TRF-92 Determination of Tariff For HUBCO-dated 23-05-2008

National Electric Power Regulatory Authority
Islamic Republic of Pakistan

2nd Floor, OPF Building, G-5/2, Islamabad.
Registrar
Ph: 9207200, 9205225 Fax : 9210215

E-mail: office@nepra.org.pk
No.NEPRA/R/TRF-92/HUBC0-2008/7607-9
May 23, 2008
Subject: Determination of the Authority in the Matter of Generation Tariff for

Hub Power Company Ltd. (HUBCO) (Case # NEPRA/TRF-92/HUBCO-2008)
31 (4)
of
Intimation of Determination of Tariff pursuant to Section
the Regulation of Generation, Transmission and Distribution of Electric Power
Act (XL of 1997)
Dear Sir,
Please find enclosed the subject Determination of the Authority along with Annexure-I
& II (36 pages) in Case No. NEPRA/TRF-92/HUBC0-2008.
2.
The Determination is being intimated to the Federal Government for the purpose of
notification of the approved tariff in the official gazette pursuant to Section 31 (4) of the
Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997)
and Rule 16(11) of the National Electric Power Regulatory Authority Tariff (Standards and
Procedure) Rules, 1998.
3.
Please note that only Order of the Authority at para 21.2 of the Determination relating
to the reference tariff, adjustments & indexation along with Annexure-I & II needs to be
notified in the official gazette. The Order is reproduced for the purpose of clarity and is
attached herewith.
Enclosure: As above
WER
\C't
c-
The Secretary
Cabinet Division
Government of Pakistan
Cabinet Secretariat
Islamabad
NEPRA
u.:3 AUTHORITY
CC:
1. Secretary, Ministry of Water & Power, Islamabad.
2. Secretary, Ministry
of Finance, Islamabad.
13.0S. eg
(Mahjoob Ahmad Mirza )
Order of the Authority regarding Generation Tarifffor Hub Power Company Ltd (HUBCONarowal)
No .NEPRA/TRF-92/HUBCO-NAROWA
L-2008
ORDER OF THE AUTHORITY

IN CASE NO. NEPRAJTRF-92/HUBCONAROWAL TO BE NOTIFIED IN THE
OFFICIAL GAZETTE
Pursuant to Rule 6 of the NEPRA Licensing (Generation) Rules 2000, HUB
Power Company Limited (HUBCO-Narowal) is allowed to charge, subject to
adjustment of Capacity Purchase Price on account of net dependable capacity
as determined by a test jointly carried out by Central Power Purchasing
Agency (CPPA) and the
petitioner, the following is approved as specified tariff for HUBCO-Narowal for
delivery of electricity to CPPA of NTDC for procurement onbehalf of Ex-WAPDA
Distribution Companies:
Specified Reference Tariff
Tariff Components
Capacity Charge PKR/kW/Hour)
O&M
Foreign
O&M Local
Cost
of
Working
Capital Insurance
Debt Service
Local Return on
Equity
ROE during Construction
Year 1 to 10
0.1100
Year 11 to 25
0.0900
0.1106
1.2401
0.4348
0.0437
0.1100
0.0325
0.0900
0.1106
0.4348
0.0437
2.0618
0.8217
4.7811
4.7811
0.2694
0.2694
0.1336
0.0424
0.1336
0.0424
0.0325
Indexation
US$ /PKR & US CPI
WPI
KIBOR
US$ /PKR
KIBOR
US$ /PKR
US$ /PKR
Total Capacity Charge

Energy Charge on Operation
on Furnace Oil Rs./kWh
Fuel Cost Component
Variable O&M
Foreign
Local
Lube Oil
Routine
R&M
Note:
Annex-I.
Fuel Price
US$ /PKR & US CPI
WPI
i) Component wise proposed tariff for operation on RFO is indicated at
WPI
ii) Debt Servicing Schedule is attached as Annex-II.
The following adjustments /indexations shall be applicable to reference tariff;

I.
Adjustment in EPC Cost (One Time)

The Authority has assessed offshore EPC cost as 135.6 million and onshore as
US$
21.545 million (to be incurred in PKR). Since the exact timing of payment to
EPC contractor is not known at this point of time therefore an adjustment
for relevant foreign currency fluctuation for the portion of payment in the
relevant foreign
*I ER
Order of the Authority regarding Generation Tarifff or Hub Power Company Ltd. (HUBCONarowal)
No . NEPRA/TRF-92/HUBCO-NA
ROGVA L-2008
currency will be made. In this regard the sponsor will be required to provide
all the necessary relevant details along with documentary evidence. Based
upon such information the EPC cost components in Euro or Dollar shall be
established and shall be applied to the corresponding EPC cost components.
The adjustment shall be only for currency fluctuation against the reference
parity values according to the following mechanism;
EPC (Offshore)(Adi PKR 13,912,560,000 /
102.60* E(PR)
EPC (Onshore)(Ado= PKR 1,420,892,750/ 65.95 *
E(PR)
Where:
E(PR)
Respective Weighted Average PKR/EURO and PKR/US$ parity based

upon timing of the payment
The tariff components i.e. Insurance, ROE, ROEDC, Principal Repayment and
Interest Charges shall be adjusted according to the following formula at COD.
i)
Insurance Adjustment Mechanism for EPC Cost Variation

Ins(Re I, ) = Ins(Re f) / EPC(Ref) x EPC (Adi )
Where:
Ins(Rev)
Revised insurance component of tariff

Reference insurance component of tariff
Ins(Ref)
EPC(Ref.)
= Reference EPC in PKR.

=
EPC(Adi
ii)
Adjusted EPC in PKR
Return on Equity Adjustment Mechanism for EPC Cost Variation
ROE (Rev)
= ROE (Ref) / E
(Ref) * E(Rev)
Where:
ROE(Rev)
Revised reference Return on Equity component of tariff in PKR
ROE(Ret)
original
Reference Return on Equity component of tariff as per

schedule of tariff in PKR
E(Ref)
Reference Equity in PKR (Rs. 5,424.13 million)
E(Rev)
Revised amount of Equity in PKR
ROEDC Adjustment Mechanism for EPC Cost Variation

90IsIER Rk-0
4 KCcy
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173
NEPRA
Lu
_ AUTH O R ITYt
No .NEPRA/7'RF-92/HUBCONAROWAL-2008
ROEDC (Rev) =
ROEDC
(Ref) /
EDC
(Ref) *
EDC (Rev) Where:

ROEDC(Rev) =
Revised Return on Equity during Construction component of

tariff in PKR
ROEDC(Ref) =
components
Reference Return on Equity During Construction

of tariff in PKR
EDC(Ref)
Reference Equity During Construction in PKR
EDC(Rev) =
Revised Equity During Construction in PKR
iv)
Debt Servicing Adjustment Mechanism for EPC Cost Variation
DS (Rev) =
DS (Ref) / Debt (Ref)* Debt (Rev)
Note: The adjustment factor established as per the above formula shall be applicable
to the
individual components of principal and interest during the entire repayment
period.
DS (Rev)
DS
Revised Debt Servicing component of tariff

Reference Debt Servicing component of tariff
(Ref)
Debt(Ref.)
Reference amount of Debt in PKR (Rs. 12,656.31 million)
Debt(Rev.)
II.
Revised amount of Debt in PKR
Adjustment due to Variation in Net Capacity

The reference tariff has been determined on the basis of minimum net
capacity of 213.60 MW at delivery point at mean site conditions. All the tariff
components except fuel cost component shall be adjusted at the time of COD
based upon the Initial Dependable Capacity (IDC) tests to be carried out for
determination of contracted capacity. Adjustment shall not be made if IDC is
established less than 213.60 MW net capacity at reference site conditions. The
adjustments shall be made according to the following formula:
CC(Adi
)
= CC(Re n x
213.60MW / NC(wc)
Note: Above formula shall be applicable to all the individual relevant

components of
Capacity Charges.
Where;
CC(AdJ)
= Adjusted relevant Capacity Charge components of tariff
NEPRA
TY
AUTHORI
Order of the Authority regarding Generation Tarifffor Hub Power Company Ltd. (HUBCONarowal)
No .NEPRA/TRF-92/HUBCONAROWAL-2008
CC(Ref)
Reference relevant Capacity Charge components of tariff

Net Capacity at reference site conditions established at the time
of IDC test
NOinc)
=
Note:- Reference capacity charge components of Tariff i.e. Revised O&M Foreign,
Revised
O&M Local, Insurance, Debt Servicing, Return on Equity and ROEDC to be
adjusted
as per IDC test.
Reference Conditions:
III.
Ambient Air Temperature

Ambient Air Pressure
Relative Humidity
Charge Air temperature before cylinder
30 C
989 mbar
61%
47 C
Adjustment in Insurance as per actual

The actual insurance cost for the minimum cover required under
contractual obligations with the Power Purchaser not exceeding 1.35% of the
EPC cost will be treated as pass-through. Insurance component of reference
tariff shall be adjusted as per actual on yearly basis upon production of
authentic documentary evidence by HUBCO-Narowal according to the
following formula;
Insurance (Rev)
AIC / (1.35 % x US$3.138 million) * AP
Where;
AIC
= Adjusted Insurance Component (Rs. kW/hr) as per IDC Test
AP
= Actual Premium subject to maximum of 1.35% of the adjusted
EPC
N.
Adjustment Based on Actual Interest During Construction

Debt Service, Return on Equity and ROE during construction shall be
adjusted on account of actual variation in drawdown and Interest During
Construction with reference to the estimated figures.
V.
Adjustment due to Custom Duties & Taxes

adjusted on account of actual variation in custom duties & Taxes with
reference to the estimated figures of US$ 10.547 million. The impact of

withholding tax on local services is not
known at this point of time. However, these will be adjusted along with other
duties and taxes as per the actual on provision of documentary evidence at COD.
VI.
Adjustment for variation in Rupee/Dollar parity
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NEPR
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Relevant reference tariff components shall be adjusted at COD on account of

variation in PKR/US$ parity.
VII.
Adjustment in Return on Equity (ROE)

Return on Equity will be quarterly adjusted on account of variation in PKR/US$
parity according to the following formula:
ROE(Rev)=
ROE(Ref)
ER(Rev)/ 65.95 "Where;

ROE (Rev)= Revised ROE
ROE (Ref)= Reference ROE
ER (Rev)= The revised TT & OD selling rate of US dollar as notified by the
National
Bank of Pakistan
VIII.
Adjustment in Return on Equity during Construction (ROEDC)

Return on Equity during Construction will be quarterly adjusted on
account of variation in PKR/US$ parity according to the following formula:
ROEDC(Rev)=
ROEDC(Ref) * ER(Rev)/
65.95
Where;
ROEDC (Rev)
Revised ROEDC
ROEDC (Ref)
Reference ROEDC
ER (Rev)
The revised TT & OD selling rate of US dollar as notified by the

National Bank of Pakistan
DC.
Adjustment of Withholding Tax

Withholding tax will be adjusted on account of exchange rate variation
according to the following formula:
WT (Rev) =
W T(Ref)
ER
(Rev)/65.95 Where;
WT (Rev) = Withholding tax revised
WT (Ref) = Reference Withholding tax
ER(Rev) =
The revised TT&OD selling rate of US dollar as notified by the

$ER RE
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Order of the Authority regarding Generation Tarifff or Hub Power Company Ltd. (HUBCO-
ift. J
Narowal)
No .NEPRA/TRF-92/HUBCO-NA ROWA L-
nnni
2008
X.
Pass-Through Items
i)
"No provision for income tax, workers' profit participation fund and workers'
welfare fund, any other tax, excise duty or other duty, levy, charge, surcharge or
other governmental impositions, payable on the generation, sales, exploration
has been accounted for in the tariff. If HUBCO-Narowal is obligated to pay
any tax on the income purely generated from its operation i.e. Electricity
Generation of power producer, the exact amount should be reimbursed by
CPPA on production of original receipts. This payment may be considered as
pass-through (as Rs./kW/hour) hourly payment spread over a 12 months period
in addition to the capacity purchase price in the Reference Tariff. Furthermore,
in such a scenario, HUBCO-Narowal may also submit to CPPA details of any
tax shield savings and CPPA will deduct the amount of these savings from its
payment to HUBCO-Narowal on account of taxation.
ii)
as
Withholding tax on dividend is also a pass-through item just like other taxes
indicated in the government guidelines for determination of tariff for new IPPs.
In a reference tariff table withholding tax number is indicated as reference
and CPPA (NTDC) shall make payment on account of withholding tax at
the time of actual payment of dividend subject to maximum of 7.5% of 15%
reference equity i.e. hourly payment (Rs./kW/hour) spread over a 12 month
period according to the following formula:
Withholding Tax Payable = [[15% * (E(Ref) E(Red)) +ROEDC(Reo] *
7.5% Where:
E(Ref)
Adjusted Reference Equity at COD
E(Red)
Equity Redeemed
ROEDC(Reo= Reference Return on Equity During Construction

iii)
In case Company does not declare a dividend in a particular year or only
declares a
partial dividend, then the difference in the withholding tax amount (between
what is paid in that year and the total entitlement as per the Net Return on
Equity) would be carried forward and accumulated so that the Company is able
to recover the same in hourly payments spread over 12 months period as a
pass through from the Power Purchaser in future on the basis of the total
dividend pay out.
XI.
Indexations:
The following indexation shall be applicable to the reference tariff as follows;
No .NEPRA/TRF-92/HUBCO-NA ROWA
L-2008
a)
Indexation applicable to O&M

The Fixed O&M local component of Capacity Charge will be adjusted on
account of Inflation (WPI) and Fixed O&M foreign component on account of
variation in US CPI and dollar/Rupee exchange rate. Quarterly adjustment for
local inflation, foreign inflation and exchange rate variation will be made on 1"
July, 1st October, 1" January and 1st April based on the latest available
information with respect to WPI notified by the Federal Bureau of Statistics
(FBS), US CPI issued by US Bureau of Labor Statistics and revised TT & OD
selling rate of US Dollar notified by the National Bank of Pakistan. The mode
of indexation will be as under:
i)
Fixed O&M
F O&M(LREV)
F O&M(FREV)
Rs. 0.0325/kW/Hour * WPI (REV) /127.5

Rs. 0.1100/kW/Hour * US CPI(REv)/ 211.08* ER(REv)/65.95
Where:
F O&M(LREv)
the
the revised applicable Fixed O&M Local Component of

Capacity Charge indexed with WPI
F O&M(FREV)
the
the revised applicable Fixed O&M Foreign Component of

Capacity Charge indexed with US CPI
(All Urban)
and
WPI(REv)
Exchange Rate variations

the revised wholesale Price Index (manufactures)
US CPLREv) )
the revised US CPI (All Urban)
ER(REV)
notified by
the Revised TT & OD selling rate of US dollar as

the National Bank of Pakistan
Note: The reference numbers indicated above shall be replaced by the revised numbers
after
incorporating the required adjustments at COD.
ii)
Variable O&M
The formula for indexation of variable O&M component will be as under:

V O&M(LREV)
Rs. 0.1760 /kWh * WPI (REV) /127.5
Rs. 0. 2694/kWh * US CPI(REv)/ 211.08* ER(REv)/65.95
& M(FREV)
Where:
V O&M(LREv)
the revised price of lubricants Variable O&M Local

Component of the Capacity Charge indexed with WPI
L-2008
V O&M(wREv)
Component
the revised water treatment Variable O&M Local

of the Capacity Charge indexed with WPI
V O & M(FREV)
Component of
the revised applicable Variable O&M Foreign
the Capacity Charge indexed with US CPI and Exchange

Rate
variations
WPI(REV)
the revised wholesale Price Index (manufactures)
US CPI(REv)
the revised US CPI
ER(REV)
by
the Revised TT & OD selling rate of US dollar as notified

Note:
The reference Variable O&M indicated above shall be replaced with the
revised
number at COD after incorporating the required adjustment based upon the
IDC Test.
iii)
Adjustment for KIBOR variation
The interest part of fixed charge component will remain unchanged

throughout the term except for the adjustment due to variations in interest rate
as a result of variation in quarterly KIBOR according to the following formula;
A I(L)
P(LREV)
* ( M B 0 R(REV) -
10.45%) / 4
Where:
A I(L)
=
applicable
the variation in interest charges on local loan

corresponding to variation in quarterly KIBOR. i I
can be positive or negative depending upon whether
KIBOR(REv) > or < 9.75%. The interest payment
obligation will be enhanced or reduced to the extent of A
I for each quarter under adjustment applicable on
quarterly basis
P (REV) =
debt
is the outstanding principal (as indicated in the attached

service schedule to this order) on a quarterly basis on
the relevant quarterly calculations date. Period 1 shall
commence on the date on which the 1st installment is

due after availing the grace period.
iv)
Fuel Price Variation
The Variable Charge Part of the tariff relating to fuel cost shall be adjusted on
account of the fuel price variations according to the mechanism given below:
41 ER R
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b.
NEPRA
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AUTHORITY
t6
2
ia
-./
FC (Rev)
(Rs.4.3223 per kWh * FP(Rev) )/ Rs.23,247.07 per ton/40,792 * CV(Rev)

+
(Rs.0.4588 per kWh * Ft(Rev) ) /Rs. 2,467.50 per ton
Where:
FC (Rev)
=Revised fuel cost component of Variable Charge on RFO.
CV(Rev)
=Revised Calorific Value

=Revised Freight Charges adjusted for NHV-GHV factor
Ft(Rev)
FP (Rev)
= The new price of RFO per Metric Ton adjusted for

NHV/GHV factor of 1.05 as per the following mechanism;
US$/Ton
Rs./Ton
Description
HSFO Arab Gulf Average Price for applicable Fortnight
(From Platts Oilgram Report) *
Black
Premium
(From
OGRA) C & F Price A

Crude Handling and Incidental charges (7.282% of C&F
Price)" Sub-Total B
EX Refinery Price (C=A+B)
GST (15% of EX Refinery
Price Selling Price D
OMC Margin (3.5% of Selling Price)
GST (15% on OMC
Margin) Sub Total E
Market Price (F=D+E)
Cost of RFO excluding GST
(GHV) Inland Freight
Total Cost of RFO excluding GST (GHV)
US$ Pak Rupee Exchange Rate-NBP Selling TT/OD at the date of applicable fuel
price
* The supplier shall clearly indicate average Gross and Net calorific values of
Arabian
Gulf or any other source of which average reference fuel prices are used.
Fuel
supplier shall provide price adjustment mechanism due to variation in
calorific
value of the fuel being supplied to the IPP against the reference calorific
values.
011 E R filk.G,
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NEPRA
ur
AUTHORITY
1;9473
4.<...
9
L-2008
" Fuel supplier shall provide item wise actual incidental charges prevailing at the
time
of receiving payment for fuel supply.
The fuel cost component will be adjusted after the commercial operation date,
at the time of revision in RFO price.
Adjustment on account of local inflation, foreign inflation, foreign exchange
rate variation, KIBOR variation and fuel price variation will be approved and
announced by the Authority for immediate application within seven working
days after receipt of HUBCO-Narowal request for adjustment in accordance with
the requisite indexation mechanism stipulated herein.
For one time adjustment of relevant tariff components at COD according to
the mechanism laid down in this order, HUBCO-Narowal shall submit the
relevant documents to NEPRA within 30 days of COD for adjustment.
XII.
Terms and Conditions of Tariff:

i)
the
Capacity Charge Rs./kW/hour applicable to dependable capacity at

delivery point.
ii)
date
iii)
iv)
The tariff is applicable for a period of 25 years commencing from the

of the Commercial Operation.
The plant availability shall be 88%.
All new equipment will be installed and the plant will be of standard
configuration.
v)
Dispatch criterion will be based on the Energy Charge.
vi)
Internal consumption (including air-cooled condenser) has been
assumed
to be approximately 5.55 MW.
vii)
Scheduled Outage periods per annum shall be in accordance with the
2006
standardized PPA.
viii)
NTDC will be responsible for constructing the interconnection to the
grid.
ix)
All invoicing and payment terms are assumed to be in accordance with
the
2006 standardized PPA.
x)
PPA.
Tolerance in Dispatch shall be in accordance with 2006 standardized
xi)
the
xii)
kV,
xiii)
the
If there is any change in any assumption that may lead to change in

tariff shall be referred to NEPRA for approval.
If IPP is required by the power purchaser to deliver power above 132
any additional cost to be incurred by the IPP shall be submitted to
NEPRA for adjustment. The adjustment request by the IPP shall be
duly verified by the power purchaser.
100% of debt has been assumed to be local provided however that in
event HUBCO-Narowal uses a mix of foreign and local loan, the
future
10
L-208
benefits of the lower interest rates shall be passed on to the

Power Purchaser.
xiv)
been
No corporate income tax and no minimum turnover tax have

assumed.
xv)
Working capital has been financed by a separate Working Capital
facility,
and is not included in the project cost.
The above tariff and terms and conditions be incorporated in the Power
Purchase Agreement between HUBCO-Narowal and CPPA.
NNER
`."
NEPR
A
AUTHORIT
Y
1
I
NATIONAL ELECTRIC POWER REGULATORY AUTHORITY

(NEPRA)
***
No. NEPRA/TRF-92/HUBCO-Narowal-2008
may 21, 2008
Petitioner
HUB Power Company Limited (HUBCO-Narowal)
Islamic Chamber Building, Block No. 9, Clifton, P.O. Box No.
13841, Karachi-75600
AUTHORITY
Zafar Ali Khan

Member
Nasiruddin Ahmed
Member
7- lir
elk iliMmte
Abdul Rahim Khan

Member
Maqbool Ahmad Khawaja

Member
<4-J
\may
Khalid
NEPRA
-4
AUTHORITY
3=.'
/may
Saeed
Chairman
Determination of Generation Tarifff or Hub Power Company Ltd. (HUBCONarowal)

Background
1.1
Hub Power Company Ltd. (HUBCO) filed tariff petition on January 14, 2008
before
National Electric Power Regulatory Authority (the
"NEPRA"
or
the
"Authority") pursuant to Rule 3 of the NEPRA (Tariff Standards and Procedure)
Rules, 1998, read with paragraph 1.3 of the Guidelines for Determination of
Tariff for Independent Power Producers issued by the Government of Pakistan
in November 2005 and the applicable provisions of the Government of
Pakistan's Policy for Power Generation Projects, 2002 (the "2002 Power
Policy"). HUBCO also filed application for generation licence on January 14,
2008. The HUBCO intends to setting up power plant of approximately 220
MW (Gross) capacity based on reciprocating engine single fuel RFO fired
technology in District Narowal, Punjab province. According to HUBCO net
generation of the proposed power plant will be 213.6 MW (net at site
conditions) at 132 kV Bus Bar in terms of the Policy for Power Generation
Projects 2002 (the "Policy"). The electricity generated will be sold to Central
Power Purchasing Agency (CPPA) within NTDC. The main components of
the plant are eleven proven generating sets of type 18V48/60 manufactured by
MAN and eleven heat recovery steam generators (HRSG) to provide steam to one
condensing steam turbine.
1.2
22,
This tariff petition was admitted for consideration by the Authority on January
2008 and was assigned case number NEPRA/TRF-92/HUBCO-NAROWAL2008. Salient features of the petition were advertised in the newspapers on 1"
February, 2008 to inform all the interested persons/stakeholders and to invite
participation in the tariff-setting proceedings through their comments or by
becoming a party to the proceedings as interveners. Invitations were also sent
to the concerned Federal & Provincial Government ministries, Chambers
of Commerce and Industries, Representatives of Professional bodies and
Experts, soliciting their views on the petition.
1.3
Main
A public hearing on the petition was held on February 22, 2008 at NEPRA
Office, Islamabad. This hearing was participated by the applicant, stakeholders,
commentators as well as general public.
2.
TARIFF SUMMARY
2.1
HUBCO based its tariff petition on a typical two-part structure with an EPP for
the
energy actually dispatched and a CPP based on the available capacity. The
energy charge is based on the actual kWh off-take, and consists of the fuel
component and the variable O&M component.
2.2
According to HUBCO-Narowal its proposed tariff figures are result of a
detailed
financial analysis. Technical, economical, financial, legal and fiscal aspects have
been
NEPRA
AUTHORITY
Page 2
of 36
Determination of Generation Tariff Hub Power Company Ltd. (HUBCONarowal)

No .NEPRA/TRF-92/HUBCO-NAROWAL2008
considered in the evaluation of the Company's financial performance. The

levelized tariff is based on a notional 60% plant factor as per the 2002 Power
Policy
and
a
25years PPA term.
2.3
price
HUBCO-Narowal based on the RFO price of PKR 25,714.50 per metric ton (RFO
including transportation), output of 213.60 MW (net at site conditions) and

detailed
financial analysis, established the following tariff:
CPP US Cents/kWh
Energy Charge
Total tariff
Total
at 60% Plant Factor
US Cents/kWh
US Cents/kWh
PKR
tariff
/kWh
Levelized tariff
Average tariff
4.0651
3.3288
Average (1-10 years)

Average (11-25 years) :
Average (1-25 years)
Levelized (1-25 years) :
3.
3.1
Investment
8.6871
8.6871
12.7522
12.0159
7.7788
7.3297
US
cents
13.6111/kWh
PKR8.3027/kWh)
US
cents
10.9524
/kWh
PKR6.6810/kWh)
US
cents
12.0159/kWh
PKR7.3297/kWh)
US
cents
12.7522/kWh
PKR7.7788/kWh)
(or
(or
(or
(or
According to the petitioner following investment is estimated in the Project.

Investment / Cost
EPCC Cost
Million USD
191.36
Non EPCC Cost
6.85
Housing Colony Cost

Land Acquisition & Land Development Cost
Taxes & Duties
Development Costs
Emergency & Safety Spare Parts
2.00
3.88
9.75
4.89
2.60
Mobilization & Other Costs

Start-up Expenses & Utilities
2.65
1.29
Pre-COD Insurance Cost

Financing Fees & Charges
2.58
3.89
12.60
Interest During Construction
244.34
Total Project Cost

4.
GENERAL ASSUMPTIONS
4.1
According to HUBCO-Narowal in addition to the other assumptions made

in
the
foregoing paragraphs, the following general assumptions have been taken into
account while calculating the tariff. Changes in any of these assumptions
will result in a change to the proposed tariff:
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Page 3
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Determination of Generation Tarifffor Hub Power Company Ltd. (HUBCONarowal)

4.2
be
Internal consumption
(including air-cooled condenser) has been assumed to
approximately 5.55 MW.

4.3
Annual plant availability of 88% in terms of the GOP's policy. Scheduled
outage
allowance of 30 days per engine per annum, except in any year in which a
major overhaul is required, the scheduled outage period shall be 60 days per
engine. Annual unscheduled outages (MWH) of 500 hours shall be allowed.
4.4
NTDC/Power Purchaser shall be responsible for procuring, financing,
constructing,
operating and
maintenance of the
interconnection,
metering and
transmission facilities at Project site.
4.5
tate
In case of open cycle mode (including during startups or peaking operation), heat
and efficiency will be different. Accordingly, energy component of tariff will
be adjusted.
4.6
after
All fuels and chemicals, consumables, and associated costs during plant tests
synchronization is assumed to be paid for by the Power Purchaser.
4.7
The tariff is calculated on the basis of a notional 60% plant load factor.
4.8
A constant ROE is assumed, which results in an IRR of 15% over 25 years.
4.9
No hedging cost has been assumed for exchange rate fluctuations during
construction.
4.10
The cost of working capital has not been included as part of the project cost.
4.11
Project contingency/debt service reserves are not included in tariff
calculations. If
required by lenders, these will be adjusted accordingly in the tariff.
4.12
The 5% of the customs duties have been assumed for reference purposes, any
change
therein would be pass-through. No other tax including any Federal Excise Duty on
the import of plant and equipment is assumed. It is assumed that no part of
the power plant and the associated equipment supplied under the ESC will be
treated as locally manufactured.
4.13
Tax on any income of the Company including sales proceeds from NTDC,
general
sales tax and all other corporate taxes will be treated as pass-through items.
4.14
No withholding tax on supply of plant and equipment assumed.

6%
withholding tax on onshore construction services and works assumed.
Only
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Page 4 of 36
Rein
No . NEPRA/TRF-92/HUBCO-NAROWAL-2008
4.15
Withholding tax on dividends (currently at 7.5%) as required to be deducted
under
the Income Tax Ordinance, 2001 or any other law for the time being in force at
the
time of such payment is considered as pass-through.
4.16
100% local debt is assumed.
4.17
No LC confirmation charges have been assumed. If applicable, the adjustment
based
on actual, up-to- a maximum of 3%, shall be treated as pass-through to the
Power Purchaser.
4.18
The tariff table shall be further updated at COD in order to adjust the tariff
according
to the actual KIBOR and exchange rates (PKR/USD, PKR/ Euro and USD/ Euro)
and other re-openers.
4.19
2006
All invoicing and payment terms are assumed to be in accordance with the
standardized PPA.
4.20
If Power Purchaser requires the dispatched delivery to be made in excess of
that to
the existing 132kv Narowal Badomali Transmission line or to any other
additional circuit, the additional cost incurred by the Company will be paid
by the Power Purchaser.
4.21
The cost of metering system (except back up meter) and remote terminal unit
(RTU)
to be borne by the Power Purchaser. In case HUBCO is required to meet this
cost, it would be claimed under the non EPC Cost.
4.22
All other assumptions not expressly stated herein are based upon the
2006
standardized PPA. Consequently any change in any such assumption may
lead to change in the tariff.
4.23
Any incentives given to any other project of the same technology shall also be
given
to HUBCO.
5.
DETERMINATION SOUGHT
5.1
tariff
Petitioner requested the Authority to approve the Company's generation

together with the pertinent indexations to remain effective for a period of 25
years from the COD.
6.
ISSUES
6.1
Following issues have emerged out of the proceedings;
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L-2008
A. Plant Capacity
B. Project Cost
i).
EPC Cost
ii).
Non EPC Cost
iii)
Emergency Spare Parts
iii).
Mobilization/Pre-Operation Cost
iv).
Development Cost
v).
Land Acquisition and Land Development Cost
C. Financing Fees
D. Interest During Construction
E. Capital Structure
F. Capacity Charge
i).
Fixed O&M
ii).
Insurance
iii).
Cost of Working Capital
iv).
Return on Equity
v).
Return on Equity During Construction
vi).
Debt Servicing
G. Energy Charge
i).
Fuel Cost
ii).
Variable O&M Cost
H. Timeline/Completion of Project
6.2.
The petitioner provided the following information;

i)
and
Copy of Memorandum of Understanding (MoU) for Supply of Equipment

construction of complex;
ii)
Copy of Reservation Agreement for Equipment;
iii)
Copy of Equipment Supply Contract (ESC);
iv)
Copy of draft Construction Contract;
v)
Copy of Technical Specifications and scope of work;
vi)
Copy of Offer prices for different activities;
vii)
Copy of Proposals from the consultants;
viii)
Back-up calculations of different costs; and
ix)
Copies of the communications with the EPC Contractor regarding

clarifications on certain cost items;
6.3.
The Authority while making assessment in the instant case in addition to
above
information and documentary evidence also considered the determinations of
the
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No . NEPRA/TRF-92/HUBCO-NAROWA
L-2008
similar/comparable cases. Issue wise discussion and decisions are given in

following paragraphs:
7.
7.1
site
Plant Capacity
The petitioner submitted that the proposed plant will produce 213.6 MW (net at
reference conditions) in Combined Cycle mode. The main component of the
plant are eleven proven generating sets of type 18V48/60 manufactured by
MAN and eleven heat recovery steam generators (HRSG) to provide steam to
provide steam to one condensing steam turbine. According to the
documentary evidence its auxiliary consumption (including air-cooled
condenser) would be approximately 5.55 MW. The equipment is designed to
operate within the following ambient conditions:
7.2
is
Altitude above sea level (maximum)

Wet bulb temperature
Minimum ambient air temperature
Maximum ambient air temperature
200 m
24 C
3 C
50 C
The manufacturer has guaranteed 213.6 MW continuous power of the plant which
calculated for the following reference conditions:

Relative Humidity
30 C
989 mbar
61%
47 C
7.3
The above reference conditions are in accordance with the technical
specifications
provided by the petitioner therefore the same are being adopted. The
tariff components have been assessed on the basis of minimum guaranteed net
capacity of 213.6 MW at site conditions. In case at the time of COD the net
plant capacity at site conditions is determined higher than the minimum net
capacity of 213.6 MW the relevant tariff components would be required to be
adjusted accordingly. However, there would be no adjustment if net capacity at
reference site conditions is established less than 213.6 MW at Initial Dependable
Capacity (IDC). The adjustment in the relevant tariff component for higher
net capacity shall be made according to the following formula:

components of
Capacity Charges.
Where;
Page 7
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CC(Adj)
CC(Ref)
NCupc)
time of

Net Capacity at reference site conditions established at the
IDC test
Revised
adjusted
as per IDC test.
8.
PROJECT COST
8.1
EPC Cost
8.1.1
The petitioner submitted that EPC cost was 149.500 million
comprising of
Equipment Supply Contract (ESC) price of 135.60 million or US$173.57
(converted at the reference exchange rate of Euro 1 = USD 1.28) and the
Construction Contract
(CC) price of 13.90 million or US$ 17.79 million (converted
at
the
reference exchange rate of Euro 1 = USD 1.28). According to the petitioner its
ESC was lump sum cost and included the cost of 11 diesel engine generating
sets with one steam turbine and one 132-kV 2-bay switchyard together with
all the necessary auxiliary machinery, equipment and systems including the
erection and commissioning of the equipment and construction of buildings.
The ESC price also included the cost of the fuel tank for 30 days inventory of
RFO along with fuel pumping system with all heating and piping
arrangements as well as the fire containment area and the fire fighting
system.
8.1.2
of
In order to substantiate its claim the petitioner provided Memorandum

Understanding (MOU) which was signed on November 13, 2007. As per the
terms of MOU both parties had to sign an EPC contract within two months of
signing of MOU. Commercial Operation Date (COD) as per MOU is March
2010. The copies of the reservation agreement along with copy of ESC
contract were also provided by HUBCO-Narowal. According to clause 4.2 of
the reservation agreement the contract price covers:
"the
supply,
transportation,
erection,
construction,
installation
testing,
commissioning and completion of the complex as described/set out under

the initialed (by both parties) appendices I &A of the Equipment Supply
Contract (ESC) and Construction Contract (CC) respectively and that upon such
completion of the complex it shall have fully operational all equipment and
facilities necessary for the complete, safe, and reliable operation and
maintenance of the complex and that all portions of the complex will be
able to be safely and in particular in accordance with the generally accepted
prudent utility and engineering practices."

8.1.3
the
The ESC cost has been compared with other similar projects and is observed that
ESC cost of HUBCO-Narowal of 135.6 million is higher by about 2
million as against 133.4 million in the case of Bestway Power Limited (BPL). It
is also observed that despite the higher ESC cost, the ESC price does not cover
the cost of emergency spares and part of the insurance cost as required under
Schedule 8 of Standard PPA. The HUBCO-Narowal requested the cost for
emergency spares of 2.031 and insurance (Pre COD EAR/CAR and marine
insurance) cost of 2.016 separately. If it is included in the ESC price the
comparable ESC would be 140.21 which is about 5% higher as compare to BPL.
8.1.4
that
Based upon the analysis and comparison of the ESC cost, the Authority considers
although the ESC cost is slightly high but is still within the reasonable range
keeping in view the international market trends and availability of the
equipment. The Authority has therefore decided to accept the ESC of 133.4
million.
8.1.5
Euro
During hearing HUBCO-Narowal stated that their construction contract was for
13.9 million but they were negotiating with the ESC contractor to convert
the Construction Contract in US$. Subsequently HUBCO-Narowal informed in
writing that they have negotiated an exchange rate of 1 Euro at 1.55 US$ to
convert its construction contract into Dollar. According to the petitioner at the
agreed Euro/$ parity of 1.55 the construction contract price worked out as
US$21.545 million. The Authority considers that the agreed construction
cost of US$21.545 million is comparable with the other similar projects
therefore is being accepted.
8.2
Non EPC Cost
8.2.1
were
The petitioner requested US$ 8.772 million for non-EPC to cover costs which
not part of MAN's scope of work pursuant to the EPC contract. According to the
petitioner the requested non-EPC cost was required for the following activities;
Water(including pipeline for facility, main storage tank, waste water
Sludge disposal system

On SITE Corporate Office
Water treatment and softening plant
Fence around switchyard
Site compaction work & surface leveling
system)
Control room for switch yard & switch yard surface covering
Tube wells etc.
Generator Rent, diesel etc
Station vehicles, office and etc.
Fire tenders, ambulance & pick-up
Automatic control of switch yard
Additional transport costs to Pulli
Power Stabilizer System (Basic)
NEPRA
AUTHORITY
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No .NEPRA/TRF-92/HUBCO-NAROWAL-2008
Truck weighing machine

Additional Interconnection to Grid 4 bay instead of 2 bay
Civil Works for Sub- Station extension for further 2 OHL
Filling, compaction and Piling cost
8.2.2 The Authority, having examined all the relevant documentary evidence,
considering
the justification given by the petitioner and determinations made in the cases of
other similar projects, observed that some of the costs were either duplicate or
were not legitimate while most of the costs were over-estimated and
required to be rationalized. Based upon the detailed item wise analysis the
Authority has assessed US$ 2.2918 million to cover the above costs at serial
no.1,2,4,5,7,8,9,11,13,14,15&16 under non-EPC head.
8.3
Emergency & Safety Spare Parts
8.3.1
and
The petitioner requested for US$ 2.6 million (Euro 2.031 million) for Emergency
safety spare parts aimed to reduce, as much as possible, the stop times for
maintenance of the plant and to ensure the required annual plant availability.
According to the petitioner these costs were estimated at 1.5% of ESC price
which was consistent with the Authority's ruling in other similar projects.
8.3.2 The review of the technical specifications indicates that the item 7.1.4 of the
technical
specifications provide brief scope of plant spares. The technical specifications
further provide that the detailed spare parts list would be submitted after final
engineering which means that the list indicated in the technical specification is
not complete. The Authority was unable to validate the detailed scope of
plant spares from the information provided by the HUBCO-Narowal.
8.3.3
Having examined all the relevant information the Authority is convinced that
HUBCO-Narowal's request for provision of emergency spare parts is not
justified;
therefore is not accepted.
8.4
Staff Housing Colony Cost
8.4.1
Petitioner stated that the Project SITE is located approximately 60-km from
Sialkot
and 120-km from Lahore therefore housing colony was essential to be
established at SITE in view of the long distance from major cities and in
order to maintain the safety/ security of key personnel (including expatriates)
on SITE for the maintenance of the plant and the reliabiwere are also following
the same practice of keeping key personnel on SITE.
8.4.2
and
The Authority examined the information and evidence provided by the petitioner
found that the petitioner's estimates were slightly on the higher side and needed
to be corrected. The Authority also compared cost requested by the petitioner for
staff
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L-2008
housing colony with costs of US$

1.675 million and US$ 1.551 million
allowed to
other similar projects. Having considered all the relevant documentary evidence
and
the costs allowed to other similar projects has assessed US$ 1.804 million in the
instant
case.
8.5
Land Acquisition and Land Development Cost
8.5.1 Petitioner requested US$ 3.89 million to cover the cost of purchase of land,
together
with stamp duty and registration fees, the fees of the broker and the legal
consultants, the cost of backfilling of the SITE as well as construction of the
bOundary wall and topographic and geotechnical surveys. The cost under this
head also included the construction of 60 ft x 50 ft Bridge to cross a feeder
canal and an access metal road of approximately 500-meters.
8.5.2
45
The Authority has been informed that the cost requested by the petitioner was for
Acers of land. In the cases of WARDA, Nishat Chunian, Nishat Power, Atlas
Power and Gujranwala Energy Limited, the Authority determined a ceiling of
25 Acers for such type of plants. The justification of procurement of additional
land was sought from the petitioner. The petitioner stated that land was not
available in a square and it had to procure the land in rectangular shape.
Consequently the EPC contractor had to modify its layout plan according to
which 28 Acers of land was required for plant only. The remaining land was
procured for constructing staff colony and approach road from the main road
etc. Only for approach road 7 acres were required.
8.5.3
The Authority considers that the justification given by the petitioner in
support of
procurement of 45 Acers of land does carry weight therefore is accepted.
Accordingly the Authority has decided to allow US$ 0.67 million for procurement
of land.
8.5.4
The petitioner's request for allowing US $ 2.14 million for backfilling and
compaction
etc. has been evaluated and analyzed on the basis of documentary evidence
provided by the petitioner. In this regard the petitioner provided relevant
pages of the study carried out by the NESPAK according to which the
petitioner is required to replace soil to gain required soil bearing capacity. The
soil replacement and compaction is required only to the extent of plant area as
against for the entire land as requested by the petitioner. The petitioner did not
provide authentic/valid evidence in support of its cost calculation therefore for
the purpose of fair assessment of the costs on this account the information
provided by Liberty Power Tech Limited (LPTL) has been used as reference.
8.5.5
Having considered the information provided by the petitioner the cost of
backfilling
pertaining to the 7 Acers of land procured for approach road was duplication
because the cost for constructing approach road covered such cost and was
separately claimed by the petitioner. As compared to LPTL in the instant
case cost of filling and compaction has increased due to the additional land
procurement. Additionally the
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L-2008
level of the area is lower than the flood level of the area (as per the draft
report of Hydrological Study by NESPAK). Having considered all the relevant
aspects and after incorporating the inflationary impact and allowance for low
level area the Authority has assessed US$ 1.1623 million on this account to be
adjusted as per actual subject to maximum of US$2.14 million
8.5.6
The petitioner requested US$ 0.66 million for road inside/outside the facility
about 5
kM. According to the scope of the EPC contract the road inside the boundary
wall is the responsibility of the EPC contractor therefore the cost needed to
be adjusted accordingly. After incorporating the adjustment for roads inside
the boundary wall the cost has been assessed as US$ 0.462 million for roads
outside the facility.
8.5.7
and
The petitioner requested US$
0.36 million for pulli/bridge, topographic
geotechnical surveys and construction of boundary wall. The Authority considers

that costs requested by the petitioner are comparable with the similar projects
therefore decided to allow as such.
8.5.8 In light of the above, the Authority has assessed the overall cost of US$ 2.6543
million
3.89
on account of land acquisition and land development as against US$
million
requested.
8.6
Import Duty & Taxes
8.6.1
the
Petitioner requested US$ 9.75 million for import duty and Taxes. According to
petitioner it covers custom duties and import taxes @ 5% of the cost of
plant and equipment under the ESC. The withholding tax of 6% of the CC
price has been included. Any duties or taxes in excess thereof (or any new
taxes or duties) shall be treated as "pass-through" items to the Power Purchaser.
8.6.2
The Authority in other similar cases adopted 5% custom duties with the
provision of
adjustment as per actual at COD. The same has been assumed in the instant
case. Accordingly based on the adjusted EPC price the Authority for the
purpose of tariff calculation has assessed customs duty/withholding tax of US$
10.547 million to be adjusted as per the actual on provision of documentary
evidence at COD.
8.7
Project Development Costs
8.7.1
cover
The Petitioner requested for US$ 4.89 million for project development costs to
cost of Bankable Feasibility Study, Load Flow & Short Circuit Studies,
Fees for Engineering & Technical Consultants, Legal Consultants (Local +
Foreign), Performance Guarantees/Fees to PPIB / NEPRA, WAPDA L/C Cost
and Independent Engineer Cost (Required under the PPA).
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No .NEP RA/TRF-92/HUBCO-NAROWA
L-2008
8.7.2
has
In order to make fair assessment of the project development cost, each component
been evaluated on the basis of information provided by the petitioner and
compared with most recent determinations. The Authority also considered
the information provided by the petitioner in support of its claim i.e.
financial proposal from FICHTNER for bankable feasibility study and
Owner's Engineer for HUBCONarowal. From the available information the
cost requested by the petitioner for bankable feasibility could not be validated.
In absence of any reliable information the Authority had to rely on the
determinations made in the similar cases.
8.7.3
From the available information although it was confirmed that the petitioner
acquired
the services of Mot-Macdonald Pettit (MMP), Ireland as its owner
engineer/technical consultant, however the total cost of the assignment could
not be validated. The payment to the extent of US$ 125,000 + traveling and
out of pocket expenses to be made to MMP, for reviewing the design
information and technical specifications, advising on risk reviews and
assisting negotiations and finalization of the EPC contract document was also
confirmed from the documents.
8.7.4
other
Having considered the relevant documentary evidence and the costs allowed in
similar projects the Authority has assessed US$ 2.55 million for project
development
cost.
8.8
Mobilization & Other Costs
8.8.1
for
The petitioner requested US$ 2.65 million on account of O&M mobilization costs
six months, HUBCO'S personnel prior to COD including HUBCO's
Lahore/Narowal Office & establishment cost, Review design information,
review risk, review of technical specifications, negotiation with EPC Local
assistance to O&M Contractor, Training abroad for HUBCO'S O&M personnel.
8.8.2
Based on the information provided by the petitioner and allowed in other
similar
cases, all the costs except for the cost of review design etc are reasonable therefore
are being allowed as such. The cost for review design information, review risk,
review of technical specifications, and negotiation with EPC has been covered
under the project development cost. Having considered all the relevant
information, the overall mobilization and other costs have been assessed as US$
2.5 million.
8.9
Start-up Expenses & Utilities
8.9.1 Petitioner requested US$ 1.29 million on account of start-up expenses and
utilities.
The petitioner requested US$
100,000 for Utilities (Electricity, telephone,
water
supply, internet etc.) during construction and US$ 1,190,000 Initial Filling of
diesel, chemical and lubricants for startup and testing before synchronization.
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No . NEPRA/TRF-92/HUBCO-NA ROWA
L-2008
8.9.2 The examination of the information revealed that most of the costs were
already
covered under different heads therefore the Authority has excluded these costs
from the start-up expenses and utilities. After adjusting the amounts
allowed under different heads the Authority has assessed and allowed an amount
of US$ 0.25 million on this account.
9.
Pre-COD Insurance Cost
9.1
the
Pre-COD Insurance cost covers the cost of insurances of the Complex during
construction phase and up-to the COD. This is estimated at 1.35% of EPC cost
and is in line with the Authority's ruling in other projects.
9.2
In Authority's opinion Article 14 of the ESC which deals with the general
obligations
with respect to insurance is entirely ambiguous. The Article does not clearly
indicate the responsibilities/obligations of the contractor and the owner. It is
observed that the parties have not yet finalized the insurance terms of EPC
contract. In the absence of any authentic evidence the exact amount payable
by the petitioner cannot be determined at this point of time. The Authority
considers that an adjustment to the extent of payment to be made by the
petitioner, if any, on this account can be made at the time of COD, subject to the
condition that the overall insurance amount payable by both EPC contractor and
the petitioner in accordance with the PPA terms does not exceed 1.35% of the EPC
price.
10.
Financing Fees & Charges
10.1 The petitioner requested US$

which
and
included the upfront fee US$
3.89 million as financing fees and charges

1.5 million, arrangement fee US$
2 million
monitoring fee US$ 0.39 million. These fees and charges are assumed at 2.5% of
the debt amount, which will be adjusted at COD as per actual, subject to the
maximum of 3% of such debt amount.
10.2
the
The Authority considers that the petitioner's request is reasonable and in line with
decisions in other similar cases therefore is accepted. Accordingly based on the
revised Capital Structure, the financing fee has been assessed as US$ 4.33
million to be adjusted as per actual at the time of COD subject to the
maximum of 3% of the borrowing.
11.
Interest during Construction (IDC)
11.1
According to the petitioner the calculation of IDC of US$

(subject to
12.6 million
actual adjustment) were based on the payment schedules keeping in view the
equity and debt injections together with the applicable interest/mark up rates. In
view of the delivery schedule under the ESC, the Project's implementation
period will be 24 months corresponding to 31 March 2010.
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No . NEPRA/TRF-92/HUBCO-NAROWA
L-2008
11.2
After adjusting the EPC price for exchange rate parity and the interest rate of
13.45%,
the IDC in the instant case has been assessed as US$ 14.722 million which is subject
to
adjustment as per actual at the time of COD based upon the actual disbursement etc.
12.
CAPITAL STRUCTURE
12.1
The petitioner submitted the following capital structure of the Project:
12.2
Equity
Debt
Million USD
73.30
171.04
Total Project Cost

Debt : Equity Ratio
244.34
70:30
Based on the adjusted Capital Expenditure (CAPEX) the revised capital structure
is
indicated as under:
Million USD
Equity
Debt
Total Project Cost
Debt : Equity Ratio
82.246
191.908
274.154
70:30
13. CAPACITY CHARGE

13.1 Fixed O&M
13.1.1 According to the petitioner the fixed O&M component of the escalable CPP of
Rs.
0.1500 per kW per hour represented the fixed costs of all the staff for O&M,
cost associated with periodic maintenance for ensuring availability, plant
administration, security, transportation, overheads, office costs, professional fees
such as audit, tax and legal, as well as some other fixed operational costs such as
environmental monitoring and obsolescence, that do not change with dispatch
levels. The breakdown of fixed O&M cost in local and foreign portion is as under:
Local Fixed O&M Cost Component
Foreign Fixed O&M Cost Component
30%
70%
13.1.2 The information provided by the petitioner in support of its claim is not
consistent
with the original submission of the petitioner. According to the information
provided
by the petitioner its fixed O&M cost comprised of O&M operator fee Rs. 0.1174
per
kW per hour and HUBCO's cost Rs. 0.0326 per kW per hour. The amount
requested
by the petitioner in the instant case is much higher as compared to other similar
Page 15
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No .NEPRA/7'RF-92/HUBCO-NA ROWA
L-2008
projects recently decided by the Authority. Since the tariff determination of

similar cases, the depreciation of rupee against Euro/US$ has been observed
therefore some adjustment on this account in the O&M foreign component of
cost is considered
justified. After incorporating the adjustment for exchange rate parity the
foreign component of fixed O&M cost in the instant case has been assessed as
Rs. 0.1100 per kW per hour and local component of fixed O&M as Rs. 0.0325
per kW per hour. The
overall fixed O&M cost in the instant is allowed as Rs. 0.1425 per kW per hour.
13.2 Cost of Working Capital
13.2.1 Petitioner requested 0.0945 per kW per hour as cost of financing working
capital.
According to the petitioner working capital loan facility of USD
23.29
million is assumed in order to finance the inventory level of RFO
equivalent to 30 days generation at 100% load factor and energy payment at 60%
receivable along with GST for 30 days. The cost of Working Capital Facility is
assumed at 12.45% (3 month KIBOR (10.45%) + 2% margin) with no other
charges (e.g. commitment fee).
13.2.2
level
As per the terms of PPA the IPP is required to maintain fuel inventory
equivalent to 30 days generation at 100% load factor. The working in the instant
case for inventory is inline with the PPA requirement. Based upon the
reference fuel price of Rs.22,140 + Freight Rs.2,350 per M/Ton, the fuel stock
requirement at 100% load factor, has been assessed as US$ 11.149 million.
13.2.3 The petitioner requested receivables Variable 100% for 30 days (60% load
factor),
which is in accordance with the PPA terms. The Authority considers that
the petitioner will require additional working capital because it will raise its
invoice for energy payment after each 30 days and the power purchaser will
make payment after next 30 days. On the average 30 days energy charge at
60% dispatch will remain in the billing cycle. The petitioner's request being
legitimate is accepted as such. For this purpose only fuel cost will be
considered relevant. On the basis of aforementioned, the assessed
working capital requirement for HUBCO-Narowal is US$ 6.689 million.
13.2.4
and
The petitioner's request regarding provision of
15% sales tax on inventory
receivables is justified. The Authority in the instant case has assessed US$
2.6758 million in this context.

13.2.5 Based upon the working capital requirement of US$ 20.5147 million at
Rupee/dollar
parity of 65.95, the financing cost @ 12.45% (KIBOR 10.45% + 200 points
spread) has been assessed as US$ 2.554 million or Rs. 0.0900 per kW per hour.
This cost will be adjusted according to the actual prices prevalent at the
time of first fill at COD according to the following formula;
CWC(ad)) =
0.0900 / 25,715 * FP (current)
*ER Re
0
i,4ului
,t./
NEPRA
.../kAU
Y
THORIT
Page 16 of 36

No . NEPRA/TRF-92/HUBCONAROWAL-2008
Where:
CWC(adj)
FP (current)
=
=
Adjusted cost of working capital

Actual fuel price at the time of first fill
13.3 Insurance
13.3.1 The petitioner requested US$ 2.5834 million or Rs. 0.0842 per kW per hour
on
account of insurance @ 1.35% of EPC cost
13.3.2 Since the request is in line with the already determined cases by the
Authority
therefore is accepted. The Authority has accordingly assessed the insurance
cost of US$ 3.138 million or Rs. 0.0116 per kW per hour to be adjusted as per
actual subject to maximum of 1.35% of EPC price.
14.
14.1
Return on Equity (ROE)

The petitioner requested Rs. 0.3738 per kW per hour as return on equity of US$
73.881 million to achieve net 15% IRR. On the basis of revised project cost
HUBCONarowal's equity has been calculated as US$ 82.246 million.
Accordingly ROE works out as Rs. 0.4348 per kW per hour. The petitioner's
request for allowing indexation to the ROE is in line with the GoP policy
therefore is accepted. The adjustment will be made according to the following
formula
ROE(Rev)= ROE(Reo * ER(Rev)/ 65.95
Where;
ER (Rev)= The revised TT & OD selling rate of US dollar as notified by
the
15.
15.1
per
Return on Equity During Construction (ROEDC)

The petitioner requested ROEDC of US$
18.84 million or Rs.
0.0950 per kW
hour, which is based on 24 months construction period.

15.2
been
On the basis of 2 year construction period ROEDC in the instant case has
assessed as US$ 8.019 million or Rs. 0.0437 per kW per hour subject to
adjustment at the time of COD on account of exchange rate variation and
variation in disbursement as compared to projected disbursement plan according
to the following formula:
ROEDC(Rev)= ROEDC(Ref) * ER(Rev)/ 65.95
Where;
;DER RE
-472()
V
(Z""
c
a
l
1
4
J
J
1
1
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NEPRA
,)
AUTH
ORITY t.......................
Page 17
of 36
Determination of Generation Tarifffor Hub Power Company Ltd. (HUBCOMarowal)

the
ROEDC (Rev)=
Revised ROEDC
ROEDC (Ref)=
Reference ROEDC
ER (Rev)=
The revised TT & OD selling rate of US dollar as notified by

16.
16.1
the
Withholding Tax
HUBCO-Narowal requested that withholding tax should be allowed at 7.5% or
actual applicable rate on the ROE and ROEDC subject to adjustment in
US$/PKR exchange rate variation.
16.2
The Authority considers that the petitioner's request is justified therefore is
being
accepted. Withholding tax shall be adjusted accordingly on account of exchange
rate variation according to the following formula;
WT(Rev> =
0.0359/65.95 * ER(Rev)
Withholding tax revised

National
Bank of Pakistan
17.
Debt Servicing
17.1
The petitioner requested debt service of Rs. 0.9840 per kW per hour on the
basis of
debt of US$ 172.438 million and interest rate of KIBOR 13.45%.
17.2
Due to adjustment of exchange rate the project cost has been revised.
Accordingly
the debt amount has also been revised as US$ 191.908 million. Assuming interest
rate
of 13.45% (3 month KIBOR i.e. 10.45% + 300 basis points) the debt
service
component of Rs. 1.2401 per kW per hour has been assessed subject to
adjustment for variation in KIBOR on quarterly basis according to the following
formula:
AI
P(REV)
* ( M BOR(REV) -
10.45%) / 4
Where:
the variation in interest charges applicable
DI
corresponding to
variation in quarterly KIBOR. A I can be positive or
negative
depending upon whether KIBOR (REV) > or < 10.45%.
The
interest payment obligation will be enhanced or
reduced to the extent of A I for each quarter under
adjustment applicable on quarterly
Page 18
of 36

L-2008
P(REV)
18.
is the outstanding principal (as indicated in the attached debt

service schedule to this order) on a quarterly basis on the
relevant quarterly calculations date. Period 1 shall
commence on the date on which the 1st installment is due
after availing the grace period.
ENERGY CHARGE
18.1 Fuel Cost

The petitioner requested fuel cost of Rs. 4.7811 per kWh on the basis of
following
reference numbers;
18.1.1
RFO Price:
PKR
Rs. 25,714.50 per ton (including transportation cost of

2,350, subject to adjustment as per actual). GST is not
included in the RFO Price and shall be pass through to
the
Thermal efficiency
factor.
net:
Power Purchaser at actual

45% (at reference site conditions) at 100% plant load
Output:
Heat Rate:
213.60 MW (net at reference site conditions)

8,000 kJ/kWh at 100% plant capacity factor
Calorific Value
40,792 BTU/kg subject to adjustment at the time of

finalization of Fuel Supply Agreement
Heat rate curves from MAN to be used for partial load
Partial Loading:
heat
rate calculation and payment in case the plant load

falls below 100%.
18.1.2 This component represents the fuel consumption at a guaranteed efficiency
level of
45% at 100% plant load factor over 25 years of life of the project.
18.1.3
In the case of other similar projects, a mechanism for determination of fuel
cost
component along with adjustment on account of fuel price variation has already
been prescribed. In order to maintain consistency the Authority has decided to
adopt the same mechanism. For the purpose of calculation of fuel cost
component, the following reference values have been used;

RFO Price (HHV)
Inland Freight
Total
Price RFO (HHV)
LHV, HHV adjustment factor
RFO Price (LHV)
Calorific Value
Rs. 22,140 per ton

Rs. 2,350
Rs. 24,490
1.05
Rs. 25,714.5 per ton
40,792 BTU/Kg
*ER R6
1.
0
0
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,ti'
NEPRA
Lo
.....13AUTHO
TY
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Page 19 of 36

18.1.4 Based upon the above reference values the fuel cost component in the instant
case
has been assessed as Rs. 4.7811 per kWh i.e. fuel cost Rs. 4.3223 and freight
Rs.
0.4588. The Variable Charge Part of the tariff relating to fuel cost shall be
adjusted on account of the fuel price variations according to the mechanism given
below:
The Variable Charge Part of the tariff relating to fuel cost shall be adjusted
on account of the fuel price variations according to the mechanism given below:
FC (Rev)
(Rs.4.3223 per kWh * FP(Rev) )/ Rs.23,247.07 per ton /40,792

* CV(Rev)+ (Rs.0.4588 per kWh * Ft(Rev) )/Rs.2,467.50 per ton
Where:
FC (Rev)
Revised fuel cost component of Variable Charge on

RFO Revised Calorific Value
=
=
CV(Rev)
The new price of RFO per Metric Ton adjusted for NHV/GHV
factor of 1.05 as per the following mechanism;
=
Ft(Rev)
FP (Rev)
Revised Freight Charges adjusted for NHV-GHV factor
US$/Ton Rs./Ton
Description
(From Platts Oilgram Report) `
Black
Premium
(From
OGRA) C & F Price A

Crude Handling and Incidental charges (7.282% of C&F
Price)** Sub-Total B
OMC Margin (3.5% of Selling
Price) GST (15% on OMC

Margin)
Sub Total E
price
kNEPRA
_1 AUTHORITY.6_
^72,
0
Page 20
of 36

No .NEPRA/TRF-92/HUBCO-NAROWA L2008
* The supplier shall clearly indicate average Gross and Net calorific values of Arabian
Gulf or
any other source of which average reference fuel prices are used. Fuel supplier shall
provide
price adjustment mechanism due to variation in calorific value of the fuel being
supplied to
the IPP against the reference calorific values.
** Fuel supplier shall provide item wise actual incidental charges prevailing at the
time
of
receiving payment for fuel supply.
18.2
Variable O&M Cost
18.2.1 The petitioner requested the variable O&M cost of Rs.

0.5180 per kWh
which
comprises of:
Local Variable O&M
Rs. 0.1036 per kWh
Foreign Variable O&M
Rs. 0.4144 per kWh
Local Variable O&M
18.2.2
that
Petitioner requested to allow local variable O&M of Rs.
0.1036 per kWh
included the cost of lubricant consumption, which is directly related to

the electricity actually generated. The cost of lube oil for the engines will be
indexed to the prevailing Pakistan Wholesale Price Index ("WPI")
manufacturing as notified by the Pakistan Federal Bureau of Statistics. The
petitioner requested for quarterly indexation of Local Variable O&M Cost
Component. Subsequently the petitioner, vide its letter No. 04_NEPRA/wmk
dated April 10, 2008 submitted calculation of variable O&M cost. The breakup is
given as under:
Description
Lube Oil
Routine Repair & Maintenance & Other Operating Cost
Total
18.2.3
of
Rs. /kWh
0.1336
0.0424
0.1760
The petitioner's calculation for lube oil is based on the technical specifications
MAN Diesel (according to which the lube oil consumption at the reference
SITE conditions will not exceed 199.5 Kg per hour) and estimated lube oil price
of Rs. 145 per Kg. The Authority considers that the petitioner's request for
allowing Rs. 0.1336 in this regard is reasonable; therefore decides to allow as
such. The Authority further considers that the routine repair and maintenance and
other operating cost of Rs.
0.0424 per kWh requested by the petitioner is comparable with the cost
allowed to other similar projects therefore decides to allow the same as such.
The Authority has accordingly determined overall Variable O&M - local
component as Rs.0.1760/kWh to be adjusted according to the following formula:
V O&M(LREV) =
Rs. 0.1760 /kWh
* WPI (REV) /127.5
Where:
Page 21
of 36

V O&M(LREV)
The revised variable O&M local component of tariff
WPI(REV)
the revised wholesale Price Index
(manufactures)
Note: The reference Variable O&M indicated above shall be replaced with the revised
number at COD after incorporating the required adjustment based upon the IDC
Test.
Foreign Variable O&M

18.2.4 Petitioner submitted that foreign variable O&M of Rs. 0.4144 per kWh
included
imported spare parts and consumables to be changed during scheduled
maintenance and unscheduled maintenance. It also includes chemicals as
well as specialized technical services from the manufacturer during
maintenance of the plant. The generating sets and associated equipment
have manufacturer-recommended overhauling schedules that are commonly
based on actual running hours. The actual timing of the major overhaul
depends on the actual plant dispatch. The petitioner supported its request
with backup calculations based on the annual scheduled maintenance
budgetary costs for one engine indicated by the MAN Diesel. The
petitioner also requested to allow the following quarterly indexation on
foreign Variable O&M Cost Component of the Energy Purchase Price:
(a)
the USD /PKR exchange rate, based on the revised TT & OD selling rate of
USD
notified by the National Bank of Pakistan; and
(b)
18.2.5
for
US CPI, as issued by the US Bureau of Labor Statistics.
Based on the information provided by the petitioner, the major overhauling cost
spare parts at exchange rate of Rs. 65.95 per US$ including 5% import duty on
spare parts, the Authority has assessed Rs. 0.2369 as against of Rs. 0.3004
estimated by the petitioner. Similarly the variable cost for operator fee has been
assessed as Rs. 0.0159 per kWh as against Rs. 0.0250 per kWh worked out by the
petitioner.
0.0166/kWh on account of
18.2.6 The Authority considers that the cost of Rs.
other
chemicals and consumable requested by the petitioner is reasonable therefore
decides to allow the same as such.
18.2.7 Having considered all the components of foreign variable O&M, the
Authority
assessed overall variable O&M foreign component as Rs. 0.2694 per kWh. The
foreign variable O&M component will be adjusted according to the following
formula:
=Rs.
V O&M(FREV)
0.
2694/kWh
US
CPI(Rev)/211.08*
ER(REv)/65.95 Where:
V O & M (FREV)
of
the revised applicable Variable O&M Foreign Component

the Capacity Charge indexed with US CPI and Exchange
Rate variations
NEPRA
u" AUTHORITY

No .NEPRIUTRF-92/HUBCONAROWAL-2008
US CPI(REv) =
the revised US CPI
ER(REV)
by
the Revised TT & OD selling rate of US dollar as notified

Note:
The reference Variable O&M indicated above shall be replaced with the
revised
number at COD after incorporating the required adjustment based upon the
IDC
Test.
19.
Timeline/Completion of Project
19.1
31st
As per the documentary evidence timeline of COD by MAN Diesel is indicated as

March 2010 which is accepted as such.
20.
Adjustments at the COD
20.1
The petitioner requested that at COD, the escalable component and the nonescalable
components may be adjusted by the inflation factors and reference exchange
rates as defined and described herein:
o The non-escalable component may also be adjusted by the then
prevailing 3month KIBOR.
o The final local amount at the COD to be based on actual Euro exchange
rates
used by the lenders to make payment to the EPC contractors.
o No contingency has been included in the Project costs.
20.2
same
The Authority considered the request of the petitioner and decided to allow the
adjustment at COD as allowed in other similar cases based on decisions made in the
earlier paragraphs.
21.
Summary of the Decisions
21.1
The generation tariff has been assessed on the basis of following;

220.00
213.60
Plant Capacity (Gross ISO) MW

Plant Capacity (Net at reference site conditions) MW
\ '.\(1314-/
Auxiliary consumption (including air-cooled condenser)

Plant Availability
EPC PriceOffshore
MW
5.55
88%
135.6 Million
EPC PriceOnshore
Non-EPC
US$ 21.545 Million

US$ 2.298 Million
Staff Housing Colony Cost

Land Acquisition and Land Improvement
US$ 1.804 Million

US$ 2.654 Million
US$10.547 Million
US$ 2.550 Million
Import Duties & Taxes

Project Development Cost
Page 23
of 36

US$ 2.500 Million
Mobilization and
Other
Costs Start-up Expenses and
Utilities Financing Fees
Interest
During
Construction Debt:Equity
Ratio
Debt
Equity
Reference PKR/Euro exchange
rate Reference PKR/$ exchange
rate
Reference Calorific Value of
HSFO HHV/LHV Adjustment
Factor
Reference
Fuel
Price
US$ 0.250 Million

US$ 4.332 Million
(LHV)
Reference
Inland
Freight
Reference Thermal Efficiency (Net
LHV) Reference KIBOR (3-monthly)
IRR (Net of withholding tax of 7.5%)
Specified Reference
Tariff
Tariff Components
10
O&M Foreign
0.1100
O&M Local
0.0325
Cost of Working Capital
0.0900
Insurance
0.1106
Debt Service Local
1.2401
Year 1 to
US$14.722
Million
70:30
US$
191.908
Million US$ 82.246
Million
102.60
65.95
40,792 BTUs/Kg
1.05
Rs.22,140.07/M.Ton
Rs. 2,350/M.Ton
45%
10.45% + 300
basis
15%
Re
tur
n
on
Eq
uit
y
0.4
34
8
R
O
E
du
rin
g
Co
nst
ru
cti
on
0.0
43
7
Tota
l
Cap
acit
y
Cha
rge
2.06
18
Energy
Charge on
Operation on
Furnace Oil
Rs./kWh
4.7811
Fuel Cost
Compone
nt
Variable
O&M
Foreign
Local
Year 11 to 25
0.2694
Lube Oil
0.1100
0.0325
0.0900
0.1106
0.1336
Routine R&M
Indexation
US$ /PKR & US CPI
WPI
KIBOR
US$ /PKR
KIBOR
US$ /PKR
US$ /PKR
0.4348
0.0437
0.0424
0.8217
4.7811
Fuel Price
0.2694
0.1336
0.0424
US$ /PKR & US CPI
WPI
WPI
Note:
Annex-I.
i) Component wise proposed tariff for operation on RFO is indicated at

ii) Debt Servicing Schedule is attached as Annex-II.
In view of the above the Authority hereby approves the tariff of HUBCONarowal as
set out in the following order;
21.2
ER RE
Page 24
of 36
Determination of Generation Tariff for Hub Power Company Ltd. (HUBCONarowal)

No . NEPRA/TRF-92/HUBCO-NAROWA L2008
ORDER
Pursuant to Rule 6 of the NEPRA Licensing (Generation) Rules 2000, HUB
Power Company Limited (HUBCO-Narowal) is allowed to charge, subject to
adjustment of Capacity Purchase Price on account of net dependable capacity
as determined by a test jointly carried out by Central Power Purchasing
Agency (CPPA) and the petitioner, the following is approved as specified
tariff for HUBCO-Narowal for delivery of electricity to CPPA of NTDC for
procurement on behalf of Ex-WAPDA Distribution Companies:
Specified Reference Tariff
Tariff Components
Year 1 to 10

O&M
Foreign
O&M Local
Cost
of
Working
Capital Insurance
Debt Service
Local Return on
Equity
ROE during Construction
Year 11 to 25
Indexation
0.1100
0.1100
US$ /PKR & US CPI
0.0325
0.0900
0.0325
0.0900
0.1106
WPI
0.1106
1.2401
0.4348
0.0437
0.4348
0.0437
2.0618
0.8217
4.7811
4.7811
KIBOR
US$ /PKR
KIBOR
US$ /PKR
US$ /PKR
Total Capacity Charge

Energy Charge on Operation
on Furnace Oil Rs./kWh
Fuel Cost Component
Variable O&M
Foreign
Local
Lube Oil
Routine
R&M
Note:
I.
Fuel Price
0.2694
0.1336
0.0424
0.2694
0.1336
0.0424
US$ /PKR & US CPI
WPI
WPI
i) Component wise proposed tariff for operation on RFO is indicated at Annexii) Debt Servicing Schedule is attached as Annex-II.
The following adjustments /indexations shall be applicable to reference tariff;

I.
Adjustment in EPC Cost (One Time)
The Authority has assessed offshore EPC cost as 135.6 million and onshore as
US$
21.545 million (to be incurred in PKR). Since the exact timing of payment to
EPC contractor is not known at this point of time therefore an adjustment for
relevant foreign currency fluctuation for the portion of payment in the
relevant foreign currency will be made. In this regard the sponsor will be
required to provide all the necessary relevant details along with documentary
evidence. Based upon such
n.c)
-v,,
/o
0
73
w
NEPRA
HORITY t
u.i..3 AUT
ti
Z
Page 25
of 36

No . NEPRA/TRF-92/HUBCO-NA RO WA L2008
information the EPC cost components in Euro or Dollar shall be established and
shall be applied to the corresponding EPC cost components. The adjustment
shall be only for currency fluctuation against the reference parity values
according to the following mechanism;
EPC (Offshore)(Adj )= PKR 13,912,560,000 /
102.60*
E(PR)
EPC (Onshore)(Ad, )= PKR 1,420,892,750/ 65.95 *
E(PR) Where:
E(PR)
based
Respective Weighted Average PKR/EURO and PKR/US$ parity
upon timing of the payment

The tariff components i.e. Insurance, ROE, ROEDC, Principal Repayment and
Interest
Charges shall be adjusted according to the following formula at COD.
i)
Insurance Adjustment Mechanism for EPC Cost Variation

AIS(Re v) = inS(Re f EPC(Re f) x EPC (Adj.)
Where:
Ins(Rev)
= Revised insurance component of tariff

Reference insurance component of tariff
Ins(Ref)
EPC(Ref.)
= Reference EPC in PKR.
EPC(Ad).)
ii)
Adjusted EPC in PKR
Return on Equity Adjustment Mechanism for EPC Cost Variation
ROE (Rev)
= ROE (Ref) / E (Ref) * E(Rev)
Where:
ROE(Rev)
Revised reference Return on Equity component of tariff in PKR
ROE(Ref)
original
Reference Return on Equity component of tariff as per

schedule of tariff in PKR
E(Ref
Reference Equity in PKR (Rs. 5,424.13 million)
E(Rev)
iii)
Revised amoupt of Equity in PKR
ROEDC Adjustment Mechanism for EPC Cost Variation
ROEDC (Rev) = ROEDC (Ref) / EDC (Ref) * EDC (Rev)
Page 26
of 36

Where:
ROEDC(Rev)
of
Revised Return on Equity during Construction component

tariff in PKR
ROEDC(Rep =
components
Reference Return on Equity During Construction

of tariff in PKR
EDC(Reo
Reference Equity During Construction in PKR
EDC(Rev)
Revised Equity During Construction in PKR
iv)
Debt Servicing Adjustment Mechanism for EPC Cost Variation
DS (Rev) =
DS (Ref) / Debt (Ref)* Debt (Rev)
Note: The adjustment factor established as per the above formula shall be applicable to
the
individual components of principal and interest during the entire repayment
period.
DS (Rev)
Revised Debt Servicing component of tariff
DS (Ref)
Reference Debt Servicing component of tariff
Debt(Ref )
Debt(Rev.)
II.
Reference amount of Debt in PKR (Rs. 12,656.31 million)

Revised amount of Debt in PKR
Adjustment due to Variation in Net Capacity

The reference tariff has been determined on the basis of minimum net
capacity of 213.60 MW at delivery point at mean site conditions. All the tariff
components except fuel cost component shall be adjusted at the time of COD
based upon the Initial Dependable Capacity (IDC) tests to be carried out for
determination of contracted capacity. Adjustment shall not be made if IDC is
established less than 213.60 MW net capacity at reference site conditions. The
adjustments shall be made according to the following formula:
components of
Capacity Charges.
Where;
CC(Ad))
CC(Ref)
Page 27
of 36

NCapc)
of
Net Capacity at reference site conditions established at the time

IDC test
Revised
adjusted
as per IDC test.
Reference Conditions:
III.

Relative Humidity
30 C
989 mbar
61%
47 C
Adjustment in Insurance as per actual

The actual insurance cost for the minimum cover required under
contractual obligations with the Power Purchaser not exceeding 1.35% of the
EPC cost will be treated as pass-through. Insurance component of reference
tariff shall be adjusted as per actual on yearly basis upon production of
authentic documentary evidence by HUBCO-Narowal according to the following
formula;
Insurance (Rev)
AIC / (1.35 % x US$3.138 million) * AP
Where;
AIC
= Adjusted Insurance Component (Rs. kW/hr) as per IDC Test
AP
= Actual Premium subject to maximum of 1.35% of the adjusted
EPC
N.
Adjustment Based on Actual Interest During Construction

adjusted on account of actual variation in drawdown and Interest During
Construction with reference to the estimated figures.
V.
Adjustment due to Custom Duties & Taxes

adjusted on account of actual variation in custom duties & Taxes with reference
to the estimated figures of US$ 10.547 million. The impact of withholding tax on
local services is not
known at this point of time. However, these will be adjusted along with other
duties and taxes as per the actual on provision of documentary evidence at COD.
VI.
Adjustment for variation in Rupee/Dollar parity

Relevant reference tariff components shall be adjusted at COD on account of
variation in PKR/US$ parity.
1
...
A
NtIER RE
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t.
NEP RA
C.,
Ill
1
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AUTHOR I
4i
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--I
Page 28
of 36

No . NEPRA/TRF-92/HUBCO-NA ROWA
L-2008
VII.
Adjustment in Return on Equity (ROE)

Return on Equity will be quarterly adjusted on account of variation in PKR/US$
parity according to the following formula:
ROE(Rev)=ROE(Reo * ER(Rev)/
65.95 Where;
ER (Rev)= The revised TT & OD selling rate of US dollar as notified by the
National
Bank of Pakistan
VIII.
Adjustment in Return on Equity during Construction (ROEDC)

Return on Equity during Construction will be quarterly adjusted on account
of variation in PKR/US$ parity according to the following formula:
ROEDC(Rev)=
ROEDC(Ref) * ER(Rev)/
65.95
Where;
ROEDC (Rev)
Revised ROEDC
ROEDC (Ret)
= Reference ROEDC
ER (Rev)

IX.
Adjustment of Withholding Tax

Withholding tax will be adjusted on account of exchange rate variation
according to the following formula:
WT (Rev) =
W T(Ref)
ER
(Rev)/65.95 Where;
WT (Rev) = Withholding tax revised
WT (Ref) = Reference Withholding tax
ER(Rev) = The revised IT&OD selling rate of US dollar as notified by the
National
Bank of Pakistan
X.
Pass-Through Items
i)
"No provision for income tax, workers' profit participation fund and workers'
welfare fund, any other tax, excise duty or other duty, levy, charge, surcharge or
other governmental impositions, payable on the generation, sales, exploration has
been
Page 29
of 36

No .NEPRA/TRF-92/HUBCO-NAROWA L2008
accounted for in the tariff. If HUBCO-Narowal is obligated to pay any tax on

the income purely generated from its operation i.e. Electricity Generation of
power producer, the exact amount should be reimbursed by CPPA on production
of original receipts. This payment may be considered as pass-through (as
Rs./kW/hour) hourly payment spread over a 12 months period in addition to the
capacity purchase price in the Reference Tariff. Furthermore, in such a
scenario, HUBCO-Narowal may also submit to CPPA details of any tax shield
savings and CPPA will deduct the amount of these savings from its payment to
HUBCO-Narowal on account of taxation.
ii)
as
Withholding tax on dividend is also a pass-through item just like other taxes
indicated in the government guidelines for determination of tariff for new IPPs.
In a reference tariff table withholding tax number is indicated as reference
and CPPA (NTDC) shall make payment on account of withholding tax at the
time of actual payment of dividend subject to maximum of 7.5% of 15%
reference equity i.e. hourly payment (Rs./kW/hour) spread over a 12 month
period according to the following formula:
Withholding Tax Payable = R15% * (E(Ref) E(Red)} +ROEDC(Reo] *
7.5% Where:
Adjusted Reference Equity at COD
Equity Redeemed
ROEDC(Reo= Reference Return on Equity During Construction
E(Ref)
E(Red)
iii)
In case Company does not declare a dividend in a particular year or only
declares a
partial dividend, then the difference in the withholding tax amount (between
what is paid in that year and the total entitlement as per the Net Return on
Equity) would be carried forward and accumulated so that the Company is able
to recover the same in hourly payments spread over 12 months period as a pass
through from the Power Purchaser in future on the basis of the total dividend pay
out.
XI.
Indexations:
The following indexation shall be applicable to the reference tariff as follows;
a)
Indexation applicable to O&M

The Fixed O&M local component of Capacity Charge will be adjusted on
account of Inflation (WPI) and Fixed O&M foreign component on account of

variation in US CPI and dollar/Rupee exchange rate. Quarterly adjustment for
local inflation, foreign inflation and exchange rate variation will be made on 1st
July, 1st October, 1st January and 1St April based on the latest available
information with respect to WPI notified by the Federal Bureau of Statistics (FBS),
US CPI issued by US Bureau of Labor Statistics
9./
Page 30
of 36
Determination of Generation Tariff for Hub Power Company Ltd. (HUBCONarowal)

L-2008
and revised TT & OD selling rate of US Dollar notified by the National

Bank of Pakistan. The mode of indexation will be as under:
i)
Fixed O&M
F O&M(LREV)
F O&M(FREV) =
ER(REv)/65.95
Rs. 0.0325/kW/Hour * WPI (REV) /127.5

Rs. 0.1100/kW/Hour * US CPI(REV)/ 211.08*
Where:
F O&M(LREv)
the revised applicable Fixed O&M Local Component of the

Capacity Charge indexed with WPI
F O&M(FREv)
the revised applicable Fixed O&M Foreign Component of the

(All Urban)
Capacity Charge indexed with US CPI
and
WPI(REV)
(manufactures)
the revised US CPI (All Urban)
US CPI(REV)
ER(REV)
Exchange Rate variations

the revised wholesale Price Index
the Revised TT & OD selling rate of US dollar as notified by

Note: The reference numbers indicated above shall be replaced by the revised numbers
after
incorporating the required adjustments at COD.
ii)
Variable O&M
The formula for indexation of variable O&M component will be as under:

V O&M(LREV)
WPI(REV)
US CPI(REV)
V O& M (FREV)
=
=
Where:
V O&M(LREv)
V O&M(wREv)
=
=
V O&M(FREv) =
NNER
with WPI
Rs. 0.1760 /kWh * WPI (REV) /
127.5
Rs. 0. 2694/kWh * US CPI(REV)/
211.08* ER(REv)/65.95
the revised applicable Variable O&M Foreign Component of the

Capacity Charge indexed with US CPI and Exchange Rate
variations
the
revised
wholesale
Price
Index
(manufactures) the revised US CPI

the
revised
price
of
lubricants
Variable
O&M
Local
Component
of
the
Capacity Charge indexed with
WPI
the revised water treatment
Variable O&M Local Component
of the Capacity Charge indexed
Page 31 of
36
Determination of Generation Tarifff or Hub Power C
ompany Ltd. (HUBCO-
Narowal)
the Revised TT & OD selling rate of US dollar as not
ER(REV)
by
ified
Note:
The reference Variable O&M indicated above shall
iii)
Adjustment for KIBOR variation
be replaced with the revised
number at COD after incorporating the required adjustment based upon the IDC Test.
The interest part of fixed charge component will rema
in unchanged throughout
the term except for the adjustment due to variations in interest rate as a result of variation in
quarterly KIBOR according to the following formula;
A I(L) =
* (KIBOR(REV) 10.45%) / 4
P(LREV)
Where:
A 4)
the variation in interest charges on local loan applicable

corresponding to variation in quarterly KIBOR. A I can be
positive or negative depending

upon
> or < 9.75%. The interest
whether
KIBOR(REv)
payment obligation will be enhanced or reduced to the extent of
A I for each quarter under adjustment applicable on quarterly
basis
P(REV) =
is the outstanding principal (as indicated in the attached debt

service schedule to this order) on a quarterly basis on the
relevant1 shall
quarterly
calculations date.
commence on the date on which the lst
Period
installment is due after availing the grace period.
iv)
The Variable Charge Part of the tariff relating to fuel cost s
hall be adjusted on
account of the fuel price variations according to the mechanism given below:
FC (Rev)
= (Rs.4.3223 per kWh * FP(Rev) )/

(Rs.0.4588
Rs.23,247.07 per to
n/40,792 * CV(Rev)+
per kWh * Ft(Rev)) /Rs. 2,467.50 per ton
Where:
FC (Rev)
=Revised fuel cost component of Variable Charge on
CV(Rev)
Ft(Rev)
=Revised Calorific Value

=Revised Freight Charges adjusted for NHV-GHV factor
RFO.
= The new price of RFO per Metric Ton adjusted for
FP (Rev)
NHV/GHV factor of 1.05 as per the following mechanism;
BIER
i.
c.,
f
NEPRA
i AUTHORITY
r
..
..
1
1
.
1
1
.
.
%
-5,7,,
0
73
-<
3"
c
-2,
Page 32
of 36

No ,NEPRA/TRF-92/HUBCO-NAROWA
L-2008
Description
US$/Ton
Rs./Ton

(From Platts Oilgram Report) *
Black Premium (From
OGRA) C & F Price A
Crude Handling and Incidental charges (7.282% of C&F Price)**
Sub-Total B
OMC Margin (3.5% of Selling Price)
GST (15% on OMC
Margin) Sub Total E
price
* The supplier shall clearly indicate average Gross and Net calorific values of
Arabian
Gulf or any other source of which average reference fuel prices are used.
Fuel
supplier shall provide price adjustment mechanism due to variation in
calorific
value of the fuel being supplied to the IPP against the reference calorific
values.
** Fuel supplier shall provide item wise actual incidental charges prevailing at the
time
of receiving payment for fuel supply.
The fuel cost component will be adjusted after the commercial operation date,
at the time of revision in RFO price.
Adjustment on account of local inflation, foreign inflation, foreign exchange
rate variation, KIBOR variation and fuel price variation will be approved and
announced by the Authority for immediate application within seven working
days after receipt of HUBCO-Narowal request for adjustment in accordance
with the requisite indexation mechanism stipulated herein.
\11 ER
42-
NEPRA
S
.
AUTHORITY
Page 33
of 36

L-2008
For one time adjustment of relevant tariff components at COD according to

the mechanism laid down in this order, HUBCO-Narowal shall submit the
relevant documents to NEPRA within 30 days of COD for adjustment.
XII.
Terms and Conditions of Tariff:

i)
the
Capacity Charge Rs./kW/hour applicable to dependable capacity at

delivery point.
ii)
date
The tariff is applicable for a period of 25 years commencing from the
of the Commercial Operation.

iii)
The plant availability shall be 88%.
iv)
All new equipment will be installed and the plant will be of standard
configuration.
v)
Dispatch criterion will be based on the Energy Charge.
vi)
Internal consumption (including air-cooled condenser) has been
assumed
to be approximately 5.55 MW.
vii)
Scheduled Outage periods per annum shall be in accordance with the
2006
standardized PPA.
viii)
NTDC will be responsible for constructing the interconnection to the
grid.
ix)
All invoicing and payment terms are assumed to be in accordance with
the
2006 standardized PPA.
x)
Tolerance in Dispatch shall be in accordance with 2006 standardized
PPA.
xi)
If there is any change in any assumption that may lead to change in
the
tariff shall be referred to NEPRA for approval.
xii)
If IPP is required by the power purchaser to deliver power above 132
kV,
any additional cost to be incurred by the IPP shall be submitted to
NEPRA for adjustment. The adjustment request by the IPP shall be
duly verified by the power purchaser.
xiii)
the
100% of debt has been assumed to be local provided however that in

event HUBCO-Narowal uses a mix of foreign and local loan, the
future benefits of the lower interest rates shall be passed on to
the Power Purchaser.
xiv)
been
xv)
facility,
No corporate income tax and no minimum turnover tax have

assumed.
Working capital has been financed by a separate Working Capital
and is not included in the project cost.

The above tariff and terms and conditions be incorporated in the Power
Purchase Agreement between HUBCO-Narowal and CPPA.
NEPRA
AUTHORITY
Page 34
of 36
Annex-I
H
u
b
P
o
w
e
r
C
o
m
p
a
n
y
L
i
m
i
t
e
d
(
H
U
B
C
O
N
a
r
o
w
a
l
)
R
e
f
e
r
e
n
c
e
T
a
r
i
f
f
T
a
b
l
e
Capacity
15
4.7811
0.1760
0.2694
5.2265
16
4.7811
0.1760
0.2694
5.2265
Variable
17
4.7811
0.1760
0.2694
5.2265
Variable
18
O&M
O&M
Total
4.7811
0.1760
0.2694
5.2265
19
4.7811
0.1760
0.2694
5.2265
Foreign
20
4.7811
0.1760
0.2694
5.2265
Ener
gy Charge (Rs./kWh)
Year
Fuel
Fixed
Cost of
O&M
Fixed
O&M
Working
21
4.7811
0.1760
0.2694
5.2265
4.7811
0.1760
0.2694
5.2265
Insurance ROE
ROEDC
22
4.7811
0.1760
0.2694
5.2265
4.7811
0.1760
0.2694
5.2265
Local
Capital
23
4.7811
0.1760
0.2694
5.2265
4.7811
0.1760
0.2694
5.2265
24
4.7811
0.1760
0.2694
5.2265
0.2694
5.2265
0.1100
0.1106
0.0437
4.7811
0.1760
0.0325
0.0900
0.4348
4.7811
0.1760
0.2694
5.2265
0.2694
5.2265
0.1100
0.1106
0.0437
4.7811
0.1760
0.0325
0.0900
0.4348
4.7811
0.1760
0.2694
5.2265
0.2694
0.1760
5.2265
0.0325
0.0900
0.4348
0.1100
0.1106
0.0437
4.7811
0.1760
0.2694
5.2265
0.0325
0.0900
0.4348
0.1100
0.1106
0.0437
4.7811
0.1760
0.2694
5.2265
4.7811
0.1760
0.2694
5.2265
0.0325
0.0900
0.4348
0.1100
0.1106
0.0437
10
4.7811
0.1760
0.2694
5.2265
0.0325
0.0900
0.4348
0.1100
0.1106
0.0437
11
4.7811
0.1760
0.2694
5.2265
0.0325
0.0900
0.4348
0.1100
0.1106
0.0437
12
4.7811
0.1760
0.2694
5.2265
13
4.7811
0.1760
0.2694
5.2265
0.0325
0.0900
0.4348
0.1100
0.1106
0.0437
4.7811
0.1760
0.2694
5.2265
0.0325
0.0900
0.4348
0.1100
0.1106
0.0437
Local
1
14
25
Levelized Tariff
Foreign
Capac
0.0
ity 325
Charg
0.1
e 100
(Rs./k
0.0
W/Ho
900
ur)0.1
106
0.4
348
0.0
437
0.0
325
0.1
100
0.0
900
0.1
106
0.4
348
348
0.043
7
0.032
5
0.110
0
0.090
0
0.110
6
0.434
8
0.043
7
0.032
5
0.110
0
0.090
0
0.110
6
0.434
8
0.0 0.043
437 7
0.0 0.032
325 5
0.1 0.110
100 0
0.0 0.090
900 0
0.1 0.110
106 6
0.4 0.434
348 8
0.043
7
0.0
0.032
437
5
0.0 0.110
325 0
0.1 0.090
100 0
0.0 0.110
900 6
0.1 0.434
106 8
0.4 0.043
7
0.0325
0.1100
0.0900
0.1106
0.4348
0.0437
0.0325
0.1100
0.0900
0.1106
0.4348
0.0437
0.0325
0.1100
0.0900
0.1106
0.4348
0.0437
0.0325
0.1106
0.1100
0.4348
0.0900
0.0437
0.0325
0.1106
0.1100
0.4348
0.0900
0.0437
0.0325
0.1106
0.1100
0.4348
0.0900
0.0437
0.0325
0.1106
0.1 100
0.4348
0.0900
0.0437
0.0325
0.1106
0.1100
0.4348
0.0900
0.0437
@7.5%
0.0359
0.0325
0.1106
0.1100
0.4348
0.0900
0.0437
1.2401
Withhol-
Interest
ding Tax
Loan
Total
Repayment
Charges
0.3473
0.8927
0.0359
0.3965
0.8436
0.0359
0.4526
0.7875
0.0359
0.5166
0.7235
0.0359
0.5896
0.6504
0.0359
0.6730
0.5670
0.0359
0.7682
0.4719
0.0359
0.8769
0.3632
0.0359
1.0009
0.2392
0.0359
1.1424
0.0976
0.0359
0.0359
0.0359
0.0359
0.0359
0.0359
0.0359
0.0359
0.0359
0.0359
0.0359
-
0.0359
2.0977
2.0977
2.0977
2.0977
2.0977
2.0977
2.0977
2.0977
0.8576
0.8576
0.8576
0.8576
0.8576
0.8576
0.8576
0.8576
0.8576
0.8576
0.8576
0.8576
0.8576
0.8576
1.6970
0.0359
0.0359
0.4132
0.4263
*ER R6-
NEPRA
AUTHOR
ITY
at
60
%
PF
29
3
1.4
29
3
1.4
29
3
2.0977
0.8576
0.0359
0.0359
2.0977
C
ha
rg
e
Rs
.
pe
r
k
W
h
3
.
4
9
6
1
3
.
4
9
6
1
3
.
4
9
6
1
3
.
4
9
6
1
3
.
4
9
6
1
3
.
4
9
6
1
1.4
29
3
1.4
29
3
1.4
29
3
1.4
29
3
1.4
29
3
1.4
29
3
1.4
29
3
1.4
29
3
1.4
29
3
1.4
29
3
1.4
29
3
2.8
284
Tariff
Rs. per
kWh
kWh
0
per
8.7226
13.8143
8.7226
13.8143
8.7226
13.8143
8.7226
13.8143
8.7226
13.8143
8.7226
13.8143
8.7226
13.8143
8.7226
13.8143
8.7226
13.8143
8.7226
13.8143
6.6558
10.6805
3
.
4
9
6
1
6.6558
3
.
4
9
6
1
10.6805
3
.
4
9
6
1
6.6558
10.6805
6.6558
6.6558
10.6805
10.6805
6.6558
3
.
4
9
6
1
10.6805
1
.
4
2
9
3
6.6558
1
.
4
6.6558
10.6805
10.6805
6.6558
10.6805
6.6558
6.6558
10.6805
6.6558
10.6805
6.6558
10.6805
10.6805
6.6558
10.6805
6.6558
10.6805
8.0
549
12.80
19
ANN
EX II
Hub Power Company

Limited (HUBCO)
Debt Servicing
Schedule
L
oc
al
D
eb
t
Period
Principal
Mark-up
Repayment
Million Rs.
Million Rs.
Million Rs.
12,656.31
12,501.80
12,342.09
12,177.00
1
12,656.31
1,670.40
12,006.37
11,830.00
11,647.70
11,459.28
12,006.37
1,578.47
11,264.51
11,063.20
10,855.11
10,640.03
11,264.51
1,473.54
10,417.72
10,187.93
9,950.42
9,704.92
10,417.72
1,353.78
9,451.16
$154.51
425.57
159.71
420.37
165.08
415.00
170.63
409.45
649.94
1,640.72
317.80
9,188.88
271.11
308.98
8,917.77
280.22
299.86
8,637.55
289.65
290.44
5
1,103.26
176.37
403.71
182.30
397.78
188.43
391.65
194.77
385.32
741.86
299.39
280.70
8,048.51
309.45
270.63
7,739.06
201.31
378.77
208.08
372.00
215.08
365.00
222.31
357.77
846.79
229.79
350.30
237.51
342.57
245.50
334.58
253.76
326.33
966.56
262.29
9,451.16
1,217.07
8,347.90
319.86
260.23
7,419.21
330.61
249.47
6
1,259.31
8,347.90
1,061.03
7,088.59
341.73
238.35
6,746.86
353
.22
226
.86
6,3
93.
64
365
.10
214
.99
6,0
28.
55
377
.37
202.
71
7
7,088.5
9
1,437.4
2
882.91
9
5,6
51.
17
390
.06
190.
02
5,26
1.11
403
.18
176.
90
4,8
57.
93
416
.74
163.
35
4,4
41.
20
430
.75
149.
34
8
5,651.
10
17
679.61
4,010.45
445.23
134.85
3,565.22
460.20
119.88
3,105.01
475.68
104.41
2,629.34
491.67
88.41
4,010.45
1,872.78
447.55
2,137.67
508.20
71.88
1,629.46
525.29
54.79
Page 35 4-56
1,104.17
542.96
37.13
561.21
561.21
18.87
2,137.67
2,137.67
182.67
Balance
Service
(
.
)
Million Rs.
Rs.
12,501.80
$580.08
12,342.09
580.08
12,177.00
580.08
12,006.37
580.08
12,006.37
2,320.33
11,830.00
580.08
11,647.70
580.08
11,459.28
580.08
11,264.51
580.08
11,264.51
2,320.33
11,063.20
580.08
10,855.11
580.08
10,640.03
580.08
10,417.72
580.08
10,417.72
2,320.33
10,187.93
580.08
9,950.42
580.08
9,704.92
Debt
Millin
580.08
9,451.
16
580.08
9,451.
16
2,320.3
3
9,188.
88
580.08
8,917.
77
580.08
8,637.
55
580.08
8,347.
90
580.08
8,347.
90
2,320.3
3
8,048.5
1
580.08
7,739.
06
580.08
7,419.2
1
580.08
7,088.
59
580.08
7,088.
59
2,320.3
3
6,746.
86
580.08
6,393.
64
580.08
6,028.
55
580.08
5,651.
17
580.08
5,651.
17
2,320.3
3
5,261.1
1
580.08
4,857.
93
580.08
4,441.
20
580.08
4,010.45
580.08
4,010.45
2,320.33
3,565.22
580.08
3,105.01
580.08
2,629.34
580.08
2,137.67
580.08
2,137.67
2,320.33
1,629.46
580.08
1,104.17
580.08
561.21
580.08
0.00
580.08
0.00
2,320.33
Annual
Principal
Repayment
Rs./kW/ hr.
0.8769
0.3473
1.0009
Annual
Annual
Debt
Interest
Servicin
g
Rs./kW/
hr.
Rs./kW/
hr.
0.6504
1.2401
0.5670
1.2401
0.3965
1.1424
0.892
7
1.2401
0.4719
0.4526
1.2401
0.843
6
1.240
1
0.5166
0.3632
1.2401
0.787
5
1.240
1
0.5896
0.2392
1.2401
0.6730
0.723
5
1.240
1
0.7682
0.0976
1.2401
NEPRA
UJ
AlJTHORITY
Pn (le -66
of 36

TRF-92 Determination of Tariff For HUBCO-dated 23-05-2008

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TRF-92 Determination of Tariff For HUBCO-dated 23-05-2008

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National Electric Power Regulatory Authority

Islamic Republic of Pakistan

Ph: 9207200, 9205225 Fax : 9210215

Subject: Determination of the Authority in the Matter of Generation Tariff for

ORDER OF THE AUTHORITY

US$ /PKR & US CPI

Total Capacity Charge

US$ /PKR & US CPI

i) Component wise proposed tariff for operation on RFO is indicated at

ii) Debt Servicing Schedule is attached as Annex-II.

The following adjustments /indexations shall be applicable to reference tariff;

Adjustment in EPC Cost (One Time)

Respective Weighted Average PKR/EURO and PKR/US$ parity based

Insurance Adjustment Mechanism for EPC Cost Variation

Revised insurance component of tariff

= Reference EPC in PKR.

Adjusted EPC in PKR

Return on Equity Adjustment Mechanism for EPC Cost Variation

Revised reference Return on Equity component of tariff in PKR

Reference Return on Equity component of tariff as per

Reference Equity in PKR (Rs. 5,424.13 million)

Revised amount of Equity in PKR

ROEDC Adjustment Mechanism for EPC Cost Variation

EDC (Rev) Where:

Revised Return on Equity during Construction component of

Reference Return on Equity During Construction

Reference Equity During Construction in PKR

Revised Equity During Construction in PKR

Debt Servicing Adjustment Mechanism for EPC Cost Variation

DS (Ref) / Debt (Ref)* Debt (Rev)

Revised Debt Servicing component of tariff

Reference amount of Debt in PKR (Rs. 12,656.31 million)

Revised amount of Debt in PKR

Adjustment due to Variation in Net Capacity

Note: Above formula shall be applicable to all the individual relevant

= Adjusted relevant Capacity Charge components of tariff

Reference relevant Capacity Charge components of tariff

Ambient Air Temperature

Adjustment in Insurance as per actual

AIC / (1.35 % x US$3.138 million) * AP

= Adjusted Insurance Component (Rs. kW/hr) as per IDC Test

= Actual Premium subject to maximum of 1.35% of the adjusted

Adjustment Based on Actual Interest During Construction

Adjustment due to Custom Duties & Taxes

reference to the estimated figures of US$ 10.547 million. The impact of

Adjustment for variation in Rupee/Dollar parity

Relevant reference tariff components shall be adjusted at COD on account of

Adjustment in Return on Equity (ROE)

ER(Rev)/ 65.95 "Where;

Adjustment in Return on Equity during Construction (ROEDC)

The revised TT & OD selling rate of US dollar as notified by the

Adjustment of Withholding Tax

The revised TT&OD selling rate of US dollar as notified by the

National Bank of Pakistan

Adjusted Reference Equity at COD

ROEDC(Reo= Reference Return on Equity During Construction

Indexation applicable to O&M

Rs. 0.0325/kW/Hour * WPI (REV) /127.5

the revised applicable Fixed O&M Local Component of

the revised applicable Fixed O&M Foreign Component of

Exchange Rate variations

the revised US CPI (All Urban)

the Revised TT & OD selling rate of US dollar as