QUESTION & ANSWER. MCA-Indonesia Window 3B Grant. Question In English. I would like to ask several questions referring to the CfP:

Transcription

1 QUESTION & ANSWER MCA-Indonesia Window 3B Grant CfEOI : CfP/GP-W3B /001/2015 Clarification No. : 5 Received Date : Mar 2015 Release Date : 27 Mar 2015 No 1 Subject: Project Saya ingin menanyakan mengenai beberapa hal terkait Cfp Commercial: 1. Apakah proposal yang dibuat harus lengkap DFS atau cukup dengan Pra FS 2. Apakah pengusul sudah harus memiliki izin IPP? 3. Apakah pengusul sudah harus memiliki PPA? I would like to ask several questions referring to the CfP: 1. Should the proposal be equipped with DFS or is it sufficient to submit a Pre-FS? 2. Should the applicant already have an IPP? 3. Should the applicant already have a PPA? 1. Please refer to CfP Annex 9 [B] 6: Feasibility Study(ies): It is expected that the Application shall be based on a thorough Feasibility Study that should have been undertaken by the Applicant. 2. Please refer to CfP Section D: Registration: The IPP must be legally registered in Indonesia and should have the right to undertake and operate RE projects in Indonesia. If the IPP has yet to be established, it should be demonstrated that the Applicant, Promoter and Consortium as appropriate has warranted the intention to establish the IPP and that title to all lands, permits, contracts etc can be transferred to the IPP. 3. Please refer to CfP Annex 9 [B] 7: Critical Path Agreement Status: The 1

2 status of critical path contracts and agreements, such as a Power Purchase Agreement (PPA),. 2 3 Dear xxx Apakah yang bisa mengajukan Proposal, Jendela hibah untuk kategori Energi Terbarukan Skala Komersil. perusahaan dengan berbadan hukum CV atau PT yang expert di bidang energi atau NGO dan Perguruan Tinggi dengan berkolaborasi dengan pemerintah ditingkat Desa atau tingkat kecamatan Sehubungan dengan dibukanya penawaran 3b program grant MCA, kami dari PT. xxx sedang melakukan pengisian-pengisian form Who is eligible to apply for RE Cofinancing Grants; company in a form of CV (commanditaire vennootschap) or PT (perusahaan terbatas) who is expert in energy sector, or NGO and Universities in collaboration with local government at village/sub-district level? In relation to the RE Co-financing Grants CfP, we are filling the application forms, referring to Annex 3, Power of Attorney for signing of the We require you to state the status of your PPA. If you haven t obtained a PPA, then please indicate the time to sign the PPA and the current status/ draft PPA copy, etc. On the other hand, if you have obtained the PPA then please provide a copy. Please refer to CfP: - Section D. Legal Authorization: The IPP must be legally registered in Indonesia.. - Annex 18: Applicant and Related Definition The signatory of the Power of Attorney should be someone duly authorized to sign the Application on behalf of the Applicant. Please refer to the notes under Annex 3: Power of Attorney for signing the 2

3 terkait kelengkapan prosedure yang harus dilaksanakan, terkait dengan hal tersebut kami ingin menanyakan untuk Annex 3, Power of Attorney for signing of the Aplication. Pada akhir form surat tersebut, untuk baris paling bawah siapa yang seharusnya menandatanganinya? Application. Who is authorized to sign the PoA? Application. Such authorization should be in accordance with the applicable law and charter documents of the executant(s) and when it is so required, the same should be under a common seal affixed in accordance with the required procedure. Please clarify regarding this questions : No 4 Suppose our project located in South Kalimantan Province, which is not in the short list of 13 provinces. Would it be eligible for MCA s grant? 5 1. In the Technical Meeting on Thursday last week, You asked us to submit ERR (Economic Rate of Return) along the proposal. At that time we and we think, most of attendances were not got a full understanding about the subject. Could you please give us an example or a link of a similar ERR that you requested? 2. Kindly give us a direction please, 1. We explained that ERR >10% is our requirement. We only asked Applicants to submit data as per Annex 17. It is clarified that MCA-Indonesia will undertake the ERR calculations based on the proposed project logic and the specified data submitted by the Applicants. Applicants are not expected to do calculate the ERR. More information on economic analysis is 3

4 where to put our main reasons on why we submit the proposal to seek your approval in order to get the grant. Could we put the reasons in our cover letter or in Business Plan or in a special sheet inside the proposal? available at 2. We do not necessarily require the Applicant to provide a narrative of the reason for seeking grants or submitting the proposal. If you want to do provide this information, then please write it in Attachment 1- Additional Commercial Information in the Envelope 3, Commercial and Economic Proposal. Please refer to Annex ) In reference to point Applicant Eligibility Appraisal sub-point A: Among allowed forms for Cash Availability are: deposits held with banks and other liquid investments. Is it permissible to present money deposited in the banks in the period between 1 January 2015 and 1 st of April 2015? Would such a money need to be incorporated into company s account only or do you require notary deed for such instance. Also is the requirement of the last audited year relating into money bank deposits made between 1ts of January 2015 and 1 of April 2015? 1. Deposits held in a bank and/or other liquid investments in the period between 1 January 2015 and 1 st of April 2015 are acceptable. If the Applicant is an IPP or its Promoter, then the Applicant may choose to showcase its own credentials or on its behalf place forth the credentials of its Promoter or an Associate company. In case of a consortiums, all members proposing to invest at least 10% equity stake in the IPP can be evaluated. Any document that certifies or demonstrates the proof for this claim that such specified amount of cash is 4

5 Does the last audited year referring to all must be finished and done before 1 st of January, 2015 therefore no additional money can be incorporated within 2015? available at bank or in other forms of liquid investments is sufficient. Additional information based on interim report (e.g. Q1/2015 Report) may also be submitted. Page 17 2) In reference to point Applicant Eligibility Appraisal sub-point A: In case of running projects that are on the way: Is the eligibility from the grant program lost when banks or external financial institution provide more than 80% in the form of bank loan or export credit mechanism (15/85 ratio)? Then is such a case permissible? Is the export credit mechanism interfering with MCA GP grant program or supporting it? (at this stage project did not reach 20% equity, yet). Does it require the applicant to supplement the rest in the form of money bank deposit (cash)? 3) In reference to point 4.3 page 17: What is the maximum theoretical level of the total US dollar amount of RE Co- 2. Referring to CfP Section 1.3: MCA- Indonesia is launching this CfP to provide RE Co-Financing Grants to ongrid RE IPP projects (Projects) to make them financially viable, achieve financial closure and accelerate their implementation. Co-financing Grants are being offered to Projects (to be selected through the CfP grant process in Section 3 and as per the Appraisal Criteria in Section 4 of the CfP) that require to incur capital expenditure and have not been able to secure the full financing for lack of financial viability or a funding/ financing shortfall. Please refer to the CfP for full details, especially in Section 2: Eligibility Information and Section 4: Appraisal Criteria. Please refer to Section 2.4: Project Ownership that stipulates, among other things, a requirement of 5

6 Page 15 Financing Grant in respect of total project value/cost? What is the practical level for the same in case of small projects (< 1MW capacity) and large projects (>8MW but <10MW)? Can a promoter apply for grant that is larger than total project cost? Is it feasible or practical to apply for over 50% (grant) in respect to the total project cost? The answer for (Q&A clarification no.2 answer question no. 12 also Q&A clarification no. 3 answer for point 7) is unclear for the definition as the definition is the formula. Also 16 c is unclear as to overshadow term over a sum of financing sources (example Debt+Equity = 70% then MCA GP grant can be less than 70% (total =139.99% or less????). Theoretically & practically capital expenditure during construction stage can exceed 100% of total costs (plan) for the project in case when those costs were underestimated in the first place. Is it allowed to underestimate costs for total project costs? What happens when particular position or item requested to be sponsored by Grant was underestimated or overestimated due to mistake or exchange rate changes? minimum equity share capital in the IPP of 20% of the total project cost. 3. It is expected that the Applicant will submit their best estimate of the total project cost as per Applicant s plans, with reasonable contingency to cover possibility of escalations due to exchange risk, etc. Cost reasonableness will be part of the evaluation and impacts the scoring in Envelope-2 evaluation. This figure becomes the reference point for then computing the minimum equity capital required to be invested of 20% of the total project cost. For the remaining 80% of funding required, it is expected that the Applicant will make prudent assumptions on debt and other financing, as also on the grant sought. The sum of all sources of funding will then add up to 100% in the Applicant s plans. The CfP does not stipulate any maximum ceiling on the Co-financing grants as this will get determined through the competitive process provided in Envelope- 3: Commercial & Economic Evaluation. During this 6

7 4) In reference to point sub-point page 15: In case there is no land acquisition and resettlement action plan can a company still apply for grant? Shall we receive TAPP grant for this part? What if company has purchased 10 ha out of needed 26 ha already? Do we need a plan? What about the case when the land necessary for the project has been already purchased fully (100%). Is the plan needed or annex filled in case we owned the land in 100%? Do we need to translate the certificates of ownership into English? Please keep in mind we have two projects at different stages? 5) Every time when MCA refers to the score (lower or higher) It looks like it is referring to a specific score system. As the score will be differentiated by technology (Q&A clarification no.2 answer question no. 8) then it is hard to understand how does it work? The answer for the quoted question puts disadvantage to hydro-power plants evaluation a completeness and consistency check of the proforma financial model shall also be done. No, a Promoter cannot receive the RE Co-financing Grant that is larger than the total project cost. 4. Should there be no land acquisition and resettlement action plan as required to meet MCA-Indonesia Standard, please write down in the proposal and describe the reason. TAPP Grant is available to fund this study if the proposal passes the eligibility and technical evaluation. Either the land is already purchased or not, or in progress, the land acquisition and resettlement action plan is required. 5. The Envelope 2: Technical Evaluation is on a pass/ fail basis. The evaluation methodology is similar to appraisals done by project financiers. When applications reach Envelope 3: Commercial and Economic Evaluation then the final selection is based on a merit-order list of projects, as appropriately differentiated by technology, that is computed from the 7

8 7 and indicates preferences for PV systems? Can we get the scoring system card to clarity, please? 1. Our UKL UPL ( enviromental study ) in bahasa indonesia should we translated in english? 2. In Our PPA there is now Vat, so could the grant also without Vat? RE Co-Financing Grant Index Value per Net Unit of Electricity Generated per annum (for details please refer to Section 4.3 of the CfP). 1. Considering the inputs delivered by potential Applicants during the Technical Meeting, we will amend the language as follows: The application should be in the English language, including all forms provided in Part A, B and C (Annex 1 up to Annex 17) of the CfP, the financial model and the main body of the Feasibility Study. Attachments to FS, other reports such as EIA, SIA, EMP, LARAP, IP Plan, permits and licenses, company deeds, and other project documents could be provided either in Bahasa Indonesia or in the English language. Where it is a translation, then original documents should be submitted along with the translation. 2. The Grant is tax exempted. Please consult with your tax consultant to optimize the tax incentives as regulated and guided in the CfP Annex 28. 8

9 8 Projects which are scheduled to achieve substantial completion or almost complete the construction stage are acceptable. Higher score will be given to projects that reach or closer to COD. 9 Can the Applicant apply TAPP Grants for environmental impact, social and gender review? The CfP is launched to invite Applicants to propose for RE Co-financing Grants. TAPP Grants is provided on a need-based finance to Eligible Applicants to strengthen their project preparation to meet MCA-Indonesia requirements, address any gaps identified by MCA- Indonesia (e.g. environmental, social and gender gaps) as being required to be rectified to meet GP requirements and improve the quality of the required Project s Detailed Feasibility Study (DFS). 10 On mini-hydro project, where most of the civil work is already finished and entering the mechanical work stage, is it eligible to be funded by the RE Cofinancing Grant? RE Co-financing Grant is provided as needed to finance the gap which is not funded by the Applicant nor its lender. For brown-field projects, there will be justification for the conditions (e.g. exchange rate risks, price escalation, etc) needed for the grant. 9

10 11 What are the legal terms that the company should demonstrate to fulfill the equity portion? Please refer to Section for Applicant Eligibility Appraisal and Section Project Eligibility Appraisal. Among other items, the Applicant will have to showcase Solvency (no cumulative loss in past 3 years, as per audited annual account statements) and Cash Availability to fund the equity portion (Cash Profit for the latest audited financial year, deposits held with banks and other liquid investments). 12 How do we calculate ERR and where can we get information about ERR? Please refer to reply to Q5. 13 For the IRR, if it is already calculated in the FS, can we use that? Or does the applicant need to review or recalculate the IRR? Please submit the IRR as calculated in your latest financial model, incorporating your proposed grant amount. Ensure that you provide your assumptions list and the formulas are not hidden nor locked in the soft copy. Please refer to Annex 16/Attachment 2- Indicative Financial Model. 14 What is the exchange rate used in the financial model? For purposes of comparison, every Application will have its proposal converted into US Dollars using the average exchange rates posted by Bank Indonesia (BI) on the CfP release date (16 th January 2015). The table of exchange rate 10

11 is published by MCA-Indonesia in the website: 15 In what condition and status is a project defined as a merit worthy project? Merit-worthy project is defined as project that is feasible in various aspects, such as energy resource, technology, design, environment, social, capital structure, legal and meet the RE Co-financing Grant timeline Do Applicants submit the applications referring to the template or develop by themselves? For the technical and mechanical of the project, is there any specific requirement? Yes, Applicants are required to submit the applications as guided in the CfP annexes: - Part A (Annex 1 to 7) for Envelope-1, - Part B (Annex 8 to 12) for Envelope-2, and - Part C (Annex 13 to 17) for Envelope-3. For the technical and mechanical Standard, MCA-Indonesia follows the requirements of PLN as the offtaker. For guidance, please refer to CfP Annex 25: Equipment and Plant Performance Standards. 18 On the local content, is it mandatory in the Project? Applicants are expected to follow applicable laws and policies of GOI. The CfP does not impose any conditions related to local content. Applicants are 11

12 advised to check with applicable GOI regulations and PLN. 19 Information about the Scoring system, can it be shared to the applicant? Please refer to reply to Q6. 20 The IPP is a newly established SPV, therefore it cannot fulfill some requirements, such as 3 years audited account statements. For responding to [A] Financial Strength, please note -- If the Applicant is an IPP or its Promoter, then the Applicant may choose to showcase its own credentials or on its behalf place forth the credentials of its Promoters or an Associate company. In case of Consortium, all members proposing to invest at least 10% equity stake in the IPP can be evaluated including the Promoter and/or lead member. 21 How important is the EPC contractor for the scoring system? The EPC Contractor significantly determines the success of the Project, therefore EPC Contractor (or Contractors under similar arrangements or equivalent) must fulfill the requirement as stipulated in the CfP - Section 4.1.1[B]. 22 Is it eligible for an Applicant where its Promoter has no experience in developing RE projects? Please refer to CfP - Section 4.1.1[B], where an Applicant may showcase the 12

13 experience of the IPP/Promoter/Consortium/Associate. 23 Whats the difference between Promotor and Consorsium? Please refer to the definition of Applicant and Related Definitions as stipulated in the CfP Annex Schedule of project and the Compact is very limited, while the TAPP Grant also take time, how does it work? Projects that can be reasonably expected to achieve substantial completion on or before April 1, 2018 is the focus of this CfP. Please refer to section 3 of the CfP for the Grant Process Timelines. 25 Grant Disbursment within the project, should it be mentioned or informed in the proposal or financial model? It will be better to have the Grant Disbursement schedule inclusive in your financial model. 26 Can BUMN (SOE) or its subsidiary apply for the grant? Please refer to CfP Section 2.4: The IPP should have an equity ownership of 51% or more by the private sector Therefore, SOE may not be the majority shareholder of the Project. 27 If the Promotor is a new company, as long as it has 20% equity and experience within the management, can the Promoter apply for the RE Co-financing Grant? Yes 13

14 28 If the Promotor company is a company experienced in constructing infrastructure and civil work projects, but has yet any experience in hydro projects, is it eligible to apply? If the Promoter cannot fulfill the Eligibility requirements stipulated I the CfP, please showcase the experience of its Consortium/Associate and its EPC Contractor or equivalent. 29 About the translation of document, does it need to be submited along the original document Yes, if the document is translated, please provide the document in its original language as well. 30 What is the difference between Brown Field Project and Green Field Project? Brown field project is a project which has started a construction, whereas green field project is a project which has not started construction. 31 If an applicant cannot fulfill the detail requirement of the technical, how will it be determined as eligible? Ideally, the eligibility will be determined by a full set of information as required. If the project is considered merit-worthy and there is a gap in the technical aspect, therefore TAPP Grant may be provided to rectify this gap. 32 Information about the 2nd Call, when, how and any requirements? 2 nd Call will be announced if the RE Cofinancing Grant budget is not absorbed in the 1 st Call, but there is no guarantee that there will be a 2 nd Call. 33 About the total foreign shareholder in the IPP projects? MCA-Indonesia adopts GOI regulation, whereby referring to the current BKPM Negative List, IPP on 1 10 MW projects 14

15 should be owned at least 51% by local shareholder. 34 How many project expected by the MCA-I for the RE Co-Financing Grant will be granted MCA-Indonesia would like to achieve as highest leverage as can be, but we don t know how many proposals that we will be receiving and how many projects are eligible to be funded. 35 Excess Power Purchase Agreement project, can it be consider as eligible project No. % of CSR Beneficiaries, does it need to be included within the financial statement or project? For information and calculation on CSR, please refer to CfP Section 2.4 and Annex 29 Attachment G. 36 Does the proposal need to have the CSR program too. The Proposal is required to calculate the Profit Sharing for CSR and/or ES activities. The details of specific CSR activities would get determined through a landscapelifescape analysis. However, Applicants are encouraged to submit their own suggestions on how to utilize the profit share for CSR/ES activities in relation to their project areas. The actual details will be finalised at the time of signing the grant agreements. 15

16 37 Regarding the tax exemption, how is it applied? Please refer to CfP Annex 29. Applicants are encouraged to apply the tax exemptions in consultation with their tax consultants. 38 After proposal submission, is there any corespondence allowed between Applicant and MCA-Indonesia? After Proposal submission, Applicant is not allowed to contact MCA-Indonesia. Nevertheless, MCA-Indonesia may contact the Applicant to ask for clarification on the Proposal. 39 What is the definition of On-grid project? If it is not connected to PLN s National Transmission Line, but connected to PLN s regional grid, is it considered as On-grid? Any connection to PLN s transmission line or grid is considered as On-grid. 40 Regarding the Amdal / Environmental and Social Performance for public? What kind of documents are needed to be disclosed for the Environment and Social In compliance to IFC Standards, environmental and social documents are public domain, therefore documents such as EIA and EMP, LARAP and IP Plan, should be publicly available either on the Applicant s website or MCA-Indonesia s website, Applicant should agree. 41 Who are the TAP members? TAP members consist of experts from various background to RE projects, i.e technology expert, financial, environmental and social, etc. 16

17 42 Any additional time to submit Q&A which is due on 16 march? No About Investment Commitee, is it conducted in Indonesia or? How? Ranking system? How this implemented in the 13 provinces. Is there any consideration that the region is need more other than other. What if the region there will be only 1 or no one, applly The Investment Committee is conducted in MCA-Indonesia Office Jakarta. Based on the evaluation, TAP will propose for RE Co-financing Grants and TAPP Grants approval to the IC. The ranking will be differentiated among the type of technologies not region. 45 We are a new IPP. Therefore a number of special permits and licences take sometime to be processed and approved. How do we overcome this? As the submission is 10th April If your licenses and permits are still in progress, please fill in the information required as per Annexes in Part A, B and C (Annex 1 up to Annex 17), indicate the status. 46 The CfP requires separate submission of technical and financial analysis. Please follow the CfP document guidance on this 17

18 matter, including guidance provided in Annex 9.[A]4, Annex 9.[B]3 and Annex 24. Yes, for any documents translated to English, please submit the original document. Please visit the related links to understand about Social Gender Integration Plan. 47 What if we don t manage to establish an IPP by April 2018? Please refer to reply to Q24. Can we still apply? 48 Can MCA-Indonesia help an Applicant in obtaining PPA? The situation of xxx proposed PPA is delayed because PLN South Sulawesi region is over capacity around 220MW, this over capacity can actually be absorbed by West Sulawesi region once the transmission line is connected between the two regions. MCA-Indonesia has a working group where PLN is one of the member, we will take a note on this situation and inform PLN. But, we cannot guarantee that PPA can be obtained under the situation. 49 Can RE Co-financing Grant finance Biofuel Plant? Biofuel is more sustainable and environtmental friendly rather than the Palm Oil. No, the nature of RE Co-financing Grant is to finance On-Grid RE Projects with PLN as the offtaker. 18

19 50 All document need to be submitted, how if we dont have it by now. Since several are still on process. Please fill in all the cells in the Applications and provide any progress/status on the requirements. TAPP grant is co-funding or 100%? If we get TAPP can we also get the Co- Financing Grant? What is the amount of TAPP grant? TAPP Grant will be a fully funded (100%) for undertaking studies which are determined by MCA-Indonesia. TAPP Grants may be provided to rectify small gaps and awarded with the RE Cofinancing Grant. 51 What determine TAPP and RE Co- Financing Grant? Does Applicant determine the need and amount of TAPP Grants in the proposal? If the Project preparation needs quite significant of strengthening, therefore the TAPP Grant is provided without RE Cofinancing Grant. Applicant may re-apply if there is a second CfP. The CfP is to invite Applicants to propose RE Co-financing Grants, TAPP Grants are awarded by MCA-Indonesia decision upon evaluation of Envelope-2. Applicants are not invited to propose for TAPP Grants. 52 The COD is before 2018? How? COD is not required by 1 April MCA- Indonesia disbursement period for the RE Co-financing Grant closes on 1 April MCA-Indonesia places higher preference on Projects that can demonstrate, in a reasonable project schedule, substantial completion before 1 April

20 What is the reason for not accepting application on Projects in other provinces, such as North Sumatra? What about the district? Possibility on the nationwide? We work under the Compact Program which was signed between GOI and US Government in 2011, the geographic areas were determined based on several backgrounds; i.e economic condition, electrification, etc. The 12 provinces were decided, which has expanded to 13 provinces due to the expansion of East Kalimantan and North Kalimantan. 53 Currently, Proposals are only acceptable for Projects within the 13 GP Provinces (CfP Table 2). Any district within the 13 province is acceptable. Opening additional provinces for eligibility is under consideration and would be communicated publicly and to all registered proponents. 54 What status of project is eligible to apply? Please refer to reply to Q Is it allowed to have a change in shareholding during PPA term? Any change in shareholder will follow PLN regulation. 20

21 MCA-Indonesia is providing grants and therefore will not be an equity shareholder in the IPP. 56 The cost estimation in the Proposal is required in US$ currency, but actually there are items in other currencies, such as IDR. How shall we submit? Do we need to translate all documents to English, considering the time is very tight to submission due date. For purposes of comparison, every Application will have its proposal converted into US Dollars using the average exchange rates posted by Bank Indonesia (BI) on the CfP release date (16 th January 2015). The table of exchange rate is published by MCA- Indonesia in the website: Considering the inputs delivered by potential Applicants during the Technical Meeting, we will amend the language as follows: 57 The application should be in the English language, including all forms provided in Part A, B and C (Annex 1 up to Annex 17) of the CfP, the financial model and the main body of the Feasibility Study. Attachments to FS, other reports such as EIA, SIA, EMP, LARAP, IP Plan, permits and licenses, company deeds, and other project documents could be provided either in Bahasa Indonesia or in the English language. 21

22 58 If the Applicant is a Consortium, does each Consortium Member need to prepare the application/document? One Application is for 1 PPA. Hence, information regarding the Consortium Members should be provided as part of the Application Information (CfP Annex 6). 59 Evaluation on RE Co-financing Grant Index Value is not applicable for all projects. Because an Applicant can submit lower number low than other, it is not comparable. Before reaching the Evaluation of Envelope-3 (where the RE Co-financing Grant Index Value is quoted), Applications will have to pass the evaluation of Envelope 2, where the cost reasonableness is assessed What is the minimum amount of Grant that can be proposed? Is there any limitation on the maximum? 4. Each Proposal may come with different type of equipment and manufacturer. The feedstock itself may varies, having its own plantation and buying wood chips. Does the wood chips need to be certified? Environmental The RE Co-financing Grant Index Value, is calculated throughout the PPA term, which includes overall costs including Capex and Opex. There is no mininum threshold of RE Cofinancing Grant amount. Please refer to reply to Q6. MCA-Indonesia has standards for Envelope-2 evaluation purpose for each type of technologies. Track record of experience and success projects on such technologies will be scored higher. 22

23 assessment on the wood chips supplier needed? How does MCA- Indonesia view on this? On feedstock, MCA-Indonesia looks at the sustainability and reasonable Operations cost, which impacts the Grant quotes. Yes, environmental assessment will be done up to the feedstock supplier. 62 Can an EPC contractor as the Shareholder of the IPP apply for RE Cofinancing Grant? YYes, EPC contractor as the Shareholder of the IPP could apply in a Consortium. Please refer to all eligibility requirements of the CfP and please provide all information related to the Applicants (Promoter/Shareholder/Consortium Members) experience in RE Projects. 63 Whether a new established company with Spanish partner is allowed to apply. How about the language on the Spanish company documentation? Yes, as long as in compliance with GOI regulation, whereby for 1 10 MW IPP should be owned majority by local shareholders. Please refer to reply in Q Normally in the IPP, for the first 5 years operation, the IPP is repaying its debt portion and do not book profit, how does it accomodate the required CSR/profit sharing? MCA-Indonesia is aware of this situation, the profit sharing will apply at any point in time where the IPP books its net profit. 65 Can MCA-Indonesia assist in obtaining the fiscal incentives as regulated in MoF Decree No. 21_PMK.011_2010? Please refer to CfP Annex

24 Applicants are encouraged to apply the tax exemptions in consultation with their tax consultants. How long does it take for MCA-Indonesia to review the Proposal until Grant award? Please refer to CfP Table 3: Call of RE Co- Financing Grant Process Timelines When will the additional GP Provinces be announced? Who determine the beneficiaries that receive the profit sharing (CSR/ES)? Can the proposal submission deadline be postponed? (after 10 April?) Is there any page limitation for the Proposal, apart from the Project Summary max 20 pages? The 2 nd Call for additional GP Provinces is subject to Cash availability that is not fully absorbed in the 1 st Call and approval from the Board of Trustee. There is no guarantee that there will be a 2 nd Call. Applicants may identify and suggest the beneficiaries, but it is not a mandatory. If it has yet been proposed, it will be determined through the landscape and lifescape analysis (funded by TAPP Grants). Any amendments, including proposal submission deadline will be announced to all registered Applicants through and posted on our website. No, there isn t. 24

25 70 If the principal permit is not yet aqcuired, can we still propose the project? Please refer to Q Is the Promotor have to be the major shareholder? Please refer to CfP Annex 18: The term Promoter or the Project Sponsor shall mean, in relation to an Applicant or a Consortium Member, a person who controls the Applicant or the Consortium Member (the Promoter or the Project Sponsor). As used in this definition, the expression control means, with respect to a person which is a company or corporation, the ownership, directly or indirectly, of more than 25% (twenty five per cent) of the voting shares of such person, and the power to direct the management and policies of such person by operation of law. 72 If we haven t assign or appointed any EPC Contractor, will the Proposal be accepted? If the EPC Contractor or contractor(s) under an equivalent contractual arrangement has not been signed, please provide information on the candidates and status. 25