Info Report Check
Submission incomplete:
1: 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).
The DOE has confirmed that the subsidy scheme for hydro power plants as per the MNES guideline gives comparative advantages to less emissions-intensive technologies over more emissions-intensive technologies. However, the DOE is requested to further explain the type of subsidy as per the MNES guideline that is applicable to the project activity.

2: 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).
(a) The DOE is requested to substantiate why the annual escalation of electricity tariff is not applied in the base case of the IRR calculation, given that the DOE identified an annual growth rate of the tariff of 1.67% from 2000 to 2010, and furthermore as there is an annual escalation of O&M cost and wages and admin expenses.;
(b) The VR page 80 states that the DOE confirms the expense considered for salaries & its escalation rate to be appropriate based on local and sectoral expertise. However there is information on how the DOE confirms them to be appropriate. Furthermore, the validation report has not provided information on how the DOE has crosschecked the input values in line with the VVM version 01.2 paragraph 111b.

3: The DOE is requested to describe the steps undertaken to assess if the monitoring arrangements are feasible to be implemented within the project design as per VVM v1.2 paragraph 124(b).
The PDD page 30 mentions that meters for parameters EGexport,y and EGimport,y will be calibrated once in three years. However, the validation report pages 90 and 91 states that the meters will be calibrated annually.