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Tanzania Traditional Energy Development and Environment Organisation(TaTEDO)

70 kW Micro hydroelectric Plant in Zege village

Business plan

TaTEDOP.O. Box 32794

Dar es SalaamTanzaniaTel: 22 2700438/2700771Fax: 22 2774400Email: energy@tatedo.org

Website:www.tatedo.org July 2007

Executive Summary

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The Zege village Micro-Hydropower project is a new project to be constructed in Zege village,

located in the Usambara Mountains, Tanga region. It is a decentralized electricity generation

system that will use Kidabwa stream crossing Zege village. The overall objective of this

project is to contribute to poverty reduction of the Zege villagers by introducing hydropower to

the area for productive use of electricity and finally improving living standard and reducingpoverty in rural areas through improved access to electricity from micro hydro power plants for

small-scale enterprises and households in rural areas.

Tanzania Traditional Energy Development and Environment Organization (TaTEDO) is

the sole owner and main project developer, with room of other participating

stakeholder to come in. The organization was established in 1990 as a non profit

sharing organization for spearheading development of sustainable energy

technologies and services while conserving the environment.

The project core activities involve constructing a micro hydro power plant with power output

capacity of 70 kW and installation of the local mini-grid and distribution lines to the targeted

consumers (households, social services, institutions and small enterprises) and would

charged on monthly basis. Billing will be according to the loads connected to the mini-grid,

independent metering will be installed to each commercial customer so as to simplify monthly

electricity revenue collection in accordance with electricity usage. The revenue accrued from

customers will be used for maintenance of the plant and village development activities. This

project activity also contemplates the production of clean power that will contribute to reduce

dependence on imported kerosene and reduce greenhouse gases emission specifically CO2,

which would have occurred otherwise, in the absence of this project. The GHG emitted will be

traded in Carbon Market and the revenue accrued will used in village development projects

that are focusing on poverty reduction as well as contributing in maintenance and operation

costs. TaTEDO will implement the project in partnership with Zege villagers

This business plan has been prepared to the attention of potential investors that are willing to

support TaTEDO financially. Total investments for the project is estimated to USD 208,320

which is an average of investment cost of 2,976 USD/Kw. Depending on availability of

investment funding, the project will start in the year 2008 and construction work is planned to

be completed in six months time. As already mentioned, specialized development funds

(CER) will be tapped into from 2009 onwards.

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1. Background Information

The vast majority of Tanzanians, both rural and urban, do not have access to modern energy

services. Barely two percent of rural Tanzanians are connected to the national grid1. The

National Energy Policy (2003) sets objectives to ensure availability of reliable and affordable

energy supplies and to improve their use in a national and sustainable manner in order to

support national development goals. To date, extensive rural electrification has not been a

major priority for National Utility Company (TANESCO) due to the high cost implications and

limited funding1. The power demand of a typical rural areas served by TANESCO is between

a few hundred kW and a few MW. The supply has been achieved either by an extension of the

national grid or by installation of an isolated generation system. Rural electrification is being

considered as an important prerequisite for gradually raising living standards and reducing

poverty of the people in the project area. In this project, it is deemed important that rural

electrification focuses on existing and potential productive income-generating activities in the

fields of small-scale users. According to Tanzania Rural Electrification Study (2005)2, the

proposed technical solutions for the Electricity Supply of Rural Areas among others, is the

decentralized local supply through village grid or individual home supply.

2. Project Descr iption

Micro hydropower stations are usually defined as ones with power output of less than 100kW.

The Zege village Micro-Hydropower project is a new project to be constructed in Zege village,

located in the Usambara Mountains, Tanga region. It will be a decentralized electricity

generation system that will use Kidabwa stream crossing Zege village. The overall objective of

this project is to contribute to poverty reduction of the Zege villagers by introducing

hydropower to the area for productive use of

electricity and finally improving living standard

and reducing poverty in rural areas through

improved access to electricity from micro

hydro power plants for small-scale enterprises

and households in rural areas.

Feasibility study conducted by the project

developer (TaTEDO) revealed that the stream

has sufficient water flow throughout the year

1 Inception Report , Formulation of Rural Electrification, Sub Projects, Memo 2004 -057

2 Tanzania Rural Electrification Study, Master Plan and Programme Report (Phase 1), J une 2005

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and sufficient head to generate electricity estimated to 70kW for the run-of-river scheme. The

proposed project will focus on provision of electricity for consumptive and productive uses in

Zege village and the neighboring villages. Moreover, the project will also contribute to the

countrys programme on rural electrification coverage.

The project core activities involve constructing a micro hydro power plant with power output

capacity of 70 kW and installation of the local mini-grid and distribution lines to the targeted

consumers (households, social services, institutions and small enterprises). Households will

be billed according to the loads connected to the mini-grid, independent metering will be

installed to each commercial customers so as to simplify monthly electricity revenue collection

in accordance with electricity usage. The revenue accrued from customers will be used for

maintenance of the plant and village development activities. This project activity also

contemplates the production of clean power that will contribute to reduce dependence on

imported kerosene and reduce greenhouse gases emission specifically CO2, which would

have occurred otherwise, in the absence of this project.

3. Project Site Profile

Zege village is located around 30 km northeast of Korogwe township in Usambara Mountains,

Korogwe District Tanga Region. Korogwe is one of the six districts of Tanga Region and is

situated roughly 4038 to 4057 S and 38029 to 38037 E. The district has a total land area of

about 3,500 sq.km. It bordered by Kilimanjaro Region to the northwest, Lushoto to the north-

east and Muheza districts to the east respectively. The district is mountainous with

meandering valleys and elevation that ranges from 500 to 1700 metres above the sea level. It

has a mountain climate with a maximum temperature ranging between 200C to 250C and a

minimum temperature range of 150C to 210C rainfall is extremely variable, ranging from 12mm

to 1500mm per year. Mountaneous area of Korogwe is covered with forests and has a number

of indigenous protected forests. It is administratively divided into 4 divisions, 21 wards and

230 villages. 2002 census showed a population of 419,970 of whom 54.3% are women.

The village has 3118 people, 607 households, 2 primary schools, 1 nursery school, 3

mosques and 3 churches. The main economic activity of this area is agricultural based, with

various crops like spice, coffee, banana, maize, vegetables and fruits being cultivated. Non-

agricultural enterprises include retail shops, food vending in small outlets, tailoring, and local

beer brewing and grain milling. This milling enterprise is powered by hydro and it was

constructed in 1994 by the Catholic Church. The energy solution for lighting for most of the

villagers is kerosene, dry cell battery for radio and firewood for cooking. Other important

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services like refrigeration and TV are not available due to lack of electricity. According to

national rural electrification master plan there is

no plan to extend the grid to the village in the

near future.

Figure 2: Map of Tanzania showing the location with mini hydropower potential

4. Project Ownership

Tanzania Traditional Energy Development and Environment Organisation (TaTEDO) is the

sole owner and main project developer, with room of other participating stakeholder to come

in. TaTEDO is a sustainable energy development national non-governmental organisation

based in Dar es Salaam, Tanzania with activities in several districts, and more than fifteen

(15) years experience actively involved in sustainable energy development projects and

programmes especially in rural areas. The organisation was established in 1990 as a non

profit sharing organisation for spearheading development of sustainable energy technologies

and services while conserving the environment. TaTEDO will implement the project in

partnership with Zege villagers.

TaTEDO will provide technical expertise, overall management and also monitor development

and performance of the project during its lifetime. TaTEDO has strong experience and

capability of micro hydropower designing and installation. In 2006, TaTEDO in collaboration

by UNIDO did design, construct and undertake installation of micro hydro plant at KINKO

village located within the same locality with the proposed project area (Zege village). The

construction of a 10kW KINKO plant went in line with supplying electricity to 100 houses as

initial installation. The contact person for TaTEDO is Mr. Estomih Sawe, who is also the

TaTEDO Executive Director. (CV attached)

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5. OPPORTUNITY

Customer description

The targeted customers are household, institutions, businesses and small medium enterprise

that will be started as a result of this project. Based on interviews conducted with villagers,

village leaders and other participating stakeholders during feasibility study it was revealed that

60% of households are willing and able to pay their monthly electricity bills at a cost of USD 3

per month and 40% of households are willing and able to pay USD 5 per month. Businesses

and SMEs were willing and ready to pay for electricity services charges up to USD 8 per

month. Other potential customers are earmarked to come for the six neighbouring villages of

Manka, Mbaghai, Nkamai, Kwefingo, Msasa and Kwafunda. Successful implementation of this

is intended to benefit more than 300 households. Presence of electricity to this village will

result into income generating small enterprises like hair cutting and beauty salons; saw milling

machines, etc, thus creating jobs and income to the villagers. The potential of agro-processing

industries is high since the area is endowed with a lot of fruits. Consequently, the situation will

create jobs for the villagers and for the near by villages nearby the site.

Customer potential

The village has 3118 residents, 607 households, 2 primary schools and 1 nursery school. It

has 3 mosques and 2 churches. The villagers are also engaged in livestock keeping and crop

cultivation including tea, spice, cassava, maize, banana and vegetables. The village is

surounded by six villages which are expected to use the same power. As noted earlier about

60% of the households are will be able to pay their bills. This customer level plus those

expected to come neighbouring villages is quite sufficient to support and sustain this project to

profitability.

Competiti on and Competiti ve advantage

Currently there is no any other source of electrical power in the area, implying that all the

village households, businesses; institutions are potential customers of the project. On the

other hand the power utility company has no future plans of extending the grid to this project

according to company rural electrification master plan. The costs of energy solutions currently

in use are high when compared to cost of the service this project will be offering its customers.

The survey conducted in the project area indicated the average amount spent for other energy

substitutes per household per month as shown in the table: -

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Energy

source

Use for households Unit price ( USD) Average

expenditure per

month (USD)

Kerosene litre used for lighting per day 1.0 per litre 7.5

Batteries 8 batteries for radios, 4 batteries

for torches for lighting per month

0.3 per battery 3.6

Firewood 2 small pieces for cooking and

heating per day

0.3 per bundle

with two pieces of

~2kg

3.5

Total expenditure per month per household in USD 14.6

6. Technical Descript ion

The scheme will be located at the Kidabwa stream; it

will consist of small diversion weir, canal headrace,

penstock pipe and the powerhouse where the

electromechanical equipment will be installed. The

figure aside shows a map of the project area with the

proposed layout of the project.

The scheme is run-of-river, these is no reservoir that

will be constructed for the purpose of electricity

generation, part of water will be diverted to run the

turbine and will come back to the original course after

running the machine. The diversion and intake point

will be located on top of the waterfalls located at

an altitude of 1200 meters above see level.

There is solid rock in the riverbed and therefore

making it strong enough for the weir base.

The best location for the water route was found

to be on the eastern side of the stream. The

terrain is steep in the direction of the stream.

There is already an existing canal that can be

used for this purpose at the entrance of the

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water to the turbine, the PVC pipe will be used to run water at a pressure to the turbine.

The power house will be constructed by the existing headrace canal to the water mill. The

terrain is suitable, but there is soil in the surface. The power station will be constructed in

bricks with a concrete foundation.

The plan is to transmit the power with 400 volts from the hydropower station and directly to the

different sub villages of Zege village. The nearest group of houses is located at 1km from the

proposed powerhouse location, to enhance networking to the other parts of the village about

3km transmission line has to be built; for the first plan the project will be able to transmit power

to the consumers without using transformer, for the short distances electrical losses are

insignificant. The cross section area of the wires will vary with the load, but most probably

320 mm2 will be used for most of the distance. 316 mm2 and 325 mm2 may also be used.

Figure 1 gives a clue of the transmission line routing. The power will be distributed to the

different houses in the village. It is expected that around 300 houses will be connected to the

local grid out of more than 600 households present in the whole village.

Hydrology Information

The isohyetal map of the Pangani Basin

shows that the precipitation is at around 1500

mm a year or 47 litres/sec/km2. The

evaporation however is difficult to detect. The

average monthly rainfall in the western

Usambaras is varying quite a lot. Especially

the months J une - October can be quite dry.

Therefore the evaporation is probably lower

than 1000 mm in this area. Assuming that the

evaporation is 700 mm a year, the remaining

runoff will be 800 mm a year or 25

litre/sec/km2

. The catchments area is measured to 8 km2

. This makes the average water flow

825 = 200 l/s which is sufficient to run the planned plant.

The stream is perennial which is known from statements by the village people and also from

an onsite dry season observation as well as the fact that the installed hydro mill has been

running for several years without stopping. A simplified measurement of the water flow was

made. The water flow was estimated at a point some distance upstream from the intake to 60

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l/s in the end of the dry season. According to the village members, we were observing the

lowest flow. The flow of 60 l/s is 30 % of 200 l/s. This is a quite sufficient minimum flow, but

similar measurements have been made in other streams and rivers in Tanzania.

There is most probably some irrigation activities in the catchments area, but they are limited

because a large part of the area is forest. The high dry season water flow indicates that only a

small portion of the water is consumed. There is no long time data recorded for the stream,

nevertheless as noted earlier the presence of installed hydro mill in operation for more than

ten years proves that there is sufficient flow throughout the year.

7. The existing structu res and the proposed hydroelectric power project

As indicated earlier, there is an existing

hydro powered milling machine utilizing

water from this project water stream. The

hydro milling machine was constructed in

1994 by the aid of Catholic Church who

sourced the donor, villagers provided

workforce during construction period, and

the project took almost one year from

decision making to commissioning. The

donor was collecting revenue for the first

few years for recovering her costs;

thereafter the donor handed over the machine to the villagers and the RC church who became

the owners to the present.

The hydro mill is using a mad canal with a

total length of about 550m from the intake

location to the forebay, the forebay is

designed to store 30,000 litres.

There is a 200mm PVC penstock pipe

running through 150m taking water to the

hydro mill. The head can be approximated

to be 100m. The turbine used is a normal

centrifuge pump used in reverse mode as

a turbine (PAT), this is coupled to the

grain milling machine.

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The planned project will be installed upstream of the existing hydro mill so as to allow it to

continue operating as usual. Another possible arrangement is to utilise the same forebay by

putting another pipes in parallel with the existing one. The proposed hydropower station will

therefore not interfere the operation of the hydro mill.

8. Project Returns

Since this hydropower station will not be connected to the national grid the income will be

limited by the economic ability of the people in the village. On the other hand the hydropower

station will get the income from production, transmission/ distribution and sale of power

generated. Based on the fact finding of economic ability of the targeted customers, it is

projected that half the village households or 300 houses will be connected to the hydropower

station and that they will be paying on an average of US$ 4 a month or US$ 48 a year. This

will give an income for the hydropower station of US$ 14,400 a year. The consumption and

income from industry is more difficult to project at this initial stage. However in Tanzania as a

whole, the industries consume about 50 % of the electricity production. As this area consists

of mainly agriculture it is assumed that the industry will consume 30 % of the total production.

The income from small enterprises for the first few months may be assumed to bring at least

US$ 200 per month or US$ 2,400 a year. This makes a total of US$ 16,800 a year. The

analysis shows that in the beginning the obtained revenue from the generated power will be

quite reasonable.

GHG Emiss ions

Other sources of returns are expected to come from greenhouse gas (GHG) emission

reduction. This project belongs to Project type 1, RE under category IA - Electricity generation

by the user. Emissions are calculated as: The annual electrical energy consumed by

households multiplied by 4 to account for the emissions from a diesel system supporting

incandescent bulbs and then multiplied by emission factor of diesel generator.

The baseline scenario for GHG revenues (details are attached to this business plan) is as

follows:

CO2t/yr = Annual output x emission factor of diesel generator

= 70kW*50%*24*365 * 4

=1226400 * 0.9 kg CO2/year

=1103 tonnes CO2/year

GHG emission from the project activity

Calculated as fuel for transportation x total distance covered x fuel emission factor

Found insignificant and thus bundling becomes important

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Emission reduction due to the project

Same as the baseline

Project Activi ty Emissions

The project scenario involves the installation of a micro-hydro plant as the source of energy

for the lighting and other electrical energy services that previously did not exist. The

emissions from the project activity is considered to be zero.

The project scenario has two activities:

(i)First inclusion of micro-hydro replacing and extending existing energy services, and

(ii) The second is introduction and maintenance of fluorescent lamps which are 4 to 5

times more energy efficient than incandescent lamps.

Each household will be supplied with two compact fluorescent lamps for lighting purposes

(10W, 18W). The ex-ante assumption is made that the lamps will be operated on average for

7 hours per day (this will be subject to pre-project calibration and potentially monitoring).

Energy efficient lamps are also installed in small business premises and public spaces. When

the lamps expire they will be replaced, reducing the possibility for take back.

Estimated emission through the use of the CFls

Equipment type Number

(A)

Power rating of

replaced equipment

(KW)(B)

Annual

operate

hours

(C)

Total power

consumed

(MWh))

(D=AxBxC/1000)

CFLs 600 0.01 2555 15.3

600 0.018 2555 27.6

Total power that would

have been consumed by

replaced equipments,

MWh (E)

54.9

Technical losses (F) =0.1(=10%)

Project activity Energy,

MWh (G=E/(1-F)

61

Emission factors for

displaced electricity (H)

0.84tCO2/MWh

Project activity emission

reduction (I=GxH)

51.36 tCO2 /yr

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Payment mode

There are two ways/alternatives for paying the power

According to consumption via prepaid meters whereby this is proper for large consumers.

According to installed capacity in the house, this method is cheap and proper forhouseholds with known appliances.

The first option could be sufficient for both loads, However, the cost of meter is $ 60 or $ 18

000 for 300 houses which is not economical for such a small project. This is a considerable

cost and a system of payment depending on the installed capacity. A system like that will

probably give higher administration costs. The second option may be proper especially at the

beginning of the project services, whereby the payments will be set according to the installed

capacity to a particular house or say according to the appliances used by a particular house.

Operational costs

Considering the project plant power output, such a small hydropower station may likely have a

fairly high operational cost per produced unit. However close assumption is that the project

will have an estimated operational cost of 1 cent USD/kWh. This gives a total cost of $ 3,700 a

year. (22% of the total income). Operational costs include salary for operational personnel,

long time and short time maintenance and cleaning. (Details are in project financials)

Load and Energy Demand Forecast

Consumer loads

Various types of potential consumer loads were determined through counting. Three

categories customers were identified; domestic consumers, commercial consumers and small

industries. Domestic consumers include residential houses of all sizes of houses as shown

below:

High load houses 5 rooms, kitchen, toilet and bath room

Medium load houses 3 rooms, toilet and kitchen

Low load houses 2 rooms and a toilet

Average load 3 rooms, kitchen and toilet

Commercial consumers include small shops, bars and restaurants. Small industries including

milling machine and other merging activities like carpentry workshops.

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Forecast estimates

Load forecast has been estimated for the period of 20 years. Due to the economic situation it

is anticipated that in the first few years the load served by the generated electricity will be

much smaller than the generated power. Future annual peak demand was estimated using the

historical growth of other similar electrified areas by the public electric power company. In the

first fouryears after commissioning of the project, load is expected to grow by 25% annually

to the initial full load. From the firth year onwards the load growth rate will grow differently with

regards to the type of consumers as follows:

Residential houses 4%

Commercial 3%

Small Industries 2%

Public lighting 2%

The forecast of power and energy demand for the twentieth year for the project area is 113.62

kW and 509,018.88 KWh respectively as shown in table 1. A load factor of 0.5 was assumed

for the studied project area.

Onwards 4% 3% 2% 2%

1st 4 Yrs 25% 25% 25% 25%

Year Residential

(kW)

LightCommercial

(kW)

smallIndustrial

(kW)

PublicLighting

(kW)

TotalDemand

(kW)

Energy

(kWh)

1 15.00 3.00 17.90 0.50 36.40 163,089.92

2 18.75 3.75 22.38 0.63 45.51 203,862.40

3 23.44 4.69 27.98 0.78 56.88 254,828.00

4 29.30 5.86 34.97 0.98 71.10 318,535.00

5 30.47 6.04 35.67 1.00 73.17 327,793.20

6 31.69 6.22 36.38 1.02 75.30 337,349.44

7 32.96 6.40 37.11 1.04 77.50 347,214.11

8 34.27 6.59 37.85 1.06 79.78 357,398.01

9 35.64 6.79 38.61 1.08 82.12 367,912.29

10 37.07 7.00 39.38 1.10 84.55 378,768.56

11 38.55 7.21 40.17 1.12 87.05 389,978.83

12 40.09 7.42 40.97 1.14 89.63 401,555.57

13 41.70 7.65 41.79 1.17 92.30 413,511.70

14 43.37 7.87 42.63 1.19 95.06 425,860.63

15 45.10 8.11 43.48 1.21 97.91 438,616.27

16 46.91 8.35 44.35 1.24 100.85 451,793.02

17 48.78 8.60 45.24 1.26 103.89 465,405.85

18 50.73 8.86 46.14 1.29 107.02 479,470.28

19 52.76 9.13 47.06 1.31 110.27 494,002.39

20 54.87 9.40 48.00 1.34 113.62 509,018.88

Table 1. Load and Energy Demand forecast for Zege village

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9. Project Institutional Architecture

Project funding Enabling polic ies

Technical In kind contributionExpertise

Improved livelihood

O & M costs

Electricity sup ply

CDM business

10. Project Risk Analysis

Major risks to the successful implementation of the project and measures to manage

risks

No Risks Mitigation measures

Lack of technical and insufficient

managerial capacities at local level

village level

TaTEDO experience will be used to mitigate

this risk by undertaking local level capacity

building on management, O&M of project

Competition arising from other uses of

water e.g. irrigation versus water for

electricity generation

Scheduling of water use to suite the situation

will be agreed by both project management

and village government authority. The villagers

are used to this in the existing hydro mill

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No Risks Mitigation measures

Level of poverty, may at initial stages

affect smooth take off and

sustainability of the project

Villagers (targeted customers) will provided

with entrepreneurial trainings to make

productive use of the generated electricity for

income generation

Most of the equipment are not

available locally, this may increase the

cost and delay of the project

completion

The risk can be mitigated through by

undertaken transactions process as early as

possible to meet the project timeline.

Increasing inflation rates may increase

installation, operation and maintenance

costs of the project

All necessary equipment for installation,

operation and maintenance costs will be

transacted using Euro to avoid loses. Goods

will be bought immediately after securing

funds

This project construction work may

impact the environment negatively

There will be careful planning so as to avoid

unnecessary practices that may affect the

environment. Before construction permit will

be obtained from the National Environment

and Management Commission

Major economic activity is agriculture.

Adverse climatic conditions may affect

the economy and therefore consumers

unable to pay their bills for operational

and maintenance costs

To overcome the risk, part of CERs funds will

be used for operation and maintenance of the

plant

Villagers will be coached to start other

economic activities using the generated

electricity apart from agricultural based ones.

Perceived risk on the part of local

investors / financiers can limit project

funding opportunities

Lessons from previous but similar project done

by TaTEDO will be used to interest them

Exchange rate risk Fiscal discipline plus a tight monetary policy are

used to keep the inflation low. Consumerinflation in local currency has continued todecrease from 6.0% in 2000 to 4.4% in 2003where as the real GDP growth remain 6.3% in2003 and 6.6% in 2004. Specifying Euro formost of the financial transactions will mitigateexchange rate risk

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11. Project Financial Requirements

No Item: Construction Works Cost in

USD

Unit

A Civil works 35,000

B E & M works including turbine, generator, control system and cabling 50,000

C Transmission and distribution work 50,000

D Planning and administration 20,000

Sub Total ( A D) 155,000

E Establishment and other expenses (20% of works) 31,000

F Interest during construction (12% of total cost) 22,320

Total investment cost 208,320

Investment Cost , USD/kW 2,976

No Item: Generation/Operational costs Cost in

USD

Unit

A Annual expenditure

I. Operational and maintenance cost

II. Annual depreciation

2,083

Total annual expenditure 2,083

B Annual generation at 53% load factor taking 46% downtime

and 0.5% auxiliary consumption

370,000 kWh

D Cost of generation per year 0.063 USD per KWh

Sub Total ( A D) 155,000

E Estimated income By selling electricity 16,800

F Estimated income By selling CERs 16,545

Total investment cost 208,320

Investment Cost , USD/kW 2,976

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12. Attachments

Project Rating - (Annex A)

CVs of the Project Technical Staff

Project Financials

Project implementation Schedule

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Project Rating (Annex A)

Sustainable Development IndicatorsRate -2 to

+2Give explanation

Local Environment and sustainabilityA.1. Water quality and quantity -1 Cause water turbidity

A.2. Air quality +2 Reduced indoor air pollution

A.3. Other pollutants 0

A.4. Soil Condition +1 Disturbance due toconstruction of the plant

A.5. Contribution to biodiversity 0 Clearing of vegetationsA Total (A.1+A.2+A.3+A.4+A.5)/5 0.4

Social Sustainability and development

B.1. Quality of generated jobs Temporary job during plant,construction. Kerosenesellers will loose income

B.2. Livelihoods of the poor *(1+0)/2=0.5

B.2.1. Income distribution

+1

-Loose of income to thekerosene sellers, +Productiveuses of electricity, +Savingsfrom kerosene

B.2.2. Access to essential services (Housing,

water, sewage treatment, health, education,welfare, etc)

0 None

B.3. Access to clean energy sources +2 Provision of electricity

B.4. Human and Institutional capacitybuilding

(1+2)/2=1.5

B.4.1. Empowerment+1

Temporary job during plantconstruction, enterprises

B.4.2. Gender equality+2

Reduced workload to women(working distance)

B Total (B.1+B.2+B.3+B.4)4 1.25

Economic and Technological development

C.1. Number of jobs created+1

+Small scale enterprises, +casual labours- Wicked lampsellers

C.2. Sustainability of the balance ofpayment 0

+Reduced keroseneimportation, -Importationof equipments

C.3. Replicability and contribution to +2 Extend project boundary to

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19

technological self-reliance include other projects underIA and IIC project typecategories

C Total (C.1+C.2+C.3)/3 1

Total (A+B+C)3 +1

Feasibility Yes/No Comment

D.1 Is there are chance of removing/orsufficiently reducing all the barriers?

Yes

D.2 Do implementing institutions have themotivation and capacity to champion theproject?

Yes

Institution has implementedthe similar project at Kinkovillage which is located inthe same region

D.3 Donors/Funders/Financiers are interestedin supporting the project financially?

Yes

Similar projects are beingfunded, Consultation withUNDP was made; UNDP hasshown interest to co-financemicro-hydro project.

D.4 Does the beneficiary community want theproject and the project practitioner?

Yes Pre-feasibility report