The set up of the company’s responsible for managing the Taweelah B Power and Desalination Complex, along with the associated agreements, are along familiar Project Finance lines.
TAWEELAH B STRUCTURE
The Power and Water Purchase Agreement (PWPA)
The Power and Water Purchase Agreement (PWPA) was signed between ADWEC, the “Procurer”, and Asia Gulf Power Holding Company, and novated to Taweelah Asia Power Company (TAPCO) the “Project Company” to manage sale of Power and Water Capacity and Output as per the terms of the PWPA.
The Operation and Maintenance Contract (O&M Contract)
The O&M Contract appoints Asia Gulf Power Services Company (AGPS) to be responsible for the operation and maintenance of the Taweelah B Plant during the life of the PWPA i.e. 20 years after PCOD. All the foreign sponsors of TAPCO are also the partners in the AGPSCo with the same ratio as of Asia Gulf Power Holding Company (AGPH) as highlighted in diagram above.
The Assets Transfer Agreement (ATA)
The ATA governed the conditional sale, delivery and transfer of the Existing Assets and ancillary items from the Al Taweelah Power Company (ATPC) to TAPCO. In addition to Asset Transfer, all the Staff from ATPC were transferred to AGPS as shown in the above diagram.
The Land Lease Agreement
The Land Lease Agreement grants a lease over the site on which the Project is to be located and it details the procedures for the decommissioning, transfer and redelivery of the Old Existing Assets back to Department of Energy.
The Shareholders Agreement (SHA)
Shareholders Agreements exist for the companies involved in managing the Taweelah B Power and Desalination Complex, for example for TAPCO, TUPC, AGPH, and AGPS. These agreements provide corporate structure to enable efficient cooperation between shareholders to maximize the effective management of the facility.