COAL TENDER: KOWEPO-COAL-2010-SP-06 & 2010-LT-02

INVITATION TO BID (SPOT AND TERM)
for Steaming Coal Supply Spot & Term Contract(for TAEAN Power Plant)

1. Bid No. : KOWEPO-COAL-2010-SP-06 & KOWEPO-COAL-2010-LT-02

2. Materials and Quantity to be Procured
○ Materials : (Sub) Bituminous Coal
○ Quantity and Shipping schedule

TYPE?? ? ??	SPEC?	QUANTITY?	SHIPPING SCHEDULE
SPOT?
Spec 1 ?????? ???	NCV min. 5,000 kcal/kg???	70,000MT	November 2010 ~ January 2011
Spec 2??? ?	NCV min. 4,600 kcal/kg??????	430,000MT???	-
TERM?
Spec 1 ???????? ?	NCV min. 5,700 kcal/kg?	500,000MT???	January? ~? December 2011
Spec 2 ? ?	NCV min. 5,000 kcal/kg????????	500,000MT???	-
Spec 3 ???????	NCV min. 4,600 kcal/kg??	500,000MT????	-

※1 shipment size : Panamax (60,000mt ~ 80,000mt) or Cape (100,000~150,000)
※Shipping schedule out of above range shall be negotiated.
※Bidder?s guaranteed NCV for Spec 2 (Spot) & Spec 3 (Term) shall be min. 4,650 kcal/kg.
※For Term, Suppliers may offer at least 250,000 Metric Tons per annum on basis of both FOBT and CFR price and term of contract is three (3) years (January 1, 2011 ~ December 31, 2013)

3. Additional Quantity for the trial burning of New Bidders
KOWEPO may, at its sole discretion, additionally purchase one panamax cargo 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 1 Panamax (70,000MT +/- 10%)
- Shipping Schedule (Discharging Schedule): November 2010~January 2011

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 ?Determination 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: Individual Price Negotiation with Suppliers by International Open Bidding
- At first, KOWEPO shall select the preferred supplier(s) considering coal quality and price.
- The Preferred Supplier(s) shall enter into individual negotiation with KOWEPO.
- According to the result of the negotiation, KOWEPO shall select in the order of the lowest evaluated price until the quantity amounts to the target contractual quantity of KOWEPO.
- In the process of price negotiation with the preferred suppliers, if both parties fail to reach an agreement on the price and other terms and conditions, KOWEPO may, at its sole discretion, decide not to select even the lowest price supplier as the successful contract party.

5. Deadline for Bidding : 11:00 on September 14, 2010 (Korean Standard Time).

6. Qualification of Bidder
- FOR SPOT : 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.
- FOR TERM : Coal production company or Marketing Company or Trading Company a) those who has performed during the recent 3 years or is performing any coal supply term contract of not less than 250,000MT per annum with power generation companies(or electric power companies) of KOREA, JAPAN or TAIWAN b) those who do not have unfaithful coal supply records to the Korean 5 (five) Gencos (KOSEP, KOSPO, KOWEPO, KOMIPO, and EWP) 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.

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 kwak1104@iwest.co.kr or, Please refer to KOWEPO homepage (http://www.iwest.co.kr/english)
Tel) 82-2-3456-7601, Fax) 82-2-3456-7752

8. Bid forms should be forwarded to
Mr. Lee, Dong-Beag / Director, Fuel Procurement & Development
Korea Western Power Co., Ltd.
(Samseong-dong)411,
Yeongdongdaero, Gangnam-gu, Seoul, 135-791, Korea

September 3, 2010
Korea Western Power Co., Ltd.