PROCEDURE IN
RENEWABLE IPP PROCUREMENT
Jakarta, 5th September 2013
CONFERENCE OF INDONESIAN ELECTRICAL POWER SOCIEY (CIEPS) 2013
GENERAL IPP BUSINESS SCHEME
Special Purpose Company (SPC) to be formed
Consortium:
2 to 4 companies
Lender
Company X
JVA
Company Y
LA
25 % 30%
FUEL
Supply
Contractor
: Fix Operation and
Maintenance Cost
: Fuel Cost
: Variable Operation and
Maintenance Cost.
75% 70%
PPA
(Seller-SPC)
Contract
: Capital cost for Power Plant
Local
IPP
FSA
EPC
Foreign
O&M
Contract
B
EPC
Contractor
D
O&M
Contractor
PLN
(Buyer)
Regulatory Frameworks
2 schemes of Government Guarantee
Public Private Partnership (PPP) Project
Fast Track Program 2 (FTP2) Project
Guarantee Agrement between GOI-IGGF-Developer
Business Viability Guarantee Letter from GOI to Developer
a. Presidential Regulation No 67
of 2005, 13 of 2010, and 56 of
2011
b. Presidential Regulation No 78
of 2010
c. Minister of Finance Regulation
No 260/PMK.011/2010
IGGF
Assignment to PT PLN (Persero), to
Accelerate the Development of
Renewable Energy, Coal and Gas Fired
Power Plants
Assignment to PT PLN (Persero), to
Accelerate the Development of
Renewable Energy, Coal and Gas Fired
Power Plants
a. Presidential Regulation No 4
of 2010 and 48 of 2011
Guarantee for Infrastructure Project
with scheme of the Cooperation with
Private Developer through
Infrastructure Entity Guarantor
b. Minister of Finance Regulation
No 139/PMK.011/2011
Procedures for Providing the Business
Viability Guarantee of PT PLN (Persero) for
the Development of Renewable Energy,
Coal and Gas Fired Power Plants through
the Cooperation with Private Electricity
Developer
c. Minister of Energy and Mineral
Resources Regulation No 15 of
2010 and 01 of 2012
List of Projects of the Acceleration
Development of Renewable Energy, Coal
and Gas Fired Power Plants
Procedures for Providing Guarantee
for Infrastructure Project through
Public Private Partnership Scheme
Financiers
GOI
(ECA / Banks)
Financiers
GOI
GA
(ECA / Banks)
BVGL
FA
FA
RA
PLN
PPA
IPP
Company
PLN
PPA
IPP
Company
Update 1 Augt 2013 No. 21/2013
12169 MW : 46 HEPP, 6 GeotPP, 7 CPP
GA = Guarantee Agreement
RA = Recourse Agreement
PPA = Power Purchase Agreement
FA = Financing Agreement
BVGL = Business Viability Guarantee Letter
IGGF = Indonesia Infrastructure Guarantee Fund
GOI = Government of Indonesia
GENERAL INFORMATION
PPP Project Procurement Processes
Compensation
scheme
PPA
IIGF
Guarantee Preparation
Preparation
Transaction
Advisory
Procurement
Bidding
Transaction Advisory
Business Scheme
RFP Proposal
Bid Evaluatin
Financing
Construction
Operation
Renewable IPP Projects
Procurement Process
Geothermal (FTP2):
Assignment from
MEMR
PPA Discussion /
Negotiation
PPA Signing
Other than Geothermal (Hydro, Wind, etc):
Procurement Process
PPA Signing
Procurement for Renewable IPP Projects above 10 MW
Renewable IPP Projects
Procurement Procedure (above 10 MW, other than Geothermal)
Acquire Location Permit
from Local Government
Heads of Agreement / LoI
PLN submit Application for
Price Approval (PA) to
MEMR
Negotiation Process
Submit Proposal & FS to
PLN
(DIV SIS & DIV EBT)
Issuance of PA from MEMR
Request for Proposal Process
Pre Qualification Process
Review by PLN
(System
Requirement
and RUPTL)
Signing PPA : Escrow
Account, PS 1and IUPTL-S to
be made available
Formation of Negotiating
Committee
More than 1
applicant
Only 1
applicant
Tender Process
Direct Appointment
Process
Issuance of DA from MEMR
PLN submit Application for
Direct Appointment (DA) to
MEMR
Financing Date (Financial
Close) : : Performance
security II, Financing
Agreement & first
drawdown, EPC contract,
land ownership to be made
available
Electricity Price Structure
Single Price or Capacity & Energy Price
1.Single Price
Electricity price is stated in single price (Rp/kWh orUSD/kWh), covers capital cost,
operating & maintenance and fuel cost (primary energy).
Payment = Electricity price (Rp/kWh) x Electricity Production (kWh)
Some are linked with consumer index
2.Capacity & Energy Price
Capacity Price (linked with Availability Factor (AF, in %)):
Component A : Capital cost for Power Plant .
Component B : Fix Operation and Maintenance Cost.
Component E : Capital cost for transmission line.
Energy Price (linked with Electricity Production (kWh)):
Component C : Fuel Cost
Component D : Variable Operation and Maintenance Cost.
7
Risk Allocation in PPA
PLN and IPP
Stage
Financing Stage
Construction
Stage
Operational
Stage
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Risk
Financing risk
Political risk during financing stage
PLN default risk during financing stage
Failure to achieve financial close
Event of Force Majeure affecting either Seller or PLN
Construction risk
Security risk (e.g. theft, sabotage)
Design risk and construction risk
Political risk during construction
PLN default during construction
Failure to reach the required commercial operation date
Operating risk
PLN default during operation
Coal Supply Force Majeure
Event of Force Majeure affecting Seller
Event of Force Majeure affecting PLN
PIC
IPP
PLN
PLN
IPP
IPP or PLN
IPP
IPP
IPP
PLN
PLN
IPP
IPP
PLN
PLN
IPP
PLN
8
Contact Us
Divisi Pengadaan IPP
PT PLN (Persero) Kantor Pusat
Jl. Trunojoyo Blok M I/135, Kebayoran Baru
Jakarta Selatan 12160
Telp
Fax
: 021 722 7049
: 021 725 1511
www.pln.co.id
Booklet Pengadaan IPP dapat di-download di link berikut:
http://www.pln.co.id/dataweb/ipp/bookletipp.pdf
THANK YOU
