PT PLN (PERSERO)

REQUEST FOR PROPOSALS

FOR THE DEVELOPMENT OF
COAL FIRED STEAM POWER PLANT IPP PROJECT
2 x 4 MW LARANTUKA, FLORES
NUSA TENGGARA TIMUR

Volume 1

PART 1

BID DOCUMENT

November 2010

PT PLN (PERSERO)

REQUEST FOR PROPOSALS

FOR THE DEVELOPMENT OF

COAL FIRED STEAM POWER PLANT IPP PROJECT
2 x 4 MW LARANTUKA, FLORES NUSA TENGGARA TIMUR

This Request for Proposal comprises 2 [two] volumes, which,

along with their annexes, schedules and exhibits, shall be
referred to as the Request for Proposal Document, or RFP

Contents of RFP
Volume 1

PART 1 :

Bid Document

PART 2 :

Model PPA

PART 3 :

Sample of Simple Average

Volume 2

Levelized Tariff Calculation

DISCLAIMER
This RFP has been prepared in compliance with PLNs Guidelines for developing and managing
Private Sector Infrastructure Projects, and follows relevant Governments Guidelines.
PLN in good faith furnishes the information given in this RFP. PLN disclaims all or any responsibility
whatsoever to anyone for information contained in this RFP or for any representation or statement
herein, whether expressed or implied.
Without prejudice to the generality of the foregoing, this RFP does not contain, nor does PLN, any
Instrumentality of the Government of Indonesia (Government Instrumentality)
or their
Representatives, make any promise, representation or warranty whatsoever, whether expressed or
implied (and no such Representatives have any authority to make such representations and
warranties), that information contained in this RFP is accurate, complete or reasonable or that it
constitutes all the information necessary to prepare a Proposal or develop the Plant.
All such persons expressly disavow any obligation or duty (whether in contract, tort or otherwise) to
any Bidder and disclaim any and all liability based on or relating to any such information or
representations or warranties (expressed or implied) contained in, or errors or omissions from, this
RFP or based on or relating to the use of this RFP or any other written or oral communication
transmitted to or information provided to or otherwise acquired by a Bidder.
Each Bidder accepts full responsibility for conducting an independent analysis of the feasibility of
the Plant and for gathering and presenting all necessary information. No Bidder is entitled to rely on
the involvement of PLN, any Government Instrumentality or their Representatives in the preparation
of this RFP or in the solicitation process as a basis for bidding on or developing the Plant. Except
as otherwise stated, the information provided in this RFP shall form no part of the Model PPA or any
other document defining the agreements with PLN and Government Instrumentalities, or of any
Proposal submitted in response to this RFP. No adjustments will be made to any Proposal, or to
any agreements between PLN and Government Instrumentalities based on a Bidders interpretation
of the information provided.
In submitting a Proposal in response to this RFP, the Bidder certifies that it understands, accepts
and agrees to the disclaimers on this page. Nothing contained in any other provision of the RFP,
nor any statement made orally or in writing by any person or party shall have the effect of negating
or superseding any of the disclaimers on this page.
Queries relating to the information contained in this RFP shall be directed only to the contact
persons referred to herein in the circumstances stated. No other person, whether employee, agent,
adviser or other, has been authorised to give any information or to make any representations in
respect of the RFP or the project and, if given or made, such information or representation may not
be relied upon as having been authorised by PLN or any Government Instrumentality.
This RFP is confidential and personal to the Bidders, it is provided on the understanding that it is
not to be duplicated or distributed to any other person.

ii

PT PLN (PERSERO)
REQUEST FOR PROPOSALS FOR THE DEVELOPMENT OF
COAL FIRED STEAM POWER PLANT IPP PROJECT
2 x 4 MW LARANTUKA, FLORES NUSA TENGGARA TIMUR

BID DOCUMENT

CONTENTS:

1.

INFORMATION FOR BIDDERS .............................................................................. 5

1.1
1.1.1
1.1.2

Overview of the Bid Solicitation ........................................................................... 5

Solicitation for the Concession ................................................................................. 5
RFP Document ......................................................................................................... 5

1.2

Generation Planning .............................................................................................. 5

1.3
1.3.1

Institutional Framework ......................................................................................... 6

Private Sector Participation ...................................................................................... 6

1.4

Government Support ............................................................................................. 6

2.

PROJECT DESCRIPTION ....................................................................................... 6

2.1
2.1.1
2.1.2
2.1.3
2.1.4

The Plant ................................................................................................................. 6

General..................................................................................................................... 6
Station Load Profile .................................................................................................. 7
Generating Plant Location and Interconnection ....................................................... 7
Fuel Supply .............................................................................................................. 8

2.2
2.2.1
2.2.2
2.2.3

The Plant Site.......................................................................................................... 8

Description of the Plant Site ..................................................................................... 8
Plant Site Layout ...................................................................................................... 8
Plant Site Utilities ..................................................................................................... 8

2.3

Environmental and Permitting Considerations ................................................... 9

3.
3.1.1

MODEL POWER PURCHASE AGREEMENT (PPA) .............................................. 9

Introduction............................................................................................................... 9

3.2
3.2.1
3.2.2

Overview of Model PPA ......................................................................................... 9

General..................................................................................................................... 9
The Power Purchase Agreement ............................................................................. 9

4.

INSTRUCTIONS TO BIDDERS ............................................................................. 10

4.1
4.1.1
4.1.2

Introduction .......................................................................................................... 10
Bidding Environment .............................................................................................. 10
Committee ............................................................................................................. 11

Request for Proposals: Coal Fired Steam Power Plant IPP Project 2 x 4 MW Larantuka
Part 1 : Bid Document

Page I-1

4.2
4.2.1
4.2.2

Description of Solicitation ................................................................................... 11

Selection Process................................................................................................... 11
Solicitation Timetable ............................................................................................. 12

4.3
4.3.1

Verification and Clarification Meeting ................................................................ 12

Verification and Clarification Meeting ..................................................................... 12

4.4
4.4.1
4.4.2
4.4.3

Clarifications and Amendments ......................................................................... 13

Requests for Clarifications ..................................................................................... 13
Amendments to the RFP - General ........................................................................ 13
Minor Deviations to Model PPA .............................................................................. 13

4.5
4.5.1
4.5.2
4.5.3

Bidders .................................................................................................................. 14
General................................................................................................................... 14
Bidder Prerequisites ............................................................................................... 14
Consortiums ........................................................................................................... 15

4.6
4.6.1
4.6.2

Proposals - General ............................................................................................. 16

Proposal Responsiveness ...................................................................................... 16
Alternative Proposals ............................................................................................. 16

4.7
4.7.1
4.7.2
4.7.3
4.7.4
4.7.5
4.7.6
4.7.7

Proposal Structure and Content ......................................................................... 16

Language of the Proposal ...................................................................................... 16
Proposal Structure.................................................................................................. 16
Proposal Preparation.............................................................................................. 17
Bidders Duty to Inform Itself .................................................................................. 17
Mandatory Proposal Requirements ........................................................................ 18
Cost and Risk of Proposals .................................................................................... 20
Interest and Exchange Rate Movements ............................................................... 20

4.8

Proposal Validity .................................................................................................. 20

4.9
4.9.1
4.9.2

Securities .............................................................................................................. 21
NOT APPLICABLE ................................................................................................. 21
Performance Securities .......................................................................................... 21

4.10
4.10.1
4.10.2
4.10.3
4.10.4
4.10.5

Submission of Proposal ...................................................................................... 21

Authorisation .......................................................................................................... 21
Format, Sealing and Marking ................................................................................. 21
Modification and Withdrawal of Proposal ............................................................... 23
Bid submission date ............................................................................................... 23
Late Proposals ....................................................................................................... 23

4.11 Proposal Opening ................................................................................................ 23

4.11.1 Administrative & Technical Proposals .................................................................... 23
4.11.2 Price Proposals ...................................................................................................... 23
4.12

Confidentiality ...................................................................................................... 24

4.13

Penalty for Non Performance during Operation ................................................ 24

5.

PROPOSAL REQUIREMENTS ............................................................................. 24

5.1

General .................................................................................................................. 24

5.2

Administrative & Technical Proposal ................................................................. 24

Request for Proposals: Coal Fired Steam Power Plant IPP Project 2 x 4 MW Larantuka
Part 1 : Bid Document

Page I-2

5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.2.7
5.2.8
5.2.9
5.2.10

Presentation ........................................................................................................... 24
Project Technical Details ........................................................................................ 25
Target Availability ................................................................................................... 26
Organisation Plans ................................................................................................. 27
Intentionally Left Blank ........................................................................................... 27
Insurance Plan ....................................................................................................... 27
Domestic Participation............................................................................................ 27
Services and Utilities .............................................................................................. 27
Environmental Obligations ..................................................................................... 27
Project Milestones Schedule .................................................................................. 28

5.3
5.3.1
5.3.2
5.3.3
5.3.4
5.3.5
5.3.6
5.3.7

Price Proposal ...................................................................................................... 28

Presentation ........................................................................................................... 28
Tariff ....................................................................................................................... 28
Capacity and Energy Payment ............................................................................... 29
Project Cost ............................................................................................................ 30
Intentionally Left Blank ........................................................................................... 30
Electricity Payments and Supporting Cost Data..................................................... 30
Intentionally Left Blank ........................................................................................... 30

5.4
5.4.1
5.4.2

Proposal Letters and Forms................................................................................ 30

Introductory Notes .................................................................................................. 30
Inclusions in the Proposal ...................................................................................... 31

6.

EVALUATION PROCEDURE ................................................................................ 31

6.1

Outline of Evaluation Procedure......................................................................... 31

6.2

Clarification of Proposals .................................................................................... 31

6.3

Right to Reject Proposals.................................................................................... 31

6.4

Administrative Evaluation ................................................................................... 31

6.5
6.5.1
6.5.2
6.5.3

Technical Evaluation............................................................................................ 32
Compliance with Minimum Functional Specification .............................................. 32
Intentionally Left Blank ........................................................................................... 34
Technical Non-compliances ................................................................................... 34

6.6
6.6.1
6.6.2
6.6.3

Price Proposal Evaluation ................................................................................... 34

Responsiveness of Price Proposal......................................................................... 34
PLNs Estimate (HPS = Harga Perkiraan Sendiri).................................................. 34
Assessment and Ranking....................................................................................... 34

6.7

Short-listing and Award ....................................................................................... 35

6.8

Cost of Finalising PPA ......................................................................................... 36

Request for Proposals: Coal Fired Steam Power Plant IPP Project 2 x 4 MW Larantuka
Part 1 : Bid Document

Page I-3

LIST OF ANNEXES:
ANNEX I

Definitions and Interpretation

ANNEX II

NOT APPICABLE

ANNEX III

Responsiveness Evaluation

ANNEX IV

Intentionally Left Blank

ANNEX V

Proposed Minor Deviations to Model PPA

ANNEX VI

Clarifications Form

ANNEX VII :

Intentionally Left Blank

ANNEX VIII :

Coal Specification

LIST OF FORMS:
A.

B.

ADMINISTRATIVE & TECHNICAL PROPOSAL FORMS

FORM A

Administrative & Technical Proposal Letter

FORM B

Qualifications of the Bidder

FORM C

Project Milestones Schedule

FORM D

Technical Data

FORM E

Bidders Organisation Plans

FORM F

Bidders Statement on Consortium Composition, Share and

Equity

FORM H

Bidders Statement on Consortium Business Activity

FINANCIAL PROPOSAL FORMS

FORM G

Price Proposal Letters

FORM I

Price Structure Data

Request for Proposals: Coal Fired Steam Power Plant IPP Project 2 x 4 MW Larantuka
Part 1 : Bid Document

Page I-4