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Firstly, you may be asking why on earth one would wish to do this. It's an attempt to workaround the fact that SysPhS-1.1 does not support Modelica's 'initial equation'; there are circumstances where if you have a variable instead of a parameter you can still initialise it at startup using other parameters elsewhere.
Consider this base:
model Gain
extends SISO;
replaceable parameter Real k;
equation
y = k * u;
end Gain;
k as a variable (not a parameter) within the context of the extending Gain1, but it doesn't:
model Gain1
extends Gain(redeclare Real k);
end Gain1;