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ARTICLE 2. Scope of work.The Consultant shall undertake the timely, complete, economical and inaccordance with the current state of the art execution of the Project:«Consulting Services for the development of PPC’s natural gas sourcingstrategy».The services to be rendered by the Consultant are described as follows:2.1. European Experience - Benchmarking.The gas market liberalization in other European countries, following theenforcement of EU Directives 1998/30 and 2003/55 shall be reviewed.Emphasis shall be given to:- Countries having similarities to Greece as regards their natural gasnetwork structure as well as their natural gas markets.- Problems associated with the transition to a liberalized gas market.- Experience from the cases of Power Companies switching fromoperation under monopoly gas-market structures to liberalized gasmarkets.- Natural gas sourcing strategies of Power companies operating underliberalized gas market conditions.2.2. New Legal and Regulatory Framework for the operation of the naturalgas market in Greece – Anticipated impact on the operation of PPC.The existing legal and regulatory framework for the operation of the naturalgas market in Greece shall be reviewed in the context of its impact on theoperation of PPC. Emphasis shall be given to:- The anticipated transition of the Greek natural gas market towardsliberalization.- Points of interest for PPC as regards the regulatory framework for theoperation of the liberalized gas market that is still under development,suggesting possible actions.- Market opportunities under the new conditions.- Assessment of potential risks / implications.- The identification and assessment of potential alternative approachesregarding the natural-gas-supply strategy of PPC under the newmarket conditions.2.3. Existing Natural-Gas-Supply Contract between PPC and DEPA.The terms of existing contract between PPC and DEPA and the DraftContract Proposed by DEPA shall be reviewed regarding:- Their compatibility with the new legal and regulatory framework for theliberalization of the natural gas market.- The possibility / need for modification / adaptation of said terms to therequirements of the new legal framework for the liberalization of thegas market.10
2.4. Gas sourcing strategy.Focusing on the reduction of natural gas cost while maintaining thesecurity of supply, the following options, regarding the Client’s natural gassourcing strategy, shall be reviewed and evaluated:- Purchasing of natural gas from DEPA by means of a renegotiatedcontract. In that context the terms in the latest version of the “DraftNatural Gas Supply Contract for Power Producers” proposed by DEPAshall be reviewed and evaluated.- Purchasing of natural gas from other potential suppliers operating inthe Greek market (includes a preliminary market survey, nationaland/or international, as applicable).- Importing of natural gas by PPC itself.- Potential combinations of the above options.Following the above presentation and review of the available options, themost suitable gas sourcing strategy shall be proposed to PPC.2.5. Strategy Implementation.Action plan and procedures for the implementation of the proposed gassourcing strategy including but not limited to the following:- Support for the renegotiation of the existing Contract with DEPA.- Recommended procedures for evaluation / decision making.- Recommended procedures for contracting the supply of natural gas(e.g. call for tenders, call for the expression of interest, negotiationsetc.)All of the above shall be elaborated in further detail in the technical proposals tobe submitted.Note 1: The technical proposal of the successful Consultant shall constituteAppendix A of the contract to be signed, comprising an integral part thereof.Note 2: All texts pertaining to the Greek legal and regulatory framework for thenatural gas market, the existing Contract between PPC S.A. and DEPA S.A.,the Draft Contract proposed by DEPA S.A. etc. are available only in the Greeklanguage.ARTICLE 3. Deliverables – Milestones.The work of the Consultant shall be summarized and submitted to the Client intwo reports, as follows:11
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