Invitation for Bids

and
Part 1 – Instructions to Bidders
 Part 1
Lahendong Geothermal Power Plant Project (JBIC) Instructions to Bidders
Bid Documents

INVITATION FOR BIDS

Date: May 12, 2006

Loan No.: JBIC IP-517

1. The Government of the Republic of Indonesia (hereinafter referred to as

the “GOI”) has received an ODA Loan under Special Term for Economic
Partnership (STEP) from JAPAN BANK FOR INTERNATIONAL
COOPERATION (hereinafter referred to as the “JBIC”) in the amount of
FIVE BILLION EIGHT HUNDRED SIXTY-SIX MILLION Japanese Yen
(JPY5,866,000,000.-) toward the cost of LAHENDONG GEOTHERMAL
POWER PLANT PROJECT (JBIC) (1 x 20 MW), and intends to apply a
portion of proceeds of the loan to payments under the contract.
Disbursement of an ODA Loan by JBIC will be subject, in all respects, to
the terms and conditions of the Loan Agreement, including the
disbursement procedures and the “Guidelines for Procurement under
JBIC ODA Loans”. No party other than GOI shall derive any rights from
the Loan Agreement or have any claim to the loan proceeds. The above
Loan Agreement will cover only a part of the project cost. As for the
remaining portion GOI will take appropriate measure for finance.

2. JBIC requires that bidders and contractors, as well as GOI, under the
contracts funded with JBIC ODA Loans and other Japanese ODA,
observe the highest standard of ethics during the procurement and
execution of such contracts. In pursuance of this policy, JBIC;

(a) will reject a proposal for award if it determines that the bidder
recommended for award has engaged in corrupt or fraudulent
practices in competing for the contract in question;
(b) will recognize a contractor as ineligible, for a period determined by
JBIC, to be awarded a contract funded with JBIC ODA Loans if it
at any times determines that the contractor has engaged in
corrupt or fraudulent practices in competing for, or in executing,
another contract funded with JBIC ODA Loans or other Japanese
ODA.

3. PT. PLN (Persero) (hereinafter referred to as the “Employer”) now invites

sealed bids from pre-qualified bidders for the design, supply, construction
installation, commissioning, performance testing and guarantees during
the Defects Liability period of a complete LAHENDONG GEOTHERMAL
POWER PLANT PROJECT (JBIC) (1 x 20 MW).

4. Bidders may obtain further information on the bid from, and inspect and
acquire the bidding documents, at the office of the Employer, at

PT. PLN (Persero)

Director of Generation and Primary Energy
c/o Deputy Director of Primary Energy
10th Floor, Main Building
Jl. Trunojoyo Blok M I/135
Kebayoran Baru, Jakarta Selatan 12160
INDONESIA

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 Part 1
Lahendong Geothermal Power Plant Project (JBIC) Instructions to Bidders
Bid Documents

Telephone +62-21-725-1234
Facsimile : +62-21-725-1341, +62-21-722-7025

5. A complete set of bidding documents may be purchased by interested

pre-qualified bidders on the submission of a written application to the
above address and upon payment of a non-refundable fee of Five Million
Rupiah (Rp. 5.000.000, -)

6. All bids must be accompanied by a bid security of a minimum of Nine

Hundred Thousand United States Dollars (USD900,000), or an equivalent
amount in a freely convertible currency, and must be delivered to the
above address on or before 14:00PM on August 14, 2006, and will be
publicly opened immediately thereafter.

7. A single stage two-envelope bidding procedure with pre-qualification will

be adopted.

8. The estimated date of award is November 2006.

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 Part 1
Lahendong Geothermal Power Plant Project (JBIC) Instructions to Bidders
Bid Documents

Instructions to Bidders
Table of Contents

A. General E. Opening and Evaluation of Technical

Proposals
1. Scope of Bid
2. Source of Funds 27. Opening of Technical Proposals
3. Eligible Bidders 28. Process to be Confidential
4. Eligible Materials, Equipment and 29. Preliminary Examination of
Services Technical Proposals
5. Qualification of the Bidder 30. Evaluation of Technical
6. One Bid per Bidder Proposals
7. Cost of Bidding 31. Clarification of Technical
8. Site Visit Proposals
32. Invitation to Attend Opening of
B. Bidding Documents Price Proposals

9. Content of Bidding Documents F. Opening and Evaluation of Price Proposals

10. Clarification of Bidding
Documents 33. Opening of Price Proposals
11. Amendment of Bidding 34. Process to be Confidential
Documents 35. Clarification of Price Proposals
36. Preliminary Examination of Price
C. Preparation of Bids Proposals and Determination of
Responsiveness
12. Language of Bid 37. Correction of Errors
13. Two-Envelope Bidding Procedure 38. Conversion to Single Currency
14. Documents Comprising the Bid 39. Evaluation and Comparison of
15. Bid Forms and Price Schedules Price Proposals
16. Bid Prices
17. Bid Currencies G. Award of Contract
18. Bid Validity
19. Bid Security 40. Award Criteria
20. Alternative Proposals by Bidders 41. Employer’s Right to Accept any
21. Pre-Bid Meeting Bid and to Reject any and all Bids
22. Format and Signing of Bid 42. Notification of Award
43. Signing of Contract Agreement
D. Submission of Bids 44. Contract Effective Date
45. Commencement Date
23. Sealing and Marking of Bids 46. Performance Security
24. Deadline for Submission of Bids
25. Late Bids
26. Modification and Withdrawal of
Bids

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