PPA MODEL FOR PPP PROJECT

Transkripsi

1 PPA MODEL FOR PPP PROJECT Workshop - MKI Assistia Semiawan PT (Persero)) Jakarta July 17, 2012

2 Risk Allocation IPP Procurement Process Financing Government Guarantee Construction of PPA template

3 IPP Structure & Risk Allocation

4 General Structure of IPP Project Contractors and Suppliers (EPC, O&M, Fuel) IPP Project Co Equity Project Sponsor PPA Debt Lenders GOI Gov. Guarantee

5 IPP vs EPC Project Structure GOI Contract ors and Supplier s (EPC, O&M, Fuel) PPA Project Sponso r IPP Project Company Equity Debt Lenders Guarantee GOI Contractors and Suppliers (EPC, O&M, Fuel) Guarantee /Recourse Debt Lenders Proyek IPP Proyek EPC IPP project : Construction risk dan financing risk will be handled by IPP EPC project : Construction risk and financing risk will be handled by 5

6 RISK ALLOCATION FOR IPP PROJECT Land Aq. Risk IPP Share Environmental & Social Issues Fuel Supply V *) Construction O and M Exchange Rate Inflation Financing and Interest Rate Demand Regulatory Force Majeure V V V V V V V V V V Risk is allocated to Party that has the capacity and capability to handle risk more efficiently than the other Party *) Procurement Risk : IPP Fuel Price Risk : IPP 6

7 Risk Identification Specific to Mine Mouth Site Risk Power Plant Site (land acquisition, resettlement, etc) Coal Mine Site License, AMDAL, other permits Design and Construction Risk Operation Risk Power Plant Coal supply and processing facility Power Plant Operation Geological research failure Risk Tree Sponsor Risk*1 Financial Risk*2 Revenue Risk*3 Connectivity Risk Political Risk*4 Regulatory Risk Force Majeure Coal Supply and Processing Operation General changes in law Specific changes affecting mine mouth Coal price hike (cost hike) Coal mine operation failure Coal processing ops failure Coal mine bankruptcy/owner shift Dispute with mine owner (e.g. shift to export) Coal transaction price related Coal tax, royalty related *1:poor sub-contractor performance, early termination,etc. *2:inflation, FX, interest rate, etc. *3: end-user tariff adjustment, end-user nonpayment, *4: currency inconvertibility, currency transfer, expropriation, - adopted from JICA Study on Mine mouth Project 7

8 History of IPP Mgt & Procurement Process

9 KRONOLGI PENGELOLAAN IPP Menyesuaikan dengan dinamika perubahan IPP GENERASI I IPP GENERASI II IPP GENERASI III Opsi I: PPP PPA AWAL Ex. 27 IPP Renegosiasi Generasi I IPP DOMESTIK IPP INFRASTRUKTUR (Jaminan Pemerintah) Opsi II: PPA B to B EVALUASI MASALAH MEYAKINKAN PASAR DENGAN ANAK-ANAK PERUSAHAAN Bankabie PPA PLTU Jawa Tengah RENCANA JAMINAN PEMERINTAH Tahun : Generasi I, alokasi risiko kepada dan ada Government Support Tahun 1997 : Penangguhan dan pengkajian kembali proyek-proyek listrik swasta Tahun : Renegosiasi 27 IPP Tahun : Tidak ada pembangkit IPP yang baru Tahun : Program kemitraan, skema B to B, tanpa jaminan Pemerintah Tahun : Generasi II, risks sharing, skema B to B, tanpa jaminan Pem.

10 PROSES BISNIS PANJANG DAN RISIKO TINGGI 1) umumkan Prakualifikasi IPP Pengembang menyiapkan data kemampuan & Bentuk Konsorsium umumkan hasil prakualifikasi umumkan pengadaan IPP Pengembang check Lokasi & Studi Awal Pengembang jajaki Lahan, EPC Contractor, Lender, dll Pengembang Ajukan usulan Harga umumkan pemenang Pengadaan & klarifikasi Pengembang menyiapkan dokumen, Garansi dll untuk PPA & Pengembang ttd PPA Risiko-risiko: Kenaikan biaya konstruksi Kenaikan nilai tukar Rp, USD, JPY, RMB dll Risiko politik dll 7 9 bulan 12 bulan Pengembang melakukan Feasibility Study, AMDAL, bebaskan tanah, cari EPC Contractor, Cari Lender. Lender melakukan Due diligence Bank mencairkan Pendanaan / Financial Close bulan Proyek Dibangun IPP beroperasi

11 CJIPP Tender Process (1) Legal Basis CJIPP tender process is based on PPP Law According to RFP: PPP Law is Presidential Regulation 67/2005 as amended by Perpres 13/2010, including its Appendix

12 CJIPP (1) Project Preparation and PQ Process Start GOI announcement in IICE 2006 Inclusion of CJIPP in RUPTL CJIPP Discussion Forum (Market Sounding) PQ Announcement PQ Meeting (November 2006) Article 7(1) (March 2008) Article 8 (February 5, 2009) Article B.2 (June 22, 2009) (July ) PQ Result: Nine qualified Lead Members under seven bid consortiums: China Shenhua Yudean Corp., J Power and GDF-Suez KEPCO Marubeni Mitsubishi Mitsui and International Power PQ Date and Evaluation Article B.2 (July 28 Nov 4, 2009) Notification of PQ Result Article B.2 (Nov 5, 2009) A B Note: Article X.X.X.X refers to the Appendix of the PPP Law (Date refers to completed or scheduled proceedings)

13 CJIPP (2) RFP and Negotiation Process A B RFP Article B.4 (Feb 25, 2010) FS and Government Support Proposal to MOF (July 16, 2009) Pre-Bid Conference Article B.5 (Mar 25, 2010) Presentation, Term Sheet,and Draft Guarantee Agreement (April 14, 2010) Negotiation of RFP / Project Agreements (Mar 25, 2010 Mar 25, 2011) Negotiation of Guarantee Agreement Amendment of RFP / Project Agreements 20 Amendments Amendment of Guarantee Agreement Yes Any Material Concerns None Final Project Agreements and amendment (April 20, 2011) Yes Any Material Concerns None Bid Negotiation: In CJIPP, bid negotiation is conducted prior to bid date, creating an open, fair, and competitive process After finalization of RFP, Project Agreements and Guarantee Agreement, no material changes (changes in risk allocations) is allowed C

14 CJIPP (3) Evaluation of Bids C Final RFP, Project Agreements and Amendment Bid Submission Evaluation of Administrative and Technical Proposal (Envelope I) Article B.5 (April 20, 2011) Article B.6 (April 29, 2011) Article B.7 (April 29 May 23, 2011) Note: Article X.X.X.X refers to the Appendix of the PPP Law (Date refers to completed or scheduled proceedings) Comply with RFP? No (May 24, 2011) Return Unopened Envelope II and Proposal Security (May 24 June 8, Yes Responsive Bidders >1? No (May 24, 2011) Yes Evaluation of Financial Proposal (Envelope II) Article B.8 Evaluation of Financial Proposal (Envelope II) Article B.8 (May 24, 2011) Rankings of Preferred Bidders Article B.8.c.6 Article B.9 Single Responsive Bidder Article B.8.c.6 (May 24, 2011) Article B.10 D

15 CJIPP (4) Appointment of Bid Winner D Report to CEO of Article B.10.b (May 31, 2011) Negotiation No Retender Article B.10.d.7 Yes Article B.10.c (May 31, 2011) Negotiation with Single Bidder Article B.10.d.8 (May 31, 2011) s CEO determine Single Bidder Article B.10.d.10 (June 1, 2011) Note: Article X.X.X.X refers to the Appendix of the PPP Law (Date refers to completed or scheduled proceedings) Announcement of Single Bidder Article B.11 (June 1, 2011) Objection Article B.12 (June 1-10, 2011) Evaluation and Response to Objection (June 10-16, 2011) Issuance of LOI to the Single Bidder Article B.14.a (June 17, 2011) Announcement to All Bidders Section 26 of RFP (June 17, 2011) End

16 Procurement Processes For IPP Projects With PPP Scheme PPP scheme determined Appointment of Consultants Pre FS review and preparation of GAP Pre-FS Finalisation EOI and PQ process Submission of GAP Appraisal Draft RFP released One on one meetings Structuring Final RFP released Issuance of In-Principle Approval Bid Submission & Evaluation Award & Signing Screening Consultation IIGF Guarantee Provision Process Signing of: 1. Power Purchase Agreement 2. Guarantee Agreement 3. Recourse Agreement 16

17 Financing

18 Debt and Equity Requirement Project Size (MW) Project Cost ($ million) Equity ($ million) (25%) Debt ($ million) (75%) , , , ,250 A 2000 MW project will require at least $2 billion debt financing At any size, the project would classify as large project financing for developing country, requiring high quality investors Shortlisted lead investors (equity interest of more than 20%): In IPP project with international sponsor, domestic banks is less likely to participate in large project financing 18 18

19 Financing Plan Traditionally, and given the current state of credit markets, commercial banks would limit participation in B loans only Central Java IPP would be heavily reliant on ECAs financing Potential lenders include: Multilateral lenders (e.g. ADB, IFC, MIGA, IDB) B loans under multilateral cover from commercial banks Export Credit Agencies (e.g. JBIC, KEXIM, Sinosure) Bilateral financial institutions (e.g. JBIC) 1600 MW 2000 MW Note Debt requirement $1.8 b $2.25 b Multilateral 1 $ 250 m $ 250 m Project limit Multilateral 2 $ 200 m $ 200 m Project limit B loans under multilateral cover $ 200 m $ 200 m Export Credit Agencies $ 1,150 m $1,150 m Bilateral 0 $ 450 m 19 19

20 Why ECA or Bilateral or Multilateral? Large debt financing will definitely require ECA participation ECAs are allowed to cover a majority of eligible capital costs and can provide loans or loan guarantees of over $1 billion each Multilaterals and commercial banks are not capable of meeting this size of financing by themselves (current underwriting limit for a bank is $75 m; for multilaterals (eg. ADB) it is $250m for Indonesia) Commercial banks will not lend to an IPP in Indonesia (or similar countries) on un-covered basis i.e., without an ECA, multilateral or bilateral cover All large IPPs in Indonesia have used ECA/bilateral financing (eg US Exim, OPIC, JBIC, KEXIM) none to date have done without Even Middle East IPPs (which have A rated offtakers and gov support) have used ECA/multilateral/bilateral cover for most of the international commercial bank tranches 20 20

21 Government Guarantee

22 Kebutuhan Jaminan Pemerintah Semua proyek IPP besar di Indonesia menggunakan ECA/bilateral financing (mis: US Exim, HERMES, JBIC, KEXIM) Pembiayaan internasional ECA/bilateral mensyaratkan adanya sovereign guarantee Pihak investor (project sponsor) meminta adanya sovereign guarantee untuk melindungi investasi mereka (dalam hal political force majeure dan s default) Jaminan pemerintah perlu untuk melindungi dari: Risiko Politik Perceived political risk Indonesia masih tinggi: OECD s Indonesia political risk rating: 5 (bandingkan Vietnam, 4) Euromoney ranking: 85 (dari lebih 100 negara) Institutional Investor ranking: 76 (Bandingkan India, 58) Risiko s Default credit risk masih tinggi: Sub-investment grade rating (SP: BB, Moodys: Ba2) Ketergantungan pada subsidi pemerintah TDL masih dibawah nilai keekonomian dan diputuskan secara politik oleh Pemerintah/DPR Berdampak pada kemampuan untuk membayar tarif PPA

23 KRONOLOGI JAMINAN / DUKUNGAN IPP GENERASI I IPP GENERASI II IPP GENERASI III Opsi I: PPP PPA AWAL Ex. 27 IPP Renegosiasi Generasi I IPP DOMESTIK IPP INFRASTRUKTUR (Jaminan Pemerintah) Opsi II: PPA B to B Bankabie PPA Jaminan / Support Tidak ada Jaminan PLTU Jawa Tengah Jaminan Perpres 4/2010 (Jaminan Kelayakan Usaha ) Perpres 67/2005 jo 13/2010

24 Road Map of Guarantees for Indonesia IPPs (PPRFpresentation April 2010) Policy shifting toward better guarantee management... Support Letter 1 Addressee Project Company Confirmation Note Lender (JBIC)* Insurer (NEXI)** Project Company Guarantee Agreement 2 Coverage Not stated Not stated Financial obligations of contracting agency as stated in PPA 3 Issuer Ministry of Finance signed by Minister Ministry of Finance signed by Head of Fiscal Policy Office Indonesia Infrastructure Guarantee Fund (IIGF); and/or Third party (MDA); and/or GoI. *) Under Umbrella Note of Mutual Understanding between the Ministry of Finance of the Government of Republic of Indonesia and Japan Bank for International Cooperation (JBIC); **) Under the Umbrella Note of Mutual Understanding between the Ministry of Finance of the Government of Republic of Indonesia and Nippon Export and Investment Insurance (NEXI).

25 PPP Structure & Procurement Scheme Presidential Regulation no. 67/2005 on Government Cooperation with Business Entities in the Provision of Infrastructure contains the main provisions regulating public procurement and concession projects Legal Framework for PPP *PPP Structure & Procurement Procedures *Guarantee Scheme Presidential Regulation no. 13/2010 on 1 st Amendment to Presidential Regulation no. 67/2005 Revision on Government Guarantee Revision on main provisions Revision on Pre Qualification Procedure etc Presidential Regulation no. 56/2011 on 2 nd Amendment to Presidential Regulation no. 67/2005 Revision on Pre Qualification Procedure Revision on Unsolicited Projects etc Government Guarantee Scheme through IIGF (Indonesia Infrastructure Guarantee Fund) Presidential Regulation no. 78/2005 on Guarantee of Infrastructure Projects for Government with Business Entities Cooperation Through Infrastructure Guarantee Fund - contains the main provisions regulating the establishment of IIGF (Indonesia Infrastructure Guarantee Fund) Ministry of Finance Regulation no. 260/PMK.011/2010 on Guidance for Guarantee of Infrastructure Projects for Government with Business Entities Cooperation 25

26 Skema Penjaminan Proyek KPS Counter Guarantee Risk Sharing Cooperation Agreement MDA 6 5 Backstop Facility 1 Sponsor Single Window Policy Kemenkeu PT. PII Project Company Ekuitas Perjanjian Penjaminan 3 Pinjaman Lender Penanggung Jawab Proyek Kerjasama (PJPK) 4 Perjanjian Regres acessoir 2 Perjanjian Kerjasama 1. Penjaminan Infrastruktur dilaksanakan oleh Menteri Keuangan melalui Badan Usaha Penjaminan Infrastruktur (dhi. PT Penjaminan Infrastruktur Indonesia) dengan Single Window Policy 2. PJPK dan Project Company akan bersepakat untuk melakukan kerjasama dalam penyediaan infrastruktur yang dituangkan dalam Perjanjian Kerjasama yang antara lain memuat hak, dan kewajiban dari masing-masing pihak 3. PT PII akan menjamin kewajiban kewajiban PJPK kepada project company yang dituangkan dalam perjanjian penjaminan 4. Atas penjaminan yang diberikan kepada PJPK, PT PII memiliki hak regres apabila timbul klaim dari project company 5. Dalam rangka meningkatkan kredibilitas penjaminannya, PT PII melakukan kerjasama dengan Multilateral Development Agency (MDA) ataupun pihak lainnya 6. Dalam hal diperlukan, Menteri Keuangan akan memberikan counter guarantee guna mendukung kerjasama PT PII 26

27 Contractual Structure 3 Recourse agreement IIGF and/or MOF 1 PPA (Cooperation Agreement) 2 Guarantee Agreement Sponsors / Shareholders 4 Sponsor Agreement/ Shareholders Agreement PPP Co. 5 Loan Agreement Lenders 6 EPC Agreements 7 Fuel Supply Agreement 8 O&M Agreements ECP Contractor Fuel Supplier O&M Contractor 27

28 FINANCIAL OBLIGATION CLAUSE Clause 4.4 CLAUSE Delays caused by in Construction Phase EXPOSURE Price Adjustment Clause 5.7.1(c) Tax imposed as result of the Special Facilities transfer (PPN 10% from transfer price)

29 Clause Payment during commissioning each Unit Clause Payment from Unit COD until the Project COD for Unit one Clause Payment from Project COD until termination of Agreement

30 Clause Payment for Deemed Commissioning Clause 8.3 Supplemental Payment for Emergency Output Clause Payment for Deemed Dispatched Political Force Majeure

31 Clause Payment for Deemed Dispatched caused by Force Majeure affect Clause 15.1 Consequences in Triggering Event Clause Project Purchase caused by Event of Default and/or Political Force Majeure before Project COD

32 Clause Project Purchase caused by Event of Force Majeure before Project COD Clause Project Purchase caused by Political Force Majeure affect Seller and and/or Event of Force Majeure affect after Project COD

33 33 TIMELINE PPA PPA signing Financing Date Plant Construction period Project COD Termination Agreement & Transfer Project Financing Period (12 month) Unit COD ( month) Commissioning period ----days Operation period (25 years)

34 Pokok-Pokok PPA (1) No. Subyek PPA 1 Sifat PPA Take-or-pay PPA, dengan opsi untuk membeli proyek pada akhir masa kontrak. Walaupun IPP mempunyai take-or-pay PPA contract, risiko off-taker masih ada (non-payment risk, political risk) 2 Periode PPA + /- 25 tahun, tidak termasuk masa satu tahun untuk pencapaian financial close dan untuk pekerjaan konstruksi 3 Availability Factor + 80%, setelah Project COD + 50%, setelah Unit COD 4 PPA Tariff Dalam rupiah, terdiri dari 5 komponen A: capital cost recovery B: biaya tetap O&M C: biaya bahan bakar D: biaya variabel O&M E: capital cost recovery untuk Special Facilities (jaringan transmisi dan GITET) 5 Project security Escrow account sesudah PPA signing Bank Guarantee saat PPA signing Bank Guarantee II saat financial close 34

35 Pokok-Pokok PPA (2) No. Subyek PPA 6 Pasokan batubara Pengadaan oleh IPP dengan persetujuan Harga batubara di-pass-through ke 7 Liquidated damage Denda keterlambatan COD di-cap 8 Grace period on FM hari (selama operasi) 48 jam (untuk net dependable capacity test) 9 Pengadaan lahan Dilakukan oleh IPP, membantu koordinasi dan sosialisasi dengan masyarakat dan pemerintah daerah 10 Deemed Commissioning Natural FM pada atau political FM pada IPP dan yang mengganggu commissioning diperlakukan sebagai deemed commissioning 11 Deemed Dispatch Natural FM pada atau political FM pada IPP dan yang menggangu operasi diperlakukan sebagai deemed dispatch 12 Termination Right 35 Event of default dan prolonged political FM memberikan IPP Termination Right. Rumus: net present value dari pembayaran komponen A dan E plus outstanding debt and interest plus EPC termination cost

36 Adaptation of PPA

37 37 Claim and Payment Procedure for Non-Payment Default *Subject to GA scheme PPA Remedial Notice Claim Due/Payable cc to IIGF Applicable Cure Period 45 days Consultation phase Termination Notice II Guarantee Payment 30 Days Remedial Program 30 Days 30 Days Days * Transfer Project * Termination Notice 1 GA IIGF copied received remedial notice 45 Days 1. notify unability; or 2. disputes amount. Guarantee Demand Deemed no dispute Verification Period 60 Days 60 Days Determination Date 18 Months Payment by IIGF Payment by GoI

38 38 Claim and Payment Procedure for Payment Default*Subject to GA scheme PPA Remedial Notice Claim Due/Payable cc to IIGF Applicable Cure Period 45 days Guarantee Payment Remedial Program 30 Days Days * Guarantee Demand GA IIGF copied received remedial notice 45 Days 1. notify unability; or 2. disputes amount. Guarantee Demand Deemed no dispute Verification Period 60 Days 60 Days Determination Date 18 Months Payment by IIGF Payment by GoI

39 RECITALS This Project was procured, conducted and based on Presidential Decree No. 67 of 2005 jo. No. 13 of 2010 concerning Government Cooperation with Entity in Infrastructure Provision (Peraturan Presiden No. 67 Tahun 2005 jo. No. 13 Tahun 2010 tentang Kerjasama Pemerintah dengan Badan Usaha dalam Penyediaan Infrastructure) CHANGE IN PPA

40 Clause In the event of termination of this Agreement after the Financing Date pursuant to Section due to a Event of Default or pursuant to Section (a), shall purchase the Project at the purchase price determined in accordance with paragraph 2.2 of Appendix F with reference to Claim Procedure and Payment Mechanism under Guarantee Agreement. Clause In the event of termination of this Agreement after the Financing Date pursuant to Section (b), shall purchase the Project at the purchase price determined in accordance with paragraph 2.2 of Appendix F with reference to Claim Procedure and Payment Mechanism under Guarantee Agreement. Clause In the event of termination of this Agreement pursuant to Section (b) or Section (c), shall purchase the Project at the purchase price determined in accordance with paragraph of Appendix F with reference to Claim Procedure and Payment Mechanism under Guarantee Agreement. CLAUSE 16.3

41 DEVELOPER GUARANTEE AGREEMENT GUARANTOR (IIGF &GoI) POWER PURCHASE AGREEMENT RECOURSE AGREEMENT Guarantee Scheme

42 Legal Basis Presidential Regulation No. 78 / 2010 Regulation of Finance Minister No. 260/2010 Parties : IIGF and GoI Aim : enable IIGF/GoI as Guarantor to claim from payments made by them under the Guarantee Agreement (GA) Heads of Terms

43 43 Claim & Payment Procedure Demand from Seller Payment by IIGF & GoI confirm REGRES Claim Due/Payable Determination Date doesn't confirm Revised Payment Schedule in separate recourse settlement agreement Verification Period Payment Period 10 days Notification to with Payment Schedule IIGF deliver Notification of Negotiations Negotiations 20 days If not agree - - arbitration

44 Terms of payment Interest shall accrue from date of IIGF payment under the GA to payment date under RA [Discussion: interest shall accrue starting from s payment due date until the actual payment] may not dispute any payment made by IIGF under GA including any changes thereof [Discussion: s consent also be required to any payments agreed outside the terms of GA] may request a change in Payment Schedule which will trigger negotiation, then the Revised Payment Schedule will be stated in separate recourse settlement agreement Payment made in Rupiah without (and free and clear of any deductions fo) set-off or counterclaim Heads of Terms

45 Indemnification to indemnify IIGF for all payments made by it under GA [Discussion: payments made by IIGF due to Gov FM should be excluded] A dispute in relation to, or the enforcement by the Seller of the Guarantee Agreement [Discussion : has no control over whether or not IIGF brings a dispute under GA, therefore cannot indemnify IIGF and it should be Seller who indemnify IIGF] Heads of Terms

46 Consent is required to obtain consent from IIGF and GoI for any termination of the PPA by which is covered under GA, as part of giving the consent, IIGF and GoI need to state that they are each satisfied that has the financial resources available to it to pay the purchase price when due and payable [Discussion: even if doesn t have enough funds to pay the purchase price immediately, the consent still can be issued if terminating the PPA is the most appropriate course of action rather than have to pay deemed dispatched] Heads of Terms

47 PPA Signing FC COD End of PPA Prior to FC After FC Prior to COD On and After COD Seller s Default Case A Case B Case C s Default - Case D Case E PFM - Case D Case E FM (Other than PFM) - Case D Case E Termination Possible Cases

48 Case Cause Termination A - Seller s inability to - seize Stage I Guarantee (IDR 276 billion/us$ 30 reach CP on FC date million), except (i) inability to secure project site and [16.3.1] special facilities and (ii) MAC, of which US$ 5 million is entitled to B C - Seller s Event of Default after FC but prior to COD [16.3.2] - Seller s Event of Default after COD [16.3.3] - seize Stage II Guarantee (IDR 644 billion/us$ 70 million) - has option to purchase the Project equal to - Outstanding debt plus interest due and payable, minus - Yet-to-disburse equity commitment - has option to purchase the Project equal to - Outstanding debt plus interest due and payable, minus - Yet-to-disburse equity commitment Termination Treatment

49 Case Cause Termination D E - PFM after FC but prior to COD [16.3.4] or - FM (other than PFM) after FC but prior to COD [16.3.5] - s Event of Default after FC but prior to COD [16.3.4] - s Event of Default after COD [16.1.4] - PFM after COD [16.3.6] - FM (Other than PFM) after COD [16.3.6] - shall purchase the Project equal to: - Outstanding debt plus interest due and payable, plus - Actual equity contribution (capped at equity commitment), plus - ROE of 15% of the actual equity contribution, minus - DSRA and payment made by during deemed period - Purchase price based on outstanding debt and interest due and payable plus net present value of future CCR/CCRT, adjusted by average NDC, exchange rate, equity cash flows percentage at 33%, 45% and 60%; and discount rate of 15% (see 2.2 of Appendix F) Termination Treatment

50 RFP, PPA & GA Negotiation Process. Non PPP project PPP - CJPP Negotiation Method Only with the winning Bidder With all bidders through 1 on 1 meeting Process of RFP issuance (Request for Proposal) PPA Negotiation process GA negotiation and issuence process. Transparency of the negotiation process One time issuance. Conducted after appointment / award of winner, only with the winning bidder. PPA is signed after negotiation process Negotiation and clarification of PPA continues until Financial Close Conducted after appointment / award of winner, only with the winning bidder. Only with the winning bidder Amended RFP through negotiation and 1 on 1 meeting Conducted before Bid Date with all bidders. PPA will be signed after awarded of winner No more clarification nor negotiation after awarded of winning bidder Conducted before Bid Date with all bidders Open to all bidders

51 Beberapa Issues dari Investor Isu Uraian Posisi Bahasa kontrak PPA menggunakan Bahasa Inggris dan Bahasa Indonesia, dimana Bahasa Indonesia menjadi acuan utama dalam hal dispute Mengikuti peraturan perundang-undangan Cakupan definisi Government Instrumentalities Tidak mencakup badan pemerintah dibawah daerah tingkat 2 (kabupaten/kotamadya) Mencakup perpanjangan pemerintah dibawah Pemda Kabupaten/Kotamadya Pengadaan lahan Permintaan dari bidders agar melakukan fasilitas ipengadaan lahan Lahan tetap tanggungjawab IPP

52 Thank You