Investment Opportunities in Hydro Power Projects in Nepal through Arun Valley Hydro Power GroupGuru Prasad Neupane Chairman Arun Valley Hydro Power Group

Company History

Arun Valley Group of CompaniesArun Valley Hydropower Company Ltd. Ridi Hydropower Company Ltd. Arun Kabeli Power Limited Rairang Hydropower Company Ltd. Authorized/Issued Issued Capital Paid up Capital Market Capitalized : $ 303.71 Million : $ 168.41 Million : $ 69.14 Million : $ 147.76 Million

Company HistoryShareholding Structure : All companies are Promoted by Arun Valley Hydropower Company Ltd.

Consultant :

South Asia Engineering (P.) Ltd.Web : www.sae.com.np

Design Groups India (P.) Ltd.Web : www.designgroup.in

Project Construction ExperiencePiluwakhola Hydropower Project = 3.0 MW

Ridi Hydropower projectRairang Hydropower project

= 2.4 MW= 0.5 MW

Total

= 5.9 MW

Revenue Generation for the Projects (Annual) Piluwakhola Ridi Khola Rairang Khola Total = 74.5 Million = 65.0 Million = 12.0 Million = 120.0 Million

PROJECT LOCATION

Ridikhola Project (2.4MW)

Rairang khola Project(500 Kw)

Piluwa Khola HEP(3MW)5

Projects Under Construction Kabeli B-1 Hydropower Project Iwa Khola Hydropower Project = 25.0 MW = 10.0 MW

Phamekhola Hydropower Project Upper Piluwakhola Hydropower Total

= 3.5 MW= 9.6 MW = 48.1 MW

Projects Under Construction

Kabeli B1 HEP (25MW)

Iwakhola HEP (9.9MW)

Upper Piluwa HEP (9.9 MW) Pheme Khola HEP (3.5 MW)7

Projects with our Associated Companies Trisuli Galchhi Hydropower Project Upper Khimti I Hydropower Project = 75.0 MW = 12.0 MW

Upper Khimti II

= 7.0 MW

Total = 94.0 MW Khimti Garzang 132 kV TL Project of 30 KM Note: We are Shareholders

Investment PlanningList of Projects1 Kabeli B-1 HEP 2 Iwa Khola HEP 3 Upper Khimti HEP 4 Upper Khimti-II HEP Capacity Total $ (MW) million 25 10 12 7 41.18 17.65 21.18 12.35 Equity (20%) 8.24 3.53 4.24 2.47 Debt (80%) 32.94 14.12 16.94 9.88

5 Trisuli Galchhi HEP Khimti-Garzang 132 kV 6 T/L ProjectTotal

7530 KM 129

167.6518.24 278.24

33.533.65 55.65

134.1214.59 222.59

Construction PeriodList of Projects Kabeli B-1 Hydropower Project Iwa Khola Hydropower Project Upper Khimti Hydropower Project Upper Khimti-II Hydropower Project Capacity (MW) 25 Construction Period, years 3.5

1012 7 75 30 KM

3.53 3 4 2

Trisuli Galchhi Hydropower ProjectKhimti-Garzang 132 kV T/L Project

Loan Repayment Plan (EMI)

Investment Period 2 to 5 YearsExpected Interest Rate = 5 to 8 percent Repayment = Quarterly Installment (EMI Model)

Project as collateral

Is the project replicable? How?

Non competitive business, Possibility of cascade project, Present load shedding situation Having export possibility, Big market

Social, Environmental and Financial impact of the company?

All positive

Benefits to the Investors Return on Equity Investment shall be greater than 20% Income Tax Holiday (10 Year full and 5 year 50%) Only one percent import duty Non-Immigrant Visa to the investors Investment can be made up to 100% of the cost.

Financial AnalysisUnit Energy Cost Calculation Can (Annuity) 1,85,569 Average O & M 39,838 Pins 9,800 Hour = 24*365 8,760 PF 0.6596 Unit Energy Cost = Can+(O&M)/Pins*8760*PF = 3.98 Average Selling Price Income/kWh 7.10 3.12

Thank YouFor further information please do contact

Guru Prasad Neupane Chairman Arun Valley Hydro Power Groupswww.arunhydro.com.np Mobile phone# 9851033646 guruneupane2000@gmail.com