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Central Java BOOT Power Project Request for Proposals (“RFP”)

PT PLN (Persero)
A State-owned Enterprise of the Republic of Indonesia




Central Java IPP (2 X 1000 MW1, gross)
Build Own Operate Transfer Power Project

REQUEST FOR PROPOSALS


(“RFP”)
FEBRUARY 25, 2010


1
PLN will be willing to discuss a size 2 x 800 MW with Qualified Applicants – final size to be determined
following these discussions.

 

Central Java BOOT Power Project Request for Proposals (“RFP”)

IMPORTANT NOTICE

This Request for Proposals (“RFP”) is being issued by PT PLN (Persero) (“PLN”) acting as the holder of
the Authority for Electricity Business in Indonesia on behalf of the Government of Indonesia (the
“Government”) to Qualified Applicants, to provide the instructions and procedures for undertaking due
diligence and submitting a bid for the Central Java Coal-Fired Power Plant Independent Power Producer
Project ( the “Project” as more particularly described herein).

This RFP does not purport to contain all of the information that a Qualified Applicant may need or desire.
The RFP has been prepared to assist Qualified Applicants in making their own evaluations. In all cases,
Qualified Applicants should conduct their own investigations and analyses of the information set forth in
this RFP. PLN does not warrant the accuracy and completeness of the information presented herein, or
make any representation that the information presented herein constitutes all the information necessary to
present a bid or develop the Project. Each Bidder that submits a bid, accepts full responsibility for
conducting an independent analysis of the feasibility of the Project and for gathering and presenting all the
necessary information. The Government and PLN expressly disavow any obligation or duty (whether in
contract, tort or otherwise) to any Qualified Applicant and/or any Bidder. Any Bidder that submits a bid,
assumes all risks associated with the Project and no adjustments will be made based on the Bidder’s
interpretation of the information provided.

Neither PLN, the Government, its ministries, departments or agencies, nor any of their agents,
representatives or advisors makes any representation (expressed or implied) or warranty as to the accuracy
or completeness of this RFP or the information contained herein and shall have no liability for it or for any
other written or oral communication transmitted to or received by a Qualified Applicant and/or a Bidder in
the course of the Qualified Applicant and/or Bidder’s evaluation of the proposed tender. Only those
particular representations and warranties which may be made by PLN in a definitive written agreement,
when and if one is issued, and subject to such limitations and restrictions as may be specified in such
communication, shall have any legal effect.

All information submitted in response to the RFP shall become the property of PLN and neither PLN, nor
the Government accept any responsibility for maintaining the confidentiality of the material submitted or
any trade secrets or proprietary data contained therein. In submitting a proposal in response to the RFP,
each Bidder certifies that it understands, accepts and agrees to the disclaimers on this page. Nothing
contained in any other provision of the RFP nor any statements made orally or in writing by any person or
party shall have the effect of negating or superseding any of the disclaimers set forth on this page.

PLN reserves the right, in its sole discretion, to modify any of the rules or procedures relating to the tender,
or without prior notice or assigning any reason therefore, to terminate the tender. Neither PLN, the
Government, nor any of their agents, representatives, advisors or consultants will be liable or responsible to
any person for any cost or expense incurred in responding to this RFP or in any investigation or transaction,
whether or not consummated, which may follow.

This RFP does not constitute an offer to sell or a solicitation of an offer to buy any security or shares, nor
does it constitute an offer to sell or a solicitation of an offer to buy any security or share in any jurisdiction
in which such an offer, solicitation or sale is not authorized, or to any person to whom it is unlawful to
make such an offer, solicitation or sale.

 

Central Java BOOT Power Project Request for Proposals (“RFP”)

TABLE OF CONTENTS

INVITATION TO QUALIFIED APPLICANTS .......................................................................................... 6


INSTRUCTIONS TO BIDDERS ................................................................................................................ 9
DEFINITIONS ............................................................................................................... 9
INSTRUCTIONS TO BIDDERS ...............................................................................................................15
GENERAL INSTRUCTIONS .................................................................................... 15
1. CONSORTIUM FORMATION ...................................................................... 15
2. REQUEST FOR PROPOSAL (“RFP”) ....................................................... 15
3. PROJECT DEVELOPMENT SCHEDULE ................................................. 16
4. COST OF PREPARING PROPOSAL ......................................................... 17
5. DUE-DILIGENCE ........................................................................................... 17
6. INTENTIONALLY LEFT BLANK ................................................................. 18
7. DRAFT PROJECT AGREEMENTS ............................................................ 18
8. BIDDERS’ CONFERENCE........................................................................... 18
9. SITE DUE DILIGENCE.................................................................................. 19
10. CLARIFICATIONS AND AMENDMENTS .................................................. 20
PREPARATION OF PROPOSAL ............................................................................ 21
11. LANGUAGE OF PROPOSAL ...................................................................... 21
12. PROPOSAL STRUCTURE AND CONTENT ............................................. 21
13. PROPOSAL VALIDITY ................................................................................. 24
14. FORMAT AND SIGNING OF PROPOSAL ................................................ 25
SUBMISSION OF PROPOSALS ............................................................................. 25
15. SEALING AND MARKING OF PROPOSALS ........................................... 25
16. DEADLINE FOR SUBMISSION OF PROPOSALS .................................. 27
17. LATE PROPOSALS ...................................................................................... 27
PROPOSAL OPENING AND EVALUATION ........................................................ 28
18. PROPOSAL OPENING................................................................................. 28
19. DETERMINATION OF RESPONSIVENESS............................................. 28
20. CLARIFICATION/VERIFICATION OF PROPOSALS ............................. 29
21. RETURN OF NON-RESPONSIVE PROPOSALS .................................... 29
22. EVALUATION OF BIDDER’S ENVELOPE II ........................................... 29
23. CORRECTION OF ARITHMETIC ERRORS ............................................. 30
24. CONFIDENTIALITY....................................................................................... 30
SELECTION................................................................................................................ 31
25. ANNOUNCEMENT OF BID RESULTS...................................................... 31
26. LETTER OF INTENT ..................................................................................... 31
27. FINALIZATION ............................................................................................... 31
28. BIDDER’S RESPONSIBILITIES ................................................................. 32
29. CAUSES OF REJECTION OF PROPOSALS .......................................... 32

 

Central Java BOOT Power Project Request for Proposals (“RFP”)

ANNEXES

ANNEX A - BID DATA SHEET


ANNEX B - PARAMETERS FOR BIDDER’S PRICE PROPOSAL
ANNEX C - PROJECT FUNCTIONAL SPECIFICATIONS
ANNEX D - BIDDER’S PROPOSAL AND SUPPORTING DATA
ANNEX D - EXHIBIT 1: CONFIDENTIALITY LETTER
ANNEX D - EXHIBIT 2: PROPOSAL LETTER
ANNEX D - EXHIBIT 3: POWER OF ATTORNEY
ANNEX D - EXHIBIT 4: PROPOSAL SECURITY FORM
ANNEX D - EXHIBIT 5: FINANCING DATA IN SUPPORT OF PROJECT
ANNEX D - EXHIBIT 6: TECHNICAL DATA AND SUBMITTALS
ANNEX D - EXHIBIT 7: ADDITIONAL SUPPORTING DATA
ANNEX D - EXHIBIT 8: BIDDER’S PROJECT DEVELOPMENT SCHEDULE
ANNEX D – EXHIBIT 9: INITIALLED FINAL PROJECT AGREEMENTS
ANNEX D – EXHIBIT 10: PROJECT SPONSOR’S STAFFING PLAN
ANNEX E – PRICE PROPOSAL FORM
ANNEX F – INTENTIONALLY BLANK
ANNEX G – DRAFT GOVERNMENT SUPPORT LETTER
ANNEX H – DRAFT POWER PURCHASE AGREEMENT (“PPA”)
ANNEX I – BIDDING CONSORTIA
ANNEX J –BIDDING CONSORTIUM SUBMISSION
ANNEX K – AMDAL REQUIREMENTS
ANNEX L – FORMAT FOR SUBMISSION OF WRITTEN COMMENTS
ANNEX M – KEY TERMS OF DEVELOPMENT COST ESCROW ACCOUNT
AGREEMENT

 5

Central Java BOOT Power Project Request for Proposals (“RFP”)

INVITATION TO QUALIFIED APPLICANTS

PT PLN (Persero)

REQUEST FOR PROPOSALS TO SELECT A SPONSOR TO


DEVELOP THE CENTRAL JAVA 2 x 1000 MW (gross) COAL-FIRED
THERMAL
POWER PROJECT ON A BUILD OWN OPERATE BASIS
IN CENTRAL JAVA, REPUBLIC OF INDONESIA

To: [Name and Address of Lead Member of Qualified Applicant]

Dear [Name of Lead Member]:

Capitalised terms not otherwise defined in this letter shall have the meanings give to them
in the Request for Proposals (“RFP”).

This invitation is being distributed to Lead Members of Qualified Applicants pursuant to


the Pre-Qualification Document dated June 22, 2009. PT PLN (Persero) (“PLN”), hereby
invites Qualified Applicants to submit proposals, in response to this RFP, for the right to
develop, operate and maintain the ca. 2000 MW coal-fired thermal power station (the
“Facility”) at specified site conditions along with all support facilities (the “Project”) in
Central Java on a Build, Own, Operate, Transfer (“BOOT”) basis. Qualified Applicants
wishing to submit a proposal shall be required to form bidding consortia in accordance
with Annex I of this RFP and notify PLN of the composition of any such consortia by the
Consortium Formation Date. Only Qualified Applicants who meet the requirements
related to formation of the consortia stated in Annex I will be allowed to submit a
Proposal in response to the Request for Proposal (“Bidders”).

For the purpose of preparing a Proposal, Bidders shall follow the requirements of this
RFP and use the forms which have been provided herein.

The following procedures have been established by PLN for the selection of the Project
Sponsor for implementation of the Project:

a. PLN issued a Pre-Qualification Document on June 22, 2009 requesting


interested parties to submit a Pre-Qualification Application.
b. PLN notified Qualified Applicants of their status on November 5, 2009.
c. PLN is issuing this RFP, to Qualified Applicants to solicit Proposals.
d. Qualified Applicants are required to submit to PLN the composition of
their bidding consortia by the Consortium Formation Date in accordance
with Annex I.

 6

Central Java BOOT Power Project Request for Proposals (“RFP”)

e. Bidders will be permitted to submit Proposals on the Bid Submission


Date.
f. In response to the RFP, Bidders will submit Proposals in two envelopes on
the Bid Submission Date. Envelope I will contain all necessary
documentation as defined in Section 1112.1 of this RFP (the
“Administrative and Technical Proposal”) and Envelope II will contain
the Bidder’s price proposal (the “Price Proposal”).
g. Following the submission of the Proposals, PLN Procurement Committee
(the “Procurement Committee”) will first open Envelope I and evaluate its
contents to determine if the contents of Envelope I (i) conform to the
requirements set out in Section 1112.1 of this RFP, and (ii) are
substantially responsive to the requirements of this RFP. Each Bidder that
submits an Envelope I and the contents of which are deemed by PLN to be
substantially responsive to the requirements of this RFP will be declared a
Responsive Bidder (“Responsive Bidders”). PLN shall reject any
Bidder’s Proposal if the contents of its Envelope I are not substantially
responsive to the requirements of this RFP (“Non-Responsive Bidders”).
h. Thereafter, the Procurement Committee will proceed to open, evaluate and
rank, from lowest to highest, the Envelope II submitted by each of the
Responsive Bidders in a public session. The Responsive Bidder proposing
the lowest Levelized Tariff Price (“LTP”), supported by the required
financing data, shall be ranked first.
i. If PLN accepts the LTP proposed by the first-ranked Bidder, it will
declare such Bidder as the winning bidder and issue the Letter of Intent to
such Bidder notifying it that it is the Winning Bidder.
j. The Project Agreements will be executed and ratified by PLN, the Project
Sponsors and the Project Company.

The Winning Bidder will be required to form the Project Company that will execute the
Project Agreements. The Project Company will be required to arrange the necessary
financing for the Project and other contracts required for the construction, operation and
maintenance of the Facility, implement the Project, and, upon commissioning, operate the
Facility for a period of twenty-five (25) years from the Project Commercial Operation
Date of the Facility so as to provide capacity and energy to PLN at a specified tariff.

Proposals must be delivered to PLN by the Bid Submission Date, at the date, time, and
address indicated in the Bid Data Sheet. Proposals must be accompanied by the Proposal
Security. Proposals shall remain valid for the Bid Validity Period (the “Bid Validity
Period”).

All inquiries pertaining to this document shall be directed to PLN at the addresses
provided in the Bid Data Sheet.

 7

Central Java BOOT Power Project Request for Proposals (“RFP”)

Qualified Applicants are requested to confirm the receipt of this invitation in writing by
sending a letter to PLN at the addresses/contact details shown below. Qualified
Applicants or Bidders who do not intend to submit a Proposal are requested to notify
PLN at their earliest convenience.

Contacts/emails Address/contact details


Chairman of Central Karel_sp@pln.co.id PT PLN (Persero)
Java CFPP IPP Main Building 13rd floor
Procurement Committee Jalan Trunojoyo Blok M
I/135Kebayoran Baru
Jakarta 12160
Indonesia
Tel : +62-21-722 7049
Fax : +62-21-725 1511

Sincerely,

Karel Sampe Payung


Chairman of Central Java IPP Procurement Committee
PLN

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Central Java BOOT Power Project Request for Proposals (“RFP”)

INSTRUCTIONS TO BIDDERS

DEFINITIONS
The following terms are used in the Request for Proposal (RFP) and will have the
meanings defined herein. Note that all other capitalized terms used herein have the
meanings set forth in the Project Agreements.

“Administrative and Technical Proposal” means the contents of the first bid envelope to
be submitted by Bidders in accordance with Section 1012.

“Affiliate” means anybody corporate which, alone or together with any other entity,
directly or indirectly through one or more intermediaries, Controls, is Controlled by, or is
under common Control with another body corporate. Affiliates shall include a subsidiary
company and parent company and subsidiaries, directly or indirectly, of a common
parent.

“Applicants” means each body corporate or consortium who submitted a Qualification


Statement with the intent to be pre-qualified as a Qualified Applicant.
“AMDAL” means the environmental impact assessment to be conducted by the Project
Company in accordance with the Laws of Indonesia and the requirements of Annex K of
the RFP;

“Authorized Representative” means the person authorized by the Bidder through the
execution of a Power of Attorney, to act as its point of contact with PLN, the Government
and/or other pertinent agencies for all matters relating to the Bidding Process related to
the Project.

“Bank Guarantee Stage I” means the bank guarantee to be posted by the Project
Company in accordance with the PPA.

“Bid Data Sheet” means the bid data sheet provided in Annex A of this RFP.

“Bid Evaluation Spreadsheet” means the evaluation spreadsheet in MS Excel format to


be provided by PLN to Bidders.

“Bid Submission Date” means 1400 hours Jakarta time on the date specified in the Bid
Data Sheet in Annex A of this RFP.

“Bid Validity Period” means 180 days from the Bid Submission Date or such longer
period as may be determined in accordance with Section 12.2.

“Bidder” means a Qualified Applicant, pre-qualified by PLN pursuant to the Pre-


Qualification Process for the purpose of submitting a Proposal for the development of the
Project that meets the requirements of Annex I of the RFP.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

“Bidding Process” means the procedures set out in this RFP.

“Business Day” means any Day of the year on which banks are required to be open for
business (including partial Days) in Indonesia.

“Committed Shareholder” means a member of a Bidder’s consortium, other than a Lead


Member, that will hold at least 10% equity ownership in the Project Company;

“Consortium Formation Date” means the last date for formation of bidding consortia
set out in Table 1: Project Development Schedule of Section 3.1.

“Control” means the power to direct or cause the direction of the management policies of
a body corporate, by contract, agency or otherwise and “Controls” and “Controlled”
shall be construed accordingly

“Data Room” means the secure web site containing information to facilitate Bidder due
diligence.

“Day” means a twenty-four (24) hour period that ends at midnight Jakarta Standard
Time. Unless otherwise stated, Day is a calendar day.

“Development Cost Escrow Account” means an escrow account to be established by the


Project Company in a bank owned by the Government in the amount of the lesser of (a)
five percent (5%) of the estimated Project cost submitted by the Bidder in accordance
with Annex D, Part V, and (b) USD thirty-five million (35,000,000).

“Development Cost Escrow Account Agreement” means the agreement to be entered


into by the Project Company and the bank in respect of the Development Cost Escrow
Account in accordance with the terms provided in Annex M.

“Dollars” or “USD” means the lawful currency of the United States of America.

“Draft Project Agreements” means the draft form Project Agreements issued by PLN
pursuant to Section 7.

“EPC Contract” means the agreement to be entered into between the Project Company
and the EPC Contractor for the engineering, procurement and construction of the Facility.

“EPC Contractor” means the engineering, procurement and construction company


appointed or to be appointed by the Project Company.

“Exclusion Criteria” means those criteria set out in Section 4 of Annex I.

“Facility” means the coal-fired thermal electric power generation plant constructed in
Central Java, Indonesia, consisting of two units and, whether completed or at any stage of

 10

Central Java BOOT Power Project Request for Proposals (“RFP”)

development and construction, including without limitation or regard to level of


development, all associated buildings, structures, roads, auxiliary equipment, circulating
water supply and discharge systems, water treatment supply and storage systems, fuels
(coal and startup fuel) receiving and all required Site support facilities, including without
limitation, the administration buildings, warehouses, workshops, startup fuel delivery,
storage, distribution and treatment facility, together with all Site infrastructure, including,
without limitation, roads, portable water systems, sanitary sewer systems, parking areas,
lighting and security fencing in accordance with the scope defined in Appendix A of the
PPA which the Project Company deems necessary to implement the Facility, and all
improvements to such Site infrastructure including, without limitation, road
improvements, bridges and culverts and any other work (including, without limitation,
relocation of utilities in accordance with the scope defined in Appendix A of the PPA)
which the Project Company deems necessary to implement the Project.

“Final Project Agreements” means the final form of the Project Agreements issued by
PLN pursuant to Section 7 of this RFP.

“Government” means the Government of the Republic of Indonesia.

“Government Support Letter” means the letter provided to PLN and/or the Project
Company by the MoF setting out the basis through which Government support will be
offered to the Project.

“Indicative Project D” means the letter provided to PLN and/or the Project Company by
the MoF setting out the basis through which Government support will be offered to the
Project.

“Indonesia” means the Republic of Indonesia.

“IPP” or “Independent Power Producer” means a private power producer who has
developed a power plant to sell power to an existing utility, to the spot or merchant
market or directly to distributors or end users. For the purposes of this RFP, IPP shall also
include Independent Water and Power Producer (“IWPP”).

“Java-Bali Grid Code” means MEMR Regulation No. 3/2007.

“Lead Member” means the member(s) of a Bidder’s consortium that fulfilled the criteria
set forth in Section II-H of the Pre-Qualification Document.

“Legal Criteria” means those criteria set out in Section 3 of Annex I.

“Levelized Tariff Price” means the price calculated in accordance with Section
18.b.ii)b.b.22.

“Ministry of Finance” or “MoF” means the Ministry of Finance of the Government.

 11

Central Java BOOT Power Project Request for Proposals (“RFP”)

“Non-Responsive Bidder” means, a Bidder who is not a Responsive Bidder.

“Objection” means, an objection raised by a Bidder pertaining solely to matters related


to violation of the tender procedures as set forth in Section 25 18.b.ii)b.b.25of this RFP.

“Objection Period” means, a period of five (5) days commencing from PLN’s
announcement of bid results as set forth in Section 25 of this RFP.

“O&M Contract” means a contract or other agreement to be entered into by the Project
Company and the O&M Contractor for the operation and maintenance of the Facility, if
applicable.

“O&M Contractor” means the operations and maintenance organization (if any)
appointed or to be appointed by the Project Company.

“Other Shareholder” means a member of a Bidder’s consortium that is not a Lead


Member or a Committed Shareholder.

“Party” or “Parties” means PLN, the Government, the Project Sponsor and the Project
Company, or any or a combination of them.

“PLN” means PT PLN (Persero), currently the holder of the Authority for Electricity
Business in Indonesia pursuant to Law Number 15 of 1985 regarding Electricity; or its
successor;

“PLN Consent Letter” means the document to be issued by PLN regarding the rights of
Lenders with respect to the Project.

“PLN SCADA Standard” means the SCADA standard used by PLN whose details will
be provided in the Data Room.

“PPA” or “Power Purchase Agreement” means the agreement to be entered into by the
Project Company and PLN setting out the basis on which power output from the Project
will be procured.

“Pre-Bid Conferences” means the conference to be held by PLN in connection with the
Project on the date and at the venue to be notified to all Qualified Applicants in writing,
together with any subsequent conferences relating to the Project to which all Qualified
Applicants shall be invited.

“Pre-Qualification Document” means the document issued by PLN dated June 22, 2009
to interested parties inviting the same to submit their credentials for pre-qualification,
including any amendments and clarifications to such document.

 12

Central Java BOOT Power Project Request for Proposals (“RFP”)

“Price Proposal” means the contents of the second bid envelope to be submitted by
Bidders in accordance with Section 12 of this RFP.

“Procurement Committee” means the committee set up by PLN to conduct the Bidding
Process.

“Project Agreements” means the Power Purchase Agreement, the Sponsors Agreement,
and any other agreement entered into directly between PLN, and the Project Company or
the Project Sponsor or their respective permitted successors in respect of the Project.

“Project Company” means the company to be formed by the Project Sponsors and
incorporated under the Laws of Indonesia, with its registered office located in Indonesia,
and its permitted successors and assigns.

“Project Development Schedule” means the schedule for the implementation of the
Project as provided in Table 1 of Section 3.1 of this RFP.

“Project Functional Specifications” means the minimum technical requirements for the
Project set out in Annex C of this RFP.

“Project Sponsor” means the Winning Bidder or where the Winning Bidder consists of a
consortium, each consortium member of the Winning Bidder.

“Proposal” means the Bidder’s written offer based on the covenants, terms and
conditions as contained in this RFP for the building, operation, maintenance and transfer
of the Project.

“Proposal Security” means (i) an unconditional and irrevocable bank guarantee and/or
(ii) an unconditional and irrevocable Letter of Credit in each case issued by a bank,
acceptable to PLN located in Indonesia in the aggregate amount of thirty million Dollars
(USD 30,000,000) or IDR 300 billion, in either case in the form set out in Annex D-
Exhibit 4 which shall be valid for at least 30 days after the expiration of the Bid Validity
Period.

“Qualified Applicant” means an Applicant whom PLN determined to have met the
criteria set out in the Pre-Qualification Document.

“Responsive Bidder” means a Bidder whose Proposal conforms to all the terms,
conditions, and specifications of this RFP without material deviation or reservation, as set
out in Section 18.b.ii)b.b.19 of the Instructions to Bidders.

“RFP” or “Request for Proposals” means this document with all attachments hereto,
and any amendments and clarifications issued by PLN.

“Rupiah” or “IDR” means the lawful currency of the Republic of Indonesia.

 13

Central Java BOOT Power Project Request for Proposals (“RFP”)

“Security Package” means, collectively, the Project Agreements and the Third Party
Agreements which taken together form the various contractual arrangements.

“Tariff” means the price of electricity charged by the Project Company to PLN, as
provided for in the PPA and, where applicable, calculated in accordance with the formulas
and the terms of the PPA.

“Third Party Agreements” means, collectively, the EPC Contract, the O&M Contract
(if applicable), the Coal Supply Agreement, Coal Transportation Agreement (if
applicable), the Financing Documents, legal consents, insurance agreements, trust
agreements and all such legal documents which are entered into directly between the
Project Company and non-PLN/Government entities for the execution of the Project.

“Winning Bidder” means, the Bidder who is issued the Letter of Intent as provided in
Section 18.b.ii)b.b.26 of the RFP.

All other capitalized terms used herein have the meanings ascribed to those terms in the
Project Agreements, provided that if a term used in this document has a different
definition from that ascribed to it in the Project Agreements, as the case may be, the
definition used in this document shall prevail.

 14

Central Java BOOT Power Project Request for Proposals (“RFP”)

INSTRUCTIONS TO BIDDERS
GENERAL INSTRUCTIONS
1. CONSORTIUM FORMATION

1.1 Qualified Applicants who wish to become eligible to submit a Proposal must
submit to PLN the composition of their bidding consortium in the form provided
in Annex J of the RFP by no later than the Consortium Formation Date.
1.1 Rules governing composition of the bidding consortia are provided in Annex I.
1.2 Only Bidders will be eligible to submit Proposals.
1.3 Changes to bidding consortia requested by Bidders after the Consortium
Formation Date and before the date of execution of the PPA other than the
permissible changes set forth in Annex I will require the prior express written
approval of PLN and such approval may be granted under exceptional
circumstances and only if the qualification criteria set forth in this RFP and the
Pre-Qualification Document continue to be met.

2. REQUEST FOR PROPOSAL (“RFP”)

The bidding procedures are prescribed in this RFP, which includes the following:

a. The Invitation for Bids;


b. These Instructions to Bidders
c. Annex A –Bid Data Sheet
d. Annex B – Parameters for Bidders’ Price Proposal
e. Annex C – Project Functional Specifications
f. Annex D – Forms and Supporting Data for Envelope I
(i) Annex D – Exhibit 1: Confidentiality Letter;
(ii) Annex D – Exhibit 2: Proposal Letter;
(iii) Annex D – Exhibit 3: Power of Attorney;
(iv) Annex D – Exhibit 4: Proposal Security;
(v) Annex D – Exhibit 5: Financing Data in Support of the Project;
(vi) Annex D – Exhibit 6: Technical Data and Submittals;
(vii) Annex D – Exhibit 7: Additional Supporting Data;
(viii) Annex D – Exhibit 8: Bidder’s Project Development Schedule;
(ix) Annex D – Exhibit 9: Initialed Final Project Agreements;
(x) Annex D – Exhibit 10: Project Sponsor’s Staffing Plan.

g. Annex E – Price Proposal Form.


h. Annex F – Intentionally blank
i. Annex G – Draft Government Support Letter (“GSL”)
j. Annex H.- Draft Power Purchase Agreement (“PPA”)
k. Annex I – Bidding Consortia
l. Annex J – Bidding Consortium Submission

 15

Central Java BOOT Power Project Request for Proposals (“RFP”)

m. Annex K – AMDAL Requirements


n. Annex L – Format for submission of written comments
o. Annex M – Key terms of Development Cost Escrow Account Agreement

3. PROJECT DEVELOPMENT SCHEDULE

3.1 The indicative project development schedule (the “Project Development


Schedule”) is as described in Table 1 below:

Table 1: Project Development Schedule



Activity Date
Pre-Qualification Notification Issued November 5, 2009
Open Data Room February 25, 2010
Issue Request for Proposals and Draft Project February 25, 2010
Agreements to Bidders
Receive Bidders’ written comments on RFP March 12, 2010
Pre-Bid Conference* March 22, 2010
Consortium Formation Date – Consortium proposals March 26, 2010
received
Receive Qualified Applicants’ / Bidders’ written April 5, 2010
comments on Draft Project Agreements
Bidder consultation meetings on draft Project April 19-April 23,
Agreements (if any) 2010
Issue draft GSL April 15, 2010
Issue Final Project Agreements and in-principle MoF July 24, 2010
approval for the GSL
Bid Submission Date – Administrative and Technical August 25, 2010
Proposals and Price Proposals Received
Opening of Administrative and Technical Proposals August 25, 2010
Announcement of Responsive Bidders and Opening of September 24, 2010
Financial Bids (Envelope II)
Announcement of and Notification to first ranked Bidder October 25, 2010
that its Proposal has been accepted (“Letter of Intent”)
and of its status as the Winning Bidder
Execution of Project Agreements and GSL November 30, 2010
Financial Closing November 30, 2011
Unit 1 Commissioning Date November 30, 2014
Project Commercial Operations Date May 30, 2015

*Note: Pre-Bid Conference shall be limited to “process” (i.e. procedural/administrative)
matters.

3.2 PLN may, at its sole discretion and without giving prior notice to the Bidders,
amend the Project Development Schedule. PLN shall not incur any liability
 16

Central Java BOOT Power Project Request for Proposals (“RFP”)

whatsoever arising out of amendments to the Project Development Schedule. PLN


shall give notice of changes to the Project Development Schedule, if any, by
addenda which may be in the form of a bid bulletin.

4. COST OF PREPARING PROPOSAL

Qualified Applicants / Bidders shall bear all costs associated with the preparation
and submission of their Proposals, their participation in the Bidding Process,
including, but not limited to, the due diligence, Pre-Bid Conferences, any site
investigation, requests for clarifications, and the finalization and execution of the
agreements comprising the Security Package. The Government and PLN will in
no case be responsible or liable for these costs, regardless of the conduct or
outcome of the evaluation process.

5. DUE-DILIGENCE

5.1 Each of the Qualified Applicants or Bidders is required to undertake its own due
diligence with respect to the Project. However, PLN has arranged for the
following to facilitate preparation of Proposals:

a. The Data Room;


b. The Draft Project Agreements; and
c. The Pre-Bid Conference(s).

5.2 The Data Room will be made available by PLN by giving each Qualified
Applicant or Bidder access to a secure (password protected) website upon receipt
of the duly executed confidentiality agreement by the Authorized Representative
of the Qualified Applicant or Bidder, in the form set out in Annex D Exhibit 1,
entitled “Confidentiality Letter”, and returned to PLN to the address provided in
the Bid Data Sheet.

5.2.1 In order to assist Qualified Applicants / Bidders in developing their


Proposals, PLN will permit each Qualified Applicant / Bidder to nominate
financial institutions, EPC contractors, major equipment suppliers, O&M
contractors, etc. to have access to Project information subject to (i) such
parties being nominated in writing to PLN by a Qualified Applicant /
Bidder, and (ii) each nominated party signing a confidentiality agreement
which should be substantially in the same form as the Confidentiality
Letter, set forth in Annex D Exhibit 1. Within reason, such nominated
parties may also attend the Pre-Bid Conference(s). This provision does not
place any obligations on the Qualified Applicants / Bidders to work with
any of the nominated financial institutions, suppliers, EPC contractors,
major equipment suppliers, O&M contractors, etc., and as such, Qualified
Applicants / Bidders may nominate several competing firms for such
services.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

6. INTENTIONALLY BLANK

7. DRAFT PROJECT AGREEMENTS

7.1 PLN shall make available the Draft Project Agreements and draft form of the
GSL to Qualified Applicants. Qualified Applicants / Bidders shall have the
opportunity to submit written comments on the Draft Project Agreements
(including proposed mark-ups to certain sections of any of the Draft Project
Agreements representing a Qualified Applicant’s / Bidder’s suggested drafting
modifications) by the date specified in Section 3.1, in the form provided in Annex
L, entitled “Comments on the Draft Project Agreements”.

7.2 PLN may consider these written comments on the Draft Project Agreements and
issue addenda to the Draft Project Agreements, but is under no obligation to do
so.

7.3 PLN may arrange for one-on-one meetings with each of the Qualified Applicants /
Bidders to discuss the Project Agreements. The timing, venue, agenda and other
arrangements for any such meetings shall be communicated to Qualified
Applicants / Bidders whose attendance at such meetings is optional. Qualified
Applicants / Bidders may elect to invite their potential lenders, legal, technical or
other advisors to attend such meetings based on arrangements to be
communicated by PLN

7.4 PLN may arrange for separate consultations on the Draft Project Agreements and
the draft form of the GSL with potential financiers of the Project.

7.5 Final Project Agreements and the final draft of the GSL shall be issued by PLN at
least thirty (30) Days before the Bid Submission Date, following receipt of the
written comments to the Draft Project Agreements, the Pre-Bid Conference and
any additional meetings held with Bidders.

7.6 Bidders shall base their Proposals on these Final Project Agreements and the final
draft of the GSL.

8. BIDDERS’ CONFERENCE

8.1 PLN shall invite all Qualified Applicants to collectively attend the Pre-Bid
Conference.

8.2 Non-attendance at the Pre-Bid Conference will not be a cause for disqualification
of any Qualified Applicant or Bidder.

8.3 Pre-Bid Conference

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Central Java BOOT Power Project Request for Proposals (“RFP”)

8.3.1 The Pre-Bid Conference shall be open to all Qualified Applicant and/or
their representatives, collectively.

8.3.2 The Pre-Bid Conference shall be held in Jakarta, on the dates indicated in
Section 3.1. PLN shall notify Qualified Applicants by separate letter of
the exact time, format and location of the Pre-Bid Conference.

8.3.3 The purpose of the Pre-Bid Conference shall be to answer only questions
that Qualified Applicants may have concerning procedural / administrative
matters relating to the Bidding Process.

8.3.4 PLN shall make available to all Qualified Applicants any additional
Project information which results from the Pre-Bid Conference.

9. SITE DUE DILIGENCE



9.1 Bidders will be required to nominate a site on which they propose to locate the
Facility in their Technical and Administrative Proposals. Such proposed site will
be required to meet the criteria set forth in Annex C.

9.2 An indicative list of potential sites for the location of the Project will be provided
in the Data Room based on preliminary reconnaissance. PLN does not make any
representation or warranty, whether written or oral, as to the location, the
geological, hydrological, physical or environmental condition in, on or under, or
the state of repair or the suitability of any of the potential sites on which PLN has
provided any information. Neither PLN nor the Government shall have any
liability to any Qualified Applicant or Bidder to the extent that any information
provided to them either orally or written, or in any form whatsoever in respect of
any site is found to be incorrect or inaccurate in any respect.

9.3 Qualified Applicants / Bidders may visit and examine potential sites and
surrounding areas and obtain or verify all information deemed necessary for the
preparation of their Proposals.

9.4 Qualified Applicants / Bidders must make their own arrangements for conducting
due diligence on or around any potential site. PLN shall be under no obligation
whatsoever to facilitate or provide access to any potential site, whether listed in
the Data Room or not.

9.5 Failure to investigate a site or associated subsurface conditions fully shall not be
grounds for any Bidder to subsequently alter its Proposal, nor shall it relieve the
Project Sponsors or Project Company from any responsibility for appropriately
estimating the difficulty or costs of successfully completing the Project.
Furthermore, a Bidder’s Price Proposal or the Tariff shall not become adjustable
due to any such reason during finalization of the Project Agreements or
subsequently during the implementation of the Project.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

10. CLARIFICATIONS AND AMENDMENTS



10.1 Clarifications

Any Qualified Applicant / Bidder requiring clarification of this RFP must notify
PLN in writing by courier or hand-delivered official letter. Copies may be sent by
electronic mail.

PLN may respond in writing to any request for clarification which it receives not
later than forty-five (45) Days before the Bid Submission Date, however, it is
under no obligation to do so. Any reply that PLN may issue will be in the form of
a circular letter, bid bulletin or addendum and will be distributed to all Qualified
Applicants / Bidders, as the case may be, on a non-attributed basis. PLN may, at
its own discretion, choose not to respond to any request for clarification.

Unless a clarification to this RFP and/or the related Project Agreements is


provided in the formal manner described in this Section 0, no clarification to
Qualified Applicants or Bidders shall be considered valid or binding on PLN as to
the meaning of this RFP and/or the related Project Agreements. Qualified
Applicants / Bidders are cautioned that any interpretation or explanation, which is
not given in writing by PLN, must not be relied upon.

10.2 Amendments

At any time prior to thirty (30) Days before the Bid Submission Date, PLN may
issue addenda in writing to all Bidders whose Lead Members were issued the RFP
to and such addenda may amend any part of this RFP. The receipt of an
addendum by a Qualified Applicant / Bidder shall be acknowledged promptly in
writing by email or facsimile and so noted in the Bidder’s Proposal. A Qualified
Applicant’s / Bidder’s late receipt of any addendum or failure to acknowledge the
receipt of any addendum shall not relieve the Bidder of being bound by such an
addendum.

Unless an amendment to this RFP is made in the formal manner described in this
Section 10.2, no amendment shall be considered valid or binding on PLN as to the
meaning of this RFP and/or the related Project Agreements. Qualified Applicants
/ Bidders are cautioned that any amendment which is not given in writing by
PLN, must not be relied upon.

In order to afford Qualified Applicants / Bidders reasonable time in which to take


amendments into account in putting together their consortia or preparing their
Proposals, or for any other reason whatsoever, PLN may, at its sole discretion,
extend the deadline for the submission of Proposals, or adjust the schedules of any
of the other activities shown in Table 1: Project Development Schedule of Section
3.1 above.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

PREPARATION OF PROPOSAL

11. LANGUAGE OF PROPOSAL

The Proposal and all related correspondence and documents shall be written in
English. Supporting documents and printed literature furnished by the Bidder with
the Proposal may be in any other language provided they are accompanied by an
appropriate translation of pertinent passages in English. Supporting materials
which are not translated may not be considered. For the purpose of interpretation
and evaluation of the Proposal, the English translation shall be used. In case of
inconsistency between the English translation and the original language, the
English translation shall prevail.

12. PROPOSAL STRUCTURE AND CONTENT



The Proposal submitted by each Bidder shall comprise of the following:

Envelope I (“Administrative and Technical Proposal”); and


Envelope II (“Price Proposal”).

Bidders must prepare Proposals by filling in all blank spaces and information
requested in the various forms provided in Annex D and Annex E, and submitting
these duly completed documents. No changes will be permitted once Proposals
have been submitted.

A Proposal that is illegible or that contains omissions, erasures, alterations,


additions, items not called for, or irregularities may be rejected, except for those
necessary to correct errors made by the Bidder, in which case such corrections
shall be initialed by the Bidder’s Authorized Representative.

12.1 Proposal – Envelope I Contents:

Table 2 summarizes the Proposal Envelope I contents:

Table 2 : Proposal Envelope I Contents


Part I Confidentiality Letter
Part II Proposal Letter
Part III Power of Attorney
Part IV Proposal Security
Part V Financing Data in Support of the Project
Part VI Technical Data and Submittals

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Central Java BOOT Power Project Request for Proposals (“RFP”)

Part VII Additional Supporting Data


Part VIII Bidder’s Project Development Schedule
Part IX Initialed Final Project Agreements
Part X Project Sponsor’s Staffing Plan

Confidentiality Letter – In Part I of Envelope I, Bidders shall furnish the


Confidentiality Letter in the form contained in Annex D – Exhibit 1. The
Confidentiality Letter shall be signed by the Bidder’s Authorized Representative.
Bidders who submitted a Confidentiality Letter in connection with receipt of the
RFP and access to the secure website described in Section 5 above that meets the
requirements set out herein need not submit a new Confidentiality Letter as part
of its Proposal.

Proposal Letter - In Part II of Envelope I, Bidders shall furnish the Proposal


Letter in the form contained in Annex D - Exhibit 2. The Proposal Letter shall be
signed by the Bidder’s Authorized Representative.

Power of Attorney – In Part III of Envelope I, Bidders shall provide a written


Power of Attorney substantially in the form attached hereto in Annex D Exhibit 3,
duly notarized in accordance with the applicable laws in the jurisdiction of the
Bidder or by the embassy of Indonesia in the country of the Bidder, identifying
the Authorized Representative who shall have the authority to sign the Proposal
and irrevocably bind the Bidder in all matters connected with the Bidding Process
during the Bid Validity Period.

Bidders comprising a consortium must in addition, supply the following


supporting documents with the Power of Attorney:

a. The authorization of the Authorized Representative shall be evidenced by


submitting a Power of Attorney duly executed by each of the members of
the Bidder’s consortium;

b. The Authorized Representative shall be authorized to receive instructions


for and on behalf of any and all members of the consortium, shall submit
the Proposal Security on behalf of the consortium, and shall be authorized
to execute the Project Agreements on behalf of the Project Company;

c. A copy of the notarized consortium agreement shall be submitted with the


Proposal; and

d. A copy of the board resolution of each of the consortium member


companies (or to the extent that a board resolution is not required by a
consortium member’s internal governance procedures, evidence of such
other corporate approval as may be required) mentioning its decision to
participate in the Bidding Process of the Project, to invest its equity share
 22

Central Java BOOT Power Project Request for Proposals (“RFP”)

in the consortium, and to authorize a person to sign the consortium


agreement on behalf of each consortium member, shall be submitted with
the Proposal.

Proposal Security – In Part IV of Envelope I, Bidders shall submit the Proposal


Security.

Any Proposal not accompanied by an acceptable Proposal Security shall be


rejected as being non-responsive. A Proposal Security with a validity period
shorter than the required Bid Validity Period shall also be rejected by PLN as
being non-responsive.

Subject to the provisions of Section 12.113.1, the Proposal Security of


unsuccessful Bidders will be returned to them upon execution of the Project
Agreements by the Project Company and / or the Project Sponsors as
applicable (see Section 18.b.ii)b.b.27),

The Proposal Security of the Winning Bidder will be returned, as promptly as


possible, but no later than five (5) Business Days after PLN has confirmed
that the Bank Guarantee Stage I submitted by the Project Company is in
accordance with the requirements of the PPA.

The Proposal Security shall be forfeited without any notice, demand, or other
legal process if any of these conditions occur:

a. Save as permitted above, a Bidder withdraws its Proposal during the


Bid Validity Period; or
b. A Bidder’s Proposal contains any false statement or material
misrepresentation; or
c. In the case of the Winning Bidder, if it or any Project Sponsor fails to
execute any Project Agreement within 90 days of issuance of the
Letter of Intent, without the express written consent of PLN and
subject to the provisions of Section 027.3.

Financing Data – In Part V of Envelope I, Bidders shall submit the financial


information as requested in Annex D - Exhibit 5, entitled “Financing Data in
Support of the Project”.

Technical Data and Submittals – In Part VI of Envelope I, each Bidder shall


submit their proposed technical design in accordance with the requirements of the
Project Functional Specifications, as provided in Annex C, Exhibit 1, in the form
set out in Annex D - Exhibit 6, entitled “Technical Data and Submittals”.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

Additional Supporting Data – In Part VII of Envelope I, Bidders shall submit


the specific items requested in Annex D - Exhibit 7, entitled “Additional
Supporting Data”.

Bidder’s Project Schedule – In Part VIII of Envelope I, Bidders shall submit a


detailed schedule for the development phase and construction phase of the
Project, in the form set out in Annex D - Exhibit 8, entitled “Bidder’s Project
Development Schedule”, which should be in accordance with the Project
Development Schedule provided in Section 3.1 above.

Initialed Final Project Agreements – In Part IX of Envelope I, Bidders shall


submit a copy of the Final Project Agreements each page of which will be duly
initialed by the Bidder’s Authorized Representative.

Project Sponsor’s Staffing Plan - Part X of Envelope I, Bidders shall submit in


detail the information addressing the onshore and offshore requirements set out in
Annex D – Exhibit 10 entitled “Project Sponsor’s Staffing Plan”.

12.2 Proposal – Envelope II Contents

The Bidder’s Proposal Envelope II shall contain the duly completed Price
Proposal, as set forth in Annex E, entitled “Price Proposal Form”.

The Bidder’s Price Proposal shall be determined in accordance with the


Parameters for the Bidder’s Price Proposal provided in Annex B. Additional
information such as back-up sheets and calculations may be submitted, as
necessary, to explain the Bidder’s Price Proposal.

13. PROPOSAL VALIDITY



13.1 Proposals shall remain valid for the Bid Validity Period. A Bidder who submits a
Proposal with a shorter validity than the stipulated Bid Validity Period shall be
deemed a Non-Responsive Bidder, and such Proposal shall be rejected.

13.2 Prior to the expiration of the original Bid Validity Period, PLN may request one
or more of the Responsive Bidders for a specified extension of the Proposal. The
request and the responses for any extensions to the original validity date must be
made in writing, provided that if such Responsive Bidder does not provide a
written response to PLN’s written request within ten (10) Business Days of
receipt of such request, the Responsive Bidder shall be deemed to have agreed to
the extension request. A Bidder may refuse the request. A Bidder agreeing or
deemed to have agreed to the request will not be permitted to modify its Proposal,
but will be required to extend the validity of its Proposal Security accordingly.
The provisions of Section 12.1 above, regarding release and forfeiture of the
Proposal Security shall continue to apply during the extended period of Proposal
validity.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

14. FORMAT AND SIGNING OF PROPOSAL

14.1 A Bidder shall prepare in English one (1) original, five (5) paper copies and 2
electronic copies of the documents comprising Envelope I of the Proposal. The
original Envelope I is to be clearly marked “Original”, and other completed
copies are to be clearly marked “Copy”. In the event of any discrepancy between
the original and any copy, the original shall prevail.

14.2 A Bidder shall prepare in English only one (1) original of the documents
comprising Envelope II of the Proposal, and no copies at all.

14.3 If the Proposal consists of more than one volume, a Bidder must clearly number
the volumes constituting the “Proposal” and provide an indexed table of contents
for each volume.

14.4 The Proposal shall be typed or written in indelible ink, with each sheet initialed
by the Authorized Representative of the Bidder. The Administrative and
Technical Proposal Letter and the Price Proposal Letter shall each be signed by
the Authorized Representative of the Bidder and each affixed with a duty stamp
of at least six thousand Rupiah (IDR 6,000).

14.5 The Proposal shall contain no alterations, omissions, additions, or erasures, unless
such corrections are in accordance with instructions issued by PLN, or are to
correct errors made by a Bidder. All such corrections shall be initialed by the
Authorized Representative of a Bidder.

14.6 No Bidder may participate in the submission of more than one (1) Proposal.

SUBMISSION OF PROPOSALS
15. SEALING AND MARKING OF PROPOSALS

15.1 Sealing of Proposal

a. Proposals must be submitted to PLN in sealed envelopes (or similarly


enclosed packages) and addressed to PLN at the address specified in the
Bid Data Sheet in Annex A.

b. The envelope containing the Proposal must indicate the name and address
of the Bidder’s Authorized Representative to enable the Proposal to be
returned unopened in case it is declared late or is otherwise unacceptable.

c. The sealed outer envelope must contain two sealed inner envelopes
containing the Administrative and Technical Proposal and the Price
Proposal, respectively.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

d. The outer envelope shall be sealed with the signature of the Authorized
Representative of the Bidder across the seal. If the Proposal is not sealed
and marked as specified below, PLN may reject it as non-conforming and
shall assume no responsibility for its misplacement or premature opening

Markings: The outer envelope containing the Proposal must bear the following
words, in bold letters:

[Insert Name of Addressee and Address as per Bid Data Sheet]


“DO NOT OPEN UNTIL: 1500 HOURS, [Insert Bid Submission Date
as per Bid Data Sheet]”

“CENTRAL JAVA PROJECT”


“2 x [ ] MW [Note: Bidder to indicate specific proposed net size.]
COAL-FIRED THERMAL POWER STATION”
“PROPOSAL SUBMITTED BY: [Insert Name of Bidder]

15.2 Inner Envelopes

a) Inner Package 1: The envelope containing the Administrative and Technical


Proposal shall include two (2) separate sealed envelopes:
(i) One envelope containing the original Administrative and Technical Proposal,
including the original Proposal Security, clearly marked “Original” on the
front and back pages
(ii) The second envelope containing five (5) copies of the Administrative and
Technical Proposal, clearly marked “Copy” on the front and back pages
(iii) Each envelope must contain the same marking as specified in Section 15.1
above, and include the words “Administrative and Technical Proposal” at the
bottom.

b) Inner Package 2: The envelope containing the Price Proposal shall include one (1)
sealed envelope containing the original Price Proposal. The envelope must
contain the following marking:

[Insert Name of Addressee and Address as per Bid Data Sheet]


“DO NOT OPEN”

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Central Java BOOT Power Project Request for Proposals (“RFP”)

PRICE PROPOSAL
“CENTRAL JAVA PROJECT”
“2 x [ ] MW [Note: Bidder to indicate specific proposed net size.]
COAL-FIRED THERMAL POWER STATION”
“PRICE PROPOSAL SUBMITTED BY: [Insert Name of Bidder]

16. DEADLINE FOR SUBMISSION OF PROPOSALS

16.1 All Proposals must be received at PLN’s office on the Bid Submission Date by
14:00 PM Jakarta time. Proposal submission must be made by hand-delivery of
the Proposal to PLN at the address specified in the Bid Data Sheet in Annex A.

16.2 Proposals submitted by post, facsimile, electronic mail, telex, telegram or any
means other than hand-delivery will not be accepted.

16.3 PLN may, at its discretion, extend the deadlines for submission of Proposals by
issuing an addendum in accordance with Section 3.

17. LATE PROPOSALS

Any Proposal received after the specific date and time for the submission of
Proposals will be rejected no matter what the reason for delay and will be returned
unopened.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

PROPOSAL OPENING AND EVALUATION


18. PROPOSAL OPENING

18.1 Each Proposal shall be numbered in the order received and stamped with the time
of receipt. In addition, the receipt of each Proposal will be recorded in a register
(the “Register”), in the order of receipt specifying the date, time and name of the
Bidder submitting the Proposal. Once a Proposal has been submitted, it will be
secured until the time of opening.
18.2 At 15:00 pm on the Bid Submission Date, PLN will begin the opening
proceedings by announcing the names of the Bidders who have submitted a
Proposal and any such other details as PLN may consider appropriate. Bidders’
representatives may attend the opening proceedings but are not required to do so.

18.3 PLN will then proceed to open Envelope I of each Proposal submitted, one at a
time, in the order in which the Proposals were received, in a public session. The
Bidders’ representatives who are present shall sign the Register as evidence of
their attendance to the public session.

18.4 PLN will examine the contents of Envelope I of each Proposal to determine its
contents versus the list included in Section 12.1 above. Thereafter, PLN will retire
to carry out, in private, the substantive review, of Envelope I of each Proposal
submitted.

19. DETERMINATION OF RESPONSIVENESS

19.1 PLN will determine whether each Envelope I is substantially responsive to the
requirements of this RFP based on the substantive review of the contents of each
Envelope I.

19.2 A substantially responsive Envelope I will be an Envelope I whose contents


conform to all the terms, conditions, and specifications of this RFP without
material deviation or reservation or condition. A material deviation or reservation
is one which affects the scope, quality, or performance of the Project, or which
limits it in a way that is inconsistent with these RFP documents, PLN’s rights,
and/or the Bidder’s obligations under the Project Agreements. Bidders submitting
Proposals whose Envelope I are determined to be substantially responsive will be
deemed as being Responsive Bidders.

19.3 A non-responsive Envelope I will be an Envelope I whose contents do not


conform to the terms, conditions, and specifications of this RFP and which
materially deviate or contain reservations or conditions. Such determination is
solely at PLN’s discretion. A Bidder submitting a Proposal whose Envelope I is
determined to be non-responsive will be deemed as a Non-Responsive Bidder.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

Such Proposals will be rejected, and returned to such Non-Responsive Bidder in


accordance with Section 021.

20. CLARIFICATION/VERIFICATION OF PROPOSALS

20.1 During the examination and evaluation of the contents of each Bidder’s Envelope
I, PLN may, at its discretion, request Bidders to submit amendments and/or
clarifications to their Proposals; may invite Bidders to a meeting(s) to provide
clarifications and/or confirmations, and may request Bidders to verify the
submitted documents. PLN shall make all requests for amendments and/or
clarifications in writing.

20.2 Amendments shall be limited to formal matters necessary to ensure compliance of


the Proposal with the requirements contained in this RFP document.

20.3 Clarifications shall be limited to the provision of explanations and/or supporting


documentation for information and plans included as part of the Proposal, but
shall not include the submission of additional elements in the Proposal nor its
modification.

20.4 Responses that are received from the relevant Bidder shall be included as part of
the Bidder’s Proposal under a section of Clarification/Verification with a clear
reference to the section of the original proposal for which the clarification/
verification is provided.

21. RETURN OF NON-RESPONSIVE PROPOSALS

The Proposals of Non-Responsive Bidders as determined in accordance with the


procedures and criteria set out in Section 019.3 shall be returned to the relevant
Bidders at the end of the evaluation of each Bidder’s Envelope I. This will include
the unopened Envelope II and the relevant Proposal Security, but will not include
other documents submitted in Envelope I.

22. EVALUATION OF BIDDER’S ENVELOPE II

22.1 PLN will open, evaluate, and rank Envelope II of only Responsive Bidders in
accordance with Section 019.2.

22.2 PLN will open the Envelope II, in a public session at the time and date specified
in the Bid Data Sheet. The Bidders’ representatives who are present shall sign the
Register as evidence of their attendance.

22.3 PLN will verify that the Price Proposal Form contained in Envelope II has been
presented exactly in the form provided in Annex E, with no extraneous
information, and that the Proposal is binding and not subject to any conditions.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

22.4 In case of any discrepancy between the values presented in Annex E and any
duplicate information provided in the Administrative and Technical Proposal, the
values set forth in the latter will prevail.

22.5 Any Proposal which does not conform to the above requirements in 022.3 shall be
immediately rejected and returned to the relevant Bidder together with that
Bidder’s Proposal Security.

22.6 The Levelized Tariff Price (“LTP”) shall be calculated by PLN in accordance
with the method provided in Annex B in the Bid Evaluation Spreadsheet, and
PLN shall rank the Bidder’s Envelope II proposals from the lowest to the highest
LTP. The Bidder proposing the lowest LTP supported by the required financial
data shall be ranked first. In the event that there is a tie (i.e. equal LTPs) between
two or more bids, the Bidder who proposes the plant with the largest guaranteed
NDC shall be ranked first.

23. CORRECTION OF ARITHMETIC ERRORS

23.1 During the evaluation of the Bidder’s Envelope II, the Price Proposal will be
checked for any arithmetic errors in computation and summation. Where there are
errors in computation, summation and the like, PLN will use the values provided
in the Bidder’s Envelope II (as provided under Annex E: Price Proposal Form),
and will perform the required computations.
23.2 The amounts stated in the Bidder’s Price Proposal will be adjusted in accordance
with the above procedure for the correction of such errors. The Bidder will be
informed in writing of any arithmetical adjustments made should PLN wish to
consider that Proposal further.

24. CONFIDENTIALITY

24.1 From the time the Proposals are submitted on the Bid Submission Date,
information relating to the examination, clarification, evaluation, and comparison
of Proposals and recommendations concerning the award of the Project shall not
be disclosed to any of the Bidders or other persons not officially concerned with
the Bidding Process.

24.2 Any effort by a Bidder to influence PLN in the process of examination,


clarification, evaluation and comparison of Proposals, and in decisions concerning
award of the Project, may result in the rejection of the Bidder’s Proposal and
forfeiture of the Bidder’s Proposal Security.

24.3 PLN will not return either the original or the copies of any Proposal submitted by
a responsive Bidder, other than as specified in Sections 021 and 022.5, and except
for the Bidder’s Proposal Security as provided for in Section 12.1.

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Central Java BOOT Power Project Request for Proposals (“RFP”)

SELECTION
25. ANNOUNCEMENT OF BID RESULTS
Upon the completion of the evaluation of each Bidder’s Envelope II in accordance
with Section 22 and obtaining the necessary PLN approvals, PLN will notify in
writing to all Bidders the results of the bid evaluation. Bidders may submit
Objections in writing to the Procurement Committee within the Objection Period.

Objections received after the expiry of the Objection Period will not be accepted.

The Procurement Committee shall examine the validity of any such Objection
received and issue a response if it deems necessary.

26. LETTER OF INTENT

Upon completion of the Objection process as provided in Section 25 above, PLN


will notify in writing to the Bidder proposing the lowest LTP supported by its
Administrative and Technical Proposal that its Proposal has been accepted by
PLN and that it is the Winning Bidder (the “Letter of Intent”). Immediately
following the Letter of Intent, PLN will announce the name of the Winning
Bidder to all Bidders. The procedure set out in this Section 25 shall be without
prejudice to PLN’s right to cancel the Bidding Process and reject all bids at its
sole discretion.

27. FINALIZATION

27.1 The Winning Bidder shall provide evidence of having submitted, to the relevant
Government agency, all necessary documentation required for the incorporation
of the Project Company, under the Laws of Indonesia within twenty (20) days of
the Letter of Intent. The Winning Bidder shall notify PLN when the Project
Company is incorporated.
27.2 Prior to execution of the PPA, and as a condition thereto, the Project Company
shall provide evidence to PLN that it has established and funded the Development
Cost Escrow Account which shall solely be used to fund Project development
costs incurred by the Project Company up to the Financing Date and shall be
governed by the terms and conditions set out in Annex M of this RFP.
27.3 The Project Agreements will be signed by the Project Company, the Sponsors and
PLN no later than ninety (90) Days of the date of issuance of the Letter of Intent,
provided that the GSL has been executed and internal Government approvals
issued.
27.4 Upon execution of the Project Agreements, PLN will promptly inform the
remaining Bidders that their Proposals have been unsuccessful and within five (5)
Business Days of execution of the Project Agreements, discharge or return each
Bidder’s Proposal Security subject to the provisions of Section 13.2.

 31

Central Java BOOT Power Project Request for Proposals (“RFP”)

28. BIDDER’S RESPONSIBILITIES

Each Bidder shall examine all instructions, terms and conditions, forms,
specifications and other information contained in this RFP and all addenda.
Bidders shall be responsible to inform themselves with respect to all conditions
which might in any way affect the cost or the performance of the Project. Failure
to do so will be at each Bidder’s own risk, and no relief will be given for errors or
omissions by any Bidder. If a Bidder fails to provide all documentation and
information required by this RFP or submits a Proposal which is not substantially
responsive to the terms and conditions of this RFP, such action is at the Bidder’s
sole risk, and PLN may, at its sole discretion, determine such Proposal to be non-
responsive to this RFP and may reject it.

29. CAUSES OF REJECTION OF PROPOSALS

Proposals can be rejected from the evaluation process and dropped from further
consideration, for the following reasons among others:

a. Willful misrepresentations in the submitted Proposal and supporting


documentation.
b. Failure of Bidder to maintain the qualification criteria in Annex I and the
Pre-Qualification Document.
c. The participation by any Bidder (or any member of a Bidder consortium)
with more than one Bidder, or any Lead Member of a Bidder consortium
having a shareholding of greater than twenty percent (20%) in a Lead
Member of another Bidder consortium.
d. Failure to submit the documents as required by this RFP, such as power(s)
of attorney, board resolution(s), and in case of a consortium applicant, a
notarized consortium agreement.
e. Proposal Security and validity not in compliance with the requirements of
this RFP.
f. Bid Validity Period not matching the requirements of this RFP.
g. Any Proposal’s non-conformance with any of the terms, conditions, and
specifications of this RFP with a material deviation or reservation.
29.2 If a Proposal is rejected due to any of the above mentioned reasons, that Proposal
will be automatically deemed to be non-responsive, and the Bidder in question
will be liable for disqualification from any further participation in the Bidding
Process.

29.3 Notwithstanding the above, PLN reserves the right to accept or reject any or all
Proposals at its sole discretion, to waive minor deficiencies or informalities in
Proposals received, or to terminate the Bidding Process and reject all Proposals at
any time prior to the execution of the Project Agreements without thereby

 32

Central Java BOOT Power Project Request for Proposals (“RFP”)

incurring any liability to the affected Bidders or any obligation to inform the
affected Bidders of the grounds for PLN’s action. PLN specifically reserves the
right to accept or reject Proposals if less than three Proposals are received, or to
negotiate with the Bidders who submitted such Proposals.

 33

Central Java IPP Request for Proposals (“RFP”)

ANNEXES

ANNEX A - BID DATA SHEET


ANNEX B - PARAMETERS FOR BIDDER’S PRICE PROPOSAL
ANNEX C - PROJECT FUNCTIONAL SPECIFICATIONS
ANNEX D - BIDDER’S PROPOSAL AND SUPPORTING DATA
ANNEX D - EXHIBIT 1: CONFIDENTIALITY LETTER
ANNEX D - EXHIBIT 2: PROPOSAL LETTER
ANNEX D - EXHIBIT 3: POWER OF ATTORNEY
ANNEX D - EXHIBIT 4: PROPOSAL SECURITY FORM
ANNEX D - EXHIBIT 5: FINANCING DATA IN SUPPORT OF PROJECT
ANNEX D - EXHIBIT 6: TECHNICAL DATA AND SUBMITTALS
ANNEX D - EXHIBIT 7: ADDITIONAL SUPPORTING DATA
ANNEX D - EXHIBIT 8: BIDDER’S PROJECT DEVELOPMENT SCHEDULE
ANNEX D – EXHIBIT 9: INITIALLED FINAL PROJECT AGREEMENTS
ANNEX D – EXHIBIT 10: PROJECT SPONSOR’S STAFFING PLAN
ANNEX E – PRICE PROPOSAL FORM
ANNEX F – INTENTIONALLY BLANK
ANNEX G – DRAFT GOVERNMENT SUPPORT LETTER
ANNEX H – DRAFT POWER PURCHASE AGREEMENT (“PPA”)
ANNEX I – BIDDING CONSORTIA
ANNEX J –BIDDING CONSORTIUM SUBMISSION
ANNEX K – AMDAL REQUIREMENTS
ANNEX L – FORMAT FOR SUBMISSION OF WRITTEN COMMENTS
ANNEX M – KEY TERMS OF DEVELOPMENT COST ESCROW ACCOUNT
AGREEMENT
Central Java IPP Request for Proposals (“RFP”)

ANNEX A: BID DATA SHEET

The following Bid-specific data for the services to be procured shall supplement the provisions in
the Instructions to Bidders.

Project Name Central Java BOOT Power Project


PLN Procurement Committee
Chairman of Central Java CFPP IPP
Procurement Committee
Bid Submission Date and August 25, 2010
Location Jakarta

Bid Submission Location PT PLN (Persero)


Main Building 13rd floor
Jalan Trunojoyo Blok M I/135Kebayoran Baru
Jakarta 12160
Indonesia

Location, Time and Date for PT PLN (Persero)


Envelope I Opening Main Building 13rd floor
Jalan Trunojoyo Blok M I/135Kebayoran Baru
Jakarta 12160
Indonesia Time: 14.00

Bid Submission Date

Location, Time and Date for PT PLN (Persero)


Envelope II Opening Main Building 13rd floor
Jalan Trunojoyo Blok M I/135Kebayoran Baru
Jakarta 12160
Indonesia Time: 15.00

Date will be confirmed later.

Language of Proposal English


Amount of Proposal Security USD 30,000,000 or IDR 300 billion

Proposal Validity Period One hundred eighty (180) days from Bid Submission Date, subject
to extension in accordance with Section 12.2 of the RFP
Original and Number of Copies Envelope I: One (1) original and five (5) copies; 2 CDs
of Proposal Envelope II: One (1) original

Annex A
Central Java IPP Request for Proposals (“RFP”)

ANNEX B: PARAMETERS FOR BIDDER’S PRICE PROPOSAL


(ENVELOPE II)
Capitalized terms used herein shall have the meaning ascribed to them in the PPA.

Computation of Levelized Tariff Price


Contract Capacity

Bidder must provide the Contract Capacity of the Plant in kW (identical for all Contract
Years) in its Price Proposal (Annex E of the RFP) as stated in Annex D – Part V1 of
Envelope I. In case of any discrepancy, the value stated in Annex D – Part VI shall
prevail.

Component A: Capital Cost Recovery Charge Rate (“CCR”)

Bidder must provide CCR, to four (4) decimal places, for each Contract Year in its Price
Proposal in USD/kW/year. The values of CCR stated in the Price Proposal shall be
inserted in Appendix G of the PPA after converting to IDR/kW/year at the exchange rate
of Rd should the Bidder execute the Project Agreements.

CCR for Contract Years one (1) to six (6) must be identical; CCR for Contract Years
seven (7) to twelve (12) must be identical, and not less than sixty percent (60%) of the
CCR for Contract Years 1 to 6; and CCR for Contract Years thirteen (13) to twenty-five
(25) must be identical, and not less than sixty percent (60%) of the CCR for Contract
Years 7 to 12.

CCR is intended to cover the cost of debt and equity and all taxes and duties under the
prevailing laws on the Bid Submission Date.

Component B: Fixed O&M Charge Rate (“FOMR”)

Bidder must provide a single value for FOMR, to four (4) decimal places, applicable for
all Contract Years in its Price Proposal in USD/kW/year. The value of FOMR stated in
the Price Proposal shall be inserted in Appendix G of the PPA after converting to
IDR/kW/year at the exchange rate of Rd should the Bidder execute the Project
Agreements.

For the purposes of bid evaluation, the FOMR applicable for each Contract Year shall be
the FOMR provided in the Bidder’s Price Proposal, escalated by 2.5% per annum from
the Bid Submission Date.

Component C: Energy Charge Rate (“ECR”)

ECR for computation of the Levelized Tariff Price shall be based on (a) coal price of
USD 60/tonne (b) an assumed coal calorific value of 4,500 kcal/kg and (c ) Specific Heat

Annex B, page 1
Central Java IPP Request for Proposals (“RFP”)

Rate at Contract Capacity (“SHRcc”) as provided by Bidder in Annex D, Part VI of


Envelope 1 of the RFP (by a simple average based on nine (9) different loads (100% ,
95%, 90%, 85%, 80%, 75%, 70%, 65% and 60%).

The values of the specific heat rates provided in Annex D, Part VI shall be inserted in
Appendix G of the PPA should the Bidder execute the Project Agreements.

Component D: Variable O&M Charge Rate (“VOMR”)

Bidder must provide a single value for VOMR, to four (4) decimal places, applicable for
all Contract Years in its Price Proposal in US cents/kWh. The value of VOMR stated in
the Price Proposal shall be inserted in Appendix G of the PPA after converting to
IDR/kWh at the exchange rate of Rd should the Bidder execute the Project Agreements.

For the purposes of bid evaluation, the VOMR applicable for each Contract Year shall be
the VOMR provided in the Bidder’s Price Proposal, escalated by 2.5% per annum from
the Bid Submission Date.

Component E: Capital Cost Recovery Charge Rate for the Transmission Line
(“CCRT”)

Bidder must provide CCRT, to four (4) decimal places, for each Contract Year in its
Price Proposal in USD/kW/year. The values of CCRT stated in its Price Proposal shall
be inserted in Appendix G of the PPA after converting to IDR/kW/year at the exchange
rate of Rd should the Bidder execute the Project Agreements.

CCRT for Contract Years one (1) to six (6) must be identical; CCRT for Contract Years
seven (7) to twelve (12) must be identical, and not less than sixty percent (60%) of the
CCRT for Contract Years 1 to 6; and CCRT for Contract Years thirteen (13) to twenty-
five (25) must be identical, and not less than sixty percent (60%) of the CCRT for
Contract Years 7 to 12.

Availability Factor

For the purposes of computing the Levelized Tariff Price, an annual Availability Factor
of 80% shall be assumed.

Computation of Levelized Tariff Price


The values for CCR, FOMR and CCRT will be converted to US cents/kWh for each
Contract Year as provided above, based on the Contract Capacity provided by Bidder and
an Annual Availability Factor of 80%.

The sum of the CCR, FOMR and CCRT will be added to the VOMR and ECR as
described above, resulting in a tariff in US cents/kWh for each Contract Year.

Annex B, page 2
Central Java IPP Request for Proposals (“RFP”)

The tariffs for each Contract Year will be discounted back to the Project Commercial
Operation Date using a discount rate of 10%, resulting in the computation of the
Levelized Tariff Price.

Attachment A below provides an example of the methodology for calculating the


Levelized Tariff Price using hypothetical numbers.

Price Cap
PLN reserves the right to reject a Bidder’s Envelope II if the resulting Levelized Tariff
Price is higher than [●] UScents / kWh1.


1
This figure will be provided by PLN to Bidders at least one month prior to the Bid Submission Date.

Annex B, page 3
Central Java IPP Request for Proposals (“RFP”)

ANNEX B: ATTACHMENT 1

ATTACHMENT 1: SAMPLE CALCULATION OF LEVELIZED TARIFF

All values shown are hypothetical and for illustrative purposes only

: hypothetical values submitted by Bidders in Proposal

Input Data

Contract Capacity
1800
(converted to MW) =

Component A: Capital Cost Recovery Charge Rate (CCR)


Year CCR (USD/kW/year)
Year 1-6: 200.0000
Year 7-12: 150.0000
Year 13-25: 100.0000

Component B: Fixed O&M Charge (FOMR)


Year FOMR (USD/kW/year)
Year 1 25.0000
Note: 50% of FOMR escalated by 5% per annum the other 50% by 2.5%

Component C: Energy Charge Rate (ECR)


SHR: See reference table submitted by bidders (kcal/kWh)
ECR: See ECR for each load (US cent/kWh)
Note: SHR is the heat rate at specific load
Assumption:
Coal price: 60 USD/Tonne
Coal calorific value: 4,500 kcal/kg

Component D: Variable O&M Charge (VOMR)


Year VOMR (US cents/kWh)
Year 1 0.2500
Note: 50% of VOMR escalated by 5% per annum the other 50% by 2.5%

Annex B, page 4
Central Java IPP Request for Proposals (“RFP”)

Component E: CCR for Transmission Line (CCRT)


Year CCRT (USD/kW/year)
Year 1-6: 15.0000
Year 7-12: 12.0000
Year 13-25: 10.0000

Contract Capacity (CC): 1,800 MW


Availability Factor (AF): 80%
Discount Rate (r): 10%
PPA Period (n): 25 years

Reference Table - Heat Rates at Different Loads (submitted by Bidders)


PLANT PARTIAL LOAD HEAT PLANT PARTIAL LOAD HEAT
RATES RATES
Plant % of Load Heat Plant % of Heat
Load Rate(HHV) Load Load Rate(HHV)
(MW) (kCal/kWh) (MW) (kCal/kWh)
2,000.0 100 2,455 1,400.0 70 2532
1,980.0 99 2,456 1,380.0 69 2536
1,960.0 98 2,457 1,360.0 68 2540
1,940.0 97 2,458 1,340.0 67 2545
1,920.0 96 2,459 1,320.0 66 2550
1,900.0 95 2,460 1,300.0 65 2555
1,880.0 94 2,462 1,280.0 64 2560
1,860.0 93 2,464 1,260.0 63 2565
1,840.0 92 2,466 1,240.0 62 2570
1,820.0 91 2,468 1,220.0 61 2575
1,800.0 90 2,470 1,200.0 60 2580
1,780.0 89 2,475 1,180.0 59 2585
1,760.0 88 2,478 1,160.0 58 2590
1,740.0 87 2,480 1,140.0 57 2595
1,720.0 86 2,482 1,120.0 56 2600
1,700.0 85 2,485 1,100.0 55 2605
1,680.0 84 2,487 1,080.0 54 2610
1,660.0 83 2,490 1,060.0 53 2615
1,640.0 82 2,493 1,040.0 52 2620
1,620.0 81 2,496 1,020.0 51 2625
1,600.0 80 2,498 1,000.0 50 2630

Annex B, page 5
Central Java IPP Request for Proposals (“RFP”)

1,580.0 79 2,500 980.0 49 2635


1,560.0 78 2,503 960.0 48 2640
1,540.0 77 2,506 940.0 47 2645
1,520.0 76 2,509 920.0 46 2650
1,500.0 75 2,512 900.0 45 2655
1,480.0 74 2,515 880.0 44 2660
1,460.0 73 2,520 860.0 43 2670
1,440.0 72 2,524 840.0 42 2680
1,420.0 71 2,528 820.0 41 2690
800.0 40 2700

Heat rate at 9 points of reference: ECR


100% load 2,455 kcal/kWh 3.2733
95% load 2,460 kcal/kWh 3.2800
90% load 2,470 kcal/kWh 3.2933
85% load 2,485 kcal/kWh 3.3133
80% load 2,498 kcal/kWh 3.3307
75% load 2,512 kcal/kWh 3.3493
70% load 2,532 kcal/kWh 3.3760
65% load 2,555 kcal/kWh 3.4067
60% load 2,580 kcal/kWh 3.4400
Average 3.3403

Annex B, page 6
Central Java IPP Request for Proposals (“RFP”)

Sample Levelized Tariff Calculation at


100% Load
Tariff (US$/kW/Year) Tariff (cent US$/kWh)
Energy Production
(GWh) Escalation B: D:
Year A:CCR C: ECR E: CCRT Total
Factor A: CCR B: FOMR E: CCRT FOMR VOMR
CC x AF x 8760 hr
1 12,614 1.0000 200.0000 25.0000 15.0000 2.2831 0.2854 3.3403 0.2500 0.1712 6.3300
2 12,614 1.0375 200.0000 25.9375 15.0000 2.2831 0.2961 3.3403 0.2594 0.1712 6.3501
3 12,614 1.0764 200.0000 26.9102 15.0000 2.2831 0.3072 3.3403 0.2691 0.1712 6.3709
4 12,614 1.1168 200.0000 27.9193 15.0000 2.2831 0.3187 3.3403 0.2792 0.1712 6.3925
5 12,614 1.1587 200.0000 28.9663 15.0000 2.2831 0.3307 3.3403 0.2897 0.1712 6.4150
6 12,614 1.2021 200.0000 30.0525 15.0000 2.2831 0.3431 3.3403 0.3005 0.1712 6.4382
7 12,614 1.2472 150.0000 31.1795 12.0000 1.7123 0.3559 3.3403 0.3118 0.1370 5.8573
8 12,614 1.2939 150.0000 32.3487 12.0000 1.7123 0.3693 3.3403 0.3235 0.1370 5.8824
9 12,614 1.3425 150.0000 33.5618 12.0000 1.7123 0.3831 3.3403 0.3356 0.1370 5.9084
10 12,614 1.3928 150.0000 34.8203 12.0000 1.7123 0.3975 3.3403 0.3482 0.1370 5.9353
11 12,614 1.4450 150.0000 36.1261 12.0000 1.7123 0.4124 3.3403 0.3613 0.1370 5.9633
12 12,614 1.4992 150.0000 37.4808 12.0000 1.7123 0.4279 3.3403 0.3748 0.1370 5.9923
13 12,614 1.5555 100.0000 38.8864 10.0000 1.1416 0.4439 3.3403 0.3889 0.1142 5.4288
14 12,614 1.6138 100.0000 40.3446 10.0000 1.1416 0.4606 3.3403 0.4034 0.1142 5.4600
15 12,614 1.6743 100.0000 41.8575 10.0000 1.1416 0.4778 3.3403 0.4186 0.1142 5.4924
16 12,614 1.7371 100.0000 43.4272 10.0000 1.1416 0.4957 3.3403 0.4343 0.1142 5.5260
17 12,614 1.8022 100.0000 45.0557 10.0000 1.1416 0.5143 3.3403 0.4506 0.1142 5.5609
18 12,614 1.8698 100.0000 46.7453 10.0000 1.1416 0.5336 3.3403 0.4675 0.1142 5.5971
19 12,614 1.9399 100.0000 48.4982 10.0000 1.1416 0.5536 3.3403 0.4850 0.1142 5.6346
20 12,614 2.0127 100.0000 50.3169 10.0000 1.1416 0.5744 3.3403 0.5032 0.1142 5.6736
21 12,614 2.0882 100.0000 52.2038 10.0000 1.1416 0.5959 3.3403 0.5220 0.1142 5.7140

Annex B, page 7
Central Java IPP Request for Proposals (“RFP”)

22 12,614 2.1665 100.0000 54.1614 10.0000 1.1416 0.6183 3.3403 0.5416 0.1142 5.7559
23 12,614 2.2477 100.0000 56.1925 10.0000 1.1416 0.6415 3.3403 0.5619 0.1142 5.7994
24 12,614 2.3320 100.0000 58.2997 10.0000 1.1416 0.6655 3.3403 0.5830 0.1142 5.8445
25 12,614 2.4194 100.0000 60.4860 10.0000 1.1416 0.6905 3.3403 0.6049 0.1142 5.8913
NPV of Total Tariff 54.9794 US cents/kWh
Levelized Tariff 6.0570 US cents/kWh
Assumptions:
Availability Factor: 80%
Discount Rate: 10%
PPA Period 25 years
Escalation factor for B and D components: 50% is escalated by 5% p.a.,and the other 50% by 2.5% p.a.,

Annex B, page 8
Central Java IPP Request for Proposals (“RFP”)

ANNEX C: PROJECT FUNCTIONAL SPECIFICATIONS

Annex C
Annex C
Project Functional Specifications
TABLE OF CONTENTS

1. INTRODUCTION ...............................................................................................................1

2. PROJECT INFORMATION AND SCOPE.........................................................................1

2.1 PROJECT DESCRIPTION ......................................................................................1


2.2 CONTRACT STRATEGY ......................................................................................2
2.3 PROJECT SCOPE ...................................................................................................6
2.4 TERMINAL POINTS AND INTERFACES ...........................................................9

3. DESIGN PRINCIPLES .............................................................................................................11

3.1 DESIGN REQUIREMENTS .................................................................................11


3.2 PERFORMANCE REQUIREMENTS ..................................................................12
3.3 GENERAL REQUIREMENTS .............................................................................15
3.4 STANDARDS AND STATUTORY REQUIREMENTS .....................................16

4. PARTICULAR TECHNICAL REQUIREMENTS ...................................................................18

4.1 INTRODUCTION .................................................................................................18


4.2 MECHANICAL PLANT AND SYSTEMS REQUIREMENTS ..........................18
4.2 ELECTRICAL PLANT AND SYSTEMS REQUIREMENTS .............................20
4.4 CIVIL REQUIREMENTS .....................................................................................25
4.5 ENVIRONMENTAL REQUIREMENTS .............................................................27

5. QUALITY ASSURANCE, INSPECTION, COMMISSIONING AND TESTING ..................28

5.1 GENERAL .............................................................................................................28

6. SITE DESCRIPTION ...............................................................................................................29

6.1 SITE LOCATION AND REQUIREMENTS ........................................................29

7. PROJECT ADMINISTRATION ...............................................................................................30

7.1 GENERAL .............................................................................................................30

Annex C – page i
FIGURE
NO. DESCRIPTION

Figure 4-3 Configuration of GITET Mandirancan with the Introduction of PLTU Central
Java

Figure 6-1 GRID DEVELOPMENT OF CENTRAL JAVA AND YOGJAKARTA


REGION 2010-2015

Other: PLN design standards for 500kV transmission systems (to be provided later)

PLN design standards for substations (to be provided later)

Annex C – page ii
1. INTRODUCTION

These functional specifications (“Functional Specifications”) describe the minimum technical


requirements for the development of the Project. The Plant will be located on a site in the
Pemalang area. The Plant will be cooled by once through seawater from the Java Sea.

A jetty and unloading facilities shall be constructed by the SELLER to accommodate the vessels
that will deliver coal for use at the Plant.

PLN will purchase all energy from the Plant and transmit the energy to the load centers through
the existing 500 kV transmission system. The evacuation of electric power generated by the
Plant will be at 500 kV through a new 500 kV switchyard adjacent to the Plant to be built, owned
and operated by the SELLER (“Interconnection Facilities”). A transmission line spur consisting
of double circuit 500 kV transmission lines and a new substation (the “Special Facilities”)
connecting the new switchyard to the existing 500 kV transmission system and connecting the
existing 500 kV transmission system to the new switchyard will be built by the SELLER and
turned over to PLN upon its completion.

The Plant will use domestic Indonesian coal furnished by the SELLER and which complies with
the minimum technical specifications listed in Section 2.4.1 below. The SELLER will be
responsible to source, procure, transport, unload and store the coal for the Plant.

The SELLER will be responsible for developing all geological, geotechnical and environmental
information needed, including an AMDAL and other necessary Site investigations. The Plant
will be required to comply with environmental standards and safeguards of the Laws of
Indonesia and other environmental standards as may be required by the project lenders. The costs
of any environmental impact assessment, Site investigations and investigations to ensure that any
Indonesian or lenders’ requirements are satisfied will be borne entirely by the SELLER.

A description of the AMDAL process is provided in Annex K of the RFP.

2. PROJECT INFORMATION AND SCOPE


2.1 PROJECT DESCRIPTION
These Functional Specifications describe the minimum functional requirements for a two-Unit
coal-fired Plant using supercritical or ultra-supercritical technology with a nominal Plant
capacity of 2,000 MW (gross) that the SELLER shall develop, build and operate in accordance
with the PPA.

The exact configuration of the Plant shall be determined by the SELLER, subject to the
limitations specified in this Annex C. The SELLER will be responsible for selecting the location
and obtaining the land for the Site and the Special Facilities Site.

Annex C – page 1
The SELLER will be responsible for constructing the seawater cooling intake piping system and
cooling water discharge structures. The SELLER will also be responsible for constructing a
jetty extending from the site a sufficient distance into the Java Sea to accommodate coal
shipment vessels and which includes coal unloading and conveyance facilities.

During site development and construction of the Central Java units, the SELLER will install a
cooling water intake structure and a discharge structure to the Java Sea that will accommodate
the required flows to and from the power plant. The SELLER will also construct the required
pumping structure for the Plant.

The Plant equipment and systems shall include all the systems, facilities, equipment, materials,
and works required to ensure safe, reliable, and economic operation of the Plant such as coal
handling systems, water treatment and storage facilities, and all the other necessary auxiliary and
ancillary equipment required for the safe, reliable and efficient operation of the Plant. The Plant
shall be constructed of new equipment and materials only.

2.1.1 Proven Design and Technology Requirements


The Plant is required to be highly reliable and efficient. It is essential that the key components of
the Plant be of proven design and technology, which means that power plants of similar design
must have been engaged in reliable commercial operation for at least three (3) years at three (3)
different projects situated on different sites. A project will be considered to have been in
“reliable” commercial operation for the purposes of this requirement if its average forced outage
factor has not been above five percent (5%) and its average availability factor has not been below
eighty percent (80%) for the duration of the commercial operation period.

2.2 CONTRACT STRATEGY


The SELLER shall be fully responsible for the financing of the Project, and the design, supply,
delivery, erection, commissioning, operation, and maintenance of the complete Plant for the term
of the PPA. Particulars of the Project performance requirements are given elsewhere in these
Functional Specifications. The SELLER shall coordinate plans and activities with PLN during
the design, construction, commissioning, and operation of the Project.

These responsibilities will be contractually embodied principally in the PPA between the
SELLER and PLN as the power purchaser and will include not only the requirements regarding
the Plant’s Net Dependable Capacity and availability, but also stipulations of how the Plant will
interface with PLN’s Grid System in terms of start up times, performance ramp rates, ability to
generate with falling system frequency, etc. in accordance with the PPA where applicable.

2.2.1 Site
The SELLER shall be fully responsible for the Site selection and acquisition, obtaining of any
permits for its use and the design, supply, delivery, erection, commissioning, operation, and
maintenance of the complete Plant on the Site for the term of the PPA. Neither PLN nor the
Government shall have any obligation to assist with Site selection or acquisition, or obtaining
permits.

Annex C – page 2
2.2.2 Special Facilities Site
The SELLER shall be fully responsible for selection and acquisition of the Special Facilities
Site, obtaining the necessary land and any necessary permits for its use and the design, supply,
delivery, erection, commissioning and turning over to PLN of the Special Facilities including a
substation and tie-in interconnections to the existing 500 kV transmission system, in accordance
with the Project Milestone Schedule. The Special Facilities shall be designed, procured,
constructed, tested and commissioned on the Special Facilities Site in accordance with PLN
design standards and specifications for high voltage transmission systems.
Neither PLN nor the Government shall have any obligation to assist with Special Facilities Site
selection or acquisition, or obtaining permits.

2.2.3 Tie-in to PLN’s Grid System


PLN will provide locations for the SELLER to use as connection points for connecting the
transmission lines from the substation included in the Special Facilities by shortspan to the
existing 500kV transmission system. The exact location of the connection points will depend on
the Special Facilities Site selected by the SELLER.

2.2.4 EPC Contract


The SELLER shall enter into an EPC Contract for the design, engineering, procurement,
construction, testing and commissioning of the Plant with an EPC Contractor meeting the
experience requirements of Section 2.2.5. The Bidder must provide with its Proposal a
memorandum of agreement attaching a detailed term sheet initialed by the EPC Contractor and
Bidder indicating that if the Bidder is selected as the Winning Bidder, the EPC Contractor
intends to enter into an EPC Contract with the SELLER to provide EPC services on the terms set
out in the term sheet and which terms include the following:

 Commitment to meet the technical requirements detailed in this RFP and in the
PPA

 Performance of the EPC Contract on a firm, fixed price, turnkey basis with
completion of the EPC Contract on a date certain consistent with the Project
Milestone Schedule

 Equipment and Plant warranties/guarantees


 Setting in place by the EPC Contractor, or an Affiliate, of a performance bond or
other acceptable performance guarantee, payable when called by the SELLER
 Reasonable and customary Liquidated Damages for delays in performance and for
failure to meet required capacity and heat rate

Each Bidder shall provide with its proposal copies of the most recent Annual Report of the
proposed EPC Contractor, or its parent organization.

2.2.5 EPC Contractor Qualifications and Requirements


Each Bidder shall nominate an EPC contractor to design, engineer and construct the Project (the
“EPC Contractor”). The Bidder’s EPC Contractor shall have appropriate experience
constructing coal-fired power plants so as to satisfy the EPC experience criteria below. In

Annex C – page 3
addition, the technology to be used by the EPC Contractor for the Project must meet the Proven
Design and Technology Requirements of Section 2.1.1 The EPC Contractor nominated by the
Bidder must demonstrate the following minimum qualifications and meet the following
requirements:

 The EPC Contractor (directly or through an Affiliate) shall have successfully constructed
at least two (2) coal-fired power generation projects, with each project having a capacity
of at least 800 MW (gross) and each using pulverized coal technology with at least one of
the projects using supercritical technology. If a Bidder proposes to utilize ultra-
supercritical technology, then at least one of the projects cited to meet the experience
criteria of this Section 2.2.5 shall have utilized ultra-supercritical technology.
Additionally, each project shall be connected to the national power grid(s) in the
country(ies) in which such projects are located.

 The EPC Contractor must have successfully constructed at least two (2) thermal power
projects in a country or countries other than the country where the EPC Contractor is
domiciled, of which at least one (1) thermal power project shall have been an IPP.

No power generation project completed by an EPC Contractor may be submitted to satisfy the
above EPC Experience Criteria unless (1) it has received all relevant permits, including
environmental clearances to achieve commercial operation and (2) it has been completed and in
commercial operation for at least three (3) years. In addition, the EPC Contractor nominated for
this project, or the lead member of a proposed EPC Contractor consortium if a consortium is
proposed to be utilized, shall have been the sole EPC Contract member, or shall have been the
lead member of any EPC consortium, which performed the work on all completed power
projects which are submitted to meet the experience requirements of this Section 2.2.5.

The EPC Contractor shall propose using boiler and turbine suppliers each of whom have
designed and manufactured similar equipment which has been in use in at least two (2)
supercritical units of at least 1,000 MW (gross) size that have been in successful operation for at
least one (1) year each and which equipment is based on designs which meet the Proven
Technology requirements set out in Section 2.1.1. If the Bidder proposes to use ultra-
supercritical technology, then the EPC Contractor shall propose using boiler and turbine
suppliers each of whom have designed and manufactured similar equipment which has been in
use in at least two (2) ultra-supercritical units of at least 1,000 MW (gross) size each that have
been in successful operation for at least one (1) year each and which equipment is based on
designs which meet the Proven Technology requirements set out in Section 2.1.1.

Each Bidder shall provide the information detailed in Annex D: Exhibit 6 as evidence of the EPC
Contractor’s required experience and conformance with these requirements.

2.2.6 O&M Operator Qualifications and Requirements


Each bidder shall nominate an O&M Contractor to operate and maintain the Project (the “O&M
Contractor”). The Bidder’s O&M Contractor shall have appropriate experience operating coal-
fired projects so as to satisfy the O&M Experience Criteria below.

Annex C – page 4
Each Bidder must provide the name of their O&M Contractor and details of how such O&M
Contractor’s experience meets the O&M Experience Criteria below. Each Bidder shall provide
with its proposal copies of the most recent Annual Reports of the proposed O&M Contractor, or
its parent organization In addition, the Bidder must provide a copy of a signed memorandum of
agreement attaching a detailed term sheet initialed by each of the O&M Contractor and the
Bidder, indicating that if the Bidder is selected as the Winning Bidder, the O&M Contractor
intends to enter into an O&M Contract with the Project Company to be set up by such Bidder to
be the counterparty to the PPA, to provide O&M services on the terms set out in the term sheet.

Use of an Owner-Operator model is acceptable, provided that a Sponsor, or Affiliate of a


Sponsor meets the experience and expertise above to provide these services. The requirement is
that the operations be undertaken through an Agreement with a Sponsor or its Affiliate and the
Project Company to provide services which will allow the Project Company to meet the
performance objectives of the PPA.

The O&M Contractor (either directly or through an Affiliate) shall have “successfully” operated
and maintained at least two (2) coal-fired power generation projects, each project with a unit
having a capacity of at least 800 MW (gross) and each using pulverized coal technology with at
least one of the projects using supercritical technology. If a Bidder proposes to utilize ultra-
supercritical technology, then at least one of the projects cited to meet the experience criteria of
this Section 2.2.6 shall have utilized ultra-supercritical technology.

“Successfully” operated and maintained means all the following:

 the projects should have been completed and in commercial operation for at least
three (3) years;

 the O&M contracts (if applicable) for each of the cited projects have not been
terminated or suspended as a result of a default by the O&M Contractor;

 no penalties or liquidated damages have been paid under any power purchase
agreement for any of the cited projects where such penalties or liquidated
damages exceed fifteen percent (15%) of the total annual capacity payments
payable in respect of the project in question in any given year;

 the average forced outage factor shall not have been above five percent (5%) and
the average availability factor shall not have been below eighty percent (80%) for
the duration of the project/power purchase agreement or O&M contracts (if
applicable), whichever is longer, for each of the cited projects; and

 there have been no material infringements of applicable environmental and/or


occupational health and safety laws or regulations at any of the cited projects.

In respect of each power project cited to meet the O&M Experience Criteria, each
Bidder must provide details demonstrating how such criteria are met as well as details
of the year commissioned, name of owner and representative (phone and facsimile

Annex C – page 5
number), data on availability, Gigawatt hours (GWh) produced for at least one year,
and the Forced Outage Rate (as defined in appendix G of the PPA).
Each Bidder shall provide the information detailed in Annex D-Exhibit 6 as evidence of the
O&M Contractor’s required plant operating experience and conformance with these
requirements.

2.2.7 Local Content


Local labor, materials, and manufacturing should be used to the maximum feasible extent and in
compliance with Ministry of Industry Regulation No. 4/2009, Guideline for Local Content Use
in Electricity Infrastructure Development.

2.2.8 Transfer of Plant


The Plant will be overhauled, repaired and tested upon the expiry of the PPA and transferred to
PLN, or its designee, in good order with the appropriate tools, parts, software and records as
described in Section 3.3.2, below.

2.2.9 Operational Performance


The Plant will interface with PLN’s Grid System in terms of start up times, performance ramp
rates, ability to generate with fluctuating system frequency and voltage levels, providing
protective relaying and metering in accordance with the PPA all in full compliance with the
Java-Bali Grid Code

2.3 PROJECT SCOPE


The Plant shall comprise a complete coal-fired Plant with a capacity of 2,000 MW (gross)
comprised of two or more equally sized units and all support facilities required for commercial
operation. The maximum size of a unit is limited to 1000 MW gross rating for stability
considerations.

2.3.1 Scope of Work


The scope of work to be provided by the SELLER for engineering, procurement, and
construction of the Plant shall include, but not be limited to, the following:

 the overall management and control of the works


 control and supervision of the Contractors and sub-contractors
 provision of all labor, supervision, management, materials, equipment, on-
Site storage and material handling and control of the complete works
 Site investigations and surveys, as required
 preparation and processing of an Environmental Impact Assessment
 obtaining all relevant Consents and Permits
 engineering and design
 detailed engineering
 procurement

Annex C – page 6
 expediting
 inspection
 manufacture and fabrication
 painting
 packing, shipping, delivery to Site and insurance
 Site safety and security
 construction and erection
 protection and preservation
 testing and pre-commissioning
 commissioning and testing
 Performance Tests and Reliability Tests
 operation and maintenance of the Plant during the term of the PPA
 other services as specified or necessary to complete the Project
 temporary construction works and facilities, including camp facilities if
required
 provision of documentation
 operators’ living quarters and facilities, if required
 Transfer of the Plant at end of Term of the PPA

2.3.2 Scope of Supply


The Plant will comprise, but not necessarily be limited to the following:

 Two pulverized coal fired boilers of equal size using supercritical or ultra-
supercritical (USC) technology

 Two steam turbine generators, with a maximum size of 1000 MW


gross rating
 Electrostatic precipitators or bag houses
 Flue gas desulfurization (FGD) systems (limestone based)
 Selective catalytic reduction (SCR), if required to meet NOx emission
requirements
 Stack(s) tall enough to meet the ambient air quality requirements
 Continuous Air Emissions Monitoring Systems
 Surface condensers

Annex C – page 7
 Condensate systems
 Feed water systems
 Steam systems
 Once through sea water condenser cooling system including
– Sea water intake piping and structures
– Sea water pump house
– Cooling water piping
– Discharge to the sea
 Fuel unloading jetty from the site to seawaters with sufficient depth
to accommodate vessels delivering coal
 Coal stacker/reclaimer system
 Coal ship unloading system
 Coal conveyor transport systems, crushers and pulverizers
 Coal storage for at least 60 days
 Start-up and supplemental fuel unloading, handling, and storage
system
 Limestone storage and handling system
 FGD by-product handling and disposition
 Raw water system including necessary storage tanks and pumps
 Water Desalination Plant
 Water treatment systems including pre-treatment and de-
mineralization
 Wastewater treatment systems
 Service water and auxiliary cooling water, and potable water systems
 Fire Detection and Protection System
 Ash handling system
 Service and instrument air systems
 HVAC systems
 Generator step-up transformers to connect to the 500 kV switchyard
 Auxiliary power and start-up transformers, as required
 500 kV switchyard ( “Electrical Interconnection Facilities”)

Annex C – page 8
 Special Facilities including 500 kV transmission lines, substation and
related equipment and components between the Electrical
Interconnection Facilities and the existing 500 kV transmission
system and including making the interconnections to the existing
lines on a route to be determined by the SELLER.
 Distributed Control System and necessary instrumentation and
control equipment
 Automatic Generation Control (AGC)
 Emergency Diesel generators to provide for safe plant shutdown
 Electrical switchgear of various voltages
 Direct current switchgear, batteries, chargers and inverters.

 Site fencing and security

 Earthing and lightning protection systems

 Control and Administration buildings

 Mosque

 Workshops and laboratories

 Spare parts inventory

 SCADA & communication systems

The SELLER shall include any additional plant and equipment necessary to meet
the Plant design, performance, operation, environmental criteria and Prudent
Operating Practices but which are not specifically identified above, and to form a
complete power project which is fit in all respects for its intended purpose and
use.

The SELLER will be required to meet the Laws of Indonesia.

2.4 TERMINAL POINTS AND INTERFACES


The SELLER shall be responsible for making the connections required at all terminal (interface)
points as specified.

2.4.1 Fuel Supplies Coal


The fuel is domestic Indonesian coal, sourced and supplied by the SELLER. Coal specified by
the SELLER shall require the coal to: (1) have a minimum calorific value of 4,000
kcal/kg(HHV) (2) have a maximum calorific value of 5,000 kCal/kg (HHV); (3) all other criteria,
such as HGI, moisture, ash, S, etc, should be in accordance with Appendix S of the PPA.
Reference coal content shall be 4,500 kCal/kg(HHV). As a minimum requirement, the coal

Annex C – page 9
unloading jetty shall be capable of accommodating barges with 7 m draft and 14,000dwt
capacity. On site coal handling will also be the responsibility of the SELLER, and adequate
space for unloading, transfer and stacking and reclaiming coal shall be provided.

2.4.2 Fuel Oil


Fuel Oil for start up, supplemental firing, and the emergency diesel generator will be provided by
the SELLER, along with unloading, storage and distribution facilities.

2.4.3 Limestone
Limestone and all associated receiving, handling, storage and treatment facilities as required for
Flue Gas De-sulfurization (“FGD”) systems is to be provided by the SELLER.

2.4.4 FGD by-product


The SELLER shall utilize a limestone based FGD system for the Plant and is responsible for the
disposition of any solid and liquid by-products from the FGD system. The FGD by-product
disposal area shall be separate from the ash disposal area.

2.4.5 Water
The SELLER is responsible for entering into any contractual arrangements necessary to meet the
requirements specified below.

(a) Raw Water


Raw water used by the SELLER shall be provided via desalination

(b) Potable Water


The SELLER will have to treat raw water, if required, to use as potable water. The
SELLER may choose to use bottled water for drinking or other acceptable option.

(b) Condenser and Plant Cooling Water


The Plant will be cooled by a once through seawater system. The intake piping and
structures will be provided by the SELLER. The pumping and cooling water discharge
facilities will also be provided by the SELLER. The SELLER will be responsible for
constructing the cooling water pumping station required for the Plant.

(d) Construction Water


During construction the SELLER shall develop and distribute a source of water for
construction.

(e) Boiler Make-up Water


The SELLER shall use the raw water to provide boiler make-up water to meet the
requirements of the Plant.

(f) Sanitary and Sewer Facilities


The SELLER shall provide for adequate sanitary facilities during Plant construction and
Plant operations, and treat sanitary drains to comply with applicable discharge standards
of the Government prior to discharging it to the cooling water discharge canal.

Annex C – page 10
(g) Drainage
Oily water and chemical drains shall be treated to an approved quality before being
discharged to the cooling water discharge canal. All drains and other liquids, if
discharged from the Plant shall at all times comply with appropriate environmental
regulations and meet the quality standards specified by the Government and the EHS
Guidelines.

2.4.6 Electrical

500 kV Switchyard and Interconnection to PLN’s Grid system

The SELLER will construct a 500 kV switchyard for the Plant (“Electrical Interconnection
Facilities”) which will interconnect with the Special Facilities. The interfaces of the Electrical
Interconnection Facilities with the Special Facilities are the gantrys in the 500kV switchyard
bays that connect to the Special Facilities transmission lines. The Special Facilities transmission
line circuits shall remain intact under breaker failure conditions affecting any breaker in the
Electrical Interconnection Facilities.

The SELLER, in coordination with PLN, will design and install main and back up protection
relays with zones that extend into the switchyard, Special Facilities (see 4.3.11) and the power
plant, particularly the protection of the Generator Step-up Transformers and generators.

The SELLER will provide communication links to the power grid SCADA system including
adequate Remote Terminal Unit (“RTU”) points to accommodate PLN’s Java Control Center
requirements.

2.4.7 Communications, Control, and Instrumentation


The SELLER shall provide all line relay equipment and communication equipment and RTUs to
interface required Plant information with the Java Control Center, as required by PLN. The
specifications of such relays, RTUs and communication equipments shall be matched with the
existing equipment being used by PLN and be in accordance with Appendix I of the PPA.

2.4.8 Ash Disposal


Ash disposal is to be dry utilizing an onsite land fill. A pneumatic ash collection system is to be
provided along with ash storage silo(s) and an onsite land fill. The SELLER/IPP shall develop
the design to optimize ash sales for other uses.

3. DESIGN PRINCIPLES
3.1 DESIGN REQUIREMENTS
The Plant shall be of proven design, built to appropriate internationally recognized standards,
and complying with all the applicable statutory codes and regulations. Equipment suppliers for
the Plant can meet the proven design and technology requirements of Section 2.1.1 based on
another supplier(s)’s technology or design if they have a valid license or agreement for such
technology/design, including allowance under the license to export the technology.

Annex C – page 11
Plant reliability, availability, and maintainability consistent with high efficiency, are of
paramount importance.

The Plant shall be designed and equipment should be sized to permit reliable base load operation
over the complete range of anticipated ambient conditions without limiting the plant output.

The Site is in an area impacted by factors that may affect construction of the Plant. Thus these
agents must be taken account in design. The factors include:

 Erosion agent from salt air of coastal region for the outdoor construction;

 Erosion agent from sea water for reinforced concrete construction and structural
steel that contact directly to the sea water;

 Seismic zone 21 (bedrock acceleration of 0.1g for 500-year return period)

3.2 PERFORMANCE REQUIREMENTS


3.2.1 Operating Regime
The Plant shall be designed primarily for base load operation but it must also be capable of
operating continuously at reduced loads, if required. The Plant will be required to operate at high
net capacity factors (plant factors) and in accordance with PPA Appendix L. The Plant will be
normally frequency controlled rather than load controlled. Governor and droop settings etc shall
be in accordance with the Java-Bali Grid Code.

There is no requirement for the Plant to operate continuously above the manufacturer’s declared
base load maximum continuous rating (“MCR”) at given ambient conditions and the physical
condition of the Plant. However, during emergency conditions (as determined by the Java-Bali
grid control), the plant output shall be increased to VWO conditions for a limited period.

The Plant should be capable of automatic operation and control at loads between 100% and 40%
of Net Dependable Capacity without supplemental firing. When only one unit is in operation, the
operating range of such unit shall be from 20% to 50% of the Plant Net Dependable Capacity,
without supplemental firing.

3.2.2 Plant Start Up and Loading


The Plant can be started using electrical energy provided through the 500 kV switchyard. In
order to meet the PLN dispatch requirements, the Plant shall be designed to meet or improve
upon the minimum start up time and loading rates as proposed by the SELLER and which will be
included in the PPA, Appendix B. The SELLER will be reimbursed for excess starts of each Unit
in a Contract Year as supplemental charges for start up from cold, warm and hot conditions per
Appendix G of the PPA.

For each Unit, the following definitions shall apply:

1
Indonesian National Standard SNI 03-1726-2002

Annex C – page 12
a. cold start: A resynchronization after more than 32 continuous
shut down hours (boiler unfired and not drained); or
a resynchronization after 150 continuous shutdown
hours (boiler continuously fired to maintain
temperature and pressure).

b. warm start: A resynchronization after more than 8 but less than


24 hours of continuous shut down hours (boiler
unfired and not drained); or a resynchronization
after more than 32 hours but less than 150
continuous shutdown hours (boiler continuously
fired to maintain pressure and temperature).

c. hot start: A resynchronization after not more than 2


continuous shutdown hours (boiler unfired and not
drained); or a resynchronization after more than 2
but less than 8 continuous shutdown hours (boiler
continuously fired to maintain pressure and
temperature).

3.2.3 Start Up Times and Load-Ramping Rates


The SELLER shall provide the start up times, from start initiation to synchronization, and the
load-ramping rates, from zero to rated output, that the Plant will achieve under cold, warm, and
hot start up conditions. The start up times and the load-ramping rates shall be comparable with
other plants within this size range.

3.2.4 Availability and Reliability


The Plant shall be designed to achieve the levels of availability and reliability normally expected
for similar modern coal fired power plants, and as required by the PPA. It is expected that the
Plant will operate as a base load plant based on economic dispatch and will be designed to meet
an average lifetime Equivalent Availability Factor of no less than 88%. The Plant will be
required to achieve an annual Actual Availability Factor meeting or exceeding the Projected
Availability Factors for each operating year which will be specified in Appendix G of the PPA.

In this specification the Equivalent Availability Factor formula is defined as:

DC  8760  ( MOcap  MOH   FOcap  FOH   SOcap  SOH )


A
DC  8760

Where:

A = Equivalent Availability Factor

DC = Average Dependable Capacity for the year

Y = Number of years

Annex C – page 13
MOcap = capacity reduction during Maintenance Outages

MOH = Maintenance Outage hours

FOcap = capacity reduction during Forced Outages

FOH = Forced Outage hours

SOcap = capacity reduction during Scheduled Outages

SOH = Scheduled Outages hours

3.2.5 Operating and Control Requirements


It is anticipated that during early operating years the Plant will operate as a base load power
generating station, generating close to the Plant’s rated output for much of the time. In later
years it is possible that the Plant may be required to operate on a cycling basis and that the Plant
and its control system must be designed to maximize efficient operation, under both these
operating regimes

The control and supervision of the Plant shall be carried out in a Central Control Room, from
where the generators will normally be started, auto-synchronized, and initially loaded. Provision
shall be made to allow the Plant output to be controlled remotely by PLN through the AGC
program installed at PLN’s Java Control Center. The Plant shall be designed to ensure that
automatic hot, warm and cold starts, as well as shut downs, are achieved on a reliable basis
throughout its design life. The Plant shall also meet the following steady state and transient
operating conditions:

a. Operate under automatic control for sustained periods at all loads above
minimum controllable, for the given ambient temperature range.

b. Provide the necessary equipment to ensure safe shut down of the Plant
under all foreseeable circumstances.

c. Automatic controls shall account for boiler and turbine operating


conditions (hot, warm or cold), in setting the ramp rates for start up and
loading.

d. Each turbine generator shall be provided with a flexible governing system


whose characteristics can be readily adjusted to accommodate any changes
in the operating regime that may arise during the life of the Plant. The
governing system should be provided with a set of control algorithms that
allow Plant operators to change governor control parameters, if required.

3.2.6 Plant Maintenance


Maintenance of the Plant which requires an outage of a Unit or the Plant shall be scheduled in
accordance with Appendix L of the PPA. Maintenance of the Plant can also be scheduled during

Annex C – page 14
other alternative periods as PLN may agree.

3.3 GENERAL REQUIREMENTS


3.3.1 Design Life
The Plant shall be designed for a life of forty (40) years, and the SELLER shall be responsible
for owning, operating and maintaining the Plant for the term of the PPA.

3.3.2 Transfer
Following the expiry of the PPA, ownership of the Plant will be transferred in accordance with
the terms of the PPA.

3.3.3 Staffing Levels


The Plant shall be designed to require the minimum number of operating and maintenance staff,
consistent with high operational safety, reliability and economy. SELLER shall employ local
staff to the extent possible.

3.3.4 Sparing Philosophy


Redundancy of design shall be such that the performance of primary and auxiliary equipment
shall be sufficient to meet the availability requirements of the Plant. No single failure of an
active component shall result in more than one Unit being affected.

3.3.5 Protection against adverse ambient conditions


The Plant shall be designed to withstand extreme ambient conditions as determined in
accordance with Section 6.2 and listed in Table 9.3-1 of Annex D: Exhibit 6 to which it may be
exposed and to continue to function normally, within appropriate range of de-rating factors to
account for such ambient conditions.

3.3.6 Finishing and Surface Preparation


Steel structures of the Plant shall be painted and surface protected suitably for local conditions in
accordance with the standards and practices of the Steel Structures Painting Council.

3.3.7 Thermal Insulation


Insulation shall be provided where necessary for personnel protection and to minimize heat
losses.

3.3.8 Hazardous Areas

Where possible, hazards should be reasonably avoided. Where appropriate, areas shall be
classified to the relevant sections of the Indonesian environmental regulations and the NFPA, or
other recognized standards. Suitably certified equipment shall be used in the designated
hazardous areas.

3.3.9 Units of Measurement


The units of measurement used throughout the Project shall be expressed in the SI system, except
that pressure shall be expressed in kg/cm2 (or Bar) and temperature shall be expressed in degrees
Celsius (°C). Energy content of fuel shall be expressed in kCal/kg

Annex C – page 15
3.4 STANDARDS AND STATUTORY REQUIREMENTS
3.4.1 Standards
All Plant components, systems, and equipment shall be designed, manufactured, assembled and
tested at manufacturers’ works, installed and, after installation at the Site, shall be tested and
commissioned, in accordance with applicable internationally recognized standards, and statutory
regulations, including those specifically listed in these Functional Specifications.

Each Bidder shall provide with its Proposal a schedule of all the key codes proposed to be used
for the construction, testing, etc., of the Plant.

Any of the standards published by the authorities listed here are acceptable:

ACI American Concrete Institute


AISC American Institute of Steel Construction
AISI American Iron and Steel Institute
ANSI American National Standards Institute
API American Petroleum Institute
ASHRAE American Society of Heating, Refrigeration & Air Conditioning
Engineers
ASME American Society of Mechanical Engineers
ASTM American Society for Testing and Materials
ASTI
AWS American Welding Society
AWWA American Water Works Association
BS British Standards Institution
CEN European Committee for Standardization
CENELEC European Committee for Electrotechnical Standardization
DIN German Standardization Institute
HEI Heat Exchange Institute
HIS Hydraulic Institute Standard
IEC International Electrotechnical Commission
IEE Institute of Electrical Engineers
IEEE Institute of Electrical and Electronics Engineers
IP Institute of Petroleum
ISO International Standards Organization
JIS Japanese Industrial Standards
MSS Manufacturer’s Standardization Society
NEMA National Electrical Manufacturers Association
NFPA National Fire Protection Association
SSPC Steel Structures Painting Council.
TEMA Tubular Exchanger Manufacturers Association
TRD Technical Rules for Steam Generators
VDI Association of German Engineers
VGB Society of large utility owners
UBC Uniform Building Codes
EHS EHS Guidelines

Annex C – page 16
Indonesian Codes and Standards

MEMR Regulation 3/2007 on Java-Bali Grid Code


MEMR Regulation 45/2005 on Electricity Installation
Government Regulation No. 41, 26 May 1999, Air Pollution Control.
State Minister of Environment Decree No. Kep.13/Men LH/3/1995,
Emissions Standards from Stationary Sources, Exhibit III-B.
State Minister of Environment Decree No. KEP-51/MENLH/10/1995
State Minister of Environment Decree No.48/MENLH/11/1996.
Government Regulation No. 27 year 1999 regarding Environmental
Impact Assessment (AMDAL)
Minister of Energy and Mineral Resources No. 1457/K/28/MEM/2000
on Technical Guidelines on Environmental Management in the Field of Mining
and Energy.
Indonesian Ministry of Manpower re inspection and testing of pressure vessels
and lifting equipment.
Indonesian Concrete Code
SNI - Indonesian National Standards

Approval will be required for use of other codes or standards. The Bidder proposing such other
codes or standards shall provide rationale and evidence of equivalence to support their case for
approval. The evidence which is provided must clearly demonstrate that the proposed codes or
standards have previously been demonstrated and accepted as equivalent to the specified codes
and standards.

3.4.2 Electrical Interconnections


All interfaces with the PLN’s Grid System shall comply with the requirements of PLN, the Java
Bali Grid Code and Appendix I of the PPA.

3.4.3 Fire Protection


The fire detection and protection systems shall provide coverage of all the Plant and shall
comply with NFPA codes in addition to all statutory and local authority requirements.

3.4.4 Health and Safety at Work


The Plant shall be constructed, installed and commissioned and be operable and maintainable in
full compliance with relevant health and safety at-work orders, all related acts, regulations, codes
and statutory requirements. All warning and instruction notices shall be in Indonesian and
English.

3.4.5 Hazardous Substances


The SELLER shall implement all special requirements concerning the nature, handling and
storage of all classified substances including fuels, oils, gases and chemicals. Toxic, radioactive,
inflammable and explosive materials shall be declared and approved before importation to the
Site.

Annex C – page 17
3.4.6 Escape Routes
Equipment location and arrangement shall ensure that not less than two escape routes are
available for personnel in case of fire or other hazard during normal operation and maintenance
procedures.

3.4.7 Environmental Requirements


All statutory environmental regulations shall be adhered to during the design, construction and
operating phases of the Project. Lender requirements in this respect are also to be complied with.

3.4.8 Nameplates and Plant Coding System


All nameplates on equipment shall be written in Indonesian and English. A consistent Plant
coding system shall be used throughout the duration of the Project from design through the end
of the operating period. Those items of Plant electrical equipment specified in the Java-Bali Grid
Code (Connection Code Section) shall include equipment numbering and identification codes in
accordance with the Connection Code.

O&M Manuals shall be written in Indonesian and English whenever possible.

4. PARTICULAR TECHNICAL REQUIREMENTS


4.1 INTRODUCTION
This section of these Functional Specifications describes the particular technical requirements of
the principal items of the Plant and the associated systems. The detailed particular technical
requirements, including the construction details of the Plant, will be the subject of specifications
to be prepared by the SELLER.

4.2 MECHANICAL PLANT AND SYSTEMS REQUIREMENTS


4.2.1 Boilers
The boilers shall be pulverized coal type, and use supercritical or ultra-supercritical technology.

The boiler(s) and auxiliaries shall be sized to operate over the full range of ambient temperatures
specified without limiting the plant output. They shall include economizer, evaporator,
superheater and reheater tube bank section(s) with tubing, as appropriate, to maximize heat
transfer.

Pressure parts shall be designed, manufactured and tested in accordance with "ASME Boiler and
Pressure Vessel Code, Section 1, Power Boilers".

Each boiler shall exhaust through a separate flue and chimney or to a common multi-flue stack
with a concrete protective shell. Carbon carry-over into the fly ash shall under normal operating
conditions be less than six percent (6%).The stack height and the flue gas exit temperature shall
be sufficient to ensure adequate dispersion of the flue gases in accordance with environmental
standards and requirements. Chimneys shall have hazard lighting and painting as required by
local aviation laws and regulations.

4.2.2 Steam Turbine(s)


The steam turbines shall be of proven design directly coupled to a 50 Hz generator. Design

Annex C – page 18
criteria shall be applied to ensure a long creep life, cyclic duty and fast start-up. Last stage blade
materials and exhaust steam moisture shall be selected to minimize blade erosion. The last low
pressure stage blade design shall have been proven in service. The steam turbine inlet steam
parameters should correspond to the parameters of supercritical steam generated by the boiler.

The steam turbine generators shall be installed within a common enclosed turbine building with
indoor access to the control room. Overhead cranes shall be installed as required.

The steam turbine exhaust and condenser configuration shall be to the manufacturer’s standard
design.

4.2.3 Feedwater System


A feedwater system shall be designed to provide sufficient and reliable feedwater supply to the
boilers. It shall include but not be limited to necessary feedwater heaters, deaerators, feedwater
pumps, control valves and auxiliaries.

4.2.4 Steam Condensers


To condense steam exhausted by the steam turbine, the Plant shall utilize a water cooled
condenser in an open seawater system. The surface condenser(s) shall be designed and
constructed to HEI Standards, or equivalent, with sufficient margin and spare surface area for the
maximum heat rejection duty under both normal operation and turbine bypass operation
conditions for the operating regime specified.

The condenser tube and tube sheet materials shall be suitable for the cooling water quality. An
on-line condenser tube cleaning system shall be provided.

The condenser(s) shall be of the divided waterbox type arranged to allow waterside cleaning of
one half of the condenser with the turbine capable of generating a minimum of fifty percent
(50%) of its full load capacity.

4.2.5 Cooling Water System


Cooling water for the steam turbine condenser(s) shall be supplied using a once-through sea
water cooling system equipped with necessary intake screens, screen cleaning and debris
removing devices, circulating water pumps, piping, valves, controls, and auxiliaries. A
chlorination system is to be provided if required.

An auxiliary (closed circuit) fresh water cooling water system shall be provided for cooling
turbine auxiliaries and other plant auxiliaries as required.

4.2.6 Water Treatment Plant


A desalination plant with one hundred percent (100%) redundancy shall be provided to meet the
Plant demand for raw water for steam cycle makeup, auxiliary cooling, service water, fire water,
potable water (if desired) and all other Plant water requirements. A pre-treatment system and a
demineralizer are anticipated. The SELLER shall provide a Raw Water Storage Tank with a
total capacity equal to at least twenty-four (24) hours of maximum water consumption by the
Plant plus firewater storage required to meet the National Fire Protection Association (“NFPA”)
and the local fire code requirements. Firewater storage refill requirements shall meet NFPA

Annex C – page 19
requirements. Fire fighting for the coal unloading and storage facilities shall be provided by the
SELLER.

4.2.7 Water Treatment Plant


The SELLER shall provide wastewater treatment for the Plant to ensure that any water
discharged from the Plant meets the Laws of Indonesia.

4.2.8 Ash Disposal


For the ash storage area, the clearing and grading will follow existing ground level. Only a small
portion (5 years) of the total ash storage area will be prepared initially. The SELLER will
operate and maintain the ash disposal system and land fill compliant with all applicable
environmental regulations.
An impervious layer shall be installed to prevent ash storage area runoff from entering the
ground water. Appropriate wells will be installed to monitor the ground water. Fugitive ash dust
from the ash disposal area will be controlled in an environmentally benign manner.

4.2 ELECTRICAL PLANT AND SYSTEMS REQUIREMENTS


In order to meet PLN dispatch requirements, the Plant shall be designed to meet, as a minimum,
the technical limits described below and the requirements of the Java-Bali Grid Code and PPA
Appendix I: Interconnection Points and Electrical Interconnection Facilities and PPA Appendix
B: Technical Limits.

4.3.1 Frequency Limits


The Plant shall be capable of operation at frequencies as defined in the Java-Bali Grid Code,
reproduced in Table 4.1: “Frequency Limits”, below.

Table 4.1: Frequency Limits

Frequency Range (Hz) Operation Condition


49.0 to 51.0 Hz Continuous Operations

48.0 to 49.0 Hz Twenty (20) minutes

47.5 to 48.0 Hz Ten (10) minutes

51.0 to 52.0 Hz Ten (10) minutes

At 47.5 Hz Immediate trip

At 52.0 Hz Immediate trip

For further information, see Java-Bali Grid Code

4.3.2 Voltage Limits/Current Limits


Power station and system voltages shall be selected from IEC 60038 and conform to the existing
voltages currently used by PLN, and shall be capable of operating over the range ±5 % of the
nominal voltage at 500 kV, as per the Java-Bali Grid Code.

Annex C – page 20
4.3.3 Generators
Each generator shall comply with IEC 60034, the Java-Bali Grid Code, and PLN requirements.
Generator and exciter windings shall possess insulation that is non-hydroscopic and of Class F
type complying with IEC 60085, but having a temperature rise not exceeding that of Class B
under any operating condition within the specified output.

Generators must be able to receive and respond to Automatic Generation Control (AGC) signals
from the Java Load Dispatch Center.

Quality of the generators and accessories shall be in accordance with the requirements of ISO
9001, EN 29001 or BS 5750 Part 1 and other similar equivalent international quality standards.

Anti-condensation heaters shall be provided for the air circuits, generator windings, and
excitation system and control cubicles. Heaters shall be capable of maintaining the air
temperature above the dew point to prevent condensation. These heaters shall automatically
switch on when the generator is taken out of service.

Temperature detectors shall be provided to monitor the maximum operating temperature of the
generator.

The generators shall be capable of supplying their rated power within 49.0 Hz and 51.0 Hz and
±10% of nominal rated voltage within the power factor range 0.85 lagging and 0.90 leading.

4.3.4 Excitation System


Each Generating Unit must be equipped, in accordance with the Grid Code, with:

a. Fast-reacting governors that have effect on System frequency primary governors


in the range of 48.5 Hz to 51.0 Hz. Each Generating Unit must be able to receive
Automatic Generating Control (AGC) signals from dispatches in Load Dispatch Centers
to enable System frequency secondary regulation.

b. Fast-reacting automatic voltage regulators (AVR) for regulating generator


terminal voltage in the range of operations of the generating units without resulting in
instability; and MVAR Limiter (under/over excitation limiter).

c. Power system stabilizer (PSS).

Manual excitation control facilities shall be provided as a backup to the automatic


control, and shall have an adequate range to allow for control of excitation for testing
purposes. A true null balance shall be provided to allow for smooth excitation transfer
between manual and automatic control.

4.3.5 Power, Startup and Auxiliary Transformers


The SELLER shall provide generator step-up, startup and auxiliary transformers for Plant
service, including all protection, bus bars, and disconnect switches as required, and transformers
for all auxiliaries. It is expected that a startup transformer or a generator circuit breaker will be
provided to allow energizing of unit auxiliary equipment while the unit is out of service. The
Generator Step up Transformer shall be equipped with an on-line tap changer, 5% over and 5%

Annex C – page 21
below limits, and shall be delta wound on low voltage side and solidly grounded wye wound on
the high voltage side. See the Java-Bali Grid Code for further requirements.

4.3.6 Control and Supervision


Supervision/control, monitoring and information systems shall comply with PLN’s system
control concepts and procedures and will be subject to the approval of PLN.

Automatic and manual synchronizing facilities, with such check facilities as are required shall be
provided as a minimum for all circuits associated with generators.

The Plant shall be provided with a centralized on-site Central Control Room so that operators
can supervise the generators, perform switching and load dispatch. Also, a Distributed Control
System (“DCS”) shall be provided to coordinate the control and supervision of the turbine
generator control systems and power plant auxiliary systems. The DCS will have to meet the
requirements of the Java-Bali Grid Code and PLN requirements regarding any interfaces with the
500 kV switchyard and the SCADA/EMS systems of the Java Control Center.

Generators must be equipped with fast reacting governors that have an effect on system
frequency primary governors in the range of 48.5 Hz to 51.0 Hz. The generators must be capable
of receiving and responding to (future) Automatic Generating Control (AGC) signals from
dispatches in the Java Control Center to enable system frequency secondary regulation.

The necessary data and information to be exchanged between the Plant and Java Control Center
via the 500kV switchyard and SCADA/EMS systems of the Java Control Center includes but is
not limited to the following list:

No. Type of signals Java


From the Plant Control
Center
1 Status of 500kV line circuit breakers X
2 Status of 500kV grounding switches X
3 Status of operated relay protection system of X
500kV
4 Measured signals of voltage, current, power X
and reactive power of all 500 kV lines
5 Measured signals of voltage, current, power X
and reactive power and tap changer positions
of transformers
6 Measured signals of voltage, current, power X
and reactive power from the units
7 Measured signals of voltage of the bus bars X
8. Measured signal of frequency X

Annex C – page 22
No. Type of signals Java
To the Plant Control
Center
1 Raise/lower signals for controlling the unit X
outputs by either set point or pulses
2 Operation orders (open/close/trip) circuit X
breakers, disconnects grounding switches

4.3.7 Electrical Protection, Communication and Instrument Systems


The SELLER shall provide a complete and comprehensive protection system for the
generators/generator transformers/service transformers, transmission lines and the station
electrical distribution systems. The SELLER shall undertake the installation of the protection
relay panels within the control room, wiring between panels and switchyard equipment, and
commissioning tests of the protection schemes. Protection will be coordinated with PLN.

Transfer of electrical interface and control data between the Plant and the 500 kV switchyard
shall be via RTUs or Fiber Optic. Ports shall be used to communicate with the 500 kV
switchyard control room. The RTUs and Fiber Optic equipment shall comply with PLN
configuration, features and functions. Communication, control, monitoring and voice channels
will be provided between the power station and Java Control Center by the SELLER in
consultation with PLN. Communication and SCADA signals shall terminate at the RTU and be
in digital form. Telemetering and relay protection signals shall terminate in a Fiber Optic Panel.

The following signals will be supplied to the 500kV switchyard control center in line with the
SCADA Standard (note: provided in the Data Room).

Status data:

1. Protection system data for step up transformer bays

a. Generator synchronizing circuit breaker status signals

b. Over current relay signals

c. Breaker failure relay signals

2. Protection system data for overhead lines, if any:

a. 500 kV circuit breaker, if any, status signals

b. Breaker failure relay signals

c. Line protection relay signals

3. Bus bar protection

a. Differential relay signals

Annex C – page 23
b. Circuit breakers status of the 500 kV switchyard

Analog Data:

1. Net power flow in MW, at the Delivery Point

2. Reactive power flow in MVAR, at the Delivery Point

3. Voltage in kV at the Delivery Point

4. Frequency in hertz at the Delivery Point

SCADA, communication, telemetry, fiber optic terminal, and teleprotection equipment will be
supplied and installed by the SELLER and shall be compatible with PLN equipment and
systems. The wiring of all signaling and control circuits required for the system shall be cabled
out to interface marshalling cubicles by the SELLER. The SELLER shall supply and install
necessary cabling and cubicles.

The SELLER shall provide telecontrol facilities and information to the Java Control Center as
required by the Java-Bali Grid Code, the PLN SCADA Standard and the agreement with PLN.

4.3.8 Power Tariff Metering


Power tariff metering shall be provided at the 500 kV side of the generator transformers and
startup transformer for export and import metering. The Primary Metering System and Backup
Metering System shall be provided and tested by the SELLER in accordance with the PPA
Appendix K.

The Primary and Backup Metering Systems shall use separate CT’s and PT’s. The tariff meters shall have
separate facilities for recording the net inflow to the Plant and net outflow of energy from the Plant, and
the aggregate of these parameters. This information shall be available for transmission to remote
locations via the communication circuit between the 500-kV switchyard and the Java Control Center.

The following class of Metering Transformers shall be provided as a minimum for each circuit,
which has to follow the requirements of the Java-Bali Grid Code:

 Class 0.2 current transformers (three phases)

 Class 0.2 voltage transformers

 A three phase energy meter of Class 0.2, multi-tariff, two directions,


capable to integrate to remote measuring data acquisition system, having
provisions for local monitoring and remote monitoring, and complete with
impulse output Plant and maximum demand Plant to record watt-hours
and watts,

 A three phase integrating energy meter of Class 0.2, complete with


impulse output facilities connected to read var-hours

Annex C – page 24
The tariff metering scheme shall have an overall accuracy of ±0.3% for watt-hour and watt
metering and ±1.0% for var-hour metering.

Separate summators shall be provided, if required, for the total Plant export and import MWh
and MVarh.

4.3.9 500 kV switchyard


The outdoor 500 kV switchyard will include two outgoing 500kV circuits and two incoming
500kVcircuits and will be configured with two bus bars and three circuit breakers for each feeder
bay in a breaker and one half configuration. Details of the required arrangement and
requirements by PLN to be used by the SELLER in its design and configuration of this
switchyard are shown on the 500kV switchyard electrical one-line diagram shown in the attached
Figure 4.3: “Configuration of GITET Mandirancan with the Introduction of PLTU Central Java”.
The configuration shall ensure a continuous power supply when any circuit breaker needs to be
removed from service for maintenance or repair.

4.3.10 Construction Power


Construction power will be available local to the site from PLN’s 20 kV system in accordance
with the provisions of the PPA. The SELLER will provide and install its own transformers.

4.3.11 Special Facilities


The Special Facilities shall include double circuit 500kV transmission lines; towers; foundations;
protection and operational relays and components, insulators and fittings, static line and
communications lines and all other components necessary to connect from the Plant’s
Interconnection Facilities to the existing 500 kV transmission system in accordance with
Appendix I. The Special Facilities shall include a substation, located by the SELLER on the
Special Facilities Site near the existing 500 kV transmission system. The substation will include
bays for three 500 kV circuits and connections from interconnecting towers between the new 500
kV transmission lines and the existing 500 kV transmission system. The SELLER shall perform
the tie in between the substation and the existing 500kV lines, including provision of turning
towers and reinforcement of existing towers, if necessary. PLN will provide to the Bidders
specifications and a single line diagram for the substation, transmission lines, towers and
protective relays to be followed by the SELLER in design and construction.

4.4 CIVIL REQUIREMENTS


4.4.1 General
The Civil Works shall be designed to have a minimum working life of forty (40) years before
any significant repair or replacement of the main structural elements and secondary structural
elements/cladding is required. Applied coatings shall have a design life to first maintenance of
ten (10) years minimum. All construction will comply with all codes, standards, and licensing
requirements for such facilities

4.4.2 Site and Special Facilities Site Conditions


The SELLER shall carry out its own detailed topographical, hydro-geological and soil
investigations, and fund other investigations as it deems necessary.

The SELLER shall be responsible for arranging for the supply of all Site services such as power,

Annex C – page 25
potable water, temporary sewage treatment facilities, laydown areas, camp facilities, telephone
or other communications equipment that may be required during the construction of the Plant.

Should the SELLER wish to provide accommodation facilities for the Plant operating staff, it
shall submit details of these facilities together with the space requirements, with its Proposal.
The SELLER will note in the proposal any additional land required for Plant staff housing. The
accommodation facilities shall comprise permanent buildings constructed to appropriate
standards and shall be compatible in quality to other buildings in the Plant.

4.4.3 Site Levels


The Site shall be raised out of the flood plain by the SELLER if required.

The catchment drainage system shall be designed to ensure the drainage of surface water from
the area of Plant with a flood frequency of 1%.

4.4.4 Foundation Philosophy


The entire foundation system shall be designed such that it will ensure the proper and due
performance of the Plant and afford adequate protection against the effects of any long term
settlement, against seismic activity, and against periodic flooding of the area.

4.4.5 Engineering Design


The design of all facilities shall be to an approved internationally recognized set of standards and
codes, including those identified in Article 3.4 of this Appendix and shall also satisfy all
applicable Indonesian standards. The designs shall be to an acceptable standard of professional
competence and shall represent a safe, efficient use of materials to produce the required facilities.

4.4.6 Design Loadings


The design for each Plant shall incorporate the worst load combination taking into account the
following criteria where applicable:

a) Dead Loads - all loads arising from the mass of materials making up the
permanent works.

b) Live Loads - all superimposed loads arising from station operations,


testing, traffic, cranes, storage of liquids and the like. These shall be
derived from approved standards and shall represent a minimum load to be
taken.

c) Wind loads shall be calculated in accordance with the Indonesian Building


Codes or other approved internationally recognized standard. All
buildings, structures and equipment exposed to wind are to be designed for
a basic wind velocity of 100 km/h (62.1 mph) per ANSI A58.1, Exposure
Type D or approved equivalent.

d) Road Loading - the design of the roads shall be satisfactory for the
maximum load anticipated during both the construction and operational
period of the Project.

Annex C – page 26
e) Seismic Loading - the design seismic lateral forces shall be calculated
either by the Equivalent Static Force method, or by the Dynamic Response
Method, based on the requirements of the Indonesian Building Codes
supplemented as required by Uniform Building Code (UBC) 1997 as a
minimum, or other approved internationally recognized standard.

4.4.7 Materials
Materials shall be durable and fit for purpose. Materials for external surfaces shall be selected
for aesthetic qualities and proven durability to withstand all climatic conditions likely to be
experienced, ease of maintenance and economy of cost. Reasonable endeavors shall be made to
create as pleasant a working environment as is practical for the staff working in the buildings of
the Plant.

4.4.8 Workmanship
All workmanship shall be in accordance with accepted international practice to ensure the Plant
is fit for the purpose and will be serviceable for the design life of the Plant.

4.5 ENVIRONMENTAL REQUIREMENTS


The Project shall comply with the environmental requirements of the Laws of Indonesia,
specifically Law No. 23 of 1997, Concerning Environmental Management

The Winning Bidder must prepare and submit an Environmental Impact Assessment (AMDAL),
in accordance with the Environmental Assessment Regulation, Government Regulation No. 51,
1993, and Government Regulation No. 27, 1999, or any successive applicable legislation or
regulation, which demonstrates that the Plant will produce impacts that are minimal and within
an acceptable range, as well as meeting all of the Laws of Indonesia. The EIA shall include, but
not be limited to:

(i) identification of the existing social and physical conditions that may be
affected by the construction of the Plant;

(ii) identification of the existing land, air, water and solid waste environmental
conditions and parameters;

(iii) definition of permissible environmental conditions and parameters


applicable to the Plant, including legislation and regulation;

(iv) identification of the areas (if any) where the initial proposed design for the
Plant would not meet the required criteria;

(v) analysis of the suitability of any design modifications (if needed) proposed
by the Winning Bidder;

(vi) identification of permits and licenses required to comply with the


environmental requirements prior, during and after construction and
commissioning of the Plant, and

Annex C – page 27
(vii) specification and design of the monitoring programs that shall ensure that
the Plant shall comply, in the future, with the permissible environmental
standards.

Prior to commercial operations, the SELLER shall carry out the necessary tests to insure
that the Plant shall comply with the applicable environmental standards (both
Indonesian and lender requirements to be met). It is noted here that once the
Special Facilities have been handed over to PLN, only the applicable Indonesian
standards will apply under the PPA.

4.5.1 Exhaust Gas Emissions and Air Quality


Exhaust gas emissions shall not exceed the emission rates allowed by Indonesian Standards, or,
if more stringent, the Lender requirements. These requirements apply under all normal operating
conditions.
The required air quality should be maintained by controlling emission limits and selecting
appropriate stack height, stack gas exit velocity, and exhaust gas temperature.

The SELLER shall be required to provide continuous emission monitoring for each stack, as
required by the regulatory authorities.

4.5.2 Effluent Discharges


Effluent discharges shall not exceed the discharge limits for industrial/power plant effluents
specified by the Laws of Indonesia, including State Minister of Environment Decree No. KEP-
51/MENLH/10/1995

4.5.3 Noise Emissions


The operational noise emissions from the Plant at the Site boundary should not exceed the
ambient noise criteria or limits for industrial areas specified in the State of Minister of
Environment Decree No. 48/MENLH/11/1996 and other requirements of the Laws of Indonesia

These limits should be maintained as an absolute requirement under all ambient conditions
during normal power plant operation.

In order to ensure a safe and satisfactory working environment a sound pressure level of 85 dB
(A) should not be exceeded at 1.0 m from the equipment. In addition, compliance should be
made with all statutory and other mandatory noise limitation criteria applicable to the Project.

5. QUALITY ASSURANCE, INSPECTION, COMMISSIONING AND TESTING


5.1 GENERAL
The SELLER shall implement a quality assurance program for the Project and ensure that all
work undertaken on the Project throughout the design, construction, commissioning, operation
and maintenance of the Plant comply with the terms of a National or International Assurance
Standard equal to ISO9001, and provide evidence of meeting this requirement.

The whole of the works shall be tested in accordance with the standards adopted for the Project
and SELLER’s quality plans and testing procedures as further described in Appendix J

Annex C – page 28
5.2 SCOPE OF TESTS
SELLER shall be required to perform the tests described in Section 5.4 of Appendix J of the PPA
in addition to those which the SELLER would normally perform to ensure equipment quality and
Plant reliability. Testing requirements include:
 Tests during manufacture

 Tests during construction and erection

 Tests upon completion of construction (including, as a minimum, Functional tests, PPA


Tests, Performance and Plant Reliability Tests)

 Tests required under any other Project Agreement

Requirements for tests, inspections, PLN witness, reports and PLN approval are more fully
detailed in Appendix J.

6. SITE DESCRIPTION
6.1 SITE LOCATION AND REQUIREMENTS
Characteristics of fifteen potential sites that have been identified and evaluated by PLN are
presented in the Site Reconnaissance Study (available in the Data Room). However, the
SELLER may select a different site, if it so chooses, which meets site suitability requirements for
this Project.

The selected site is to be within 15 km of the PLN 500kV Grid. The Site is to be located on the
north coast of Pemalang area, Central Java Province, between Tegal (to the west) and Kendal (to
the east) and new 500 kV transmission lines from the Plant (part of the Special Facilities) which
will interconnect with the existing PLN 500kV grid via a new substation (included by SELLER
with the Special Facilities) as shown in Figure 6-1. Site area requirement for the Project is
expected to be about 250 hectares. The selected site shall be sufficiently large to accommodate
the expansion of the Plant to include a third generating unit.

Within the Site area, the SELLER must develop the proposed Plant layout taking into
consideration the area (m2) allotted for the Plant including, water storage facilities, coal, ash and
limestone handling and storage, and the general layout of buildings, mosque, facilities and
equipment. The Electrical Interconnection Facilities will be contiguous with the Site. The final
Plant arrangement will be coordinated with PLN and subject to PLN approval. The layout and
orientation of the Electrical Interconnection Facilities shall be able to accommodate expansion of
the electrical bays to include a third generating unit and associated outgoing 500 kV transmission
line.

The Special Facilities Site shall be determined by the SELLER and shall comply with PLN
design, construction and electrical safety requirements. Interconnection points between the
Electrical Interconnection Facilities and the Special Facilities and also between the Special
Facilities and the existing 500 kV transmission system shall be clearly noted on drawings
prepared by the SELLER and shall be subject to PLN approval. Schedule for testing and
commissioning of the Special Facilities shall be approved by PLN prior to the start of

Annex C – page 29
construction of the Plant.

6.2 SITE REFERENCE CONDITIONS


SELLER shall determine the ambient conditions at the selected site and provide the information
listed in Annex D: Exhibit 6 - Table 9.3-1: “Site Reference Conditions for Design”. SELLER
shall use the ambient conditions at the site listed in Annex D: Exhibit 6 - Table 9.3-2: “Site
Reference Conditions for Performance Guarantees” for the performance testing of the Plant.
SELLER shall provide to PLN the source of the information determined in accordance with this
Section 6.2 and documentation describing its use.

7. PROJECT ADMINISTRATION
7.1 GENERAL
Project administration procedures shall be implemented to properly monitor, manage and control
all aspects of the Project during design, procurement, construction, inspection, erection, testing
and operation.

The SELLER shall be responsible for determining and following Project administration
procedures, including reporting requirements, that shall be adopted during the design and
construction and operation phases of the Project and which are described in Appendix M of the
PPA.

Annex C – page 30
Figure 4-3
Figure 6-1
Figure 6-1
Central Java IPP Request for Proposals (“RFP”)

ANNEX D: BIDDER’S PROPOSAL AND SUPPORTING DATA


(ENVELOPE I)


TABLE OF CONTENTS

Exhibit Description
1 Confidentiality Letter
2 Proposal Letter
3 Power of Attorney
4 Proposal Security Form
5 Financing Data in Support of the Project
6 Technical Data and Submittals
7 Additional Supporting Data
8 Bidder’s Project Development Schedule
9 Initialed Final Project Agreements
10 Project Sponsor’s Staffing Plan

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX D – EXHIBIT 1: CONFIDENTIALITY LETTER

To:

Chairman of Central Java CFPP IPP


Procurement Committee

PT PLN (Persero)
Main Building 13rd floor
Jalan Trunojoyo Blok M I/135Kebayoran Baru
Jakarta 12160
Indonesia Tel: +62-21-722 7049
Fax: +62-21-725 1511
Email: karel_sp@pln.co.id

UNDERTAKING TO SAFEGUARD CONFIDENTIAL INFORMATION


RELATING TO THE REQUEST FOR PROPOSAL DATED FEBRUARY 25, 2010
(“RFP”) TO DEVELOP A 2 x [●] MW COAL-FIRED THERMAL POWER
STATION IN CENTRAL JAVA, INDONESIA

We, [name of company/Qualified Applicant/Bidder], a company incorporated/to be


incorporated in [country] and having/intending to have our registered office at [business
address] (hereinafter referred to as the “Recipient”) in consideration of PT PLN
(Persero) (“PLN”) or the Government of Republic of Indonesia (“Government”) or its
agencies, instrumentalities, representatives or agents disclosing to us the Confidential
Information (as defined below) and/or PLN or the Government arranging for such
Confidential Information to be disclosed to us, do hereby agree and undertake on behalf
of the Recipient and its directors, officers and employees as follows:

1. “Confidential Information” means all information which is stated to be


confidential or which is by its nature implicitly confidential. It includes all
information of any nature relating to the development, maintenance and operation
of the 2 x [●] MW coal-fired thermal power station in Central Java, Indonesia
pursuant to the RFP (the “Project”) which the Recipient may receive and may be
communicated to the Recipient by any means, including but not limited to all
responses, discussions, feedback and comments on and/or relating to the RFP.
Confidential Information shall include the aforesaid information relating to the
Project regardless of form, format or media including, without limitation, written,
oral, or information reduced to tangible form and also includes information
communicated or obtained through sight or exchange of documents,
presentations, exhibits, meetings or correspondence.

2. The Recipient acknowledges and agrees that the Confidential Information

Annex D
Central Java IPP Request for Proposals (“RFP”)

received is solely for the purpose of enabling the Recipient to evaluate its
participation in the Project and the RFP and is of a strictly secret and confidential
nature. The Recipient shall keep in confidence and shall not disclose, whether
directly or indirectly, to any person or entity, including but not limited to the
media:

(a) any of the Confidential Information;

(b) that the Recipient has received the Confidential Information; and/or

(c) that discussions are taking place between the Recipient and PLN, the
Government or its agencies, instrumentalities, representatives or agents
nor the status, terms, conditions or other facts concerning such
discussions, except as otherwise provided by the terms and conditions of
this Undertaking. The Recipient shall exercise the highest degree of care
to guard against the unauthorized disclosure or use of the Confidential
Information and shall maintain the secrecy of the Confidential Information
vis-à-vis all third parties. Further, the Recipient shall not make copies of
the Confidential Information without the prior written approval of PLN,
which for such purposes designates as its agent the Chairman of the
Central Java IPP Procurement Committee.

3. The Company shall institute management and security procedures to ensure that
the Confidential Information is accessible to only those directors, officers,
employees and/or Third Parties (as defined below) of the Recipient who require
such information solely in the course of putting together the Recipient’s Proposal
(as defined in the RFP) for the Project.

4. The Recipient shall ensure that all directors, officers and/or employees of the
Recipient or professional advisors, financial institutions, consultants and other
service providers (the “Third Parties”) assigned or requested by the Recipient to
assist in the preparation of the Recipient’s Proposal for the Project (or any part
thereof), who are recipients of the Confidential Information, are required to
comply with the laws of the Republic of Indonesia and shall sign a further
undertaking to safeguard such Confidential Information if directed by the
Government or its agents to do so. The Recipient shall in any event ensure that the
directors, officers and/or employees of the Recipient and the Third Parties,
including the Third Parties’ servants and agents, to whom the Confidential
Information is disclosed to, are bound and adhere to confidentiality obligations
which are no less stringent than that contained in this Undertaking.

5. The Recipient shall further ensure that the directors, officers and/or employees of
the Recipient and the Third Parties, including the Third Parties’ servants and
agents, shall maintain the confidentiality of the Confidential Information at all
times and even after they have left the employment of the Recipient or the Third
Parties until such time when the Confidential Information or such part thereof has

Annex D
Central Java IPP Request for Proposals (“RFP”)

become public knowledge otherwise than through the default or neglect of the
Recipient or the Third Parties or any of their servants or agents.

6. All written Confidential Information or any part thereof (including electronic


copies) together with any analyses, reports or other documents or materials as are
in the possession, power or control of the Recipient shall be returned to PLN or
destroyed when requested by and at the option of PLN. In the event of the
destruction of the Confidential Information, the Recipient shall immediately
certify in writing to the PLN that such destruction has occurred. The Recipient
shall make no further use of nor retain such Confidential Information in any form
whatsoever.

7. The foregoing restrictions on the Recipient shall not apply to any Confidential
Information which is or becomes generally available to the public in printed
publications in general circulation in the Republic of Indonesia through no act or
default on the part of the Recipient or the Recipient’s agents or employees.

8. The Recipient acknowledges and agrees that any breach of this Undertaking may
cause PLN and/or the Government substantial and irreparable damage and/or
injury and, therefore, in the event of such breach, in addition to other remedies
which may be available at law or in equity, PLN and the Government shall have
the right to specific performance and other injunctive and equitable relief without
the necessity of proving damages, posting any bond or other security. The
Recipient shall indemnify and hold harmless PLN, the Government, its partners,
employees, agents and independent contractors from and against any and all
claims, costs, damages (whether direct or indirect), losses, expenses and liability,
including court costs and reasonable legal fees, which are related to or arise out of
the Recipient’s breach of this Undertaking, or which are incurred by PLN or the
Government in the enforcement of this Undertaking.

9. No failure or delay by PLN in exercising any right, power or privilege available to


PLN under this agreement shall be deemed to be a waiver nor shall any single or
partial exercise of any such right, power or privilege preclude any further exercise
of any other right, power or privilege.

10. The Recipient acknowledges that PLN does not warrant the accuracy,
completeness or sufficiency of the Confidential Information and shall not have
any liability or responsibility whatsoever for any errors or omissions in or any
decision made by the Recipient in reliance on the Confidential Information.

11. Nothing in this Undertaking shall create a partnership, joint venture or


relationship or employer and employee between the parties nor constitute either
party an agent of the other and neither party shall enter into or have authority to
enter into any engagement or make any representation or warranty on behalf of or
pledge the credit of or otherwise bind or oblige the other party to this
Undertaking.

Annex D
Central Java IPP Request for Proposals (“RFP”)

12. This Undertaking contains the entire understanding between the parties with
respect to the safeguarding of the said Confidential Information and supersedes all
prior communications and understandings with respect thereto. No waiver,
alteration, modification, or amendment shall be binding or effective for any
purpose whatsoever unless and until reduced to writing and executed by both
parties.

13. Each provision (or part thereof) of this Undertaking shall be construed separately
and independently from each other. Accordingly, if any provision of this
Undertaking is found to be unenforceable or invalid, such provision shall be
ineffective to the extent of such unenforceability or invalidity, without affecting
the remaining provisions of this Undertaking.

14. This Undertaking and all rights and obligations of the parties shall be governed
and construed in accordance with the laws of the Republic of Indonesia and both
parties submit to the non-exclusive jurisdiction of the courts of the Republic of
Indonesia.

15. Any notice required to be given hereunder by any party shall be in writing sent by
prepaid recorded delivery or registered post or by courier or by email or by
facsimile and shall be deemed effective if sent by post or courier at the expiration
of seventy-two (72) hours after the same was posted or sent whether or not
received, or , if by email or by facsimile, twenty-four (24) hours after dispatch to
the correct email address or facsimile number of the addressee (with correct
answerback). Each of the parties shall notify the other of any change of address,
telephone or facsimile numbers or email address within forty-eight (48) hours of
such a change.

16. Any breach or neglect of this Undertaking may also render the Recipient liable to
prosecution under the laws of Indonesia.

17. This Undertaking shall be valid until the date of execution of a definitive
implementation agreement in respect of the Project.

Signature: ________________________________________

Signed by:
(Full name in Block letters)
Designation:

For and on behalf of

Annex D
Central Java IPP Request for Proposals (“RFP”)

In the presence of:


(Full name in Block letters)

Signature of Witness: ________________________________________

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX D – EXHIBIT 2: PROPOSAL LETTER

Date: [Insert Date]

To:

Chairman of Central Java CFPP IPP
Procurement Committee

PT PLN (Persero)
Main Building 13rd floor
Jalan Trunojoyo Blok M I/135Kebayoran Baru
Jakarta 12160
Indonesia

Tel: +62-21-722 7049


Fax: +62-21-725 1511
Email: karel_sp@pln.co.id

The undersigned,

Last Name : …………………………………………………………

First Name : …………………………………………………………

Title/ Position : …………………………………………………………

Acting:

As the authorized representative (the “Authorized Representative”) of the


……………………………. company/consortium [delete as appropriate].

[For a consortium] The consortium comprises the following members:

Lead Members as follows:

………………………………………………………….…… with …….% shareholding


………………………………………………………….…… with …….% shareholding

Committed Shareholders as follows:

Annex D
Central Java IPP Request for Proposals (“RFP”)

………………………………………………………….…… with …….% shareholding


………………………………………………………….…… with …….% shareholding

and Other Shareholders as follows:

………………………………………………………….…… with …….% shareholding


………………………………………………………….…… with …….% shareholding

The requisite Power(s) of Attorney and certified copy(ies) of the board resolution(s) (or other
relevant corporate approvals) evidencing the power(s) to grant such attorney(ies) are provided.

Located at the following address1:


__________________________
__________________________
__________________________
Telephone : ________________
Facsimile : ________________
Email : ________________

Our company/consortium has examined the whole of the RFP documents, receipt of which is
duly acknowledged, for the development, operation and maintenance of a 2 x [●] MW coal-fired
thermal power facility, on a BOOT basis, in Central Java in Indonesia, comprising of the
following documents:

 RFP (and Annexes)


 Project Agreements

Capitalized terms not otherwise defined in this letter have the meanings given to them in the RFP
and the PPA.

Having evaluated, following our own studies undertaken under our responsibility, the nature and
scope of the contractual obligations to be executed, the Security Package and any other
regulation associated with the Project or its execution, we commit ourselves to design, finance,
procure, build, operate, and maintain the Facility and sell the electricity generated exclusively to
PLN for the duration of the PPA, in conformity with the schedule and conditions stipulated in the
RFP documents and for the price as indicated separately in Envelope II of our Proposal.

We agree to abide by this Proposal and maintain its validity for a period of one hundred eighty
(180) days from the Bid Submission Date, or such longer period as may be agreed in each case
as prescribed in the Instructions to Bidders, in accordance with the requirements of Section 12 of
the RFP.


1
Provide the address of the Authorized Representative

Annex D
Central Java IPP Request for Proposals (“RFP”)

We accept to remain bound by this Proposal which may be accepted by PLN at any time before
the expiration of that period.

We commit ourselves, if we were to be selected, to extend the validity of our Proposal and our
Proposal Security until execution of the Project Agreements and presentation of the Bank
Guarantee Stage I by the Project Company.

We have provided and attached hereto a Letter of Credit / Bank Guarantee for thirty million
Dollars (USD 30,000,000) / IDR 300 billion in accordance with the form provided herein.

We certify that:

(i) the information submitted as part of this Proposal is complete and accurate;

(ii) the Proposal has been submitted in the name of, or as applicable on behalf of, the
company/consortium whose members will form a Project Company which will be bound
to this Proposal and to the development of the Project;

(iii) We accept the documents and terms of the RFP documents.

We understand that PLN is not bound to accept any Proposal that it may receive.

In ………………………. [location], on this …………….… [date], the Authorized


Representative of ……………………. [company/consortium], duly authorized to execute the
Proposal for and on behalf of the company/consortium (delete as appropriate):

______________________
notarized signature and seal

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX D – EXHIBIT 3: POWER OF ATTORNEY


POWER OF ATTORNEY

Central Java 2 x [●] MW BOOT Power Project

BY THIS POWER OF ATTORNEY made on the day set out in the schedule attached
hereto (the "Schedule") the [corporation / entity] described in the Schedule as the "Grantor"
hereby appoints the person described in the Schedule as the "Attorney" as its true and lawful
attorney for it, and in its name, to:

(a) execute under hand, or under seal, and deliver in the place set out in the Schedule the
document or documents described therein as the “Documents”;

(b) to deliver and receive any document or instrument in relation to the Documents; and

(c) to do all things necessary and incidental in respect of the matters set out in (a) – (b)
above including to do, execute and perform any other deed, matter, act or thing which
in the opinion of the Attorney ought to be done executed or performed to perfect or
otherwise give effect to the Documents.

AND IT DECLARES THAT:

1. The powers and authorities hereby given shall remain in full force and effect until
their revocation by written notice to the Attorney.

2. The Grantor will, from time to time and at all times, ratify and confirm whatever the
Attorney lawfully does or causes to be done pursuant to this Power of Attorney, and
will indemnify and keep the Attorney indemnified against all claims, demands, costs,
damages, losses and expenses, however arising (including from the form, sufficiency,
accuracy, genuineness, falsification or legal effect of the Documents), consequent
upon the lawful exercise of all or any of the powers or authorities hereby granted.

3. The Grantor will forthwith upon execution and delivery of this Power of Attorney,
properly register this Power of Attorney if required by any applicable law.

Annex D
Central Java IPP Request for Proposals (“RFP”)

SCHEDULE

[To be filled up by each consortium member in case of consortium applicant.]


A. DATED: [INSERT DATE OF EXECUTION]

B. THE GRANTOR: [INSERT NAME OF BIDDER]

C. ATTORNEY: [INSERT NAME OF AUTHORIZED


REPRESENTATIVE]
D. PLACE IN WHICH DOCUMENTS Procurement Committee, Central Java IPP
ARE DELIVERED: PT PLN (Persero)
Main Building 13rd floor
Jalan Trunojoyo Blok M I/135Kebayoran Baru
Jakarta 12160
Indonesia
E. DOCUMENTS ALL DOCUMENTS IN RESPECT OF THE
GRANTOR’S PROPOSAL FOR THE
CENTRAL JAVA 2 x [●] MW BOOT
POWER PROJECT

IN WITNESS WHEREOF the Grantor has executed this Power of Attorney [under seal] on the
date set out above.1

[SEAL] )
)
)
)

________________________________
[Name / Title of Grantor Representative]


1
The PoA should be notarized.

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX D – EXHIBIT 4: PROPOSAL SECURITY FORM

[To be provided on the issuing bank’s letterhead]

BANK GUARANTEE

Considering the Proposal presented by the bidder _____________ (the “Bidder”) in response to
the Request for Proposals (“RFP”) dated February 25, 2010 issued by PT PLN (Persero)
(“PLN”) of the Republic of Indonesia for the development, operation and maintenance of a 2 x
[●] MW coal-fired thermal power Facility, on a BOOT basis, in Central Java in Indonesia.

We, the undersigned, responsible delegates and representatives of the Bank ___________ in
Indonesia, authorized to sign and make decisions in its name, declare by the present letter, that
the aforementioned bank guarantees, in an amount of thirty million Dollars (USD 30,000,000) /
three hundred billion Rupiah (IDR 300,000,000,000) as a bank guarantee in favor of PLN for
the proper execution of the Bidder’s commitments, in conformity with the RFP requirements for
the development, operation and maintenance of a 2 X [●] MW coal-fired thermal power
Facility, on a BOOT basis, in Central Java in Indonesia.

We unconditionally and irrevocably commit ourselves to immediately pay PLN, upon first
written request, the above indicated amount without there being need for legal or administrative
procedures and without need to prove the Bidder’s default.

This letter of guarantee will be valid for two hundred and ten (210) days from the Bid
Submission Date, as defined in the RFP.

This letter of guarantee shall be governed by the laws of Indonesia. The parties hereto submit to
the non-exclusive jurisdiction of the courts of Indonesia.

Indonesia, __________________________ Date ____________________

______________________
Signature and bank seal

Annex D
Central Java IPP Request for Proposals (“RFP”)

IRREVOCABLE LETTER OF CREDIT

[Letterhead of Issuer]
[Address of Issuer]

[Date]

Standby Letter of Credit No. [●]

PT PLN (Persero)
Republic of Indonesia
[Address]

Attention: [●]

Gentlemen:

1. At the request and for the account of our customer, [insert name of Bidder]
(the “Bidder”), whose address is [●], we, the undersigned bank (the “Issuer”), hereby establish
this Irrevocable Standby Letter of Credit No. [●] (this “Letter of Credit”) in connection with the
Proposal presented by the Bidder in response to the Request for Proposals (“RFP”) dated
February 25, 2010, 2009 issued by PLN (“PLN”) for the development, operation and
maintenance of a 2 X [●] MW coal-fired thermal power Facility, on a BOOT basis, in Central
Java in Indonesia. This Letter of Credit is issued in favor of PLN for the proper execution of the
Bidder’s commitments, in conformity with the RFP requirements. The maximum aggregate
amount available under this Letter of Credit is thirty million Dollars (USD 30,000,000) / three
hundred billion Rupiah (IDR 300,000,000,000) (the “Stated Amount”).

2. Subject to the other provisions of this Letter of Credit, PLN is hereby


irrevocably authorised to make a drawing under this Letter of Credit, by presenting to the Issuer,
at its address set forth above, a demand for payment from PLN in substantially the form attached
hereto as Annex A, duly completed.

3. We hereby agree to honor the drawing hereunder made in compliance with


this Letter of Credit by transferring in immediately available funds to the Designated Account
the amount specified in a demand for payment at the opening of business on the first, second,
third or fourth Business Day succeeding the date of such demand. As used herein, the term
“Business Day” means any day other than (i) a Saturday or Sunday, or (ii) a day on which
banking institutions in Indonesia or New York are authorised or obligated by law to remain
closed.

4. If a demand for payment hereunder does not, in any instance, conform to


the terms and conditions of this Letter of Credit, we shall give prompt notice (but within the first
Business Day succeeding the date of such demand) to PLN that the demand for payment was not
effected in accordance with the terms and conditions of this Letter of Credit, stating the reasons
therefor and that we will upon instructions hold the documents at your disposal and return the

Annex D
Central Java IPP Request for Proposals (“RFP”)

same to PLN. Upon being notified that a demand for payment was not effected in conformity
with this Letter of Credit, PLN may attempt to correct any such non-conforming demand and re-
submit such demand in accordance with the terms and conditions hereof.

5. This Letter of Credit shall expire on the earlier of (i) [insert date which is
at least two hundred and ten (210) days from the Bid Submission Date] or (ii) the date on which
we have honored a drawing in an aggregate amount equal to the Stated Amount.

6. All documents presented to the Issuer in connection with any drawing


hereunder, as well as all notices and other communications to the Issuer in respect of this Letter
of Credit, shall be in writing and addressed and presented to the Issuer at its address set forth
above. Such documents, notices, and communications shall make specific reference to this
Letter of Credit by number. Such documents, notices, and other communications may be
delivered or sent by courier to the Issuer at its address set forth above (or at such other address as
the Issuer shall have specified in writing to PLN) or sent to the Issuer by facsimile to the
following number:

Facsimile No. [●]

7. This Letter of Credit sets forth our undertaking and our agreement with
PLN and such undertaking and such agreement may not in any way be modified, amended,
amplified or limited by reference to any other document, instrument or agreement referred to
herein.

8. This Letter of Credit is issued subject to the International Standby


Practices 1998, International Chamber of Commerce Publication No. 590. This Letter of Credit
shall be governed by the laws of Indonesia. The parties hereto submit to the non-exclusive
jurisdiction of the courts of Indonesia.

Very truly yours,


[NAME OF ISSUER]

By: __________________________
Title: _________________________

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX A
to
Standby Letter of Credit

DEMAND FOR PAYMENT

To: [Name of Issuer]


[Address]

Attention: [●]

Re: Standby Letter of Credit No. [●]

The undersigned, a duly authorised representative of PT PLN (Persero) (“PLN”),


hereby certifies to [name of Issuer] (the “Issuer”), with reference to the Issuer’s irrevocable
Standby Letter of Credit No. [●] (the “Letter of Credit”), issued by the Issuer by order and for
account of [insert name of Bidder] (the “Bidder”), as follows:

1. PLN hereby demands payment (the “Drawing”) under the Letter of Credit in the aggregate
amount of IDR [●] pursuant to, and in compliance with Section 12.1 of the Request for
Proposals in order to satisfy the Bidder’s commitments thereunder.

2. The amount of the Drawing does not exceed the Stated Amount.

3. Please wire transfer the amount of the Drawing to [account details to be inserted by PLN]

IN WITNESS WHEREOF, PLN has executed and delivered this certificate as of the [●] day of
[●],

________________________________
[Authorised representative of PLN]

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX D – EXHIBIT 5: FINANCING DATA IN SUPPORT OF PROJECT



FINANCING PLAN

The Bidders will be responsible for mobilization of the financing for the Project.

The financial plan provided by the Bidder will describe the sources of funds and the
terms of financing for both debt and equity as applicable. For the avoidance of doubt,
shareholder loans will be treated as equity provided that they are subordinated to all other
debt. The Bidder will provide details on the financing sources as outlined in the below
Table 1. The financing should be in an amount sufficient to cover all estimated project
costs.

Financing shall be in the form of equity and debt. The Bidder shall arrange a standby
credit facility equal to at least five percent (5%) of the total Project costs as explained in
Section 1.4 of Table 1 below, to be available during the construction phase. At least
twenty percent (20%) of the total financing (excluding the standby credit facility) shall be
in the form of equity or shareholder loans and the remainder in senior debt.
Table 1
SOURCES OF FUNDS
Items / Sources USD + Local = Equivalent Total in
Currency USD
(IDR)
1.1 Total estimated project costs

1.2 Equity contributions (including


shareholder loans)
 Lead Member
Name: ____________________
 (2nd Lead Member)
Name: ____________________
 (3rd Lead Member)
Name: ____________________
 Committed Shareholder(s)
Name: ____________________
 Other Shareholder(s)
Name: ___________________

Annex D
Central Java IPP Request for Proposals (“RFP”)

SOURCES OF FUNDS
Items / Sources USD + Local = Equivalent Total in
Currency USD
(IDR)
Total Equity:
1.3 Debt Financing
 Export Credit Agencies
(List individually)
 Export Credit Agency
Name:_____________________
 Export Credit Agency
Name:_____________________
 Export Credit Agency
Name: ____________________
 Export Credit Agency
Name: ____________________
 Commercial Sources
(List individually)
 Commercial Source
Name:____________________
 Commercial Source
Name:_____________________
 Commercial Source
Name: ____________________
 Multilateral Sources
(List individually)
 Multilateral Source
Name: ____________________
 Multilateral Source
Name: ____________________
 Other Sources
(List individually)
 Other Source
Name: ____________________
Total Debt:
1.4 Stand-by Credit Facility of 5%
of Project cost. Explain
arrangements made for the stated
amount along with letters of
interest from institutions
providing the amount.

Annex D
Central Java IPP Request for Proposals (“RFP”)

2.0 DOCUMENTATION

In support of the financing plan provided above, the following documentation is to be


provided.

2.1 Financial plan certified by the Chief Executive Officer or Treasurer / Controller of each
of the companies verifying that the company will provide the amount of equity or
shareholder loan stated in Section 1.2 of Table 1 at the relevant time.

2.2 Letters of Interest with term sheets from the Export Credit Agencies, Commercial
Sources and /or Multilateral Sources and /or financial institutions verifying the amount of
debt financing stated in Section 1.3 of Table 1. The document should also provide
indicative terms of the proposed financing by each financier, including tenors, interest
rate and financing fees.

2.3 If the Bidder has obtained an underwriting for all or part of the amount, a letter from the
financing institution of such undertaking shall be provided.

2.4 If the Bidder has appointed a financial advisor/arranger for the Project, Bidder shall
provide the name of the organization, the lead person who will perform the services from
the organization, and the qualification statement for the organization and the lead person.

2.5 The Bidder shall provide a detailed schedule of activities leading to the Financing Date in
Annex D, Part VIII of its Administrative and Technical Proposal.

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX D – EXHIBIT 6: TECHNICAL DATA AND SUBMITTALS

Annex D
ANNEX D: EXHIBIT 6

TECHNICAL DATA AND SUBMITTALS (Envelope I)

TABLE OF CONTENTS
Article Description Sheet

Table of Contents D-1

1 Guaranteed Data for Project D-2

2 Basic Technical Information D-3

3 EPC Contractor and O&M Contractor Requirements D-4

4 Detailed Technical Information D-5

5 Drawings D-15

6 Performance & Correction Curves D-16

7 Performance Test Procedures D-19

8 Project Summary Data D-20

9 Environmental and Site Reference Data D-23

10 Electrical Interconnection Facilities and Special Facilities D-31

11 Performance Data D-32

12 Operations and Maintenance Data D-36

13 Transfer D-39

Forms
Form 1: Operational Experience of Selected Technology
Form 2: Technology Licensing Agreements
Form 3A: Equipment Operational Experience
Form 3B: Technology Experience of Selected Steam
Generator and Steam Turbine Manufacturers
Form 4: EPC Contractor Experience

Annex D, Exhibit 6-page 1


Form 5: O&M Contractor Experience
Form 6: Agreed Values for Capacity Payments

Annex D, Exhibit 6-page 2


TECHNICAL DATA

1 Guaranteed Data for Project

The following data is required to be provided by the Bidder and will be subsequently
included in the Schedules to the PPA if the Bidder is selected as the Winning Bidder.
The Levelized Tariff Price of the Bidder will be based upon data furnished herein, as well
as those furnished by the Bidder in Annex E: Price Proposal Form.

1.1 The Contract Capacity of the Plant as determined by the Net Dependable Capacity
Test shall be as specified in Table 11.2 below, “Guaranteed Overall Plant
Performance” and will be consistent with the Site ambient conditions data
provided in Table 9.3-2, “Site Reference Conditions for Performance Guarantees”.
Values which shall be used in determining Component A of the Capacity Payment
for each Contract Year of the PPA shall be as specified in Form 6: “Agreed Values
for Capacity Payment”. The values in Form 6 will be included in Attachment A to
Appendix G

1.2 Heat rate values for full and part load operation of the Plant (for each Contract
Year) shall be as specified in Table 11.1A: “Adjustments to SHRcc for Plant Load
Variation” and will be based on the Site ambient conditions data provided in Table
9.3-1. Heat rate values from Table 11.1A will be included as the “Schedule of
Partial Heat Rates for the Plant” included in Attachment A to Appendix G of the
PPA. Heat rate values for full or part load operation of Unit 1 upon being
dispatched by PLN prior to the Project Commercial Operation Date and after
successful completion of Unit 1 performance tests shall be as specified in Table
11.1B: “Adjustments to Unit 1 Specific Heat Rate for Unit 1 Load Variation”.
Heat rate values from Table 11.1B will be included in Attachment G to Appendix
G.
1.3 Each Bidder shall provide such correction curves to be used during performance
testing conducted in accordance with Appendix J to correct for site ambient
condition which deviate from Site Reference Conditions in Table 9.3-2 below.
Only those curves provided by Bidders in Table 6.1 through Table 6.5 below will
be taken into consideration for the calculation of the results of a Net Dependable
Capacity Test. These correction curves will be included in Appendix J of the PPA.
1.4 Each Bidder shall provide the following guaranteed data for each Unit and for the
Plant, as appropriate:
A. Noise levels (see Table 11.2)
 At Site boundary
 At one meter from major equipment
 At one hundred meters from major equipment
B. Air emissions (see Table 9.2)

Annex D, Exhibit 6-page 3


Maximum anticipated levels of NOx, CO, SOx and particulates, based on the
coal characteristics provided by the Bidder.
C. Water discharge:
 Provide quantity, particulate concentration and composition of each
wastewater discharge, other than sanitary discharge.
 Provide provisions made for treatment of wastewater and sanitary water.
 Provide condenser cooling water discharge plume data with individual
Unit(s) in operation and with the Plant in operation. What environmental
standards are you meeting? Describe your results, method of analysis, your
data and assumption. How do you comply with the requirements and with
what margins?
1.5 Each Bidder shall provide information requested in Section 12 with respect to
operational and maintenance characteristics of the Plant.

2 Basic Technical Information

2.1 Each Bidder shall provide a detailed description of the proposed Plant with
supporting facilities, Site infrastructure, Electrical Interconnection Facilities and
Special Facilities. The Plant description shall be sufficient to demonstrate
compliance with Annex C: Project Functional Specifications, particularly Section 3
and Section 4, thereof.
The additional information provided by Bidder in this Annex D: Exhibit 6 shall
demonstrate full compliance by Bidder with Annex C: Project Functional
Specifications. Information submitted by Bidder in this Annex D: Exhibit 6 will be
incorporated into Annexes A and B of the PPA or into other Annexes of the PPA
where specifically noted in the applicable Section of this Annex.
Each Bidder is required to include the completed data sheets and tables below as
well as an overall description and drawings that define and describe its proposed
design in a comprehensive manner. Each Bidder shall also include its approach to
the design requirements, the design and operating experience bases, the special
features included and challenges to be overcome.
2.2 Source of major components.
Information Manufacturer / Model / type
Component Requested
Boiler Manufacturer
Precipitator Manufacturer
Steam turbine Manufacturer
Flue Gas Desulfurization Manufacturer
system

Annex D, Exhibit 6-page 4


Ship Unloader Manufacturer
Stacker/Reclaimer Manufacturer
Condenser Manufacturer
Boiler Feed Pump Manufacturer
Condensate Pump Manufacturer
Circulating Water Pump Manufacturer
De-aerator Manufacturer
Control system/DCS Manufacturer
Coal handling equipment Manufacturer
Generator Step-up Manufacturer
Transformer

Generator Manufacturer
Generator Circuit breaker (if Manufacturer
used)’ or
Synchronizing Breaker (if
used)
Coal mills Manufacturer
Station and Unit Manufacturer
Transformers
Water treatment plant
Desalination plant

2.3 Describe main cycle water treatment system considering the condenser, feedwater
heater tube materials and boiler temperatures and pressures.
2.4 Describe provisions made for SCADA system including model, capabilities,
manufacturer, etc.
2.5 Describe how the design and equipment achieve the Plant availability requirements.

3 EPC Contractor and O&M Contractor Requirements

3.1 EPC Contractor Qualifications and Requirements

Each Bidder shall provide a completed Form 4: EPC Contractor Experience to


confirm the EPC Contractor’s required construction experience as required by section
2.2.5 of Annex C.

Annex D, Exhibit 6-page 5


Each Bidder shall confirm that the EPC Contractor which it proposes to use for this Project is
not participating in this Bidding Process as a Lead Member, Committed Shareholder or an
Other Shareholder of another Bidder’s Consortium in compliance with the requirements of
Annex I of this RFP:

Is the EPC Contractor proposed by Bidder for this Project participating in the Bidding
Process as a Lead Member, Committed Shareholder or an Other Shareholder of
another Bidder’s Consortium? _________(YES/NO)

Is an executed Memorandum of Agreement which includes a detailed Term Sheet


initialed by the proposed EPC Contractor and Bidder attached to this proposal which
confirms that if the Bidder is selected as the Winning Bidder, the EPC Contractor
intends to enter into an EPC Contract with the Seller? _____________(YES/NO)

Each Bidder shall include with of its proposal the latest Annual Report of the EPC
Contractor or its parent organization which it proposes to use for the Project.
Annual Report(s) issued by ______________________________for year(s)
_______________________ are included with this proposal.

3.2 O&M Contractor Qualifications and Requirements

Each Bidder shall provide a completed Form 5: O&M Contractor Experience to


confirm the O&M Contractor’s plant operating experience as required by section 2.2.6 of
Annex C.
Is a signed Memorandum of Agreement including a detailed Term Sheet initialed by
each of the O&M Contractor and the Bidder attached to this proposal, indicating that
if the Bidder is selected as the Winning Bidder, the O&M Contractor intends to enter
into an O&M Contract with the Project Company to be set up by such Bidder to be the
counterparty to the PPA, to provide O&M services on the terms set out in the term
sheet? ___________(YES/NO)

Each Bidder shall include with of its proposal the latest Annual Report of the EO&M
Contractor or its parent organization which it proposes to use for the Project.
Annual Report(s) issued by ______________________________for year(s)
_______________________ are included with this proposal.

.
4 Detailed Technical Information
4.1 Overall Design of Plant

Annex D, Exhibit 6-page 6


Each Bidder shall provide a completed Form 1: Operational Experience of Selected
Technology for at least three projects to confirm the proven design and technology
requirements of Section 2.1.1 of Annex C.
Each Bidder shall complete Form 2: Technology Licensing Agreements to Use and
Sell Products or Technology, as necessary, to provide information describing any
technology license(s) or agreement(s) on which it proposes to rely for proven technology
experience.
Each Bidder shall complete Form 3B: Technology Experience of Selected Steam
Generator/Steam Turbine Manufacturers to confirm the experience requirements of
section 2.2.5 of Annex C.

4.2 Information on Equipment Proven Design and Technology

For each of the items of equipment or systems listed below in this Section 4.2, each Bidder
shall provide a completed Form 3A: Equipment Operational Experience. Provide the
information for at least three projects .which need not be the same projects as those cited
under Section 4.1 above, for the past three (3) years.
 Steam turbine
 Generators
 Steam generators (boiler)
 Feedwater pumps and drivers
 Flue Gas Desulphurization (FGD)
 Control system
 Coal handling equipment

4.3 Technical Data


Each Bidder shall fill out the data sheets provided herewith.
It is required that each Unit will be identical.
DATA SHEETS
Description Bidder’s Response:

As a minimum, the following data sheets, Insert in this column all the data
drawings, and performance curves relating requested or the page number or annex in
to the Project Company’s proposal shall be the Proposal where the information is
provided: provided.
4.3.1 Coal handling equipment

Annex D, Exhibit 6-page 7


DATA SHEETS
Description Bidder’s Response:

Unloading type and capacity T/hr


Conveyors type and capacity T/hr
Transfer houses number and capacity T/hr
Storage capacity Days at
85%
capacity
factor
Reclaim method and capacity T/hr
Coal crusher type/capacity T/hr
Fire protection system Type
Fire protection:
CO2 System yes/no
Detectors:
 Temperature detectors yes/no
 Smoke detectors yes/no
 UV detectors Yes/no
4.3.2 Steam Generators (boiler)
Manufacturer -
Type -
HP Steam Pressure Bar
o
HP Steam Temperature C
HP Steam Flow Kg/s
Reheat Steam Pressure Bar
o
Reheat Steam Temperature C
Reheat Steam Flow Kg/s
Number and type of Burners
Number and type Pulverizers
M3/min
FD &ID Fans number / capacity/pressure
rise

Tn/hr
Coal Consumption at Contract Capacity
%
Minimum load with coal only
o
Exhaust flue gas temperature C
Gas side pressure drop at 100% load mm H2O
Number and type of soot blowers

Annex D, Exhibit 6-page 8


DATA SHEETS
Description Bidder’s Response:
Economizer inlet temperature C

Superheater
Design pressure/temp. bar/oC

Reheater
o
design temperature/ C/ Bar
pressure/
Air heater Type

Stack
Height M
materials outer/inner
shell
Insulation outside/inside
Furnace volume M3

Furnace heat kJ/M3


release rate
Efficiency %
FGD type and %
efficiency

4.3.4 Steam Turbine


Output at guarantee conditions KW
Net heat rate at guarantee conditions kJ/kWh
Manufacturer of turbine -
Number of casings no.
Last stage blade length - LP Mm

Steam bypass capacity T/hr

Annex D, Exhibit 6-page 9


DATA SHEETS
Description Bidder’s Response:
4.3.4 Condenser
Type of condenser
Tube size and materials mm/type
Circulating water quantity for condenser M3/hr
Circulating water quantity for auxiliary M3/hr
cooling water
bar
Condenser Working Pressure
o
Circulating water temperature rise in C
condenser at base load of steam turbines
o
(same as above, with max. allowable C
number of tubes plugged)
4.3.5 Feedwater and Condensate System
Boiler feed Pumps and drivers:
Number
Manufacturer
Type
Capacity M3 /s
Head M
Power or steam consumption/conditions kW/T/hr

Condensate Pumps
Number
Manufacturer
Type
Capacity M3 /s
Head M

Feedwater heaters number


Type
Tube size and materials mm/nam
e
4.3.6 Circulating Water System
C.W. Pumps:
Number

Annex D, Exhibit 6-page 10


DATA SHEETS
Description Bidder’s Response:
Manufacturer
Type
Capacity M3 /s
Head M

CW Piping:
Design pressure
Design temperature
Material

4.3.7 Water Treatment Plant


Primary Treatment:
a. Manufacturer
b. Type
c. Number of streams
d. Rated capacity of each stream M3 /d

Demineralized Water Treatment


a. Manufacturer
b. Type
c. Number of Streams
e. Rated Capacity of Each Stream M3/d
f. Regeneration time/frequency
4.3.8 Storage Tanks
a. Raw Water - Number and Capacity T
b. Demineralised Water-Number and T
Capacity
c. Acid T
d. Caustic T

4.3.9 Generator & Accessories

Generator
a. Manufacturer
b. Rated voltage at generator terminal (kV)

Annex D, Exhibit 6-page 11


DATA SHEETS
Description Bidder’s Response:
c. Frequency range (Hz)
d. Rated Power factor
e. Reactance Data
f. Insulation class
g. Type of cooling
h. Design standard
i. Efficiency
j. Reactive capability curve
k. Saturation & synchronous impedance
curves
l. Vee curves
m. Short circuit ratio

Excitation System
a. Type
b. Current rating and voltage
c. Excitation IEEE Model

Neutral Earthing Equipment


a. Transformer
• Rating (kVA/sec)
• Voltage ratio
• BIL (kV)
b. Secondary resistor
• Type
• Resistance (ohms)
• Current rating (A)
Generator Circuit Breakers
a. Manufacturer
b. Type/Model
c. Rated voltage (kV)
d. Rated Frequency (Hz)
e. Continuous Current rating (kVA)
f. Maximum Interrupting current rating
(kA)

Annex D, Exhibit 6-page 12


DATA SHEETS
Description Bidder’s Response:
g. Maximum interrupting time (cycles)
h. Maximum closing time (cycles)
i. BIL rating
j. Interrupting medium

4.3.10 Emergency Diesel System (safe shut


down)
a. Type
b. Manufacturer
c. Capacity (kW)

4.3.11 Generator Step-up Power Transformers


General
Quantity
Manufacturer
Type
Applicable Standards

Design Data
Voltage ratio
Maximum Continuous Rating (MVA)
Rated temperature rise (oC)
Bushing Material
Basic Insulation Level:
a. Of HV winding (kV)
b. Of neutral of HV winding (kV)
c. Of LV winding (kV)
d. Of neutral of LV winding (kV)
On line tap changers
and no./ratio of taps
Total power requirements of auxiliary
equipment (kW)
Power factor
P. U. Impedance
Insulation class

Annex D, Exhibit 6-page 13


DATA SHEETS
Description Bidder’s Response:
Type of cooling
Type of connection
a. Low voltage winding
b. High voltage winding
Design standard
4.3.12 Medium Voltage Switchgear
a. General
• Manufacturer
• Applicable standards
b. Design Data
• Rated/nominal voltage of
switchgear (kV)
• Rated insulation level, low
frequency/
impulse (kV/kV)
• Momentary (asymmetrical) current
rating (kA)
• Breaker interrupting time
• Breaker closing time
• Bus material and rating
• Type of enclosure
• Breaker type
• Short time current rating, 3 sec.
4.3. 13 Startup Fuel Handling and Storage
a. Fuel Handling Equipment
• Type & Capacity Mton/hr

• Metering System
• Chemical Analysis (if any)
b. Off-loading area
• Number of barges, trucks
offloading & docked/parked
c. Storage Facility
• Number of Tanks, Type, and
Capacity
• Total Capacity of Tanks Mton

Annex D, Exhibit 6-page 14


DATA SHEETS
Description Bidder’s Response:
• Total Capacity of Tanks (at 100% Days
TMCR)

Annex D, Exhibit 6-page 15


4.3.14 Boiler Performance Data
Provide the following performance data for each boiler:

Data (or page # or annex on which


Boiler Performance Data
to find the data)
To include, but not limited to:
a. Water and steam temperature profile
through the boiler
b. Steam flow versus turbine load
c. Gas side pressure drop versus turbine load
d. Startup diagram (cold, warm and hot)

5 Drawings

Provide the following drawings, diagrams, schematics and descriptions:

Data (or page # or annex


on which to find the
data)
5.1 Outline drawings of boiler and steam turbine generator
5.2 Plant Layout
a. Overall site layout drawing showing principal
dimensions, major plants, buildings, roads, coal
handling, etc.
b. Layout and elevation drawings of proposed plant
arrangement in steam turbine area
c. Layout and elevation drawings of proposed plant
arrangement in boiler area
d. Layout and elevation drawings of proposed plant
arrangement of coal unloading, storage and handling
5.3 Mechanical
a. Process flow diagrams for Startup Fuel, condenser
and auxiliary equipment, cooling systems, steam and
condensate systems, coal handling, demineralization
plant, heat and mass balance diagram
5.4 Electrical
a. Electrical single line diagrams (showing equipment
ratings) for switchyard and overall plant electric
system including connections for emergency diesel
b. Principal Protection/Metering block diagram for

Annex D, Exhibit 6-page 16


Data (or page # or annex
on which to find the
data)
generators, generator station transformers)
c. One line block diagram for each battery and UPS
system
d. One line block diagram for energy metering system
e. Description of philosophy for sizing of station
service transformers, switchgear, battery and UPS
system
f. Description of generator and excitation systems with
block diagrams
g. General arrangement drawings of generator main
connections showing generator, generator step-up
transformers and excitation transformers
h. Block diagram of proposed Distributed Control
System (DCS) configuration showing all major
components of the Plant

Annex D, Exhibit 6-page 17


i. Brief description of the DCS, including the
capabilities, features provided, redundancy, firmware
and software provided, communication links etc. to
other SCADA systems; the latter requirements will be
agreed with the National Load Dispatching Center
j. Basic schematics of the power block and common
auxiliary plant control systems
k. Control room layout

6 Performance and Correction Curves

Provide correction curves for the following conditions utilizing Tables 6.1 through 6.5 as
appropriate:

a. Plant correction curves for cooling water Table 6.2


temperature*
b. Plant correction curves for ambient air Table 6.1
temperature *
c. Turbine generator output versus grid Provide page number or location of data
frequency and grid voltage variation*
d. Inlet steam flow versus turbine generator Provide page number or location of data
output (no correction will be allowed for
this)
e. Turbine generator output versus power Provide page number or location of data
factor
f. Plant correction curves for barometric Table 6.3
pressure*
g. Plant correction curves for variation in Table 6.4
humidity*
h. Plant correction curves for sea level* Table 6.5

*Correction curves are used for:


Evaluation phase
 Technical review - continuity

PPA/Operations
 Initial Net Dependable Capacity test, corrections for Site Reference Conditions
 Six-monthly Net Dependable Capacity tests, corrections for Site Reference
Conditions

Table 6.1 - Contract Capacity Air Temperature Correction Curve

Annex D, Exhibit 6-page 18


Ambient Air Temperature Correction Factor,C1
____oC (Max. Temperature) [ ]
Insert temperatures as appropriate [ ]
40 [ ]
38 [ ]
36 [ ]
34 [ ]
32 [ ]
30 [ ]
28 [ ]
27 1.0
26 [ ]
24 [ ]
22 [ ]
20 [ ]
18 [ ]
16 [ ]
14 [ ]
12 [ ]
10 [ ]
8 [ ]
…..
C (Min. Temperature) [ ]

Table 6.2 Contract Capacity Water Temperature Correction Curve

Cooling Water Temperature Correction Factor,C6


o
___ C (Max. Temperature) [ ]
Insert temperatures as appropriate [ ]
34 [ ]
33 [ ]
32 [ ]
31 [ ]
30 [ ]
29 [ ]
29.2 1.0

Annex D, Exhibit 6-page 19


28 [ ]
27 [ ]
26 [ ]
25 [ ]
24 [ ]
23 [ ]
22 [ ]
21 [ ]
20 [ ]
19 [ ]
18 [ ]
17 [ ]
16 [ ]
15 [ ]
14 [ ]
o
…… C (Min. Temperature) [ ]

Table 6.3 - Contract Capacity Barometric Pressure Correction Curve

Barometric Pressure mbar Correction Factor,C2


____ (Max. mbar) [ ]
Insert pressures as appropriate [ ]
1030 [ ]
1020 [ ]
1015 [ ]
_____ (annual average) 1.0
1010 [ ]
1005 [ ]
1000 [ ]
995 [ ]
990 [ ]

Table 6.4 Contract Capacity Humidity Correction Curve

Annex D, Exhibit 6-page 20


Relative Humidity % Correction Factor, C3
100% (Max. Relative humidity) [ ]
99 [ ]
98 [ ]
97 [ ]
96 [ ]
95 [ ]
94 [ ]
93 [ ]
92 [ ]
91 [ ]
90 [ ]
89 [ ]
88 [ ]
87 [ ]
86 [ ]
85 [ ]
84 [ ]
83 [ ]
82 [ ]
81 [ ]
80 [ ]
75 1.0
70 [ ]
65 [ ]
60 [ ]
55 [ ]
50 [ ]

Table 6.5 - Contract Capacity Sea Level Correction Curve

Sea Level Meters Correction Factor,C7


____Meters (Max. Elevation) [ ]
+1.5 [ ]
1.0 [ ]

Annex D, Exhibit 6-page 21


+0.5 [ ]
0.0 [ ]
-0.5 [ ]
-1.0 1.0
-1.5 [ ]
-2.0 [ ]

7 Performance Test Procedures

Provide an overview of Bidder’s proposed performance test procedures.

8 Project Summary Data

Each Bidder shall provide the following information.


8.1 Type of plant
Describe technology used and ratings.
8.2 Startup Fuel
Describe the startup fuel supply system between the delivery point of the startup fuel and
the storage and the boiler and any other equipment in the Plant that will use this startup
fuel.
8.3 Coal
The Project Company will supply the coal for the Plant from domestic sources only and
in accordance with Appendix S of the PPA.

The following information should be provided for the worst and reference coal:
(A) Coal ultimate analysis per ASTM D3176
(B) Coal proximate analysis per ASTM D3172
(C) Higher Heating Value (Must be between 4,000 and 5,000 kCal/kg)
(D) Hardgrove index
(E) Ash fusion temperature
(F) Storage capacity
(G) Annual coal usage at 85% capacity factor
(H) Type and number of coal delivery ships (Note: jetty to be able to handle
vessels with draft of 7 m or greater)
(I) Ship unloading system (Note: minimum vessel capacity to be 14,000 dwt)
(J) Ship unloading time

Annex D, Exhibit 6-page 22


(K) Coal handling, storage and reclaim system operation
8.4 Standards applied to Project design and equipment selection.
(Please refer to Section 3.4.1 of Annex C: Functional Specifications).
All designs, materials, and equipment will conform to the requirements of Section 3 of
Annex C: Project Functional Specifications. The codes and standards that follow will be
used where applicable to the equipment, material, components, or construction practices.
All work described will be designed, constructed, tested and installed in accordance with
the latest edition of the following list of codes and standards (Lists below to be completed
by the Bidder). In order not to create possible duplication or different interpretations, the
names and initials of the respective entities must not be translated from their original
language.
In the event conflicts arise between the codes and standards of practice described herein
and codes, laws, rules, decrees, regulations, standards, etc., of the locality where the
equipment is to be installed, the codes and standards of practice described herein will
govern. In the event conflicts arise between any of the codes and standards described
herein, the more stringent section of the applicable codes will govern. Each of the
equipment and designs will comply with one or more of the above codes, but none will
necessarily comply with all the listed standards.
8.4.1 General design codes
(List)

8.4.2 Civil engineering design criteria, standards and codes


(List)

8.4.3 Mechanical engineering design criteria, standards and codes


(List)

8.4.4 Control and electrical engineering design criteria, standards and codes
(List)
8.5 List of Participants
Check all of the following that have been selected:
Status (letter of
Participant Check if Name intent,
Selected contract, etc.)
EPC Contractor
Environmental
Consulting Firm
Fuels Manager
Operations &
Maintenance
Contractor

Annex D, Exhibit 6-page 23


Other (describe)

8.6 Attach the following data clearly labeled


Individual data should be numbered to correspond to the question they are addressing,
e.g., data submitted in response to the request in Section 8.6.1 should be labeled "Annex
D Exhibit 6, Section 8.6.1".
8.6.1 Describe the equipment supplier’s(s’) experience(s) with the specific
models that will be used for each major piece of equipment.
8.6.2 Describe the equipment procurement plan. Provide information
concerning how commitments to purchase major equipment items relate to
the schedules for acquiring permits and financing. Provide information
concerning any equipment production space that has been reserved with
suppliers of major components. Note that all equipment must be new.
8.6.3 Provide drawings of the Plant's Site layout and major equipment
arrangement. Identify the size of major components and describe areas of
key equipment redundancy. Identify the size of each area (in m2) required
for the generating station, coal storage, coal handling, and startup fuel
handling facilities.
8.6.4 Provide any additional technical information that is available (e.g.,
drawings, specifications, etc.).
8.6.5 Provide preliminary generator capability curves and specify the reactive
capability and control strategies for the Project. Provide final curves at
least 90 days before commissioning. Also describe any voltage or
equipment limitation affecting the PLN Java-Bali Load Dispatching
Center's ability to control the reactive output.
8.6.6 Provide a complete heat and material balance diagram and flow sheet.
These diagrams should include sufficient detail to allow PLN to verify the
accuracy of the representations. Provide the information for full load and
seventy five percent (75 %) of full load, and using performance guarantee
conditions listed in Table 9.3-2: “Site Reference Conditions for
Performance Guarantees” and assuming the Higher Heating Value (HHV)
of the coal.
8.6.7 Provide descriptions of the fire protection systems to be used including
those within any equipment enclosures, any buildings and all general Site
facilities.
8.6.8 Provide descriptions of equipment enclosures (including buildings) and
what protection against the weather will be provided to major machines
during periods of maintenance.
8.6.9 Provide a description of the overall control system used for the Project
equipment, including all local, centralized and remote controlling

Annex D, Exhibit 6-page 24


including the proposed means to communicate with the Dispatching
Center to follow its instructions.
8.6.10 Describe how the Plant will be started, including the expected amount of
time to synchronize each Unit, starting with the equipment in “cold”,
“warm” and “hot” conditions. State the maximum MVA and MW
required from the PLN system to start the Plant.
8.6.11 Provide a description of the monitoring and protection systems to be used
on major equipment including the prime movers, generators, transformers,
substations and interconnection lines. Describe how the protection
systems will be coordinated with the corresponding PLN installations.
8.6.12 Provide a description of the design of the condenser and auxiliary
equipment cooling, make up, potable and waste water facilities and
including intake and outfall installations. Provide a description of the
water plan for the project including average, minimum, and maximum
water intake and discharge, destination, temperature, quantity and quality
of plant discharge water; and individual chemicals used with estimated
consumption rates. Describe the treatment and/or disposal of discharge
waters resulting from periodic cleaning of the equipment.
8.6.13 Describe the proposed methods to dispose of ash, scrubber wastes, other
solid wastes of the Plant.
8.6.14 Describe provisions for diminishing the probability of fires and
contamination of the environment during the handling and storage of coal
and the startup fuel (spill prevention control). Describe the proposed
methods to measure the Startup Fuel and its calorific content.
8.6.15 Provide design values for seismic, wind and any other data (Please refer to
Table 9.3-1: Site Reference Conditions for Design and Performance
Guarantees.
8.6.16 Describe the control method for boiler steam temperature control.
8.6.17 Describe the approach to coal handling, including ship unloading, transfer,
stacking/storage and reclaiming. If coal is supplied from different sources
and requires blending, describe your plans for blending.

9 Environmental and Site Reference Data

9.1 Answer the questions below and, if available, attach a detailed environmental
impact study that includes answers to the following questions:
9.1.1 Describe the technology to be used to maintain air emissions and ambient
air quality within the specified guidelines.
9.1.2 Describe control devices (if applicable), and proposed monitoring systems
and procedures.

Annex D, Exhibit 6-page 25


9.1.3 Provide information concerning the containment measures planned for the
Project's fuels and hazardous substances storage areas.
9.1.4 Describe the solid waste management systems including ash and FGD.
9.1.5 Describe the environmental standards to which you are committed and
your technology choices to meet those standards. Identify those standards
which are the requirements of your Lenders.

9.2 Address the following issues as they relate to design and construction of the
Project
9.2.1 Describe the proposed timetable to carry out the environmental impact
assessment meeting AMDAL requirements if you are selected as the
Winning Bidder. Indicate the scope of the AMDAL and the methodology
to be used to perform this study and to present its findings and
recommendations (scope to include areas identified in 9.2.2 to 9.2.9).
State also the commitment of the Project Company to carry out the
suggestions and recommendations of the study, including possible design
modifications.
9.2.2 Threatened and endangered species assessment and mitigation.
9.2.3 Cultural and archeological impact (natural, national and state landmarks,
historical status and other historical landmarks, graveyards, burial ground
proximity to nearby parks and other recreational areas).
9.2.4 Noise impact analysis and mitigation: describe technology to be employed
or actions to be taken to reduce noise. Provide the guaranteed maximum
sound levels for the plant at all of the plant boundaries and at any plant
interfaces with other entities including residential, industrial and others.
Provide the guaranteed sound level for the plant at one meter from the
equipment enclosures, which should not exceed 85 dB (A). The
measurement shall not include the existing background noise.
Also provide the guaranteed sound level at the station boundary, which
shall not exceed 70 db (A).
9.2.5 Indicate the height of the proposed stack for the Plant and indicate reasons
for this selection (could include "good engineering practices", dispersion
of pollutants, height of other exhaust stacks in the immediate vicinity,
etc.). Why does the Bidder feel this height is adequate from an
environmental standpoint? Note that this height selection could be
changed by the environmental impact assessment (AMDAL) to be carried
out by the Winning Bidder.
9.2.6 Land use impact mitigation techniques, including the effect on nearby
inhabited and agricultural areas.
9.2.7 Hazardous waste - type generated and disposal.
9.2.8 Solid waste - type generated and disposal.

Annex D, Exhibit 6-page 26


9.2.9 With regard to projected air emissions, please fill out the following table
for each Unit when fired with the primary fuel, coal. Provide similar
information during the use of startup fuel.

Table 9.2: Air Emissions

AIR EMISSIONS LEVELS


Percent
Removal
Emission Efficiency 100% Capacity 75% Capacity 50% Capacity
at 100%
Capacity
NOx Ppmv ppmv ppmv
lb/hr Lb/hr lb/hr
g/kJ g/kJ g/kJ
3
mg/m Mg/m3 mg/m
3

CO Ppmv Ppmv ppmv


lb/hr Lb/hr lb/hr
lb/kJ Lb/kJ lb/kJ
mg/m3 Mg/m3 mg/m
3

SO2 Ppmv Ppmv ppmv


lb/hr Lb/hr lb/hr
lb/kJ Lb/kJ lb/kJ
mg/m3 Mg/m3 mg/m
3

Air Toxics (list)

Particulates (PM-10) Ppmv Ppmv ppmv


lb/hr Lb/hr lb/hr
lb/kJ Lb/kJ lb/kJ
mg/m3 Mg/m3 mg/m
3

Notes: 1. Capacity is defined as the total capacity of one Unit as commissioned.


2. ppmv is defined as volumetric parts per million at 6% O2.
3. lb/hr is defined as pounds per hour.
4. g/kJ is defined as grams per kilo Joule.

Annex D, Exhibit 6-page 27


5. mg/m3 is defined as milligrams per cubic meter
6. Provide total emissions for all air toxics on an aggregate basis, not on an
individual basis. Air toxic pollutants are described on the US EPA Web page:
http://www.epa.gov/ttn/atw/allabout.html.

9.3 Site Data

9.3.1 Provide the following information for both the Site and as applicable, for
the Special Facilities Site and tie-in point

SITE DESCRIPTION

Describe the Site location, size and general layout, access to the Site, general topography, marine
conditions and power supply during construction. Describe planned jetty and its associated
accommodations for coal and equipment delivery during construction. Describe plans for
accommodating construction work force, including requirement for camp, if any.

Describe location and route and topography of Special Facilities Site with regard to the Site and
its distance from the existing 500 kV transmission system. Describe location of tie-in point at
the existing 500 kV transmission system.

SITE REFERENCE CONDITIONS

The Project Company will provide the following Site ambient conditions for the design and
performance guarantees of the Plant and will provide the source material used to develop the
data for review by PLN:

Table 9.3-1: Site Reference Conditions for Design

Parameter Units Value


o
Annual Average Ambient Dry C
Bulb Temperature
o
Maximum Ambient Dry Bulb C
Temperature
o
Minimum Ambient Dry Bulb C
Temperature
Annual Average Relative %
Humidity
Maximum Relative Humidity %
o
Annual Average Sea Water C
Temperature
o
Maximum Sea Water Temperature C
o
Minimum Sea Water Temperature C
Annual Average Barometric mbar
Pressure
Annex D, Exhibit 6-page 28
Elevation meters
Location Sea Coast
Minimum/Maximum Seawater meters
Level
Seismic Criteria
Intensity
Magnitude
Normal Maximum Wind Speed m/s
Average Annual Rainfall mm
Maximum Rainfall Rate mm/day mm

Table 9.3-2: Site Reference Conditions for Performance Guarantee

Parameter Units Value


o
Reference Ambient Temperature C 27
for Performance Guarantee
o
Reference Seawater Temperature C 29.2
for Performance Guarantee

Reference Relative Humidity for % 75


Performance Guarantee

Reference Sea Water Level for meters (below -1.0


Performance Guarantee msl)

Reference Barometric Pressure for mbar annual average


Performance Guarantee (use
annual average)

Meteorological Conditions
Provide the hydro-meteorological data, its source and location which have been determined
during the study of Bidder’s selected Site.

Ambient Temperature
Data collected to determine Site conditions are as follows:

Annual average temperature: ………….

Average highest month temperature: ………….

Average lowest month temperature: …………..

Annex D, Exhibit 6-page 29


Absolutely lowest temperature: …………

Absolutely highest temperature ………….

Table 9.3-2: Ambient Temperature oC


Month 1 2 3 4 5 6 7 8 9 10 11 12
Average
Maximum
Minimum

Humidity
The Central Java region is a high humidity region because of its maritime
location as well as the regional characteristics

Monthly average relative humidity: ……

Monthly highest relative humidity: ……

Highest relative humidity: ……..

Table 9.3-3: Humidity data from Site (% Relative)

Month
Average
Maximum

Rainfall
Provide the statistical data being used by the Bidder for the Site including:

Yearly average precipitation: ……mm

Yearly maximum precipitation: ,,,,,,,,mm

Lowest monthly average precipitation: ……. mm

Highest monthly average precipitation: ……. mm

Highest day precipitation: … mm

Three days maximum precipitation: … mm

Three day continuous maximum precipitation: … mm

Five day continuous maximum precipitation: ……mm

Annex D, Exhibit 6-page 30


Typhoon
On average, Bidder anticipates there are……… storms per year in the Site area, typically
occurring in the months of………... [provide months].

Wind and Atmospheric Pressure


According to the statistical data collected by Bidder from…………...…[identify source], the
wind and atmospheric pressure data used for plant design include:

Table 9.3-4: Wind data from 1973 – 200. (m/s)

Month 1 2 3 4 5 6 7 8 9 10 11 12
Average
Maximum

Annex D, Exhibit 6-page 31


Atmospheric pressure
Table 9.3-5: Atmospheric pressure data (mb)

Month 1 2 3 4 5 6 7 8 9 10 11 12

Average
Max.
Min.

Hydrographical condition
Provide hydrographic condition for marine area adjacent to Site

Sea water temperature


Seawater temperature, used for cooling measured…… [provide source of data] and
correlative environmental temperature is as follows:

Table 9.3-6: Seawater temperature data (oC)

Month 1 2 3 4 5 6 7 8 9 10 11 12

Average
Maximum
Minimum

Annex D, Exhibit 6-page 32


Chemical Analysis

At the Site, seawater used for cooling the condenser(s) and auxiliary equipment has the
following characteristics, obtained by Bidder from……. [identify source]:

Table 9.3-7: Seawater Chemical Analysis


No. Analyzed items Unit Result
1 Turbidity NTU
2 Total suspended Solid mg/l
3 pH ----
4 Total Hardness Meq/l
5 Total Alkalinity: CaCO3 mg/l
6 Disolved Silica: SiO2 mg/l
7 Iron (Fe+2 +3) mg/l
8 Aluminum (Al+3) mg/l
9 Manganese (Mn+) mg/l
10 Calcium (Ca+2) mg/l
11 Magnesium (Mg+2) mg/l
12 Sodium & Potassium (Na+ + K+) mg/l
13 Chloride (Cl-) mg/l
14 Sulfate (SO4-) mg/l
15 Nitrate (NO3-) mg/l
16 Nitrite (NO2-) mg/l
17 Bicarbonate (HCO3-2) mg/l
18 Carbonate (CO3-2) mg/l
19 Hydroxide (OH-) mg/l
20 Phosphate (PO4-3) mg/l
21 Total Dissolved Solids mg/l
22 Disolved Oxygen mg/l
23 BOD mg/l
24 COD mg/l
25 Conductivity μS/cm
Note: (NA) not available

Suspended Matter
Provide statistical data, and source of information for suspended matter measured in seawater at
Central Java Site as follows.

Table 9.3-8: Statistical Data of Suspended Matter, mg/l

Time, date/
Depth (m)

Annex D, Exhibit 6-page 33


0
0,2
0,4
0,6
0,8
Bottom

Topography
Describe the topography of the Site

Site Geology
Describe the Geology of the Site

Geo-hydrological condition
Describe the geo-hydrological conditions of the Site

Seismology
Describe the seismology of the Site region and the source of information and provide the basis
for design

The Freshwater Supply Source


Desalination shall be used for the main source of make-up water. Describe the method to be
employed. Identify the sources of any other make-up water used at the Site, other than provided
through desalination.

10 Electrical Interconnection Facilities and Special Facilities

10.1 Provide the following information for the Electrical Interconnection Facilities:
10.1.1 A detailed single-line diagram from the generators to the proposed
interconnection to the 500 kV Special Facilities via the electrical
switchyard and for the Special Facilities including the tie-in point to the
existing PLN 500 kV transmission system. Identify the Point(s) of
Delivery.
10.1.2 Equipment descriptions and functional specifications of:
10.1.2.1 Generators, transformers, switchgear equipment, circuit breakers, etc.
10.1.2.2 Protective relays, current transformers, voltage transformers, etc.
10.1.2.3 Metering System
10.1.2.4 Telecommunications equipment
10.1.2.5 Control and data acquisition system

10.2 Provide the following information for the Special Facilities:

Annex D, Exhibit 6-page 34


10.2.1 A detailed single-line diagram from the interconnection with the Electrical
Interconnection Facilities to the interconnection with the existing 500kV
transmission system.
10.2.2 Description of towers including type, spacing criteria and foundations
10.2.3 Description of transmission lines including cable type, conductors per
bundle, amperage rating
10.2.4 Description of equipment in the substation including type, manufacturer,
ratings
10.2.5 Protective relays, telecommunications system, control and data acquisition,
etc.

11 Performance Data

11.1 Heat Rate Variation with Change in Load

Each Bidder shall tabulate the Specific Heat Rate (@ HHV) corresponding to the
percentages of the Plant output power levels in 1 % load increments from 100% to 40%
load in Table 11.1A below. These values will be included in Attachment A to Appendix
G as the “Shedule of Partial Heat Rates for the Plant”. The heat rate at 100% plant load
shall be the SHRcc as defined and included in Appendix G.

Table 11.1A: Adjustments to SHRcc for Plant Load Variation (based on the Contact
Capacity for the Plant)

PLANT PARTIAL LOAD HEAT PLANT PARTIAL LOAD HEAT


RATES RATES
Plant Load % of Load Heat Plant Load % of Load Heat
(MW) Rate(HHV) (MW) Rate(HHV)
(kCal/kWh) (kCal/kWh)
100 70
99 69
98 68
97 67
96 66
95 65
94 64
93 63
92 62
91 61
90 60

Annex D, Exhibit 6-page 35


89 59
88 58
87 57
86 56
85 55
84 54
83 53
82 52
81 51
80 50
79 49
78 48
77 47
76 46
75 45
74 44
73 43
72 42
71 41
40

Each Bidder shall tabulate the Specific Heat Rate (@ HHV) corresponding to the
percentages of Unit 1 output power levels in 1 % load increments from 100% to 40%
load in Table 11.1B below. These values will be included in Appendix G and used for
determination of payments for energy delivered by Unit 1 after successful completion of
Unit 1 performance tests in accordance with Section 6 of Appendix J and prior to the
Project Commercial Operation Date. The Net Dependable Capacity determined for Unit
1 during its NDC performance test shall correspond to 100% load for Unit 1 in Table
11.1B.

Table 11.1B: Adjustments to Unit 1 Specific Heat Rate for Unit 1 Load Variation (prior to
the Project Commercial Operation Date).

UNIT 1 PARTIAL LOAD HEAT UNIT 1 PARTIAL LOAD HEAT


RATES RATES
Unit 1 Load % of Load Heat Plant Load % of Load Heat
(MW) Rate(HHV) (MW) Rate(HHV)
(kCal/kWh) (kCal/kWh)
100 70

Annex D, Exhibit 6-page 36


99 69
98 68
97 67
96 66
95 65
94 64
93 63
92 62
91 61
90 60
89 59
88 58
87 57
86 56
85 55
84 54
83 53
82 52
81 51
80 50
79 49
78 48
77 47
76 46
75 45
74 44
73 43
72 42
71 41
40

11.2 Guaranteed Overall Performance of Plant

Each Bidder shall fill-in data in Table 11.2 below.

TABLE 11.2

Annex D, Exhibit 6-page 37


GUARANTEED OVERALL PLANT PERFORMANCE
Fuel: Coal; Net Power Output: 100%

Unit Plant
Description Units

Gross Output kW * *

Auxiliary Power + Losses kW * *


Step-up Transformer Losses kW * *
Total Losses kW * *
Net Power Output at high voltage
side of Generator Step-up kW * **
Transformers (Contract
Capacity)**

Net Power Output at high voltage KW * ***


side of Generator Step-Up
transformers (Guaranteed
Capacity)***
Heat Rate (HHV) to be
demonstrated during initial NDC kCal/ * ***
Tests (Guaranteed Heat Rate) kWh

Noise Level ** @ Plant boundary


db(A) ** **
Noise Level @
100 meters from major equipment db(A) * *
Noise Level @
1 meter from major equipment db(A) ** **

Particulate emissions(PM-10)** Mg/N ** **


m3
NOx Emissions @ 6% O2 for Mg/N ** **
coal at Contract Capacity** m3

SO2 Emissions** Tpd/ ** **


MWe

Annex D, Exhibit 6-page 38


(mg/N
m3 )
* Bidder shall fill in data.
** Bidder shall fill in and guarantee this value subsequent to the Project Commercial
Operation Date.*** Bidder shall fill in and guarantee this value will be achieved during the
Plant initial Net Dependable Capacity Test and the initial Plant Heat Rate Test
11.3 Agreed Values for Capacity Payments
Each Bidder shall complete Form 6: Agreed Values for Capacity Payments, including the
agreed values of Contract Capacity, Annual Allowance for Scheduled Maintenance hours,
Availability Factor, and Maximum annual kWh, each of which shall be included in Attachment
A to Appendix G of the PPA.

11. 4 Expected Plant Heat Rate at Initial Performance Testing

Provide in Table 11.4, for technical review only, the initial full load net heat rates expected to be
demonstrated during the initial performance testing of the Plant and of Unit1.

Table 11.4

Net heat rate based on HHV kCal/kWh


@ full load of the Plant

Net heat rate based on HHV kCal/kWh


@ full load of the first Unit

12 Operations and Maintenance Data

12.1 Operating Characteristics


Each Bidder shall fill in allowable generation levels and operating characteristics of the Plant as
set out below:
Table 12.1: Allowable Generation Levels

Condition Unit Plant

Maximum emergency level: capacity that


may be available during system declared MW
emergencies
Hours available

Minimum emergency level: used during


system declared emergencies MW

Annex D, Exhibit 6-page 39


Hours available

Net capability: the maximum level at which


the Plant could be dispatched during normal
system conditions MW

Most economic operating level: the operating


level at which the Plant operates most
efficiently (i.e., at the lowest net heat rate) MW

Minimum operating level: the minimum


level at which the Plant could be dispatched
during normal system conditions MW

Table 12.2 Synchronizing and Load Pick-up Times

Time to Achieve Action


Action After Shutdown:
Hot Start Warm Cold
Start Start

Synchronized (hours) * * *
Normal Ramp Rate (MW/min) * * *
Emergency Ramp Rate (MW/min) * * *
Unit at Full Load (MW) * * *
* Bidder shall fill-in Data.

12.1.1 Describe the Automatic Generation Control capability of the Plant.


12.1.2 Describe how the control will allocate the dispatch orders of increasing or
decreasing the generation level.
12.1.3 Describe how Plant and controls design will maximize efficient operation
as a base load power generating station, and in later years operate on a
cycling basis.

12.2 Maintenance
12.2.1 Annual Scheduled Outage Schedule (per Unit)
Duration (number of days):
Time of Year (season):

12.2.2 Major Overhaul Outage Schedule (per Unit)

Annex D, Exhibit 6-page 40


Duration (number of days):
Time of Year (season):
Frequency (number of years):

12.2.3 Boiler Inspection Schedule (per Unit)


Duration (number of days):
Time of Year (season):

12.2.4 Steam Turbine Inspection Schedule (per Unit)


Duration (number of days):
Time of Year (season):

Note: As a requirement of the PPA, the Project Company must agree to plan
Scheduled and Maintenance outages with PLN and accommodate any reasonable
request for revisions required by PLN.

12.2.5 Equivalent Annual Availability of the Plant:


The Bidder shall provide their annual outage plan for each Contract Year that
meets the annual Availability (AFp) factor for that year which is provided
by Bidder in Form 6 below and is defined in Appendix G to the PPA. This
plan will be included in Appendix B of the PPA.
Contract Year _____(provide table for each year of the Term of the PPA)
% Equivalent Annual Availability
% Scheduled and Maintenance Outages*
% Forced Outages
100 % Total
*Note: Describe scope of scheduled outages.

12.3 Operations and Maintenance Staff and Services


Attach the following data clearly labeled. Individual data should be numbered to
correspond to the question they are addressing; e.g., data submitted in response to Section
12.3.1 should be labeled "Exhibit 6, Section 12.3.1".
12.3.1 Operator's experience with Plant technology - provide number of unit-
years of experience with generating facilities of the same or similar
technology and size as the Plant.
12.3.2 Provide the plan for operational staffing including, but not limited to, the
number, type and responsibilities of operations personnel on each shift.
12.3.3 Provide plan of maintenance staffing including, but not limited to, the
number of permanent on-site maintenance personnel and their

Annex D, Exhibit 6-page 41


responsibilities; the personnel available for emergency maintenance and
their response times; and the personnel that will be utilized for minor and
Name of Project:

major scheduled maintenance. If contracted, specify contractor, location


and experience with this type of equipment.
12.3.4 Describe briefly procedure that will be followed for daily, weekly,
monthly and yearly maintenance programs.
12.3.5 Provide outline plans for initial and ongoing training of all plant and
support personnel, including any qualifications programs.
12.3.6 Provide brief description of plans for the purchasing and warehousing of
tools, parts and supplies.
12.3.7 Provide a major maintenance schedule

13 TRANSFER

Provide the Bidder’s approach to the Transfer of the Plant at the end of the Term meeting
the requirements of Appendix N of the PPA.

FORMS
Form 1: Operational Experience of Selected Technology
Form 2: Technology Licensing Agreements
Form 3A: Equipment Operational Experience

Form 3B: Technology Experience of Selected Steam


Generator and Steam Turbine Manufacturers
Form 4: EPC Contractor Experience
Form 5: O&M Contractor Experience

Form 6: Agreed Values for Capacity Payments

Form 1: Operational Experience of Selected Technology (Submit 3 Projects)

Annex D, Exhibit 6-page 42


Location:
Owner:
Owner’s Representative:
Location:
Telephone:
Fax:
Email:
Brief Overview of Project (Size, Technology, Cooling System, Environmental Controls,
Year Commissioned):

Unit 1
2006 2007 2008
Contract Capacity (MW)
(Net Dependable Capacity)
Availability Factor (%)
(Per Appendix G to Central Java PPA)
Energy Production (GWh)

Forced Outage Factor (%)


(Per Appendix G to Central Java PPA)
Unit 2 (if applicable)
2006 2007 2008
Contract Capacity (MW)
(Net Dependable Capacity)
Availability Factor (%)
(Per Appendix G to Central Java PPA)
Energy Production (GWh)

Forced Outage Factor (%)


(Per Appendix G to Central Java PPA)
Note: Additional Units - Bidder to provide similar information in respect to additional units, as
appropriate

Annex D, Exhibit 6-page 43


Form 2: Technology Licensing Agreements to Use and Sell Products or Technology

Bidder:
Subject of Licensing Agreement:

Parties to the Licensing Agreement:

Effective Date of Agreement:


Expiration Year (if any):
1. Describe the products and technology covered by the licensing agreements which will be
used on this project and support (if any) which is required by the party granting the
license.

2. Identify restrictions on the use of the license which would prevent the use of its products
or technology on this project.

Annex D, Exhibit 6-page 44


Form 3A: Equipment Operational Experience (One form for each key item of supply)

Key Equipment: Identify equipment and scope included in supply:


(Provide operation experience detailed
below for the equipment being
proposed for the project and identified
in Section 4.2 of this Annex D, Exhibit
6)

Manufacturer:

Brief description:
(Identify specific equipment proposed
including model or other unique
identifier, size, and rating)

Prior Experience
Project 1 Project 2 Project 3
Name of Project:

Location:

Owner:

Equipment Availability (%)


2006
2007
2008
Equipment Forced Outage
Rate (%)
2006
2007
2008

Annex D, Exhibit 6-page 45


Form 3B: Technology Experience of Selected Steam Generator/Steam Turbine Manufacturers
Provide Brief description of Steam Generator or Steam Turbine proposed:
(Identify selected manufacturer’s specific equipment proposed including model or other unique identifier,
size, and rating. Demonstrate that the Steam Generator and Steam turbine meet the 1,000MW (gross)
operational experience requirements of Section 2.2.5 of annex C)

Supplier (Manufacturer) and location

Supplier’s Prior Experience


Project 1 Project 2
Project Name

Project Location

Owner

Description of qualifying similar


equipment (technology, model
(if applicable), size, design
parameters sufficient to
determine similarity to proposed
equipment
Operating period (Years in
which equipment is in
Commercial Operation)
Equipment Availability (%)
Cumulative over Commercial
Operating Period
Equipment forced Outage Rate
(%)
Cumulative over Commercial
Operating Period
Does this Supplier require a Licensing Agreement to provide this equipment or technology?
Yes/NO____________ (If YES, provide Form 2)

Annex D, Exhibit 6-page 46


Form 4: EPC Contractor Experience

Name of Contractor:
Headquarters (Home Office):

Applicable EPC Experience:


Provide the following information for at least two coal-fired projects, each having a capacity of
at least 800 MW (gross) and each using pulverized coal (PC) technology with at least one project
using supercritical technology or ultra-supercritical technology (if ultra-supercritical is
proposed). Both projects shall be connected to the power grids in the country(ies) in which such
projects are located.

Project 1
Project Name:
Location:
Owner:
Owner’s Representative:
Location:

Telephone:
Fax:
Email:
Technology:
Unit Size:
Project Type (Yes/No)
(IPP performed on lump-sum turnkey basis utilizing project finance)
Commercial Operation Date (Month/Year of Each Unit):
(at least 3 years of commercial operation)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
2006 2007 2008
Availability (%)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
Fixed Outage (%)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
Project is connected to the national power grid: (Yes/No)

Annex D, Exhibit 6-page 47


Project 2
Project Name:
Location:
Owner:
Owner’s Representative:
Location:

Telephone:
Fax:
Email:
Technology:
Unit Size:
Project Type (Yes/No)
(IPP performed on lump-sum turnkey basis utilizing project finance)
Commercial Operation Date (Month/Year of Each Unit):
(at least 3 years of commercial operation)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
2006 2007 2008
Availability (%)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
Fixed Outage (%)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
Project is connected to the national power grid: (Yes/No)

In addition, the EPC Contractor must provide evidence of having successfully constructed
at least two (2) thermal power projects (of any size and technology) in a country other than
where the EPC contractor is domiciled, at least one of which projects shall have been an
IPP. If the projects identified above do not meet the location and IPP requirement, please
provide details of the projects which meet these requirements.

Annex D, Exhibit 6-page 48


Project 1
Project Name:
Location:
Owner:
Owner’s Representative:
Location:

Telephone:
Fax:
Email:
Technology:
Unit Size:
Project Type (Yes/No)
(IPP performed on lump-sum turnkey basis utilizing project finance)
Commercial Operation Date (Month/Year of Each Unit):
(at least 3 years of commercial operation)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
Project 2
Project Name:
Location:
Owner:
Owner’s Representative:
Location:

Telephone:
Fax:
Email:
Technology:
Unit Size:
Project Type (Yes/No)
(IPP performed on lump-sum turnkey basis utilizing project finance)
Commercial Operation Date (Month/Year of Each Unit):
(at least 3 years of commercial operation)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)

Annex D, Exhibit 6-page 49


Form 5: O&M Contractor Experience

Name of Contractor:
Headquarters (Home Office):

Applicable O&M Experience:


Provide the following information for at least two coal-fired projects, each having a capacity of
at least 800 MW (gross) and each using pulverized coal (PC) technology with at least one project
using supercritical technology (or ultra-supercritical technology ifultra-supercritical is proposed).
Both projects shall be connected to the power grids in the country(ies) in which such projects are
located.

Project 1
Project Name:
Location:
Owner:
Owner’s Representative:
Location:

Telephone:
Fax:
Email:
Technology:
Unit Size (MW) (gross):
(Yes/No)

Commercial Operation Date (Month/Year of Each Unit):


(at least 3 years of commercial operation)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
2006 2007 2008
Availability (%)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
Fixed Outage (%)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
Project is connected to the national power grid: (Yes/No)

Annex D, Exhibit 6-page 50


Project 2
Project Name:
Location:
Owner:
Owner’s Representative:
Location:

Telephone:
Fax:
Email:
Technology:
Unit Size:
Commercial Operation Date (Month/Year of Each Unit):
(at least 3 years of commercial operation)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
2006 2007 2008
Availability (%)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
Fixed Outage (%)
Unit 1
Unit 2 (if applicable)
Unit 3 (if applicable)
Contract Performance: For each Project cited above:
1. Have O&M contract(s)(if applicable) for any of the cited projects been terminated or suspended 1.(Yes/No)
as a result of a default by the O&M Contractor?
2. Have penalties or liquidated damages been paid under any power purchase agreement for any
of the cited projects where such penalties or liquidated damages exceed fifteen percent (15%) of
2.(Yes/No)
the total annual capacity payments payable in respect of the project in question in any given year
due to O&M contractor performance?
3. Have any material infringements of applicable environmental and/or occupational health and 3.(Yes/No)
safety laws or regulations occurred at any of the cited projects?

Annex D, Exhibit 6-page 51


Form 6: Agreed Values for Capacity Payments

CONTRACT CONTRACT YEAR CC MHL SO AFp


YEAR PERIOD (MW) (MWh/hr) (hr/Plant) (%)
1
2
3
4
5
6
7
8
9
Same
10 value as
11 for
12 Contract
Year 1
13
14
15
16
17
18
19
29
21
22
23
24
25
Note: Terms used in this Form are defined in Attachment A to Appendix G

Annex D, Exhibit 6-page 52


Central Java IPP Request for Proposals (“RFP”)

ANNEX D – EXHIBIT 7: ADDITIONAL SUPPORTING DATA

1.0 Bidder shall provide the following information for each participant in the consortium
comprising the Bidder, as approved by PLN subsequent to the Consortium Formation
Date.

 Name and address of each member of the consortium, starting with the designated
Lead Member(s)
 Legal status of each member (e.g. corporation)
 Country of registration/incorporation
 Name of Authorized Representative for this project and contact information (i.e.
address, telephone and facsimile numbers, etc.)
 Percentage of equity contribution by each member. If percentage of share
allocation is different than the percentage of equity contribution, please also
provide details on percentage of share allocation

Notwithstanding the above, any change to the Bidder’s Lead Member(s), any Committed
Shareholder or any Other Shareholder of a consortium without the approval of PLN other
than those permitted under the RFP and the Sponsors Agreement may result in a Bidder’s
Proposal being deemed non-responsive.

2.0 If there is any adverse change in the information submitted during the Pre-Qualification
Process and up to the Consortium Formation Date with respect to the financial condition
or qualification of any member participating in this Proposal, please provide details.

3.0 Provide to the extent possible, the details of each organization(s) and project manager(s)
who will provide the services listed below, along with its name, address, scope of supply
of services, amount of subcontract, relevant experience, and qualifications. (Any standard
printed material may be included as an attachment.)

 Financial advisor/arranger
 Legal advisors, local and foreign
 Turnkey construction contractor
 Operation and maintenance contractor
 Environmental consultant
 Fuels manager
 Engineer for the Project Company (Owner’ engineer)
 Insurance advisor

4.0 Provide an outline description of the insurance coverages to be put into effect by the
Project Company during the term, including the amounts for which insurance will be
purchased and name of the potential insurers.

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX D – EXHIBIT 8: BIDDER'S PROJECT DEVELOPMENT


SCHEDULE

1.0 The Bidder shall provide its detailed Bidder’s Project Development Schedule which
should be in accordance with Section 3.1 (Project Development Schedule) of the RFP
(Instructions to Bidders).

1.1 The Bidder’s Project Development Schedule shall be submitted in a Pert-CPM


network format which shall address all the milestones for financing, engineering,
procurement, shipping, construction activities, etc. necessary to demonstrate a
complete and accurate knowledge of the Project, as well as knowledge of the
procedures and prevailing conditions in Indonesia.

1.2 For all milestones, each Bidder must specify the day, month and year for
commencing and completing the milestone. Any item that a Bidder believes is not
applicable to the Project must be so marked with a brief explanation as to why the
Bidder believes it is not applicable. This list is not intended to be inclusive, but
rather to include appropriate milestones to allow PLN to evaluate Proposals. It is
the Bidder’s sole responsibility to identify and complete all the appropriate
milestones necessary for the completion of its Project whether included in the
Bidder’s Project Development Schedule or not. This includes the identification and
acquisition of all necessary permits.

(Bidders are to include their Pert-CPM Project Schedule as back-up to the


Milestone Schedule below)

1.2.1 Milestone Schedule

Description Number of Calendar days from


issuance of Letter of Intent
Start Complete
A. Issuance of Letter of Intent 0 0
 Signing of Project
Agreements
C. Financial Closing
 Finalize Loans and
Investment Agreements with
lenders and investors.
 Financing Date
D. Construction
 Procurement of major
Equipment
 Foundation
 Major Equipment Installation

Annex D
Central Java IPP Request for Proposals (“RFP”)

Description Number of Calendar days from


issuance of Letter of Intent
Start Complete
 Coal Receiving Facilities
 Electrical Interconnection
 Provisional Acceptance Date
 Start-up and testing for Unit 1
commissioning
 Unit 1 commissioning
 Start-up and testing for Unit 2
commissioning
 Unit 2 commissioning
 Start-up and testing for the
Plant
 Project Commercial Operation
Date (as defined in the PPA)

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX D – EXHIBIT 9: INITIALED FINAL PROJECT AGREEMENTS


(PPA and Sponsors Agreement)

(To be submitted by Bidders with every page initialled)

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX D – EXHIBIT 10: PROJECT SPONSOR’S STAFFING PLAN

1 Sponsor’s Proposed Home Office (Off-shore) Organization.

The Sponsor shall submit a detailed Organization Chart showing its Home Office
Management Organization (off-shore) and its interface with the Site (On-Shore)
Organization. This Organization Chart shall designate the authorized representative(s),
and key personnel not specifically designated to the Project will be so identified on the
Organization Chart. The chart shall be supplemented by a narrative outline which
indicates the duties, the functional responsibilities, and the designated authority of each
member of the Home Office Management Organization. Contractor Key Personnel and
Contractor Authorized Representative(s) shall include but not be limited to the following:
(A) Overall Project Management
(B) Home Office Manager
(C) Responsible Officer/Director
(D) Engineering Functions
(E) Procurement, Traffic and Vendor Surveillance
(F) Construction Management
(G) Planning and Scheduling
(H) Quality Program Management
(I) Accounting
(J) Production Manager

2 Sponsor’s Proposed Site (On-shore) Organization.

The Sponsor shall submit a detailed organization chart showing its proposed Site (on-
shore) organization, which will be responsible for the execution of the construction
works. All authorized Contractor Representative(s) and Contractor Key Personnel shall
be so designated on the organization chart. Specifically, the Sponsor’s organization chart
must indicate the key personnel who will be responsible for performing the following
functions:
(A) Project Management
(B) Engineering Functions
(C) Procurement of materials; traffic and logistics
(D) Supervision of Construction
(E) Planning and Scheduling
(F) Accounting and Commercial Functions

Annex D
Central Java IPP Request for Proposals (“RFP”)

This chart shall be supplemented by a narrative outline that indicates the duties, the functional
responsibilities and designated authority of each member designated on Sponsor’s Site
organization chart.

Annex D
Central Java IPP Request for Proposals (“RFP”)

ANNEX E: PRICE PROPOSAL FORM


To:


Chairman of Central Java CFPP IPP
Procurement Committee

PT PLN (Persero)
Main Building 13rd floor
Jalan Trunojoyo Blok M I/135Kebayoran Baru
Jakarta 12160
Indonesia

From: [insert name of Bidder]

1. CONTRACT CAPACITY FOR ALL CONTRACT YEARS

Contract Capacity = ______________ kW

Must be identical to the value provided in Bidder’s Administrative and Technical Proposal, Annex
D – Part VI

2. COMPONENTS OF TARIFF

I. Component A: CCR (in USD/kW/year)

Value in words (USD/kW/year) to four (4) decimal places


CCR Years 1 to 6
CCR Years 7 to 12
CCR Years 13-25

II. Component B: FOMR (in USD/kW/year)

Value in words (USD/kW/year) to four (4) decimal places


FOMR Years 1 to 25

Annex E, page 1
Central Java IPP Request for Proposals (“RFP”)

III. Component D: VOMR (in USD/kWh)

Value in words (USD/kWh) to four (4) decimal places


VOMR Years 1 to 25

IV. Component E: CCRT (in USD/kW/year)

Value in words (USD/kW/year) to four (4) decimal places


CCRT Years 1 to 6
CCRT Years 7 to 12
CCRT Years 13-25

ENERGY CHARGE RATE

V. Specific Heat Rate at Contracted Capacity (SHRcc)

As provided in Bidder’s Administrative and Technical Proposal, Annex D – Part VI

Assumed coal price = USD 60/tonne


Assumed heating value (HHV) = 4,500 kcal/kg

Annex E, page 2
Central Java IPP Request for Proposals (“RFP”)

ANNEX F: INTENTIONALLY BLANK

Annex F
Central Java IPP Request for Proposals (“RFP”)

ANNEX G: DRAFT FORM OF GOVERNMENT SUPPORT LETTER


(To be provided separately)

Annex G
Central Java IPP Request for Proposals (“RFP”)

ANNEX H: DRAFT POWER PURCHASE AGREEMENT (“PPA”)


(Provided separately)

Annex H
Central Java IPP Request for Proposals (“RFP”)

ANNEX I: BIDDING CONSORTIA


All capitalized terms used herein and not defined in the RFP shall have the same meaning
ascribed to them in the Pre-Qualification Document

1 CONSORTIUM FORMATION

1.1 Qualified Applicants who wish to become eligible to submit a


Proposal must submit to PLN the composition of their bidding
consortium in the form provided in Annex J by no later than the
Consortium Formation Date.
1.2 Only bidding consortia formed by Qualified Applicants that meet
the consortium criteria specified in this Annex I (“Bidder”) will be
eligible to submit Proposals.
1.3 Changes to a Bidder’s consortium requested by a Bidder after the
Consortium Formation Date and before the Bid Submission Date
will require the express written approval of PLN and such
approval may be granted under exceptional circumstances and
only if the qualification criteria set forth in this RFP and the Pre-
Qualification Document continue to be met.
1.4 Lead Members and Committed Shareholders will be required to
retain a minimum ownership of the Project Company throughout
the lock-in period specified in the Sponsors Agreement.
1.5 Qualified Applicants (whether consortia or individual) may add
new members to their consortia on or before the Consortium
Formation Date, subject to the following limitations:

1.5.1 No changes in the members of a Qualified Applicant are


permitted which would result in either: (a) a change to the Lead
Member(s) without the prior written approval of PLN; or, (b) the
failure by the Qualified Applicant to meet any of the criteria set out
in Section II-H.2 through Section II-H.6 of the Pre-Qualification
Document;

1.5.2 if any such new member is a Lead Member of another
Qualified Applicant, the inclusion of such new member in the
consortium to be formed is subject to the prior written approval of
PLN and to the provisions of Section 4.1.7.

1.5.3 Committed Shareholders and Other Shareholders may be
added to any individual or consortium Qualified Applicant,
provided that any such new member meets the Legal Criteria set
forth in Section 3 below. For the avoidance of doubt, unsuccessful
Annex I, page 1
Central Java IPP Request for Proposals (“RFP”)

Applicants from the Pre-Qualification Process may be proposed as


Committed Shareholders or Other Shareholders
1.5.4 If a Qualified Applicant that qualified pursuant to Section
II-G.5.4 of the Pre-Qualification Document does not include a
Lead Member who registered for the Pre-Qualification Process in
its own name, such Qualified Applicant shall be required to
include in its proposed consortium as Committed Shareholder or
Other Shareholder at least one excluded member who did register
in its own name.

1.5.5 A Qualified Applicant that was notified by PLN as
conditionally qualified in its pre-qualification notification pursuant
to Section II – G.5.9 of the Pre-Qualification Document must
either: (i) meet the requirements communicated by PLN in its pre-
qualification notification to such conditionally Qualified
Applicant, or (ii) include in its consortium at least one other
member that meets the requirements communicated by PLN in its
pre-qualification notification to such conditionally Qualified
Applicant.
1.5.6 Lead Members, Committed Shareholders and Other
Shareholders must evidence an intent to hold an aggregate of 100%
of the equity in the consortium as of the Consortium Formation
Date, subject to the following conditions:
1.5.6.1 A Lead
Member must evidence an intent to hold at least 20% of the
equity in a consortium;
1.5.6.2 Lead
Members must evidence having Control over the
consortium vehicle;
1.5.6.3 A
Committed Shareholder must evidence an intent to hold at
least 10% of the equity in a consortium, and
1.5.6.4 Lead
Members and Committed Shareholders must evidence an
intent to hold, in aggregate, at least fifty-one percent (51%)
of the equity in a consortium.

1.5.7 The Winning Bidder’s consortium may add one or more
Other Shareholders as consortium members prior to formation of
the Project Company and reduce the ownership of the existing
consortium members, provided that each such Other Shareholder
meets the Legal Criteria set forth in Section 3 below, and provided
that the aggregate ownership interest of such new Other
Annex I, page 2
Central Java IPP Request for Proposals (“RFP”)

Shareholders does not exceed 5% and that the conditions set forth
in Section 1.5.6 above continue to be met.

1.6 A Bidder’s consortium may include the proposed EPC Contractor
as a Lead Member, a Committed Shareholder or an Other
Shareholder, provided that the EPC Contractor has not participated
in the Bidding Process with another Bidder’s consortium.
1.7 A Bidder’s consortium may include the proposed O&M
Contractor as a Lead Member, a Committed Shareholder or an
Other Shareholder, provided that the O&M Contractor has not
participated in the Bidding Process with another Bidder’s
consortium.



2 QUALIFICATION CRITERIA

2.1 Consortia proposed by Qualified Applicants will be required to
meet the criteria set forth in Section II-H.1 of the Pre-Qualification
Document
2.2 All consortium members proposed by a Qualified Applicant must
meet the Legal Criteria set forth in Section 3 below
2.3 The Exclusion Criteria in Section 4 below will be applied to any
proposed new Lead Members, Committed Shareholders and Other
Shareholders, as applicable
2.4 Lead Members of a Qualified Applicant must inform PLN of any
adverse changes to their qualifications since the Pre-Qualification
Closing Date












Annex I, page 3
Central Java IPP Request for Proposals (“RFP”)

3 LEGAL CRITERIA

3.1 None of the shareholders or Affiliates of any member of the


Qualified Applicant’s proposed consortium in Schedule 1 of
Annex J or its respective Affiliate shall have:

3.1.1 Been suspended or blacklisted by PLN or any government


instrumentality from doing business with for any reason
whatsoever;
3.1.2 A record of unsatisfactory past performance, including
breach of contract, untimely completion, poor claims history, or
defective workmanship;
3.1.3 In the Procurement Committee’s opinion, excessive
overdue debts to the revenue or customs authorities in Indonesia or
to the relevant authorities in their country of incorporation;
3.1.4 In the Procurement Committee’s opinion, a record of civil
or criminal cases pending or resolved against them involving non-
payment of tax, duty, or other obligation towards PLN or any
government instrumentality.

3.2 The business activities of any member of the Qualified Applicant’s


proposed consortium in Schedule 1 of Annex J or its respective
Affiliate must not be under suspension

4 EXCLUSION CRITERIA

4.1 Qualified Applicants will be disqualified from the Bidding Process
in any of the following circumstances, except to the extent waived
by PLN expressly in writing:

4.1.1 Non-compliance with any of the evaluation criteria and/or


the requests and/or the conditions set out in this RFP or in the Pre-
Qualification Document;

4.1.2 If any of the information submitted by a Qualified


Applicant as part of the Pre-Qualification Process is found at any
time after the Pre-Qualification Closing Date to have been
inaccurate or misleading;

4.1.3 If a Material Dispute that is pending against a Lead


Member, a Committed Shareholder or Other Shareholder or its
respective Affiliate as of the Consortium Formation Date and such
Annex I, page 4
Central Java IPP Request for Proposals (“RFP”)

Material Dispute is subsequently resolved against such consortium


member or its relevant Affiliate prior to the Bid Submission Date;

4.1.4 Incomplete presentation of the documents or information


requested;

4.1.5 Any clarifications requested by PLN from a Qualified


Applicant are not received by a deadline set by PLN;

4.1.6 A Lead Member, a Committed Shareholder or an Other


Shareholder is placed under liquidation, court receivership or
similar proceedings at any time during the Bidding Process; or

4.1.7 A Lead Member, a Committed Shareholder or an Other


Shareholder participates in the Bidding Process with more than one
(1) Qualified Applicant, or the Qualified Applicant (or, in the case
of a consortium Qualified Applicant, a Lead Member) has a cross-
shareholding with another Lead Member of another Qualified
Applicant’s consortium of more than 20%.

5 SUBMISSIONS


5.1 Qualified Applicants shall submit to PLN no later than 15:00 PM
on the Consortium Formation Date:
5.1.1 A letter in the form provided in Annex J of the RFP setting
out the proposed bidding consortium composition
5.1.2 A Memorandum of Understanding, joint venture agreement
or other consortium agreement between all the members of the
proposed consortium stating their intention to form the Project
Company if such consortium is accepted as a Bidder and is
subsequently selected as Winning Bidder, and the respective
ownership share of each member

5.2 Submissions must be made by hand delivery to the address
provided in the Bid Data Sheet provided in Annex A of the RFP
5.3 Submissions received after 15:00 PM on the Consortium
Formation Date will not be accepted


Annex I, page 5
Central Java IPP Request for Proposals (“RFP”)

6 EVALUATION PROCEDURE


6.1 PLN will evaluate submissions by Qualified Applicants in
accordance with the criteria set forth in this Annex I and the Pre-
Qualification Document and its addenda.
6.2 Based on the evaluation, PLN shall determine, at its sole
discretion, whether the consortium proposed by a Qualified
Applicant is qualified as a Bidder or not
6.3 In the event that the consortium proposed by any Qualified
Applicant is not determined to satisfy the requirements of the RFP
and the Pre-Qualification Document,

6.3.1 if one or more of the proposed new members do not meet
the required criteria, PLN may inform such Qualified Applicant by
giving notice in writing and request the Qualified Applicant to
amend its submission within 7 Business Days from the receipt of
such written notice from PLN; or
6.3.2 PLN may reject the bidding consortium proposed by such
Qualified Applicant, whereupon such Qualified Applicant shall not
be eligible to submit a Proposal on the Bid Submission Date.

6.4 PLN shall inform Qualified Applicants whether their submissions
have been approved, rejected, or require clarification within 30
days of the Consortium Formation Date.
6.5 A Bidder shall submit to PLN a Power of Attorney provided in
Annex D, Exhibit 3 upon PLN’s approval of the Qualified
Applicant’s consortium as Bidder.
6.6 Notwithstanding the above, PLN reserves the right to waive in its
sole discretion any minor deficiencies or informalities in
submissions by Qualified Applicants pursuant to this Annex I.

Annex I, page 6
Central Java IPP Request for Proposals (“RFP”)

ANNEX J: CONSORTIUM SUBMISSION

To:


Chairman of Central Java CFPP IPP
Procurement Committee

PT PLN (Persero)
Main Building 13rd floor
Jalan Trunojoyo Blok M I/135Kebayoran Baru
Jakarta 12160
Indonesia

[INSERT DATE]

From: [INSERT NAME & ADDRESS OF QUALIFIED APPLICANT]1

Capitalized terms not otherwise included in this letter shall have the meanings given to them in
the Request for Proposals dated February 25, 2010.

The Qualified Applicant, [INSERT NAME], through this letter is submitting its proposed bidding
consortium to submit a bid for the selection of a project sponsor (the “Project Sponsor”) to
develop the ([ ] MW) coal-fired Central Java CFPP IPP project (the “Project”) in Central Java,
Indonesia.

The Qualified Applicant hereby declares, in accordance with the RFP dated February 25, 2010
and Section II-H of the Pre-Qualification Document dated June 22, 2009 that it:

(a) authorizes PLN to proceed with the due diligence necessary to verify the information
presented by the Qualified Applicant in connection with the Bidding Process; and

(b) confirms the accuracy of the information presented by the Qualified Applicant in
Schedule 1 below, and otherwise in connection with the Bidding Process.

The Qualified Applicant confirms that it accepts the criteria as stipulated in Annex I of the RFP
and the Pre-Qualification Document dated June 22, 2009, 2009 in relation to the implementation
of the Project and waives any right to seek and obtain any court injunction or provisional measure
against the Government of Indonesia or PLN or any other government authority involved in the
implementation of the Project to prevent or restrain the Bidding Process, the holding of a tender,
the award of any related contract or any proceedings related thereto.


1
Consortium Qualified Applicants should include the name and address of each Lead Member.
Annex J, page 1
Central Java IPP Request for Proposals (“RFP”)

Yours sincerely,

Authorized Representative for [Insert Name of Qualified Applicant]1 2

………………………………………..
[Insert Name of Authorized Representative for the Qualified Applicant]


1
Enter name of Authorized Representative as established in the Pre-Qualification Process.
2
This letter should be sealed or notarized by a notary public in the jurisdiction of the Qualified Applicant’s
incorporation (or in the case of a consortium Qualified Applicant, by a notary public in the jurisdiction of
each of the Lead Member’s incorporation).
Annex J, page 2
Central Java IPP Request for Proposals (“RFP”)

SCHEDULE 1 - PROPOSED BIDDING CONSORTIUM

A. Proposed Bidding Consortium

The Qualified Applicant proposes the following bidding consortium:

Name of member Percentage Status of member Does the member meet


shareholding in the (i.e., Lead Member, the relevant qualification
consortium vehicle Committed criteria set forth in Annex
Shareholder, or Other I and the Pre-
Shareholder) Qualification Document?
(Yes/No)
Original Lead
Member of ___ % Lead Member
Qualified Applicant
Company A ___ %
Company B ___ %
Company C, etc. ___ %
Total = 100%

B. Does each member of the consortium proposed in Section A above meet the Legal Criteria set
forth in Section 3 of Annex I?

_____________(Yes / No)

C. Has a Lead Member, Committed Shareholder or Other Shareholder or its respective Affiliate
had a Material Dispute resolved against it?

_____________(Yes / No)

If the response above is affirmative, the Qualified Applicant should attach to this submission
details of any Material Disputes that have been resolved against any proposed member, including
confirmation that such Material Disputes were resolved more than five (5) years prior to the date
of this submission.

E. Does the consortium proposed in Section A above meet the criteria set forth in Section II-H.1
of the Pre-Qualification Document and Annex I of the RFP?

_____________(Yes / No)

F. Has the consortium proposed in Section A above attached with its submission a Memorandum
of Understanding, a joint-venture agreement or other consortium agreement between all proposed
members?

Annex J, page 3
Central Java IPP Request for Proposals (“RFP”)

_____________(Yes / No)

G. Was the Qualified Applicant conditionally qualified by PLN in its pre-qualification


notification pursuant to Section II - G.5.9 of the Pre-Qualification Document?

_____________(Yes / No)

H. If the response to Section G above is “Yes”, does the proposed consortium include a member
that meets the requirements communicated by PLN in its pre-qualification notification to such
conditionally Qualified Applicant?

_____________(Yes / No)

If the response to this Section H is “Yes”, please attach relevant supporting documentation.

Annex J, page 4
Central Java IPP Request for Proposals (“RFP”)

ANNEX K: AMDAL REQUIREMENTS

The implementation of the Project requires the Project Company to prepare and execute the
AMDAL as governed by the environmental law and regulations in Indonesia. The legal bases for
the preparation and execution of the Project’s AMDAL include, but are not limited to:
1. Law No. 23 of 1997 regarding the Environmental Management (“Law 23/1997”);
2. Government Regulation No. 27 of 1999 regarding AMDAL (“GR 27/1999”);
3. Decree of the State Minister for the Environmental Affairs No. 8 of 2006 regarding
Guidelines for AMDAL Preparations (“Decree 11/2006”);
4. Decree of the State Minister for the Environmental Affairs No. 11 of 2006 regarding
Types of Business and/or Activity Plan which are Obligated to be Completed with an
Analysis on Environmental Impacts (“Decree 11/2006”);
Under Law 23/1997, any project having a significant impact to the environment is obligated to
prepare and execute an AMDAL, before a permit for the operation of the business is granted.
Decree 11/2006 stipulates that construction and operation of a coal-fired power plant with a
capacity of more than 100 MW requires an AMDAL, so as the construction and operation of the
corresponding transmission lines with operating voltage of more than 150 kV. The AMDAL of a
project consists of:
1. The scoping study (Kerangka Acuan Analisis Dampak Lingkungan or “KA-
ANDAL”);
2. Environmental Impact Assessment (Analisis Dampak Lingkungan or “ANDAL”);
3. Environmental Management Plan (Rencana Pengelolaan Lingkungan Hidup or
“RKL”);
4. Environment Monitoring Plan (Rencana Pemantauan Lingkungan or “RPL”).
The Project Company shall prepare the AMDAL, and then apply for, and obtain, the appropriate
license from the relevant authority and shall meet the conditions of that license at all times during
the construction and operational phases of the Project.

For the purpose of the bid evaluation, the Bidder shall prepare an Initial Environmental
Examination (IEE), in accordance with the requirements of Annex C and Annex D-Exhibit 6,
including, among other things:

 A description of environmental mitigation and protection measures to be implemented.


 The quantities and types of all liquid and solid wastes and hazardous substances from the
power station (including any coal and ash wastes) and disposal measures.
 The quantities and rates of air emissions, including the types of pollutants, and details of
the proposed methods of pollution control and types of pollution control equipment and
other mitigation measures.
 The effects on marine, estuarine or riverine biodiversity, archaeological and cultural
impact.
 Noise impact analysis and mitigation.
 Construction effects (e.g. impacts associated with to transportation of plant to the Plant
Site, construction within the Plant Site Services Corridors, etc.).

Annex K, page 1
Central Java IPP Request for Proposals (“RFP”)

ANNEX L: FORMAT FOR COMMENTS ON DRAFT PROJECT


AGREEMENTS

Comments on Draft PPA dated February 25, 2010


[Name of Bidder]

Clause Issue Proposed re-draft (if any) Major Issue / Pricing


number Issue (if pricing issue,
please provide estimate
of pricing impact in US
cents/kWh)

Annex L, page 1
Central Java IPP Request for Proposals (“RFP”)

ANNEX M: KEY TERMS OF DEVELOPMENT COST ESCROW


ACCOUNT AGREEMENT

All capitalized terms used herein and not defined in the RFP shall have the same meaning
ascribed to them in the PPA.

The Development Cost Escrow Account shall be subject to the Development Cost
Escrow Account Agreement containing the following key terms:

Amount The lesser of (a) five percent (5%) of the estimated Project cost
submitted by the Bidder in accordance with Annex D, Part V of the
RFP, and (b) USD thirty-five million (35,000,000)

Use of funds in The Development Cost Escrow Account shall be used solely to fund
the account the legitimate third party development costs of the Project. The
escrow agent shall be instructed to release funds from the
Development Cost Escrow Account only upon presentation of
invoices properly due and payable to third party suppliers of land,
goods or services relating solely to the development of the Project.
No other withdrawals shall be permitted before the Financing Date.

Release of funds Upon the earlier of (i) the Financing Date and (ii) termination of the
in the account PPA, any remaining funds held in the Development Cost Escrow
Account, together with any accumulated interest, shall be released to
the Project Company.

Permitted The escrow agent shall be entitled to hold the funds in an interest
investments bearing account or place the funds on short term interest bearing
deposit. Any accumulated interest shall be held in the Development
Cost Escrow Account and paid out in accordance with the terms of
release referred to above.

Account fees The fees of the escrow agent shall be paid by the Project Company.

Annex M, page 1

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