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:
2 to 4 companies

Lender

Company X

JVA

Company Y

LA

25 % 30%

FUEL
Supply
Contractor

: Fix Operation and

Maintenance Cost

: Fuel Cost

: Variable Operation and

Maintenance Cost.

75% 70%

PPA

(Seller-SPC)

Contract
: Capital cost for Power Plant

Local

IPP

FSA

EPC

Foreign

O&M

Contract

B
EPC
Contractor

D
O&M
Contractor

PLN
(Buyer)

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

a. Presidential Regulation No 67
of 2005, 13 of 2010, and 56 of
2011

b. Presidential Regulation No 78
of 2010

c. Minister of Finance Regulation

No 260/PMK.011/2010

IGGF

Assignment to PT PLN (Persero), to

Accelerate the Development of
Renewable Energy, Coal and Gas Fired
Power Plants

Assignment to PT PLN (Persero), to

Accelerate the Development of
Renewable Energy, Coal and Gas Fired
Power Plants

a. Presidential Regulation No 4
of 2010 and 48 of 2011

Guarantee for Infrastructure Project

with scheme of the Cooperation with
Private Developer through
Infrastructure Entity Guarantor

b. Minister of Finance Regulation

No 139/PMK.011/2011

Procedures for Providing the Business

Viability Guarantee of PT PLN (Persero) for
the Development of Renewable Energy,
Coal and Gas Fired Power Plants through
the Cooperation with Private Electricity
Developer

c. Minister of Energy and Mineral

Resources Regulation No 15 of
2010 and 01 of 2012

List of Projects of the Acceleration

Development of Renewable Energy, Coal
and Gas Fired Power Plants

Procedures for Providing Guarantee

for Infrastructure Project through
Public Private Partnership Scheme

Financiers

GOI

(ECA / Banks)

Financiers

GOI

GA

(ECA / Banks)
BVGL

FA

FA

RA

PLN

PPA

IPP
Company

PLN

PPA

IPP
Company

Update 1 Augt 2013 No. 21/2013

12169 MW : 46 HEPP, 6 GeotPP, 7 CPP
GA = Guarantee Agreement
RA = Recourse Agreement

PPA = Power Purchase Agreement

FA = Financing Agreement

BVGL = Business Viability Guarantee Letter

IGGF = Indonesia Infrastructure Guarantee Fund

GOI = Government of Indonesia

GENERAL INFORMATION
PPP Project Procurement Processes

Compensation
scheme

PPA

IIGF
Guarantee Preparation

Preparation

Transaction
Advisory
Procurement

Bidding

Transaction Advisory
Business Scheme
RFP Proposal
Bid Evaluatin

Financing

Construction

Operation

Renewable IPP Projects

Procurement Process

Geothermal (FTP2):
Assignment from
MEMR

PPA Discussion /
Negotiation

PPA Signing

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)
Acquire Location Permit
from Local Government

Heads of Agreement / LoI

PLN submit Application for

Price Approval (PA) to
MEMR

Negotiation Process
Submit Proposal & FS to
PLN
(DIV SIS & DIV EBT)

Issuance of PA from MEMR

Request for Proposal Process

Pre Qualification Process

Review by PLN
(System
Requirement
and RUPTL)

Signing PPA : Escrow

Account, PS 1and IUPTL-S to
be made available

Formation of Negotiating
Committee

More than 1
applicant

Only 1
applicant

Tender Process

Direct Appointment
Process

Issuance of DA from MEMR

PLN submit Application for

Direct Appointment (DA) to
MEMR

Financing Date (Financial

Close) : : Performance
security II, Financing
Agreement & first
drawdown, EPC contract,
land ownership to be made
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

Financing Stage

Construction
Stage

Operational
Stage

No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Risk
Financing risk
Political risk during financing stage
PLN default risk during financing stage
Failure to achieve financial close
Event of Force Majeure affecting either Seller or PLN
Construction risk
Security risk (e.g. theft, sabotage)
Design risk and construction risk
Political risk during construction
PLN default during construction
Failure to reach the required commercial operation date
Operating risk
PLN default during operation
Coal Supply Force Majeure
Event of Force Majeure affecting Seller
Event of Force Majeure affecting PLN

PIC
IPP
PLN
PLN
IPP
IPP or PLN
IPP
IPP
IPP
PLN
PLN
IPP
IPP
PLN
PLN
IPP
PLN
8

Contact Us

Divisi Pengadaan IPP

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

: 021 722 7049

: 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