SSJD BIOENERGY LIMITED

12 MW Biomass Power Project

SSJD BIOENERGY LIMITED

REQUEST FOR PROPOSAL

FOR

ENGINEERING, SUPPLY, ERECTION AND COMMISSIONING

OF

12MW BIOMASS POWER PROJECT

JANUARY – 2011

INDEX

Page No.

SECTION – 1 INSTRUCTION TO CONTRACTORS …………………………………..….… 02

SECTION – 2 GENERAL CONDITIONS OF CONTRACT …………………………..…….… 07

SECTION – 3 PROJECT SITE INFORMATION ……………………………………….…..…15

SECTION – 4 TECHNICAL REQUIREMENT AND DESIGN CONSIDERATIONS ...…….….. 17

SECTION – 4.1 TECHNOLOGY AND PLANT CONFIGURATION ...……………………….….17

SECTION – 4.2 STEAM BOILER & AUXILIARIES …………………………………………..….…17

SECTION – 4.3 STEAM TURBINE – GENERATOR & AUXILIARIES ………………………… 31

SECTION – 4.4 BALANCE OF THE PLANT EQUIPMENT (MECHANICAL) ……..………… 41

SECTION – 4.5 BALANCE OF THE PLANT EQUIPMENT (ELECTRICAL) ………………….. 56

SECTION – 4.6 INSTRUMENTATION & CONTROL SYSTEM (I&C)………………………… 67

SECTION – 4.7 GUARANTEES DATA ………………………………………………………...…… 73

SECTION – 5 CIVIL & STRUCTURAL WORKS ………………………………………..……… 75

SECTION – 6 COMMISSIONING AND TESTING …………………………………….……… 79

ANNEXURES - ……………………...... 84- 86

SECTION – 1: INSTRUCTIONS TO CONTRACTORS

Preamble

SSJD Bioenergy Limited, (“the Owner”) with its principal office located at Plot # 10-11, Hassan Ali Street, Karachi-Pakistan, under the Alternate Energy Policy, Alternate Energy Development Board (AEDB), Government of Pakistan, intend to construct and operate a power plant on multiple biomass of approximately 12MW in district Mirpurkhas, province of Sindh. The net electrical power will be exported to the nearest grid of Hyderabad Electric Supply Company (HESCO) electrical network.

Invitation for Proposals

The Owner is inviting proposal on turn key basis including civil works from the interested EPC Contractors for designing, manufacturing, furnishing, insuring, delivering to site, storing at site, erecting, commissioning, operating on a trial basis and testing of the equipments and materials for 12MW power generating unit (herein after called “the Project”).

The plant technical description and design considerations with scope of works contained in this document shall be a guideline to enable the Contractors to prepare and submit their proposal complete in all respect for a functional plant. Prior to preparation of this RFP, the Owner has conducted the preliminary site survey, assessed the site conditions, availability of land and water supply source for development of the project. A Letter of Interest (LOI) has been obtained from the relevant agency of the Government of Pakistan i.e. Alternate Energy Development Board (AEDB) to undertake the project on fast track.

The Contractors are advised in their own interest to have full understanding of the RFP, plant design consideration, specification of equipments, scope of works that are necessary for a complete functional biomass power plant prior to submission of proposal. Any explanation or clarification desired by the Contractors regarding the meaning or interpretation of the RFP may be requested by e-mailing to the Owner’s designated point of contact. If any explanation or interpretation is necessarily required by Contractors, it may be provided by the Owner subject to availability on best effort basis. No clarification or lack thereof will be a cause of contention at the time of submission of proposal or if and when the Contract is awarded.

An effort has been made to provide sufficient information/data for design, scope of works, services, materials, plant equipment, building and structure, and other essential facilities etc, described in the RFP. Nevertheless, the Bidder will solely be responsible for examination of its completeness and comply with all instructions. Failure to furnish complete information, or submission of a proposal not conforming to RFP, and found substantially non responsive may be rejected.

The Contractors shall submit a firm proposal for the entire EPC work, however the Owner reserve the rights to bifurcate the Contract at the time of contract award for, i)Supply Contract for supply of equipment and machinery together with all necessary items, ii)Service Contract for engineering, supervision, installation, commissioning and testing..

Owner's Rights to Accept any Proposal and to Reject Any or All Proposals

The Owner reserve the rights to accept or reject complete proposal or part of the proposal at any stage without assigning any reasons thereof whatsoever, without incurring any liability to the Contractors, or any obligation to inform the Contractors of the reasons for such actions. No conditional proposal shall be accepted.

Submission of Proposal

The firm technical and commercial proposal with two identical copies are required to be delivered in person or sent by completent courier services or by registered mail at the address of the Owner or by email, on or before the expiry of twenty (20) days period from the receipt of RFP.

The Contractor will submit the Commercial part along with the proposal and the EPC cost break down sheet.

To be addressed to Owner at the following address:

The SSJD Bioenergy Limited,

Plot # 10-11, Hassan Ali Street,

Off. I.I. Chundrigar Road, Karachi, 74000.

Phone: (92-21) 32631017

Cell # 0314 - 2357878

Attention: Mr. Akhlaq Ullah

Vice President (Technologies)

SSJD Bioenergy Limited

Language

The proposal and all correspondence shall be written in English language.

Prices

The Contractors will quote firm EPC prices in detail breakdown as per format provided in Annexure, which shall remain valid up to the validity period. Proposal with escalable prices will be rejected as non-responsive. The quoted prices shall include the cost for entire scope as per the technical requirements and specifications provided in this document considering all items necessary for a complete functional plant.

Contractors Address

The Contractor shall give its full and proper address at which correspondence may be sent (electronically and by mail) and all notices may be served in connection with this RFP.

Clarification of Proposals

To assist in evaluation of the Proposals, the Owner may, at its sole discretion, require a Contractor to clarify its proposal. The request for clarification and Contractor’s response shall be in writing and no change in the price or substance of the proposal will be sought, offered or permitted.

Evaluation of Proposals

Owner will, in private, undertake a detailed examination and evaluation of proposals. To assist in the examination, and evaluation of proposals, the Owner may ask Contractors for clarification of their proposal, including breakdowns of quoted price. The Owner does not bind itself to award the Contract to lowest or any Contractor, but will take into consideration the quoted price and such other factors as are relevant for complete functional plant. After the Owner is satisfied with the proposal of a Contractor, the Owner will start clarifications/negotiation meetings.

Notification of Award

Following the proposals evaluation process the Owner will hold detailed discussion and make all good efforts to settle all technical, financial, and commercial matters to meet lenders requirement, and Power Purchaser that are necessary to incorporate in the Contract. Should such discussion not lead to signing of the contract between the Owner and the Contractor for any reason whatsoever, the Owner shall have all rights to reject such Contractor without any liability of any nature whatsoever. In case negotiations with one Contractor does not culminate in finalizing the contract for any reason, the Owner may, at its sole discretion, invite any other Contractor for negotiations or annul the process at any stage without any liability whatsoever.

The Owner shall at all time have the option and discretion to reject any or all proposals without assigning any reason thereof and without any liability whatsoever. The Contractor (s) shall not be entitled to claim any costs, charges, expenses or damages of any nature by reason of rejection of proposal (s) or annulment of the entire Bidding process.

Decisions conveyed by Owner in respect of its evaluation of the proposals, Award of Contract to a Contractor shall be binding. The Owner decision, in any manner whatsoever, shall not be challenged.

Signing of Contract

Upon finalization of the Contract document, the Contractor will be required to attend the office of the Owner within one (1) week from the date of receipt of notice to Award the Contract, with the power of attorney for signing the Contract Agreement in the form set out in the Contract documents with alterations or additions thereto as may have been mutually agreed upon.

Supplementary Information

(1) The following supplementary information shall be submitted with each copy of the proposal.

(a) An organization chart of the minimum supervisory staff the Contractor proposes to employ on Facility Site for the performance of the EPC Contract. This chart shall also show the distribution of work for each member of the staff and their respective duration of work at plant site.

(b) A list with complete description of all items of installation equipment and plant proposed to be used in carrying out the EPC Works, indicating the make, type and capacity of all equipment which shall be in complete detail to demonstrate fully that the equipment will meet all the requirements for carrying out the work according to specifications, drawings and the time schedule.

SECTION – 2: GENERAL CONDITIONS OF CONTRACT

General Instruction

The designing of the power plant on multiple biomass shall based on best steam power cycle, current state of-the-art technology, current industry trend, highly reliable equipments with built in redundancy and design margin and safety against unplanned outages, all equipments suitable for a thirty (30) years life period.

The Contractor is required to follow international designed approach to engineering and construction, all equipment to be designed and manufactured in accordance with the international applicable codes and standards, state regulations, and Pakistan Standards for environmental control are all adhered to in design, and complies with the emission levels during operation.

The plant design and steam power cycle shall be engineered for optimum thermal efficiency adopting high pressure and high temperature steam parameters, and design conditions specified in this document.

Contract Agreement

The Contractor shall enter into and execute a Contract Agreement to be prepared and submitted by the Contractor, however the Owner will have the full rights to review and negotiate the terms of the Contract documents and sign the Contract Agreement.

Compliance with Contract

Equipment, materials and services shall be complete in all respects and in strict accordance with the contract. The Contractor shall comply with the codes and standards specified in the Contract Documents which shall be latest revisions of international standards/codes.

Commercial Proposal

The Contractor shall submit commercial proposal in reasonable detail as per Annexure provided in this RFP.

Taxes

The Contractor shall be responsible for all Contractor’s corporate taxes payable under the laws of Pakistan. The tax payable in Pakistan will be in local currency.

Import Duties

Import duties, import permits fees and other charges applicable on import of equipment and materials will be the responsibility of and will be paid by the Owner for all items imported under the Contract. The freight and marine insurance cost on all equipment and materials shall be included in the price quoted by the Contractor.

Transportation and Insurance

The Contractor shall obtain all risk insurance for marine and inland transportation (in Pakistan and abroad) including coverage for custom duties without war risk to cover all loss and damage from Contractor’s (Manufacturer’s) warehouse to the site for imported material and equipment.

For the inland transportation of equipment and materials, the Contractor shall arrange and pay for transportation insurance with National Insurance Corporation or any other insurance company of Pakistan which shall cover all risks, i.e. fire, flood, theft, damage due to the exposure, breakages, loss in transit, or through riots, strikes, civil commotion, etc. from the manufacturer’s plant warehouse up to the site, plus ninety (90) days of storage after arrival of each consignment at site.

Subsequent to the obtaining of the custom clearance of the consignments at the sea port by the Owner, timely transportation of the said consignments to the site will be the responsibility of the Contractor. The Owner will not be liable for any demurrage on this account.

Sub Contractors

Except where otherwise provided by the Contract, the Contractor shall not appoint any sub-contractor for any part of the works without the prior written approval of the Owner.

Co-ordination with other Contractors

The Owner reserves the right to let other contractors in connection with the part of the works of this project. The Contractor shall provide reasonable opportunity for the storage of their materials and the execution of their works simultaneously, shall co-ordinate his work with their. On failure to meet this requirement the contractor shall be liable for any resulting damage and expenditure.

Performance Security

The Contractor shall within fifteen (15) days from the date of the issuance of Notice of Award of the Contract, furnish at his cost Performance Security in a sum of 15% of the total Contract price as a guarantee for the due and faithful performance of the Contract.

Guarantee for Material, Workmanship and Performance

The Contractor shall guarantee that the materials and workmanship incorporated into the project are brand new and the best of their respective kinds for the service intended and that all items will be free from inherent defects in design, workmanship and materials, and that all equipment in its several parts will operate successfully at all capacities up to and including the maximum specified load, specified noise levels, heating, stressing of parts, wear and vibration, and that an ample factor of safety is included in every design.

The Contractor’s liability shall not be limited only to the replacement of any defective part or equipment that may develop in the equipment or material of his own work or manufacture or those of his sub-contractor under power use and arising solely from faulty design, materials, or workmanship during the guarantee period but he shall also be responsible for replacement, erection and commissioning of such equipment/material which is damaged due to any mishap caused as a result of defective materials/equipment or inadequate workmanship of the Contractor.

Period and Extent of Guarantee

The period of guarantee on all equipment, material and workmanship shall be 12 Months starting from the effective date of provisional Acceptance by the Owner or as expressly stated elsewhere in the contract documents, including …

If during the guarantee period the services of the Contractor’s personnel are required for the rectification or replacement of any defective part of the work due to defective material, design or workmanship, such services shall be made available by the Contractor without charge to the Owner.