ANNEX VI Clarification Form

( Refer Part I, Section 4.4.1)

To: [_______________________________________________] Copy to: [_______________________________________________]

CLARIFICATIONS FOR THE REQUEST FOR PROPOSALS (RFP) PART 2 FOR THE DEVELOPMENT OF THE KALTENG-1 COAL FIRED POWER PLANT IPP PROJECT 2 x 100 MW

RFP Document No: Sent by: Consortium KPM

Date: ........ January 2012 Fax No:

No.
1.

Volume

Section
1.4 & 3.1

Clarifications sought
Clause 1.4 and Clause 3.1 : These two clauses are inconsistent. Please PLN confirm that this Project is financed with government support. From Appendix S, for Kalteng-1 IPP Project, coal delivery (CIF) will be at the coal jetty at site while in Clause 2.1.5. the Plant will be located near the river. Please clarify that CIF coal price include delivery up to the Plant located on the land near the river (upstream direction of Katingan river or Rungan/Kahayan river). In Central Kalimantan area, the prospective Plant site with distance radius of maximum 20 km from the PLNs 150 kV Substation (Kasongan or P Raya) is hardly available. Could PLN extend the distance up to max. 50 kms? Coal characteristic : According to App. S, Att. A, coal to be used for this Plant shall have CV (gar/HHV) min. 4000 kCal/kg. This implies that coal for the Plants operation has to be imported from other area or other Province, i.e. South Kalimantan, due to the most available coal in Central Kalimantan is HHV (gar) approx. 3000 kCal/kg. Please clarify. For this IPP Kalteng-1, has PLN conducted Feasibility Study (FS) or Pre FS including the site selection? If yes, could PLN provide the report for Bidder (our) reference? Has the FS considered the coal resources for this IPP for the selected sites and distance to the Substation? With 20 km distance from Kasongan S/S or P Raya S/S, the expected Plant site will be in the Katingan river side or Rungan river side.

2.

App. S & 2.1.5.

3.

2.1.5.

4.

App. S

5.

6.

2.1.5.

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No.

Volume

Section

Clarifications sought
Distance from this Plant site to the sea (estuary) is more than 100 km. Therefore, with pass through scheme, the coal CIF price (include transportation cost up to Plant site) will be covered by PLN. This situation would not be economic for the operation point of view. Please clarify.

7.

2.1.4 & App. S

Power Plants boiler design shall be based on 4200 kCal/kg (Gar), with the operation range of 3800 4300 kCal/kg. While, the most abundant coal currently available in Central Kalimantan (or other area in Indonesia) is LRC (Lignite) with HHV of 2700 3800 kCal/kg. To assure that the Plant can be operated long term as per PPA, please PLN to consider to use Low Rank Coal with typical HHV of less than 3800 kCal/kg. For evaluation purposes, PLN will use coal CV of 4200 kCal/kg. Bidder need more information about coal characteristic such as Coal Proximate & Ultimate Analysis, so that Bidder is able to calculate and optimize the guaranteed Heat Rate. Please clarify. Appendix N : Air Emissions : State of Minister Environment Decree No. 13/MenLH/3/1993 is no more valid. According to our review, it has been replaced with No. 21 Year 2008. Please clarify. Water Discharges : State Minister Enviornment Decree No. Kep-51/MenLH/10/1995 is no more valid. It has been replaced with Decree No. 08 Year 2009 dated 7 April 2009. Please clarify. Stack Emission Limits : According to the newest decree (No. 21/2008), NO2 limit is 750 mg/Nm3 instead of 850 mg/Nm3 and Total Particulates is 100 mg/Nm3 instead of 150 mg/Nm3. Please clarify. 3. Environmental Procedures : A. Governing Authorities : Please clarify the applicable government regulation related to the IPP in Central Kalimantan area. In this document, you refer to regulation that relates to the North Sumatera province regulation.

8.

2.1.4

9.

2.3. & App. N

10.

4.2.2.

The COD is on 36 months from Financing Date (approx. on October 2016), please confirm that the PLN 150 kV Substation & Transmission Lines is already finished by month 26 after Financing Date (Dec 2015). In Para 3, Bidder may propose minor deviations to the Model PPA, but in Para 6, it is mentioned that any deviation in any form to Model PPA will be rejected. Please clarify what kind of minor deviations will be acceptable?

4.4.3.

11.

2.1.4 Fuel Supply C.V : 3800 - 4300 kcal/kg T.M : 28 % - 37 %

Kindly to open the lower limit of C.V in such a way to accommodate the LRC (Low Rank Coal) having HHV 2900 kcal/kg.

12.

2.1.5 Generating Plant Location . subjected a hot, salty and humid climate

Does the Generating Plant should consider a salty condition, though it is located nearby river side in Central Kalimantan?

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No.
13.

Volume
1

Section
4.2.1 Selection Process vii. Provide ESCROW Account USD 5 million. ( Approximately % of EPC Cost ) . 4.3.1 Pre Bid Meeting

Clarifications sought
To check consistency : Clause I-2 Definitions. ESCROW Account means not less than 10 % of the Capital Cost of the Project

14.

Which is the preferred Site to be visited for IPP KALTENG -1? Please clarify. Request for Clarification or Interpretation shall be received by PLN Tender Committee no later than one (1) month prior to Bid Closing

18.

4.4.1 Clarification Request for Clarification or Interpretation shall be received by PLN Tender Committee no later than two (2) month prior to Bid Closing 6.6.2 PLN Levelized Tariff Estimate PLNs Levelized Tariff Estimate at 100 % HR may be informed by the Tender Committee to the Bidders not later than 3 (three) weeks prior to Bid Closing ANNEX I Form of Bid Security (Refer to Section 4.9.1) * This Bid Security shall be valid and binding and shall remain in full force and effect. Up to and including (insert date which is seven (7) months from Bid Closing) **

19.

Clause 4.2.2 Solicitation Time table: Announcement PLN Estimate 23 May 2012 We propose to be one (1) month prior to Bid Closing.

20.

FORM A Proposal Letter This Proposal shall remain irrevocable for a period of six (6) month from Bid Closed of Step One. Proposed : The Bid Security validity follows the Proposal validity , six (6) months

Refer also to : FORM G Price Proposal Letter for a period of six (6) months . To be read as: Installation of 150 kV Switchyard and 150 kV T/L

21.

FORM C Project Milestone Schedule *Signing of PPA (month) **Completion of Installation of 500 kV Switchyard ***Note : 2. Required COD 2. which in 36 month from Signing Date

Note : Required COD which in 36 month from the F/D (Financing Date)

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No.
22.

Volume
1

Section
D4 DATA TECHNICAL Second be read as:

Clarifications sought

Mechanical Equipment 2.23 Water Temperature Entering the Water Heater 5.2 Closed Cycle Cooling Tower (CC) or Once Through Sea Water (OT) 8.19 Type of Start Up Coal 5.13 Heat Rejection to Sea (blow down etc.) 6.0 Water Desalination Plant 14.A 150 kV Transmission Line to be interconnected to Bontang Substation (SS) through a radial interconnection 2.23 Water Temperature Entering the Economizer

5.2 Closed Cycle Cooling Tower (CC) or Once Through River Water (OT)

8.19 Type of Start Up Fuel

Since the Plant Location would be limited within 20 km radius to Kasongan City, hence the Power Plant Site will in no way close to the sea shore line. The shortest distance Kasongan City to the sea shore line is 100 km. Therefore, it is proposed to open the Plant Site Location (not to limit the radius 20 km from Kasongan Substation). To be interconnected to Kasongan S/S.

23.

Article 4, Clause 5.7.3

(a) Please clarify and specify the content of material basic design will be provided by PLN clearly. (b) Please also inform the basic communication for processing of design review.

24.

Article 6, Clause 6.1

(a) SELLER shall not energize or back feed through 150 kV. Shall SELLER prepare another incoming feeder from difference voltage level system? (b) If it is so, please specify voltage level to be prepared.

25.

Appendix I, Clause D.

The connection for exporting power to the system will be connected to the nearest substation, its mean there is land extension shall be prepared, it will provided by PLN or SELLER.

26.

Appendix A, Clause 7.

Boiler control system do not consider Burner Control System, cause the boiler type is CFB. In regard to specified location of 150 KV Kasongan or Palangkaraya Substation where Transmission line shall be connected to. Please advice the coordinate of those Substations. Location of The proposed Plant : The maximum distance from the proposed Plant location to specified Substation shall be 20 Km and this requirement will limit Bidder to select the most feasible Site in regard to technical and economic aspects, therefore we propose that limit distance would be better of

27.

Part 1 2.1.3

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No.

Volume

Section

Clarifications sought
50 Km instead of 20 Km. Seismic Requirement: The specification says that for structure, the seismic design force is determined from a dynamic analysis ................ With reference to International Seismic Code in particularly Indonesian Seismic Code SNI 03-1726 - 2002 ( the latest), the dynamic analysis shall be conducted for specific structures or buildings which are defined as Irregular Structures, therefore the dynamic analysis is proposed to be conducted strictly in accordance with the Specified Code and as technically required such as Boiler Structure, Turbine-Generator set Foundation and Chimney.

28.

2.1.5

29.

Part 3 Form C

In this Form, milestone of Steel Structure is specified and shall be filled in, however please clarify what the specific steel structure shall be adressed for.

30.

2.1.5

Water Availability Please clarify the availability data of maximum and minimum discharge of Katingan river for the last ten years. Please clarify maximum flood data of Katingan river for 50 year return period.

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