ACTIONS/JUSTIFICATIONS ON THE DOE/NEA COMMENTS ON QUEZELCO 1’s TOR FOR THE PROCUREMENT OF ADDITIONAL POWER REQUIREMENTS

FOR A CONTRACT PERIOD OF FIVE YEARS AND SIX MONTHS STARTING 26 JUNE 2022 TO 25 DECEMBER 2027
NEA’s DOE
TOR of QUEZELCO 1 QUEZELCO I Actions/Justifications
Comments/Recommendations Comments/Recommendations
To revise because the date already
GENERAL INFORMATION lapsed and to read as follows:
5. Target date of publication
February 4 & 11, 2022 Immediate upon receipt of the COP
(from DOE) and NTP (from NEA)

GENERAL SUPPLY DESCRIPTION Complied For Item No. 1.3, QUEZELCO I Earlier on 2021 when Quezelco I
Note: Proposed technology must be to revisit the proposed supply was formulating its PSPP, the plan
consistent with the supply type in the TOR (Baseload) vs was to conduct CSP for an
requirements. supply type in the posted 2021 intermediate power supply of
1.1 Purpose of Procurement: As PSPP (Intermediate) and 5MW for 2022 with 1MW yearly
scheduled in the PSPP provide increment until 2027. On 2022
1.2 Supply Type: Firm justifications/clarifications on Quezelco ! PSPP submission, the
1.3 Supply Side: Baseload the data inconsistency. same planned CSP is baseload as
Q1 has an existing 27MW
contracted capacity with GNPower
until 2027 which is considered
intermediate due to CUF at 65-
100%. Also, baseload rate is lower
than the intermediate.
TERMS OF SUPPLY SERVICES Complied For Item No. 2.2, QUEZELCO I For Item No. 2.2-Quezelco I
Note: Terms of supply must be in to revisit the proposed changed the proposed delivery
accordance with the load profiles delivery period in the TOR (26- period because of the ff reasons:1)
described in the PSPP. June 2022 – 25 December Quezelco ! TPBAC has to be
2.1 Contract Capacity and Contract 2027) vs. delivery in the PSPP familiarized and conduct further
Energy: (26 March 2022 – 25 clarifications from NEA, DOE and
Period Contract Contract December 2027) and provide even from other ECs thru virtual
Capacity Energy justifications in the adjustment meetings regarding the recently
Baseload (MWHr) of dates. issued DOE DC NO. 2021-009-0030
(MW) For Item No. 2.5 and 2.6, dated Oct. 2021; 2) the preparation
26 Jun 5 43,200 QUEZELCO I to remove of TOR took a bit longer time to
2022 - 25 “Facility Address: Luzon ensure compliance to the latest
Dec 2027 Coverage” and “Plant Location issuance regarding CSP for power

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ACTIONS/JUSTIFICATIONS ON THE DOE/NEA COMMENTS ON QUEZELCO 1’s TOR FOR THE PROCUREMENT OF ADDITIONAL POWER REQUIREMENTS
FOR A CONTRACT PERIOD OF FIVE YEARS AND SIX MONTHS STARTING 26 JUNE 2022 TO 25 DECEMBER 2027
26 Dec 6 51,840 – The generating capacities supply hence it was submitted for
2022 – 25 shall come from anywhere in review by NEA on January 2022; 3)
Dec 2023 Luzon.” Respectively, in this the TPBAC anticipated that TOR
26 Dec 7 60,480 provision, as this is limiting review and approval might take
2023 – 25 other potential bidders outside longer period than the timeline
Dec 2024 Luzon Grid to participate. stated in the guidelines due to the
26 Dec 8 69,120 pandemic restrictions; and 4) the
2024 – 25 CSP period of 180 days based on
Dec 2025 the recent DOE circular was
26 Dec 9 77,760 estimated to last until June 2022
2025 – 25 since the TOR was submitted for
Dec 2026 review and approval on Jan. 2022
26 Dec 10 86,400
2026 – 25
Dec 2027 For Item No. 2.5 and 2.6 –Plant
Location was changed to
2.2 Delivery Period: five years and six “Plant Location – The generating
months (66 months) capacities shall come from
anywhere in the Philippines.”
2.3 Inclusive Dates: June 26, 2022 to
December 25, 2027
Note: Additional revision (not
2.4. Source of Power: Open included in the NEA/DOE
Technology (Conventional or recommendation)
Renewable Energy)
Any power plant capable of For Item 2.1- the contract energy
supplying Baseload requirement. for 26 June 2022 to 25 Dec. 2022
The power plant shall be compliant was changed from 43,200 to
with the prevailing DENR’s emission 21,600MwHr because the former
and environmental standard. was computed for 12 months while
the actual contract period is only 6
2.5 Facility Address: Luzon coverage months.

2.6 Technical Parameters:

Delivery Point: The Receiving Point

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ACTIONS/JUSTIFICATIONS ON THE DOE/NEA COMMENTS ON QUEZELCO 1’s TOR FOR THE PROCUREMENT OF ADDITIONAL POWER REQUIREMENTS
FOR A CONTRACT PERIOD OF FIVE YEARS AND SIX MONTHS STARTING 26 JUNE 2022 TO 25 DECEMBER 2027
shall be at the Seller Nodes
Line Rental shall be for the account
of the Seller.
Plant Capacity – The minimum
generating capacity of the Seller
shall be no less than the contracted
capacity.
Plant Location – The generating
capacities shall come from anywhere
in Luzon.

2.7. Conditions Precedent to Start

Supply:
ERC Issuance of Provisional Authority
Security Deposit: No Security
Deposit
Replacement Power Complied Accepted Revised because of contradicting
statement and to read as follows:
6.1 In case of delay in the
Commencement of Delivery (COD) 6.1 If the Power Supplier fails to
or any outage beyond the maximum provide its replacement power, the
allowance, the Power Supplier shall DU shall procure Replacement
provide the replacement power up
to the contracted capacity during the Power from other sources at the
period. If the Power Supplier fails to expense of the Power Supplier and
nominate its replacement power subject to the payment of
ahead of time, the DU shall procure administrative fee as defined in the
Replacement Power from other power supply agreement.
sources at the expense of the Power
Supplier and subject to the payment
of administrative fee as defined in
the power supply agreement.

6.2 For on-grid area, if the outage is 6.2 deleted because the power
within the maximum allowance, the supplier shall provide the
DU to cast around for its replacement power either within
Replacement Power at its best or beyond the allowable outage.
effort, the cost of Replacement
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ACTIONS/JUSTIFICATIONS ON THE DOE/NEA COMMENTS ON QUEZELCO 1’s TOR FOR THE PROCUREMENT OF ADDITIONAL POWER REQUIREMENTS
FOR A CONTRACT PERIOD OF FIVE YEARS AND SIX MONTHS STARTING 26 JUNE 2022 TO 25 DECEMBER 2027
Power at the relevant period shall be This is also contradicting to 6.5
paid by the DU based on the actual hereof.
price. In case that DU failed to
secure the Replacement Power, the
Power Supplier, in coordination with
the DU may provide the
Replacement Power, the cost of the
Replacement Power shall be paid by
the DU based on the ERC approved
rates.

6.3 During any period of Allowable 6.3 The cost of Replacement Power
Outage, the Power Provider shall be provided by the Power Supplier
responsible in providing the DU with shall be paid by the DU based on
replacement power in the following the ERC-approved rate under the
event: PSA or based on actual or WESM
6.3.1 For on-grid area, in case of price, whichever is lower.
unexcused delay in the COD or any
outage beyond the maximum
allowance,the cost of Replacement
Power provided by the Power
Supplier shall be paid by the DU
during therelevant period equal to
WESM price or the ERC-approved
rate under the PSA, whichever is
lower.

6.4 Power Supplier shall provide 6.4 Power Supplier shall provide
replacement power in the following replacement power in the
cases, except for Force Majeure following cases, except for Force
events: Majeure events:
(a) During any delay from the target (a) During any delay from the
delivery date; target delivery date;
(b) Scheduled or Unscheduled (b) Scheduled or Unscheduled
outages; and outages; and
(c) Any extension on allowable (c) Any extension on allowable
outages outages

6.5 Replacement Power shall be the 6.5 Replacement Power shall be

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ACTIONS/JUSTIFICATIONS ON THE DOE/NEA COMMENTS ON QUEZELCO 1’s TOR FOR THE PROCUREMENT OF ADDITIONAL POWER REQUIREMENTS
FOR A CONTRACT PERIOD OF FIVE YEARS AND SIX MONTHS STARTING 26 JUNE 2022 TO 25 DECEMBER 2027
focal responsibility of the Seller the focal responsibility of the Seller
either it is sourced-out from the either it is sourced-out from the
WESM or other Power Plant which WESM or other Power Plant which
shall be specified by the Power
shall be specified by the Power
Supplier.
Supplier.

Reduction of Contract Capacity Complied For Item No. 10.2 (b), The word Supplier was added.
10.1 The DU has the right to reduce QUEZELCO I to revise as
its contract capacity if there are: follows to be consistent with
 Loss of the captive Annex B of the DOE DC No.
customers due to Retail DC2021-09-00030:
Competition and Open
Access (RCOA) and Green “10.2 (b) Any affiliate or third
Energy Option Program party subject to the consent of
(GEOP). Power Supplier”
 Reduction of demand of the
DU due to special
circumstances beyond the
control of the DU.
 Capacity reduction on the
implementation of
Renewable Energy Law (RA
9513) and RPS compliance

10.2 DU may assign, transfer,

designate or allocate its rights and
obligations to purchase a portion of
Contract it no longer requires to:
 Any of its business
segments without the prior
consent of Power Supplier;
or
 Any affiliate or third party
subject to the consent of
Power

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ACTIONS/JUSTIFICATIONS ON THE DOE/NEA COMMENTS ON QUEZELCO 1’s TOR FOR THE PROCUREMENT OF ADDITIONAL POWER REQUIREMENTS
FOR A CONTRACT PERIOD OF FIVE YEARS AND SIX MONTHS STARTING 26 JUNE 2022 TO 25 DECEMBER 2027
10.3 The consent by the Power
Supplier shall not be unreasonably
delayed or conditioned at the
disadvantage of the DU.
10.4 Any reduction shall require
approval of the ERC and must
comply with applicable rules of
competition set by the Government.
ELIGIBILITY REQUIREMENTS
Legal Documents
 An agreement showing that
they are jointly and severally
liable in this Bidding and the
resulting Power Supply
Agreement (PSA), if Power
Supplier is under partnership
or consortium.
 Own and/or operate existing
and operational power
plant/s in the Philippines
(Must include the list of the
power plants for
replacement power)
 Statement showing the
available capacity on target
delivery date
 Company Profile and
technical
capability/qualifications of
key officers, technical staff
and management
team/consultans.
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Acceptable Agree with NEA’s comments Revised to read as follows:
QUEZELCO I to consider the Legal Documents
following:  An agreement showing
that the Bidder and all its
 The provision should partners, shareholders,
welcome young / new joint venture, associates,
players, thus avoiding as may be applicable, are
limiting the power jointly and severally liable
generation experience to (EC) for any and all costs
for all proponents. This, and obligations arising
however, should be from this CSP and the
subject to all other resulting PSA if Bidder is
proof that may be formed as a partnership,
provided to show corporation, consortium,
capacity to perform the joint venture or any similar
minimum requirement association.
to perform the required  Build, own and/or operate
services. existing and operational
power plant/s in the
 If Bidder is formed as a Philippines (Must include
partnership, the list of the power plants
corporation, for replacement power)
consortium, joint  Statement showing the
venture or any similar available capacity on target
ACTIONS/JUSTIFICATIONS ON THE DOE/NEA COMMENTS ON QUEZELCO 1’s TOR FOR THE PROCUREMENT OF ADDITIONAL POWER REQUIREMENTS
FOR A CONTRACT PERIOD OF FIVE YEARS AND SIX MONTHS STARTING 26 JUNE 2022 TO 25 DECEMBER 2027
 Certification of Compliance association for purposes delivery date
(COC) issued by the ERC of this CSP, it must  Company Profile and
present an agreement technical
showing that the Bidder capability/qualifications of
and all its partners, key officers, technical staff
shareholders, joint and management
venture, associates, as team/consultans.
may be applicable, are  Certification of Compliance
jointly and severally (COC) issued by the ERC
liable to (EC) for any
and all costs and
obligations arising from
this CSP and the
resulting PSA.
PENALTY Acceptable. Agree with NEA’s comments Revised to read as follows:
The Seller shall be penalized in case QUEZELCO I to consider the
of the following: following: PENALTY
 Delay in Commencement of  Penalty clause should
Delivery (COD) be determined based The Seller shall be penalized by
 Failure in the provision of on the EC approved paying an administrative fee of
Replacement Power timeline of scheduled PHP0.35/kWh multiplied by the
 Other violations under the outage. undelivered energy in case of the
resulting PSA  On unscheduled outage, following:
delay on return to  Delay in Commencement
service per pre- of Delivery (COD)
determined timeline by computed per day of delay
the EC and power  Failure in the provision of
provider must also have Replacement Power during
a penalty clause the relevant period
notwithstanding the
provision on
replacement power.
Note: All items in the TOR without comments/recommendations from NEA and DOE are not included in this report but shall be included in the revised
TOR.

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