Power Purchase Agreement

Highlight on Risk
Alocation and
Pricing Scheme

Deputy Director For IPP

Contract Management
PT PLN (Persero)

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 Non Geothermal IPPs Having Signed Power Purchase Contract With PLN
Non Geothermal IPPs in Operation
1. Paiton I Coal Fired 2 x 615 MW
2. Paiton II Coal Fired Plant 2 x 610 MW
3. Cilacap Coal Fired Plant 2 x 300 MW
4. Sengkang Gas Fired Plant 1 x 135 MW
5. Palembang Timur Gas Fired Plant 1 x 150 MW
6. Pare-pare MFO Fired Plant 6 x 10 MW

Non Geothermal IPPs under Construction

1. Gunung Megang Gas Fired Plant 2 x 40 MW
2. Embalut Coal Fired Plant 2 x 25 MW
3. Asahan Hydro Plant 2 x 90 MW

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 Geothermal IPPs Having Signed Power Purchase Contract With PLN

Geothermal IPPs in Operation

1. Salak Geothermal Fired 3 x 65 MW
2. Darajat Geothermal Fired 1 x 90 MW
3. Wayang Windu Geothermal Fired 1 x 110 MW
4. Dieng Geothermal Fired 1 x 60 MW

Geothermal IPPs under Construction

1. Darajat Unit 3 Geothermal Fired 1 x 110 MW
2. Kamojang Unit 4 Geothermal Fired 1 x 60 MW
3. Sibayak Geothermal Fired Plant 2 x 90 MW

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 HYDRO POWER PROJECT- IPP

SMALL SCALE HYDRO POWER PROJECTS

( Funded by ADB)
Cap.
No. Project PROVINCE Developer Status
(MW)

1 HEPP PARLILITAN 4X2,50 Sumatera Utara PT MEGA POWER MANDIRI -In Construction

2 HEPP PAKAT 1 2X5,00 Sumatera Utara PT ENERGY MANDIRI -Preparation for Negotiation Process

3 MHPP 2X2,10 Sumatera Utara PT INPOLA MEKA ELEKTRINDO -Preparation for Negotiation Process
PARLUASAN

4 HPP LEBONG 4X3,00 Bengkulu PT MEGA POWER MANDIRI --Preparation for Negotiation Process

5 HPP TANGKA 2X4,40 Sulawesi Selatan PT SULAWESI MINI HIDRO POWER --Preparation for Negotiation Process
( Manipi)

6 MHPP RANTEBALLA 2X2,20 Sulawesi Selatan PT FAJAR FUTURA INDAH -Negotiation Process

7 HPP TELUN BERASAP 2X4,00 Jambi PT MABRUK SARANA INTERBUANA --Negotiation Process

8 MHPP MABUYA 3X1,00 Sulawesi Utara PT CIPTA DAYA NUSANTARA -Yearly PPA
-In Construction

9 MHPP NGOALI 1,2 Maluku Utara PT COGINDO -Study / Survey Process

10 MHPP GOAL 1,20 Maluku Utara PT COGINDO --Study / Survey Process

11 MHPP IRA 1,00 Maluku Utara PT COGINDO --Study / Survey Process

12 MHPP RONGI 2X0,75 Sulawesi Tenggara PT COGINDO --Study / Survey Process

13 MHPP MANARUNG 1X100 Kalimantan Timur PT COGINDO --Study / Survey Process

14 MHPP PURUI 2X0,800 Kalimantan Selatan PT COGINDO --Study / Survey Process

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 SMALL SCALE HYDRO POWER PROJECTS
( Funded by ADB)

Location
Capacity
Project Status
(MW)
Province Load Center

MHEPP Merasap 2 x 0.75 West Kalimantan Bengkayang Tender Process

MHEPP Lobong 2 x 0.8 North Sulawesi Kotamobagu Tender Process

HEPP Poigar 2 2 x 16 North Sulawesi Minahasa System Tender Process

MHEPP Mongango 1.2 Gorontalo Gorontalo Tender Process

MHEPP Prafi 1.6 Papua Manokwari Tender Process

MHEPP Tatui 1.2 Papua Serui Tender Process

MHEPP Amai 1.1 Papua Depabre Tender Process

HEPP Genyem 2 x 9.6 Papua Jayapura System Tender Process

MHEPP Santong 0.85 NTB Lombok System Tender Process

MHEPP Ndungga 2 x 0.95 NTT Ende Tender Process

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 Power Purchase Contract of Non Geothermal IPP [Hydro, Coal Fired,
Gas Fired]

Offtaker
PLN
Power Purchase
Agreement
(“PPA”)

Fuel Spply Agreement

Seller (“FSA”)

LENDER Special Purpose Fuel

Company (“SPC”) Supplier
Loan Agreement

EPC Contract
EPC Contract

Engineering,Procurement, O&M
Construction (“EPC”) Contactor
Contactor

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 Power Purchase Contract of Geothermal IPP [Hydro, Coal Fired, Gas Fired]

Offtaker
PLN
Energy Sales
Contract (“ESC”)

Joint Operation
Seller Contract (“JOC”)

LENDER Pertamina Company

(Contractor to
Loan Agreement Pertamina)

EPC Contract
EPC Contract

Engineering,Procurement, O&M
Construction (“EPC”) Contactor
Contactor

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 Price Structure of IPP
Price for Non Geothermal IPP is consisted
by 2 main part:
- Fixed Payment: for recovery fixed cost such as debt services,
fixed O&M, equity return
- Variable Payments: fuels cost and variable O&M
- Fixed and Variable escalated according to CPI

Price for IPP Geothermal is consisted by 2

main part:
- One Price escalated according to CPI or PPI, and to exchange
rate fluctuation

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Price Structure for Geothermal IPP

„ 4.45 c/kWh

„ Escalation Factor
… 45 % Not Escalated
… 55 % escalated according to CPI

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 Example of Price structure
Coal Fired Power Plant
Comp Price Abb. Appendix G
(c$/kWh)
A 3.00 CCR 2,496,600 Rp/kw year
B 0.30 FOMRl 142,500 Rp/kw year
FOMRf 142.500,- Rp/kw year
C 1.61 152.95 Rp/kwh

2300 kcal/kWh
Fuel Price 35 US$/ton
HHV 5000 kcal/kg

D 0.10 VOMRl 7,13 Rp/kwh

VOMRf 2,37 Rp/kwh
Total 5.01 VOMRl 475.95 Rp/kWh
VOMRf
B and D escalated according to CPI Base Exchange Rate
Coal price is passthrough to PLN 9500 Rp/USD
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Principle Terms of Condition
of the PPA

Between PT PLN (PERSERO)

and
IPP

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Term of • 30 years contract duration for Coal Fired and Hydro IPP
Agreement • 20 Years contract for Gas Fired IPP

Implementations Seller Responsibility:

of Project • To prepare Construction Contract, Technical Assistant Agreement, Fuel
Supply Contract, Financing Agreement and others agreements entered
into by Seller in connection with PPA.
• Arranging for the design, engineering, fuel and energy supply and
construction of the project in accordance with the design and equipment
parameter for power plant.
• To obtain, all Consents, all renewals thereof, from Government that are
required to be in Seller's name.
• To obtain, all work permits other permits required for all individuals
involved in the Project on behalf of or pursuant to contracts with Seller.
• The take all measures within its control required to ensure the
protection and security of the Site.
• Delivery to PLN promptly, true and complete copies of each of the
Project Documents and other documents and other agreements required
be entered into on or prior to the Financing Date, as the case may be
and to which PLN is not a party.
• Using all reasonable efforts to cause the initial borrowing under the
Senior Debt to have occurred after the date as stipulated in the contract.
• Delivery to PLN on or prior to the signing of the Agreement a
Performance Security Stage I, and prior to the Financial Date a
Performance Security Stage II. 12
Implementations PLN Responsibility:
of Project
•Coperating with Seller in the identification of the applications
of Seller and promoting and supporting such applications,
including providing reasonable assistance in the preparation
thereof, so as to expedite the consideration thereof by the
appropriate Governmental Instrumentality.
•To obtain, all Consents, all renewals thereof, and any other
Governmental Authorizations that are required to be in PLN's
name in connection with the transactions contemplated by this
Agreement;
•As reasonably requested by Seller, discussing the Project with
and providing publicly available information about PLN to
financial institutions interested in providing financing for the
Project.

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Start Up and •Seller shall not energize or back-feed 150kV power into the
Commissioning Plant without the prior written approval of PLN's
Representative and Seller shall notify PLN of the initial
energization at least thirty (30) Days prior to the proposed date
of energizing the 150 kV switchyards and back-feeding power
to the Plant.

Operation and •Seller shall also operate the Plant in accordance with the
Maintenance Operating Procedures and the Dispatch Instructions, subject to
the Technical Limits.
•The Parties shall establish an Operating Committee comprising
four (4) members, two (2) appointed by each of Seller and PLN.
•Seller shall provide to PLN a proposed schedule of Net
Dependable Capacity Test for each unit and all unit, not later
than sixty (60) Days prior to the Scheduled Commercial
Operation Date of first unit.

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Sale & • Prior to the Commercial Operation Date, Seller shall make
Purchasing available to PLN and PLN shall purchase the Net Electrical
Output of the Plant from Seller.
• From and after the Commission Date of the first operating unit
until the Commercial Operation Date, Seller shall make
available to PLN, and PLN shall purchase from Seller the NDC
and NEO of such unit.
• In the event Seller shall be unable to conduct the NDC Test for
a Unit or Units because of any action or failure by PLN or any
Governmental of RI or an Event of Force Majeure affecting the
PLN Grid System or other PLN owned facilities for more than
six (6) hours continuously, then PLN shall compensate the
Seller the NDC equivalent to CC MW with Actual Availability
Factor (AFa) deemed to be 80% for each Unit.
• If such Unit thereafter when tested at less than CC MW, then
the amounts paid by PLN during the period of deemed
commissioning in excess of the amount that PLN would have
had to pay if the Plant, had been deemed commissioned at a
NDC as so commissioned shall be credited against future
payments.

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Billing and • On initial of payment process, Seller submit the invoice (provisional
Payment invoice) for such billing period. The content of such invoice are :
(Exchange Rate) nominal NDC, NEO dan Emergency Output made available to PLN
based on metering reading.
• The amount of such invoice is divided into A, B, C and D
components for both Rp. and USD portion.
• In the event PLN disputes any portion of an Invoice, PLN may refer it
to an expert. No previously undisputed Invoice or payment may be
disputed more than twelve (12) months after the Payment Date of
such Invoice.
• Late payments by either Party shall bear interest at the Late Payment
Interest Rate from the date on which such payment was originally
due until the date that such payment was made.

Insurance Seller shall obtain and maintain insurance policies with respect to
power generating facilities of similar size, technology, location and
long term relation to the power purchaser, including general coverage
and workmen’s compensation. The Seller shall pay the premi amount.

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Force Majeur • If an event of Force Majeure affects PLN’s ability to accept NDC
and NEO, and after fourteen (14) Days period, the Plant shall be
deemed dispatched to the extent that Seller would have been able
to deliver NEO in accordance with the terms and conditions of the
Agreement. For the occurrence of such Event of Force Majeure
PLN shall continue to be obligated to make payments for NDC of
such deemed dispatch.
• If an Event of Force Majeure shall have occurred that results in a
material delay in the completion of the Project or causes material
damage to the Plant, and such Event of Force Majeure is not
normally insured against in accordance with Good Utility Practice,
then both parties shall enter into good faith negotiations to obtain
funding to complete or repair the Plant.
Settlement of • If any dispute arise between the Parties, the Parties shall attempt,
Disputes for a period of thirty (30) Days after the receipt by one Party of a
notice from the other Party of the existence of the Dispute, to
settle such Dispute by mutual discussions between the Parties.
• If the Dispute cannot be settled within the 30-Day period provided
and the Parties so agree in writing, the Dispute shall be referred to
an expert for determination.
• In the event that no written agreement to refer the Dispute to an
expert is reached within thirty (30) Days between the Parties, the
Party who gives the notice of the existence of the Dispute have the
right to directly refer such Dispute to Badan Arbitrase Nasional.
PLN Purchase At any time after the Financing Date through the end of the Term,
Option PLN may exercise an option to purchase , PLN shall give Seller not
less than one hundred eighty (180) Days written notice. 17
Term of • 42 years contract for Geothermal IPP
Agreement • 30 years production period for each unit of Geothermal IPP

Basically most of the major the Terms and Condition of Non Geothermal
IPP contract is also addressed in Geothermal IPP contract but in more
simpler way.

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