UPPER KHORUNGA KHOLA SMALL HYDROPOWER

PROJECT
(7.5 MW)
TERHATHUM

HYDRO MECHANICAL WORKS (BILL NO 02)

October 2018

Submitted To:

MACHHAPUCHCHHRE BANK
AND
TERHATHUM POWER COMPANY PVT. LTD
Table of Contents
1 Summary of HM Cost ..................................................................................................... 1

2 Background................................................................................................................... 2

3 Verification Period ......................................................................................................... 2

4 Assignment ................................................................................................................... 2

5 Scope of work ............................................................................................................... 2

5.1 Basis of Bill Verification............................................................................................ 3

5.2 Limitations ............................................................................................................. 3

5.3 Expenditure Summary ............................................................................................. 3

6 Findings on basis of Verification ...................................................................................... 3

6.1 Headrace Pipes ....................................................................................................... 3

6.2 Pipe (Bends) Erection Support.................................................................................. 4

6.3 Stiffner/Bend Ring................................................................................................... 4

6.4 Trashracks and Accessories...................................................................................... 4

6.5 Gate and Accessories .............................................................................................. 5

6.6 Stoplog and Accessories .......................................................................................... 5

7 CONCLUSION ................................................................................................................ 6

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1 Summary of HM Cost
Table 1:HM Works Cost Summary

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 Upper Khorunga Khola Small Hydropower Project IPC No 2

2 Background
Upper Khorunga Khola Small Hydropower Project (UKSHP) is a run-of-river type of project located
in just upstream of confluence of Tanmaya and Khorunga. The Terathum company is developing
this project with an installed capacity of 7.5 MW with 282.39 m net head and 3.15 m3/s design
discharge at Q 40 % discharge.

Upper Khorunga khola Hydropower Project is located in “Menchayam” rural municipality of

“Terathum” district, Eastern Development Region, Nepal. The project area is located between
longitudes 87°31’20’’ to 87°31’30’’ and latitudes 27°11’24’’ to 27°13’59’’. The project components
are located between elevations of 1125 m to 1405 m.

The project site is accessible from Jirijhimti in Mid-Hills highway which is about 66 km far from
Dhankuta.The access road up to the headworks site of this project is completed while a road
construction is required within project alignment. UKSHP is under construction and its required
commercial operation date (RCOD) is in 17th December 2019. The institutional arrangement to
accomplish the project on time is as follows:

• The Developer: Terathum Power Company Pvt. Ltd.

• The Contractor (Hydro-Mechanical): Shree Bhagat Construction Pvt. Ltd.

3 Verification Period
Period from Chaitra 2074 to Ashwin 2075

4 Assignment
Units Engineering Consultancy Pvt Limited (UECPL) carried out the verification of Second Running
Bill of HM Works of Upper Khorunga Khola Small Hydropower Project submitted by Terathum Power
Company Pvt. Ltd. for the period up to 10th September 2018.

5 Scope of work
The objective of this work is to conduct verification of the Running Bills of Hydromechanical Works
of UKSHP submitted by Terathum Power Company Pvt. Ltd based on the running bills, contract
documents, detailed project reports, other related supporting documents and site visits.

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 Upper Khorunga Khola Small Hydropower Project IPC No 2

5.1 Basis of Bill Verification

 Contract agreement between Machhapuchre Bank Ltd, Nepal Bangladesh Bank
Limited, Janata Bank Nepal Limited, Terathum Power Company Pvt. Ltd. and Units
Engineering Consultancy
 Interim Payment Certificate-02
 Technical Bill of Quantities (BoQ)
 Contract Agreement, Hydromechanical – Volume I
 General and Technical Specifications, Hydromechanical – Volume II
 Financial closure documents

5.2 Limitations
The verifications were carried out based on the documents provided by the Client/Bank. Due to the
nature of the work, there is every possibility of errors going unnoticed misstatements remaining
undiscovered. Errors and mis statements discovered at later date can be corrected and adjusted in
the next running bill.

5.3 Expenditure Summary

There has been a recommendation of NRs. 16,664,990.52 out of claimed NRs.16,843,375.04 in the
total of second running bill part I as project expenses in HM Works. VAT and Retention money has
not also been included in this total amount.

6 Findings on basis of Verification

6.1 Headrace Pipes
There has been a recommendation of NRs 12,039,443.43 under the heading “Headrace Pipes”. The
applied amount includes fabrication at workshop, delivery to site and installation of pipes and is
tabulated as below:

Amount Claimed Amount Amount

S.N. Description
(02 Bill) Certified Rs Uncertified

1 Headrace Pipes 12,039,443.43 12,039,443.43 0

Total 12,039,443.43 12,039,443.43 0

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 Upper Khorunga Khola Small Hydropower Project IPC No 2

6.2 Pipe (Bends) Erection Support

There has been a recommendation of NRs 16,551.66 under the heading “Pipe (Bends) Erection
Support”. The applied amount includes installation of bend erection support. The total amount is
tabulated as below:

Amount Claimed Amount Amount

No. Description
(02 Bill) Certified Rs Uncertified

Pipe (Bends) Erection 0

1 16,551.66 16,551.66
Support

Total 16,551.66 16,551.66 0

6.3 Stiffener/Bend Ring

There has been a recommendation of NRs 3,593,342.53 under the heading “Stiffener/Bend Ring”.
The applied amount includes Fabrication and Installation of Stiffener/Bend Ring. The details of the
verified amount are tabulated below:

Amount Claimed Amount Amount

No. Description
(02 Bill) Certified Rs Uncertified

1 Stiffener/Bend Ring 3,593,342.53 3,593,342.53 0

Total 3,593,342.53 3,593,342.53 0

6.4 Trashracks and Accessories

There has been a recommendation of NRs 48,818.98 under the heading “Trashracks and
Accessories”. The applied amount includes Fabrication at workshop, delivery to site and installation
or trashracks. The total amount is tabulated as below:

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 Upper Khorunga Khola Small Hydropower Project IPC No 2

Amount Claimed Amount Amount

No. Description
(02 Bill) Certified Rs Uncertified

Trashracks and 0
1 48,818.98 48,818.98
Accessories

Total 48,818.98 48,818.98 0

6.5 Gate and Accessories

There has been a recommendation of NRs 558,713.92 under the heading “Gate and Accessories”.
The applied amount includes Fabrication & Erection of Gate and Accessories. The total amount is
tabulated as below:

Amount Claimed Amount Amount

No. Description
(02 Bill) Certified Rs Uncertified

1 Gate and Accessories 558,713.92 558,713.92 0

Total 558,713.92 558,713.92 0

6.6 Stoplog and Accessories

There has been a recommendation of NRs 408,120.00 under the heading “Stoplog and Accessories”.
The remaining amount was uncertified because the current amount exceeds the amount in the
contract BoQ. The total amount is tabulated as below:

Amount Claimed Amount Certified Amount

No. Description
(02 Bill) Rs Uncertified

1 Stoplog and Accessories 586,504.53 408,120.00 178,384.53

Total 586,504.53 408,120.00 178,384.53

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 Upper Khorunga Khola Small Hydropower Project IPC No 2

7 CONCLUSION
The Consultancy has performed the verification of the bills submitted by the company and has made
the following recommendations.

1. The developer (Terhathum Power Company) has claimed the total expenditure of Rs.
16,843,375.04 in the running bill 02 for the HM work.
2. The Consultancy has recommended a total expenditure of Rs. 16,664,990.52 in the total bill
02 as HM works expenses.

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PHOTOGRAPHS

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Figure 1:Bellmouth Installed at site.

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Figure 2:Rolling Machine for pipe fabrication.

Figure 3:Fabricated Headrace Pipe at site.