Tanjung Bin Power Sdn Bhd and Maybank Supplemental to the Power Purchase Agreement

Transcription

17. APPENDIX A
21. APPENDIX B
22. APPENDIX C Tanjung Bin Power Sdn Bhd Proposed Amendments to the PPA 20 May 2016 1
23. Abbreviations • ACP – Available capacity payment • CCR – Capacity Charge Rate • CRF – Capacity Rate Financial • DI – Dispatch instruction • FAP – Fixed Availability Payment • FDI – Failure to comply with dispatch instruction • FOR – Fixed Operating Rate • NACP – Negative available capacity payment • PPA – Power purchase agreement • RT – Revalidation Test • UOR – Unplanned Outage Rate • UOL – Unplanned Outage Limit • TBP – Tanjung Bin Power Sdn Bhd • TNB – Tenaga Nasional Berhad 2
24. Introduction • TBP is proposing to enter into a supplemental PPA with TNB to introduce improvements to the commercial terms in the PPA • The following 3 items will be addressed in the supplemental PPA, the remainder are consequential changes  Said Dispute  FDI Clause  ACP Clause 3
25. Changes Explained • (A) Withdrawal of Said Dispute  Following the tube leakage incidents from Oct 2010 to May 2014, TBP has suffered ACP reductions and penalties  Under existing formula, when forced outage exceeds UOL, the penalty is so large that the whole ACP amount becomes negative  TNB has been setting off these negative ACP against TBP’s billing invoice, leading to TBP receiving less revenue than it invoiced  Such receivables shortfall is periodically written off in TBP’s accounts in accordance with its accounting policy (receivable beyond 120 days is 100% impaired)  Separately, TBP has been attempting to recover these receivable shortfalls via arbitration (“Said Dispute”)  Although there are grounds for dispute, the arbitration results may not be forthcoming based on MCB’s experience with another subsidiary’s arbitration for NACP  Given that the amounts have been fully provided for in past years, the withdrawal of Said Dispute does not have an adverse financial impact on TBP  Discontinuing arbitration will save cost and time 4
26. Changes Explained • (B) the FDI clause  In 2007, there was an FDI incident due to insufficient supply of coal, resulting from hiccups at coal-handling unit  Under the existing clause, on each incident of FDI, TNB clawbacks the ACP already earned for ½ the period between the completion of RT and the last time the failed Unit met a similar DI (see diagram in next slide for illustration)  On that particular incident, the clawback resulted in penalty of RM1.3m  Since then there has been no FDI incidences  The proposed amendment is to have a flat penalty of RM250,000 per incident for the first 2 incidences. On the third incident within 14 days, the clawback formula applies.  This translate to lower penalty for the first 2 incidences. The clawback provision is only applied on repeated offences. This is positive for TBP as it allows for more margin of error at relatively low cost 5
27. Illustration of clawback calculation Load (MW) Illustration of penalty calculation Last complied DI FDI, FDI load = 0 MW Revalidation Test DI load @ Max load DI to Start-up Time N Period in days Scenario: The above illustration describes an FDI event where the machine is loading up to Max Load based on DI. The machine tripped and failed to meet the DI Clawback Calculation = ½ x CCR x [DI load – FDI load] x N x 1000 CCR = (FOR + CRF) x 12/number of days in the Contract Year 6
28. Changes Explained • (C) the ACP clause  • • The proposed amendment relates to the definition of daily ACP under the ACP clause wherein the daily ACP will be zero if ACP is negative. This limits the downside losses of TBP to only the daily ACP. No more NACP. If UOR > UOL2*, under existing ACP clause, the cashflow impact per unit per day will be:- No Loss in Revenue Amount (RM’mil) 1. FAP# 2. Penalty (1.15) ACP (1.15) Nil Under the proposed amendments to the ACP clause, the above example will be zerorised. Therefore the proposed amendment is an improvement from the point of view of TBP’s cashflow. * UOL of 8% # Derives from CRF and FOR 7
29. Conclusion The supplemental PPA is positive to TBP from the cashflow point of view by :• replacing the existing clause with a less severe penalty in the case of FDI; and • eliminating the penalty risk (negative payment) to TBP in the case of NACP. 8