KARNATAKA POWER CORPORATION LIMITED

1400 MW BIDADI COMBINED CYCLE POWER PLANT INTERNATIONAL COMPETITIVE BIDDING (ICB) ICB No. CETD/BIDADI/EPC/001 Date: 03.04.2010

KPCL invites sealed proposals from prospective Bidders for composite offer of Engineering, Procurement and Construction (EPC) for 1400 MW Gas based Combined Cycle Power Plant at Bidadi near Bangalore, Karnataka State, India. The Pre-qualification Requirement (PQR) and other details can be accessed from the KPCLs web site www.karnatakapower.com. The Bid Qualification Requirement and other details can also be had, free of cost from the Office of Chief Engineer (Thermal Designs), Karnataka Power Corporation Ltd, No. 22/23, Sudarshan Complex, 2nd floor, Sheshadri Road, Bangalore 560 009, Karnataka, India. Phone : 91-80-22206223; Fax: 91-80-22386517 Mob : 94495 98924 E-mail : ecedt@karnatakapower.com pcbidadi@gmail.com Last date for receipt of Prospective Bidders Qualification criteria and supporting documents is 22.04.2010 up to 1500 hours.

INTERNATIONAL COMPETITIVE BIDDING (ICB) ICB No.CETD/BIDADI/EPC/001 Date: 03.04.2010

Bids are invited for Engineering, Procurement, Construction (EPC) for 1400 MW Natural gas/Re-gasified LNG based Bidadi Combined Cycle Power Plant at Bidadi, Bangalore Dist. Karnataka State, India. 1.0 Introduction Karnataka Power Corporation Ltd. (KPCL), a Government of Karnataka Undertaking was incorporated in the Year 1970 with the objective of constructing and operating power-generating stations. KPCL has a present installed generating capacity of 5746 MW comprising Hydel, Thermal, Solar and Wind energy and the entire generation is sold to the Electricity Supply Companies of Karnataka state. KPCL has proposed to set up following Combined Cycle Power Plants consisting of 2 blocks of 700 MW (Combination of 2 GTGs + 2 HRSGs + 1 STG per block) totaling to 1400 MW capacity, located near Bilekempanahalli village, Bidadi hobli, Ramnagar taluk, Bangalore district, Karnataka state. Land and water are available for implementation of the projects. The site is located about 30 km from Bangalore along the BangaloreMysore highway. The nearest Railway station is Bidadi which is 3 km away from the site. An area of 70 ha is in possession of KPCL for establishing the plant. Action has been initiated for tie up of fuel supply (Natural gas/Regassified LNG). Gas is likely to be made available by 2012-13. Compound wall around BCCP plant site has been already completed. The project may be eligible for benefits under the mega power project policy of Govt. of India. 2.0 Salient features of the Bidadi Project site 1400 MW (2 x 700 MW) About 30 km from Bangalore Bangalore Rural Karnataka 715 m 120 47 43/ 77 0 24 02 280 C 65% RH 800 m x 800 m Tertiary treated water from Bangalore

Installed capacity Site location District State RL at site Latitude / Longitude Av. Site Ambient Temp Relative Humidity Site Dimension Source of water

Fuel 3.0

Natural gas / Regassified LNG Brief bid notification particulars International Competitive Bids for Engineering. Procurement & Construction (EPC) are invited from the eligible bidders for Design, Engineering, Procurement, manufacture, supply, transportation to site, storage at site, insurance, construction, erection, project management, testing, commissioning, initial operation, reliability operation and performance guarantee tests on EPC for 1400 MW gas based Bidadi Combined Cycle Power Plant proposed to be set up by Karnataka Power Corporation Limited (KPCL) at Bidadi, Bangalore District, Karnataka State, India.

4.0 4.1

Bid Qualification Requirement: The intending bidder should meet the following Bid-Qualification Requirements stipulated hereunder: a) The bidder shall be a regular manufacturer of Gas Turbine Generator (GTG) and Steam Turbine Generator (STG) meeting the requirement of sub-clauses 4.3 & 4.4 furnished in tender specification. The bidder should have designed, engineered/got engineered by others, supplied, erected, tested and commissioned at least one (1) combined cycle power plant with not less than 250 MW for GTG (ISO Condition) and 125 MW for STG (ISO Condition), which is in satisfactory operation for a period of not less than two years in the preceding 10 years. OR b) The Bidder shall be a regular manufacturer of either GTG or STG meeting the requirements as per sub-clause 4.3 or 4.4. The Bidder should have designed, engineered/got engineered by others, supplied, erected, tested and commissioned at least one (1) combined cycle power plant with not less than 250 MW for GTG (ISO Condition) meeting the requirements of sub-clause 4.3, which should be in satisfactory operation for a period of not less than two years in the preceding 10 years. The Bidder should have designed, engineered/got engineered by others, supplied, erected, tested and commissioned at least one (1) combined cycle power plant with not less than 125 MW for STG (ISO Condition) meeting the requirements of sub-clause 4.4, which should be in satisfactory operation for a period of not less than two years in the preceding 10 years.

OR c) The Bidder shall be a regular turnkey management and contracting organization who is executing installation of combined cycle power plants on EPC basis of not less than 250 MW for GTG (ISO Condition) and 125 MW for STG (ISO Condition) and also meets the requirements of subclause 4.1 (b) above except that he does not manufacture GTG and/or STG. In such a case, the Bidder shall prior to submission of Bid and at his cost, associate/collaborate with one or more manufacturers of GTG and STG, meeting the requirements of sub-clause 4.3 and 4.4, respectively, and shall be the suppliers of the GTG and STG for this Contract. In this case, the Bidder shall along with the Bid, furnish an agreement jointly executed by him and the manufacturers of the GTG and STG for successful performance of the combined cycle power plant including associated auxiliary equipments. The Bidder shall submit a copy of the agreement with the supplier along with Bid Documents. OR d) Bidder may quote as a Consortium of not more than two/three members. In such a case, the consortium members should individually or collectively fulfill the requirements of sub-clause 4.1 (a) or (b) or (c) above and the members of the consortium shall along with the bid, furnish an agreement jointly executed by them for successful performance of the combined cycle power plant under this contract, including GTG, STG and associated auxiliary equipments. The various members of the consortium shall be jointly and severally liable to the Owner including the performance guarantees. The Bidder shall submit a copy of the agreement with the suppliers along with Bid Documents. 4,2 The intending bidders shall furnish documentary evidences/performance certificates in support of the above bid qualification requirements along with the completed bid documents. The certificate furnished by the bidder shall be issued by the owners of the plant. The Board reserves the right to verify any information/documents furnished by the bidders should the circumstances so warrant. 4.3 GAS TURBINE GENERATOR SUPPLIERS The qualification requirements for the supplier is as listed below: 4.3.1 The Gas Turbine Generator manufacturer should have designed, manufactured, supplied, erected, tested and commissioned at least one (1) Gas Turbine Generator of unit capacity of 250 MW (ISO Condition) or above in combined cycle power plant which is in satisfactory commercial operation for a period of not less than two years in the preceding 10 years.

4.3.2 In case of Gas Turbine Generator manufacturer not fulfilling criteria in 4.3.1 above and is a licensee, he shall meet the following requirements: a) shall have successfully manufactured, supplied, erected, tested and commissioned at least one similar Gas Turbine Generator of the size, which is in satisfactory commercial operation for a period of not less than two years in the preceding 10 years. b) have a licensing agreement or a long term design and manufacturing collaboration agreement having a validity of at least five years from the date of Take over covering the Gas Turbine Generator offered, with a Gas Turbine Generator manufacturer, who on his own fully meets the requirements of sub-clause 4.3.1 above. c) shall furnish, along with the bid an undertaking jointly executed by him and his licensor/collaborator for the following as per the format enclosed in the bid enquiry documents: i. licensee shall have a collaboration agreement with the licensor who fully meets the requirement of 4.3.1 having a validity of at least five years from the date of Take over ii. licensor/collaborator will guarantee the satisfactory performance of the GTG along with associated auxiliary equipment. iii. The licensor / collaborator prepares all the designs, calculation, drawings including manufacturing drawings and all other documents. iv. GTG manufacturer obtains a certification from the licensor/collaborator that his (GTG manufacturers) manufacturing and shop test facilities are adequate to meet the standards of the collaborator and to meet the specified performance requirements of the equipments being supplied.

v. Licensor /collaborators quality assurance standards to be followed by the GTG manufacturer which will be made available to Owner or Owners Inspector or authorized representative as required for stage inspection. vi. Licensor/collaborator shall post suitable personnel at manufacturers works and site to supervise and ensure acceptable standards during manufacture, stage inspection, erection, testing and commissioning. vii. Licensor/Collaborators technical support will be made available as required by Owner / Owners Representatives answering Owner / Owner Representatives technical queries by way of correspondence and participation in all project review meetings during the execution of the Contract.

viii. Tools and tackles employed by the GTG manufacturer for site erection, site testing, commissioning and performance guarantee tests are to the satisfaction of Collaborator / Licensor. ix. Sub- vendors of the GTG manufacturer shall be approved by the Collaborator/licensor. x Licensor / Collaborator undertakes to bind himself jointly and severally along With the Bidder and GTG manufacturer to the Owner.

4.4

STEAM TURBINE GENERATOR SUPPUERS The qualification requirements for the STG supplier is as listed below: 4.4.1 The STG manufacturer should have designed, manufactured, supplied, erected, tested and commissioned at least one (1) STG of unit of 125 MW or above, in Combined Cycle Power Plant which is in satisfactory commercial operation for a period of not less than two years in the preceding 10 years. 4.4.2 In case of STG manufacturer not fulfilling criteria in 4.4.1 and is a licensee, he shall meet the following requirements: a) shall have successfully manufactured, supplied, erected, tested and commissioned at least one similar Steam Turbine Generator of the size, type offered which is In satisfactory commercial operation for a period of not less than two/three years in the preceding 10/15 years. b) have a licensing agreement or a long term design and manufacturing collaboration agreement having a validity of at least five years from the date of Take over covering the STG offered, With a Steam Turbine Generator manufacturer, who on his own fully meets the requirements of sub-clause 4.4.1 above. c) shall furnish, along with the bid an undertaking jointly executed by him and his licensor / collaborator for the following as per the format enclosed in the bid enquiry documents. i. have a collaboration agreement with the licensor who fully meets the requirements of 4.4.1 having a validity of at least five years from the date of Take over. Licensor / Collaborator will guarantee the satisfactory performance of the STG along with associated auxiliary equipment

ii.

iii.

The Licensor /Collaborator prepares all the designs, calculations, drawing including manufacturing drawings and all other documents. STG manufacturer obtains certification from the licensor/collaborator that STG manufactures/ manufacturing and shop test facilities are adequate to meet the standards of the collaborator and to meet the specified performance requirements of the equipment being supplied. Licensor /Collaborators quality assurance standards to be followed by the STG manufacturer which will be made available to Owner or Owners inspector or authorized representative as required for stage inspection. Licensor /Collaborator shall post suitable personnel at manufactures works and site to supervise and ensure acceptable quality standards during manufacture, stage inspection erection, testing and commissioning. Licensor/Collaborators technical support will be made available as required by Owner/Owners Representatives answering Owner/owners representatives technical queries by way of correspondence and participation in all project review meetings during the execution of the Contract. Tools and tackles employed by the STG manufacturer for site erection, site testing, commissioning and performance guarantee testes are to the satisfaction of collaborator / licensor. Sub-vendors of the STG manufacturer shall be approved by the Collaborator/Licensor. Licensor/Collaborator undertake to bind himself jointly and severally along with the Bidder and STG manufacturer to the Owner.

iv.

v.

vi.

vii.

viii.

ix. x.

4.5

To establish the financial capacity for performance of the contractual obligation, the bidder shall furnish documentary proof of having a minimum annual average turnover of Indian Rs.10,000 millions or equivalent in the past 3 years In case of Consortium, the combined minimum annual average turnover shall be Indian Rs.12,500 millions or equivalent in the past 3 years and the minimum average annual turnover of individual

members of the Consortium shall be Rs.1000 million or equivalent in the past 3 years. 4.6 Bidder shall furnish his audited annual report for the last three (3) years. 5.0 6.0 KPCL reserves the right to verify any information / documents furnished by the bidders should the circumstances so warrant. Calendar of bid activities: a) Date of Notice inviting Tender : 05.04.2010

b) Last date for receipt of request for Bid document by the prospective Bidders along with supporting documents : c) Issue of EPC bid document to pre-qualified bidders f) Pre-bid meeting g) Last date for receipt of completed bids 7.0 a) Request for bid documents : : :

22.04.2010 03.05.2010 20.05.2010 31.05.2010

The Bid documents will be issued only to those bidders who satisfy the stipulated pre-qualifying requirements in its entirety. The application requesting for issue of bid documents shall be accompanied with a DD for Rs. 2,00,000/only [Rupees Two Lakhs only (including all applicable taxes)] towards the cost of the bid document, drawn in favor of Karnataka Power Corporation Limited payable at Bangalore with complete documentary evidence for the minimum qualifying requirements to the address mentioned below. The requisition for the bid documents Requisition without the Demand Draft will be rejected. The bidders who are desirous of obtaining the bid documents through Post / Courier shall remit an amount of Rs. 2,00,300/-(Rupees Two Lakhs three hundred only) in the form of 2 Demand Drafts for Rupees 2,00,000/- towards cost of the bid document and Rupees 300/- towards the Post/Courier fee, drawn in favor of Karnataka Power Corporation Ltd., payable at Bangalore. c) 8.0 For those bidders who do not meet the qualifying requirements, only the cost of bid document will be returned. EMD and Validity of bids: The bids must be accompanied by an Earnest Money Deposit (EMD) for an amount of Rs.200 Million or equivalent US $ in the form of Bank guarantee or Demand Draft. The EMD amount does

b)

not carry interest. The bid offer and EMD shall be valid for a period of 180 days from the date of opening of bids. EMD is payable by the pre-qualified bidders at the time of submission of Bid document. 9.0 10.0 11.0 12.0 KPCL will not be responsible for any postal/courier delays in any correspondence related to bid activities. The decision of Karnataka Power Corporation Limited relating to this Bid process is final and binding on all Bidders. KPCL reserves the right to accept/reject any or all bids without assigning any reason thereof. No correspondence shall be entertained in this regard. Further details can be obtained from, Chief Engineer (Thermal Designs) Karnataka Power Corporation Ltd. No. 22/23, Sudarshan Complex, 2nd Floor Sheshadri Road, Bangalore 560 009 Karnataka, India. Phone: 91-80-22206223; Fax: 91-80-22386517 Mobile: 94495 98924 E-mail: ecedt@karnatakapower.com pcbidadi@gmail.com