FMA analysis

This project is for preparation of feasibility reports & tender documents for three modernization of existing hydropower plants (HPP), construction of three new run-of-river small-sized HPPs, and provide capacity development for mini/micro HPPs development. The six sub-projects are selected based on age of plants, technical and economic viability, and prioritized in the national investment program. The project will contribute to increasing renewable energy and access to reliable energy, and building capacity for sustainable clean energy development. Broad Scope of Financial Management Expert  Conduct economic and financial analysis for each sub-project and for the total project – Economic & Financial Report  Prepare financial structure, assess and propose fund flow and disbursement mechanism –Project fund and disbursement flow chart  Conduct financial analysis of executing and implementing agencies –FMA Report Guidelines to be used ADB. 2005. Guidelines on the Financial Management and Analysis of Projects ADB. 2015. Technical Guidance Note on Financial Management Assessment ADB. 2009. Financial Due Diligence: A Methodology Note ADB. 2014. Preparing and Presenting Cost Estimates for Projects and Programs Financed by the Asian Development Bank Financial Management Expert: Detailed Scope of Work i) Prepare the Executing Agency (EA) and Implementing agency’s (IA) financial management assessment, including a) Evaluate results of financial management assessments conducted by ADS or/and other agencies; b) Assess capacity for planning and budgeting, management and financial accounting, reporting, auditing, internal controls, and information systems; c) Develop disbursement and funds-flow arrangements; and d) Conclude on the financial management risk rating, and guidelines and technical guidance note on financial management assessment. ii) Assess and recommend the financial management reforms and tariff needed for advancing the commercial operation of the subprojects. iii) Based on the financial management assessment, recommend a capacity development program to strengthen the EA/IA's financial management, and mitigate other risks identified in the analysis. iv) Prepare an entity financial analysis by building a financial forecasting model. Outputs should comprise income statements, balance sheets, cash flow statements, and analysis of key financial ratios. Key risks should be identified, and relevant sensitivity analysis should be modeled and conducted. Future tariff levels needed to ensure project sustainability should be identified and selected as assurances or covenants following ADB guidelines and methodology. v) Prepare project cost estimates following ADB methodology and guidelines, and in close coordination with technical experts of the team. vi) Conduct financial valuation (financial cost-benefit analyses) using FIRR and WACC computations in order to evaluate the financial viability of the project following ADB's guidelines. vii) Identify key risks to the project's financial viability, and conduct relevant sensitivity analysis. Where significant risks are identified, propose relevant financial performance indicators to be incorporated in the project's financial covenants. viii) Develop the details of financial reporting, auditing and public disclosure arrangements for the project in close coordination with the EA/IA based on ADB's requirements. ix) Prepare relevant reports and estimates backed with detailed justification with source information and models. These include (a) cost estimates and fund flow analysis based on ADB's template for project administration manual, (b) financial analysis, (c) financial management assessment, and (d) financial projection and analysis. x) Assist ADS missions, and provide inputs as required. Financial Management Expert: Tentative Deliverables 1. Financial Management Assessment (FMA) Due to organizational change and assets transfer from Company X to Company Y you would need to carefully assess transition period. In particular, ‘Y’ should be carefully examined in terms of capacity required for support in operations and performance. Meanwhile FMA for ‘X’ has to be prepared. 2. Financial analysis of projects There are two categories of projects viz Rehab and Green-field (3Nos each) Financial Analysis to be carried out for all the projects separately as per ADB guidelines. 3. Cost estimates: Cost estimates shall be per each power project with detailed categorization and linked (do not use hard input please!). All sub-projects should be presented in separate spreadsheets and merged in consolidated cost table. Person Must have Prior Working Experince with ADB. and Our Budget is Limited to INR 13,00,000/ US $ 20,000.