INVITATION FOR BIDS

Development of Gas Supply Infrastructure and

Supply of Gas for 25 years to Dual Fuel Power

Project (50 MW±10%) at Port Blair, Andaman &

Nicobar Islands

NVVN / C&M / RE-34 / 2019-20

Page 1 of 7

NTPC VIDYUT VYAPAR NIGAM (NVVN) LIMITED

(A WHOLLY OWNED SUBSIDIARY OF NTPC LTD.)

INVITATION FOR BIDS (IFB)

for

Selection of Concessionaire cum Seller for Development of

Gas Supply Infrastructure and Supply of Gas for 25 years to Dual Fuel Power Project (50 MW±10%)

at Port Blair, Andaman & Nicobar Islands

(International Competitive Bidding)

IFB No.: NVVN / C&M / RE-34 / 2019-20 Date: 25-09-2019

1.0 NVVN invites online Bids on 'Single Stage Two Envelope' bidding basis (Envelope-I: Techno-Commercial

Bid & Envelope-II: Price Bid) from eligible Bidders for aforesaid Project as per the scope of work briefly

mentioned hereinafter:

2.0 BRIEF SCOPE OF WORK

2.0.1 The scope of the Project shall cover the Supply of Gas to the Delivery Point at the Andaman &

Nicobar Gas Power Plant (50 MW ± 10%), for a duration of 25 years and also the Design,

Supply, Construction, Development, Commissioning and Testing, Operation and Maintenance

of the dedicated Gas Supply Infrastructure Facilities on Design, Build, Finance, Operate,

Maintain and Transfer (DBFOT) basis and development of Other Associated Facilities designed

to supply Gas upto the full capacity of Power Plant.

2.0.2 The scope of the Project, completely covers the following activities and in accordance with the

provisions of the Agreements (Gas Sales Agreement (GSA) and Gas Infrastructure Agreement

(GIA)) and read in conjunction with all clauses of the Bidding Documents

a. choosing an appropriate techno-commercially feasible technology option for the Gas Supply

Infrastructure Facilities, Other Associated Facilities and ensuring that “Proven Operational

Technology” is chosen and meets the availability, operational and safety requirements for the

entire term of the Agreements;

b. complying with statutory requirements and obtaining all consents, clearances and permits from

statutory authorities, wherever required and maintaining all consents, clearances and permits in

full force and effect during the entire term of the Agreements;

c. conducting any sort of studies and survey required for installation of the Gas Supply

Infrastructure Facilities and Other Associated Facilities;

d. designing, supplying, constructing, developing, commissioning and testing, the Gas Supply

Infrastructure Facilities designed to supply Gas upto the full capacity of Power Plant, for

uninterrupted supply of Gas to the Delivery Point in accordance with the applicable Law, the

terms and conditions of the Agreements and Good Industry Practices;the Bidder shall have the

provision to designate up to 30 (thirty) days of Planned Maintenance in every five year period

starting from the date, immediately after the last day of the Commissioning Period;

e. ensuring a minimum Gas storage capacity of 140 Billion BTU energy equivalent of Natural Gas

(approximately 15 days of Gas supply for the full capacity of Power Plant) at the Project Site;

f. connecting the Gas Supply Infrastructure Facilities with the Power Plant at the Delivery Point;

for the avoidance of doubt, the Gas metering station shall be part of the Gas Supply

Infrastructure Facilities and is part of the scope of the Bidder

INVITATION FOR BIDS

Development of Gas Supply Infrastructure and

Supply of Gas for 25 years to Dual Fuel Power

Project (50 MW±10%) at Port Blair, Andaman &

Nicobar Islands

NVVN / C&M / RE-34 / 2019-20

Page 2 of 7

g. fulfilling the reliability tests and owner acceptance tests including the tests for performance

demonstration after successful completion of Gas Supply Infrastructure Facilities;

h. making all other arrangements like tying up with Gas supplier, developing Other Associated

Facilities like making arrangements for the transport of Gas to the Power Plant, installing

suitable Gas regasification facilities, installing Gas pipelines, installing the Gas conditioning

station for delivery of Gas to Power Plant at desired temperature and pressure, as applicable

required to ensure long term Gas supply to the Power Plant.

i. commencing the supply of Gas of the Contracted Quantity to NVVN based on the dates and

duration provided in the Agreements and continuance of the supply of Gas for the entire term of

the GSA as per the terms and conditions of the Agreements;

j. owning the Gas Supply Infrastructure Facilities throughout the term of the Agreements free and

clear of encumbrances;

k. operating and maintaining of the Gas Supply Infrastructure Facilities including providing spares

& consumables for the entire duration of the Agreements;

l. ensuring the insurance and other requirements for the Gas Supply Infrastructure Facilities in

accordance with the provisions of the Gas Infrastructure Agreement (GIA);

m. maintaining the controlling shareholding prevalent at the time of signing Agreements for at least

up to a period of 5 (five) years after the Commercial Operation Date;

n. transferring the Gas Supply Infrastructure Facilities to NVVN upon Termination in accordance

with the provisions of the Agreements; and

o. fulfilling all obligations under the Agreements

2.0.3 In the event the technology so chosen by the Bidder requires marine transport of LNG, the

Bidder shall be required to build new LNG ship as per “Make in India” policies and guidelines.

The Bidders shall abide to all the relevant Standards / Guidelines of “Make in India” for building

new LNG ship as applicable from time to time by the Government of India or a substitute thereof

and may avail financial assistance as available under the guidelines. However, such marine

transport may not be dedicated for the project and can be used elsewhere as well only after

meeting all obligations under the project. The cost of such marine transport shall be considered

for the project proportionate to its usage for the project. The Bidder shall have to opt between

the following two options at the time of submission of the Bid:

a. “Non-Dedicated LNG Ship Option” – If the Bidder chooses this option, the LNG Ship shall

be considered, as part of the Other Associated Facilities and the associated terms and

conditions in this RFP and the Agreements shall be applicable.

b. “Dedicated LNG Ship Option” – If the Bidder chooses this option, the LNG Ship shall be

considered, as part of the Gas Supply Infrastructure Facilities and the associated terms and

conditions in this RFP and the Agreements shall be applicable

3.0 QULAIFICATION REQUIREMENTS FOR BIDDERS

3.1 Technical Criteria

In addition to the requirements stipulated under section ‘Instruction to Bidder (ITB)’, the Bidder should

also meet the qualifying requirements stipulated hereunder in clauses 3.1.1, 3.1.2, 3.1.3, 3.1.4 and 3.2

along with the notes below

INVITATION FOR BIDS

Development of Gas Supply Infrastructure and

Supply of Gas for 25 years to Dual Fuel Power

Project (50 MW±10%) at Port Blair, Andaman &

Nicobar Islands

NVVN / C&M / RE-34 / 2019-20

Page 3 of 7

3.1.1 LNG Sourcing Experience

The Bidder should have successfully sourced 1, 40,000 Tonnes (72, 00,000 MMBTU) or more

of LNG in the preceding 2 (two) years period, of the Techno Commercial Bid opening Date,

either in India or Globally.

AND

The Bidder shall demonstrate contractual right to procure 70,000 Tonnes (36, 00,000 MMBTU)

per annum or more of LNG on long term basis through firm contractual agreements. The

duration of supply mentioned in these agreements should show availability during the 5 (five)

years period starting after 24 (Twenty Four) months post Techno Commercial Bid opening date

3.1.2 LNG Supply Experience

The Bidder should have sold 1, 40,000 Tonnes (72, 00,000 MMBTU) or more of LNG in the

preceding 2 (two) years period, from the Techno Commercial Bid opening Date either in India or

globally.

3.1.3 Gas Supply Infrastructure Project Experience

The Bidder should have successfully constructed/developed, commissioned, tested and

operationalized, during the last 7 (seven) years prior to the Techno Commercial Bid opening

Date, in either of the following:

a. One Eligible Project not less than the amount equal to INR 464 Crs. (Indian Rupees Four

Hundred and Sixty Four Crores) or equivalent foreign currency.

b. Two Eligible Projects, each of which is not less than the amount of INR 290 Crs. (Indian

Rupees Two Hundred and Ninety Crores) or equivalent foreign currency.

c. Three Eligible Projects, each of which is not less than the amount of INR 232 Crs.(Indian

Rupees Two Hundred and Thirty Two Crores) or equivalent foreign currency.

NOTES:

(i) Eligible Projects as stipulated in the above Clause 3.1.3 shall be either be a LNG Liquefaction

Terminal or Offshore LNG Regasification Terminal or Onshore LNG Regasification Terminal

or a Floating LNG Storage Unit {Floating and Storage Regasification Unit (FSRU)/ Floating

and Regasification Unit (FRU) / Floating and Storage Unit (FSU)} which is completed, either

in India or Globally.

(ii) The entity claiming Gas Supply Infrastructure Project Experience as per the above Clause iii)

should have held, in the company owning the Eligible Project, a minimum of 26% (twenty six

per cent) equity during the entire period of construction for which Eligible Experience is being

claimed.

3.1.4 Gas Supply Infrastructure Operations and Maintenance Experience

The Bidder should have 06 (six) months or more of operations and maintenance experience, in

Eligible Projects having installed capacity not less than 0.20 (zero point two) Million Tons Per

Annum (MTPA) as on the date of Techno Commercial bid opening.

NOTES:

(i) Eligible Projects as stipulated in the above Clause 3.1.4 shall either be a LNG Liquefaction

Terminal or Offshore LNG Regasification Terminal or Onshore LNG Regasification Terminal or

a Floating LNG Storage Unit {Floating and Storage Regasification Unit (FSRU) / Floating and

Regasification Unit (FRU) / Floating and Storage Unit (FSU)} which is completed, either in India

or Globally.

(ii) The entity claiming the O&M experience for the Eligible Projects as stipulated in the above

Clause 3.1.4, should have undertaken Operations and Maintenance on its own name and / or

by an Affiliate and / or be a Associate who have an Operations and Maintenance Contract and

INVITATION FOR BIDS

Development of Gas Supply Infrastructure and

Supply of Gas for 25 years to Dual Fuel Power

Project (50 MW±10%) at Port Blair, Andaman &

Nicobar Islands

NVVN / C&M / RE-34 / 2019-20

Page 4 of 7

received payments from its client(s) for Operation and Maintenance Works executed.

(iii) For LNG Supply Experience, the Bidder / its constituent Consortium Members shall attach

copies of the Signed Contract (with unpriced contract copy).

(iv) For LNG Sourcing Experience, the Bidder / its constituent Consortium Members shall attach

copies of the Signed Contract (with unpriced contract copy).

(v) For LNG Sourcing experience, the Bidder shall submit the following:

a. The Bidder can submit existing contracts which has validity of 5 years period after 24

months post Techno Commercial bid opening date along with a declaration on their letter

head (as per the enclosed format) that 70,000 Tonnes (36,00,000 MMBTU) per annum or

more of LNG is not tied up out of the submitted contracted quantity.

b. In case Bidder does not have existing contracts, Bidder will provide MoU / agreement along

with a declaration on their letter head (as per the enclosed format) that 70,000 Tonnes (36,

00,000 MMBTU) per annum or more of LNG is not tied up out of the submitted quantity

mentioned in MoU / agreement.

The declaration shall be signed by authorised signatory of the Bidder.

3.1.5 In addition, the Bidder must provide the following supporting documents :

a. Certificate from a user of the proposed technology stating that the project is commissioned and

operating successfully (for 2 (two) years during the last 7 (seven) years prior to the Techno

Commercial Bid opening Date) and Commissioning certificate from EPC player of the plant

which has used the proposed technology. The Bidder shall provide details and basis of the

technology proposed for the Gas Supply Infrastructure Facilities. The Bidder shall also provide

global examples where the proposed technology has been deployed. The bidder shall provide a

declaration on the letterhead of the Bidder (duly signed by authorized signatory of the Bidder),

that the Proven Operational Technology is being used for the Project.

b. Memorandum of Understanding (MOUs) / Tie up with the EPC company who has constructed,

commissioned, tested and operationalized LNG Liquefaction Terminal or Offshore LNG

Regasification Terminal or Onshore LNG Regasification Terminal or a Floating LNG Storage

Unit (FSRU / FRU / FSU), during the last 7 (seven) years prior to the Techno Commercial Bid

Opening Date.

c. Declaration from Bidder on its letterhead that the technology being deployed meets all the

existing regulations in India on the Bid Due Date

3.1.6 In case the Bidder is a Consortium of entities, the Consortium Members can collectively meet

the Techno Commercial Criteria. However, the Lead Member of the Consortium shall meet at

least one Techno Commercial Criteria specified in the Clause 3.1.1, 3.1.2, 3.1.3 and 3.1.4.

3.2 Financial Criteria

3.2.1 Turnover Criteria

3.2.1.1 The average annual turnover of the Bidder, in the preceding 3 (three) completed financial years

as on the Bid Due Date, should not be less than INR 290 Crs (Indian Rupees Two Hundred and

Ninety Crores) or equivalent foreign currency. In case of consortium this criteria shall be met by

Lead Member.

3.2.1.2 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 its paid-up share capital. In such an

INVITATION FOR BIDS

Development of Gas Supply Infrastructure and

Supply of Gas for 25 years to Dual Fuel Power

Project (50 MW±10%) at Port Blair, Andaman &

Nicobar Islands

NVVN / C&M / RE-34 / 2019-20

Page 5 of 7

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.

3.2.2 Net worth Criteria

3.2.2.1 The Net worth of the Bidder shall not be less than 100% (hundred percent) of the Bidder’s paid

up share capital as on the last day of the preceding financial year.

3.2.2.2 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 companies 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 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 (if

applicable), the Net worth of the Lead Member shall not be less than 100% (hundred percent) of

the Lead Members’s paid up share capital as on the last day of the preceding financial year.

Also, the Net worth of all consortiums 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. However, Net worth

of the Lead Member shall not be less than 100% of its paid up share capital.

3.2.3 The Bidder / its constituent Consortium Members shall attach copies of the balance sheets,

financial statements and Annual Reports for the preceding 3 (three) completed financial years

as on the Techno Commercial Bid Opening date. The financial statements shall:

1) reflect the financial situation of the Bidder or Consortium Members and its/ their Affiliates

wherever applicable where the Bidder is relying on their financials;

2) be audited by a statutory auditor;

3) be complete, including all notes to the financial statements; and

4) correspond to accounting periods already completed and audited

3.2.3.1 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 furnishes the following further documents on substantiation 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 Managing Director / Chief Executive Officer / Chief Financial

Officer, being a full time director on the Board of the Holding Company, stating that the

unaudited unconsolidated financial statements of Bidder Company form part of the

Consolidated Annual Report of the Holding Company.

3.2.3.2 In cases where audited results for the last financial year as on the date of Bid Due Date 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 stating that the

financial results of the Company are under audit as on the date of Bid Due Date and the

Certificate from the practicing Chartered Accountant certifying the financial parameters is not

available.

INVITATION FOR BIDS

Development of Gas Supply Infrastructure and

Supply of Gas for 25 years to Dual Fuel Power

Project (50 MW±10%) at Port Blair, Andaman &

Nicobar Islands

NVVN / C&M / RE-34 / 2019-20

Page 6 of 7

NOTES:

(i) Net worth shall mean 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) The Bidder shall provide an Auditor’s Certificate specifying the net worth of the Bidder and also

specifying the methodology adopted for calculating such net worth in accordance with the

clause of this document.

(v) For the Techno Commercial and Net worth Qualification requirements, respective Affiliates of

Bidders would also be eligible as hereunder.

For purposes of this RFP (Request for Proposal), Affiliate means, in relation to the Bidder/

Consortium Member, a person who controls, is controlled by, or is under the common control

with such Bidder/ Consortium Member (the “Affiliate”). As used in this definition, the expression

“control” means, with respect to a person which is a company or corporation, the ownership,

directly or indirectly, of more than 50% (fifty per cent) of the voting shares of such person, and

with respect to a person which is not a company or corporation, the power to direct the

management and policies of such person by operation of law.

It is clarified that a certificate from a statutory auditor who audits the book of accounts of the

Bidder or the Consortium Member shall be provided to demonstrate that a person is an Affiliate

of the Bidder or the Consortium as the case may be.

(vi) For the Techno Commercial and Financial Qualification Requirements, if data is provided by the

Bidder in foreign currency, then SBI Bills Selling exchange rate as on 7 (seven) days prior to the

date of Techno Commercial bid opening shall be considered.

For the avoidance of doubt, financial year shall, for the purpose of this RFP hereunder, mean

the accounting year followed by the Bidder / Consortium Member in the course of its normal

business

4.0 Detailed Request for Proposal (RFP), Gas Supply Agreement (GSA) and Gas Infrastructure Agreement

(GIA) and Terms & Conditions are given in the Bidding Documents, which are available for examination and

Sale at www.eprocurentpc.nic.in as per the following schedule:

Issuance of IFB 25.09.2019

Bidding Document Sale Date Start From 28.09.2019 15.00 hrs

Last Date for receipt of queries for

clarification from prospective Bidders*

22.10.2019

Date, Time and Venue for Pre-Bid

Conference*

30.10.2019, 1030 Hrs (IST) at NVVN, New Delhi

Last Date & Time for Bid (Techno

Commercial and Price Bids) Submission

15.11.2019 upto 1500 Hrs. (IST)

Techno Commercial Bid (Envelope-I)

Opening Date & Time

19.11.2019 at 1700 Hrs. (IST)

NVVN Ltd

INVITATION FOR BIDS

Development of Gas Supply Infrastructure and

Supply of Gas for 25 years to Dual Fuel Power

Project (50 MW±10%) at Port Blair, Andaman &

Nicobar Islands

NVVN / C&M / RE-34 / 2019-20

Page 7 of 7

Floor, Core 5, SCOPE Complex, New Delhi 110003

Price Bid (Envelope II) Opening Date &

Time

Shall be intimated separately by NVVN

Cost of Bidding Document INR 22,500/- (Indian Rupees Twenty Two Thousand

Five Hundred only)

USD 500 (US Dollar Five Hundred only)

* Bidders to note that No Queries from Bidders, whatsoever, shall be entertained by NVVN

beyond the date of Pre-Bid Conference as specified above.

5.0 All bids must be accompanied by Bid Security for an amount of INR 32,00,00,000/- (Indian Rupees Thirty

Two Crore only) or USD 4,571,500/- (US Dollars Four Million Five Hundred and Seventy One

Thousand Five Hundred only) in the form as stipulated in the Bidding documents.

ANY BID NOT ACCOMPANIED BY AN ACCEPTABLE BID SECURITY IN SEPARATE

SEALED ENVELOPE SHALL BE REJECTED BY THE EMPLOYER AS NON-RESPONSIVE

AND SHALL NOT BEOPENED

6.0 A complete set of Bidding Documents may be downloaded by any interested Bidder from website

www.eprocurentpc.nic.in. For logging on to the site, the bidder would require user id and password which

can be obtained by registering on this site.

Note: No hard copy of Bidding Documents shall be issued

7.0 The Bidder may be a single entity or a group of entities (the “Consortium”), coming together to implement

the Project. However, no Bidder applying individually or as a member of a Consortium, as the case may be,

can be member of another Bidder. The number of members in a Consortium shall not exceed 3 (three). The

members of the Consortium shall nominate one member as the lead member (the “Lead Member”), who

shall have an equity share holding of at least 49% (forty-nine per cent) of the paid up and subscribed equity

of the SPV.

8.0 Issuance of bid 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 in the presence of Bidder’s

representatives who choose to attend the bid opening. Bidder shall furnish Proof of Payment towards Cost

of Bid Documents, Bid Security, Power of Attorney, Integrity Pact, Consortium Agreement (If applicable), No

Deviation Certificate and Original statement of Legal Capacity separately offline as detailed in Bidding

Documents by the stipulated bid submission closing date and time at the address given below

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

10.0 Address for communication:

AGM (C&M) / SENIOR MANAGER (C&M)

NVVN Limited,

CORE 5

Floor, SCOPE COMPLEX, LODHI ROAD,

NEW DELHI-110003

Tele. No. +91-24366185, 24387002, 24387563

Fax No: +91-11-24362009

e-mail: nvvncontracts@ntpc.co.in