TERM OF THE FRAMEWORK AGREEMENT. The New Framework Agreement will become effective from the date of the agreement to 31 December 2025. Prior to the expiration of the term of the New Framework Agreement, the parties shall submit the Energy Supply Transactions under the New Framework Agreement to the authorities of their respective holding companies, being the Company (in the case of CR Gas Chenzhou) and CR Sanjiu (in the case of CR Sanjiu Chenzhou) for consideration, and the parties shall procure the authorities of their respective holding companies to approve the extension of the term of the New Framework Agreement, each extension shall not exceed three years or such other duration permitted under the applicable laws and regulations, and the relevant extensions of terms are subject to the applicable laws and regulations as well as obtaining the approval of the independent shareholders of the Company (where applicable). The same extension mechanism applies to each and every extended term of the New Framework Agreement. If the parties fail to obtain the above approvals from their respective holding companies, the Framework Agreement shall automatically lapse on the expiry date of the Framework Agreement. In the event that the New Framework Agreement is not extended in accordance with the terms of the New Framework Agreement or that the New Framework Agreement is terminated through no fault of CR Gas Chenzhou, subject to compliance with all relevant rules and regulations by CR Gas Chenzhou and the Company (including the applicable requirements under the Listing Rules), CR Gas Chenzhou shall transfer to CR Sanjiu Chenzhou the construction of the Energy Station constructed pursuant to the New Framework Agreement in accordance with applicable rules governing the transfer of state-owned assets; in addition, subject to compliance with applicable approving procedures, CR Sanjiu Chenzhou shall compensate CR Gas Chenzhou based on the remainder of the term for energy supply as contemplated by the parties. energy consumption under the New Framework Agreement will be as follows:– Electricity: the price of the national electricity grid of Hunan Province of the PRC minus RMB0.02 per kwh. Steam: RMB313.07 per tonne, which is calculated based on the price of steam produced by natural gas boilers per tonne and the price of steam produced by biomass boilers per tonne. The price of steam produced by natural gas boilers is in turn based on the price of industrial natural gas announced by Chenzhou Municipal Development and Reform Commission in China and costs of operation of the boilers as at the date of the New Framework Agreement. Since there is no market-guided public price for steam produced by biomass boilers, the price of steam produced by biomass boilers is in turn based on the predicted theoretical costs plus reasonable profit (with reference to the profit margin of steam produced by natural gas boilers in the transactions contemplated under the Framework Agreement) as at the date of the New Framework Agreement. Provision of cooling energy: RMB0.34 per kwh, which is calculated based on the price of natural gas announced by Chenzhou Municipal Development and Reform Commission in China for industrial use and costs of operation of the boilers as at the date of the New Framework Agreement, the average daily price of the national electricity grid of Hunan Province of the PRC as at the date of the New Framework Agreement, various coefficients relating to creation of energy for cooling and costs of relevant operations. Provision of heating energy: RMB0.66 per kwh, which is calculated based on the price of natural gas announced by Chenzhou Municipal Development and Reform Commission in China for industrial use and costs of operation of the boilers as at the date of the New Framework Agreement, various coefficients relating to creation of energy for heating and costs of relevant operations. Pursuant to the New Framework Agreement, if there is any change in the price of natural gas for industrial use as announced by the Chenzhou Municipal Development and Reform Commission in China in determining the above price, the parties agree to separately negotiate the price of energy supply. The parties agree that, the prices for energy supply pursuant to the New Framework Agreement shall in no event exceed market prices. CR Sanjiu Chenzhou agrees to make monthly payments for its energy consumption in advance based on the estimated amount of energy to be consumed for the relevant month, and settle the balance for the amount specified in the bill based on the records on the actual energy consumed for the relevant month.
Appears in 1 contract
TERM OF THE FRAMEWORK AGREEMENT. The New Framework Agreement will become effective from on the date of the agreement to 31 December 2025for a term of three years. Prior to the expiration of the term of the New Framework Agreement, the parties shall submit the Energy Supply Transactions under the New Framework Agreement to the authorities of their respective holding companies, being the Company (in the case of CR Gas Chenzhou) and CR Sanjiu (in the case of CR Sanjiu Chenzhou) for consideration, and the parties shall procure the authorities of their respective holding companies to approve the extension of the term of the New Framework Agreement, each extension shall not exceed three 3 years or such other duration permitted under the applicable laws and regulations, and the relevant extensions of terms are subject to the applicable laws and regulations regulation as well as obtaining the approval of the independent shareholders of the Company (where applicable). The same extension mechanism applies to each and every extended term of the New Framework Agreement. If the parties fail to obtain the above approvals from their respective holding companies, the Framework Agreement shall automatically lapse on the expiry date of the Framework Agreement. In the event that the New Framework Agreement is not extended in accordance with the terms of the New Framework Agreement or that the New Framework Agreement is terminated through no fault of CR Gas Chenzhou, subject to compliance with all relevant rules and regulations by CR Gas Chenzhou and the Company (including the applicable requirements under the Listing Rules), CR Gas Chenzhou shall transfer to CR Sanjiu Chenzhou the construction of the Energy Station constructed pursuant to the New Framework Agreement in accordance with applicable rules governing the transfer of state-owned assets; in addition, subject to compliance with applicable approving procedures, CR Sanjiu Chenzhou shall compensate CR Gas Chenzhou based on the remainder of the term for energy supply as contemplated by the parties. the prices to be paid by CR Sanjiu Chenzhou in respect of its energy consumption under the New Framework Agreement will be as follows:– Electricity: the price of the national electricity grid of Hunan Province of the PRC minus RMB0.02 per kwh. kwh Steam: RMB313.07 RMB271.3 per tonne, which is calculated based on the price of steam produced by natural gas boilers per tonne and the price of steam produced by biomass boilers per tonne. The price of steam produced by natural gas boilers is in turn based on the price of industrial natural gas announced by Chenzhou Municipal Development and Reform Commission in China for industrial natural gas prices and costs of operation of the boilers as at the date of the New Framework Agreement. Since there is no market-market- guided public price for steam produced by biomass boilers, the price of steam produced by biomass boilers is in turn based on the predicted theoretical costs plus reasonable profit (with reference to the profit margin of steam produced by natural gas boilers in the transactions contemplated under the Framework Agreement) as at the date of the New Framework Agreement. Provision of cooling energy: RMB0.34 RMB0.35 per kwh, which is calculated based on the price of natural gas announced by Chenzhou Municipal Development and Reform Commission in China for industrial use and costs of operation of the boilers as at the date of the New Framework Agreement, the average daily price of the national electricity grid of Hunan Province of the PRC as at the date of the New Framework Agreement, various coefficients relating to creation of energy for cooling and costs of relevant operations. operations Provision of heating energy: RMB0.66 RMB0.55 per kwh, which is calculated based on the price of natural gas announced by Chenzhou Municipal Development and Reform Commission in China for industrial use and costs of operation of the boilers as at the date of the New Framework Agreement, various coefficients a coefficient relating to creation of energy for heating and costs of relevant operations. operations Pursuant to the New Framework Agreement, if no adjustment to the prices set out above will be permitted during the a trial-run period being the first three years from the Commencement Date. Thereafter, prices can be adjusted should there is be any change in changes to the price of natural gas for industrial use as announced by the Chenzhou Municipal Development and Reform Commission in China in factors determining the above price, the parties agree to separately negotiate the price of energy supplyprices set out above. The parties agree that, the prices for energy supply pursuant to the New Framework Agreement shall in no event exceed market prices. CR Sanjiu Chenzhou agrees to make monthly payments for its energy consumption in advance based on the estimated amount of energy to be consumed for the relevant month, and settle the balance for the amount specified in the bill ▇▇▇▇ based on the records on the actual energy consumed for the relevant month.
Appears in 1 contract
Sources: Framework Agreement