COAL TENDER: KOSEP-Coal-2009-LT01~LT04

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 Plants as follows,

1.Bid Notice no. (ITB no.) : KOSEP-Coal-2009-LT01~LT04

2. Materials, Quantity to be Procured and Shipping Schedule

ITB No.	2009-LT01	2009-LT02	2009-LT03	2009-LT04
Term of contract	One(1) year	Three(3) years	Three(3) years	Three(3) years
Price	Fixed	Fixed and renewed on a yearly basis	Fixed for three years	Index-linked
Quantity to be procured.	260,000~1,000,000MT	260,000~1,000,000MT (max. 50% from one country)	260,000~500,000MT	260,000~500,000MT
Minimum quantity to be offered by a bidder	260,000MT or 280,000MT	260,000MT or 280,000MT	260,000MT or 280,000MT	260,000MT or 280,000MT
Qualified Bidders	Refer to ITB	Refer to ITB	Refer to ITB	Refer to ITB
Contract Price	FOBT or CFR	FOBT or CFR	FOBT or CFR	FOBT
CV (NAR kcal/kg)	Min. 4,800	Min. 5,350	Min. 5,350	Min. 5,350

◦ Preferred Shipping Schedules (Loading port): From August 1st, 2009
- Bidders are requested to offer at least either 280,000 MT in lots of
70,000MT(Panamax size) or 260,000MT in lots of 130,000MT(Cape size) with ten(1) percent of shipping tolerance being given. KOSEP has the right to award the contract on either a FOBT loading port or a CFR discharging port, but in case of LT04, only on a FOBT loading port.

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

4. Bid closing date: 2:00 P.M. on June 18, 2009. (Korean Standard Time)

5. Qualification of Bidder : As per Clause 2.1, Chapter I in ITB. KOSEP-Coal-2009-LT01~LT04

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.

Bidders shall submit the Bids separately as they want to participate in more than one tender.

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, General Administration Dept.
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 no. KOSEP-Coal-2009-LT01~LT04)

Any queries on this Bid are welcomed to contact
S.C.Cho / Manager / Fuel Team, KOSEP
Tel) 82-2-3456-717 , Fax) 82-2-3456-7179
E-mail : deepblue@kosep.co.kr (preferred) (http://www.kosep.co.kr/eng)

June 2, 2009
Korea South East Power Co. Ltd.