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.
Now showing 1-12 of 42 2979:
Gavan Hunter, Andrew Pattle and Mark Foster
A piping incident occurred during first filling of Rowallan Dam, Tasmania in 1968. The incident occurred at the interface of the embankment with the spillway wall, a 15 m high near vertical wall, where the contact earthfill eroded into the single stage downstream filter. Repairs were undertaken in 1968/1969 and the reservoir has operated largely without incident since.
A risk assessment in 2009 identified that piping through the embankment at the spillway wall interface remained a significant dam safety risk. Investigations in 2010 encountered cracking within the earthfill core at the spillway wall interface.
Dam safety upgrade works were undertaken in 2014/15 to address the piping failure mode at the spillway walls and also within the upper portion of the embankment. The works required excavation down to a rock foundation at depths up to 18 m adjacent to the spillway walls and this excavation provided an unusual opportunity to closely examine active piping features that had been preserved when interim repairs in 1968/69 had arrested the progression of piping. The repair comprised reconstruction of a significant portion of the embankment at the spillway and the reconstruction of the upper 7 m of the crest, which included dual filters downstream of the earthfill core.
The findings from the forensic investigations of the deep excavations adjacent to the right spillway wall are described in this paper along with a summary of finding from the 1968/69 repair works and a discussion of the piping mechanism at the spillway wall. The paper also covers the design and construction of the repair work. The focus of this paper is on advancements in our understanding of piping risk arising from the Rowallan Dam work.
In conclusion, (i) the upgrade works successfully reduced the dam safety risk of Rowallan Dam; (ii) the findings support the methodologies of the piping toolbox; (iii) the case study provides insight into filtering and crack filling mechanisms that have a broader implication for estimating the risks of internal erosion within existing dams; and (iv) the findings support the assessment of the low residual risks for piping through the embankment away from the upgrade work areas (crest reconstruction and spillway walls).
Keywords: Earth and rockfill embankment, piping incident, piping mechanism, dam safety upgrade.
Peyman Bozorgmehr, Sarah McComber, David Harrigan, Erik F R Bollaert
Boondooma Dam is a concrete-faced rockfill dam with an unlined, uncontrolled spillway chute. The Acceptable Flood Capacity of Boondooma Dam is 1:60,000 AEP (equal to the Dam Crest Flood (DCF) and has a maximum inflow of 14,330 m3/s.
Significant rainfall events during 2010/11 and 2013 subjected the spillway to moderate discharges over the crest which caused significant scour to the spillway chute.
Following these events, a 3D physical hydraulic model was constructed at a 1:80 scale to investigate repair options. Originally the spillway chute was modelled using a mobile bed set up which showed that that future scour could occur. However, the model could not determine the rate and characteristics of this damage.
In order to determine how future scour may occur, the 3D model was modified using laser survey mapping of the spillway chute after each flood event. Using milled aluminium and concrete capping the model was able to accurately portray the damage profile sustained by the spillway in the 2010/11 and 2013 flood events.
Transient pressure, static pressure, water elevation, velocity and jet measurements of the model were used in a Comprehensive Scour Model to help inform how damage to the chute may progress in future flood events.
Keywords: Boondooma Dam, flood damage, 3D physical hydraulic modelling, comprehensive scour assessment
T. I. Mote, M.L. So, N. Vitharana, and M. Taylor
This paper explores the sensitivity of selection of earthquake design magnitude to liquefaction triggering in Australia for ground motions typically used for dams. The low seismicity of Australia creates a situation where liquefaction triggering is marginal at design hazard levels and this low level of seismic hazard makes the liquefaction trigger analysis very sensitive to the derivation of the seismic inputs. A methodology is presented that couples the probability of liquefaction triggering with the distribution of earthquake contribution to the hazard from the magnitude-distance deaggregation. The results show that for the “typical” soil profile and input ground motions approximately equivalent to the maximum design earthquake for Australia, the probability of liquefaction triggering varies significantly with the design magnitude selected. Using the maximum credible earthquake or mean magnitude may provide significantly different liquefaction triggering implications. Combining the probability of liquefaction triggering with the contribution of varying magnitudes to calculate liquefaction probability is a useful method to understanding the sensitivity of liquefaction to design magnitude.
Keywords: Liquefaction Assessment, Design Magnitude, Probability of Liquefaction, Magnitude-distance deaggregation, Australia
Richard Herweynen, Tim Griggs, Alan White
The Ministry of Public Utilities, Sarawak, Malaysia used an independent dam safety consultant to advise them on whether the Murum Dam was ready for impoundment. They were looking for a holistic assessment of the dam from a dam safety perspective. As a result, a risk framework was adopted to identify the key issues that needed to be addressed prior to impoundment of the Murum Dam. The process adopted which is presented in this paper, was transparent and defensible; and provided a reasoned approach for which items must be completed prior to the commencement of impoundment. As a result effort was focused on the key activities required prior to impoundment – whether this was the completion of specific works, the availability of key instrumentation to monitor the dams performance, the availability and operation of key dam safety systems, or the appropriate emergency preparedness should a dam safety incident occur during first filling. This systematic process based on a risk based approach, was a useful method of determining the dam’s readiness for impoundment, and provided an excellent way of communicating the importance of activities to the key stakeholders. The authors believe that this method is transferable to other dam projects, for an assessment of a dam’s readiness for impoundment.
Keywords: Dam safety, risk, impoundment, reservoir filling.
This paper discusses the common environmental issues and requirements project lenders have when financing hydropower dam projects in developing countries. The environmental specialist’s role, as part of the Lender’s Technical Advisor team, is discussed throughout the main phases of project finance (credit approval, financial close, lending/construction and loan repayment/operation). Further, how environmental issues are reviewed and monitored, thereby minimising reputational risks to the lenders are outlined.
Lenders typically consider hydropower dam financing, especially reservoir schemes, as high reputational risk loans. Finance is usually syndicated and although most international lenders are Equator Principles signatories or use the International Financing Corporations (IFC) Performance Standards, some lenders have additional environmental guidelines and requirements to enable financing. These differences are discussed.
Common environmental concerns include loss of habitat of endangered and/or threatened species, changes to river flows, erosion and sediment control during construction, and the minimisation and disposal of project wastes.
These issues are discussed drawing on the author’s experience in monitoring environmental issues of hydropower projects in Asia Pacific and Africa, including both smaller run-of-river schemes and larger storage reservoir projects.
Keywords: Environment, impacts, project financing, concerns, lenders, lenders technical advisor.