Concession Agreement Hydropower

December 6, 2020

Draft concession agreement for the design, construction, operation, maintenance and management of a hydropower plant with associated facilities and equipment The agreement, signed on 29 June by Sh. Sanjay Garg, Director General of KHEL, and Sh. Karma P Dorji, Director of the Bhutanese Ministry of Hydropower and Energy Systems (DHPS), was followed by Dr. S. Jaishankar by videoconference. Minister for Foreign Affairs of the Government of India and Mr. Tandi Dorji, Minister for Foreign Affairs of Bhutan. Draft concession contract for the design, operation, maintenance and management of a hydroelectric power plant with associated appliances and equipment Events standardized by the trader include the absence of a performance guarantee, the non-possession of a generic license or the use of water no later than the date set out in the agreement, or the transfer of the concession to another body without prior authorization. (Article 2, point 2.1) Reference: Draft agreement for the development of pilot projects (for hydropower projects with an installed capacity of less than 500 MW) between the Government of Nepal and the project company. The concession contract for the 600 MW Kholongchhu Hydropower Project in Eastern Bhutan was signed between the Royal Government of Bhutan and the promoter of the Kholongchhu Hydro Energy Limited (KHEL) project. “As hydropower developers, we know whether a policy in our sector will work or not,” Luangpaseuth said. “Our business experience, combined with IFC advisory support, has helped the government achieve its objectives and complement sound regulation.” The agreement, signed on June 29 by Sh. Sanjay Garg, Director General of KHEL, and Sh.

Karma P Dorji, Director of Bhutan`s Department of Hydropower and Energy Systems (DHPS), was monitored by Dr. S. via videoconference. Jaishankar, Minister for Foreign Affairs of the Government of India, and Mr. Tandi Dorji, Minister for Foreign Affairs of Bhutan. Luangpaseuth has experience in the process of granting hydropower projects and has a first-hand understanding of the challenges for small hydropower developers. He believed that the process needed to be improved by streamlining and clarifying the nature of the process that would be relevant to smaller, more local projects. Project company for the development and completion of a hydroelectric project, including the transmission line, on a construction operating transfer (BOT) basis. The development agreement for the pilot project is approved and approved by the Nepalese Ministry of Energy. In addition, an agreement was announced with Reconsult, based in Laktai, for the construction of the STARO Selo SHPP on the Crna River. Reference: Law on Concessions, which consists of information and analysis directly related to the procedure for granting water flows for the construction of small hydropower plants in Montenegro (.pdf in English and Montenegrin .pdf). Kholongchhu will be the seventh hydroelectric project to be built in Bhutan with the financial support of the Indian government.

To date, four plants with a total capacity of 2136 MW have been commissioned, providing both electricity for the domestic market and for export to India. The 336 MW Chhukha Run-of-River Station on the Wangchhu River in Chhukha Dzongkhag in western Bhutan was fully commercially operated in 1988, followed by the 60 MW Kurichhu Run-of-River Project at Gyalpozhing, Mongar, on the Kurichhu River in eastern Bhutan. Hydroelectric power plants installed in France whose concession contract has expired are in demand among current or potential competitors of EDF and SHEM. If a tendering procedure is in line with the doctrine of the European Commission, it is not entirely beneficial, because it involves the management of a common good: water. Back to the French case: the problem is complicated by the fact that if the cascading dams were not built at the same time, their concession contracts do not end at the same time. A call for tenders after the expiry of those contracts would therefore run the risk that concessions on the same river would be awarded to different operators. The solution chosen is that of the “barycentres”: a common maturity is calculated “in such a way that the sum of the estimated future cash flows of the concessions, discounted and aggregated for all the concessions, is not modified by their grouping” (Energy Code, Articles L. 521-16). This method makes it possible to postpone the first deadlines. For the Dordogne Development Concession (operated by SHEM), whose first equipment dates from 1921 and the most recent from 1988, the new deadline is 31 December 2048 (Decree No. 2019-212 of 20 March 2019).

But there is one condition: If out of 31. December 2024 some work has not been committed (the total amount is about 50 million euros for the Dordogne), the new common date will be advanced compared to the work not carried out. The exact formula is given in Article 2 of the Decree. If no investment is made, the deadline will be brought forward to December 31, 2035. If there is competition, it will not be between dams located on the same river. But we see the disadvantage of this method. The company that wins this type of lot will benefit from market power equivalent to that which independent companies forming a cartel would obtain. We therefore find the same conciliation as for dams on separate rivers. The concessionaire must be in possession of a provisional production licence for nominal production capacity before or on the date of signature of the contract.

The concessionaire is required to obtain a water licence. The licensee must obtain a permanent production licence before or until the scheduled date of operation. (Appendix 1) For the smooth and successful implementation of hydropower projects, companies need a clear policy and regulation of the development process from start to finish. At the beginning of the Lao People`s Democratic Republic Hydropower Developers Working Group, small hydropower developers, including Luangpaseuth, agreed that clearer procedures for the development of small hydropower would help boost the sector. Luangpaseuth, along with a team of small developers from the Hydropower Developers Working Group, formed a committee to share their experiences to support the development of new regulations. In addition, they helped to comment on the tendering process and procedures for dealing with two competing parties for the same dam site. The provisions on project cancellations were commented on and then tightened; and the details of power purchase agreements have been changed. The parties may mutually agree to terminate or continue the Agreement on modified terms, as Natural FM events will last for a period of 120 days. With respect to the likelihood of an FM political event, the parties must consult for a maximum period of 90 days to reach agreement on the measures to be taken to manage the impact of the FM event. .

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