Development of Policy, Legal, and Insitutional Framework for - ppiaf

Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi
Final Report
concept. The developer will procure the coal based on the bid document
approved by PPC, and price agreed by PPC. In the case price is not agreed
by PPC, then PPC will supply the coal for a certain short period of time,
while the developer will re-tender the coal supplier. For more details please
refer to Appendix S of the Model PPA.
D component as Variable O & M in cent USD/kWh, which is indexed 25 %
portion to the US Consumer Price Index (USCPI) and 75 % portion to the
Malawi Consumer Price Index (CPI);
All the Tariff in cents USD/kWh mentioned above, should be based on the following
conditions: (a) AF (availability factor) of 80 % and CF (capacity factor) of 80%, (b)
binding proposed Net Plant Heat Rate table, and (c) 30 years term of the contract.
The structure and pricing mechanism offered in the Proposal will be converted into
structure and pricing provisions in the Appendix G of the Model PPA.
In the PPA, the agreed Tariff/Charge will be stated in Kwacha, while Foreign
Component could be based on a Reference Exchange Rate and adjusted accordingly
from time to time, according to the provision of PPA Appendix G
In addition, provision is made for payment of Start-up Allowances according to the
number of cold starts, warm starts and hot starts.
Cash Flow
The basis of sale and purchase of capacity and energy will fall into two (2) distinct
regimes as follows:
(i)
(ii)
Uniting Phase: This is the Uniting period of the Plant. During the Initial Uniting
Phase, no Capacity Payment will be payable. However, payments will be made
by PPC to the Seller of the Coal components of the Energy Payment for metered
energy during the Uniting period starting from synchronization to PPC grid
provided that the plant continuously operates for more than 6 (six) hours.;
Operating Phase: This is the commercial operation period of the Plant. Capacity
Payments and Energy Payments will be payable for Available Capacity and
metered energy. Start-Up Allowance will also be payable for Start-Ups requested
by PPC in this period.
Project Cost
The Seller should seek to cover the service and repayment of all project debt and to
provide a return on invested equity through the Capital Cost Recovery (CCR)
component of the Capacity Payment.
THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 195