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    8.9.2 Enterprise Structure and Licensing Requirements

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    Osman Zaheer
    This document outlines the financial requirements for renewable energy projects in Pakistan, including: 1) Bank guarantees required for letters of intent and letters of support from government agencies, ranging from 500/MW to 2,500/MW depending on project size and solicitation. 2) Reimbursement of feasibility study costs by government for public sector projects and based on actual costs for private sector. 3) Legal fees capped at various amounts depending on project size, from $20,000 to $100,000. 4) Note that upon financial close, projects provide a letter of credit as a performance guarantee as specified in the PPA instead of the original guarantee provided for the letter of support.

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    8.9.2 Enterprise Structure and Licensing Requirements

    Uploaded by

    Osman Zaheer
    17 views1 page
    This document outlines the financial requirements for renewable energy projects in Pakistan, including: 1) Bank guarantees required for letters of intent and letters of support from government agencies, ranging from 500/MW to 2,500/MW depending on project size and solicitation. 2) Reimbursement of feasibility study costs by government for public sector projects and based on actual costs for private sector. 3) Legal fees capped at various amounts depending on project size, from $20,000 to $100,000. 4) Note that upon financial close, projects provide a letter of credit as a performance guarantee as specified in the PPA instead of the original guarantee provided for the letter of support.

    Original Description:

    Renewable Energy Policy

    Original Title

    REpolicy 34

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    This document outlines the financial requirements for renewable energy projects in Pakistan, including: 1) Bank guarantees required for letters of intent and letters of support from government agencies, ranging from 500/MW to 2,500/MW depending on project size and solicitation. 2) Reimbursement of feasibility study costs by government for public sector projects and based on actual costs for private sector. 3) Legal fees capped at various amounts depending on project size, from $20,000 to $100,000. 4) Note that upon financial close, projects provide a letter of credit as a performance guarantee as specified in the PPA instead of the original guarantee provided for the letter of support.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    17 views1 page

    8.9.2 Enterprise Structure and Licensing Requirements

    Uploaded by

    Osman Zaheer
    This document outlines the financial requirements for renewable energy projects in Pakistan, including: 1) Bank guarantees required for letters of intent and letters of support from government agencies, ranging from 500/MW to 2,500/MW depending on project size and solicitation. 2) Reimbursement of feasibility study costs by government for public sector projects and based on actual costs for private sector. 3) Legal fees capped at various amounts depending on project size, from $20,000 to $100,000. 4) Note that upon financial close, projects provide a letter of credit as a performance guarantee as specified in the PPA instead of the original guarantee provided for the letter of support.

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    © All Rights Reserved
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    of 1

    e.

    Bank Guarantee for


    issuance of Letter of Intent
    (LoI) by AEDB/Provincial/
    AJK Government:
    Solicited projects 500/MW nameplate capacity or bid bond-
    specified
    Unsolicited projects 500/MW nameplate capacity
    f. Reimbursement of public As determined Payable prior to
    sector feasibility study cost, by AEDB/ issuance of LoS,
    if applicable Provincial/AJK based on actual costs
    Government incurred, up to
    maximum ceiling
    Reimbursement of private As per cost
    sector feasibility cost, if ascertained by
    applicable AEDB from
    relevant
    accounts
    g. Performance Guarantee for Payable upon
    issuance of Letter of approval of power
    Support (LoS) by AEDB/ purchase tariff by
    Provincial/AJK Government: NEPRA
    Solicited projects 2,500/MW capacity
    Unsolicited projects 2,500/MW capacity
    h. Legal fees Subject to a cap of US$ 100,000 for
    projects above 50 MW, US$ 50,000 for
    projects in the range of 6-50 MW,
    US$ 20,000 for projects in the range of
    1-5 MW, and no charge for projects of
    capacity below 1 MW

    Note: Upon financial close, the IPP will provide a letter of credit to the power purchaser as
    performance guarantee as specified in the PPA (US$ 3/kW per month), subsequent to which the
    original Performance Guarantee furnished at the time of issuance of the LoS shall be released.

    8.9.2 Enterprise Structure and Licensing Requirements


    Each IPP setting up a plant meant only for supplying power to the utility
    grid will be required to form a company in accordance with the laws of
    Pakistan under the Companies Ordinance, 1984, for the specific
    purpose of power generation and obtain a generation license from
    NEPRA. However, producers who wish to establish plants which are
    not exclusively for sale to power utility (e.g., captive or dedicated plants
    with or without grid spillover provision) may not form such a special
    purpose company. Small producers of installed capacity less than or
    equal to 5 MW not connected to the grid (i.e., standalone captive or

    Policy for Development of Renewable Energy for Power Generation, 2006 28


    Government of Pakistan

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