Post on 10-May-2023
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CONFIDENTIAL
Dated \'r s- 2014
POWER PURCHASE AGREEMENT
relatlng to the 128MW Freetowngeneration prolect in theRepubllc of Sierra Leone
1
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Contents
Clause
1 Definitionsandinterpretation...
Page
.,,,.....2
2 Effective Date, lmplomentation of the Generation Proiect and Term 20
22
28
31
34
43
46
Construclion of the Plant.....................
4 Performanc€ Bonds and construction de|ay.......,...
5 Consbuction delays excused by Relief Events
6 Operation of the Plant
7
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8 Sale a(d p.qrchase of Net Dep€ndabfe'Capacity and Net Output..........,...
10 Othsr obligations
11 Forc6 Maleure Events ........,.....
13 Relnstatement of phlaical damage....
16 Represontations
17 Governing lawand Dispute r€solutlon
Schedule 1 Description of the Plant
Schedule 4 Commissioning and Testlng
14 Earlytormination...
1 5 Offtaker operational step-in.....,,.....,...
50
59
63
65
69
70
71
78
90
s9
18 Miscelianeous.......
Schedule 5 Matering Standards and Testing
Schedule 8 Tariff..
Schedulo 9 lnsurance.............
. 103
100
109
112
114
117
129
132
2
Schedul6 10 Siena Leone Local Content Policy...........,.,...........
Schedule 2 Interconnection Facilities and Connection Point ...........
Schedule 3 Fuel Specifications
Schedule 7 Form of Performancs Bond
Schodule 11 Transfer on terminatlon .................. ...,.,.............. 134
Schedulo 12 Governmenl support provlsions .............,........... 139
Schodule 13 Mileston€ Dates ..............,.,.... 165
Schedule 14 Handback Prov1s1ons.................... ......................166
Schedule 15 Collection Account Einclples.....,., .........,.......,,... 168
Schedule'16 New Transmlssion Faoilities........, .,,,..,............... 169
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THIS POWER PURCHASE AGREEMENT is dated 2014 and made between:
(1) THE GOVERNMENT OF THE REPUBLIC OF SIERRA LEONE, ACTING BYTHE MINISTRY
oF FINANCE AND ECONOMIC DEVELOPMENT AND BY THE MINISTRY OF ENERGY (the
Gov€rnmsnt);
(2) NATIONAL POWER AUTHORITY, tha body corporate established under the National Power
Authority Act 1982 and having its rogistered office at Elecficity House, 36 Siaka Stevens Street
Freotown, Siena Leone (NPA);
(3) CEC AFRICA (SL) LIMITED (formerly BIuo Flare Power SL (BVl) Limited)a company
incorporated under the laws of the British Virgin lslands (CECA BVI);
(4) CEC AFRICA (SL) LIMITED a company lncorporated undar the laws of Siera Leone (CECA
SL); and
(5) CECA SL GENERATIoN LlMlTEo a company incorporated under th6 laws of Siorra Leone
(the c€norator).
RECITALS
(A) The Government awarded ths Existing Project Documents to CECA BVI in 2011, rvtich
provided for the construction and oporation of new power generation capacity and the
development of the electriclty transmission grid in the Western Area of Siena Leone.
(B) Tha Government, NPA and CECA BVI signed a term sheet dated 14 May 2013 and the
Government, NPA, CECA BVI and CECA SL entered lnlo a memorandum of understanding
daled 14 November 2013, which specified that certain amendments would be made to some of
th6 Existing Project Documants.
(C) At the request of the Government, lhe intention of the Parties is now that this Agreement will
replace ths Existing Project Documents with effoct from the Effective Date in accordanc€ wlth a
deEd of termination to be entersd into belwgen the Parties on or before the Effective Date.
(D) Thls Agreement provides for the construction and operation of the Plant, the sale and purchase
of lhe firm capacity and electrical output of the Plant, the construction of tha New Transmission
Facilities to the Offtaker, fie transfer of the Plant and the New T.ansmission Facilitles to the
Government at lhe end of the Term and certain relaled matters.
(E) The Offtaker acknowiedges that the Generator and ths Shareholders are or will invest and
undertake slgnlficant financial r6sourc€s and risks ln connection Mth the Generation Project.
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(F) ln recognition of those risks and the economic and social importance of the Generation Project
to Sierra Leone, this Agreement also contains incentives, assurances and protections granted
by the Govemment which are indispensabl6 to the realisatlon of the Generation Proiect.
THE PARTIES AGREE as follows:
1 Definitions and interpretation
1.1 Definitions
ln this Agreement:
Abandons means that the Generator permanently abandons the development or construclion
of Phase I prior to the Phase I Commercial Operation Date, other than where this is due to a
Force Majeure Event or O{ffaker Risk Event;
Affiliat€d O&M Gontractor means any O&M Contractor in which a Sponsor holds a direct or
indirect controlling interest;
Agreement means this Power Purchase Agreement;
Annual Test means the annual performance lest of the Plant undertaken in accordance with
Clause 6.8 (Annual Tests);
Back-up Output Meterlng Systems means the back-up electronic metering systems for
metering Net Output located at the Delivery Point;
Bllling Period means each perlod of one calendar month which falls in whole or in part within
the period starting on th6 Phase I Commercial Operation Date and ending on the last Day of the
Term;
Business Day means a day (other than Saturday or Sunday) on which banks are open forgeneral business in Freetown and London and, if a payment is to be made, which is also a day
on whlch banks are open for general businoss in New York;
Capacity Charge has the meaning given to it in Schedule 8 Cfariff);
Capaclty Short all means, in respect of a Phase, the relevant Contracted Capacity minus tho
Net Dependable Capacity of that Phase as at the date that falls 270 Days after the commercial
operation date for that Phase as established by the coD Test or an Additional rest for that
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Phase;
Addltlonal Test means an additional performance test of the Plant undertaken in accordance
with Clause 6.9 (Additional Tests);
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Casually Occurronce means material physioal damage to all or part of the Plant that renders it
unfil for normal operation in accordance with this Agreement;
Change ln Law means any of the following events occurring after the Signing Date:
(a) the enactment, promulgation, issue or commencement of a new Law;
(b) an amendment, modification, extension, replacement, re-enactment or repeal of an
existing Law, including:
O a change in any rate of tax;
(ii) a change in or redenominatlon of the laMul currency of Siena Leone; and
(iii) a change in an exchange rate effected by Law; and
(c) a change having the force of law in the application or lnterpretation of a Law;
Change ol Control means the Sponsors ceasing collectively to
(a) own (whether directly or indireclly) at least 50 per cent of the shares in the Generator; or
(b) have the power (whether by voting rights, contract or otherwise) to appoint and remove
the majority of the members of the board of directors of the Generator or otherwise
control ils atfalrs and policies;
but excluding any such cessation conslsting of tho croation or enforcement of any security
under lhe Finance Documents;
Charge Over Recelvables means the Charge Over Receivables to be entered into between
the Government, tho Grid Operator and the Generator as a Condition Precedent, reflecting the
princlples set out in Schedule 15 (Coilection Account principles);
Claim means a claim in conttact or othenvise, including any claim for breach of conlract,
misrepresentatlon or lndemnification, or puasuant to any common law or statutory rights,
covenant or undertaking arising under or ln connection with any provision of this Agreement;
COD Tssts means the performance test of each of Phase l, Phase ll and Phase lll undertaken
in accordance with Clause 3.13 (COD Tests);
Collection Account has the meaning given to it in the Collection Account Agreement;
Gollec-tlon Account Agreement means the collection Account Agreement to be entered into
between the Government, the Grid Operator, the Generator and an account bank as a
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condltion Precedent, reflecting the princlples set out in schedule 15 (collectlon Account
Principles);
condi ons Precodent means the condltlons precedent sel out in clause 2.2 (Conditions
Precedent);
Contracted Capaclty means, for each Phase, the net conlracted capacity which the EPC
Conlraclor agrees to doliver in the EPC Contract;
Contract Year means:
(a) the Phase lContract Period:
(b) the Phase ll Contract Psrlod;
(c) the period slartlng on the Phaso lll Commerciat Operatlon Date and ending on the
following 30 June;
(d) each subsequent period of '12 consecutive Months commencing on 1 July which falls in
full or ln part withln the Term;
COD Capacity Shortfall means, in respect of a Phase, the relovant Contracted Capacity minus
the Net Dependable Capacity of that Phase as established by the COD Test or an Additional
Test for that Phase;
Day means eaoh period of 24 hours beginnlng and ending at 00:00;
Dellvery Polnt means the physlcal delivery polnt or points for the electrical output of the Plant
identmed in Schedule 2 (lnterconnection Facllities and Connectlon Point);
Development Costs means:
(a) all costs incurred by or on behalf of the Shareholders as at the Signing Date in
connection with the Existing Agreements, as audited by KPMG and notmed to the
Govemment prior to the Signing Date; plus
(b) all costs incuned by on or behalf of the Shareholders and the Generator in doveloping the
Generation Project and performing their other obligations under the Project Documents
prior to the date of Financial Close for Phase l;
Dispute means any dispute, difference or claim of any kind or type, whether based on contract,
tort, statute, regulalion or otherwise, arlsing oul of, relating to or connected with this Agreement
or its subject matter, existence, negotiation, interpretation, validity, performanoe, breach,
termination or enforceabllity (including non-contractual disputes or clalms), or any operations
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oarried out pursuant to thls Agreement;
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Duly Completed means the completion of a COD Test, Annual Test or Additional Test in
accordance with Schedule 4 (Commissioning and Testing);
EDSA means the Electrlclty Distribution and Supply Authorlty to be established und6r the
National Eloclricity Act, 2011;
Effectlve Date means the date on which the Condltions Precedent are satlsfied or waived in
accordance with Clause 2.2 (Conditions Precedent)i
EPC Contract means each engineering, procurement and construction contract for lhe Plant
entered into between the Generator and an EPC Contractor;
EPC Contractor means each contractor that enters into an EPC Contract;
Equity lntersst means any:
(a) shares, warrants, subscriplion rights, equity or other ownership interest or rights in the
capital of the Generator, any Shareholder or any Affiliated O&M Contractor;
(b) voting rights in connection with any of the things referred to in paragraph (a);
(c) loans or financial indebtedness advanced to the Generator, any Shareholder or any
Affilialed O&M Contractor by a Shareholder;
Escrow Account has the meaning given to it in the Collection Account Agreement;
Existing Project Documents means
(a) the Project Framework Agreoment dated 21 July2011 betwson tha Govsrnment and
CECA BVI;
(b) the Power Purchase Agreement dated 21 July 2011 between the Government and CECA
BVI; and
(c) the Grid Development and Management Agreement datad 21 July 2011 betwoen the
Government and CECA BVl, as amended by the GDMA Term Sheet and Amendment
dated 26 March 2013;
Expert Determination means the determination of a Dispute by an expert in accordance with
Clause 17.2(b) (Expert Determination);
Expropriation means:
(a) the expropriatlon, nationalisation, confiscation, forced sals,
compulsory acquisition of:
seizure, annulment or
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(ii) the whole or any part of the undertaklng of the Generator, any Shareholder or any
Affillated O&M Contractor; or
(iiD the whole or any part of any Equity Interesti or
(b) any act or omission in one or a series of events which directly or indirectly deprives the
Generator, any Shareholder or the O&M Conlraclor of effective control of the whole or
any part of the Generation Proiect or any Equity lnterest constltuting a fundamental right
essential to the overall financial viability of the Generation Project or any Equity lnterest,
by lhe Government or a Government Aulhorlty but excluding any proper exercise of the
Government's rights under the Project Documents to which it is a party;
Finance Documents means all documenls under which one or more lhkd party lenders
(excluding any Shareholder or any of its affiliates) extend finance to the Generator or any
Shareholder for the purposes of each Phase of the Generatlon Prolect and all other documents
entered into in connection with that finance by the Generator or any Shareholder wilh any such
thhd party lenddrs or any security trustee, security agent, bond trustee, escrow agent, political
risk insurer, swap bank or other third party lenders' representative acting in connection with thal
finance;
Finance Party means any person that is a party to a Finance Document other than:
(a) the Generator;
(c) any person who is a party to a direct agreement in their capacity as a counterparty to a
Projecl Document;
Financial Benefit means any reduction in costs or expenses or increase in revenue relating to
the Generation Proiect to the extent that:
(a) they are realised by the Generator as a result of a Change in Law; and
6
Law) exceed US$500,000 or its equivalent any currency;
(D the whole or any part of the right, title and interest of the Generator, any
Shareholder or any Affiliated O&M Contractor in, to and under any tangible or
intanglble property;
(b) any Shareholder or any affiliate of a Shareholder; and
(b) lhe aggregate of all such reductions in costs or expenses or increases in revonue that
have not already been the subject of a claim under Clause 10.9 (Beneficial Change in
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Financial Close means, in respect of each Phase, the satisfaction or waiver of all conditions
precedent to the first utilisation of financing for that Phase under the Finance Documents;
Forced Outage means any unavailability of the Net Dependable Capacity other than a
Scheduled Outage;
Force Majsure Event means any event or circumstance:
(a) the occurrence or existence of which is beyond the reasonable control of the affected
Party:
(b) which prevents, delays or hinders the affected Party from performing its obligations under
this Agreement;
(c) which is not the direct or indirect result of the affected Party's breach of this Agreemenl;
(d) which does not constilute an Offtaker Risk Event; and
(e) which is not excluded from this definition by Clause 11 .6 (Exclusions from Force Majeure
Events):
Fuel means each of HFO and LFO:
Fuel Committee means the joint steering committee for Fuel procurement established under
Clause 7.2 (Fuel Committee);
Fuel Supplier moans each supplier of Fuel that enters into a Fuel Supply Agreement;
Fuel Supply Agreement means each agreement for the supply of Fuel entered into between
lhe Generator and a Fuel Supplier in accordance with Clause 7 (Fuel);
Generation Project means:
(a) the development, financing, design, engineering, procurement, supply, manufacture,
factory testing, importation, lransportation lo site, site preparation, conslruction, erection,
installalion, permitting, completion, tssting, commissioning, ownership, operation,
maintenance, lesting, repair, insurance and reinstatemenl of the Plant;
(b) the development, financing, design, engineering, procurement, supply, manufacture,
factory tssting, importation, transporlalion to site, construction, erection, installation,
permitting, completion, testing, commlssioning, ownership and maintsnancs of the New
Transmission Faclllties;
7
(c) the sale of the capacity and output of the Plant; and
(d) the transfer of the Plant and the New Transmission Facilities to the offtaker in
accordance with this Agreement;
Generator Event of Default means each of the events or circumslances specified in Clause
14.1 (Termination for Generator Event of Default)
Generator Partles means each of the Generator, its shareholders, directors, officers,
employees, representatives, affiliates, agents, advisors, contractors or licensees and lheir
respective directors, representatives, offlcers and employeos;
Good lndustry Practice means lhe exercise of that degree of skill, diligence, prudence and
foresight that would reasonably be expect€d from skilled and experienced owners, designers or
operators of similar electricity generation and lransmission facilities, which is consistent with
best practices, methods and standards thdt are generally accepled inlernationally from time to
time for similar facilities operating in conditions comparable to those applicable to the
Generation Project, consislent wilh Laws and taking into account factors such as (i) the use of
the latest technology, (ii) the relative size, performance, age and technology of the physical
componenls of the Plant, (iii) the safe, efficient and economic design, construction,
commissioning, operation and mainlenance of the Plant and (iv) lhe specifications in Schedule
1 (Description of Plant);
Good Operating Condltlon means, in relation to the Planl, that it can be operated and
maintained to efficiency and availabilily levels that are consistent with those reasonably
expected for a similar facility operating in a similar climate and of an equivalent age to the Plant,
which has been constructed, operated and maintained in accordance with Good lndustry
Practice and manufacturer's guidelines, except lo the extent that the condition of the Plant is
impaired by any Offtaker Risk Event or Force Majeure Event;
Government Aulhority means:
(a) any central, local or other government authority of Sierra Leone or other political
subdivision of Sierra Leone; and
(b) any court or tribunal or any other entity, instrumentality, agency, authority, board,
corporation, committee, regulatory body, commission or person which is exorcising
execulive, legisiative, regulatory or adminislralive functions of any nature of Slerra Leone,
including the Grid Operator;
Grid means the electricity transmlssion and distribution grid in the area of Sierra Leone knorrvn
as the Weslern Area;
I
Grid Operator means NPA or, with effect from the NPA Res SA;
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HFO means heavy fuel oil conforming to the specifications set out in part 2 of Schedule 3 (Fuel
Specifications), as varied in accordance with Clause 3.5 (Finalisation of certain technical
matters);
Hour means a period of 60 consecutive minutes starting on the hour;
lncreased Costs means any increased costs, expenses, losses or reduction in revenue relating
to the Generation Project to the extent that:
(a) they are incurred by the Generator as a result of an Offtaker Risk Event; and
(b) the aggregate of all such costs, expenses, losses or reductions in revenue that have not
already been the subject of a claim under Clause 12.7 (lncreased Costs) exceed
US$500,000 or its equivalent in any currency;
lndependsnt observer means a suitably qualilied engineer appointed by the Government for
the purposes set out in the Agreement;
lnsolvency Event means in relation to a company:
(a) the passing of a resolution for the bankruptcy, insolvency, winding up, liquidation or other
slmilar proceeding relating to that company;
(b) lhat company admits in writing that it is unable to pay its debts as they fall due;
(c) a liquidator, receiver, administrator or other similar person is appointed in respect of that
company or any of its assets;
(d) a Governmenl Authority with jurisdiction over that company makes an order for the
winding up of the company or otherwise conflrming ths bankruptcy or insolvency of lhat
company;
(e) the voluntary filing by that company of a petitlon of bankruptcy, moratorium or other
simllar reliet
except where any such procedure is instituted by that company for the purpose of a fully solvent
reorganlsation;
kwh means kilowatt hours;
Land Agreements means all agreements required by the Generator under paragraph 1.4 (Land
rights and use ofjetty) of Part I of Schedule 12 (Government Support provisions);
Laws means:
I
(a) the Constitutioir of Sierra Leone;
(b) all Sierra Leonean laws, statules, treaties, rules, codes, ordinances, regulations,
standards, bylaws, certilicates, decisions, orders, memoranda, circulars, decrees,
resolutions, directives, rulings, interpretations, approvals, licences and permits of any
Government Authority, and their application, in each case having the force of law in
Sierra Leone; and
(c) judgments, decrees, exocutive aclions, iniunctions, writs, orders or like actions of any
Government Authority, court, tribunal or other administrative, judicial or quasi-judicial
body or tribunal or agency of competent iurisdlction, in each case having the force of law
in Siena Leone; and
(d) any code that regulates the technical or commercial relatlonship between electricity
generators, electricity lransmission or distribution system operators or electricity traders,
suppliers oi consumers in Siena Leone;
LFO means light fuel oil conforming to the specifications set out in part 1 of Schedule 3 (Fuel
Specifications), as varied in accordance with Clause 3.5 (Finalisation of certain technical
matters);
Loss means any loss, assessment, judgment, damage, penalty, flne, liability and reasonable
oulof-pocket expense of any kind (including reasonable legal fees and expenses) incurred or
suffered by a person, but excluding any loss of proflt or indirect loss or consequential damage;
Milestone Dats means each of the milestone dates speclfied in Schedule 13 (Milestone Dates),
as extended by Clauses 3.1 (Financial Close for Phaso l) and 3.8 (Extension of Milestone
Dates);
Month means a calendar month;
Mvar means Megavars;
MW means megawatts;
Net D€pendable Capacity means, in respect of each Hour, the total electrical energy
generation capacity of the Plant
Conditions, as demonstrated by:
int at Referencein MW which is available at the D
'10
Main Output Metering Systems means the main electronic systems for melering Net Output
located at the Delivery Point;
Maintenance Schedule means the schedulo for maintenance and overhaul of the Plant agreed
or determined under Clause 6.3 (Scheduled Outages);
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(a) a COD Test for the Phase I Contract Period, Phase ll Contract Period or the Conkact
Year starting on the Phase lll Commerclal Operation Date;
(b) an Annual Test for each subsequent Contract Year; or
(c) if an Additional Test has been conducted, that Additional Test until an Annual Test or
another Additional Test is conducted,
provided that it shall n6ver exoeed the sum of the Contracled Capaoity for the Phases for which
the relevant commercial operation date has occurred;
Net Output means the electrical output of the Plant in kWh at the Delivery Point;
New Transmlssion Facllltles means the transmission lines and substation works, as described
in Scheduls 16 (New Connection Facilities);
Notlce of Dlspute has the meaning given to it in Clause 17.2(a) (Resolution by Consultation);
NPA Restructuring means the transfer of NPA'S electricity supply and distribution business to
EDSA:
Offtaker means lhe Government and the Grid Operator acling on the basis set out in Clause
1 .4 (The Offtaker);
Offtaker Event of Default means each of the evenls or circumstances speci{ied in Clause 14.2
(Termination ,or Offlaker Event of Default);
Offtaker Parties means each of the Offtaker, its shareholders, directors, officers, employees,
representatives, affiliates, agents, advisors, contractors or licensees and their respective
directors, representatives, officers and employees;
Offtaker Rlsk Event means:
(a) delay or failure by a Sierra Leone Counlerparty (including the Offtaker) in performing its
obligations under a Sierra Leone Document (lncluding thls Agreement);
(b) acts of war (whether declared or not), invasion, armed conflict, act of foreign enemy or
blockade in each case occurrlng in or affecting Sierra Leone;
(c) acts of rebellion, riot, insurection, revolution, civil commotion, political violence, public
disorder, act or campaign of terrorism, sabotage of a political nature or political violence
in each case occurring within or affecting Sierra Leone;
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Non-Technical Disputg means a Djspute which is not a Technical Dispute;
(d) strikes, go-slows, lockouts, politically motivated boycotts or other industrial action in
Sierra Leone subsisting for more than soven consecutive Days;
(e) rationing imposed by a Government Authority;
(0 the presence of any hazardous material, adverse ground oonditions, artificial
underground obrects, archaeological artefact, human remalns or munitions affecting any
Project Slte;
(s) boycott, sanctlons, embargo, freezing of assets or travel advice affecting Sierra Leone,
including any such boycott, sanctions, embargo, freezing of assets or travel advice that is
in effecl as at the Efiective Date;
(h) a Change ln Law;
(D a Permltting Failure;
(D Expropriation;
(k) the unreasonable withholding, unreasonable delay or imposing of unreasonable
conditions on any consent, approval or agreement required from the Offtaker under this
Agreement;
(l) unavailabllity of the Grid, except where caused by a Force Majeure Event; and
(m) any unavailabillty of Fuel at the Plant if caused by an event or circumslance described in
paragraphs (a) to (l) above;
O&M Contract means each operations and maintenance contract for the Plant entered into
between the Generator and an O&M Contractor;
O&M Contractor means each conkactor that enters into an O&M Contract;
Operating Committee means the joint operating committee established under Clause 6.10
(Operating Committee);
Operational Step-ln Event means a fallure by the Generator to operate the Plant for more than
72 consecutive Hours without the prior written consent of the Offtaker, other than as a result of:
(a) a Offtaker Risk Event;
(b) a Force Majeure Event;
(c) a Forced Outage or a Scheduled Outage;
(d) dispatch instructions given bythe Grid Operator;
12
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aruequa 1;;rn pa[ord (15) ec;.r;y f]3 aql ',Quadso.rd pue sqof Euqean 'pazr;ea.raq upf, ropas Euunpe;nueu aql ur sluaul5anur 1eql ainsua ol alqp aq plnom(15) er;r;y 333 peld srql 6url1epur
^g 'ia/v\od 1o por qbrq {anrlrqrqord aqt q1M
6uo;e;arvrod Jo llel aql sem luaurrpadur roleru aq1 'fu1unor aql ur luau4sanulpue uorpnpo.rd asearfur ol lupM lsou elrqM leql puno, seq pup umolaar1ur sJaJnlleJnuet! lelol qlt/v\ ltrPluol u! ueaq seq luaululanoE aql JeeI lsel eql JaAo
'rp3^ tepualpl tuaJrnl aql Jo pue aql aJoJeq6uqea;q-punor6 sprervrol dals lueyodr.ur ue pue pafo.rd eq1 ;o Eursolr leoueuuo1 luapara:d uoqrpuol e sr qllqM uotlpf,Utlpr fueluaurer;re6 slrf,ilos luauura^og
'fu1unor eql Jo slsa.ralur lseq eql ur sr lueuJelppd eroJaq prel luauaer6eaql lpql uorurdo gluauruJanog alll sr lr pue sreai( 7 ;o pouad e JaAo sJasrnpe
lpuolleuralur qr Iq peyoddns luauura^og aql Iq paleqobau uaaq seq Vdd aql
'lau aq ol eaiv ujalsa^ aql ur pueuap palselaroJ aql Molle
lllM pue llrreder palletsur luaJJnl aql ol uorlrppe luergru6rs e sr lI 'euoel e;rars
Jo ropas rarnod aq1 ol elue odrur rrbale4s Jo sr llafo]d (fS) erUlV f,lf eql
fueurun5
'pa[ord aq1 o1 paluerE ueeq alpq yoddns Jualuu]anog puesa rlualu! xel lensn aq1 'fur1od anqualur luau[sa ur q]uauuJanog aql qlrm autl uI
(e) an emergency;
Oporational Step-in Rights means the Offtaker's rights under Clause 15.1(a) (Offtaker Step-in
Rishts);
Opsrating Procedures means tho operaling procedures as agreed and amended from time to
time by the Generator and the Offtaker in accordance wilh Clause 6.11 (Operating Procedures);
Output Charge has the meaning given to il in Schedule 8 (Tarif0.
Output Meterlng Dafect means, in relatlon to an Output Metering System, that:
(a) the Output Metering System is not in service due to maintenanco, repairs or a Relief
Event;
(b) the Output Metering System fails to register;
(c) lhe Output Metering System is found to have a broken seal; or
(d) a test under Clause 6.7(e) (Output Metering) finds that the accuracy of the Output
Metering System is nol within the permitted toleranoes set out in Schedule 5 (Metering
Slandards and Testing);
Output Metering Defect Period means eilher:
(a) the actual period during which an Output Metering System was affected by an Output
Metering Defect; or
(b) if the period refened to in paragraph (a) cannot be determined to the reasonable
satisfaction of the Offtaker, half of the period from the Day on which the Output Metering
System was last lested and found to be accurate to within the permitted tolerance set out
in Schedule 5 (Metering and Testing) to the Day of the current test;
Output Metering Systems means each of the Main Output Metering System and the Back-up
Output Metering System I
Parties means each of the parties to this Agreetnent;
Performance Bond means a standby letter of credit that meets the requiremenls of Clause 4.1
(Performance Bonds);
Permlt means any permil, consent, licence, authorisalion, authority, approval, visa or waiver
from, and filings with, any Government Authority;
13
Permitting Failure means any Permit required by a Proiect Party in conneclion with the
Generalion Project (including any Permit that was issued before the Effective Date):
(a) terminating, being withdrawn, suspended, amended, modified or replaced, other than as
a result of any failure by the Project Party to comply with any conditions on which the
Permit was originally lssued; or
(b) terminating, being withdrawn, suspended, amended, modified or replaced as a rosull of a
failure by the Project Party to comply wlth any condilions on which the Permit was
originally issued, unless the Project Party has boen given prior written notice of the failure
and has not remedied the failure within the maximum period prescribed by Law for
remedlng the failure;
Phase means each of Phase l, Phase ll and Phase lll;
Phase I means the first phase of the new heavy fuel oil/diesel-fired power plant to bs built by
the Generator on the main Project Site with a capacity of 50MW and all associated facilities,
systems and ancillary equipment of the Generator, as described in Schedule 1 (Description of
Plant);
Phase I Commercial Operation Date means the Day immedlalely after the Day on which the
COD Tests for Phase I are Duly Completed;
Phase I Contract Perlod means the period starting on the Phase I Commercial Operation Date
and ending on the Day before the Phass ll Commercial Operation Date;
Phase I Scheduled Commercial Operatlon Dats means the date which falls 18 months after
the date on which Financial Close for Phase I occurs;
Phase I Term means the period starting on the Phase I Commercial Operation Date and ending
on lhe 20s anniversary of the Phase I Commercial Operation Date;
Phase ll means the second phase of the new heavy fuel oil/diesel-iired fuel power plant to be
built by the Generator on the main Project Site with a capacity of 39MW and all associated
facilities, systems and ancillary oquipment of the Generator, as described in Schedule 1
(Description of Plant);
Phase ll Commercial Operation Dats means the Day immediately following the Day on which
the COD Tests for Phase ll are Duly Completed;
Phase ll Contract Period means the period sta[ing on the Phase ll Commercial Operation
Date and ending on the Day before the Phase lll Commercial Operation Date;
14
Phase ll Scheduled Commercial Operation Date means the date which falls 24 months after
the date on which Financial Close for Phase ll occurs;
Phase ll Term means the period starting on the Milestone Date for Financial Close for Phase ll
and ending on lhe 22d anniversary of that date;
Phase lll means the third phase of tho new heavy fuel oil/diasel-fired fuel power plant to be built
by the Generator on the main Project Site with a capacity of 39MW and all associated facilities,
systems and ancillary equipment of the Generator, as described in Schedule '1 (Description of
Plant);
Phase lll Commercial Operation Date means the Day immediately following the Day on which
the COD Tests for Phass lll are Duly Completed;
Phase llt Scheduled Commercial Operatlon Date means the date which falls 24 months after
the date on which Financial Close for Phase lll occurs;
Phase lll Term means the period starling on the Milestone Date for Financial Close for Phase ll
and ending on the 22d anniversary of that date;
Plant means:
(b) for the purposes of Clauses 3.8 (Generalor's main construction obligations), 6.1
(Generator's general operating obligations), and Clause 2.6 (Transfer of Plant on Expiry)
which Include the Generator's obligations to construcl, operate and transfer ownership of
the New Transmission Facililies to th6 Offtaker only, the New Transmission Facilities;
PPA Direct Agreement means any direct agreement relating to this Agreemenl entered into
from time to llme between the Governmenl, the Grid Operator, tho Generator and the Finance
Parties;
Preliminary Termination Notice means a notice properly given under Clause 14.7(a)
(Termination procedure);
Project Documents means:
(a) this Agreement;
(b) the Collection Account Agreement
15
(a) the brand new heavy fuel oil/diesel-fired power plant with a total capacity of 128MW
consisting of Phase l, Phase ll and Phase lll and all associaled facilities, systems and
ancillary equ'lpmenl of the Generator, including the Generator's Fuel transportation and
storage infrastructure, all as described in Schedule 1 (Description of Plant); and
(c) the Charge Over Receivables;
(d) each Fuel Supply Agreement;
(e) the Land Agreements;
(f) each EPC Contract;
(S) each O&M Conkact;
(h) each other document designated as such by the Parties; and
(i) any extension, replacement, supplemenlary or substitute contract for any of the above;
Project Parties means each of:
(a) lhe Generator;
(b) the Shareholders;
(c) each EPC Contractor;
(d) each O&M Contractor;
(e) any subcontractor of any tier of any EPC Conlractor or O&M Contractor;
(f) each Fuel Supplier; and
(s) the Finance Parties;
Project Sltes means all of the land in respect of which the Generator is granted land rights
under the Land Agreements;
Protect€d Assots means any property or assets of lhe Government protected by diplomatic or
consular privileges under public international lawj
Reactive Power means the wattless component of the product of voltage and current, which
the Plant shall provide to or absorb from the Grid and which is measured in Mvar;
Reference Conditions means the reference conditions set out in paragraph 2.2 of Schedule 1
(Description of Plant);
Relief Event means:
(a) a Force Majeure Event in relation to which the Generalor is entitled to relief under Clause
'11 (Force Maieure Events); or
@z'16
(b) an Offtaker Risk Event in relation to which tha Generator is entitled to relief under Clause
12 (Offtaker Risk Events);
Remedy Period means, in relation to a Preliminary Termination Notice, the period of time from
delivery of the Prelimlnary Termination Nolice to the proposed termlnation date properly
specified in the Preliminary Termination Notice or such later date as the Parties may agree;
Shareholders means each of CECA BVI and CECA SL;
Scheduled Outage means any unavailability of the Net Dependable Capaclty that is scheduled
pursuant to Clause 6.3 (Scheduled Outages);
Sierra Leone means the Republic of Sierra Leone;
Sierra Leone Counterparties means each of the parlies to the Sierra Leone Documents other
than the Project Partles:
Sierra Leone Documents means:
(a) this Agreement;
(b) the Collection Account Agreement;
(c) the Charge Over Receivables;
(d) the Land Agreements;
(e) any other documents designated as such by the Parties;
(0 any extension, replacement, supplementary or substitute contract for any of the above;
Signing Date means the date of this Agreement;
SLL means the Sierra Leonean leone, the laMul currency of the Republic of Sierra Leone;
Sponsors means CEC Africa lnvestments Limited (a company incorporated in Mauritius) and
TCQ Power Limited (a company incorporated in the British Virgin lslands);
Target Capacity means 50MW for Phase l, 39MW for Phase ll and 39MW for Phase lll;
Technical Dispute means a Dispute which is specified in this Agresment to be subiect to
Expert Determlnatlon;
Technical Limlts means the technical operating limits of the Plant specitied in Schedule 1
(Description of Plant):
17
Term means the period of time starting on the Effective Date and ending on:
(a) the last Day ofthe Phase lllTerm;
(b) if the Phase lll Commercial Operation Date has not occuned, the last Day of the Phase ll
Term; or
(c) if neither the Phase lll Commercial Operation Date nor the Phase ll Commercial
Operation Date has occurred, the last Day of the Phase I Term,
subject to any extension of where Clause 1 1 .5 (Extension of Term) applies;
Termlnatlon Notlce means a notice prirperly given under Clause 14.7(d) (Termination
procedure);
Transfer Date means the earlier of the last Day of the Term and lhe date on which the
Generator is required lo lransfer the Plant to the Offtaker pursuant to Clause 14.9 (Buy-out);
US$ means the laMul cunency of the United States of America; and
Week means each period of 7 Days beglnnlng at 00:00 on Monday and endlng at 24:00 on
Sunday.
1.2 lnterpretation
ln this Agreement:
(a) lhetable of contents and the headings are inserted for convenience only and do not affect
the interpretation of this Agreement;
(b) references to Clauses and Schedules are to clauses of and schedules to this Agreement
and references to a paragraph or subparagraph are references to a paragraph of the
Clause, Schedule or subparagraph of the paragraph in which the reference appears;
(c) references to this Agreement or to any other document are lo thal document as from time
to llme amended, restated, novated or replaced, however fundamentally;
(d) references to an enactment or Laws are to that enactmenl or Law as from lime to time
amended, re-snacted or replaced, however fundamentally;
(e) references to a person include an individual, flrm, company, corporation, unincorporated
body of persons and any Government Authority;
18
Testing Procedures means the operating procedures as approved and amended from time to
time in accordance with Clause 3.'12 (Testing Procedures);
(f) references to a person include its successors in title, permitted assignees and permitted
tra nsferees;
(S) words importing the plural include the singular and vice versa;
(h) the word "including" shall be deemed to be followed by the words "without limilation"; and
(i) unless otherwise indicated, references to.a time of day are to local time in Sierra Leone.
1.3 Conflict
The Schedules ars an integral part of this Agreement but the provisions of the body of this
Agreement shall prevail lo the extent thsy are inconsistent with any provisions contained in the
Schedules, except that Schedule 12 (Government support provisions) shall take precedence
over the body of this Agreement where remedies are provided under both-
1 .4 The Offtaker
(a) The Government and the Grid Operator ale jolntly and severally liable for the obligations
of the Offtaker under this Agreement.
(b) All notices addressed to the Offtaker shall be addressed to both the Government and the
Grid Operator and all consents, approvals and waivers by the Offtaker under this
Agreement shall require the consent of lhe Government.
(c) Nothing in Clauso 1.4 shall in any way reduce the Government and the Grid operator's
obligations as joint and several obligors in respect of all obligations of the Offtaker under
this Agreement.
(d) Payment to lhe account or accounts specified in an invoice issued under Clause 9.2
(Offtaker invoices). shall discharge lhe Generator's payment obligation to the Offtaker,
whether that accounl or those accounts are accounts of the Government or the Grid
Operator.
(e) ln this Agreement, references to "either Party" are references to ths Government and the
Grid Operator acting jointly on the one hand or to the Generator or the Shareholders on
the other hand.
(f) lf the Grid Operator has continuously performed all of the Offtaker's financial obligations
in compliance with the terms of this Agreement for more than 10 (len) years from the
Effective Date, the Parties will have the right to initiate good faith negotiations on the
possibility of.transferrlng all of the Government's rights and obligatlons under this
Agreement to the Grid Operator. The Parties confirm that the Finance Partles'consent to
19
such transfer will be required and thal a lransfer could only lake place after all the senlor
debl of the Generation Project has been fully repaid.
1.5 NPA Restructuring
(a) The Government shall give the Shareholders and tho Generator at least 60 Days' prior
written notice of the NPA Restructuring, with reasonable detail of the proposal.
(b) The Government shall procure that an NPA Restructuring is effected only ln accordance
wlth Clause '18.'16 (Asslgnment).
(c) The NPA Reslructuring shall not affecl the Government's obligations as joint and several
obligor as set out in Clause 1.4 (The Ofttaker).
1.6 The Shareholders
The Shareholders are Parties to lhis Agreement solely for the purposes of Schedule 12
(Government support provlslons) and, to the extent necessary to give effect to Schedule 12
(Government support provisions), Clause'1, Clause 2 (Effective Date, implementation ol the
Generation Project and Term), I (lnvoicing and payments), 16 (Representations), 17
(Governing law and Dispute resolution) and 18 (Mlscellaneous) shall also apply with respect to
the Shareholders.
2 Effective Date, implementation of the Generation Project and Term
2.1 Effective Date
Clause 1 (Definitions and interpretation), this Clause 2 and Clauses 9 (lnvoicing and payments),
14.8 (Longstop dates), 16 (Representations), 17 (Governing law and Dispute resolution) and 18
(Miscellaneous) shall take effect from the Slgning Date and the balance of this Agreement shall
take effect from the Effective Date.
2.2 ConditionsPrecedent
(a) The Offtaker shall use all reasonable endeavours to satisfy or procure the salisfaction of
the following conditions precedent:
(i) due execution of the Siena Leone Documents by the relevant Sierra Leone
Counterparties; and
(iD ratification of this Agreement by the Parliament of Sierra Leone
(b) The Generator shall use all reasonable endeavours to satisfy or procure lhe satisfaction
of the following condition precedent:
20
(d) The Parties shall keep each olher informed regarding progress in satisfylng the
Conditions Precedent on a regular basls.
(e) Each Party shall disclose to the other Party as soon as is reasonably practicable anything
that will, or is reasonably likely to, prevent any Condition Precedent from being satisfied.
(f) Each Party shall, promplly upon the satisfaction of a Condition Precedent for which it is
responsible, inform the olher Parties of that fact and provide signed originals in the case
of Sieffa Leone Documents or certified copies of documents evidencing satisfaction in the
case of lhe other Conditions Precedenl.
2.3 Right to implement the Generation Prolect
The Government grants to the Generator the right to implement the Generation Project subject
to and in accordance with the Sierra Leone Documents.
2.4 Government support provisions
The Government shall comply with its obligations under Schedule 12 (Government support
provisions.
2.5 Expiry
This Agreement shall expire at the end of lhe Term, unless it is terminaled earlier under Clause
14 (Earty termination) or extended by agreement of the Parties.
2.6 Transfer of Plant on expiry
(a) Upon the scheduled expiry of this Agreement under Clause 2.5 (Explry), Schedule 14
(Handover Provlsions) shall apply.
(b) lf Phase lll is built at a different location from Phase I and Phase ll, the Parties may elect
to transfsr Phase I and Phase ll to the Government upon the expiry of the Phase ll Term.
lf the Parties elect to do so, this Agreement will expire to the extent it relates to Phase I
and Phase ll.
2.7 Survival
(a) Clauses 1 (Definitions and interpretatlon) and 2.4 (Government support provisions), this
forClause 2.7 (Survival) and Clauses 9 (lnvoicing and payments), 10.10 (Liabil
21
(i) due execution of the Sierra Leone Documents by the Generator.
(c) The Parties may waive any of the Conditions Precedenl but only by unanimous wrilten
agreement.
damage to property, death and personal injury), 14 (Early Termination), 15.4(b)
(lndemnity), 17 (Governing law and Dispute resolution) and 18 (Miscellaneous) and
Schedules 11 (Transfer on termlnation), 12 (Government support provislons) (other than
the Surviving Tax Provisions (as defined in Part ll of Schedule 12 (Govemment support
provisions) and '14 (Handover Provisions) shall survive the expiry or early termination of
this Agreement for a further period of 2 years and the Surviving Tax Provisions (as
defined in Part ll of Schedule 12 (Government support provlslon) which shall survive the
expiry or early termination of this Agreement for a further period of 5 years.
(b) Expiry or early termination of this Agreement (or its surviving Clauses) shall not affocl the
accrued rights and obligatlons of the Parties or their rights under any law, Permit or any
other contract.
3 Construction of the Plant
3.1 Financial Close for Phase I
(a) The Generator shall procure that Financial Close for Phase I occurs no later than the
applicabla Milestone Date.
(b) lf the World Bank does not issue a partial risk guarantee for Phase I within 6 months afler
the Effective Dale:
(D the Government shall procure a bankable altemative credil enhancement struclure
for Phase I within 12 months after the Effective Date; and
( ii) the Milestone Oat€ for the achievement of Financial Close for Phase I shall be
extended to 6 months after suoh a bankable alternative credit enhancement
skucture for Phase I is put in place.
(c) lf the Generator does not procur€ that Financial Close for Phase I occurs by the
applicable Milestone Date (as extended by Clause 3.1(b)) but the Generator makes
avallable 10MW of temporary generation capacity to the Offtaker wlth effect from the
Milestone Date in a manner approved by the Offtaker acting reasonably, the Milestone
Date for achlevement of Financial Close for Phase I shall be extended by a further 6
months.
22
3.2 Financial Close for Phase ll and phase lll
The Milestone Dales specified for achievement of Financial Close for Phase ll and Phase lll are
indicative and tha Ganerator shall not be in breach of this Agreement if achievement ofFinancial Close for Phase ll and Phase lll is delayed beyond those dates-
3.3 Notification of Financial Close
The Generator shall:
(a) notify the Offtaker of the date of Financial Close for each Phase promptly after it occurs,
together with written conflrmation from the Finance Parties that each such Financial
Close has occuned; and
(b) provide certified copies of the Finance Documents to the Offtaker no laler than 15 Days
after lhey have been execuled;.
3.4 EPC Contracts and O&M Conlracls
(a) The Mllestone Dates specified for entry into EPC Conkacts and O&M Contracts for each
Phase ars indicative and the Generator shall not be in breach of this Agreement if entry
into those contracts is delayed beyond those dates.
(b) The Generalor shall provide each proposed shortlist of EPC Contractors and O&M
Conuactors to lhe Government and the lndependent Observer. The Government shall
have seven days from the date of receipt of that shortlist to relect by wrltten notice any of
the names on that list but only on reasonable grounds which shail be specified in that
notice.
(c) The Generator shall provide each delailed design for each Phase lo the Government and
lndependent Observer. The Government shall have 28 days to review and comment in
writing on the detailed design to the Generator. The Generator shall have regard to the
comments made by the Government in revising the delailed design and shall respond to
those comments within 7 days of receipt.
(d) The Generator shall provide a copy of each O&M slrategy to the Government and the
lndependent Obssrver. The Government shall have 14 days to comment in writing on
that strategy to the Generalor. The Generalor shall have regard to the comments made
by the Government in revising the O&M strategy and shall respond to those comments
within 7 days of receipt.
(e) The Generator shall not enler into an EPC Contract or an O&M Contract or materially
amend an EPC Conlract or an O&M Contract which, in either case, would have a material
advorse effect on lhe Generation Pro,iect without the prior writton oonsent of lhe Offtaker,
which consent shall not be unreasonably withheld, delayed or conditioned.
(S) The Generator shall not enter into an EPC Contract unless it requires the EPC Contractor
to deliver at least Ihe relevant Target Capacity.
(h) The Generator shall ensure that the Technical Limits agreed with the EPC Conlractor
shall comply with the Grid's technical specilicatlons.
3.5 Finalisation of certain technlcal matters
(a) When the Generator has selected an EPC Contractor for a Phase, the Generator shall,
afler complying with its obligations under Clause 3,4(b) and (c) (EPC Contracts and O&M
Contracts), notify the Offtaker of final:
(i) Technical Limits;
(iD performance curves and other technical parameters that are not given or which are
expressed to be preliminary or indicative in Schedule 1 (Description of Plant),
Schedule 2 (lnterconnection Facilities and lnterconnection Point), and Schedule 10
(New Transmission Facilities);
(iii) Fuel specifications lor HFO and LFO; and
(iv) ContractedCapacity,
for that Phase, which shall be based on actual equipment manufacturer's specifications
and the detailed design for that Phase and which shall be deemed lo replace the
informalion contained in Schedule I (Description of Plant), 2 (lnterconnection Facilities
and lnterconnection Point) and 3 (Fuel Specifications) for all purposes of this Agreement.
(b) The Offtaker shall acknowledge in writing recelpt of lhe final information provided by the
Generator under paragraph (a) promptly after lt is received.
3.0 Phase lll consullation
(a) Within 30 Days after the Phase ll Commercial Operation Date, the Parties shall initiate
discussions as to whether it would be appropriate for Phase lll:
(i) to use alternative technology or fuel supplies; or
(iD to be located at a difforent site.
(f) No comments providod or consents given by the Offtaker under paragraphs (b) to (e)
shall relieve the Generator from its obligations under this Agreement.
(b) The discussions under paragraph (a) shall be concluded within 120 Days after the Phase
ll Commercial Operations Date.
(c) The Parties agree that their discussions under this Clauso 3.6 are not legally binding and
that, unless this Agreement is amended to giv6 sffect to alternative afiangements agreed
pursuanl to paragraph (a), Phase lll shall proceed as currently provided by this
Agreement.
3.7 Notice to proceed
The Generator shall issu€ notice to proceed to the EPC Contractor with respect to each Phase
in accordance with the EPC Contract.
3.8 Exlension of Milestone Dates
(a) lf a Offtaker Risk Event delays tho Generator in achleving one or more Milestone Dates,
the Milestone Dates shall be sxtsnded equitably by agreement between the Parties to
take into account the effect of the Offtaker Risk Event on achievement of the Milestone
Oates.
(b) lf the Parties do not agree on an equitable extension of a Milestone Date within 30 Days
after notice from the Generator to the Offtaker seeking an extension of that dale under
this Clause 3.8, the Generator may refer the matter for Expert Determination.
3.S Generator'smainconstructionobligations
(a) The Generator shall design, engineer, procure, implement, construct, complete, install,
test, commission and develop the Plant:
(ii) so as to achieve the Phase ll Commercial Operation Date no later than lhe Phase
ll Scheduled Commercial Operation Date:
(iii) so as to achieve the Phase lll Commercial Operation Date no latsr lhan the Phase
lll Scheduled Commercial Operation Date;
(iv) in accordance with this Agreement and lhe Sierra Leone Documents;
(v) in accordance with Good lndustry Practice; and
(vi) so that each Phase will have a design life as at its commercial oparation date of
nol less than 25 years.
25
(i) so as to achieve the Phase I Commercial Operation Date no later than the Phase I
Scheduled Commercial Operation Date;
(b) The Generator shall procure that, only brand new parts, equipment and material are used
where those ltems will be incorporated in the Plant.
(c) Any Dlspute with respect to the Generator's compliance with paragraphs (a) or (b) shall
be settled by Expert Determinalion.
lf any technological upgrades become available for the Plant either lhe Government or the
Generator may live written notice to the other. The Parties shall then meet to discuss in good
faith whether or not to implement such upgrades, how the costs will be addressed including how
the benefits of any such upgrades shall be shared b€lween the Parties.
3.11 New Transmission Facilities
(a) The New Transmission Facilities shall be conslrucled in accordance with Schedule 16
and shall be lnspected and signed otf by an engineer appointed by the Grid Operator lo
ensure thal they comply with the specifications set oul in Schedule 16 (New Transmission
Facilities) and Good lndustry Practice.
(b) The Generator shall have no llability whatsoever under this Agreement with respect to the
New Transmission Facilities, other than:
(i) as expressly provided in Clause 3.9 (Generatofs main construGtion obligations);
(iD lhe obligation to undertake rouline maintenance only under Clause 6.1
(Generator's general operating obligations); and
(iiD to transfer ownership of the New Transmission Facilities to the Offtaker in
accordance with Schedule 14 (Handover provisions).
(c) All risk of loss of or damage to the New Transmission Facilities shall rest with the
Offtaker.
(d) The Generator shall undertake work in a timely manner in respect of tho New
Transmlsslon Facilitiss in addition to that referred to in paragraph (a), such as
reinstatement following vandalism, thefl or other physical damage or the conneclion of
high vollage customers directly to the New Transmission Facilities, on a cost plus fifteen
per cent basis. Provided that such work is inspected and signed off by an engineer
appointed by the Grld Operator, all risk of loss of or damage to the New Transmission
Facllities shall remain with the Offtaker.
(e) The Offtaker shall indemnify the Generator in respect of all work undertaken under
that wouldparagraph (d) and all costs and liabilities under the Law or to any third party
3.10 Technologicalandenvironmentalinnovatlon
@/
not have been incurred or arisen had the Generator not been ths owner of the New
Transmission Facilities.
312 TestingProcedures
(a) The Generator shall develop detailed procedures for commissioning each Phase and
conducting the COD Tests, Annual Teits and Additional Tests in consultation wilh ths
EPC Contractor and submit them for the Offtaker's approval no later than 180 Oays prior
to the Phase l Commercial Operations Date.
(b) The Testing Procedures shall be based on the commissioning and testing arrangements
set out in Schedules 4 (Commissioning and Testing) and 6 (Capacity Tests) and other
relevant provislons of this Agreement.
(c) The Generator may request amendments to the Testing Procedures from time to time.
(d) The Offtaker shall not unreasonably withhold or delay its approval of the Testing
Procedures or any amendment to thsm.
3-13 COD Tests
(a) The Generator shall:
(i) conducl the COD Tests for each Phase in accordance with Schedule 4
(Commissioning and Testing) and the Testing Procedures;
(ii) give the Offtaker reasonable nolice of each COD Test; and
(iii). permit the Offtaker's nominated representatives to attend each COD Test
(b) The Offlaker shall
(i) dispatch the Plant as and when reasonably required by the Generator to enable
the Generalor lo commission and optimise the Plant, to conduct each COD Test
and to conduct any olher tests reasonably requlred under each EPC Contract;
(iD take the Net Output associated Mth the commissionlng and optimlsation of the
Plant and the COD Tests;
(i,D pay the Output Charge for the Net Output refened to in paragraph (ii); and
(iv) procure that its nominated represenlatives attending the COD Tests do not
interfere with the performance of. the Generator's obligations under Project
Documents.
27
(c) Any Dispute with respecl to a Party's compliance with lhis Clause 3.13 shall be settled by
Expert Determination.
3.14 Phase I Commerdal Operation Date
The Offtaker and the Generator shall jointly certify in writing that the Phase I Commercial
Operation Date has occurred no later than three days after the Phase I Commercial Operation
Date has been achieved.
3.15 Phase ll Commercial Operation Date
The Offtaker and lhe cenerator shall jointly c€rtify in writing that the Phase ll Commercial
Operation Date has occurred no later than thres days after the Phase ll Commercial Operation
Date has been achieved.
3.16 Phase lll Commerclal Operation Date
The Offtaker and the Generator shall jointly certify in writing that the Phase lll Commercial
Operation Date has occuned no later than three days after the Phase lll Commercial Operation
Date has been achleved.
3.17 Disputes as to completion
Any Dispute as to whether the Phase I Commercial Operation Date, Phase ll Commercial
Operation Date or Phase lll Commercial Operalion Date has occurred shall be settled by Expert
Determination.
3.18 Liquidated damages for Capacity Shortfall
lf there is a Capacity Shortfall for any Phase, lhe Generator shall pay liquidated damages to the
Oftaker equal to the rate of performance liquidated damages per MW of Capaoity Shortfall
under the rolevant EPC Contract, provided that the total amount of liquidated damages payable
under this Clause 3. 18 shall nol exceed five per cent of the contract price under the relevant
EPC Contract.
4 Performance Bonds and construction delay
4.1 Performance Bonds
(a) No later than the date of Flnancial Close for each Phase, the Generator shall deliver a
Performance Bond to the Offtaker whlch complies with the requiremenls of this Clause
4.1. The Milestone Date for Financial Close for Phase I shall not be satisfied unless tho
Generator has Gomplied with its obligations under this Clause 4.1(a).
28
(b) Each Performance Bond shall be denominated in USg in an amount equal to 10 per cent
of the contracl price in respect of lhe EPC Contract price for the applicable Phase as at
the date of issu6 of the Performance Bond.
(c) The Generator shall maintain the Performance Bond until 30 Days after the completion of
lhe COD Tests for the relevant Phase, and th6 Generator shall extend or replace it as
necessary if it is due to expire befors that date.
(d) The Offtaker shall return each Performance Bond to the Generalor:
(i) upon its expiry and replacement by another Performance Bond; or
(ii) no later lhan the expiry date referred to in paragraph (c),
whichever is earlier
(e) Each Performance Bond shall:
(D be a standby letter of credit;
(ii) be in favoui of the Government;
(iii) be substantially in the form specilied in Schedule 7 (Form of Performance Bond);
and
(iv) be issued by a bank approved by the Offtaker, such approval not to be
unreasonably withheld or delayed.
(0 lf the Offlaker has reasonable grounds to doubl lhe ability of a Performance Bond issuing
bank to meet its obligations under a Performance Bond, the Offtaker may request the
Generator to replace the Performance Bond with a Performance Bond issued by another
bank approved by the Offtaker, such approval nol to be unreasonably withheld or
delayed.
4.? Demands under Performance Bond
(a) The Offtaker may:
(D demand payment of the entire amount of a Performance Bond if the Generator has
failed to extend or replace it at least 30 Days before it expires where Clause 4.1
(Performance Bonds) requires the Generator to do so; and
(ii) make one or more demands under a Performance Bond up to any amount due but
unpald by the Generator under Clauses 4.3 (Delay liquidated damages - Phase l),
29
4.4 (Delay liquidatod damages - Phase ll) and 4.5 (Delay llquidated damages -Phase lll) within the periods speclfied in this Agreement;
(b) lf the Offtaker makes a demand under paragraph (a)(l) and the Generator subsequently
provides a replacement Performance Bond, the Olftaker shall immediately pay the
proceeds of the damand to the Generator.
(c) The Generator is not requlred to replenish or replace a Performance Bond following a
demand under paragraph (a).
4.3 Oelay liquidated damages - Phase I
lf the Phase I Commercial Operation Date does not occur on or before lhe Phase I Schedulod
Commercial Operation Date, the Generalor shall pay liquidated damages to the Offtaker of
0.049 per cent of lhe contract price in respect of Phase I undor the EPC Contract as at the date
on whlch the Generator lssued final notico to proceed in respect of Phase I to the EPC
Contractor under the EPC Contract for each Day of delay from and including the Phase I
Scheduled Commercial Operation Date until and including the day before the Phase I
Commercial Operation Date, subject to the cap on liability under Clause 4.6 (Caps on delay
liquidated damagos).
4.4 Delay liquidated damages - Phase ll
lf the Phase ll Commercial Opsration Date does not occur on or before the Phase ll Scheduled
Commercial Operatlon Date, the Generator shall pay liquldated damages to the Offtaker of
0.049 p€r cent of the contracl price ln respect of Phase ll under the EPC Contract as at the date
on which lhe Generator issues final notice to proceed wlth respect to Phase ll to the EPC
Contractor under the EPC Contractor for each Day of delay from and lncluding the Phase ll
Scheduled Commercial Operation Date until and including the day before the Phase ll
Commercial Operation Date, subJect to the cap on liabillty under Clause 4.6 (Caps on delay
llquidated damages).
4.5 Delay liquidated damages - Phase lll
liquidated damages).
lf the Phase lll Commercial Operation Date does not occur on or before the Phase lll
Scheduled Commercial Operation Date, the Generator shall pay liquidated damages to the
Offiaker of 0.049 per cent of the contract price in respect of Phase lll under the EPC Contract
as at the date on which the Generalor lssuos final notice to proceed wlth respect to Phase lll to
the EPC Contractor under the EPC Contractor for each Day of delay from and including the
Phase lll Scheduled Commercial Operatlon Date until and including the day before the Phase lll
Commercial Operation Date, subject to the cap on liability under Clause 4.6 (Caps on delay
(@
4.6 Caps on delay liquidated damages
The total amounl of liquidated damages payable under:
(a) Clause 4.3 (Delay liquidated damages - Phase l) shall not exceed 10 per cent of the
contract price in respect of Phase I under the EPC Contract;
(b) Clause 4.4 (Delay liquidated damages - Phase ll) shall not exceed 10 per cent of the
contract price in respect of Phase ll under the EPC Conkact
(c) Clause 4.5 (Delay liquidated damages - Phase lll) shall not exceed 10 per cent of the
contract price in respect of Phase lll under the EPC Contract.
5 Gonstruction delays excused by Relief Events
5.1 Extension of construction schedule
(a) lf a Rellef Event delays the Generator in achieving the Phase I Commercial Operation
Date, the Phase I Scheduled Commercial Operation Date shall be extended equitably by
agreement between the Parties to take inlo account the effect of lhe Relief Event on
achievement of the Phase I Commercial Operalion Date.
(b) lf a Relief Event delays the G€nerator in achieving the Phase ll Commercial Operation
Date, the Phase ll Scheduled Commercial Operation Date shall be extended equitably by
agreemenl between the Parties to take into account the effect of the Relief Event on
achievement of the Phase ll Commercial Operation Dale.
(c) lf a Relief Event delays the Generalor in achieving the Phase lll Commercial Operation
Date, the Phase lll Scheduled Commercial Operation Date shall be extended equltably
by agreement botween lhe Parties to take inlo account the effect of the Relief Event on
achievement of the Phase lll Commercial Operation Date.
(d) lf the Parties do not agree on an equitable extension of the Phase I Scheduled
Commercial operation Date, Phase ll Scheduled Commercial Operation Oate or Phase
lll Scheduled Commercial Operation Date within 30 Days after notice from the Generator
to the Offtaker seeking an extension of one of lhose dates under this Clause 5.1, the
Generator may refer the matter for Expert Determination.
5.2 Deemed completion - Phase I
(a) lf an Offtaker Risk Event delays the Generalor in achieving the Phase I Commercial
Operation Date, the Offtaker shall pay Capacity Chargss to lhe Generator calculated in
accordance with paragraph (b) from the Day on which the Phase I Commercial Operation
Date would have occurred but for the Offtaker Risk Event until the earlier
31
!
(i) the Phase I Commercial Operation Date;
(ii) the Day on which the COD Test for Phase I is conducted under Clause 3.13 (COD
Tests); and
(iii) the Day on which this Agreement is terminated
(i) the Phase I Commercial Oporation Date shall be deemod lo have occuned for the
purposes of Clause 8.1 (Phase I Net Dependable Capacity) and Schedule 8
(Tariff);
(ii) the Net Dependable Capacity for Phase I shall be deemed to be equal to the
relovant Conlracted Capacity; and
(iii) no deduction from the Capacity Charge shall be madd in respect of Phase I under
paragraph 2.1.3 (Deductlon for Reduced Availability) or 2.2.2 (Deduction for
Reduced Availability of Schedule 8 (Tariff).
(c) lf there is a COD Capacity Shortfall in respect of Phase l, the Generalor shall repay to the
Offtaker the proportion of the Capacity Charges paid by the Offtaker under this Clause
5.2 that is attributable to the Capacity Shortfall in the first Billing Period after the Phase I
Commercial Operation Date.
5.3 Deemed completion - Phase ll
(a) lf an Offlaker Risk Event delays the Generator in achieving the Phase ll Commercial
Operation Date, the Oftaker shall pay Capacity Charges to lhe Generator calculated in
accordance with paragraph (b) ftom the Day on which the Phase ll Commercial
Operation Date would have occuned but for the Offtaker Risk Event until the earlier of:
(D the Phase ll Commercial Operation Date;
(iD the Day on which the COD Test for Phase ll is conducted under Clause 3.13 (COD
Tests); and
(iii) the Day on which this Agreemont is terminated.
(b) Capacily Charges for the periods referred to in paragraph (a) shall be calculated and
invoiced in accordance with this Agreement, except that:
32
(b) Capacity Charges for the periods referred to in paragraph (a) shall be calculated and
invoiced in accordance with this Agreement, except that:
(i) the Phase ll Commercial Operation Date shall be deemed to have occurred for the
purposes of Clause 8.3 (Phase ll Net Dependable Capacity) and Schedule 8(Tariff); and
(ii) the Net Dependable Capacity for Phase ll shalt be deemed to be equal to the
relevant Conlracled Capacity;
(iiU no deduction from the Capacity Charge shall be made in respecl of Phase ll under
paragraph 2.1.3 (Deduction for Reduced Availability) or 2.2.2 (Deduction for
Reduced Availability of Schedule 8 (Tariff).
(c) lf there is a COO Capacity Shortfall in respsct of Phase ll, the Generator shall repay to
the Offtaker the proportion of the Capacity Charges paid by the Offtaker under this
Clause 5.3 that is attributable to the Capacity Shortfall in the first Billing Period after the
Phase ll Commercial Operation Date.
5.4 Deemed complelion - Phase lll
(a) lf an Offtaker Risk Event delays the Generator ln achievlng the Phase lll Commercial
Operation Date, the Oftaker shall pay Capacity Charges to the Generator calculated in
accordance with paragraph (b) fiom the Day on which the Phase lll Commercial
Operation Date would have occuned but for the offtaker Risk Event until the earlier of:
(i) the Phase lll Commercial Operation Date;
(iD the Day on which the COD Test for Phase lll is conducted under Clause 3.13
(COO Tests); and
(iii) the Day on which lhis Agreement is terminated
(b) Capacity Charges for the periods referred to In paragraph (a) shall be calculated and
invoiced in accordance with this Agreement, except that:
(i) the Phase lll Commercial Operation Date shall be deemed to have occuned for the
purposes of Clause 8.5 (Phase lll Net Dependable Capacity) and Schedule 8
(Tariff); and
(iii) no deduction from the Capacity Charge shall be made in respect of Phase lll under
paragraph 2.1.3 (Deduction for Reduced Avallability) or 2.2.2 (Deduction for
Reduced Availability of Schedule 8 (fariff)
33
(iD the Net Dependable Capacity for Phase lll shall be deemed to be equal to the
relevant Contracted Capacity;
(c) lf there ls a COD Capacity Shortfall in respect of Phase lll, lhe Generator shall repay to
the Offtaker the proportlon of the Capacity Charges paid by the Offtaker under lhis
Clause 5.4 that is attributable to the Capacity Shortfall in the tirst Billing Period after the
Phase lll Commercial Operation Date.
5.5 Disputes as to deemed completion
Any Dispute as to when th6 Phase I Commercial Operation Dale, Phase ll Commercial
Operation Date or Phase lll Commerclal, Operation Date would have occurred but for an
Offtaker Risk Event or with respect to the calculation of Capacity Charges or COD Capacity
Shortfall under this Clause 5 shall be settled by Expert Determlnation.
6 Operation of the Plant
6.1 Generator'sgeneraloperatingobligations
(a) The Generator shall operate and maintain the Plant in accordance with:
(D the Law;
(,i) the Siera Leone Documents;
(iii) Good lndustry Practice;
(iv) the Operating Procedures; and
(v) subiect to the Technical Limits, dispatch instructions given by tho Grid Operator in
accordance lhe Operating Procedures and up to tho Net Dependable Capacity.
(b) From and after the Phase I Commercial Operation Date, the Generalor shall, subject to
the Technlcal Limits:
(i) immediately advise the Offtaker of any circumstance or event that could impact the
Net Dependable Capacity;
(iD operate and maintaln the Plant ln such manner so as not to have an adverse effect
on the Offtakefs voltage level, voltage waveform or transmission and distribution
system; and
(iii) install protective relays having ratings and characterislics approved by the Offtaker,
maintain the settings of all such relays at levels acceptable to the Offtaker and not
change the settings of such relays without the prior written consent of Offtaker
which consent shall not be unreasonably withheld or delayed.
,@,
(c) Any Dispute as to the Generator's compliance with paragraphs (a)(iii), (iv) and (v) and (b)
shall be settled by Expert Determination.
6.2 Rsactive Power
(a) The Offtaker may requesl the Generator to deliver Reactive Power in accordance with the
Operating Procedures, provided that the Offtaker shall distribute requests for Reactive
Power amongst the Plant and other generating facilities on a non-discriminatory basis
having due regard for the system-wide voltago profile, unit location, unit availability, line
outages and system demand.
(b) Subject to the Technical Limits and any Scheduled Outage or Forced Outage, the
Generator shall deliver Reaclve Power requested in accordance with paragraph (a).
(c) Where the Offtaker begins collecting payments from its customers for the provision of
Reactive Power, tha Generalor and the Offtaker shall meet as soon as is reasonably
practicable to discuss in good faith what the Offtaker should pay to the Generator for its
supply of Reactive Power.
6.3 Scheduled Outages
(a) The Generator shall develop and maintain a maintenance schedule for the Plant, which
shall:
(i) incorporate, to the extent required by Good lndustry Practice, inspection and
maintenance procedures recommended by relevanl equipment suppliers; and
(iD take lnto account the Oiftaker's seasonal demand for electricity, to the extent that it
can reasonably do so in a manner that is consistent with paragraph (i), by not
scheduling such inspections or maintenance (unless absolutely necessary) during
the period 1 December to 30 June in each year.
(b) The Generator shall submit a draft Maintenance Schedule to the Offtaker no later than g0
Days befora the Phase I Commercial Operation Date is expected to occur and thereafter
at least 90 Days before the sta( of each Contract Year.
(c) The Offtaker may request changes to the draft Maintenance Schedule lo the extent thal
the draft does not comply with paragraph (a).
If the Offtaker does nol request changes to the drafl Maintenance Schedule within 30
Days of submission under paragraph (bi, that draft Maintenance Schedule shalt be the
Maintenance Schsdule for lhe following Contract Year.
(d)
(e) lf the Offtaker requests changes to the draft Maintenance Schedule within 30 Days of
submission under paragraph (b), ths Generator shall within 15 Days of receipt of such
request either incorporate the requested changes in the draft Maintenance Schedule or
request a meeling with the Offfaker to discuss the requested changes.
(0 lf the Parties do not agree changes to the draft Maintenance Schedule that are requested
by the Offtaker under paragraph (c) within 45 Days of submisslon of the Offtake/s
request under paragraph (c), the Offtaker may refer a Oispute as to whether the
requested changes are necessary to ensure that the Maintenance Schedule complies
with the requirements of paragraph (a) for Expert Determinalion.
(s) The Generator shall maintain and overhaul the Plant in accordance with the Maintenance
Schedule.
(h) The Offtaker or the Generator may request lhe olher to agree to reschedule a Scheduled
Outage at any time, such agreement to be at the discretion of that other Party.
(i) Prior to the Phase lll Commerclal Operation Date, the Generator may request additional
Scheduled Outages from time to time in order to accommodale lhe construction and
testing of subsequent Phases.
(j) The Generator shall notify the Offtaker of each Scheduled Outage under paragraph (i) as
far in advance as practicable and the Offtaker shall use its best endeavours to approve
any such Scheduled Outages.
0.4 Scheduling of Net Output
(a) No later than 180 Days before lhe Phase I Commercial Operalion Date is expected to
occur, lhe Offtaker shall notify the Generator of its estimated requirements for Net Output
for each Month of the Phase I Contract Period.
(b) No later than 180 Days before the Phase ll Commercial Operation Date is expecled to
occur, the Offtaker shall notify the Generator of ils estimated requlremenls for Net Output
for each Month of the Phase ll Contract Period.
(c) No later than 180 Days before:
(i) the Phase lll Commercial Operation Date is expecled to occur; and
(ii) the beginning of each subsequent Contract Year,
lho Offtaker shall notify the Generator of its estimated requirements for Net Output for
each Month of the following Contract Year.
@.36
(d) No later than 30 Days beforo the beginning of the Month in which the Phase I
Commercial Operation Date is expecled to occur, the Offtaker shall notffy the Generalor
by courier of its estimated requirements for Net Output for each Week of the fotlowing
Month-
(e) No laler than 30 Days before the beginning of each subsequent Month, the Offtaker shall
notify the Generator of ils estimated requirements for Net Output for each Week of the
following Month.
(f) No later than 12:00 on the Friday before the Phase I Commercial Operation Date is
expected to occur, the Offtaker may notify the Generator by courier of its estimated
requirements for Net Outpul for tho following Week.
(S) No later than 12:00 on each Friday after the Phase I Commercial Operation Date, the
Offlaker may notify the Genorator of its estimated requirements fol Net Output for the
following Week.
(h) No later than 12:00 on every Day beginning with the Day before which the Phase I
Commercial Operation Date is expected to occur, the Offtaker may notify the Generator
by telephone of its firm requirements for Net Output for each Hour of the following Day.
(i) The estimated requirements for Net Output notified by the Offtaker under this Clause 6.4
shall take into account the COD Tests, Annual Tests, Additional Tests and Scheduled
Outages lo the extent lhat they can be ascertained.
0) The estimated requirements for Net Output notified by the Offtaker under paragraphs (a)
to (c) shall not be binding.
(k) ,A month ahead notiflcalion issued by the Offtaker under paragraph (d) or (e) shall be
binding unless it is superseded by a week ahead notification actually received by the
Generator under paragraph (0 or (g) and a wsek ahead nolification under paragraph (0 or
(g) shall be binding unless it is superseded by a day ahead notmcation under paragraph
(h). The prevailing month ahead, week ahead notlfication or day ahead notification shall
be binding except in the case of an emergency.
6.6 Emergencies
(a) The Pades shall incorporate plans for operating the Plant during emergencies in the
Operating Procedures.
37
6.5 Forced Outages
The Generator shall notiry the Offtaker of a Forced Outage as far in advance as practicable and
in any event as soon as a Forced Outage occurs.
(b) The plans refened to in paragraph (a) will include recovery from a local or widespread
electrical blackout and voltage reductlon in order to effect load curtailment.
(c) The Generator shall comply with the omergency procedures contained in the Operating
Procedures.
(d) Al the Offtaker's request, the Generator shall make technical references available to the
Offtakor concerning the Planfs start-up tim6s, black-start capabilitles and minimum load-
carrying capabilities.
(e) During an emergency, the Generator shall deliver such Net Output as the Plant is able to
generate subject to the Technical Limits and in response to dlspatch instructions given by
the Offtaker in. accordance with tho Operating Procedures.
(t) lf an emergency occurs or is continuing during a Scheduled Outago, the Parties shall use
their best efforts to reschedule the Scheduled Outage and, if tho Scheduled Outage has
already begun, lhe Generator shall use its best efforts to expedite completion of the work
to restore Net Output as soon as possible.
6.7 Output metering
(a) The Generator shall give the Offtaker reasonable notice of the lnstallation, reading,
inspection, cleaning, repairing, calibration or replacement of the Output Metering
Systems.
(b) The Offlaker's nominated representatives may witness the installation, reading,
inspectlon, cleaning, repalrlng, calibration or replacement of the Output Metering
Systems.
(c) The Output Metering Systems shall be jointly sealed by the Generator and the Offtaker.
(d) The Offtaker shall procure that its nominated representativss exercising the Oftaker's
rights under paragraphs (b) and (c) do not interfere with the performance of the
Generator's obligations under the Project Documents.
(e) The Generator shall verify the accuracy of the Output Metering Syslems:
(i) at reasonable intervals; and
(iD promptly upon request by the Offtaker.
(f) lf a test under paragraph (e) finds that the accuracy of an Output Metering System is not
within the pormitted tolerance set oul in Sohedule 5 (Metering Standards and Testing) the
@ 38
Generator shall promptly calibrate, repair or replace that Output Metering System so that
it will accurately measure the Net Output.
(S) The Offtaker shall reimburse the Generator for the fair and reasonable costs of any test
undertaken under paragraph (eXii) if the accuracy of the Oulput Metering System is
within the permltted tolerance set out in Schedule 5 (Metering Standards and Testing).
(h) The Generator shall give the Offtaker reasonable advance notice of its intention to read
the Main Output Metering Systems and the Back-up Output Metering Systems and permit
the Offtaker's nominated representatives to attend and witness those readings-
(i) Except when paragraph (j) applies, data from the Main Output Melering Systems shall be
the binding measure of Net Output delivered at the Delivery Point for the purposes of this
Agreement-
0) Except when paragraph (k) applies, if the Main Output Metering Syslems are affected by
an Output Metering Defect, data from the Back-up Output Metering Systems shall be the
binding measure of Net Output delivered at the Delivery Point for the purposes of this
Agreement durjng the Output Metering Defect Period.
(k) lf both Output Metering Systems are affected by Output Melering Defects, the Generator
shall calculate the Net Output delivered at the Delivery Point during the Output Metering
Defect Period based on the following methods, in the following order of priority:
(A) data from an Output Metering Systems adjusted by the percentage error
apparent from a test undertaken under paragraph (e); and
(B) reasonable estimation based on other data sources
(D lf the Generator has issued an invoice based on the wrong measure of Net output
delivered at the Delivery Point, the Generator shall recalculate the Output Payment to
reflect the correct measure of Net Output and shall either credit any reduction or debit
any increase in the Output Payment in the next invoice issued to the Offtaker under
CIause 9.1 (Generator invoices).
(m) Any Dispute as to whether an Output Metering Defect has occurred, the duration of the
Output Metering Defect Period or the reasonableness of the Generalor's delerminalion
under paragraph (k) shall be settled by Expert Determination.
(a) The Generator shall:
3S
6.8 Annual Tests
(i) conduct an Annual Test in accordance with Schedule 6 (Capacity Tests) and the
Testing Procedures no later than 60 Days before the beginning of each Contract
Year, slarting with tho second Gontract Year after the Phase lll Commercial
Operation Date;
(ii) give the Offtaker reasonable notice of each AnnualTest; and
(ill) permil the Offtaker's nomlnated represenlatives to attend each Annual Test.
(b) The Offtaker shall:
(i) dispatch the Plant as and when reasonably required lo enable the Generator to
conduct the Annual Tests ln accordance with Schedule 6 (Capacity Tests) and th6
Testing Procedures;
(ii) take the Net Output associated Mth the AnnualTests;
(iii) pay the Output Charge for the Net Output referred to in paragraph (ii); and
(lv) procure that its nominated represenlallves attending the Annual Tests do not
interfere with the performance of the Generato/s obligations under the Proiect
Documents.
(c) Any Disputo with respect to a Party's complianc€ with this Clause 6.8 shall be settled by
Expert Determination.
6.9 Additional Tests
(a) Additional Tesls may be conducted under this Clause 6.9 al any timo after the Phase I
Commercial Operatlon Date, Phase ll Commercial Operation Dale or Phase lllCommercial Operation Date.
(b) All Additional Tests shall be conducted in accordance with Schedule 6 (Capacity Tests)
and the Testing Procedures.
(c) The Generator may conduct Additional Tests in accordance with this Clause 6.9 and shall
give the Oiftaker reasonable notice of each Additional Test.
(d) The Offtaker may require the Generator to conduct an Additlonal Test in accordance wlth
paragraph (h).
(e) The Generator shall permit the Offtaker's nominated representatives to attend each
Additional Test.
(0 The Offtaker shall:
40@
(i) dispalch the Plant as and when reasonably required to enable the cenerator to
conduct lhe Additional Tesls;
(ii) lake the Net Output assooiated with the Additional Tests;
(iiD pay the Output Charge for the Net Output referred to in paragraph (ii); and
(iv) procure that its nomlnaled representatives attending the Addltional Tests do not
interfere with the performance of the Generator's obligations under the Project
Documents.
(9) Any Dispute ivith respect to a Party's compliance with this Clause 6.9 shall be settled by
Exped Delermination.
(h) Where lhe Offtaker, acting reasonably, believes that the total electrical energy generation
oapacity available at the Delivery Point is less than the current Nel Dependable Capacity,
the Offtaker may, on no less than 7 days' prior written notice, require the Generator to
perform an Additional Test in accordance with Sch€dule 6 (Capacity Tests) and the
Testing Procedures.
6.10 OperatingCommittee
(a) No laler than 180 Days befors the Phase I Commercial Operalion Date is expected to
occur, the Parties shall establish a joint steering commillee, which shall have the
functions set out in Clause 6.'10(c). t
(b) The Operating Commlttee shall consist of one representatlve of the Government, one
representative of the Grid Operator and one representative of lhe Generator-
(c) The Operating Committee shall be a forum for the Parties to share and discuss
information relating to the operation of the Plant under this Agreement (including the draft
Testing Procedures, ihe Operating Procedures and the occurrence of any Otftaker Risk
Event or Force Majeure Event) but shall not be a decision-making body.
(d) The Offtaker shall not (and shall procure that its Operating Committee representatives do
not) seek to control the Generator's operation of the Planl in any way that is not expressly
permitted by this Clause 6.'10.
(e) Any member of the Operating Commillee may convene a meeting of the Operating
Commitlee on 3 Days' notice to all of the other members.
(f) Members of the Operating Committee may attend any meeting of the Operating
Committee in person or by lelephone conference.
41
(S) Meetings of the Operating Committee shall be chalred by a representative of the Offlaker,
shall have a quorum of one representative of each Party attending either in person or by
telephone and shall havs the power to determine its own procedures by unanimous
agreement of the representatives present.
6.11 OperatingProcedures
(a) The Generator and the Offtaker shatl jointly develop written operating procedures for the
Plant and approve lhem no later than 1B0 Days prior to the Phase I Commercial
Operations Date.
(b) The Operating Procedures shall:
(i) be based on the Plant specmcations set out in Schedule I (Description of Planl),
the interconnection facilities set out in Schedule 2 (lnterconnection Facilities and
Connection Point), the metering arrangements set out in Schedule 5 (Metering
Slandards and Testing), other relevant provisions of this Agreement and the
Offtaker's arrangem€nts for control of the Gridi and
(ii) deal with all operational interfaces between Offlaker and the Generalor, lncluding
method of day-tGday communication, key personnel lists, clearances and
switching praotices, outage scheduling, capacity and energy reporting, operalions
log and control of Reactive Power support.
(c) Either Party may request amendments to the Operating Procedures from time to time.
(d) No Party shall unreasonably withhold or delay its approval of the Operating Procedures
or any amendment to them.
6.1? Employment of qualified personnel
(a) With effect from the Phase I Commercial Operation Date, the Generator shall employ (or
procure that the O&M Contraclor employs) sufficient manag€ment, supervisory and other
personnel who are suitably qualified and experlenced to operate and monitor the Plant
and to coordinate operations of lhe Plant with the Offtake/s operation of lhe Grid.
42
(b) The Generator shall ensure thal sufficient personnel are on duty at the Plant 24 Hours a
day, 7 Days a Week commencing with the date on which electrical energy ls flrst
generated by the Plant.
7 Fuel
7.1 Procurement of Fuel
Throughout the term of this Agreement, the Generator shall:
(a) procure Fuel in accordance with this Clause 7;
(b) obtain and maintaln Fuel in quantities sufficient to generate Nel Output associated with
the Net Dependable Capacity at reasonably anticipated levels of dispatch;
(c) obtain and mainlain at least 15 Days' supply of HFO and sufficient LFO to do emergency
starts for 15 Days at the relevant Proiect Site at all times from and after the Phase I
Commercial Operation Date, except when the Generator is directed by the Offtaker to
use that reserve stock;
(d) replenish the reserve stock requirsd to be maintained under paragraph (c) as reasonably
practicable after using any of thal reserve supply;
(e) not procure fuel fiom any entity that has been suspended or debarrad by the National
Public Procurement Authority;
(f) only enter into Fuel Supply Agreements on arm's length terms; and
(S) shall procure the Fuel on a no-gain/no-loss basis.
7 .2 Fuel Committee
(a) No later lhan one year before the Phase I Commercial Operation Date is expected to
occur, the Parties shall establish a ioint steering committee, which shall have the
functions sel out in this Clause 7.2.
(b) The Fuel Committee shall consist of 2 representatlves of the Government, 2
representatives of the Offtaker and 2 representalives of the Generator.
(c) The Fuel Commiftee shall be a forum for the Parties to share and discuss lnformation
relating to the procurement of Fuel under this Clause 7.2 but shall not be a decision-
making body.
(e) Any member of lhe Fuel Committee may convene a meeting of ths Fuel Committee on 3
Days' notice to all of the other members
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(d) The Offtaker shall not (and shall procure.that its Fuel Committee representatives do not)
seek to control the Generator's procurBment of Fuel in any way that is nol expressly
permitted by this Clause 7-2.
(f) Members,of the Fuel Committee may attend any meeting of the Fuel Committee in
person or by telephone conferanco.
(S) Meetings of the Fuel Committee shall be chaired by a representative of lhe Generator,
shall have a quorum of one representative of each Party attending either in person or by
telephone and shall have the powar to delermine its own procedures by unanimous
agreement of the representatives present.
7 .3 HFO Tenders
(a) No later than 6 months before the Phase I Commercial Operation Date is expected to
occur and thereafter no later than 6 months before the expiry of each Fuel Supply
Agreement for HFO, the Generator shall prepare and provide to the Offtaker draft tender
documenls for the procuremenl of HFO for the Plant.
(b) The tender documents prepared by lhe Generator shall
(i) provide for the procurement of HFO for a period of 12 monlhs; and
(ii) seek to optimise HFO cargo sizes to minimise the cost of HFO, subject to the
Plant's available HFO storage capacity as forecast by the Generator, taking into
accounl the scheduling of Net Output (insofar as lt is known) under Clause 6.4
(Schedullng of Net Output).
(c) The Generator shall consider reasonable @mments made by the Oftaker through its
Fuel Committee representatives on the draft lender documents but may advertise and
issue final tender documents at any time at least l0 Days after providing drafts to the
Offtaker in accordance with paragraph (a).
(d) The Generator shall give the Offlaker at least 3 Days' notice of its intention to open
tenders received by the Generator and shall permlt the OfFtake/s Fuel Committee
representatives lo attend and witnoss the opening of the tenders.
(e) The Generator shall prepare and provide the Offiaker with a tender evaluation report as
soon as practicable after the opening of the tenders, identifying:
(D all bidders from whom tenders have been received;
(ii) all bidders from whom compliant tenders have been received'
(iiD the fuel price and terms and conditions offered by each bidder;
(iv) the Generato/s selection of the winning bidder, which shall be on the basis of the
mosl economically advantageous terms offered by the compliant bidders; and
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(v) the Generator's reasons for selecting the winning bidder
(0 Unless the Offtaker notifies the Generator in writing that it objects to the Generator's
selection of the proposed fuel supplier on the basis that the Generator's selection does
nol comply with this Clause 7.3, the Generator may enter into a Fuel Supply Agreement
with the winning bidder on the terms set out in the winning bidder's tender at any time at
least 7 Days after providing the tender ovaluation report to the Offtaker.
(S) The Generator shall provide a copy of each Fuel Supply Agreement to the Offtaker
promptly after it is entered lnlo.
(h) The Generalor shall not terminate or materially amend a Fuel Supply Agreement without
the prior written consenl of the Offtaker, which shall not be unreasonably withheld or
delayed.
7.4 Alternative HFO tender arrangements
lf for any reason a tender for thB supply of HFO under Clause 7.3 (HFO tenders) doos not result
in the conclusion of a Fuel Supply Agreement with a successful bidder or the Generator
reasonably beliaves lhat it will not do so, the Parties shall co-operate fully and in good faith in
the prompt conclusion of alternative procurement arrangements, such as the award of a Fuel
Supply Agreement to a second-ranking bidder or the conduct of an alternalive procurement
process.
7 .5 HFO price hedging
The Parties shall procurs that the Fuel Committee discusses lhe possibility of hedging the price
of HFO after the first anniversary of the Phase I Commercial Operation Date and acknowledge
that lhis would reqlire amendments to this Agreement before any such arrangements could be
implemented.
7.6 LFO
(a) The Generator shall procure LFO in such manner and quantities and at such times as it
sees fit on the most economically favourable terms that are reasonably available at the
time.
(b) The Generator shall keep the Fuel Committee informed of the procurement of LFO under
paragraph (a).
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I Sale and purchase ofNet Dependable Capacity and Net Output
8.1 Phase I Net Dependable Capacity
From the Phase I Commercial Operation Date until the end of the Term
(a) lhe Generator shall make available for dispatch and sell to the Offtaker the Net
Dependable Capacity of Phase l;
(b) the Offtaker shall purchase the Not Dependable Capacity of Phase lfrom the Generator
for the Capacity Charges;
(c) the Generator shall sell and deliver to the Offtaker the Net Output associated with the Net
Dependable Capacity of Phase l; and
(d) the Otftaker shall accept and purchase the Net Output associated with the Net
Dependable Capacily of Phase l,
in each case subject to and in accordance with the othor provisions of this Agreement.
8.2 Payments for Phase lfollowlng expiry of Phase lTerm
From the explry of the Phaso I Term until the expiry of the Term:
(a) only "Corirponent B" of tho Capacity Charge (as set out in paragraph 2.2 of Schedule IfiarifQ) shall be payable in respect of the Net Dependable Capacity of Phase I and shall
be multiplied by a factor of 1.10; and
(b) the Output Charge in respect of each Bllling Perlod shall be payable but:
the factor FDNEm (Deemed Heavy Fuel Oil (HFO) Consumption in GJ) under
paragraph 3.2 of Schedule 8 (Tariff) shall be replaced with lhe actual HFO
consumption (in GJ) for Net Output from Phase I in Billing Period 'm'; and
(i0 the factor FDSm (Deemed Lighl Fuel Oil (LFO) Consumption in GJ) under
paragraph 3.2 of Schedule 8 (Tariff) shall be replaced with the actual LFO
consumplion (in GJ) for Net Output from Phase I in Billing Period 'm'.
8.3 Phase ll Net Dependable Capacity
From the Phase ll Commercial Operation Date until the end of the Term:
(a) the Generator shall maks available for dispatch and sell to the Offlaker the Net
Dependable Capacity of Phase ll;
(i)
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(b) the Offtaker shall purchase the Net Dependable Capacity of Phase ll from the Generator
for the Capacity Charges;
(c) the Generator shall sell and deliver to the Offtaker the Net Output associated with the Net
Dependable capacity of Phase ll; and
in each case subject to and in accordance wlth the other provisions of lhis Agreement
8.4 Payments for Phase ll following expky of Phase ll Term
From the expiry of the Phase ll Term unlil the explry of the Term:
(a) only "Component B' of the Capacity Charge (as set out in paragraph 2.2 of Schedule B
(Tariff)) shall be payable in respect of the Net Dependable capacity of Phase ll and shall
be multiplied by a factor of 1.10; and
(b) the Output Charge in respect of each Billing Perlod shall be payable but
(i) the factor FDNE. (Deemed HeaVy Fuel Oll (HFO) Consumption in GJ) under
paragraph 3.2 of Schedule 8 (Tariff) shall be replaced with the actual HFO
consumption (in GJ) for Net Outputfrom Phase ll in Billing Period 'm'; and
(ii) the factor FDSm (Deemed Light Fuel Oil (LFO) Consumption in GJ) under
paragraph 3.2 of Schedule 8 (Tariff) shall be replaced with the actual LFO
consumption (in GJ) for Net Outputfrom Phase ll in Billing Period 'm'.
8.5 Phase lll Net Dependable Capacity
From the Phase lll Commercial Operation Date until the end of the Term
(b) the Offtaker shall purchase the Net Dependable Capacity of Phase lll from the Generator
for lhe Capacity Charges;
(c) the Generalor shall sell and deliver to lhe Offlaker the Net Output associated with lhe Net
Dependable Capacity of Phase Ill; and
(d) the Offtaker shall accept and purchase the Net Output associated with the Net
Dependable Capacity of Phase ltl for the Output Charge,
47
(d) the Offtaker shall accept and purchase the Net Output associated with the Net
Dependable Capacity of Phase ll for the Output Charge,
(a) the Generator shall make available for dispatch and sell to the Offtaker the Net
Dependable Capacity of Phase lll;
in each case subject to and in accordance with the other provisions of thls Agreement.
8.6 Delivery Point
The Generator shall deliver the Net Output to the Offlaker at the Delivery Point.
a.7 Third party sales
The Generator shall not, without the prior written consent of the OfFtaker, sell, make available or
deliver any part of the capacity or energy of the Plant to any person other than the Offtaker.
8.8 Auxiliary power
The Generator may use electrical energy generated at the Plant lhroughout the Term for its
auxiliary purposes, including construction.
9 lnvoicing and payments
9.1 Generator invoices
The Generator shall deliver an invoice to tho Offtaker within five Business Days after the end ol
each Bllling Period, ltemlsing the Capacity Charges, Oulput Charges (including, by way of an
addendum, the Fuel transportatlon costs (includlng transportation, freight cost, freight loss, port
chargos, demunage, freight levy, lransfer & agency fees, fuel distribution levy, pelroleum levy,
import duty, tax and storage charges)), and olher amounls payable by the Offtaker under this
Agreement in respect of lhat Bllling Period.
9.2 Offtaker invoices
The Offtaker shall deliver an invoice to the Generator within 30 Days after the end of any
calendar month in which liquidated damages or any other amounts palrable by the Generator
under thls Agreemenl, itemising all such amounts payable by the Generator ln rospect of that
Billing Period.
9.3 Form of invoices
All invoices delivered under this Clause I shall be in the form agreed by the Generator and the
Offtaker, which shall contain sufflcient detail to enable the recipient to verify the basis on which
the amounts invoiced were calculated.
9.4 Payment of invoices
Subject to Clause 9.6(b) (Collection Account Agreement), oach party shall pay the undisputed
amount of each invoice delivered to it under this Clause g within 20 Business Days of the Day it
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receives such invoice, by wire transfer ln immediately available funds to such account or
accounts inside or outside Sierra Leone as lhe invoicing Party specifies in the invoice.
9.5 Disputed invoices
(a) lf a Party disputes all or part of any invoice delivored to it under this Clause 9:
(D it shall pay any undisputed part of the invoice in accordance with Clause 9.4
(Payment of invoices);
(iD ln the case of an invoice dlsputed by the Offtaker, the offtaker shall transfer an
amount equal to the disputed part from the Collection Account lo the Escrow
Account in accordance with the Colleciion Account Agreement within 20 Business
Days of the Day it receives such invoice:
(iiD it shall notify the other Party within 14 Days of receipt of the involce, specifying in
detail the grounrlsddEFule: and
(iv) within 10 Business Days of receipt by a Party of a notice under paragraph (iii), the
Parties shall meet at the offices of the Offtaker in Freelown and seek to agree
whether the disputed amounts are payable under this Agreement.
(b) A Party may not dispute an invoice more than 90 Days after the due date of that invoice.
9.6 Collection Account Agreement
(a) The Offtaker shall maintain the Collection Accounl Agreement in full force and effect
throughout the Term.
(b) Payments by the Oftaker under this Agreement shall, where applicable, be made in
accordance with the Collection Account Agreement.
(c) Nothing in the Collection Account Agreement shall relieve the Offtaker of an obligation to
make a payment under thls Agreement.
9.7 Fuel Reserve Account
(a) The Generator and Offtaker shall discuss with the Finance Parties the possibility of
establishing a debt-funded fuel raserve account, the balance of which would be utilised if
the Offlaker does not meet its obligations to pay the Output Charge under Clause 8 (Sale
and purchase of Net Dependable Capacity and Net Output).
(b) For the purposes of releasing any available balance standing to the credit of a fuel
reserve account established pursuant to paragraph (a) only, any undisputed sum that is
due and payable but not paid by the Offtaker under Clause 8 (Sale and purchass of Net
49
Dependable Capacity and Net Output) shall be deemed to be attrlbutable to the Output
Charge.
(c) Nothing in this Clause 9.7 shall relieve the Offtaker of an obligatlon to pay the Output
Charge, ngr to pay interest for late payment of the Output Charge.
9.8 Due date
Each payment to.be made under or in connection with this Agreement shall be paid on the due
date but if that date is not a Business Day, it shall be paid on the next Business Day.
9.9 Goods and services tax
Any applicable value added, sales or goods and services tax shall be paid by the Offtaker to the
Generator at the appropriate rates in addition to the Capacity Charges, Output Charges and
other amounts payable to the Generator under this Agreement wilh such amounls payable on
the later of (a) the dale of payment of the relevant Capacity Charges, Output Charges and other
amounts payable lo the Generator under this Agreement and (b) receipt by the Offtaker of a
valid and approprlate invoice.
9.10 No set-off or deduction
Subject to Clause 9.11 (Gross-up), each paymenl to be made pursuant to the terms of this
Agreement shall be made in full, without any set-off or deduction save as required by Law.
9.1'l Gross-up
(a) Subject to paragraph (c) below if a party making a payment pursuant to the terms of this
Agreement (lhe Payor) is required by Law or the laws of any jurisdiction to make a
deduction from such payment, the amount payable to the recipient of such payment (the
Reclplent) shall be increased to the extent necessary to ensure that, after such
deduction has been made, the recipient receives (after such deduction) a net sum equal
to the amount thal it would have received had no such deduction been required.
(b) lf the Recipient has received an increased payment fiom the Payor under paragraph (a)
and either the Recipient or a related party has receivsd or subsequently receivos a credit
against, relief or remission for tax payable by it, or any repayment of Tax (a Credit), the
Recipient will, in its discretion acting reasonably, establish the amount (if any) which, as a
result of such receipt, it is able to repay to the Payor promptly without putting itself (and,
where the.Credit is received by a related party, it and the related party together) in a
worse position than if no deduction had been required and will pay such amount (if any)
to the Payor as soon as reasonably practicable.
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(c) Paragraph (a) above shall not apply where lhe Recipient is the Offtaker and the
deduction is for or on account of tax imposed by Sierra Leone.
9.12 Currency
(a) Subject to paragraph (b), all payments required to be mads under this Agreemenl shall
be made in US$.
(b) The Generator may issue invoices in SLL or US$. lnvoices issued in SLL shall be
calculated by converting the US$ amount payable under this Agreement from US$ into
SLL at the exchange rate actually available to lhe Generator from its Sierra Leonean
account bank on the date the invoice is issued for an amounl equivalent to the payment
in question. Amounts invoiced in SLL shall be paid in SLL to the Generator's Sierra
Leonean bank account. Amounts lnvoiced in US$ shall be paid in US$ to a bank account
of the Generator outside Sierra Leone.
(c) The Generator will provide tho bank account details for the accounts descrlbed in Clause
9.1(b) in each invoice.
(e) The Generator is irrevocably authorised to convert the amounl received into the correct
currency and to apply the net proceeds in reduction of the Offtaker's liability.
9.13 lnterest for late payment
(a) lf any Party fails to pay an amount payablo in connection with this Agreement (including
an amounl payable under this Clause 9) on the duo date for payment, it will pay interest
on lhat amount from the due date until the date of payment (whether before or after
arbitral award) in accordanco wlth this Clause 9.13.
(b) The rate of interest payable under paragraph (a) shall be the one monlh USg LTBOR
interest rate which would be applicable to a similar amount plus two and a half per cent
per annum, compounded on the last day of each calendar month.
(c) lnteresl is payable under paragraph (a) on the last day of each calendar month or, if
earlier, on the date on whlch the Offtaker pays an amount in respect of which the interest
is accruing.
(d) lf a payment is received from the Offtaker in the wrong currency, thal payment will not
discharge any part of the obligation in respect of which it was made.
(0 The Generator shall have no liability with respect to the timing or rate of conversion into
the conect currency.
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10 Other obligations
1O.1 Compliance with Laws
The Generator shall comply with the Law at all tlmes.
10.2 Minimuminsurancerequirements
(b) lf the Generator fails to obtain or maintain any insurance in accordance with paragraph
(a), the Offtaker shall be entitled to obtaln such insurance at the Generator's cost.
10.3 lnsurancecertificates
The Generator shall provide copies of all insurance certificales for insurances required under
Clause 10.2 (Minimum insurance requirements) to the Offtaker within 30 Days of those
insurances being plac€d or renewed.
10.4 Monitoring
(a) The Generator shall deliver a written monthly report to tho Orftaker within 90 Days after
the end of each Month in a format agraed between the Generator and the Offtaker.
(b) The Generator agrees that, upon reasonable advance nollce to the Generator, duly
aulhorised representatives of the Government, the Grid Operalor or Government
Authorities may inspect the Plant in connection with their performance of, and exercise of
their rights under lhis Agreement, the other Sierra Leone Documents and the Law.
(c) Tho Offtaker shall not, and shall procure that no representatives conducting an inspection
under paragraph (b) interferes with the performance of the Generato/s obligations under
the Prorect Docum6nts.
(d) The Offtak6r shall comply, and shall procure that all representatives conducting an
inspection under paragraph (b) comply with the reasonable instructions of the Generator
or its contractors in relation to safety and security.
(e) Each Party shall keep complete and accurate records and all other data required by each
of them for the purposes of proper administration of thls Agreement and the other Sierra
Leone Documents, including an up-to-date operaling log, and records of:
(a) The Generalor shall obtain and maintaln in full force and effect the mlnimum levels of
insurance cover specified in Schedule 9 (lnsurance) wlth reputable insurers, unless and
to tho extent that such cover is not available on reasonable commerclal terms.
@2
(i) Reactive Power production for each Hour, frequency and 33 kV bus voltage at all
times:
(ii) changes in operating status, emergencies, Scheduled Outages and Forced
Outages;
(iii) any unusual conditions found during inspections; and
(iv) other matters agreed by the Operating Committee
(f) The Offtaker shall have the right, upon reasonable prior wrltten notice lo the Generator, to
examine and/or make copies of the records and data of the Generalor referred to in
paragraph (e) at any time during normal office hours during the period such records and
data are required to be maintained.
(S) All records refered to in paragraph (e) shall be maintained for a minimum of 10 Years
after the creation of such record or data and for any additional length of time required by
Law.
10.5 Sierra Leone Local Content Policy
The Generator shall comply with the requirements set out in Schedule 10 (Sierra Leone Local
Gontent Policy).
10.6 Secondment of employees
The Offtaker and lhe Generator intend to negotiate and enter Into an agreement for the
secondment of staff from the Offtaker to the Generator or the O&M Contractor wilh effect from
the Phase I Commercial Operation Date.
10.7 Security
(a) The Generator shall lake such measures as are required for ths securily of the Plant.
(b) The Ganerator may contract with a private socurily company for the provision of security
guards and surveillance by closed circuit television camoras for the protection of the
Proiect Sites from trespass and any criminal public order offence.
(h) The Generator shall not dispose of or destroy any records vvhere it ls permitted to do so
by paragraph (g) without 12 Months prior witten notice (generally describing the records
or data to be destroyed or disposed of) lo the Offtaker, and the offtaker may receive such
records in lieu of such disposal or destruction by giving at least 30 Days prior notice to
the Generator before to the expiration of the l2 Month period.
10.8 Subconlracts
(a) The Generator may perform its obllgations under this Agreement through subcontractors
of any tier, including each EPC Contractor and each O&M Contractor, provided that the
appointment of any contractor by the Generator or subcontractor by the contractor shall
not relieve lhe Generalor of any of ils obligations or liability ln relation to the Generation
Proiecl under this Agreement or other Sierra Leone Documents.
(b) The Generator shall give at least 30 Oays prior notlce to the Offtaker of any change to the
identity of an EPC Contractor or O&M Contractor.
10.9 Beneficial Change ln Law
(a) lf there is a Change in Law which results in a Financial Beneflt to the Generator, thg
Offtaker shall deliver a notice to the Offtaker within 30 Days of becoming aware of that
Financlal Benefi t, specifying:
(D the cause and amount of the Financial BBnefit that it reasonably considers to be
attributable to the Change in Law; and
(iD the Offtake/s proposed mechanisms for claimlng the benefit of the Flnancial
Benefit.
(b) Within 10 Days of delivery of a notice under paragraph (a), the Parties shall meet at the
offices of the Offtaker in Freetown to discuss the sub.iect matter of the notice and seek in
good faith to agree the amount of the Financial Benefil.
(c) The Generator shall pass the Financial Benefit to the Offtaker by a lump sum payment to
the Offtaker in th€ case of an upfront Financial Bonefit or an adjustment to the Capacity
Charges and/or Output Charges in the case of other Flnancial Benefits, in either case
structured so as to preserve:
(i) the Generator's minimum and average debt service and loan life cover ralios as
forecast immediately prior to the Financial Benefit being realised; and
(ii) the rate of return anticipated by the Generator's shareholders immedlately prior lothe Financial Benefit being realised,
in either case as demonstrated by the Generator's financial model.
(d) lf the Parlies have not agreed the amount of the Financlal Benefit, the reimbursement
mechanism or the calculation under paragraph (c) withln 60 Days of delivery of a notice
under paragraph (a), the Offtaker may refer those matters for Expert Determination.
54
'10.10 Liability for damage to property, doath and personal injury
(a) The Generalor shall hold harmless and reimburse the Offtaker Parties from and against
all Losses to the extent that:
(i) lhose Losses result from damage to property, death or personal injury;
(ii) the damage to property, death or personal injury refer,ed to in paragraph (i) results
from elther the breach of thls Agreement by the Generalor or one or more
negligent acts or omissions of a Generator Party that is connected with the
Generation Project;
(iii) lhose Losses are nol caused by the negligence, masconduct or breach of contract
of any Offtaker Party or the failure of any Offlaker Party to take reasonable sleps to
mitigate such Losses; and
(iv) in relation to Losses resulting from damage to property, the amount of those
Losses does nol exceed US$500,000 (or its equivalent in any currency) arising out
of any one occurrence.
(b) The offtaker shall hold harmless and reimburse the Generalor Parties from and against
all Losses to the extent that:
(D those Losses result from damage to property, death or personal injury;
(ii) the damage to property, doath or personal injury refened to in paragraph (i) results
from either the breach of this Agreement by the Offlaker or one or more negligenl
acts or omissions of an Ofltaker Party or a high voltage customer connected to the
New Transmission Facilities (if any) thal is connocted with the Generation Project;
(iii) those Losses are not caused by the negligence, misconduct or breach of contract
of any Generator Party or the failure of any Generator Party to take reasonable
, steps to mitigate such Losses; and
(iv) in relation to Losses resulting from damage to property, the amount of those
Losses does not exceed US$500,000 (or its equivalent in any ourrency) arising out
of any one occunence.
(c) Each Party shall notify the other Party in writing of any evenl that may result in a Loss
requiring reimbursement under lhis Clausa 10-10 as soon as the first Party becomes
aware of thal event but a failure by the Pa(y suffering Losses to so notify the reimbursing
Party shall not reduce the reimbursing Partys obligations under this Clause 10.'10, except
to the extent that the reimbursed Party's delay increases its Losses.
(d) A reimbursing Partys liability under paragraph (a) or (b) with respect to any Loss
consisling of a third party claim shall arise only upon:
(i) the settlement of lhe Loss by the reimbursed Party with the prior written consent of
the reimbursing Partyi or
and the reimbursing Party shall reimburse the other Party in respect of that Loss within 30
Days after notice from the other Party that it has paid the claim pursuant to that
settlemer , iudgment or award.
10.1 1 Financial model
(a) The Parties acknowledge and agree that as at the Signing Date the Generator's financial
model was indicative only, and that the Generator envisagbs linalising a flnancial model
at Financial Close for Phase land updating it at Financial Close for Phase ll and
Financial Close for Phase lll.
(b) The Parties agree that the financial model will:
(i) accurately and fairly reflect the 128MW Generation Project; and
(ii) be prepared in a manner which reflects best international project finance practice.
11.1 Notice of Force Majeure Event
(a) A Party that is prevented, hindered or delayed in performing any of its obligations under
thls Agreement by a Force Majeure Event shall deliver a notice to the other Party wlthin
10 Days of the dale on which it became aware of the effect of such ovent, or within 10
56
(ii) the giving or making of a judgment or award with respect to the Loss by a court or
tribunal of competent iurisdiction which either cannot be appealed or where the
time limit for lodging an appeal has expired,
(c) The Gonerator shall pmvide the Offtaker with a soff copy of each financial model no laler
than 30 Days after the relevant Financlal Close. lf lhe Oftaker, acting reasonably,
believes that the financial model does not conform with the requirements of paragraph
(b), then the Parties shall meet as soon as is reasonably practicably to discuss in good
faith whether any changes need to be made to the financlal model to make it conform
with tha requirements of paragraph (b). lf the Parties do not reach agreement within 00
Days after the relevant Financial Close, then either Party may refer the matter to Expert
Delermination.
11 Force Majeure Events
@4
Days of the date on which it oughl reasonably lo have known its performance would be
so impacted, specifying:
(i) the event or oiroumstance that Gonstitutes the Force Majeure Event in reasonabls
detail;
(ii) the impact or anticipated impact of the Force Majeure Event on lhe affected Partys
performance of its obligations under this Agreement:
(iii) the affected Party's reasonable estimale of the duralion of impaot of the Force
l\4ajeure Event on the affected Party's performance of its obligations under this
Agreemenl; and
(iv) the steps that the affected Party has taken, is taking or intends to take under
Clause 11.2 (Mitigation).
(b) ll a Paiy does not deliver a notice when required undsr paragraph (a), the protections
available to that Party under this Clause 11 in relation that Force Majeure Event shall
apply only from the time when such a nolice is delivered.
(c) For so long as a Party continues to claim to be affected by a Force Majeure Event, it shall
provide weekly progress reports to the other Party in relatlon to:
(i) the affected Partys reasonable estimate of the length of time its performance will
continue to be affected by such Force Maieure Event: and
(ii) the actions taken and actions proposed to be taken by lhe affected Party in order
to mitigale the impact of lhe Force Majeure Event.
(d) A Party affected by a Force Majeure Event shall notify the other Party immediately in
writing of the time when it conslders the Force Majeure Event to have ended-
'11.2 Mitigation
(a) A Party that is prevenled, hindered or delayed in performing its obligations under this
Agreement by a Force Maieure Event shall:
(i) use its reasonable efforts to mitigate the eflocts of that Force Majeure Event;
(ii) perform such of lts obligations as are not prevented, delayed or hindered by that
Force Majeure Evenl; and
(iiD resume full performance of its obligations under thls Agreement as soon as
reasonably practicable after that Force Majeure Event ceases to prevent, delay or
hinder such performance.
57
(b) Notwithstanding any other provislon of this Agreemenl, a Party shall be entitled to the
protections available to it under this Agreement in relation to a Force Majeure Event only
to the extent that it has complied with its obligations under paragraph (a) in relation to that
Force Maieure Event.
1 1.3 Non-performance excused
(a) Except as provided in paragraphs (b) and (c), a Party shall be excused from performing
its obligations under this Agreement to lhe extsnt that its failure to perform those
obligations is caused by a Force Majeure Event.
(b) The suspenslon of performanco shall be of no greater scope and of no longer duration
than is required by the Force Majeure Event, plus a reasonable additional period to
enable the affected Party to remobilise followlng the dale on which the Force Maleure
Event ceases to render the affected Party unable to perform lts obligations under thls
Agreement.
(c) Nothing in this Clause 11 shall excuse
(i) any failure to pay money; or
(ii) any failure or delay to the extent that such failure or delay would nevertheless have
been experienced by that Party had the Force Maieure Event nol occurred.
11.4 Payments during Force Majeure Events
(a) lf the Offtaker is affected by a Force Majeure Event (including unavailabilily of the Grid or
lhe New Transmission Facilities), it shall continue to pay Capacity Charges in accordance
with Clause 8 (Sale and Purchase of Net Dependable Capacity and Net Output).
(b) Nothing ln this Clause 11 shall require the Offtaker to pay the Output Charge for Net
Output that is not actually delivered in accordance with this Agreement.
11.5 Extension of Term
(a) lf a Force Majeure Event occurs on or after the Phase I Commercial Operation Date and
prevents the Generator from making available the Net Dependable Capacity of Phase l,
the Phase lTerm (and thereby the date on which the Capacity Charge steps down under
Clause 8.2 (Payments for Phase I following expiry of Phase I Term)) shall be €xtended by
a period of time equal to the duration of the Force Majeure Event.
(b) lf a Force Majeure Event occurs on or after the Phase ll Commercial Operation Date and
prevenls the Generator from maklng available the Net Dependable Capacity of phase ll,
nderthe Phase ll Term (and thereby the date on which the Capacity Charge steps d
6@'
Clause 8.4 (Payments for Phase ll folloWing expiry of Phase ll Term)) shall be extended
by a period of time equal to the duration of the Force Majeure Event.
(c) lf a Force Majeure Event occurs on or after the Phase lll Commercial Operation Date and
prevents the Generator from making availabie the Net Dependable Capaclty of Phase lll,
the Phaso lll Term and the Term shall be axtended by a period of time equal to the
duralion of the Force Majeure Event.
'11.6 Exclusions from Force Majoure Events
The following events, circumstances or conditions shall not constilute a Force Majeure Event:
(a) strikes, lock-outs, lndustrial disputes, industrial difliculties, work bans, blockages,
picketing or other industrial action solely or primarily by employees of the affected Party
or its subcontractors of any tier;
(b) any failure to lake into account prevailing ground conditions (including geological
conditions) that should have been toreseen by the use of Good lndustry Practice based
on the information actually available to the Generator as at the Signing Date:
(c) lack of funds due to any commercial, economic, or financial reason, including the
Generator's inability to achieve a satisfactory rale of return;
(d) failure or delay of performance by a subcontractor (including a Fuel Supplier), excepl to
lhe extent that such failure or delay is itself caused by a Force Majeuro Event.
'11.7 Exclusion of general law force majeure principles
No Party shall be excused from performing its obligations under this Agreement by any
unforeseen event or circumstance, nor any event or circumstance beyond its conlrol except as
expressly set out in this Agreement.
12 Offtaker Risk Events
1?j Notification of Oftaker Risk Event
lf the Generalor is prevented, hindered or delayed in performing any of its obligations under this
Agreemenl by an Offtaker Risk Event, it shall deliver a notice to the Offtaker within 10 Days of
the date on which it became aware of the effect of such event or within 10 Days of the date on
which it ought reasonably to have known its performance would be so impacted, specifying:
(a) the event or circumstance that constitutes the Offtaker Risk Event in reasonable detail;
5g
(b) the impact or anticipated impact of the Offtaker Risk Event on the Generator's
performance of its obligations under this Agreement;
(c) the Generator's reasonable estimate of the duration of the Offtaker Risk Event on the
Generator's performance of its obligations under this Agreement;
(d) the action that it has taken, is taking or proposes to take under Clause 12.2 (Mitigation);
and
(e) ils cunent estimale of any Loss that may be caused by the Oftaker Risk Event.
12.2 Mitigation
(a) The Generator shall:
(i) use its reasonable efforts to mltigate the effects of an Offtaker Risk Event;
(ii) perform such of itsrobligations as are not prevented, delayed or hindered by that
Offtaker.Risk Event; and
(iii) resume full performance of its obligations under this Agreement as soon as
reasonably practicable after that OFftaker Risk Event ceases to prevent, delay or
hinder such performance.
(b) Notwithstanding any other provision of this Agreement, tho Generator shall be entitled to
the protections available to it under this Agreement in relation to an Offtaker Risk Event
only to the extent that it has complied with its obligations under paragraph (a) in relation
to that Offtaker Risk Event.
12.3 Non-performanceexcused
(a) The Generator shall be excused from performing its obligalions under this Agreement to
the extent that its failure to perform those obligations is caused by an Offtaker Risk Event,
provided, however, that no relief shall be granled to the Generator pursuant to this
Clause 12 to the extent thal such failure or delay would have nevertholess been
experienced by the Generator had such Offtaker Risk Event nol occuned.
(b) The suspension of performance shall be of no greater scope and of no longer duration
than is required by the Offtaker Risk Event, plus a reasonable additional period to enable
the Generator to remobilise following the date on which the Offtaker Risk Event ceases to
render the Generator unable to perform its obligations under this Agreement.
@.
12.4 Capacity Charges if an Annual Tesl or Additional Test cannot be conducted
(a) lf an Offtaker Risk Event prevents or delays an Annual Test or Additional Test from being
Duly Completed, paragraph (b) shall apply to the calculation of Capacity Charges from
the Day on which the Annual Test or Additional Test would have been Duly Completed
but for the Offtaker Risk Event unlil the earlier of:
(i) the Day on which an Annual Test or Additional Test is Duly Completed;
(ii) the Day on which an Annual Test or Additional Test is conducted but is not Duly
Completed other than due to an Offtaker Risk Event; and
(iii) the Day on which this Agreement is terminated.
(b) Capacity Charges for the period referred to in paragraph (a) shall be calculated and paid
in accordance with this Agreement, €xcepl that the Net Dependable Capacity shall be
deemed to be equal to the Net Dependable Capacity eslablished by the most recent COD
Test, Annual Test or Additional Test Duly Completed before the Generator was affected
by the Offtaker Risk Event.
(c) lf the Net Dependable Capacity established by the next Annual Test or Additional Test to
be Duly Completed after the Generator is no longer affected by the Offtaker Risk Event is
less than the deemed Net Dependable Capacity used to calculate Capacity Charges
under paragraph (b), the Generator shall repay to the Offtaker a proportion of the
Capacity Charges paid by the Offtaker under paragraph (b) attributable to 50 per cent of
the differencd between those two Net Dependable Capacities.
(d) Any Dispute with respect to when an Annual Test or Additional Test would have been
Duly Completed but fo[ an Offtaker Risk Event or the calculation oI Capacity Charges
under this Clause 12.4 shall be seftled by Expert Determination.
(a) lf an Offtaker Risk Event occurs or is continuing afler th6 Phase I Commercial Operation
Date and adversely affects tho Generatofs ablllly to make available the Net Dependable
capacity, paragraph (b) shall apply to the calculation of capacity charges in respect of
each Hour during whlch the Generator's ability ls so affected.
(b) Capacity Charges for the period refened to in paragraph (a) shall be calculaled and
involced in accordance with this Agreement, except that:
(,) the Net Dependable Capacity; or
61
12.5 Capacity Charges if availabilily of Net Dependable Capacity is advercely affecled
(iD if Clause 12.4 (Capacity Charges if an Annual Test or Additional Test cannot be
conducted) also applies in respect of that Hour, the Net Dependable Capacity
established by the most recent COD Tesl, Annual Test or Additional Test Duly
Completed before the Generator was affected by the Offtaker Risk Event,
shall be deemed to be available in respect of each Hour of that period.
(c) lf the Offtaker Risk Event affects only part of the Plant, then the Capacity Charge during
the event shall be the sum of:
(i) the payment described in paragraph (b), pro-rated to re{lect the part of the Plant
affected by the Offtaker Risk Event; and
(ii) the Capacity Charge calculated in accordance with Schedule I (Tariff), pro-rated to
reflect the pari of the Plant not affected by the Offtaker Risk Event-
(d) Any Dispute with respect to the calculation of Capacity Charges undet this Clause 12.5
shall be settled by Expert Determination.
12.6 Output Charges unaffected
For the avoidance of doubt, nothing in this Clause 12 shall require the Offtaker to pay the
Output Charge for Net Outpui that is not actually delivered in accordance with this Agreement.
12.7 lncreased Costs
(a) lf the Generator incurs or believes that it is likely to incur Increased Costs, il shall:
(i) deliver a notice to the Offtaker within 30 Days of becoming aware of such
lncreased Costs or forming such a beliei speciffng:
(A) the cause, nalure and amount or anticipated amount of such lncreased
Costs in reasonable detail;
(B) the steps lhat lhe Generator has taken, is taking or intends to take to
mitigate the lncreased Costs; and
(C) the Generator's proposed mechanisms for funding the lncreased Costs and
for reimbursement of the lncreased Costs by the Offtaker; and
(ii) use its reasonable efforts to mitigate the lncreased Costs
(b) The Generator shall be entitled to the protections available to it under this Clause 12.7
only to the extent that it has complied with its obligations under paragraph (axii).
@v
(c) Within 10 Days of deliverl, of a notice under paragraph (a), the Parties shall meet at the
offices of the Offlaker in Freetown to discuss the subiect matter of the notice and seek in
good faith to agree the amount of lncreased Costs.
(d) The Offtaker shall reimburse the Generator in respect of the lncreased Costs by way of a
lump sum payment to the Generator in the case of lncreased Costs that are capital costs
or by way ol an adjustmeni (o the Capacity Charges and/or Output Charges in the case of
lncreased Costs that are operating costs, in eilher case structured so as to preserve:
(i) the Generator's minirnum and average debt servlce and loan life cover ratios as
forecast immediately prior to the lncreased Costs being incurred: and
(iD ihe rate of return anticipated by the Generator's shareholders immediately prior to
the lncreaseci Costs being incurred,
in either case as demonstrated by the Generator's financial model.
(e) lf the Parties have noi agreed the amount of lncreased Costs, the reimbursement
mechanism or the calculation under paragraph (d) within 60 Days of delivery of a notice
under paragraph (a), the (lenerator may refer those matters for Expert Determination.
13.1 Reinstatementobligation
lf a Casualty Occurence occurs, the Generator shall repair and reinstate the Plant to the extent
required under this Clause 13.
13.2 Financial resources for reinstatement
The Generator shall pursue all rights of compensation and indemnity with respect to a Casualty
Occurrence, compromising such claims as it reasonably sees fit.
13.3 Reinstatementdetermination
(a) As soon as reasonably 1:,r'acticable after a Casualty Occunence occurs, the Generator
shall determine whether the following financial resources are sufficient to enable the
Generator to reinstate the Plant or part of the Plant that is affected by the Casualty
Occurrence on an economically feasible basis:
compensation recoverable from
Occurrence;
third parties with respect to the Casualty(i)
63
13 Reinstatement of phvsical damage
(ii) physical damage jnsurance proceeds available with respect to the Casualty
Occurrence; and
(iii) sums payable by the Offtaker under Clause 12.7 (lncreased Costs) with respect to
the Casualty Ocr;urrence, where it was caused by an offtaker Risk Event,
in each case to ihe e){tent those sums are permitted by the Finance Documents to be
applied to reinstatement.
(b) As soon as reasonablv practicable after a Casualty Occurrence occurs, the Generator
shall notify the Offtaker of its determination under paragraph (a), providing reasonable
detail of the basis of its determination.
13.4 Positivereinstatementdetermination
(a) lf the Generator determines under Clause 13.3 (Reinstatement determination) that the
Plant or part of the Plant affecled by a Casualty Occurrence can be reinstated on a
commercially feasible basis, the Generator and the Offtaker shall use their reasonable
endeavours to agree a programme of reinstatement works.
(b) The Generator shall use its best endeavours to implement a reinstatement plan agreed
by the Parties under paragraph (a).
13.5 Negativereinstatemenldeterminalion
(a) lf the Generator determines under Clause 13.3 (Reinstatement determination) that the
Plant or part of the Plant affected by a Casualty Occurrence cannot be reinstated on a
commercially feasible basis, either Party may terminate this Agreement in accordance
with Clause 14.5 (Termination following Casualty Occurrence).
(b) ll the Offtaker disputes a negative reinstatement determination made by lhe Generator
under paragraph (a), the Offtaker may refer the Dispute for Expert Determination.
13.6 Other remedies unaffected
For lhe avoidance of doubt, nothing in this Clause '13 shall alfect lhe Generalor's other rights
under this Agreemenl, including its right to receive Capacity Charges calculated based on
deemed completion oi lhe Plant or deemed avallability of the Net Dependable Capacity
following a Casualty Occurience caused by an Offtaker Risk Event.
64
I
i
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89
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ro :aceld u! Ind s1 ealuereno -,;st.r lErued aql (l)
:roue sqluorx
9 slle] leql alep eq1 [q paqoeor ueaq lou seq I aseqd ]o] asolC lEroueu!:l Jt solued raqlo
eql o] uo[euruJal ,o ecllou ueuuir 6u!^!6 {q lueulaaroy slq] olBurur.ts} ,{eur {ye6 {uy (p)
'uo[eurtxraleQ
Uadxf ol J€Ieu, oql Jeld ^ew
IuEd iaqlle uaql 'slsoo lueurdolara6 slnlllsuoc
lou op sa^allaq JaleUO stll leql qsoc pgolo u! ^up
lo lrelop nr pue ^lln,
lolelaueg
eql ^,tlou
pue slsoC luaudop^ae aql lpne ol s{eo oe a^eLl lleqs luauuJa^o9 aq1 (c)
'ac!olu! ue lo uollBluasa:d 1o s[e6 gg urqy,a
slso3 luaurdola^ao aql lo luoc rod 09 ro] sreploqoreqs aql pue roleieuag aql eslnqureJ
lleqs lueuure^oe eql ueql 'uoddns IpoJC aql ulelqo o1 luaurearov stql rapun suo0eorlqo
sU ql!^ IFuroc ol arnflp] s,]uourura^o9 eql ol olqElnq!4le se^ uo,Jdns llparC aql urelqo
ol oJnlle, aql fi '^Ued raqlo oql ol uoteuruJel ,o acnou ue11mr Oumr6 Iq luauoaJ0v
slql aleurulal ^eu
IUed €qlra 'oleo o^llcej]S aql JollE sqluour (Z[) o^lo ^]
oulllpl
elep eql uo (yoddns llpo], aql':aqle6ol) ernlcnJls luauocuequa llparo a^lleuJolle
apeluBq eql ro ealuereno Isu lerued IUeg ppoM aql peulelqo lou seq lueuruE og eqt ]l (q)
.olPo
ouruors aql laue sqtuou.r Z! ulqllM pel.lncoo lou seq aleo o^!l3e.U:l aql I sarl.led ror.llo
eql ol uolteulurol lo acllou uallu/r 6ur^l0 Aq luetuae.Ey srql steLrural Aeu [ye6 req43 (e)
selep do;s6uo1 A rl
69
tsnl) e Inpaqcs u! lno las suoll
'(suouec4rcadg
eculcads aql ql!/n ^ldruoo
tou soop leqt lanl lcolor (q)
pue :rolerouog aql Iq paulelureu ^cr;od
acuernsul r{ue atertn plnoiu }eq} 6ulqy(ue op lou (0)
:sluorunooc acuBuU oql rapun
llnelap ]o luola ue olnylsuoc ro Jo qcearq ur rolerauag aq1 1nd plnor* 1eq1 6u;qp{ue op 1ou (])
:,1el aql lo qoea]q ur roleJauae aql lnd irlno/'^ leql outql^ue op lou (a)
islqOrU uFdals leuorleJadO a.l) 6utstr.roxa Jo slsoc olqeuoseaJ
s,JaIeUlO aql Jo] uollcnpap ol lcafqns 'luor-uoar6v slql lapun elqe^ed slunoue Jaqlo pue
saoreqC lndlno 'luo^3 urdals leuolleredo eql ]o acuarncio aql o] Joud ^lalerpauull
a;qec1;dde ^lrcedeC
alqepusdaq laN oql uo poseq sa6reqC ^llcedeg ^ed
ol anuquo3 (p)
:sluouncoo lcafoJd aql repun suorlBorlqo s,rolerauae aql ]o lle ujro.pad (c)
:lauuosrad palllenb ^lluopl#ns
lo raqunu eienbape ue r(q pauleluleul
pue palBrado oq ol luBld 6ql oulsnec,{q ourpn;cur 'a3lloerd ^4snput
pooe qlr.4,\ Ildtxoo (q)
Y^e-I olll qlr/v\ Ilduroc (e)
:lteqs JaleUlO aql 'slqoru uFdols lBUo[ejado aql 6u!sroJaxa ul
Llr-dals 6uunp suolleorlqo s,JaIelJlO Z'91
'ssl}led a9uEulJ eql Jo luasuo, uallluvr .ror.:d aql qyrn ueql :aq1o
'luauiaoJov paJlo Vdd oql repun popad uydals ^ue
6upnp s1q6ry ur-da1g ;euo11e:ed6
aql aslcraxo ol anulluoc Jo oslcJaxo 1ou r{eu releg;g aq1 pue lueu:aa:0y lcaJl6 Vddaql iapun slq6u uFdals,se0red eoueull eqt ol pehns are slqorE uFd3ls leuooeJodo aql (q)
'lueld aql lo ocueuerureur pue uo11e:ado
JaAo alel pue alls lueld sr.ll reluo'JoteJguag aql ol ocrlou ,srnoH ?Z lspol le oul^b
rarye 'rieur ra)elgo aql 'sjnseo lua^f u!-dols leuo[erado ue ! '(q) qderoeted o1 lcelqng (e)
slqorg ur-da1g :eyeg6 L 9 t
ul-elals leuollPrado lolElJlo gt
'luourdrnbo 6uuerauaO leql
Jo luaurlearl aql qlrel poo6 u! ssncstp ol lec[ceJd ,{;qeuoseel st sB uoos se loauj 'luoruaoiov
s|q1 1o r{rgdxa Jo uoD"ulr.xtol uo 'lpqs salued aq} '(c)[ e asnplC qll4\ ocueplocce ut pop!^old
uaeq seq ,{lcedec uopereuab lJerodual Jo Ml lO, }l ^ldde
11eqs (suo1s1no.r6 Lanopueg) y1
alnpaqcs pue '(uollEulr.r.uol uo JolsuBJI) I l alnpoqos ur lno las sural oql uo pue ropun pallnboJ
15.3 Generator's obligations durinc, step-in
The Generator shall cooperate with the Otftaker in all reasonable respects in connection with
the exercise of the Operational Step-in Rights but shall not be required to operate or maintain
the Plant whilst the Employer is exercislng the Operational Step-in Rights.
15.4 lndemnity
The Offtaker shall indemnify and hold the Generator harmless from and against:
(a) the reasonable costs oF cleaning and rectifying damage to the Plant caused by the
Offtaker Parties in exercising the Operational Step-in Rights: and
(b) any other Loss incurred or suffered by the Generator in conneclion with the exercise of
the Operational Step-irr Rights.
15.5 End of operational step-in
The Offtaker shall cease to exercise the Operational Stbp-in Rights and the Generator shall
resume the operation and maintenance of the Plant when the Generator has demonstrated to
the reasonable satisfaction of the Offtaker that the Generator is ready and able to resume
operation and maintenance oi the Plant in accordance with this Agreement.
16 Representations
16.1 Governmentrepresentalions
The Government represents to the Generator that the following matters are true in relation itself
as at the Signing Date:
(a) it has the powef to execute this Agreement and to exercise its rights and perform its
obligations under it and has obtained all necessary authorisations to do so;
(b) the person signing ttris Agreement on its behalf has the power and authority to do so;
(c) this Agreement has been validly executed on its behalf;
(d) this Agreement is legally binding on and enforceable against it; and
(e) this Agreement constitutes its private and commercial act
16.2 Representations by other Parties
Each Party (other than the Government) represents to the other Parties that the following
matters are true in relation to itself as at the Signing Date:
@,
(a) it is duly incorporated and validly existing under the laws of its place of incorporation;
(b) it has the power to execute this Agreemenl and to exercise its rights and perform its
obligations under ii and has obtained all necessary internal aulhorisations to do so;
(c) this Agreement has been duly executed on its behalf;
(d) this Agreement is legally binding and enforceable against it;
(e) except as disclosed to the other Parties before the Signing Date, no litigation, arbitration
or administrative proceedings is taking place which could have a malerial adverse effect
on it;
(f) this Agreement constitutes its private and commercial act;
(S) the execution and performance of this Agreement will not violate any laws or orders
binding on it or any of its constitutional documents; and
(h) it is not in default under arry agreement or arrangement to which it is a party or by which it
is bound in any manner that would have a material adverse effect on its ability to perform
its obligations under this Agreement or the validity or enforceability of this Agreement.
17 Governing law and Disprltc resolution
17 .1 Governing law
This Agreement and any Dispute or Claim arising out of or in connection with it or its subject
matter or formation (including llon-contractual disputes or claims) shall be governed by and
construed in accordance with the laws of England and Wales.
17 .2 Dispute resolulion
(a) Resolution by Consultation
(i) ln the event that there arises between the Parties any Dispute, the Party wishing to
declare a Dispute io the olher Party shall do so by a wrilten notice stating the
issues(s) in dispute ("Notice of Dispute").
(iD Within 20 Business Days lrom delivery of a Notice of Dispute, the Parties shall
attempt in good faith to settle the Dispute by negotiations among the authorised
representatives of each Pa.ty which shail inciude at ieast one Senioa Execuiive ot.)
behalf of each P;rrty. A "Senior Executive" means any individual who has
authority to negotiate the settlement of a Dispute or Claim for or on behalf of a
Party
71
,''-/a":
,.j,,.'
ZL
quol ourllos sleualeu ual!J/!\
(sacrroN) !'g! osnelC ur ssarppe 6ql le ^!ed
oulpuodsag eq1 pue r.radxe aq1 qloq
ol lruJqns uadxo aq1lo luatulurodde aql ]o s^po 0g ulqll^^ lleqs ^Ired
ourtertru; aq1 (,r)
'uonecrlddy qcns 10 elep eql uorj s,iep t l. ueqt ralel
lou Jo pouad e ulqlrn Uadxa oql luroddE lleqs VIO-I eq1 (i{qdei{ aq, uo[ec ddv
eql ur luecnddv aql ^q
peger s:alteur ,(ue o1 ,t1der e lue3rlddv eql ol ^doo
snoauellnurs ql!/v\ 'VlCl eql ol puos lpqs sarued ro ^llEd
Jsrllo eql 'uorlmrddv
oql Jo ocrruos lo sfep Z ulqlrl 'sorued Jo Iyed Jeqlo aql ol ^doc
snoouellnuls
q1m '1ledxa aql Ou1celes Jo sesodJnd oql ro, VIC'I oql ,o uo!]u3ue aql ol Ouuq
ol seqsm^ uo0ecllddv aql ouuBur &red eql lBql sJolleur ^ue
lno ouulas pue alndsrp
aql Jo ocuelsunom pue ornleu o$ Ourqpcsap lueuolels Jauq e pue luouJoar6v
srql Jo ^doc
e Oulsolcuo '(uo$Bcllddy oq, alndslg lecluq3al eql aururalep ol
Iodxo ue lurodde ol VlO"l eql ot 6un!m ur ^ldde ^eu
IUed :aq11e 'aotoe os rolpue
laaul ol olqeun a.re salued aql ]l 'uadxa aql aq ol uosrad e uodn aa:6e o1 s,{e6 91
]o pouad e urqlh qlrel poo6 u; ssncslp puE leau lleqs solued oq) 'olqelderJe ]ou
s! uosJed eqt leql ^Ued
6une;y1u1 aq1 sar]llou Jo puodseJ ol s1rel {ye6 oulpuodseg
aql I '€lqeldecce s1 r(ye6 oullelllut otll ^q
pasodold yedxe aq1 raqlaqm
^ued oulelllul aql
^]!lou 'Uedxo ue o] a]ndslo lecluqcal aql fiuruuJqns acllou
uollj/v\ qons ss^lacar l! elep aql Jo sAeO ue^as urql /r 'lleqs Aued Durpuodsau oqf (^D
'Uedxe aql aq ol sasodoJd l! uosled oq] outleulurou
pue uodxe ue ol olndsrc lEcruq3ol oqt oururuqns sr I 1eq1 ouuels sxrlou uolllr,rv\
e q1m (rgre6 Eulpuodsou aql) selued ro ^ued
.rotllo oql apr^o.rd lleqs uedxo oql
ol (i1rEd 6u$e!l!ul aql) alndsrq leelutpal aql lo uolssluqns Buryerlrur [pe4 eq1 (ttt)
'elndsro lecuqcel eql u! pa^lo ul ^Ued
/iue lo rolce4uoo
ro aoAoldua 'lua6e JauJJol e lo Jol3e4uoc Jo 'aelodua 'lua6e ue aq lou lleqs pue
salelar alndslo leouqcal qcns qclqM ol ee.le eql u! esluedxo a^eq lleqs tEdxe eql (l!)
'(q) qde roered srql
ql!/v\ ocuepJocce u! Uadxe ue,{q perr;oser [||eug pue o] poJra]ar aq ;1eqs elndsr6
lmluqcal qcns ueql (uonellnsuoC r(q uo!!nlosa6) (e)7 21 asne13 ! lllri\ eeuepJooee
ul elndslo lecruqcel e a^losar ol alqeun aJe sarued aql ler-l] lua^o aql ul (t)
uo[eurulolao uadx] (q)
{uoue4rqry Aq uonnlosau alndsrq)
(c)Z'l! osnelC ro (uolleulurJalao Uadx=) (q)zzt esnelC qllvr eouEprocoe ul
pa^losar sq ol olndsro aql Jolar ol paBrlua oq lleqs Aued ^ue
uaql 'ouq /v\ ur aaloe
AeuJ sa[.red e[]l sB polred Joouol qcns Jo s^eo ssaulsn8 0z urrll^ seupd ol.ll
1o sanpeluasaldal paslJoqlne oq) Iq poll)as oq louuEo elndsro aq1 1eq luene aq1 u1 (ID
ZL
quol 6ullles slelJoleu uollu^
(sacloN) !'BL esnelC u! sse:ppE eql le []red Burpuodseg oql pue t.radxe eq] q]oq
ol llurqns uadxo aql lo lueurlulodde a$ lo s,(ee 00 ulr.llM lteqs ^ued
6u1euru1 aq1 (,r)
'uooecrlddy qcns 1o olep eql LUor] s^pp Fl ueql ralel
lou lo porrod e ulqlyvr pedxe aql lurodde lleqs VlOl eq1 (rtldog aq1) uoqecrlddy
eql ur lumrlddv a$ ^q
pasleJ sre eu., ^ue
ol ^ldal
e luesrlddv eql ol ^docsnoauBllnurls ql!/vl 'VIC'I eql ol pues lleqs salued ro &Jed .raqlo eql 'uortB?rlddv
or,ll Jo ac!ruas 1o *(ep I urqlrM sorued Jo ^Ued
ror{lo aql o} ^doo
sno€uBllnurls
q1;rn'yadxe aq1 6ugce;es ]o sosodJnd et|l rol VlCl oql jo uorluolre eq1 o1 6ur.rq
ol saqsf'/\ uo[ecrlddv aq] outptu r{yed aql leql eaUEur ^ue
1no 6ur11as pue o}ndslp
aql ,o aouplsuncrc pue eJnleu aql Ourqucsap Juauolels,sr.rq e pue luauroar6v
slql Jo ^do3
e oulsolcuo '(uoJlec1;ddy aq, alndsro leoruqoa-L aql auru,ralop ol
Uedxa ue lurodde o] VIC'I aql ol 6u0tJ^^ ur ^ldde ^eur
IUed roqllo 'oar6p os Jo/pue
laau ol alqeun aJe sorued eqlJl Usdxa aql oq ol uosrad e uodn aa.roe ol sIeO 0|,
,o polJed e urqlh\ ql!e] poo6 ul ssncslp pue laau lleqs seuecl 3ql 'alqeldaoce lou
st uosled eql leql ,!red Ouueruul aql sarltou Jo puodser o1 spel I1;e4 6urpuodsau
aql ,l 'olqeldacce sr ^Ued
6uqe0rul aql ^q
posodo.rd uodxa aql raqlaq/v\
IUed 6ulp0rul oq &[ou 'Uodxa ue ol elndslg lecluq3af eql Dur1rulqns acllou
uallu^\ r.pns so^ro3o.l lr slep aqllo s^e6 uarras ulqlm'llErls A).red ourpuodseu eql (^D
'Uedxa aql aq ol sosodord lr uosJad aql 6u0euruou
pue Uadxa ue ot elnd$O lecluqoal eql 6ul1luqns s! l! teql Dutels aellou uoll!.lm
e qu/v\ (Iued oulpuodsou oql) seued ro ^ued
.rotllo or.{l apr^o.rd ;laqs padxs aq1
ol (^Ued 6u;1e11;u1 aq1) alndsq lecluqcal oql Jo uolssrurqns Duueurur ,!le6 aq1 (ltt)
'alndsrq le3rullcaf aqt ul pa^lo^u! ^lied ^ue
Jo rolcerluoc
ro aalopure 'lua6p Jsruro] e ro Jope4uoo Jo 'ee,(o;dua 'lue6p ue oq lou lleqs pue
soleloJ olndsro lecruqcal qcns qcrq A ol eaie 6ql ur asruadxa a^eq llEqs Uadxe aqf (!D
(q) qda6e:ed stql
tllli ecuepJoccE u! Uadxo ue i{q po^losej {11eu4 pue o} per.ro}a.r eq ;1eqs elndsrg
lecluqcel qcns uorll (uonqlnsuoC ^q
uolplosau) (e)7'21 asnel3 qlr/v\ ocuepJocce
u! alndsro leorurlcal E e^losol ol alqeun aje seued oql leql lua^a sql ul 0)
r-totleutLlJalaolJadxS (q)
'(uorte4rqry Aq uorlnlosou alndsre)
(c)Z'll asnelC ro (uolleuru alog Usdx=) (q)ZZl, asnet3 qlr/n acueprooce ul
pa^losar eq ol elndsro oql ralal ol pallluo aq lleqs ^!Ed ^ue
uaql '0u11r:ar u; aa:6e
^euJ soued aql sB pou6d Jaouol qcns Jo s^eo ssoulsng OZ u!Lll!^ sarued oql
Jo sa Dplu3sajdei pesDoqlne eql Iq poDles aq louueo elndsr0 aq1 1eq1 luaaa aql u| (rrr)
EL
osyv\Jaqlo soplcep Uadxa
aql ssslun 'ssscojd uoqEururalsp lsdx€ eql u! oulledl3ured ]o slsoJ u/v\o sI .leeq
llPqs ^UEd
qcef '6s!/\ raqlo saplcap Uadxa aql ssalun 'sarEqs lenba ur olndsro
lPcluHat oqt ol sa[red oql Iq au]oq aq lleqs uedve 3rll ^q
paxncur slsos llv (flx)
'ssruPd aql
uo ourpurq pue leuu oq lleqs pedxf eql ^q
alndsrc aq) Jo uorleurLuralap aql 'pnp4
.lo rolro lsalueur ]o oge] aql u! Jo salupd eql Aq ourIr/vr ur poaroE asuNaqlo sselun (tx)
ou, pu ersl',,^rou suoreo rqo, ",";;:Tl'Jff Hjl:: fffilff 'J:J:. *, (xD
'lolEJilqre ue se lou Uodxa up se
lce ll!^.\ Uadxe aql pue 'uo[ejlqre ue aq lou lleqs ssacojd uoueulu,r.talap yedxa eqf (!rr^)
'IUed Jaqlo aql ol ^Ued
qcns {q papurqns ^lsnoauellnurs
aq lleqs
uodxo orll ol ^lJed
e ^q
paluuqns s|e1:e1etu [uy a]ep retel e 1e {ye6 :eq1re {qpalluqns uorleulJolul lEuo,ltppe
^ue 'uolloJcslp s,uadxa 3lll ut 'puB pouad
^eo 0e
qcns urqlr^ IUed bulpuodsau aql ^q
pal}luqns uo[eu]olur qcns ^ue
Japrsuoo lletls
Uodxe aql 'IliBd oulleDrul aq1 {q padxe aq} ol papr^ord ler.raleur aq} o} uorltppe ul (I^)
uousod slued ourpuodsau aql ou0Joddns sluounrop ^ue
lo sordoc (C)
pue 'uorlrsod slued ourpuodsau aq] Jo luouolels E (g)
:slndsro lecluqcol aql lo uorlducsop e (V)
:(secuop) |, BI asnel3 ur sse.rppe 3t]t ]e ^Ued
ourlerlul
aql pue I.radxa aqt ol lruqns ^pru
IUed 6urpuodsau oql '(^) qderoErpd ur paqxcsop
slerJaleur aql paDluqns seq IUed 6uqe[ru; aq1 leql alep aql ]o SIBO 0g ulqllM (l^)
uopqsod slpe6 ouleuul aql ouruoddns sluau.,nooplo saldoc (C)
pue :uotllsod s,Iye6 6urlequ; aql ]o luauralels e (g)
:alndslO tecrurlcat aq lo uouducsop e (V)
r',
'e1ndsr6 lecruqcal oql ]o 4lrxalduJoo
pue lunoure aql ol pJeOaJ 6ul^eq 'alepdo.rddp Ilqeuoseal sJop!suoc lradxa
aql se ulJoJ qcns u! suoseal lo luauglels e ulBluoc lleqs uolslcop s,uadxa aql
pue salued aql ol oulu/r^ ur uolslcop Joq Jo slq anssr llEr.ls lredxa a$ luoulurodde
Jor.l ro slq lo alep oqt uroJ] s^ep 06 ueql Jalel lou luo^a luB ur pue'sourpaacoJd
uolleururJolap padxa aq1 ]o uolFlduroc JeUe olqecrlcerd ^lqpuoseaj
sB uoos sV (x)
(xiii) The place of the expert determination shall be London United Kingdom.
(xiv) The language of the expert determination shall be English
(c) Dispute Resolution by Arbiiration
(i) ln the event that ihe Parties are unable to resolve any non-Technical Dispute in
accordance with paragraph (a) (Resolution by Consultation), then Arbitration shall
be invoked by one Party issuing to the othe(s) a notice in writing invoking the
Arbitration (the "l'lotice of Arbitration") the parties shall refer the Dispute to be
finally resolvecl by arbitration as follows:
(A) lf either Sierra Leone has ralified the New York Convention by the date on
which the Notice of Arbitration is served or Sierra Leone has not ratified the
New Yr,rk Convention but the ICSID Centre or the ICSID Tribunal have
declined jurisdiction under Clause 17(2)(c)(i)B below, the Parties shall refer
and finally resolve the non-Technical Dispute by arbitration pursuant to the
Rules oi the London Court of lnternational Arbitration (the'LCIA Rules') in
accordance lvith Glause 17.2(c)(iv) which Rules shall be deemed
incorporatecl by reference into this Clause 17.2(cXiXA); or
(B) lf Sierra Leone has not ratified the New York Convention by the date on
which the albitration is invoked and the ICSID Centre and the ICSID Tribunal
accepl jurisdiction pursuant to the Convention on the Settlement of
lnvestment []isputes between States and Nalionals of other States, done at
Washington, 18 lt/arch 1965 (lhe "lCSlD Convention"), the Parties shall
refer and finally resolve the non-Technical Dispute by arbilration in
accordance with the Arbitration Rules ofthe ICSID Centre, the jurisdiction to
which the Pariies hereby consent and the Rules of which shall be deemed
incorporatecl by reference into this Clause 17.2(cXiXB).
(ii) ln the event that clause '17.2(cXi)B applies, the Parties further agree that:
(A) this Agreemenl is an "inveslment" for the purposes of Article 25 of the ICSID
Convention;
(B) the Grid Operatof is a "constituent subdivision or agency of a Contracting
State" for the purposes of Article 25(1) of the ICSID Convention;
(C) any Dispute shall Lre deemed to be a "legal dispute arising directly out of an
investmenl', for the purposes of Article 25(1) of the ICSID Convention and
the Partles expressly agree not to raise any arguments lo the contrary; and
74
9L
UE ued ro sa[Jed raqlo eql Jo suolleorlqo aql a3]ojro ol JcYpue pren P
[ue,ro luaurecrolua Jo/pue uopluOoca: aql Jo 's6urpasco]d uoneJtlqre oql
Jo ple ur Jepro Jaqlo Jo luar.xl-lcENe lej}rqJe-ord 'uorloun[ur lerlrqre-aJd e onssr
ol uor]3rpsunl sll ,o Unoc lualaduoc,{ue enpdap 01 pue}ur lou op salyed
aql '(^rxc)z'Zf asnelC slr-ll l.1lrr\ acuepJocJe ur uollerlq.re ot nuraarop ^€
(f)
:qsrl6uf aq lleqs soulpoaoord uolle.rllqle aq! Jo aoenouel aqlu.ropoury pe1ru1 'uopuol aq llBLls uo!]erlrqJe eql ]o aceld le6al .ro )eas oq1 (l)
:IUed Jsr.{!a
Jo lsonbar ua$U^ oql le UnoC VlCl aql ^q
polurodde eq llells roleJllqle
pJrql aql 'JolellqJe pumas eql ,o uorleurulou aql ]o slep (09) ^urql
urqp/v\
role4rqie prql e uodn aar6e o1 ;re; sJole4lqre poleulurou ,{ped orq aq1 1g (o)
:solnu VlC"l aq) qll,/v1 ocueprocce
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CECA Africa (SL) Limited
c/o TCQ
Mezzanine Floor
Building C16
Airport Road
Abu Dhabi UAE
P.O.B. 128295
Fax 0097126390565
Attention: Mr l(arim Nasser
The Generatr.,r
CECA SL Generation Limited
5'1A Main Motor Road
Wilberforce
Freetown
Sierra Leone
Fax 0023233846148,
Attention: Mr l(arim l.lasser
(b) A notice shall be deemed to have be€n received by a Party:
(0 if sent by ordinary post, on receipt at the current address referred to in paragraph
(a);
(ii) if delivered by hand or sent by registered post or internationally recognised courier
service, on deliver.y at the current address referred to in paragraph (a); or
(iii) if sent by fax, when a successful fax transmission report is generated, unless the
day the transmissiou report is generated is not a Business Day or it is generated
after 17:00 hours at lhe place of the recipient on a Business Day, in which case it
will be deemed to I)e [eLieived on the next Business Day.
(c) lf a Party does not notify the other Parties of a change to its details for service of nolices
in a timely manner, riotices shall be deemed to have been received two days after being
sent to the lasl current details referred to in paragraph (a).
(d) Any notice given in conneciion with this Agreement must be in English.
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anssr lleqs ^ued
oN (c)
'uo11e6;1qo IyleOuap!]uoc e ]o qceerq ur rieql asUwaqlo
Jauueu lerluopuu(xFuou e ul ocrnos Jaqtoue uor, fljed e ^q
parlnbce Jalel (C)
l\ye6 6uraraeer oql lo )lnel ou qonorql
uleuop Jrlqnd aql olu! orxoJ Alluenbesqns Jo uleuop cr;qnd sq1 ur ^pearle
(g)
:uollEtruoJu! ro slueuncop orll6u!^racar {yed eql ol u^ oul ^peaile
(V)
@
18.5 Remediescumulative
No remedy conferred by this Agreement is intended to exclude any other remedy available
under applicable law but:
(a) liquidated damages payable under Clauses 4.3 (Oelay liquidated damages - Phase l),
4.4 (Aelay liquidated damages - Phase ll) and 4.5 (Delay liquidated damages - Phase
lll) shall be the Offtaker's sole remedy for delay in achieving or failure to achieve the
Phase I Commercial Operation Date;
(b) liquidated damages payable under Clause 3.18 (Liquidated damages for Capacity
Shortfall) and deductions from the Capacity Charge under paragraph 2.1.3 of Schedule I(Tariff) shall be tho Offtaker's sole remedies in respect of failure to make available the
Net Dependable Capacity and failure to deliver Net Outpul; and
(c) Clause 14 (Early termination) sets out the only grounds on which lhis Agreement may be
terminated.
18.6 lnadequacy of Damages
Without prejudice to any other rights or remedies that the Parties may have, the Parties
acknouedge and agree that damages alone would not be an adequate remedy for any breach
of the lerms of this Agreernent and they shall be entitled to the remedies of specific
performance or other equitable relief for any threatened or actual breach of the terms of this
Agreement.
18.7 Partialinvalidity
(a) lf any provision or parlprovision of this Agreement is or becomes invalid, illegal or
unenforceable, it shall be deemed modifled to the minimum exlent necessary to make it
valid, legal and enforceable.
(b) lf modiflcation under paragraph (a) is not possible, the relevant provision or part-provision
shall be deemed deleted.
(c) Any modification to or delelion of a provision or part-provision under this Clause 18.7
shall not affect the validiiy and enforceability of the rest of this Agreement.
(d) lf one Party gives notice to the other of the possibility that any provision or part-provision
of this Agreement is invalid, illegal or unenforceable, the Parties shall negotiate in good
faith to amend such provision so that, as amended, it is legal, valid and enforceable, and,
to the greatest extent possible, achieves the intended commercial result of the original
provision.
B3,/. -z
/'"'
'lB.B Liability
(a) Except as expressly provided otherwise in this Agreement, no Party shall be liable lo the
other Parties under this /\greement for any loss of profit, loss of contract, loss of
opportunity, loss of produciion, loss of opportunity, Ioss of goodwill, loss of business or
indirect or consequential damage.
(b) Nothing in this Agreement shall exclude or limit the liability of the Parties for fraud or
fraudulent misrepreseniatiol.i, or for death or personal iniury.
1B.9 Amendments
To the extent that no other form is required by applicable law, an amendment to this Agreement
shall nol be effective unless it is ir writing and signed by all of the Parties.
18.10 Waivers
(a) A Party may waive itr rights under this Agreement at any time but such a waiver shall, to
the extent permitted by law, only be effective if it is given in writing.
(b) A failure or delay try a Party to require performance by another Party of any obligation
under this Agreement shall not, to the extent permitted by law, affect the first Party's right
to require performance unless a waiver has been given in accordance with paragraph (a).
(c) A waiver under paragraph (a) shall be limited to the matters expressly set out in wrlting
and shall not be consirued as a waiver of the same right on any future occasion.
1B.i1 Furtherassurances
The Parties shall do all further acts and execute and deliver all further documents as may be
reasonably required to perfolm an(l carry out this Agreement.
18.12 Expenses
Except as otherwise provided ir1 this Agreement, each Party shall pay its own costs and
expenses of executing and performing this Agreement-
'18.1 3 Counterparts
The Parties may execute this Agreement in counterparts, which shall constitute one instrumenl
and each of which shall be deenred to be an original.
B4
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ro aslolue ol salued asueull oql pue JopErluoC W?O ^ue
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pue :(e) qderoejed urlno las sprepuels 6ql qlr/\ aouEpjoccB ur paJncord aJe Llclqm (ll)
:sural qloual .sure uo ole qctq/v\ (l)
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eql Jo luauaaJov slr-ll ol uo|lelal u! sacr^Jos ejneo]d .ro slceJ]uoc o]ur ra]ua Aluo (p)
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| --'--'',@'-''.'''---
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1
Schedule 1
Description of the Plant
Project Overview
The Plant will comprise a number of reciprocating engines utilising Heavy Fuel Oil (HFO) with
an eventual installed capacity of not less than 128 MW net output. The Plant will be developed
in three phases as below:
Phase lliirrirnum Net Capacity (MW) No. of enginesI 50 7
I 39 2t 2
TOTAL 124 11
The preliminary design contemplates that each engine will have a c",p€city of approximately 8
MW for Phase I and approximately 18 MW for Phases ll and lll but the final conflguration will be
as agreed between the Generator and the relevant EPC Contractor. The Plant is primarily
designed to provide base load electrical power and energy within the operating parameters set
by the Original Equipment Manufacturer, but will be capable of mid merit or peaklng duty.
The Plant will be designed to meet World Bank Emission Guidelines for thermal power plants.
The Project is located some 4 l(nr east from the centre of Freetown on existing industrial land
and is immediately to the south of a refinery tank farm and some 500m from the sea. The
general location is shown below.
90
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3692 arnlasduof luarquv
aJe suolllpuoc acuoraleu aqlsuollrpuo3 asuaJaleu
'c"90 puB
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aq1 reo^ aql ra^o %02 sa6era^e ,{llecrd{l {llpltrnq a^rlelar puB C.gz pue gozz uaa^^loq aJe
eururu ^lqluou
eOeJa^V 'Cog'0e pue C"lZ uso^ laq oje eulxeLu a.in1eJadue1 ^lqluour
aoera^V
s/ur 9 ol e uea/i^laq are spaads pu4n a6e.:any
'uJurOOOe paecxo uec uorlelrdrgaJd pnuuV .ioqoloo
pue ^etil
uaan4aq uleJ lsou r.{ll/r^ 'punor-Jea^ Apeals allnb pue ';ecrdo.t1 ere sarnlejadual aql
la^al eas ol osolc pue lse^ , , ogl. pue quou ,12 o80 eprurleJ lP sr u/^olaaJj
sleurlc leJauo9
alls aql le suo!]lpuoc tuolquv
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it ll81.x7 lll pue ll soseqd
; I oseqd
6ullueld 6urr ollol or-ll uo poseq
'ir oleq umoqs sr loe[ord eql ]o ]uaurdote^ap peseqd aql Lro paseq ]nofel eirs leuorsr^ord aqf
'slas role-rauaO eql ol ^lrlpnb
elqEleduoo
]o sr pue Mau pueJq sr luaurdlnbo Arerlxne pue sluauodluoc lueld,o acuEleq e leql aincoid
lpqs (srolcErluooqns lue^alor rorll ro) rolce{uoo 9d= aql Jo ro}ereuoe aql- 'My! 8 punore }o
saurOuo Jolleurs ql!^^ podop^ep eq ol pouueld orE luaudole^ap ]o sa6e1s r(pea eq1 1caford eq1
Jo ssseqd ralel etll ro, alet]dordde s! M!^t 8t pue '^Iced$ A/\! l B|, punole o1 dn sautoue qltar
acualredxe o^eq sJaleur aulOuo luelolal oql saur6uo q3ns Ourppnq pue 6u1u6tsep ul pJoJo.l
ouorls e qlu^ saulouo ou[Ecojdr3oJ ]o sJeJnloernuBU leuol]eura]u! .ro[eu ^q
pepl^ojd aq Il!^ slos
Jolerauao aurouo oullecoJdpal eql l3erluoc Odf auo lapun srseq ^o)luJnl
e uo pol3nllsuo3 sq
ol Alolrl sr eseqd qrea pue ourpplq a^ll|]od[uo3 lpuolleu]olur q,inorq] pacrnos aq llr,r lueld aql
'sa6els Jolleurs ul dn uouels Jo^ od AA1l\ Be I eql Ourplrnq ol palrnslla r\ pue
'lsoc €rulFall uo aaglledu.roc 6u1aq se palgolas uaaq e eq sauroua oulleco.rdlce; paads urn;payy
'oulddols pue ouluels Jo] llo lesalp ql!/t^ 'llo lonl ^^eeq
uo urr ol pouolsap oq llr/n lueld aqf
uolsoo lueld ro/nod oql E
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'souroua 3ql uao \]aq pareqs ore slsels
lsneqxa o^ll sacl^Jas FurJou leqlo pue lusuleaJl lro lanl 's3arlrtrel luenu+a pue luouleollJale/v\ 'sdoqsuo/l/\ ql/v\ 6uole p€p!^oJd eq llr/r r.xoor lolluoc Jer]Lrac V uol]elsqns n)l Ee Joopur oqt
ol salqeo Aq pelcauuoJ are qclq/vr sror.xro]suerl JoleJeuao 9 ol paloauuo3 arp sJoleroueo gurouo
ounecojdlcar uogern6rluoc IeuU aql ul -pauuetd aJe luel aoerols 1ro |en] 1q6r1 relleus e pue luelscrruas e ql
^ lsrllooot sluel ooeJols 1ro 1sn; fueaq o/1 f 'padolo^ap sr oseqd qJeo se papualxa
oq uec qclqm o]!s oql lo oprs qlnos aql uo asnoq aur6ua a;Ours e uo poseq s; uOrsap eq1
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It is planned that the reciprocating engines will be cooled using 'fin/fan' dry coolers, which limits
the water requirement. Water will be drawn from the sea with waste water and slorm water
discharged back into the sea.
The power station will include
Perimeter site fencing and gates
A road way connection to the public highway, plus on site roads, parking with sunshades
and sealed areas
A security building
The refurbishment and reuse of buildings on the site lo create administration offices and
workshop facilities
Heavy oil filtration and treatment plant
Bonded storage for treated heavy oil and diesel oil
Four stroke, turbo-charged reciprocating engine generator sets
11 kV to 33 kV step-up transformers
93
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'aosllo^ uolssrrusuel} oql lB %0 !T jo a6ue.r 40ello^ eql u!rllU^ olqel!e^e
Il1ng eq o1 pauorssp aq lll^^ suoflpuoo s]els ^peols
Japun lndlno Joi\ od a^0ceoJ stlf
'e6ellol uolss!{.usue4 oql }o %0[T aDuel eql urqlrln aJe ]eql uot]cauuoc
uolsslursuerl le eoello aql u! so6ueq, Aq palcaJJe sq lou llr/v' Iun ouglaeuao ^ue
lo uorllpuoc alels ^peals
lapun lndlno iar od allce eql ]eql os pou6rsep oq lly'^ lueld aq-I
'^Iun ol 6ur66el 9B'0 Jo o6uer aql ur slope; rcrrod
le lueuorlnbsr rei\^od lln] aql Oudlddns Jo alqedec aq ol pou6rsep aq ll! ^
Jole.€uo6 aqf
YoL -l+ loaOUEJ e urqlu pue zH 09 lo
^cuanbo4 e le aleJado
^lpurjou ol pauorsap oq ltrn lueH or]l
'JaJnlcelnuer!
lueudrnb3 leu!6uo aql Iq las srolouered 6u[eJedo ot ulr-ll!/v\ suoltlpuo3 luarqrue
olrs Jo eoueJ o.ruua oql ssoDe ourle.rodo ,o olqedpc oq ol pauolsop aq llr/r luetd 3qI
qloq ol Jo 'lsea oql ol ouruunr eull oulslxa aql ol ]o 'lse/r\
oql ol ouruunJ oull N e0 oulslxo aql qlrl\ 'acror.lc le 'uoUcsuuo3 ^
ollB ol s€ulJolsueJl
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's.tolce.tluoc 3d3 polcalas aql pue
roleJeuee aql uoa/vqoq paoroe se oq luv\ eseqd qcea lol slueuro.rrnbal ocueuro]led leuu aql
lnq s/l ollol se oJe uolsop fJeurulrlard oql ^q
paleldualuoc sluauarlnbar ocueulrolrod lueld aql
sluauarlnbal! ocuBuuolad lueld ran od
sarlrll3ej prE ts,r!] pue ]o[ol '6urssay!
sr.uooJ lueurdlnba pue urooj lo.rluor e pue lleq auroue uV
ees 3ql ol aoreqcsrp siolaq Jale/\^ ro uo[9ollo3 3q] rol puod uoDe^r3sqo uv
luel(i luaulearl a6e/uas V
Jele^^ elqelod puB rale/ueas paJe)lU Jo,r sluBl
'stsotuso
osla^o.r Jo sueau ^q
sluouraJlnbal Jaleit/\ lueld aql laaur ol urals/is elelu! rolB/v\eas V
v
90
ohlg -l+ I abueJ luaurlsnlpe a0ello^ leululal
%[s-o] doorp JouJa^oe
uoIeu.]oJul/eleq ralsu"red
'srolcBrluoc cdfPelcelas oql pue Jolereuo9 eql uae/r,leq peeJoe se aq r,^ aseqd qceo Jo] slllur-l lecluqsafleuu
oql lnq smollol se eJe uolsep fJeuruilord aql ^q
palelduraluoc slurll le3luqoal lueld aLll
sl!ur!l Ie3!uqe3l
0ur^\olloj peol pue uorlBlnOs
I
's1un uro4 loJlu@ a6el;on pue uollesuaduro, Jamod o^rlgeau
'Durpuelsl pue l.Jels }celE
ssruasoH 6uruurds ^rBpuooas
pue ^rBrlrud
:sacrruag ,&e1;lcuy 0ur,uo;1o1aq 6urprnoJd olqedm aq
lprls uolels aq]'suousnJ]sur qoledsro rapun uollerado tpurou ]o alqedeo 6uraq o] uouppe ul
'srolce4uoc cdf palcalas aql
pue JoleJouog or-ll uoe^qeq paaJoe se eq llvt^ aseqd q3ea ro} s}uor.uoJrnbar leuoqeredoleurl aq1
lnq s ^ollol
sE aJE uolsap fieuru]lprd aql ^q
palelduraluoo sluauaJrnboJ lsuo[e.Edo ]upld orll
slusruor!nbou leuollElado
'apour doorp eoellon ro loJluo3 uorlesuaduoc
doolp e6ello1'lorluoo rolcel Jar od luelsuoC 6ulsn elqellorluoll oq llh\ Ja/dod a^[ceou
'epouj 0urleJedo opoul dootp poods ut Jo 6uueqs
pBol snouoJqsosl 'epo!! ra,\od ro Ml,oulsn elqellorlu0s sq ll!/,^ tndlno Jo/uod e^[cv
'6urddul
lnoqlvv\ uorpaloJ peol %00! E ourpuelsqlrv\ lo olqEder aq lleqs pue suolltpum (du])
u/r op lnqs pue dn uBls 'leu.,rouqe 'lualsueJl losur ol olqe 3q ol pauolsap ag llt/ll lueld aq1
'suo[ecldde Ourlead Jo 1raul-ptu 'peol aseq slqrxag u! asn Jo] puE 'uoqcauuoc prl61o
ssol aql 6u!^^ollol apou pspuels! ul uouBrado ]o olqedec eq ol pau6lsap aq llt^\ lueld aql
'a0euep
lenualod splo^e lBql Jauueur palprluoo pu" elps e ur paulrolad st u/(oplnqs lueldpue paurElureu ore sorlddns rar od lelluasso llB saltddns puo,o ssol e Jo lua^a aql ut leql
ajnsua ol sUeFAs U,!\oplnqs ^9uaoleuro
pue sacr^Jas le[uassa lln] opnlcut llt^ lueld oql
,. ,.,
I
96
'auurer6ojd a9ueualureul pue tuoudlnbaenellns sJnbal !,$ nq unu,xeul q
^ep rod Uels 0Z pue 'suo0negajd leuo ppe lnoqlh ouop oq uB? Iep Jad suels e I
'u6!sap leu!] lo luaujsoJoe ,sauad ol lcelqns pue .]olcerluoC
cd:l jo luaulurodde uodn paultlJalop aq ol :uels llun Jod lro lonl lq6r-llo uorldunsuoc
(suolle1nc;ec
JIJeI olBtrlce] ol srolce4uoC Cdf polcolos aq] qlm\ paoroe oq ll!/\ sanle^ palelnqe,
6u1peo1 pue oinlercduel ]uolqurv qlr!\ sarunc uollcaro3 elBU leaH pue Jo/v\od
saoelno eoueueluleu roleuj rnoq 000'Zl. uoe/\^laq %9 f : uorlepeJoap ale.r leoH
(srseg 191)r{MI/Pl 8098 : peol %001 pue suollrpuoS acuoJaJau le leulrurol Jolereuag lE oleu leaH
I aseqd
'sJotceluoS 3d3 palcslas
aql pue Jolerauag aql uaa/nloq paar6e se oq llrn aseqd qoea ro] sorunC o3ueuJoladleurl
aql lnq smollo, se are u6gsep fueulurlald aq1 Aq pa1eldua1uo3 sa^JnC acuetrro1tod eqJ
sorun9 asuEurJoFad
utru/My\[tZ6g I olej tiurpeofap llun leuroN
u!ur/Mt/! [ ze't ] a1e: 6urpeol lrun IeuroN
spuocas [0e ] au[-u/(op ]run unururtA
salnuruj I I I au0-dn lrun unl'uruly{
salnurur I I ] (C.09<) Aqpuels u]p-^l [!or] peol %00! o] sruu
elnurur [ ! ] (C.09<),{qpuets ure,vr rxoJ} llun e asluor.{cu^s ol aull
Irs]l!un
1ue;d rerrod qcee :o; rea^ jad syels yo Jaqunu uJnurxenl
Lt-
L
I
I
Power and Heat rate v:: Ambient temperature ("C)
@ generator terrnial (lndicative only)10000
9000
8000
7000
5000
5000
4000
3000
2000
1000
0
E50t
Bs00
8400
21 22 tq
60 70
-6FPower [kW]
2a 30 32
..*-Heat Rate lkJlkwhl
34
-L.l-- Power [kW]
Power anel !'le;rt rate vs Load @ generatortelmir,al (lndicative only)
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
9200
9100
9000
8900
8800
8700
8600
8500
8400100
Phases ll & Illl
Heat Rate at Generator Terminal at Reference Conditions and 1007o load : 8514 kJ/kwh
(LHV Basis)
50 80 90
"=FHeat Rate [U/kWh]
Heat rate degradation : 1.5% betvveen 12,000 hour major maintenance outages
97
I
\
i
86
"0"09 "9t
13.) a/nlsaduol luaquv
cc nc"02 "0t
0r0 0
090I
080I
00t 8
ozt I0 I09t 8
08t 8
002I
0zz,g
0rz B
.1
9qo
o
srIao
9t;
sL5
000
009
000
009
m0
o
!l
o
oto
{
00s 9t
(A1uo an;pc;pu g) |e;u.lal .role;aua8 @(3") arnleradual lualquv sn alpJ leaH pue Ja/nod
fe I I : I.rE]s IUn lod lro lonl lq6!l ]o uoltdurnsuoC
(sosodJnd o leJlpur Jol sllun M!\ 9| uo p€seq are esaql) (suogelnclec
guel elplrlne] ol srol3e4uoC Od3 poleelos eq1 qlyu peeL0e sq l1/v\ sonle^ pelElnqel)
6ulpeo-I pue ernleladuel luelquJv q}r\ sa Jnc uoloajjoc aleu leeH pus Jon od
(...pqq $qf )l/I, ol.rrlatp qE p.qFpl--{-
(rJrEEtol %0 ild rred roFB{,rO ppl-{-
"0i
Schedule 2
lnterconnection Facilities and Connection Point
A single circuit 33kV overhead transmission line crosses the site. To facilitate the design and layout of
the Plant, this line will be rerouted in an east west orientation along the northern perimeter of the site.
The Plant will be connected into this line which will be looped in and out of an indoor substation with
metal clad switchgear which will be located on the northern side of the Plant. This will provide a full
'intercept' arrangement with the easterly and westerly connections separately connected to bus bars in
the substation. The rerouting transmission line re-routing, the overhead lines to the substation on the
power slation site and the substation itself will all be designed and built and financed as part of the
power station project.
This arrangement is shown below which includes the present routing of the line across the site as well
as the new routing.
The Delivery Point at which electrical power and energy are supplied to the Offtaker are at the point
where the 33 l(V overhead line is connected to the Plant's substation busbars.
e
,9B,
"'E E
@
@d
@oo@o@
$
Ell
l3lBa,CIPOY'EflEI,JG]I]EERS
lllir!s+rs
E
See Schedule '16 for further technical details
l@f------l
lH:qrnr',l.!t1
@
-tr
(a
I
/-o-.-'--
1
Schedule 3
[:uel Specifications
This data below is based on typical information from an engine maker. The requirements of
diFferent engine suppliers may vary slightly.
Light Fuel OilLight Fuel Oil (LFO) is used fo[ engine slarts- The limits indicated below are based on lhe
demands of ISO 8217:2010(E) standard and covers the fuel categories ISO-F-DMA, DMB and
DMZ.
The limits in the table below are based on the demands of standards and engine specific
requiremenls. Project requirernenls, actual fuel availability or customer preferences may set
other limits on the fuel quality.
The fuel should not include any added substance or chemical waste, which jeopardizes the
safety of installations or adversely affects the performance of the engines or is harmful to
personnel or contributes overall to additional air pollution.
Parameter Limit UnitTest Method
reference
Viscosity
lnjection viscositylllDensityWaterSulphurAshCarbon ResidueFlash point (PMCC)Hydrogen sulfideAcid numberOxidation stabilityPour pointCetane lndexTotal sediment existentby hot filtrationAppearanceLubricity, correctedwear scar diameter
cstat40"C ISO 3104
cStkg/m3 at 15'CY'Yol.% mass7o maSS
lso 3104ISO 3675 or 12185lso 3733ISO 8754 or 14596lso 6245lso 10370lso 2719tP 570ASTM D664lso 12205tso 3016lso 4264lso 10307-1
lvlinimumMaximumMinimum
MaximumMaximumMaximumMaximumMaxirnumMinimum
MaximumlvlaximumMaximumlvlaximumMinimum
Maximum
2112.89000,32,00,010,3602,000,525635o,10l2l
mg/kgMo KOH/os/;r'"C
% mass
Clear and brightMaximum 520 pm lso 12156-1
I LFO is not available lhen rrormal diesel oil as available on the market shall be used.
lll Enoine soecific reouirernenll'?i lf lie sample is clear and with no visible sediment o. water, the total sedlmenl existent and water tests shall not be required
100
2 Heavy Fuel Oil (HFO)
The fuel quality limits before treatment are based on the requirements of
- ISO 8217:2010(E), ISO-F-RMA 10 - R[,'lK 700
Specific emission requirements may set stricter limits for the fuel quality
The fuel should not include any added substance or chemical waste, whioh jeopardizes the
safety of installations or adversely alfects the performance of (he engines or is harmful to
personnel or contributes overall to additional air pollution.
HFO - before treatment:
Parameter Limit Unit Test Methodreference
Viscosity, plant designt3lDensityCCAIWater
SulphurHydrogen sulphideAcid numberAshVanadium
SodiumAluminium + silicon,
cst at 50'Ckg/m3 at 15'C
% Vo!.
% massmg/kgmg KOH/g% massmg/kg
mg/kgnrg/kg
% mass% mass
% massmg/kgmg/kgmg/kg
tso 3104ISO 3675 or 12185ISO 8217, Annex FISO 3733 orASTM D63O4.CISO 8754 or 14596lP 570ASTM D664ISO 6245 or LP 1001ISO '14597or
lP 501 ,|P470llP 501 or lP 4701ISO 104780rtP 501, tP470tso 10370ASTIV] D3279tso 2719rso 30'16lso 10307-2lP 501 or 470lP 5Ol or 470lP 501 or 470
N4aximum
Maximum10060
lvlaximumMaximumMinimum
MaximumMaximumMaximumN4aximumlvlaximum
MaximumMaximumMaximuml\4aximum
MaximumMaximumMaximumMaximumIVlaximum
700'101 08700,5
1
2,00
0,15450
201460300,103015
Carbon ResidueAsphaltenesFlash point (PMCC)Pour pointTotal Sediment exislent agedCalciumZincPhosphorusUsed lubricating oils
['lFO - After treatrrent:
Parameter
lniection viscosity
Water
Sodium
Limit Unit Test Methodreference
tso 3104lso 3104ISO 3733 orASTM D63O4.C1P501 or 1P470
MinimumI\,,laxilnumI\,,laximum
16240,3
cstcst% Vol.
Maximum 30 mgkg
l3l Design specific vatueraJThe fuel shali be free from used lubrlcaling oil (ULO). A fuel shall be considered to contain ULO r,rhen eilher one of thefollowing conditions ls met: Calcium > 30 mgy'lg and zinc > 15 mgy'kg or Calcium > 30 mg/kg and phosphorus > 15 mg/kg
101
1
Schedule 4
Gonrmissioning and Testing
lntroductionThe Generator shall develop a detailed commissioning and testing programme for each Phase
with the scope outlined in this Schedule 4 (Commissioning and COD Testing). Similar
procedures will be followed for each Phase of the Poect.
The programme will lnclude:
. Pre-synchronisationsTests
. Commissioning Tests and
. COD Tests.
Scheduling by the Generator'
The Generator shall provide the Offtaker, on an on€oing basis, relevant information regarding
its programme for testing each Phase. Not less than twenty (20) Days prior to the
commencement of each test programme, the Generator will deliver to the Offlaker in writing the
final programme for testing the relevant Phase, including a tentative schedule for conducting all
tests required for commissioning. The Generator shall advise the Offtaker in writing of any
changes in its final schedule for the testing programme not less lhan seven (7) Days prior to the
commencement of the tests required for commissioning. lf the schedule for any test required
for Commissioning is adiusted after the Generator has provided the Offtaker with the final
testing programme, then the Generaior shall advise the Offtaker not less than forty-eight (48)
hours prior to the commencement of any such test. On each Day beginning with the Day on
which testing commences, the Generator shall provide the Offtaker with a schedule of the tests
to be conducted on the following Day or Days (if such test will continue for more lhan one (1)
Day).
Deferral by the Offtaker
lf the Offtaker is unable to accommodate the schedule for such tesl or tests as provided by the
Generator in the final schedule fol ttre program of tests, the Offtaker will give the Generator
notice within forty-eight (48) houls o[ its receipt of the f]nal schedule for testing of itsrequirements regarding deferral or delay of any Commissioning Tesls for the relevant Phase,
and the Parties will mutually agree on a date for any deferal test or programme of tests. The
Offtaker shail noiify the Generator at the end of any such delay or deferral. No such delay or
deferral shall delay the relevant test or tests by more than ten (10) Days from the date proposed
by the Generator.
3
103
I
roj sprepuels c3l pue osl rfNsv lue^oler eq] uo peseq eq lleqs lsel eqf'(peol eseq %00I)
ucy! le sourqcetx pue luaudrnba lenpr^rpur oql 6u[e]edo ^q
]urod ^ro^rloo
eql lB lndlno ]oN
eql oulJnseaLu Iq peuluJelap aq llul lueld eql ]o eseqd q3eo ]o ^llcedeg
alqepuadae loN aql/{tlcede3 palsal
'slsel aoueuro1lad Our,vrollol
eql Jo lslsuoJ lleqs eseql pue lno pourEc aq l|l/$ s)ssl oo:) ']ueld or{} }o oseqd qceo rolqsal ooc
'elecuueC ouluolsslururoC palalduoc Alnp eql JaIelgO oql ol pora^!pp seLl JoleJoueg
eql pue pauotsslr,lruoC sr lueH aql lo oseqd lue^elor aql ^eO
aql JaUe ^EO
lsJU
oql lo uels 3ql le srnoq 00'00lo se rncco lleqs oseqd qcea rol aleo ouruorsslurruoc aql (q)
'peuolss!rxrxoc eq lPqs lueld aqt ro esBqd teql ueql 'g'9 qderoered
u! paqlDssp slsel Euruolsslururoo eql lo lle pauslles seq luetd eql Jo aseqd e uaqM (e)
e1e6 6uluorssltutuoC'pauo!ssrururoC lueld
-v xauuv
qllM eruepJocop u! slsaj 6uluo!ssrurrroC puB 6u!uolssrLUUroc-ord lno IJIaJ lleqs Jolerauoe oq}
slsaf 0uluo!ss!ururoC
-0'g qdeJoeJed ur peqrJcsop
slsol aql 1no 6u1fuiac orcIoq Ja{eUJO eql ol eclou olqeurJsear o^t6 lleqs lo}eJauog aqluoltec!l!loN
1,,slsoI 6uluorss!urruoC,
aql) 0'9 uolcos ul paqllcsap slsel oql ro (urolaq poglcads elellls acueutoged urnullul{.x
aql oufils[es Iq) uo!]olduroc InJssoccns eq1 6utmo1;o1 peuoissltxurog oq lleqs luBld eq.L (q)
olnperlcs srr.ll ol luensind luEld oLll Jo ouruorssrtuuloc eq) lno ^lle3
lleqs Jolelauag eql (e)
ssacord
slsol Euluolsslultuoc
'qsol qcns lp o Josqo pue lp luasard eq o1fl1un1roddo ue 3^eq tleqs pue (Joelsql slselaJ
Iue pue) slsel qcns lo ocllou sJnoq (rz) rnol-^lue/t^l uBql ssal lou uo^!o aq ||eqs Je)lelgo aqlreleulo Iq uoleruosqo
'prJ9 oql pue lueld aql uaaMloq sltn3.rt3 outddlJUalu! lle a^old (q)
'releulo
atll qu/ur uoBelnsuoc ur Jolelauae aql ^q
paJedaJd souqlas ;onal t-togcalo.td aql ^ruon
(e)
:lleqs roleJaueel etll'slsel 0u!uolss!tuu.roC
sql urolad ol pllg or]l qlr,l ,oaJaql UEd ^ue
ro lueld stl] lo uollezuoltlcufs ol Jotld
slsel uo!lez!uorqcuAS-ord
slsal 6u!uolssluruto9 ol roud 6u;1so1
t'9
v9
e9
L9
s
zb
t',
I
i
/@
4
4.1
4.2
5
5.1
5.2
Testing Prior to Commissioning TestsPre-Synchronization Tests
Prior to synchronization oi the Plant or any part lhereof with lhe Grid to perform the
Commissioning Tests, the Generator shall:
(a) Verify the protection level settings prepared by the Generator in consultation with the
Offtal(er,
(b) prove all inter{ripping circuits between the Plant and the Grid.
Observation by Otftal(er
The Ofltaker shall be given not less than twenty-four (24) hours notice of such tests (and any
retests thereof) and shall have an opportunity to be present at and observe all such tests.
Commissloning Tests
Process
(a) The Generator shall carry out the commissioning of the Plant pursuant to this Schedule
(b) The Plant shall be Corrrmissioned following the successful completion (by satisfying the
minimum performance d'iteria specified herein) of the tests described in Section 5.3 (the
"Commissioning Tests").
Notiflcation
The Generator shall give reasonable notice to the Offtaker before canying out the lests
described in paragraph 5.3.
Commissioning Tests
The Generator shall carry oui pre-commissioning and Commissioning Tests in accordance with
Annex A.
Plant Commissioned, Commissioning Date
(a) When a Phase of the Plant has satisfied all of the Commissioning Tests described in
paragraph 5.3, then that Phase of the Plant shall be Commissioned.
(b) The Commissioning Date for each Phase shall occur as ot 00.00 hours at the start of the
first Day after the Day the relevant phase of the Plant is Commissioned and the
Generator has delivererl to lhe Offtaker the duly completed Commissioning Certiflcate.
COD TestsFor each phase of the Plarri, COD tests will be carried out and lhese shall consist of the
following performance tests.
Tested Capacity
The Net Dependable Capacity of each Phase of the Plant will be determined by measuring the
Net Output at the Delivery Point by operating the individual equipment and machines at MCR
(100% base load). The tesl shall be based on the relevanl ASME, ISO and IEC standards for
fi
6.1
104
s0L
aq ul peol [ue u.ro41n{no peler sso.r6;o luec:ed 0l }o puErxop Jo ssol ueppns e 6urpuelsqllilr
jo elqedec eq ol pelerlsuourap eq osle eqs sseqd qcej luscrad (gZ) eAU
^lua/*l ueql .releero
sr peol lueld oql ]o oseqd leql uo peol aql leql paplaold lndlno peler ssol61o luecred (9) eng 1o
peol ul aseojou! dals E lo alqedec sr eseqd qcee leql aleJlsuourap ol uoleuopun aq llu\ lsal V
saoueqC peol dals ol xolduoC lo asuodsau
:sarunc,!rlrqedec e^lpeer s,€rnlcelnueu,
lolereueo aql red se suollrpuoc a llcEor pue srolcel re^,lod 6un ollo] le ^cuanbaq
pue a6elp
paleJ le aleledo ol Iun qrEa,o puB asEqd qcee aql ]o []lllqedec eql ale.4suouJap lll/r slsat
'srolce4uoc
3df polcolos aql pue JoleJaueg eql ueaalsq paoroe se eq ll!/n eseqd qcee ro; sialaurered leug
aql nq s \ollo, se aJe uolsop fueuluJlald aU ^q
poleEuraluoc saulqedEc leuoneJado lueld oql
lsel IIoPdeO e^lceeu
lua ed O'9 ol luacJad 0 Z rrroJ] palsnlpe 6uraq doorp
eql 'eouel sI Je o peleJlsuorlrep eq ll!r\ JouJa o0 paeds aql Jo uolleJedo eql 'eseqd q3es roluolleJedo JouJe^og au!6ul
'tuaf,red g 0 + lo cllslJalcereqc doorp B q1m e6ello^ pa)er ,o luacled 0 i ,+ ]oa6uej oql Jo^o a6elp rolerouao oql loJluoe ol palerlsuorxop aq lll/v\ UnV aql 'eseqd qcea Jol
dootg (UnV) roteln6ag a6e11o1 clreuolny
'sa.rnpaJoJd 0u[sal aql ur
paeJOE sJnoq lo roqunu aql ueql ssal lou IoJ ra^eosleq^ uolldn.ualu! Aue lnoqlm sonu[uoc lr Jl
^luo palalduoc
^lrJoloEls[es uaaq 6^eq lleqs lsal oqf JaIeUO alll
^q palsonba] se oq llul^ lsal
oql lo srnoq ouruleual aql oulrnp lndlno aqt 'lcEluo3 u! suoucalord aql lle pue slllurl ourleJado
ales sI puolaq luaudlnbo lenpr^rpu! aql oulpeoFe^o lnoqlrv\ sarnpaoor6 6utse1 aq1 u1 paer6e
6u[eJ snonulluoc urnurxeur ]e sJnoq lo Jaqurnu snonu[uoc e epnlcul lllm pue serlrlecrloejd
uje1sr(s uo paseq saJnpaooJd 6u[so1 aql ug paaioe polrad ra]roqs e ro sJnoq Z/ ]o pouad
e roj eq Il!^ unr sql pololduJoC ^lno
eq ol lueld aql ]o eseqd tEql olqeua ol perlslles oq lsnupue slsal OOC eq1 p yed se lno lueld aql ]o oseqd qcee rol pa!,r.rec aq llr,r\ lsel unJ
^Irqerlal V
1sa1 ung {ltpqer;ag
'suolllpuoc
eeueJejau eql ol palceJJos pue uJalsls ouuoleN eql pue uo0Blu6r.ln.rlsul lueld 6ulsn lueld sqt
qo
99
lr'O
e9
]run rad %00 lrun Jad %00 Peo-l unururnl/vlollol of (6urpeet) rE^!\ 6 t uo[eloxa po]ej la ourpeol o^rlcEeJ e]els
^peals/r ollo] 01 (0ur66et) re^n9r'6 uollelcxe poler le ourpeol o^lceai slels ^pealsi ollol 01 o/eg 9 (suo[puoC asuaroJau le) lndlno sso]O Mt/{ %00t
Ilrun/oet 98 0 Ilrun/0el9B'O JOICeJ ralvrod
lll ? saseqd laseqd
z9
range thirty-four (35) percent to hundred (100) percent. The Phase must not trip and must
otherwise renrain in a safe condition.
'106
ANNEX A.
i:(-iIifl,,I (]F COMMISSIONING CERTIFICATE
Project: Location: Date
Customer: Voltage: Frequency:
1 Final Site Commissior.lirig Checks Checked
1.1 Check that all equipment is correctly earthed
1.2 Check that all transformers and switchgear are not in circuit earth position
1.3 Check that all circuii breal(ers are in the open position
1.4 Clear all unnecessary personnel off Plant Site to a safe area
1.5Ensure that all Generatol personnel are verbally addressed and aware of
energization
'1.6Ensure that the Offiaker is fully aware of your intention to energize the
system
2 Final Site Commissionirrg Tests
2.1Close circuit breaker for earthing transformer or neutral earthing resistor
(Only applicable when system is in island mode)
?.?Energize system either by back feed from cuslomers HV or by closing
generator circuit breal<er in island mode
Checl< phase rotation
2.4 Check system voltage
2.5 Check system frequency
2.6 Check inter tripping and inter locks
2.7 Checl( Site ESD shutdown
2.4 Additional testing required pursuant to the PPA
2.9While the system is energized, conduct burden and accuracy tests on lhe
Metering, Back-up L4etering and Telecommunication Systems
Date and Time firstmachine online:
Date and Time last
machine on line:
Total KW Output:
Date and Time:
System voltage: System frequency: Power factor:
107
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On behalf of the Generator, I hereby certify that the Phase [x] has satisfied the
minimal performance standards sufficient to be Commissionsd. Capitalized terms
used herein have the meaning given to them in the Power Purchase Agreement.
By: lprinted name of Generalol Enqineerl
Generator Engineer's signature: /s/
Date: ldatel
On behalf of the Offtaker, I hereby acknowledge receipt of this certificate.
By: lDrinted name Offtakefl
Offt aker's Engineer's signature: lsl
Date: ldatel
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---7
4
found, and as-left conditions of the Main Output Metering System and Back-up Metering
System, which shall be supplied to both Parties.
Current and voltage transtbrmers shall be tested for ratio and phase angle errors following
manufacture at an accrediled testing station. Test certificates issued by the testing station will
be issued independently to both Parties.
CommunicationsThe Generator shall, prior to the Phase lA Commercial Operation Date, establish and maintain
a telephone hotline between the Generator's conlrol room and the Offtaker's control Cenlre in
accordance with the Operating Procedures.
111
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slqo uo[dnJJalur ue ut 6u111nse: lo.tluoc slr puo^aq esnec ]aqlo ^uE
ro lnolcol Jo alr4s 'rusrJoJrol
lo lce 'Jel( 'uolparnsur 'uollorxr.uo3 l^lo'lou'poe Jo lcv ue ouraq) Iueg oulnssl eql o1 e;qecr;dde
ernefeu ecrol lo 1uo^e Iue ]o uolle.rnp oql ol pnba s^ep lo jaqunu )eql Iq papualxa aq lllecqeuolne
lleqs alBC uolerrdx3 qons (.otEO uolleJldxf, aq1) [o] uo e.rdxa lleqs llparC ,o rala-l srqJ
'pueueo luouJ^e.j ourpuodsaxoJ aql ut luauruJo^og
oql r(q peglcads lunoJce lueq eg ol spunl alqelre^e ^lelerpaurur
ur lslsue.4 cluorlcale ^q
epeu aq
lleqs rapunaraq lueuura oe aql ol selBtx lueg 6u;nss1 eq1 leq1 sluaul,ied lV (uoltcelal luanbasqns
^ue Jo lellur ue leye .teqleqrvr) pueu;oq luauJAed [ue llurqnse: IBru luaururalog arll 'luauure^og
erll ol pueuoo luau.,^ed atll uJnleJ lleqs pue pueuoc lueul^ed eql peloola, lr ^q^I\
aollou qcns
u! uleldxa lleqs lue€ 6u1nss; eq1 osodJnd qcns lol IueE ournssl aql ol luaurula^o9 oqt ^q
ou[u/v\
ur papr^ord ssaJppe eql le Jo 'luor.uura^o9 aql Jol ulelaq palsrl ssarppe aql le outur/\ ut )uorxu]o^oeaql
^r[ou ^lalerpoLutxr ll/v\ {ue8 ournssl aql 'IparC Jo r6ua] srql ur paLlslqB}se slueura:1nba.t
or.ll lo ^ue
qplr ilduroc ol slle, pueuao luaur^ed aql ,l spun, ur o s]! quv\ ltpaJC ]o Jollo-l
slql repun quau^ed llE a)Eu lleqs lueg 6urnss; aql 'IpsrC ]o raUal srq) ut pautEluoc slueuLetrnba.r
aql sollsllps paluasard uorleluauncop aql leql popr^od pue 'leuoe-1 eJJotSl ut ssaulsnq .lo]
uedo lou s! lu"g ournssl aql qorqi$ uo s^ep ouunp srnoq [ue 0u1pn;cxa 'lueuuJo^og aql ^q
paltrr.uqns
se ^
pueujoo luaur^ed aql qJrq /r ur .rnoq eql raue srnoq (gf) tq6te ^Uo]
ueql l6lel ou spunj alqelte^e
^lalElpsu.rxr ul tuourura^oC eql ol pueueo ]uau^pd outpuodseroo qcea ut palsonboJ spun; aq1 Ied
ol sagJoe lueg oulnssl aqf'[auoo'l erars] ur ssaursnq./o] usdo sr )lueE oulnssl eql uaql sJnoq pue
s[ep 6uunp pauluJqns aq lsnu pueu]oo guau][e6 qcea 'l!pa]O ro rellal srr.ll ]o surel eq] ol l3alqns
'(/v\oleq peuuep se) aleo uo[elldxf aql o.lo]oq lo uo pelltuqns st puelljao
lueur^ed qcns leql pue qdeJOeJBd outpaoard aql ur peqstlqelsa suotsl^old aql ol r.lJoluoo polltuqns
"Electrical Energy" means electrical energy produced, flowing or supplied by an electrical
circuit during a time interval and being the integral with respect to the time of instantaneous
power measured in units of kilor,,ratt hours kWh.
"Fixed O&M Cost Recovery uharge Rate" or'FOMR" means the amount specified by the
Generator in Section 2 oi' Attachment A of this Schedule 8 and applied for Capacity Charge
calculation for a Billing Period
"Forced Outage" is as deiined irl Clause 1.1 of the PPA
"Fuel Gharge" means the amount payable to the Generalor for the cosl of fuel deemed to have
been consumed for the production of Net Output, and for the start-up of Units and is determined
in accordance with Section 3.2..1 of this Schedule I (Tariff).
"Output Charge" means a monthly payment by the Offtaker to the Generator lhat covers the
variable operation and maintenance payment and Fuel Charge, and is determined in
accordance with Section 3 of this Document
"Scheduled Outage" is as defined in Clause 1.1 of PPA.
"Unit" means any separately dispatchable unit of the Plant
118
--t7
-,--/.
1
)
2.'l
Total Payment for Power
The Total payment for Pov/er is determined as follows:
TPm = CCm '1" OCm
CCm = Capaciiy Charge (in US$) for the Billing Period 'm'
OCm = Output Charge (in US$) for Bitting Period 'm'
m = Billing Period
Am = Componerrt A of the Capacity Charge for the Billing Period 'm'
Bm = Component B of the Capacily Charge for lhe Billing Period 'm'
Where:
Capacity Charge
The Capacity Charge has iwo components and is determined as follows
CCm = Anr +Bm
Where:
CCm = Capaclty Charge for the Billing Period 'm'
Component A of the Capacity Gharge
Component A of the rlapacity Charge covers lhe base capital costs of the Project, and is
determined as follows:
Am=CBCm-DRAm
Where:
CBCm = Capital Base rlh3lgq Payment (in US$) for the Billing Period 'm'
DRAm = Deduction frorn CBCm for Reduced Availability (in US$) for the Billing Period 'm'
2.1.1 Capital Base Charge
The Capital Base Charge Pal.,ment (in US$) for the Billing Period 'm' is determined as follows:
CBCm = CCRm * DCrrr * Pl itn -10
1 '19
CCRm = Capilal Cost Recovery Charge Rate (in US Cents/kwh)for Billing Period 'm'
DCm= Dependable Capaciti/ (in MW) for Billing Period 'm'
PHm = total number of Hor.rrs in the Billing Period 'm'
2-1.2 Dependable Capacity
The Dependable Capacity (in IV]VV) for Billing Period'm'is determined as follows:
FDNE-= 1 ->PH.DC,
where
DC1 = Dependable Capacity (in fi4W) for Hour i of Billing Period 'm'
i = each hour in Billing Period 'm'
2.1.3 Deduction for Redlrced ;rvailability
The Deduction from CBCm foi Reduced Availability (in US$) for the Billing Period 'm' isdetermined as follows:
DRAm=CCRm"LCam"10
Where:
LCam = Actual Loss of Nlei Oulput (in kwh) due to Forced Outages in Billing Period 'm'
2.1.4 Actral Loss of NetOutp!rt
The Actual Loss of Net Output due to Forced Outages shall be determined as follows:
JLGam = xpr (UDi. (DC'n - DCr))
UDj = Length of Actual Period of Forced Outages (in hours), as per Availability Notice, for
each Period 'i'
DCj = Capacity (in It/W) oi the Plant available for the Period I' based on the Reference
Site Conditions, after adj(sting only for Forced Oulages as specified in the Availability
Notice, provided thai DCj i; equal to or less than DCm in the applicable Billing Period
Where
120-4
j = Each Period ol Forced Outages (as per Availability Notice)
J = Number oi periods ,)f Forced Outages (as per Availability Notice) in Billing Period 'm'
2.2
J
Gomponent B of the Gapacity Charge
Component B of the Capacit)/ Charge covers the fixed O&M costs of the Proiect, and is defined
as follows:
Bm=FOMPm-DOMi,r
Where:
Bm = Component B of the Capacity Charge (in US$)for the Billing Period'm'
FOlvlPm = Base Fixed rl&lvl Payment (in US$) for the Billing Period 'm'
DOMm = Deduclion from FOI/Pm for Reduced Availability (in US$) for the Billing Period
m
2.2.'l Base Fixed O<ll Payrnent
Base Fixed O&lvl Payment i,rl the Billing Period 'm' is determined as follows
FOMPm = FOMRm * DCm " r,llm * 10
Where:
FOMRm = Fixed O</ Cost Recovery Charge Rate (in US Cents/kwh) for Billing Period
'm'
2.2.2 Deduction for Reduc€id Availability
The Deduction from FOMPm for Reduced Availability (in US$) for the Billing Period 'm' isdetermined as follows:
DOMm=FOMRm"LCam'lt)
Output Gharge
The Output Charge is determined as follows:
OCm=VOMPm+FCn,
OCm = Output Charge for the Billing Period 'm'
121
zzt
:s/,^ollo] Se poultllJolop SI ,tu, po[ad
6ur r8 q.ee ur lndlno laN lo uollEieuao eql roj uo[dunslro] IO lenl ^^eaH
peuraaq aql
uolldunsuo:) llo lsnl ^^BaH
paurooo Z'Z'e
'/v\olaq9agqdeioeted
u! pauUop se ,ur, polJsd 6ur1;rg ur (srseq AH-t '19/$Sn u!) Olt ]o acrd ='doj-l
'/!\olsq fle'e qderoered
ur paurlap sE ,ru, pouad 6ur11rg ur (srseq nHl 'le/$Sn u!) OJH lo a3ud = udolH
porrcd ourplrg ur qrels ]run lol (19 u;) uorldunsuo3 (Olf ) ltO lonj lq6rl potJeao = uSqJ
',u, polJad
Eurlgrg ur 1nd1ng loN ro] (fe ur) uolldunsuog (OfH) ttO lon:t ^^eoH
peuaoq = ufNgl
',ru, pouad ourllrg ur (gsn ul) lueurIe4 lsoC lanj lelot = @Ol
sJaq,4
('dog't, -sqJ) + edoJH * -INoJ) ='cl:s/nollo] se paurulolap sr ur poljed 0ur11rg ur ($Sn ur) ]uauJ^ed ]so3 Ianl aql
luauAed lsog lanj ['Z'0
ao.reqC lon j Z't
,r-u, pouad 6ut11rg .lo1 (q61ys1ue3
Sn ur) aleu aoreqg r{.lanoceg lso3 acueuaturey! pue uollBjado olqeuen = uuy\lon
,ur, porJad tiurllrg ur tndlno loN = rlpf
00t i ruuwon * LuBl =rldNon
luour^Ed y\go alqBUBn ose€ [ g
,ur, pouad 6ur11g eq1:o1(gg1 uD luau^ed nto alqer.ren osp6 = tud/\OA
:or3qM
,ru, poua6 our1rg eql ro] ($Sn LI) tuau.r^ed )soC lonj = uCj
?'
ainleradurol ]uarquE e6B]a^e eq.L
'IUn Oql ]o rndlno lou e6e]o^E aql
:,u.r, polJed DuIIg ;o rnoq qcea Jo,lceuar
ol perldde Vdd slqt Jo (lueld erll ,o uouducsoo) | alnporlcs ]o B uolcos u! pap!^ord sroleel
uollc€Ioc eleJ leoq s/arnlselnueul eql qlli!\ llun qcea Jo, suotupuoJ eeuoleleu lB rps^ lseiluocqcEa le lueld oql rcl saNnc uouepeloep aql ol ocuoJajal qlr/l puB loe4uoC Cdf aql ql!/!\
acuepjoosB ur peuluJelep se sole.l leeq peol llnl eql Jo srseq aql uo psutuJelap st ,tu, pouad
6un1g ;o r rnoq qcea u! n ltun qcea .ro; (srseq 1p1'1 ue uo qM)upt ur1 igH etag teeH laN arll pue
',ru, polJod ourtlrg ur uno;1 1o roqunN lelol = Hd
',uI, po[ed ourllq ur ]noH qcBa = r
(lueld aqtJo uolldlJosac) ! alnpaqcs;o I uo[oes ur ]no los
se ,u, polJod Durlllg lo Jnoq qoea ur n lrun Jo] (srseq nH-l 'qM)i/pl r.Lr) ole;! teaH loN =:UH
'l!un qgeo ]o sleuruual Joterous6 "Lll
1e pelelau se ,u,poued 6ur1;rg 1o .rnoH qcea u! n lun iiq (qM) u1) uorte:auag pelereue6 1nd1n6 1"x1 j*"3
:aJeqA{
f=t(,l]l.1
" rule]),,Hd3 = ,, ql
sil^ollo, se paururalap sr ,r.u, polJad 6ur11tg ur n lruq Jol pueuo6 lsn1 pauraag aql pue
'.ur, pouad 6url[g ul 6u[erado s]lu{l }o reqLunu lelol = N
']lun ]o Jaqunu = n
'.r1r, porJad 6ur11rg ut n lrun Jol pueua,l lan-l pouraao = n Oj
:eJoq/v\
( . or) NA*ENo.l
/'m/)TZL \\-Z
,7
nzt
saoJeqc soeJols pue xel 'Ilnp Uodur 1{^ol ulnalorlod '^^ol uollnqulstp
lan] 'sao] ^ouo6e
B rolsue.il 'f^al lqolorJ 'ooBrnurap 'sao.rerll) Uod 'ssol lq6raJ] 'lsoc lqolo4'uo!lelrodsue4 ,uJ, pouad 0u!ll!E ur rolerauag oql Iq paseqc.rnd Ojl ,o oclJd aoera^e palqoram
aql se ualel oq lleqs ,ur, porJod oullllE u! (slseq nHl 'le/$Sn ul ''dOJl) Ojt ]o a3ud aqf
tro lanl ]qo!-I Jo aeud 9'z'0
'Jea^ pp4uoc aql Ja^o poseqcJnd olH lo a3!rd ooera^e aql ol luole^lnbo
eq llEqs Jee lcBJluoc aql ur saoleqc lanl ^Hluor.u
,o uorlElnclm aql u! posn olH lo acrJd
[1q1uou a1e6ar66e oql leql qcns 'Jea peJluoC aW ]o r.iluouJ ]sel aq] roJ aOJeLlC lonl OjH aq]
Jo uollelncpc oql ut pasn acl-rd OjH oq) ol opeui aq lleqs luaurlsnlpe ue'sanle^ asaql uaaN\eq
ocualsglp ^ue
]o lua^o ol.ll ul saOJeqC lanJ OIH ^lqluoLu
eql io uorlelnolec oql ur posn OIH
Jo acud ooeJo^e ^lqluor.u
ole6ar66e oql ol poredrxoc pue palelnclee eq lleqs Jeal lce4uoC aq)
ra^o roleJaueg aql ^q
paseqcrnd OIH Jo ocud a6ere e eql 'reo^ loeJluoC qcea ]o pua aql lV
'sa6reqc aOerols pup xpl 'Ilnp Uodu! '^^al un3lo.qacl '^^al uonnqulsrp lsnl 'saal
^cua6e ? reysue.rl '{rra; 1q61a.t1 'a6e::nurep 'sa6Jeqc Uod 'ssol lr-l0re4 'lsoc }tl0ra;i 'uoleuodsuer}
ourpnlcur ,ur, pouad oullrE ur role.reuae aql Iq paseqcrnd OjH lo aerJd ooeia^e palqolan
aql se uolel aq lleqs.ur, poua6 6ur;Ig ur (srseq nHl'le/$Sn u! '-dOlH) OIH;o ecpd aq1
llo fanJ r{^eaH }o aatr<J y'z't
llueld eql ]o uolld csoc) l, olnpaqcs ]o / uolloas u!
lno los se n lun Jo] (slseq nH.l 'l'g ur) Uets llun rad lro lanl lqorl ]o uo[dunsuoC = nSJ
',uJ, po,Jod ourllg u! n lrun ro, slJels ]ueld roqunS 1e1o1= ng11
eloq/\
ngl ,ngt{= "SAJ
se pa^rJep
s! q3rq^ ,t.r, porra6 6ur1p6 ur n llun ,o sdn-Uels lo] uoqdunsuoC lto lonl lq6!l =:SOl
AJAq/!\
'{.sol) '=n ,3 ='ggg
:s/'^olloJ Se pautUuolop st .ru,
pouod 0urllrg q3ea ur tndlno laN ]o uolejauao oql ro] uotrdunsuoC llo pnl tq6tl pauraoc aq1
uolldurnsur-,X ll9 lonl lq6t-l pauao6 0 Z.g
4
At the end of each Contracl '/ear, the average price of LFO purchased by the Generator over
the Contract Year shall be iialculated and compared to the aggregate monthly average price of
LFO used in the calculatk)rr of the monthly LFO Fuel Charges. ln the evenl of any difference
between these values, an adjustment shall be made to the LFO price used in the calculation of
the LFO Fuel Charge ior the last month of the Contract Year, such that the aggregate monthly
price of LFO used in the calculation of monthly fuel charges in the Contract Year shall b€
equivalent to the average price of LFO purchased over the Contract Year-
125
1
Attachment A - AtI eed Values for Capacity Charge Calculations
Capital Cost Recovery Gharge Rate
The Capital Cost Recovery Charge Rate CCR will be used in the calculation of the Payment of
the Capacity Charge, and is defitred as:
CCR = the following rai.es ilr US Cents/kwhl
Fixed O&M Cost Recovery Charge Rate
The Fixed Operation and Maintenance Cost Recovery Charge Rate ("FOMR) to be used in lhe
calculalion of the Capacity Charge is:
FOMR = FOMR Lube + FOMI']_ Fquipment + FOMR Labor
where
FOA/R Lube = 0.24 US Cents/k\l1fr
FOMR Equipment = 0.75 US Cents/kwh
FOMR Labor = 0.64 US Cents/k\A/h
FOMR Lube is to be adjusted annuaily according io the Lube Price lndex, or, if the index is not
available, then another index agreed by the Generator and the Offtaker prior to Financial Close,
or in the event of failure to agree lhen such index or method of calculation as shall be
determined by the Expert as nominated and appointed in accordance with the provisions of
Clause 17 (Governing La\^/ and Dispute Resolution) of the Agreement. The effective value of the
index on Signing Date shall be considered to be the reference index.
FOMR Equipment is to be adjusted annually according 1o the US Consumer Price lndex, or, if
the index is not available, then another mutually agreed index or in the event of failure to agree
mi6-atedthen such index or method o[ t;alculation as shall be determined by the Expert as
126
(a) $0.0537 (five decimal three seven cents) per kWh from the Phase I Commercial
Operation Date, until the occurrence of Phase Il Commercial Operation Date.
(b) $0.0487 (four decimal eight seven cenls) per kWh {rom the occurrence of Phase ll
Commercial Operation Date for a period of 36 months.
(c) $0.0437 (four decimal three seven cents) per kwh from the earlier ol the 36 month
anniversary of the Phase ll Commercial Operation Date and the Phase lll Commercial
Operations Date.
(d) $0.03 (three cents) per l(Wh for Net Output that is delivered by a Phase which is
undergoing a COD Test.
and appointed in acc<-rrdance with the provisions of Clause 17 (Governing Law and Dispute
Resolution) of the Agreemcnt. The effective value of the index on Signing Date shall be
considered to be lhe reference index.
FOMR Labor is to be adjusted annually according to the Siera Leone Consumer Price lndex,
or, if the index is not available, then another mulually agreed index or in the event of failure to
agree then such index or method of calculation as shall be determined by the Expert as
nominated and appointed in accordance with the provisions of Clause'17 (Governing Law and
Dispute Resolution) of ihe Agreement. The effective value of the index on Signing Date shall be
considered to be lhe relerence index.
127
Attachmerrt B - Agreed Values for Output Charge Calculations
1 Variable O&M Cost llecovery Charge Rate
Output Charge calculations will use the following agreed value,
VOMR=OUSCents/kwh
(Zero US cents per kwh)
.i-'/
Schedule 9
lnsurance
PART l: CONSTRUCTION PERIOD
A. Marine and Air Cargo
Cover: All materials, equipment, machinery, spares and other items for
incorporation in the Plant against all risks of physical loss or damage
while in transit by sea or air from any country of oiigin to the Plant site
Sum insured: An amount equal to the maximum value of -any one conveyance,
shipment or storage location
lnsured: The Generator, the EPC Contactor and suppliers to the Generator and
to the EPC Contractor
Period of cover: from the start of shipments to the commercial operation date for each
Phase
B. Consuuction All Risks
The works executed in accordance with each EPC Contract and in the
course of execution, materials and temporary.works, while on the Plant
sites, against all risks of physical loss or damage other than industry
standard exclusions
Sum insured: The reinstatement value of the works as defined and / or contemplated
in each EPC Contracl
lnsured: The Generator, the EPC Contractor and all suppliers and consultants for
their manu'al on site activities only, the Offtaker and the Finance Parties
Period of cover; from notice to proceed under each EPC Contract to the commercial
operation dale for each Phase
Cover:
129
@z
C. Public Liability
Cover:
Limit of Liabilitv:
lnsured:
Period of cover:
D. Miscellaneous
Other insurance required by Law
A. All Risks lnsurance - Fixed Assets
Cover:
Sum insured:
lnsured:
Against legal liability to third parties for accidental bodily injury or
damage to property arising out of the construclion, testing and
commissioning of the Plant
US$ 5,000,000 per occuffence, other than where aggregated in line with
insuranc€ market practice
The Generator, Finance Parties, Generator Parties, all suppliers and
consuliants for their manual on site activities only and the Offtaker
from notice to proceed under each EPC Contract to the commercial
operation date for'each Phase
PART ll: OPERATING PERIOD
All building contents, machinery, stock, fixtures, fittings and all other
personal property forming part of the Plant (but excluding the New
Transmission Facilities) against'All Risks" of physical loss or damage,
including machinery breakdown, other than industry standard exclusions
Full replacemenl value of the Plant, or first loss limit agreed with the
FinaDce Parties
The Generator, the O&M Contractor, lhe Offtaker and lhe Finance
Parties
From the commercial operation date of each Phase to the expiry of the
Term
Period of cover:
130
[rJ01
aq] p fuldxa aL{l ol aseud qcea ro} alep uolprodo prcra[luJoc oLll rro{
Joleuoaql pue soued $ueuH oql 'rolee4uoc yISo e$ 'rcteJauog aql
as4cerd lelreui gcueJnsur ql!/$
a-u!l u! palE6er66B eraq/n ueql laqlo 'ecuerncco fue rcg OOO'OOO'9 $Sn
lueld eql lo acuPuslureur
pup uollErado 'dlqsreur o eql lo lno oulsle s3lued pJlr.ll ol ^Jnful ^ltpoqro seluBd prl.ll lo Auadord ol e6eurep ro] poJnsu! oql lo
^Ilqat le6a-l
'/v\e'l
^q ponnbar se ocueJnsu! raqlo
snoauellecsrr{ o
:E b'516-001Ed
F'5rhsui
pa-ihsqr urns-
:ra^oa
:{rgrqerl orqn6 'C
l'(flfltor L/
I
I
:leql oJnsua 'q
:uo!]eluauoldu!.sl! uo lodal pue ^ctlod ^llllqlsuodssJ
lelcos alelodDc lPnuue ue aredeJd 6
:pa[o]d uo[erauag aL]] o] uo$Plei ul slMs
^resseoau aql odeq Aoql aJaqir sueeuoa'l exats Jo luau^oldtua aql ol acuoJoJaJd a^!6
:ppJluoC Cdf aql u.rJoped ol esn plloc Jolee4uoC
cdl eql qcrqan selllunyoddo 6u[ce4uoc Jo luau^oldtuo 'Alddns uPouos'] eJJslS
&uuept ol lce4uoC 3d3 ue oul Eulraluo ol roud rolcE.AuoC Cd3 posodord sI tlu/n ryo/v\
pup :patoid uolleJsueg ptll ol uollplol u! sueeuoe-l
Errsrs Jo] soDrunyoddo OutoeJluoc :o lusu:{o;dua 'A1ddns }o uollBllllcBJ aql Ir
:lcaford uo[eJauae eql ol uor]elor
u! saflunloddo ourlcerluoc pue ^lddns
o] uollelal ul suEauoe"l eJrars qll/vr 6u!s!ell !
:.ro1 elqlsuodsar leculo ue lulodde 'lueuleeJ6v srql olu! DulJalueJo slep 0gl, u!r.ll!iv\ 'p
:popJe ^e
aq ol sr pe.JluoJ
aql orolaq s^ep Og tseal le stallno elpatu pcol elelJdoJddB puE allsqa ^ Iun ddd aql uo
lcalord uollerauae 6q1 o1 Ounelar ss!]lunyoddo OulpeJ]uoc lmol Euluocdn lp acunouue
oq ^rq'uosear
o,no" u",u^ sa*runloddo.uu,on,"r,'l,ll-11",'j'ffi:i:::liT:ffi,;ul salrunlJoddo oulce.4uoc.ro luau^oldua '^lddns uBauoa] eJ.rors lptluelod uo UodgJ
palrelop e qlr,r luauiura^oC aq1 apnord luauredrov slLll olul oulJaluo ]o s^pp 0Bl, ulqlli 'q
. ifirlrqelrene pue 6urru[ ',llllqerlet '^ltlenb 'eeud lunocoe o]u! 6ut)iBl
'auoel erals ur socJnos Jaqlo uorj olqElre^e asoql o1 enlerr a;qeteduoc:o lenba '.le1aq
Jo are ^oLll
oJaqr\ 'suBouoal eJrols ^q
papr^oJd secrrues ro 'auoe'l BJJoIS u! pocnpoJd
ro paJnlcelnueu slcnpord pue slelJeleul 'luaudtnba ]o asn oql o1 ecue:elald ei'r10
:lleqs rolBJsuac oql 'z
'ssaulsnq
ueeuoar eJJars J ro "ro"1
BJJals ]o uozrllc " sueou ueouoa'I erols o! arnpaqcs srql ul
' Iotlod luoluog leco-I ouoo'I eJJolS
0L olnp€qcs
+
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e
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:o! alnpaqcs slql ut lno los suolleotlqo aql ql!/r^ acuE!ldtuoc
s,ioleJouag aql uo raleulo oql pue roleJouog oqt ol oullodal pue ouuoltuou.t t1t
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at least 80% of the civil works relating to the Generation Proiect are provided
by Sierra Leoleans;
at least 10olo of total capital expenditure for the Generation Project is spent on
contracts with Sieffa Leoneans; and
t. at least 50% of total expenditure on the operation and maintenance of the Plant
is spent on contracts with Sierra Leoneans,
in each case to the extent that they are of better, equal or comparable value to
those available from other sources ln Siena Leone, taking into accounl price,
quality, reliability, timing and availability.
develop and implement (to the reasonable satisfaction of the Government) a tralning and
successlon program:
so that on the second anniversary of the Effeclive Date, atleast three citizens of
Siera Leone are employed as engineers or mid-level managers of the Plant;
so that commencing from the Signing Date, at least three Sierra Leonean
citizens are trained every flve years as ilrofessional operation and maintenance
engineers with the skills necessary to work at the Plant; and
iii. with a view to achieving the below quotas:
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Managerial positions 20%
Middle level positions 50%
l\,4a na gerial positio ns 60%
Middle level positions 80%
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Sieii'a Leoneof
Schedule 11
Transfer on termination
1. Transfer Notice and Termination Payments
The following table sels out the events giving rise to termination of this Agreement after
Financlal Close for Phase I has been reached, the Party that may serve a Transfer Nolice inrespect of each such event and the Purchase Price applicable to each such event.
Termination event Party that may serve aTransfer Notice
Purchase Price
Terminalion under Clause I4.1
(Termlnation for Generator
Event of Default)
The Government Purchase Price A
Termination under Clause 14.2
(Termination for Ofitaker Event
of Default)
The Generator Purchase Price C
Termination under CIause 14.3
(Termination for prolonged
Force Majeure Events)
Generator or Government Purchase Price B
Generator or Government Purchase Price BTermination under Clause 14,4
(Termination for prolonged
Offtaker Risk Events) where the
Offtaker Risk Event is also an
lndirect Offtaker Risk Event
Purchase Price CTermination under Clause 14.4
Oermlnation for prolonged
Offtaker Risk Events) where the
Offtaker Risk Event is not an
lndirect Offtaker Risk Event
Generator or Government
Generator or Government Purchase Price BTerminalion under Clause 14.5
(Termination following Casualty
Occunence)
The Government Purchase Price CTermination under Clause 14.6
(Termination for lncreased
Costs)
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2. Transfer Notice
(b) A Transfer Notice given under paragraph 1 shall require the Offtaker to purchase all of
the Generator's right, title ind interest in the Generation Project in accordance with
paragraph 5 and Schedule 14 (Hand&er Provisions) if this Agreement terminates as a
result of the events giving rise to the termination right.
(c) lf the Generator delivers a Transfer Nolice, the Transfer Notice shall contain a
certification by the Generator of the Purchase Price applicable under paragraph 1.
(d) lf the Generator receives a Transfer Notice, the Generator shall as soon as practicable
calculate the Purchase Price applicable under paragraph I and deliver a notice to the
Offtaker specifying the Purchase Price applicable under paragraph l.
3. Verification of Purchase Price
(a) The Offtaker may at its own expense appoint a firm of independent accountants to verify
the Generator's calculation of the Purchase Price.
(b) The Generator shall permit the Offtaker's independent accountant to access and take
copies of all relevant documents and records in ils possession that are not subject to
professioial privilege and that are reasonably required by the independent accountant to '
verify the Generator's calculation of the Purchase Price.
(c) The independent accountant's verification of the Purchase Price shall be completed
within 60 Days of the Offtaker's receipt of the Generator's calculatipn under paragraph 2
and the Offtaker shall procure that the independent accountant provides a copy of ifs
verification report to the Offtaker at the same time as it is provided to the Offtaker.
(d) lf a copy of an independent accountant's veriflcation of the Purchase Price is not
delivered to the Generator within 60 Days of the Offtaker's receipl of the Generator's
calculation under paragraph 2, lhe Generator's cerlification of the Purchase Price
dellvered under paragraph 2 shall be the conclusive determination of the Purchase Price
for the purposes of this Agreement upon expiry of that 60 Day period.
4, Payment of Purchase Price
(a) lmmediately upon verification or deemed verification of the Purchase Price under
paragraph 3 or upon agreemenl or determination of the Purchase Price pursuant to
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(a) A Party entitlBd to give a Transfer. Notice under paragraph 1 may deliver a Transfer
Notice at any time on or aftar the dale on which a T€rmination Notice is delivered.
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Clause 17.2(c) (Dispute resolulion by Arbitration), the Offtaker shall pay the Purchase
Price to lhe Generator in immediately available funds to such account or accounts inside
or outside Sierra Leone as the Generator may specify.
(b) For the avoidance of doubt, Clauses 9.8 (Due date), 9.10 (No set-off oi deduction), 9.,11
(Gross-up), s.12 (Cunency) ani g.l3llnterest for late payment) appty to the payment of
ths Purchase Price
5. Completion of Transfer
Simultaneously with the payment of the Purchase Price under paragraph 4, the Generator shall
transfer all its right, title and interest in the Generation Project to the Government.
6. . De{initions used this Schedule 11
ln this Schedule:
Calculation Date means the date on which this Agreement terminates under CIause 14 (Early
termination);
Equity Return means an amount equal to the net present value as at the Calculation Date of all
dividends and other distributions (other than repayment of the principal of any shareholder
loans) which are projected to be paid by lhe Generator to the Shareholders in the Generator's
curent financial rnodel in respeit of all Phases for the period from the Calculation Date until the
scheduled end of the Term, discounted at a rate of 13 per cent Per annum i
lndirect Offtaker Risk Event means:
(a) acls of war (whether declared or not), invasion, armed conflict, act of foreign enemy or
blockade in each case occurring in or affecting Sierra Leone;
(b) acts of rebellion, riot, lnsurrection, revolution, civil commotion, political violence, public
disorder, act or campaign of terrorism, sabotage of a political nature or political violence
in each case occuning within or affecting Siena Leone; and
Purchase Price means Purchase Price A, Purchase Price B or Purchase Price C, as applicable
undsr paragraph 1;
Purchase Price A means an amount equal to:
(a) the Senior Debt Amount; plus
(e) politically molivated boycotts, strikes, go-slows, lockouts or other industrial action in
Sierra Leone subsisting for more than seven consecutive Days;
(b) the amounls referred to in paragraph (a) of the definition of Termination Costs;
Purchase Prics B means an amount equal tg:
Purchase Price C means an amount equal to:
(d)
(e)
(0
(s)
the Senior Debt Amount; plus
Shareholder Contributions; plus
the Equity Return; plos
Termination Costs:
Senior DebtAmount means:
(h) all amounts required to be paid or repaid by the Generator or by any Shareholder under
the Finance Documents as at the Calculation Date, including prlncipal, interest accrued
but unpaid, prepayment penalties and swap break costs; minus
(i) the aggregate balance standing to the credit of all bank accounts maintained by the
Generator with the Finance Parties (including the debt service reserve, maintenance
reserve and insurance proceeds accounts) other than lhe account from which it may
make distributions to the Shareholders;
Shareholder Contrlbutlons means .the capital of the Generator attributable to the
Shareholders as al the Calculation Date, including share capilal that has not been returned to
the Shareholder by way of a capital reduction and shareholder loans the principal amount of
which has not boen repaid as at tho calculation Date;
Termination Costs means the sum of:
(i) all income, receipts, sales, value added, transfer, property.or olher taxes or any other
costs imposed on the Generator by any Government Authority in. connection with the
transfer of all of the Generator's right, title and interest in the Generdtion Project and the
payment of the Purchase Price; and
(k) all amounts payable by the Generator under each EPC Contract and O&M Contract for
work completed under each EPC Contracl and O&M Contract but not yet paid for by the
Generalor;
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(a) the Senior Debt Amount; plus
(b) 50% of Shareholder Conlributions; plus
(c) Termination Costs;
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Schedule 12
Government support provisions
Part I - general Government support provisions
1 Government suppor!
1.1 General Government support
(a) The Govemment shall:
(i) acl and procure that all Government Authorities act in a laMul, timely, reasonable
and non-discriminatory manner in the discharge of all of their powers and
rGponsibilities in relation to the Generation Project and the Project Parties;
(ii) not hinder or lnterfere with and procure that no Governmenl Authorily hinders or
interFeres with the implementation of the Generation Project; and
(b) Where the Government has a procuring obligation under this Schedule 12, that obligation
shall be deemed to be an obligation only to procure lo the extent lhe Government is
legally able to do so.
1.2 . Permits
(a) lssue and renewal of Permits
The Government shall procure that, following a Proper Application by a Proiect Party, the
relevanl Government Authority shall issue,. replace (including fol,owing termination of an
existing Permit) or renew any Permit that ls required by a Project Parly in connection with
the Generation Project in a tirirely manner and on Acceptable PermitTerms.
(b) Cooperation with respects to Permits
lf a Project Party is unable to identify the'Government Authority which is responsible for
issuing a Permit, having used all reasonable endeavours to do 6o,. it may request that the
Govemment identify the relevant Government' Authority and the Government shall
procure that such Government Authority provides full information as lo the requiremenls
and application procedures for the issue, reissue, renewal or amendment of any such
Permit.
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(iii) use its good offices to support their implementation of the Generation Project.
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1.3 Sierra Leone Documents
The Government shall procure that:
(a) if the Generator has fuaived the execution of any of the Sierra Leone Documents as aConditlon Precedent, the Sierra Leone Counterparties duly execute the Sierra Leone
Documents no later than the Milestone Date for Financial Close for Phase l;
(b) al the request of the Generator, the Sierra Leone Counterparties do all further acts and
deliver all further documents as may be reasonably required to carry out the Generation
Project;
(c) none of the Sierra Leone Documents are terminated by the Sierra Leone Counterparties
except as expressly permitted by their terms and the relevant direcl agreement; and
(d) the Sierra Leone Counterparties perform their obligations under the Sierra Leone
Documents in accordance with their terms.
'1.4 Land rights and use ofjetty
(a) The Government shall:
(i) procure that the relevanl Sierra Leonean Counterparty negotiates and enters into a
lease and associated documents for the area of land on.rrhich the Plant will be
situated, as described more particularly in Schedule 1 (Description of the Plant)
within 4 (fouD weeks of the Signing Date and any other leases for fulure siles to be
agreed;
(ii) obtain any related easement or right of ways which are reasonably required by the
Generator for the cohstruction and operation of the Plant and the New
Transmission Facilities; and
(iii) procure that one or more jetties in the Kissy area are available to be used by
international navigation for the delivery of Fuel for the purposes of the Generation
Project from the date that is 12 months after the Financi;l Close for Phase I until
the end of the Term.
1.5 Security
(a) The Govemmenl shall, at the reasonable request of tho Generator provide adequate
security for:
(i) the Plant and the New Transmission Facilities upon the occurrence of unrest,
demonstrations or similar events; and
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(ii) the transportalion within Siena Leone of critical or high value items for the
Generation ProJect.
1.6 Freetown distribution network
1.7
The Government shall procure that all on{oing intervenlions strengthening the distribution
nelwork in Freetown and its management are completed ln a timely manner.
lmports and exports
The Government shall procure that the Project Parties can:
(a) import without undue delay or hindrance all plant, machinery, equipment, malerials and
fuel required by a Project Party in connection wilh the implementation of the Generatio-n
Project, including by procuring that lar/vful customs inspections are carried out within 14
(fourteen) days of a request by a Project Party; and
(b) export without undue delay or hindrance all plant, machinery, equipment and materials
that are no longer required by a Project Party in connection with the implementation of
the Generation Project.
1.8 lmmlgrationcontrols
The Government shall expedite the issue of visas and work permits to qualifying foreign .
employees and consultants of the Project Parties and their family members..
1.9 Direct Agreements
(a) At the request of the Generator, the Government and the Grid Operator shall negotiate
and, no later than the Milestone Date for Financial Close for Phase l, enter into the PPA
Direct Agreement.
(b) At the request of the Generator, the Government and the Grid Operalor shall promptly
enter into a replacement or additional PPA Direct Agreemenl for any addjlional financing
or reflnancing of the Generation Project.
(c) The Government and-lhe Grid. Operator shall comply with their obligations under each
PPA Direct Agreement.
(d) At the request of the Generator, the Government shall procure that each Sierra Leonean
Counterparty negotiates and, no later than the Milestone Date for Financial Close for
Phase I, enters into a dlrecl agreement with the Finance Parties relating to each Sierra
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Leone Document to which it is a party.
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(e) At the request of the Generalor, the Government shall procure that each Sierra Leonean
Counterparty enters into a replacemenl or additional direct agreement with the Finance
Parties relating to each Sierra Leone Document to which it is a party for any additional
financing or refinanclng of the Generation Project.
(f) The Government shall procure that each Sierra Leone Counterparty complies wiih its
obligations under each direct agreement to whlch it ls a party.
(S) Notwithslanding paragraphs (a) to (e) above, each PPA Direct Agreement and other
direct agreement refered lo in this paragraph 1.9 shall be entered into'on terms that are
reasonably acceptable to the relevant parties.
(h) The Government shall provide all reasonable co-operation to the Generalor and the
Shareholders in relation to their endeavours to achieve Financial Close for each Phase,
including by providing in a timely manner such information, legal opinions and other
documents relating to the Sierra Leone Parlies, the Sierra Leone Documents and their
associaled direct agreements as lhe Generator and the Shareholders may reasonably
requlre.
2. Shareholderobligations
The Shareholders shall exercise their voting rights as shareholders lo procure that the
Generator complies with its obligations under Clause 2.2(b) of this Agreement.
3 Offtaker Risk Events
3-1 Remedies for certain Offtaker Risk Events
Clause 12.7 shall apply with respect to the Shareholders
(a) as if references to lhe Generalor were references to the Shareholders;
(b) as if references lo Increased Costs were references to any increased cosls, expenses,
losses or reduction in revdnue relating to the Generation Project to the extent that:
(i) they are incurred by a Shareholder as a result of an event or circumstance referred
to in paragraphs (a), (S), (h), (i) and (k) of the definition of Offtaker Risk Event; and
(ii) the aggregate of all such cosls, expenses, losses or reductions in revenue that
have not already been the subject of a claim under this pa!'sgraph 3.1 exceed
US$50o,000; and
paragraph (d) of Clause 12.7 shall not apply and the Offtaker shall instead reimburse the(c)
increased costs, expenses, losses or reduction in revenue d{J in paragraph (b).
3.2 No double recovery
The Shareholders may not recover any amount under paragraph 3.1 (Remedies for certain
Offtaker Risk Events) to the extent that:
(a) tha increased costs, expenses, losses or reduction in revenue referred to in paragraph
3.1(b) can be recovered bythe Generator under Clause 12.7 (lncreased Costs); and -
(b) they exceed US$30 million arising out of any single Offtaker Risk Event
4 Partial Risk Guarantee and MIGA cover
4.l Partial Risk Guarantee for Phase I
(a) The Government shall prepare and submit an applicalion to the World Bank for a partial
risk guarantee in respect of the Generation Project within 14 (fourteen) Days following the
Signing Date, in an amount of approximately US$40 million, covering six months'
Capacity Charge (estimated at the Signing Date to be US$l3.94 milllon) and six monthi'
Output Charge (estimated at the Signing Date to be US$20.06 million).
(b) Once submitted, the Govemment shall use its best endeavours to pursue the application
for the Partial Risk Guarantee, including providlng such due diligence information, making
available high-level delegations and entering into all customary documentation required
by the World Bank for the issuance of the Partial Risk Guarantee.
(c) The Generator shall be responsible for the Governmenl's reasonable costs of procuring
the Partial Risk Guarantee, including any application fees and the cost of the Partial Risk
Guarantee.
4.2 Alternative bankable cr€dit support structure
lf the Parties agree on an alternative bankable credit support structure under Clause 3.1(b)
(Financial Close for Phase l), paragraph 4.1 (Partial Risk Guarantee for Phase I) shall apply as
if references to the Partial Risk Guarantee were references to the bankable alternative credit
supporl products.
4.3 MIGA Guaraqtee
(a) The Generator and/or the Shareholders shall prepare and submit an application to the
Multilateral lnvestment Guarantee Agency for a contract of' guarantee for equity
invastmsnts in respect of their investment in Phase I the Generation Project within a
reasonable time following the Signing Date.
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4.4
(b) The Government shall provide all reasonable support to the Generator and the
Shareholders in pursuing the application for the MIGA Guarantee for Phase l, including
providing such due diligence information and making available highJevel delegations as
the Generator may reasonably require. The Generator shall be responsible for lhe-
Government's reasonable costs of providing this support.
Partial Risk Guarantee, alternative bankable credit support structure and MIGA lnsurance
for Phase ll
(a) lf a Partial Risk Guarantee was obtained for Phase l, paragraph 4.1 (Partial Risk
Guarantee tor Phase l) shall apply in relation to the application for a Partial Risk
Guarantee (or increase in the existing Partial Risk Guarantee) to cover six months'
Capacity Charges and Output Charges ln respect of Phase ll and the Government shall
submit the application no later lhan 12 months before the Milestone Date for Financial
Close for Phase ll.
(b) lf an alternative bankable oredit support sJructure was put in place for Phase l, paragraph
4.2 (Alternative bankable credit support structure) shall apply in relation to putting in place
a similar structure or extending the existing structure to cover Phase ll and the
Government shall apply for the applicable credit support products no later than 12 months
before the Milestone Date for Financial Close for Phase ll.
(c) Paragraph 4.3 (MIGA Guarantee) shall apply to Phase ll, mutatis mutandis.
(d) Paragraph 4.1(c) (Partial Risk Guarantee for Phase l) shall apply to Phase ll, mutatis
mutandis
Partial Risk Guarantee, alternative bankable credit support structure and MIGA lnsurance
for Phase lll
(a) lf a Partiat Risk Guarantee was obtained for Phase I and Phase ll, paragraph 4.1 (Partial
Risk Guarantee for Phase l) shall apply in relation to ths application {or a Partial Risk
Guarantee (or increase in the existing Partial Risk Guarantee) to cover six months'
Capacity Charges and Output Charges in respect of Phase lll and the Government shall
submit the application no tater than 12 months before the Milestone Date for Financial
Close for Phase lll.
(b) lf an alternative bankable credit supporl structure was put in place for Phase I and Phase
ll, paragraph 4.2 (Atternative bankable credit support structure) shall jpply in relation to
putting in place a similar structure or extending the existing structure to cover Phase lll
and the Government shall apply for the applicable credit support products no later lhan
12 months before the Milestone Date for Financial Close for Phase lll'
4.5
144
(c) Paagraph 4.3 (MIGA Guarantee) shall apply to Phase lll, mutatis mutandis.
(d) Paragraph 4.1(c) (Partial Risk Guarantee for Phase l) shall apply to Phase ll, mutatis
mutandis.
5 Financial matters
5.1 Availability of forelgn currency
(a) lf and to the extent that US$ required by a Project Party in connection with the
Generalion Project are:
(i) not available to a Project Party on demand in sufflcient amounis for a period of one
week through normal banking channels ln Freetown; or
(ii) not available at the rates generally quoted by commercial banks in Freetown for a
period of one week for US$,
then the Government shall make US$ available to the Project Party in accordance with
paragraphs (A) to (D) below:
(A) through the Bank of Sierra Leone;
(B) at the rate generally quoted by the Bank of Sierra Leone on the Business
Day on whictr US$ are made available to the Project Party;
(C) in immediately available funds lo an account inside or outside Sierra
Leone nominated by the Project Party; and
(D) as soon as practicable and in any case within one week of the Project
Party's request.
(b) The Govemment shall not and shall procure that no Government Authority shall in any
way restrict the conversion of funds from one curency to anolher on behalf of the Project
Parties.
5,2 Funds transfers
The Govemment shall not and shall procure that no Government Authority shall in any way
restrict the transfer of funds by the Project Parties to places outside Sierra Leone in connection
with the Generation Project, other than by the proper exercise of powers under the Sierra Leone
Anti-Money Laundering and Combating of Terrorism Act, 2012.L
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5.3 Foreign currency accounts
The Government shall not and shall procure that no Government Authority shall in any way
restrict the opening, maintaining and operation of bank accounts denominated in any currency
by the Project Parties in connection with the ceneration Project, othei than by the proper
exercise of powers under the Siena Leone Anti-Money Laundering and Combating of Terrorism
4c1,2012.
5.4 Offshore bank accounts
The Government shall not and shall procure that no Government Authority shall in any way
restrlct:
(a) lhe opening, maintaining and operation of bank accounts denominated in any currency
(including SLL) outside Siena Leone by ihe Project Parties in connectlon with the
Generation Project; or
(b) the receipt, holding and payment of funds in any currency (including SLL) outside Sierra
Leone by the Project Parties in connection with the Generation Proiect.
5.5 Currency of financial records
The Govarnment irrevocably authorises the Proiect Parties to maintain and submit to
Government Authorities accounts and financial records denominated in US$ for all official
purposes under lhe Law.
5.6 Co-operation of Government Authorities
The Government$hall procure that all relevant Government Authorities do all Such things as
may be necessary to give full effect to this paragraph 5.
6 Expropriation
6.1 Expropriationprocedures
lf the Government or a Government Authority proposes to carry out an Expropriation, the
Government shall give reasonable prior notice to all of the other Parties, setting out in
reasonable detail its intentions, the property subject to Expropriation and the proposed
Expropriation Date.
6.2 Consequences of Expropriation
(a) CECA BVI may by nolice to the Government require the Government to purchase the
whole of CECA BVI'S Equity Interest if one or more of the following events occurs:
146
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ol lcelqns ]ou erB leql uorssessod slr ur spJocej pue slueuncop lue^aleJ lle ]o seldoc
elel pue sse33s oiluelunooce luepuedapu! s,lueuJuJe^oe eql luJad lleqs ng vcSc (c)
'luaur^ed uo[erJdojdxf aql Jo uollelnclBc s,lng VCAO &uo^
ol sluelunoccE luapuadapu! lo r.xru e lurodde esuedxa u/$o slt lB ^Eru
luaururo^oe eql (q)
'(uollPlJdoJdxS lo soouanbosuoC) z 9 tldeJOeJBd Jepun ec!]ou e 6u!re^lep JoUe
alqec[3ejd se uoos se luaui.^ed uo!]elJdoJdxf aql ]o lunotle aql 6ur&uac luauure^oo
elll o) ocllou e re^rlap pue luourled uorleudoJdx3 eql olelnclec lleqs ln8 vc3c (e)
lueur^Ed uollElrdordxf Jo uollpel}Iro^ puE uorlelnrlsC ,'9
'p"t"lnrl"" "q
7 9 qde:6e:ed
'9 qder6aed slql qlli\ acueproccE ul plad pua paulu.ialop
lleqs qorq^ 'luou^ed uolle[doidxf sr.ll sr (uoleudojdx3 ,ro socuenbasuoC)
Jepun lseJelul ,(1gnb3 s,149 V33O,o eloq/vr eql ro, aclJd oseqcrnd oqf
(^!)
luaulAeduollagdordx3 €'g
'ocnou aql ]o Eunr6 eq1:a11e (s^Ep 09 ueql
relel ou lua^e ^ue
ur pue) alqecllc?rd se uoos se lssJelul ^
nb3 s,lng VC3g lo eloq/rrl
oql aseqcrnd lleqs ]ueuru.ro^oe eql '(e) qdEroered rapun ln8 VCfC ^q
ue^16 sr acllou e Jl (q)
's:nc'ao uotleudo.rdx3
,o uouurlep eql lo (q) qdeJoerEd ul ol parJoloJ aouelsuncJlc Jo luo^o {ue (rrn)
reqr ( sa.r n pabo.rd u o lreud oJdxs), ; ff::il11:::ffiTffi;; ::'":::;sr IIadoJd s,Jope4uoC yljg peler[gy [ue;o ped :o oloq^i otll ]o uoleudo.rdx3 ue (n)
:lcaloJd uooeJauoC aql ol palcauuoc ^[caJ!p
s! lEr..ll uncco
,{padold s.ro1cer1uoC f!?O palerl#V riue p ped ro oloq^ aql;o uoneudo.rdx3 ue (,r)
:(saJnpocoJd uolleudordxj) t'9 qderoered repun luauura^o9 aq] ^q
posodord
s! lcaford uoDeJeuag aql ol palceuuoc r{pcarlp st leql ^liadoJd
s.JeploqoJBr.ls
,(ue ro 7 pue 1sa.ra1u1 firnb3 s,.raploqa.reqg e 1o yed lo aloq/r\ oq] ro uollelJdoJdxf uB
isinoco looloJd uollelauoe oql ol palceuuoc ^llcaJlp
sr leql ^Uedold
s,reploqejeqs
Aue ro / pue lsoJolul 411nb3 s,raploqareqs e ]o Ued .ro alotl^1 aql lo uorleudojdx3 ue (!!!)
:(sornpacoJd uollE[dordxf) ['9 qdeJoeJed ]apun ]uorriuJa^og
aql Iq posodord sr
^ljadord s,roleJauoe aql lo Ued Jo eloq^ eql ]o uo4eudo.rdx3 ue (ll)
:sJncco ^Uadold
s,JoleJauoe eql Jo yed .ro elorp,r eq110 uolE[do.]dxf ue (D
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professional privilege and that are reasonably required by the independent accountant to
verify CECA BVI's calculation of the Expropriation Payment.
(d) The independent accountant's verification of the Expropriation Payment shall be
completed within 60 Days of the Government's receipt of GECA BVI's calculation under
paragraph (a) and the Government shall procure that the independent accountant
provides a copy of its veritication report to CECA BVI at the same time as it is provided to
the Government.
(e) lf a copy of an independent accountant's verification of the Expropriation Payment is not
delivered to CECA BVI within 90 Days of the Government's receipt of GECA BVI's
calculation under paragraph (a), CECA BVI'S certification of the Expropriation Payment
delivered under paragraph (a) shall be the conclusive determination of the Expropriation
Payment for the purposes of this Agreement upon expiry of that 90 Day period.
(f) Nothing contained ln, done or omitted to be done under this paragraph 6.4 shall relieve
the Government from its obligation to make an Expropriation Payment when due, nor
delay CECA BVI's right to commence arbilration proceedings.
(S) The Government irrevocably and unconditionally acknowledges that only compensation
calculated and paid in accordance with this paragraph 6 will be fair and prompt
compensatiSn (or meet any other similar requirements) for the purposes of any
investment prolection trealy, Law or other instrument governing an Expropriation.
(h) Nothing in this paragraph 6 shall limit the right of lhe Project Parties to pursue
compensation under any political risk insurance policy or partial risk guarantee or to
terminate this Agreement under Clause '14.2(c) (Termination for Offtaker Event of
Default) of this Agreement.
(i) The Government:
(i) confirms that it is aware that a partial Expropriation may constitute an event of
default or other termination events under the Finance Documents and Project
Documents; and
(iD recognises that the Generation Project is a functional whole and that a partial
Expropriation may have an adverse impact on the whole Generation Project and all
Project Parties,
and therefore unconditionally and irrevocably waives any right to claim that (l)
compensalion calculated and paid in accordance with this paragraph 6 is not a genuine
pre-estimate of the loss incurred by CECA BVI upon an Expropriation of any kind and (ii)
ing its right toCECA BVI is in breach of any duty to mitigate its loss by virtue of exe
14A
require the Government to purchase all of its right, title and interest ln the Generation
Proiect.
6.5 Payment of Expropriation Payment
(a) lmmediately upon verification or deemed verification of the Expropriation Payment under
paragraph 6.4 (Calculation and verification of Expropriation Payment) or upon agreement
or determination of the Expropriation Payment pursuanl to Clause 17.2(c) (Dispute
resolution by Arbitration), the Government shall pay the Expropriation Payment to CECA
BVI in immediately available funds to such account or accounts outside Sierra Leone as
CECA BVI may specify.
(Ul For the avoidance of doubt, Clauses 19.8 (Due date), 9.'10 (No set-oft or doduction), 9.1 1
(Gross-up) and 9.12 (Cunency) apply to the payment ol the Expropriation Payment.
(c) The Expropriation Payment shall bear interest in accordance with Clause 9.'13 (lnterest
for late payment) from the Expropriation Date until the date it is paid in full.
6.6 Completionoltransfer
7 Definitions used in Part I of this Schedule 12
ln Part I of this Schedule '12:
Acceptable Permit Terms means, with respect to a Permit, terms and conditions that:
(a) enable lhe Generation Project to be implemented as contemplated by the Project
Documents;
(c) will only limit the Shareholders' ability to benefit from its Equiiy lnteresl to the extent lhey
are applied in a non-discriminatory manner;
Equlty Return means an amount equal to the net present value as at the Exproprlation Date of
all dividends and other distributions (other than repayment of the principal of any shareholder
loans) which are projected to be paid by tho Generator to lhe Shareholders in lhe Generator's
cunenl financial model in respect of all Phases for the.period from the Expropriation Date unlil
the scheduled expiry of the Term, discountod at a rate of 13 per cenl per annum;
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Simultaneously with the payrnent of the Expropriation Payment under paragraph 6.5, CECA BVI
shall transfer the whole of its remaining Equity lnterest that has not already been subject to
Expropriation to the Governmenl.
(b) enable each Project Party to perform its obligations or exercise or beneflt fully from its
rights under any Project Document or Finance Document; and
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Expropriation Date means, in relation to an Expropriation, the date on which the event or
circumstances constituting the Expropriation first occurs or commence;
Expropriatlon Payment means an amount equal to:
(a) the Senior Debl Amount; plus
(b) the Shareholder Contributlons; plus
(c) the Equlty Return; plus
(d) Termination Costs;
MIGA lnsurance means each guarantee for equity investments to be issued by the Multilateral
lnvestment Guarantee Agency as referred to in paragraph 4 (Partial Risk Guarantee and MIGA
cover);
Pa(lal Rlsk Guarantee means each partial risk guarantee refened to in paragraph 4 (Partial
Risk Guarantee and MIGA covsr);
Propor Appllcation means the submission of an application by a Project Pa(y for a Permit in a
timely manner, accompanied by all relevant application and administration tharges and fees
payable by the relevant Project Party;
Senior Debt Amount means
(a) all amounts required to be paid or repaid by the Generator or by any Shareholder under
lhe Finance Documents as at the Expropriation Date, including principal, interest accrued
but unpaid, prepayment penalties and swap break costs; minus
(b) the aggregate balance outstanding to the credit of all bank accounts maintained by the
Generator with the Finance Parties (including the debt service reserve, maintenance
reserve and insurance proceeds accounls) other than the acaount from which it may
make distributlons to shareholders;
Shareholder Contributions means the capital of the Generator attributable to the
Shareholders as at the Expropriation Date, including share capital that has'not been returned to
the Shareholder by way of a capital reduction and shareholder loans the principal amount of
which has not been repaid as at the Expropriation Date; and
Termination Gosts means all income, receipts, sales, value added, transfer, property or other
taxes or any olher costs imposed on CECA BVI by any Government Authority in connection with
'the transfer of CECA BVI'S Equity lnterest and lhe payment of the Expropriation Payment-
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8 Termination
A breach by the Government of any of its obligatlons under thls Schedule 12 shall constitute a breach
of a material obligation for the purposes of Clause "14.2.
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4 Capital gains The Shareholders, Generator and Finance Parties shall not be
subject to tax in Sierra Leone on any capital gain realised in
relation to the Generation Project, including the sale of all or
part of the business or lhe shares of CECA SL or the
Generator.
5 Employse taxation Employees of the Projecl Parties (excluding {or the purposes
of this paragraph 5 any Fuel Supplier or Finance Parties)
working in connection with the Generation Project who are
citizens of a country other than Sierra Leone and who are not
resident for Tax purposes in Sierra Leone shall be subject to
Tax in Sierra Leone only on their locally recdived income and
shall be taxed on that income at a rate no higher than the
same rale applied to employees with the same tax status in
Sierra Leone of other local companies or, if lower, the rale
applied to employees with the same tax status in Sierra Leone
of non-citizen or non-resident companies. For the avoidance
of doubt, employees of the Project Parties who are citizens of
a country other than Sierra Leone and who are not residenl for
Tax purposes in Sierra Leone and payments to such persons
shall not be subject to NASSIT.
The directors, consultants and employees of the Project
Parties (excluding for the purposes of this paragraph 6
any Fuel Supplier or Finance Parties) working in
cannection with the Generation Project (and the children,
dependants'i spouses and civil partners of each of the
foregoing) shall be entitled to bring into or import, and to
export following or in anticipation of lhe ending of their
period of residence or work such personal and household
effects (lncluding but not exceeding. up to one motor
vehicle per employee or director) in connection with the
same and for any of the same to be promptly processed
through ths port of ehtry or exit, including any customs
procedures, free of all Taxes (other than any prevailing
ECOWAS tax which is currently set at 0.50/o of the value
of the applicable goods), provided that this paregraph
shall not apply to any import or export of motor vohicles
by any consultant.
(b) lf any personal or household effegl-brought lnto the
(a)6 Expatriates
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country by a person free of Taxes under paragraph 6(a) is
subsequently sold within Sierra Leone by that person or
any person connected to them, the Government may then
recover from the buyer of such personal or household
effect such Tax that would have been payablg on import
had the provisions of paragraph 6(a) not applied provided .
that the seller of such personal or household effect shall
notify the Government in writing of the identity of the
buyer and the amount or value of lhe consideration
received for the sale of that personal or household effect.
(c) For the avoidance of doubt all other goods which aie
imported or exported by the directors, consultants and
employees of the Project Parties (and the children,
dependants, spouses and civil partners of each of the
foregoing) and which do not fall under paragraph 6(a)
shall be sub.iect to such Taxes as are applicable from
iime to time under the Law of Sierra Leone and such
admlnistrative practises as are adopted by the
Gove'rnment for the processing of such goods.
7
where an Exempt Project Party is the
recipient of a taxable supply of Plant,
Machinery Equipmeht'or Consumables for
Goods and Services Tax purposes under the
Law of Siera Leone which are required for
use in lhe construqtion, enhancement of
capaiity or overhauling of capacity or (in
respect of a receipt of a laxablo supply of
Consfumables only) the operation of the
Generation Project; or
(2) where a Non Resident Exempt Project Party
is the recipient of a taxable supply of services
in connection with the Generation Proiect,
then th6 supplier making that supply must treat that
supply as if it were a zero-Elted supply for Goods arid
Services Tax purposes and all consequences will follow
for the s the relevant Exempt Project Party as
Goods and ServicesTax
(a) Subject to paragraph 7(d) below
(1)
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if it were such a zero-rated supply. Any taxable supply
which a Non Resident Exempt Project Party is treated as
making by virtue of being a recipient ol a supply of
imported services in connection with the Generation
Project shall be treated as if it were a zero rated supply
for Goods and Services Tax purposes. ln this paragraph
0, the expressions "input tax", "taxable supply" and
"zero-rated" shall have the same meaning as they do in
the Goods and Services Tax Act, 2009.
(b) Notwithstanding paragraph 7(a) above, if and to the
extent that an Exempt Project Party incurs any amount of
lnput tax (other than input tax ialling within paragraph
7(d) below) imposed under the Laws of Sierra Leone in
connection with the Generation Project, the Competent
Authority shall, on that Exempt Project Party's request,
promptly refund the relevant Exempt Project Party in full
for allsuch amounts.
(c) The Competdnt Authority shall pay any input tax refund
.due to an Exempt Project Party unddr paragraph 7(b)
within foyr months of that Exempt Project Party
requesting the refund. lf the Competent Authority does
not pay the input tax refund within that four month time
limit, any amount of unpald input tax refund shall
immediately and to the fullesl extent possible be set-off
against any other Tax which is due and payable by that
Exempt Project Party in Sierra Leone or any Tax
imposed by Sierra Leone which is required to be withheld
at source from any payment made by that Project Party.
(d) Paragraph 7(a) above shall not apply in respect of Goods
and Services Tax imposed on the importation or
purchase of any goods or services, where the provisions
of Paragraph 1(a) shall instead apply and for the
avoidance of doubt where Paragraph 1(a) does not
provide an exemptlon, such import or purchase shall be
subject to Goods and Services Tax in accordance with
the general position under the Laws of Sierra Leone.
(e) For the Purposes of this Paragraph 7 "Exempt Proiect
Parties" comprises only the Generator, Shareholders,
EPC Contraclors, O&M Contrglqrs and the
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Subcontractors and "Non Resident Exempt Proiect
Parties" comprises only Exempt Project Parties that are
not resident for Tax purposes in Sierra Leone and which
do not have a permanent establishment in Sierra Leone.
Subject to paragraph 8(b) below, none of the Finance
Parties nor the Shareholders shall be, or be deemed to
be, resident, domiciled or carrying on business (whether
through a permanent establishment or otherwise) in
Siena Leone solely by reason of the execution, delivery,
performance or enforcement of the Project Documents or
the Finance Documents or in r6spect of the carrying out
of any part of the Generation Project. No Sub Contractor
or EPC Contractor or O&M Contractor who would not
otherwise be resident, domiciled or carrying on business.
lhrough a permanent establishmeni in Sierra Leone shall
be resident, domiciled or carrying on business through a
permanent establishment in Sierra Leone solely by
reason of work which they carry on'in connection with the
Generation Project).
(b) Paragraph 8(a) shall not apply.to remove any liability for
NASSIT, where. the provisions of paragraph 5 shall
instead apply, or act to extend the exclusion set out in
paragraph 'l (a) or 7(a) in respect of any tax on import or
Goods and Services Tax (respectively).
(a)
o The Government hereby irrevocably and unconditionally agreesin the terms of this Schedule:
(a) to waive for the period of the Term plus two years its
righls in respect of Tax insofar as they are inconsislent
with the terms set out in this Part ll of Schedule 12; and
(b) for the period of the Term plus lwo years not to seek to
recover Tax from the Project Parties insofar as sucll
recovery would be inconsistent with the terms set out in
this Part ll of Schedule 12.
Confirmation
10The Parties to thiS Agreement hereby acknowledge and agree
that the exemplions from tax as set out in-this Scdedule t have
been provided solely for the development, operation and fundinil
of the Generalion Projecl and shall not apply for any other
purpose.or in relation to any other activity and no term of this
--
Purpose
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Agreement shall restrict or prevent the Government from
exercising any powers it may have from time to time to
investlgate and ensure the exemptions are being applied in
accordance with this Part ll of Schedule 12.
No double recoveryand no misus€provisions
(a) To the extent that claims can be made (in respect of the
same facls or circumstances) by the Generator both for
breach of the Governments agreement in this Schedule
and also under Clause 12.7 (lncreased Costs) (ignoring
any deminimis threshold on such claims when
determining whether a claim under Clause 12.7 can be
made), then claims cannot be made tor breach of this
Schedule to.the extent that lhe Generator would have
been unable to recover under Clause 12.7 solely by- virtue of the applicable deminimis threshold that applies
to such drtaim.
(b) ln relation to paragraph 7(b) above (payment in respect of
(c)
Goods and.Services Tax) no payment shall be made to I
the extent that the relevant Project Party has already
recovered an amount representing or in respect of such
input tax from a Competent Authority. lf payment is made
under paragraph 7ib) the Project Parties agree to wa ve
their rights to claim for or in respect of such amounts
under Law and agree not to claim for such amounts
'under Law.
The Generator shall ensure that, through the EPC
Contract and the O&M Contract, the EPC Contractor and
the O&M Contractor agree:
(1) to act in accordance with and be bound by the
provisions of paragraphs 1(b),11(b) and 1 1(d)
of this Part 11 of Schedule 12;
(2) procure that the Subcontractors are bound
under the terms of their contracts with the
EPC Contractor and the.O&M Contractor or
other Subcontractors (as applicable) to act in'accordance with and be bouhd by the
provisions of paragraphs 1(b),11(b) and 11(d)
ofthis Part ll of Schedule 12,
11
158
(d)
(e)
and the Generator shall use all reasonable endsavours to
enforco such obligations and require the EPC Contractor
and the O&M Contractor and Subcontractors (as
applicable) to enforce such obligations, and shall use all
reasonable endeavours to give the Government direct
rights to enforce such obllgations against the EPC
Contractor and the O&M Contractor.
Without prejudice to (a),(b). and (c) above or to Clause
18.19, in respect of any liability which may give rise to a
right of a Project Party to recovef damages or oblain
payment, reimbursement, restitution or indemnity
(including through changes in the Tariff) (whether under
this Agreement, any Project Document, rights under Law
or otherwise):
(1) no such liability shjll ue met more than once;
and
(2) to the extent that such liab-ility is satisfied by
way of a claim pursuant to rights other than
those provided in this Schedule, any amount
payable pursuant to this Schedule in respect
of the same matter is reduced accordingly,
and vice versa.
Without prejudice to any other rights and remedies that
the Government may have, in the evint that a Project
Party is found to have failed lo comply with lhe Law
relating to Tax (as modifled by this Schedule), other than
with the express written agreement of the Government,
and:
(1) such Proiect Party or any of their present or
former directors, officers or employees or
consultants was aware that the Project Party
had failed to comply with the Law relating to
Tax (as modified by this Schedule); and
(2) the amount of Tax in Sierra Leone that was not
assessed and which should have been
assesseci had the Law (as modified by this
Schedule)-b6ei-6rrectly applied exceeds in---.
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aggregate (being the aggregate of all such
failures by that Proiect Party)US$300,000, then
that Project Party shall cease to benefit from
the provisions of this Schedule 12 with effect
from the date of the failure that triggered the
operation of this Paragraph 11(e). The Parties
acknowledge that if the Government wishes to
enforce lhe provisions of this.Paragraph '11(e)
the burden of proof in establishing that thls
'Paragraph 11(e) applies shatl in the first
instance fall on the Governm6nt.
(f) ln the event that arrangements are entered into with the
intention of extending the scope of the benefit of the
provisions of Part li of thjs Schedule either to persons
who would not or transactions which would not, absent
such arrangements, be entitled to benefit from the
provisions of Part ll of this Schedule, then the
arrangements are not to achieve that effect and Part ll of
this Schedule shall be applied as if the arrangements had
not been entered into. ln this paragraph "arangements"
includes any agreement, understanding, scheme,
transaction or series of transactions (whether or not
legally enforceable).
(g) This Part ll of Schedule 12 shall not waive, reduce,
remove or limit any liability for or in respect Taxes on or
in respect of petrol, diesel, HFO, LFO or other fuel.
The Generator shall promptly, and in any event within 20
Business Days, notify the Government in writing:
(a) when a person becomes a subcontractor under limb (e) of
the definition of Project Parties, with such nolification to
include (i) the date on which they became such a
subconlractor and (ii) reasonable details of the goods or
services that will be subject to relief, exemption or waiver
in accordance with this Part ll of Schedule 12 (the
'Exempt Llst"); and
(b) when a person ceases to be a subcon
(e) of the definltion of Pro
r under limb
rties for whatever
12 Subcontractors
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JOj secuerldde pue stueetJqnl 'sauossecce pue seJols (q)
Ncelor6 uorleiaueg
alll ol uoleleJ ut ,,1ueudrnb3 pue &eurqceyl 'lgBld,, louollruqsp or.ll 1o (1 o1 (e squirl 1o,(ue ql!^
^le^lsnpxaasn roJ sa3uetldde pue sued aJeds 'souossacJe (e)
1ca[o.t6 uoneraueg aql ]o uolleJedo aq] (luB^atar
arsqi!\) pue lo aJnlsnilse4u! eq1 6uluqelureuL pue 6uUlEdaJ
'luaurdlnba pue lauuosad 6uryodsue.q 'raruod 6upcnpold
'lcslord uolleJouae aq] lo oJnlcn.rlse{ul aql oulredaJd
pue 6urlpuEq 'ourssecold 'oulleore u! ^ueduroC
dql
,iq pasn spoo6 Our/rlollo] aql lluo sueeur salqsunsuo3
'lqnop ,o "ru"O,onr "U, .,", 'U*j'"jl["r:';"':,;':j:
enssr o1 :amod aql . qiun &rJoqlne
^ue pue AIJoqlnV
anue^eu leuolleN aql 'sujolsnC 'sarpoq ^Jolnlels'sllcunoc lecol'uortElrmrl lnoqlr'A'6urpnlcur luauoorov
siql repun suorte6rlqo s,'lsoe lo uoteluaurelduJ!
oql ur pauJacuoo osLr loqlo Jo Joj elqrsuodsoJ s! qc!q^
Ipoq ^ue
pue ]soe sql sueeu solllroqlnv luoladuroC
:alnpaqcs srql ulsuo!lru!rao 0t
luauu:eaog aql Aq ldlacal Jole sAeO ssoursng 0Z
lsr-l ldujaxl ourpoceJd oql ecBldor ol (JolcEJluocqns,o uofluuap
aq1 1o sesodrnd sql Jo]) uele] aq llBqs lsl.i lduax3 pe]epdn
qcns ([) pue ropErtuooqns qcns ]o] zl, alnpeqcs Jo ll led srqt
qlII\ scuEpJocce ul Ja^!e^ Jo uollduexa 'lerlo.r ol leelqns aq ll/v\
leql ssc!ruos lo spoo6 aql p sllelep alqBuoseal qlI\^ lsll ]duJaxfpalepdn eql uleluoc lleqs ec[ou uellu/,^ qcns (r) leql papr^ord
'luouruJe^og aql ol arnou ualllJ/r/r lo IE A ^q
'Jol3e4uocqns
uo^16 e Jo loadsor ur papr^oJd ls!'l lduoxf aql fuessacau
,{lqeuosear se ualp sq appdn ol pa[llus eq leqs ]olereuae oql
'lcBrluocq n s
lue^eler aql lo uqlleuruJJel ro ^rrdxa
eql (Z)
Jo llcEJluocqns lue^alar oql'lapun suolleo!lqo
sl! lle pallllln] 6u!^eq Jo]eerluocqns eql (r)
:,o llnsal e se ol poltull lou lnq oulpnlcu! 'uoseaJ
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use exclusively with any of the of limbs a) to k) of the
definition of "Plant, Machinery and Equipmenf';
provided that, notwithstanding limbs (a) and (b) abov€,
Consumables does nof include foodstuffs..
Goods and Services Tax is a Tax under this Agreement
and means any tax imposed under the Goods and
Services Tax Act, 2009
Plant, Machinery, Equlpmsnt means.all machinery,
plant and equipment used by the Company in erecting,
processing, handling and preparing the infrastructure of
the Generation Project, producing power, transporting
personnel and equipment, and repairing and maintainlng
the inlrastruclure of the Generation Project, including,
without prejudice to the generality of the foregoing:
a) construction materials for the Generation Project
and ancillary facilities;
b) generation plant, including transformerst
c) distribution equipment and vehicles used in and
ancillary to their operations;
d) power generating and distributing equiprrent,
solar panels and flood lights;
e) rescue and medical equipment, mobile and fixed
fire protection equipment;
f) camp equipment, pre-fabricated and
containerised accommodation and olfices,
furniture, communication systems,
communications equipment, computers, printers,
plotters and software;
g) water treatment and storage facilities and
ass-ociated retjculation (including the production of
portable wate0;
h) sewasie treatment andltage facilities and
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associated reticulation;
i) workshop equipmenl including tools sets, working
benches, lifting equipmenl, oxy-acetylene sets,
welding machines, compressors, lathes, milling
machines, cutting machines, grinders, oxy-
acetylene bottles and compressors;
.i) fuel storage, conveying, pumps, piping, handling
and packaging equipment;
Subcontractor means a Person:
(a) who is and continues to be a subcontractor under limb
(e) of the definition of Project Parties: and
(b) in respect of whom the Government has received
notification under paragraph 12(a) above and in
respect of whom no notification under paragraph
12(b) above has been received; and
(c) whose contract (by virtue of which they fall within limb
(e) of the definition of Project Parties) is consistent
with and conforms with the requirements sel out in
paragraph 1 1(c) of Part ll of this Schodule,
provided that, without prejudice to the provisions of
this Part ll of Schedule 12, an entity shall only be
capable of being a Subcontfactor for the purposes of
this Part ll of Schedule 12 in respect of goods and
services listed in the Exempt List provided by the
Generator to the Government in respect of that entity
Tax includes all present and future laxes, charges,
imposts, duties, levies, customs duties, excise, deductions
or withholiJings of any kind whatsoever, or any other tax
or charge havlng the effect of a tax, or any amount
payable on accdunt of or as security for any of lhe
foregoing, by whomsoever on whomsoever and wherever
imposed, levied, iollected, withheld or assessed, together
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Surviving Tax Provlsions means the provisions at
' paragraph 1(b) and ll ofPartll ofSchedule 12.
wilh any penalties, additions, fines, surcharges or interest
relating therelo and Taxes and Taxation shall be
construed accordingly.
General interpretation provisions:
The lerm plant when used in this Part ll of Schedule '12
includes prefabricated fixtures and structures, as. well as
special purpose vehicles such as utllity vehicles, scissor
lifts, service vehicles, personnel carriers, fuel trucks and
rescue vehicles and water trucks.
The term machlnery means machinery consisting of acombination of moving parts and mechanical elemenls,
which may be put in motion by physical or mechanical
force.
A person shall be deemed to be connected with another if
that person is connected with another Within the meaning
of section 1122 ol lhe Corporation Tax Act 2010, or, in the
case of an individual, any person connected with him
within the meaning of sections 252 to 254 of the
Companies Act 2006.
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Schedule '13
Milestone Dates
on or before the Milestone Dats for Phase I
Financial CloseEntry into an EPC Contract for Phase I
On or before lhe Milostone Date for Phase I
Financial CloseEntry into an O&M Contract for Phase I
Phase I Financial Close 6 months afler the date on which a partial riskguarantee for Phase I is issued by the WorldBank
Entry into an EPC Contract for Phase ll On or before the Milestone Date for Phase llFinancial Close
Entry into an O&M Contracl for Phase ll On or before the Miiestone Date for Phase llFinancial Close
Phase ll Financial Close 6 months after the date on which a partial riskguarantee for Phase ll is issued by the WorldBank or 6 months after a bankable alternativecr6dit enhancement structure is put in place forPhase ll
Entry into an EPC Contract for Phase lll On or before the Milestone Date for Phase lllFinancial Close
Entry into an O&M Contract for Phase lll On or before the Milestone Date for Phase lllFinancial Close
Phase lll Financial Close 6 months after the date on which a partial riskguaiantee for Phase lll is issued by the WorldBank or 6 months atter a bankable alternativecredit enhancement structure is put in place forPhase lll
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Schedule 14
Handover Provisions
At any iime during the last lhree years of the term of this Agreement, the Parties may appoint an
lndependent Engineer to report on whether the Plant has been maintained in accordance with
this Agreement, including any manufacturers' recommendations. Any Party may request such
appointment by written notice to the others proposing the name of a suitable candidate who
shall be a mem[g:r of the lnstitute of lrlechanical Engineers (or the relevant successor
organisation). lf the Parties have not agreed a candidate within 14 days of that notice, such
fallure shall be deemed to give rise to a Technical Dispute.
The Generator shall give all reasonable access to the Plant and all relevant records for the
lndependent Englneer to prepare his report. The parties shall use reasona6le endeavours to
ensure that lhe report is delivered to the Parties within 28 days of the appointment of the
lndependent Engineer.
The Generator shall use its reasonable endeavours to carry out any works required in order to
ensure that lhe Plant is in Good Operating Condition as at the Transfer Date.
On the Transfer Date, the Generator shall transfer free and clear of all liens and encumbrances
all of its right, title and interest in:
'1.4.1 the Plant;
1 .4.2 all stocks of spare parts and other consumables (other than Fuel) relating to the Plant;
1 .4.3 all records relating to the Plant of whatsoever nature;
1.4.4 all ot the Generatods rights, title, interest, liabilities and obligations in and derived from
the agreements relating to the Generation Project which are valid and subsisting and
capable of being transferred by tho Generator to the Offtaker, other than any agreemenls
between the Generator and any of the Shareholders, the Sponsors aird an Affiliate O&M
Contractor;
1.4.5 the benefit of any warranties or guarantees given by third parties in respect of any
property or assets to be transferred to the Offtaker or its designee which are valid and
assignable as at the Traisfer Date; and
1.4.6 any outstanding insurance claims and the benelit of any insurance policies (including the
insurance policies) which are assignable as at the Transfer Date,
to lhe Offlaker, or a person designated by the Offtaker, in consideration of the payment by the
Offtaker to the Generator of US$1 (upon expiry of the Term) or the applicable Purchase_
166
1.6
1.7
1.8
under Schedule 11 (Transfer on termination) (in the case of early terminalion of this Agreement)
(the "Plant Transfer').
1.5 The Plant shall be transferred in Good Operating Condition
Twelve months befor€ the expected Transfer Date (or as soon as possible following delivery of
a Transfer Notice under Schedule 11 (Transfer on termination)) the Generator and the Offtaker
shall each appoint two people who shall be responsible for planning and ihlplementing the Plant
Transfer (the Handover Commiftee). The Generator and the Offlaker shall ensure that their
appointees have lhe appropriate technical skill and experience to perform'this role.
The Handover Committee shall have their initial meeting no laler than 11 months prior to the
expected Transfer Date (or as soon as possible following delivery of a Transfer Notice under
Schedule 11 (Transfer on termination)), and thereafter shall meet no less than twice a month
until the Plant Transfer.
The Handover Committee shall take all such steps as are roasonably practicable to ensure that
Plant Transfer takes place in accordance with this Agreement and shall seek to agree whether
the Generator should continue to procure and maintain stocks of Fuel in accordance with this
Agreemenl or whether those should stocks should be managed doivn.
1.9 On the Transfer Date, the Offtakerlhall purchase all stocks of Fuel held by the Generator. The
Offtaker shall pay the Generator using the av'erage prices of HFO and LFO for the final Contract
Year as referred to in paragraphs 3.2.4 (Pice of Heavy Fuel Oil) and 3.2.5 (Price of Light Fuel
Oil) of Schedule 8 (Tariff) on, and as a condition of, the Transfer Date. The purchase price of
such Fuel is included in the applicable Purchase Price payable under Schedule 11 (Transfer on
termination) where this Agreement is terminated early.
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Schedule 15
Collection Account principles
Parties The Parties and a collection account bank to be agreed by the
Parties
There may be a mechanism for other iQdependent power
producers in the Weslern Area of Sierra Leone to become party,
wlth appropriate decision-making mechanics
Collection Account Throughout the Term, the Grid Operator shall credit all revenue
f'om end-users of electricity in the Western Area of Sierra
Leone to a segregated Collection Account by way of an
automatic weekly cash sweep
Payments from the Collection Account will be made only in
accordanca with a cashflow waterfall, with the Grid Operatofs
approved operating .expenditure ranking first and all amounts
payable to the Generator and other power producers ln the
Westein Area ranking pro rata to the number of MWh generaled
Government liquidity support Each month, the Government shall credit an amount to the
Collection Account equal to any deficit in payments forecast to
be made in accordince with the Collection Account Agreement
cashflow waterfall
PPA Escrow Account The Collection Account Agreement will also govern the Escrow
Account
Charge Over Receivables The Grid Operator will grant a first fixed charge over the Grid
Operatdr's receivables from end users of electricity in the
Western Area of Sierra Leone and the Collection Account in
favour of lhe Generator on custcmary terms for such a
document in Sierra Leone. This security may be shared with
other independent power producers in Sierra Leone
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Schedule 16
New Transmission Facilities
The works will include the upgrade of the lines from the generator site in Kissy tp to the substations in
Blackhall Road and Wellington. The works for Phase I will include:
Kissy Collector Primary Substation: Construction of new station building and equipment
foundations and installation of new 33/11kV 60MVA substation facility at the generation site:
Existing Blackhall Road Primary Substation: Expansion of 33kV switchgear in existing
33/'l 1 kV primary substation;
Existing Wellington Primary Substation: Expansion of 33kV switchgear in existing 33/11kV
primary substation;
33kV Distribution Line: lnterception of the 33kV line from Wellington to Blackhall Road. lf the
line lacks lhe ability to evacuate the requlred power then the same will be upgraded to ensure
this evacuation. ll must be noted that the'upgrade means the running of new lines on the
existing structure that have the ability to cover the shortfall of the existind line.
The Offtaker may seek the assistance of the Generator to connect major commercially viable
customers within a distance of 3km from the Plant at a cost to be negotiated between the
Parties. lt must be noted that lhe Generator will connect to the existing transformers available
at the site of the customers.
Unless otherwise described in the specifications, the Generator's scope of work, in general, shall
include, but not limited to, designr supply,.installation of equipment and materials, civil work, test and
lnspections, lnsurance, transportation to site, including preparation of necessary documents for
custom clearance, and guarantee of lhe equipment and materials.
The scope of work covered by the present tendering shall consist of the design, procurement,
installation and commissioning of the following:
The Equipment for Wallington Primary Substation (hereafter referred to as "P/S")
33kV Switchgear Cubicle
33kV Switchgear Connection Cables
33KV Power Cables
Other installation materials necessary for the above
33kV incoming switchgear(s) connecting to Freelown primary substations, Station services
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Facilities including DC supply facilities of Wellington primary station
The Equipment for Black Hall Road Primary Substation (hereafter referred to as "P/S")
33kV Switchgear Cubicles
33kV Switchgear Connection Cables
33KV Power Cables
Other installation materials necessary for thq above
33kV incoming switchgear(s) connecting to Freetolvn primary substations, Station seryices
Facilities including DC supply facilities of Wellington primary station.
Upgrading of 33/1 1KV feeder to evacuate 15/20MVA
The Equipment for Kissy Collector P/S
33kV Switchgear Cubicles
11kV Switchgear Cubicles
33/1 1kV Step-down Transformer
33kV Earthing Transformer
Station Transformer
33kV Switchgear Connection Cables
33KV Power Cabtes
1 'l kV Switchgear Connection Cables
11KV Power Cables
The Equipment for 33kV Distribution Line
From Kissy Collector P/S to Wellington P/S
From Kissy Collector P/S to Black Hall Road P/S
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Olher necessary auxiliary equipment and materials including DC supply facilities.
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The Equipment for 11kV Distribution Line
From Kissy Collector to the industrial customers
lf Phase ll is located on the same site, lhen the works will include the following
Existing Blackhall Road Primary Substation: Expansion of 33kV switchgear in existing
33/1 1 kV primary substation;
Existing Wellington Primary Substation: Expansion of 33kV switchgear in existing 33/11kV
primary substationi
33kV Distribution Line: Upgrade of the 33iV line from Wellington to.Blackhall Road. lf tne tine
lacks the ability to evacuate the required power then the same will be upgraded to ensure this
evacuation. lt must be noted that the upgrade means the running of new lines on the existing
structure that have the ability to cover the shortfall of the existing line.
Unless otherwise described in the specifications, the Generator's scope of work, in general, shall
include, but not limited to, design, supply, installation of equipment and materials, civil work, test and
inspections, insurance, transpoltation to site, including preparation of necessary documents for
custom clearance, and guaranlee of the equipment and materials.
'The scope of work covered by the present tendering shall consist of the design, procurement,
installation and commissioning of tne following:
The Equipment for Wellington Primary Substation (hereafter referred to as "P/S")
33kV Switchgear Cubicle
33kV Switchgear Conneclion Cables
33KV Power Cables
Other installation materials necessary for the above
33kV incoming switchgear(s) connecting to Freetown primary substations, Station services
Facilities including DC supply facilities of Wellington primary station
The Equipment for Black Hall Road Primary Substation (hereafter referred to as "P/S")
33kV Switchgear Cubicles
33kV Switchgear Connection Cables
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33KV Power Cables
Other installation materiats necessary for the above
33kV incoming switchgea(s) connecling to Freetown primary substations, Station services
Facilities including DC supply facilities of Wellington primary station.
Upgrading of 33/11KV feeder to evacuate 15/20MVA
The Equipment for 33kV Distribution Line
From Kissy Collector P/S to Wellington P/S
From Kissy Collector P/S to Black Hall Road P/S
It must be noted that if Phase ll is located on a separate site then the works related to the
transmission will be done as a variation With GoSL compensating the Generator for the works.
For Phase lll all the works relatei to distribution will be considered a variation and the generator
must be compensated for the same.
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