Trail of Power Mess Leads to Ramos

Name of Plant :	650 MW Malaya Thermal Power Plant Complex (A24)
Name of IPP :	Korea Electric Power Corporation (KEPCO)
Contract Type :	Rehabilitate-Operate-Maintain/Rehabilitation, Operation, Maintenance and Management Agreement/Solicited
Status of Plant :	Operating
Cooperation Period :	15 years (September 1995 - September 2010)

Nature of Issue	Issue	Recommendation
Underutilized power plant	The plant factors for the plant for years 1995 to 2001 averaged 38% which would translate to lower energy delivered versus the contracted energy.	Advise NPC to prepare comprehensive Report explaining why Malaya Thermal Power Plant has a plant capacity of less than 50%.
Fee Structure	Net loss incurred by NPC versus substantial icome of KEPCO	Revisit the fee structure including escalation formula.
Compliance with IRR of Clean Air Act	Differing opinion on who will shoulder the instruments and penalties arising from violation of the Clean Air Act	Instruct NPC to resolve the issue with KEPCO.
Interpretation of some provisions of the ROMM Contract	Differing interpretation of a) Art. 13 (Events of Force Majeure); and b) allowable start up fuel consumption and bonus penalty under the ROMM Contract	Instruct NPC to resolve the issue with KEPCO on some provisions of the ROMM Contract Pertaining to force majeure and start up fuel consumption.