COAL TENDER: KOSEP-Coal-2008-SP07

Summary of Invitation To Bid (ITB)
For Steaming Coal

Korea South East Power Co. Ltd.(KOSEP) is inviting a bid for the supply of coal from qualified suppliers on ITB (Ref. Attached) for KOSEP Power Plant(Youngdong) as follows,

1. Bid Notice no. (ITB no.) : KOSEP-Coal-2008-SP07

2. Materials, Quantity to be Procured and Shipping Schedule
? Materials : Steaming Coal
? Spec. : Min. 4,700kcal/kg NAR (Ref. the attached ITB)
? Quantity : 60,000 MT(Metric Tons)
? Preferred Shipping Schedules (Loading port) :
October, 2008 ~ November, 2008
- Bidders are requested to bid up to 60,000 Metric Tons by lots of about 5,000~30,000 on CFR basis. (The minimum quantity of bidding is 5,000MT)

3. Procurement Method: International Open Bidding as per ITB (Ref. the attached ITB)

4. Bid closing date: 3:00 P.M. on October 8, 2008. (Korean Standard Time)

5. Qualification of Bidder : As per Clause2.1, Chapter I in ITB. KOSEP-Coal-2008-SP07

Coal producers who have coal mine(s) or marketing companies established by coal producers who have coal mine(s) or traders a) those who have any coal supply record to five generation companies of KOSEP, KOMIPO, KOWEPO, KOSPO, KEWESPO in Korea or Taiwan Power or J-Power in recent three years and b) those who do not have unfaithful coal supply records to the above five companies in Korea and c) those who shall meet the whole requirements of ITB including but not limited to, coal quality specification, shipping schedule, etc. are qualified to participate in the ITB.

A new bidder who shall meet the whole requirements of the attached ITB including, but not limited to, coal quality specification, shipping schedule, etc. is qualified to participate in this bid.
* A new Bidder means the bidder who does not have any coal supply record to five generation companies of KOSEP, KOMIPO, KOWEPO, KOSPO, KEWESPO in Korea or Taiwan Power or J- Power in recent three years.

KOSEP may, at its sole discretion, decide to restrict bid participation of the person, company or trader, who has unfaithful coal supply records, including coal quality problem, to the above five companies in Korea or who is in argument with the above five companies in Korea regarding unfaithful coal supply, including coal quality problem.

6. Compliance with Invitation to Bid
Bidders shall prepare and submit the Bid in compliance with the procedures and requirements as provided in this ITB. Any failure to do so may give KOSEP a reason to reject or to unfavorably evaluate the Bid. Bidders shall be regarded as having been thoroughly acquainted with and having accepted all the contents of the ITB. Upon submission of Bid documents, Bidders are thereafter regarded as having agreed to fully comply with the terms and conditions of the contract as attached in the Invitation to Bid.

New bidders shall prepare and submit the Bid in compliance with the procedures and requirements as provided in this ITB. Any failure to do so may give KOSEP a reason to reject or to unfavorably evaluate the Bid. Bidders shall be regarded as having been thoroughly acquainted with and having accepted all the contents of the ITB. Upon submission of Bid documents, Bidders are thereafter regarded as having agreed to fully comply with the terms and conditions of the contract as attached in the Invitation to Bid.

Bidders should, especially, pay attention to and accept the following revised terms and conditions of the contract comparing to the previous ITB of our company.
- Article 4 : Determination of Quantity and Quality
- Article 5 : Rejection
- Article 7 : Adjustment of the Price for Quality

7. Validity Period of the Bid
The Bid including the price shall be bound as a firm offer and valid for a period of at least thirty (30) calendar days after the bidding closing date. KOSEP may request the Bidder to extend the validity period of the Bid, if necessary.

8. Bid forms should be forwarded to

Mr. Yong-Jae, Lee
Senior Manager, Fuel Team, Business Department
Korea South East Power Co. Ltd
169 Daehwa B/D 4F, Samsung-1dong, Gangnam-gu, SEOUL, 135-882, Korea.

Other matters regarding this bid are specified in the attached
(ITB KOSEP-Coal-2008-SP07)

Any queries on this Bid are welcomed to contact
Y.U. Han / Manager
Fuel Team, KOSEP
Tel) 82-2-3456-7171, Fax) 82-2-3456-7179
E-mail : yhan@kosep.co.kr (http://www.kosep.co.kr/eng)

September 26, 2008
Korea South East Power Co. Ltd.