Presentation on Licensing Procedure for Power Plants Oct 2020 .pdf
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PRESENTATION ON LICENSING PROCEDURE
FOR SETTING UP POWER PLANTS
Presentation By : Emmanuel Mumba
Legal Counsel – ERB
October 2020
1
Presentation Outline
F
ERB Licensing Mandate
F
Licensing Steps for Power Plant
F
ERB Licensing Procedure
F
General requirements for Licensing
F
Specific Licensing Requirements
2
ERB Licensing Mandate
The Energy Regulation Board (“ERB”) is mandated to
issue Licences to any person/entity wishing to establish
an enterprise in the energy sector by the:
oThe Energy Regulation Act no. 12 of 2019; and
o The Energy Regulation (Licensing) Regulations
1998, SI No. 2 of 1998.
3
Licensing Steps for Power Plants
Obtain ZEMA Approval
for Proposed Project Site
Apply for
Construc,on Permit
at ERB
Proceed to Construct
the Genera,on Plant
Apply for Opera,on
Licence to Generate
Electricity with
Tenure of 30 Years
4
ERB Licensing Procedure
LICENCE APPLICATION
FORMS SUBMITTED IN
TRIPLICATE TOGETHER
WITH SUPPORTING
INFORMATION AS PER
APPLICABLE LICENCE
CHECKLIST
PAYMENT FOR
APPLICATION
FORMS
PROVISIONAL LICENCE ISSUED
AFTER PAYMENT
(23 DAYS)
APPLICATION GAZETTED AT
GOVERNMENT PRINTERS
(FOR 14 DAYS)
APPLICATION VERIFIED
IN PRESENCE OF
APPLICANT
APPLICANT INVOICED FOR
LICENCE PROCESSING FEE
BOARD APPROVAL
APPLICATION RECEIVED
RECORDED IN PUBLIC
REGISTER
APPLICATION PROCESSED
FOR TECHNICAL AND
FINANCIAL ASSESSMENTS
ISSUANCE OF STANDARD
LICENCE
(60 DAYS)
5
General Licensing Requirements
The general licensing requirements include:
üBusiness Plan for 5 years for Initial Applications and 3 Years
for Renewal Applications
üLatest signed Audited Financial Statements (for
incorporated entities) by an Audit Firm registered with ZiCA
(from the previous years but not more than 2 years) (if
business is already operational for over 2 years)
üCertificate of Incorporation or Certificate of Registration of
the applicant issued by relevant agencies within Zambia
6
General Licensing Requirements Cont’d
ü Proof of funds, i.e. Bank statement (six months
bank statement for business already in existence
for more than 6 months) or commitment letter
from Sponsor (on the same terms as the
Applicant)
ü Current list of Shareholders and Directors issued
by the relevant registration agencies in Zambia
ü Latest annual returns from the relevant
registration agency in Zambia
7
General Licensing Requirements Cont’d
ü Valid Tax Clearance Certificate from Zambia
Revenue Authority (ZRA)
8
Specific Licensing Requirements
Completed appendices showing:
i)Details for the Power Station Owned Or Operated by
the Licensee including; the flow chart, electrical
drawing, and detailed geographical location; and
ii)Questionnaire on corporate governance practices and
audit- related practices
9
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