Request for Proposal (RFP) Taunsa 120 MW Project

5/23/2018 Request for Proposal (RFP) Taunsa 120 MW Project

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120 MW TAUNSA HYDROPOWER PROJECT

REQUEST FOR PROPOSAL (RFP)FORDEVELOPMENT ON BUILD, OWN, OPERATE ANDTRANSFER (BOOT) BASIS AS AN INDEPENDENT

POWER PRODUCER (IPP)

VOLUME-1

THE PUNJAB POWER DEVELOPMENT BOARD (PPDB)ENERGY DEPARTMENT

LAHORE

MAY 2014

DRAFT


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Request for Proposal (RFP) Taunsa 120 MW Hydro Power Plant

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SUMMARY TABLE

VOLUME-1

INVITATION OF PROPOSALS

PART-A: DESCRIPTION OF PROJECT

PART-B: INSTRUCTIONS TO BIDDERS

PART-C: PROPOSAL PREPARATION AND EVALUATION

PART-D: ADDITIONAL INSTRUCTIONS FOR PROPOSAL PREPARATION

PART-E: PROPOSALS EXHIBITS

Exhibit I: Proposal Letter

Attachment I-1: List of Attachments to Proposal Letter

Attachment I-2: Power (s) of Attorney

Attachment I-3: Proposal Security

Attachment I-4: Lender Acknowledgement Letter

Attachment I-5: Proposal Summary Information

Exhibit II: Financial Data in Support of Project

Exhibit III: Technical Data and Submittals

Exhibit IV: Bidder and Contractors Information

Exhibit V: Exceptions to RFP Documents

Exhibit VI: Bidders Project Schedule

Exhibit VII: Proposed Company Organization ChartExhibit VIII: Proposed Annual and Levelized Tariff

PART-F: GENERAL INFORMATION REGARDING IMPLEMENTATION OF PROJECT

VOLUME 2

PART I Draft of Implementation Agreement (1A)

PART II Draft of Power Purchase Agreement (PPA)

PART III Draft of Water Use Agreement (WUA)

PART IVThe Punjab Power Generation Pol icy 2006, revised in 2009and subsequent amendments therein

PART VNEPRAs Mechanism for determination of tariff forHydropower projects

PART VI Draft of Sovereign Guarantee


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TABLE OF CONTENTS


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Table of Contents

INVITATION OF PROPOSALS ........................................................................................................ 8

PART A: DESCRIPTION OF PROJECT..................................................................................... 12

1.0 BACKGROUND ..................................................................................................................... 122.0 LOCATION AND ACCESS OF PROJECT AREA ................................................................... 123.0 GEOGRAPHICAL LOCATION OF TAUNSA HYDROPOWER PROJECT ............................... 124.0 ENGINEERING GEOLOGY ................................................................................................... 154.1 FLOOD DESCRIPTION ......................................................................................................... 164.2 HYDRAULIC MACHINERY, E&M EQUIPMENT AND STEEL WORKS................................... 175.0 SALIENT FEATURES OF 120 MW TAUNSA HYDROPOWER PROJECT .............................. 175.1 GENERAL .............................................................................................................................. 175.2 HYDROLOGY ......................................................................................................................... 185.3 SEDIMENT ............................................................................................................................. 185.4 FLUSHING TUNNEL .............................................................................................................. 186.0 OPERATION OF BARRAGE DURING & AFTER HYDROPOWER DEVELOPMENT .............. 18

PART B: INSTRUCTIONS TO BIDDERS..................................................................................... 19

DEFINITIONS.................................................................................................................................. 201.0 PURPOSE OF BIDDING INSTRUCTIONS .............................................................................. 272.0 ELIGIBLE BIDDERS ............................................................................................................... 273.0 PROGRAMME ........................................................................................................................ 274.0 DISCLAIMER .......................................................................................................................... 285.0 CONFIDENTIALITY ................................................................................................................ 286.0 BRIBERY AND COLLUSION/INTEGRITY PACT ..................................................................... 287.0 APPLICATION AND EVALUATION FEES ............................................................................... 298.0 LEGAL REQUIREMENT ......................................................................................................... 299.0 ONE PROPOSAL PER BIDDER/CONSORTIUM .................................................................... 29

10.0 ALTERNATE PROPOSAL ...................................................................................................... 3011.0 RESPONSIBILITIES OF THE BIDDER/CONSORTIUM........................................................... 3012.0 LAWS AND REGULATIONS ................................................................................................... 3013.0 QUALIFICATION REQUIREMENTS ....................................................................................... 3114.0 COST OF BIDDING ................................................................................................................ 3115.0 SITE VISIT ............................................................................................................................. 3116.0 ACCEPTABILITY OF BID ....................................................................................................... 3217.0 CLARIFICATIONS AND AMENDMENTS ................................................................................ 3217.1 CLARIFICATIONS .................................................................................................................. 3217.2 AMENDMENTS ...................................................................................................................... 3217.3 NON-BINDING REPRESENTATION OR EXPLANATION ....................................................... 3217.4 EXTENSION IN DEADLINE FOR SUBMISSION OF PROPOSALS ......................................... 33

PART C: PROPOSAL PREPARATION AND EVALUATION....................................................... 34

1.0 GENERAL .............................................................................................................................. 352.0 PREPARATION OF PROPOSAL ............................................................................................ 353.0 PROPOSAL CONTENTS OF ENVELOPE I ......................................................................... 354.0 PROPOSAL CONTENTS OF ENVELOPE II ........................................................................ 365.0 OTHER INFORMATION TO BE PROVIDED BY THE BIDDERS ............................................. 366.0 LANGUAGE OF PROPOSAL .................................................................................................. 387.0 CURRENCY ........................................................................................................................... 388.0 PROPOSAL VALIDITY ........................................................................................................... 389.0 PROPOSAL SECURITY ......................................................................................................... 3910.0 PRE-BID MEETING ................................................................................................................ 4011.0 FORMAT AND SIGNING OF PROPOSAL .............................................................................. 41

12.0 SEALING & MARKING OF BIDS............................................................................................. 4113.0 PROPOSAL SUBMISSION REQUIREMENTS ........................................................................ 42


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14.0 SUBMISSION DATE OF THE PROPOSALS ........................................................................... 4315.0 LATE PROPOSALS ................................................................................................................ 4316.0 MODIFICATIONS AND WITHDRAWAL OF PROPOSAL ........................................................ 4317.0 PROPOSAL OPENING AND EVALUATION............................................................................ 4318.0 CONFIDENTIALITY ................................................................................................................ 4419.0 SELECTION PROCESS ......................................................................................................... 44

20.0 CLARIFICATION OF PROPOSALS ........................................................................................ 4521.0 CORRECTION OF ERRORS .................................................................................................. 4622.0 PRESENTATION BY THE BIDDERS ...................................................................................... 4623.0 DETERMINATION OF RESPONSIVENESS ........................................................................... 4424.0 RANKING OF QUALIFIED PROPOSALS................................................................................ 4925.0 PPDBS RIGHT TO ACCEPT AND REJECT PROPOSALS..................................................... 4926.0 SELECTION OF SHORTLISTED BIDDERS ............................................................................ 5027.0 CLARIFICATIONS AND FINALIZATION ................................................................................. 5028.0 SELECTION OF SUCCESSFUL BIDDER AND ISSUE OF LOS .............................................. 5129.0 SELECTION CYCLE IN BRIEF ............................................................................................... 5229.1 INVITATION, PRE-BID MEETING AND PROPOSAL SUBMISSION ....................................... 5029.2 PROPOSAL OPENING, PRESENTATION BY THE BIDDERS AND

RESPONSIVENESS CRITERIA ............................................................................................. 50

29.3 RANKING OF PROPOSALS AND NOTIFICATION OF SHORT LISTED BIDDERS ................. 5029.4 SELECTION OF SUCCESSFUL BIDDER AND ISSUE OF LOS .............................................. 5130.0 BIDDERS TO BE CAREFUL ................................................................................................... 51

PART D: ADDITIONAL INSTRUCTIONS ON PROPOSAL PREPARATION............................... 53

1.0 ADDITIONAL INSTRUCTIONS ON PROPOSAL PREPARATION ........................................... 542.0 ASSUMPTIONS USED FOR TARIFF MODEL ........................................................................ 553.0 STRUCTURE OF TARIFF....................................................................................................... 564.0 CAPACITY CHARGE (CP) ................................................................................................... 56

5.0 ENERGY CHARGE (EP) ...................................................................................................... 58

6.0 INDEXATION OF ANNUAL TARIFF ..................................................................................... 59

7.0 CALCULATION OF LEVELIZED TARIFF IN PROPOSAL AND EVALUATION ..................... 638.0 SUUPLEMENTAL PAYMENTS ............................................................................................ 63

9.0 CARBON CREDIT ............................................................................................................... 63

10.0 DELAY IN COMMISSIONING .............................................................................................. 63

11.0 DIVIDEND WITHHOLDING TAX .......................................................................................... 64

12.0 PAYMENTS BY THE COMPANY INTO WORKERS WELFARE FUND ................................ 64

13.0 COST OF METERING SYSTEM .......................................................................................... 64

14.0 FORCED OUTAGES ............................................................................................................ 64

15.0 ONE-TIME ADJUSTMENTS ................................................................................................. 65

16.0 COST PAID BY THE COMPANY TO PROCURE WATER METERS .................................... 65

PART-E: PROPOSAL EXHIBITS.................................................................................................. 67

EXHIBIT I ................................................................................................................................... 68PROPOSAL LETTER ..................................................................................................................... 68INTEGRITY PACT .......................................................................................................................... 72ATTACHMENT I 1 ....................................................................................................................... 74LIST OF ATTACHMENTS TO PROPOSAL LETTER ...................................................................... 74ATTACHMENT I 2 ....................................................................................................................... 75POWER OF ATTORNEY ................................................................................................................ 75ATTACHMENT I 3 ....................................................................................................................... 77PROPOSAL SECURITY BANK GUARANTEE ................................................................................ 77ATTACHMENT I 4 ....................................................................................................................... 79LENDER ACKNOWLEDGEMENT LETTER .................................................................................... 79ATTACHMENT I 5 ....................................................................................................................... 80

PROPOSAL SUMMARY INFORMATION........................................................................................ 80


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EXHIBIT II ................................................................................................................................... 81FINANCIAL DATA IN SUPPORT OF PROJECT ............................................................................. 821.0 FINANCING PLAN .................................................................................................................. 822.0 USES OF FUNDS ................................................................................................................... 833.0 FINANCING DRAWDOWN SCHEDULE ................................................................................. 844.0 COST DISBURSEMENT SCHEDULE ..................................................................................... 85

5.0 SUMMARY OF TERMS AND CONDITIONS OF DEBT FINANCING ....................................... 856.0 DEBT REPAYMENT SCHEDULE ........................................................................................... 86

7.0 PROJECTED CASH FLOW STATEMENT AND DEBT SERVICE COVERAGE

RATIOS . .............................................................................................................................. 87

8.0 EQUITY COMMITMENT LETTERS ........................................................................................ 879.0 FINANCIAL ADVISOR OR ARRANGER INFORMATION ....................................................... 8710.0 INSURANCE PLAN ............................................................................................................... 87

EXHIBIT III ................................................................................................................................. 88TECHNICAL DATA ........................................................................................................................ 891.0 GUARANTEED DATA FOR PROJECT .................................................................................. 892.0 BASIC TECHNICAL INFORMATION...................................................................................... 893.0 DRAWINGS ............................................................................................................................ 904.0 PROPOSED PLANT DESIGN AND COMPONENTS ............................................................... 904.1 OVERALL DESIGN OF PLANT ............................................................................................... 905.0 DETAILED TECHNICAL INFORMATION ................................................................................ 906.0 DATA SHEETS ....................................................................................................................... 997.0 DRAWINGS (DATA SHEET) ................................................................................................... 968.0 PROJECT SUMMARY DATA .................................................................................................. 998.1 TYPE OF PLANT .................................................................................................................... 998.2 STANDARDS APPLIED TO PROJECT DESIGN AND EQUIPMENT SELECTION .................. 998.3 INFORMATION OF MAJOR EQUIPMENT ............................................................................ 1028.4 LIST OF PARTICIPANTS...................................................................................................... 1028.5 ADDITIONAL DATA .............................................................................................................. 1039.0 ENVIRONMENTAL DATA ..................................................................................................... 10410.0 ELECTRIC INTERCONNECTION DATA ............................................................................... 10411.0 PERFORMANCE DATA ....................................................................................................... 10511.1 GUARANTEED ESTIMATED CAPACITY .............................................................................. 10511.2 PLANT CAPACITY ............................................................................................................... 10511.3 GUARANTEED OVERALL PERFORMANCE OF PLANT ...................................................... 10512.0 TECHNOLOGY AND DESIGN DATA .................................................................................... 10612.1 TECHNICAL MATURITY ...................................................................................................... 10613.0 OPERATIONS AND MAINTENANCE DATA ......................................................................... 10713.1 OPERATING CHARACTERISTICS ....................................................................................... 10713.2 MAINTENANCE .................................................................................................................... 10713.3 OPERATIONS AND MAINTENANCE STAFF AND SERVICES ............................................. 108

EXHIBIT IV ................................................................................................................................ 109

BIDDER AND CONTRACTORS INFORMATION ......................................................................... 1101.0 LEGAL FORM AND ORGANIZATION OF BIDDER ............................................................... 1102.0 SIGNIFICANT CHANGE RELATED TO BIDDER .................................................................. 1103.0 INFORMATION REGARDING CONSTRUCTION CONTRACTOR ........................................ 1104.0 INFORMATION REGARDING O&M CONTRACTOR ............................................................ 1135.0 INFORMATION REGARDING MAIN EQUIPMENT MANUFACTURER/SUPPLIER .............. 1136.0 INFORMATION REGARDING PROJECT COMPANY/OWNER'S ENGINEER...................... 1167.0 INFORMATION REGARDING ENVIRONMENTAL CONSULTANT ....................................... 1178.0 INFORMATION REGARDING INSURANCE ADVISOR......................................................... 1179.0 INFORMATION REGARDING LEGAL ADVISORS ............................................................... 117

EXHIBIT V: EXCEPTIONS TO RFP DOCUMENTS ................................................................... 1181.0 EXCEPTIONS TO THE TERMS AND CONDITIONS OF THE RFP ....................................... 119

3.0 EXCEPTIONS TO THE DRAFT PROJECT AGREEMENTS .................................................. 1193.1 EXCEPTIONS TO THE DRAFT IA ........................................................................................ 1193.2 EXCEPTIONS TO THE DRAFT PPA .................................................................................... 120


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3.3 EXCEPTION TO DRAFT WUA ............................................................................................. 120

EXHIBIT VI ................................................................................................................................ 121BIDDER'S PROJECT SCHEDULE ............................................................................................... 121

EXHIBIT VII ............................................................................................................................... 124

PROPOSED COMPANY ORGANIZATION CHART ...................................................................... 124

EXHIBIT VIII ................................................................................................................................. 126FINANCIAL MODEL ..................................................................................................................... 1261.0 GENERAL INFORMATION ................................................................................................... 1272.0 STRUCTURE OF THE FINANCIAL MODEL ......................................................................... 1273.0 OUTPUTS REQUIRED ......................................................................................................... 1284.0 FLEXIBILITY REQUIRED ..................................................................................................... 1285.0 ASSUMPTIONS BOOK ......................................................................................................... 1296.0 INSTRUCTION BOOK .......................................................................................................... 129PROPOSED ANNUAL AND LEVELIZED TARIFF .......................................................................... 130EXAMPLE OF LEVELIZED TARIFF CALCULATION .................................................................... 1301.0 BIDDER'S CONFIRMATION OF REQUIREMENTS OF THE RFP ......................................... 130

2.0 BIDDER'S PROPOSED ANNUAL TARIFF ............................................................................ 1303.0 BIDDER'S CALCULATIONS OF PROPOSED ANNUAL TARIFF ........................................... 1334.0 COMPLIANCE WITH ASSUMPTIONS OF ANNUAL TARIFF ................................................ 1335.0 CALCULATION OF BIDDER'S LEVELIZED TARIFF ............................................................. 133ATTACHMENT TO EXHIBIT-VIII .................................................................................................. 134LEVELIZED TARIFF CALCULATION EXAMPLE .......................................................................... 134

PART-F........................................................................................................................................138

GENERAL INFORMATION .......................................................................................................... 1381.0 FEASIBILITY STUDY ........................................................................................................... 1392.0 THE PROJECT COMPANY ................................................................................................. 1393.0 PROJECT AGREEMENTS .................................................................................................. 139

4.0 FINANCING FOR THE PROJECT ........................................................................................ 1405.0 ENGINEERING, PROCUREMENT AND CONSTRUCTION .................................................. 1406.0 OPERATION AND MAINTENANCE ...................................................................................... 1417.0 CONTINUING OBLIGATIONS OF THE SUCCESSFUL BIDDER .......................................... 1418.0 DESPATCH OF POWER FROM THE PLANT ....................................................................... 1419.0 LOGISTICS, INDIGENOUS RESOURCES AND LABOR INFORMATION ............................. 1419.1 LOGISTICS .......................................................................................................................... 1419.2 CONSENTS.......................................................................................................................... 1429.3 LEGAL MATTERS ................................................................................................................ 1429.4 MAXIMUM INDIGENIZATIONS ............................................................................................. 1439.5 LABOR INFORMATION ........................................................................................................ 14310.0 SITE UTILITIES, .................................................................................................................. 14410.1 POTABLE WATER .............................................................................................................. 144

10.2 SANITARY AND SEWER FACILITIES .................................................................................. 14410.3 TELEPHONE ........................................................................................................................ 14410.4 CONSTRUCTION POWER AND BACK-UP POWER ............................................................ 14410.5 PURCHASE OF PRIVATE OWNER LAND ........................................................................... 14411.0 TRANSMISSION AND INTERCONNECTION FACILITIES .................................................... 14412.0 ENVIRONMENTAL REQUIREMENTS .................................................................................. 14413.0 TARIFF AND PPA PAYMENTS ............................................................................................ 14513.1 INTRODUCTION .................................................................................................................. 14513.2 DELIVERY POINT ................................................................................................................14513.3 PAYMENT METHODOLOGY ................................................................................................ 14513.4 ALL INCLUSIVE TARIFF ...................................................................................................... 14514.0 PROJECT DEVELOPMENT ................................................................................................. 14815.0 PROJECT IMPLEMENTATION SCHEDULE ......................................................................... 147


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The Punjab Power Development Board (PPDB)Energy Department Lahore

Tender Notice No. PPDB/ /2014-01

M/S ____________________

Subject: REQUEST FOR PROPOSAL: INVITATION OF PROPOSALS FOR DEVELOPMENT OF 120 MW TAUNSAHYDROPOWER PLANT AT TAUNSA BARRAGE ON BUILD, OWN,OPERATE AND TRANSFER (BOOT) BASIS AS AN INDEPENDENT

POWER PRODUCER (IPP)

Dear Mr. / Ms:

1. Provincial Governments have been authorized under the Constitution of Pakistan to

undertake activities in the Power Sector Development. Government of the Punjab

setup the Punjab Power Development Board (PPDB) in 1995 and framed its own

Power Generation Policy in 2006 as revised in 2009 and subsequent amendments

thereafter, for implementation of power generation projects, through one window

facility. WAPDA assessed hydropower generation potential of 600 MW in the Punjab

in the year 2002 at 317 locations.

2. In light of Council of Common Interest (CCI) decision issued under Article 157(3) of

the Constitution of the Islamic Republic of Pakistan, Provincial Governments can

construct and operate Hydel Power Projects above 50 MW. As per this decision the

GOPUNJAB is now authorized to float RFPs for Hydel Power Projects above 50 MW.

3. Now the Punjab Power Development Board (PPDB) on behalf of Government of thePunjab intends to develop 120 MW Taunsa Hydropower Project through privatesponsors as Independent Power Producer (IPP) with equity to debt ratio of 20:80.

4. PPDB accordingly invites Proposals from the prequalified bidders/consortiums for thesubject Project. This Request For Proposal (RFP) is being simultaneously addressedto following prequalified Bidders/Consortiums:

a. __________________________________

b. __________________________________

c. __________________________________


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5. You are invited to submit a comprehensive Proposal in quadruplicate (one original +three copies) in separate two sealed envelopes with all documents and information asdetailed in RFP, not later than 1100 hours dated ____________ at location____________.

The complete proposal should be submitted in English language.

6. The basis of selection of Independent Power Producer (sponsor/developer) for the

Project will be the minimum levelized tariff as detailed in RFP, achieved through

International Competitive Bidding ("ICB") for solicited proposals. The Project will be

implemented on BOOT basis and shall be transferred to the Government of Punjab at

the end of project period of thirty (30) years on payment of notional cost of Rs one

(01) only.

7. The feasibility study has already been carried out in June 2013 in accordance with theinternationally acceptable standards. The Project site is easily accessible through the

roads and railway infrastructure.

8. The Bidder/ consortium will act as detailed in the RFP Documents, which include butnot limited to:

a) Development, design, engineering, manufacture, financing, insurance,construction, permitting, completion, testing, commissioning, operation andmaintenance of the plant and all activities incidental thereto;

b) Development, design, engineering, manufacture, financing, insurance,construction, permitting, completion, testing, commissioning of the interconnection facilities and all activities incidental thereto will be responsibility of

the power purchaser;

c) The sale of Contract Capacity and Net Energy Output to Power Purchaser; and

d) The transfer of the plant to the Government of Punjab at the end of the term.

Bidding Schedule:

Bid validity period: One Hundred & Eighty (180) Days

Date of issuance of RFP documents: ----------------------------------------

Date of pre-bid meeting: ----------------------------------------

Last date and time of submission of bid: ----------------------------------------

Date and time of bid opening: ----------------------------------------


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Fee and other charges:

Descrip tion Fee (US$)* Remarks

Registration 100PPDB will provide policy

brochures upon registration.

Purchase of Pre qualification documents 2,000

BiddingPurchase of RFP documents; Evaluation:

- Up to 5 MW- More than 5 and up-to 20 MW- More than 20 and up-to 50 MW

4,000

1,00010,00015,000

The RFP by pre-qualifiedbidders shall also include thefeasibility study and relevantstandard IA, PPA, WUL/WUAagreements etc.

Legal fees

To be paid by Sponsors for negotiations

Or review of other legal matters on the basisof actual expenses plus 20% as ancillarycharges. Suitable cap to this expense,however, will be suggested in the RFP.

* Or equivalent in PKR On the basis of NBP TT & OD Selling rate on the date Thirty (30)days prior to the submission of proposal.

Bidders may obtain further information, inspect and acquire the RFP Documents from theoffice of the Employer, at the address given below:

Managing DirectorThe Punjab Power Development Board,

1ST

E-mail:

Floor, Central Design Building,Irrigation Secretariat, Old Anarkali Lahore, Pakistan

Phone: +92-42-99213876-9 Fax: [email protected]

Website: irrigation.punjab.gov.pk

Thanks for Participation.

Managing Director,The Punjab Power Development Board,Lahore, Pakistan.
mailto:[email protected]:[email protected]:[email protected]


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PART A

DESCRIPTION OF PROJECT


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PART A: DESCRIPTION OF PROJECT

1.0 BACKGROUND

Pakistans energy requirements have expanded at a rate of seven to eight percent

annually creating a growing gap between supply and demand. Although conventional

thermal power generated by coal, oil, and gas is expected to meet a large percentage

of future demand, there is also enormous scope for more environmentally friendly

options. The Government of Pakistans (GOP) Renewable Energy Policy of 2006

emphasizes the development of renewable and clean energy in the country.

Due to depletion of conventional energy resources, the development of renewable

energy resources in Pakistan has gained momentum over the past three to four years.

The goal is to have power generation from renewable energy (RE) resources, which

can fulfill approximately ten percent of the countrys overall energy requirements by theyear 2015. Short gestation low-head hydropower on the existing barrages and canal

falls can contribute a considerable share in generating sustainable power. Provincial

Governments have been authorized under the Constitution of Pakistan to undertake

activities in the Power Sector Development. Government of the Punjab had setup the

Punjab Power Development Board (PPDB) in 1995 and framed its own Power

Generation Policy in 2006 and revised in 2009, for implementation of power generation

projects, through one window facility. WAPDA has assessed hydro power generation

potential of 600 MW in the Punjab in the year 2002 at 317 locations.

Government of Punjab intends to develop 120MW Taunsa HPP under the Policy. Thefeasibility study of the project has been completed in June 2013. The Project will be

developed by private sector as an IPP.

2.0 LOCATION AND ACCESS OF PROJECT AREA

Taunsa Hydropower Station would be built adjacent to the existing Taunsa Barrage on

the Indus River, in Muzaffargarh, Punjab. The barrage is about 30 km southeast of

Taunsa town. It is 120 km from Multan, where there is an international airport. A wide

network of roads and railway leads to the project area. The nearest town is Kot Addu,

10 km southeast of Taunsa Barrage on the left bank of the Indus River. Dera GhaziKhan (D.G. Khan) is located some 60 km south of Taunsa Barrage, on the right bank

of the Indus River. The project area is about 420 km from Lahore, 320 km from

Faisalabad and 750 km from Karachi.

Location of the Project is attached as Figure-1.

3.0 GEOGRAPHICAL LOCATION OF TAUNSA HYDROPOWER PROJECT

The proposed project area is located in the Indus alluvial plain where the area opened

up to form a large alluvial plain of Indus deposits containing sands and silts from

thousands of years. The plain is virtually flat, having an approximate general slope of

0.18 m per km towards the sea.


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Figure 1: Location of the Project


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Taunsa barrage was designed for a flood discharge of 28,300 m3/s. However, greater

than expected retrogression downstream of the barrage had necessitated construction

of a subsidiary weir at 280 m downstream of the barrage to raise tail water level,

reduce water head difference, and decrease erosion on the downstream river bed. Two

irrigation canals, Muzaffargarh (235 m3/s) and Taunsa Panjnad (TP) Link (397 m3/s),

take water from left side of the barrage while the other two canals, Dera Ghazi Khan

(410 m3/s) and Kachhi (170 m3/s), take water from right side of the barrage. The

proposed Taunsa hydropower project is located on the right side, where there are D.G.

Khan and Kachhi Canals off taking from this barrage across River Indus.

The highest monthly mean temperature of the project area is about 44.1 C and the

lowest monthly mean temperature is about 18.0 C; the annual precipitation ranges

from 83.0 mm to 513 mm and the annual mean precipitation is about 208 mm; the

mean annual wind speed range from ranges 0.87 m/s to 2.2 m/s and the mean annual

relative humidity is 56.5%.

(1) Precipitation: The annual precipitation is between 83mm and 513mm, average

annual precipitation is 200mm. The runoff of Indus River at Taunsa barrage is

unevenly distributed in one year which mainly concentrates in June to September,

accounting for 68% of annual runoff while 32% from October to May of the next

year. The average maximum monthly flow 7,180m3/s, occurs in July. Besides, the

minimum average monthly flow 643m3

4.0 ENGINEERING GEOLOGY

/s, occurs in January. Thus, the difference

between monthly runoff capacities in wet month and dry month reaches 11 times.

(2) Air temperature: The air temperature in summer is within the range of 27C

46Cand the air temperature in winter is within the range of 5C19C.

(3) Wind speed

The average annual wind speed is 0.87m/s to 2.21m/s.

(4) Humidity

Average annual relative humidity is 56.5%.

According to the tests of the mineral composition of the suspended load done by

Tianjin Geology and Mineral Resources Company, the result shows the suspended

load contain 80% of quartz, 5.0% of plagioclase, 5.0% of calcspar, 6.4% of potassium

feldspar, 2.0% of dolomite, and 1.6% TCCM (total content of clay mineral).

Structures of the project are relatively concentrated, and their engineering geology

conditions are almost the same, taking the powerhouse as an example, the geology is

as follows:


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The project area is covered with Quaternary loose deposits, mainly comprising FILL

material, alluvial SILTY CLAY and SAND with traces of silt. The value of foundation

permeability is recommended to be (35)10-2cm/s. As the powerhouse will be based

at El.106.69m in dense SAND with traces of silt, the foundation bearing capacity is

estimated to be 280

300 kPa and the coefficient of friction between foundationconcrete and underlying alluvial sandy deposits is proposed to be 0.45. The foundation

sand has low compressibility and modulus of compressibility is proposed to be 1820

MPa. Filtration failure in form of soil flow would occur under certain hydraulic gradient,

allowable hydraulic gradient is proposed to be 0.3 for outlet section.

The shear strength is assumed to be c=1113 kPa and angle of internal friction

=1719 for silty clay; c=0 and =2628 for loose to slightly dense sand with

traces of silt up to a depth of 16.5m, =2830 for medium dense sand with traces of

silt for a depth between 16.5m to 26.0m, and =30 for dense sand with traces of silt

below 26.0m depth. Seismic liquefaction potential of sand material at the powerhouse

foundation was identified and judged by relative density criterion, which indicates no

liquefaction potential exists at the powerhouse foundation sands.

4.1 FLOOD DESCRIPTION

Punjab Irrigation and Power Department maintains gauge and discharge data of

barrages and canal diversions since its construction. The flows diverted to canals and

at barrages have significantly changed after the construction of Indus Basin

Replacement Works (which include a number of link canals and major storages ofMangla and Tarbela) as defined in Indus Waters Treaty 1960. Tarbela dam

construction was completed in 1976 and consequently the historic gauge and

discharge data can be characterized into two data series i.e. pre-Tarbela (before 1976)

and post-Tarbela (1976 onwards). Another important land mark with respect to

distribution of flows between the provinces was signing of Water Apportionment Accord

(WAA) between the Provinces in 1991, which defines the water share of each province.

According to WAA, the provinces have the freedom, within their share, of allocating

surface flows to various canal systems. The provinces place irrigation indents to Indus

River System Authority (IRSA), an institution created under WAA for its

implementation), which then distributes water to the provinces keeping in view thewater available in the river system. As water distribution between the provinces

changed after WAA it is appropriate to split the post Tarbela data series into pre-WAA

(1976-1990) and post-WAA (1991 onwards).

As the post-WAA data series incorporated the water share of each province and the

canals were operated keeping in view the overall water availability, therefore, the post-

WAA data series is considered relevant to estimate the hydrological parameters for any

project in Indus Basin Irrigation System (IBIS).

The flood season ranges from May to September in each year. At Taunsa Barrage themaximum flood peak was observed at 21,500 m3/s in1958, and the minimum flood


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peak was observed at 5,300 m3

4.2 HYDRAULIC MACHINERY, E&M EQUIPMENT AND STEEL WORKS

/s in 2004.

According to the variation scope of water head of Taunsa Hydropower station, bulb

turbines are recommended, with rated water head of 6.0m. Five (5) units are

recommended with total installed capacity of 120MW [please see our comments in the

Due-Diligence report]. The type of turbine is GZ1465-WP-750 [The make and model

number of the turbine cannot be pre-selected and imposed on the bidder], type of

generator is SFWG24-80/8500 [The make and model number of the generator cannot

be pre-selected and imposed on the bidder] and type of governor is TDBWST-150-6.3

[The make and model number of the governor cannot be pre-selected and imposed on

the bidder] Two sets of 220/50/10t overhead cranes are selected for the main

powerhouse. The setting elevation is of turbines is El. 119.5m and the unit spacing is

24.0m. The main powerhouse is 120m long, 26.5m wide and 56.7m high.[Please seeour comments in the Due-diligence Report regarding powerhouse dimensions] The

station has a main and auxiliary erection bays. The main erection bay is located at the

right side of the powerhouse, next to unit no. 1, it is 35.0m long. And the auxiliary

erection bay is located at the left side of the powerhouse, next to unit no. 5, it is 17.8m

long. The ground elevation of the main and auxiliary erection bays is 139.45m, flush

with that of the main powerhouse.

5.0 SALIENT FEATURES OF 120 MW TAUNSA HYDROPOWER PROJECT

5.1 GENERAL

Sr.No.

Description Quantities Unit

1 Capacity 120 MW

2 Annual Generation 675.3 GWh (Million kWh)

3 Plant factor 64 % age

4 Rated Discharge per machine 462 m3/sec

5 Max./Min/rated water head 9.2/3.5/6.0 m

6 Total discharge 2,310 m3/sec

7 Turbine Type GZ1465-WP-750 Bulb8 Number of Turbines/generators Five (05) Set

9 Rated Power of each Turbine/Generator 24.74 MW

10 Power Factor 0.9

11 Rated Voltage 11.0 KV

[The parameters and quantities need to be reviewed in the light of our comments provided in

the Due-Diligence report]


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5.2 HYDROLOGY

Mean annual discharge at barrage site 2,690 m3/sec

Mean annual run off 84.8 billion m3

U/s full supply level El. 136.2m

D/s maximum tail water levelEl. 133.08m, corresponding to barrage

discharge of 28,300 m3/sec

D/s normal tail water levelEl. 129.87m, corresponding to discharge

of 2,310 m3/sfor 5 units in full load

D/s minimum tail water levelEl. 127.01m, corresponding to discharge

of 462 m3/s for 1 unit in full load;

5.3 SEDIMENT

Mean annual sediment content 1.04 Kg/ m3

Mean annual suspended load discharge 87.86 million ton

Mean annual bed load discharge 8.79 million ton

Estimated annual total sediment load 96.65 million ton

5.4 FLUSHING TUNNEL

Number of Flushing Tunnels Five (05)

Tunnel Section Size Rectangular 3m x 3m

Unit Discharge 60.4 m3/sec/m

6.0 OPERATION OF BARRAGE DURING AND AFTER HYDROPOWER

DEVELOPMENT

The operation of proposed Taunsa Hydropower Project will mainly be dependent on

smooth functioning of existing barrage, conjunctive use of existing barrage with

proposed hydropower station should be analyzed ensuring safety of the barrage under

all operational conditions. Functioning of existing Barrage shall not be disturbed andstructure of the barrage and operations shall be protected for all civil, mechanical and

electrical components. Any shortcoming and deficiencies reported/observed in civil,

mechanical and electrical components of barrage by the staff of Irrigation & Power

Department, Government of Punjab must be attended by the Project Company.


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PART B

INSTRUCTIONS TO BIDDERS


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PART B: INSTRUCTIONS TO BIDDERS

DEFINITIONS

The following terms are used in this Request for Proposal ("RFP") and have the meanings

defined here:

1. "Agreement Year" means a period of 12 consecutive months commencing on each

consecutive anniversary of the Commercial Operations Date (COD) and ending as of the

end of the Day preceding the next anniversary of the COD.

2. "Bid Exchange Rate" or "Xo" means the exchange rate prevailing on twenty eight (28)

days prior to the deadline for submission of the proposals as notified by the PPDB to the

Bidders through an addendum at least fourteen (14) days prior to the deadline for

submission of the proposals.

3. "Bid Local Index" or "WPIM" means the local index prevailing on twenty eight (28)

days prior to the deadline for submission of the proposals as notified by the PPDB to the

Bidders through an addendum at least fourteen (14) days prior to the deadline for

submission of the proposals.

4. "Capacity Payment" means the monthly payment from Power Purchaser to the Project

Company under the terms of the Power Purchase Agreement (PPA), which is equal to

the Capacity Charge (CP) multiplied by the then-applicable capacity of the plant.

5. "Capacity Charge" or "CP" means the amount, expressed in Rs. per KW per month,identified as the Capacity Purchase Price in the PPA, as such amount is adjusted from

time to time in accordance with Schedule specified in the PPA.

6. "Commercial Operations Date" or "COD" means the day following the day on which

the plant is commissioned in accordance with terms of the PPA.

7. "Commissioning" of the plant, means engaging in testing the plant in accordance with

the terms of the PPA in order to satisfy the criteria for attaining commercial operations

specified therein.

8. "Construction Contract" means the agreement entered into between the Project

Company and the Construction Contractor for the design, engineering, procurement,

construction, completion, start-up, testing, and commissioning of the plant, as amended

from time to time.

9. "Construction Contractor" means [Name of Construction Contractor] and any

successor thereto appointed by the Project Company and approved by the PPDB.

10. "Contract Capacity" an amount of generation capacity in MW (net, at Reference

Hydrological Conditions) which the project company commits to provide to the Power

Purchaser under the PPA.


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11. "Contractors" means the Construction Contractor and the O&M Contractor and any

other direct contractors and any of their direct sub-contractors integrally involved in the

project.

12. "Deadline for Financial Closing" means the date by which the project company is

required to achieve financial closing, which is a day at the end of a period of twelve (12)months from the issuance of the Letter of Support (LOS) by PPDB to the Project

Company.

13. "Deadline for Submission of Proposals" means the date and time when proposals

are due for submission of this RFP, which is local time in Pakistan.

14. "Delivery Point" means the location at the 132 kV bus bar of Switchyard of Taunsa

Power Station at which the Net Energy Output is measured and delivered by the Project

Company to Power Purchaser as described in Schedule of the PPA.

15. DISCOs means distribution companies in Pakistan.

16. "Energy Payment" means the monthly payment from Power Purchaser to the Project

Company under the terms of the PPA, which is equal to the Energy Charge multiplied by

the Net Energy Output delivered by the Plant during the relevant month.

17. "Energy Charge" or "EP" - means the amount, expressed in Rs. per kWh, identified as

the Energy Price in the PPA, as well such amount as adjusted from time to time in

accordance with the provisions of the PPA.

18. "Engineer" means the independent consulting engineer or engineering firm of repute

appointed by agreement of the Project Company and the Power Purchaser for the

purpose of monitoring the construction of the Plant and for certifying the successful

performance of any tests carried out hereunder.

19. "Financial Closing" means the execution and delivery of all loan agreements

evidencing financing for the completion of the Plant and all other parts of the Financing

Documents executed at the time of execution of the loan agreements, and the receipt of

commitments for such equity as is required by the Project Company to satisfy the

requirements of the Lenders and the Letter of Support.

20. "Financing Documents" The loan agreements, notes, indentures, security

agreements, guarantees and other documents relating to the construction and

permanent financing (including refinancing) of the Plant (or any part thereof).

21. "GoP" means the Government of Islamic Republic of Pakistan.

22. "GOPUNJAB" means the Government of Punjab.

23. "Grid System" means the transmission or distribution facilities owned by Power

Purchaser, including the Project Line through which the Net Electrical Output of theComplex will be received and transmitted by the Power Purchaser to users of electricity


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and through which electrical energy delivered by the Power Purchaser to the Plant, as

required.

24. "GWh" means Giga Watt hours.

25. "Project" means 120 MW Taunsa Hydropower Project

26. "PPDB" means the Punjab Power Development Board.

27. "Implementation Agreement" or "IA" means the agreement of [this name to be

entered into by the Project Company] and the GoP setting out the guarantees,

assurances, support and allocation of risks necessary for the development of the Project,

a draft of which is included in Volume-2 of RFP document.

28. "kWh - means Kilowatt-hours.

29. "Laws of GoP" means all applicable laws, statutes, regulations, statutory revisions,

orders, execution orders, decrees, judicial decisions, and notifications of all kinds, issued

by any executive, legislative, or administrative entity, as any of them may be amended

from time to time.

30. "Lead Bidder" means the Bidder itself if it is a single firm, or the member of the Bidder

if it is a consortium established during the prequalification process, who has been duly

authorized by the other members of the consortium to submit the Proposal and act on

behalf of the consortium until selection of the Successful Bidder and establishment of the

Project Company.

31. "Legal Expenses" means the expenses actually incurred directly or indirectly by PPDB

for clarifications on Proposal and negotiations on the Project Agreements or review of

other legal matters plus twenty percent (20%) to be paid by the Successful Bidder to

PPDB in accordance with Clause 28 of PART-C.

32. "Lenders" means the entities potentially providing the construction and long-term debt

financing for the Project pursuant to the Financing Documents.

33. "Letter of Support" or "LOS" means the letter of this name to be issued by PPDB to

the Successful Bidder at the end of bidding process for the implementation of theProject.

34. "Levelized Tariff" or "LT" means the value in Rs per kWh referred to in and calculated

pursuant to Clauses 6 & 7 of PART-D and as further described in the said Clauses and

in Exhibit VIII.

35. "Local Index" means the index used for adjusting local or Rupee components of the

Tariff, which is the Pakistan Wholesale Price Index (WPI) for manufacturing as notified

by the Federal Bureau of Statistics (FBS) of the GoP.

36. "Main Sponsor" has the same meanings as the Lead Bidder.


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37. "Maintenance Outages means an interruption or reduction of the generating

capability of the Plant that:

a. is not a Scheduled Outage;

b. has been scheduled and allowed by Power Purchaser; and

c. is for the purpose of performing work on specific components of the Plant, which

work should not, in the reasonable opinion of the Project Company, be postponed

until the next Scheduled Outage.

38. "MWh"means Megawatt-hours.

39. "National Power Control Centre (NPCC)" means Control center designated by Power

Purchaser from time to time (but not more than one at any time) from which Power

Purchaser shall control Despatch of the Power.

40. "NEPRA" means the National Electric Power Regulatory Authority, established under

The Regulation of Generation, Transmission and Distribution of Electric Power Act XL of1997.

41. "Net Energy Output" means the net electrical energy delivered by the Plant to Power

Purchaser at Delivery point during a given period of time measured in kWh at the

Delivery Point..

42. "Non-recourse Financing" means the debt or other financing, the recourse for which

shall be exclusively to the Project Company.

43. "NTDC" means the National Transmission and Despatch Company Limited, a PublicLimited Company incorporated under the laws of Pakistan and its successors' and

permitted assigns.

44. "O&M" means operation and maintenance.

45. "O&M Contractor" means O&M Contractor and any successor thereto appointed by

Project Company and reasonably acceptable to Power Purchaser and not objected to by

the GOP/GOPUNJAB of the IA.

46. "Performance Guarantee" means the irrevocable and unconditional direct-pay letter of

credit to be furnished by the Successful Bidder in favor of PPDB from a Scheduled bankin Pakistan acceptable to PPDB, pursuant to Clause 28 of PART-C in the amount

specified therein, prior to the issuance of the LOS, which will guarantee that the

Successful Bidder or the Project Company will achieve- the Financial Closing on or

before the Deadline for Financial Closing, execute the project agreements and achieve

other milestones on or before certain specified dates.

47. PEPCO means Pakistan Electric Power Company.

48. "Plant" means a power generation plant of approximately 120 MW capacity to be

constructed in the Punjab, consisting of electric power generation units, whethercompleted or at any stage of development and construction, including without limitation


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or regard to level of development, land, buildings, engineering and design documents, all

power producing equipment including turbine, generators and its auxiliary equipment,

water intakes and discharges, switchyards, and all other installations, as described in

PART-A.

49. "Policy" means the "The Punjab Power Generation Policy 2006 as revised in 2009 andsubsequent amendments therein", announced by the Government of Punjab.

50. "Power Purchase Agreement or "PPA" means the agreement entered into between

Power Purchaser and the Project Company for the purchase and sale of electric power

generated by the Plant, as amended from time to time.

51. "PPDB" - means the Punjab Power Development Board, Govt. of the Punjab and its

successors and permitted assigns.

52. "PPIB" - means the Private Power and Infrastructure Board under the Ministry of Waterand Power, Government of Pakistan.

53. "Project" means the development, design, engineering, manufacture, financing,

insurance, construction, permitting, completion, testing. Commissioning, ownership,

operation and maintenance of the Plant and all activities incidental thereto.

54. "Project Agreements" means collectively, the Power Purchase Agreement

Implementation Agreement and Water Use Agreement

55. "Project Company" means the company to be established by the Successful Bidder

and duly incorporated under the Laws of Pakistan for the implementation and

management of the Project, and its successors and permitted assigns.

56. "Proposal means the Bidder's written offer for the Project, submitted in response to

this RFP based on the covenants, terms and conditions as contained in this RFP.

57. Power Purchaser means NTDC or any other agency, allowed by GoP to purchase

power from Project Company.

58. "Proposal Security" means the irrevocable and unconditional bank guarantee payable

upon presentation to a bank in Pakistan acceptable to PPDB (USD 1,000.00 USD (Onethousand only or equivalent in PKR) per MW times the Contract Capacity in its Proposal

to be submitted by a Bidder with its Proposal on or before the Deadline for Submission of

Proposals in accordance with Clause 9 of PART-C.

59. "Prudent Utility Practices" means those practices, methods and procedures

conforming to safety and legal requirements which are attained by exercising that degree

of skill, diligence, prudence and foresight which would reasonably and ordinarily be

expected from a skilled and experienced generator of electricity engaged in the same

type of undertaking under the same or similar circumstances to those pertaining in

Pakistan. Prudent Utility Practices are not limited to optimum practices, methods or actsto the exclusion of all others, but rather are a spectrum of possible practices, methods


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and acts which could have been expected to accomplish the desired result at reasonable

cost consistent with reliability and safety.

60. "Required Commercial Operation Date" means with respect to the Plant, the date

which is 48 months after the Financial Closing, which date may be extended in

accordance with the terms ofthe PPA.

61. "Request for Proposal" or "RFP" - means, this Request for Proposals with all Parts,

Exhibits and Attachments hereto, and any future amendments or modifications, thereto

through Addendum issued by PPDB.

62. "Rupee" or "Rs" - means the lawful currency of Islamic Republic of Pakistan.

63. "SCADA" means Supervisory Control and Data Acquisition.

64. "Scheduled Outage" means a planned interruption of the generating capability of the

Plant that:

a. is not a Maintenance Outage;

b. has been scheduled and allowed by Power Purchaser in accordance with the

provisions of PPA; and

c. is for inspection, testing, overhauls, preventive and corrective maintenance, repairs

replacement or improvement of the Plant.

65. "Site" means the land, water-ways, roads, wells and any rights acquired or to be

acquired by the Project Company for the purposes of the Plant on, above or below the

ground on which all or on any part of the Plant is to be built, including, without limitation,any working areas required by the Project Company and the Contractors, villages,

townships and camps for the accommodation of the employees of the Project Company

and the Contractors, and all rights of way and access from public highways.

66. "Short listed Bidders" means the best ranked Bidders to which PPDB has issued a

Notification pursuant to Section B, Article 33.

67. "Successful Bidder" means the Bidder who has been selected by PPDB under this

bidding process to develop the Project pursuant to Clause 28 of PART-C.

68. "Tariff" mean the price of electricity to be charged by the Project Company to PowerPurchaser and calculated in accordance with the formulas provided in this RFP.

69. "Term" means a period of thirty (30) Agreement Years, as described in the PPA.

70. "Third Party Agreements" means collectively, the Construction Contract, the O&M

Contract, legal consents, loan commitments, interest rate protection letters, insurance

agreements, trust agreements, and such legal documents which are entered into directly

between the Project Company and third party entities for the execution of the Project.


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71. "WAPDA" means The Pakistan Water and Power Development Authority, a statutory

corporation established pursuant to the Pakistan Water and Power Development

Authority Act No. XXXI of 1958, with its principal office located at Lahore, Pakistan and

its successors and permitted assigns.

72. "Water Use Charges" means the amount in Pak. Rs./kWh of the Net Energy Outputfor use ofwater by the Project Company at power complex pursuant to the Water Use

Agreement (WUA).


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PURPOSE OF BIDDING INSTRUCTIONS

1.1 This document together with the Annexures/Appendices referred to herein and any

future additions and amendments to this document constitute the Bidding Documents,

the purposes of which are as under:

a) To explain the PPDBs general requirements in respect of the Project, and to

provide other information that may be relevant to Bidders;

b) To provide guidance in the preparation of Bids, and to explain the criteria and

procedures by which the Bids will be assessed; and

c) To set out, in outline form, the PPDBs design and construction requirements in

respect of the Project, and the PPDBs operational, maintenance and other

requirements in connection with project.

2.0 ELIGIBLE BIDDERS

2.1 This RFP is open to all Bidders who have been Pre-qualified by PPDB for the Project

and have purchased this RFP from PPDB on payment of fee referred in Sub Clause

7.2.

2.2 In case of any change in the membership of a qualified Bidder consortium, the Bidder

shall provide all necessary details about the requested change including but not limited

to the description and reason of change, qualifications and experience of the newmember. The PPDB committee shall review the requested change in the membership

of a Bidder consortium based on the same criteria as used for prequalification of the

original consortium and decide accordingly. The PPDB committee may, at its sole

discretion, approve or reject the requested change in the membership of the

consortium even if such membership satisfies or does not satisfy the prequalification

criteria, without assigning any reason. Further, the PPDB committee, at its sole

discretion, may approve the requested change in the membership of the Bidder

consortium subject to certain conditions. However any such change shall be made

after the first five years after commissioning of the project, unless allowed otherwise by

PPDB. The PPDB committee's decision in this regard shall be final and binding.

2.3 The Main Sponsor must not own more than 25% of the total electricity generation

capacity in Pakistan at the time of submission of Proposal to PPDB.

3.0 PROGRAMME

3.1 Bidders should note that the contract specifies key dates to be achieved throughout the

construction phase and the penalties to be imposed for delayed completion.


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4.0 DISCLAIMER

All information, assumptions and projections contained in these Bidding Documents

are indicative only and are provided solely to assist in a preliminary assessment of the

Project. Nothing in the Bidding Documents or elsewhere shall create any contractual

relationship between the PPDB and any Bidder, nor shall it commit the PPDB to any

policy described in the Bidding Documents or elsewhere and neither the PPDB nor any

of its consultants or advisors will have any liability or responsibility if the information,

assumptions and projections contained herein or otherwise in respect of the Project

prove to be incorrect. It is the responsibility of the Bidder to verify the information,

assumptions and projections contained in the Bidding Documents or otherwise.

5.0 CONFIDENTIALITY

5.1 All Proposals received by PPDB shall remain sealed in PPDB's possession until theProposal Opening. Except as may be required by law or by a court or governmental

agency of appropriate jurisdiction, no information contained in or relating to the

Proposal shall be disclosed to any Bidder or other persons not officially involved in the

process of examination and evaluation of Proposals.

5.2 After the Proposal Opening, information relating to the examination, clarification,

determination of responsiveness, evaluation, and comparison of Proposals and

recommendations concerning the award of the Project or selection of Shortlisted

Bidders or the Successful Bidder shall not be disclosed to Bidders or other persons not

officially concerned with such process, until the selection of the Shortlisted Bidders orSuccessful Bidder, as the case may be, has been announced by PPDB.

5.3 Any effort by a Bidder to influence the GOPUNJAB, PPDB or their consultants in the

process of examination, clarification, determination of responsiveness, evaluation and

comparison of Proposals, and in decisions concerning selection of the Successful

Bidder, may result in the rejection of such Bidder's Proposal and forfeiture of the Bid

Security.

5.4 PPDB will return neither the original nor-the copies of any Bid submitted by a Bidder

(except for Late Proposals pursuant to Clause 15).

6.0 BRIBERY AND COLLUSION/INTEGRITY PACT

PPDB shall be entitled to terminate the contract and recover from the successful

Bidder the amount of any loss resulting from such termination if the successful Bidder

shall have offered or given to any person any gift or consideration of any kind as an

inducement or reward for doing, or forbearing to do, any action in relation to obtaining,

or in the execution of the contract or any other contract with PPDB, or for showing

favor to any person in relation to the contract or any other contract with PPDB, or if any

of the like acts shall have been done by any person employed by the successful Bidder

or acting on its behalf (whether with or without the knowledge of the successful Bidder),


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or if the successful Bidder shall have come to any agreement with another Bidder or

number of Bidders whereby an agreed quotation or estimate shall be offered as a Bid

to PPDB by one or more Bidders.

7.0 APPLICATION AND EVALUATION FEES

7.1 The Bidder shall comply with the following commercial terms for submission and

evaluation of its Proposal. In case of non-compliance of all or any one of these terms, a

Proposal shall be treated as non-responsive and shall be rejected by PPDB.

7.2 The Bidder shall purchase this RFP along with its attachments from PPDB on payment

of USD 4,000 (Four Thousand USD) or equivalent in PKR.

7.3 The Bidder shall pay the Evaluation Fee for an amount of USD 20,000 (Twenty

Thousand USD) or equivalent in PKR to PPDB at the time of submission of itsProposal.

7.4 The above payments to PPDB shall be in the form of a pay order or a bank draft

payable in USD or in equivalent amount in PKR at scheduled bank in Lahore Pakistan.

8.0 LEGAL REQUIREMENT

8.1 The Bidder, and if a consortium, each consortium member of the Bidder, shall be a

business organization duly organized, existing and registered and in good standing

under the laws of its country of domicile. No Bidder consortium shall include a member,which is a member of another Bidder consortium responding to this RFP.

8.2 The Bidder must furnish evidence of its legal structure as a single company or as a

consortium including, without limitation, information with respect to: The legal relationship among the consortium members; and The role and responsibility of each consortium member.

8.3 A draft of the consortium agreement executed on Rs. 100 stamp paper shall be

submitted with the Proposal. In addition, the consortium must also submit a written and

legally enforceable undertaking to the effect that all its members shall be jointly andseverally liable if awarded the contract.

8.4 The Bidder/consortium must nominate a member of the consortium as the Lead Bidder

(which will also be the Main Sponsor), which will be authorized to act and receive

instructions on behalf of all the consortium members. This authorization must be done

on a notarized Power of Attorney.

9.0 ONE PROPOSAL PER BIDDER/CONSORTIUM

9.1 Each Bidder/consortium shall submit only one Proposal either by itself, or as a member

of a Bidder consortium. A Bidder who submits or participates in more than one


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Proposals shall be disqualified and all the Proposals submitted/participated by such

Bidder shall be considered non-responsive.

9.2 For the avoidance of doubt, however, same contractor(s) may participate in more than

one Proposal.

10.0 ALTERNATE PROPOSAL

Alternate Proposal shall not be accepted.

11.0 RESPONSIBILITIES OF THE BIDDER/CONSORTIUM

11.1 The Bidders are responsible for conducting their own investigations to verify Project

related data and gathering additional information deemed necessary by the Bidders.

11.2 The Bidder is expected to examine carefully all information, instructions, conditions,

attachments, forms, terms, specifications, and drawings in the RFP, and all Addenda,

the Punjab Power Generation Policy 2006 as amended in 2009 and subsequent

amendments therein, NEPRAs Rules and Regulation and is responsible for informing

itself with respect to all conditions which might in any way affect the cost or the

performance of the Project. Failure to do so, and failure to comply with the

requirements of Proposal submission, will be at Bidder's own risk, and no relief will be

given for errors or omissions by Bidder.

11.3 The Bidder is requested to examine carefully the documents comprising theAppendices of this RFP including draft Project Agreements as these provide detailed

information necessary for understanding the terms and conditions of the transaction

offered by the GoP, and for preparing a Responsive Proposal. The PPDB does not

warrant the accuracy or completeness of the information presented herein, nor makes

any representation or warranty that the information presented herein constitutes all the

information necessary to prepare the Proposal or develop the Project. Each Bidder

accepts full responsibility for conducting an independent analysis of the feasibility of

the Project and for gathering and presenting all necessary information. The Bidder

assumes all risks associated with the Project, and no adjustments will be made based

on the Bidder's interpretation of the information provided herein.

12.0 LAWS AND REGULATIONS

12.1 The Bidder shall at all times comply with the applicable laws and regulations in force in

Pakistan. All the project agreements (draft attached in Volume 2 of RFP) to be entered

into are governed by and construed in accordance with the laws of Pakistan.

12.2 The Bidders should be aware that NEPRA's role in relation to the Project, inter-alia will

be to issue generation license and approval of tariff to the Project Company and to

regulate its operations according to NEPRAs Rules, Regulations and Procedures. The

Bidder, the successful Bidder or the Project Company shall be required to comply with


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all NEPRA's Rules, Regulations and Procedures, inter-alia, for grant of license before

the Project Agreements are concluded for the Project.

13.0 QUALIFICATION REQUIREMENTS

The Contractors authorized representative and his/her other professional engineers

working at site should be registered themselves with the Pakistan Engineering Council

or an equivalent international body/authority acceptable to the PPDB. The Contractors

authorized representative at site shall be authorized to exercise adequate

administrative and financial powers on behalf of the Contractor so as to achieve

completion of the works as per the Contract.

14.0 COST OF BIDDING

The Bidders shall bear all costs associated with the preparation and submission of theirProposals and the finalization and execution of the agreements comprising the Project

Agreements, including travel to Pakistan and site visits and gathering of information

and other investigation, review and analyses. The PPDB shall under no circumstance

be responsible or liable for such costs, regardless of, without limitation, the conduct or

outcome of the bidding or evaluation process, or subsequent capability of financing the

Project, except as provided by the draft Project Agreements attached to this RFP.

15.0 SITE VISIT

15.1 The Bidder is advised to visit and examine the Site and the surrounding areas andobtain or verify all information, it deems necessary for the preparation of the Proposal.

15.2 The Bidder shall submit a written request to PPDB at least fourteen (14) days in

advance of such site inspection. PPDB will grant Bidder or its agents written

permission to visit the Site or, if necessary, to enter into certain premises for such

purpose. The Bidder or its agents will only be granted permission on the express

condition that Bidder agrees to follow all instructions of PPDB and to release and

indemnify PPDB and its agents from and against all liability in respect thereof and to be

responsible for personal injury (whether fatal or otherwise), loss of or damage to

property and any other loss, damage, costs and expenses however caused, which, butfor the exercise of such permission, would not have arisen.

15.3 Failure to investigate the Site or subsurface conditions fully shall not be grounds for

Bidder subsequently to alter its Bid nor shall it relieve the Bidder from any responsibility

for appropriately estimating the difficulty or costs of successfully completing the

Project. Furthermore, the Tariff shall not become adjustable due to any such reason

during finalization of Project Agreements or subsequently during the implementation of

the Project.

15.4 PPDB may plan and arrange a combined Site visit for all the interested Bidders. PPDB

shall inform all the Bidders of details of such Site visit at least fourteen (14) days prior


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to the visit. The representatives of PPDB shall accompany the Bidders, if necessary, to

brief the Bidders about the site and facilitate the site visit; the power purchaser may

join them during the site visit.

16.0 ACCEPTABILITY OF BID

The Bidder is expected to examine carefully all instructions, conditions, forms, terms,

specifications and requirements of bid submission. Bids that are not substantially

responsive to the requirements of the bidding documents will be rejected.

17.0 CLARIFICATIONS AND AMENDMENTS

17.1 Clarifications

a. Any Bidder requiring any clarification of this RFP must notify PPDB in writing at theaddresses set forth in Sub Clause 13.1 of PART-C. PPDB will respond in writing to

any request for clarification, which it receives not later than twenty eight (28) days

before the Deadline for Submission of Proposals.

b. PPDB will endeavor to respond to requests for additional information or clarification

within fourteen (14) days from the receipt of such a request.

c. In the interest of fairness, PPDB shall make all clarifications available in the form of

a circular letter or an Addendum to all Bidders. Such circular letters or Addendum

will also be made available on PPDB website.

17.2 Amendments

a. At any time but no later than thirty (30) days prior to the deadline for submission of

proposals, PPDB may issue addenda in writing to all Bidders, which may delete,

modify, or extend any part of this RFP. All addenda issued by PPDB shall be part

of this RFP. Such amendments will be made available on PPDB website as well.

b. The receipt of an addendum by Bidder shall be acknowledged promptly in writing

with specific reference to the title and date of issuance of the relevant addendum,and so noted in the Bidder's Proposal.

c. The Bidder's late receipt of any Addendum or failure to acknowledge the receipt of

any addendum shall not relieve the Bidder of being bound by such Addendum.

17.3 Non-binding Representation or Explanation

a. Unless the amendment to this RFP is in the formal manner described in Sub

Clause 17.2, no representation or explanation to the Bidders shall be considered

valid or binding on PPDB as to the meaning of this RFP or as to the Project.


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b. The Bidders are cautioned that no employee of the GOPUNJAB, PPDB, WAPDA or

their consultants or agents is authorized to explain or interpret this RFP, and-that

any interpretation or explanation, if not given in writing by PPDB, must not be relied

upon.

17.4 Extension in Deadline for Submission of Proposals

In order to afford the Bidders reasonable time in which to take a clarification or

amendment into account in preparing their Proposals, PPDB Committee may, at its

discretion, extend the deadline for submission of proposals, in accordance with Clause

14 of PART-C.


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PART C

PROPOSAL PREPARATION ANDEVALUATION


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PART C: PROPOSAL PREPARATION AND EVALUATION

1.0 GENERAL

1.1 The Bidder shall submit its Proposal strictly in accordance with the requirements of

this RFP and shall complete all data sheets and data forms and provide all

information required. The additional or supplementary information, data, descriptions

and explanations for clarification of the proposal are desirable and shall be considered

in their applicable context.

1.2 The Bidder shall quote its proposed tariff and parts and components thereof in the

manner specified in this RFP and shall provide all the details required by this RFP and

necessary for the evaluation and verification of such charges.

1.3 Any deviation from the requirements or instructions of this RFP or modifications to thedraft Project Agreements shall be clearly indicated and explained by the Bidder. The

deviations and modifications are discouraged and PPDB Committee reserves the right

to reject any Proposal as non-responsive at its sole discretion.

2.0 PREPARATION OF PROPOSAL

The Proposal to be prepared by the bidder shall be simultaneously submitted in two

envelopes; Envelope I and Envelope II. In Envelope I, all of the technical and

commercial aspects will be submitted while Envelope II shall contain the Bidders

proposed Levelized Tariff and financial model. The Envelope I of all the proposals willbe evaluated as per Responsiveness Criteria mentioned in Clauses 23, whereas the

Envelope II of only responsive proposals shall be evaluated according to criteria

mentioned in Clause 24. The contents of each Envelope of the Proposal are set out in

Clauses 3 and 4 respectively. The formats to be used to prepare and complete these

Envelopes are provided in PART- E of this RFP.

3.0 PROPOSAL CONTENTS OF ENVELOPE I

The Envelope I of the Proposals must contain the following items in the form or format

of Exhibit mentioned against each item:

1 Proposal Letter PART-E, Exhibit I

List of Attachments to Proposal Letter Attachment I 1

Power(s) of Attorney Attachment I 2

Bid Security Attachment I 3

Lender Acknowledgement Letter Attachment I 4

Proposal Summary Information Attachment I 5

2 Technical Data and Submittals PART-E, Exhibit III

3 Bidder and Contractors Information PART-E, Exhibit IV

4 Exceptions to RFP Documents PART-E, Exhibit V5 Bidder's Project Schedule PART-E, Exhibit VI


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4.0 PROPOSAL CONTENTS OF ENVELOPE II

The Envelope II of the Proposals must contain the following in the form or format ofExhibit mentioned against thereto:

1 Proposed annual and Levelized Tariff PART-E, Exhibit VIII

2 Detailed Financial Model which shall contain:- Statement of capital and operating costs- Statement of Revenues- Complete financial statements for the project life cycle

PART-E, Exhibit VIII

3 Financial Data in Support of Project PART-E, Exhibit II

5.0 OTHER INFORMATION TO BE PROVIDED BY THE BIDDERS

5.1 The Bidders are required to furnish and submit additional information in addition to the

contents of Envelope I & II mentioned in Clause 3 & 4. The Bidders should note that

the information and guidance provided in this Clause has been prepared to assist

them in completing their submissions. PPDB reserves the right to request any further

information and clarification that it may deem necessary to carry out the detailed

evaluation of bids.

GENERAL

Following list will provide general guidelines for the Bidders to provide information in

addition to Envelope I & II content discussed above with their proposals.

CONSTITUTION OR LEGAL STATUS

Copies of original documents defining the constitution or l