Application to NEPRA for Generation License
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3.6MW Gugera Hydro Power Project, Distt. Nankana Application to NEPRA for Generation License Facilitated by PPDB, Government of Punjab Gugera Hydro Power Co. 64-Ahmad Block, New Garden Town, Lahore, Pakistan Tel: +92 42 35851559-60 Fax: +92 42 35832796 E-mail: qucierahydrocimail.com Dated: 05 October 2016 The Registrar National Electric Power Regulatory Authority (NEPRA) NEPRA Tower, Ataturk Avenue (East) G-5/1, Islamabad Subject: 3.6 MW Gugera Hydro Power Project, District Nankana - Application for Generation License - Proposed Financing Arrangements (Clause 3(5)(d)(ii)) Dear Sir, We refer to our application for the issuance of Generation License for 3.6 MW Gugera Hydropower Project (the "Project"). One of the requirement of Section 3(5)(d)(ii) of NEPRA (Application and Modification Procedure) Regulation 1999 is that the Applicant shall provide expression of interest to provide credit or financing for the Project. In this regard we would like to humbly submit that we intend to finance this Project under "limited recourse financing scheme" whereby project lenders issue such expression of interests following the issuance of Letter of Support (the "LOS") by the Government. You would appreciate that very purpose of issuance of LOS is to give certain time to the sponsors to arrange financing to achieve the financial closing of the Project. Additionally, it may be noted that Project lenders prefer to show their interest once the financial viability of the project is established through approval of tariff for which we intend to apply to NEPRA after the issuance of Generation License. Generally, we would like to inform that our management team include the specific experience to arrange financing of USD 600 million for New Bong Escape Hydropower Project and 102 MW Gulpur Hydropower Project. In this respect we will approach local banks including Habib Bank Limited, National Bank of Pakistan and Allied Bank Limited for financing immediately after issuance of LOS. We will also explore the possibility of foreign financing through International Finance Corporation and Asian Development Bank. We sincerely hope that aforesaid explanation shall suffice to satisfy the requirements of Section 3(5)(d)(ii) of NEPRA (Application and Modification Procedure) Regulation 1999. With best regards, Nasir A Malik CEO SAM BL Table of Contents Sr. No. Description Page No. Application to NEPRA for the Grant of Generation 2-4 License 2 Check List including Schedule III 5-13 3 Company Prospectus 14-23 4 Project Description ( Technical ) including drawings 24-39 5 General Information & Plant Details 40-42 6 Availability of Land, Its Acquisition & Compensation 43-44 7 Cost of Project ( Financial & Commercial ) 45 8 Planning and Development Proposal 46-58 9 Annexures & Attachments 59 Gugera Hydro Power Co. 64-Ahmad Block, New Garden Town, Lahore, Pakistan Tel: +92 42 35851559-60 Fax: +92 42 35832796 E-mail: qucierahyclrocimail.com Dated: 05 October 2016 The Registrar National Electric Power Regulatory Authority (NEPRA) NEPRA Tower, Ataturk Avenue (East) G-5/1, Islamabad Subject: 3.6 MW Gugera Hydro Power Project, District Nankana - Application for Generation License - Proposed Financing Arrangements (Clause 3(5)(d)(ii)) Dear Sir, We refer to our application for the issuance of Generation License for 3.6 MW Gugera 10 Hydropower Project (the "Project"). One of the requirement of Section 3(5)(d)(ii) of NEPRA (Application and Modification Procedure) Regulation 1999 is that the Applicant shall provide expression of interest to provide credit or financing for the Project. In this regard we would like to humbly submit that we intend to finance this Project under "limited recourse financing scheme" whereby project lenders issue such expression of interests following the issuance of Letter of Support (the "LOS") by the Government. You would appreciate that very purpose of issuance of LOS is to give certain time to the sponsors to arrange financing to achieve the financial closing of the Project. Additionally, it may be noted that Project lenders prefer to show their interest once the financial viability of the project is established through approval of tariff for which we intend to apply to NEPRA after the issuance of Generation License. Generally, we would like to inform that our management team include the specific experience to arrange financing of USD 600 million for New Bong Escape Hydropower fra Project and 102 MW Gulpur Hydropower Project. In this respect we will approach local banks including Habib Bank Limited, National Bank of Pakistan and Allied Bank Limited for financing immediately after issuance of LOS. We will also explore the possibility of foreign financing through International Finance Corporation and Asian Development Bank. We sincerely hope that aforesaid explanation shall suffice to satisfy the requirements of Section 3(5)(d)(ii) of NEPRA (Application and Modification Procedure) Regulation 1999. With best regards, Nasir A Malik CEO e, SAM U..; Par Check List For Examination of License Application of New Generation FacilityH ,, d I Name of Company Gugera Hydropower Company (Pvt). Ltd. Power Generation Capacity 3.6 MW Prepared / Updated on 05-10-2016 Application Submission The Application is being filed pursuant to NEPRA (Application and Modification Procedure)Regulations 1999 Regulation No Required Information / Part II 3 Compliance / Remarks 3 (1) An Application for Generation License The Application is as per shall be made in the form specified in Format of Schedulel. Schedule 1 to these rules. Authorization from Board of Directors Authorization of Board of Resolution/Power of Attorney Directors (BOD) is attached with the Application at Annexure 2.1. Affidavit by the CEO is also attached at Annexure 2.1(a). 3(3) The Registrars shall not receive the A Cheque amounting to application unless it is accompanied Rs.145,712/- in favour of with the correct amount of application NEPRA is attached with the fee. (including indexation) Application in a separate sealed cover. 3(4) The Application foAr Generation Lice Three Copies of the Application for nse shall be submitted in triplicate the Generation License with supporting documents are hereby submitted please. 3(5)(a)(i) Certified copy of Certificate of Certificate of Incorporation incorporation shall be filed as with SECP is attached with this documents-in-support along with Application as Annexure 2.2. Application for Generation License. 3(5)(a)(ii) Certified copy of Memorandum and Copy of Memorandum and Articles of Association shall be filed as Articles of Association attached documents-in-support along with as Annexure 2.3. application for license. 3(5)(a)(iii) Certified copy of Annual Return in Form A is not applicable as case of applicant required to be company has obtained its submitted to the Registrar of registration with SECP on July companies pursuant to Section 156 of 2016. the Ordinance, shall be filed as documents-in-support along with All other relevant doptge*k, k application for license are attached herp/10 — asr. Annexure 2.4.-4:f V\ Regulation No Required Information / Part II 3 Compliance / Remarks 3(5)(a)(iv) In case of an applicant to whom sub- Not Applicable clause (a)(iii) of Sub-clause (5) is not applicable, a return comprising all such information, in as close a form and content as possible, laid down in the third schedule to the Ordinance 3(5)(b) A reasonably detailed profile of the Experience Profile of the experience of the Applicant, its Applicant and its management management staff and its members in staff is attached at Annexure the electricity industry 2.5. 3(5)(c) The Curriculum Vitae of the The requisite CVs are attached Applicant's senior management, at Annexure 2.6. technical and professional staff 3(5)(d)(i) Evidence, satisfactory to the The Project has been awarded Authority, of the availability of to the Applicant under adequate financial and technical, Government of Punjab Power resources to the Applicant for the Policy 2006 according to which purpose of Generation, transmission Applicant has demonstrated the or distribution business, as the case financial and technical strength may be, and such evidence may to PPDB. consist of: Cash Balances held in reserve along with the bank For the purpose of this certificates. requirement, a copy of LOI is attached as Annexure 2.7. The financial strength of Sponsors Sambu Construction of Korea and Multiline Enterprises are attached as Please Aannex-2.8. 3(5)(d)(ii) Evidence, satisfactory to the Please refer to Annexure 2.8 Authority, of the availability of for the financial strength of the adequate financial and technical Sponsors. resources to the Applicant for the purpose of the Generation, Generally, the financing of transmission or distribution business, renewable project especially as the case may be, and such Hydropower Projects is top evidence may consist of priority of international and local expression of interest to provide banks for Pakistan. Therefore, credit or financing sources and the applicant does not see any details there at. issue in arranging the financing of this project. Additionally, management of this company was directly involved in financing New Bong Escape Hydropower Project and Gulpur Hydropower Project. and has su0Wi_ik, arranged financi g -,e1r0-606A million. ( Yill Regulation No Required Information / Part II 3 Compliance / Remarks 3(5)(d)(iii) Latest financial statements of the As mentioned above, the applicant. clause is not applicable since we are at a stage where only Feasibility Report stands approved by PPDB, Government of Punjab. However, Financial Statements of our Sponsors are attached at Annexure 2.8. 3(5)(d)(iv) Evidence, satisfactory to the Requisite employment records Authority, of the availability of of the existing Engineering and adequate financial and technical Technical staff of the Applicant resources to the applicant for the are attached with the purpose of the generation, Application at Annexure 2.9.