ANNEX B: PARAMETERS FOR BIDDERS PRICE PROPOSAL

(ENVELOPE II)
Capitalized terms used herein shall have the meaning ascribed to them in the PPA.

Computation of Levelized Tariff Price

Contract Capacity
Bidder must provide the Contract Capacity of the Plant in kW (identical for all Contract
Years) in its Price Proposal (Annex E of the RFP) as stated in Annex D Part V1 of
Envelope I. In case of any discrepancy, the value stated in Annex D Part VI shall
prevail.
Component A: Capital Cost Recovery Charge Rate (CCR)
Bidder must provide CCR, to four (4) decimal places, for each Contract Year in its Price
Proposal in USD/kW/year. The values of CCR stated in the Price Proposal shall be
inserted in Appendix G of the PPA after converting to IDR/kW/year at the exchange rate
of Rd should the Bidder execute the Project Agreements.
CCR for Contract Years one (1) to six (6) must be identical; CCR for Contract Years
seven (7) to twelve (12) must be identical, and not less than sixty percent (60%) of the
CCR for Contract Years 1 to 6; and CCR for Contract Years thirteen (13) to twenty-five
(25) must be identical, and not less than sixty percent (60%) of the CCR for Contract
Years 7 to 12.
CCR is intended to cover the cost of debt and equity and all taxes and duties under the
prevailing laws on the Bid Submission Date.
Component B: Fixed O&M Charge Rate (FOMR)
Bidder must provide a single value for FOMR, to four (4) decimal places, applicable for
all Contract Years in its Price Proposal in USD/kW/year. The value of FOMR stated in
the Price Proposal shall be inserted in Appendix G of the PPA after converting to
IDR/kW/year at the exchange rate of Rd should the Bidder execute the Project
Agreements.
For the purposes of bid evaluation, the FOMR applicable for each Contract Year shall be
the FOMR provided in the Bidders Price Proposal, escalated by 2.5% per annum from
the Bid Submission Date.
Component C: Energy Charge Rate (ECR)
ECR for computation of the Levelized Tariff Price shall be based on (a) coal price of
USD 60/tonne (b) an assumed coal calorific value of 4,500 kcal/kg and (c ) Specific Heat
Annex B, page 1

Rate at Contract Capacity (SHRcc) as provided by Bidder in Annex D, Part VI of

Envelope 1 of the RFP (by a simple average based on nine (9) different loads (100% ,
95%, 90%, 85%, 80%, 75%, 70%, 65% and 60%).
The values of the specific heat rates provided in Annex D, Part VI shall be inserted in
Appendix G of the PPA should the Bidder execute the Project Agreements.
Component D: Variable O&M Charge Rate (VOMR)
Bidder must provide a single value for VOMR, to four (4) decimal places, applicable for
all Contract Years in its Price Proposal in US cents/kWh. The value of VOMR stated in
the Price Proposal shall be inserted in Appendix G of the PPA after converting to
IDR/kWh at the exchange rate of Rd should the Bidder execute the Project Agreements.
For the purposes of bid evaluation, the VOMR applicable for each Contract Year shall be
the VOMR provided in the Bidders Price Proposal, escalated by 2.5% per annum from
the Bid Submission Date.
Component E: Capital Cost Recovery Charge Rate for the Transmission Line
(CCRT)
Bidder must provide CCRT, to four (4) decimal places, for each Contract Year in its
Price Proposal in USD/kW/year. The values of CCRT stated in its Price Proposal shall
be inserted in Appendix G of the PPA after converting to IDR/kW/year at the exchange
rate of Rd should the Bidder execute the Project Agreements.
CCRT for Contract Years one (1) to six (6) must be identical; CCRT for Contract Years
seven (7) to twelve (12) must be identical, and not less than sixty percent (60%) of the
CCRT for Contract Years 1 to 6; and CCRT for Contract Years thirteen (13) to twentyfive (25) must be identical, and not less than sixty percent (60%) of the CCRT for
Contract Years 7 to 12.
Availability Factor
For the purposes of computing the Levelized Tariff Price, an annual Availability Factor
of 80% shall be assumed.

Computation of Levelized Tariff Price

The values for CCR, FOMR and CCRT will be converted to US cents/kWh for each
Contract Year as provided above, based on the Contract Capacity provided by Bidder and
an Annual Availability Factor of 80%.
The sum of the CCR, FOMR and CCRT will be added to the VOMR and ECR as
described above, resulting in a tariff in US cents/kWh for each Contract Year.

The tariffs for each Contract Year will be discounted back to the Project Commercial
Operation Date using a discount rate of 10%, resulting in the computation of
the Levelized Tariff Price.
Attachment A below provides an example of the methodology for calculating
the
Levelized Tariff Price using hypothetical numbers.

Price
Cap
PLN reserves the right to reject a Bidders Envelope II if the resulting Levelized
Tariff
Price is higher than [] UScents /
1
kWh .