MIRA INFORM REPORT

Report Date :

24.12.2011

IDENTIFICATION DETAILS

Name :	HIMAL HYDRO AND GENERAL CONSTRUCTION LTD
Registered Office :	Chhauni Housing Complex, Bahiti, Kathmandu
Country :	Nepal
Date of Incorporation :	03.05.1978
Legal Form :	Public Independent Company
Line of Business :	Subject is engaged in undertakes work in the field of hydropower, tunnelling, water and waste water management as well as general construction work
No. of Employees :	500 persons

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Nepal	b1	b1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name & address

Himal Hydro and General Construction Ltd

Location:-

Head office

Chhauni Housing Complex

Bahiti

Kathmandu,

Nepal

Location Owned

Tel: (00 977) (1) 403 8030

Fax: (00 977 (1) 403 8026

E-Mail : mail@himalhydro.com.np

Web : www.himalhydro.com.np

Postal address:
Post Box No. 12268
Kathmandu
Nepal

Synthesis

Employees: 500

Company Type: Public Independent

Incorporation Date: 03.05.1978

Reporting Currency: Nepalese Rupee

Total Assets: NA

Business Description

Undertakes work in the field of hydropower, tunnelling, water and waste water management as well as general construction work. ISO 9001:2008

Industry

Industry Construction Services

ANZSIC 2006: 3109 - Other Heavy and Civil Engineering Construction

NACE 2002: 4521 - General construction of buildings and civil engineering works

NAICS 2002: 237990 - Other Heavy and Civil Engineering Construction

UK SIC 2003: 45213 - Construction of civil engineering constructions

US SIC 1987: 1629 - Heavy Construction, Not Elsewhere Classified

Key Executives

Name	Title
P. Srestha	Director
S. Sharma	Director
S K Shrestha	Director
D B Singh	Director
M P Sharma	Director
David Mcconkey	Director

1 - Profit & Loss Item Exchange Rate: USD 1 = NPR

2 - Balance Sheet Item Exchange Rate: USD 1 = NPR

Information Parted By

Name : Mr. Phub Dorji Tamang

Designation : Finance Manager

Date : 23.12.2011

Corporate Overview

Location:-

Head Office

Chhauni Housing Complex

Bahiti

Kathmandu, Nepal

Tel: (00 977) (1) 403 8030

Fax: (00 977 (1) 403 8026

E-Mail : mail@himalhydro.com.np

Web www.himalhydro.com.np

Postal address:
Post Box No. 12268
Kathmandu
Nepal

Assets NPR(mil): NA

Employees: 500

Industry: Construction Services

Incorporation Date: 03.05.1978

Company Type: Public Independent

Quoted Status: Not Quoted

Contents

· Industry Codes

· Business Description

Industry Codes

ANZSIC 2006 Codes:

3101 - Road and Bridge Construction

3109 - Other Heavy and Civil Engineering Construction

NACE 2002 Codes:

4521 - General construction of buildings and civil engineering works

NAICS 2002 Codes:

237130 - Power and Communication Line and Related Structures Construction

237990 - Other Heavy and Civil Engineering Construction

237310 - Highway, Street, and Bridge Construction

US SIC 1987:

1622 - Bridge, Tunnel, and Elevated Highway Construction

1629 - Heavy Construction, Not Elsewhere Classified

1623 - Water, Sewer, Pipeline, and Communications and Power Line Construction

UK SIC 2003:

45213 - Construction of civil engineering constructions

Business Description

Undertakes work in the field of hydropower, tunnelling, water and waste water management as well as general construction work. ISO 9001:2008

Trading Terms

Purchasing Terms Cash, Credit (30 days)

Selling Terms Cash, Credit (30 days)

Types of customers

Corporate

Bankers

· Standard Chartered Bank

Kathmandu, Nepal

Auditors

M. Amatya & company

Chartered Accountants

Shareholder Details

Name of shareholder Percentage

Government of Nepal (Ministry of Energy) (11%)

United Mission to Nepal (11%)

Nepal Jalabidyut Prabardhan tatha Bikas Limited (78%)

Financial Data

(Amt. In Nepalese Rupee)

Particulars	31.03.2011	31.03.2010
Sales Turnover	22 Crores	19 Crores

Executive report

Board of Directors

Name	Title
P. Srestha	Director
S. Sharma	Director
S K Shrestha	Director
D B Singh	Director
M P Sharma	Director
David Mcconkey	Director

Executives

Name	Title	Function
Phub Dorji Tamang	Manager of Finance	Finance Executive

Additional information

Current Projects

· Mai Hydropower Project (22 MW)

· Andhikhola Hydropower Project (Upgrading 5.1 to 9.4 MW)

· Tila-1 and Tila-2 Hydropower Project – Drifting and Core Drilling

· Babai Irrigation Project

· Bhairabkunda Small Hydroelectric Project (3.0 MW)

· Upper Seti Storage Hydroelectric Project (127 MW) – Test Adits

· Upper Karnali Hydroelectric Project (300 MW) – Exploratory Drift

· Dhanusha – Mahottari Transmission Line (33, 11, 0.4 kV)

· Maintenance of 132 kV Lines of Upper Bhotekoshi Hydel Project (36 MW)

· Khimti Dhalkebar 220 kV Transmission Line

· Our International Valued Clients

· British Columbia Hydro International (BCHI), Vancouver, Canada

· British Embassy in Kathmandu, Nepal

· China International Water & Electric Corp. (CWE), China

· Dywidag-Dragados-CWE JV (DDC JV)

· Dr. Christian F Uhlir, Viena, Austria

· GMR Group, India

· Hyundai Engineering & Construction Co. Ltd., Seoul, Korea

· Impregilo S.p.A., Italy

· Kalpataru Power Transmission Limited, Gujarat, India

· Lahmeyer International GmbH, Germany

· Larsen & Toubro Limited (L&T), India (Engineering Construction & Contracts Division)

· MT Højgaard, Denmark

· NCC Tunnelling (formerly Statkraft Anlegg AS), Norway

· Nippon Koei Co. Ltd., Tokyo, Japan

· Norconsult AS, Norway

· Royal Norwegian Embassy in Kathmandu, Nepal

· Siri Ram Syal & Sons Constructions Pvt Ltd., New Delhi, India

· Wartsila Diesel, Finland

National Valued Clients

· Anandaban Leprosy Hospital, Lalitpur

· Annapurna Renewable Energy Pvt Ltd, Kathmandu

· Bagmati Watershed Project, Kathmandu

· Bhairabkunda Hydropower Pvt. Ltd.

· Bhote Koshi Power Company

· Butwal Plywood Factory (Pvt) Ltd., Butwal

· Butwal Power Company (BPC) Limited, Kathmandu

· Chilime Hydropower Company Limited

· Department of Hydrology and Meteorology, Government of Nepal

· Department of Water Supply and Sanitation, Government of Nepal

· East Nepal Development Endeavor Pvt Ltd, Kathmandu

· GMR Upper Karnali Hydropower Ltd.

· Himal Dolakha Hydropower Company Ltd, Lalitpur

· Himal Power Limited, Lalitpur

· Himalayan Power Consultants, Kathmandu

· Himtal Hydropower Company Pvt Ltd

· Hydro Lab Pvt. Ltd, Lalitpur

· Irrigation Department, Government of Nepal

· Joint Venture Arun 3 Consulting Services

· Khudi Hydro Power Ltd

· Lamjung Electricity Development Company, Lamjung

· Lumbini Sugar Mills Ltd., Sunwal

· Manakamana Darshan (P.) Ltd., Kathmandu

· Marsyangdi Hydro-electric Development Board, Government of Nepal

· Nepal Electricity Authority, Kathmandu

· Nepal Engineers’ Association, Lalitpur

· Nepal Hydro & Electric Limited, Kathmandu

· Nepal Jalbidyut Prabardan Tatha Bikas Ltd., Lalitpur

· Patan Hospital, Lalitpur

· Rairang Hydropower Development Company (Pvt) Ltd., Lalitpur

· Sanima Hydro Power (P) Ltd

· S.C. Power Company Pvt. Ltd

· Sapta Gandaki Project Survey Team, Dica

· Shiva Shree Hydropower Pvt Ltd, Kathmandu

· Small Hydel Development Board, Government of Nepal

· Tila Karnali Hydroelectric Co. Pvt. Ltd.

· Tansen Mission Hospital, Tansen, Palpa

· United Mission to Nepal

· Upper Bhotekoshi Hydropower Company Pvt Ltd., Sindhupalchowk, Nepal

Projects

Current Projects

· Mai Hydropower Project (22 MW)

· Andhikhola Hydropower Project (Upgrading 5.1 to 9.4 MW))

· Tila-1 and Tila-2 Hydropower Project – Drifting and Core Drilling

· Babai Irrigation Project

· Bhairabkunda Small Hydroelectric Project (3.0 MW)

· Upper Seti Storage Hydroelectric Project (127 MW) – Test Adits

· Upper Karnali Hydroelectric Project (300 MW) – Exploratory Drift

· Survey and Feasibility Study of Super Madi Hydroelectric Project (44 MW), Kaski, Nepal

· Survey and Feasibility Study of Middle Modi Hydroelectric Project (15 MW), Kaski, Nepal

· Dhanusha – Mahottari Transmission Line (33, 11, 0.4 kV)

· Maintenance of 132 kV Lines of Upper Bhotekoshi Hydel Project (36 MW)

· Khimti Dhalkebar 220 kV Transmission Line

Completed Projects

· Hydropower Projects and Tunnelling:

· Arnaya Khola Dam, Ramnagar

· Arun III Hydro-Electric Project – Test Adits

· Andhikhola Hydel & Rural Electrification Project (5.1 MW)

· Baglung Small Hydel Project (0.2 MW), Baglung

· Doti Hydel Project, Doti – Tunnel

· Jhimruk Hydro-Electric & Rural Electrification Project (12MW)

· Karnali Multipurpose Project – Test Adits

· Khimti I Hydropower Project (60 MW)

· Khudi Hydropower Project (4 MW), Lamjung

· Khudi Hydropower Project Civil Repair Works (Damaged by the Flood)

· Marsyangdi Hydro Electric Project – Test Adits

· Melamchi Diversion Scheme (Bankable Feasibility Study – Likhu Adit)

· Middle Marsyangdi Hydroelectric Project (Parts of the works), Lamjung

· Modikhola Hydropower Project (14 MW)

· Sapta Gandaki Hydro Electric Project -Test Adits

· Sunkoshi Small Hydropower Project (2.6 MW)

· Surnaya Gadh Irrigation Project – Tunnel

· Syangja Small Hydel Project (80 KW), Syangja

· Tatopani Small Hydel Project (2 MW)

· Tinau Hydropower Project (1 MW), Butwal

· Tinau Hydropower Project (1 MW), Butwal – Repair Works

· Upper Marsyangdi II Hydroelectric Project – Exploratory Drift

· Upper Tamakoshi Hydro Electric Project – Access Tunnel to Powerhouse

· Upper Tamakoshi Hydro Electric Exploration Tunnel Project

· Survey, Review and Design Works for Various Hydropower Projects

Water & Wastewater Management:

· Operation of Hetauda Drainage and Wastewater Management Project, Hetauda, Makawanpur

· Hetauda Drainage and Wastewater Management Project, Hetauda

· Water Supply Projects

· Bandipur Water Supply and Sanitation Project, Tanahu

· Beni Water Supply and Sanitation Project, Myagdi

· Bijuwar Water Supply and Sanitation Project, Pyuthan

Irrigation:

· Praganna Kulo Irrigation Project, Deukhuri, Dang

General Construction:

· Anandaban Leprosy Hospital

· Biratnagar Multifuel Power Plant (13 MW)

· Butwal Plywood Factory, Butwal – Construction of Office

· Hydro Lab (P.) Ltd – Office Building

· Jiri Substation Civil works33/11 KV, 1.5 MVA , Dolakha

· Mental Hospital, Kathmandu

· Nepal Hydro & Electric – Office & Workshop Buildings, Butwal

· Nepal Hydro & Electric – Heavy Structural Workshop Building, Butwal

· Patan Hospital Extension Project, Lalitpur

· Patan Hospital Staff Quarters, Lalitpur

· Road and Bridges (Nayapul – Kirne Road)

· Tansen Hospital Staff Quarters, Tansen, Palpa

· Tsho Rolpa GLOF Risk Reduction Project

Transmission Line:

· Andhikhola Hydel & Rural Electrification Project, Syangja (66, 33, 1, 0.4 kV)

· Chilime 132 KV Transmission Line

· Jhimruk Hydro Electric & Rural Electrification Project, Pyuthan Pyuthan (132, 33, 0.4 kV)

· Khimti I Hydropower Project, Dolakha (33 kV)

· Modikhola Hydroelectric Project, Patichhaur, Parvat (132 kV)

· Nepal India Power Exchange, Detail Survey and Design of Dhalkebar-Bhittamore 132 KV Transmission Line

· Rerouting, Erection and Stringing of Kusaha-Kataiya 132 kV TL

· Rerouting of Gajuri 132 KV TL (Section T# 128 – 130)

· Sunkoshi Lamosangu 33 KV Transmission Line

Ropeway:

· Manakamana Cable Car Project, Kurintar, Chitwan

· Material Ropeway – JHEREP, Pyuthan

· Material/Passenger Ropeway – KHP – I, Dolakha

· Design Study of Various Ropeways

Services

Area of Specialization

· Hydropower

· Tunnelling

· Transmission Line

Other Services

· Ropeway

· Water & Wastewater Management

· Road & Bridge

· Building

· Special Construction

· Survey & Design

· Equipment Rental & Maintenance

Hydropower Development

Optimum realisation of natural resources is a key to the economic growth of the country.

Nepal has huge potential for hydropower development and there is a great need of power as the country makes progress towards industrialization. Moreover, a vast market in the neighboring country makes it possible to export the surplus Nepal can generate. But funding hydropower projects is a major obstacle.

Experience shows that until and unless local resource and local capability is used to the fullest extent we can never get affordable power nor will we be able to export it to our neighbors. Given the opportunity, a company like Subject could play a major role in the development of affordable hydropower in Nepal. Subject has repeatedly proven it can successfully complete major and daring construction.

In last 30 years, Subject has pioneered and led the hydropower construction sector in Nepal. With this experience, Subject looks forward to develop hydropower projects. Subject is going to emerge as a Hydropower Developer in recent future. Subject has obtained Survey licenses for Electricity Generation of some Hydropower Projects and their feasibility studies are being carried out. One of the Hydropower Projects under feasibility study is Super Madi Hydroelectric Project, which will have 44 MW installed capacity. Subject is also actively involved in the development process of Middle Modi Hydroelectric Project of 15 MW installed capacity.

Any investment from Subject will generally be through our involvement in the construction of the project. Subject’s contribution could be in the form of cash investment, deferred payment for the part of the work done or conversion of part of the construction to shares.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.72
UK Pound	1	Rs.82.71
Euro	1	Rs.68.90

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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