFF
F. Financing L. Financing
Levelized Tariff
Cents/kWh
Cents/kWh
330 MW
8.5015
9.5643
660 MW
8.3341
9.5668
1100 MW
7.9889
9.1368
1-10 Years Tariff
330 MW
660 MW
1100 MW
11-21 Years Tariff
330 MW
660 MW
1100 MW
22-30 Years Tariff

330 MW
660 MW
1100 MW
Assumptions:
Gross Capacity
Net Capacity
Auxiliary
Efficiency
Calorific Value LHV (Btu/kg.)
Price:
Variable Levelized (US$/M. Ton)
Fixed Levelized (US$/M. Ton)
Proj. Cost F. Fin. (US$ Million/MW)
Proj. Cost L. Fin. (US$ Million/MW)
Exchange Rate (Rs./$)
Debt Equity Ratio:
Debt
Equity
Kibor/Libor
Premium Kibor/Libor
ROE
Project Drawdown:
1st Year of Construction Period
2nd Year of Construction Period
3rd Year of Construction Period
4th Year of Construction Period
Debt Drawdown:
4th Year of Construction Period
Equity Drawdown:
F. Financing
Cents/kWh
9.6574
9.4340
9.0313
L. Financing
Cents/kWh
11.2176
11.1980
10.6738
F Financing
Cents/kWh
6.3905
6.3251
6.0865
L. Financing
Cents/kWh
6.5222
6.5634
6.3084
F. Financing
Cents/kWh
6.1677
6.1138
5.8804
L. Financing
Cents/kWh
6.2995
6.3521
6.1023
330 MW
300 MW
9.0%
37.0%
11,005.00
14.30
31.80
1.51
1.62
97.10
660 MW
607 MW
8.0%
39.0%
11,005.00
14.30
31.80
1.45
1.64
97.10
1099 MW
1011 MW
8.0%
40.0%
11,005.00
14.30
31.80
1.35
1.53
97.10
75%
75%
75%
25%
25%
25%
11.91%/0.45% 11.91%/0.45% 11.91%/0.45%
3.5%/4.5%
3.5%/4.5%
3.5%/4.5%
34.49%
30.65%
34.49%
40%
30%
20%
10%
40%
30%
15%
15%
40%
30%
15%
15%
33%
33%
33%
20%
13%
33%
13%
20%
33%
33%
13%
20%
60%
20%
20%
60%
20%
20%
60%
20%
20%
\' 4
43

Determination Thar Coal

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Determination Thar Coal

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National Electric Power Regulatory Authority

Islamic Republic of Pakistan

NEPRA Tower, Ataturk Avenue (East) G-511, Islamabad

No. No. NEPRA/TRF-TCUT/2014/7834-7836

National Electric Power Regulatory Authority

Determination of the Authority

Determination of the Authority

Determination of the Authority

The representative of Custom Syndicate (a coal transportation Company) requested certain

Determination of the Authority

Issues Framed for Authority's Consideration

Whether a request for revision in project cost is justified?

Whether an increase in operations and maintenance costs is justified?

Whether Water Charge to be paid to GoS is justified?

Whether Allowing 1% Transportation Loss on Thar Coal is justified?

Determination of the Authority

Determination of the Authority

lEA Coal Advisory Council -

lEA 2012 Technology Roadmap High-Efficiency, LowEmissions Coal-Fired Power Generation

lEA Clean Coal Tech Centre

Energy Information Administration 2013 Energy

Technology Action plan HELE, Major Economies Forum On

Determination of the Authority

Efficiency net (LHV)

Whether Request For Revision In Project Cost Is Justified?

Determination of the Authority

Determination of the Authority

Determination of the Authority

Determination of the Authority

Whether Increase In Operations And Maintenance Costs Is Justified

Whether Water Charge to be Paid To GoS Is Justified

Determination of the Authority

Water Charge to be paid to GoS by SECMC Rs/Gallon

A Water Charge to GoS Cents/kWh

Capital Expenditure incurred by SECMC for setting up a Pumping Station at

Investment in the Vajihar to Block II Project Rs/Gallon

B Tariff Component for Capital Investment 85%PF Cents/kWh

O&M Cost of the Pumping Station at Vajihar, incurred by SECMC

Maintenance cost of pumping station at Vajihar PKR/annum

Cost of manpower for pumping station PKR/annum

Total Annual O&M cost for Vajihar project PKR/annum

O&M Cost Rs/Gallon

C O&M Cost Cents/kWh

Tariff Component for Water Cost (A+B+C) cents/kWh

Component of Capital Investment to be indexed with USD to PKR Rupee devaluation.

Determination of the Authority

Determination of the Authority

"For projects requiring substantial investment in dedicated production and/or

Determination of the Authority

Size of the Mine Mtpa

No. of Years after

Coal Price USD/Ton

Determination of the Authority

Cost of Working Capital

Whether In Increase in LIBOR from 4.5% to 5.5% is justified?

Determination of the Authority

Determination of the Authority

Whether Allowing 1% Transportation Loss on Thar Coal is Justified?

Capacity Charge 11-30 Years

Determination of the Authority

The tariff period is 30 Years.

Basis for Determination

Determination of the Authority

Capital Cost including EPC Cost