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Fuel Supply and Transport Tender Technical Specifications

TRNC ELECTRICITY AUTHORITY

FUEL SUPPLY AND TRANSPORT TENDER
TECHNICAL SPECIFICATION

1. Subject and Scope

This technical specification covers the specification and delivery of LSFO with
maximum 1.0% Sulfur content to be used in Steam Turbines and Diesel Generators
at the Cyprus Turkish Electricity Authority Teknecik Power Plant.

1.1 Abbreviations and Definitions:

a. ADMINISTRATION: Cyprus Turkish Electricity Authority ( Kıb-Tek )

b. CONTRACTOR: Contractor Company with which the contract is made after the bid
is approved
c. DWT : Dead weight tonnage
d. MT : Metric Tonne
e. WITNESS SAMPLE: Refers to the sample stored under appropriate conditions to be
sent to the testing, inspection and / or certification body in case of any objection to
the test results.
f. PREMIUM: Refers to the expenses and earnings to be undertaken by the Contractor
firm, including freight, insurance and similar expenses to be added to the PLATTS
value of the companies participating in the tender.
g. Tenderer:: Each Contractor Company that makes a bid to this tender
h. Supplier: The Company that will provide the fuel and/or the ship transportation to the
Tenderer.
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Fuel Supply and Transport Tender Technical Specifications

2. Features of the Fuel

The specification of LSFO (Low Sulfur Fuel Oil) of the fuel with maximum 1.0% Sulfur
content to be used in Teknecik Power Plant Steam Turbines and Diesel Generators
is given in Table 1 below.

Table 1: Features of the Fuel

SPECIFICATION OF LSFO WITH max 1% SULFUR CONTENT TO BE USED IN STEAM TURBINES AND DIESEL
GENERATORS IN TEKNECIK POWER PLANT
NO PARAMETER UNIT LIMIT TEST METHOD
1 Density 15°C Kg/l max 0,9970 IP365 (ASTM D 4052), EN ISO 12185,
ASTM D1298
2 Viscosity 100 °C cSt min 12,5 IP71 (ASTM D445), EN ISO 3104,
max 45
3 Flash Point °C min 60 IP34 (ASTM D93), EN ISO 2719
4 Pour Point °C max 30 IP15 (ASTM D97), ISO 3016
5 Sulfur (S) % in mass max 1,00 ASTM D2622 or ASTM D4294, EN ISO
8754, IP 336
6 Water % in max 0,5 IP 74 (ASTM D95)
volume
7 Sediment % in mass max 0,15 IP 53 (ASTM D473)
8 Ash % in mass max 0,15 IP4 (ASTM D482), EN ISO 6245
9 Vanadium (V) ppm max 200 IP 501 or IP 470
10 Sodium (Na) ppm max 50 IP 501 or IP 470
11 Asphaltene % in mass max 9,0 IP 143
12 Al+Si ppm max 60 IP 501 or IP 470
13 Net Calorific Value MJ/Kg or min 40,460 IP 12 (ASTM D240) or ASTM D4868
kcal/kg 9665
14 Carbon Residue % in mass max 15 ASTM D4530
15 Total Sediment Potential % in mass max 0,1 IP 390
16 Calcium (Ca) ppm max 30 IP 501 or IP 470
Zinc (Zn) ppm max 15 IP 501 or IP 470
Phosphorus (P) ppm max 15 IP 501 or IP 500
17 Stability & Compatibility unit 1 1 ASTMD7112-12 or ASTM D4740

Note:
The LSFO with maximum 1.0% Sulfur content to be taken should not contain used
lubricating oil. If the following conditions occur;
If Ca > 30 ppm and Zn > 15 ppm or Ca > 30 ppm and P > 15 ppm,
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Fuel Supply and Transport Tender Technical Specifications

the fuel oil will be assumed to contain used oil..

3. Quantity

Subject to the rules of article 4.2 of this specification, the quantity is 150,000 ± 10%
Metric Ton Fuel Oil (LSFO containing maximum 1.0% sulfur)

4. Delivery

4.1 To Teknecik CIF. Delivery will be made to Teknecik Power Plant.

4.2 Delivery amount is 150,000 ± 10% mt. Fuel Oil Delivery will be carried out by
the contractor within the framework of the monthly shipment written schedule
prepared by the Administration and given to the Contractor. After the contract
is signed, the Contractor is given a minimum of 20 (twenty) calendar days for
shipment. The tonnage of the ships that will carry out the shipment will be
between a minimum of 6,000 and a maximum of 14,000 M / T. The contract will
be for 12 (twelve) months. The Contractor will continue to supply fuel under the
same conditions and at the same price for a maximum of three (3) months, if
the new tender to be opened cannot be finalized by the Administration despite
the expiry of the contract period, the Authority needs fuel and is requested by
the decision of the Board of the Cyprus Turkish Electricity Authority..

5. Delivery Place and Features

5.1 Teknecik Power Plant port evacuation terminal is designed for ships (tankers)
of maximum 14,400 D.W.T (deadweight ton). There is no docking platform at
Teknecik Power Plant port. The ship will be anchored double at the fore and
fixed to the existing two buoys at the stern. Ships must have unloading device
at the stern. The fuel tanker should have a crane with a minimum capacity of
2 tons and in a suitable place to lift the flexible hose. The water depth is 11
meters, and ships with a draft of 9.5 meters can maneuver. The fixed steel
fuel oil pipeline is 12 inches in diameter and has a length of approximately
920 meters. Connection flange diameter of 70 meters of flexible hose is 10
inches. There is a breakaway coupling between the first and second flexible
hoses connected to a fixed steel pipe. Tables are given in Annex: 1 and
Annex 2.

5.2 Administration will keep an independent accredited inspection firm for onboard
measurements and quantification at the discharge port (Teknecik Power
Plant).

6. Fuel Oil Tanks

6.1 The tank floor is 27 meters above sea level and the ceiling is 40 meters high.
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Fuel Supply and Transport Tender Technical Specifications

6.2 Tank capacity is 3x 20,000 m3.

7. Discharge Period and Demmurage

7.1 The time allowed in demmurage calculations will be calculated according to

the rate of at least 50 hours + 6 hours (NOR) for 12,500 metric tons. The
Contractor is not paid for any demmurage due to any delay arising from the
fuel ships during the discharge period.

7.2 The fuel oil discharge line is suitable for continuous discharge at a
temperature of 50ºC with a maximum pressure of 7 bar.

7.3 While the Fuel Oil is being discharged, the temperature of the pumped fuel
will not fall below 50 C. If the fuel oil temperature is lower than 50 ºC, it is the
Contractor's responsibility to heat the fuel to min 50 C before starting the
discharge. In case the temperature of the fuel to be discharged is below 50
C, the Administration will not initiate the discharge until the fuel temperature
is raised by the tanker, and the demmurage that will occur for this reason will
be the responsibility of the Contractor.

7.4 The demmurage caused by bad weather conditions is shared equally by the
parties.

7.5 Fuel tankers arriving at Teknecik Santrali Port are docked in daylight for
discharge. No ships are allowed to dock to the terminal between sunset and
sunrise.

7.6 The time that will pass until the sampling process is completed is not included
in the time count in the demmurage calculations and no time or other rights
are requested from the Authority for these demmurages.

8. Contractor's Responsibilities

8.1 The Contractor is responsible for docking, mooring, opening, fuel discharge,
end of the fuel discharge and, when necessary, sweeping the pipeline with
sea water for ships that will supply fuel oil. In these processes, the laws in
force in the TRNC will be applied and they will be made under the control of
the Administration.

8.2 It is the Contractor's responsibility to connect and disconnect the fuel transfer
flexible line to the tanker discharge system.

8.3 Before loading the fuel tanker, it will be certified with "Clean Dry Tank
Certificate".

8.4 Fuel tankers must be double hull construction and under the age of 20 (twenty)
as of the contract expiry date.
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8.5 Sufficient amount of floating ropes should be available for mooring in fuel
tankers.

8.6 The fuel tanker must have the necessary device and equipment to sweep and
clean the line with sea water at the end of the discharge and in emergencies.
It will keep a minimum of 45 m3 of water ready to sweep the line so that it
can sweep and clean the existing pipeline with water if the Administration
demands or in bad weather conditions. The Administration has no
responsibility for the sea water that will remain in the ship tanks after the
pipeline sweeping operation.

8.7 The Contractor is responsible for compensating the damage the fuel tankers
will cause to Kib-Tek’s fuel terminal, facilities and discharge line during
docking, mooring, discharge and disconnecting.

8.8 The Contractor is responsible for the loss, leakage and environmental and
marine pollution caused by its own personnel, devices and equipment during
the fuel discharge operations (during docking, mooring, lifting, connecting
and disconnecting the flexible (flexible) line flange to the tanker, and
sweeping the line with sea water).

8.9 The fuel to be supplied will not be of Greek or Greek Cypriot origin and the
vessels to be used for transportation will not have Greek and Greek Cypriot
flags.

9. Quantification and Sampling

9.1 The amount to be invoiced is amount of the Bill of Lading at maximum, and
0.3% (three per thousand) shipping waste tolerance is applied. If a bill of
lading less than the accepted tolerance is detected, the determined amount
is invoiced.

9.2 a- Composite samples are created by taking samples from the lower, middle
and upper (U, M, L (upper, middle, low)) levels from each of the cargo tanks
loaded with fuel brought on board by the accredited Independent Inspection
Firm. The contractor cannot object to the method of taking the sample taken
in this way. Samples are sealed by the independent audit firm. The
Contractor and the Administration accept that the samples taken represent
the whole of the fuel. Administration and Contractor must be present during
sampling. A report is prepared for the samples taken by the Independent
Audit Firm and the report is signed by those present. If the Contractor is not
present at the sampling process, the Contractor agrees that it is sufficient
that the sample report is signed by the Independent Audit Firm and the
Administration and that the samples taken represent the whole of the fuel. At
each batch of fuel delivery, at least five required composite samples, each
one liter, are taken for Kıb-Tek, depending on the Administration's request.
Samples are taken according to the amount requested by the Independent
Audit Firm and the Contractor. At least two of the samples taken for Kıb-Tek
are sent to an internationally accredited laboratory for analysis. In addition,
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Fuel Supply and Transport Tender Technical Specifications

one sample is used for analysis at Teknecik Power Plant. Other samples
whose seal has not been opened are the witness samples that are kept by
the Administration. In addition, unsealed samples of the Contractor and
Independent Audit Firm are also considered as Witness samples. In the
event that the values found as a result of the analysis are different from the
values given in the technical specification and in case of objection of the
parties to the analysis, the witness sample / samples are analyzed in an
internationally accredited laboratory. The analysis results of these samples
are considered definite for the parties.
b- Kıb-Tek has the right to refuse to receive the fuel in case the above-
mentioned analysis results are out of the limit values specified in Table 1.
However, in cases where the Administration has to take the fuel outside the
limit values:
i- For the parameters determined to exceed the limit, the penalty
deduction specified in Article 12 will be applied. The determined total
deduction amount is first deducted from the Contractor's revolving
performance bond and, in case of a decrease, from the receivables
for that batch of goods and, if decreased again, from receivables for
the next batch of goods.
ii- As a result of the analysis, if any parameter defined in item 12
("Quality Adjustment") is 10% more than the maximum limit values
and 10% less than the minimum limit values, in addition to the quality
adjustment deduction explained above, a fee up to 10% of the total
amount of that shipment is applied as a penalty deduction for
supplying fuel that is not suitable for the qualification.
iii- In case the analysis results are 100% more than the maximum limit
values and 50% less than the minimum limit values, In addition to the
penalty deductions specified in paragraphs (i) and (ii) above, first of
all, the performance bond is distrained. Under these circumstances,
the penalty deduction amounts specified in paragraphs (i) and (ii) are
first deducted from the receivables for that batch of fuel, and if
decreased again, from the receivables for the next batch of goods.
The contractor company, which is penalized twice during the contract, will
be banned from KIBTEK tenders for 2 years.

9.3 The analyzes are sent to the independent laboratory by the Administration.
During the analysis, the Contractor may have an observer at their own
expense. The cost of analysis is paid by the Administration and this amount
is deducted from the Contractor's receivable. Witness sample analysis fee is
paid by the party that objected to the analysis results. The time to pass until
the samples are taken and the analysis of the samples, including the witness
samples, are not included in the time count in the demmurage calculations
and no demmurage or other rights are requested from the Administration for
this period.

9.4 The sample and/or samples taken during the filling of the tanker at the
Loading Port will be delivered to the Administration before the discharge
begins at the Teknecik Terminal. The seals of the samples will be intact and
sealed by the relevant independent audit firm at the loading port. Except
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Fuel Supply and Transport Tender Technical Specifications

where the Administration representative is present at the loading port, the

sample/samples taken cannot be considered as witness samples.

10. Fuel Specifications

10.1 The specifications of the fuel to be delivered will be within the limit values
specified in Table 1. In the event that it is out of the limit values specified
in Table 1, the Authority has the right to object to receive this fuel. In case
the Authority has to take delivery of fuel, the penalty rules defined in Article
9.2 (b) are applied.

110.2 During the filling of the tanker at the Loading Port, samples will be taken
and analyzed in accredited laboratories. Analysis reports of the samples,
along with other shipping documents, will be sent to the Administration via
e-mail immediately after filling. Analysis results will include all parameters
specified in Table 1. These analysis results cannot be considered as the
final analysis result.

11. General Considerations

11.1 For periods of 3 (three) months, the Administration will inform the
Contractor in writing of its need in terms of quantity and date.

11.2
a. The Tenderer shall submit the full name, address and contact
information of the refinery/refineries or Supplier/Suppliers from
which they will supply the fuel, together with the offer.
b. If the Contractor requests to supply the fuel with a ship other than
the specified ship list, it is obligatory for the ship to comply with
all the issues specified in this technical specification and to obtain
the approval of the Administration before loading.
c. If the Tenderer wins the tender, after signing the contract with the
Administration, it will submit the charter party contract and the
contract they will conclude with the refinery and/or the supplier
company from which they will supply all of the fuel to the
Administration and submit a document showing that they have
committed themselves in writing, together with the offer.
d. The Tenderer shall submit with its bid the commitment to make
an agreement and to supply and transport the fuel in accordance
with the quality specified in Table 1. (Z)
e. (1)- The Tenderer shall submit the option document of the
'Refinery' from which the fuel will be provided, together with its
offer. "Refinery Option Certificate" shall be given by the Refinery
to the Tenderer or the Supplier of the Tenderer. The Refinery
shall certify that it will provide the fuel, which is the subject of this
tender, in the specified quality, quantity and time with “Refinery
Option Certificate”. If Refinery Option Certificate is given to the
Supplier, the Tenderer shall also submit the Supplier's
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commitment document containing these issues together with its

offer. (Z)
(2)- The Tenderer shall submit the technical information of the
'ship(s)' that will carry the fuel oil together with the offer (Q88
Certificate). (Z)
(3)- The Tenderer shall submit the documents described below
with its offer.
a- Ship option certificate (Z)
b- Certificate showing that it has agreed with the ship for a period
equal to this tender period (Z)
“Refinery Option Certificate” and “Ship Option Certificate”, which are
defined as Mandatory in 11.2.e (1) and 11.2.e. (3) a. above, can be
given as original or photocopy. If it is given as a photocopy, it must
submit the original documents to the Central Tender Committee within
5 workdays from the bid submission deadline.

11.3 The Contractor shall submit the contract to be made with the refinery or the
Supplier from which the entire fuel will be supplied, and the charter party
contract to the Administration within 15 calendar days from the date of
signing the contract with the Administration. In addition, they will present
the demurrage cost of the ship that will carry out the transport, in the annex
of their offer.

11.4 The Contractor shall supply all bill of lading, origin, quality certificate, bill of
loading, cargo manifest, and empty tank certificate before loading in
accordance with international shipping standards for each part of goods
from the loading port where the fuel is taken and shall submit it to the
Administration before the discharge begins.

11.5 The Contractor shall notify all information of the ship to the Administration in
writing before each loading. It is the Contractor's responsibility to ensure
that the information and equipment specified in the Q88 Certificate are in
a complete and active condition.

11.6 The Tenderer shall certify together with its offer that it or the Supplier company
has carried out fuel supply and transportation business for at least one
year. In the reference document to be submitted, the description of the
work carried out, the dates on which it was done, the name of the company
where the fuel was supplied and transported, and the contact information
of the company representative shall be available.

12. Quality Adjustment

12.1 In the event that the Administration has to take delivery of fuel that does
not comply with the specification values specified in Table 1, the Contractor
will apply a penalty under the name of "Quality Adjustment" over the fuel
price to be paid "for the parameters specified below".
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12.2 If the asphaltene 9.0% in mass limit value is exceeded, a penalty deduction
of 0.15% is applied from the fuel price per ton for each 0.1% over 7.0%.

Example: If 9.2% asphaltene is obtained (9.2-7) x 10 x 0.15 = 3.3%

deduction penalty per ton is applied.

12.3 Amount of water: If the water content is 0.5% more than the limited
parameters in Table 1 in volume, the net amount of fuel delivered will be
invoiced by deducting the entire amount of excess water from the amount
of fuel delivered.

12.4 Amount of sediment: If the residue content of the limited parameters in

Table 1 is more than 0.15% in mass, the net amount of fuel delivered will
be invoiced by deducting the total amount of excess sediment from the
amount of fuel delivered.
Example: Let’s assume that the sediment amount is 0.17% and the related
lot delivery amount is 12,500 mt.
Penalty deduction to be applied:
0,17 % – 0,15 % = 0,02 %
Fuel amount delivered by calculation =12500 – 12500 x 0,02/100
Fuel amount to be paid = 12497,5 mton

12.5 Calorific Value : The minimum calorific value of the limited parameters in
Table 1 is specified as 40.460 MJ / kg (9665 kcal / kg). If the calorific value
of the incoming fuel is below the limit value specified in the specification,
the fuel quality adjustment and price cut is applied according to the
following formula based on the calorific value of 40,460 MJ / kg.

Example: If the calorific value of the incoming fuel is 40.335 MJ / Kg, and
the incoming amount is 12,000 mtons,
Amount to be paid = (40.335/40.460)x Net Fuel Amount Received (Kg)
The amount of fuel to be paid and adjusted for calorific value will be
11,962,926 mtons.

12.6 Sulfur: Penalty will be imposed if the supplied fuel exceeds 1.0% sulfur.
The penalty to be applied is calculated with the following two methods. In
the calculations made with the following two methods, the higher amount
is applied as the deduction penalty.

Method 1:
Sulfur Content, one of the limited parameters in Table 1, has been
specified as 1.0% in mass.
If the sulfur value of the fuel provided exceeds the 1.0% limit value, there
will be a 0.5% decrease per ton in the price per 0.10% increase (fractions
after 0.90% will also be accepted as 0.10%) above 0.90%. The deduction
is calculated by adding the premium amount to 1% HFO Platts average
value.
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Method 2:
For each zero point ten (0.10) part above zero point ninety percent (0.90%)
(fractions above zero point ninety (0.90) will also be taken as zero point
ten (0.10)) price decrease will be applied.
The difference between Platts European Marketscan HFO with an
average sulfur content of 1% and HFO with an average sulfur content of
3.5%, which is used to determine the average Platts value with this price
decrease, will be calculated by dividing by 25 (twenty five) (There are 25
0.1 parts between 1.0% and 3.5%).

For example: If the sulfur value of the fuel provided is 1.17%,

Average Platts price of HFO is 3.5% for HFO, 300.00 USD / mt for sulfur,
Let’s assume that the average Platts price for HFO 1.0% sulfur is 345.00
USD / mt.
Let’s assume that Premium cost is 12 $/mt,

There are 3 0.1% parts for over 0.9% in 1.17% sulfur content.

Price adjustment according to Method 1:

345 + 12= Total unit price of 357 $ / mt fuel

357 x 3 x 0.5%= 5,36 $/mton penalty deduction amount

Price adjustment according to method 2:

[(345,00 $ / mton - 300,00 $ / mton) / 25] x3 = 5,40 $ / mton penalty
deduction amount
As the value in Method 2 is higher according to the calculations made by
both methods, the unit penalty deduction amount to be applied per mton
will be 5.40 $ / mt.

12.7 Vanadium: If the Vanadium content, among the limited parameters in Table
1, exceeds one two hundred parts per million (200 ppm), a penalty of 0.1%
will be applied on the price per mton for every parts per million (1 ppm)
exceeding (200 ppm).

Example: Vanadium= 212 212-200=12 ppm 12*0,1= 1,2

A penalty deduction of 1.2% will be applied over the total price.

12.8 Viscosity: The viscosity of the fuel, among the limited parameters in Table
1, at values outside the limits of min on 12.5 (two and a half), max 45 (forty
five) cSt at 100 ° C, 0.1% penalty will be deducted in the price per mton
for 1 (one) cSt at every 100 ° C.

Example: Viscosity=58 cSt 58-45=13 cSt 13*0,1= There will be a penalty

deduction per mton at the rate of 1.3%.

12.9 Aluminum + Silisium: If the sum of Al + Si content, one of the limited

parameters in Table: 1 in the Fuel Technical Specification, exceeds sixty
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parts per million (60 ppm), a penalty deduction of 1% will be applied in the
price per ton for ten parts per million (10 ppm) exceeding.

Example: Al+Si=75 ppm 75-60=15 ppm 15/10*1= There will be a

penalty deduction per mton at the rate of 1.5%.

12.10 LSFO with max 1.0% sulfur content should not contain used lubricating
oil. If the following conditions occur;
If Ca > 30 ppm and Zn > 15 ppm or Ca > 30 ppm and P > 15 ppm,
The fuel will be assumed to contain used oil and penalty will be deducted
on the following quality adjustment calculations.
If Ca> 30 ppm limit value is exceeded, 0.1% penalty deduction will be
applied on the price per ton for every parts per million (1 ppm) exceeding.

Ca=35ppm (35-30)=5 ppm, 5*0,1= 0.5% price reduction per mton will
be applied.

If limit value Zn> 15 ppm is exceeded, 0.1% penalty deduction will be

applied in the price per mton for every parts per million (1 ppm) exceeding.

Zn=20ppm (20-15)=5 ppm, 5*0,1= A penalty deduction will be applied

per mton at the rate of 0.5%.

If limit value of P> 15 ppm is exceeded, 0.1% penalty will be applied in the
price per mton for every parts per million (1 ppm) exceeding.

P=20ppm (20-15)=5 ppm, 5*0,1= 0.5% price reduction per ton will be
applied.