Securities code: 300257 securities profile: Zhejiang Kaishan Compressor Co.Ltd(300257) Announcement No.: 2021-111 Zhejiang Kaishan Compressor Co.Ltd(300257)
About Pt sokoria geothermal Co., Ltd., a holding subsidiary of Indonesia
Announcement of approval of PPA amendment and confirmation of project commercial operation schedule
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Zhejiang Kaishan Compressor Co.Ltd(300257) (hereinafter referred to as “the company”) acquired Pt sokoria geothermal company (hereinafter referred to as “SGI”) (see Announcement No. 2016-053) through its holding subsidiary ksorka company of Singapore (hereinafter referred to as “KS orka”) in August 2016, and completed the power purchase agreement (hereinafter referred to as “PPA”) of 30MW geothermal power generation project (hereinafter referred to as “the project”) held by SGI in February 2017 ）The power purchase agreement is signed with Indonesia electric power company (hereinafter referred to as “PLN”), which stipulates that the project is constructed in six phases, with units of 5MW (6 MW) in each phase × 5MW) for 30 years after each unit is put into commercial operation; The base price of the power purchase price is 12.5 cents / kWh, priced and paid in US dollars; PLN will take or pay 80% of the available power generation of the project.
After the company acquired SGI, due to the inconsistency between the development technology and mode of SGI and the PPA signed in November 2014, and the mismatch between the project development schedule requirements and the local power growth demand, SGI hereby applied to PLN for amending the PPA signed in November 2014.
Recently, after strict approval procedures, PLN approved the revised PPA for SGI project (hereinafter referred to as the “revised draft”), the main contents are as follows:
1. Modification of unit target on grid rated capacity and time
According to the original PPA, 30MW is put into commercial operation in six phases. The rated capacity of each phase of the unit is 5MW. The target commercial operation time is December 2018, December 2019, December 2020, December 2022, December 2023 and December 2024 respectively.
The revised draft stipulates that 30MW will be put into commercial operation in four phases. See Table 1 for the target on grid rated capacity and commercial operation time of units in each phase:
No. target rated capacity (MW) target commercial operation time
5MW of the first unit shall not be later than the end of March 2022
Second unit 3MW December 2022
The third unit 11mwdecember 2024
The fourth unit 11mwdecember 2025
The deadline for putting the project into commercial operation is 30MW, June 30, 2026
Table 1: the revised draft specifies the target rated capacity and commercial operation time of each unit
Except for the first unit, SGI shall submit the development intention confirmation notice of the unit to PLN 12 months before each unit is put into commercial operation, promising the binding on grid rated capacity and commercial operation date of the unit. If any unit fails to be put into commercial operation on the binding commercial operation date, SGI shall have a grace period of 90 days, after which liquidated damages shall be paid on a daily basis.
If a phase of commercial operation year is different from the above objectives, the approval of PLN’s system planning department shall be obtained before notifying PLN in writing.
2. On the adjustment of electricity price except take or pay (80%)
The revised draft stipulates that the electricity price of the third and fourth units shall be reduced by 5% on the basis of the benchmark electricity price.
3. Modification of settlement method
In 2016, the Bank of Indonesia issued relevant regulations on foreign exchange transactions of banks and state-owned companies. The amendment stipulates that within 90 days after signing the amendment, SGI shall obtain an exemption letter from the Bank of Indonesia (hereinafter referred to as the “exemption letter”) to approve SGI to collect US dollars from PLN. If the exemption letter is not obtained, PLN, SGI and pt.bank, three state-owned banks, shall cooperate
Rakyat Indonesia (Persero) Tbk. (hereinafter referred to as “bri”), Pt Bank Negara Indonesia(Persero), Tbk. (hereinafter referred to as “BNI”) and Pt bank Mandiri (PERSERO) TBK (hereinafter referred to as “Mandiri”) respectively sign the tripartite currency exchange agreement. The tripartite currency exchange agreement specifies that PLN shall exchange the currency according to the Jakarta interbank spot exchange rate at 10 a.m. on the exchange date (jisdor), pay the same amount of rupiah to SGI rupiah account, and then the bank will change it into full US dollars to SGI US dollar account. PLN’s payment obligation shall be deemed to have been fulfilled after receiving full US dollars from SGI US dollar account.
As of the signing date of the amendment, SGI has signed the tripartite currency exchange agreement with bri. The text of the agreement, as an annex to the amendment, is a part of the amendment.
4. Add performance difficulty clause
After the signing of the PPA, if any party has a material impact on its ability to perform the PPA due to unforeseen, non-human fault events that have a significant impact on the economy of the project, And the impact has not been eliminated after taking prudent measures and alternative schemes (“performance difficulties”), the affected party may propose reasonable and appropriate temporary measures (if necessary, adjust the chapter of the agreement) to mitigate the adverse impact of difficult performance events. Both parties shall discuss in good faith. However, before both parties approve temporary measures, either party shall not be obliged to make any adjustment to the agreement, and the performance responsibilities and rights of either party shall not be affected.
5. Other unchanged key contents:
The basic electricity price is 12.5 cents / kWh. The actual electricity price of each contract month is based on 12.5 cents / kWh, which is affected by the U.S. producer price index.
In addition to the electricity charge, after the commercial operation of the first unit, PLN also pays the transmission charge for SGI, which is 0.179 cents / kWh.
After the commercial operation of the first unit, PLN will implement the 80% take or pay obligation according to 100% of the basic electricity price. During the commissioning of each phase of unit, the electricity charge of the commissioning grid connection part shall be paid according to 25% of the basic electricity price.
The duration of PPA is 30 years after each unit is put into operation.
The construction of the first unit of SGI project has been completed in early 2020. After the amendment is signed, the local department of PLN can enter the operation and commissioning stage of phase I power station with SGI. The second unit has completed resource drilling.
It is hereby announced.
Zhejiang Kaishan Compressor Co.Ltd(300257)
Board of directors
December 26, 2001
