DETAILED INVITATION FOR BID

NTPC LIMITED

(A GOVERNMENT OF INDIA ENTERPRISE)

CORPORATE CONTRACTS, NOIDA

INVITATION FOR BIDS

(INTERNATIONAL COMPETITIVE BIDDING)

FOR

RENOVATION & RETROFITTING OF ELECTROSTATIC PRECIPITATOR PACKAGE

FOR

KAHALGAON SUPER THERMAL POWER STATION, STAGE-I (4X210MW)

LOCATED AT KAHALGAON, DISTRICT BHAGALPUR, BIHAR, INDIA

IFB No.: 40063322

Date: 20.09.2016

Bidding Doc. No: CS-4210-104A(R&M)-2

1.0NTPC Limited (NTPC) invites online bids from eligible bidders in Two Stages [i.e. Stage-I (Techno-Commercial) Bid and Stage-II (Price) Bid] for the aforesaid package as per the brief Scope of Work mentioned hereinafter.

2.0BRIEF SCOPE OF WORK

The brief scope of works for the proposed Augmentation, Renovation & Modernization, Retrofitting & Refurbishment works of existing ESPs of Kahalgaon Super Thermal Power Station (KhSTPS) Stage–I (4x210MW) units shall include design, engineering, manufacturing, inspection and testing, CFD modelling, physipcal flow modelling, packing, forwarding to site, unloading, pre-assembly, assembly, dismantling of existing equipment as required, relocation of facilities as required, all associated ash handling, electrical, C&I & civil construction and foundation work as required, erection, supervision, pre- commissioning, gas distribution test, trial operation, testing and commissioning and performance testing of the equipment / system including supply of Mandatory Spares under the package.

The detailed scope of work is specified in Technical Specifications (Section-VI).

3.0NTPC intends to finance the subject package through External Commercial Borrowings / Own Resources.

4.0Detailed scope of work, specifications and terms & conditions are given in the Bidding Documents which are available for examination and sale at the address given below as per the following schedule:

Documents Sale Dates	:	From 20.09.2016 to 12.10.2016
& Timings		from 1000 hrs to 1700 Hrs. (IST)
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STAGE-I (4X210 MW)		ELECTROSTATIC PRECIPITATOR PACKAGE	1 OF 10
BIDDING DOCUMENT NO.: CS-4210-104A(R&M)-2		SECTION-I (IFB)

DETAILED INVITATION FOR BID

less than 99%, operating in conjunction with pulverized coal fired steam generating units, rated for a minimum of 200 MW unit size or minimum 600 T/hr steaming capacity, which should have been in successful operation in at least one (1) installation for a period not less than one (1) year prior to the date of Techno Commercial bid opening.

6.1.2Joint Venture between firms comprising of an organization incorporated for carrying out Renovation and Modernization (R&M) work of thermal power plant & the QESPM

(i)The Bidder should be a joint venture between firms comprising of:

(a)An organization incorporated for carrying out Renovation and Modernization (R&M) work of thermal power plant and who have executed / are executing Renovation / Retrofitting of Electrostatic Precipitators or Upgradation of Electrostatic Precipitators for a Pulverized coal fired steam generating units rated for a minimum of 110 MW unit size or minimum 375 T/hr steaming capacity.

AND

(b)An organization which meets the requirements of Clause 6.1.1 above.

(ii)The joint venture partners as at clause 6.1.2 (i) above should necessarily identify one of the partners as the lead partner. The joint venture should provide along with the techno commercial bid a Joint Venture Agreement, as per the format enclosed in the bidding documents in which the partners in the Joint Venture are jointly and severally liable to the employer to perform all the contractual obligations. The Joint Venture Agreement should be submitted along with the techno commercial bid, failing which the bidder shall be disqualified and its bid rejected. In this case, the bid security and in the event of award, the performance bank guarantee shall be in the name of all the partners of the joint venture.

6.1.3Engineering, Procurement and Construction (EPC) Organization

6.1.3	(a)	(i)	Engineering, Procurement and Construction (EPC)			organization
			executing Contracts for Electrostatic Precipitator package
			The Bidder should be an Engineering, Procurement and Construction (EPC)
			organization executing Contracts for Electrostatic Precipitator package for
			coal fired power plants and should have experience of supplying at least one
			(1) no. Electrostatic Precipitator for a Pulverized coal fired steam generating
			unit rated for a minimum of 200 MW unit size or above, which should have
			been in successful operation for a period of not less than one (1) year prior
			to the date of Techno Commercial bid opening.
				Alternatively
6.1.3	(a)	(ii)	Engineering, Procurement and Construction (EPC) organization having
			executed, in the last 10 years, large industrial projects on EPC basis
			(with or without civil works)
			The Bidder should be an Engineering, Procurement and Construction (EPC)
			organization and should have executed, in the last 10 years, large industrial
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BIDDING DOCUMENT NO.: CS-4210-104A(R&M)-2					SECTION-I (IFB)

DETAILED INVITATION FOR BID

projects on EPC basis (with or without civil works) in the area of power, steel, oil & gas, petro-chemical, fertilizer and / or any other process industry with the total value of such projects being INR 5,000 million or more. At least one of such projects should have a Contract value of INR 2,000 million or more. These projects should have been in successful operation for a period of not less than one (1) year prior to the date of Techno Commercial bid opening.

6.1.3(b) The Bidder who fulfills the requirements as per clause 6.1.3(a) (i) or 6.1.3 (a) (ii) above should Associate / Collaborate with the Qualified Electrostatic Precipitator manufacturer (QESPM) who meets the requirements of clause 6.1.1 above on its own. The Bidder shall either source the Electrostatic Precipitator from such QESPM or manufacture the Electrostatic Precipitator as per the design and manufacturing drawings released by such QESPM under an on-going Collaboration Agreement / Technology Licensing Agreement. The Bidder shall along with the Techno Commercial bid furnish an undertaking jointly executed by the Bidder and the QESPM for the successful performance of Electrostatic Precipitator, as per the format enclosed in the bidding documents in which the QESPM and the Bidder are jointly and severally liable to the Employer to perform all the contractual obligations including the technical guarantees for the complete Electrostatic Precipitator. The Deed of Joint Undertaking (DJU) shall be submitted along with the Techno Commercial bid, failing which the Bidder shall be disqualified and its bid rejected. In case of award, the QESPM will be required to furnish an on-demand bank guarantee for 5% (five percent) of the total Contract price of this Renovation & Retrofitting of Electrostatic Precipitator Package in addition to the Contract performance security to be furnished by the Bidder.

Note to clause 6.1.1, 6.1.2 & 6.1.3

(1)“Qualified Electrostatic Precipitator Manufacturer” (QESPM) means an entity meeting the requirements stipulated at Clause 6.1.1.

(2)The Bidder / QESPM shall also be considered qualified, in case the award for executing the reference works (Electrostatic Precipitator) has been received by the Bidder / QESPM either directly from owner of plant or intermediary organization from which it has received the order. However, a certificate from such owner of plant or the intermediary organization shall be required to be furnished by the Bidder / QESPM along with his bid in support of his claim of meeting the qualification requirement as per Clause 6.1.1 or 6.1.2 or 6.1.3 above. Further, certificate from owner of the plant shall also be furnished by the Bidder / QESPM for the successful operation of the Electrostatic Precipitator as specified at clause 6.1.1 and 6.1.3 above.

(3)Whenever the term 'coal fired' is appearing above, "Coal" shall be deemed to also include bituminous coal /sub-bituminous coal/brown coal / lignite.

(4)Holding Company as a Qualified Electrostatic precipitator Manufacturer

(i)A Holding Company, singularly or collectively along with its Subsidiaries (held either directly or indirectly), meeting the

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BIDDING DOCUMENT NO.: CS-4210-104A(R&M)-2	SECTION-I (IFB)

DETAILED INVITATION FOR BID

requirements of clause 6.1.1 above shall also be considered as Qualified Electrostatic Precipitator Manufacturer (QESPM).

(ii)In such a case, if the Holding company itself is not the Bidder as a QESPM, the Holding Company and all such subsidiaries lending strength/ experience to the Holding Company for meeting the requirements of clause 6.1.1 above should necessarily be part of the DJU to be submitted by the Bidder for successful performance of the Contract as per format enclosed in bidding documents, failing which the Bidder shall be disqualified and its bid rejected.

In case of award, the Holding Company and all such entities lending strength / experience to the Holding Company shall each be required to furnish separate on demand bank guarantees for an amount aggregating 5% of the total contract price of the Renovation & Retrofitting of Electrostatic Precipitator Package divided equally among them, in addition to the contract performance security to be furnished by the Bidder. This bank guarantee requirement shall supersede bank guarantee requirement stipulated at clause 6.1.3(b) for QESPM.

(iii)However, in case the Holding Company itself is the Bidder as a QESPM as per clause 6.1.1 above, the Holding Company shall submit its board resolution stating that in case of any likely change of management control of any of these subsidiaries, the bidder shall arrange for separate on demand bank guarantees, as per format enclosed with the bidding documents, from all such entities lending strength / experience to the holding company for fulfillment of requirements of clause 6.1.1 for an amount aggregating 5% of the total contract price of the Renovation & Retrofitting of Electrostatic Precipitator Package divided equally among them before the change in management control actually occurs.

(5)Bidder shall offer only the type of design Electrostatic Precipitator (i.e. Either

(i)Rigid discharge framework type of design Electrostatic Precipitator OR (ii) Moving Electrode plate type of design Electrostatic Precipitator) for which the Bidder/ Bidder’s Associate/ Bidder’s Collaborator (as the case may be) fulfils the requirements of Clause 6.1.1 on its own.

In case the Bidder/ Bidder’s Associate/ Bidder’s Collaborator (as the case may be) fulfils the requirements as per Clause 6.1.1 for one particular type of design ESP on its own but the Bidder wishes to offer the other type of design ESP for some/ all ESP fields, then the Bidder can do so, provided such Bidder Either sources the other type of design ESP from a QESPM who fulfils the requirements of Clause 6.1.1 for such other type of design ESP OR manufacturers the other type of design ESP as per the design and manufacturing drawings released by such QESPM under an ongoing Collaboration Agreement/ Technology Licensing Agreement.

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BIDDING DOCUMENT NO.: CS-4210-104A(R&M)-2	SECTION-I (IFB)

DETAILED INVITATION FOR BID

In such a case, the Bidder (in case of bids where either the Bidder/ Bidder’s Associate/ Bidder’s Collaborator/ The firm in the Joint Venture Bid (as the case may be) fulfils the requirements of Clause 6.1.1 for one particular type of design ESP) shall furnish a Deed of Joint Undertaking (DJU) executed by it and the QESPM (who fulfils the requirements of Clause 6.1.1 for the other type of design ESP, which the Bidder wishes to offer for some/ all ESP fields) in which the executants of DJU shall be jointly and severally liable to the Employer for the successful performance of the ESP, as per the format enclosed in the bidding documents. The DJU shall be submitted along with techno-commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected. In case of award, the QESPM (who fulfils the requirements of Clause 6.1.1 for the other type of design ESP, which the Bidder wishes to offer for some/ all ESP fields) will be required to furnish an on-demand bank guarantee for 5% (five percent) of the total Contract price of this Renovation & Retrofitting of Electrostatic Precipitator Package in addition to the Contract performance security to be furnished by the Bidder. This bank guarantee requirement shall be in addition to bank guarantee requirement stipulated at clause 6.1.3(b) for QESPM who is either the Bidder’s Associate/ Bidder’s Collaborator/ The firm in the Joint Venture Bid (as the case may be).

6.2.0Financial Criteria for Qualification

6.2.1Financial Criteria of Bidder for Qualification

a)The average annual turnover of the Bidder, in the preceding three (3) financial years as on the date of Techno-Commercial bid opening, should not be less than INR 964 Million (Indian Rupees Nine Hundred and Sixty Four Million only) or in equivalent foreign currency.

In case a Bidder does not satisfy the average annual turnover criteria, stipulated above on its own, its Holding Company would be required to meet the stipulated turnover requirements as above, provided that the Net Worth of such Holding Company as on the last day of the preceding financial year is at least equal to or more than the paid-up share capital of the Holding Company. In such an event, the Bidder would be required to furnish along with its Techno-Commercial bid, a Letter of Undertaking from the Holding Company, supported by the Holding Company’s Board Resolution, 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. For Joint Venture/Consortiums bid, all the partners of the Joint venture / Consortium shall be collectively required to meet the turnover criteria.

b)Net worth of the bidder should not be less than 100% (hundred percent) of its paid up share capital as on the last day of the preceding financial year on the date of Techno-commercial bid opening. In case the Bidder does not meet the Net worth criteria on its own, it can meet the requirement of Net worth based on the strength of its Subsidiary(ies) and/or Holding Company and/or Subsidiaries of its Holding company wherever applicable. In such a case, however the Net worth of the Bidder and its Subsidiary(ies) and/or Holding Company and/or Subsidiary(ies) of the

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BIDDING DOCUMENT NO.: CS-4210-104A(R&M)-2	SECTION-I (IFB)

DETAILED INVITATION FOR BID

Holding Company, in combined manner should not be less than 100% (hundred percent) of their total paid up share capital. However individually, their Net worth should not be less than 75% (seventy five percent) of their respective paid up share capitals. For Consortiums/Joint Ventures , the Net worth of all Consortium/Joint Venture members in combined manner should not be less than 100% (hundred percent) of their paid up share capital however individually, their Net worth should not be less than 75% (seventy five percent) of their respective paid up share capitals.

Net worth in combined manner shall be calculated as follows:

Net worth (combined) = (X1+X2+X3) / (Y1+Y2+Y3) X 100

Where X1, X2, X3 are individual Net worth which should not be less than 75% of the respective paid up share capitals and Y1,Y2,Y3 are individual paid up share capitals.

c)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 for substantiation of its qualification:

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

(ii)A Certificate from the CEO/CFO of the Holding Company, as per the format enclosed with the bidding documents, stating that the unaudited unconsolidated financial statements form part of the consolidated financial statements of the Holding Company.

In cases where audited results for the last financial year as on the date of Techno Commercial bid opening are not available, the financial results certified by a practicing Chartered Accountant shall be considered acceptable. In case, Bidder is not able to submit the Certificate from a practicing Chartered Accountant certifying its financial parameters, the audited results of three consecutive financial years preceding the last financial year shall be considered for evaluating the financial parameters. Further, a Certificate would be required from the CEO/CFO as per the format enclosed in the bidding documents stating that the financial results of the Company are under audit as on the date of Techno-commercial bid opening and the Certificate from the practicing Chartered Accountant certifying the financial parameters is not available.

6.2.2Financial Criteria of Collaborator/Associate for Qualification

(a)For Bidder seeking qualification through clause no 6.1.3 above, the average annual turnover of its Collaborator/Associate (meeting requirement of Clause 6.1.1 above) in the preceding three (3) financial years as on the date of Techno-Commercial bid opening, should not be less than INR INR 964 Million (Indian Rupees Nine Hundred and Sixty Four Million only) or in equivalent foreign currency.

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BIDDING DOCUMENT NO.: CS-4210-104A(R&M)-2	SECTION-I (IFB)

DETAILED INVITATION FOR BID

In cases where audited results for the last financial year as on the date of Techno Commercial bid opening are not available, the financial results certified by a practicing Chartered Accountant shall be considered acceptable. In case, Collaborator/Associate is not able to submit the Certificate from a practicing Chartered Accountant certifying its financial parameters, the audited results of three consecutive financial years preceding the last financial year shall be considered for evaluating the financial parameters. Further, a Certificate would be required from the CEO/CFO of the Collaborator/Associate as per the format enclosed in the bidding documents stating that the financial results of the Company are under audit as on the date of Techno-commercial bid opening and the Certificate from the practicing Chartered Accountant certifying the financial parameters is not available.

Notes for clause 6.2.1 & 6.2.2

(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)“Holding Company” and “Subsidiary Company” shall have the meaning ascribed to them as per Companies Act of India.

(iv)For annual Turnover indicated in foreign currency, the exchange rate as on seven (7) days prior to the date of Techno-Commercial bid opening shall be used.

7.0Notwithstanding anything stated above, the Employer reserves the right to assess the capabilities and capacity of the Bidder/ his collaborators/ associates/ subsidiaries/ group companies to perform the contract, should the circumstances warrant such assessment in the overall interest of the Employer.

8.0NTPC 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.

9.0A complete set of Bidding 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.

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