Economic/Financial Analysia

Economic and financial analysis involves carrying out viability of the project by considering requirements in integrated power system. Total project cost which includes entire cost such as costs for civil construction works, hydro-mechanical and electro-mechanical works, transmission line, environment mitigation, operation and maintenance, interest during construction are the basis for economic and financial analysis. The parameters used for analysis are net present value, B/C ratio, rate of return (EIRR/FIRR). Furthermore, SHEPL also carries out sensitivity analysis against price escalation, interest rate, or combination of both or any other factors which is deemed necessary. SHEPL has its own computer program for calculation of these parameters.