Model Bilateral Connection Agreement that is used by the UK National Grid Company (NGC) for customers who wish to connect to its transmission system.  This model agreement makes a reference to the so-called Connection and Use of System Code (CUSC), that NGC has developed and submitted to the UK regulator (OFGEM) for approval. The CUSC is a complex document and so may not be appropriate for adaptation to developing economies without extensive amendment.

Under the Framework, the UK Government subsidizes private sector investment to provide broadband to areas where there is otherwise not a viable commercial market. It uses a gap-fund subsidy commercial model, where Government funding subsidizes capital costs, but the supplier bears the risk of implementing, owning and operating the network and therefore the risk of ensuring its commercial success. It is expected that customer revenue will cover operating and maintenance costs, as well as generate sufficient profit to provide a return on the investment.

Key features of the sample PPAs published by ERC:

• FiT Eligibility Period – the RE Plant is entitled to FiT payments for a period of 20 years from when it achieves commercial operation.

In Australia, PPPs for conventional generation projects are less common as they are often privately financed.  Rather, PPPs are more likely to be used for infrastructure projects of systemic importance (such as provisions of system stability services).  The agreement provides a good illustration of a “light government touch” PPP project where the government assumes relatively little project (including regulatory) risk, which is reflective of Australia’s more market based energy sector:

Generator Connection Agreement published by Transgrid (a transmission service provider in New South Wales, Australia) on its website. The agreement sets out the terms on which Transgrid provides transmission services to generator customers (including renewable power generators) on its transmission network. The electricity transmission and distribution networks in Australia are owned and operated by private players, who provide services on their networks under negotiated private contracts.

PPP Contractual Provisions

Guidance on PPP Contractual Provisions (2019)

Guidelines for PPP Laws and Concession Laws

India

Standard PPA and IA published by the Alternative Energy Board - Standard Agreements between the government of Pakistan (‘Purchaser”) and public or private company (“Seller”). Seller will design, engineer, construct, insure, commission, operate, maintain and transfer hydro-electric generation facility (the “Complex”) on build-own- operate-transfer (BOOT) basis; Agreements are supposed to encourage private investment in the electric power sector in Pakistan and to provide assurances of support for the Seller’s efforts to develop the Project in an efficient and timely manner.

Authored by: Stanley Boots, Lawyer and CEO, Frontier Law & Advisory

This article has also been cross-published on the World Bank PPP Blog. Click here to view.