Fenchuganj 100-150 MW- Gas Based Project-Bid Document ... - BPDB

Bidders should submit to BPDB their (i) Qualification Statement & Technical, Commercial andFinancial Proposal and (ii) Tariff Proposal, together with a non-refundable processing fee of US$5,000 (or Bangladesh Taka 3,65,000) in the form of an international bank draft encashable at anyscheduled bank in Bangladesh or in the form of a local bank draft/pay order, made payable to“Secretary, Bangladesh Power Development Board”. The Bidder shall also provide the BidSecurity in the form of an irrevocable and unconditional bank guarantee in the format andlanguage as provided in Annex D, Exhibit I, Attachment I-2 (entitled “Form of Bid Security”) ofthe Request for Proposal payable to BPDB upon presentation to a bank in Bangladesh at the rateof US$ 10,000 per MW of the offered capacity. The Bid Security will be returned to the Biddersnot meeting the criteria as mentioned in the Qualification Document.The Pre-bid meeting is scheduled to be held in BPDB Board room, WAPDA building (1 st floor),at 10:00 A.M. Dhaka on May 19, 2011. The deadline for submission of the Bid is scheduled onJune 21, 2011 (the "Bid Date"). Any requests for additional information and/or questionsconcerning Qualification Document and Request for Proposal shall be submitted in the followingaddress in writing not later than 20 (twenty) days before the Bid Date.Completed (i) Qualification Statement & Technical, Commercial and Financial Proposal and (ii)Tariff Proposal in one original and two copies (not facsimile or email) along with non refundableprocessing fee and Bid Security shall be submitted in the following address on or before June 21,2011 before 12:00 noon:SecretaryBangladesh Power Development BoardWAPDA Building (1 ST Floor),Motijheel C/A, DHAKA, 1000.Facsimile: 880-2-9564765, 880-2-9551344.Tel. No. : 8802-9554209, 9567350Yours truly,SecretaryBangladesh Power Development BoardEnclosure: Bid document along with (i) Qualification Document and (ii) Request forProposal.4

SECTION IITHE SELECTION OF THE PROJECT SPONSOR FOR IMPLEMENTATION OF A100-150 MW GAS FIRED COMBINED CYCLE POWER PROJECT ON A BUILD, OWNAND OPERATE (BOO) BASIS AT FENCHUGANJ, BANGLADESH1.0 PROJECT BACKGROUND1.1 The Government of The People’s Republic of Bangladesh (“GOB”) has adopteda strategy for the development of the power sector which envisages privateparticipation in the sector. As part of that strategy, the GOB decided that somenew generation capacity will be installed and operated by the private sector. TheProject Sponsor will be selected through an international competitivesolicitation under Private Sector Power Generation Policy of Bangladesh.1.2 Following adoption of the Private Sector Power Generation Policy (“PSPGP”) in1996, the first Independent Power Producer (“IPP”) became operational in 1998.Since then, contribution from private sector power generation to the installedcapacity has reached approximately 2000 MW, which is almost one third oftotal available generation capacity supplying the national power grid inBangladesh.1.3 In line with this strategy, GOB has decided to implement a new greenfield 100-150 MW Gas Fired Combined Cycle Power Plant on Build, Own and Operate(“BOO”) basis at Fenchuganj and will sign an Implementation Agreement(“IA”) supporting the project. BPDB will sign a Power Purchase Agreement(“PPA”) as power purchaser. Jalalabad Gas Transmission and DistributionSystem Ltd. will sign a Gas Supply Agreement (“GSA”) as Gas Supplier. ThePPA will have a term of 22 years unless terminated earlier in accordance withthe terms thereof. The IA and GSA will terminate along with the PPA.1.4 The project site location for this new IPP will be near to upcoming 230/132 kVFenchuganj substation, Fenchuganj and will be arranged by the Project Sponsorat its own cost. To evacuate power from the plant, required interconnectiontransmission line will be constructed by Project Sponsor.1.5 The Project Sponsor will be required to arrange the necessary financing and toexecute the Project Agreements for the Project within the specified periodtherefor.2.0 PROJECT DEVELOPMENT PROCESSBPDB intends to select the Project Sponsor to develop the Project on a Build-Own-Operate (“BOO”) basis. The Project Sponsor will be responsible for financing, designing,constructing, insuring, owning, operating and maintaining the Project. The process for thedevelopment of the Project, including selection of the Project Sponsor, shall include thefollowing elements:5

4.0 PHYSICAL FACILITIES OF THE PROJECT4.1 The Project consists of a Gas fired Combined Cycle Power Plant of 100-150 MW of netcapacity at ambient site conditions with all the required support facilities which,among others, would include the following:4.1.1 Complete 100-150 MW Gas Fired Combined Cycle Power Plant generation unitswith a total net power generation capacity of 100-150 MW at ambient siteconditions, expected to operate based on economic dispatch with anavailability factor of not less than 90%.4.1.2 All required site support facilities including, but not be limited to, theadministration buildings warehouses, workshops, Gas delivery and storagefacilities, switchyard, and cooling and process water systems; and4.1.3 All necessary site infrastructure such as roads, parking areas, lighting,security fencing, workers’ living quarters, etc.4.2 Site: The Sponsor will arrange the Site at Fenchuganj in consultation with PGCBnear to upcoming 230/132 kV Fenchuganj substation, Fenchuganj at its own cost.Site survey, soil testing and studies of cooling and process water availability andenvironmental impact assessment studies will have to be performed by the selectedProject Sponsor. The Project Sponsor will be responsible for ensuring that theProject design and construction meet the requirements of the actual site conditions.The site development including site leveling, filling to the final elevation, soilcompaction, and river bank protection will be performed by the Project Sponsor atits own cost.4.3 Electrical Interconnection: The evacuation of electric power to be generated by theFacility, will be through upcoming 230/132 kV Fenchuganj substation The Facilitywill be connected to the 230 kV bus of Fenchuganj 230/132 kV substation by asingle ckt 230 kV ( O/H / U/G) line (Interconnection Line) from the Facility. ThisInterconnection Line & equipping of one 230 kV bay at Fenchuganj 230 kVswitchyard will be implemented by the Company. The extended 230 kV bay will behanded over to PGCB at no cost after commissioning. After handing over PGCBwill operate & maintain the equipments of the bay. In addition to that, the Companywill install, operate & maintain separate 230 kV synchronizing breaker for itsmachine at the high voltage side of step-up Transformer and also construct theconnecting lines for connection as mentioned earlier.4.4 Gas Supply: The plant will be operated with natural gas provided by Jalalabad GasTransmission and Distribution System Ltd., a subsidiary of the Bangladesh Oil,Gas and Mineral Corporation (Petrobangla). Gas receiving facilities including gasrevenue metering station will be constructed by the Project Company.7

5.0 PROPOSED PROJECT TIMETABLEEventDay numberIssuance of the Bid Document 0Submission of Bid ((i) Qualification Statement & Technical,60Commercial and Financial Proposal and (ii) Tariff Proposal)Opening of Envelope-I (Qualification Statement against60Qualification Document and Technical, Commercial andFinancial Proposal)Evaluation of Envelope-I 60-75Notification to Responsive Bidders 75-80Opening of Envelope II (Tariff Proposal of Responsive81Bidders)Evaluation of Envelope II (Tariff Proposal) 81-85Issue of Letter of Intent to successful Bidder 105Signing of Project Agreements (Project Effective Date)30 (thirty) days from Letter ofIntent (“Project Effective Date”)Required Financial Closing Date3 (three) months from ProjectEffective DateRequired Simple Cycle Commercial Operation Date12 (twelve) months from ProjectEffective DateRequired Commercial Operation Date18 (eighteen) months from ProjectEffective Date6.0 PRE-BID MEETING6.1 The Bidder or its official representative is advised to attend a pre-bid meeting.6.2 The purpose of the pre-bid meeting will be to answer any questions the Biddersmay have concerning this Bid Document as well as to enable the Bidders to hearthe answers to questions raised by others Bidders. This open forum is designed toensure that all Bidders have access to the same information.6.3 Bidders are requested to submit questions including the queries discussed in thepre-bid meeting in writing to reach BPDB not later than 20 (twenty) Days beforethe Bid Date. Bidders are reminded that questions raised 20 (twenty) Days orfewer Days prior to the Bid Date shall not be answered by BPDB.6.4 Questions raised at the pre-bid meeting shall be answered at that time, wherepossible, or referred to relevant staff from various government organizations.Answers to questions raised prior to or during the pre-bid meeting will beprepared by BPDB will be posted along with the response of BPDB on thewebsite of BPDB on an unattributed basis.6.5 Any modification of this Bid Document which may become necessary as a resultof pre-bid meeting shall be made by BPDB exclusively through the issuance ofan Addendum posted along with the response of BPDB on the website of BPDB.8

7.0 CLARIFICATIONS AND AMENDMENTS OF BID DOCUMENT7.1 Clarifications.a. Bidders may seek clarification from BPDB on the Bid Document bysubmitting a request for clarification in writing to BPDB at the addressgiven in this Bid Document. Although BPDB will attempt to respond toall reasonable queries, it is under no obligation to do so, and may electnot to respond to any query or request for clarification at its solediscretion.b. All queries from Bidders to which BPDB has responded will be postedalong with the response of BPDB on the website of BPDB on anunattributed basis. Any query to be considered by BPDB for a responsemust be received from Bidders at least 20 (twenty) days before the BidDate.7.2 Amendments.a. At any time prior to the Bid Date, BPDB may issue Addenda which maydelete, modify, or extend any part of this Bid Document (QualificationDocument and RFP).b. Bidder’s late receipt of any Addendum or failure to receipt of anyAddendum shall not relieve Bidder of being bound by such Addendum.8.0 LANGUAGE OF BIDThe Bid and all related correspondence and documents shall be written in the Englishlanguage. Supporting documents and printed literature furnished by Bidder with the Bidmay be in any other language provided they are accompanied by an appropriate translationof pertinent passages in the English language. Supporting materials which are not translatedmay not be considered. For the purpose of interpretation and evaluation of the Bid, theEnglish language translation shall prevail9.0 EXTENSION OF BID DATEIn order to afford Bidders reasonable time in which to take a clarification or Addenda intoaccount in preparing their Bid, or any other reasons BPDB may, at its discretion, extendBid Date.10.0 BID VALIDITY10.1 The Bid shall remain valid for a period of eight (8) month. Any Bid offering less thanthe Bid validity period shall be rejected.10.2 Prior to expiration of the original Bid validity period, BPDB may request one or moreof the Bidders for a specified extension in the period of validity. The request and theresponses for any extensions to the original Bid validity period shall be made inwriting. A Bidder may refuse the request. A Bidder agreeing to the request will not bepermitted to modify its Bid, but will be required to extend the validity of its BidSecurity accordingly. The provisions of following Article, regarding release andforfeiture of Bid Security shall continue to apply during the extended Bid validityperiod.9

11.0 BID SECURITY11.1 Each Bidder shall furnish, as part of the submission of its Qualification Statement, aBid Security in the required amount. Any Bid not accompanied by an acceptable BidSecurity shall be rejected by BPDB as non-responsive.11.2 The Bid Security shall be in the form, contained in Annex D, Exhibit I, Attachment I-2 of Request for Proposal (Technical, Commercial and Financial requirement),entitled “Form of Bid Security”. The Bid Security shall be valid for nine (09) monthsfrom the Bid Date, unless extended as per request of BPDB.11.3 If any Bidder is not qualified in Qualification Statement or if any Bidder's Technical,Commercial and Financial Proposal is determined to be non-responsive, the BidSecurity will be returned to such Bidder. Envelope-II of the Tariff Proposal of allResponsive Bidders qualified in Envelope-I (Technical, Commercial and Financialrequirement) will be evaluated and ranked and the Bid validity period of their Bidswill be extended, if necessary. The Bid Security of all Responsive Bidders will remainin effect until the execution of the Project Agreement by the successful Bidder. TheBid Security of all the remaining unsuccessful Bidders will be returned upon theexecution of the Project Agreements by the successful Bidder. The Bid Security ofsuccessful Bidder will be returned when that Bidder has executed the ProjectAgreements and has provided the required Performance Security Deposit.11.4 The Bid Security must have a validity period of not less than nine (9) months. Thesuccessful Bidder or the Project Sponsor shall extend the Bid Security so that the BidSecurity must always remain valid upto the submission of Performance SecurityDeposit (PSD). The Bid Security shall be forfeited without any notice, demand, orother legal process if any of these conditions occur.11.4.1 the Bidder withdraws its Bid during the Bid validity period;11.4.2 the Bidder’s Bid contains any false statement or material misinterpretation; or11.4.3 the Project Sponsor or the Company fails to sign the Project Agreementswithin thirty (30) days following the date of issuance of the Letter of Intent; or11.4.4 the Project Sponsor or the Company fails to furnish the Performance SecurityDeposit on or before signing of the Project Agreements.11.4.5 If at any time prior to the submission of PSD the Bid Security will expirewithin thirty (30) Days and the Company does not extend the period ofeffectiveness of the Bid Security for a period of not less than three (3) Months.12.0 COST OF PREPARING OF BIDBidders shall bear all costs associated with the preparation and submission of their Bidsand the finalization and execution of the agreements comprising the Security Package,including any travel to Bangladesh and Site visits and gathering of information and otherinvestigation, review and analyses. The GOB and BPDB will in no case be responsible orliable for these costs, regardless of the conduct or outcome of the evaluation process orsubsequent financability of the Project.10

13.0 ONE BID PER BIDDEREach Bidder shall submit only one Bid either by itself, or as a member of a Bidderconsortium. A Bidder who submits or participates in more than one Bids shall bedisqualified and all the Bids submitted by such Bidder shall be considered nonresponsive.14.0 FORMAT AND SIGNING OF BID14.1 If the Qualification Statement and the Proposal consists of more than one volume,Bidder must clearly number the volumes and provide an indexed table of contentsfor each volume. All documents should be securely bound.14.2 The Bid shall be typed or written in indelible ink Each sheet shall be initialed by aperson or persons duly authorized to sign for the Bidder and bind the Bidder to theBid and any resulting agreement and contract. The Bid shall be signed by a personor persons duly authorized to bind the Bidder to the Bid. All pages of the Bid whereentries or amendments have been made shall be initialed by the person or personssigning the Bid.14.3 The Bid shall be without alternations, interlineations, or erasures, except asnecessary to accord with instructions issued by BPDB or to correct errors made byBidder. All such corrections shall be initialed by the person or persons signing theBid.15.0 SEALING AND MARKING OF BID15.1 Bid shall be comprised of Envelope-I and Envelope-II.15.2 One (1) original of Envelope-I and Envelope-II in separate sealed envelopes plus two (2)copies of Envelope-I and Envelope-II in separate sealed envelope must be submitted toBPDB on or before the Bid Date. Envelope-I shall contain Qualification Statement &Technical, Commercial and Financial Proposal and Bid Security in response toQualification Document and Request for Proposal (Technical, Commercial andFinancial requirement) in a single envelope and Envelope-II shall contain TariffProposal in a single envelope.The original of the completed Bid (Envelope-I and Envelope-II) is to be clearly marked“Original of Bid”, and other completed copies are to be clearly marked “Copy of Bid”.In the event of any discrepancy between the original and any copy, the original shallprevail.15.3 The envelopes or boxes containing the Bid must be addressed to BPDB as follows:SecretaryBangladesh Power Development BoardWAPDA Building (1 ST Floor),Motijheel C/A, DHAKA, 1000.Facsimile: : 880-2-9564765, 880-2-9551344.Tel. No. : 8802-9554209, 956735011

15.3.1 The envelope or box must indicate the name and address of Bidder to enable theBid to be returned unopened in case it is declared late or otherwiseunacceptable.15.3.2 The envelope or box must bear the same label as on the cover envelope or box.Each envelope or box shall be sealed.Below the address mentioned above, the following must be written in bold letters:“FENCHUGANJ GAS-FIRED COMBINED CYCLE POWER PROJECT”“100-150 MW POWER STATION”“DO NOT OPEN UNTIL 12:00 HOURS, June 21, 201116.0 BID SUBMISSION PROCEDURE AND TIMINGThe Bid (not facsimile or email) along with non refundable processing fee and Bid Securityshall be submitted in the following address on or before 12:00 Noon local time (BST) inDhaka, Bangladesh, on June 21, 2011 (the “Bid Date”):SecretaryBangladesh Power Development BoardWAPDA Building (1 ST Floor),Motijheel C/A, DHAKA, 1000.Facsimile: : 880-2-9564765, 880-2-9551344.Tel. No. : 8802-9554209, 9567350All inquiries pertaining to this document shall be directed to BPDB at the address abovenot later than 20 (twenty) days before the Bid Date.Bids submitted by facsimile, electronic mail, telex, or telegram will not be accepted.Bids submitted by the Bidder to BPDB (except for Late Bids) shall become property ofBPDB and shall not be returned to the Bidder under any circumstances.17.0 LATE BIDSBids will not be received after the specific date and time for the submission of Bidsno matter what the reason of delay may be.12

18.0 WITHDRAWAL OF BID18.1 Bidder may withdraw its Bid after Bid has been submitted to BPDB, provided thatthe notice of withdrawal is received in writing by BPDB at least 48 hours prior toBid Date.18.2 No Bid may, under any circumstances, be withdrawn after the Bid Date.18.3 Withdrawal of a Bid at any time, under any circumstance, during the period betweenthe Bid Date and the expiration of the Bid validity period specified by Bidder willresult in the forfeiture of the Bid Security19.0 PROPOSAL OPENING1.1 BPDB will consider to evaluate Technical, Commercial and Financial Proposal ofthose Bidders against RFP whose Qualification Statements demonstrate that theymeet all the criteria set forth in the Qualification Document and evaluatesTechnical, Commercial and Financial Proposal's contents; and identifies theResponsive Bidders.1.2 BPDB will open Envelope II Proposals of the Responsive Bidders only, in an opensession at the time and date to be specified in the BPDB’s letter of invitation to theEnvelope II Proposals opening to the Responsive Bidders. The Bidders’representatives who are present shall sign a register as evidence of their attendance.1.3 At Envelope I Bid opening, BPDB will examine Proposals to determine whetherthe requisite Proposal Securities have been furnished and whether the documentshave been properly signed. BPDB will then read the information provided in theAnnex A-2 Qualification Statement Form of the Qualification Document.20.0 DISPOSITION OF BIDS20.1 BPDB reserves the right to reject any Bidder’s (i) Qualification Statement orTechnical, Commercial and Financial Proposal and or (ii) Tariff Proposal, if suchBidder’s (i) Qualification Statement & Technical, Commercial and FinancialProposal and (ii) Tariff Proposal does not comply with the criteria described inQualification Document and Request for Proposal without thereby incurring anyliability to the Bidder. BPDB reserves the right not to award the Project to anyBidder, and may terminate the bidding process at any time without thereby incurringany liability to any Bidder. BPDB may at its sole discretion contact Bidder(s) andrequest clarifications or additions to, or modifications to the format of, any of theinformation or data submitted in the (i) Qualification Statement & Technical,Commercial and Financial Proposal and (ii) Tariff Proposal. Any such requests forclarifications, additions or modifications and replies thereto are to be in writing.13

20.2 BPDB reserves the right to contact third parties and verify the information providedby each Bidder in its (i) Qualification Statement & Technical, Commercial andFinancial Proposal and (ii) Tariff Proposal at any time during or after the tenderingprocess. Any (i) Qualification Statement, or Technical, Commercial and FinancialProposal and or (ii) Tariff Proposal determined to contain material misstatementserrors on omissions may be rejected or disqualified in BPDB's sole discretion21.0 EVALUATION COMMITTEEThe Ministry of Power, Energy and Mineral Resources shall appoint an evaluationcommittee (the “Evaluation Committee”) which shall be in charge of examiningeach of the Qualification Statements and Proposal submitted by Bidders.22.0 SUBMISSION AND EVALUATION PROCEDUREThe procedure for opening and evaluating Qualification Statement and Proposal receivedfrom Bidders will be as follows:22.1 Each Bidder shall submit its (i) Qualification Statement & Technical, Commercial andFinancial Proposal and (ii) Tariff Proposal in two separate envelopes in response toQualification Document and Request for Proposal.22.2 All submitted Bids will be properly safeguarded. Envelopes will not be opened exceptin the presence of the Chairman of the Bid opening committee.22.3 Thirty minutes after the submission deadline (i.e., the Bid Date), Envelope-I of the Bidwill in public be opened. The name of each Bidder will be read out. The name of allBidders will also be posted on the website of BPDB.22.4 Each page of the original version and at least one copy of each QualificationStatement, and the first page of each annex thereto, will be initialed by at least twoMembers of the Bid opening committee.22.5 The Evaluation Committee shall evaluate each Bidder’s Qualification Statement ofEnvelope-I on a “pass” or “fail” basis. Bidders must meet all of the criteria set forthin Section H of the Qualification Document to “pass” the evaluation process to bequalified for evaluation process of Technical, Commercial and Financial Proposal.Envelope-II of the responsive bidders qualified in Technical, Commercial andFinancial Proposal will be evaluated thereafter to select the Project Sponsor.22.6 The Evaluation Committee may request in writing any additional information inconnection with any response in an Bidder’s (i) Qualification Statement & Technical,Commercial and Financial Proposal and (ii) Tariff Proposal. Each Bidder mustdesignate a representative to receive these requests. This representative must providea telephone number, email address and other address.22.7 No Bidder or consortium Member may contact directly any Member of the EvaluationCommittee to discuss on evaluation of the offers.14

23.0 CONFIDENTIALITY23.1 All Bids received by BPDB shall remain sealed in BPDB’s possession until the Bidopening. Except as may be required by law or by a court or governmental agencyof appropriate jurisdiction, no information contained in or relating to the Bid shallbe disclosed to any Bidder or other persons not officially involved in the process ofexamination and evaluation of Bids23.2 After opening of Bids, information relating to the examination, clarification,evaluation, and comparison of Bids and recommendations concerning the award ofthe Project shall not be disclosed to Bidders or other persons not officiallyconcerned with such process.23.3 Any effort by a Bidder to influence GOB/ BPDB in the process of examination,clarification, evaluation and comparison of Bids, and in decisions concerningaward of the Project, may result in the rejection of Bidder’s Bid and forfeiture ofthe Bid Security.23.4 BPDB will return neither the original nor the copies of any Bid submitted by aBidder (except Late Bids).24.0 CLARIFICATION/VERIFICATION OF BIDS24.1 During the examination, evaluation, and comparison of Bids, BPDB may, at itsdiscretion, ask the Bidders for clarification of their Bids; may invite meeting forclarification/confirmation and may verify the submitted documents. BPDB’s suchrequest for clarifications and the Bidders’ responses shall be in writing and nochange in the Tariff Charges or substance of the Bid should be sought, offered orpermitted.24.2 The Bidder is require to respond to BPDB’s request for additional information,clarification or verification within three (03) Days after the request has been made.24.3 To assist in the examination, determination of responsiveness, evaluation andcomparison of Bids, BPDB may also require the Bidder to attend clarificationmeetings to be held at BPDB’s offices.24.4 The Bidder shall be responsible for all costs associated with the submission ofinformation additionally requested and with its preparation for and attendance ofclarification meetings.15

SECTION-IIIThis Section includes the following documents:(i)Qualification Document & Request for Proposal (Technical, Commercial and Financialrequirement)(Section A of Annex A-2 shall be read out during the opening of Envelope-I)(ii)Request for Proposal (Tariff requirement)16