Nam Paw Hydro Power Project is a major project in the Company’s current investments. The main reasons the Company focuses on the hydro power investment are:
1) It generates job opportunities for the local,
2) It supports local development, and
3) It helps making the country electricity-sufficient.
In other words, the Company has chosen the Hydro Power Project due to high demands of power in the local.
In here, I would like to share the track records in materializing the Nam Paw Hydro Power Project to our shareholders.
The Pre-Feasibility Studies for the Project had been done by Kunming Engineering Co., Ltd. (KHIDI) since October 10, 2013.
Memorandum of Understanding (MOU)
After the KHIDI had carried out the Pre-Feasibility Studies, according to the procedure, the engagement was reported to the local authorities on October 12, 2013, thereafter to Shan State Government on November 6, in the same year.On October 7, in the coming year, the Company was able to sign MOU with the Shan State Government.
Myanmar Electricity Law
Although the Company had signed MOU with the Shan State Government, there was still unfortunate circumstance that hindered the progress of the project development. That is, 20 days after MOU signing, Myanmar Electricity Law was promulgated, on October 27, 2014. The Electricity Law rules that in power production, the power plant with the installed capacity less than 10MW is the small size, between 10MW and 30 MW is the medium size, and over 30 MW is the large size power plant. Under the same law at section 4, the 9th Article rules that for the medium size power plant to connect to the national grid, it has to get permit from Union Government. The Company, for it needs its power plant to connect to the national grid, whereupon the Electricity Law came into force, although had just signed an MOU with Shan State Government, had to make preparation to get permit from the Union Government again. This process took and delayed the Company as long as nine months in the Hydro Power Project development.
Feasibility Study (FS)
Developing a hydro power plant is by no means an easy job. All related factors such as geology, topography, environment etc., etc., have to be thoroughly and systematically studied and assessed. After all related factors have been systematically studied, then designing and estimation works come along.
As far as hydro power is concerned, some services are not available in Myanmar. For such concerns, the Company has to hired foreign technicians or use services from abroad.
For the Project’s feasibility studies, including design and design supervision, the Company uses service from Hunan Hydro Power Design Institute (HHPDI) from China. The contractual agreement had been signed on November 2, 2014.
Environmental and Social Impact Assessment (EIA & SIA)
Even though the feasibility study states that the business is viable, it has to be assessed next level that if the project has negative impact on social and environment; if it does, to what extent and what resolution the Company has to mitigate the impact. For the environmental and social impact assessment service, the Company had sign a service contractual agreement with the Myanmar Sustainable Development of Engineering Service, (MSDES) on April 25, 2015. Thereafter, the MSDES started working according to the process described in graph-01.
Dam Breaking Analysis
It is crucial that the Nam Paw Hydro Power Project in which the Company invested, is up to international standard in terms of quality ensuring the dam has the capacity to withstand in worse natural conditions. Only then it will benefit the Company as well as the social and environment. To achieve the required quality for the hydro dam, the Company entrusted the task of dam breaking analysis to SYDRO Consult, a well-known Germany based company which has long experience and expertise in hydro dam. For the aforementioned service, the Company had signed a service contract with SYDRO Consult on November 18, 2015.
Such dam breaking analysis, be it a crucial subject, it is still uncommon among the hydro dams built in Myanmar.
For the aforementioned analysis service, Dr. Hubert Lohr, an expert from SYDRO Consult, made trips to the project location as well as downstream area twice to collect necessary data and assess the real situation. Moreover, to mitigate possible loss in severe flood condition, on the second trip, the expert, by cooperating with MSDES and the GHK, was also able to conduct a Stakeholders Meeting discussing Emergency Preparedness Plan (EPP) for two consecutive days, on July 1-2, 2015, on which the local task forces and villages administration body actively participated and discussed their opinions.
Memorandum of Agreement (MOA)
The Company, after long and painstaking preparation, was able to sign the Memorandum of Agreement for the project with the Union Government, by way of BOT (Build-Operate-Transfer) on March 16, 2016. Based on the signed MOA, the BOT is structured for 50 years for the Company to operate, but extendable twice for 10 years on each extension (together make it 70 years).
Power Purchasing Agreement (PPA)
For the time being, the Company has not made Power Purchasing Agreement with the Ministry of Electricity and Energy (MOEE) yet. The preparation of PPA draft, however, has been done. It is expected that the Company will be able to sign PPA with the MOEE in the near future.
Internal Rate of Return (IRR)
The Nam Paw Hydro Power Project cost is estimated at 40.60 million USD. The Internal Rate of Return is 9%.
However, on May 14, 2016, Design Optimization had been carried out at HHPDI's principle office in Hunan, China. The cost of the project had also been reviewed. Based on Design Optimization, if the project cost could be reduced, the IRR could be higher to some extent.
Corporate Social and Environmental Responsibilities
The Great Hor Kham, as it is a public company, transparency plays a pivotal role in every project to be carried out. Comparably the Company also emphasizes the benefits that a project has on the social and the environmental. From the Hydro Power Project, 1% of its net profit will go to Corporate Social Responsibility (CSR), while 2%, to Environmental Management Plan (EMP).
Preliminary Engineering Work
Preliminary Engineering Work has been started since April 27, 2015, following ground breaking ceremony. Preliminary Engineering Work includes 4.5-kilometre-long project access road, 66 KV and 11 KV transmission line, project internal road, building camps and office, employee dormitory, construction of 30-meter-long Bailey bridge, etc.
The project is planned to commence in coming December.
Nam Paw Hydro Power Project's Salient Features
|Project Name||- Nam Paw Hydro Power Project|
|Location||- Old Man Han Village, Selan Village Tract, Muse Township|
|Investor||- Great Hor Kham Public Company Limited|
|Creek Name||- Nam Paw Creek|
|Install Capacity||- 20 MW (3 unit x 6.67 MW)|
|Mean Annual Temperature||- 20.10 °C|
|Mean Annual Rainfall||- 1,400 mm|
|Total Catchment Area||- 1,068 km2|
|Upper Dam Catchment Area||- 1,025 km2|
|Mean Annual Discharge||- 32.60 m3/s|
|Fully Flood Level||- 805 m|
|Dead Level||- 795 m|
|Reservoir Pool Level||- 48.02 m3/million|
|Mean Annual Enegy Output||- 85.39 million kW.h|
|Regulating Performance||- Daily|
|Annual Utilized Hour||- 4,269 hr.|
|Dam Height||- 54 m|
|Rated Head||- 38.75 m|
|Dam Length||- 211 m|
|Construction Period||- 36 months|
|Total Investment||- 40.6 million USD(1 USD = 1,218 Kyats)|
|MOA Signing Date||- March 16, 2016|
|Design Company||- Hunan Hydro & Power Design Institute (HHPDI)|
|ESIA Investigating Company||- Myanmar Sustainable Development Engineering Services Co., Ltd|
|Dam Breaking Analysis||- SYDRO Consult, Germany|
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