- an Engineering and Procurement Contract with Overseas Bechtel Incorporated (OBI),
covering engineering, equipment procurement and performance guarantees for the pro-
ject; and
•a Project Management Agreement with Bechtel Overseas Corporation (BOC), covering
construction management and project testing.
OBI and BOC are together known as the EPCM contractors. At the same time Quezon Power
entered into a contract guarantee agreement under which Bechtel Power Corporation guaran-
teed the obligations of CBI and BOC.
Coal Supply Agreements
The project company entered into Coal Supply Agreements with two Indonesian suppliers.
The agreement with PT Adaro Indonesia terminates in 2022 and the agreement with PT
Kaltim Prima Coal terminates 15 years after the Commercial Operations Date. Under cer-
tain circumstances the project company may extend the term of each Coal Supply
Agreement beyond its scheduled termination date. The agreements specify the price, quali-
ty and quan-tity of coal to be supplied to the project. The coal suppliers are responsible for
inland and ocean transportation of coal delivered to the project’s coal handling pier. The pro-
ject company operates a dedicated coal handling pier, capable of offloading coal in all
weather conditions.
Limestone Supply Agreement
Successful operation of the project depends on a constant, dependable supply of lime, which is
used for flue gas desulphurisation. Limestone, the raw material for lime, is abundant through-
out the Philippines, with more than 19 billion tonnes being available for development. The pro-
ject company entered into a Limestone Supply Agreement with Guanzon Lime Development,
Inc., the largest lime supplier in the Philippines, for a minimum term of five years.
Plant Operation and Maintenance Agreement
Under the Plant Operation and Maintenance (O&M) Agreement, signed in December
1995, Ogden Philippines Operating, Inc., the project operator, is responsible for the oper-
ation and maintenance of the generating facility. The agreement is a cost-reimbursable
contract starting on the Commercial Operations Date with an initial term of 25 years, and
provisions for extension or earlier termination under mutually acceptable terms and con-
ditions. The project operator’s obligations are guaranteed by Ogden Projects, Inc., a sub-
sidiary of Ogden Energy.
Management Services Agreement
In September 1996 Quezon Power entered into a Project Management Services Agreement
with InterGen Management Services (Philippines), Ltd, an affiliate of InterGen, for day-to-
day management of the project. The initial term of the agreement extends 25 years from the
Commercial Operations Date, with provisions for extension or early termination. Under the
QUEZON POWER, THE PHILIPPINES