S. Korea?s Kowepo opens tender for 240,000 MT of coal supply

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

January 3, 2005

1. Bid No. : KOWEPO-Coal Bid Notice-SP05-01

2. Bituminous Coal
- Quantity : 240,000MT
- Bidders may offer at least 60,000MT or 120,000MT on both FOBT and CFR price.
※ In the event that the quality is outside the limits of range as the Standard Quality Specifications, KOWEPO will select as the successful Bidder if KOWEPO judges that Coal can be used by the Taean Power Plant
- The lowest price shall be selected as the successful bidder.

3. Additional Quantity for the trial burning of new Indonesian coal
KOWEPO may, at its sole discretion, additionally purchase one or two panamax(at least 60,000MT) cargo for trial burning at Taean Power Station from the new bidders of Indonesian coal who have never had any coal supply contract with Korean 5(five) Generation Companies over the past three(3) year period.
The additional conditions for the contract of the above trial burning are as follows;
(1) Coal Sample
At first, the New Bidders have 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
(2) Performance Bond
The New Bidders are a new supplier(including a new coal mine), so shall establish a performance bond in favor of KOWEPO within seven(7) days after receipt of this Notice from KOWEPO in an amount not less than ten percent(10%) of the price amount of each shipment on condition of CONTRACT ARTICLE 13 in ITB.
The performance-bond should be in the form of irrevocable clean letter of credit or bank guarantee with confirmation of Korea Exchange Bank(or other Korean bank acceptable), Jakarta, acceptable to KOWEPO on condition of "sample of P-Bond" in CONTRACT ARTICLE 13.
(3) Shipping & Price Term
Vessel shall be arranged by the supplier on the CFR basis.
(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, and shall be done by "Succofindo" only.
(5) Payment Term : Telegraphic Transfer (T/T) Basis

4. Shipping Schedule (Discharging Schedule)
- Feb. 01 ? Feb. 28, 2005 : 120,000MT
- Mar. 01 ? Mar. 31, 2005 : 120,000MT

5. Procurement Method : International Open Bidding

6. Deadline of Bidding
The proposal documents shall be submitted by 5:00 p.m. on Thursday, 13th Jan., 2005 (Korean Standard Time)

7. Qualification : Coal Producer or Marketing company or Coal Trader
- If the Bidder who has been awarded a bidding of Korean 5(five) Generation Companies over the past one year period, but failed to supply and caused problems of the Quality of coal etc., the buyer shall have the right, at its sole discretion, to limit the qualification to participate in the ITB.

8. Any queries on this Bid are welcomed to contact
Tel) 82-2-3456-7731, Fax) 82-2-3456-7739
E-mail : yongkyu@iwest.co.kr
www.iwest.co.kr/english

9. Bid forms should be forwarded to
Mr. Jong-Hoon Park / General Manager-Fuel Procurement
Korea Western Power Co. Ltd
Suite 1509, 167 Samsung-Dong, Kangnam-Ku, SEOUL, 135-791, Korea.