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Approved Terms of Reference Approved Terms of Reference forfor

HAPUA Working Group No.5-ESI HAPUA Working Group No.5-ESI ServicesServices

Project 6Project 6Bilateral Contract Bilateral Contract

BenchmarkingBenchmarking

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1. 1. ObjectivesObjectives1.1 To establish the criteria for the bilateral

contract benchmarking.1.2 To benchmark the bilateral contracts

between HAPUA member countries.1.3 To conduct the relevant studies related to

commercial issues, including, but not limited to, Tax, Regulation and Tariff system in support of the cross-border electricity trade.

1.4 To develop bilateral contract model(s) based on the experiences and examples of the past bilateral contracts, and to recommend for further improvement, (if needed).

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2. 2. Scope of WorkScope of Work2.1 Initially, the Project 6 will conduct a

benchmarking study of bilateral contracts between member countries of Subsystem

A.2.2 At the later stage, this study could then be

replicated to Subsystem B and Subsystem C upon the directive of the HAPUA Council.

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3. 3. DeliverablesDeliverables3.1 A Final Report on the Benchmarking Study of

the Bilateral Contracts between HAPUA member countries of Subsystem A, including recommendations for further improvement, (if needed); and

3.2 Bilateral Contract Model(s).

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4. 4. ProjectProject LeaderLeaderMr. Chuchwal NonthaleerukDirector, Power Purchase Agreement DivisionElectricity Generating Authority of Thailand (EGAT)THAILANDChuchwal.n@egat.co.thPatcharee.p@egat.co.thNitus.v@egat.co.th

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5. 5. Project MembersProject Members5.1 Project 6 is open to all HAPUA member countries.5.2 Subsystem A member countries are encouraged to take part.5.2 Each member country shall designate one (1) representative as a member and other participants, if any, as observers. 5.3 Representatives are preferably personnel responsible for developing and/or managing the power purchase and sale contracts.5.4 Nomination of representatives and participants is required by December 2008.

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6. 6. Host and Venue of Host and Venue of MeetingMeeting

6.1The first meeting of Project 6 shall be organized by EGAT in Thailand.

6.2Host and venue of additional meeting(s) shall be rotated according to alphabetical order of the Project 6 member countries,

or as agreed by the Project members.

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7. 7. Time LineTime Line7.1 To start the Project implementation in January 2009.7.2 To report the progress to HAPUA Council in the next

meeting tentatively scheduled in May/June 2009.7.3 To complete the Project (Phase I) by end of 2009.

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8. 8. ConfidentialityConfidentiality8.1 Any information or data arising during the study shall be kept in strict confidence.8.2 Confidential information or data shall not be disclosed to third parties without prior written consent from all members.8.3 Confidentiality of the contracts may be subjected to policy and governing rules of each member country. Any confidential issues may be escalated to the higher level committees. 8.4 Those data not available due to the confidentiality shall be recorded for further reference.

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9. 9. Project Action Plan Project Action Plan (9/1)(9/1)

Description Date Responsibility1. Internal Study on Criteria and Model(s) of Bilateral Contracts for Benchmarking

Jan – Feb 09 WG5 Project 6 Leader and Members

2. The 1st HAPUA WG5 Project 6 Meeting - Presentation on Criteria and Model(s) of Bilateral Contract- Discussion and Model Benchmarking

Feb 09 WG5 Project 6 Leader and Members

3. Meeting Summary for Reporting to HAPUA WG5

End of Feb 09 WG5 Project 6 Leader

4. Development of the 1st Draft of Bilateral Contract Model(s) for Subsystem A

Mar 09 WG5 Project 6 Members

(to be initiated by Project 6 Leader)

5. Circulation of the 1st Draft of Bilateral Contract Model(s) for Comments

End of Mar 09

WG5 Project 6 Leader

6. Tentative Joint Meeting with HAPUA WG5 Meeting and 2nd HAPUA WG5 Project 6 Meeting

Apr–May 09 WG5 Project 6 Members

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9. 9. Project Action Plan Project Action Plan (9/2)(9/2)

Description Date Responsibility7. Progress Report to HAPUA Council Meeting

Jun 09 WG5 Project 6 Leader

8. Development of the 2nd Draft of Bilateral Contract Model(s) as Commented

Jul – Aug 09 WG5 Project 6 Members

(to be initiated by Project 6 Leader)

9. Circulation of the 2nd Draft of Bilateral Contract

Model(s) for Comments

End of Aug 09

WG5 Project 6 Leader

10. The Final HAPUA WG5 Project 6 Meeting - Discussion on the 2nd Draft Bilateral Contract Model(s)

Sept 09 WG5 Project 6 Leader

and Members

11. Development of the Final Draft of Bilateral Contract Model(s) as Commented

Oct – Nov 09 WG5 Project 6 Members

(to be initiated by Project 6 Leader)

12. Submission of the Final Report and Bilateral Contract Model(s) to HAPUAWG5

Dec 09 WG5 Project 6 Leader

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9. 9. Project Action Plan Project Action Plan (9/3)(9/3)

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Thank Thank youyou

WC Meeting Decision & Advice   5 6TOR for WG Project was approved by the

WC.UUUUUUU UU UUU UUUUUUU to be UUUUUUUed UU

the Council (around 2009 ) WC instructed WG5 to modify the Project 6 titl

U UUU UUUU UU UUUU U UUUUUU UUUU UUUUU UUUU U UUUUUUUUUUUU UUUUU UU UUU UUUUUUUU UUUUUUUUU UUUUUUUU UUUU UUUUUUUUU

UUUUUUUUUUUUUU UUUUUUUUUUUUUUUUU UUU U/ .UUUUUU UUUUU UUUUUU UUUUUUUU UUU UUUUUUU UUUUUU UU

the interconnection arrangement concerning t ax, tariff, country regulations, etc. A suggeste

d title would be: Models of Bilateral Interco nnection Arrangement .

The adoption of Project 6 TOR template as reference for all future project TORs.

Project name: Bilateral Interconnection Arrangement.

WC Meeting Decision & Advice (2) 5As to the APGCC meeting, WG was instructed to:

Conduct the study and identify features of existing b ilateral arrangements to be used later to Multilateral

Arrangement for the APGCC.

Carry out study on bilateral basis first between Mem bers countries of Subsystem A. Relevant studies rela

ted to Commercial Issues, Tax, Regulation, Tariff Sys tem and Social Impact are to be included in the study

. Provide various contractual models base on the expe

rience and examples of past contracts between two c ountries and recommend for further improvement if

needed . This study could then be replicated to other bilateral subsystem connections.

Prioritize the major issue on the commercial/regulati on tax and tariff aspect of the interconnection which

may impasse the study.

1. Need to clear with APGCC, 4.1.2

2. It is for project 5.

Summary“Social impact” would be an issue of

WG5 project 5. Report to WC.The project title is changed to “Bilateral

Interconnection Arrangement”, which consist of report and Bilateral Interconnection Agreement.

In the first step, WG5 Pro.6 will do only bilateral contract.

Bilateral contract means contract for interconnection(s) between two countries.