Provision of Construction Service for Pipeline and Stations

for ENGINEERING, PROCUREMENT AND

Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
EPC No: Tender No. MR-01/2022 Page 1 /16

2 - INSTRUCTIONS TO BIDDER

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
EPC No: Tender No. MR-01/2022 Page 2 /16

2 - INSTRUCTIONS TO BIDDER

CONTENTS

1.0 PROJECT DESCRIPTION..................................................................................................................................4

1.1 INTENT OF INVITATION...................................................................................................................................5
1.2 DEFINITIONS.......................................................................................................................................................5
1.3 ACKNOWLEDGMENT.......................................................................................................................................5
1.4 ADDENDA.............................................................................................................................................................6
1.5 EXAMINATION OF ITB......................................................................................................................................6
1.6 INSPECTION OF SITE........................................................................................................................................6
1.7 INTERPRETATION OF ITB...............................................................................................................................6
1.8 EQUALITY OF SUPPLY OF INFORMATION.................................................................................................7
1.9 ORAL INTERPRETATION.................................................................................................................................7
1.10 SITE VISIT.............................................................................................................................................................7
1.11 FORM OF BID.......................................................................................................................................................7
1.12 COMPLIANCE WITH ITB..................................................................................................................................8
1.13 ALTERNATE BID (NOT APPLICABLE)..........................................................................................................8
1.14 IMPLIED AGREEMENT.....................................................................................................................................8
1.15 SUBMISSION OF BID..........................................................................................................................................8
1.16 SUBMISSION OF BID IN DIGITAL FORMAT..............................................................................................10
1.17 BID CLOSING DATE.........................................................................................................................................11
1.18 VALIDITY OF BID..............................................................................................................................................11
1.19 BID PRICE...........................................................................................................................................................11
1.20 BID BOND............................................................................................................................................................12
1.21 UN-PRICED COMMERCIAL PROPOSAL....................................................................................................12
1.22 COMPLETENESS OF BIDDER’S BID............................................................................................................12
1.23 BIDDER’S COSTS..............................................................................................................................................13
1.24 RIGHT TO ACCEPT AND REJECT................................................................................................................13
1.25 OWNERSHIP OF DOCUMENT........................................................................................................................13
1.26 COMMITMENT TO PARTNERS.....................................................................................................................13
1.27 SUBCONTRACT.................................................................................................................................................14
1.28 LICENSE FOR CONSTRUCTION OF WORK..............................................................................................14

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
EPC No: Tender No. MR-01/2022 Page 3 /16

1.29 COMMENCEMENT...........................................................................................................................................14
1.30 LANGUAGE........................................................................................................................................................14
1.31 DISCLAIMER.....................................................................................................................................................14
1.32 CONFIDENTIALITY AND SECRECY DECLARATION.............................................................................15
1.33 CONFLICT OF INTEREST...............................................................................................................................15
1.34 TERMINATION OF BIDDING PROCESS......................................................................................................15
1.35 ETHICS AND COMPLIANCE DUE DILIGENCE (ECDD) QUESTIONNAIRE (NOT APPLICABLE) 16
- END OF 2- Instructions to Bidder-..................................................................................................................................16

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
EPC No: Tender No. MR-01/2022 Page 4 /16

1.0Project Description

Mongol Refinery (“Mongol Refinery” State Owned LLC) intends to lay a long crude oil pipeline, the
Project to Construct a Crude Oil Pipeline in Mongolia (the “PROJECT”), from Toson-Uul and
Tamsag oilfield in Dornod province to Altanshiree, Domogovi province of Mongolia to transport the
crude oil product.

The pipeline begins from the TA - 1 production processing facility at Toson-Uul oilfield, goes
through the territories of 8 soums (country subdivisions) of 3 provinces, namely, Dornod,
Sukhbaatar and Dornogovi, and end at the refinery site in Altanshiree soum of Dornogovi province.
With this project, crude oil will be transported by an approx. 530 kilometers of pipeline system,
through the steppe landscape elevations not across any major rivers and steep slopes.

The rough route of pipeline is illustrated in the figure below:

NORINCO International Cooperation Ltd and with a registered branch (NORINCO International
Cooperation Ltd. Pipeline PE) (hereinafter referred to as the “Contractor”) is the Contractor of the
Provision of ENGINEERING, PROCUREMENT AND CONSTRUCTION OF THE PROJECT TO
CONSTRUCT A CRUDE OIL PIPELINE IN MONGOLIA (Tender NO.: MR-01/2022).

NORINCO International Cooperation Ltd is desirous that Construction Service for Pipeline and
Stations shall be executed for the PROJECT and has accepted a bid by the SUBCONTRACTOR for
the execution and completion of the Work.

This ITB includes all the Work for Construction Service for Pipeline, not limited which are

Section Description of work Number Remark

Include pipeline from oil field to Initial
station and Initial station to
IHPS2.Including pipeline from oilfield to
1 initial station,which is about 3.4km skin-
Pipeline 185 Km effect heat tracing type.
Facility at oil field site 1 set Tie-in with the existing facility of oil field

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
EPC No: Tender No. MR-01/2022 Page 5 /16

Initial station 1 set

IHPS1 station 1 set
Valve stations（1,2,3） 3 set
Pipeline between IHPS2 station and
Pipeline 115 Km IHPS3 station
IHPS2 station 1 set
IHPS3 station 1 set
2 IHPS4 station 1 set
Terminal station 1 set Including tie-in with refinery
Valve stations（4,5,6,7） 4 set

 All the related procurement, construction, maintenance, emergency works.

1.1Intent of Invitation

Contractor is interested in appointing a suitable and qualified SUBCONTRACTOR for the

Construction Service for Pipeline and Stations. BIDDERS are invited to submit their BIDs for the
said Construction Service for Pipeline and Stations in accordance with this INVITATION TO BID
Documents (ITB).

1.2Definitions

Use of capital letters in the text will denote the use of a defined term. Defined terms which are not
contained in this CHAPTER 1.3 shall be deemed contained as per this ITB, Form of
SUBCONTRACT, Article 1.1– “Definitions”. Unless the context otherwise requires, the following
terms and expressions in this ITB shall have the following meanings.

1.2.1 BID

The BID is the proposal or submission in response to the Invitation to Bid (ITB).

1.2.2 BIDDER

The person or persons, partnership consortium firm or company that responds to the Invitation To
Bid.

1.2.3 Bid Period

The time between the issuance of this ITB and the CLOSING DATE.

1.2.4 Bid Closing Date

The latest date and time by which BIDs must be received by Contractor at BID Submission Place.

1.2.5 BID Submission Place

The only official place where the BIDs should be delivered, submitted to Contractor, and received
by Contractor.

1.2.6 SUBCONTRACTOR

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
EPC No: Tender No. MR-01/2022 Page 6 /16

The successful BIDDER.

1.2.7 INVITATION TO BID (ITB)

This document inclusive of addenda issued by Contractor as well as all written clarifications and
written communications between Contractor and the BIDDERs.

1.2.8 Contractor

NORINCO International Cooperation Ltd and with a registered branch (NORINCO International
Cooperation Ltd. Pipeline PE), or its successor, assignee or designee.

1.3Acknowledgment

BIDDER shall acknowledge receipt of these ITB documents or any addendum, as the case maybe,
within seven (7) calendar days from ITB date when ITB is collected by e-mailing to Contractor.

BIDDER must indicate whether will submit a BID or decline as indicated in 6 – Acknowledgement
Form.

Should BIDDER decline to submit a proposal, BIDDER shall state in writing the reasons for
declining to submit a proposal. BIDDER is required to promptly return all Bid Documents to
Contractor and, in all such cases, this shall be done not later than the Bid Closing Date.

The Bid Documents returned shall be forwarded to the address given above and the following shall
be clearly marked on the cover/envelope:

1) DECLINE TO BID - DOCUMENT RETURNED

2) TENDER (Number and Title)

3) BIDDER's Name

1.4Addenda

Contractor may, from time to time during the Bid Period, issue addenda to this ITB. BIDDER shall
acknowledge receipt of addenda in the manner described above. Such addenda shall be taken into
account by BIDDER in the preparation of its BID. Addenda are complementary to and form part of
the ITB. Where any actual conflict exists between the addenda, the addendum subsequent in time
shall govern. BIDDER shall include into its BID the cost of all work included in the addenda issued.
Bid Closing Date of the Bid shall not be extended automatically due to issuance of addenda.

1.5Examination of ITB

BIDDER shall examine and consider all documents issued as part of this ITB prior to preparation of
the BID.

1.6Inspection of Site

The results of the soil investigation performed by Contractor in area close to Site, are provided to
BIDDER for information only. BIDDER shall verify this information prior to using it for preparation of
its BID. Contractor shall not be held responsible for any error or omission in information furnished
or made available to BIDDER.

BIDDER is further advised that Bidder is fully and solely responsible for conducting all necessary
and sufficient subsurface investigations that BIDDER deems necessary for the preparation of the

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
EPC No: Tender No. MR-01/2022 Page 7 /16

BID.

BIDDER shall inspect and examine the SITE and shall have full and complete knowledge of the
surface and subsurface conditions existing at the SITE and the surroundings and have satisfied
itself before submitting its BID as to the nature of the ground and the subsoil, and have taken into
account any information in connection therewith. BIDDER shall satisfy itself as to the form and
nature of the SITE, the extent and nature of the work and materials and equipment necessary, the
means of communication with and transportation and access to the SITE, local conditions, customs,
labor availability and local trade practices, availability of water, power and / or utilities and services,
the availability of port facilities and marine conditions at the ports, details of the road and highway
network, uncertainties of the weather, the accommodation it may require and in general obtain all
necessary information as to laws and regulations, risk, contingencies and all other circumstances
which would in any way influence or affect the BIDDER’s BID.

Failure to investigate any of the foregoing conditions shall not relieve the BIDDER from
responsibility for properly estimating the difficulty or cost of successfully performing and completing
the work.

1.7Interpretation of ITB

BIDDER shall submit all requests for documents clarification or interpretation of any portion of the
ITB on the Technical Clarification Form, “Technical Clarification for Provision of Construction
Service for Pipeline and Stations for ENGINEERING, PROCUREMENT AND CONSTRUCTION OF
THE PROJECT TO CONSTRUCT A CRUDE OIL PIPELINE IN MONGOLIA” by email.

BIDDER shall check the contents of the ITB Documents to ensure that there are no discrepancies,
errors or omissions. In the event BIDDER finds discrepancies, errors or omissions in any part of the
ITB, BIDDER shall immediately request an interpretation in writing of any discrepancies, errors or
omissions found in the ITB Documents or any doubt as to the precise meaning of any item, word or
figure or any other question whatsoever. Requests for interpretation must be received by Contractor
not later than seven (7) calendar days before CLOSING DATE.

1.8Equality of Supply of Information

A copy of all questions of interpretations received from each BIDDERs and the respective answers
from Contractor will be sent to all BIDDERs in order to keep the Bid on a comparable basis.

1.9Oral Interpretation

Contractor shall not be bound by any oral interpretation of the ITB which may be made by
Contractor or any of its representatives. Only interpretations made in writing by Contractor in
accordance with the procedures set forth in this ITB shall be binding upon Contractor.

1.10 SITE Visit

A Site Visit at BID stage is recommended for all BIDDERS.

BIDDER shall, at its own cost and expense, visit and examine the SITE prior to submission of its
BID.

BIDDER shall check all sites carefully and professionally by itself.

1.11 Form of BID

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
EPC No: Tender No. MR-01/2022 Page 8 /16

BIDDER’s BID shall consist of Five (5) separate sealed packages:

(a) Bid Letter

(b) Technical Proposal (Original, Copy and USB)

(c) Commercial Proposal (Original, Copy and USB)

(d) Bid Bond Original

(e) BIDDER’s Corporate Documentation and Authorization

The Technical Proposal shall contain all information requested in part of this ITB.

The Commercial Proposal shall contain all information requested in Part of this ITB.

The BIDDER shall submit the BID Forms using the forms furnished in the bidding document. These
forms must be completed without any alterations to its format, and no substitutes shall be accepted.
All blank spaces shall be filled in with the information requested.

BIDDERs must quote for all the items with full (100%) quantity of each items specified in the
schedule for which they are submitting a BID(s). Otherwise, their BIDs will be treated as non-
responsive and may be rejected.

1.12 Compliance with ITB

BIDDER shall submit a Base Bid proposal which shall be in full conformity with the requirements set
out in this ITB. It is a prerequisite that BIDDER submits a fully compliant BID.

Clarifications, deviations, exceptions, exclusions, conditions, variations, assumptions, rejections

from the terms and conditions, etc., if any, in BIDDER’s BID are considered to be deviations from
the ITB. Any BID containing such deviations may be disqualified or rejected by Contractor.

BIDDER is advised to use positive terms in responding to the ITB. Vague statements will be
considered as non-compliance with, or deviations from, this ITB.

BIDDER shall list out the deviations/exceptions in the Commercial Proposal as per Form–
Deviations/Exceptions by BIDDER. Contractor will not recognize and will totally disregard any
deviations/exception(s) which is/are not listed in this Form of Commercial Proposal but mentioned
elsewhere in the Proposal (Technical and/or Commercial).

1.13 Alternate BID (NOT APPLICABLE)

1.14 Implied Agreement

Where BIDDER’s BID contains no specific mention of exceptions to compliance with ITB or
alternative BIDs to the ITB in accordance with chapter 1.13 and 1.14, above, BIDDER shall be
deemed to have accepted all of the terms, conditions and requirements of the ITB.

1.15 Submission of BID

1.15.1BIDDER may submit their BIDs by courier or by hand. However, BIDDER is strongly advised
to deliver the proposal by hand in order to assure timely receipt by Contractor. BIDDER is
reminded that distance and customs formalities may require longer than expected delivery
times. If BIDDER elects to mail the proposal, BIDDER is advised to use a fast and reliable
delivery service (e.g., courier). BIDDER should advise Contractor by fax the date and details

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
EPC No: Tender No. MR-01/2022 Page 9 /16

of the delivery services.

1.15.2Responsibility for timely delivery of the proposal to the correct address rests fully with
BIDDER. Contractor does not accept late BIDs. Delivery to the wrong address shall not be
an excuse for late delivery.

1.15.3BID PACKAGE

a) Each submission of a BID must be made separately in a sealed Five (5) Packages (the
“BID PACKAGES”) that contains the following:

1) Package -1: One (1) sealed envelope containing one (1) Original Bid Letter which are
marked with “CONFIDENTIAL – BID LETTER for Provision of Construction Service for
Pipeline for ENGINEERING, PROCUREMENT AND CONSTRUCTION OF THE
PROJECT TO CONSTRUCT A CRUDE OIL PIPELINE IN MONGOLIA- TO BE OPENED
BY ADDRESSEE ONLY” that shall include all information requested in Part of this ITB. In
addition, the electronic copy of the Bid Letter (the scanned version of original) should be
prepared and sealed inside as well;

2) Package -2: One (1) sealed envelope containing one (1) Original and one (1) Copy of the
Technical Proposal which are marked with “CONFIDENTIAL – TECHNICAL BID for
Provision of Construction Service for Pipeline and Stations for ENGINEERING,
PROCUREMENT AND CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA - TO BE OPENED BY ADDRESSEE ONLY” that
shall include all information requested in Part of this ITB. In addition, both the editable
copy in MS-excel/word format and the scanned copy of the original should be prepared
and sealed inside as well;

3) Package -3: One (1) sealed envelope containing first one (1) original and one (1) Copy of
the Commercial Proposal which are marked with “CONFIDENTIAL- COMMERCIAL BID
for Provision of Construction Service for Pipeline and Stations for ENGINEERING,
PROCUREMENT AND CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA– TO BE OPENED BY ADDRESSEE ONLY” that
shall include all information requested in Part of this ITB. In addition, both the editable
copy in MS-excel/word format and the scanned copy of the original Commercial Proposal
should be prepared and sealed inside as well;

4) Package -4: One (1) sealed envelope containing one (1) original of the BID Bond as
detailed in 7-Format of Bid Bond.

5) Package-5: One (1) sealed envelope containing one (1) original of BIDDER’s Corporate
Documentation and Authorization which are marked as “BIDDER’s Corporate
Documentation and Authorization.”, as per Part of this ITB. In addition, both the editable
copy in MS-excel/word format and the scanned copy of the original should be prepared
and sealed inside as well.

b) In the event of any discrepancy between the original set and copies, the original set shall
govern.

c) Any BID submitted to the Contractor that does not comprise all of the five (5) packages
mentioned in clause 1.16.3 (a) (i), 1.16.3 (a) (ii), 1.16.3 (a) (iii), 1.16.3 (a) (iv) 1.16.3 (a) (v),
1.16.3 (a) (vi), 1.16.3 (a) (vii) and 1.16.3 (a) (viii) above shall be deemed invalid, and will
not be considered in the evaluation.

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
10
EPC No: Tender No. MR-01/2022 Page
/16

d) Any BID PACKAGE submitted to the Contractor in which any of the above documents are
not sealed separately, will be deemed invalid, and will not be considered in the evaluation.

e) Technical Proposal and Commercial Proposal shall be submitted separately; BID

PACKAGEs that does not meet this requirement will be considered invalid and will not be
considered in the evaluation.

f) The Technical Proposal must not contain any information regarding BIDDER’s proposed
pricing or compensation. If BIDDER included any such commercial information or materials
in its Technical Proposal, its BID will be deemed invalid, and will not be taken into
consideration of evaluation.

g) The Packages and envelopes shall:

1) bear the name and address of the BIDDER;

2) be addressed to Contractor in accordance with ITB document;

3) bear the specific identification of this bidding process indicated in ITB document; and

4) bear a warning not to open before the time and date for BID opening.

h) If all envelopes are not sealed and marked as required, Contractor will assume no
responsibility for the misplacement or premature opening of the BID.

i) BIDDER shall also provide the BID PACKAGEs in digital format (by USB). The digital files
shall be submitted together in the appropriate packages.

1.15.4BID Labelling

a) The word “Original”, “Copy” shall be clearly marked on each envelope. BID
PACKAGEs/envelopes shall be clearly marked in bold letters as follows and submitted to
the following address:

CONFIDENTIAL

BID LETTER; OR

TECHNICAL PROPOSAL; OR

COMMERCIAL PROPOSAL; OR

ORIGINAL BID BOND; OR

BIDDER’S CORPORATE DOCUMENTATION AND AUTHORIZATION.

Tender No.:

MR012022-0000-SC-CSC-0019

Tender Title:

Provision of Construction Service for Pipeline and Stations for ENGINEERING,

PROCUREMENT AND CONSTRUCTION OF THE PROJECT TO CONSTRUCT A CRUDE OIL
PIPELINE IN MONGOLIA

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
11
EPC No: Tender No. MR-01/2022 Page
/16

To:

NORINCO International Cooperation Ltd. &NORINCO International Cooperation Ltd. Pipeline

PE

Commercial Dept.

Norinco International Plaza, No.6, Zhengda Road, Shijingshan District, Beijing, China.

Email: dcc.mpp@norinco-intl.com, lzhn@norinco-intl.com, zfy@norinco-intl.com

ATTN: Commercial Dept. Mr. Li Zhennan

Submitted By:

[Name of BIDDER]

[Contact Person, Address and Phone and Fax Numbers of BIDDER]

b) Each envelope within the BID PACKAGEs must also be clearly marked and labeled as set
out in paragraph (a) above, and shall also clearly identify the contents therein, i.e. whether
it is the Technical BID Submission or the Commercial BID Submission, and whether it is
the original set or the copy set. Each envelope must also be sealed. Any BID Package
without the above mentioned label on the envelope will be deemed invalid, and will not be
considered in the evaluation process.

1.16 Submission of BID in Digital Format

In addition to the submission as required in 1.16, above, BIDDER shall also submit attachments and
tables in digital format. The digital format 2 sets of (USB) shall be submitted together in the
appropriate packages. The required information shall be submitted in either one of the following
Format:

Microsoft Word 2003 or latest;

Microsoft Excel 2003 or latest;

Microsoft Projects 2003 or latest;

Primavera P3EC V.5.0 or latest.

The digital version of the biding document shall be consistent with the original version of the hard
copy.

All files shall be submitted in virus-free compact disks (USB). A list of files and its descriptions shall
accompany the disks.

The attachments and / or tables required in digital format are as follows:

A. 6 - Acknowledgement and 8 - Clarifications;

B. 3- BID Forms for Technical Proposal;

Digital files for Technical Proposal shall be submitted together with the Technical Proposal
Package.

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
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EPC No: Tender No. MR-01/2022 Page
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C. 4- BID Forms for Commercial Proposal.

Digital files for the Commercial Proposal shall be submitted together with the Commercial Proposal
package.

BIDDER shall utilize the tables provided without any changes to the format. BIDDER shall not
create BIDDER’s own tables.

1.17 BID CLOSING DATE

BIDs must be received by Contractor not later than the Closing Date specified in ITB Cover Letter,
unless otherwise specified by Contractor.

Contractor will not accept proof as posting as proof of receipt. It is the responsibility of BIDDER to
ensure that the whole of its BID PACKAGE is received by Contractor at the proper location prior to
the CLOSING DATE.

1.18 Validity of BID

The BID shall be firm and irrevocable and shall be valid for a period of One Hundred Twenty (120)
calendar days from the Bid Closing Date (as may be extended by the BIDDER and Contractor, the
“BID Validity Period”), and shall not be retracted or withdrawn during the period. Contractor shall
have the right to accept any BID at any time before the expiration of such period.

1.19 BID Price

BIDDER shall quote the all-inclusive non-escalating fixed Unit Prices and Lump Sum Price for the
execution of the Construction Service for Pipeline.

BIDDER is required to provide all quotes in Mongolian Tugrik. (MNT) as specified in

SUBCONTRACT. Every page of this section must be initialed by BIDDER’s authorized officer and
stamped by BIDDER’s official company logo.

1.20 BID Bond

Contractor requires BIDDER to furnish a BID Bond as per ITB.

Contractor requires the BIDDER to furnish a BID Bond by way of an irrevocable and unconditional
first call Bank Guarantee issued by a commercial bank or other financial institution acceptable to the
Contractor that has at least A- (minus) rating of its long-term debt from Standard & Poor's Ratings
Group (or any successor thereto) or at least A3- rating of its long-term debt from Moody's Investors
Service (or any successor thereto); provided, however, that Contractor shall have the right to accept
a commercial bank or other financial institution with no rating from such services or with a lower
rating than that set forth above in this sentence.

The amount of BID Bond for BIDDER’s proposal shall be MNT 688,000,000.00 (Say in words SIX
HUNDRED AND EIGHTY-EIGHT MILLIOM Mongolian Tugrik. and Zero Cents Only) or USD
200000 or 1360000RMB . A signed original BID Bond shall be in a separate sealed envelope.

The BID Bond of a JV must be in the name of the JV that submits the BID. If the JV has not been
legally constituted at the time of bidding, the BID Security shall be in the names of all future partners
as named in the letter of intent.

The BID Bond shall be effective for the period of validity of the BID which is One hundred and
Twenty (120) days starting from the CLOSING DATE of the BID and shall be in the format as

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
13
EPC No: Tender No. MR-01/2022 Page
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specified in the Form of BID Bond.

BID Bonds will be returned free of interest to unsuccessful BIDDERS and to the successful BIDDER
upon signing of the SUBCONTRACT by BIDDER and after receipt and acceptance by Contractor of
the Performance Bond for the SUBCONTRACT.

BID Bond shall be enforced and forfeited

(a) if BIDDER withdraws or repudiates its BID offer during the tender period or after the BID Closing
Date; but, before expiry of the BID Validity Period or the expiry of the BID Bond;

(b) if BIDDER has increased its quotation without technical deviations approved by Contractor
during the original BID Validity Period;

(c) if BIDDER has increased its quotation in an amount higher than the amount specified in the
Form of Commercial Proposal, in case Contractor extends the BID Validity Period; or,

(d) if BIDDER, having been declared to be the successful BIDDER ((i) refuses to acknowledge the
Letter of Award, (ii) refuses to execute the SUBCONTRACT within thirty (30) days from the date of
the Letter of Award or the within three (3) days of the written demand by Contractor to enter into the
SUBCONTRACT, (iii) fails to extend the BID Bond until it is replaced by the Bank Performance
Guarantee (Performance Security), or (iv) fails to provide the Bank Guarantee (Performance
Security) requested in the tender process without Contractor consent.

1.21 Un-priced Commercial Proposal

BIDDER shall include in its Technical Proposal a signed un-priced copy of its Commercial Proposal.
The copy shall be exact copy of the Commercial Proposal with the exception of the prices which
shall be blank.

1.22 Completeness of BIDDER’s BID

It is the responsibility of BIDDER to submit all information which demonstrates its ability to complete
the Construction Service for Pipeline described in this ITB. Any inadequacy or failure to submit the
required information may result in the BID being rejected.

1.23 BIDDER’s Costs

All expenses incurred by BIDDER related to the preparation of the BID Package, clarifications,
meetings, etc. shall be at BIDDER’s sole account.

1.24 Right to Accept and Reject

Contractor may reject any or all BIDs received, or may accept any BID that, in Contractor’s sole
judgment, is the most advantageous to Contractor. Contractor reserves the right to accept or reject,
all, or parts of, BIDDER’s BID at Contractor’s discretion, and will be under no obligation to explain
the reasons thereof. Contractor may at its own discretion split the SUBCONTRACT to more than
one BIDDER at its own discretion and will be under no obligation to explain the reasons thereof.

Contractor shall not be deemed to have accepted any offer unless and until a Contract is duly
signed or Contractor sends a binding letter of intent to award to the successful BIDDER, signed by
a duly authorised representative of Contractor.

Contractor reserves the right to require the successful BIDDER to enter into the SUBCONTRACT
with an affiliated entity of the Contractor.

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
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EPC No: Tender No. MR-01/2022 Page
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Contractor shall not be bound to accept the lowest BID.

Contractor reserves the right to award all the Works or part of the Works to ONE or More or FOUR
BIDDER.

A company that may be engaged by the Contractor to provide consulting services for preparation of
the Tender Documentation for the subject of the Tender and its subsidiaries are not eligible to take
part in the Tender.

1.25 Ownership of Document

All BIDs submitted shall become the property of Contractor. No part of any BID submitted will be
returned to BIDDER.

1.26 Commitment to Partners

Joint Venture, Association, Consortium or Partnership arrangements (if any) must be clearly
indicated under the relevant Form. Joint Venture, Association, Consortium or Partnership members
shall be jointly and severally liable under any Contract awarded to them. Certified assurances
regarding the financial structure and standing of any such members will be required by Contractor.
Bid/Offer shall disclose the full names of all Joint Venture, Association, Consortium or Partnership
members; and shall be signed by each and every member’s authorized representative, for which
details of such authority is requested by Contractor, or by the authorized representative of the
leading party as authorized by all joint Venture, Association, Consortium or Partnership members.
The details of any Joint Venture, Association, Consortium or Partnership structure shall be
submitted in the BID together with a copy of the notarized and legalized document containing the
Joint Venture, Association, Consortium or Partnership Agreement, Memorandum of Association or
relevant document, as the case may be. No amendment, change or modification shall be made to
the documents containing the Joint Venture, Association, Consortium or Partnership without
Contractor’s prior written approval.

Certified assurances regarding the financial structure and standing of any such partner companies
will be required by Contractor. BIDs by partnership shall disclose the full names of all partners and
shall be signed with the partnership name by one of the members of the partnership or by an
authorised representative, for which details of such authority is requested by Contractor. The details
of any partnership structure shall be submitted in the BID together with a copy of the formal
association or joint venture agreement.

If being awarded this project, all Co-venturers or Joint Venturers of the Joint-Venture BIDDER shall
sign the final SUBCONTRACT, however, the focal point shall still be the Leading Party on behalf of
the Joint-Venture SUBCONTRACTOR during the performance of this SUBCONTRACT. Payment
by Contractor under the SUBCONTRACT shall be made to the account designated by Leading
Party.

If a successful BIDDER be a joint venture, the joint Venture parties must be jointly and severally
100% liable for the work and subcontract.

A successful BIDDER who is agent for another organization or organizations shall be required, as a
condition of award of the SUBCONTRACT, to provide: (i) an authorization letter by such
organization; and (ii) a Parent Company Guarantee by such organization of the performance and
financial obligations to be assumed by such BIDDER under the SUBCONTRACT. In case of a joint
endeavour all the parties shall sign the Letter of Award Acceptance, the SUBCONTRACT and any
other related document, even if one of the parties has been designated as leading party to act on
behalf of all the others.

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
15
EPC No: Tender No. MR-01/2022 Page
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1.27 SUBCONTRACT

The successful BIDDER will be required to enter into a contract with Contractor which will be on the
same terms and subject to the same conditions as are contained in the ITB Documents, subject to
any clarifications issued during or prior to the evaluation of the BID.

1.28 License for Construction of Work

The successful BIDDER (Subcontractor) shall be a qualified entity with valid special licenses for the
work which will perform in Mongolia or the subcontractor shows proof that its entities and special
licenses are under registration in Mongolia, and such entity and special licenses shall conform to
Mongolia laws, regulations and etc to perform the WORK in Mongolia.

1.29 Commencement

For bidding purposes BIDDER shall assume, unless Contractor notifies the BIDDER otherwise, that
the SUBCONTRACT will be awarded on the date shown in Subcontract.

On no account shall the award of the SUBCONTRACT on a date other than the assumed date
affect the BIDDER’s BID, including all statements, terms and conditions or prices contained therein,
and it shall be binding and remain valid, irrevocable and open for acceptance by Contractor as per
this ITB requirement.

1.30 Language

The BID, as well as all correspondence and documents relating to the BID exchanged by the
BIDDER and Contractor shall be written in English. Contractor will reject any part of the bidding
document if not in the English language.

1.31 Disclaimer

Drawings, specifications, plans, diagrams, sketches, data or other information, or part thereof,
whether technical or otherwise, provided by Contractor in connection with SUBCONTRACT and ITB
may have been obtained by Contractor from other parties. Contractor shall not be liable or
responsible whatsoever for any inaccuracy, insufficiency or impracticality of the said drawings,
specifications, plans, diagrams, sketches, data or other information or part thereof.

BIDDER shall make use of and interpret the said drawings, specifications, plans, diagrams,
sketches, data or other information or part thereof entirely at its own risks.

1.32 Confidentiality and Secrecy Declaration

By submission of a BID, BIDDER warrants that:

a) all documents delivered to BIDDER shall be handled confidentially and shall be used only
for the purpose of preparing the BID. Such documents shall not be duplicated or disclosed
to others unless explicitly for the purpose of formulating the BID in response to this
invitation to Bid;

b) the prices in the BID have been arrived at independently, without consultation,
communication, agreement or understanding for the purpose of restricting competition, as
to any matter relating to such prices, with any other BIDDERs or with any competitors;

c) unless otherwise required by law, the prices which have been quoted in the BID have not
knowingly been disclosed by BIDDER, directly or indirectly, to any other BIDDERs or

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 Provision of Construction Service for Pipeline and Stations
for ENGINEERING, PROCUREMENT AND
Contract Name
CONSTRUCTION OF THE PROJECT TO CONSTRUCT A
CRUDE OIL PIPELINE IN MONGOLIA
Contract No. MR012022-0000-SC-CSC-0019
Doc. Name： 2-Instructions to Bidder
16
EPC No: Tender No. MR-01/2022 Page
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competitors, nor will they be so disclosed;

d) no attempt has been made or will be made by BIDDER to induce any other person or
company to submit or not to submit a BID for the purpose of restricting competition; and

e) BIDDER has adhered to the highest standards of business ethics and, in particular, has
established precautions to prevent any of its officers, employees, or agents from making,
receiving or offering substantial gifts, entertainment, payment, loans, or other
considerations which may influence individuals in respect of this invitation to Bid.

f) If, at any time during the BID preparation period, BIDDER decides to decline the Invitation
to Bid, all documents must be immediately returned to Contractor. BIDDER shall execute
the Confidentiality and Secrecy Declaration attached in Attachment – BID Forms for
Technical Proposal.

1.33 Conflict of Interest

A BIDDER is believed to be in a conflict of interests with one or more BIDDERS when:

a) They have common shareholders, who hold a controlling interest of these BIDDERS, or

b) They are receiving or have already received financial funding directly or indirectly from any
of the BIDDERS; or

c) They have the same representative for this Tender; or

d) They prove to be in such kind of relationships, which put them in a position when, directly
of via third parties, they are able to get access to the information related to a BID of another
BIDDER or may somehow affect this BID, or may exercise some influence on the decisions
taken by the Contractor about the current Tender.

All potential BIDDERS being in the conflict of interests according to this item shall be disqualified
and their BIDS shall be rejected.

1.34 Termination of Bidding Process

Contractor has the right to terminate and cancel this Tender Process at any time for any reason or
cause, and it is not obliged to support such decision. In case of termination or cancellation of the
Tender Process, Contractor is not responsible or liable for any cost or expense incurred by
BIDDERs in the preparation of its BID, including, but not limited to, any financial cost related to the
preparation, approval and issue of a security such as BID Bond and Bank Guarantee.

- END OF 2- Instructions to Bidder-

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