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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
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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
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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
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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
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Instructions to ProjectInstructions to Project
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
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Instructions to ProjectInstructions to Project
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%
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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
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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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ENDEND
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