NTPC LIMITED

(A Govt. of India Enterprise)

INVITATION FOR BIDS (IFB) FOR

LONG TERM PROCUREMENT OF IMPORTED COAL ON CIF BASIS FOR PUDIMADAKA SUPER THERMAL POWER PROJECT (4000 MW) DISST. VISAKHAPATNAM, STATE OF ANDHRA PRADESH, INDIA (INTERNATIONAL COMPETITIVE BIDDING)

IFB No.: 40031855

Date: 29.12.2014

Bidding Doc. No: CS-0000-010(L)-9

1.0NTPC is India’s largest thermal power generating company. It was incorporated in 1975 with the objective of planning, promoting and organising the integrated development of thermal power in India. NTPC, designated as one of the ‘Maharatna Public Sector Undertakings’, is poised to become a global giant. Presently NTPC has an installed capacity of 43128 MW through 38 Power stations including power station operated under Joint Venture Companies in India. NTPC has committed buyers, with generating capacity in each of its Plants allocated to the states in the region of the Plant’s location.

2.0PUDIMADAKA SUPER THERMAL POWER PROJECT

4000 MW (5 X 800 MW) power project based on steam coal of origin other than India is under consideration by NTPC Limited for setting up at Nakapalli, Andhra Pradesh India. The power plant shall be near the Indian coast of Bay of Bengal.

Annual coal requirement of power plant is estimated to be around 14 MMTPA. Exact annual coal requirement shall be worked out during RFP/ Supply Agreement based on the coal quality selected. The plant is likely to come into operation during FY 2018-19.

3.0BRIEF SCOPE OF WORK

Coal shall be supplied by the Seller on CIF basis from the coal mines declared as a part of qualifying requirements through suitable vessels such as Panamax, Capesize etc. matching with the unloading facility at Discharge Point. The vessels sent by Supplier shall be unloaded / discharged at the discharge point by NTPC. Discharge point would be a dedicated berthing and unloading facility to be developed by NTPC. Details of Discharge point would be furnished subsequently.

The detailed scope of work shall be as per RFQ documents.

4.0NTPC intends to finance the subject package through Own Resources.

5.0Detailed specifications, scope of work and terms & conditions are given in the bidding documents, which are available for examination and sale at the address given at paras 10.0 below and as per the following schedule:

Bidding Document No.

:

 

CS-0000-010(L)-9

 

 

Bidding Document Sale Date & Time:

From 29.12.2014 to 19.01.2015 From 1000

 

 

 

Hrs to 1700 Hrs.

 

 

 

Pre-bid conference date & time

:

23.01.2015, 10:30 Hrs. (IST)

 

 

RFQ Bid Receipt Date & Time including

Upto 1430 Hrs. (IST) on 06.02.2015

documents in physical form

 

( Integrity Pact,

 

Affidavit etc.) :

 

 

 

 

 

 

RFQ Bid Opening Date & Time

:

1500 Hrs. (IST) on 06.02.2015

 

 

 

 

Cost of Bidding Document

:

 

INR 2,000/- (Indian Rupees Two thousand

 

 

 

only) per set for Indian Bidders and US $35

 

 

 

(US Dollar Thirty Five only) per set for Foreign

 

 

 

Bidders.

 

 

 

 

6.0QUALIFYING REQUIREMENT FOR BIDDERS

The Bidder can be an individual firm meeting the qualifying requirements stipulated hereunder as per Clause 6.3.1 or 6.3.2;

OR

The Bidder can be a Consortium of maximum three (03) firms meeting the qualifying requirements stipulated hereunder as per Clause 6.3.3

6.1Technical Qualifying Requirement:

6.1.1Bidder may be a company/firm, having operating and/or green field coal mine(s) outside India, or a company/firm having entered into MOU (as per format given in the bidding documents) with (maximum of three (3)) companies/firms having operating and/or green field coal mine(s) outside India. These operating and/or greenfield mine(s) must have an aggregate proven & uncommitted extractable coal reserves of 300 MMT of coal of the quality specified in RFQ documents as on the first day of the quarter in which RFQ Bid are submitted and should have produced in last three (3) financial years or have potential to produce an aggregate quantity of 10 MMT of coal per annum with logistic support for transportation & shipment overseas of that quantity from such mine(s)

In support of the aforesaid criteria, the Bidder shall furnish:

a)Complete details of each mine(s), location, ownership, present production schedule (in case of operating coal mines), tentative date of commencement of production of coal (in case of green-field coal mines), production plan for coming 20 years.

b)Coal mine ownership/lease holder’s certificate authenticated by Govt. Agency of the country(ies) where mine(s) are located.

c)For operating coal mines - Coal quality parameter and coal quality analysis certificate(s), for the analysis done in two quarters preceding the quarter in which RFQ Bid are submitted.

d)MOU entered into with mining companies (having either operating or green field coal mine(s) outside India) as per format given in the bidding document which shall be valid for a period of minimum 20 years from the date of RFQ bid opening.

e)Proven Extractable Mineable reserves in the linked coal mines (JORC/SAMREC report to be submitted).

f)Third Party Certificate towards coal quality parameters of the uncommitted extractable reserves from where the bidder is proposing to supply coal from.

g)For operating coal mines - Certificate of annual production in the preceding financial year as on the date of RFQ bid submission from offered coal mine(s) by the Govt. Agency of the country(ies) where mine(s) are located or by practicing Chartered Accountant.

h)For green-field coal mines - The Bidder or mine owner(s) with whom Bidder has

entered into MOU as the case may be shall furnish a certificate (supported by relevant documents) in respect of Production capacity of the linked coal mine(s).

i)The Bidder or mine owner(s) with whom Bidder has entered into MOU as the case may be shall furnish a certificate (supported by relevant documents) in respect of the un-tied coal production capacity of the linked coal mine(s).

j)The Bidder or mine owner(s) with whom Bidder has entered into MOU as the case may be shall furnish logistics plan for transportation of coal produced from the mines from where the bidder is proposing to supply coal to load port and from there shipment overseas.

The requisite production of 10 MMTPA from the operating and/or greenfield mine(s) are required to be matching with the start of operation of NTPC’s power plant. However, in case the production from the such operating and/or green-field mine(s) do not match the start of operation of NTPC’s power plant but is within a period of two (2) years after proposed start of operation of NTPC’s power plant, then the Bidder shall ensure supply of imported coal during this interim period through MOU (as per format given in the RFQ document) with (maximum of three (3)) companies/firms having operating coal mine(s) outside India satisfying technical requirements as below:

Aggregate coal production of at least 10 MMTPA in the last three financial years. These coal mine(s) of the bidder must have proven and uncommitted extractable reserves of at least 40 MMT of coal of the quality specified in RFQ documents as on the first day of the quarter in which RFQ Bid are submitted.

In support of the aforesaid criteria, the Bidder shall furnish:

a)Complete details of each mine(s), location, ownership, present production schedule, production plan for next 7 years.

b)Coal mine ownership/lease holder’s certificate authenticated by Govt. Agency of the country(ies) where mine(s) are located.

c)Coal quality parameter and coal quality analysis certificate(s), for the analysis done in two quarters preceding the quarter in which RFQ Bid are submitted.

d)MOU entered into with mining companies (having operating coal mine(s) outside India) as per format given in the bidding document which shall be valid for a period of minimum 7 years from the date of RFQ bid opening.

e)Proven Extractable Mineable reserves in the linked coal mines (JORC/SAMREC report to be submitted).

f)Third Party Certificate towards coal quality parameters of the uncommitted extractable reserves from where the bidder is proposing to supply coal from.

g)Certificate of annual production in the preceding financial year as on the date of RFQ bid submission from offered coal mine(s) by the Govt. Agency of the country(ies) where mine(s) are located or by practicing Chartered Accountant.

h)The Bidder or mine owner(s) with whom Bidder has entered into MOU as the case may be shall furnish a certificate in respect of the un-tied coal production capacity of the linked coal mine(s)

AND

6.1.2The Bidder should have imported/ exported and supplied a minimum of 3.5 MMT of any dry bulk (solid) commodity, like Coal, Iron ore, Fertilizers, Chemicals, Cement etc. of origin other than India to any firm(s), in any continuous twelve (12) months in one or multiple contracts during the past three (3) years reckoned from the date of RFQ bid opening.

In support of the aforesaid experience, the Bidder shall furnish:

a)Supply Experience certificate from Purchaser(s) and;

b)Certificate in original from Statutory Auditor(s) of the Bidder

6.2Financial Criteria:

(i)The average annual turnover of the Bidder in the preceding three (3) financial years as on the date of RFQ bid opening should not be less than INR 1308 crore (Indian Rupees One Thousand Three Hundred and Eight Crore only) or in equivalent foreign currency.

(ii)Net Worth of the Bidder as on the last date of the financial year immediately preceding the date of RFQ bid opening should not be less than 100% of its paid-up share capital.

(iii)In case the Bidder is not able to furnish its audited financial statements on standalone entity basis, the un-audited unconsolidated financial statements of the Bidder can be considered acceptable provided the Bidder further furnishes the following documents for substantiation of its qualification:

a.Copies of the un-audited unconsolidated financial statements of the Bidder along with copies of the audited consolidated financial statements of the

Holding Company.

bA certificate from the CEO/CFO of the Holding Company, as per the format enclosed in the bid documents, stating that the un-audited unconsolidated financial statements form part of the Consolidated Annual Report of the Company.

In cases where audited results for the preceding financial year as on the date of bid opening are not available, certification of the financial statements from a practicing Chartered Accountant shall also be considered acceptable.

(iv)The un-utilized Line of Credit for fund based and non-fund based limits with cash and bank balances including fixed deposits of the Bidder as on a date not earlier than 15 days prior to the date of RFQ bid opening, duly certified by its Bankers, should not be less than INR 218 crore (Indian Rupees Two Hundred and Eighteen Crore only) or in equivalent foreign currency.

In case certificates from more than one bank are submitted, the certified unutilized limits should be of the same date from all such banks.

(v)Where another Company of the group acting as the Treasury Centre is responsible for Treasury Management of the Bidder having combined credit/guarantee limit for the whole group, the Bidder would be required to provide a Banker’s certificate regarding the un-utilized line of credit for fund based and non-fund based limits together with cash and bank balances including fixed deposits available to such Treasury Centre. Further, Treasury Centre should certify that out of the aforesaid limits certified by the Bankers, the Bidder shall have access to the line of credit of a level not less than the amount specified at para 6.2(iv) above. In proof of this, the Bidder would be required to furnish along with its bid, a Letter of Undertaking from the Treasury Centre, supported by a resolution passed by the Board of Directors of the Holding Company, as per the format enclosed in the bid documents, pledging unconditional and irrevocable financial support for the execution of the Contract by the Bidder in case of award.

(vi)In case the Bidder’s unutilized line of credit for fund based and non fund based limits specified at para 6.2(iv) above is not sufficient, a comfort letter from one of the Bankers specified in the bid documents unequivocally stating that in case the Bidder is awarded the Contract, the Bank would enhance the line of credit for fund based and non-fund based limits to a level not less than the specified amounts to the Bidder or to the Treasury Management Centre, as the case may be, shall be acceptable.

6.3ROUTES

The Bidder shall be either an individual firm or a consortium of up to three (03) firms and may follow any one of the following route:

6.3.1ROUTE – 1

Individual firm as a bidder fulfilling all the requirements at 6.1 & 6.2 on its own.

6.3.2ROUTE –2

In case a Bidder does not meet the requirement of clause 6.1 and 6.2 above on its own, it can quote on the basis of credentials of its Subsidiary or Holding Company or Subsidiary of its Holding Company. In such case the consolidated experience of Bidder and its Subsidiary or Holding Company or Subsidiary of its Holding company shall be considered, as applicable.

However, the Bidder on its own should meet either 6.1.1 or 6.1.2 of the Technical Criteria OR financial criteria at Clause 6.2 above

i.The Bidder, who meets the requirements of Clause 6.1.1 and/or 6.1.2 and/or clause 6.2 on its own and meets the remaining requirements of Clause 6.1 and 6.2 mentioned above, as the case may be, based on the strength / experience of its Subsidiary or Holding Company or Subsidiary of its Holding company will be required to furnish a legally enforceable Joint Operating Agreement (JOA) executed between the Bidder and its Subsidiary or Holding Company or Subsidiary of its Holding company extending experience / strength to the Bidder along with its RFP bid, valid for entire Contract period i.e. (20 years), as per the formats to be provided by NTPC at RFP stage. The number of executants of the JOA shall not exceed two (02) including the Bidder. Further the executants of the JOA other than the Bidder shall be required to submit a performance guarantee equivalent to 1% of the estimated annual contract value towards the faithful performance of terms & conditions contained in JOA as per the format specified in the bidding documents. This performance guarantee shall be in addition to the Contract Performance Guarantee to be submitted by the Bidder as per bidding documents and shall be kept valid and operative till 90 days after the expiry of the validity of contract.

ii.Net worth of the Bidder and its Holding Company or its Subsidiary or Subsidiary of its Holding Company lending strength /experience to the bidder, as on the last date of the Financial Year immediately preceding the date of opening of RFQ bid, in combined manner should be equal to or more than 100% of their total paid up share capital. However, Net worth of the Bidder and its Holding Company or its Subsidiary or Subsidiary of its Holding Company seeking qualification under this route, as on the last date of the Financial Year immediately preceding the date of opening of RFQ bid should not be less than 75% of their respective paid up share capital individually.

6.3.3ROUTE –3 (Consortium)

i.The Bidder can be a Consortium of maximum three (03) firms meeting the qualifying requirements stipulated as per Clause 6.1 and 6.2 collectively except for the Net Worth criteria mentioned at clause 6.2(ii).

ii.Each Partner of Consortium shall have at least 25% of Technical Criteria mentioned at Clause 6.1.1 or 6.1.2 or at least 25% of the Financial Criteria Requirement mentioned at Clause 6.2 except for the Net worth criteria mentioned at Clause 6.2 (ii).

iii.The Consortium shall necessarily identify one of the Partners as lead Partner who shall meet on its own at least 51% of the Technical Criteria mentioned at clause 6.1.1 or 6.1.2 or at least 51% of Financial Criteria mentioned at Clause 6.2 except for the Net worth criteria mentioned at clause 6.2(ii).

iv.Net worth of all the consortium members in combined manner, as on the last date of the Financial Year immediately preceding the last date of RFQ bid opening should be equal to or more than 100% of their total paid up share capital. However, Net worth of each member of the consortium, as on the last date of the Financial Year immediately preceding the date of opening of RFQ bid, should not be less than 75% of their respective paid up share capital individually.

v.None of the consortium members are allowed to draw any technical or financial strength from its Subsidiary (ies) and/or Holding Company.

vi.Each of the Consortium members will be required to furnish legally enforceable Consortium Agreement along with its RFP bid, as per the formats to be provided by NTPC at RFP stage, holding themselves jointly & severally responsible and liable to NTPC to perform all contractual obligations, valid for the entire period of contract, failing which the Bidder shall be disqualified and his bid shall be rejected. Further no change in the composition of the Consortium shall be allowed without the written consents of the Owner after submission of Bid.

NOTES:

i)Net Worth means the sum total of the paid up share capital and free reserves. Free reserve means all reserves credited out of the profits and share premium account but does not include reserves credited out of the revaluation of the assets, write back of depreciation provision and amalgamation. Further, any debit balance of Profit and Loss account and miscellaneous expenses to the extent not adjusted or written off, if any, shall be reduced from Reserves and Surplus.

ii)Other income shall not be considered for arriving at annual turnover.

iii)For unutilized line of credit for fund based and non fund based limits and turnover indicated in foreign currency, the exchange rate as on seven days prior to the date of RFQ bid opening shall be used.

iv)The term 'date of bid opening' would mean the date of RFQ bid opening.

v)A firm can be a partner in only one Consortium; bids submitted by Consortium including the same firm as partner will be rejected.

vi)The Consortium shall necessarily identify one of the partners as lead partner.

vii)In case of Consortium, the bid security, and in the event of award to Consortium the performance bank guarantee, shall be in the name of all the partners of the Consortium.

viii)Dry (bulk) solid commodity mentioned at 6.1.2 above means dry solid bulk cargo covered in Appendix 4 (page 352 to 358) of International Maritime Solid Bulk Cargoes (IMSBC) code MSC 84/24/Add.3

ix)‘Quarter’ means 03 continuous months of a year starting from January i.e. Jan- Mar, Apr-Jun, July-Sept, Oct-Dec.

x)The Successful Bidder(s) shall supply coal from the mines based on which Qualification is sought.

xi)“Holding Company” and “Subsidiary” shall have the meaning ascribed to them as per Companies Act, in vogue.

xii)In case the Bidder is not able to furnish its audited financial statements on standalone entity basis, the unaudited unconsolidated financial statements of the Bidder can be considered acceptable provided the Bidder further furnishes the following documents on submission of its qualification :

(a)Copies of the unaudited unconsolidated financial statements of the Bidder along with copies of the audited consolidated financial statements of its Holding Company.

(b)A Certificate from the Chief Executive Officer (CEO) / Chief Financial Officer (CFO) of the Holding Company, as per the format enclosed in the bidding documents stating that the unaudited unconsolidated financial statements from part of the Consolidated Annual Report of the Company.

In case where audited results for the last preceding financial year are not available, certification of financial statements from a practicing Chartered Accountant shall also be considered acceptable.

The provisions of this Note (xii) shall also be applicable for Subsidiary Company/ Holding Company / subsidiary of Holding Company / Consortium Members.

xiii)For Bidder having green-field coal mines outside India or having entered into MOU with company/firms having green-field coal mines outside India it has been provided that in case the start of production from such green-field coal mines do not match the start of operation of NTPC’s power plant but is within a period of two(2) years after proposed start of operation of NTPC’s power plant then such bidder shall ensure supply of imported coal during this interim period through MOU with companies/firms having operating coal mine(s) outside India. Accordingly, green-field mines with start of operation envisaged beyond two (2) year from the proposed start of operation of NTPC’s power plant will not be considered for evaluation.

7.0NTPC reserves the right to reject any or all bids or cancel/withdraw the Invitation for Bids without assigning any reason whatsoever and in such case no bidder / intending bidder shall have any claim arising out of such action.

8.0Prospective bidders from Uttar Pradesh (U.P) State, India are compulsorily required to provide TIN number at the time of purchase of bidding documents from Office of NTPC.

A complete set of RFQ Documents may be downloaded by any interested Bidder on payment (non-refundable) of the cost of the documents as mentioned above in the form of a crossed account Payee demand draft in favour of NTPC Ltd., Payable at New Delhi or directly through the payment gateway at our e-Tender Site (https://etender.ntpclakshya.co.in). For logging on to the e-Tender Site, the bidder would require user id and password which can be obtained by submitting a questionnaire available at our e-Tender site as well as at NTPC tender site (www.ntpctender.com). First time users not allotted any vendor code are required to approach NTPC at least three

working days prior to Document Sale Close date along with duly filled in questionnaire for issuance of user id and password.

In case of Consortium, at least one of the Partner of the consortium must have purchased the bidding documents in his name.

9.0Issuance of RFQ documents to any bidder shall not construe that such bidder is considered to be qualified. Bids shall be submitted online and opened at the address given below. Bidder’s attendance during the RFQ Bid opening and Price Bid opening in NTPC premises is not envisaged

Bidder shall furnish Power of Attorney, Integrity pact, Affidavit of not being Black Listed / Banned as per format, Certificate from Statutory Auditor(s) of the Bidder as applicable in physical form as detailed in RFQ Documents before the stipulated bid submission closing date and time at the address given below.

Transfer of Bidding Documents purchased by one intending Bidder to another is not permissible.

10.0Address for communication:

AGM (CS-III) / Dy. Manager (CS-III) NTPC Limited, 6th Floor, Engineering Office Complex,

A-8A, Sector-24, NOIDA,

Distt. Gautam Budh Nagar, (U.P.), INDIA, Pin-201301

Tel. No. +91-120- 4946604/2410578/4948630 Fax No: +91-120-2410215 / 2410011 or at Office

e-mail: aksingh38@ntpc.co.in / mohan02@ntpc.co.in

Websites: https://etender.ntpclakshya.co.in or www.ntpctender.com or www.ntpc.co.in