COAL TENDER: KOSEP-Coal-2010-SP05-1

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-SP05-1

2. Materials, Quantity to be Procured and Shipping Schedule
- Delivery Period : June 1, 2010 ~ September 30, 2010
- Quantity to be procured : 420,000MT
- Minimum Quantity to be offered by a bidder : 60,000MT
- Qualified Bidders : Refer to ITB attached
- Contract price : FOBT of CFR
- CV (NAR kcal/kg) : Min. 4,600
- Others : Refer to ITB attached
- Bidders for 2010-SP05-1 are requested to offer up to total about 420,000 MT in lots of either 125,000~140,000 (Cape size) or 65,000~85,000MT (Panamax size) on both FOBT and CFR basis. KOSEP has the right to award the contract on either a FOBT loading port or a CFR discharging port.

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

4. Bid closing date: 2:00 P.M. on May 26, 2010 . (Korean Standard Time)

5. Qualification of Bidder : As per ITB. KOSEP-Coal-2010-SP05-1 and SP05-2
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 the tenders, KOSEP-Coal-2010-SP05-1.

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 described in the Bid Notice No. KOSEP-Coal-2010-SP05-2.

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 (No. KOSEP-Coal-2010-SP05-1) shall be applied.

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-SP05-1 )

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 )

May 18, 2010
Korea South East Power Co. Ltd.