(4)bk No27 V1 Section Ii Instructions To Bidders

Electromechanical Equipment Lot No27 - Bidding Documents

BUON KUOP Hydropower Project

Section II - INSTRUCTIONS TO BIDDERS Table of Clauses II.1 INSTRUCTIONS TO BIDDERS (ITB) A. Introduction................................................................................................................................1 1. Scope of Bid...........................................................................................................................1 2. Source of Funds......................................................................................................................1 3. Eligible Bidders......................................................................................................................1 4. Eligible Goods and Services...................................................................................................1 5. One Bid per Bidder...............................................................................................................1 6. Cost of Bidding.......................................................................................................................1 B. The Bidding Documents.............................................................................................................2 7. Content of Bidding Documents..............................................................................................2 8. Clarification of Bidding Documents And Pre-Bid Meeting...................................................2 9. Amendment of Bidding Documents.......................................................................................3 C. Preparation of Bids....................................................................................................................3 10. Language of Bid...................................................................................................................3 11. Documents Comprising the Bid............................................................................................3 12. Bid Form...............................................................................................................................4 13. Bid Prices..............................................................................................................................4 14. Bid Currencies......................................................................................................................5 15. Documents Establishing Bidder’s Eligibility and Qualification...........................................6 16. Documents Establishing Goods’ Eligibility and Conformity to Bidding Documents..........7 17. Bid Security..........................................................................................................................8 18. Period of Validity of Bids.....................................................................................................8 19. Format and Signing of Bid...................................................................................................8 D. Submission of Bids.....................................................................................................................9 20. Sealing and Marking of Bids................................................................................................9 21. Deadline for Submission of Bids..........................................................................................9 22. Late Bids...............................................................................................................................9 23. Modification and Withdrawal of Bids..................................................................................9 E. Opening and Evaluation of Bids...............................................................................................10 24. Opening of Bids by the Employer........................................................................................10 25. Clarification and Extension of Bids.....................................................................................10 26. Preliminary Examination of Bids to determine the substantial responsiveness ..................10 27. Correction of Arithmetic Errors............................................................................................11 28. Conversion to Single Currency.............................................................................................12 29. Evaluation and Comparison of Bids.....................................................................................12 30. Contacting the Employer......................................................................................................15 F. Award of Contract......................................................................................................................15 31. Post-qualification..................................................................................................................15 32. Award Criteria.......................................................................................................................15 33. Employer’s Right to Vary Quantities at Time of Award.......................................................15 34. Employer’s Right to Accept any Bid and to Reject any or All Bids.....................................15 35. Notification of Award...........................................................................................................15 PECC 2

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36. Performance Security............................................................................................................16 II.2 BID DATA SHEET ............................................................................................................... 17 II.3 BID EVALUATION CRITERIA.......................................................................................... 22

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II.1 INSTRUCTION TO BIDDERS (ITB) A. Introduction 1. Scope of Bid

1.1 The ELECTRICITY OF VIETNAM (EVN) represented by the Hydropower Project Management Unit No.5 (HPPMU No.5) named in the Invitation for Bids, prepares the Bidding Document of Lot BK.27: “Supply of Electromechanical Equipments and Technical services” for the Buon Kuop Hydropower Project. Scope of Bid shall be specified in the Bid Data Sheet. 1.2 Time for performance of the Contract shall be provided in the Bid Data Sheet.

2. Source of Funds

2.1

Source of funds used for this Package is specified in the Bid Data sheet.

3. Eligible Bidders

3.1

This Invitation for Bids is open to all suppliers which are legally set up and having legally business registration, financial capacity, capacity to supply of required equipments and services as specified in this Bidding Documents and meeting all requirements stated in the Bid Data Sheet.

3.2

Bidders should not be a financial dependent agency of the Employer or a firm or any of its affiliates which have been engaged by the Employer to provide consulting services for the preparation of the design, specifications, and other documents to be used for the procurement of the goods to be purchased under this Invitation for Bids.

3.3

The Employer shall take into account in evaluation of bids the previous actions to violate or break the Contracts of a Bidder or any member of a consortium /Join Venture which are certified by Employers. Any Bidder which is under the investigation of competent authorities, or under the sanction to implement the court’s decision or arbitral award, or having deceitful actions, or hiding the information, or not telling the truth shall be rejected.

4. Eligible Goods and Services

4.1

All goods and related services to be supplied under the Contract shall have their obvious, legally origin and shall be allowed to be in circulation within Vietnam and import into Vietnam, or to be specified in the Bid Data Sheet.

5. One Bid per Bidder

5.1 Each Bidder shall submit only one bid either by itself, or as a partner in a consortium/joint venture. If a firm or a partner of a consortium/joint venture submits or participates in more than one bid (other than to be a sub-Supplier or in permitted cases or proposal of alternatives), singly or in consortium/joint venture, all bids related to such firm will be rejected. In case a parent firm registered to Employer as a Bidder, its associates/affiliates which are financial dependent shall not be allowed to submit Bids either by itself or as a partner in a consortium.

6. Cost of Bidding

6.1

The Bidder shall bear all costs associated with the preparation and submission of its bid, and the Employer will in no case be responsible or liable for those costs, regardless of the conduct or outcome of the bidding process.

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B. The Bidding Documents 7. Content of Bidding Documents

7.1

The bidding documents include: Volume 1

Commercial document

Volume 2

Technical Specifications

Volume 3

Bid Schedules

Volume 4

Drawings

In addition to the hard copy, a CD contains all electronic files of the bidding documents will be distributed to the prospective bidder for reference. If there is any discrepancy between hard copy and CD contents, hard copy shall prevail.

8. Clarification of Bidding Documents And Pre-Bid Meeting

7.2

The Bidder is expected to examine all instructions, forms, terms, and specifications in the bidding documents. Failure to furnish all information required by the bidding documents or to submit a bid not substantially responsive to the bidding documents in every respect will be at the Bidder’s risk and may result in the rejection of its bid.

8.1

A prospective Bidder requiring any clarification of the bidding documents may notify the Employer in writing or by facsimile at the Employer’s address indicated in the Invitation for Bids. The Employer will respond in writing to any request for clarification of the bidding documents which it receives no later than twenty-eight (28) days prior to the deadline for the submission of bids or specified in the Bid Data Sheet. Written copies of the Employer’s response (including an explanation of the query but without identifying the source of inquiry) will be sent to all prospective bidders that have received the bidding documents.

8.2

The Bidder is advised to visit and examine the site where the plant and equipment are to be installed and its surroundings and obtain for itself on its own responsibility all information that may be necessary for preparing the bid and entering into a contract for supply and installation of the plant and equipment. The Bidder is responsible for his own interpretation of all information obtained. The costs of visiting the site shall be at the Bidder's own expense.

8.3

The Bidder and any of its personnel or agents will be granted permission by the Employer to enter upon its premises and lands for the purpose of such inspection, but only upon the express condition that the Bidder, its personnel and agents will release and indemnify the Employer and its personnel and agents from and against all liability in respect thereof and will be responsible for death or personal injury, loss of or damage to property and any other loss, damage, costs and expenses incurred as a result of the inspection. The Bidder's designated representative is invited to attend a pre-bid meeting, which, if convened, will take place at the venue and time stipulated in the Invitation for Bids.

8.4 The purpose of the meeting will be to clarify issues and to answer questions on any matter that may be raised at that stage. The Bidder is requested, as far as possible, to submit any question in writing or by cable, to reach the Employer not later than one week before the meeting. It may not be practicable at the meeting to answer questions received late, but questions and responses will be transmitted as indicated hereafter. Minutes of the meeting, PECC 2

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including the text of the questions raised and the responses given, together with any responses prepared after the meeting will be transmitted without delay to all Employers of the bidding documents. 9. Amendment of Bidding Documents

9.1

At any time prior of (8) eight days before the deadline for submission of bids, the Employer may, for any reason, whether at its own initiative or in response to a clarification requested by a prospective Bidder, may modify the bidding documents by amendment.

9.2

Amendment of the bidding documents shall be an integral part of the bidding documents. All prospective bidders that have received the bidding documents will be notified of the amendment in writing or by facsimile, and will be bidding on them. Bidders must notify the Employer in writing or by facsimile of the receiving of the amendment and the original copy of such the letter of confirmation shall be attached with their Bids.

9.3

In order to allow prospective bidders reasonable time in which to take the amendment into account in preparing their bids, the Employer, at its discretion, may extend the deadline for the submission of bids.

C. Preparation of Bids 10. Language of Bid 10.1 The bid prepared by the Bidder, as well as all correspondence and documents relating to the bid exchanged by the Bidder and the Employer shall be written in the language specified in the Bid Data Sheet. Supporting documents and printed literature furnished by the Bidder may be in another language provided they are accompanied by an accurate translation of the relevant passages in the language specified in the Bid Data Sheet, in which case, for purposes of interpretation of the Bid, the translation shall govern. 11. Documents Comprising the Bid

11.1 The bid prepared by the Bidder shall comprise the following components: (a) a Bid Form and a Price Schedule completed in accordance with ITB Clauses 12, 13, and 14; (b) documentary evidence established in accordance with ITB Clause 15 that the Bidder is eligible to bid and is qualified to perform the contract if its bid is accepted; (c) documentary evidence established in accordance with ITB Clause 16 that the goods and ancillary services to be supplied by the Bidder are eligible goods and services and conform to the bidding documents; (d)

bid security furnished in accordance with ITB Clause 17;

Each copy/set of all documents above shall be bound in each folder and divided in two parts:

(1)The first part shall consist of the following documents to be prepared by the Bidder in accordance with Vol 1 – Section IV: Sample Forms and Vol 3: Bid Schedules I. COMMERCIAL SCHEDULES: a. Bid Form b. Power of Attorney c. Bid Security Form PECC 2

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d. Joint Venture Agreement (if any) e. Addenda receipt (if any) f.

Manufacture’s Authorization Form

g. Qualification Forms and related documentary evidence h. Price Schedules Schedule 1-1: Summary of Bid Prices Schedule 1-2: Breakdown of Bid Prices of Each Item Schedule 1-3: Breakdown of Bid prices of Mandatory Spare Parts and Special Tools Schedule 1-4: Breakdown of Bid prices of Recommended Spare Parts and Tools Schedule 1-5: Breakdown of Bid prices for Attendance of Employer’s Personnel at Factory Tests Schedule 1-6: Breakdown of Bid prices for Attendance of Employer’s Personnel at Factory Training Schedule 1-7: Breakdown of Bid Prices for Site Services Schedule 1-8: Delivery Schedule II. TECHNICAL SCHEDULES: Schedule 2-1: Performance Guarantees Schedule 2-2: Technical Particulars Schedule 3-1: Conditions Proposed by Bidders Schedule 3-2: Proposed Minor Deviation from the Specifications Schedule 3-3: Proposed Alternative Bids Schedule 3-4: Proposed Manufacturers and Subcontractors Schedule 3-5: Proposal for Site Erection Force Schedule 3-6: Proposal for Equipment Capabilities Schedule 3-7: Technical Information Schedule 3-8: Proposed Site Organization Chart Schedule 3-9: Transportation Information (heavy and big packages) Schedule 3-10: Transportation Information (oversize packages)

(2)The second part shall consist of other supporting documents in accordance with instruction in Vol 3: Bid Schedules – Preamble.

(3)In addition, a CD or floppy disk contains electronic files of all schedules shall be submitted with “ORIGINAL” set of the Bid. If there is any discrepancy between hard copy and CD contents, hard copy shall prevail. Other contents of the Bid recorded in the CD will be preferable. 12. Bid Form

12.1 The Bidder shall complete the Bid Form and the appropriate Price Schedule furnished in the bidding documents, indicating the goods to be supplied, a brief description of the goods, their country of origin, quantity, and prices.

13. Bid Prices

13.1 Except otherwise specified in the Bid Data Sheet, the Bidder shall indicate on the appropriate Price Schedule the total bid price of the goods it proposes to supply under the contract based on “entire package” basis. Total bid price shall comprise all obligations and

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liabilities of the Bidder specified in this bidding documents. 13.3 Prices indicated on the Price Schedules shall be fully entered by the Bidders. Subject to the Employer’s requirement specified in the Bid Data Sheet, in each Price Schedule, bid price shall include one part or all of the followings: (a) For goods offered from abroad: (i) the price of the goods shall be quoted CIF named port of destination, or CIP border point, or CIP named place of destination, in the Employer’s country, as specified in the Bid Data Sheet, or FOB named port of shipment if required in the form of Price Schedule. (ii) value added tax (VAT), import tax and duties in accordance with Vietnamese Law which will be payable on the goods if the contract is awarded. (iii) the price for inland transportation, insurance, and other local costs incidental to delivery of the goods from the port of entry to their final destination either at site or to the Employer’s warehouse. (iv) the price of services. (b) For goods offered from within the Employer’s country: (i) the price of the goods quoted EXW (ex works, ex factory, ex warehouse, ex showroom, or off-the-shelf, as applicable), including all customs duties and sales and other taxes already paid or payable: a. on the components and raw material used in the manufacture or assembly of goods quoted ex works or ex factory; or b. on the previously imported goods of foreign origin quoted ex warehouse, ex showroom, or off-the-shelf. (ii) value added tax (VAT), other taxes in accordance with Vietnamese Law which will be payable on the goods if the contract is awarded. (iii) the price for inland transportation, insurance, and other local costs incidental to delivery of the goods to their final destination either at site or to the Employer’s warehouse. (iv)

the price of services.

13.4 The terms EXW, CIF, shall be governed by the rules prescribed in the current edition of Incoterms 2000 published by the International Chamber of Commerce 38, Course Albert 1, Paris, France. 13.5 The Bidder shall be requested to indicate in the Price Schedules the unit price, sub-total price for each item of goods supplied and the total bid price. 13.6 If there is any discount on the Bid Price to be proposed by a Bidder, Bidder should specify which items of goods to be discounted and the amount of discount for such items. In case the Bidder has not specified the details of discount, it is understood that he discount shall be applied equally for all items. 14. Bid Currencies

14.1 Bid prices shall be quoted:

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(a) in US dollar (USD) for those inputs to the Works which the Bidder expects to supply from outside the Employer’s country; and (b) in Vietnamese Dong (VND) for those inputs to the Works which the Bidder expects to supply from within the Employer’s country, except otherwise specified in the Bid Data Sheet. 15. Documents Establishing Bidder’s Eligibility and Qualification

15.1 Pursuant to ITB Clause 11, the Bidder shall furnish, as part of its bid, documents establishing the Bidder’s eligibility to bid and its qualifications to perform the contract if its bid is accepted. 15.2 The documentary evidence of the Bidder’s eligibility to bid shall include: (a) the documentary evidence of the Bidder’s legally set up and having legally business registration to allow the Bidder doing business in the sector suitable to the required scope of supply. The person who signs the Bid Form shall be a legislative representative of the Bidder. An eligible power of attorney shall be submitted by the Bidder if the Bid Form to be signed by any person other than a legislative representative. For foreign bidders, copy of the business registration and the power of attorney should be certified by notary office. (b) Bid to be submitted by a consortium/joint venture shall include the followings: (i) a consortium/joint venture agreement signed by all members of the consortium/joint venture. The contents of this consortium/joint venture agreement shall bind the joint and several liabilities of all members, clearly indicate the obligations of each member, authorise a member to be a lead member, authorise a person of the lead member to be a legally representative to sign all documents during the bid process as well as other exchanged documents between the Employer and the Bidder on behalf of all members of the consortium/joint venture. The consortium/joint venture agreement shall also indicate that the lead member shall act on behalf of all members of the consortium to work with other member and the Employer. (ii) Business registration of each member of the consortium/joint venture and all other documentary evidence of the eligibility of each member of the consortium/joint venture as required in ITB Clause 15.1 and 15.2(a). (iii) Documentary evidence of financial capability and experience of each member of the consortium as required in ITB Clause 15.3(b) Lack of any required documents of any member of the consortium/joint venture shall be deemed as a reason to determine the nonresponsiveness of the consortium/joint venture and its bid shall be rejected. Only consortium/joint venture agreement specifically made for this package shall be acceptable. It shall be unacceptable of the consortium/joint venture agreement made for all Projects. To make a consortium/joint venture be eligible to bid, each member of the consortium/joint venture shall meet the minimum requirement as stated in the bidding documents specified for each portion of work to be carried out by such a member and as specified in the Bid Data Sheet. If any of those requirements is not met, the consortium/joint venture’s bid

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might be rejected. It is permitted that a Bidder or a member of a consortium/joint venture may be a sub-Supplier or manufacturer or Supplier of other Bidders to bid for this package. In case a parent firm registered as a Bidder, its associates/affiliates which are financial dependent shall not be allowed to submit Bids either by itself or as a partner in a consortium/joint venture. 15.3 The documentary evidence of the Bidder’s qualifications to perform the contract if its bid is accepted shall establish to the Purchaser’s satisfaction: (a)

that, in the case of a Bidder offering to supply goods under the contract for which the Bidder does not manufacture or otherwise produce, the Bidder shall be duly authorized by the respective Manufacturer(s) or producer(s) to supply the goods as scheduled by the bidding documents; or the Bidder has documentary evidence his ownership of the goods.

(b) that the Bidder has documentary evidence his experience to perform other similar contracts as specified in the Bid Data Sheet;

(c) that the Bidder has submitted financial reports for the last three (3) years which have been audited by an audit authority or certified by a competent authority; or other documentary evidence the financial capability of the Bidder as specified in the Bid Data Sheet.

(d) that, in case a Bidder not carrying out business within the Purchaser’s country, the Bidder shall be, or committed to be (if awarded the contract) legally represented by an Agent in that Purchaser’s country having adequate capability in respect of equipment and experience to carry out the Supplier’s maintenance, repair, and spare parts-stocking obligations prescribed in this bidding documents. Detailed requirements are specified in the Bid Data Sheet; and

(e) that the Bidder meets other qualification criteria specified in the Bid Data Sheet. 16. Documents Establishing Goods’ Eligibility and Conformity to Bidding Documents

16.1 Pursuant to ITB Clause 11, the Bidder shall furnish, as part of its bid, documents establishing the eligibility and conformity to the bidding documents of all goods and services which the Bidder proposes to supply under the Contract. 16.2 The documentary evidence of conformity of the goods and services to the bidding documents may be in the form of literature, drawings, and data, and shall consist of: (a) a detailed description of the essential technical and performance characteristics of the goods; (b) an item-by-item commentary on the Employer’s Technical Specifications demonstrating substantial responsiveness of the goods and services to those specifications, or a statement of deviations and exceptions to the provisions of the Technical Specifications. (c) others as provided in the Bid Data Sheet 16.3 For purposes of the commentary to be furnished pursuant to ITB Clause

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16.2(b) above, the Bidder shall note that standards for workmanship, material, and equipment, as well as references to brand names or catalogue numbers designated by the Employer in its Technical Specifications, are intended to be descriptive only and not restrictive. The Bidder may substitute alternative standards, brand names, and/or catalogue numbers in its bid, provided that it demonstrates to the Employer’s satisfaction that the substitutions ensure substantial equivalence to those designated in the Technical Specifications. 17. Bid Security

17.1 Pursuant to ITB Clause 11, the Bidder shall furnish, as part of its bid, a bid security in the amount specified in the Invitation for Bids. 17.2 The bid security shall be in one of the following forms: (a) a bank guarantee or an irrevocable letter of credit issued by a reputable bank legally operated and located in the Employer’s country or abroad, in the form provided in the bidding documents or another form acceptable to the Employer. If the bid security issued by a foreign bank, it is requested that the security should be issued through its legally operated representative office in Vietnam (if any) or its validity should be confirmed by a Vietnamese Bank which have the agent relationship with the issuing Bank; or (b) a cashier’s or certified check accompanied by a certification as required by the bidding documents. 17.3 Any bid not secured in accordance with ITB Clauses 17.1 and 17.2 shall be treated as nonresponsive and will be rejected by the Employer. 17.4 Unsuccessful bidders’ bid security will be discharged or returned as promptly as possible but not later than thirty (30) days after the expiration of the period of bid validity prescribed by the Employer pursuant to ITB Clause 18. 17.5 The successful Bidder’s bid security will be discharged upon the Bidder signing the contract, and furnishing the performance security, pursuant to ITB Clause 35. 17.6 The bid security may be forfeited: (a) if a Bidder withdraws its bid during the period of bid validity specified by the Bidder on the Bid Form; or (b) in the case of a successful Bidder, if the Bidder fails: (i) to sign the contract; or (ii) to furnish performance security. (c) if a Bidder violates the in-force Bidding Regulation.

18. Period of Validity of Bids

18.1 Bids shall remain valid for the period specified in the Invitation for Bids after the date of bid opening prescribed by the Employer. A bid valid for a shorter period shall be rejected by the Employer as nonresponsive. 18.2 In exceptional circumstances, the Employer may solicit the Bidder’s consent to an extension of the period of validity. The request and the responses thereto shall be made in writing (or by facsimile). The bid security provided under ITB Clause 17 shall also be suitably extended.

19. Format and Signing of Bid

19.1 The Bidder shall prepare one (1) original and six (06) copies of the bid (or the number of copies of the bid as indicated in the Bid Data Sheet), clearly marking each “ORIGINAL BID” and “COPY OF BID,” as appropriate. In the event of any discrepancy between them, the original shall govern. The original bid shall include Bid Form and all required

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documents as indicated in the ITB Clause 11. 19.2 The original and the copies of the bid shall be typed or written in indelible ink and shall be paged continuously. The Bid Form, pages of amended printed literature, guaranteed technical characteristics and modification or clarification of the Bid (in the original copy of the Bid) shall be signed by the Bidder or a person or persons duly authorized to bind the Bidder to the contract. In case the person duly authorized signed the Bid, the Bid should be accompanied by a power of attorney as indicated in the ITB Clause 15.2.

19.3Bids shall not have any interlineations, erasures or overwriting except as required by the Employer or as been necessary to correct the Bidder’s mistake. Any interlineations, erasures, or overwriting shall be valid only if they are initialed by the person or persons signing the bid.

D. Submission of Bids 20. Sealing and Marking of Bids

20.1 The Bidder shall seal the original and each copy of the bid in separate envelopes, duly marking the envelopes as “ORIGINAL” and “COPY.” The envelopes shall then be sealed in an outer envelope. 20.2 The inner and outer envelopes shall:

(a) be addressed to the Employer at the address given in the Bid Data Sheet; (b)

name and address of the Bidder;

(c)

name of reference number of the package; and

(d) a statement: “DO NOT OPEN BEFORE [time and date],” to be completed with the time and the date specified in the Bid Data Sheet. 20.3 The requirement as indicated in the ITB Clause 20.2, especially the name and address of the Bidder shall be clearly indicated to enable the Employer to contact with the Bidder if necessary. 20.4 If the outer envelope is not sealed and marked as required by ITB Clause 18.2, the Employer will assume no responsibility for the bid’s misplacement or premature opening. 21. Deadline for Submission of Bids

21.1 Bids must be received by the Employer at the address specified in the Invitation for Bids no later than the time and date specified in the Invitation for Bids. 21.2 The Employer may, at its discretion, extend this deadline for the submission of bids by amending the bidding documents in accordance with ITB Clause 9, in which case all rights and obligations of the Employer and bidders previously subject to the deadline will thereafter be subject to the deadline as extended.

22. Late Bids

22.1 Any bid received by the Employer after the deadline for submission of bids prescribed by the Employer pursuant to ITB Clause 21 will be rejected and returned unopened to the Bidder at the place of bid submission.

23. Modification and Withdrawal of Bids

23.1 The Bidder may modify or withdraw its bid after the bid’s submission, provided that written notice of the modification, including substitution or withdrawal of the bids, is received by the Employer prior to the deadline prescribed for submission of bids.

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23.2 A withdrawal notice may be delivered by hand or sent by facsimile, but followed by a signed confirmation copy, postmarked not later than the deadline for submission of bids. 23.3 No bid may be modified or withdrawn after the deadline for submission of bids. 23.4 No bid may be withdrawn in the interval between the deadline for submission of bids and the expiration of the period of bid validity specified by the Bidder on the Bid Form. Withdrawal of a bid during this interval may result in the Bidder’s forfeiture of its bid security, pursuant to the ITB Clause 17.7.

E. Opening and Evaluation of Bids 24. Opening of Bids by the Employer

24.1 The Employer will open all bids in the presence of bidders’ representatives who choose to attend, at the time, on the date, and at the place specified in the Invitation for Bids. The bidders’ representatives who are present shall sign a register evidencing their attendance and Record of Bid Opening. 24.2 The bidders’ names, bid modifications or withdrawals, bid prices, discounts, and the presence or absence of requisite bid security and such other details as the Employer, at its discretion, may consider appropriate, will be announced at the opening.

25. Clarification and Extension of Bids

25.1 During evaluation of the bids, the Employer may, at its discretion, ask the Bidder for a clarification of its bid. The request for clarification and the response shall be in writing, and no change in the prices or substance of the bid shall be sought, offered, or permitted 25.2 The Employer may, if necessary, at its discretion, request the Bidder’s consent to an extension of the bid validity period and bid security period. The content of the request for extension and response thereto shall be made in writing or by facsimile. Bidder, at its discretion, may refuse the request without forfeiting its bid security.

26. Preliminary Examination of Bids to determine the substantial responsiveness

26.1 Prior to detailed evaluation, the Employer will examine the bids to determine: (a) whether they are met the criteria for an eligible bidders indicated in the ITB Clause 3; (b) whether the documents have been properly signed; (c) whether the required bid security have been furnished with appropriate terms and conditions;; and (d) whether the bids are generally in order and substantial responsive to the bidding documents. 26.2 The Employer will determine the substantial responsiveness of each bid to the bidding documents. For purposes of these Clauses, a substantially responsive bid is one which conforms to all the terms, conditions and technical requirements of the bidding documents without material deviations. Material deviations mean deviations which: (a) effect to the scope, quality or characteristics of the works; (b) limit the rights of the Employer or obligation of the Bidder provided in the Contract; (c) include modifications resulting in unfair competition with the other

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substantially responsive bids. 26.3 If a bid is not substantially responsive, it will be rejected by the Employer and may not subsequently be made responsive by the Bidder by correction or withdrawal of the nonconformity which have been included in its bid submitted to the Employer before the deadline of submission of bids. Bid may be rejected due to one or more of the following reasons, included but not limited to: (a) Bidder’s legal status is not satisfied as requested (e.g., business registration, be legally allowed to do business within Vietnam, eligibility of a consortium, etc. as indicated in the ITB Clause 3 and the Bid Data Sheet); (b) Bidder’s name does not appear on the list of Bidders who have purchased or authorized other to purchase the bidding documents officially; (c) The origins of goods are not eligible; (d) Bid is not sealed and marked properly and/or late submitted; (e) The required bid security is not furnished or the amount of bid security is insufficient or the validity of the bid security is shorter than the required period; (f) There is no duly power of attorney to be attached to the Bid if it is signed by an authorized person; (g) Bid consists of material deviations (h) Partial offer (lack of main item in the scope of supply) (i) Bidder submitted only alternative offer (j) Bid is not responsive to the technical specification (in this case, if necessary, Bidder shall be requested to submit additional information) (k) Bidder is named in two Bids for the same package (l) Bid is not responsive to the other precedent conditions of the bidding documents. 27. Correction of Arithmetic Errors

27.1 All substantial responsive bids shall be checked for arithmetical errors by the Employer. Arithmetical errors will be rectified on the following basis: (a) if there is a discrepancy between typed figure and hand writing figure, the latter shall prevail; (b) if there is a discrepancy between words and figures, the amount in words will prevail. (c) if there is a discrepancy between total bid price and total price of each item, the latter shall prevail; (d) if there is a discrepancy between the unit price and the total price that is obtained by multiplying the unit price and quantity, the unit price shall prevail, and the total price shall be corrected; (e) if the total price of an item is filled in but there is no unit price for such an item, the unit price shall be obtained by dividing the total price into quantity; (f) if there is an unit price but no total price for an item, such total price shall be obtained by multiplying the unit price and quantity; (g) if there is a mistake of confusing the comma and the full stop

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standing for thousand units, this mistake may be allowed to be corrected since it is confirmed a reasonable mistake. Total bid price stated in the Bid shall be corrected by the Employer in conformity with the above principles. The corrected total bid price shall be noticed to the Bidder for confirmation and if the Bidder agrees with the corrected total bid price, it shall be bound to the Bidder. If the Bidder does not accept the correction of the errors, its bid will be rejected. If the absolute value of total arithmetical corrections as above, except item (g) (if any), is in exceed of fifteen percent (15%) of the original total bid price, related Bid will be rejected. 28. Conversion to Single Currency

28.1 To facilitate evaluation and comparison, the Employer will convert all bid prices expressed in the amounts in various currencies in which the bid prices are payable to the currency selected in the Bid Data Sheet at the selling exchange rate established for similar transactions by the Vietcom Bank on the bid opening date.

29. Evaluation and Comparison of Bids

29.1 The Employer will evaluate and compare the bids which have been determined to be substantially responsive, pursuant to ITB Clause 26 and 27. 29.2 Detailed evaluation shall be carried out to determine the evaluated bid price based on the conversion to the same technical, financial and commercial ground. It shall also be the basis for comparison bids. 29.3 Prior to the calculation of evaluated bid prices, the Employer will determine the level of responsiveness of each Bid against technical specification and commercial conditions indicated in the bidding documents (for only minor deviations, not substantially non-responsive deviations) 29.4 Pursuant to the ITB Clause 29.2, the Employer will take the followings into account when calculation the evaluated bid prices: (a) Bid prices as stated in the ITB Clause 13 (has been arithmetical corrected according to ITB Clause 27) (b) Adjustments for technical, commercial deviations and deviations in scope of supply (c) Adjustments for deviations in characteristics and efficiency of offered goods and equipment (d) Others as provided in the bidding documents. 29.5 Pursuant to the ITB Clause 29.4, the Employer’s evaluation of a bid will take into account, in addition to the bid price, one or more of the following factors as specified in the Bid Data Sheet: (a)

unconditional discount which have been announced by the Bidder at the bid opening ceremony;

(b)

custom duties and import tax imposed on imported goods;

(c)

cost of inland transportation, insurance, and other costs within the Employer’s country incidental to delivery of the goods to their final destination either at site or to the Employer’s warehouse;

(d)

deviations in the delivery schedule offered in the bid from that specified in the bidding documents;

(e)

deviations in payment schedule from that specified in the bidding documents;

(f)

the cost of components, mandatory spare parts, and service;

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(g)

the availability in the Employer’s country of spare parts and aftersales services for the equipment offered in the bid;

(h)

the projected operating and maintenance costs during the life of the equipment;

(i)

the performance and productivity of the equipment offered; and

(j)

other specific criteria indicated in the Bid Data Sheet and/or in the Technical Specifications of the bidding documents.

29.6 For factors retained in the Bid Data Sheet pursuant to ITB 29.5, one or more of the following quantification methods will be applied, as detailed in the Bid Data Sheet: (a) Inland transportation from EXW/port of entry/border point, insurance, and incidentals. In this case, one of the possible method is: Inland transportation, insurance, and other incidental costs for delivery of the goods from EXW/port of entry/border point to the final destination named in the Bid Data Sheet will be computed for each bid by the Employer on the basis of published tariffs by the rail or road transport agencies, insurance companies, and/or other appropriate sources applied widely in the project’s area. To facilitate such computation, bidder shall furnish in its bid the estimated dimensions and shipping weight and the approximate EXW/CIF (or CIP border point) value of each package. The above cost will be added by the Employer to EXW/CIF/CIP border point price. (b) Delivery schedule. The Employer requires that the goods and services under the Invitation for Bids shall be delivered and carried out at the time specified in the Schedule of Requirements. If the offered delivery schedule specified in the Bid is longer than the Schedule of Requirements in the bidding documents, an “adjustment” will be calculated for such Bid by applying an amount of liquidated damage for delay, specified in the Bid Data Sheet, and this will be added to the bid price for evaluation and comparison of bids. However, the Bid will be rejected if its offered delivery schedule is longer than the permitted delay period as provided in the Bid Data Sheet (c) Deviation in payment schedule. (i) Bidders shall state their bid price for the payment schedule outlined in the SCC. Bids will be evaluated on the basis of this base price. Bidders are, however, permitted to state an alternative payment schedule and indicate the reduction in bid price they wish to offer for such alternative payment schedule. The Employer may consider the alternative payment schedule offered by the selected Bidder, or (ii) The SCC stipulates the payment schedule offered by the Employer. If a bid deviates from the schedule and if such deviation is considered acceptable to the Employer, the bid will be evaluated by calculating interest earned for any earlier payments involved in the terms outlined in the bid as compared with those stipulated in this invitation, at the rate per annum specified in the Bid Data Sheet. PECC 2

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(d) Cost of spare parts. Pursuant to the Bid Data Sheet, the Employer will evaluate based on one of following methods: (i) The list of items and quantities of major assemblies, components, and selected spare parts, likely to be required during the initial period of operation specified in the Bid Data Sheet, is annexed to the Technical Specifications. The total cost of these items, at the unit prices quoted in each bid, will be added to the bid price, or (ii) The Employer will draw up a list of high-usage and high-value items of components and spare parts, along with estimated quantities of usage in the initial period of operation specified in the Bid Data Sheet. The total cost of these items and quantities will be computed from spare parts unit prices submitted by the Bidder and added to the bid price, or (iii) The Employer will estimate the cost of spare parts usage in the initial period of operation specified in the Bid Data Sheet, based on information furnished by each Bidder, as well as on past experience of the Employer or other Employers in similar situations. Such costs shall be added to the bid price for evaluation. (e) Spare parts and after sales service facilities in the Employer’s country. The cost to the Employer of establishing the minimum service facilities and parts inventories, as outlined in the Bid Data Sheet, if quoted separately, shall be added to the bid price. (f) Operating and maintenance costs. Since the operating and maintenance costs of the goods under procurement form a major part of the life cycle cost of the equipment, if necessary, these costs will be evaluated in accordance with the criteria specified in the Bid Data Sheet. (g) Performance and productivity of the equipment. Pursuant to the Bid Data Sheet, the Employer will evaluate based on the following methods: (i) Bidders shall state the guaranteed performance or efficiency in response to the Technical Specification. If the guaranteed performance or efficiency stated by the Bidder is below the requirement, an adjustment will be added to the bid price, using the methodology specified in the Bid Data Sheet. or (ii) Goods offered shall have a minimum productivity specified under the relevant provision in the Technical Specifications to be considered responsive. Evaluation shall be based on the cost per unit of the actual productivity of goods offered in the bid, and adjustment will be added to the bid price using the methodology specified in the Bid Data Sheet or in the Technical Specifications. (h) Specific additional criteria indicated in the Bid Data Sheet and/or in the Technical Specifications. The relevant evaluation method shall be detailed in the Bid Data PECC 2

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Sheet and/or in the Technical Specifications. 29.7 If the package is divided into several lots, the Employer will evaluate and compare the bids on the ground of each specific lot in order to award the contract according to the ITB Clause 31. 30. Contacting the Employer

30.1 Subject to ITB Clause 25, no Bidder shall contact the Employer on any matter relating to its bid, from the time of the bid opening to the time the contract is awarded. 30.2 Any effort by a Bidder to influence the Employer in its decisions on bid evaluation, bid comparison, or contract award may result in the rejection of the Bidder’s bid.

F. Award of Contract 31. Postqualification

31.1 The Employer will determine to its satisfaction whether the Bidder that is selected as having submitted the lowest evaluated responsive bid is qualified to perform the contract satisfactorily, in accordance with the criteria listed in ITB Clause 15. 31.2 The determination will take into account the Bidder’s financial, technical, and production capabilities. It will be based upon an examination of the documentary evidence of the Bidder’s qualifications submitted by the Bidder, pursuant to ITB Clause 15, as well as such other information as the Employer deems necessary and appropriate. 31.3 An affirmative determination will be a prerequisite for award of the contract to the Bidder. A negative determination will result in rejection of the Bidder’s bid, in which event the Employer will proceed to the next lowest evaluated bid to make a similar determination of that Bidder’s capabilities to perform the Contract satisfactorily.

32. Award Criteria

32.1

In order to select a successful Bidder to award the contract, the Employer will consider the following factors: (a) Its Bid has been determined to be substantially responsive to the bidding documents; (b) Bid has been determined to be the lowest evaluated bid; (c) The Bidder is determined to be qualified to perform the contract satisfactorily according to the ITB Clause 31; (d) Domestic preference as stipulated by Vietnamese Law;

33. Employer’s Right to Vary Quantities at Time of Award

33.1 The Employer reserves the right at the time of contract award to increase or decrease, by the percentage indicated in the Bid Data Sheet, the quantity of goods and services originally specified in the Schedule of Requirements without any change in unit price or other terms and conditions.

34. Employer’s Right to Accept any Bid and to Reject any or All Bids

34.1 The Employer reserves the right to accept or reject any bid, and to annul the bidding process and reject all bids at any time prior to contract award, without thereby incurring any liability to the affected Bidder or bidders or any obligation to inform the affected Bidder or bidders of the grounds for the Employer’s action.

35. Notification of

35.1 Bidder whose Bid is substantial responsive to the bidding documents

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and having lowest evaluated bid price will be invited for negotiation and finalization of the Contract. The ultimate goal of the contract negotiation and finalization is to clarify or modify or supplement the issues arisen during bidding process. After successful negotiation of contract, the Employer will notify the successful Bidder in writing. This notification of award (referred to as “Letter of Acceptance”) shall state clearly the contract price payable by the Employer to the Contractor for realization of his obligations under the Contract. 35.2 The Contract shall consist of all agreements reached between the Contractor and the Employer. Within twenty-eight (28) days of issuing the notification of award, the successful Bidder shall sign the Contract and return it to the Employer or properly arrange for a joint signing of the Contract with the Employer. 35.3 Upon the successful Bidder’s receiving of the notification of award, the Employer will promptly notify all other Bidders that their Bids unsuccessful Bidder and will discharge its bid security.

36. Performance Security

36.1 Within twenty-eight (28) days of the receipt of notification of award from the Employer, the successful Bidder shall furnish the performance security with the amount of ten percent (10%) of the Contract Price in accordance with the Conditions of Contract, in the Performance Security Form provided in the bidding documents, or in another form acceptable to the Employer. 36.2 Failure of the successful Bidder to comply with the requirement of ITB Clause 34 or ITB Clause 35.1 shall constitute sufficient grounds for the annulment of the award and forfeiture of the bid security, in which event the Employer may make the award to the next lowest evaluated Bidder or call for new bids.

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II.2 BID DATA SHEET The following specific data for the goods to be procured shall complement, supplement, or amend the provisions in the Instructions to Bidders (ITB). Whenever there is a conflict, the provisions herein shall prevail over those in ITB.

General ITB 1.1

Scope of Supply: Scope of supply for this package shall comprise: - For the goods offered from abroad: The design; manufacturing; supplying of equipment, necessary materials and spare parts; factory testing; finishing; painting; seaworthy packing for export; insuring; shipping to the Ports of Ho Chi Minh City. - For the goods offered from within Employer’s country: The design; manufacturing; supplying of equipment, necessary materials and spare parts; factory testing; finishing; painting; packing; inland transportation with insurance; delivery to the Buon Kuop Powerhouse. - Technical services: Providing necessary information for designing of civil work relating to electromechanical equipment; qualified personnel for instructing and supervising to the site Erection, necessary adjustment, modification, site testing and commissioning until completion, preparation of relevant asbuilt drawings, training; directing Employer’s personnel during the Reliability Test Run. Scope of supply for this package shall cover - to make a complete package so as to ensure a normal operation of the Power Plant for generating electricity to the National Power Grid - but not limited to: - Two Generating units and related valves; - Auxiliary mechanical equipments; - Power house conveying systems; - Electrical and control equipments; - 220/110kV Switchgears and power transformers; - Spare parts.

ITB 1.2

Time for performance of the Contract: Time periods for supplying of equipment and technical services are specified in section “Price and Delivery Schedules” in Volume 3

ITB 2.1

Source of funds: (i)

Bidders who offer goods originated from OECD’ member countries and China are not required to arrange the finance for the package. EVN will arrange an Export Credit Agency (ECA) backed finance to fund for this package.

(ii) Bidders who offer goods originated from outside of OECD’ member countries and China are required to arrange the finance for the package based on their own credit terms or through an Export Credit Agency in the form of Supplier or Buyer Credit. The Loan agreement shall be guaranteed by the Ministry of Finance of Vietnam. If the credit is arranged in the form of Buyer Credit, Electricity of Vietnam (EVN), as the Owner of the Project, shall be the Borrower and during the implementation of the project, EVN shall pay to the Supplier for PECC 2

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performance of his obligations under the Contract. The financial arrangement shall at least meet the following requirements:

ITB 10

-

The value of the loan shall not be less than 85% of the Contract Price (the remaining shall be arranged by EVN);

-

The grace period shall not be less than twenty four (24) months and the repayment period shall not be less than twelve (12) years;

-

The interest rate shall be fixed and not higher than CIRR at the day of submission;

-

The currencies of the loan shall be in USD, EUR and/or JPY;

-

Management fee: not higher than 0.3% of total loan value;

-

Commitment fee: not higher than 0.3% of outstanding amount. Applicable period starting from the date the loan agreement coming to effect;

-

Insurance fee: equal or lower than insurance fee rate applied by ECAs at the day of bid submission. Applicable period: equal to repayment period;

-

Others fee: not applicable.

Language of the bid: English.

Bid Price and Currency ITB 13.1

The Bidder shall quote fixed prices for all items of the Works and Services. If the Employer accepts the Bidder, the prices quoted by the Bidder shall remain fixed and valid until completion of the Contract performance, and no adjustment shall be made to the Contract Price due to changes in the prices of labor/or materials or transport or any other matters affecting the cost of execution the Works. Bid price with adjustment will be rejected.

ITB 13.3(a)

Bidder shall complete the Price Schedules by filling up all blanks in the Form of Price Schedules (Schedules 2.1 → 2.7) without omissions. The prices shall be quoted: (i) FOB Price. (ii) Marine freight and insurance cost to Ho Chi Minh City Ports including cost for unloading. (iii) Total CIF HCMC Price. (iv) Cost for Technical services, Attendance of EVN’s Personnel at Factory Tests and Training as specified in Scope of supply and/or defined in Condition of Contract.

ITB 13.3(b)

Bidder shall complete the Price Schedules (Schedules 2.1 → 2.7) by filling up all blanks in the Form of Price Schedules without omissions. The prices shall be quoted: (i) the price of the goods quoted EXW (ex works, ex factory, ex warehouse, ex showroom, or off-the-shelf, as applicable), including all customs duties and sales and other taxes already paid or payable. (ii) the price for inland transportation, insurance, and other local costs incidental to delivery of the goods to the Employer’s warehouse. (iii) Total DDU Price. (iv) Cost for Technical services as specified in Scope of supply and/or defined

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in Condition of Contract. (v) value added tax (VAT), other taxes in accordance with Vietnamese Law which will be payable on the goods if the contract is awarded. ITB 14 15.3(b)

Currency of Bid: “USD”, and/or “EUR” and/or “JPY” and/or “VND”.

-

The Bidder shall have the past experience as Prime Contractor in the execution of at least two (2) hydropower projects with total capacity not less than 200MW/each project at the outside of the bidder’s home country for design, manufacture, supply, and commissioning of Generating Unit within the last twenty (20) years that have been operated successfully for at least one (1) year.

-

The Bidder or his Manufactures have the past experience as contractor or subcontractor at the outside of the bidder’s country in the execution for design, manufacture, supply and commissioning of following Equipments that have been operated successfully for at least one (1) years; this experience should include: +

Vertical shaft Francis Turbine with unit capacity of 140 MW or more, water head of 100 m or approximate for at least two (2) Projects in the last twenty (20) years;

+

Turbine Guard valve (Butterfly valve type) with inside diameter of 4m or more for at least two (2) Projects in the last twenty (20) years;

+

Digital PID Governor for Francis Turbine with turbine power output of 100 MW or more for at least two (2) Projects in the last fifteen (15) years;

+

Vertical shaft type Synchronous Generators with unit capacity of 160 MVA or more for at least two (2) Hydropower Projects in the last twenty (20) years;

+

Digital AVR for Synchronous Generator with capacity of 150 MVA or more for at least two (2) Hydropower Projects in the last twenty (15) years;

+

Control System including Supervisory Control and Data Acquisition (SCADA) and related Control Board, Digital type Protection Relays for Hydraulic Generating Unit, Switchyard and Transmission line for at least 2 hydropower Plants consisting of two (2) or more generating Units with total installed capacity of 300 MW or more in the last fifteen (15) years;

+

Special three phase (three-subdivided tank type) oil immersed, forced oil circulation and forced air cooled type Transformer with capacity of 160 MVA or more for at least two (2) Projects in the last fifteen (15) years;

+

SF6 type Generator Circuit Breaker with rated voltage of 17,5 kV or more, rated current of 8000A or more, rated short circuit current of 100 KA or more for at least ten (10) sets in the last five (5) years.

Details of the experiences for the above items shall be stated in the Qualification forms (Vol 1 – Section IV – G. Qualification forms) and shall be backed up with Certificates issued by the Owners or Consulting Engineers of those projects providing necessary information and stating that the supplied equipments have been put into operation successfully. Other required documents: ISO or equivalent certificate of Manufacturers 15.3(c)

Average annual turnover (defined as bidding for works in progress and

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completed) over the last 3 years (2001-2003) of USD 50 millions equivalent. Details of the above item shall be declared in the Qualification forms (Vol 1 – Section IV – G. Qualification forms) and shall be backed up by his/their audited financial statements. 15.3(e)

Key personnel for site technical services have worked at least ten (10) years in their profession and have participated for at least two (2) hydropower projects as supervisor/manager in following fields: -

Installation of Francis Turbine.

-

Installation of Generator.

-

Installation of Control system for Hydropower Plant.

-

Commissioning of Hydropower Plant.

Details of the above item shall be declared in the Qualification forms (Vol 1 – Section IV – G. Qualification forms) and shall be backed up by Notarized Professional Record for each Candidate. ITB 16.2(c)

Equipments catalogues, Contractor’s and/or Manufacturer’s brochures, or any documents, at the bidder discretion, are required for further explanation.

ITB 17

Amount of Bid Security: Bid must be accompanied by a Bid Security of USD 1,000,000 (one million United State Dollars) Currency of Bid Security: United State Dollar (USD) Bid Security Validity Period: 210 (two hundred and ten) days from the deadline for submission of Bids.

ITB 18

Bid Validity Period: 180 (one hundred and eighty) days from the deadline for submission of Bids.

ITB 19

Number of copies of Bid: The Bidder shall prepare one (1) original and six (06) copies/sets of the bid, clearly marking each one as “Original Bid,” “Copy No.1,” “Copy No.2,” etc., as appropriated. In the event of any discrepancy between them, the original shall govern.

ITB 20.2(a)

ELECTRICITY OF VIETNAM Hydropower Project Management Unit No.5 Truong Chinh Street, Buon Ma Thuot City, DakLak Province – VIETNAM

ITB 20.2(d)

DO NOT OPEN BEFORE 13h00 January 26, 2005

Opening and Evaluation of Bids ITB 28

Currency chosen for the purpose of converting to a common currency: USD Source of exchange rate: selling rate announced by the Vietcom Bank on the date of the bid opening

ITB 29.5

Refer to sub-section II.3 Bid Evaluation Criteria

ITB 29.6

Refer to sub-section II.3 Bid Evaluation Criteria

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Contract Award ITB 32

Percentage for quantity increase or decrease: not exceed fifteen percent (15%)

ITB 35

Amount of Performance Security shall be equivalent to ten percent (10%) of the Contract Price.

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II.3 BID EVALUATION CRITERIA

I. General 1.1

Objective of Evaluation The purpose of bid evaluation is to determine from Bids received the lowest evaluated substantially responsive bid. The lowest evaluated Bid may or may not necessarily be the lowest price Bid. In order to determine the lowest evaluated Bid accurately and systematically, the Bid evaluation will follow procedures and criteria set forth herein below.

1.2

Clarification during Evaluation In case of finding missing minor items and incompleteness of technical information in Bid proposals and/or deviations from the technical and commercial conditions specified in the Bidding Documents, the Employer could ask the respective Bidders for clarification in writing. No change in the price or substance of the bid shall be sought, offered and permitted.

II. Evaluation Procedure and Criteria 2.1

Evaluation Procedure Evaluation of the Bid will be carried out in the following three (3) stages: (1) Stage 1:

Preliminary Evaluation Step 1.

(2) Stage 2:

(3) Stage 3:

2.2

Completeness and Responsiveness of Bid

Detailed Evaluation Step 2.

Arithmetical Error in Prices

Step 3.

Technical Evaluation

Step 4.

Commercial Financial Evaluation

Step 5.

Evaluated Bid Price and Selection of Lowest-Evaluated Responsive Bid

Determination of Lowest Evaluated Bid Step 6.

Detailed Evaluation of Alternative Bids

Step 7.

Final Estimation of Contract Price

Criteria Stage 1 - Preliminary Evaluation Step 1 - Completeness and Responsiveness of Bids Completeness of Bid will be checked to examine whether the Bid contains following documents and/or information. (1) Form of Bid duly filled in and signed. (2) Bid Security (This should be included in the Bid and not sent separately). (3) Addenda Receipt (if any). (4) Power of Attorney. (5) Joint Venture Agreement (if any). (6) Schedules of Technical Particulars. (7) Schedules of Prices. (8) Bidder’s and Manufacturers’ Eligibility and Qualifications Documents. (9) Delivery schedule. (10)Manufacturers and Subcontractor proposed by the Bidder. (11) Financing proposal for the Contract (for the Bidder who offer goods originated from outside OECD’ member countries and China).

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Following is to check the substantial responsiveness. This exercise aims at eliminating Bids which are not responsive to Specifications and/or other important requirements to the extent that they are entirely unacceptable and merit no further consideration. Any one of the following items judging as non-conformance to the requirements in the Bidding Documents shall cause a rejection of the Bid, but not limited to: (i) Bid’s name does not appear on the list of Bidders who have bought Bid Documents from the Employer officially. (ii) Bidder is not legally established and registered. Insufficiency of Documents showing legal status of Bidder. (iii) No attachment of the written Agreement among each member to form a Joint Venture or consortium. (iv) The Bids that are not delivered in a sealed envelope and due formalities by the time on the Bid Closing Date as specified herein, (Note: Bid will be returned unopened to the Bidder.) (v) If bid not valid as required. (vi) If not accompanied by a Bid Security or with a Bid Security but shortage of terms, amount and validity as required. (vii)If not signed by the Authorized Representative of Bidder in all required places. (viii)If Bid Document not enclosed Power of Attorney (ix) If Bidders and Manufacturers not satisfied in Qualification, Experience stipulated in ITB 15.3 Bid Data Sheet of the Biding Document (x) If it is Partial Bid. (xi) If the Bidder submitted only an Alternative Bid, or submitted more than one (1) Bid. (xii)If not accompanied by all Forms and Schedules completed in all respects. (xiii)If Bid Document contains fail information.

(xiv)If the Bidder who is required to arrange the finance for the package not meet the minimum requirements specified in Bid Data Sheet ITB 2.1 (ii) Bids which fail to conform to any of the above mentioned requirements should be considered substantially non-responsive and rejected. However, some minor items will be allowed for clarification. Failure in submission additional documents as required by the Employer shall result in rejection of Bids The Bids which are evaluated as substantially responsive will be selected for 2nd Stage Evaluation. Stage 2 - Detail Evaluation Step 2 - Arithmetical Error in Prices Each Bid must be examined for numerical and arithmetical errors. Any Bid with arithmetical mistakes shall be corrected in accordance with ITB 27. If total corrections exceed 15% Bid Price, the Bid shall be rejected The clarification on the above adjustment will be made to the Bidders. If the Bidder does not accept the correction of errors, its bid will be rejected and the bid security will be forfeited. Step 3 - Technical Evaluation All substantially Responsive Bid shall be check for the technical compliance with all items specified in Volume 2: Specification and Volume 3-Schedule 1.1(A) Performance Guarantees and Schedule 1.1(B) Technical Particular of the Biding Document by Pass/ Fail method. A Bid, complying with all items shall be shortlisted for the next step. Step 4 - Commercial Financial Evaluation These portions of prices will be excluded from commercial evaluation: PECC 2

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-

Attendance of Employer’s personnel at Factory Test.

-

Attendance of Employer’s personnel at Factory Training.

-

Recommended spare parts and tools.

-

Inland transportation, insurance, and other local costs incidental to delivery to the Employer’s warehouse for goods offered within Viet Nam.

- VAT for goods offered within Viet Nam. (1) Price Adjustment for Scope of Supply The cost of the missing item(s) should be added to the Bid Price. The amount added should be an average of corresponding quotations by other substantially responsive Bids. In case an average of corresponding quotations can not be made, then adjustment will be made by reasonable estimate by the Employer. If the quantity of item(s) differs from specified, unit price of this item should be applied If total adjustment for quantity exceeds 10% of Bid Price, the bid shall be rejected (2) Price Adjustment for Technical Deviation (i) Non-substantive deficiency in the technical compliance should not be cause for rejection of the Bid. The prices adjustment for any deficiency should be added to the Bid price. The adjustment should be an average of the corresponding quotations by other substantially responsive Bids. If the last are not available, reasonable estimate by Employer will be used for adjustment. In case, the unit price of the deficiency item(s) higher than above mentioned average price, ten percent (10%) of this unit price should be added. (ii) For unacceptable proposed Deviations, the price for withdrawal of deviations shown in schedule 3.2 Proposed minor Deviation from Specifications of the bid will be used, if necessary. If such a price is not given, the Employer will make its own assessment of the cost of such a deviation for the purpose of ensuring fair comparison of bids (3) Price Adjustment for Delivery Schedule The conformity of Proposed Delivery Schedule with Required Construction Schedule will be judged. If any item, in the opinion of the Employer, influence to construction work or completion time of Project, price adjustment will be made complied with following manners:

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For the delivery of Draft Tubes and Spiral Cases, percentage of Price Adjustment for each delayed week: A rate of 0.05% (point one-haft percent) of total Bid Price per week.

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For other deliveries, percentage of Price Adjustment for each delayed week: A rate of 0.5% (point five percent) of the price of the delayed portion per week.

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For the Unit draft Tubes and Spiral Cases: Any Bid offers delivery schedule for these equipment sixteen (16) weeks longer than required, the Bid will be rejected; and for other portions, Any Bid having schedule of delivery eight (8) weeks longer than required will be rejected.

(4) Price Adjustment for guaranteed values of Turbine, Generator and Power Transformers -

The highest turbine guaranteed weighted average efficiency of the Bid among all Bids will be chosen as the Base for price adjustment. Other Bid will be subject to price adjustment depending on difference between its guaranteed weighted average efficiency and the Base. A rate of 0.1% (point one percent) of the turbine guaranteed weighted average efficiency will be valued at two hundred fifty thousand U.S Dollar (USD 250,000).

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The highest generator guaranteed weighted average efficiency of the Bid among all Bids

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Electromechanical Equipment Lot No27 - Bidding Documents

BUON KUOP Hydropower Project

will be chosen as the Base for price adjustment. Other Bid will be subject to price adjustment depending on difference between its guaranteed weighted average efficiency and the Base. A rate of 0.1% (point one percent) of the generator guaranteed weighted average efficiency will be valued at two hundred fifty thousand U.S Dollar (USD 250,000). -

The lowest power transformer Losses of the Bid among all Bids will be chosen as the Base for price adjustment. Other Bid will be subject to price adjustment depending on difference between its Losses and the Base. A rate of one (1) kW of Load loss will be valued at one thousand and five hundred U.S Dollar (USD 1,500) and One (1) kW of No-load loss will be valued at five thousand U.S Dollar (USD 5,000)

(5) Price Adjustment for payment schedule The Bidder will quote price based on the payment schedule specified in the bidding documents. Bids shall be evaluated based on this background. The Bid with proposed deviation payment schedule will be adjusted based on present value of cash-flow calculated from proposed conditions. Step 5 - Evaluated Bid Price and Selection of Lowest-Evaluated Responsive Bid (1) Evaluated Bid Price Criteria for evaluated bid price: To compare the Bids, bid evaluated price shall consist of: -

Bid price (after corrected of arithmetical errors); minus

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Unconditional discount; plus/minus

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Adjustment for scope of supply; plus/minus

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Adjustment for minor technical deviations; plus

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Adjustment for deviations in the delivery schedule offered in the bid from that specified in the bidding documents; plus

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Price Adjustment for guarantee values of Turbine, Generator and Power Transformers; plus/minus

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Adjustment for deviations in payment schedule from that specified in the bidding documents.

(2) Selection of Lowest-Evaluated Responsive Bid Comparing the Evaluated Bid Prices of all bids, the bid with lowest price in terms of Evaluated Price is selected for Contract award Step 6 - Detailed Evaluation of Alternative Bids After all the above-mentioned processing has been completed, Alternative Bids submitted by the Lowest Evaluated Price Bidder, in accordance with Clause 13 of Instructions to Bidders, are then evaluated from their technical and financial aspects. If any Alternative Bids of the Lowest Evaluated Price Bidder are acceptable in all technical respects and advantageous to the Employer in terms of cost, the Alternatives may be adopted for contracting. Step-7. Estimation of Contract Price of the successful Bidder. As a result of step 3 and 4, the Employer shall estimate the contract price of the successful bidder. In addition, items to be clarified during contract negotiation with successful bidder shall be prepared.

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