COAL TENDER: KOWEPO-COAL-2009-SP-04

INVITATION TO BID
for Steaming Coal Supply Spot Contract (for TAEAN Power Plant)

1. Bid No. : KOWEPO-COAL-2009-SP-04

2. Materials and Quantity to be Procured
- Materials: Bituminous Coal
- Quantity and Shipping schedule

Spec	Quantity	Shipping schedule
Spec 1, NCV min. 5,600 kcal/kg	290,000MT	Late June ~ Early July 2009
Spec 2, NCV min. 4,800 kcal/kg	140,000MT	Late June ~ Early July 2009

? shipment size : Panamax (70,000MT or 80,000MT) or Cape(130,000MT)
? Shipping schedule out of above range shall be negotiated

3. Additional Quantity for the trial burning of new bidders KOWEPO may, at its sole discretion, additionally purchase one panamax cargo(60,000MT) for trial burning at Taean Power Station from the new bidders.The additional conditions for the contract of the above trial burning are as follows;

3-1. Bidding Quantity
- Maximum 60,000MT +/- 10%
- Shipping Schedule : Late June ~ Early July 2009

3-2. Coal Sample
After receipt of Award Notice from KOWEPO, the new bidder has to send one coal sample(above 2kg) taken by inspection agency to the following address:
Manager, Chemical Dept. / Taean Thermal Power Plant.
831 Banggal-li, Wonbuk-Myeon, Taean-Gun, Choongcheongnam-do 357-910, KOREA

3-3. Shipping & Price Term
Vessel shall be arranged by the supplier on the CFR basis, nevertheless, bidding price shall be quoted both on FOBT and CFR basis. (Price offered either FOBT or CFR only will be disqualified)

3-4. Determination of Coal Quality
Coal quality analysis at the Unloading port by International Independent Inspection Agency(SGS or ITS) shall be final. Coal quality analysis at the Loading port shall be provisional only.

3-5. Payment Term : Telegraphic Transfer (T/T) Basis
In case Letter of Credit(L/C) is opened, above ?Determinaton of Coal Quality? clause shall be inserted to the special conditions of L/C.

3-6. Bid Bond & Performance Bond
A : Bid Bond
The new bidders shall provide bid bond in favor of KOWEPO not less than five percent (5%) of the total tender price until one day prior to the bid closing date, according to the Bidding Instructions 2.2

B : Performance Bond
The new bidder shall establish a performance bond in favor of KOWEPO within seven(7) days after receipt of Award Notice from KOWEPO in an amount not less than ten percent(10%) of the price amount of each shipment on condition of CONTRACT ARTICLE 14 in ITB. The performance-bond should be in the form of irrevocable clean letter of credit or bank guarantee with confirmation of first class international banks, acceptable to KOWEPO on condition of "sample of P-Bond" in CONTRACT ARTICLE 14.

4. Procurement Method: International Open Bidding

5. Deadline for Bidding: 15:00 on May 28, 2009 (Korean Standard Time).

6. Qualification of Bidder: Coal production company or Marketing company or Trading company only those who have performed (without any material problem such as coal quality etc.) any coal supply of no less than 60,000MT(one panamax) with power generation company(or electric power company) of Korea, Japan or Taiwan and who shall meet the whole requirement of ITB including but not limited to coal quality specification, shipping schedule, quality, etc.

7. Any applicant who wants to receive the relevant documents should inform us of the company?s name and e-mail address via e-mail to jwons@iwest.co.kr or,
Please refer to KOWEPO homepage (http://www.iwest.co.kr/english)
Tel) 82..., Fax) 82-2-2050-5719

8. Bid forms should be forwarded to
Mr. S. T.(Steve) Lim / General Manager, Fuel Procurement & Development
Korea Western Power Co., Ltd.
6F Samsung Bldg., 623, Teheranno, Gangnam-gu, Seoul, 135-882, Korea

May 18, 2009
Korea Western Power Co., Ltd.