TERMS AND CONDITIONS OF TENDERS
PRE-COMMITMENT CONDITIONS
1. Furnish documentary evidence to PFC the WECs proposed to be installed in the said project have a valid type certification from Center for Wind Energy Technology (CWET) India:
2. Arrange to obtain a certificate from WEC contractor that they have complied with all guidelines of MNES, MEDA and other statutory bodies, as may be required, in respect of the selected WECs
3. The contractors shall submit a combined micrositing plan( i.e. the plan shall contain both the size of the machine selected for the project duly accepted by both the contractors) and estimate the theoretical generation assuming array efficiency of 95% and average machine availability and grid availability as 95%, which shall also be certified by an independent agency of repute at the Company’s cost. In case the theoretical generation is below the generation corresponding to a PLF of 26.5%, the developer shall agree to furnish as irrevocable revolving Bank Guarantee, for the primary lease period, cost of which shall not be assigned to the project, for an amount which shall not be less than 1.1 times the annual shortfall in revenue arising out of above difference;
4. Undertake that the above BG value shall be adjusted every year in advance based on the average PLF achieved for the preceding year, as certified by the LE, for an amount which shall not be less than 1.1 times the annual shortfall in revenue arising out of the difference between above PLF and 24%;
5. Submit an undertaking from WEC supplier that if there is a difference of more that 5% between the theoretical generation and the actual generation achieved from the wind farm for the wind pattern experienced , the WEC supplier shall be liable to pay penalty for the same on account of the loss of revenue on the basis of applicable tariff as per the PPA with MSEDCL/buyer . the company /PFC shall have the right to invoke the performance guarantee in such cases.
PRE-DISBURSEMENT CONDITIONS
1. Have submitted a net minimum generation guarantee from Vestas RRB corresponding to an annualized PLF of 22%;
2. Have prepared/ finalized the transportation arrangements, to be subject to LE review and incorporate any changes as may be suggested by LE;
3. Obtain all statutory, non-statutory and regulatory approvals, clearances and satisfy all conditions required for the effectiveness of such clearance (to be certified by LE)
4. Have entered into WEC contract(s) for supply, erection testing and commissioning, which shall not be inferior to the following:
a. Payment Terms:
i) 15% advance against equivalent bank guarantee, to be valid till handling over of WECs.
ii) 45% against progressive supply of WECs.
iii) 20% against progressive erection of WECs (pending connection to grid only in event of non-availability / readiness of evacuation lines)
iv) 10% against progressive commissioning of WECs:
v) 5% on commissioning of the whole contracted capacity, excluding SCADA system;
vi) 5% on handling over of the whole contracted capacity, including SCADA system;
vii) Payment, except for advance, shall be made only on receipt at site
b. Guarantee/Warranties
i) The contractor shall guarantee that the material being supplied is new, defect free and is fit in all respects for the envisaged purpose. The contractor shall rectify any defect in the material/ workmanship during the warranty period, and, if necessary, replace the defective part. In all such cases the contractor shall demonstrate over a one year period that it has successfully rectified the defect.
ii) The contract shall be defect liability period / warranty period from the manufacturer /supplier of WECs against all defects in design, material engineering and construction, at least for first seven years of operation and shall necessarily have the manufacturer and O&M contractor during the primary lease period.
iii) The contractor shall guarantee machine availability of 95% during the 6 month pack period of April/May-September/October and also 95% availability overall through the year during the warranty period.
c. Other.
i) The contractor shall develop an MIS Reporting system (to be reviewed by the Lender’s Engineer) for the proposed wind farm and generate monthly reports detailing the performance details of each machine of the wind farm including the hourly wind data, the actual generation form each of the machines, the theoretical generation, as per the power curve of the machine, deviation of the actual generation if any, from the theoretical generation. This report shall be submitted every quarter by the contractors;
ii) The contractor shall also provide O&M of the wind farm for the first two years of operation post COD entirely free of cost (including consumables if any);
d. Penal Provisions
i) In case of delay in implementation of the project beyond what has been envisaged the contract, the Contractor shall be liable to pay liquidated damages at 0.5% of WEC- ETC contract price of every week of delay subject to a limit not less that 10% of WEC- ETC contract price which may be adjusted pro rata according to machines commissioned.
ii) if any of the conditions mentioned above are not met/ or there is a difference of more than 50% between the theoretical generation and the actual generation achieved from the wind farm based on the wind pattern experienced, the contractor shall be liable to pay the liquidated damages for the same at the end of every year during the warranty period on account of the loss of revenue on the basis of applicable tariff as per the PPA with MSEDCL. The owner /PFC shall have the right to invoke the performance guarantee in such cases;
5 Have entered into O&M contract, with the WEC supplier, to reviewed LE for the project, for
a minimum period of 13 years post COD of last unit
a) The terms of the O&M shall provide for free O&M for the first two years (may be adjusted with free O&M provided by WEC Supplier);
b) The O&M cost shall not exceed 1.5%of the project cost, starting 3rd year after project COD, and maximum permissible escalation per annum shall not exceed 5%.y deviation beyond 5% from the generation corresponding to the guaranteed power curve would be compensated by an amount equivalent to the loss of revenue on the basis of applicable tariff as per the PPA with MSEDCL:
c) the O&M contract shall be an all inclusive contract and shall cover supply of consumables and spares, wear and tear overhauling, replacement of damaged parts (except damage caused under abnormal environmental conditions);
d) The O&M contractor to maintain necessary inventory of critical spares but not limited to blades, gearbox etc so as to ensure minimum time for replacement (list of such spares their quantity and replacement time shall be agreed between manufacturer, lessee and lenders Engineers appointed by lessor) to restore generation and such provisions shall be part of the O&M contract.
e) The O&M contractor shall also compensate the line losses if any, and charge for the reactive power incurred, as per the applicable tariff
6. The power curve guarantee as sought above shall be secured through a Bank Guarantee/Corporate Guarantee
7. Release necessary advance as may be required as per terms of contract fpr laying of transmission lines, sub station equipment etc:
8. Establish a mechanism, for depositing the refundable portion of MEDA/MSEDCL fee/ installment into the TRA of the project, acceptable to MEDA/MDEDCL :
9. Establish the required bank guarantee for shortfall in revenue as stipulated at in Pre Commitment Conditions no 36
10. Resolve / address all issues raised by Lender’s Engineer/Lender’s Legal counsel in their report and incorporate the necessary changes in the project documents.
11. Ensure that all key projects Agreements have been executed after incorporating the comments of the LE,LLC, and IA and all conditions to the effectiveness of such agreements have been satisfied
12. Take Comprehensive insurance policy as a package to the satisfaction of Lessor for the proposed wind farm to cover various risks like.
a. Property ; Fire and allied peril risks, Machinery Breakdown (electrical and mechanical MBD)
b. Loss of revenue: Loss of revenue due to fire and allied peril risks and loss of revenue due to MBD)
c. Generation Guarantee: the generation loss(loss of revenue) as compared to the generation level corresponding to PLF of 26.5% due to fall in wind speed/ pattern or arrange to provide adequate credit support acceptable to lessor.
13. Ensure that all the requisite insurance policies are taken in respect of the project, suitably endorsed in favor of PFC. |
