Jawa-1 PQ Meeting Presentation Deck - 4june15 - EY

Procurement of
Jawa-1 (2 x 800 MW)

Gas Fired Power Plant (GFPP)
(Gas Turbine PP/Combined Cycle PP)
IPP Project
Pre-qualification Meeting
4 June 2015
Page 1
Table of contents
Page
Section 1
General information
Section 2
Scope of the Project
Section 3
Pre-qualification criteria
Section 4
Application criteria
15
Section 5
Evaluation criteria
17
Section 6
Evaluation results
19
Section 7
Pre-qualification results
21
Section 8
Forms
23
Section 9
Contact persons
25
Page 2
Section 1
General information
General information
COD & Term
Scheme
Location &
Interconnection Point
Page 4
2018/2019
25 years of Agreement (Project
Period)
Build Own Operate Transfer (BOOT)

Without Government Guarantee
Muara Tawar
Jawa-1 (2 x 800 MW) Gas Fired Steam Power Plant (GFPP) (Gas Turbine PP/Combined Cycle PP)
IPP Project Pre-qualification Meeting
Interconnection system
Pontianak
KALIMANTAN
SULAWESI
SUMATRA
PAPUA
East Java
JAVA
NUSA TENGGARA
Muara Tower
substation
Page 5
Section 2

1. Development
Design, procure and build the Power Plant, including its equipment, building
facilities and related infrastructure (including but not limited to gas and
water supply). Scope also includes conducting testing and commissioning.
2. Operation
Owning, operating, and maintaining the Power Plant during Project Period.
3. Special
Facilities
Constructing (i) 500 kV Transmission Line, (ii) expansion of the nearest Sub
Station and (iii) other facilities as stipulated in more details in RFP (Special
Facilities) to be transferred to PLN at COD and to receive payment against
transfer of Special Facilities regularly based on the electricity sale during
Project Period.
4. Gas supply
Entering into a long-term contract with Gas Supplier that has performed
exploration, EIA, Feasibility Study (FS) and other obligation in accordance
with the applicable Regulations.
5. Compliance
Applying for and obtaining relevant permits from the authorities, including
but not limited to preparing AMDAL or UKL/UPL as well as meeting all
environmental regulations.
Page 7
Section 3
General Criteria
Page 9
Business Criteria
Financial Criteria
Technical Criteria
General criteria
GENERAL CRITERIA
Not currently listed in the blacklist issued by PLN or other Government Institutions;
Have no record of breach in procurement process or contract (including but not limited to revocation of
LOI, failure in contract sign, termination of contract), contract delay, history of excessive claims and use of
unskilled labor, in the last two (2) years;
Have no record of negligence to pay tax obligations, royalties, insurance and other obligations under
applicable Regulations both in Indonesia and in countries of origin;
Have no criminal records or civil court concerning disobedience in tax and customs payments or other
obligations to PLN or agency of Government;
Unrestricted to any contracts with other parties that specifically does not allow commercial activity that
may violate the contract.
No member of each Applicant or Affiliates of such member:
is currently suspended or blacklisted by PLN or any Government Agency from doing business for any
reason whatsoever, including but not limited to the blacklists issued by the Government Procurement
Policy Board (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah);
have entered into any agreement with another party that contains a negative covenant that specifically
prohibits it from acting as Project Sponsor, violation of which may result in a breach of contract;
have any record of material unsatisfactory past performance, in Procurement Committee's opinion,
including breach of contract, untimely completion, poor claims history, or defective workmanship;
have overdue debts to the revenue or customs authorities in Indonesia or to the relevant authorities in
their country of incorporation which are excessive in the Procurement Committees opinion; or
have any record of civil or criminal cases pending or resolved against them involving non-payment of
tax, duty, or other obligation towards PLN or any Government Agency which is excessive in the
Procurement Committees opinion.
Page 10
Business criteria
BUSINESS CRITERIA
Applicants shall be in form of consortium which may consist of several
Domestic Companies, Foreign Investment Companies or Foreign
Companies with:
At least one (1) member shall be Domestic Company;
The share portion of Domestic Companies in consortium shall be at
least 5%; and
Lead Member largest portion of share
The maximum number of members of the Consortium is four (4)
companies;
Submitting original document of consortium agreement, signed over Rp
6,000 Indonesias stamp duty by all Consortium members, which shall
state inter alia, but not limited to, consortium composition (members and
shares) and role of each Consortium member;
Each member in the Consortium should not be a member of other
Consortium;
Up to the bid proposal submission, each Qualified Applicant, may change
(add new or deduct or substitute) members of its consortium, or change
their intended share composition, subject to following limitations:
Consortium Leader shall remain the same; and
unanimously agreed by all members of Consortium.
The member and share compositions of established SPC until the fifth
(5th) anniversary of the Projects COD shall not be changed.
Page 11
Foreign Company
and/or
Foreign
Investment
company (PMA)
5%
Domestic
Financial criteria
FINANCIAL CRITERIA
Submit Audited consolidated Financial Statements 2012, 2013 & 2014 for each
member of Consortium;
Average 3 Year EBITDA (in agregate) of at least USD 560 millions;
Latest (within last twelve months) ratings from either:
S&P or Moodys or Fitch with at least an investment grade rating, or
D&B rating (Dun & Bradstreet) with the following minimum ratings with Consortium
Leader and member minimum ratings of 5A1 and 5A2 respectively
The ability to:
Provide supporting letter from lenders/banks (refer to form in Attachment 4) that
the bid proposal submitted later has been verified in terms of financial and
administrative viability by lender/bank;
Provide the full amount of the required equity being not less than 25% of the
required total project cost; and
Open a dedicated account (project account) with a sufficient value to finance the
feasibility study, licensing and land acquisition costs of USD 5 million upon PPA
signing.
Page 12
Technical criteria
TECHNICAL CRITERIA
The Applicant consists of companies that meet criteria and have experience (in aggregate):
At least one (1) member of the Applicant has successfully developed at least one (1) thermal power
plant IPP project that has achieved COD in the last ten (10) years; and
At least 1 (one) member of Consortium has experience as:
EPC contractor which has successfully (directly or through an EPC contractor) managed and executed
in the last ten (10) years the engineering, procurement and construction, including commissioning and
testing, up to COD, of at least 1 (one) thermal power plant; or
O&M Contractor which has successfully (directly or through an O&M Contractor) managed, operated
and maintained in the last ten (10) years at least one (1) thermal power plant for more than three (3)
consecutive years;
Applicants may use technical experiences of their parent company which has minimum share of 25% in the
Applicants company.
The experience as mentioned above are recognized when the Applicant or its parent company has a
minimum of 10% share in the said project(s) and the experience as mentioned above are recognized when
the Applicant or its parent company has a minimum of 10% work portion of EPC Contract or O&M Contract
in the said project(s).
If Applicants use its parent company's technical experiences then the parent company shall provide
statement letter (in its own format) to be responsible for any technical risks over the Project, if any, which
occur in the future.
Submitting an Expression of Interest from the turbine/combine cycle vendors with their experience in
supplying equipments of a power plant with total capacity of at least eight hundred (800) MW.
Note:
1. If parent companys experience is used, then the parent company shall provide a statement letter stating willingness / commitment to
guarantee the technical risks associated with the Project
Page 13
Technical criteria (Gas supplier)
TECHNICAL CRITERIA (GAS SUPPLIER)
At least one of the Consortium members shall be Gas Supplier or company
which has signed MOU/HOA/SPA with a Gas Supplier;
Submitting a statement letter from the Consortium related with the fulfillment
of gas supply for Plant along the PPA period which shall be provided with annual
scheme of gas volume quantity and gas supply sources;
Submitting a copy of valid MOA/HOA/SPA from Gas Supplier, legalized by public
notary;
Submitting a statement letter from the Consortium (in own format),
acknowledged by Gas Supplier, stating that between the company of
MOU/HOA/MSPA holders and SPC there will be a long-term commitment which
shall be ready upon the signing of the PPA; and
Submitting a statement letter from Gas Supplier or MOU/HOA/MSPA holders
company (in own format), confirming that gas offered shall be fully dedicated to
the necessity of this Project.
Page 14
Section 4
Any expenses incurred as a result of all activities associated with

Applicant's participation in Pre-qualification Process shall be borne by
each Applicant.
Applications for Pre-qualification Process shall be bundled in one (1)
sealed envelope and must be addressed and submitted directly (not by
post) to:
The envelope shall clearly be labelled "Pre-qualification Application
for the Power Purchase Procurement from Jawa-1 (2 x 800 MW) GasFired Power Plant (Gas Turbine PP/Combined Cycle PP) Independent
Power Producer Project through Open Tender with Pre-qualification".
Pre-qualification Application shall consist (1) original and four (4) sets of
electronic copies of the Application stored in CDs. The CD-ROM should be
clearly marked as follows:
The paper sets of documents must be clearly marked as Original.
Every page of each Pre-qualification Application must be numbered
and initialed by the relevant Applicants Authorized Representative. In
the event of discrepancies between the Original and electronic copy,
the Original will prevail.
All requested information shall be submitted to PLN to the attention of
Procurement Agent by each Applicant in English.
All requested documents shall be submitted to PLN by each Applicant in
English or Bahasa Indonesia. If the original documents are not drawn up
in English or Bahasa Indonesia, then a certification by a public notary and
a sworn or certified English translation are required.
Page 16
PT PLN (PERSERO)
HEAD OFFICE
Attention: Procurement Agent
Jawa-1 (2 x 800 MW)
(Gas Turbine PP/Combined Cycle
PP) IPP Project
Main Building 13th Floor
Jl. Trunojoyo Block M I/135,
Kebayoran Baru, Jakarta 12160
Tel : +62-21-722 7049
Fax : +62-21-725 1511
[Name of Applicant]
Pre-Qualification Application
Electronic Copy
Jawa-1 (2 x 800 MW)
Gas-Fired Power Plant (Gas
Turbine PP/Combined Cycle PP)
Pre-qualification Proposal
Submission date:
July 7th, 2015 by 15.00

WIST (at the latest)
Section 5
Evaluation criteria
Evaluation criteria
Evaluation for Pre-qualification on the completeness, correctness and

appropriateness of the information in the Pre-qualification Application submitted
by the Applicant(s) will be conducted in 1 (one) stage and will be assessed based
on Pre-qualification Criteria.
The Procurement Agent shall substantively evaluate each Applicants Prequalification Application in private, on a pass or fail basis. Each Applicant
must meet all of the criteria set forth in the Pre-qualification Criteria and
Application Criteria in order to pass the evaluation process.
The Procurement Agent may request in writing any additional information or

clarification in connection with any response in an Applicants Pre-qualification
Application. Such requests will be forwarded to the relevant Authorized
Representative.
In the subsequence processes, should there any of the submitted documents

proved to be incorrect or not true, subsequently the Applicants will be
disqualified.
Page 18
Section 6
Evaluation results
Evaluation results
PLN will inform each Applicant through a written notice whether it has qualified
as a Qualified Applicant or not.
An Applicant which has not qualified as a Qualified Applicant may submit an

objection to PLN, in writing, within five (5) Business Days of the notification of
the pre-qualification assessment result, which objection shall be considered by
the PLN (using such criteria as it shall, in its sole discretion, determine) within
five (5) Business Days of receipt of such objection.
Each submission of objection must be completed with: (i) an objection bond

in the form of a Bank Guarantee for an amount of USD 650,000 (six
hundred and fifty thousand US Dollars) which will be forfeited if the
objection is refuted; and (ii) any supporting document regarding such
objection.
The objection of Pre-qualification assessment results can only be filed regarding

the execution of Pre-qualification procedure.
No appeal shall be applied.
Page 20
Section 7
In case of the number of Qualified Applicants equals to or more than three

(3), the procurement process will proceed to the Bidding Process.
In case of the number of Qualified Applicants less than three (3), the Prequalification Process will be repeated.
Pre-qualification Process result will be announced on July 28th, 2015.
Page 22
Section 8
Forms
Forms
Letter of application and statement
Power of attorney
Form 1 and its attachments
u
u
Form 2
General information
Consortium members participation data based on Consortium

Agreement
Audited financial capabilities
Information of the relevant projects that are being done in

Indonesia
Power plant project experience
Form 7
Consortiums statement letter
Expression of interest letter from gas turbine vendors
Applicants statement letter on fulfillment of gas supply for Jawa-1

project
Page 24
Section 9
Contact persons
E-mail Contacts for Further Inquiries

Procurement Agent (PT Ernst & Young Indonesia (EYI)):
1. Nawal Nely
(nawal.nely@id.ey.com)
2. Yusuf A. M. Sujono
(yusuf.sujono@id.ey.com)
3. Donauly Situmorang
(Donauly.Situmorang@id.ey.com)
4. Ilodye M. Taruly (Alin)
(Ilodye.Taruly@id.ey.com)
5. Francisca A. Wulaningrum
(Francisca.Wulaningrum@id.ey.com)
Page 26
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Procurement of

Jawa-1 (2 x 800 MW)

Scope of the Project

COD & Term

Build Own Operate Transfer (BOOT)

Scope of the Project

Scope of the Project

Any expenses incurred as a result of all activities associated with

July 7th, 2015 by 15.00

Evaluation for Pre-qualification on the completeness, correctness and

The Procurement Agent may request in writing any additional information or

In the subsequence processes, should there any of the submitted documents

An Applicant which has not qualified as a Qualified Applicant may submit an

Each submission of objection must be completed with: (i) an objection bond

The objection of Pre-qualification assessment results can only be filed regarding

No appeal shall be applied.

In case of the number of Qualified Applicants equals to or more than three

Pre-qualification Process result will be announced on July 28th, 2015.

Form 1 and its attachments

Form 3 and its attachments

Consortium members participation data based on Consortium

Form 4 and its attachments

Audited financial capabilities

Form 5 and its attachments

Information of the relevant projects that are being done in

Form 6 and its attachments

Power plant project experience

Consortiums statement letter

Form 8 and its attachments

Expression of interest letter from gas turbine vendors

Form 9 and its attachments

Applicants statement letter on fulfillment of gas supply for Jawa-1

E-mail Contacts for Further Inquiries

EY | Assurance | Tax | Transactions | Advisory

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