PROCEDURE IN

RENEWABLE IPP PROCUREMENT

Jakarta, 5th September 2013

CONFERENCE OF INDONESIAN ELECTRICAL POWER SOCIEY (CIEPS) 2013

 GENERAL IPP BUSINESS SCHEME
Special Purpose Company (SPC) to be formed

Consortium:
Lender
2 to 4 companies
Company X Foreign
JVA LA
Company Y Local
25 % 30%
A 75% 70%

FUEL
FSA
IPP PPA PLN
Supply
Contractor (Seller-SPC) (Buyer)
C
EPC O&M
Contract Contract

A : Capital cost for Power Plant

B D
B : Fix Operation and
Maintenance Cost EPC O&M
C : Fuel Cost Contractor Contractor
D : Variable Operation and
Maintenance Cost.
Regulatory Frameworks
2 schemes of Government Guarantee
Public Private Partnership (PPP) Project Fast Track Program 2 (FTP2) Project
Guarantee Agrement between GOI-IGGF-Developer Business Viability Guarantee Letter from GOI to Developer
Assignment to PT PLN (Persero), to a. Presidential Regulation No 4 Assignment to PT PLN (Persero), to
a. Presidential Regulation No 67
Accelerate the Development of of 2010 and 48 of 2011 Accelerate the Development of
of 2005, 13 of 2010, and 56 of
Renewable Energy, Coal and Gas Fired Renewable Energy, Coal and Gas Fired
2011
Power Plants Power Plants

b. Minister of Finance Regulation Procedures for Providing the Business

Guarantee for Infrastructure Project
b. Presidential Regulation No 78 No 139/PMK.011/2011 Viability Guarantee of PT PLN (Persero) for
with scheme of the Cooperation with
of 2010 the Development of Renewable Energy,
Private Developer through
Coal and Gas Fired Power Plants through
Infrastructure Entity Guarantor
the Cooperation with Private Electricity
Procedures for Providing Guarantee Developer
c. Minister of Finance Regulation
No 260/PMK.011/2010 for Infrastructure Project through
c. Minister of Energy and Mineral List of Projects of the Acceleration
Public Private Partnership Scheme
Resources Regulation No 15 of Development of Renewable Energy, Coal
2010 and 01 of 2012 and Gas Fired Power Plants

Financiers GOI Financiers

IGGF GOI (ECA / Banks) (ECA / Banks)
GA BVGL
FA FA
RA

PPA IPP
PLN PPA IPP PLN
Company Company
Update 1 Augt 2013 No. 21/2013
12169 MW : 46 HEPP, 6 GeotPP, 7 CPP
GA = Guarantee Agreement PPA = Power Purchase Agreement BVGL = Business Viability Guarantee Letter GOI = Government of Indonesia
RA = Recourse Agreement FA = Financing Agreement IGGF = Indonesia Infrastructure Guarantee Fund
GENERAL INFORMATION
PPP Project Procurement Processes

Compensation
scheme PPA
IIGF
Guarantee Preparation

Preparation Bidding Financing Construction Operation

Transaction Transaction Advisory

Business Scheme
Advisory RFP Proposal
Procurement Bid Evaluatin
 Renewable IPP Projects
Procurement Process

Geothermal (FTP2):
Assignment from PPA Discussion /
PPA Signing
MEMR Negotiation

Other than Geothermal (Hydro, Wind, etc):

Procurement Process PPA Signing

Procurement for Renewable IPP Projects above 10 MW

 Renewable IPP Projects
Procurement Procedure (above 10 MW, other than Geothermal)
Heads of Agreement / LoI PLN submit Application for
Acquire Location Permit Price Approval (PA) to
from Local Government MEMR
Negotiation Process

Submit Proposal & FS to Issuance of PA from MEMR

PLN Request for Proposal Process
(DIV SIS & DIV EBT)

Pre Qualification Process Signing PPA : Escrow

Account, PS 1and IUPTL-S to
be made available
Review by PLN
(System Formation of Negotiating
Requirement Committee
and RUPTL)

More than 1 Only 1 Issuance of DA from MEMR Financing Date (Financial

applicant applicant Close) : : Performance
security II, Financing
Agreement & first
Direct Appointment PLN submit Application for drawdown, EPC contract,
Tender Process Direct Appointment (DA) to
Process land ownership to be made
MEMR available
 Electricity Price Structure
Single Price or Capacity & Energy Price
1.Single Price
Electricity price is stated in single price (Rp/kWh orUSD/kWh), covers capital cost,
operating & maintenance and fuel cost (primary energy).
Payment = Electricity price (Rp/kWh) x Electricity Production (kWh)
Some are linked with consumer index

2.Capacity & Energy Price

Capacity Price (linked with Availability Factor (AF, in %)):
Component A : Capital cost for Power Plant .
Component B : Fix Operation and Maintenance Cost.
Component E : Capital cost for transmission line.
Energy Price (linked with Electricity Production (kWh)):
Component C : Fuel Cost
Component D : Variable Operation and Maintenance Cost.

7
 Risk Allocation in PPA
PLN and IPP

Stage No. Risk PIC

1 Financing risk IPP
2 Political risk during financing stage PLN
Financing Stage 3 PLN default risk during financing stage PLN
4 Failure to achieve financial close IPP
5 Event of Force Majeure affecting either Seller or PLN IPP or PLN
6 Construction risk IPP
7 Security risk (e.g. theft, sabotage) IPP
Construction 8 Design risk and construction risk IPP
Stage 9 Political risk during construction PLN
10 PLN default during construction PLN
11 Failure to reach the required commercial operation date IPP
12 Operating risk IPP
13 PLN default during operation PLN
Operational
14 Coal Supply Force Majeure PLN
Stage
15 Event of Force Majeure affecting Seller IPP
16 Event of Force Majeure affecting PLN PLN
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 Contact Us

Divisi Pengadaan IPP

PT PLN (Persero) Kantor Pusat
Jl. Trunojoyo Blok M I/135, Kebayoran Baru
Jakarta Selatan 12160

Telp : 021 722 7049

Fax : 021 725 1511
www.pln.co.id

Booklet Pengadaan IPP dapat di-download di link berikut:

http://www.pln.co.id/dataweb/ipp/bookletipp.pdf
THANK YOU