COAL TENDER: Paiton Energy opens 2.5MT coal supply tender

General
PT Paiton Energy (?PE?), the developer, owner and operator of the Paiton Swasta I Power Plant located at Paiton, near Probolinggo, East Java, is developing the Paiton 3 Expansion Project (the ?Project?), a 1 x 815MW supercritical coal fired power plant which is scheduled to achieve commercial operation in early 2012. The Project will consume approximately 3 million tonnes of sub-bituminous coal annually, and PE is seeking proposals from Indonesian coal producers to enter into long term supply agreements to supply coal to the Project, with first coal deliveries expected to occur in late 2011. Indonesian coal producers who can fulfill the following basic requirements are invited to submit proposals. Please note that PE will not accept proposals from agents or traders.

Basic Requirements
Minimum quantity to be contracted: 500,000 tonnes per year
Contract term: 5 years, plus up to 3 further terms of 5 years each at PE?s sole option
Reserves: Sufficient for mine life of 20 years minimum
Production Capacity: 5 million tonnes per year minimum
Operational history: 5 years minimum at no less than 5 million tonnes per year
Experience: Must have experience supplying PLN and/or IPPs
Pricing: CIF Paiton Coal Unloading Jetty by barge of 10,000 to 15,000 DWT
Terms: Fixed price for 2011, thereafter annual price negotiation

Bidders will be required to provide audited financial statements to demonstrate financial strength.

Basic Quality Parameters (Rejection Limits)
HHV (kcal/kg gar) 4,500 mm, 5,500 max
Total Moisture (arb) 16% mm, 32% max
HGI 42min, 55max
Ash (adb) 0% mm, 5.0% max
Sulfur (adb) 0% mm, 0.45% max

Instruction to bidders
Bidders may collect bid documents from PE between 08:30 and 17:30 from August 5 through August 7, and shall submit proposals by 17:30 August 14. Documents may be collected at the following address:
PT Paiton Energy
Menara Batavia 8th Floor
Jl. K.H. Mas Mansyur Kav. 126
Jakarta 10220