ELECTRICITY REGULATORY AUTHORITY
NOTICE OF PROPOSED MODIFICATION OF LICENCE NO. MSS XSABO POWER
LIMITED LICENCE NO. ERA/LIC/GEN/015/134
(Under Section 44 (5) of the Electricity Act, 1999)
In pursuance of its powers under Section 44 (4) of the Electricity Act, 1999 the
Electricity Regulatory Authority (hereafter referred to as the “Authority”)
hereby gives notice under Section 44(5) as follows:
1.
The Authority has approved the modification of the electricity generation
and sale licence No. ERA/LIC/GEN/015/134 (the “Licence”) held by to
MSS Xsabo Power Limited (the “Licensee”) for the development of a
20MW solar power project in Kabulasoke.
2.
The modification is being proposed following a written request from the
Licensee.
3.
The proposed modification is to:
3.1. Amend the period within which the Licensee is required to achieve
Financial Close in conditions 3 and 18.1 of the licence. The Licensee is
currently required to achieve Financial Close within two hundred seventy
(270) days from 15th of September, 2015. The proposed modification will
allow the Licensee to achieve Financial Close within one hundred fifty
eight (158) days from the effective date of the proposed Modification.
3.2. Amend the period within which the Licensee is required to achieve
Construction Start in conditions 3 and 4.1 of the licence. The Licensee is
currently required to achieve Financial Close within two hundred seventy
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(270) days from 15th of September, 2015. The proposed modification will
allow the Licensee to achieve Construction Start within one hundred fifty
eight (159) days from the effective date of the proposed Modification.
3.3. Amend the period within which the Licensee is required to post a
performance bond to secure Financial Close, Construction Start and
Commercial Operations Date in conditions 4.1 (a) and (b) of the licence.
The Licensee is currently required to post performance bonds securing
Financial Close, Construction Start and Commercial Operations within
one hundred eight two (182) days from the 15th of September, 2015. The
proposed modification will allow the Licensee to post the performance
bonds to secure Financial Close, Construction Start and Commercial
Operations Date within forty five (45) days from the Effective Date of the
proposed Modification.
3.4. Amend the period within which the Licensee is required to achieve
Commercial Operations Date in conditions 3 and 4.1 of the License within
13 months from the 15th of September, 2015. The proposed modification
will allow the Licensee to achieve Commercial Operation Date within
three hundred ninety nine (399) days from the Effective Date of the
proposed Modification.
4.
The proposed modification is set out below.
4.1. In Condition 3 of the licence, the existing paragraph 3 ‘Construction
Start’ ‘Commercial Operations Date’ and ‘Financial Close’ shall be
substituted as follows:
‘Construction Start Date’, the date Two Hundred Seventy (270)
One Hundred Fifty Nine (159) days from the Effective Date of
this Modification by which (i) the Licensee has received all
commitments in respect of debt and equity required for
completion of the Generation Facility and any conditions
precedent to the advancing of such debt and equity have been
satisfied or waived and (ii) the Licensee has provided a notice to
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proceed under the construction contract in place in respect of
the Generation Facility.’
‘Commercial Operations Date’, the date not later than Thirteen
(13) Three Hundred Ninety Nine (399) days from the Effective
Date of this Modification.’
‘Scheduled Construction Start Date’, Two Hundred Seventy
(270) One Hundred Fifty Nine (159) days from the Effective Date
of this Modification.’
‘Financial Close’ the date not later than Two Hundred Seventy
(270) One Hundred Fifty Eight (158) days from the Effective
Date of this Modification, on which the Licensee would have
concluded financial arrangements and disbursements by the
lenders and by which the lenders confirm that all conditions
precedent to the first drawdown have been satisfied or waived.
4.2. In Condition 4.1 of the licence, existing paragraph 4 ‘Performance Bond
shall be substituted as follows:
“4.1 Performance Bond:
Not later than One Hundred Eighty Two (182) Forty Five (45)
days from the Effective Date of this Modification, the Licensee
shall submit to the Authority a Performance Bond in a form and
substance satisfactory to and in favor of the Authority as
specified in Annex C in accordance with the requirements of
Section 33(4) of the Act to secure the performance of the
Licensee’s obligations to achieve:
(a) Financial Close and Construction Start Date Two
undred Seventy (270) One Hundred Fifty Eight
(158) days and One Hundred Fifty Nine (159)
days, respectively, from the Effective Date of this
Modification, in respect of which, the value of the
Performance Bond shall be equivalent to USD
20,000 per MWp; and
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(b) Commercial Operations Date, within a period not
exceeding Thirteen (13) Three Hundred Ninety
Nine (399) days from the Effective Date of this
Modification, in respect of which, the value of the
Performance Bond shall be equivalent to USD
10,000 per MWp.
This license shall automatically lapse The Authority
shall be entitled to revoke the License upon failure by
the Licensee to submit the above performance bonds
within One Hundred Eight Two (182) Forty Five (45)
days from the Effective Date of this Modification.”
4.3. In Condition 18.1 of the licence, existing paragraph 18.1 ‘Obligation to
Provide Proof of Financial Close’ shall be substituted as follows:
“18.1. The Licensee shall provide proof of Financial Close to
the Authority within Two Hundred Seventy (270) One Hundred
Fifty Eight (158) days from the Effective Date of this
Modification or within such period to be agreed between the
Authority and the Licensee. In the event that the Licensee does
not provide proof of Financial Close within the specified period,
the Authority shall be entitled to revoke the License shall
terminate automatically.”
5.
The purpose of this notice is to bring the proposed modification to the
attention of the Public and invite representations or objections in
connection thereto.
6.
In line with Clause 44 (5) of the Act, any representations or objections
with respect to the proposed modification may be made on or before 3o
days from the date of this Notice to:
The Secretary
Electricity Regulatory Authority
ERA House, Plot 15, Shimoni Road, Nakasero
P.O. Box 10332
Kampala
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Email: [email protected]
Dated this 04th day of May 2016
Geofrey Okoboi, Ph.D.
FOR: CHIEF EXECUTIVE OFFICER
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ELECTRICITY REGULATORY AUTHORITY
BY WEBPOSTING
NOTICE OF PROPOSED MODIFICATION OF LICENCE NO. MSS XSABO POWER
LIMITED LICENCE NO. ERA/LIC/GEN/015/135
(Under Section 44 (5) of the Electricity Act, 1999)
In pursuance of its powers under Section 44 (1) of the Electricity Act, 1999 the
Electricity Regulatory Authority (hereafter referred to as the “Authority”)
hereby gives notice under Section 44(5) as follows:
1.
The Authority has approved the modification of the electricity generation
and sale licence No. ERA/LIC/GEN/015/135 (the “Licence”) held by to
MSS Xsabo Power Limited (the “Licensee”) for the development of a
20MW wind power project in Tororo District.
2.
The proposed modification is to;
2.1. Amend the period within which the Licensee is required to achieve
Financial Close in conditions 3 and 18.1 of the Licence. The Licensee is
currently required to achieve Financial Close within two hundred seventy
(270) days from 15th of September, 2015. The proposed modification will
allow the Licensee achieve Financial Close within three hundred twenty
four (324) days from the effective date of the proposed Modification.
2.2. Amend the period within which the Licensee is required to achieve
Construction Start in conditions 3 and 4.1 of the Licence. The Licensee is
currently required to achieve Construction Start within two hundred
seventy (270) days from 15th of September, 2015. The proposed
modification will allow the Licensee achieve Construction Start within
three hundred twenty four (324) days from the effective date of the
proposed Modification.
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2.3. Amend the period within which the Licensee is required to post
performance bonds to secure Financial Close, Construction Start and
Commercial Operations Date in conditions 4.1 (a) and (b) of the licence.
The Licensee is currently required to post performance bonds securing
Financial Close, Construction Start and Commercial Operations within
one hundred eight two (182) days from the 15th of September, 2015. The
proposed modification will allow the Licensee to post the performance
bonds to secure Financial Close, Construction Start and Commercial
Operations Date within Ninety Seven (97) days from the effective date of
the proposed Modification.
2.4. Amend the period within which the Licensee is required to achieve
Commercial Operation Date in conditions 3 and 4.1. of the License within
24 months from the 15th of September, 2015. The proposed modification
will allow the Licensee achieve Commercial Operation Date within five
hundred sixty nine (569) days from the effective date of the
Modification.
3.
The proposed modification is set out below.
3.1. In Condition 3 of the licence, the existing paragraph 3 ‘Construction
Start’ ‘Commercial Operations Date’ and ‘Financial Close’ shall be
substituted as follows:
‘Construction Start Date’, the date Two Hundred Seventy (270)
Three Hundred Twenty Four (324) days from the Effective Date
of this Modification by which (i) the Licensee has received all
commitments in respect of debt and equity required for
completion of the Generation Facility and any conditions
precedent d equity re to the advancing of such debt and equity
have been satisfied or waived and (ii) the Licensee has provided
a notice to proceed under the construction contract in place in
respect of the Generation Facility.’
‘Commercial Operations Date’, the date not later than Twenty
Four (24) Five Hundred Sixty Nine (569) days from the Effective
Date of this Modification.’
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‘Scheduled Construction Start Date’, Two Hundred Seventy
(270) Three Hundred Twenty Four (324) days from the Effective
Date.’
‘Financial Close’ the date not later than Two Hundred Seventy
(270) Three Hundred Twenty Four (324) days from the Effective
Date of this Modification, on which the Licensee would have
concluded financial arrangements and disbursements by the
lenders and by which the lenders confirm that all conditions
precedent to the first drawdown have been satisfied or waived.
3.2. In Condition 4.1 of the licence, existing paragraph 4 ‘Performance Bond’
shall be substituted as follows:
“4.1 Performance Bond:
Not later than One Hundred Eighty Two (182) Ninety Seven (97)
days from the Effective Date of this Modification, the Licensee
shall submit to the Authority a Performance Bond in a form and
substance satisfactory to and in favor of the Authority as
specified in Annex C in accordance with the requirements of
Section 33(4) of the Act to secure the performance of the
Licensee’s obligations to achieve:
(a) Financial Close within Two Hundred Seventy
(270) Three Hundred Twenty Four (324) Days
from the Effective Date of this Modification and
by the Scheduled Construction Start Date
respectively, in respect of which, the value of the
Performance Bond shall be equivalent to USD
5,000 per MW; and
(b) Commercial Operations Date, within a period not
exceeding (24) Twenty Four Five Hundred Sixty
Nine (569) days from the Effective Date of this
Modification, in respect of which, the value of the
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Performance Bond shall be equivalent to USD
2,500 per MW.
This license shall automatically lapse The Authority shall be
entitled to revoke the License upon failure by the Licensee to
submit the above performance bonds within One Hundred
Eighty Two (182) Ninety Seven (97) days from the Effective Date
of this Modification.”
4.
The purpose of this notice is to bring the proposed modification to the
attention of the Public and invite representations or objections in
connection thereto.
5.
In line with Clause 44 (5) of the Act, any representations or objections
with respect to the proposed modification may be made on or before 30
days from the date of this Notice to:
The Secretary
Electricity Regulatory Authority
ERA House, Plot 15, Shimoni Road, Nakasero
P.O. Box 10332
Kampala
Email: [email protected]
Dated this 04th day of May 2016
Geofrey Okoboi, Ph.D.
FOR: CHIEF EXECUTIVE OFFICER
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