Professional Documents
Culture Documents
2021-01-15 Din LT OM (Execution Version)
2021-01-15 Din LT OM (Execution Version)
AT
BETWEEN
AND
AND
(1) DIN ENERGY LIMITED, a company duly organized and existing under the laws of
Pakistan, with its registered office located Din House, 35-A/1, lalazar Area, Opposite
Beach Luxury Hotel, M.T.Khan Road, Karachi Sindh, Pakistan (the Employer or the
Owner); and
(3) ORIENT ENERGY SYSTEMS (PRIVATE) LIMITED, a company duly organized and
existing under the laws of Pakistan, with its principal office located at Plot 9, Sector 24,
Korangi Industrial Area, Karachi, Pakistan (the Operator B),
The Operator A and Operator B are collectively referred to as the Operators and individually
as the Operator; and
The Employer and the Operators are collectively referred to as the Parties and individually as a
Party.
RECITALS
(1) WHEREAS, the Employer wishes to have the Operators perform the Works in relation
to the Facility;
(2) WHEREAS, the Operator A wishes to undertake the scope related to the WTG Works
and the Operator B wishes to undertake the scope related to the BOP Works;
(3) WHEREAS, the Operators are, inter alia, in the business of operating, maintaining and
providing related services for ‘wind turbines’ or ‘balance of plant’, in each case, for
wind power generation projects, such as the Facility;
(4) WHEREAS, the Operators represent that they each possess the requisite expertise,
professional qualification, skills, personnel, experience and technical and financial
resources to perform and execute the Works, to the extent falling under their respective
responsibilities, in accordance with the terms and conditions specified in this
Agreement;
(5) WHEREAS, the Employer wishes to conclude an agreement with the Operators for the
performance of the Works (that are fit for the Intended Purpose) in respect to the
Facility;
(7) WHEREAS, each Operator shall be responsible for its own scope of work in relation to
the Works and shall not be held jointly liable for any breach of obligations under this
Agreement, except as otherwise provided in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the receipt and
sufficiency of which is hereby acknowledged, intending to be legally bound, the Parties agree
as follows:
1.1 DEFINITIONS
Capitalized terms used in this Agreement, including the Recitals, shall have the
meanings specified hereunder, unless the context requires otherwise.
2 Year O&M Contract means the agreement dated October 15, 2019 executed
between the Employer and the 2 Year O&M Contractor titled “WP O&M Contract”
including all schedules and annexures attached thereto and such further documents as
may be expressly incorporated into such agreement.
AEDB means the Alternate Energy Development Board, a statutory body corporate
formed under the Alternate Energy Development Board Act, 2010.
(a) Price for WTG Works: being the aggregate of: (i) sum of USD Fixed
Monthly Payments (payable for the WTG Works) for the Operating Period;
and (ii) sum of PKR Fixed Monthly Payments (payable for the WTG Works)
for the Operating Period, as described in Article 6 (Agreement Price and
Payment Terms), as full consideration for the WTG Works to be provided by
the Operator A under this Agreement, excluding any amounts paid by the
Employer to the Operator A for Extra Works; and
(b) Price for BOP Works: being the aggregate PKR Fixed Monthly Payments
(payable for the BOP Works), as described in Article 6 (Agreement Price and
Payment Terms), as full consideration for the BOP Works to be provided by
the Operator B under this Agreement, excluding any amounts paid by the
Employer to the Operator B for Extra Works.
Applicable Laws means, as amended from time to time, all laws (including any Social
and Environmental Law), treaties, ordinances, rules, regulations and orders having
force of law, and any authoritative interpretation of such laws, treaties, ordinances,
rules, regulations and orders issued by a competent court, arbitral tribunal or other
governmental agency that directly or indirectly apply to the Works, in each case, any
supply, service or work related thereto.
Applicable Permits means collectively, the Operator Permits and the Employer
Permits.
Applicable Standards means the standards, requirements and criterion set out in
relation to and as applicable to the Facility, the Works and the performance of the
Works, in each case, as contained in:
Availability Guarantee means the guarantee of the Operators, as set out in Schedule
25 (Availability Guarantee).
Availability Guarantee LDs Cap means an amount equal to the Agreement Price for
each Operating Year, which is the sum of the Availability Guarantee LDs Cap of
Operator A and the Availability Guarantee LDs Cap of Operator B.
Availability Guarantee LDs Cap of Operator A means an amount equal to the price
of the WTG Works for the relevant Operating Year.
Availability Guarantee LDs Cap of Operator B means an amount equal to the price
of the BOP Works for the relevant Operating Year.
Back-up Metering System has the meaning ascribed thereto in the Energy Purchase
Agreement.
BOP means the equipment and systems of the Facility used in, or in relation to the
production and transmission of electric energy (other than the WTGs and Civil Works)
including but not limited to ring main units, medium voltage switchgear and associated
equipment, high voltage switchgear and associated equipment, low voltage switchgear
and associated equipment, main power transformer, other substation equipment
(including but not limited to any telemetering equipment, telecommunication devices,
data interface for the SCADA System, control and protective devices and safety
equipment) medium voltage transmission line inside the Facility (including but not
limited to buried lines, cable trenches, overhead lines and overhead line towers),
emergency diesel generator, the Anemometry System, the Metering System, the
Facility Monitoring System, the SCADA System and the Seller Interconnection
Facility.
BOP Works means the works to be carried out by the Operator B comprising of: (i)
Operations of the BOP; (ii) Maintenance of the BOP; (iii) Services in relation to the
BOP; (iv) Procurement of Parts, Imported Parts and Consumables in relation to the
BOP; (v) provision of Operators’ Equipment; and (vi) Extra Works.
BOP Unplanned Maintenance Cap has the meaning ascribed thereto in Section
4.1.3.3 (ii).
Civil Works means the WTG foundations and the foundations of all the BOP
equipment and structures, hardstanding, internal road on the Site, the buildings and
other civil works on the Site (including the control room building, sub-station building
and accommodation building), open and closed storage areas and the fencing on the
Site.
that in the case of each of sub-clause (a), (b) or (c) above, being made after the
Effective Date, and affects the Operators in the performance of their respective
obligations under this Agreement.
Commencement Date has the meaning ascribed thereto in Section 8.2 (Term).
Consumables mean the parts and other materials not assigned to any specific part of
the WTGs and/or the BOP and are intended for one-time use, such as grease, cleaner,
Cost means the expenditure reasonably and properly incurred (or to be incurred) by the
Operators, whether on or off the Site, including overheads, insurance and similar
charges.
Defects or Deficiencies mean the Works (or any part thereof) that fail to conform to
the Applicable Standards in any manner (including services, performance, materials,
execution, and/or workmanship in respect of such Works (or any part thereof)).
Despatch Instructions has the meaning ascribed thereto in the Energy Purchase
Agreement.
Emergency has the meaning ascribed thereto in the Energy Purchase Agreement.
Employer or Owner means the entity identified as the Employer or Owner in the
Preamble and its legal successors and permitted assigns.
Employer’s Security Procedure has the meaning ascribed thereto in Section 3.1.4.
Environment means living organisms including the ecological systems of which they
form part and the following media:
(i) air (including air within natural or man-made structures, whether above or
below ground);
(i) water (including territorial, coastal and inland waters, water under or within
land and water in drains and sewers);
(ii) land (including land under water, flora and fauna); and
(iv) any accident, fire, explosion or other event of any type involving an emission or
substance which is capable of causing harm to any living organism or the
environment; or
Environmental and Social Standards means the environmental guidelines, the IEE
Report & Approval and/or any other environmental study in each case approved by the
Relevant Authority, the commitments outlined in the Employer’s Environmental and
Social Mitigation and Management Plan dated June 1, 2019 (or any updates to this
plan) and the IFC’s Environmental and Social Performance Standards (2012), the
occupational health and safety standards and/or requirements, the Equator Principles,
the Applicable Standards, and the Pakistan Environmental Protection Act 1997.
Energy Purchase Agreement means the Energy Purchase Agreement dated November
11, 2019 executed between the Employer and the Purchaser.
EPC Contract(s) means, together, the: (i) the agreement titled the ‘Construction
Contract’ dated October 3, 2019 between the Employer and the Construction
Contractor; and (ii) the agreement titled the ‘Equipment Supply Contract’ dated
October 3, 2019 between the Employer and the Equipment Supplier, including, in each
case, all schedules and annexures attached thereto, any amendments thereto (from time
to time) and such further documents as may be expressly incorporated into such
agreements.
EPC Contractor(s) means collectively: (i) the Construction Contractor; and (ii) the
Equipment Supplier.
Equipment Supplier means Hangzhou Huachen Electric Power Control Co., Ltd (a
company incorporated under the laws of People’s Republic of China with its registered
office located at Room 2005, Unit 1, Building 2, Modern Impression Square, Puyan
Street, Binjiang District, Hangzhou, Zhejiang Province, China) and its permitted
successors and assigns.
Extended Availability Guarantee LDs means the liquidated damages that are payable
by the Operators to the Employer for failure to meet the Availability Guarantee, as
more specifically described and calculated in accordance with Section 7.1.3 and
Schedule 25 (Availability Guarantee).
Facility means the electricity generating power plant with an installed capacity of 60
MW located at the Site comprising of the WTGs and the BOP.
Fixed Monthly Payments mean the payments payable by the Employer for the Works
as specified in Section 6.1 (Fixed Monthly Payments), as adjusted in terms of the
Indexation Mechanism.
Facility Monitoring System has the meaning ascribed to the term ‘Complex
Monitoring System’ in the Energy Purchase Agreement.
Force Majeure Event has the meaning ascribed thereto in Article 15 (Force Majeure).
Forced Outage or Partial Forced Outage has the meaning ascribed thereto in the
Energy Purchase Agreement.
Goods means the Operators’ Equipment, spare parts and any components or parts
required for the performance of the obligation under the Agreement.
Grid Code means the grid code prepared by the Purchaser and approved by NEPRA
attached as Schedule 4 (Grid Code).
IEE Report & Approval means the Initial Environmental Examination Report and the
relevant Environmental Protection Agency’s determination in respect thereof, in each
case, relating to the Project attached as Schedule 5 (IEE Report & Approval).
Imported Parts mean such part(s), including Spare Parts, that are to be supplied and
transported by the Operators and imported into Pakistan for the Works.
Indexation Mechanism means the adjustments to the Fixed Monthly Payments as set
out in Schedule 6 (Indexation Mechanism).
(a) the passing of a resolution by the shareholders of such Person for the winding-
up of that Person;
(d) the appointment of a receiver for the whole or substantially the whole of that
Person’s assets; and
(e) any analogous or equivalent proceedings under the law of the jurisdiction in
which such Person is incorporated.
Intended Purpose means, in relation to the Works (or any part thereof) to be
performed by the Operators under this Agreement, such Works shall meet the
Availability Guarantee as further described in the Schedule 25 (Availability
Guarantee) and the Facility shall be fit to generate and export the electricity to the grid
(at the interconnection point) in accordance with this Agreement.
KIBOR means the ‘Karachi Interbank Offered Rate’ for PKR deposits for a period
equal to three (3) months which appears on the appropriate page of the State Bank of
Pakistan in Pakistan on the last available Banking Day.
Lapse of Consent means any Consent required from a Public Sector Entity:
(a) ceasing to remain in full force and effect and not being renewed or replaced
within the time period prescribed by the Applicable Laws of Pakistan or, where
such a time period is not prescribed by the Applicable Laws of Pakistan, within
sixty (60) business days of such Consent ceasing to be in full force and effect;
(b) not being issued, upon application having been properly and timely made and
diligently pursued, within the time period prescribed by the Applicable Laws
of Pakistan or, where such a time period is not prescribed by the Applicable
Laws of Pakistan, within sixty (60) business days of making such application;
or
(c) being made subject, upon renewal or otherwise, to any terms or conditions that
materially and adversely affect a Party’s ability to perform its obligations under
any document included within the Project Documents and/or this Agreement,
in each of the above instances despite such Party’s compliance with the applicable
procedural and substantive requirements as applied in a "non-discriminatory" (as
explained in section 12.4 of the Implementation Agreement) manner.
Lenders means the financial institutions and investment vehicles, agencies and funds
extending financing (including any refinancing) to the Employer in relation to the
Project (or any part thereof), together with their respective successors and assigns.
LIBOR means the British Bankers Association Interest Settlement Rate for dollar
deposits for a period equal to three (3) months which appears on the appropriate page
of the Reuters service at or about 11:00 a.m. in London on the last available London
banking day, or in the event that the Reuter’s service, or any successor thereto, no
longer provides such information, such other service as agreed to by the Parties that
Losses means all damage, losses, liabilities, claims, actions, costs, expenses (including
the cost of legal or professional services), proceedings, demands and charges whether
arising under statute, contract or at law.
Main WTG Components means: (i) transformer, (ii) generator, (iii) gearbox, (iv)
main shaft, (v) blade, (vi) blade bearing, and components which requires the main
crane (400 ton and above) to change.
Maintain or Maintenance of the BOP means together the Planned Maintenance and
the Unplanned Maintenance of BOP.
Metering System has the meaning ascribed thereto in the Energy Purchase Agreement.
Monitoring & Performance System(s) means the components, equipment and data
system that will be used by the Operators for monitoring of the wind turbines as per
Schedule 9 (Monitoring & Performance System).
NEPRA means the National Electric Power Regulatory Authority established under the
Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.
Notified or Notice and its grammatical variations shall mean as notified in writing.
O&M Documents means all such reports, records, plans, updated operations and
maintenance manuals, updated ‘as built’ drawings and documentation of any nature
prepared, updated and submitted by the Operators in connection with the Works to the
Employer pursuant to the terms of this Agreement.
O&M Manuals means the manuals for the Operators’ operation and maintenance of
the Works, as provided under the EPC Contract(s) and updated by the Operators in
accordance with this Agreement.
Operator means either the Operator A or the Operator B as identified in the Preamble
and its legal successors and permitted assigns.
Operating Period means the period commencing on the Commencement Date and
ending on the Performance End Date.
Operating Period Expiry Certificate means the certificate, in the form set out in Part
II (Operating Period Expiry Certificate) of Schedule 12 (Operating Period Expiry),
to be issued by the Employer in accordance with Section 8.1 (Operating Period Expiry)
following the meeting of each of the requirements of the Operating Period Expiry
Criteria.
Operating Period Expiry Criteria means the criteria to be met for expiry of the
Operating Period, as set out in Part I (Operating Period Expiry Criteria) of Schedule
12 (Operating Period Expiry).
Operating Procedures has the meaning ascribed thereto in the Energy Purchase
Agreement.
Operator’s Security Procedure has the meaning ascribed thereto in Section 4.11
(Security Procedure).
Operating Year means each period of twelve (12) consecutive months, the first such
period commencing on the Commencement Date and thereafter commencing on each
anniversary of the Commencement Date.
Overall Liability Cap has the meaning ascribed thereto in Section 13.1.
Pakistan means the Islamic Republic of Pakistan, being the country in which the Site
is located.
Parts means new or refurbished parts materials, components and other goods furnished
by each Operator, its Subcontractors, or suppliers under or pursuant to the requirements
of this Agreement.
Parent Guarantee means the parent guarantee in the form and substance attached as
Schedule 8 (Parent Guarantee) issued by the Parent Guarantor in favour of the
Employer securing the performance by the Operator A of its obligations under and in
relation to this Agreement.
Performance Bond Expiry Date has the meaning ascribed thereto in Section 7.3.3.
Performance End Date means, unless terminated earlier in accordance with Article 9
(Default, Termination), the date of expiration of this Agreement which shall be the date
on which the eleventh (11th) anniversary of the Commencement Date has occurred,
provided, however, notwithstanding any other provision of this Agreement, the each
Operator shall continue to be liable for any unperformed obligation under this
Agreement.
Person or person means any natural person, corporation, company, partnership, firm,
voluntary association, joint venture, trust, unincorporated organisation, authority or any
other entity whether acting in an individual, fiduciary or other capacity.
Price for BOP Works means the aggregate amount described in sub-clause (b) of the
term “Agreement Price”.
Price for WTG Works means the amount provided in sub-clause (a) of the term
“Agreement Price”.
PKR Fixed Monthly Payments means the PKR payments payable by the Employer
Planned Maintenance means those tasks identified as routine services and scheduled
services in relation to the WTG Works and the BOP Works as detailed in Schedule 15
(Planned Maintenance) and subject to be updated in accordance with the latest version
of the O&M Manual(s).
Progress Reports means the daily, monthly and annual progress reports and each of
the other reports and documents prepared by Operator and delivered to the Employer in
accordance with Section 4.14 (Reports & Reporting) and Schedule 16 (Progress
Reports).
Project means the Facility to be constructed and operated on the Site and shall include
all activities relating to the same.
(a) the Energy Purchase Agreement as set out in Schedule 3 (EPA) to the extent
relevant to the Works under this Agreement;
(d) the IEE Report & Approval to the extent it relates directly to the Works;
Project Management Services has the meaning ascribed thereto in Section 4.22.2.
Project QHSE Plan has the meaning ascribed thereto in Section 4.7.2.
(a) the Purchaser's grid system, employees, agents, and customers from
malfunction occurring at the Facility; and
(b) the Facility and the Owner's employees, contractors, Lenders and agents at the
Facility from malfunctions occurring on the national grid.
Prudent Utility Practices means those practices, methods, and equipment, in effect in
the international wind power industry at the time of performance of the Works, that are
commonly used by the electric utility industry and which would reasonably and
ordinarily be expected from a skilled and experienced operations and maintenance
contractor engaged in the same or a similar type of undertaking or activity under the
same or similar circumstances always having regard to engineering and operational
considerations in Pakistan to operate and maintain electric power generating equipment
lawfully and with safety, dependability, efficiency and economy applicable with
reference to wind powered projects.
Public Sector Entity means: (a) the federal government, the provincial government,
any subdivision of either, or any local governmental authority in Pakistan with
jurisdiction over the Employer, the Project, or any part thereof; (b) any department,
authority, instrumentality, agency, or judicial body of the federal government, the
provincial government or any such local governmental authority in Pakistan with
jurisdiction over the Employer, the Project, or any part thereof; (c) courts and tribunals
in Pakistan; or (d) any commission or independent regulatory agency or body in
Pakistan having jurisdiction over the Employer, the Project or any part thereof.
Purchaser means the Central Power Purchasing Agency (Guarantee) Limited or any of
its successors or assigns.
Safety or Alert Works means the works to be undertaken by the relevant Operator
following receipt of the Technical Information Letter relating to Safety or Alert
Category.
SCADA System has the meaning ascribed thereto in the EPC Contracts.
Services means any or all of the services to be performed by the Operator A and
Operator B in respect of the WTG Works and BOP Works, respectively, under and in
accordance with this Agreement.
Site means the real property upon which the Facility is located.
Site Lease means an agreement titled ‘Agreement of Lease’ dated May 13, 2019
entered into between the Employer and Land Utilization Department, Government of
Sindh and amended on October 13, 2020.
Social and Environmental Law means statutes, laws, rules and regulations of
Pakistan, including (but not limited to) all licences, permits and other Consents, which:
(i) have as a purpose or effect the protection of, and/or prevention of harm or
damage to, the Environment;
(vii) relate to: (A) Hazardous Substances; (B) health and safety matters; and/or (C)
setting standards of conduct concerning any environmental, social, labour,
health and safety or security risks.
Specific Standards means the standards, requirements and criterion set out in relation
to and applicable to the WTGs, the BOP and the Facility and the performance of the
Works as contained in Schedule 17 (Specific Standards & Specifications).
Spare Parts means all new clean and unused systems and components, tools, parts,
spare parts, capital spares, items, materials and other things of any nature that the
Employer has obtained pursuant to the EPC Contracts and/or 2 Year O&M Contract
and made available to the Operator B for performance of the BOP Works under this
Agreement in the quantity described under Schedule 29 (Spare Parts).
Subcontractors means:
(b) any person to whom a part of the Works has been subcontracted in accordance
with Section 14.4 (Subcontracting), and the legal successors in title to such
Person, but not any assignee of such Person.
System Operator has the meaning ascribed thereto in the Energy Purchase Agreement.
Technical Information Letter means the letter issued by the Operator to the Employer
to inform the Employer of any:
Temporary Works means all temporary works of any kind required for the health and
safe keeping of the Works.
Term means the period beginning on the Effective Date and ending upon the
Performance End Date.
Technical Limits means the technical limits set out in Schedule 26 (Technical
Limits).
Time and Material Rates means: (i) the Operator’s published or standard hourly rates
in effect at the time the Services are performed, applied to the number of hours of such
Services including travel time; plus (ii) reasonable travel and living expenses
(including standard per diems, if applicable); plus (iii) the published or standard price
of Parts sold by the Operator, with a mutually agreed discount, as in effect at the time
the Parts are shipped; plus (iv) the price of parts, materials and subcontracted labour
and services, including craft labour, purchased by the Operator, as shown by invoices
for the same with a reasonable mark-up of such invoices or as may be agreed between
Parties.
Transition Period has the meaning ascribed thereto in Section 9.4 (Successor to
Operator Upon Termination).
Upgrade Category means the information (other than the Safety or Alert Category)
contained in the Technical Information Letter, categorised as relating to the Operator’s
recommendations for inspection, repair and/or replacement of components or parts of
the WTGs.
USD or US Dollars means the lawful currency of the United States of America.
USD Fixed Monthly Payments mean the payments payable by the Employer for a
portion of the WTG Works as specified in Section 6.1 (Fixed Monthly Payments), as
adjusted in terms of the Indexation Mechanism.
Warranty Period means, as applicable, the Warranty Period for WTGs or the
Warranty Period for BOP as provided under Section 12.2 (Warranty Period).
Warranty Period for BOP has the meaning ascribed thereto in Section 12.2
(Warranty Period).
Worker Rights Requirements has the meaning ascribed thereto in Section 23.8.
Works means, collectively, the WTG Works and the BOP Works.
WTGs means the wind turbine generators purchased under the EPC Contracts
consisting of the wind turbine generator, nacelle, converter, cables, rotor set (inclusive
of hub and three (3) fifty-six (56) meter blades each, tube tower with ninety three (93)
meter hub height) and monitoring and performance system, condition monitoring
system and all other components and parts up to the following terminal points: (a) the
tower flange at the point connecting to foundation mounting part or anchor cage,
including the exposed nut and washer, excluding anchor bolts, leveling nuts, grout,
anchor cage, and any part imbedded in the foundation; (b) the connectors of low
voltage power cables at low voltage main distribution; (c) the connectors for the fiber
optic cable found within the wind turbine tower; (d) the connectors of modem for
telephone line (analog) or similar communication line; and (e) the connectors (i.e. fibre
optic cable, analog modem line, power) to and from the respective hardware including
each Operator’s panels and servers in the control room.
WTG Works means the works to be carried out by the Operator A comprising of: (i)
Operations of the WTGs; (ii) Maintenance of the WTGs; (iii) Services in relation to the
WTG; (iv) Safety or Alert Works with regards to Operator A’s scope for the WTGs; (v)
procurement of Parts, Imported Parts and Consumables in relation to the WTGs at all
times at the Site; (vi) utilisation of the Operators’ Equipment; and (vii) Extra Works (as
and when agreed as per Section 18 (Extra Works)).
1.2 INTERPRETATION
1.2.1 any conflict between the provisions of any Section and those of any Schedule
and Annexure, the relevant Section shall prevail;
1.2.2 the singular shall include the plural and vice versa, where appropriate;
1.2.3 the words including and includes, and any variants of those words, will be read
as if followed by the words without limitation;
1.2.7 the expressions Preamble, Recital, Article, Section, Schedule and Annexure
shall respectively mean the preamble, recital, article, section, schedule or
annexure of this Agreement;
1.2.8 headings are for convenience and shall not be used in interpretation of this
Agreement; and
2.2 RELIANCE
The Employer is relying upon the Operators expertise to perform their respective
obligations under this Agreement so that the Works remains fit for the Intended
Purpose and the Operators hereby acknowledge such reliance of the Employer.
Following the execution of this Agreement, the Parent Guarantor would execute and
issue the Parent Guarantee, as and when requested by the Employer (in writing) in the
form provided under Schedule 8 (Parent Company Guarantee). The Parent Guarantee
shall be delivered to the Employer no later than forty five (45) days upon the receipt of
the written request by the Operator A from the Employer. If the Employer requests
submission of the Parent Guarantee by the Operator A prior to the Commencement
Date, the Employer agrees to pay a fee in the amount of USD 3,480 (United States
Dollars Three Thousand Four Hundred and Eighty) per annum to the Operator A. The
Operator A hereby undertakes and covenants to maintain and keep valid the Parent
Guarantee during the term of this Agreement. The Parent Guarantee shall guarantee
and secure all obligations of the Operator A under this Agreement, including, but not
limited to, the obligation to make payment of liquidated damages. The Employer can
issue a demand under the Parent Guarantee in case of failure by the Operator A to
perform any of its obligations under the Agreement. The Operator A hereby undertakes
to maintain the Parent Guarantee valid for the term of the Agreement. In case the
Parent Guarantee is not valid, then, the Operator A shall provide a substitute Parent
Guarantee within thirty (30) days of request by the Employer.
3.1 GENERAL
The Employer shall without limiting its obligations in respect of other provisions of
this Agreement:
3.1.2 provide full access to the Site such that each Operator can comply with its
obligations under this Agreement;
3.1.4 comply with the security procedure set out in Part I (Employer’s Security
Procedure Parameters) of Schedule 19 (Security Procedure) (the Employer’s
Security Procedure);
3.1.5 provide, perform and/or make available to the relevant Operator, in a timely
manner, and at no cost to such Operator the items designated as Employer’s
Support Obligations as set forth in Schedule 20 (Employer’s Support
Obligations);
3.1.7 provide all repair and maintenance (for other than the scope falling under the
Works) includes, but not limited to, the supply and services of the Civil Works,
in a timely manner at cost of the Employer, which will be suitable for the
performance of the Works to the Operator A and Operator B.
The Employer shall keep the operation and maintenance records provided by the
Operators to the Employer. Upon a request of an Operator, the Employer shall provide
such Operator with access to review and/or copy such records at the cost of such
Operator.
The Employer’s Representative may from time to time delegate any of its
duties to assistants, and may at any time revoke such delegation. Any such
delegation or revocation shall be in writing and shall not take effect until it has
been delivered to the Operator fourteen (14) days prior to the delegate
performing such duties and confirmed by the Operator in writing within seven
(7) days.
The Employer shall cause the Employer's Representative to perform every act
required under this Agreement to be performed by the Employer's
Representative, and any obligation stated under this Agreement to be an
obligation of the Employer's Representative is deemed to be an obligation of
the Employer. The Employer is responsible to the Operator for any act, error or
omission of the Employer's Representative in the performance of its duties
under this Agreement as if they were an act, error or omission of the Employer.
4.1 WORKS
4.1.1 The Operators shall, without limiting their obligations in respect of other
provisions of this Agreement:
(ii) ensure that: (A) the Works; and (B) unless due to the action of the
Employer or Force Majeure Event, the Facility at all times remain fit
for the Intended Purpose; For avoidance of doubt, the responsibility of
fit for the Intended Purpose in as stated in this Section 4.1.1(ii) shall
not prejudice the principle that each Operator shall only bear the
liability related to its own scope of work as per the Works;
(iii) perform the Works in a manner consistent with all the O&M Manuals;
and
(iv) ensure that the Works are executed with due skill and care, in a proper
workmanlike manner with properly equipped facilities in accordance
with internationally recognized good practices and the Applicable
Standards.
4.1.2 Operations
4.1.3 Maintenance
4.1.3.1 The Operator A shall be responsible for the Maintenance of the WTGs
and Operator B shall be responsible for Maintenance of the BOP.
4.1.3.2 The Operator A shall perform the Planned Maintenance for the WTGs
in accordance with Part A of Schedule 15 (Planned Maintenance).
The Operator B shall perform the Planned Maintenance for the BOP
in accordance with Part B of Schedule 15 (Planned Maintenance).
(iv) If any component of the WTGs or the BOP (or part thereof) is
damaged or fails due to any act or omission attributed to the
Operator A or Operator B, the Operator A or Operator B (as
the case may be) shall repair or replace the damaged or failed
part at its own cost and expense.
The Operators shall be responsible for and shall perform the Safety or Alert
Works at their own risk and cost.
4.1.6 Consumables
The Operators shall, at their own cost for their respective WTG Works and
BOP Works, be responsible for procurement, transportation, delivery to Site,
supply and maintenance of all Consumables under this Agreement during the
Operating Period.
The Operator B shall, at its own cost, for the BOP Works, be responsible for
the procurement, transportation, custom clearance, insurance during
transportation, delivery, supply and maintenance of all Parts required to carry
out the Works up to the BOP Unplanned Maintenance Cap for each Operating
Year, other than Extra Works.
The Employer shall provide the Spare Parts to the Operator B, as described in
Schedule 29 (Spare Parts), on or prior to the Commencement Date.
Thereafter, in case any Spare Parts have been utilised by the Operator B during
the Operating Period, the Operator B shall refill the stock by arranging such
Spare Parts, at its own cost, up to the BOP Unplanned Maintenance Cap and
shall ensure that the Spare Parts inventory is fully maintained, as per Schedule
29 (Spare Parts), till the expiry of the Term. For avoidance of doubt, the
The Operators shall perform the Extra Works in accordance with Article 18
(Extra Works).
The Operators shall be responsible for obtaining and maintaining, at their own cost, all
Operator Permits (whether within Pakistan or outside Pakistan). The Operators shall
obtain all Operator Permits within a reasonable time taking account of the Applicable
Laws and the timelines set out in this Agreement for: (i) performance of their
respective obligations under this Agreement; and (ii) the completion of the Works.
The Operators shall continuously utilize the Monitoring & Performance System(s), in
accordance with Schedule 9 (Monitoring & Performance System), to monitor the
Facility in the performance of their obligations under this Agreement.
4.4.1 The Operators shall, in accordance with the Applicable Standards, keep
complete and accurate records and data reasonably required for the proper
administration of this Agreement for those Works performed by each Operator.
The Operators shall also ensure that such books and records are kept in the
English language and separate from their own book and records.
4.4.2 The Operators shall in accordance with the Applicable Standards maintain
(where applicable, through automated data generation, processing and
archiving capabilities of the Monitoring & Performance System(s)) accurate
and up-to-date operating log, in a format approved by the Employer, at the Site
with records and data set out in Schedule 11 (Operating Records and Data).
4.4.3 The aforesaid data shall be available for viewing and downloading by the
Employer, the Purchaser and the System Operator through secure
communication system installed and maintained by the Employer at the
Facility.
4.4.4 All such records and data shall be maintained for a minimum of sixty (60)
months after the creation of such record or data and for any additional length of
time required by any Public Sector Entity with jurisdiction over any Party
and/or the Purchaser and no Party shall dispose of or destroy any such records
or data after such sixty (60) month period unless the Party desiring to dispose
4.4.5 The Employer shall have the right, upon five (5) days prior written notice to
either of the Operators, to examine the records and data kept by such Operator
pursuant to this Agreement at any time during normal office hours. References
to records and data in this Section includes records and data created, recorded,
maintained and retrieved in electronic form.
4.5.1 Thirty (30) days prior to the Commencement Date and continuing through the
Operating Period, the Operator A shall appoint and maintain a representative
(the Operator’s Representative), assisted by the appointed representative of
the Operator B, that shall serve as the interface for the Operators with the
Employer with respect to all aspects of the performance of the Works under
this Agreement. The Operators shall not replace Operator’s Representative
without prior intimation to the Employer provided that prior to replacement of
the outgoing Operator’s Representative, the Parties shall meet to address and
minute any matters relating to the outgoing Operator’s Representative’s
activities in the Project.
4.5.2 The Operator’s Representative shall be an experienced and capable person and
a full time employee of the Operator A dedicated to directing the execution of
the Works and shall be at all times available.
4.5.3 The Operator’s Representative will be the Employer's primary point of contact
with the Operators in relation to the performance of the Works under this
Agreement. The Operators shall procure that the Operator’s Representative
provides copies to each Operator of all communications given or received by it
in accordance with this Agreement.
4.5.4 The Operator A or the Operator B shall be solely and respectively responsible
to the Employer for any act, omission or error of its own representative as if
they were an act, error or omission of the Operator A or Operator B (as the
case may be). The Representative of Operator A, with assitance of Operator B
for its respective Work, shall act as interface to Employer for the Works.
4.5.5 Except to the extent otherwise Notified by the Operators from time to time, the
Operator’s Representative shall have full authority to act on behalf of the
Operators for all purposes in connection with this Agreement, including, inter
alia, review and approval of drawing and invoices, operational decisions,
instructions and orders, reporting and advisory matters specified in this
Agreement to be carried out by the Operator, provided however, the Operator’s
Representative has no authority to amend or modify the provisions of this
Agreement unless the Operator has given written notice to the Employer of the
Operator’s Representative express authority. Except as otherwise stated in this
4.5.7 Subject to the prior notice to the Employer, the Operator’s Representative may
from time to time delegate any of its duties, powers, functions and authorities
to any competent person, and may at any time revoke such delegation. Any
such delegation or revocation shall be in writing and shall not take effect until
the Employer has received prior written Notice signed by the Operator’s
Representative and re-confirmed with the Operators, specifying the powers,
functions, duties and authorities being delegated or revoked. Any instruction,
inspection, examination, testing, consent, approval or similar act to any such
assistant of the Operator’s Representative’s delegate shall have the same effect
as though it had been the act of the Operator’s Representative and that of the
Operators. The Operator’s Representative and such persons shall be fluent in
the English language, written and verbal, for day-to-day communications.
The Operators shall Notify the Employer that an Assumption Deviation has occurred
immediately upon becoming aware of the same.
4.7 COMPLIANCE WITH APPLICABLE LAWS, PRUDENT PRACTICES & PROJECT QHSE
PLAN
4.7.1 Each Operator, subject to terms of this Agreement, undertakes to comply with
all Applicable Laws and employ Prudent Practices (where applicable) in its
performance, execution and completion of its repective portion of the Works.
Each Operator shall indemnify, defend and hold the Employer harmless from
any and all liabilities, claims, damages, costs, penalties, fines, expenses, fees
(including reasonable attorney's fees) and charges of any nature associated with
any non-compliance by such Operator of its aforestated undertaking.
4.7.2 Each Operator shall comply with the Project quality, health, safety and
environmental management procedures (the Project QHSE Plan) set out in
Schedule 21 (Project QHSE Plan).
4.7.3 Each Operator agrees that compliance with the Project QHSE Plan shall not
relieve it of its duties, obligations or responsibilities provided in this
Agreement.
4.7.4 Each Operator undertakes that it shall itself (together with its agents,
representatives, employees, contractors and Subcontractor) comply with and
that the Works shall be executed and shall be in a manner compliant with, in
4.7.5 In performing its obligations under this Agreement, each Operator shall
establish and maintain good, prudent and acceptable financial and
administrative practices, standards, procedures and controls.
4.7.6 Each Operator agrees that suitably qualified staff shall be available during the
term of this Agreement to implement the Project QHSE Plan.
4.8.1 On or prior to the Commencement Date and as part of its obligations, the
Operator A and Operator B shall respectively assist the Employer in
confirming that all operations and maintenance related documents for the
Facility (including the O&M Manuals) to be provided by the EPC Contractor
are available with the Employer and that each of the same are fully updated by
the Employer.
4.8.2 Following the Commencement Date, each Operator shall be responsible for
receiving updates on the O&M Manuals required under the EPC Contract(s)
for the manufacturers, vendors and suppliers of the various equipment,
components and systems of the Facility (including the recommendations of
manufacturers of various equipment, components, systems and parts of the
Facility in relation to Operation and Maintenance of the Facility). All updates
to the O&M Manuals shall be immediately Notified to the Employer, together
with a report detailing the impact on the Operations and/or Maintenance of the
wind turbines as a result of the same. Each Operator shall neither incorporate
any updates in the O&M Manuals nor implement the same without procuring
the written consent of the Employer.
4.10.1 Each Operator confirms that it has received copies of the Project Documents
and that it has reviewed the terms thereof thoroughly and is familiar with such
terms.
(i) observe, perform and comply with all requirements of the Project
Documents so far as they relate or apply to the Works;
4.10.3 Without prejudice to the generality of this Section 4.10 (Compliance with
4.10.4 To the extent that the same is required in connection with an Operator’s
obligations under this Agreement, the Employer shall promptly pass to such
Operator all information, documents and communications which it shall
receive from time to time.
4.10.5 Without limitation to its obligations under Sections 4.10.1 to 4.10.4, the
Operators shall at all times communicate with and provide such information
relating to the Operation and Maintenance of the Facility as is reasonably
requested by the Employer.
4.10.6 From the Effective Date and prior to the Commencement Date, the Parties shall
jointly review the Energy Purchase Agreement and the Implementation
Agreement to identify and reasonably agree on the provisions/extracts which
capture the requirements in the said agreements that relate or apply to the
Works. Such agreement on the provisions/extracts of the Energy Purchase
Agreement and the Implementation Agreement shall be a condition precedent
to the Commencement Date.
Each Operator shall comply with the Employer’s Security Procedure and Part II
(Operator’s Security Procedure Parameters) of Schedule 19 (Security Procedure)
(the Operator’s Security Procedure). Each Operator agrees to procure compliance by
its representatives, employees, contractors and Subcontractors with the requirements of
the Employer’s Security Procedure and the Operator’s Security Procedure.
The Employer bears the responsibility for the security of the Facility (including the
equipment located at the Facility) and the Site and the Security Costs in respect of the
security of the Facility, including the Site, shall be on account of the Employer. The
Employer may provide the security services through a sub-contractor by entering into
appropriate agreement(s) with the sub-contracted security provider.
4.12 INSPECTION
4.13 PROGRAMME
4.13.1 Not later than thirty (30) days before the commencement of each Operating
Year, each Operator shall prepare and submit to the Employer its proposed
Operation and Maintenance plan, in the form and substance set out in Schedule
10 (Operations), Schedule 15 (Planned Maintenance) and Schedule 22
(Programme), and programme for the following Operating Year. Each
Operator shall ensure that its proposed plan and programme is consistent with
the requirements of the Applicable Standards. Each plan and programme shall
show all relevant information in relation to the anticipated Operation and
Maintenance of the Facility on a monthly basis during the relevant Operating
Year, including all things as set out in Schedule 22 (Programme).
4.13.2 The Employer shall Notify the Operators, within fifteen (15) days of receipt of
the Operators’ proposed Operations and Maintenance plan and programme for
the upcoming Operating Year, whether the Employer accepts such Operations
and Maintenance plan and programme of the Operators or shall propose
amendments to the same; provided, however that acceptance or proposal of
amendments to the plan and programme by the Employer shall not relieve the
Operators of their obligations to perform the Works and to Operate and
Maintain the Facility in the upcoming Operating Year in accordance with their
respective obligations under this Agreement. In the event the Employer
proposes amendments to an Operator’s proposed plan and programme, the
Parties shall meet (within ten (10) days of the Employer’s proposal of such
amendments) to discuss such amendments and to mutually agree on the same.
The Employer shall not propose amendments to an Operator’s proposed plan
which impacts such Operator’s cost. In the event the Parties fail to agree on the
amendments proposed by the Employer within ten (10) days of the meetings
between the Parties, the matter shall be referred to the Independent Expert,
whose decision on the matter shall be final and binding. The costs of the
Independent Expert shall be borne by the Party against whom the Independent
Expert gives its determination or, in the event the Independent Expert’s
determination does not go against any Party, each Party shall bear the
Independent Expert’s cost equally. If the Employer fails to accept such
Operations and Maintenance plan and programme or to propose amendments
shall be strictly complied with by the Operator for performance of the Works
and the Operator shall commence and proceed with the implementation of the
Programme in accordance therewith during the Operating Year to which it
relates.
4.13.4 The Programme shall also include all major events and activities in the
preparation of O&M Documents and submission of the same to the Employer
for the review of the same by the Employer.
4.13.6 Any reports (including the Progress Report) submitted by the Operators and
covering the execution of each Operator’s obligations under this Agreement
shall emphasize any delay in the Programme.
4.14.1 Following commencement of the Operating Period, the Progress Reports shall
be prepared by each Operator and submitted to the Employer’s Representative
in writing on:
(a) a daily basis for the previous day within eight (8) hours of the
commencement of the next day (one (1) soft copy through email and a
fax copy);
(c) a monthly basis within one (1) day of the commencement of the next
month (one (1) soft copy through email) setting out only such
information as is required by the Employer for the purposes of
invoicing the Purchaser; and
(d) a yearly basis within twenty (20) days of the end of each Operating
Year (one (1) soft copy through email and two (2) hard copies),
4.14.2 Each Operator shall prepare and provide to the Employer, no later than three
(3) months prior to the end of the Operating Period (or, if this Agreement is
terminated prior to the expiry of the Operating Period, at the time of
termination) a report in the form and substance set out in Schedule 23 (End of
Term Report).
4.14.3 Copies of all reports produced or prepared during any testing, inspection,
investigation of the Works shall be provided by each Operator to the Employer
within seven (7) days of generation and preparation of the report.
4.14.4 The Operators shall provide necessary data for preparing reports that are
reasonably required by the Lenders and/or the Power Purchaser.
4.15.1 The Operators shall perform all Works in accordance with the Operating
Procedures and the Technical Limits. The Parties shall meet from time to time
to propose changes to the Operating Procedures, as changes in events and
circumstances may require.
4.15.2 The Operators shall assist the Employer in the amendments to the Operating
Procedures and shall be available for all such meetings with the Purchaser, as
required under the Energy Purchase Agreement or as may be required for any
amendments to the Operating Procedures. The Parties shall meet and discuss
such proposed amendments and, subject to agreement of the Parties and the
approval of the Purchaser, incorporate such amendments in the Operating
Procedures.
4.16.1 The Operators shall predict the availability of the wind at the Site using
statistical historic data and using such equipment as is available within the
wind turbines as of the date of such prediction and on that basis:
(b) not later than seven (7) days before the beginning of each month, the
Operators shall Notify the Purchaser and the Employer (or revise any
such information previously given) of the month ahead forecast of
estimated net output of the wind turbines in MW which the wind
turbines is likely to generate for each week of the succeeding month;
and
(c) not later than thirty (30) days before the beginning of each Operating
Year, the Operators shall Notify the Purchaser and the Employer (or
revise any such information previously given) of the Operating Year
ahead forecast of the estimated net output in MW of the wind turbines
which the wind turbines is likely to generate for each month of the
succeeding Operating Year.
4.16.2 The estimates provided by the Operators to the Purchaser and the Employer
under this Section shall not be binding on the Operators, the Employer or the
Purchaser.
4.16.3 The Employer might engage a third party Forecasting Consultant in accordance
with the Energy Purchase Agreement. In that case, The Operators shall not be
required to fulfil the obligations of Section 4.16.1, instead, the Operators shall
cooperate with the Employer in respect of the Employer’s forecasting related
obligations under the Energy Purchase Agreement. In this regard, the
Operators shall provide all necessary assistance to the Forecasting Consultant,
including providing an interface to the Forecasting Consultant for accessing the
input data, however, such assistance would exclude changing or modifying any
of the installed hardware or ensuring interface compatibility.
4.17.1 The Operators shall comply with the Despatch Instructions issued by the
Purchaser, provided, that such Despatch Instructions are consistent with the
Technical Limits.
4.17.2 The Operators shall be responsible for any direct liaison and communication
with the Purchaser regarding the Despatch Instructions. The Operators shall
keep records of all such communications and include it in each daily and
monthly Progress Report(s). Further, the Operators shall include voice
recordings of the Despatch Instructions provided by such communication.
4.17.3 The rights of (and limitations on) the Purchaser relating to the delivery of the
Despatch Instructions may be assigned by the Purchaser to the System
Operator and in such case, as notified by the Employer, the Operators shall act
The Operators shall comply with such Emergency procedures developed for the
Facility in accordance with this Agreement.
The Operator shall Notify the Employer and the Purchaser as soon as practicable after
the occurrence of a Forced Outage or Partial Forced Outage which notice shall set out
the likely cause thereof, together with an estimated time frame within which such
Forced Outage or Partial Forced Outage is likely to end on the basis of information
available to the Operator at the time. The Operator shall, periodically, update any
Notice provided under this Section on the basis of further information that may become
available to the Operator from time to time.
4.20 TAMPERING WITH THE METERING SYSTEM, THE BACK-UP METERING SYSTEM, THE
SCADA SYSTEM, THE ANEMOMETRY SYSTEM OR THE FACILITY MONITORING
SYSTEM
The Operators shall not tamper, and shall ensure that its representatives, agents,
employees, Subcontractors, vendors, suppliers and other personnel (engaged by the
Operators for the performance of the Works or any part thereof) of any tier do not
tamper, with the Metering System, the Back-up Metering System, the SCADA System,
the Anemometry System or the Facility Monitoring System. Should either of the
Operators breach the foregoing covenant, such Operator shall take all remediable
action reasonably acceptable to the Employer to ensure that such tampering does not
reoccur, including the development or addition of security systems. Furthermore, such
Operator shall be liable to make good any and all penalties and damages levied by the
Purchaser and any costs, expenses and losses suffered by the Employer, in each case
under the Energy Purchase Agreement, on account of detected tampering of the
Metering System, the Back-up Metering System, the SCADA System, the
Anemometry System or the Facility Monitoring System.
4.21.1 If:
(a) the Works fail to comply with the Warranty subject to, and to the
extent provided in, Article 12 (Warranty); or
then, the Employer's Representative may issue a written notice, to the relevant
(a) within fifteen (15) days of receipt of the Notice to Correct; and/or
submit to the Employer a remedial plan for the remedying of the Non-
Compliant Work(s).
4.21.3 In the event the remedial plan submitted by an Operator is rejected by the
Employer (including due to timelines proposed by such Operator for the
commencement and/or implementation of the remedial plan), the matter shall
be referred to the Independent Expert. If the Employer and such Operator do
not agree with the Independent Expert’s decision, such Party shall have the
right to refer the matter to arbitration in accordance with Section 21.2
(Arbitration). The costs of the Independent Expert shall be borne by such Party
against whom the Independent Expert gives its determination.
shall, in each case, be strictly complied with by the relevant Operator and the
responsible Operator shall proceed with the implementation of the Remedial
Plan so as to remedy the Non-Complaint Work in accordance with the
Remedial Plan.
4.21.5 The development, performance and implementation of the Remedial Plan shall
be solely for the account of the relevant Operator.
4.22.1 After the Commencement Date, to the extent applicable, the Operators shall be
responsible for the coordination and general management of the Works, subject
to the approval and endorsement of the Employer. Such coordination shall
include notifying the Employer and scheduling the remedying of the Defects
and Deficiencies but limited to the Works, in such case, the Operators shall
provide facilitation in shape of notifying the Defects and Deficiencies to the
Employer, thereby the Employer to interface with the EPC Contractors and/or
the 2 Year O&M Contractor (as the case may be) for obligations under the
EPC Contract and the 2 Year O&M Contract, respectively. The Project
Contractors shall require to obtain such remedial work permit (if required)
from the Operators duly endorsed by the Employer. Any availability hit due to
the performance of such remedial work by the EPC Contractor(s) or the 2 Year
O&M Contractor shall not be accounted for in the Availability Guarantee
provided by the Operators under this Agreement.
4.22.2The Operators shall also be responsible for management and progress of all
Works on the Site and performance of all obligations during the Operating
Period until Performance End Date. The Project Management Services to be
rendered by the Operators as part of the Works shall be deemed to include,
inter alia, management services such as co-ordination, supervision and
inspection of Operations and Maintenance of the Facility, activities at the Site
and Employer shall co-ordinate the activities of the EPC Contractor, their
subcontractors, the labor(s) and the Employer’s personnel/or 2 Year O&M
Contractor as per Section 4.22.1 above (collectively, the Project Management
Services).
4.23 GENERAL
The Operators shall fulfil their respective payment obligations (if any) and other
responsibilities and obligations under this Agreement.
The Operators agree to cooperate with each other and the Employer in performing their
respective obligations under this Agreement in order to undertake the Works.
The Operators shall be primarily responsible for the monitoring of the Facility by
physical presence at the Site, including an immediate physical presence at the Facility,
whenever required. The Operators shall not be relieved of their obligations to perform
the Works (that are to be performed at the Site) by sole performance of the same
through remote arrangements. The Operator A shall maintain a workforce of at least
two (2) technicians at the Site during working hours for the performance of the WTG
Works, as required. The Operator B shall have a dedicated workforce for the Project
comprising of at least nine (9) persons in total (two (2) electrical engineers, four (4)
5.1 ASSUMPTIONS
The Agreement Price has been based on the assumptions stated below:
5.1.1 the Facility will be located at Jhimpir, District Thatta, Province of Sindh,
Pakistan;
5.1.4 provision of an onsite building and relevant maintenance by the Employer; and
6.1.1 In consideration of the Works (other than the Extra Works) provided by the
Operator A and the Operator B, in any month, the Employer shall pay each
Fixed Monthly Payment to each Operator in accordance with Section 6.1
(Fixed Monthly Payments), in arrears, after each month during which the
Works have been performed. However, the first Fixed Monthly Payment by the
Employer shall be made on the date falling immediately after the
Commencement Date and similarly thereafter on each monthly anniversary,
provided invoices are issued to the Employer in accordance with this Section
6.1.1.
6.1.2 The Fixed Monthly Payments are stated in the table below and adjusted as
further described in Section 6.2 (Price Escalation).
The Fixed Monthly Payments for Operator A will be split in two (2) equal
payments consisting of USD Fixed Monthly Payment and PKR Fixed Monthly
Payment.
The USD Fixed Monthly Payments shall be as set out in the table above and be
paid in equivalent PKR (at the rate notified by National Bank of Pakistan (sell
side) of USD / PKR) prevailing on the last working day immediately prior to
the date of invoice by the Operator and shall be adjusted in accordance with
Section 6.2 (Price Escalation).
Such payment shall be made into a bank account within Pakistan designated
by the Operator upon the Commencement Date.
6.1.3 The Employer shall pay the Security Costs directly to the security
subcontractor appointed by the Employer for security of the Site and Facility as
per Section 4.11 (Security Procedure) above and any amounts so paid by the
Employer shall be in addition to the Agreement Price payable to the Operators
hereunder.
All Fixed Monthly Payments and payments following termination shall be adjusted in
accordance with the Indexation Mechanism.
The Operators shall submit monthly invoices for any Extra Work once such work is
performed and as Parts for such works are shipped. The Employer shall make payment
for such Extra Work within thirty (30) days from receipt of the relevant Operator’s
invoice(s).
The Employer shall make all payments by wire transfer to the bank account(s)
identified in writing by the Operator A and the Operator B. The Operator A or the
Operator B may request the Employer, in writing, to make any payments due from the
Employer to the Operator hereunder to any Subcontractor directly. Any such payments
made by the Employer to a Subcontractor, as per the written instructions of the
Operator A or the Operator B, shall be deemed to be amounts paid to such Operator
hereunder in respect of the relevant invoice and such Operator shall have no further
claims in respect of any such amounts.
(i) The Operator A and the Operator B shall invoice to the Employer directly for
their respective portion of the Works to the Employer for payment. Thereafter,
the Employer will make the payments to the Operator A and the Operator B
accordingly.
(ii) In consideration of the Parts and Services provided by each Operator, the
Employer shall pay each month Fixed Monthly Payment within (30) days of
receiving the relevant invoice from Operator A and/or Operator B.
(iii) Any invoices issued by Operator B shall be attached with a certificate issued
by the Operator A, stating that the Works relevant to the Operator B have been
done in the previous month. Without such certificate, the Employer shall not
make any payment to the Operator B (or any of its Subcontractors).
The Employer and the Operator A and Operator B shall pay interest on all amounts not
timely paid in accordance with this Agreement at: (i) in the case of payments in USD at
LIBOR plus two percent (2%) per annum; (ii) in the case of payments in PKR at
KIBOR plus two percent (2%) per annum, compounded semi-annually, calculated for
the actual number of days for which the relevant amount remains unpaid on the basis of
a three hundred and sixty five (365) day year. The Employer or the Operators (as the
case may be) will calculate the applicable interest if any and may include such interest
in invoices issued by them from time to time.
Unless otherwise set out in this Agreement, neither Party shall withhold, deduct or set
off any payment obligations due to the other Party against any amounts disputed by the
other Party.
6.7 PAYMENTS
Each invoice submitted by an Operator shall become due for payment thirty (30) days
after the date the Operator submits the invoice to the Employer. If the Employer finds
an error on the face of the invoice the same shall be communicated to the relevant
Operator and the corrected invoice shall be resubmitted by such Operator. The payment
for such corrected invoice shall be due thirty (30) days after the date the Operator re-
submits the invoice to the Employer.
7.1.1 The Operator hereby guarantees the meeting and achievement of the
Availability Guarantee in accordance with the provisions of Schedule 25
(Availability Guarantee). The Employer and the Operators agree to the
following:
LD=EP×AEP×(A(gwp)/ A(wp'))-1
7.1.2 The Employer is entitled to claim the Availability Guarantee LDs in the
manner specified in Section 7.1 (Availability Guarantee) and Schedule 25
(Availability Guarantee) in connection with the Works from:
(a) the Operator A and the Operator B for their respective portion of the
Availability Guarantee LDs; or
as compensation for damages and not as a penalty, for failure to meet the
Availability Guarantee.
7.1.3 In the event Availability Guarantee LDs (by way of calculation) would exceed
the Availability Guarantee LD Cap, the Employer shall be entitled to terminate
this Agreement in accordance with Section 9.2.1 (Termination for Operator’s
Default) and pursue its remedies set out therein. However, in the event that the
Operators continue to pay the Extended Availability Guarantee LDs, the
Agreement shall not be terminated.
7.1.4 In the event the Operators do not pay the Extended Availability Guarantee LDs
7.2.1 All liquidated damages payable by the Operators to the Employer pursuant to
Section 7.1 (Availability Guarantee) and Schedule 25 (Availability
Guarantee) shall be paid by the Operators within thirty (30) days from the
Employer’s issuance of an invoice claiming such liquidated damages.
Notwithstanding the provisions of Section 6.6 (No Set Off Rights), in the event
any undisputed liquidated damages are due and payable by an Operator to the
Employer, the same shall be set-off by the Employer against the next invoice
that may be received from such Operator under this Agreement.
7.2.2 It is acknowledged and agreed by the Parties that the liquidated damages
provided for in Section 7.1 (Availability Guarantee) and Schedule 25
(Availability Guarantee) are:
(i) in all respects fair and reasonable and represent a genuine pre-estimate
of the losses, damages and expenses likely to be suffered or incurred
by the Employer arising out of any breach by the Operator of its
obligations under this Agreement; and
7.2.3 In the event that the provisions for payment of liquidated damages are held
unenforceable in whole or in part, the Employer shall be entitled to recover
from the Operators direct loss and damages suffered by the Employer under
this Agreement.
7.2.4 Payment of any liquidated damages in accordance with this Section shall not
relieve the Operators from their respective obligations to Operate and Maintain
the Facility or from any other duties, obligations or responsibilities which they
have under this Agreement.
7.2.1 On or prior to the Commencement Date, the Operator B shall provide the
Employer with the Performance Bond. The Performance Bond shall be in the
amount equal to twenty (20%) percent of the annual Agreement Price for the
BOP Works, and shall secure the payment of liquidated damages by the
7.2.2 The Performance Bond shall be encashable in accordance with the terms
thereof and shall be payable on the Employer’s first written demand without
reference, recourse or any prior notice to the Operator B for encashment. The
provision and the effectiveness of the Performance Bond is also a condition
precedent to the Employer’s obligation to make any payments under this
Agreement.
7.2.3 The Operator B shall establish and furnish to the Employer a Performance
Bond for each Operating Year. Each Performance Bond shall be valid for
twelve (12) months following its issuance (the Performance Bond Expiry
Date). Fifteen (15) days prior to each Performance Bond Expiry Date, the
Operator B shall extend the validity of such Performance Bond for a further
period of twelve (12) months or replace the Performance Bond with a new
Performance Bond valid for a period of twelve (12) months, effective in each
case upon expiry of the last Performance Bond. The Performance Bond to be
established in the last Operating Year shall be maintained until the date falling
at least twenty-eight (28) days after the Employer’s issuance of the Operating
Period Expiry Certificate. Each Performance Bond shall be valid and
enforceable until its expiry. The Operator B shall ensure that each Performance
Bond, at the time of issuance or extension in validity, shall be in the amount
equal to twenty percent (20%) of the annual Agreement Price for the BOP
Works.
7.2.4 In the event of failure by the Operator B to keep valid, extend the validity of or
provide a new Performance Bond in accordance with Section 7.3
(Performance Bond), the Employer shall have the right to encash the
Performance Bond to its full outstanding value, provided, however, when the
Employer has encashed the Performance Bond in terms of this Section 7.3.4,
the Employer shall refund the encashed proceeds to the Operator B
immediately upon the Operator B establishing and furnishing to the Employer
a new Performance Bond in accordance with Section 7.3 (Performance Bond).
8.1.1 Upon the Performance End Date, each Operator’s obligations and liabilities
relating to the Operating Period for the Works shall expire.
For avoidance of doubt, the Operators shall not be responsible for carrying out
any further Operations or Maintenance works in relation to the Facility after
expiry of eleven (11) years from the Commencement Date, other than any
Works that each Operator is required to carry out in order to satisfy the
Operating Period Expiry Criteria or the Works that are required to be carried
out by each Operator under this Agreement up to the expiry of the Operating
Period.
8.1.2 The Operator shall Notify the Employer when each of the Operating Period
Expiry Criteria have been met and pursuant to such Notification shall request
the Employer for issuance of the Operating Period Expiry Certificate.
Following the Employer’s receipt of the Operators’ afore-stated Notification,
the Employer shall within thirty (30) days of receipt of such Notification,
either:
(a) upon its verification of each of the Operating Period Expiry Criteria
being met, issue the Operating Period Expiry Certificate; or
(b) reject the Operators’ request for issuance of the Operating Period
Expiry Certificate and Notify the Operators of the Operating Period
Expiry Criteria or any part thereof not being met.
If the Employer fails to issue the Operating Period Expiry Certificate or reject
the Operators’ request as aforesaid within the said thirty (30) days, the
Operating Period Expiry Certificate shall be deemed to have been issued on
the first day of the aforesaid period.
8.1.3 In the event of the Employer’s rejection of the Operators’ request for issuance
of the Operating Period Expiry Certificate in accordance with Section 8.1.2(b),
the Operators shall either:
(a) accept the Employer’s rejection for issuance of the Operating Period
Expiry Certificate, in which case each Operator shall perform its
relevant obligations under this Agreement so as to meet the Operating
Period Expiry Criteria and the procedure set out in Section 8.1.2 and
Section 8.1.3 shall be repeated, provided, however, the thirty (30) days
time period in Section 8.1.2 shall be substituted by fifteen (15) days;
or
(i) that the Operating Period Expiry Criteria is not met, the
Operator shall perform its relevant obligations under this
Agreement so as to meet the Operating Period Expiry Criteria
and the procedure set out in Section 8.1.3 shall be repeated; or
(ii) that the Operating Period Expiry Criteria is met, the Employer
shall issue the Operating Period Expiry Certificate within
three (3) business days of the Independent Expert’s
determination.
The costs of the Independent Expert shall be borne by the Party against whom
the Independent Expert gives its determination or, in the event the Independent
Expert’s determination does not go against any Party, each Party shall bear the
Independent Expert’s cost equally.
8.2 TERM
This Agreement shall become effective on the Effective Date and shall expire on the
Performance End Date. Unless otherwise set out in this Agreement, the Operators’
obligation to perform the Works shall commence upon the Commencement Date.
The Employer shall issue a written anticipatory notice of Commencement Date. Within
thirty (30) days of such notice by the Employer, the Operator A and Operator B shall
respectively issue a written notice to the Employer stating that it has accepted the
WTGs and/or BOP in the state in which the same has been delivered by the 2 Year
O&M Contractor, including normal wear and tear, where after the Employer shall
notify to the Operator, in writing, the date of commencement of the Works
(Commencement Date).
(a) details of Parts / equipment that have extended warranty going into the LT
O&M period.
(b) the details of any outstanding works / defects & deficiencies coming forward
from 2 Year O&M Contract (if possible).
No later than twelve (12) months prior to the expiry of the Term, the Employer may
Notify the Operator of its desire to extend the Term of this Agreement for a further
period of five (5) years or as may be otherwise mutually agreed. Upon such
notification, subject to Operators’ approval, the term shall be extended for a further
period of five (5) years or such other period as may have been mutually agreed.
8.4
The Employer may at any time terminate this Agreement or terminate the
Operator A or the Operator B, if in its reasonable opinion, the operations and
maintenance of the Facility is no longer possible or commercially viable
(including as a result of a material reduction in the tariff applicable for the
Project, or the termination of Energy Purchase Agreement / Implementation
Agreement not due to a default by the Operators) by giving the Operator a
Notice of termination which refers to this Section 9.1.1 (Termination at the
Employer’s Option). The Employer performing the operations and maintenance
itself or engaging a third party to do so shall not be considered a commercially
viable reason to terminate this Agreement.
(i) the Employer has failed to make due payments to the Operator (as per
the terms of this Agreement) and except for any deductions that the
Employer is entitled to make under this Agreement, following the
Operator having complied with the requirements for such payments
under this Agreement, within thirty (30) days of the Notice of the same
to the Employer by the Operator, which Notice shall be a precondition
for termination;
(b) there are other remedies available to the Operator under this
Agreement for such a material breach or material default of the
Employer; or
(vi) following expiry of the insurance policy as set out in Section 11.2.1(v),
the Employer has not remedied within thirty (30) days after Notice
from the Operator, unless such expiry of the insurance policy directly
and solely results from the Operator’s Wilful Misconduct and/or Gross
Negligence.
(b) any liquidated damages accrued that the Operator is liable for
as at the date of termination.
where:
provided, however, the amounts set out in (b) to (e) shall be subject to
review by the Employer, at its cost, of the relevant proof and
documentary evidence submitted by the Operator A.
(A) If the Employer terminates this Agreement one (1) month prior
to the Commencement date, the Employer shall pay the
Operator B three (3) months Price for BOP Works.
provided that the amounts set out in (a) shall not be payable
where the Operator B is provided three month advance notice
of termination;
The Employer may terminate the Works of either Operator under this
Agreement in the following circumstances following an Operator’s default by
giving a Notice of termination to such Operator and referring to this Section
and its reason for termination:
(d) if the Operator commits a material breach of this Agreement and fails
to remedy the same within ninety (90) days or such additional period
as may be agreed by the Employer, after Notice from the Employer to
such Operator stating such material default or material breach;
(h) the Operator subcontracts the Works or assigns this Agreement or any
other interest therein in violation of the provision of Article 14
(Assignment, Subcontracting);
(n) in the event the Availability Guarantee LDs Cap or, where applicable,
the estimate of Extended Availability Guarantee LDs determined by
the Employer, in either case, has been reached;
(o) in the event that either Availability Guarantee LDs Cap of Operator A
or Availability Guranteee LDs Cap of Operator B is reached;
(q) in the event the Parent Guarantor becomes bankrupt or Insolvent and
the Operator fails to provide a replacement Parent Guarantee or an
alternative security, acceptable to the Employer, within thirty (30)
days from the earlier of: (i) the Employer’s notice of the same; or (ii)
the Operator becomes aware of such bankruptcy or Insolvency.
where:
(ii) any liquidated damages accrued, due and payable under the provisions
of this Agreement as at the date of termination.
(ii) deliver to the Employer the Works completed by the Operator (being
terminated) up to the date of termination (including handing over of all
Works including the Parts and Consumables and replenishing the
Spare Parts) for which the Operator (being terminated) has received
payment;
(v) transfer care and custody of the Works to the Employer unless such
(vi) within thirty (30) days of the Employer’s issuance of the Notice of
termination, pay the Employer any liquidated damages for which the
Operator (being terminated) would be liable, subject to Article 13
(Limitation of Liability), if the date of termination was to be treated as
the date on which the calculation of liquidated damages were to be
made and the liquidated damages were to be paid.
9.4.2 Where the termination pertains to one Operator, and not the Agreement as a
whole, this provision shall apply mutatis mutandis, to the Operator being
terminated and such Operator shall comply with the provisions of this clause,
to the extent of its responsibility under this Agreement.
(a) completely clear the places as defined in Schedule 20 (9) (i.e. the
entire Site) and bear all costs associated therewith; and
(b) hand over unencumbered (to the extent any encumbrance is created by
or due to reasons attributable to the Operator being terminated, its
Subcontractor, or their agents, employees or representatives)
possession of the Site and the Facility to the Employer.
In the event the Operator being terminated fails to clear the Site within the
afore-stated time period, the Employer shall, in its sole and absolute discretion,
proceed with clearing of the Site and shall recover from the Operator being
terminated all costs of dismantling and clearing of the Site.
Where the termination pertains to one Operator, and not the Agreement as a
The responsibility for the Works shall transfer to the Employer or the Employer’s
designated contractor after the Performance End Date, including activities in progress
as of the Performance End Date. The Operators shall schedule all planned activities and
obligations under this Agreement so that they are concluded prior to the Performance
End Date.
9.9.1 It is acknowledged and agreed by the Parties that the termination amounts
provided for in Section 9.1.3 (Payments following termination at the
Employer’s option or Employer’s Default) 9.2.2 (Payments following
termination for Operator’s Default) are:
(a) in all respects fair and reasonable and represent a genuine pre-estimate
of the losses, damages and expenses likely to be suffered or incurred
by the non-default Party arising out of any breach by the default Party
that leads to the termination of this Agreement;
The Operators shall be responsible for the procurement, transportation and delivery to
the Site of all Parts and Consumables and any spare parts that were provided by the
Employer on Commencement Date and the Operators have consumed during the
Operating Period.
10.2.1 Each documentation, data and records generated pursuant to this Agreement
shall become the property of the Employer and title to the same shall vest in
and pass to the Employer on the later of:
(a) the date of submission of the same by the Operators to the Employer;
or
(b) the date the Employer has paid for the same.
10.2.2 Each item of the Imported Parts by the Operators shall become the property of
the Employer and title to the same shall vest in and pass to the Employer on:
(a) in case of Imported Parts relating to Extra Works, the date which is the
earlier of: (i) on which the relevant Imported Parts are delivered to the Site; or
(ii) the date the Owner has paid for the same; and (b) in any other case, when
such Imported Part is installed at the Facility.
10.2.3 Each item of the Parts (or any part thereof) (excluding Imported Parts) shall
become the property of the Employer and title to the same shall vest in and
pass to the Employer: (a) in case of such Parts relating to Extra Works, on the
date which is on the earlier of: (i) on which the relevant Parts (excluding
Imported Parts) are delivered to the Site; or (ii) the date the Owner has paid for
the same; and (b) in any other case, when such Part is installed at the Facility.
10.2.4 The Operators warrant good title to all Works and all parts thereof and to other
tools, equipment, documents, materials and supplies furnished by the
Operators, Subcontractors or their agents. The Operators further guarantees
that such title, when it passes to and vests in the Employer, as described in this
Article 10 (Delivery, Title Transfer and Risk of Physical Loss), will be free and
clear of any and all liens, claims, charges, security interests, encumbrances and
rights of other persons arising as a result of any actions or failure to act of the
Operators, its Subcontractors, or any of their employees or representatives.
10.2.5 The Operators shall retain title to any Operators’ Equipment, whether
remaining separate or attached to the Facility. The Operators shall be
responsible for transit costs and risk of loss and insurance costs for such
Operators’ Equipment to and from the Site. After the Performance End Date,
the Operators shall have the right to remove any Operators’ Equipment then
remaining at the Site.
10.2.7 The Operators shall reimburse the Employer any custom duty which was paid
by the Employer on the defective part, on such part being re-exported.
10.2.8 The Operators shall indemnify the Employer for all Losses the Employer
incurs or is likely to incur as a result of the Operators using the defective part
in a manner that is contrary to any exemptions, concessions or other benefits
granted in respect of such parts.
10.2.10 For avoidance of doubt, title to the Extra Work (including any parts supplied
as part thereof) shall pass to Employer upon payment in full of the Extra
Service Fee. Risk of loss for any spare parts included in the Extra Work order
shall pass to the Employer upon delivery of such Part to the Site, or upon
installation of the Part into the Facility (if the Extra Work includes the
applicable installation work).
10.3.1 The risk of loss or damage in relation to the Works or the Goods (excluding the
Operators’ Equipment) shall pass to the Employer upon performance of the
Works or arrival at the Site, whichever is earlier. The Employer shall maintain
insurance for this risk of loss in accordance with Clause 11 (Insurance
Coverage).
10.3.2 The Operators shall, subject to the terms of this Agreement, be responsible for
any physical loss and/or damage with respect to the Works and the Facility (or
any part thereof) from the Commencement Date until the earlier of: (a) the
Performance End Date; and (b) termination of this Agreement, to the extent of
the physical loss and/or damage caused by the Operators; to the extent of their
respective scope of work under this Agreement.
11.1.1 Within thirty (30) days prior to the Commencement Date, and throughout the
term of the Agreement the Operators shall procure and maintain the following
insurance coverage, at its own cost:
11.1.2 With regard to the insurance policy required in Section 11.1.1(iv) the Operators
or the Operators' insurers will endeavour to provide thirty (30) days (except ten
(10) days in the event of cancellation for non-payment of premium) notice to
Employer in the event of cancellation or change.
11.1.3 Upon the request of the Employer the Operators shall deliver to the Employer
certificate(s) of insurance showing that the insurance policy required in 11.1.1
(iv) are in full force and effect.
11.2.1 Within thirty (30) days prior to the Commencement Date, and throughout the
term of the Agreement, Employer shall maintain the following insurance
coverage:
(v) All Risk Property and Machinery Breakdown insurance covering the
full value of the Works and the Facility. The policy shall cover “all
risks” of physical loss or damage including coverage for machinery
(electrical and mechanical breakdown), in an amount equal to the
replacement value of the relevant property and shall include coverage
during inland transit, loading and unloading and during the installation
process and the loss of Employer’s income. The policy shall include
the Operator and its subcontractors and Affiliate for the performance
of the Works as insured parties and provide a waiver of subrogation
against those parties, unless expiry of the insurance policy directly and
solely results from the Operator’s Wilful Misconduct and/or Gross
Negligence.
11.2.2 With regard to the insurance policies required in Section 11.2.1(ii), Section
11.2.1(iv) and Section 11.2.1(v), the Employer or the Employer’s insurer shall
provide thirty (30) days (except ten (10) days in the event of cancellation for
non-payment of premium) written notice to the Operators in the event of
cancellation or change.
11.2.3 Prior to the commencement of any work under this Agreement, and at least
thirty (30) days prior to the expiry of previous insurance policies as set out in
Section 11.2.1(v) and not less than annually thereafter during the Term in
respect of other insurances as set out in Section 11.2.1, the Employer shall
deliver to the Operators a certificate(s) of insurance showing that the insurance
policies required in Section 11.2.1(ii), Section 11.2.1(iv) and Section 11.2.1(v)
11.2.4 Unless otherwise agreed in this Agreement, deductibles for the All Risk
Property and Machinery Breakdown insurance specified in Section 11.2.1(v)
shall be paid by the Operators with a limit of USD 50,000 (US Dollars Fifty
Thousand) per event, but only in respect of loss or damage for which the
Operator is responsible for in case of its negligence or wilful acts or omissions.
Failure by either Party to maintain any insurance required under this Section 11
(Insurance Coverage) shall constitute a material breach of this Agreement.
12.1 WARRANTY
The Operators warrants that the Works: (i) shall be performed in good workmen like
and diligent manner in accordance with the Applicable Standards; (ii) shall be free
from all Defects and Deficiencies; and (iii) shall be performed in accordance with this
Agreement (the Warranty).
(ii) In the case of all Parts (other than gearboxes, generators, blades,
converters and main bearings), the Operator A shall warrant on the
terms set forth herein until one (1) year after the installation of the
Part. The Operator A warrants that in case refurbished parts are used, it
shall have been refurbished by the Operator A or its original
manufacturer;
(iii) In the case of replenished Spare Parts, the Operator A shall warrant on
the terms set forth herein until one (1) year after the installation of such
Spare Part, provided that such warranty shall not extend beyond fifteen
(15) months from the date of the delivery of the Spare Part to the Site;
and
(iv) In the case of Services, the Operator A shall warrant on the terms set
forth herein until one (1) year after the performance of the Service.
Such period of time as described above with respect to Parts and Services and
as extended pursuant to Section 12.5 (Extended Warranty) shall be defined as
the Warranty Period for WTGs.
(i) In the case of Parts / Spare Parts, the Operator B shall warrant on the
terms set forth until one (1) year after the installation of the Part.
(ii) In the case of Services, the Operator B shall warrant on the terms set
forth herein until one (1) year after the performance of the Service,
12.3.1 Parts: If any Part does not meet the Warranty during the applicable Warranty
Period, the relevant Operator shall promptly notify the Employer in writing,
and shall promptly correct the defective Part. The relevant Operator shall, at its
cost, correct the defective Part, at its discretion, by repairing or replacing the
defective Part, and at its option, taking possession and title of the defective
Part(s).
Where: (i) the relevant Operator had installed the defective Part, and (ii) the
defective Part was discovered during the applicable Warranty Period, in
addition to its other obligations, the relevant Operator shall be responsible for
the costs of removing and transporting the defective Part and such costs shall
not reduce the relevant liability caps.
12.3.2 Services: if any Service does not meet the above warranties during applicable
Warranty Period for such Service, relevant Operator shall promptly notify the
Employer in writing of the same. The Operator shall thereupon correct any
defective Services by re-performing the defective Services at the cost of the
relevant Operator.
Any re-performed Service or repaired or replacement Part / Spare Parts furnished under
the Warranty shall carry warranties on the same terms as set forth above, except that
the period of Warranty on such re-performed Service or repaired or replacement Part
shall be the greater of: (i) the remaining Warranty Period; or (ii) a period of twelve (12)
month from the date of such re-performed Service or repaired or replacement Part.
In any event the period where Warranty can be claimed in respect to any Service or
repaired or replacement Part / Spare Parts and the, each Operator’s warranty related
responsibilities set forth herein for any re-performed Service or repaired or replacement
Part / Spare Parts (as the case may be) shall the same as per the Section 12.2.1
(Warranty Period for WTGs) and 12.2.2 (Warranty Period for BOP). Such warranty
related responsibilities shall end twelve (12) months after the expiry of the Term;
provided that the Operator shall only be responsible to provide replacement parts
covered under the Warranty obligations after the expiry of the Term and would not be
responsible to install such replacement parts.
12.5 EXCLUSIONS
Unless otherwise agreed under this Agreement and subject to Article 9 (Default,
Termination) and the preceding paragraphs of this Article 12 (Warranty), the remedies
set forth herein are the exclusive remedies for all claims based on failure of or defect in
the Parts and Services provided under this Agreement, whether the failure or defect
arises before or during the applicable warranty period and whether a claim, however
instituted, is based on contract, warranty, indemnity, tort/extra contractual liability
(including negligence), strict liability or otherwise. Subject to the foregoing, the
warranties and guarantees are exclusive and are in lieu of all other warranties and
guarantees whether written, oral, implied or statutory.
Except in the cases of the Operator A being liable for Gross Negligence, Wilful
Misconduct, indemnity obligations for third party bodily injury and third party
damages under and subject to Article 25 (Indemnities), pursuant to Section 26
(Patents) and where the Operator A has opted to pay Extended Availability
Guarantee LDs exceeding the Overall Liability Cap, the total liability of the
Operator A, on all claims of any kind accruing during any Operating Year,
whether in contract, warranty, indemnity, tort, strict liability, or otherwise,
arising out of the performance or breach of this Agreement, shall not exceed
the sum of (i) the aggregate of the Fixed Monthly Payments for the Operating
Year for the WTG Works it undertakes, which is specified in Article 6
(Agreement Price and Payment Terms); and (ii) any payments made to the
Operator A for Extra Works (the Overall Liability Cap of Operator A).
Except in the cases of the Operator B being liable for Gross Negligence, Wilful
Misconduct, indemnity obligations for third party bodily injury and third party
damages under and subject to Article 25 (Indemnities), pursuant to Section 26
(Patents) and where the Operator B has opted to pay Extended Availability
Guarantee LDs exceeding the Overall Liability Cap, the total liability of the
Operator B, on all claims of any kind accruing during any Operating Year,
whether in contract, warranty, indemnity, tort, strict liability, or otherwise,
arising out of the performance or breach of this Agreement, shall not exceed
the sum of (i) the aggregate of the Fixed Monthly Payments for the Operating
Year for the BOP Works it undertakes, which is specified in Article 6
(Agreement Price and Payment Terms); and (ii) any payments made to the
Operator B for Extra Works (the Overall Liability Cap of Operator B).
13.2 The liability of Operator A and/or Operator B under this Agreement shall not be
limited in respect of the following:
(ii) any social claim of violation of law including any violation of Worker
Rights Requirements.
13.3 The Operators shall not be liable for direct, indirect or consequential damages incurred
by the Employer due to any work solely undertaken by the Employer or Employer’s
subcontractors (other than the Operators).
13.4 Unless otherwise agreed under this Agreement (including with respect to the obligation
for payments agreed to be made by the Operators to the Employer) and except in the
13.5 For the purposes of this Article 13, the term "Operator(s)" shall mean Operator, its
Affiliates, Subcontractors and suppliers of any tier, and their respective agents and
employees, whether individually or collectively. The provisions of this Article 13 shall
prevail over any conflicting or inconsistent provisions contained in any of the
documents comprising this Agreement.
(i) the actual direct costs to repair or replace the damaged property; or
(ii) the deductible for which the Operators are responsible under the
Employer’s applicable all-risk insurance policy required to be obtained
and maintained pursuant to Section 11.2 (Employer’s Insurances).
14.1 ASSIGNMENT
Subject to governmental and other regulatory consents and the prior written consent of
the Employer, each Operator has the right to transfer, in whole or in part, by way of
assignment or novation, its rights and/or obligations under this Agreement to its
Affiliate provided that the Affiliate has the legal, financial and technical capability to
perform this Agreement.
The Employer shall have the right to transfer, by way of assignment or novation, to an
Employer’s Affiliate all of its rights and obligations under this Agreement, provided
that the Employer Affiliate has the legal, financial and technical capability to perform
this Agreement and is not a “Competitor of the Operator” and that such a transfer
would not cause the Operators to be in violation of any laws or regulations.
“Competitor of Operator” shall mean any person or entity which (i) is engaged in the
manufacture or sale of wind turbines or parts for wind turbines, components or
equipment similar to or of a type manufactured or sold by the Operator A and its
Affiliates, or (ii) is commercially engaged in the provision of services similar to any
services to be provided by the Operator A under this Agreement, or (iii) is an Affiliate
of a person or entity engaged in any of the activity described in (i) or (ii) above in this
Section, or (iv) is in litigation or arbitration with the Operators.
The Employer shall have the right to transfer its rights and obligations under this
Agreement to its Lenders for the purpose of security in connection with the financing
of the Facility. The Operators shall enter into a direct agreement with the Lenders and
the Employer assigning rights of the Employer to the Lenders, allowing step-in rights
to the Lenders for curing any breaches of the Employer with reasonable extended cure
periods and other provisions normally included in direct agreements for project finance
transactions.
14.4 SUBCONTRACTING
14.1.3 The Operators shall be responsible for the acts, omissions, failure to perform or
defaults of any Subcontractor, its agents or employees, as fully as if they were
the acts, omissions or defaults of the Operators, its agents or employees. Any
subcontracting by the Operators of any portion of the Works shall not release
or discharge the Operators of any of its responsibilities or obligations under
this Agreement.
(a) the following political events that occur inside or directly involve Pakistan,
which are also a Force Majeure Event:
(ii) any Lapse of Consent that shall have existed for thirty (30) consecutive
days or more; or
(c) Other events beyond the reasonable control of the affected Party, including, but
not limited to:
(ii) any Lapse of Consent that shall have existed for less than thirty (30)
consecutive days; or
(iii) any strike, work-to-rule, go-slow, or analogous labour action that is not
politically motivated and is not widespread or nationwide; or
Force Majeure Events shall not include the following events or circumstances except
and to the extent that such events or circumstances occur directly as a consequence of a
Force Majeure Event:
(ii) a delay in the performance of the Operators or any Subcontractor (including each
of their representatives, agents, executives, employees, subcontractors,
vendors, suppliers and other personnel); or
(iii) normal wear and tear or random flaws in materials, machinery and equipment; or
(i) give the other Party notice of the Force Majeure Event(s) as soon as
practicable, but in any event, not later than the later of thirty six (36)
hours after the affected Party becomes aware of the occurrence of the
Force Majeure Event(s) or four (4) hours after the resumption of any
means of providing notice between the Employer and the Operators;
and
(ii) give the other Party a second notice, describing the Force Majeure
Event(s) in reasonable detail and, to the extent which can be
reasonably determined at the time of such notice, providing a
preliminary evaluation of the obligations affected, a preliminary
estimate of the period of time that the affected Party shall be unable to
perform such obligations and other relevant matters as soon as
practicable, but in any event, not later than five (5) days after the initial
notice of the occurrence of the Force Majeure Event(s) is given by the
affected Party. When appropriate, or when reasonably requested so to
do by the other Party, the affected Party shall provide further notices to
the other Party more fully describing the Force Majeure Event(s) and
its cause(s) and providing or updating information relating to the
efforts of the affected Party to avoid and/or to mitigate the effect(s)
thereof and estimates, to the extent practicable, of the time that the
affected Party reasonably expects it shall be unable to carry out any of
its affected obligations due to the Force Majeure Event(s).
15.2.2 The affected Party shall provide notice to the other Party:
as soon as possible but, in any event, no later than five (5) days after the
occurrence of each of the events mentioned in sub-clauses (i) and (ii) hereof.
15.2.3 Failure by the affected Party to have given written notice of a Force Majeure
Event to the other Party within the thirty six (36) hour period or four (4) hour
period required by Section 15.2.1(i) hereinabove shall not prevent the affected
Party from giving such notice at a later time; provided, however, that in such
case the affected Party shall not be excused pursuant to Section 15.3 (Delay
Caused by Force Majeure Events) for any failure or delay in complying with
its obligations under or pursuant to this Agreement until such notice has been
given. If the said notice is given within the thirty six (36) hour period or four
(4) hour period required by Section 15.2.1(i), hereinabove, the affected Party
shall be excused for such failure or delay pursuant to Section 15.3 (Delay
Caused by Force Majeure Events) from the date of commencement of the
relevant Force Majeure Event.
15.3.1 So long as the affected Party has at all times since the occurrence of the Force
Majeure Event complied with the obligations of Section 15.4 (Duty to
Mitigate) and continues to so comply, then:
(i) the affected Party shall not be liable for any failure or delay in
performing its obligations (other than the obligation to make payment)
under or pursuant to this Agreement during the existence of a Force
Majeure event; and
(ii) any performance deadline that the affected Party is obligated to meet
under this Agreement shall be extended to the extent affected by the
Force Majeure Events;
The affected Party shall use all reasonable efforts and shall ensure that it and its
contractors use all reasonable efforts to mitigate the effects of a Force Majeure Event.
(a) the Operators are to incur additional Cost and/or additional time in
complying with proposals under Section (Operator’s Responsibility)
or Section 15.6 (Employer’s Responsibility); and/or
the provisions of Article 18 (Extra Works) shall apply. The Parties agree that
other than payments and extensions for performance of deadlines specifically
approved by the Employer pursuant to Article 18 (Extra Works), the Operators
shall be entitled to no other payments, compensations or extensions in
consequence of a Force Majeure Event.
15.8.1 If a Force Majeure Event occurs pursuant to Section 15.1(a) which has a
material adverse effect and such Force Majeure Event continues for a period
exceeding one hundred and seventy five (175) consecutive days or for multiple
periods which total more than one hundred and seventy five (175) days in
aggregate, either Party may give to the other a notice of termination which
shall take effect five (5) days after the giving of the notice. If, at the end of the
15.8.2 In the event this Agreement is terminated under this Section 9.1.1 (Optional
Termination, Payment and Release) the following amounts shall be due and
payable by:
(a) any liquidated damages accrued that the Operators are liable
for as at the date of termination.
provided, however, the amounts set out in (a) to (c) may be subject to
review by the Employer, at its cost, of the Operator’s relevant proof
and documentary evidence.
In the event that the Operators fail to complete the Works prior to the Performance End
Date due to the occurrence of a Force Majeure Event, the process described below shall
be followed:
(a) the Employer may request the Operators to complete the Works as Extra
Works in accordance with Article 18 (Extra Works);
(b) the Operators may accept or decline the Employer’s request, in the event the
Operators declines, such request, this Agreement shall stand terminated and
subject to this Agreement, neither Party shall be liable to the other in any
respect. In the event the Operators agree to perform such Works as Extra
Works in accordance with Article18 (Extra Works), the procedures set out in
Article 18 (Extra Works) shall apply and the term of this Agreement shall
extend until the Operators completes the Extra Works.
16.1 DEFINITIONS
Operator Taxes means any and all corporate taxes that are measured by net income or
profit imposed by any government authority of any country on the Operators, or its
Subcontractors, or personnel taxes on its employees, due to the performance of or
payment for the onshore portion of the Works.
Employer Taxes means, other than Operator Taxes, all taxes, duties (other than
customs duties), fees, or other charges of any nature (including, ad valorem,
consumption, excise, franchise, gross receipts, import, license, property, sales, stamp,
storage, transfer, turnover, use or value-added taxes, deficiency, penalty, addition to
tax, interest, or assessment related hereto), imposed by any governmental authority of
any country on the Employer or its employees, subcontractors or suppliers due to the
execution of any agreement or the performance of or payment for the Works under this
Agreement.
16.2 The Agreement Price includes the Operator Taxes, but does not include the Employer
Taxes, VAT or Sales Tax. All payment shall be made free and clear of any deductions
for taxes, assessments or other chargers however, include withholding tax (seven
percent (7%)) which shall be withhold by the Employer. The Employer shall provide
the withholding tax certicate to the relevant Operator within thirty (30) days following
the day the invoices is received by the Employer.
16.3 The contract price of Operator B shall be exclusive of WHT tax & GST. In addition, in
case of any Change in Law in respect of tax laws promulgated by the authorities, the
applicable taxes shall be adjusted upwards or downwards as principally agreed.
16.4 All fees, rates and prices in this Agreement are net prices, excluding VAT, and any
other taxes, charges, duties, fees, imposts or tariffs that may be imposed on the
Operators by any taxing authority with respect to the transactions under this
Agreement. The Employer shall pay in addition to the applicable fee, rate or price, any
such tax, charge, impost, tariff or VAT that is applicable to this Agreement or the
supply of the Services.
16.5 The Employer shall be responsible for, and shall pay directly, all Employer Taxes,
including any sales tax or value added tax. When requested by the Operators, the
Employer agrees to furnish, without charge, evidence of applicable tax or duty
exemption acceptable to the taxing or customs authorities.
16.6 The Operators shall process and place purchase orders for imported material or parts,
which are necessary for the Work, shall schedule their delivery and shall inspect these
after delivery to the Site. The Employer shall obtain, at its own risk and expense, any
import license or other official authorization or other documents to clear, where
applicable, all custom formalities necessary for the importation of imported materials
and/or Parts to Pakistan, which are necessary for the Work. The Operators will provide
16.7 The Operators shall be responsible for payment of all customs duties applicable on the
imported Consumables, materials. Any custom duties shall be payable by the
Operators. The responsibility to undertake customs clearance of any imported item,
under the title of the Employer, shall be with the Operators. The Employer shall
provide reasonable assistance to the Operators, as reasonably required, to expedite
clearance of Parts for entry into Pakistan provided, however, the Employer does not
relieve the Operators of any of its obligation to get the Parts released from the port
authorities in Pakistan.
17.1 SUSPENSION
17.1.1 The Employer's Representative may at any time Notify the Operators to
suspend the Works (any part thereof):
(a) where in the reasonable opinion of the Employer there exists any
danger to the health, safety or security of any person present at the
Site; or
During such suspension, the Operators shall carry out and perform the
Temporary Works.
17.1.2 Promptly upon providing the Operators with such Notification regarding the
suspension, the Employer's Representative shall meet with the Operators to
review the status of Works. In addition, the Employer's Representative and the
Operators shall meet to review the advantages and disadvantages of having the
Operators complete, during the suspension period, certain incomplete parts of
the Works. The Operators shall follow the Employer's Representative's written
instructions with respect to performing Works during the suspension period
and the Operators shall be paid for such Works in accordance with Section
17.2 (Consequences of Suspension).
17.1.3 The Operators may at any time notify the Employer to suspend the
performance of the obligation under the Agreement if the Employer fails to
make the payment of an amount within sixty (60) days of the due date of such
amount.
17.2.2 The Operators shall not be entitled to any additional compensations and
therefore any payment of the Costs incurred, in each case, resulting from:
(a) the Operator's failure to take the measures specified in Section 17.1.1;
or
(b) the Operator committing a material breach of its obligations under this
17.2.3 The Employer’s obligation to pay the Operators under this Agreement pursuant
to Article 6 (Agreement Price and Payment Terms) shall not cease in respect of
payments due prior to the date of suspension.
(a) have continued for more than one hundred and twenty (120) calendar
days in aggregate; and
(b) relate to the suspension of the entire Works or result in the suspension
of entire outstanding Works; and
17.4.1 After receipt of a Notification to proceed from the Employer or the Employer’s
Representative, the Operators shall, after Notice to the Employer's
Representative, and together with the Employer's Representative, examine the
Works or any part thereof affected by the suspension. The Operators shall
make good any deterioration or defect in or loss of the Works or any part
thereof, which has occurred during the suspension subject to payment of
additional compensation in accordance with Article 18 (Extra Work) and
subject to Section 17.2.2 and the Operators’ obligations under Section 17.1
(Suspension).
During the suspension of any parts of the Works the risk for the suspended
Works and additional responsibility due to suspension shall remain with the
Employer.
18.1 Extra Works mean and comprises of such Works that may be required to be
performed by the Operators as a result of the following:
(b) where the Employer proposes changes in the scope of Parts and/or Services to
be provided by the Operators under this Agreement;
(d) where the Operators has to incur additional Costs and/or additional time in
complying with proposals under Section (Operator’s Responsibility) or
Section 15.6 (Employer's Responsibility);
Extra Works shall not include Safety or Alert Works, which shall be carried out by and
at the cost of the Operators. The scope of the Safety or Alert Works will be as set out in
the Technical Information Letter.
18.2 The Operators shall immediately upon request of the Employer submit the Employer its
detailed proposals for performance of the requested Extra Work including:
(a) the details for the price of performance of such Extra Work;
(b) the time duration required for performance of such Extra Work;
(c) the effect of such Extra Works on the Operation and Maintenance;
(d) the arrangements proposed by the Operators for performance of the Extra
Works; and
18.3 Following receipt of the Operators’ proposal for the performance of Extra Works, the
Employer shall review such proposal and the Operators shall provide all such
additional information as the Employer's Representative may reasonably request for its
evaluation of the Operators’ proposal. Following the Employer’s review of the
18.4 Unless otherwise agreed between the Parties, the Operators shall not proceed with the
performance of the Extra Work until such time that:
(a) the Parties have agreed to the terms and conditions for performance of such
Extra Work; and
(b) the Employer has authorized the Operators in writing to proceed with the
performance of the Extra Works.
18.5 The Operators shall perform the Extra Works in accordance with the Applicable
Standards and such Extra Works shall be deemed to be part of the Works.
18.6 The Operators shall keep and maintain such contemporary records (as may be
necessary to substantiate its performance of the Extra Works) as may reasonably be
requested by the Employer's Representative and the Operators shall permit the
Employer's Representative to inspect all such records and shall provide the Employer's
Representative with copies as required.
18.7 All Extra Work shall be performed by the Operators at the Time and Material Rates in
effect at the time the Extra Works are performed.
18.8 The Operators shall provide the prices through documentary evidence for the purpose
of the Employer's verification.
18.9 The Operators shall provide the Employer with the above-mentioned documents in
computer readable format as well as a duly certified hard copy of the original. The
Employer's Representative shall have the right to reproduce any of the aforesaid
documents, shall be allowed to interview any of the Operators' employees with prior
notice to the Operators and shall be provided adequate and appropriate work space in
order to conduct audits in compliance with this audit provision. The Operators will not
charge for its costs incurred by it which are associated with the audit.
19.1 The Operators hereby undertakes, warrants and guarantees that the execution and
performance of the Works, shall be in accordance with the Applicable Standards. The
Operators shall not, under any circumstances, deviate from the requirements of its
afore-stated undertaking, warranty and guarantee without the Employer's prior written
approval.
19.2 If following the Effective Date, the specifications, standards, requirements and criterion
set out in the Applicable Standards are changed or any Change in Law happens, which
affects the Operators in the performance of its obligation under this Agreement
applicable on the Effective Date, then Article 18 (Extra Work) shall apply, provided,
however, in case the Operators and the Employer are unable to agree on the terms of
the payment with regards to the Extra Works, then, the Operators is not liable to
comply with the Change in Law or such change in Applicable Standards. For the
avoidance of doubt, any Change in Law claim is not subject to demonstrating
occurance of a Force Majeure under Section 15.1 (Definition of a Force Majeure
Event).
19.3 Subject to Section 19.2, if the Operators is hindered in the performance of its
obligations under this Agreement, suffers delay, incurs Cost and/or if there is any
shortfall in the Availability as a result of any change stipulated in Section 19.2 made
after the Effective Date, the Operators shall be entitled to extension of time for
performance of the obligations under this Agreement and a relief for the Operators
from the consequences of any shortfall in the Availability under this Agreement.
19.4 Where Section 19.2 applies due to a Change in Law and Article 18 (Extra Work)
applies, in case the additional amounts (and/or other terms) proposed by the Operators
in terms of Article 18 (Extra Works) are not acceptable to the Employer and the failure
to comply with the Change in Law would result in the Operators or the Employer not
being able, in each case, to perform with its obligations under the Agreement, then, the
Employer shall have the right to terminate this Agreement without any further liability
or obligation hereunder except as provided in Sections 9.1.3(ii)(b) to (e) and Section
9.1.3(B)(b) to (e).
20.1 In the scenario that the Operators jointly inform the Employer that the consortium of
Operator A and Operator B is terminated inter se the two (2) parties, the Parties shall
continue to perform their respective obligations under this Agreement provided that the
terms of this Agreement shall be deemed altered as follows:
(a) the annual Price for WTG Works shall be reduced by USD 18,000 (United
States Dollars Eighteen Thousand only) from the date of such notification for
the then ongoing Operating Year and for each Operating Year, for the
remainder of the Term; and
The Employer and the Operators will attempt in good faith to resolve any controversy
or claim of any nature arising out of or relating to this Agreement, including any
breach thereof, promptly by negotiation between senior executives of the Parties who
have authority to settle the controversy or claim. In the event a Party intends to invoke
such negotiation process, it shall give the other Party written notice of such intent and
specify in writing the specific nature of the dispute. Within fifteen (15) days of receipt
of said notice, the receiving party shall submit to the other a written response. The
executives representing the Parties shall meet at a mutually acceptable time and place
within thirty (30) days of the receiving Party's notice and thereafter as often as they
reasonably deem necessary to exchange relevant information and to attempt to resolve
the dispute. In the event such dispute is not resolved by such negotiations, the Parties
shall proceed to arbitration in accordance with Section 21.2 (Arbitration). The notices
called for within this Section shall not be deemed a substitute for any other notice
requirement set forth in this Agreement.
21.2 ARBITRATION
21.2.1 If the Parties cannot reach an agreement by negotiation, the dispute shall be
finally settled, to the exclusion of legal proceedings, by arbitration in
accordance with the rules of the London Court of International Arbitration, as
in effect on the date of this Agreement (the Rules), by an arbitral tribunal
composed of three arbitrators (unless agreed otherwise between Parties),
appointed under such Rules.
21.2.4 The award rendered shall be in writing and shall set forth in reasonable detail
the facts of the dispute and the reasons for the arbitrator’s decision. The
decision of the arbitrators shall be final and binding upon the Parties. Judgment
upon the award rendered by the arbitrator may be entered in any court of
competent jurisdiction. The Party in whose favour the award is given may
enforce such award or judgment in any jurisdiction, including any jurisdiction
where the other Party’s assets may be located. Except as the Operators and the
Employer otherwise agree in writing pending the final resolution of any
dispute in accordance with this Section 21 (Dispute Resolution), the Operators
shall proceed diligently with the performance of the Works under this
Agreement and in compliance with the Employer’s or Employer’s
Representative’s directions, respectively. Where the Work to be carried out
pending resolution of a dispute involves the Operators incurring third party
costs, such cost shall be agreed by the Parties and shall be shared on a 50:50
basis, until resolution of the dispute by Arbitration, provided, however, any
such costs incurred by a successful Party to a dispute shall be reimbursed to it
by the unsuccessful Party within fifteen (15) days of resolution of such dispute.
22.1 All documents, plans, drawings, specifications, and the subject matter contained herein
and any information, whether technical or commercial, provided by a Party hereunder
(the Disclosing Party) to the other Party hereunder (the Receiving Party) in
connection with the performance of this Agreement which is in writing or
communicated by any other means and is intimated in writing by the Disclosing Party
as being proprietary, secret, or confidential (the Confidential Information), shall be
held confidential by the Receiving Party and shall not be used or disclosed by the
Receiving Party for any purposes other than those for which they have been prepared
or supplied, unless otherwise permitted with the prior written consent of the Disclosing
Party. The provisions of confidentiality in this Section 22 (Confidential Information)
shall survive termination of the Agreement and expiry of the Term.
Such restriction shall not apply to the disclosure of Confidential Information to the
Operators’ Affiliate entities as necessary for performance of this Agreement. This
Section shall not restrict access to such information to employees of the Receiving
Party and Operators’ Affiliate entities whose access is necessary in the implementation
of this Agreement. This Section shall not restrict access to such information to the
Employer’s contractors, including the 2 Year O&M Contractor, as may be necessary in
the implementation of their work. All copies of written Confidential Information will
be returned to the Disclosing Party upon request (i) except to the extent that an item of
such information is designated to be retained by the recipient Party pursuant to a
specific provision of this Agreement; and (ii) the Operators may retain one copy of
Employer Confidential Information until such time as all its liability under this
Agreement terminates.
22.2 This Section shall not prevent the Receiving Party from disclosing such Confidential
Information of the Disclosing Party pursuant to: (a) a subpoena or judgement issued by
a court of competent jurisdiction; (b) other requirements of law or judicial or
administrative order; or (c) activities related to development, construction and
financing of Works and the Facility to the Lenders, Purchaser and Alternate Energy
Development Board, provided, however, that prior to making such a disclosure
pursuant to (a) and (b), the Receiving Party will provide the Disclosing Party with
timely advance written notice of its intent to so disclose, to the extent reasonably
practical.
22.3 The Receiving Party shall have no obligation hereunder with respect to any portion of
the Confidential Information received by it from the Disclosing Party that: (a) has been
made public, unless such Confidential Information was made public by or with the
assistance of the Receiving Party in violation of this Agreement, or other illegal or
wrongful act; (b) becomes part of the public domain by publication or otherwise, after
disclosure to the Receiving Party, unless such Confidential Information was made
public by or with assistance of the Receiving Party in violation of this Agreement; (c)
shall otherwise lawfully become available to the Receiving Party on a non-confidential
basis from a third party who has not received the Confidential Information directly or
indirectly from the Disclosing Party; (d) was or is independently developed by the
22.4 The Parties agree that, as far as possible and unless needed for the proper execution of
their responsibilities under this Agreement, they will keep confidential the terms of this
Agreement. In addition, unless otherwise required by Applicable Laws, the Operators
shall not, without the prior written consent of the Employer, issue any public statement,
press release, publicity handout, photograph or other material relating to or disclosing
in any way whatsoever to any Person other than a Subcontractor or a prospective
Subcontractor the award to the Operators of this Agreement or the scope, extent or
value of the Works, or any details as to equipment to be supplied or Services
performed, in each case by the Operators in respect of the Project, or anything
whatsoever relating to the Works or any part thereof. Without in any way restricting
the generality of the foregoing, neither the Operators nor the Employer shall invite or
permit any reporter, photographer, television camera crew, commercial radio
broadcaster or any other such Person to enter upon the Site without the express prior
written consent of the other party.
23.1 Precautions shall be taken by the Operators to ensure the health and safety of its staff
and labour. Without prejudice to the afore-stated obligation of the Operators, the
Operators hereby agrees and undertakes to abide by all requirements of the Project
QHSE Plan approved by the Employer.
23.2 The Operators shall ensure that all applicable Social and Environmental Laws,
Environmental and Social Standards and health and safety laws are complied with and
that safe working practices are implemented so as to promote a safe environment at the
Site for all employees, officers, and agents of the Operators and all of its
Subcontractors and employees engaged in the provision of Works pursuant to this
Agreement and for visitors to the Site.
23.3 The Operators shall be responsible for preparing and issuing all safety documentation
and safe working procedures for all activities relating to the Works, providing adequate
control of Hazardous Substances which are related to the Works (other than the
removal and disposal of the same from the designated area), complying with any safety
requirements reasonably requested by the Employer or imposed by the relevant health
and safety authority, promptly investigating (and where necessary under, and in
accordance with Applicable Law, and reporting to the appropriate Public Sector Entity)
all accidents or injury relating to persons in connection with the Works and providing
full details thereof to the Employer and/or any insurer in connection with this
Agreement.
23.5 If the Operators' personnel require medical attention, the Operators shall arrange for the
same at its own cost and expense.
23.6 The Employer shall ensure that the EPC Contractor establishes medical facilities and
secure housing at the Site in accordance with the requirements of the EPC Contract.
The Operators may use the facilities owned by the Employer at Site with the prior
approval of the Employer.
23.8 The Operators shall: (A) not take any actions to prevent workers from lawfully
exercising their rights of association and their right to organize and bargain
collectively; (B) observe applicable laws relating to a minimum age for employment of
children, acceptable conditions of work with respect to minimum wages, hours of
work, and occupational health and safety; (C) not use forced or compulsory labor,
including, but not limited to any form of slavery, debt bondage or serfdom; (D)
explain, document, and make available in writing and orally to each worker,
information regarding all of their working conditions and terms of employment,
including their entitlement to wages and any benefits, prior to each worker
commencing work; (E) not employ persons, formally or informally, under the age of
fifteen (15) for general work and under the age of eighteen (18) for work involving
hazardous activity, which is work that, by its nature or the circumstances in which it is
(a) The Operators shall use all reasonable efforts, including remediation, to cure or
to cause the relevant Subcontractor to cure, or prevent the recurrence of, any
non-compliance or potential non-compliance with the Worker Rights
Requirements.
(b) The Operators shall comply with the requirements of the action plan, attached
hereto as Schedule 27 (Environmental and Social Action Plan).
24.1 The Operators shall be responsible for collecting, disposing and removing all
Hazardous Substances produced or generated at the Site due to the Works or otherwise,
other than any Hazardous Substances that are brought on the Site by the Employer.
24.2 The Operators shall indemnify and hold the Employer harmless for any and all claims,
damages, losses, causes of action, demands, judgments and expenses arising out of or
relating to the presence of any Hazardous Substances which are: (i) improperly handled
or disposed of by the Operators; or (ii) brought on to the Site or produced or released
thereon by any person other than the Employer.
24.3 The Employer shall be responsible for all Hazardous Substances produced or brought
at the Site by the Employer and shall indemnify and hold the Operators harmless for
any and all claims, damages, losses, causes of action, demands, judgments and
expenses arising out of or relating to the presence of any Hazardous Substances
mentioned in this sub-clause.
The Operator A and Operator B shall, to the extent of the respective WTG Works and
the BOP Works under the Agreement, indemnify and keep the Employer, its directors,
employees, officers, and agents fully and effectively indemnified at all times against all
Losses suffered or incurred by the Employer as a result of or in connection with a
material breach of this Agreement by the Operator or the negligence, wilful default or
fraudulent misrepresentation of the Operator, its directors, employees, officers, agents
or Subcontractors, (other than to the extent that the Employer has recovered an amount
in respect of such Losses under a policy of insurance or under an indemnity from any
other person), including, without any limitation, as a result of any claim:
(i) bought against the Employer arising out of a material breach of Section 4.10.2;
(iii) in respect of death or personal injury or other health and safety liability; or
which may be brought or alleged or threatened against the Employer or any of its
directors, employees, officers and agents by any person, in each case save to the extent
attributable to any negligence, wilful act or material breach of this Agreement by the
Employer, its directors, employees, officers or agents, or anyone directly or indirectly
employed by any of them.
The Employer shall indemnify and keep the Operators, their directors, employees,
officers, and agents fully and effectively indemnified at all times against all Losses
suffered or incurred by the Operators as a result of or in connection with a material
breach of this Agreement by the Employer or the negligence, wilful default or
fraudulent misrepresentation of the Employer, its directors, employees, officers, agents
or subcontractors (other than to the extent that the Operators have recovered an amount
in respect of such Losses under a policy of insurance or under an indemnity from any
other person), including, without any limitation, as a result of any claim:
(ix) in respect of death or personal injury or other health and safety liability; or
which may be brought or alleged or threatened against the Operators or any of its
directors, employees, officers and agents by any person in each case save to the extent
attributable to any negligence, wilful act or material breach of this Agreement by the
Operators, or its directors, employees, officers or agents, or anyone directly or
indirectly employed by any of them.
25.4 NOTICE
The indemnities provided in this Article 25 (Indemnities) shall apply only if the Party
seeking indemnity gives the indemnifying party prompt notice in writing of any claim
and provides the indemnifying party all necessary information and assistance so that
the indemnifying party may, at its option, defend or settle the claim. The indemnified
party shall not settle any third party claim without the approval of the indemnifying
party on the settlement amount.
“Third parties” under this Article 25 (Indemnities) do not include the Parties, their
affiliates, agents, successors or assigns, any operation or maintenance contractor of the
Parties, or any entity: (i) with an equity or security interest in either Party, or their
assets or property; (ii) that seeks to claim any rights, power or privileges of one of the
Parties; or (iii) that seeks to claim as a third party beneficiary of one of the Parties. No
portion of the Facility is considered “third party property” for the purposes of this
Article 25 (Indemnities).
The duty to indemnify under this Article will continue in full force and effect
notwithstanding the expiration or termination of this Agreement, with respect to any
loss, liability, damage or other expense based on facts or conditions which occurred
prior to such expiration or termination.
26.1 The Operators agrees to indemnify and hold harmless the Employer from any claims of
any third party that any Parts furnished hereunder infringe any patent in effect. If the
Employer promptly notifies the Operators of the receipt of any claim and does not take
any position adverse to the Operators regarding such claim and gives the Operators
information, assistance and exclusive authority to settle and defend the claim, the
Operators, at its expense and option, shall either settle or defend the claim or any suit
or proceeding and shall pay all damages and costs awarded against the Employer. In
the event of any such claim, the Operators may also: (i) procure for the Employer the
right to continue using the Part; (ii) modify the Part so that it remains in accordance
with the Applicable Standards and becomes non-infringing; (iii) replace the Part with
non-infringing Parts that are in accordance with the Applicable Standards. If, in any
suit arising from such a claim, the continued use of the Part for the purpose intended is
forbidden by any court of competent jurisdiction, the Operators shall, at its costs and
option, take one or more of the actions under (i) (ii), or (iii) above. The foregoing states
the entire liability of the Operators for patent infringement of any Parts.
26.2 Section 26.1 shall not apply to: (i) any Part which is altered or modified or misused by
any person or party other than the Operators; or (ii) the use of any Parts furnished
under this Agreement in conjunction with any other apparatus or material not furnished
by the Operators or its Subcontractors under this Agreement or the EPC Contractor or
its subcontractors under the EPC Contract. As to any Parts or use described in the
preceding sentence, the Operators assumes no liability whatsoever for patent
infringement.
27.1.1 neither Party nor its Affiliates have committed any Sanctionable Practice nor
have they directed any person to commit any Sanctionable Practice on their
behalf in connection with the Project;
27.1.2 it is a company duly incorporated and validly existing under the laws of its
registered place;
27.1.3 it has full power and authority to enter into this Agreement and to carry out its
respective obligations under this Agreement;
27.1.4 it has not granted to any third party any rights which are inconsistent with the
rights granted under this Agreement;
27.1.5 the entry into and performance of this Agreement does not and will not conflict
with any Applicable Law in effect on the date of this Agreement;
27.1.6 the entry into and performance of this Agreement requires no governmental or
other approvals, or if required, all such approvals have been obtained;
27.1.7 the entry into and performance of this Agreement does not and will not conflict
with any document which is binding upon it or any of its assets to the extent
that such conflict would be reasonably likely to have a material adverse effect
on the ability of the Party to perform its obligations under this Agreement;
27.1.8 it has not taken any action nor, to the best of its information and knowledge,
after making all due enquiry, have any steps been taken or legal proceedings
been started or threatened against it for winding-up, dissolution or re-
organisation, the enforcement of any security interest over its assets or for the
appointment of a receiver, administrative receiver or administrator, trustee,
judicial factor or similar officer of it or of its assets;
27.1.10 it has reviewed the Project Documents (either in executed or final form) and
has satisfied itself with the contents thereof in order to perform its obligations
27.1.11 it has at all times complied with all Applicable Laws to which it may be
subject with respect to the Project.
27.2.1 the Operator shall not (and shall ensure that none of its Affiliates or any agent
or delegate shall) commit any Sanctionable Practice or direct any person to
commit any Sanctionable Practice on its or their behalf in connection with the
Project;
27.2.2 the Operator shall not commit, and its obligations hereunder and as required
under the Grid Code shall not result in, any adverse effect on the voltage level
or voltage waveform;
27.2.3 it shall ensure that all consents, authorisations, registrations and filings
required to be obtained by the Operator in connection with the execution,
delivery or performance of this Agreement will have been obtained as and
when required by Applicable Law or this Agreement (whichever is earlier);
27.2.4 it shall assist the Employer with obtaining the required Employer Permits by
providing all relevant information requested by the Employer.
27.2.7 will not during the term of this Agreement grant to any third party any rights
which are inconsistent with the rights granted under this Agreement;
27.2.10 it shall service and Maintain the Facility, and perform its obligations under this
Agreement, in accordance with Applicable Standards;
27.2.11 it shall use its reasonable endeavors to improve the production of electricity
beyond the Availability Guarantee;
27.2.12 it will comply with the Applicable Standards with respect to the Project;
27.2.13 it will pay all applicable taxes and duties (other than those which the Employer
27.2.14 it will comply with all Applicable Laws to which it may be subject with
respect to the Project; and
IF TO THE EMPLOYER
IF TO OPERATOR A
IF TO OPERATOR B
Such notices shall be deemed to have been given when delivered in the case of in-hand
delivery, on the date shown by a facsimile transmission report or confirmation in the
case of successfully completed facsimile transmission, on the date shown by an
electronic mail transmission in respect of e-mail and on the date of delivery in the case
of delivery service. Either Party may modify its address for notices by advance written
notice to the other Party delivered in conformance with this Article 28 (Notices).
The provisions of this Agreement are for the benefit of the Parties hereto and not for
any other or third party. Nothing in this Agreement confers or purports to confer on any
third party any benefit or any right to enforce any terms of this Agreement pursuant to
the Contracts (Rights of Third Parties) Act of 1999.
The Employer and the Operators are each independent of the other and nothing in this
Agreement is intended, or shall be deemed, to create a partnership or joint venture of
the Parties.
32. AMENDMENTS
The Operators shall cooperate on a best endeavours basis with the Employer and the
Lenders or its advisors to meet all reasonable requirements of Lenders including
executing a direct agreement with the Lenders, in a form satisfactory to the Lenders
and mutually agreed by Operators and Employer.
33. INVALIDITY
The invalidity in whole or in part of any portion of this Agreement shall not affect the
validity of the remainder of this Agreement and in such a case of invalidity the Parties
shall endeavour in good faith to modify the invalid provisions so as to carry out as
nearly as possible the original intent of the Parties in a legally enforceable manner.
The rights and remedies set forth in this Agreement are the exclusive rights and
remedies of each Party with respect to this Agreement, its performance or breach.
35. LANGUAGE
The language of this Agreement, and all documents, materials and training, if any, to
be supplied by the Operators under this Agreement shall be English.
36. SURVIVAL
In the event the Parties fail to mutually agree on the appointment of an Independent
Expert, the matter of dispute at stake that shall have been resolved by the Independent
Expert, shall be finally settled in accordance with Section 21 (Dispute Resolution).
Notwithstanding anything to the contrary contained in this Agreement, the Parties shall
be permitted, subject to mutual agreement between the Parties, to over-rule, set aside or
nullify any decision, determination and/or certification issued/provided by the
Independent Expert pursuant to the terms of this Agreement.
This Agreement shall be governed by and construed in accordance with the laws of
England without regard to its choice of laws rules.
39. COUNTERPARTS
This Agreement may be signed in counterparts with the same effect as if all signing
Parties had signed the same document. All counterparts shall be construed together and
constitute one and the same agreement.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the date first
above written.
THE EMPLOYER
Name:
Designation: ………………………………..
IN THE PRESENCE OF
WITNESSES: SIGNATURE
1- Name:
Address:
CNIC / Passport No: ………………………………..
2- Name:
Address
CNIC / Passport No: …………………………………
IN THE PRESENCE OF
WITNESSES:
2- Name: XU Ke SIGNATURE
Address: Siemens Center Beijing F12 No.7
South Wangjing Zhonghuan Road
Chaoyang District Beijing China 100102
CNIC / Passport No:G57851075 ………………………………
Name:
Designation: ………………………………..
IN THE PRESENCE OF
WITNESSES: SIGNATURE
1- Name:
Address:
CNIC / Passport No: ………………………………..
2- Name:
Address
CNIC / Passport No: …………………………………