Terms of Reference For selection consultant support EVT.

{ ImportedCoal Issues of to in in PowerPurchase Agreements of Built Opeation and TransferProjectin Vietnam SYSTEM E FFICIET{Cy IMPROVEM ENT, E QUITAZATIOT{ Ar',{D RENTEWABLE PROJEC'T (SEIERP) S A. BACKGROU}{D In orderto meetwith hieh level of electricitydemanderowth.over the yearrs.
Vietnam Government has called for the investment into power generation tiom private investors as weli as foreign investors. At present, there are a number of power generation projects are develloped under the form of Build - Operate and Transfer,, which six (6) povverprojects using the foreign of imported coal. The total installed capacity of those projects is up to 8000 MW and the coai consumptionis estimatedof 126 million tons per year. As assigned by the Government, Vietnam Electrici.v ("E\,}I") as the offtaker is now in negotiationprocess of Power PurchaseAgreementswith those investors. The Developers alreadl' sent Proposalsfor Imported Coal and Coal Transportation Arrangement to F,\T,l for comment and approval. shall be Accordin-9to their proposals, risk in coal and coai transportation the passedthrough to E\AI in the tarriff, However, the mechanismfor imported was proposeddifferently among those projects, coal and coal transportation even in the principal issues such as specificationsof the coal, method to (direct contractingor bidding), selectthe coal suppliersand coal transporters take or pay mechanism, price adjustment mechanism, sources of coal,

of ect. securiry coalsupply,

B. OBJECTIVTS are The main objectives the ConsultingServicr:s to adviceE\,N on the of general principleswhich shouldbe appliedfor all importedcoal projectsin to V'ietnam also adviceE\,N in response the importedcoal arrangement and efficiency" proposedby each Investor in order to ensure the securif,v, ilexibiliry for E\D{ in importof coal for powerlleneration.

C. SCOPEOF SERWCES The scope worksareasfollows: of Task1: Preparation of a report in which the consultant sha1l deliver a recommendation general on principlesand frameworkfor EVN to use in the PPA negotiation coal frred BOTs using importedcoal in of order to ensurethe securify,efficiency.flexibility for E\Dtr in import of coal for power generation. Suchrecomendation shall includebut not limitedto the followingaspects: - Coaltype; - Source ofcoal; - Methodfor selection coal supplier of and transpofter: or direct bid contracu - Pricemechanism; - Takeor pay mechanism; - Securiry coalsupply; for - Allocation of risks in the chain sutrrply betweensupplier,power piantand offtaker. In order to preparethe report, the consultantneed to review the neccessary documents. inciuding master plan for development of power systemin Vietnam,the location,cfthe importedcoal projects, risk allocation mechanism the Built - Operate Transfer in projects. Task2 Review and make recommendation proposalfor arrangement on of importedcoal and coai transportation gi.renby the Developer each of project so that the arrangement of imported coal and coal transportation each project shall not only follow the general of principles and framework that the Consultanthas recorrunended in task I but aiso be appropriate projectin general. the Investorsof eachprojectshall submit to E\Oi for approvaioF their proposalfor arrangement imponedcoal and coal transportation of tbr the project. The proposalmay inciude coai rype, sourceof coal. method for selection of coal suppliers and transporters, price adjustment mechanism. This proposillif approved E\Ar shail ect. by'
2

be the basicfor the lnvestors bid or tloselect coalsuppliers to the and transporters. The Consuitantshall review and make commentson eachproposal from investorsof eachproject. There are six (6) proposalsfrom investorsfor arrangement coal supply and coal transportation of for six (6) projects should reviewedby the consultant. be
Task 3 Review and make recortmendation on Coal Supply and Coal TransportationAgreementsubmitted by Developerof eachproject;

After selection coalsuppliers coal transporters, investors of the and of each project shal1 negotiate and inital the draft of Coal Supply and Coal Transportation Agreementwith the coal suppliersand coal transporters. draftshal1 submitted EVN for approval The to be before principle. signingbased thepass-through on The Consuitant shalireviewand make comments eachdraft of the on agreement each project.There are six (6) sets of drafts of the of agreements coal suppiyand coal transportation six (6) projects on of shouldbe reviewed theconsultant. bv

Task4 Delivery a training coursefor E\T'J's staffs.providing the knowledge and experienceon internationalcoal market and coal transportation risk market,including the long term contractand spotmarketcontract, policy of the imported countriesin respect sharing mechanism,
i*^^'.foJ ''yvr".... ^ , ,o41, experienceof IndependentPower Plants in resolution of imported coal.

D. OUTPUT A]TD DELI}TR For task 1: The Consultant shallsubmitthe initial reportwithin two weeks and then final report within four week since receiptof official documents andrequestfrom E\,TI.