| Name of the Project |
|
Kathmandu-Kulekhani-Hetauda Tunnel Highway (KKHT) Highway |
| |
|
|
| Estimated Project Cost |
|
Rs 34.876 Billion (excluding IDC) |
| |
|
|
| Debt/Equity Ratio |
|
80:20 |
| |
|
|
| Equity |
|
Rs 7 Billion |
| |
|
|
| Debt Financing |
|
Rs 27.901 Billion (excluding IDC and cost of raising debt) |
| |
|
|
| Promoter shares |
|
60% of Equity |
| |
|
|
| Initial Public Offering (IPO) |
|
40% of Equity |
| |
|
|
| Shares from Promoters/Bartering |
|
Rs 4.815 Billion (60% of Equity Capital including preferred dividends) |
| |
|
|
| IPO |
|
Rs 2.79 Billion |
| |
|
|
| Dividend Payout Year |
|
7 Years after operation |
| |
|
|
| Debt Repayment Period |
|
17 Years (with moratorium period for first 2 years) |
| |
|
|
| Interest on Debt |
|
8.50% |
| |
|
|
| Payback Period |
|
9.69 years after operation |
| |
|
|
| Internal Rate of Return (IRR) |
|
16.69% approx. |
| |
|
|
| Equity IRR |
|
22.81% |
| |
|
|
| NPV |
|
Rs. 21.29 Billion |
| |
|
|
| Simple payback period |
|
12.94 years |
| |
|
|
| Discounted payback period |
|
18.04 years |
| |
|
|
| Simple payback period with construction |
|
9.44 years |
| |
|
|
| Discounted payback period with construction |
|
14.54 years |
| |
|
|
| Depreciation |
|
Over the life of the operation of the project |
| |
|
|
| Discount Rate |
|
WACC at Cost of Debt @ 8.5% and Equity @ 14.77% |
| |
|
|
| Levy Custom Duty |
|
1% on import of Machinery/Equipment needed for the project |
| |
|
|
| Income Tax |
|
12% (i.e. 40% rebate on existing 20% tax rate) |
| |
|
|
| Inflation Rate on Local Currency |
|
7% (Assumed) |
| |
|
|
| Share Denominator |
|
Rs. 100 |
| |
|
|
| Total Number of Initial Promoters |
|
159 |
