Invitation to Tender

Australian Energy Market Operator

ABN 94 072 010 327

Invitation to Tender – Deer Park

Terminal Station

DETAILS

Project Manager: / Kav De Silva
Principal Commercial
Connections & Procurement
Tel: 03 9609 8568
E-mail:
Closing Date: / 3:00 pm on 22 August 2014
Validity Period: / 150 days from the Closing Date

Australian Energy Market Operator Limited

ABN 94 072 010 327

Level 22, 530 Collins Street

MELBOURNE VIC 3000

TEL: 03 9609 8000

FAX: 03 9609 8080

Contents

SECTION A: INVITATION TO TENDER 3

SECTION B: INFORMATION FOR TENDERERS 4

SECTION C: ITT CONDITIONS 9

SECTION D: PROJECT DESCRIPTION 13

SECTION E: PROPOSED AGREEMENTS 35

SECTION F: TENDER FORM 36

SCHEDULE F1 - STATEMENT OF COMPLIANCE 38

SCHEDULE F2 - FINANCIAL AND COMMERCIAL CAPABILITIES 39

SCHEDULE F3 - PROJECT MANAGEMENT CAPABILITY 41

SCHEDULE F4A - TECHNICAL CAPABILITY – SHARED NETWORK 48

SCHEDULE F4B - TECHNICAL CAPABILITY – CONNECTION ASSETS 62

SCHEDULE F5 – COSTS ASSOCIATED WITH THE CONSTRUCTION OF THE SHARED NETWORK ASSETS 80

SCHEDULE F6 – CHARGES PAYABLE FOR THE USE OF THE SHARED NETWORK 82

SCHEDULE F7 – COSTS ASSOCIATED WITH THE CONSTRUCTION OF THE CONNECTION ASSETS 84

SCHEDULE F8 – CHARGES PAYABLE FOR THE USE OF THE CONNECTION ASSETS 86

SECTION A:  INVITATION TO TENDER

A.1  Purpose

This Invitation to Tender (ITT) is for the construction of the Terminal Station more particularly described in Section D. It is proposed that the network services and exit services using the:

(a)  Shared Network be provided to AEMO for a term of 30 years, in accordance with the terms of a proposed Network Services Agreement in the form attached to this ITT; and

(b)  Connection Assets be provided to Powercor for a term of 30 years, in accordance with the terms of a proposed Exit Services Agreement in the form attached to this ITT.

A.2  Invitation to Tender

TENDERS ARE INVITED for the site preparation, detailed design, procurement of plant and equipment, construction, co-ordination of interface works with SPI PowerNet, testing and commissioning of the Terminal Station to achieve Practical Completion of all of the works by 1 November 2017 and, following the achievement of practical completion, use of the Deer Park Terminal Station for the delivery of network services more particularly described in Section D and in accordance with the agreements referred to in Section E.

The Shared Network will be procured to AEMO’s specifications and the Connection Assets will be procured to Powercor’s specifications on a build, own, operate and maintain basis.

SECTION B:  INFORMATION FOR TENDERERS

B.1  Tenderer Warranties

In submitting a Tender, a Tenderer gives the following warranties:

(a)  the Tenderer has made proper allowance for all matters contained in, or capable of inference, from all information provided with this ITT or during the Tender Period;

(b)  the Tenderer has made proper allowance for all matters that might impact on the Tenderer’s ability to deliver the Terminal Station within any particular time, cost or quality constraints;

(c)  the Tenderer has, and will maintain, the necessary skill, qualification and experience to enable it to deliver the Terminal Station in accordance with the contracts referred to in Section C.14;

(d)  the Tenderer has conducted relevant searches, inquiries and inspections, and examined information relevant to the risks, contingencies and other circumstances having an effect on the Tender that a competent and experienced tenderer should have conducted, and has not relied solely on the information contained in this ITT;

(e)  the Tenderer has carefully read the ITT;

(f)  the Tenderer represents to AEMO that there are no ambiguities or discrepancies in this ITT that are, or should have been known to the Tenderer and which should have been brought to AEMO’s attention in accordance with this ITT;

(g)  the information contained in the Tender and Statement of Compliance is accurate and complete;

(h)  the Tenderer has, or will be able to, obtain all necessary consents, permits, authorities or exemptions in order to deliver the Terminal Station; and

(i)  the information provided by the Tenderer in the Tender or in any discussion with AEMO leading up to the submission of the Tender is accurate and complete..

B.2  Queries

Subject to Section B.9, Tenderers must address any queries to the Project Manager via email at the address shown in the Details.

If Tenderers find any discrepancy, error, or have any doubt as to the meaning or completeness of this ITT, or require clarification on any aspect of this ITT, they should notify the Project Manager via email at the address shown in the Details at least 10 Business Days before the Closing Date, whereupon AEMO will issue an Addendum clarifying the discrepancy, error, doubt, or query (as the case may be) in accordance with Section B.10.

The identity of the Tenderer who raises any discrepancy, error, or have any doubt as to the meaning or completeness of this ITT will be kept confidential.

Subject to Sections B.8 and B.9, no Tenderer may contact SPI PowerNet or Powercor about this ITT without AEMO’s consent, which may be given with or without conditions.

B.3  Conditions of Tendering

Tenderers must comply with Section C.

B.4  Nature of ITT

This ITT is an invitation to treat and is not intended to have any contractual effect. No contract will be created until contracts based on the documents contained in Section E are entered into as contemplated by Section C.14.

B.5  Role of SPI PowerNet

SPI PowerNet Pty Ltd, or an associate entity, is a potential Tenderer. Deer Park Terminal Station will connect to the Victorian Transmission Network owned by SPI PowerNet Pty Ltd.

The impact of any proposals on the proposed interface works will need to be considered in consultation with SPI PowerNet during the evaluation of Tenders by AEMO.

AEMO has sought and received assurances from SPI PowerNet that it will ring fence its team that will be assisting with the preparation of this ITT and, in particular, those aspects of this ITT addressing the Interface, from the SPI PowerNet team that would be involved in submitting a Tender.

AEMO will also take steps to ensure that information provided to SPI PowerNet in assisting AEMO with Tender evaluations is restricted to that which is necessary to advise on the impact of a proposal on the proposed interface works and Tenderers’ pricing to be set out in the Network Services Agreement will not be made available to SPI PowerNet. In addition, other price information will not be disclosed to SPI PowerNet for the purpose of Tender evaluations to the extent reasonably practicable, unless the Tenderer consents.

B.6  Role of Powercor

Powercor has an associate entity (PA Entity), which is a potential Tenderer. Powercor and PA Entity share premises and systems.

The Exit Services Agreement will be entered into with Powercor. As a consequence, Powercor representatives will act as subject matter experts in reviewing Tenders insofar as they relate to the Connection Assets or Exit Services. The Connection Assets will not form part of the Victorian Transmission Network.

AEMO has sought and received assurances from Powercor that it will ring fence its subject matter experts who will be assisting AEMO with AEMO’s evaluation of Tenders, from the PA Entity team that would be involved in submitting a Tender.

AEMO will also take steps to ensure that information provided to Powercor is restricted to that which is necessary for the purposes of Tender evaluations related to the Connection Assets or Exit Services, which will include a copy of Schedule F4B and part SF3.3(b)(i) of Schedule F3 as completed by the Tenderer. Tenderers’ monthly charges due under the Network Services Agreement will not be made available to Powercor and other price information will not be disclosed to Powercor for the purpose of Tender evaluation to the extent reasonably practicable without the Tenderer’s consent. We note that once a preferred Tenderer is selected, Schedule F8 will be provided to Powercor.

B.7  Total Cost

AEMO reserves the right to publish the total cost of the Terminal Station and Interface combined.

B.8  Site Visit

Tenderers will be given an opportunity to examine the site where the Terminal Station is to be constructed, and its surroundings, and familiarise themselves with its surroundings, access conditions, working areas etc. The relevant details of the site visit are as follows:

Date: 26 June 2014

Start Time: 11 am

End Time: 12 pm

Site: 279-329 Christies Road, RAVENHALL VIC 3023

The AEMO Project Manager and a representative from Powercor will be present to facilitate inspections and answer queries about the site. Questions specifically relating to the ITT will need to be answered at the Information Forum, details below.

Tenderers who wish to attend the site visit must contact the Project Manager via email at the address shown in the Details no later than 24 June 2014 to confirm attendance (including attendance of any representatives).

On the day of the site visit, Tenderer representatives should register their presence on site with the Project Manager prior to entering the site.

Please note the mandatory PPE requirements for this site visit are detailed below:

·  Full length clothing (wrist to ankle)

·  Day/night high visibility vest

·  Safety footwear

·  Hard hat

·  Safety Glasses

Access to the site will not be available at any other time.

B.9  Information Forum

AEMO will hold an information forum for Tenderers to give them an opportunity to ask questions and of technical experts from SPI PowerNet and Powercor as follows:

Date: 15 July 2015

Time: 10 am

Place: Level 22, 530 Collins Street, Melbourne

Each Tenderer may bring no more than three representatives to the information forum.

Tenderers must submit the names of their representatives who will attend the information forum and an indicative list of questions at least 5 Business Days prior to the scheduled date of the information forum.

At the conclusion of the information forum, AEMO will publish the questions raised and responses given in a Q&A format on AEMO’s website.

B.10  Addenda

AEMO may issue Addenda at any time not less than 5 Business Days prior to the Closing Date. Prior to this, Tenderers should monitor AEMO’s website at http://www.aemo.com.au/About-AEMO/Tenders for further details unless AEMO has declared that there will be no further Addenda issued.

No representation or explanation to Tenderers as to the meaning of this ITT, or as to anything to be done or not be done by the Tenderers will be taken to be included in this ITT unless it is contained in this ITT or an Addendum.

B.11  Glossary

Terms used in this ITT have the meanings given to them below, or in the Details:

Addenda / Any document issued after the date of publication of this ITT and labelled as an “Addendum” to this ITT; collectively known as “Addenda”.
AEMO / Australian Energy Market Operator Limited ABN 94 072 010 327 and where the context requires it, includes references to AEMO’s employees, officers, contractors, consultants, advisers and other persons authorised to act for AEMO.
Business Day / A day other than Saturday, Sunday and any other day not taken to be a public holiday in Melbourne, Victoria.
Connection Asset Interface / The interface between the Connection Assets and the Shared Network, as shown on the Single Line Diagram.
Connection Asset Functional Scope / The document by that name in Attachment D4.
Connection Assets / That part of the Terminal Station that is fully dedicated to the Exit Services and is more particularly depicted in the Single Line Diagram and described in Attachment D2.
Evaluation Criteria / The contents of Section C.6.
Exit Services / Means the services to be provided by TNSP by use of the Connection Assets pursuant to the Exit Services Agreement including as described in Schedule 5 of that Agreement.
Interface / The interface between the Victorian Transmission Network and Terminal Station, and as more particularly shown in the Single Line Diagram.
ITT or Invitation to Tender / The collection of documents incorporating:
·  Section A: Invitation to Tender
·  Section B: Information for Tenderers
·  Section C: ITT Conditions
·  Section D: Project Description
·  Section E: Proposed Agreements
·  Section F: Tender Form
and all schedules, attachments and appendices to those documents, and includes all Addenda.
NEM / National Electricity Market.
NER / The National Electricity Rules made in accordance with the National Electricity Law.
Powercor / Powercor Australia Limited ABN 89 064 651 109 and where the context requires it, includes references to Powercor’s employees, officers, contractors, consultants, advisers and other persons authorised to act for Powercor.
Primary Functional Requirements for Deer Park Terminal Station Interface / The document(s) by that name in Attachment D5
Primary Functional Requirements for Deer Park Terminal Station Shared Network / The document(s) by that name in Attachment D3
Protection and Control Requirements for Deer Park Terminal Station Connection Assets / The document by that name in Attachment D4.
Protection and Control Requirements for Deer Park Terminal Station Interface / The document(s) by that name in Attachment D5.
Protection and Control Requirements for Deer Park Terminal Station Shared Network / The document(s) by that name in Attachment D3.
Shared Network / That part of the Terminal Station, excluding the interface, that will become part of the Victorian Transmission Network upon its construction and does not include the Connection Assets and is more particularly shown in the Single Line Diagram and Attachment D.2.
.
Single Line Diagram / The diagram depicted in Attachment D1.
SPI PowerNet / SPI PowerNet Pty Ltd ABN 78 079 798 173 and where the context requires it, includes references to SPI PowerNet’s employees, officers, contractors, consultants, advisers and other persons authorised to act for SPI PowerNet.
Statement of Compliance / The contents of Schedule F1.
Tender / The offer submitted by a Tenderer in response to this ITT.
Tender Form / The contents of Section F, including all schedules.
Tender Period / The time commencing between publication of this ITT and the Closing Date.
Tenderer / Any person in receipt of this ITT.
Terminal Station / Deer Park Terminal Station, which is comprised of the Shared Network and Connection Assets, and is more particularly shown in the Single Line Diagram.
TNSP / transmission network service provider.
TOC / Transmission Operations Centre
Victorian Transmission Network / The declared shared transmission network in Victoria.

Italicised terms are as defined in the NER.