Return on Equity Calculations

Yellow Cells are user inputs. Please do not change any other cell

Period of Concession 30 Years

Construction Period 3 Years
USER INPUTS

Capacity of the Project 2.82 MW

Net Unit Generation 21.67 Gwh
Project Cost 12.551035 Million USD 12551035
Equity Share in the Project Cost 20%
Exchange Rate 86 Rs/USD
Equity IRR 17%
Equity Injected during first year of Construction 20%
Equity Injected during 2nd year of Construction 50%
Equity Injected during 3rd year of Construction 30%
Equity Injection During Construction
MM US $ MM Rs.
Total Equity 2.51 215.88

Year -3 0.50 43.18

Equity Injected During Construction Year -2 1.26 107.94
Year -1 0.75 64.76

ROEDC Capatlization Option I option II

MM US $ MM US $ MM US $ MM US $
Equity Return for three years of Equity Injection 0.40 - 34.28

Equity
Outstanding Equity ROE +
(at year start) ROE Redemption Redemption ROEDC
Year MM Rs. MM Rs. MM Rs. MM Rs. MM Rs.
-2
-1
0 (34.28)
1 215.88 36.70 0 36.70 5.8800
2 215.88 36.70 0 36.70 5.8800
3 215.88 36.70 0 36.70 5.8800
4 215.88 36.70 0 36.70 5.8800
5 215.88 36.70 0 36.70 5.8800
6 215.88 36.70 0 36.70 5.8800
7 215.88 36.70 0 36.70 5.8800
8 215.88 36.70 0 36.70 5.8800
9 215.88 36.70 0 36.70 5.8800
10 215.88 36.70 0 36.70 5.8800
11 215.88 36.70 1.66 38.36 5.8800
12 214.22 38.36 1.94 38.36 5.8800
13 212.28 38.36 2.27 38.36 5.8800
14 210.00 38.36 2.66 38.36 5.8800
15 207.34 38.36 3.11 38.36 5.8800
16 204.23 38.36 3.64 38.36 5.8800
17 200.59 38.36 4.26 38.36 5.8800
18 196.33 38.36 4.98 38.36 5.8800
19 191.35 38.36 5.83 38.36 5.8800
20 185.52 38.36 6.82 38.36 5.8800
21 178.70 38.36 7.98 38.36 5.8800
22 170.72 38.36 9.34 38.36 5.8800
23 161.38 38.36 10.92 38.36 5.8800
24 150.46 38.36 12.78 38.36 5.8800
25 137.68 38.36 14.95 38.36 5.8800
26 122.73 38.36 17.50 38.36 5.8800
27 105.23 38.36 20.47 38.36 5.8800
28 84.76 38.36 23.95 38.36 5.8800
29 60.81 38.36 28.02 38.36 5.8800
30 32.79 38.36 32.79 38.36 5.8800
17%

Assumption
1 NEPRA does not allow equity redemption during debt repayment. Here we
to be repaid in 10 years.
NEPRA generally assumes that equity is injected at the end of each year.
2 ROEDC for the equity injected during first and 2nd year for a three year co
(Option II)
3 MM means Million
4 Calculations are shown for Option I only which assumes that equity is injec
year and thus interest rate accordingly for three years.
5 Please impart guidance as to whether or not the methodlogy of calculation
Option I Option II
Equity Return Equity Return

0.80 0.6872
1.70 1.4685
0.88 0.75
3.39 2.9088

TARIFF TABLE

Equity
ROE+ROEDC Redempti
+Redemption ROE on
MM Rs. Rs/Kwh Rs/Kwh
(43.18)
(107.94)
(64.76)
42.58 1.69 0.00
42.58 1.69 0.00
42.58 1.69 0.00
42.58 1.69 0.00
42.58 1.69 0.00
42.58 1.69 0.00
42.58 1.69 0.00
42.58 1.69 0.00
42.58 1.69 0.00
42.58 1.69 0.00
42.58 1.69 0.08 38.36 215.8778 -
44.24 1.77 0.09 38.36 214.217622 -
 44.24 1.77 0.10 38.36 212.275214 -
44.24 1.77 0.12 38.36 210.002597 -
44.24 1.77 0.14 38.36 207.343634 -
44.24 1.77 0.17 38.36 204.232648 -
44.24 1.77 0.20 38.36 200.592795 -
44.24 1.77 0.23 38.36 196.334166 -
44.24 1.77 0.27 38.36 191.35157 -
44.24 1.77 0.31 38.36 185.521933 -
44.24 1.77 0.37 38.36 178.701258 -
44.24 1.77 0.43 38.36 170.721068 -
44.24 1.77 0.50 38.36 161.384246 -
44.24 1.77 0.59 38.36 150.460164 -
44.24 1.77 0.69 38.36 137.678987 -
44.24 1.77 0.81 38.36 122.725011 -
44.24 1.77 0.94 38.36 105.22886 -
44.24 1.77 1.11 38.36 84.7583619 -
44.24 1.77 1.29 38.36 60.8078796 -
44.24 1.77 1.51 38.36 32.7858153 -
17% $0.00

ption during debt repayment. Here we are assuming debt

ty is injected at the end of each year. Hence it gives
g first and 2nd year for a three year construction project.

nly which assumes that equity is injected at the start of a

ly for three years.
r or not the methodlogy of calculation.is correct.