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Supplyof Coalfor LakvijayaPowerPlant(900MW)
furnishedat the Pre Bid Meetingheld on 18thMarch,2015
Responses
Bidders.
soughtby Prospective
for the Clarifications
No.
sought
Clarification
t.
Bidder
soughtby a Prospective
1't Setof Clarifications
t.t
Instruction
to Bidders:PageITB3, PaymentTerms,Clause1.2.2
for supplyof coalshallbemadeby meansof an
Allpayments
as
letterof credit.Canthisbechanged
irrevocable
unconfirmed,
LC?
& irrevocable
or Confirmable
Confirmed
Response
LCcanbeopened
Confirmed
provided
thatthe
chargesare
confirmation
bornebythe Seller.
L.2
to
We referto Instruction
PageITBL2,Clause
Bidders:
Document
in Bidding
5.3.1.3.3
is requiring
minimum35%of thegivenexperience of Feb2015.
Thecompany
JointVenturepartnerhaving
shouldbetherewith eachindividual
partnerof theJointVenture.
let us
Please
50 %withthe leading
in
All requirements
specified
with the
a consortium
knowwhetherif a companyestablish
Document
as
the Bidding
miner/ miningcompanyfor supportof supplyof coalin terms
relatedto Qualification
of
will be met by
of qualityandquantity;andfinancialconditions
(lndividual
Joint
Bidders
/
the othermemberof the consortiumis eligibleto takepartin
Ventures)will
remain
t h i st e n d e r .
unchanged.
1.3
of Bidders
Instruction
to Bidders:PageITB10,Qualification
(lndividual
Clause
5.3.1.3.1.
/ JointVentures),
Instructionto Bidders: PageITB10, Qualificationof Bidders
(lndividual/JointVentures),5.1.3.2(b) & (c)
is
the detailsasfollowing
lnformuswhethersubmitting
acceptable.
Bidderwill provideLCC
theirdetailsasperForm1
i)
for their
Form
2
separately
thesamedetails
and
and
(JointVenture).
Partner
Consotium
asperForm3 for
ii)
Bidderwill provideallthedetails
(JointVenture).
Partner
theirConsortium
Eachpartnerof a Joint
iii)
Biddershallsubmitthe details
of theirConsortium Venturewill haveto fill allthe
Partner
asperForm4.
forms.
iv)
Form5 shallbefilledby BidderandtheirConsortium
Partner.
v)
Form6 will befilledbythe Bidder.
vi)
Form7 will befilledbythe Bidder.
vii)
Form8 will befilledbythe Bidder.
viii) Form9 will bejointlyfilledby Bidderandtheir
Partner.
Consortium
Form10 Details
ix)
of BidderaswellastheirConsortium
Partner
will begiven.
Page1 of 8
No.
Clarification
sought
Response
t.4
pageITB10,
Instruction
to Bidders: BidOpeningandEvaluation,
We referto PageITB11 in
(tndividual
of Bidders
Qualification
Clause
/ loint Ventures),
Bidding
Document
datedFeb
(a)& (b).
s.3.1.3.2
20L5.
Eachpartnerof a Joint
Informus,submitting
detailsasfollowsmeetstheabove
V e n t u rw
e i l lh a v et o f i l l a l l t h e
mentioned
criteria.
forms.
a) Annualturnoverwill be provided
bythe bidderandthey
All partners
including
the Lead
will be providing
allfinancial
statements
asdesired.
Partner
in a JointVenture
will
b) Theexperience
detailswill be providedby bidder,s
beconsidered
asthe Bidder.
Consortium
Partner
andtheymeetthe details
asdesired.
1.5
We wouldalsorequestyouto let usknowwhetherBidSecurity
valueandPerformance
Security
valuescanbe reduced.
2.
2ndSet of Clarificationssought by a prospectiveBidder
2.1,
Bid Validity, PageITB 2
All requirements
specified
in
the BiddingDocumentas
relatedto BidSecurityand
Performance Securitywill
remainunchanged.
All requirements
specifiedin
90 daysfromthe dateof bidsubmission.
the BiddingDocumentas
Request
to reducethe
sameto 30 days,asit is difficultfor anyproducer
/ vesselowners relatedto BidValiditywill
remainunchanged.
to providesucha longvalidity
giventhe marketdynamics.
2.2
Placeof Origin, Clause3 of tTB, page4O l4t
a ) Trustthereis no restriction
on the numberof coalmines
/ placeof originto bedeclared.
b ) ls blended
(asnotstatedotherwise
coalacceptable
pleaseref.pointd page11of tTB)
c) Woulda letterof minesupport
(frommine)be needed
2.3
Draft CSA,Quantity, (draft CSApage 5)
Reduction
quantityasperclause
5.1of thedraftCSAis
unworkable
in the present
format.Toensureclarity,
quantityto
besupplied
peryearto beadvised
by buyer's
at the beginning
of
eachcontract
yearfor mutualacceptance.
2.4
(a) No restrictions
(b) Suppliedcoalneedto
complywith the specifications
laiddown in the Bidding
Document.
(c)Alldocumentsasspecified
in the BiddingDocumentare
needed.
We refer to Draft CoalSupply
Agreement:Page4, Quantity
in BiddingDocumentdated
Feb2015.
Dueto operational
requirements,nomination
requirements
asspecified
would be requiredby the
Buyer.
Draft CSA,Determination of Quality, (draft CSApage g, Cl. 10)
a ) ls Bureau
Veritas(lnspectorate)
acceptable
at loadport
for supplies
fromIndonesia
andallorigins.
Page2 of 8
Acceptable
No.
Clarificationsought
2.5
Draft CSA,Clause9.4, page 8
2.6
DraftCSA,Clause10.3,page9
2.7
in the
specified
All requirements
including
excessive
seems
contaminants
of organic
Presence
to
asrelated
Document
Bidding
abilityto terminatethe contract- To review/ revisethis
will
contaminants
organic
mutually
the issues r e m a i nu n c h a n g e d .
clause,
statingbothbuyerandsellerdiscuss
a
settlement.
arrive
at
arising
out of thiseventwith a viewto
(whetherinterlabtolerance)
a) Definitionof discrepancy
port and loadport unclearand essentially
betweendischarge
LCCwill havethe rightto callumpireon everyshipment.
would suggestthe referencesample
b) In caseof discrepancy,
to be done by an independentSurveyormutually
analysis
agreedby buyerand sellerand not at buyer'soption.
in the
specified
All requirements
to
asrelated
Document
Bidding
will
remain
discrepancies
unchanged.
DraftCSA,Lawsand Arbitration,pageL6lt7
in the
specified
All requirements
to
Document
asrelated
Bidding
Law
and
Arbitration
Governing
will remainunchanged.
andplaceof
Lawwouldgovernthe contract
SriLankan
of fairplayand
In
the
interest
Arbitration
shallbeSriLanka
justiceneedto havearbitration
underthe LCIArules(London
Lawshallbea
& the Governing
Courtof Intl.Arbitration)
consider
Wales.
Could
England
and
lawof
substantiative
asthe placeof arbitration.
Singapore
2.8
DraftCSA,PricingBasis,page24
linkedto NewCastle
callsfor pricing
a)Thetenderdocument
for
having
countrylinkedindexes
Index wouldpropose
AP14
for SouthAfrica.
for example
multipleorigins,
2.9
Response
in the
specified
All requirements
asrelated
to
Document
Bidding
will remain
Coallndices
unchanged.
and PriceAdjustment,page25
DraftCSA,Specifications
a) Therejectionof VolatileMatter(arb)above39.9% may
quitea
restrictbuyer's
optionsasit woulddisqualify
we
request
to
therefore
few coalsfrom lndonesia,
increase
the limit above42 %.
on a/c HigherTM is not correct
b) Pricepenaltyseparately
specified
in the
Offeris madeon GCV(ARB) All requirements
andneedsto bedeleted.
related
to
Bidding
Document
as
theTM.
takesintoaccount
basiswhichalready
r
e
m
a
i
n
u
n
c
h
a
n
g
ed.
d
)
w
i
l
l
a
)
t
o
handling
at
andconsidering
c) Beinga naturalresource,
penaltybe not levied
multiplelevels
/ points,thatsizing
andbethereforedeleted.Therejectioncouldbe
retained.
above1300degreeC willdisqualify
d) AFTIDTRejection
otheroriginssuchasSouthAfrica/Australia.Therefore
requestto revisethe rejectionaboveL500degreeC.
2.LO Draft CSA,Payment, page 10
WhetherLCCcanopena confirmedL/C,with a clear
charges
to seller's
understanding
thatthe confirmation
account.
Page3 of 8
LCcanbeopened
Confirmed
providedthat the confirmation
charges
arebornebytheSeller.
No.
Clarificationsought
3.
3'dSet of Clarificationssought by a ProspectiveBidder
3.1
Instructionto Bidders: Clause5.1, PageITB9
"Thebid prices,lnterestratesand discountsreadout qt the
openingof Envelop- 2 will be considered
for evoluotion.No
alternativeofferswill be occepted."
Whatdoesthismeanin that if onewereto offera discount
subject
to negotiation.
Willthisbeconsidered
analternative
offerandhencenot accepted
or will it constitute
a partof the
original
offerwhichshallthenbeconsidered.
3.2
Response
Any discountsofferedby the
Biddershallbe firm and shall
not be subjectto negotiation.
Instruction
to Bidders: Clause5.4,PageITB15,Specimen
Calculation
for Moisture
Thetable usedin evaluationprocedures
Step1.1is ambiguous
as a MoistureContentof EXACTLY
an intiger(I2,13,14 or t5
%) canbe interpretedto fall into 2 bandsfor example73%can
be viewed as either L2-13%or L3-I4%eachof which attractsa
differentrateof penaltyand limitingvalue.
The exampleshown in the tender documentassumesthat 13%
Moisturefallsin the t3-I4% range,but it could EQUALLY
be
consideredto be in the rangeof 72-73%.
Forthe sakeof consistency
and goodorderthe tableshould
readBelow12%
L 2 % a n dl e s st h a n L 3 %
13% and fessthan t4% eIc etc
4.
4thSet of Clarificationssought by a ProspectiveBidder
4.L
fnstructionto Bidders: Clause5.3.1.3.2,SubCl. (b), PagetTB11
Clause/ Provision:
Haveexperience
in supplyingat leastthree (03)millionmetric
tons of coalin last36 monthsup to31stMarch2014(from 1't
April2011to 3L't March2OL4l.Out of thisthree (03)million
metrictons,minimumof one (01)millionmetricton of coal
havingGrossCalorificValue(As ReceivedBasis)of 5900 kcal/
kg or highershouldhavebeensuppliedto one purchaser.
Clarification:
We are of the opinionthat the supplyperiod(from 1't April
2011to 31'tMarch2014)mentionedin the bid documentdoes
not givethe currentsupplypositionof the bidder.
Hencewe requestyou to considersupplydatafrom 1'tApril
2 0 L L - 3 1 sM
t a r c h2 0 1 5 ,t h i sw i l l g i v ey o u t h e c u r r e n st u p p l y
position/ ordersof the bidders.
We ferventlyhopethat LCCshallconsiderour above
clarification
and incorporatethis conditionsas partof the Bid
Document.
Page4 of 8
Pleasereferto
Addendum
No.6
Pleaserefer to
AddendumNo.
No.
sought
Clarification
5.
5thSet of Clarificationssought by a ProspectiveBidder
5.1
Clause1.02,PageNo. 29, Sub Clause(g) [ Draft CSA]
Clarification
Wewouldliketo clarifyon whatdo meanby "LineBoat"in
perspective
?
lighterage
5.2
Clause1.04,PageNo. 31 [ Draft CSA]
ClarificationNORand TT clauseat disportis not mentioned,Pleaseadviseit
will be office day / office hrs ORATDNshinc+ TT of 12 hrs EIU
or USC.
Response
is
ln the eventthatthe Contract
on CIFterms,theSeller
awarded
such
conveyance
shouldarrange
Lanka
asa LineBoatto the Sri
officersattending
Government
and
to arrival departure
formalities
of the shipsetc.,at
safe
hiscostfor providing
passage
to/fromthe ship/sat
at thedischarge
the anchorage
port.
In the eventthe coalsupply
is awarded
on "ClF
Contract
master
of vessel
Jetty"terms,
shalltenderNoticeof Readiness
( N O Ro r N / R ) t ot h eS e l l e r
to be
and/orthe stevedores
bythe Seller
to
appointed
and
notto
the
ship,
discharge
the Buyer.
Sellershallinformthe Buyerof
the arrivalof theshipby
forwardinga copyof the N/Rfor
Buyer's
information
andfor the
to
Buyerto makearrangements
discharge
coalat theJettyof the
Plant.
the questionof Turn
Therefore,
Time(TT)shallnotapplyto the
Buyer.
Asarrangedby the Buyer,the
Jettyof the Plantwill be ready
coalfromthe
to discharge
are
barges,
whenthe barges
safelyberthedat theJetty,any
holiday
timeday,night,Sunday,
(ATDN
including
SHINC).
5.3
Clause1.09,PageNo.32,SubClause(b) [ DraftCSA]
Clarification
INSTEAD
directrepaircost"it shouldbeamend
of "reasonable
as"ActualRepairCost"
Page5 of 8
givenin the Bidding
Statement
Document
will remain
unchanged.
No.
5.4
Clarificationsought
Clause4.00, PageNo. 4, Sub Clause4.1 [ Draft CSA]
ClarificationLCCmightget 8 vesselsin Jan-Mar(eachmonth 8 vessel)with
in lessthan 50-55
440Kcargowhich cannotbe discharge
practicaldaysor 44 theoreticaldaysagainst30 daysallowed
whichwould leadto over lappingduringthe month & will have
cascadingeffect on the next month vessels.
5.5
Response
We also requestyou to incorporatethe below Clausein the
biddingdocumentof vesselto be incorporated
a. Clausefor overlapping
will
vessel(s)
NORfor overlapping
As stevedores,
of earlier
on
actual
completion
be
tendered
deemedto
/ ongoingvessel.TTto applythereafterper terms ie 12
hrs. USC.
b. Stevedoredamageclause(on mothervessel)is not
mentioned.Lateron, if LCCwill haveclausesameas
clauseat load port,then the clauseis one sided& does
not have provisionof surveyorto be appointedto
for damage.Same
decidethe nature/ responsibility
suitably.
shouldbe incorporated
c. Dischargerate of Mother vessel@10000mts pwwd shouldalsomentionbasismin 4x30mts cranesand
4x12cbm grabs.
vesselis usedby supplierto bringthe
d. In casea gearless
cargohow is cargogoingto be dischargedwithout
floatingcranesin placeor do we needto offer for
floatingcranechargesalso?
and
We hopethat LCCshallconsiderout aboveclarification
part
of the BidDocument.
theseconditionsas
incorporate
Page6 of 8
An operationalmatter,which
to in the
hasto be addressed
operationalperiod.
a . Pleasereferto the reply
to the questionNo.5.2.
b . The Buyershallnot be
for
responsible
StevedoreDamagesat
eitherthe loadport or
the dischargeport.
c. The Biddersare free to
mentiontheir envisaged
dischargeratestogether
with the modeof
i.e.by ship's
discharge
cranesor by floating
cranein the Form5 and
the Annex44.
d . lf any Bidderintendsto
usefloatingcrane/s,he
hasto makehisown
for the
arrangements
deploymentand useof
floatingcrane/s.
No.
Response
Clarificationsought
6.
6thSet of Clarificationssought by a ProspectiveBidder
6.1
(b),lPageITB111
ClauseITB5.3.1.3.2
(a)Thedefinitions
givenSri
rds
Standa
LankaAccounting
referto
LKAS
27 and28 (Please
willapply.
nka.com)
www.casrila
in theTenderDocument
wasamended
Thefollowing
clause
published
in the May
2AL4butwasnot present
in November
to havebeenspecifically
TenderDocument
andhenceappears
witha viewto
administration
bythe previous
changed
(b)Thisisa NewProcurement.
prejudicing
winningTender All requirements
our previously
andonlvrestricting
in
specified
BidSubmission.
need
Document
to
thisBidding
"Anytronsoctionsof supplyingcoalbetweenthe partnersof o
to
befulfilledby a Bidder
JointVentureformedto Bidfor thisTenderwill not be tokenfor
Bidder.
becomea responsive
experience
of the
considerotion
for thepurposesof assessing
JointVenture."
(c)& (d)Thismatterhasbeen
"similarlyany transoctionsof supplyingcoalbetweenthe
2, Part
to in Schedule
addressed
porentdnd/or subsidiaries
of a Bidderor a
andtor associotes
B,of DraftCoalSupply
pdrtner of a loint Venturewill not be tokenfor consideration
Agreement.
of the Bidderor Joint
experience
for thepurposesof ossessing
Venture,os the cosemoy be."
words"pa,lsrr!
a) Whatisthe definitionof the highlighted
We requesta
ond " dssociates".
ondlor subsidiaries
suchthatisclearon howrelatedor
specific
definition
Parties
in particular,
Associated
shallbe interpreted.
under
b) We askthat sincewe werepreviouslv
oualified
Criteria
andwerea winningBid
all pre-Qualification
whetherwe shouldagainhaveto qualifyfor the 1't
time.
Stageyet againfor the 3'dsuccessive
for highergrade
c) lt is usualpractice
to offerbonuses
Please
whetherbonuses
aswellas
material.
advise
penalties
doesnot
shallbeofferedaspurepenalties
grade
material.
of higher
encourage
the delivery
d) Please
alsoconfirmthat if GCVhigherthan5300is
delivered
thatanybasepriceshallreflectthe prorate
in thefinalinvoice.
increase
valuedelivered
to calorific
8.
Bidder
8thset of Clarifications
soughtby a Prospective
8.1
PriceProposal
mustbe
priceproposal
i.e.FOBT
bythe
Canwe submittwo proposal;
bythe Bidder
proposal
for supplyof coalanda separate
byXXX submitted
CoalSupplier
A 5 in
according
to theAnnexure
for Freight& Logistic
services?
the Bidding
Document.
8.2
lsthe plantrunningat itsfullcapacity
of 900MWat present?
gearsufficient
Doesthe unloading
to discharge
thetotal
required
withinthe 5 monthperiod?
capacity
8.3
Yes
Yes
process
Inthe logistic
fromAnchorage
to Terminals,
doesLanka N o
coalprovideanyequipment
/or thatwe canhirefromLanka
Coal?
Page7 of 8
No.
Response
Clarification sought
8.4
Howmanybarges
do youoperatecurrently?
Fivearein operation
8.5
What are the capacities
of the currentbarges?
Avg. 2000 MT
8.6
What is the dailydischarge
rate of the conveyorbelt?
'J.2,50O pwwd
MT
8.7
HaveLanka
Coalbegunbuilding
upthesecondary
conveyor
belt Notyet
already?
lf not whendo theyexpectto do it ?
8.8
Howmanycranes
mountedin thejetty?is it 4 or more?
Four
8.9
Howlong(hours)doesistakefor a bargeto arriveat thejetty
fromthe mothership?
About45 minutes,weather
permitting.
9.
9thSet of Clarificationssought by a ProspectiveBidder
9.1
TheAFT(lDT,FT)rejectionlimitsarelowandnotto the benefit
All requirements
specifiedin the
to the powerplant.In actuality
mostlPPsprefera higherAFT
BiddingDocumentas relatedto
wherethe ashwouldeventually
emergein theflueor wet ash AFTwill remainunchanged.
ratherthanfoulingor slagging
in the boiler.
9.2
matter,which
Theamountof time required
to discharge
theentireamountof An operational
has
to
be
addressed
to in the
coalisshortandsomeestimation
hasto bedonein preparation
period.
operational
for thedischarging.
lt wouldbeappreciated
if we couldoneout
moreaboutthe serviceproviders
of barging,
stevedores
and
At the discretion
of the Bidder
floatingcranesin the eventwe usecapevessels.
9.3
Theissueof sizingpenalties
or limitsisonethatisalsorelated
to the HGIof coal.A lowerHGInumberrefersto a hardercoal.
TheIndonesian
coalthatwe planto tenderwithisonewitha
highHGInumberandhencesofter.Asa resultfineswillbe
All requirements
specified
in the
Bidding
presentto someextent.Howeverhavinga highHGIresultsin
Document
asrelated
to
remain
sizing
will
unchanged.
easierhandling
withoutdifficultgrinding
costs.
Therein
in there
penalties
issomecontradiction
in the high
for sub 50mmand
you
over 2mmlimitsandhopethat
maylookintothisto
someextent.
Page8 of 8