230
IABlE, STrong, EFFICIEnT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 570
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
S Dollars, unless otherwise stated
40. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
g. Engineering, Procurement and Construction Agreement
On 23 April 2008, MSW entered into an Engineering, Procurement and Construction “EPC” Agreement with PT Punj Lloyd Indonesia “Punj Lloyd Indonesia” and Punj Lloyd Pte Ltd “Punj Lloyd” with a total contract value of
approximately €18,068 thousand and €34,174 thousand, respectively. Under this agreement, Punj Lloyd Indonesia will provide construction services, while Punj Lloyd will supply equipment for the construction of the Tanjung
Tabalong 2x30 MW coal fired power plant project, located in Kalimantan, Indonesia.
As at 31 December 2013, one unit of the power plant has commenced its operation.
h. Legal proceedings
From time to time, the Group is involved in various legal proceedings as a normal incident to the Group’s business. The Group is of the opinion that adverse decisions in any pending or threatened proceedings, or that any amounts it
may be required to pay by reason thereof will not have a material adverse effect on its consolidated financial condition or the consolidated results of its operations.
i. Overland Conveyor Construction Contract
On 29 December 2009, JPI, Sandvik Asia Ltd and PT Tripatra Engineers and Constructors, entered into contracts for the construction of an Overland Conveyor, for the purpose of supporting Adaro in increasing its coal production
capacity with total contract amounts including provisional sums of approximately US237,000. During the year ended 31 December 2013, there had been no spending related to this contract and the project had
been put on hold Note 12.
j. Fuel Facilities Agreement
On 1 September 2009, IBT entered into a Fuel Facilities Agreement with Shell. Based on the agreement, Shell agreed to build a fuel storage facility with a minimum capacity of 60,000 tonnes of diesel on land belonging to IBT
and IBT agreed to build shared facilities within the terminal for unloading and loading of the diesel. For the use of the shared facilities, Shell agreed to pay a handling fee of a certain amount per barrel of the loaded quantities of
diesel. The agreement will expire on 31 December 2022. At the end of the agreement period, Shell will transfer the ownership of the fuel storage facility to IBT.
On 26 August 2013, IBT and Shell amended and restated the Fuel Facilities Agreement whereby Shell agreed to build an additional jetty and install the flow meters within the terminal for loading diesel in consideration of the
increased demand for diesel. At the end of the agreement period, Shell will transfer the ownership of the fuel storage facility, additional jetty, flow meters together with the transfer of operation to IBT. Under this agreement,
IBT agreed to amend the handling fee for the use of the shared facilities. This Amended and Restated Fuel Facility Agreement is effective from 1 January 2014.
k. Ministerial Regulation No. 182009
In August 2009, the Minister of Energy and Mineral Resources issued Ministerial Regulation No. 182009 on the procedure of the amendment of investment in order to implement Coal Cooperation Agreement and Coal Contract
of Work, which regulates that if Adaro amends the investing plan, Adaro should obtain the approval of Director General on behalf of the Minister of Energy and Mineral Resources.
u r p
r o
F Il
E o
u r
M E
SSA g
E S
o u
r B u
S In
E S
S
o u
r pE
o pl
E
o u
r g
o v
Ern A
n C
E o
ur C
o M
M un
IT IE
S o
u r I
n v
E S
T o
r S
o u
r F
In An
C E
S
DAro EnErgy 2013 AnnuAl rEporT
231
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 571
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
S Dollars, unless otherwise stated
40. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
l. Mining Law No. 42009
