re. request for oft-er supply of coal to duyen hai 3

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Ref No.. CLM/CS/DH3E/l 4
Date; September 27, 2014
RE.
REQUEST FOR OFT-ER SUPPLY OF COAL
EXTENSION THERMAL POWER PLANT
TO DUYEN HAI 3
Dear Sir/Madam,
(hereinafter called
Basing on the Master Contract signed by and between Vietnam Electricity
,,EVN:,) and Vietnam National iloal and Mineral Industries Holding Corporation Limited
(hereinafter called "Vinacomin"), Vinacomin - Coa
(hereinafter called "Coalimex" or "Purchaser") is Ioo
detailed offers for supply of coal to Duyen Hai 3 Exte
called "DH3E TPP") on a long-term contrac basis
(hereinafter called "Supplier(s)")'
sellers, coal traders, coal-mine owners, coal producers, etc.
Suppliers:
potential
The following information should be noted by the
1.
Description of DH3E TPP Project:
plant utilizing
The DH3E Tpp project consists of a 1x600MW coal fired thermal power
sub-bituminous and/or bituminous thermal coals'
DH3E TPP is
The construction of DH3E TPP is expected to be started in late 2014, and
ltrst
currently scheduled to come into commeroial operation in 2018' Accordingly'
2018.
early
or
late2017
shipments of coal to DH3E'fPP are expected to take place in
Hai District,
The DH3E Tpp is located in Mu U Hamlet, Dan Thanh Commune, Duyen
Vietnam'
S'R'
Tra Vinh Province, at the Mekong river mouth, in the southern part of
2.
The DH3E TPP's Demand for Coal:
power generation of DH3E TPP must be
is 30 years)'
contracted under long-term coal supply agr ents (The designed TPP's life
and
agreement
the
of
date
Each agreement shall have a term commencing on the effective
continuing for a period of not less than l0 years'
coal required to meet committed
capacity
that they will
The design of the DH3E Tpp boilers and their main auxiliaries will be such
quality/specification of
be capable of handling/burning a wide range of coals, in which the
coal shall ensure tnlt 1a; th-e thermal effrciency of the power plant is substantially
and
maintained; and (b) there is no adverse impact on the power plant's operation
maintenance costs.
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The total amount of coal to be supplied for DH3E TPP is expected to be 1.8 million metric
tonnes per annum after the plant have been putting into commercial operation.
Detailed information on requirements of coal technical specifications and Supplier's
eligibility and qualification are stated in the enclosed Annex 1 and Annex 3.
a
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Conditions of Offer:
Coalimex, in this regard, respectfully invites the eligible Suppliers who are interested in
this project to submit their offer for coal supply to DH3E TPP as described in accordance
with this Request for Offer (RFO) together with the following conditions:
(i)
This Request for Offer is open to the eligible Suppliers who have the capabilities
and experiences to cover all or a parl of the quantity of coal to be supplied as
specified in Section 2 of Annex 1. For the purpose of ow consideration, please
submit in your offer the following information:
o
Full specification (typical and range) of every type/brand/source of coal that
you are able and willing to supply to DH3E TPP in a long term (minimum 10
years). coal specifrcations shall comply with our requirements;
o
to
euantity of each typeibrandlsource of coal that you are able and willing
and
amount
annual
maximum
(minimum
and
supply io DH3E TPP per annum
p".ioa of years of supply contract) in a long-term basis (at least ten (10) years
from the commercial operation date of the DH3E TPP). The minimum volume
of each type/brand/source of coal that you are able and willing to supply to
DH3E TPP per annum shall not be less than 450,000 metric tonnes except for
the first commercial operation year. Failure to comply with the required annual
volume will be at Supplier's risk and may result in the non-consideration of its
offer. Depending on the coal specifications proposed by the Suppliers,
Coalimex wishes to discuss with the Suppliers to finalize the annual base
tonnages of thermal coal for the contract;
o
Base coal price (BCP) of each type/brand/source of coal that you intend and
plan to supply to DH3E T'PP. Please note that such BCP will be fixed for the
whole term of the coal supply agreement (csA). contract coal price will be
subject to Annex 2 attached herewith;
o
Name, location, annual production, and reseles of the coal mines where the
above-mentioned types/brand of coal comes from;
o
Name, location, specifications, particulars and restrictions, if any, of the
applicable load poits including their information and requirements including
pieferable u.rr.l specifications, shipping procedure, applicable ship-loading
rate in metric tonnei per day, applicable demurrage rate, applicable bulk carrier
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size range (including Max. LOA, Max. Beam, Max. Draft information); and
time for loading coal on a nominated vessel (max. 30.000 DWT) at such
proposed loading port;
o
Amount of and other info about performance/payment security
if
such
security is required stipulating in the CSA by you or your suppliers;
Whether a deferred payment at thifiy (30) days after the date of the bill of
lading is acceptable or not, although such a deferred payment is preferable.
(ii)
Each Supplier shall submit only one dossier of offer in one envelop. Any request
for clarification of the Request for Offer should be e-mailed to Coalimex at the email addresses given hereunder after receiving the RFO but no late than October
10, 2014. Coalimex will respond in writing to any request for clarification of the
RFO, which it receives, no later than October 13,2014. Coalimex will also hold a
meeting at 09h00 (local time) on October 13,2014 at the address given in Section 4
hereunder in order to respond in person to any clarification requested by any
prospective Supplier.
E-mail addresses for the purpose of clarification of the RFO:
pham hon gk han h,.lrEcoal i m ex t,n
haint(l)coalimex vn
vietdx(@coalimex.r'n
khai ct(d,c
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(iii)
o al
imex. r, n
[email protected]
At any time prior to the deadline for submission of offer, Coalimex, for any reason,
whether on its own initiative or in response to a clarification requested by a
prospective Supplier may (1) amend the terms and conditions mentioned herein,
and (2) extend the deadline for the submission
of offer.
(iv)
Offers shall remain valid at least until March 31, 2015. An offer valid for a shorter
period shall not be considered by the Purchaser.
(v)
The Suppliers shall give a detailed breakdown of the prices against each item for
the purpose of valuing variations, evaluating the rationale compared with similar
scope of supply and facilitating the negotiating process. Any item, which is not
given in details, may cause the delay in negotiation process attributable to the
Supplier's own risks and expenses.
(vi)
The Suppliers are required to submit, together with the offer, an offer security in a
form of a bank guarantee letter issued by a commercial bank or credit institution for
a value of US$100.000 (United States Dollars One Hundred Thousand). The bank
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guarantee shall remain effective for a period of thirty (30) days beyond the original
validity period ofoffers, or beyond any period ofextension subsequently requested
by the Purchaser. The form of the bank guarantee letter should be in accordance
with the Annex 4. By submission of the offer, every Supplier agrees that Coalimex
retains the right to request the guarantor for payment of the guarantee amount in
case the prospective Supplier (l) withdraws its offer during the validity period of
the offer, or (2) fails to negotiate the contract after Coalimex informs its acceptance
of offer, or (3) fails to sign contract with Coalimex in accordance with the terms
and conditions stated hereunder and proposed by the prospective Supplier, or (4)
fails to sign contract with Coalimex in accordance with the terms and conditions
agreed during the contract negotiation period. Unsuccessful Suppliers' offer
securities will be discharged or returned as promptly as possible, but not later than
thirty (30) days after the expiration of the period of offer validity prescribed by the
Purchaser. The successful Supplier's offer security will be discharged upon the
Supplier signing the CSA, and furnishing the performance security if such a
security is required.
(vii) The terms and conditions of contract for supply of coal shall be in accordance
with
the attached Annex 5, subject to Coalimex's right of amendments and/or further
negotiation.
(viii)
The prospective Suppliers shall bear all costs associated with the preparation and
submission of offer, negotiation and/or execution of contract. Coalimex will in no
case be responsible or liable for those costs, regardless of the conduct or outcome
of the offering process.
(ix)
Coalimex retains the right to (1) select any or several prospective Suppliers for
contract negotiation, and (2) accept or refuse any offer submitted by prospective
Suppliers without reason, explanation and compensation at any point of time prior
to awarding the contract.
(x)
By submitting their offer, prospective Suppliers shall deem accept the above
conditions whether they are specifically or explicitly stated in the offer or not,
although prospective Suppliers' explicit statement of acceptance is preferable.
4.
Submission of Offers:
Suppliers shall submit their offer to Coalimex by courier not later than 11h00 (local time)
on November 10. 2014 at the address as follows:
Coal Import Export Joint Stock Company
Address: No. 47, Quang Trung Street, I-Ioan Kiem District, Hanoi, S. R. Vietnam
+84 4 3942 4684
Tel:
+84 4 3822 5129
Fax:
Website: wr,r,w.coalimex.o0in.vn
Vinacomin
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Trung St, Hoan I(rem, Hanor Vietnam; Tel. +84 4 3942 4684',
COALIMEX
Attn:
Fax +84 4 3822
5129:
E-mall
Mr. Dao Xuan Viet, Deputy Manager, Coal Export-Import Department
The envelope containing the offer shall be sealed, and shall bear the Project name, title
and number of the RFO and a statement "DO NOT OPEN BEFORE" to be completed
with the time and the date specified in Section 5 hereunder. If the envelope is not sealed
and marked as required, the Purchaser will assume no responsibility for the offer's
misplacement or premature opening.
5. Opening of Offers:
Except otherwise decided by Coalimex, Coalimex will open all offers in the presence of
the Suppliers' representatives who choose to attend, at 14h00 (local time) on November
10,2014 at the place specified in Section 4 above.
The Suppliers' representatives who are present shall sign a register evidencing their
attendance.
Thank you for your cooperation. We look forwards to receiving your offer.
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General Director
Enclosure:
(1) Annex
I-
Technical Speci/ications
0) Annex2-Price
(3) Annex 3 - Supplier's Eligibility and Qualffication
(4) Annex 4 - Form of Olfer SecuritY
(5) Annex 5 - Contrctct Form
Page 5
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5129; E-mail:
ANNEX 1 _ TECHNICAL SPECIFICATIONS
1.
Qualify
Coal supplied to this plant shall be sourced mainly from Indonesia. Although the coal
sources may be varied, it is planned that on an annualized basis 70%o of the tonnage will
comprise sub-bituminous coal and 30Yo of the tonnage will comprise bituminous coal.
Specific data is based on the following table:
Sub-Bituminous
Coal A
(70" on CV)
Unit
Total Moisture
Bituminous
Coal B
Q0% on CV)
Typical
Range
Typical
Range
%;o
arb
34.00
<35.00
t2.00
<14.00
o/o
adb
1s.00
<25.00
8.00
<12.00
Yo adb
4.00
<8.00
9.s0
<17.00
Yo adb
42.00
*
40.00
%o
adb
39.00
o/o
adb
100.00
%o
adb
0.1s
Proximate analysis
35.00
55.00
Balance
42.50
22.00
-
42.00
Balance
100.00
0.10
-
0.70
0.3s
0.35
-
1.20
55
40-60
36
34-50
Kcal/kg
5,500
>4.900
6.300
>6.000
Kcal/kg
4,271
>4,100
6,025
>5.600
Kcal/kg
3.898
-
5 750
>5 150
1,350
>r,200
Caloric value
3,700
4,000
Ash fusion tempera ture
(reducing atmosphe re)
OC
1,150
OC
1,200
OC
r,250
1,600
1.300
1,600
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>1,i00
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COALIMEX
Other parameters (fypical):
Sub-Bituminous
Coal A
(70o/o on CV)
Range
Bituminous
Coal B
(30" on CV)
Typical
Ultimate analysis
72.41
77.30
s.46
1.06
0.19
Chlorine
Oxygen
*
others
0.01
0.01
20.88
15.58
100.00
Ash composition (7o in ash)
23.00
55.90
13.00
32.50
17.75
3.20
31.00
6.s0
r.70
0.60
1.80
0.25
1.00
0.50
6.00
MnrO+
Others metallic
oxides
0.20
0.04
0.s0
0.04
0.70
0.04
100.00
100.00
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COALIMEX
2.
D
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Quantity
The estimated quantities of coal required for DH3E TPP are as follows:
Planned Time Schedule
of DH3E TPP Project
Total Estimated Quantity required for
DH3E TPP
Year 2077
About 120,000 MT
Year 2018
About 1.000.000 MT
Year 2019 onwards
About 1,800,000 MT per annum
Page 8
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47
COALIMEX
, Qlang 'Irung St, Hoan Kiem, Hanoi, Vietnam; Tel: 1-84 4 3942 46g4: Fax
5129; E- mail:
ANNEX2_PRICESCHEDULE
Contract coal price formula:
GCND
CCP: BCP x
GCNB
Where:
CCP : the Contract
Coal Price (in US$/Tonne, FOBT) for the relevant calendar month in
which delivery is made FOB.
BCP : the quoted Base
Coal Price (in US$/Tonne, FOBT). This Base Coal Price
fixed for the whole term of the contract.
will
be
GCND : the simple average value of the globalCOAL NEWC Index as published weekly over
a month period immediately prior to the calendar month in which the applicable coal delivery
(FOBT) takes place.
GCNB
:
the simple average value of the globalCoAL NEWC Index as published weekly over
month close to the time of the contract price negotiation.
a particular
Qualify price adjustment:
Final price for each shipment (in US$/Tonne, FOBT) : CCP +l- Pn, where Pn is price
adjustments concerning actual quality parameters such as net calorific value, total moisture,
ash, sulfur, etc.
Formula for such Pn
will
be stipulated in Section 4 of Schedule 3 of the Contract Form.
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ANNEX 3 - SUPPLIER'S ELIGIBILITY AND QUALIFICATION
1.
This Request for Offer is open to the eligible Suppliers who meet the below-required
capabilities and experience from eligible source countries:
2.
a
.].
.
Supplier has no record or history of litigation or adverse performance in the past five
(5) years.
.
Supplier has the average annual turnover over the last three (3) years (20II,2012, and
2013) larger than twenty-tle (25) million USD.
.
Supplier has successfully performed at least two (2) coal supply agreements of at least
450,000 Metric tonnes per year in the last three (3) years.
A
Supplier may be a single entity, private entity or a government-owned entityr or any
combination of such entities with the intent to enter into an agreement supported by a
letter of intent or under an existing agreement in the form of a joint venture, consortium,
or association (JV). In case of a JV:
(i)
all partners shall be jointly and severally liable; and
(ii)
the JV shall nominate a representative who shall have the authority to conduct
all business for and on behalf of any and all the parlners of the JV during the
offering process and, in the event the JV is awarded the contract, during
contract execution.
The Supplier shall furnish, as part of its offer, documents establishing the Supplier's
eligibility to offer and its qualifications to perform the contract if its offer is accepted, as
follows:
o
Certificate of business resistration.
o
A declaration certifying that Supplier
has no record or history
of litigation or adverse
performance in the past five (5) years.
.
I
Audited Balance Sheets and Income Statements for the last three (3) years (201I,
2072, and 2073). If not required by the law of Supplier's country, other Financial
Statements acceptable to the Purchaser/Buyer for the last three (3) years.
Govemment-owned enterprises in the Purchaser's country may participate only if they are legally and
if they operate under commercial law, and if they are not a dependent agency of the
financially autonomous,
Purchaser.
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Page 10
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47 ,
COALIMEX
Qttang Trung St, Hoan I(iem, Hanoi, Vietnam; Tel: +84 4 3942 4684;
Fax +84 4 3822
5129; E-mall:
The proven records, such as the purchaser/buyer's certificate, to certify that Supplier
has successfully performed at least two (2) coal supply agreements of at least 450,000
Metric tonnes per yeat in the last three (3) years.
The list of proposed sub-suppliers for the procurement of coal. This list shall be
declared the country of "origin" of goods and services. Sub-supplier's authorization
(such as coal mine-owners etc.,) to confirm that the supply contract shall be executed
and completed successfully.
Evidence document proving the mining license/ mining permission and mineral export
license cover the period ofthe contract ofat least ten (10) years.
The details of the current economically mineable reserves at the particular mine(s)
from which the Supplier intends to supply the coal brand(s) offered plus the
economically mineable reserves that are forecast to exist at such mine(s) at the end of
2075, including report(s) on the investigation and evaluation of such coal mines, its
chemical analysis and heating values.
Documents showing annual coal production capability of particular mine(s) from
which the Supplier intends to supply the coal brand(s) offered.
o
Other relevant documents may be required in the future.
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Trung St, Hoan Krem, Hanoi Vretnam; 'l'el: 'r84 4 3942 4684; Fax'. + 84 4 382 2 5729;E-mail:
COALIMEX
ANNEX
4_
}'ORM OF OFI'ER SECURITY
[Bank's Name, and Address of Issuing Branch or OfficeJ
Beneficiary:
_
(hereinafter called "the Purchaser")
__ [Name
and Address of PurchaserJ
Date:
OFFER GUARANTEE No.:
We have been informed that [name of the Supplierl (hereinafter called "the Supplier") has
submitted to you its offer dated [date of the offer/ (hereinafter called "the Offer") for the coal
("the RFO").
supply under the Request for Offer No.
Furthermore, we understand that, according to your conditions, the Offer must be supported
by an offer guarantee.
At the request of the Supplier, we [name, address and BIC CODE of BankJ
hereby
irrevocably undertake to pay you any sum or sums not exceeding in total an amount of
[amount in figuresJ ([amount in wordsJ) upon receipt by us of your first demand in writing
accompanied by a written statement stating that the Supplier is in breach of its obligation(s)
under the offer conditions, because the Supplier:
1)
withdraws its Offer during the period of offer validity specified by the Supplier in the
Offer; or
2)
having been notified of the acceptance of its Offer by the Purchaser during the period of
offer validity, (i) fails or refuses to negotiate the contract, or (ii) fails or refuses to sign
contract with the Purchaser in accordance with the terms and conditions stated in the RFO
and proposed by the Supplier, or (iii) fails or refuses to sign contract with the Purchaser
in accordance with the terms and conditions agreed during the contract negotiation
period, or (iv) fails or refuses to furnish the performance security if required.
This guarantee will expire: (a) if the Supplier is the successful supplier, upon our receipt of a
copy of the contract signed by the Supplier and the Purchaser and the performance security
issued to the Purchaser if required in the contract; or (b) if the Supplier is not the successful
supplier, upon the earlier of (i) our receipt of a copy of your notification to the Supplier of the
name of the successful supplier who is not the Supplier; or (ii) thirty days after the expiration
of the Supplier's Offer that falls on [validity date o.f the Offer/
However,
in any circumstances, this
Guarantee
will
expire on [expiry date of the Offer
GuaranteeJ.
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Consequently, any demand for payment under this guarantee must be received by us at the
office on or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No.
758.
[signature(s)J
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E-mail:
COALIMEX
ANNEX 5 _ CONT CT FORM
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