This paper explores the role of the Lenders’ Technical Advisor (LTA) in identifying and mitigating risks in hydropower dam projects on behalf of the project lenders. It describes the LTA services that are required to manage the pre-financial close, construction and financing periods.
There are differing types of risk in both large and small hydropower projects (contractual, commercial, participant, completion, country, technology, reputational, environmental and social, etc.) and these are discussed with regard to how the lenders may be exposed if the risk eventuates either during dam construction or in operation.
Whereas a large dam for water supply would in its own right be a major project, the dam(s) associated with large hydropower will likely represent less than 25% of the total project cost and with this imbalance comes competing drivers for the other components (tunnels, waterways, powerhouse, M&E equipment, transmission lines, substations, etc).
The paper discusses the typical process whereby a hydropower developer has procured a feasibility study and is working towards financial close — covering both large and small types, i.e. storage dams and run-of-river diversion weir types, and the noticeable trend for fast-tracked developments to make a single large step from feasibility study through to engineer-procure-construct (EPC) contracting. This scenario presents some challenges for the initial due diligence when assessing in the pre-financial close stage.
The paper draws on case studies from the Asia Pacific region to illustrate the key elements in hydropower project financing from the LTA’s perspective, together with the author’s recent and current experience on multiple hydropower projects across Asia and Africa in the run-of-river, storage reservoir and pumped storage type of plants. It also brings together findings from the author’s own recent papers on the subjects of hydropower feasibility studies, the roles of lenders, owners and advisors, and tailored for an ANCOLD audience where the focus is on the dams component of hydropower.
Keywords: Lenders’ Technical Advisor, Dams, Hydropower.
Makeena Kiugu, Siraj Perera
Dam owners are influenced by drivers such as ensuring economic efficiency, achieving industry good practice, and meeting regulatory or due diligence obligations when making decisions on how to manage their dams. While these drivers can be inter-related, the decisions finally made by dam owners are reflected in planned and completed dam safety activities.
In Victoria, dam owners update the regulator on the status of their dam safety management programs every year. Victorian dam safety regulation is underpinned by risk management principles. Benchmarking of dam safety management practices is also promoted within the industry. The information provided to the regulator includes risk levels of dams, scheduled upgrades and associated cost estimates, interim risk reduction measures, and details of surveillance, emergency management and operation and maintenance programs. A considerable amount of information has been collected over the past few years allowing trends in dam safety management activities to be examined at a State-wide level.
This paper will consider how dam safety management decisions, and the drivers behind those decisions, are reflected in the dam safety practices of Victorian dam owners. Trends in dam safety activities will be observed and linkages made to prevailing industry-wide challenges.
Dam owners are increasingly being required to address a wider range of issues in an environment of limited resources. Ensuring due diligence and improving emergency preparedness are some current challenges facing dam owners. This paper also examines how these emerging drivers may influence dam safety activities into the future.
Keywords: Dam safety management
Michael Bassett-Foss , David Bouma , Dewi Knappstein
The Wairarapa Water Use Project (WWUP) in the southern North Island, New Zealand, is investigating new water storage schemes involving large dams that will allow the community to make use of the water resources that are currently available, but not necessarily available at the time they are needed. It is estimated that the 12,000 hectares currently irrigated in the Wairarapa could be increased to about 42,000 hectares depending on actual demand. The WWUP provides for a range of possible needs, such as supply of new areas of irrigation, increased reliability for existing irrigation and frost fighting, environmental augmentation of low summer river flows, environmental flushing flows, stock drinking water, power generation, municipal water supply, and recreational use.
WWUP objectives include early engagement of stakeholders, early integration of financial, social, cultural and environmental factors in decision-making, management of uncertainty associated with the preliminary level of investigation and evolving regulatory framework, development of an equitable framework for efficiently comparing options, and balancing long and short-term considerations.
A large number of dam options were identified, storing 3 to 80 million m3 of water, and progressively narrowed to a shortlist of 2 sites through a complex process of concept development, desktop studies, site visits, hydrological analyses, cost estimates and multi-criteria analyses.
The WWUP demonstrates how sustainable new major water storage schemes can be promoted in a highly regulated environment of a developed nation.
Keywords: Dams, water storage, stakeholder engagement, environment, water allocation, multi-criteria analysis
Chris Topham, Andrew Pattle, David Tanner, Oliver Giudici
Many owners around the world have dams that rely on grouted, post-tensioned rock anchors for stability. The anchors were installed during the original construction of the dams or retrofitted to improve stability during their operational life. The use of fully grouted post-tensioned anchors spanned the period of the 1960’s to 1980’s. The main issue with these un-sheathed grouted rock anchors is the question of integrity of the grout column protecting the anchor and concerns about possible corrosion of the high tensile wires from which the cables are constructed. While some of these anchors have corrosion monitoring systems installed, it is difficult to validate such data and there is considerable uncertainty over the condition of such anchors. To compound the problem, replacement of the anchors is technically complex, extremely costly and difficult to justify in the absence of known condition. For example, Hydro Tasmania has recent experience of work to cease reliance on such anchors at Catagunya Dam that cost $41m in 2009. With fifteen dams relying on some form of post-tensioned anchors, Hydro Tasmania has recently taken the unusual step of over-coring and extracting three post-tensioned rock anchors from operating dams in order to assess their condition. In what is believed to be a world first, a 42m long 70 strand high tensile anchor was overcored and removed from Meadowbank Dam in 2014. A further two anchors were successfully extracted from Repulse Dam in 2015, in conjunction with a group of international sponsors with similar anchors. This paper uses the 2015 work to illustrate the methodology used to extract the anchors, outlines the information gained from this unusual work, and presents the results of the condition of the extracted anchors. The paper concludes with some inferences for other owners with similar anchors and suggestions for further work.
Keywords: Grouted, post-tensioned rock anchor, ground anchor, corrosion, over-coring, extraction, dam safety.
Chahnimeh reservoirs with 1.4 billion cubic metres storage capacity have a critical role in water supply for both drinking water and agricultural purposes for the whole Sistan region in eastern Iran. Sistan river used to be the only source for agricultural purposes, so that several gated diversion weirs were constructed on the river in the past 50 years. Because of climate change and upstream development causing flow fluctuations, the river alone is no longer a reliable source for irrigation purposes. So the idea of storing water in Chahnimeh reservoirs and optimised operation of reservoirs have become a necessity. In order to achieve this, development of structures to have efficient operational plan of the river and reservoirs system is underway.
Several projects have been built for more efficient use of the reservoirs, some projects still being designed. One of the latest is the project of “Development of Operational Infrastructures for Chahnimeh Reservoirs” designing a structure to regulate flow between Chahnimeh I and III reservoirs. This kind of structure operating between two connecting reservoirs is so rare, so that innovation is needed to design a cost effective structure covering different operational conditions. Different structures were investigated and the summary of selection of structure types are presented. The paper illustrates challenging design of the project, useful for engineers who might be or will be dealing with such a project. By designing gates with pre-compressed rubber sealing, huge amount of costs associated with having two different gates for different directions of flow are avoided. Because of saturated foundation, by designing a diversion system between two reservoirs, it is possible to undertake pre-consolidation of foundation soil and to drain saturated foundation water. This would reduce settlement of the foundation of the structure after construction to the extent that by construction of a pile group, the gated structure will perform with high reliability for gates function. This type of structure is so rare and the methods and experiences of the presented design can be used by other engineers and consultants in similar projects. The estimated cost of the project is 15 million dollars and with construction under way, completion is expected in 2017.
Keywords: regulating structure, gates, reservoirs, reservoir operation
Russell Cuerel, Richard Priman, Michel Raymond, Ian Hanks
Following significant flood events across Queensland over the last five years causing significant damage in South East Queensland, Bundaberg Burnett region, St. George in the south west and more recently in Central Queensland in the Callide Valley, there has been renewed interest in finding solutions to flooding issues.
Increasing the available flood storage within a catchment is a well-known method of improving flood mitigation outcomes for developed areas. In many basins/catchments, potential flood storage development options (new storages or augmentations to existing storages) can be identified by reviewing previous water supply investigations and flood studies and by scanning topographic mapping. From such site identification there will often be numerous combinations of possible flood storage development options to consider because of the number of tributaries which may contribute to major flood events.
This paper outlines a methodology to screen, within a relatively short timeframe and at relatively low cost, a large number of identified flood storage development options and combination development scenarios and shortlist for more detailed analysis. The screening process is heavily reliant on hydrologic assessments to rapidly short-list scenarios for assessment and then relies on traditional engineering and economic assessments to do the fine tuning of the analysis.
Keywords: flooding, damages, impacts, flood storage, flood mitigation, dams, benefit-cost ratio.