Responsibility For The Development of Power Transmission Special Facility in IPP Scheme

Electricity4

By the definition, Special Facility is a facility that will be designed, financed, constructed, tested, and commissioned by the Independent Power Producer/IPP (hereinafter referred to as the Seller) which will be taken over by PLN (hereinafter referred to as the Buyer). In terms of power purchase agreement, Special Facility shall include the following units: (a) the transmission line; (ii) the nearest substation expansion; and (iii) the construction interface.

In the event such special facility has been taken over by PLN, the Special Facility is automatically belong to PLN as well as the responsibility for conducting operation and maintenance. In practice, 150 kV transmission lines will be constructed at the plant location and ended at the sub-station location by the Seller, whereas the Seller along with the local electricity company shall coordinate with PLN’s Regional Office for the purpose of satisfying the requirements.

Scope of Responsibility of Nearest Sub-station Expansion and Transmission Line

In regards to the transmission line of nearest sub-station expansion, the installation equipment for connecting to the sub-station most often committed by the Seller, whereas PLN is merely responsible for determining various requirements (e.g: Busbar is required for the installation of equipment for connecting to the sub-station). In addition, Seller shall be responsible for the construction of a 150 kV transmission line from the sub-station location to the PLN’s plant location including the construction of transmission line for the purpose of sub-station’s expansion.

PLN’s Role in Reviewing Special Facility Design

In order to facilitate the design, engineer, construct and testing of the Special Facility, PLN and Seller will coordinate and exchange design requirements, operation procedure including data of PLN’s grid system with respect to such facility. Seller shall be responsible for the design and operation of Special Facility based on grid system data supplied by PLN.

Therefore, Seller shall provide drawings, plans and other similar design along with engineering documents and specifications for the purpose of PLN preliminary review and approval in each case prior to commencement of construction activities for such facilities. In the event PLN has received any drawings, plans, testing procedures or similar documents, PLN shall review such documents within four weeks and either granting approval or revert back to Seller by giving suggestion and comments. Such suggestions and comments must be consistent with the basic design and design criteria set forth under power purchase agreement and addressed and resolved by the Parties. The Failure of PLN to respond such documents within four week period shall be construed as PLN’s approval to such documents submitted by Seller.

Responsibility for Special Facility Testing

In terms of testing for start-ups, Seller is responsible for preparing and delivering test procedures to PLN and meanwhile, PLN has the right to present during the carrying out of start-up testing of equipment and systems of the plant. In addition, for the Special Facility being referred herein, the Seller is responsible for supplying, installing and testing. The Seller shall only conduct testing for the Special Facility by using the electricity supplied by PLN’s grid systems.

Conclusion

Seller shall design, construct and install the Special Facility. Seller is responsible to take care of, control, and bear the risk of loss of Special Facilities during the utilization of Special Facility until the Special Facility is accepted by PLN.