Taipower opens tender for 700kt of bituminous coal

Subject: Coal Supply Bid Invitation
INVITATION TO BID NO. TPC10004

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) 5,700 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 20% 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.

The quantity of coal to be purchased is 700,000 metric tons, which shall be procured by Five (5) Cape Size vessels. For each Cape Size vessel, it also can be performed by Two (2) Panamax Size vessels. Each vessel shall load 140,000 metric tons (for Cape Size) or 70,000 metric tons (for Panamax Size) of coal plus or minus ten percent (10%) at shipmaster?s option. In addition, if the quantity of Coal shown in the Bill of Lading (B/L) is greater than 154,000 metric tons (for Cape Size) or 77,000 metric tons (for Panamax Size), it will be treated as 154,000 metric tons (for Cape Size) or 77,000 metric tons (for Panamax Size). However, if requested by Taipower that the quantity of Coal shown in the Bill of Lading (B/L) is greater than 154,000 metric tons (for Cape Size) or 77,000 metric tons (for Panamax Size), then the price to be paid by Taipower will base on the B/L quantity.

The coal to be delivered between August 01-December 15, 2011.

All bids and bid bonds must be received by the Taipower?s Department of Fuels by 17:00, May 3, 2011 (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 09:30, May 4, 2011 (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 June 3 , 2011 (Taipei time).

Taiwan Power Company
Department of Fuels
9th Floor, No. 242, Section 3, Roosevelt Road,
Taipei 10016, Taiwan, Republic of China
Telex No.: 27254 Answerback: TPCFUEL
Facsimile: 886-2-23670597 or 886-2-23678593

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