Taipower opens tender for 1.26 million tons of coal

Taiwan Power Company
Fuel Department
9th Floor, 242 Roosevelt Road, Section 3, Taipei 100, Taiwan, R.O.C.

COAL SUPPLY BID INVITATION LETTER

Date: March 22, 2004
Subject: Coal Supply Bid Invitation
INVITATION TO BID NO.TPC9304

Gentlemen:

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

1.The minimum acceptable quality specifications (based on ISO standards) shall be as follows:
Gross Calorific Value (kcal/kg, as received): 5,500 min.*(1)
Total Moisture (%, as received): 15 max*(2)
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): 45 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.*(3)

*(1) Gross Calorific Value greater than 6,900 Kcal/Kg will be treated as 6,900 Kcal/Kg.
*(2) Total Moisture can be raised to 22% max., if Ash Content is less than 10%.
*(3) 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.

2. The quantity of coal to be purchased is 1,260,000 Metric Tons, which shall be shipped by twenty (20) Panamax Size vessels. Each Panamax Size vessel shall load 63,000 Metric Tons of coal plus or minus ten percent (10%) at shipmaster's option and subject to 12.5 meters draft limitation in Taichung Port. In addition, if the quantity of Coal shown in the Bill of Lading (B/L) is greater than 69,300 Metric Tons, it will be treated as 69,300 Metric Tons.

3.

4.

?.

If you have any questions concerning this Bid Invitation Letter, CONTRACT AGREEMENT form or the bidding documents, please address your questions in writing to Fuel Department, 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 March 26, 2004. Taipower will provide a written reply no later than March 31, 2004, 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,
Stanley C. M. Tsai
Section Chief of Foreign Coal Section for
the Director of Fuel Department
Taiwan Power Company

Editor?s note: The full version of Taipower?s bidding document can be downloaded at: http://203.69.131.3/material/009TPC9304.doc