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
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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.

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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  
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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)  

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General Licensing Requirements
The general licensing requirements include:
üBusiness Plan for 5 years for Initial Applications and 3 Years
for Renewal Applications
üLatest 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)
üCertificate of Incorporation or Certificate of Registration of
the applicant issued by relevant agencies within Zambia
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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
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General Licensing Requirements Cont’d

ü Valid Tax Clearance Certificate from Zambia
Revenue Authority (ZRA)

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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

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