Licensing

Article 1

Definitions

The following words and phrases will have the meaning given to them in document.

  1. Law: means the Electricity Law.
  2. Authority:  means the Electricity Regulatory Authority.
  3. License; means permission of operation to the Licensee either for production, transmission, distribution, export or import. Or more than one of the above which shall be specified expressly in this document.
  4. Licensee ; means ( Name of the company)
  5. Regulations: means putting into practice the electricity law.
  6. Procedures: means the rules which is going to be developed by ERA from time to time but shall not be in contradiction with the provisions of the Law and Regulations.
  7. License: means permission to operate in the Energy sector within the legal framework and in existence of the Law and Regulations.

 

Article 2

Application of Rules

This License is issued subject to the provision of the Electricity Law, Regulations and Procedures which may be amended from time to time by the ERA.

Article 3

General Facilities

3.1 The location, size (capacity in MW), technology, interconnection, arrangements, technical limits, technical functional specifications and other details specific to the power generation facilities of the Licensee are set out in this License.

3.2 The net capacity of the Licensee’s generation facilities is set out hereto.

3.3 The Licensee shall provide the final arrangement, technical and financial specifications and other details specific to generation facilities before commissioning of the generation facilities.

 

Article 4

Term of License

4.1   The License is granted for a term of (25) years after from the date of the issuance of the License. 

Note: We shall bear in mind the time in which the plant is constructed. Either we shall add that time to the License Term or we shall begin validity of the License from the Commercial Operation Date.

4.2 Unless revoked earlier, the Licensee may (90) days to the expiry of the term of the License, apply for renewal of the License under the Electricity Law.

 

Article 5

License fee

After the grant of the License, the Licensee shall pay to the Authority the License fee, in the amount and manner and the time set out in the Procedures

 

Article 6

Tariff:  The Licensee shall only charge such tariff which has been approved or specified by the Authority.

 

Article 7

Competitive Trading Arrangement

7.1 The Licensee shall participate in such measures to be in compliance with the Competition Law or provisions of the Electricity Law. The Licensee shall in good faith work towards implementation and operation of the aforesaid Competitive Trading Arrangement in the manner and time period specified by the relevant institutions. Provided that, any such participation shall be subject to any contract entered between the Licensee and another party with the approval of the Authority.

7.2 Any variation in the above-mentioned contracts for allowing the parties thereto to participate wholly or partially in the Competitive Trading Arrangement shall be subject to mutual agreement of the parties thereto and such terms and conditions as may be approved by the Authority.

 

Article 8

Maintenance of Records

Copies of records and data shall be retained in standard and electronic form and all such records and data shall, subject to just claims of confidentiality be accessible by authorized officers of the Authority.

 

Article 9

Compliance with Performance Standards

 

The Licensee shall conform to the relevant ERA rules on performance standards as may be prescribed by the Authority from time to time.

 

Article 10

Compliance with Environmental Standards

The Licensee shall conform to the environmental standards as may be prescribed by the relevant competent authority from time to time.

 

Article 11

Provision of Information

11.1 The Licensee is obliged to provide information to the Authority in accordance with the enacted and permitted relevant law of the country.

11.2 The Licensee shall be subject to such penalties as may be specified in the relevant legal documents in enforcement by the Authority. Failure to provide such information as may be required from time to time by the Authority and which is or ought to be or has been in the control or possession of the Licensee.

 

Article 12

Compliance

The Licensee shall be subject to the enactment of the relevant laws and regulations or any changes may be brought to the procedures by the Authority.

 

 

APPLICATION CONDITIONS

AND

APPLICATION FORM

FOR THE ISSUANCE OF

AN ELECTRICITY GENERATION LICENSE

BY

MINISTRY OF ENERGY AND WATER (MEW)

 

 

Valid from February 1, 2014 to January 31, 2015

 

 

Ref.No:…………………..

 


APPLICATIONCONDITIONS

Purpose of the form

  1. This form is to be completed by:
    1. Any Person representing anEnterprise under the Private Investment Law of Afghanistan and as defined by the Law on Electricity Services. In the event of conflict between the provisions of the Law on Electricity.
    2. Any Person willing to undertake the investment at its own financial risk in compliance with the conditions of the Law on Electricity and with other applicable laws of Afghanistan.
    3. Any Personsubmitting applications for the issue of license to produce electricity by any means to the MEWRegulatory Authority. Further understanding as “the Regulatory Authority”.
    4. Any Person representing an Electricity Enterprise owned by a private investor(s) or by a joint venture between the Government of Islamic Republic of Afghanistan (GIRoA) and private investors that owns or operates an Electricity Facility for the generation of electricity
  2. The application form has to be done as instructed by the Regulatory Authority. The Regulatory Authority requires using the “License Application Form” attached to this document.

General Conditions

  1. Issuance of an Electricity Generation License means authorization for a Person (as defined by the Law on Electricity Services) to provide specified electricity services or other specific activities provided for by the Law on Electricity Services. The Regulatory Authority may require some additional provisions related to maintenance of technical standards or other matters.
  2. The license applicant(s) shall list all relevant and available information requested in the form attached to this document and attach any additional information when required by the Regulatory Authority.
  3. The license applicant(s) must take all reasonable steps to ensure the information provided in the application form is complete, true and correct and are required to make a declaration to that effect in the application form. Failure to disclose information or misrepresent any matter relevant to such information may result in a license not being issued or in the suspension or cancellation of a license at a later time.
  4. The license applicant(s) are responsible for providing theRegulatory Authoritywith current, accurate and relevant documentation. This will ensure that the application is processed promptly and without delay. All license applications are assessed on a case-by-case basis. If insufficient information is provided with an application, the Regulatory Authority will request additional information to be submitted before the license application is considered further.

License Conditions

  1. The license applicant(s) has to comply with the set of technical rules/codes issued by theRegulatory Authority, which set forth the standards for metering reliability, safety, comprehensibility, and access to, ownership of, and other matters related to meters installed at the interface between and amongGeneration Licensee and transmission, and distribution facilities or any Customer. Wherever possible the Metering Code will refer to ANSA accepted international standards instead of including technical details in the Metering Code itself.

Further Information

  1. TheRegulatory Authority may ask the license applicant(s) who have submitted an application form to provide further information or to clarify the information that have already been provided.

Confidentiality and consultation

  1. If the license applicant(s) believe that the information provided is confidential then the license applicant(s) have to write or mark “this information is confidential” to any such information. It is the license applicant(s) responsibility to ensure that the confidential section is clearly highlighted on the form. The license applicant(s) have to provide a “non-confidential” version of the form that can be published by theRegulatory Authority (for example on its website).
  2. TheRegulatory Authority will consult with relevant government, industry and consumer groups in the conduct of its licensing functions through a public consultation process. Consequently, the license applications and/or supporting information, which are not confidential, will be made available on theRegulatory Authority’s website and in hard copy.
  3. The license applicant(s) shall send their completed application form in writing and/or electronically:

In writing to:               Electricity Regulatory Authority, MEW

Darlaman Rd, Darlaman, Kabul

 

Web :  www.mew.gov.af 

Electronically to:         electricity-regulator@mew.gov.af

 

 


Generation License Application Form

 

  1. APPLICANT
    1. Identity of Applicant

State the full name of the applicant. The applicant is the person who will be undertaking the electricity generation operations that will be the subject of the license. Joint applicants should each complete an application form, and submit their application forms at the same time, with a covering letter explaining that a joint application is being made.

Name:  …………………………………………………………………………………………

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  1. If the applicant intends operating more than one generation station under the         proposed license, please complete separate application forms for each generation station.

 

  1. Legal Identity of Applicant

Provide information about the applicant (where the applicant is private limited company or partnership, etc.). If the applicant is a body corporate, also state the jurisdiction in which the applicant is registered. Under the commercial/company laws or factory act / company act of Government of Islamic Republic of Afghanistan

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  1. Address and Contact Detail of Applicant

Business Address (Include all – postal address, phone, fax, email, website address):

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  1. Contact Person on License Fee

The full name, title and contact details of a person/Company to whom the ERSD can direct inquiries and correspondence about license fee. Include all – postal address, phone, fax, email.

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  1. Applicant Organizational Structure

Attach the organizational chart, including composition of the board of Directors, management team and other key personnel responsible for the key functions of the business (include all which is applicable).


 

  1. LICENSE
    1. Date from which the License will Apply

State the expected Commercial Operation Date. The license is only valid from the date it is issued.

  1. Expected Commercial Operation Date:

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  1. Expected License issued Date:

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  1. General description of Generation Station

Applicants for Electricity generation license must state the location of the Electricity generation plant, the expected name plate capacity of the generation plant, the type of generation and some details about how the generator is to be connected to the network.  Applicants for Solar Hydro/ wind generation license must attach a map showing the location of the wind turbines or topographical map to the scale of 1:10,000 or 1:25,000; and in addition may provide the GPS locations as well.

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  1. Name of Generation station

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  1. Geographical Location

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2.2.3. Climatic Condition at the Location

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  1. Names and Addresses of the  Officers

State the names and addresses of the officers of the applicant.  “Officers” of the applicant include the applicant’s directors and secretary, and other persons who make or participate in making decisions that affect a substantial part of the business of the applicant (Attach if additional space is needed).

Full Name:  ……………………………………………………………………………………

Date of Birth:  ……………………….  Office Held: …………………………………………

Address:  ………………………………………………………………………………………

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Full Name:  ……………………………………………………………………………………

Date of Birth:  ……………………….  Office Held: …………………………………………

Address:  ………………………………………………………………………………………

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Full Name:  ……………………………………………………………………………………

Date of Birth:  ……………………….  Office Held: …………………………………………

Address:  ………………………………………………………………………………………

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Full Name:  ……………………………………………………………………………………

Date of Birth:  ……………………….  Office Held: …………………………………………

Address:  ………………………………………………………………………………………

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  1. Names and Addresses of the Key Shareholders or Investors

State the names and addresses of the major shareholders of the applicant (Attach a sheet if additional space is needed):

Full Name:  ……………………………………………………………………………………

Date of Birth:  ……………………….  Office Held: …………………………………………

Address:  ………………………………………………………………………………………

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Full Name:  ……………………………………………………………………………………

Date of Birth:  ……………………….  Office Held: …………………………………………

Address:  ………………………………………………………………………………………

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Full Name:  ……………………………………………………………………………………

Date of Birth:  ……………………….  Office Held: …………………………………………

Address:  ………………………………………………………………………………………

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Full Name:  ……………………………………………………………………………………

Date of Birth:  ……………………….  Office Held: …………………………………………

Address:  ………………………………………………………………………………………

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  1. Address of Generation Station

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  1. Human Resources Available

Provide information about the human resources available to the applicant and necessary for the implementation of the Project in question. This includes the experience and qualifications of those employees outlined in the organizational chart and if the applicant will employ contractor/s to assist with the licensed operations, the name of that/those contractor/s, details about the experience of the contractor/s in such operations and details of the processes in place to ensure the contractor/s complies with the regulatory obligations imposed by the license. Attach a sheet if additional space is needed

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  1. Type of Generation Station (gas turbine, Solar, hydro, wind, etc.)

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  1. The Installed Capacity in MW

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2.5.2.1. The installed Capacity in MW

 

----------------------------------------------------------------------------------------------------------------2.5.2.2 Potential in MW Give Potential available for study from MEW/ Any other reputed Agency /by the company itself, if conducted /available.

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  1. Expected Future Life time of the Generation Station/Equipment

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  1. Description of Operations
    1. Long term arrangement for fuel

Name(s) of Energy Resources supplier (if applicable) and contractual arrangements (please attach copy of agreement(s)):

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  1. Long term arrangement for Operation and Maintenance

Name(s) of Generation Equipment suppliers (if applicable) and contractual arrangements for Operation & Maintenance (O&M), please attach copy of contract agreement(s):

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  1. Decommissioning cost

Provide details of any proposed major maintenance programmers, including the expected cost and duration, covering the next six years from project start.  The Project proposals to ERSD should define the expected availability, planned outage rate and forced outage rate of the plant over the first five years of operation along with.

  1. The details of any major decommissioning costs expected during the life span of the power station and provided for in the project feasibility study.

 

  1. The details of major generation station expansion and modifications planned for in the feasibility study (Dates, Costs in USD/Afghani with considered conversion rates description)

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  1. Existing Purchase Power Agreements (PPA) with customers ,if any (Attach copies of PPA)

Name(s) of primary consumers:

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  1. Network Connection /Project details (grid evacuation ,connection points, voltages, wheeling arrangements, a  single line diagram)

Provide short description of Network Connection/Project details and attach single line diagram:

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  1. Expected and proposed major maintenance

Programs/schedules

Provide short description of expected and proposed major maintenance, programs/schedules and how the generation licensee handles electricity supply during these maintenance programs and during breakdowns:

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  1. SUITABILITY OF LICENSE APPLICANT
    1. Applicant Capability to Hold License

The ERSD may consider the applicant’s previous commercial performance and search if the applicant was the subject of any administrative or legal actions. The ERSD requires disclosure of such information. Failure to disclose such information or misrepresent any matter relevant to such information may result in the cancelation of a license application process or in revoke of the existing license.

Please disclose any relevant information to the above paragraph (if needed use attachment a separate sheet as):

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  1. Applicant Business Reputations

Please disclose any relevant information or use separate sheet as attachment:

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  1. Financial Resources Available to the Applicant

Provide information about the financial resources available to the applicant. List all of your attachments:

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Please also enclose:

  1. Copies of all audited profit and loss statements and balance sheets for the last three financial years. Or Bank Statement for the last 3 years, A bank guarantee or an undertaking by a corporate registered company to repay in case of default

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  1. Financial or other responsible officer declaration that the financial statements comply with accounting standards, that there are reasonable grounds to believe the company/entity will be able to pay its debts.

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  1.  Key officer’s report and the audit opinion.

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If the applicant is a subsidiary company, please also provide:

  1. Copies of all audited profit and loss statements and balance sheets of the applicant’s parent company for up to the last three financial years.

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The applicant should also submit copies of:

  1. Business plans including at least strategic direction and objectives, identified opportunities in the market place and forecast results.

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  1. Evidence of capital and liquidity support in place, including any bank or cross guarantees, to support the business.

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  1. Additional Details on Contractual Arrangement

If the applicant is part of a group of related companies, and/or party to a partnership, joint venture or alliance agreement with another company, then provide contractual arrangements (e.g. alliance contracts, associate contracts, establishment contracts) that define relationships within the group – including shared resources, guarantees, revenue flows, obligations and or responsibilities.

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  1. Technical Resources Available

Applicants for a generation license have to provide details about the availability of technical resources to be used in carrying out the operations for which a license is requested.  The information should include details about the technically qualified staff available to the applicant and (if relevant) details of experience gained in similar operations.

Where applicants are relying on a third party to provide staff and resources to meet the technical requirements of the generation license, please provide:

  • a list of all functions and activities being proposed to outsource;
  • details of any formal agreement/s to provide services, including confirmation that the third party possess relevant technical competencies to conduct the proposed activities;
  • a summary of the third party’s technical capacity to meet relevant obligations, including relevant accreditations; and necessary on job trainings
  • A summary of the third party’s experience and knowledge in the relevant area. And internal capacity building program of the company.
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  1. Quality of Electricity Produced

The ERSD may not issue a generation license unless it is satisfied that the generating plant (or proposed generating plant) will generate electricity of the appropriate quality for the relevant transmission or distribution network or customers.  The ERSD will be satisfied that the electricity is of an appropriate quality if the applicant has entered into a connection agreement which meets the ERSD code requirements with the licensed operator of the relevant transmission or distribution network or customer. 

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  1. Quantity of Electricity Produced

Maximum electricity generation capacity (MW) expected to be available from the generation station and energy to be produced (MWh) over the next XYZ (5) years of operation in view of stage wise implementation of RE project(s). These estimates should be based on the assumptions and specifications of the equipment seller/supplier/modeling studies.

 

Year

Max Rated Capacity / Max MW

Total MWh

Own Used MWh

Available for consumer  / Grid   MWh

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.6.1    Estimate of the energy conversion based on the efficiency of the generation station.

3.6.2.   Expected future life of the generation station based on suppliers specifications.

 

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Risk Management

Provide confirmation and reasonable evidence that the applicant’s management has identified the risks associated with electricity operations and has established, utilizes and relies upon risk management systems and processes which are adequate, accurate and up-to-date current to address those risks. A copy of the applicant’s risk management strategy should be submitted.

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  1. Compliance Plans

Applicants are required to submit a copy of their Compliance Plan which demonstrates how the compliance systems the applicant has (or will have) in place will ensure compliance with all of the applicable regulatory obligations imposed by the relevant license.

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  1. Additional Information

The ERSD encourages applicants to provide any additional information they consider would be of assistance in supporting the application. Please provide below.

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  1. APPLICATION FEE

Applicants for a license must pay to the ERSD an application fee fixed by the ERSD. This fee is presently set out as XX Afghani /US dollar per license.  Please make a payment to The Government Income Account through (mode of payment–Demand Draft/Pay Order Details …………………………………………………………………………………………………………………………………………………………………………………………….……... before submitting the application.  An application cannot be considered until this fee has been received and cannot be refunded.

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  1. DECLARATION

All information in this application for the issue of a license to authorize electricity generation operations, stating that the information contained in the application is true and correct to the best of the applicant’s knowledge, information and belief.

Statutory Declaration

I/We

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of………………………………………………………………………………………………

Do solemnly and sincerely declare that the information contained in this Application for the issue of a license to authorize electricity generation operations in Afghanistan is true and correct to the best of my knowledge information and belief.

Date …………………………………………………………….

Signature:        …………………………………………………………………………….

Type Name:     …………………………………………………………………………….

(Where the applicant is a body corporate, the declaration must be made by a person authorized by body corporate to sign on its behalf)

 

Signature of ERSD/MEW key person:

Declared at: ………………………………this ………. day of ………….....

Signed by:……………………………………………………………………………….

Type Name: ……………………………………………………………………………..