Srilanka Power Sector

7/27/2019 Srilanka Power Sector

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Current Status of EntryCurrent Status of Entry

of IPP into the Sri Lankaof IPP into the Sri Lanka

Power SectorPower Sector


2/23

Plants in Operation/CommittedPlants in Operation/Committed

NotNotdefineddefined

163163AESAES KelanitissaKelanitissa **

1671672020Ace PowerAce PowerHoranaHorana **1671672020Ace PowerAce PowerMataraMatara

4204206060Colombo PowerColombo Power15615622.522.5LakdhanaviLakdhanavi

3303305151Asia PowerAsia Power

MGEAMGEA

GWhGWh

CapacityCapacity

MWMW

PlantPlant


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Plants in Operation/CommittedPlants in Operation/Committed

356.5356.5TotalTotal

1601602020AlstomAlstom PowerPower12251225163163AESAES KelanitissaKelanitissa

1671672020AceAce HoranaHorana1671672020AceAce MataraMatara

4204206060Colombo PowerColombo Power

15615622.522.5LakdhanaviLakdhanavi

3303305151Asia PowerAsia Power

EnergyEnergyCapacityCapacityMGEAMGEAGWhGWhCapacityCapacityMWMWPlantPlant

P.P. Rates US $/KWh


4/23

CEBsCEBs first solicitation offirst solicitation ofIPPsIPPs

!! Invitation of Expression of Interests (EOI)Invitation of Expression of Interests (EOI)

from prospective developers for power plantfrom prospective developers for power plant-- 19921992

!!

Proposal by KHDProposal by KHD-- UKUK19921992!! Acceptance of Proposal & Issue of LOIAcceptance of Proposal & Issue of LOI

!!

Negotiation of Project DocumentsNegotiation of Project Documents!! Signing of Project AgreementsSigning of Project AgreementsDec 1996Dec 1996

!!

Commissioning of the PlantCommissioning of the Plant

--

June 1998June 1998


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Unsolicited Proposal by LankaUnsolicited Proposal by Lanka

TransformersTransformers!! Acceptance of the ProposalAcceptance of the Proposal19961996

!! Negotiation of the Project AgreementsNegotiation of the Project Agreements

!! Signing of Project AgreementsSigning of Project AgreementsDec 1996Dec 1996

!! Commissioning of the PlantCommissioning of the PlantNov 1997Nov 1997


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Requests for Proposals for a BargeRequests for Proposals for a Barge

Mounted Power PlantMounted Power PlantDec 1994Dec 1994!! Evaluation of Commercial & Technical ProposalsEvaluation of Commercial & Technical Proposals

!! Evaluation of Financial ProposalsEvaluation of Financial Proposals!! Selection of 2 Parties for further negotiationsSelection of 2 Parties for further negotiations

!! Initial Negotiation of Project AgreementsInitial Negotiation of Project Agreements

!! Issue of new Draft Agreements to both partiesIssue of new Draft Agreements to both parties

!! Second Stage Financial ProposalsSecond Stage Financial Proposals

!! Issue of LOIIssue of LOIMay 1997May 1997-- & Final Negotiations& Final Negotiations

!! Signing of Project AgreementsSigning of Project AgreementsFeb 1999Feb 1999

!!

Commissioning of the PlantCommissioning of the PlantJuly 2000July 2000


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Requests for Proposals forRequests for Proposals for

Combined Cycle Power PlantCombined Cycle Power PlantOctOct

19951995!! Evaluation of Commercial & Technical ProposalsEvaluation of Commercial & Technical Proposals

!! Evaluation of Financial ProposalsEvaluation of Financial Proposals!! Issue of LOIIssue of LOI

!!

Negotiation of Project AgreementsNegotiation of Project Agreements

!! GOSL agrees to provide counter guarantee for a PRG to beGOSL agrees to provide counter guarantee for a PRG to be

provided by ADBprovided by ADB

!! Signing of Project AgreementsSigning of Project AgreementsJune 2000June 2000!! Scheduled CompletionScheduled Completion

!! Open Cycle OperationOpen Cycle OperationJune 2002June 2002

!! Combined Cycle OperationCombined Cycle OperationMay 2003May 2003


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Requests for Proposals for MediumRequests for Proposals for Medium

Term Power PlantsTerm Power PlantsJuly 1997July 1997!! Evaluation of Commercial & Technical ProposalsEvaluation of Commercial & Technical Proposals

!! Evaluation of Financial ProposalsEvaluation of Financial Proposals!! Issue of LOIIssue of LOIAug 1999Aug 1999

!!

Negotiation of Project DocumentsNegotiation of Project Documents

!! Signing of Project DocumentsSigning of Project DocumentsAug 2000Aug 2000

!! Commercial OperationCommercial Operation

!! MataraMatara PlantPlantMarch 2002March 2002

!! HoranaHorana (Relocated from(Relocated from AnuradhapuraAnuradhapura))Dec 2002Dec 2002


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New ProjectsNew Projects

!! Medium Term Power PlantsMedium Term Power Plants -- 200 MW200 MW

!! Requests for ProposalsRequests for Proposals -- April 2002April 2002

!! Commercial & Technical Evaluation in ProgressCommercial & Technical Evaluation in Progress

!!

Scheduled Commercial OperationScheduled Commercial OperationDec 2003Dec 2003!! KerawalapitiyaKerawalapitiya Combined Cycle Power PlantCombined Cycle Power Plant

300 MW300 MW

!! PrePre--QualificationQualification -- June 2002June 2002

!! Scheduled Commercial OperationScheduled Commercial OperationJan 2005Jan 2005


10/23

Structure of the RFP DocumentsStructure of the RFP Documents

!! Instructions to Project ProponentsInstructions to Project Proponents

!! Proposal Letters & FormsProposal Letters & Forms

!! Model Power Purchase AgreementModel Power Purchase Agreement

!! Model Fuel Supply AgreementModel Fuel Supply Agreement

!! Model Implementation AgreementModel Implementation Agreement


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Instructions to ProjectInstructions to Project

ProponentsProponents!! General InformationGeneral Information

!! Detailed Instructions for BiddingDetailed Instructions for Bidding!! Structure of the ProjectStructure of the Project

!! Bidding ProcedureBidding Procedure!! Technical & Commercial DataTechnical & Commercial Data

!! Financial DataFinancial Data

!! SecuritiesSecurities

!! Government IncentivesGovernment Incentives


12/23


ProponentsProponents!! Technical Descriptions & Performance SpecificationsTechnical Descriptions & Performance Specifications

!! Proven TechnologyProven Technology!! Technical InformationTechnical Information

!! InterconnectionInterconnection

!! Fuel & Lube OilFuel & Lube Oil

!! Environmental ConsiderationsEnvironmental Considerations

!!

Environmental RequirementsEnvironmental Requirements!! Control of EmissionsControl of Emissions

!! Archaeological RequirementsArchaeological Requirements


13/23


ProponentsProponents!! Qualifications of the Project ProponentsQualifications of the Project Proponents

!! Evaluation CriteriaEvaluation Criteria!! Outline of Evaluation ProcedureOutline of Evaluation Procedure

!!

First Stage Evaluation: ResponsivenessFirst Stage Evaluation: Responsiveness!! Second Stage Evaluation: Commercial & TechnicalSecond Stage Evaluation: Commercial & Technical

EvaluationEvaluation

!!

Third Stage Evaluation: Financial EvaluationThird Stage Evaluation: Financial Evaluation


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Project AgreementsProject Agreements

!! Power Purchase Agreement (PPA)Power Purchase Agreement (PPA)

!! Fuel Supply Agreement (FSA)Fuel Supply Agreement (FSA)

!! Implementation Agreement (IA)Implementation Agreement (IA)


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Risks Assumed by GOSL / CEB /Risks Assumed by GOSL / CEB /

CPCCPC!! Political ForcePolitical Force MajeureMajeure RisksRisks

!! Exchange Rate Variation RisksExchange Rate Variation Risks

!! Fuel Price Variation RisksFuel Price Variation Risks

!! Change in Law RisksChange in Law Risks


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Tariff StructureTariff Structure

!! Capacity ChargeCapacity Charge

!! Repayment of Debt and Return to EquityRepayment of Debt and Return to Equity(non(non escalableescalable))

!! Fixed O&MFixed O&M

((escalableescalable))

!! Energy ChargeEnergy Charge

!!

Variable O&MVariable O&M((escalableescalable))

!! Fuel CostFuel Cost

(Pass through)(Pass through)


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Type of ContractsType of Contracts

!! Energy Based ContractsEnergy Based Contracts

!! Minimum Guaranteed Energy Amount (MGEA)Minimum Guaranteed Energy Amount (MGEA)

!!

Availability Based ContractAvailability Based Contract!! Plant Availability GuaranteePlant Availability Guarantee


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Guarantees By CEBGuarantees By CEB

!! Payment of Capacity Charge up to MGEA for EnergyPayment of Capacity Charge up to MGEA for EnergyBased Contracts & for availability in availabilityBased Contracts & for availability in availability

based contractsbased contracts!! Guarantee of Payment for Political ForceGuarantee of Payment for Political Force MajeureMajeure

SituationsSituations

!! Guarantee of Payment for Fuel Supply CurtailmentsGuarantee of Payment for Fuel Supply Curtailments!! Compensation Guarantees under Changes in LawCompensation Guarantees under Changes in Law

SituationsSituations

!! Buyout under Termination due to non default by theBuyout under Termination due to non default by theCompanyCompany


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Guarantees By GOSLGuarantees By GOSL

!! Guarantee of Payment Obligations of the CEBGuarantee of Payment Obligations of the CEB


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Total Installed capacity = 1838 MW

Hydro = 1137 MW

Thermal = 453 MW

Wind = 3 MW

IPP = 186 MWEnergy GenerationEnergy Generation

February 2001February 2001

CEB Thermal

32.70%

CEB Hydro40.00%

Wind

0.02%

Lakdhanavi

2.49%

LakdhanaviEmergency

2.19%

Colombo Power

7.51%

Aggrekko

8.08%

Mini Hydro

0.55%

Asia Power

5.62%

Kool Air

0.84%


21/23

2,654

3,360

10,70211,899

0

2,000

4,000

6,000

8,000

10,000

12,000

1998 1999 2000 2001

Rs. million

CEBs Oil ExpenditureCEBs Oil Expenditure


22/23

7.89

2.55

7.64

1.80

6.04

3.37

3.09

3.83

3.41

2.96

3.83

2.41

4.29

6.14

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Lakdhanavi

Emergency

Kool Air Aggrekko Asia PowerColombo

Power

LakdhanaviMini HydroCEB Thermal

Power Purchase RatesPower Purchase Rates

February 2001(Rs/kWh)February 2001(Rs/kWh)

Capacity Charge

Energy Charge


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