17:13 29 Apr 25
Info Report Check
Submission incomplete:
1: The PP/DOE are requested to present the sensitivity analysis of the investment analysis as per EB 48 Annex 60 paragraph 10 (a).
Please report sensitivity analysis in B.5.section of the PDD including all the parameters that contribute to 20% of cost and revenue such as electricity tariff and annual O&M cost.
2: The PP/DOE are requested to describe in detail the monitoring plan as per EB 48 Annex 60 paragraph 10 (a).
In particular : (i) please provide line diagrams showing all relevant monitoring points and connection point to the grid; and (ii) please indicate in QA/QC procedures for parameter EG PJ,y (quantity of net electricity supplied by the project to the grid) under B.7.1. section of the PDD that electricity measurement will be crosschecked with the records for sold electricity .
3: The DOE is requested to confirm the accuracy of the financial calculations carried out for the investment analysis as per VVM v 1.2 paragraph 114 (c).
In particular, please report in detail tax calculation steps with reference to applicable host country tax regulations.
4: The DOE is requested to include information on how it has validated the input values to the financial calculations as per VVM v 1.2 paragraph 114 (a).
In particular : (i) book depreciation rate; (ii) machine availability; (iii) transmission and distribution loss; and (iv) total loan amount given that there is inconsistency in reported loan amount in financial calculation spreadsheet (1260 million INR for Phase 1 and 1260 million INR for Phase 2) and validation report, page 31 ( 1300 million INR for loan 1 and 650 million INR for loan 2).
5: The DOE is requested to provide information on how it has validated the suitability of the benchmark as per VVM v 1.2 paragraph 114 (b).
In particular : (i) Please report how the suitability of the vintage of data selected for the market risk premium and beta that determine the WACC has been assessed given that shorter period of 8.5-8.9 years ( April 1999 to Sep 2007 and April 1999 to Feb 2008) and about 3 yrs ( Oct 2004 to Sep 2007 and March 2005 to Feb 2008) are selected for market return and beta value respectively which are not consistent with vintage years used for estimating the technical life of the project (20 yrs); (ii) Please provide information on key parameters of the government bond including the time of maturity; (iii) Please report how the beta value (determined based on power companies) corresponds to the risk profile of the proposed activity given that it appears that the PP is not a power company and the produced electricity is used for captive use in manufacturing units of the PP.
1: The PP/DOE are requested to present the sensitivity analysis of the investment analysis as per EB 48 Annex 60 paragraph 10 (a).
Please report sensitivity analysis in B.5.section of the PDD including all the parameters that contribute to 20% of cost and revenue such as electricity tariff and annual O&M cost.
2: The PP/DOE are requested to describe in detail the monitoring plan as per EB 48 Annex 60 paragraph 10 (a).
In particular : (i) please provide line diagrams showing all relevant monitoring points and connection point to the grid; and (ii) please indicate in QA/QC procedures for parameter EG PJ,y (quantity of net electricity supplied by the project to the grid) under B.7.1. section of the PDD that electricity measurement will be crosschecked with the records for sold electricity .
3: The DOE is requested to confirm the accuracy of the financial calculations carried out for the investment analysis as per VVM v 1.2 paragraph 114 (c).
In particular, please report in detail tax calculation steps with reference to applicable host country tax regulations.
4: The DOE is requested to include information on how it has validated the input values to the financial calculations as per VVM v 1.2 paragraph 114 (a).
In particular : (i) book depreciation rate; (ii) machine availability; (iii) transmission and distribution loss; and (iv) total loan amount given that there is inconsistency in reported loan amount in financial calculation spreadsheet (1260 million INR for Phase 1 and 1260 million INR for Phase 2) and validation report, page 31 ( 1300 million INR for loan 1 and 650 million INR for loan 2).
5: The DOE is requested to provide information on how it has validated the suitability of the benchmark as per VVM v 1.2 paragraph 114 (b).
In particular : (i) Please report how the suitability of the vintage of data selected for the market risk premium and beta that determine the WACC has been assessed given that shorter period of 8.5-8.9 years ( April 1999 to Sep 2007 and April 1999 to Feb 2008) and about 3 yrs ( Oct 2004 to Sep 2007 and March 2005 to Feb 2008) are selected for market return and beta value respectively which are not consistent with vintage years used for estimating the technical life of the project (20 yrs); (ii) Please provide information on key parameters of the government bond including the time of maturity; (iii) Please report how the beta value (determined based on power companies) corresponds to the risk profile of the proposed activity given that it appears that the PP is not a power company and the produced electricity is used for captive use in manufacturing units of the PP.
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