COAL TENDER: Taipower: TPC9902A-GS

Subject: Coal Supply Bid Invitation
INVITATION TO BID NO.TPC9902A-GS

Taiwan Power Company ("Taipower") is inviting bids for the supply of coal from countries and districts abroad on the following terms and conditions:

The minimum acceptable quality specifications (based on ISO standards) shall be as follows:
Gross Calorific Value (kcal/kg, as received) 5,000 min.*(1)
Total Moisture(%, as received) 28 max.
Ash Content (%, air dried) 15 max.
Total Sulfur Content (%, air dried) 1.1 max.
Volatile Matter (%, air dried) 28 min.
Fixed Carbon (%, air dried) 60 max.
Grindability (Hardgrove Index Value) 42 min.
Ash Fusion Temperature (C, under reducing condition, H=W) 1,150 min.
Size 50 x 0 mm
Size above 50 mm (%) 5 max.
Fines under 2 mm (%) 30 max.
Na2O in Ash (%) 2.0 max.*(2)

*(1) Gross Calorific Value greater than 6,900 Kcal/Kg will be treated as 6,900 Kcal/Kg.
*(2) If both actual (a) CaO+MgO>Fe2O3, and actual (b) CaO+MgO+Fe2O3>20% are met, then Na2O in Ash can be raised to 5.0% max.

The quantity of coal to be purchased is 350,000 Metric Tons, which shall be shipped by five (5) Panamax Size vessels. Each Panamax Size vessel shall load 70,000 Metric Tons of coal plus or minus ten percent (10%) at shipmaster's option and subject to 14.5 meters draft limitation in Taichung Port. In addition, if the quantity of Coal shown in the Bill of Lading (B/L) is greater than 77,000 Metric Tons, it will be treated as 77,000 Metric Tons. However, if requested by Taipower that the quantity of Coal shown in the Bill of Lading (B/L) is greater than 77,000 Metric Tons, then the price to be paid by Taipower will base on the B/L quantity.

Each shipment of coal to be purchased by Taipower and delivered by a bidder shall be entirely supplied from a single mine. Supply of coal for any shipment from more than one mine is not allowed.

The coal to be delivered at the Port of Loading shall be in accordance with the following delivery schedule:

Shipment No.	Vessel Size	Nominal Shipload (Metric Tons)	Delivery Period at Loading Port
1st shipment	Panamax	70,000	2010/1/5 ～ 2010/1/14
2nd shipment	Panamax	70,000	2010/2/5 ～ 2010/2/14
3rd shipment	Panamax	70,000	2010/3/5 ～ 2010/3/14
4th shipment	Panamax	70,000	2010/4/5 ～ 2010/4/14
5th shipment	Panamax	70,000	2010/5/5 ～ 2010/5/14

All bids and bid bonds must be received by the Taipower?s Department of Fuels by 16:30 November 3, 2009 (Taipei time) (the "Bid Due Date"). Each bidder?s bid and bid bonds must be received separately by the Taipower?s Department of Fuels. Late bids or bid bonds will be unacceptable and will be returned unopened.

TECHNICAL AND COMMERCIAL PROPOSALS will be publicly opened by Taipower at the offices of Taipower at 09:45 November 4, 2009 (Taipei time), unless a change to such expected time is posted in public. In addition, said opening day will be postponed to the next day if said opening date is not a working day.

Bids must be firm and must remain available for acceptance by Taipower until January 3, 2010 (Taipei time).

If you have any questions concerning this Bid Invitation Letter, CONTRACT AGREEMENT form or the bidding documents, please address your questions in writing to Department of Fuels, Taiwan Power Company, 9th Floor, 242 Roosevelt Road, Section 3, Taipei 100, Taiwan, R.O.C. (Telex: 27254 TPCFUEL; Telefax: 886-2-23670597/886-2-23678593) no later than October 28, 2009. Taipower will provide a written reply no later than October 30, 2009, and may publish such reply if necessary.

Taipower shall have the right in its sole discretion to cancel or withdraw this invitation at any time and assumes no obligation or liability whatsoever with respect to a bidder?s preparations or the costs incurred in responding hereto.

Very truly yours,
Albert T. P. Jen
Deputy Director for
Director of Department of Fuels
Taiwan Power Company