The Ministry of Energy and Natural Resources (MENR) informed the IFC and World Bank team that the Government and the Public Service Regulatory Commission (PSRC) are currently discussing the tariff-setting principle for those small hydropower plants (SHPPs) for which the mandatory off-take period of 15-years at the Feed-In Tariff (FIT) approved by PSRC will shortly expire. The MENR suggested that the FIT for the above SHPPs should be revised in a way to avoid excessive profits by those SHPPs given that the current FIT includes recovery of capital cost. The World Bank and IFC teams would prepare a short note for the MENR to inform their thinking on the issue.  The objective of this assignment was to prepare an analytical piece with estimates of the cost structure of SHPPs which have been in operation for more than 15 years, and to provide recommendations on whether changes to the current uniform FIT for SHPPs are required for such plants.
