MYC Power Sector Services proposal

of 14 MYC INVESTORS GUIDE FOR POWER SECTOR PROJECTS.

Chief Executive Officer/Managing Director

Power Sector Project Companies Ref: myc/pace-01/2015

Date: November 30, 2015.

Re: Proposal for Consultancy services (Financial /Technical /Legal) for Power

Sector Projects:

Dear Sir!

The Pakistan Centre for Alternate Energy (PACE) is a dedicated business segment of M.Yousuf & Co Cost

& Management Accountants. PACE is strengthened by Pakistan’s leading power sector

professionals.MYC has established PACE for supporting power sector projects which is an energy

consulting Centre, based at Blue Area Islamabad. PACE is proud to offer complete set of services

including Technical, Financial, & Legal. We are pleased to present this formal Proposal for your

company’s upcoming energy sector projects under your kind consideration and control.

MYC is a leading firm of Cost & Management Accountants providing services to diverse line of clients

and actively engaged with NEPRA, AEDB, PPIB, SECP, ICMAP and FBR for the benefit of all the

Stakeholders.MYC have satisfied clients in all the major lines of businesses. MYC in line with the

initiatives of GOP relating to Power Sector initiatives especially under Pak-China Economic Corridor and

envisaging investment in this area has set up a separate business unit under the name “PAKISTAN

CENTRE FOR ALTERNATE ENERGY” (PACE) to help the prospective and existing investors to succeed in

their business endeavors relating to power sector projects.

MYC as lead partner of “PACE” have already worked and is working with the international POWER

consultants such as 8.2 Die Sachverstandingen (Germany) and M/S SAMBU Construction Company Ltd.

(South Korea) where we have provided our professional services on 84 MW hydroelectric power project

at New Bong Escape Mangla (AJK) for Laraib Energy Limited (“Laraib”) which is the owner and developer

of first ever hydro electric IPP in Pakistan known as the New Bong Escape Hydroelectric Power Complex

on the Jhelum River in Azad Jammu and Kashmir (AJ&K).We are also working on certain other alternate

energy projects at various phases of their execution. Therefore we are in a unique position to provide

the best possible services available in Pakistan.

Scope of Services:

PACE would provide complete value chain services including Concept statement, business modeling,

feasibility study ,project development, design, construction ,company incorporation with foreign equity,

tariff petition filing & negotiation, complete support arranging ICB process, signing EPC contract/IAs,

drafting bidding documents, support in securing relevant licenses (PPIB/AEDB/NEPRA etc).We support


conducting international competitive bidding (ICB) for selection of EPC contractor. Most importantly

justifying with full professional competence to win optimum tariff for the project at various stages of the

project (feasibility study stage, EPC stage & COD final approval stage etc).

In addition to project development ,PACE is fully geared up to offer operational support services in

preparation of regulatory accounts for Generation, Transmission and Distribution Companies of Power

Sector as per Frame Work of SECP/NEPRA project development project feasibility study, incorporation of

the company, licensing from NEPRA, preparation & filing of tariff petition, defense before NEPRA,

Processing of power generation license ,requirements of PPIB , etc taxation service and regulatory

accounting services.

PACE services can be broadly segregated into following three aspects.

1. Phase I: Incorporation and Licensing :

MYC-PACE would facilitate the client from the very beginning i.e incorporation of the Company with

SECP specially catering foreign director & FDI. Once incorporated the process of issuance of License from

NEPRA shall be started and complete all relevant documentations.

2. Phase II: Project Implementation:

During the project implementation phase, MYC shall provide complete support to the client relating

registration with PPIB, getting approval from PPIB, obtaining LOI from PPIB, Tariff determination from

NEPRA, Processing of generation license from NEPRA. Negotiation for IA/PPA, FSA/GSA to obtaining

licenses for all the NEPRA, project development & construction.

3. Phase III: Post completion:

PACE shall take care of taxation, regulatory Accounting and other related support services. MYC shall

provide complete financial management & reporting support to the power producer in tracking all the

costs incurred before, during & after the project implementation stage.

On- going support:

MYC shall provide complete support to the power producer in making regulatory accounting compliance

on regular basis as per NEPRA requirements. In addition, being an expert cost & management

accountant, MYC shall offer support on managing break-up of fixed & variable costs .work out various

managerial analysis for cost control, optimizing efficiency and improving processes.

We hope you will consider our proposal for any of the ongoing or under consideration future power

project and provide us an opportunity to offer our value added services to your organization of high

repute.

M.Yousuf Khan FCMA, MIPA-Australia

CEO

Regards


MYC INVESTORS FRIENDLY ONE

WINDOW SERVICES TO SUPPORT THE

HYDRO POWER OPPORTUNITIES IN

PAKISTAN


Steps for setting up a power project in Pakistan. MYC Value Added

Support Services Snapshot:

GOP-Short term capacity addition

initiative

Registration with AEDB

Registration with PPIB fee-US $ 200

PPIB proposal Approval (fee US $

20,000/-)

Submission of PG U.S $ 1,000/MW by sponsor

company

Issuance of LOI by PPIB

Issuance of LOS by Provincial PPC

Submission of Teriff Petition & Generation Licence to NEPRA (be

within 3 months

Issuance of Tariff determination by

NEPRA


Submission of PG of US.$ 5,000/MW + $ 80,000 to PPIB (PG

validity COD + 3 months

Issuance of LOS by PPIB after acceptance of PG

Finalization of agreements IA/PPA/FSA

Financial Close within 9 months of LOS

Commencement of Construction activity

Achievement of commercial operation

date (COD)

COD has to be within 33 months of LOS or 24

months of IA whichever is earlier


Core Team Members:

Aziz Raza B.E

HOD Hydro Power Projects & Senior Consultant at MYC. Professional Mechanical Engineer with 25 years of experience!

Experienced professional with solid exposure in hydro power projects

including development, management & construction of power sector

projects. Vast exposure as project director with leading multinational power

/construction company M/S SAMBU Construction Company Ltd. (South

Korea) .Experienced in execution of Engineering Procurement & Construction

(EPC) of 84 MW New Bong Escape, First Hydro –IPP in Pakistan. Working

experience of project development, management & control of 100 MW Golen

Gul project. Project manager of Lowari Tunnel project.


Core Team Members:

Mansoor Qaiser HOD Tariff & Regulatory Services at MYC

Having around 20 Years of professional

experience in Telecom & Power sector cost

modeling & tariff regime .Expert in power

sector feasibility studies HCA, FAC, LRIC,

based Tariff Management, Regulatory &

Separated Accounts, Telecom Costing

Models of Pakistan largest Telecom

Operator.

M.Yousaf Khan CEO MYC

FCMA, MIPA-Australia.ACSP. M.A Economics. Member RITBA, ICCI & ASG.

Corporate Trainer, Coach & Mentor. Having around 20 years of professional

experience in Cost Management, Tariff &, Feasibility studies, Power sector projects

support, Business modeling, Interconnect, Telecom cost modeling corporate

restructuring, taxation, SOPs & organizational development.


Zakir H.Satti ACMA, ACIS

HOD Power Services & Senior Consultant at MYC with

23 years of experience.

Expert in Revenue & Regulatory Accounting, Cost

unbundling, Regulatory Economics, Interconnection,

Interconnect Settlement & International Settlement

Rates, Consultant. Expert in power sector tariff

determination, feasibility studies, project implementation,

working with WAPDA & NEPRA (CTO) Common Wealth

Telecommunication Organization in PNG. Delegate on

SAARC Technical Committee on Telecommunication

and Transport. ITU trained on Price-Setting and

Interconnection (https://www.itu.int/ITU-

D/finance/work-cost.../Listofparticipants.pdf).

JTEC/KDDI (Japan) trained in international telecom

business.

https://www.itu.int/ITU-D/finance/work-cost.../Listofparticipants.pdf

https://www.itu.int/ITU-D/finance/work-cost.../Listofparticipants.pdf


MAJOR ASSIGNMENTS PERFORMED:

Client Classification Nature of assignment Period

SAMBU-Korean Company

Hydro-electric power project

Financial feasibility, EPC support working on 84 MW New Bong Escape Hydroelectric power project, financial & Technical support till Defect Liability Period) pre & post implementation for management decisions.

2011-2014

Golen Gull Hydro-electric power project

Technical assistance on complete project development & EPC support

8p2-German based alternate energy Company

Solar Power & alternate energy Projects

Feasibility study & internal audit of the pre & post implementation of various project

2013-2015

NEPRA Power Sector Projects

Hearing on various issues relating to review on the financial & costing issues/aspects pertaining to project feasibilities by IPPs and technical recommendations in the form of interventions /comments etc.

2014-2015

SECP/ICMAP

National level Restructuring Framework for Development sector.

Development of new NGO sector regulatory & Management Framework to replace multiple statutes. (under process).

2014 & to date

ICMAP Cost Audit, Regulatory Regime.

Development of Cost Accounting Standards & Cost Accounting Framework

2012-to 2014

READ Foundation-Registered u/s 42of the Companies Ordinance 1984

Special audit

Special audit of the fund on donor request. This special audit resulted in great value addition to the donor & grant recipient as lot of hidden issues were pointed out with recommendations for improvement

2015


NIH

Financial Management Internal Audit,& Taxation Compliance

Internal Audit in compliance of US Government CFR regulations. Physical verification of Influenza control program, Verification of technical and non-technical assets. Internal Control Manuals, SOPs & Financial Reporting System

2013 to date

SECP Cost Audit, Regulatory Regime.

Member of Joint committee of ICAP/SECP & ICMAP on Development of Cost Accounting Standards, Cost Audit Standards & Cost Accounting Framework

2012-2014

OMANTEL Telecom Regulatory & Costing Regime

Development of detailed terms of Reference (TORs) for execution of regulatory /cost audit on ACCESS DEFICIT NET OF CONTRIBUTION (ADNC) to be conducted on behalf of Telecom Regulatory Authority of Oman (TRA)

2012

NIH

Financial Management Internal Audit,& Taxation Compliance

Internal Audit in compliance of US Government CFR regulations. Physical verification of Influenza control program, Verification of lab technical and non-technical assets. Internal Control Manuals, SOPs & Financial Reporting System

2013 to date

COMSTECH- OIC Standing Committee on Scientific & Technological Research.

International Taxation

Detailed analysis of Diplomatic & Counselor’s & Privileges Act 1972. OIC Privileges & Immunities Act 1977. Ensure tax exemption to organization to the maximum possible extend Training on of Taxation Regime in Pakistan for the Organization. Successfully defended various cases initiated by FBR against COMSTECH.

2012 to 2014

PTCL Telecom Regulatory/ Costing

Development of Cost Model based on Current Cost (CC) and Long Run Incremental Cost (LRIC) as per the requirement of Pakistan Telecommunication Authority (PTA) Government of Pakistan.

2006-2007


CMA Foundation-

Under ICMAP Statutory Audit

Audit of Financial Statement & Implementation of Financial Management System

2013-till date

PEARL Communication (Pvt)

Ltd a subsidiary of

HASHOO Group.

Taxation Special Taxation assignment 2014

SERONIC

(PRIVATE) LTD. Audit & Financial Management

Implementation of Financial Management System, Statutory Audit & Taxation Management.

2011-to date

M/S ITROOS Service provider to M/S COCA COLA BOTTLERS LED.

Audit & Taxation External Audit & Tax Consultancy 2012- to date

NOTE: For further details, kindly contact MYC team for proper guideline.


Proposal to PPIB should contain the following documents:(glimpse)

z Po

Power Plant Details

Contact Person details

Consortium details, including sponsors, equity %age of

sponsors.(This includes details about the financial strength of

the sponsors.

Credit rating/Financial strength of the statement’s data of the

sponsors

Experience of power projects, if any.

Consortium agreement if any and power of attorney in favor of

main sponsor member of the consortium by the other members.

Affidavit of equity commitment & eligibility requirements.

Endorsement of PEPCO/NTDC on fuel, size, technology etc of the

project.


Eligibility of the Main Sponsor! guide by MYC:

MYC POWER SECTOR VALUE ADDED SUPPORT STRETAGY:

The Sponsor(s) must submit complete information

requested by PPIB. In addition, the Sponsors must submit

all additional / supplemental information if requested for

by PPIB during review of the proposal.

• If the Sponsor(s) is/are a Consortium, there must be a

Main Sponsor appointed through a Power of Attorney

executed by all other Consortium members.

• The Net worth of the Sponsor(s) must be in accordance

with the requirements.(Minimum of 15 times of the equity sponsored)

• The Sponsor (or in the case of a Consortium, one of the

Consortium members) must have the requisite power project

experience.

• The Main Sponsor should not own more than 25% of

the total generation capacity in Pakistan at the time of

submission of Proposal.

• The Main Sponsor will be required to hold at least 20%

of the equity of the Project Company during the “lock-in-period”

which will be from the issuance date of the LOS

until the sixth anniversary of the successful commissioning

of the plant. The Sponsor(s) must together hold 51% of

the equity for the same period.

• When the Sponsor(s) form a new company specifically

incorporated to undertake the Project, the eligibility

requirements herein shall be applicable to the

shareholders of the new company rather than to the new

company itself.


MYC Value added One window services for power projects:

`

MYC Value added Power

sector serviscs

Feasibility Study

Technical support in Hydro Power projects

including EPC

Legal Support in drafting

petitions/IA/EPC/FSA etc

Power Projects Developemnt &

Management

Optimum tariff

(Feasibility/EPC/COD stage

Complete support in responding

NEPRA/AEDB etc

Securing all power sector

licenses

MYC Power Sector Services proposal

Business

Transcript of MYC Power Sector Services proposal