TENDER: KOWEPO-COAL-2011-SP-04

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

1. Bid No. : KOWEPO-COAL-2011-SP-04

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

Bid Type Product
(Specification) Quantity Shipping Schedule
At Loading Port
SPOT NCV min. 5,600 kcal/kg (Spec. A) 170,000MT . Roberts Bank, Canada: 21 Oct. ~ 9 Nov. 2011
. Queensland , Australia: 16 Oct. ~ 4 Nov. 2011
. New South Wales, Australia: 18 Oct. ~ 6 Nov. 2011
. Richards bay, SA: 27 Oct.~ 15 Nov. 2011
NCV min. 5,500 kcal/kg (Spec. B) 130,000MT September 21 ~ October 2011
NCV min. 4,600 kcal/kg (Spec. C) 195,000MT October ~ December 2011

※1 shipment size :
- Spec A : Capesize (1 voyage) only on a FOBT basis
- Spec B, C : Panamax (60,000mt ~ 80,000mt) or Capesize (100,000mt~150,000mt)

○ Quantity and Shipping schedule for New Bidders
Bid Type Product
(Specification) Quantity Shipping Schedule
(Discharging Schedule)
SPOT
(New Bidders) NCV min. 4,600 kcal/kg (Spec. C) 60,000~
70,000MT October ~ December 2011

※1 shipment size : Panamax (60,000mt ~ 80,000mt) or Capesize (100,000~150,000mt)

3. Additional Quantity for the trial burning of New Bidders
KOWEPO may, at its sole discretion, additionally purchase one panamax cargo for trial burning at Taean Power Station from the new bidders who have never had any successful record of coal supply(no less than 60,000MT equivalent to one panamax) to one of the five power generation companies(KOWEPO, KOSEP, KOMIPO, KOSPO, and EWP) or major power generation companies(or electric power companies) in Taiwan, Japan or major steel companies in Taiwan, Japan and Korea.
The additional conditions for the contract of the above trial burning are as follows;

1) Bidding Quantity
- Maximum 1 Panamax (60,000 ~ 70,000MT +/- 10%)
- Shipping Schedule (Discharging Schedule) : October ~ December 2011
2) Coal Sample
After receipt of Award Notice from KOWEPO, the new bidder has 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

3) Shipping & Price Term
Bidders are requested to offer 60,000 ~ 70,000 MT plus and minus ten(10) percent at shipping tolerance, by a single shipment quantity (Panamax size) only on a 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 only.

5) Payment Term: Telegraphic Transfer (T/T) Basis

6) Bid Bond & Performance Bond
A : Bid BondThe new bidders shall provide bid bond in favor of KOWEPO not less than five percent(5%) of the total tender price by 18:00 hours Korea Standard Time of one day prior to the bid closing date, according to the Bidding Instructions 2.2
B : Performance Bond
The new bidders shall establish a performance bond in favor of KOWEPO within seven (7) days after receipt of Award Notice from KOWEPO in an amount not less than ten percent(10%) of the price amount of each shipment on condition of CONTRACT ARTICLE 14 in ITB. The performance-bond shall be in the form of irrevocable clean letter of credit or bank guarantee with confirmation of first class international banks, acceptable to KOWEPO on condition of "sample of P-Bond" in CONTRACT ARTICLE 14.

4. Procurement Method: International Open Bidding

5. Deadline for Bidding: 11:00 August 30, 2011 (Korea Standard Time)

6. Qualification of Bidder: Coal production company or Marketing company or Trading company only those who have performed (without any material problem such as coal quality etc.) any coal supply of no less than 60,000MT(one panamax) to one of the five power generation companies(KOWEPO, KOSEP, KOMIPO, KOSPO, and EWP) or major power generation companies(or electric power companies) in Taiwan, Japan or major steel companies in Taiwan, Japan and Korea, who shall meet the whole requirement of ITB including but not limited to coal quality specification, shipping schedule and quality, etc.
If the Bidder has had any material unfaithful performance record in honoring the contract with one of Korean 5 (five) Gencos (KOSEP, KOSPO, KOWEPO, KOMIPO, and EWP) KOWEPO shall have the right, at its sole discretion, neither to allow its participation in this Bid nor to award the contract even if it is selected as most competitive one. With regard to this, Bidders are deemed to agree not to raise any claim against KOWEPO?s referring, if any, to other Gencos whether they have any unfaithful track record.
After being awarded as a successful Bidder, if a successful Bidder fails to enter into making a contract or fails to execute the contract signed, the Bidder will be banned from participating in KOWEPO?s future coal purchasing tender for at least 6 (six) months, which is the KOWEPO?s sole right and could not be challenged under any circumstances.

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.iwest.co.kr/english) Tel) 82-2-3456-7604, Fax) 82-2-3456-7629

8. Bid forms should be forwarded to
Mr. Lee, Dong-beag / Director, Fuel Procurement
Korea Western Power Co., Ltd.
11th Floor, Samseong Bldg., 170-8 Samseong-dong, Gangnam-gu, Seoul, 135-882, Korea

August 23, 2011
Korea Western Power Co., Ltd.