KOWEPO tenders for long-term coal supply

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

1. Bid No. : KOWEPO-COAL-2011-LT-03

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

Bid Type Coal
(Specification) Quantity Price
(For CY1) Shipping Schedule
At Loading Port
TERM NCV min. 5,700 kcal/kg
(Spec. A) 340,000MT
per annum
+/- 10% GCI NEWC plus or minus
One Single Fixed U$ per mt March 2012 ~ February 2013
(For Contract Year 1)
[all shipments of CY1 shall be delivered by Q2 in 2012]
NCV min. 5,700 kcal/kg
(Spec. B) 260,000MT
per annum
+/- 10% GCI NEWC plus or minus
One Single Fixed U$ per mt February 2012 ~ January 2013
(For Contract Year 1)
[all shipments of CY1 shall be delivered by Q2 in 2012]

A. Shipment Size & Delivery Term
- Spec. A : Capesize(170,000mt) on FOBT basis only
- Spec. B : Capesize(125,000mt~ 135,000mt) on FOBT basis only
* In case of ?FOBT basis only delivery term?, such as Spec. A and Spec. B, Russian Coal is not allowed to submit a bid.

B. Term of the Contract for TERM : 3 Years
- Spec. A : March 1, 2012 ~ February 28, 2015
- Spec. B : February 1, 2012 ~ January 31, 2015

C. The structures of prices for the remaining Contract Years (CY2, CY3) shall be determined by mutual agreement of the parties.

3. (Intentionally left blank)

4. Procurement Method: International Open Bidding

5. Deadline for Bidding: 11:00 November 29, 2011 (Korea Standard Time)

6. Qualification of Bidder

- FOR TERM: Coal production company or Marketing Company or Trading Company only those who have performed or performing following contract during the recent three(3) years;
a) at least one (1) year coal supply term contract of no less than 60,000MT per annum to one of the five (5) power generation companies(KOWEPO, KOSEP, KOMIPO, KOSPO, and EWP) or major power generation companies(or electric power companies) in Taiwan, Japan or major steel mill companies in Taiwan, Japan and Korea, or
b) coal supply spot contract of no less than 60,000MT to KOWEPO. However, in case of ?b)?, the Bidder shall submit a letter of guarantee concerning the freight costs(including demurrage cost, dead freight, port charges etc.) in order to be awarded as a successful bidder on a FOBT deliver basis.

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 dptpan@iwest.co.kr or
Please refer to KOWEPO homepage (http://www.westernpower.co.kr/new/english/)
Tel) +822-3456-7604, Fax) + 822-3456-7629

8. The Bid documents shall be submitted in person, by mail or courier to the address below not later than the deadline.

Mr. Lee, Dong-beag / Director- Fuel Procurement
Korea Western Power Co., Ltd.
11th Floor, Samseong Building., 170-8 Samseong-dong, Gangnam-gu, Seoul, 135-882, Korea

November 22, 2011
Korea Western Power Co., Ltd.