The objective of BAS Power is to find, define and develop for Investor a portfolio of a number of  investments projects, within Industrial and Municipal CHP which fit the Investor’s strategy in Poland.

The development of the projects can be divided in three phases:
 

a. Phase 1

The defined projects will be on „Opportunity Study" level, which will contain the project objectives, assumption of technology, definition of parties, proposed ownership structure, permits, SWOT analyse, preliminary feasibility assessments and possibility of privatisation.
At the end of this phase the following documents will be completed for each of the object:

· MoU between the owner of  facility and BAS/ Investor
· LoI concerning power/heat oftake and fuel delivery
· LoI concerning permits
· Opportunity Study with project development budget and time schedule.

This phase can be finished within 6 months.
 
 

b. Phase 2

Prefeasibility Study

This phase will cover:

· Profitability analysis
· Preliminary Governmental/Authority support
· Environmental requirements analysis
· Total permit requirement analysis
· Financing model and ownership analyse
· Technical alternative study
· Preliminary Risk analysis
· FSA condition analysis
· PDA/HDA condition analysis
· Marketing, lobby
· Risk analysis, competitors

This phase is assumed to take 12 months and result in following documents:
· MoU between assumed shareholders
· MoU concerning power offtake
· MoU concerning fuel delivery
· MoU concerning Authority support
· Prefeasibility Study report.

BAS Power will in this phase give support for the Investor in co-ordination of the phase, with special weight on local and authority base.
 
 
 
 
 

c. Phase 3
 
 

Feasibility Study and Detailed Project Development
· Governmental/Authority support  Implementation Agreement Signed
· Licensing permit   Final permit obtained
· Profit repatriation permit              „
· Environmental permit               „
· All other permits obtained
· PDA/HDA, FSA, JVA   Signed
· O&M Contract         „
· Financing    Approved
· Turn Key contract   Signed

The BAS Power task and costs will be the same as in the phase 2.