siddiqsons elergy limited - nepra › licensing › licences › licence...stationary/ref no: po ....

Yours Sincerely ,43 -<\ /st

For and on behalf of Siddiqsons Energy Limited

Khawaja Bilal Hussain Company Director

• siddiqsons ELERGY LIMITED 0 27' Floor, Ocean Tower, G-3. Block-9, Scheme#5, Main Clifton Road,

Karachi, Pakistan 0 Phone: + 92 21 35166571-5

REF NO: SDSEL/DIR/000123

Dated: October , 2016

4 O c\-1

Subject: License Proposed Modification in the Generation License A behalf of Siddiceons Enercy Limited (tha "Company")

Dear Sir,

I, Khawaja Bilal Hussain, Company Director of the Company is the duly authorized representative on behalf of the Company by virtue of a Board Resolution, appended herewith, hereby apply to the National Electric Power Regulatory Authority ("NEPRA or Authority") for the modification of our Generation License for the Company bearing # IGSPL/65/2015 dated September 14, 2015 (the "Generation License") in respect of the Company's imported coal based thermal generation facility located at Port Qasim, Karachi in the Province of Sindh with installed Gross Capacity of 350 MW (the "Project") pursuant to Regulation 10(2) of the National Electric Power Regulatory Authority (Application and Modification Procedure) Regulations, 1999 (the "AMPR").

I certify that the documents-in-support attached with this application are prepared and submitted in conformity with the provisions of the NEPRA (Application and Modification Procedure) Regulations, 1999. I further undertake and confirm that the information provided in the attached documents-in-support is true and correct to the best of my knowledge and belief.

A bank drafts in the sum of Pakistan Rs. 728,560/- being the non-refundable license application and modification of generation license fee calculated in accordance with Schedule II to the Regulations for the modification of the license, is also attached herewith.

The Registrar National Electric Power Regulatory Authority ("NEPRA") NEPRA Tower, Attaturk Avenue (East) Sector G-5/1, Islamabad

libation - on

BEFORE

THE NATIONAL ELECTRIC POWER

REGULATORY AUTHORITY

PETITION FOR LICENSEE PROPOSED MODIFICATION OF LICENSE

No. IGSPL/65/2015

ON BEHALF OF SIDDIQSONS ENERGY LIMITED

Dated:

October, 2016

Legal Consultants RIAA BARKER GILLETTE

Advocates & Corporate Counselors 68, Nazimuddin Road, F-8/4, Islamabad

Tel: 051-111-LAWYER, Fax: 051-2850444 www.riaabg.com

VAKALATNAMA

I, Mr. Khawaja Bilal Hussain, Company Director of Siddiqsons Energy Limited (the "Company"),

hereby appoint and constitute MR. NADIR ALTAF, MR. MUST.A.FA MUNIR AHMED, MS.

SAJRA KI-LA_LID and MR. SAND SIDDIQUE BAJWA of RI AA BARKER GILLETTE, to

appear and act for us as our advocates in connection with the License Proposed Modification

Application (the "LPM Application"). I also authorize the said Advocates or any one of them to

do all acts and things legally necessary to manage and conduct the said Project in all respects,

whether herein specified or not, as may be proper and expedient.

Accepted

RIA_A. BARKER GILLF I k

68 KAZIMUDDIN ROAD, F-8/4, ISLAMABAD Tel: 051-111-LAWYER

SIGNATURE: Received by us:

From:

Application Pursuant to

Regulation 10(2) of the NEPRA Regulation

(Application and Modification Procedure)

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THOUSAND EIVE HUNDRED

MAO No. AAA 13326310

Stationary/Ref No: PO . AAA 3 32631

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F-A-kk728, 560.00 PER /

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ELT SE VENIIHNNIDR-FTET-A171-5-TE—TwEN

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ALLIED BANKER'S CHEQUE

Payable at issuing branch

( NA

Please do not write below this line.

I C.% IBS NO.02

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fig i 3 3 26 3 /000 / 406661:000 7.

75 /000 100001130

Extract of Board of Resolution

Karachi, Pakistan 0 Phone: + 92 21 35166571-5

40 Q 27'h Floor, Ocean Tower. G-3, Block-9. Scheme#5, Main Clifton Road,

siddicisons E\ ERGY LIMITED

EXTRACTS OF RESOLUTION BY CIRCULATION PASSED BY THE BOARD OF DIRECTORS OF SIDDIQSONS

ENERGY LIMITED

"RESOLVED that in view of Government advice to change Primarily Fuel from "Imported Coal" to "Local

Co',n! new Tariff Approval Application is hereby filed in place of already Approved Tariff of Siddiqsons Energy

Limited (SEL) vide NEPRA letter No. NEPRA/TRF-313/SEL-2015/1.0440-10442 July 13, 2015 for 350 MW

Imported Coal based Power Plant.

"RESOLVED that an Application for Acceptance of Upfront-Tariff issued vide NEPRA's "Decision of the

Authority regarding Reconsideration Request filed by the Government of Pakistan in the matter of Upfront

Tariff for Coal Power Projects' bearing No. NEPRA/TRF-UTC/2013/7195-7197 dated 26 June, 2014, as

modified/ supplemented/ clarified through NEPRA's " Decision of the Authority in the matter of Review

Petition filed by the Fazal-e-Akbar & Company on behalf of Asad Umer (Member National Assembly) under

NEPRA (Review Procedure) Regulations 2009 with respect to the Upfront Tariff of Coal dated 26.06.2014"

bearing No. NEPRA/TRF-UTC/2013/15271-15273 dated 21 November, 2014 (collectively the "Upfront Tariff )

be filed by and on behalf of the Company with the National Electric Power Regulatory Authority ("NEPRA")

and to procure the grant by NEPRA of the Upfront Tariff for the Company's proposed 350 MW gross ISO local

coal-fired power plant at Plot No. 12, Eastern Industrial Zone, at Port Qasim, Karachi, in the Province of Sindh,

Pakistan (the 'Project") on Local Financing.

RESOLVED FURTHER that each of Mr. Abdur Rahim, CEO, Mr. Khawaja Bile! Hussain, Company Director, Mr.

Muhammad Ahmed, Company Secretary are hereby authorized acting singly to prepare and file the necessary

documentation, pay the necessary filing fees, pay the necessary license fee, appear before NEPRA as needed,

provide any information required by NEPRA in respect of the Project, and do all acts and things necessary for

the processing, completion and finalization of the aforementioned Application for Modification in Generation

License and acceptance of Upfront Tariff.

RESOLVED FURTHER that (i) Chief Executive and the Company Secretary may sign and certify copies of this

Resolution to be true copies of the original; and (ii) receive/collect the original generation license and related

documents, from "NEPRA".

Certified to be a true copy of the original

CERTIFIED TRUE COPY

Company Secrebinpa cretary

Siddiqsons Energy Limited

Date: October, 2016

Affidavit of Director /

Authorized Representative

,7CE:=Lir.•?

To 6 v E N

Ho. rr - ;

r's n /o tE _•„, •

N71,74/-q

PPFOF-ZE

Signature:

Name: Khawaia E lal Hussain

Date: • October. 20-16

DEPONENT 7-

THE NATIONAL ELECTRIC POWER REGULATORY AUTHOaiTY

AFFIDAVIT

I, Khawaja Bilal Hussain, slo Khawaja Ghuiam Hussain having CNIC number 36302-3375459-1 the Company Director of Siddigsons Energy Limited liereb■r solemni,.; affirm

and declare on oath that the contents of the License Proposed N odifickr:tion (The "LPM Application") including all attached documents-in-support are ',rue and correct to the best of my knowledge and belief and that nothing has been conce:?led.

N ntarilti le% Eff*ct

o f PitiStan tin-*er

/inte'n!i:•'-t'c,01.. a te

A T

T

(7. nature of the Oath Com seIc-ner

Extension/Amendment to LOS dated 6th October, 2016

from PPIB

PRIVATE POWER & INFRASTRUCTURE BOARD MINISTRY OF WATER & POWER

GOVERNMENT OF PAKISTAN

No. 1(103) PPIB-6016/16/PRJ/0- Lrq-56 .

Mr. Abdul Rahim Rafi ,

Chief Executive Officer,


Karachi

0 6 October 2016

Subject: AMENDMENT TO LETTER OF SUPPORT DATED 31st AUGUST

2015 ISSUED TO M/S. SIDDIOSONS ENERGY LIMITED FOR 350

MW COAL BASED POWER PROJECT AT PORT QASIM, KARACHI.

Dear Sir, WHEREAS, the Project Company was issued a Letter of Support dated

31st August 2015 (the "LOS");

2. WHEREAS, the Project Company requested for an extension in the

Financial Closing Date as defined in the LOS;

3. WHEREAS, the Project Company has delivered an irrevocable,

unconditional, on demand Performance Bank Guarantee, on terms acceptable to PPIB,

No. 0525BGA002209 dated 4"' August 2015, amended vide amendment # 2 dated 31'1

May 2016, issued by United Bank Limited, Centralized Trade Processing Unit UBI. lji

floor Printing & Stationery Building Mai Kolachi Road, Karachi, in the amount of

US$1,750,000/- (United States Dollars One Million Seven Hundred Fifty Thousand

Only) valid up to 30th November 2017 in favor of PPIB (hereinafter collectively referred to

as the "Performance Guarantee").

4. WHEREAS, the Project Company, on advise of the GOP/PPIB to convert

the project from imported coal to local coal, has agreed unconditionally to convert the

Project from Imported Coal to Thar Coal and has further agreed unconditionally to

arrange Thar Coal and its transportation to the Project site in order to operate Complex

in accordance with the terms of PPA and also diligently pursue, negotiate, finalize and

execute coal supply agreement(s) with competent coal suppliers;

5. WHEREAS, the Project Company has also agreed unconditionally to

obtain the amendment/modification/supersession in an appropriate manner, in the

Tariff Determination and Generation Licence, as the case may be, in relation to change

of fuel from Imported Coal to I Coal;

CERTIFIED TRUE COPY

Company etary

CERTIFIED

6. NOW THEREFORE, the LOS is amended as follows:

i. The Project Company shall achieve the Financial Closing no later than

the 31" August 2017 (the "Extended Financial Closing Date") under

and in accordance with the terms of LOS.

ii. Any reference to the Imported Coal in the LOS shall stand substituted

with Thar Coal from the effectiveness of this amendment to the LOS.

iii. For the purposes of the LOS, any amendment/modification/

supersession, as the case may be, to the Tariff Determination and

Generation Licence, as the case may be, shall be deemed to be part of

the Tariff Determination and/or the Generation Licence, as defined in

the LOS.

iv. Reference to National Transmission & Despatch Company Limited, the

Power Purchaser, as defined in the LOS shall be substituted with

Central Power Purchasing Agency (Guarantee) Limited.

v. In case the Project Company delays, defaults or fails to achieve the

Financial Closing by the Extended Financial Closing Date under and in

accordance with the terms of LOS, PPM in addition to any other actions

set out in the LOS and Project Agreements shall be entitled to encash

the Performance Guarantee in full amount without any notice to or

demand on the Project Company in accordance with the terms of LOS

and the Performance Guarantee.

vi. No waiver by the PPIB ,)f any default by the Project Company in the

performance of any of the provisions of the LOS shall operate or be

construed as a waiver of any other or further default whether of a like

or different character.

vii. The failure by the PPIB to insist on any occasion upon the performance

of the terms, conditions, and provisions of the LOS, or time or other

indulgence granted by the PPIB to the Project Company, shall not

thereby act as a waiver of the breach, as acceptance of any variation, or

as the relinquishment of any such right under the Policy, the

Performance Guarantee or the LOS.

viii. The grant of Extended Financial Closing Date herein shall not prejudice

the rights of PPIB as contained in the Performance Guarantee.

ix. This Amendment shall be treated as an integral part of the LOS to

COPY which it should be attached. The provisions of this Amendmen • 11

"n11 [lows• no —• 4. • n • -- v-•__

supersede the provisions of the LOS only to the extent of any

inconsistency in relation to matters contained therein.

x. This Amendment to the LOS shall be effective from 31't August 2016,

subject to (a) issuance of a consent letter from CPPA (G) L for execution

of a long term PPA, (b) confirmation from the NTDC to evacuate power

from the project site and (c) required amendment/ modification in the

Tariff Determination and Generation Licence, as the case may be, in

relation to change of fuel from Imported Coal to Local (Thar) Coal.

xi. All other terms and conditions of the LOS shall remain unchanged.

Capitalized terms not otherwise defined herein shall bear the meanings as attributed

thereto in the LOS and Performance Guarantee, as the case may be.

With Regards,

Yours Sincerely,

(Shah rahan Mirza) Managing Director

Private Power and Infrastructure Board Ministry of water and Power

Government of Pakistan

For and on behalf of the President of the Islamic Republic of

Pakistan

Receive greed •.- • Accepted by

Company tary

CERTIFIED TRUE COPY

Mr. Abdu ahim Rafi , Chief Executive Officer, On behalf of the M/s Siddiqsons Energy Limited Dated: Cc: 1. Chairman, Private Power & Infrastructure Board, Islamabad

2. Secretary, Ministry of Water & Power, Islamabad

3. Chairman, NEPRA, Islamabad

4. Managing Director, NTDC, Lahore

5. Chief Executive Officer, CPPAGL, Islamabad

6. General Manager (WPPO), CPPAGL, Lahore

net =Inn.. Drnin•ntinti Tnitont Dint If n Meinm Aram e_an Tcintn,i,w4

Petition for Licensee Proposed

Modification of License

PETITION FOR LICENSEE PROPOSED MODIFICATION OF LICENSE No. IGSPL/65/2015

ON BEHALF OF Siddiqsons Energy Limited

1 Background:

1.1

The Company was incorporated on 15th May, 2014, and a generation license was

granted under Section 15 of the Regulation of Generation, Transmission and

Distribution of Electric Power Act 1997 (XL of 1997), for its Imported Coal Based

Thermal Generation Facility Located at Bin Qasim Town, Karachi in the Province

of Sindh with installed Gross Capacity of 350 MW (the "Project").

1.2 In view of the Government preference to use indigenous resources for power

generation, the Company has been advised by the Government of Pakistan through

Private Power Infrastructure Board (the "PPIB") to change Thar Coal as primary

fuel for the Project. After the technical review and considering Government's desire,

the sponsors of the Project have agreed to use Thar Coal as primary fuel for the

Project.

2. License Proposed Modification:

2.1 The Company in pursuance of inter alia, Regulation 10(2) of the (Application and

Modification Procedure) Regulations, 1999 (the "AMPR") and other applicable

provisions of the Regulation of Generation Transmission and Distribution of Electric

Power Act, 1997 (the "Act"), Rules, Regulations and applicable documents submits

this Licensee Proposed Modification Application (the "LPM") in respect of its

Generation License # No. IGSPL/65/2015.

2.2 Siddiqsons Energy Limited (the "Company") requests for modification in the

Generation License # No. IGSPL/65/2015.

2.3 The Company, pursuant to AMPR, hereby seeks to apply for modification of the

Generation License granted for the Project to cater for the change in the primary

fuel as advised by the GoP. The change in primary fuel requires following changes

in the Details of Generation Facility/ Power Plant attached with the Generation

License;

i. COD of the Generation Facility: In view of the Change in primary fuel and

extension in financial close approved by the PPIB, the revised anticipated COD

of the Generation Facility/Power Plant is June, 2020; and

ii. Change in Fuel/ Raw Material Details - Appropriate changes are required in

fuel source, fuel supplier and supply arrangement.

2.4 Consequently to effect this change a modification in the existing generation license

of the Company is required.

3. Pursuant to the proposed change, the following parameters of the license are

required to be updated and incorporated.

3.1 General Information

(I).

Name of Company/ Licensee


(ii). Registered and Business Office

7th Floor, Siddiqsons Tower, 3 J.C.H. Society, Block 7 & 8, Shahrah-e-Faisal, Karachi, Province of Sindh, Pakistan

27thFloor, Ocean Tower, Plot G-3, Block-9, Clifton, Karachi, Province of Sindh, Pakistan

(iii).

Location of the Generation Facility/

Power Plant

Plot No. 12, Eastern Industrial Zone at Port Qasim, Karachi, in the Province of Sindh.

(iv). Type of Generation Facility/Power Plant

Thermal Generation Facility

3.2 Configuration of Generation Facility

(0.

Installed Capacity/Size of the Generation Facility/

Power Plant

1 x 350.00 MW

(ii). Type of Technology Conventional Thermal Power Generation Facility with Super Critical Boiler and Steam Turbine

(iii). Number of

Units/Size (MW) 1 x 350 MW

(iv).

Unit Make/Model/Type & Year of Manufacture Etc.

Steam Turbine

Super-critical, condensing Steam Turbine/ Dongfang Turbine Corp.

Ltd. / Shanghai Electric Group Co.,Ltd./ Harbin Turbine Co., Ltd./

Alstom / Siemens / Hitachi / Toshiba or Equivalent

Boiler

Supercritical thermal power unit, once-through, single pass, single reheat, balanced draft Page 21 of

24 of Schedule -I Generation Licence Siddiqsons Energy Limited

Plot No. 12, Eastern Industrial Zone at Port Qasim, Karachi in the Province of Sindh radiant furnace,

dry bottom / Dongfang Boiler Group Co., Ltd./ Harbin Boiler Co., Ltd./ Shanghai Electric Group Co.,

Ltd./ B&W(Beijing) Co., Ltd./ Alstom/ Ansaldo/ Foster Wheeler

or Equivalent

(v). COD of the Generation Facility/Power Plant

June 2020 (Anticipated)

Expected Useful Life of the Generation Facility/

30 years Power Plant from COD

3.3 Fuel/Raw Material Details

(i). Primary Fuel Thar Coal

(ii). Start-Up Fuel LDO

(iii) Back-Up Fuel Imported Coal

(iv). Fuel Source for each of the above (i.e. Thar Coal)

Primary Fuel Start-Up Fuel

Thar Coal Indigenous/Imported

(v). Fuel Supplier for each of the above


Mining Companies operating in Thar coal reserves

Shell Pakistan/Pakistan State Oil/Any other OMC

Company

(vi). Supply Arrangement for each of the above Fuels


Through Rail/Road

Through Oil Tankers

(vii). No of Storage Bunkers/Tanks/

Open Yard


One open yard One oil tank

(viii). Primary Fuel Start-Up Fuel

' Storage Capacity of each Bunkers/Tanks/

Open Yard

About 300,000 Tons

1 x 500 m3

(ix). Gross Storage


About 300,000 Tons

1 x 500 m3

3.4 Emission Values

7-


(i). SOx (mg/Nm3) <450 As per NEQS

(ii). NOx (mg/Nm3) <200 As per NEQS -

(iii). CO2 (%) <50 As per NEQS

3.5 Cooling System

Cooling Water Source/Cycle

The cooling water is from adjacent sea channel of Port Qasim south of the site. Induced Draft cooling tower with circulation system will be adopted for cooling water system.

3.6 Plant Characteristics

(i). Generation Voltage

20-22kV

(ii). Frequency 50Hz

(iii). Power Factor 0.8 (lagging) / 0.95(leading)

Automatic Generation

(iv). Control (AGC) (MW control is the general practice)

(v). Ramping Rate (MW/min)

Time required to (v). Synchronize to

Grid (Hrs.)

AGC Unit is included in the NCS, and AGC Unit can accept command signal from Despatch. The command signal is converted to analog, and then the analog transmitted to the DCS via hardware to achieve the AGC function.

from 30% to

from 50% to 100% 50% MCR

MCR

13.2 MW/ 19.8 MW/Min Min

for Cold for Warm Start

for Hot Start Start

2 hours

0.75 hours 4.25 hours

under 30% MCR

33 MW/min

Rationale for Proposed Modifications:

The proposed modification is required to be incorporated to change the primary fuel.

5. A Statement of the impact on the tariff, quality of service and the performance by the license of its obligations under the license

5.1 Impact on Tariff

The Company has opted for Upfront Coal Tariff for 350 MW Coal Power Plant issued by NEPRA. Since the upfront tariff is a fixed tariff, the proposed modification to the Company's Generation License will have no impact on the tariff.

5.2 Impact on Quality of Service

The Company hereby certifies that the upfront tariff is fully acceptable to the Company of its obligations under the Generation License or tariff will not be affected by the proposed modification to its Generation License.

5.3 Impact on the obligations of the Company under the License

The proposed modification would facilitate the Company in fulfilling its obligations under the License.

PRAYER

License Proposed Modifications Petition

It is most humbly prayed to the esteemed Authority as follows:

A. That the Authority shall approve the modifications proposed in its generation license for the development of the Project.

B. That the Authority may be pleased to treat the Company's request for the grant of this LPM on a non-discriminatory basis.

C. Any further and better relief that the Authority may deem appropriate in the circumstances may kindly be granted to the Company.

We hope the information/explanation provided above meets the Authority's requirements and remain available to assist the Authority in further queries/clarifications.

Sincerely, Siddiqsons Energy Limited October , 2016

Cf/ Q^"/

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7.7Th:B.E.D AN; r Fay to

* **728,560.00 PKR

ABC No. AAA 13326310

Stationary/Ref No: PO. AA.A1 3 32631

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ALLIED BANKER'S CHEQUE

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