BID DOCUMENT

FOR

PROJECT MANAGEMENT CONSULTANCY SERVICES

FOR

REVIVAL & UPGRADATION OF EXISTING PLANT AT NAGALAND

Nagaland Pulp & Paper Company Limited

Paper nagar, Tuil, Nagaland

BID DOCUMENT

(Non-transferable)

Project Management Consultancy (PMC) Services for Revival & Upgradation of Nagaland Pulp & Paper company Limited (NPPC)

Cost of Bid Document: Rs. 5,000

Issued to: M/s.

Tender No. :NPPC/CEO-PMC/60/2007

Tender Date : 31.05.2007

Last date - Bid Document downloading : 13.07.2007

Pre-Bid Conference date : 06.07.2007

Due date for submission of bid : 16.07.2007 at 14.30 Hrs (IST)

Date and time of opening of Techno- :16.07.2007 at 15.00 Hrs (IST)

Commercial bid

EMD / Bid Security : RS. 5, 00,000

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CONTENT

Page Number

Global Notice Inviting Tender7

1.0 MillRevival and upgradation Plan

1.1.Process Design10

1.2Production Planning and Forecast 10

1.3Raw Material Supply10

1.4Pulp Mill 11

1.5Paper Machine & Finish house13

1.6Chemical Recovery Complex 16

1.7 Chemical Plant17

1.8Steam & Power Plant17

1.9Electrical Power Supply19

1.10Water Supply24

1.11Effluent treatment 24

1.12Process Control & Automation 24

1.13Infrastructure Facilities 25

1.14Plant layout & Plot Plan 26

1.15Civil and Structural Works 26

1.16Climatologically details 27

1.17Drainage27

1.18Access27

1.19Town Ship28

1.20Construction Phase28

1.21Transportation28

1.22Equipment Selection29

1.23Project Implementation Schedule& Mile stone29

1.24Capital cost32

2.0 Scope of Project Management ConsultancyServices.

2.1LSTK Modules33

2.2E C P Modules33

2.4Scope of the PMC service for LSTK module34

2.5Finalization of Process Philosophy35

2.6Basic Engineering for process package35

2.7Detailed Engineering for Civil Construction Jobs37

2.8Tender Document Preparation Services 40

2.9Bid Evaluation41

2.10EPC Modules and other balance of plant work.41

2.11Scope of basic & detail Engineering42

2.12Cost Estimating Service46

2.13Inspection Service 47

2.14Other General Service47

2.15Construction & Site Management48

2.16Other General Service49

2.17Project Management52

2.18Procurement Service53

2.19IT Enabled System 53

2.20Assistance for Approvals/Clearance Pre-54

2.21Pre-Commissioning & Start-up 54

2.22Commissioning55

2.23Performance Guarantee Runs56

2.24Documentation 57

2.25Assistance for Enabling Facilitie59

3.0 Terms & Conditions

3.1Pre-qualifications criteria60

3.1(i)Pre-qualifications criteria for category-160

3.1(ii)Pre-qualifications criteria for category-260

3.2Alliance option60

3.3Bidder with Pulp & Paper Experience61

3.4Bidder without Pulp & Paper Experience62

3.5Special Criteria63

3.6Documentary Proof63

3.7Division of Responsibility64

3.8Site Organization 65

3.9Cost of Bidding & site visits66

3.10Tender Documents67

3.11Bid Validity 68

3.12Bid Currencies68

3.13Submission of Bid69

3.14Earnest Money Deposit (EMD)71

3.15Pre-Bid Conference 71

3.16Signing of Bid Documents 72

3.17Corrections in Bid Documents72

3.18Transfer of Tender Documents72

3.19Due date for Submission of Bid72

3.20Purchase Preference 73

3.21Bid Opening73

3.22Bid Acceptance73

3.23Security Deposit/Contract Performance Bond 74

3.24Execution of Contract Agreement74

3.25Other Conditions of Contract74

3.26Guarantees75

3.27Performance Guarantee76

3.28Completion Time76

3.29Liquidated Damages76

3.30Force Majeure Conditions77

3.31Payment Terms 77

3.32Ownership of Drawings/Documents78

3.33Accommodation/Conveyance/Site Facilities 78

3.34Assistance in Approvals/Disputes78

3.35Settlement of Disputes 79

3.36Jurisdiction & Governing Law79

4.0 The Nagaland

4.1 Nagaland-Bare Facts 80 How to reach the Project Site 81

4.2State Map and location of the Project site

5.0 Price Bid Format

6.0Annexure

Annexure I Undertaking by Bidder

Annexure II Bidder Evaluation Details

Annexure III Schedule of deviation from Scope of Work

Annexure IV Schedule of deviation from Contract Conditions

Annexure V Schedule of Experience

Annexure VI EMD/ Bid Security Performa

Annexure VII Contract Performance Bond Performa

Annexure VIII Performance Bank Guarantee Performa

NAGALAND PULP & PAPER CO LTD

Tuil, Nagaland

Tender document

Notice Inviting Bid for Project Management Consultancy Services

for Revival & Upgradation of Nagaland Pulp & Paper Company Limited

Nagaland Pulp & Paper Company Limited. (NPPC), is a subsidiary of Hindustan Paper Corpn. Ltd. (HPC) a Public Sector Undertaking under the Department of Heavy Industries, Ministry of Heavy Industries and Public Enterprises. NPPC is an integrated Paper Mill located at Tuli, in the District of Mokokchung, Nagaland. The mill Site is 21 KM from the nearest Railway Station at Amguri, Assam and is around 70 KM from the nearest Airport at Jorhat, Assam. The mill Site is well connected by road from Jorhat and Amguri

The installed capacity of the NPPC was 33,000 TPA (100 TPD). The product mix as envisaged in design comprised MF & MG Papers based on Reeds and Bamboo/

Wood as fibrous raw materials from local sources. The Mill was commissioned in 1982 but production activities were suspended from October 1992 due to operational and economic constraints.

Presently the Mill is under revival. The detailed feasibility study on its revival through renovation / up-gradation of various sections of the Mill have already been completed including Rapid Environmental Impact Assessment study. The findings of the Report recommended revival of the Mill with an enhanced capacity of 66,000 tonnes per annum and up-gradation to facilitate production of value-added paper grades like Copier, SS- Maplitho and MG Poster paper as the product mix. The Report also recommended process up-gradation system as to include oxygen de-lignification followed by elemental chlorine-free (ECF)bleaching to obtain bleached pulp of 86 to 88OGE brightness. The project also includes a new co-generation thermal plant of 18.0 MW capacity. The basic features with respect to the recommendation of the Report for respective plants have been discussed subsequently in this document.

Project Management Consultancy

Scope in brief:

In the above context, NPPC requires the services of a consultant for Process Philosophy, Basic engineering, Detailed engineering, Preparing tender specifications and tender document for Civil works and for procurement of plant & equipment, techno-commercial evaluation of bids, finalization of purchase order documents, inspection, assistance in erection supervision& commissioning, The consultant will also be required to prepare tender documents for assigning contracts for dismantling of existing installed plant & equipment to facilitate assessment of current condition and for renovation/retrofit as well as for disposal wherever recommended. The detailed scope of work is given in the tender document.

Submission of Tender

The tender shall be submitted on two-part bid basis in the prescribed Tender form as per the guide lines given below:

I) Part-I Techno-commercial Bid: This shall include all the credentials and authenticated documents in support of the pre-qualification criteria such as copies of work orders, completion certificate, performance certificate from clients with their contact details, EMD for the prescribed amount and a copy of the un-priced bid. Confirmation to all the commercial terms shall be included with this bid All these documents shall be enclosed in an envelope, sealed and superscribed as “ Tender for PMC services for Revival/NPPC- Part-I Techno-Commercial Bid “ along with name of the bidder. Letters of consortium agreement with Alliance Partner should be enclosed if applicable.

2). Part-II Priced Bid: This shall indicate the charges for the services as per the scope/ categories indicated in the price bid format. The rates and amount shall be clearly indicated in words and figures in the price- bid format. The rates and amounts shall be indicated without any ambiguity for quantification and evaluation. In case of any deviation with regard to the Price bid format making the price bid evaluation unclear and un-quantifiable, the company reserves its right to reject the tender. The price bid shall be placed in an envelope, sealed and superscribed as “ Tender for PMC services for Revival/NPPC-Part II- Priced Bid” along with the name of the bidder.

3). Both the sealed covers of Part-I and Part-II bids shall be enclosed in another envelop , sealed and superscribed as “Tender for PMC services for Rvival/NPPC”, indicating tender no , due date and name of the bidder and shall be send by courier/Post to the above address of the company to reach latest by 14.30 Hrs (IST) on 16.07.2007. The part-I of the bids will be opened by 15.00 Hrs (IST) on the same date in presence of attending bidders.

EMD

Earnest Money Deposit of Rs 5,00,000 shall be submitted in the form of D.D drawn in favour of Nagaland Pulp & Paper Company Limited, on any scheduled commercial bank payable at Tuli, Nagaland OR Jorhat, Assam. EMD can also be submitted in the form of a BG in the prescribed format enclosed at annexure by an Indian Commercial Bank or from an Indian Branch of a foreign Bank or correspondent Indian Bank of the foreign Bank if the foreign Bank is not having any branch in India. The EMD/Bid security is refundable with out any interest after finalization of the order or with in six months of the date of opening the tender. In the case of successful bidder, EMD will be refunded from the date of receipt of Performance Bank Guarantee as prescribed.

Pre-Bid Discussion

There will be a pre-bid discussion on the date stipulated in the Tender Document at the CEO’s Office/HPC Corporate Headquarter office at Kolkata.

The Tender Document is available from the NPPE Cell, Hindustan Paper Corporation Limited, 10th Floor, Ruby Building, 75C, Park Street, Kolkata-700016 from 04.06.2007 up to 13.07.2007 against payment of Rs 5000 (USD 110).Tender Document can also be download from our website in which case Bid Fee will have to be deposited along with part – I of the bid.

Chief Executive Officer

Nagaland Pulp & Paper Company Limited

8th Floor

RubyBuilding

75-C, Park Street,

Kolkata – 700016

SECTION - I

1. MILL REVIVAL & UPGRADATION PLAN

1.1 Process Design Memorandum

The preliminary process design criteria of main process plants for the proposed revival and upgradation of NPPC Mill at Tuli, have been dealt with in this memorandum. Some of the design criteria may undergo change during Basic Engineering and equipment selection; and the memorandum will be revised accordingly.

Production forecast shows the annual expected production from the Mill and quantifies the pulp requirement from bamboo pulping street.

Departmental operating data/ design calculation lists the basis adopted by professional judgment and shows calculation for equipment sizing, based on the process design and production requirement.

1.2Production Planning & Forecast

The proposed capacity of the Mill of NPPC has been fixed at 66,000 FTPA (eq. to about 200 FTPD on an average) of finished paper of specified product mix. The respective sections of the Mill will be put into operation after completion of retrofit/ repair/ replacement and new installations. The start up and trial runs shall be affected section wise sequentially as below:

Arrangement of Start-up Power

Start up of Mill Water system

Start up of Compressed Air system

Instrumentation & Control System

Start up of Steam and Power supply & distribution system including Fuel Handling & Ash Handling systems

Start up of Paper Machine Complex (start up being planned with purchased pulp)

Start up of Pulp Mill along with Chipper House

Start up of Soda Recovery Plants

Start up of Effluent Treatment system

The commercial production will start after respective sections of the Mill have been stabilized for operation and overall system integration for production has been completed.

It is expected that overall stabilization for integrated Mill operation at rated capacity to the tune of 200 FTPD paper will take about two(2) years’ time.

The production forecast of the Mill has been envisaged as below :

1st year of operation – 34,650 FTPA

(For 9 months)

2nd year of operation – 59,400 FTPA

3rd year onwards – 66,000 FTPA

It may be noted that although most of sections of the Mill may reach desired production capacities at an earlier date, yet for sustained operation at rated capacity while ensuring desired production norms and quality criteria a longer period would be necessary.

1.3 Raw Material Supply

For the purpose of sustained supply of raw material at an economically viable rate, the procurement will be made primarily from two regions, namely the northern area consisting of Mokokchung, Mon & northern Tuensang and the southern area consisting of Kohima and Dimapur. Supply from Mon area will be mostly via Sonary. Produce from Mokakchung and northern Tuensang will be transported directly along smaller roads, which exit in these areas. The average distance of haul for Mon will be 100 km and that for Mokakchung and northern Tuensang is estimated to be 40 km. Thus, the average distance of road transportation for the northern area will be around 70 km. For the southern area major part of bamboo is available in Dimapur district. It is suggested that a fairly large depot may be constructed near Dimapur R.S close to the Dimapur-Amguri road. The produce from Dimapur and Kohima area should be initially transported and stored in this depot. Thereafter, the produce may be transported by trucks to the Mill as and when required. The average distance of haul from Dimapur and Kohima area is estimated at 50 km and the distance of the Mill at Tuli from Dimapur by the National Highway via Tinsukia will be approximately 220 km.

Raw Material Handling & Storage

NPPC Mill at Tuli has about 105 acre of land at 19th Mile location by the side of NH-61 for bamboo storage yard. The Mill also has a raw material storage yard of approximately 12 acres inside the Mill premises. Bamboo in the form of bundles from the 19th Mile storage yard will be transported up to the Mill site by means of truck load and loaded, stacked in the raw material storage yard with the help of pay loaders. There will be approximately 7-8 days storage inside the Mill. The bamboo bundles will be further transported and stacked in front of the bamboo washing flumes by pay loaders. These bamboo bundles will be further fed to the flume by mechanical means (pay loaders).

1.4 Bamboo Pulp Mill

As mentioned elsewhere before, only bamboo will be used as the fibrous raw material and as such there will be no reed pulping street in the proposed revival scheme. The equipment which were used for reed processing will now be hooked up with the bamboo pulping unit as per the process requirements. The upgradation and retrofitting of the existing pulp Mill for the production of 100% bamboo pulp of desired quantity and quality have been summarized below:

a) Chip Preparation Plant

It is recommended to replace all the equipment of bamboo and reed chip preparation plant with new set of equipment. The bamboo in the form of bundles will be stacked in the bamboo storage yard and fed to the bamboo flume by means of pay loader. The approximate length of bamboo bundles has been considered as 1.83 m. After washing in the flume, the bamboo bundles will be fed to the chippers through inclined chain conveyor. It is proposed to install seven (7) no. Chippers, each of 15.0 MT per hour capacity to meet the total requirement of bamboo chips for the production of pulp in the revival scheme. Each chipper will have a chain feed conveyors of 2500 mm width.

Six(6) no. chippers will be in operation and one(1) will be kept as standby for knife changing. The chip preparation plant will operate in two(2) shifts per day.

At the downstream of the chipper two(2) no. vibrating screens of 45.0 MT per hour capacity each, will be installed for separation of oversized and undersized chips. One screen will be in operation while the other will be used as standby. The bamboo chips from the chipper will be blown to a cyclone separator for separation of dust and fed to the screens through a 800 mm wide belt conveyor. The screened chip of desired size (approximately 25 mm long) will be transported and stored in the chip silo with the help of a 800 mm wide belt conveyor.

The oversized chips from the chip screens will be fed to a rechipper of capacity 6.0 MT per hour for further reduction of chip length. The chips from the rechipper will be blown to a cyclone separator for dust separation before it is fed back to the chip screen for further screening. The undersized chips along with saw dust from the chip screen will be conveyed pneumatically to a set of cyclone separators where the dusts are emitted to the atmosphere and the heavier chips will be stored outside the chip preparation area for disposal.

The screened chips will be uniformly discharged into the chip silo through a 800 mm wide reversible belt conveyor. From the chip silo, chips will be further fed to chip washer by means of another 800 mm wide belt conveyor. The washed chips will be further transported to the stationary type digesters by means of a long 800 mm wide belt conveyor.

b)Digester Plant

The existing Mill has only three(3) no. of stationary batch digester each of 70 m3 capacity. These three(3) no. digesters cannot produce adequate quantity of cooked pulp required in the revival scheme. Since the tumbling digesters cannot be used for processing of bamboo chips additional six(6) no. stationary batch digesters along with external liquor heaters, liquor circulation pumps, associated piping, fittings, valves, condensate removal system etc. have been proposed. The cooked pulp from the existing three (3) no. bamboo digesters will be blown to the existing bamboo blow tank of 200 m3 capacity as usual, whereas six(6) new digesters of 70 m3 capacity will be hooked up with a new blow tank of 250 m3 capacity. The existing tumbling digesters may, however, be used as a liquor storage tank. The heat released from the blown vapour from both the blow tanks would be recovered in the existing blow heat recovery plant along with a new unit for generation of clean hot water required for the process.

c)Deknotting & Screening Plant

Existing Screening & Cleaning Plant is not energy efficient and cannot produce desired quality of pulp required for the target products quality. Moreover, the existing vibratory knotters in Bamboo Street are all broken. It is, therefore, suggested to install a new Deknotting & Screening Plant of state-of-the-art technology. In the proposed plant, the cooked bamboo pulp from blow tanks shall first be fed to 80 m3 intermediate stock chest which in turn shall feed the stock to a combi-type pressure screen for separation of knots and accepted stock. The knots from the combi-screen shall then be dewatered in a coarse screen via a junk trap for protection of the screen basket. While the knots from the coarse screen shall be fed back to digesters, the liquor shall be returned to the intermediate stock chest. The rejects stock from the combi-screen shall further be processed in a secondary pressure screen. While the rejects from the screen shall be drained, the accepts shall be fed to vibratory screen followed by sand cleaners for sand removal.

d)Washing Plant

The filtering area of each drum filter in bamboo street is only 200 sq.ft whereas that for reed street is 300 sq.ft. Since the total area is inadequate for processing of desired quantity of cooked pulp and the conditions of the existing washers are not good, it is, suggested that the screened pulp from the new combi-screen shall first be processed in new drum washers, replacing the existing units for pre-washing. The washed pulp from pre- washers will be stored in 40 m3 capacity existing intermediate washed stock chest from where it will be sent to a new proposed press washer for subsequent final washing. In the washing plant the pulp will be washed with the filtrate available from the subsequent post washer in oxygen delignification plant which will give better washing and also yield more black liquor solids per ton of washed pulp.