COAL TENDER: KOSEP-Coal-2010-SP03

Summary of Invitation To Bid (ITB)
For (Sub)Bituminous 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 Plants as follows,

1.Bid Notice no. (ITB no.) : KOSEP-Coal-2010-SP03

2. Materials, Quantity to be Procured and Shipping Schedule
- Delivery Period : July 1 ~ September 30, 2010 (Arrival-at-Discharging-Port basis)
- Quantity to be procured : 280,000 MT (2 Cape Shipments)
- Minimum quantity to be offered : 140,000 MT +/- 10% shipping tolerance
- Qualified Bidders: Refer to ITB
- Minimum CV (NAR) : 5,600kcal/kg
- Volatile Matter (ADB) : 22~36
- Other Coal Specification : Refer to ITB

- Terms and Conditions of Discharging port
. Discharging port : Samcheonpo Power Plant, Korea
. Draft : 16.1m
. Unloading Rate : 23,000LT per day pro rata
. Demurrage Money : US$40,000 per day pro rata (Despatch half of Demurrage)

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

4. Bid closing date: 2:00 P.M. on April 29, 2010 . (Korean Standard Time)

5. Qualification of Bidder : Refer to ITB
Among new bidders, those who have made a contract with the above gencos but not had any coal supply records as of bid closing date, or those who have been awarded as a successful bidder and expected to be a contractor will be entitled to participate in this tender.

However, regarding bid (performance) bond, determination of coal quality, and payment term (L/C or T/T), the bidders shall follow the terms and conditions for new bidders.

In case that the bidders prove any coal supply records with the above gencos before entering into a contract with KOSEP, terms and conditions of this Bid Notice.

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 fifteen (15) 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-2010-SP03)

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

April 22, 2010
Korea South East Power Co. Ltd.