Info Report Check
Submission incomplete:
1: The PP/DOE has stated that the project start date is 23 February 2011 which is the date when the Investment Commitment Agreement between the company Luz del Sur S.A.A. and the Peruvian Government was signed. However, Validation Report on page 11, Ref /72/ states that an Assests acquisition contract between Lus del Sur y EGEMSA, was issued on 17/06/2010. It was also observed that Ref /14/ also refers to a similar contract “Assets Aquisition Contract signed between EGEMSA and Luz del Sur, dated 23/03/2011”.
The DOE shall validate whether the start date of the project activity, reported in the PDD, is the earliest date on which either the implementation or construction or real action of a project activity begins. Please refer to VVS ver. 6 para. 106.

2: The DOE is requested to describe how it has validated the suitability of the input values used in the financial calculations as per VVS version 6 paragraphs 120.

Issue: The DOE has validated that based on the contracts reference /65/, /70/, /71/, /72/ and /73/ the actual investment value demonstrated with signed contracts is 133,860,750USD, not including personnel, taxes and others (Page 33 of Validation Report). However, for sensitivity analysis, the DOE has referred to the same contracts and has stated that the actual contract signed have already surpassed the USD148 million estimated cost. The DOE shall clarify this inconsistency. Please refer to VVS ver. 6 para. 120 (a).


Issue: The DOE has validated the project expenses which includes i) O&M cost 3% of the total investment cost, ii) Fixed contribution to COES: 20,000 USD, iii) Personnel Expenses: 634,508 USD, iv) Insurance expenses: 1 million USD, v) Sales Expenses: 0.25% and vi) Water use cost: 1% of revenues . However, the DOE has not provided crosscheck of these expenses. The DOE shall provide crosscheck of the Project expenses. Please refer to VVS ver. 6 para.120 (b).


Issue: The energy prices including Electricity price, Capacity price and Energy bus bar price, have been projected based on the actual contract and the data provided by Osinergmin. Long- Term Public Bidding 2009. The PP has applied the following factors CPI-Peru, CPI-USA, Price Camisea Natural Gas in order to adjust the actual prices. In addition, the DOE has raised CL27 requesting clarification regarding to the application of the above factors. However, the DOE has not validated the suitability of these parameters, particularly whether these energy prices applied in the IRR calculation are in line with the project energy prices of the actual contracts and/or prices escalation in the host country. Please address this issue referring to VVS ver. 6 para. 120 (a).


Issue: According to the IRR calculation spreadsheet, the electricity will be supplied to EGEMSA, Free Clients and Spot Markets and different energy prices will be applied for each. In addition, it was observed that for the electricity that will be supplied to EGEMSA, the energy price will be zero. However, as per the reference document /77/, a contract between Luz del Sur and EGEMSA for power supply has been issued on 05/09/2013. The DOE shall describe i) how the DOE has validated the energy sales scheme which includes EGEMSA, Free clients and Spot Market; and ii) and how the DOE has validated the energy price of zero for the electricity that will be sold to EGEMSA based on the signed contract. Kindly note a possible typographical error where "about prices" was typed as "abour prices" under reference /77/ on page 11 of the Validation Report. Please refer to VVS ver. 6 para. 120 (a).

Issue: DOE has validated the annual electricity generation by checking the Governmental Resolution “Resolucion Suprema” No 075-2011-EM. However, the DOE has only reported the expected annual electricity generation but has not validated the expected/design PLF as required by EB48 Annex 11. The PP/DOE shall report the expected/design PLF and shall demonstrate whether it has complied with “Guidelines for the Reporting and Validation of Plant Load Factors”, EB48 Annex 11.