1. shopping
2. auctions

sought
Clarification
No.
7.
7th Set of Clarificationssought by a ProspectiveBidder
7.L
BidValidity,PageITB2
Response
to reducethe sameto 30 Pleaseseethe answerto Question
Request
90daysfromthe dateof bidsubmission.
2.L
days,asit is difficultfor anyproducer/vesselownersto providesucha
giventhe marketdynamics.
longvalidity
7 . 2 Placeof Origin,PageITB40 l4L, Clause3.
Please
seethe answerto Question
on the numberof coalmines/ placeof origin 2 . 2
Trustthereis no restriction
to bedeclared.
7 . 3 Pfaceof Origin,PageITB40 l4t, Clause3.
Please
seethe answerto Question
(asnot statedotherwise- pleaseref. point d
ls blendedcoalacceptable
2.2
7.4
7.5
oase11 of ITB)
Placeof Origin,PageITB40 lLt, Clause3.
//ould a letterof mine support(from mine)be needed
Pfaceof Origin,PageITB40 l4t', Clause3.
)leaseseethe answerto Question
2.2
in thetenderround N o
specbut is not qualified
lf a coalmeetsthe contractual
at a futurepoint?
canbeaddedandqualifed
7 . 6 BidBond,PageITB5, Clause3.7
Bankof Sri
Please
logon to Cenrtal
for openingof the bid bond?
Pleaseconfirmwhich banksare acceptable
Lankawebsite.
7.7
Shallappreciatename/listof the banks
ConditionsPrecedent,PageCSA3, Clause2
supply
in orderto show3 yearsof uninteruppted
whatis required
Unclear
PleaseseeAddendumNo. 6
pregiven
these,
mines
are
mines.Which
fromthe respective
is required
provided
qualalready
upfront?
5.t15.2
7 . 8 ( a ) Quantity,PageCSA3, Clause
in the
quantityasperclause5.1of the draftCSAis unworkable
Reduction
Please
seethe answerto Question
per
year
quantity
to
be
present
be
supplied
to
format.To ensureclarity,
2.3
yearfor mutual
of eachcontract
by Buyer's
at the beginning
advised
acceptance.
PageCSA3, Clause5.t15.2
7 . 8 ( b ) Quantity,
rightto reducequantityif theysupply
with LCC's
dealing
thisistheclause
to flag:
Fourissues
lessenergy
thananticipated.
(1)it isentirely
to decidewhethertherehasbeena
withinLCC's
discretion
Evententitling
themto reducetonnagein anyquarter,
Reduction
(2)if LCCreduces
to bea
tonson accountof whattheydetermine
in NQQs
for anyreduction
Event,
the wording"afterallowing
Reduction
pursuant
thattheywouldn'thaveto payusthe
5.1."suggests
to thisClause
shortfallpenaltyfor thosetons,
Noted
(3)if LCC
Event,
theycaninstruct
decidetherehasbeena Reduction
including
by reducing
or
the delivery
schedule,
supplier
to change
(except
whereNORhas
cargoes
cancelling
anynumberof vessels/future
beentendered),
already
(4)thereis no minimumleveltowhichLCCcanreduce/canceltons
on
anynumberof tonsfor
Eventi.e.theycancancel
account
of a Reduction
anyperiod.
No.
7.9
Clarificationsought
Surveyor,
PageCSA8, Clause10
(lnspectorate)
ls Bureau
Veritas
for supplies
from
acceptable
at loadport
Indonesia
andallorisins.
Response
Acceptable.
7 . 1 0 Surveyor,PageCSA8, Clause9.4
Presence
of organic
contaminants
seemsexcessive
including
abilityto
-This
terminate
the contract
entitlesLanka
to request
randomtestingfor
organic
contaminantsissues
asisare:
(a)if supplier
whoshouldbedoingthetesting
agreesthis,wouldspecify
Please
to Question
seethe answer
(atthe momentjustsaysin accordance
withASTMstandards,
but issilent
2.5.Mutualagreement
at the
asto e.g.beingdoneby a mutually
agreedindependent
surveyor),
and(b)
operational
stagemaybe possible.
if LCC
findscontaminants,
theyareentitledto damages
andto terminate
theagreement
completely.
Wouldsuggest
to review/revise
statingbothbuyerandseller
thisclause,
discuss
mutually
arising
out of thiseventwitha viewto arriveat
the issues
a settlement.
PageCSA9, Clause10.3
7 . 1 7 Surveyor/ Discripancies,
(whetherinterlabtolerance)betweendischarge
Definitionof discrepancy
port
port and load
unclearand essentially
LCCwill havethe rightto callumpireon every
Pleaseseethe answerto Question
shipment.
2.6
Incaseof discrepancy,
would suggestthe referencesampleanalysis
to be
done by an
independent
Surveyormutuallyagreedby buyerand sellerand not at
buver'soption.
7 . L 2 Lawsand Arbitration, PageCSAt6lL7, Clause25126
SriLankanLawwouldgovernthe contractand placeof Arbitrationshallbe
SriLanka.In the interestof fair playandjusticeneedto havearbitration
underthe LCIArules(London
Courtof Intl.Arbitration)
& the GoverningLaw
law of Englandand Wales.Couldconsider
shallbe a substantiative
Singapore
as the placeof arbitration.
All requirements
specifiedin the
BiddingDocumentas relatedto
Arbitrationand Governing
Lawwill
remainunchanged.
All requirements
specified
in the
7 . t 3 Pricing,PageCSA24, Schedule2
Document
as
related
Bidding
to Coal
index wld propose
Thetenderdoc.callsfor pricinglinkedto NewCastle
Indices
will remainunchanged.
having
countrylinked
indexes
for multipleorigins
eg.APl4for SouthAfrica.
The basefreight rate for a price
Whatis the basefreightrate in regardto the deliveredCIFprice?How can quotedon CIFbasishasto be shown
by the Bidderin AnnexA5 of lTB.The
a singlerate be appliedif supplieris offeringfrom multipleorigins?
variationformulaeof this baserate
2 (PartA) of
are shownin Schedule
of
the CSA.Optionsof determination
a singlerate for suppliesfrom
multipleoriginslie with Bidder.
7 . L 4 Pricing,PageCSA24, Schedule2
7. r5 Specs,PageCSA26
39.9%mayrestrictbuyer's
Therejection
of VolatileMatter(arb)above
optionsasit would
quitea few coalsfrom lndonesia,
we request
to
therefore
disqualify
42%.
limit
above
increase
the
in the
All requirements
specified
BiddingDocumentand Addendum
No. 5 as relatedto VolatileMatter
w i l l r e m a i nu n c h a n g e d .
sought
Clarification
No.
Response
7 . 1 6 Specs,PageCSA25
in the
specified
TM is notcorrectandneedsto be Allrequirements
on a/c Higher
separately
Pricepenalty
to TM
asrelated
Document
Bidding
deleted.
theTM. w i l lr e m a i nu n c h a n g e d .
takesintoaccount
basiswhichalready
Offerismadeon GCV(ARB)
7 . r 7 Specs,PageCSA26
at multiplelevels
handling
andconsidering
/
Beinga naturalresource,
The
deleted.
penaltybe not leviedandbetherefore
points,
thatsizing
couldbe retained.
reiection
in the
specified
Allrequirements
asrelatedto Size
Document
Bidding
w i l lr e m a i nu n c h a n g e d .
in the
specified
All requirements
AFT
asrelated.to
Document
above1300degreeC will disqualifyother originssuchas Bidding
AFTIDTRejection
will remainunchanged.
IDTRejection
SouthAfrica/Australia
7 . r 8 ipecs, PageCSA26
7.r9
thereforerequestto revisethe rejectionabove 1500 degreeC
Payment,PageCSA25
of
opensLCswithfor the purposes
PlsconfirmwhichbankLLCtypically
pavment
against
coalsupply?
7 . 2 4 Payment,PageCSA20
that
WhetherLCCcanopen a confirmedL/C,with a clearunderstanding
the confirmationchargesto seller'saccount
)eople'sBank,SriLanka.
3onfirmedLCcan be opened
rrovidedthat the confirmation
:hargesare borneby the seller.
lf the weightat the Transhipment
port is less
Point Pointof the discharge
weightat theTranshipment
weightisfinalunless
Saysthatloadport
(seedefinition
is lessthanloadport thanthe weightat the loadport,as
on page3, l,25kmnorthof Colombo)
theni.e. per repectivedraftsurveyreports,
to statewhathappens
isto agreethat,suggest
weight.lf supplier
whatisthefinalweight.
thenthe weightat the
Pointwill be takenas
Transhipment
the finalweight.lf the loadport
weightis lessthanthe weightat the
Point,thenthe
Transhipment
loadportweightwill be takenasthe
finalweight.
7 . 2 1 Weighing,CSAClause7
7 . 2 3 Incoterms,CSAClause8.2
2010not2000.Rather
than"priority
Request
to Incoterms
to be referred
Allrequirements
specified
in the
shallalways
begivento the Agreement",
Bidding
Document
asrelated
to Size
wouldsuggest
between
the
to have"to the extentof anyinconsistency
w i l lr e m a i nu n c h a n g e d .
Incoterms
andthe termsof thisAgreement,
thetermsof thisAgreement
shallprevail".
in the
Allrequirements
specified
Document
asrelatedto Size
"or shallbe betterthan Bidding
willapply,wouldsuggest
lf anypremiums
deleting
will remainunchanged.
suchqualityspecifications".
9
7 . 2 4 Quality,CSAClause
7 . 2 5 Quality,CSAClause9.1
Wouldsuggest
to have"Buyer'svessel"insteadof "delivered
to Buyer's
is
coalstockpiles"
thatsupplier
, sothatthere'sno roomfor interpreting
responsible
at the otherendof the shipment.Wouldalsoqualifythe
foreignmatterpointwith "substantially".
Buyer's
CoalUnloading
and
Handling
Facilities
is nota definedterm,soshouldnot be capitalised.
Will be finalzedonceit is determined
whetherthe deliveryis on FOBor CIF
No.
Clarificationsought
Response
7 . 2 6 Quality,CSAClause9.3
pricefor
"LCCin anyeventwill paythe invoiced
Wouldaddthefollowing
thecoal,andanyreduction
in pricethat is mutually
agreed
shallbe
separately
credited
back."
Acceptable.
7 . 2 7 Provisionof Analysis,CSAClause10.5
Thesellerto providethe resultof analysisissuedbythe indepenedent
All requirements
specifiedin the
port
inspection
agencymutuallyagreedat the
of loading.Suggest
deleting BiddingDocumentas relatedto
the requirementof the analysiscertificateto be signedand stampedby the analysiswill remainunchanged.
customsof the countryof port of loading.
7.28(al nvoicing,CSAClause12
la)Wouldsuggestdeleting"and hasnot beenrejectedby the Buyer
pursuantto Clause9.3",as believewe shouldnot haveto wait for them to
lecide whetherto reject before we invoice,or to haveto withhold an
nvoiceif they wronglyreject,(b) would specifythe numberof copies,
Allrequirements
specified
in the
ratherthan leavingit up to agreement,(c)samepointon the last
paragraph
Bidding
Document
asrelated
to
of cl. 12:would specifyall the supportingdocumentation
will remainunchanged.
required,ratherthan saying"all such...as...are
requiredto enablethe Buyer Payment
lo establish
the accuracyof the amountsclaimedin the relevant
3ommercialInvoice"- as is leavesscopefor Lankato delaypayment
(d) doesthe lastsentencemakesense?(e) Understand12.L
:onsiderably,
s beingseparatelyreviewed/willbe re-drafted.
7.28(b)FM,CSAClause13
(1) NeitherPartyshallbe liablefor any delayin performingor failureto
(exceptfor delayor failureto pay moneywhen due)
performits obligations
due to eventsof ForceMajeureincludingbut not limitedto actsof public
civilcommotion,
enemy,war, blockade,revolution,riot, insurrection,
power
strike,lockout,explosion,
fire,flood,storm,tempest,earthquake,
failure,regulations
or orders,includingbut not limitedto prohibitionof
Allrequirements
in the
specified
exportor import and/ or any other causeor causesbeyondthe reasonableBidding
Document
asrelated
to Force
controlof the Seller,the Seller'ssupplier,or the Buyerwhetheror not
Majeurewill remainunchanged.
similarto the causesenumeratedabove.Failureto deliveror to accept
of an eventof a
deliveryin wholeor in part becauseof the occurrence
ForceMajeureeventshallnot constitutea defaulthereunderor subject
eitherpartyto liabilityfor any resultinglossor damage.
Clarificationsought
of a ForceMajeureevent,the Partyaffectedby
2) Uponthe occurrence
the ForceMajeureshallpromptlygivethe otherPartywrittennoticeof the
detailthe facts
of ForceMajeure,and shallspecifyin reasonable
the eventof ForceMajeure.Wheresuchnoticeis not given
nstituting
of any
promptly,
ForceMajeureshallnotjustifythe non-fulfillment
ThePartyaffectedby the ForceMajeure
gationsunderthiscontract.(3)
(a)
duringthe periodof
writtenupdates
shallgivetheotherParty regular
in the
specified
I requirements
and(b)promptwrittennoticewhenthe ForceMajeure
the ForceMajeure,
to Force
asrelated
Document
Bidding
ceaseto exist.
circumstances
Majeurewill remainunchanged.
agreeto usetheir
bothParties
(4)Subject
to belowpoints(a,b,c)
effortsto cureanyeventof ForceMajeureto the
ivereasonable
thatthe
possible
to do so,it beingunderstood
nt thatit is reasonably
shall
disputes be
lockouts,
andanyotherindustrial
ttlementof strikes,
ForceMajeure.
of the partyasserting
ithinthesolediscretion
, CSAClause13
asa resultof a
to provideanyof thefollowing
5)TheSelleris not required
ForceMajeureevent:
coal;
) substitute
por| or
for the coalfromthe mineto the loading
transport
b) alternate
) alternateloadingfacilitiesfor the coal.
or
(6)Intheeventof ForceMajeurepreventing
fromshipping
theSeller
in the
specified
I requirements
preventing
such
Buyer
from
accepting
the
or
delivering
the material,
asrelatedto Force
Bidding
Document
for the durationof
shallbe suspended
respectively,
deliveries
material,
will
remain
unchanged.
Majeure
suchForceMajeureeventbut if suchForceMajeureshalllastmorethan60
with
(sixty)
maybecancelled
days,thetonnageinvolved
calendar
ForceMajeureby
immediate
effectby the Partynot havingdeclared
writtennoticeto the otherParty.
aneventof Force
shallnotconstitute
Financial
or economic
circumstances
Majeure.
in the
specified
requirements
Document
asrelatedto
giveswrittennoticeBidding
"lf theSeller
Please
of the clause:
addin the beginning
substitute
coalwill remain
to the Buyerthat it cannotmeetitssupply...".
unchanged.
SubstituteCoal,CSAClause14.1
bstituteCoal,CSAClause14.2
(starting"lf the Buyerhasto
ld deletethe secondsentence
not
want
themgoingout andbuying
...") on the basisdo
specified
in the
Iternativecoaland presentingus with a bill. lf they want a procedurefor All requirements
Document
Bidding
asrelatedto
at happensif we advisethem we cannotdelivercoal,then suggest
in moredetailsothatwe have
andwritingout thisprocedure
ntroloverit e.g.thattheywouldhaveto cometo usbeforeany
purchase
we candiscuss.
etc. Perhaps
substitute
coalwill remain
unchanged.
No.
Clarificationsought
Response
by the Buyer,CSAClause15.2
7 . 3 2 Warranties
LCCto confirmthat theywill haveall licences,permits,certificates
etc in
placebythetimeof the InitialSupplyDateandthesamewouldbe
precedent
conditions
to the contract.WouldalsoneedLCCto defineinitial
supplydateto removeanyambiguity
Noted
Wouldsuggest
adding
onemorepoint:"(e)Therearenoactions,
suitsor
proceedings
pendingor, to the bestof the Buyer'sknowledge,
threatened,
againstor affecting
Buyer
the
beforeanycourtor administrative
bodyor
arbitral
tribunalthatcouldreasonably
beexpected
to materially
adversely
affecttheabilityof the Buyerto meetandcarryout itsobligations
under
thisAsreement".
AgainstContingent
Feesand Benifits,CSAClause15.3
7 . 3 3 Warrnties
Allrequirements
specified
in the
iuggestdeleting
the wordingof 15.3andreplace
it with:"EachParty
Document
asrelated
to
warrants,
represents
andundertakes
to the otherPartythat it will comply Bidding
will remainunchanged
at
rvithallapplicable
laws,rulesandregulations
including
withoutlimitation warranties
thisstage.
sanctions,
anti-corruption,
anti-money
laundering
andtaxlawsin
performing
thisAgreement".
Allrequirements
7.34 CSAClause18.1
specified
in the
Bidding
Document
asrelated
to
fVouldrequestto deletefrom the lastsentence:
"lossof profitand
consequential
losswillremain
-'xpectation
of profitand".
unchanged.
7 . 3 5 CSAClause19
All requirements
specified
in the
f the selleragreesfor site visits,would needto specifywhat the definition
Bidding
Document
asrelated
to site
)f "Mine" is,and what LCCmeansby "eachof the Seller'sother
visitswill remainunchanged
at this
Facilities".Please
specifyif the visitswill be subjectto applicable
stage.
'egu
lations/monitoring?
CSA
20 b
Clause
7.36
lequestto deletethe wordings
"the Plantof the subject
matterof".
Noted
7 . 3 7 CSAClause21
Notethismakesthe entirecontracteffectively
subjectto a changein
No
environmental
laws.
Wouldrequest
to deletethisclause
entirely.
CSAClause23
7.38 No assignement,
Wouldrequestto deleteandreplacewith heading
"Assignment,
transfer
and/ornovation",
andtext:
Noted
"NeitherPartymayassign
or transferor novateallor anypartof its rights
prior
and/orobligations
underthisAgreement
withoutthe otherParty's
writtenconsent".
CSAClause24
7 . 3 9 MutualColaboration.
Wouldrequest
to deleteon the basisthatshortof FMthereshouldbe no
Noted
basisfor suspending
Having
obligations.
thisclause
in opensthewayfor
themto iustifulookinsto reneeotiate.
7.40 Notices,CSAClause27
Suggest
includingemailas a noticeoptionas well,alongwithfax and email Noted
Cetails.
CSAClause31
7.4L EntireAgreement,
(inthe lastline)"bya writing"with Noted
Wouldsuggest
replacing
the wordings
''bv written
a
amendment
or addendum".