TENDER FOR COMPLETE REPAIR OF OLKARIA 1 UNIT 3 GENERATOR ROTOR AT GEOTHERMAL POWER PROJECT. KGN- GDD : CLARIFICATION REQUEST

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1 CLARIFICATION 1 KenGen wishes to make the following clarifications as raised by potential bidders through clarification 1 TENDER FOR COMPLETE REPAIR OF OLKARIA 1 UNIT 3 GENERATOR ROTOR AT GEOTHERMAL POWER PROJECT. KGN- GDD : CLARIFICATION REQUEST Sl. Reference Description Clarification sought KenGen reply No. Please confirm whether Bank Tender security form must 1 2 Tender Security Kshs. 5 Lacs Page No. 15 Page Sealing & marking of Tender 13. Tender security of value Ksh 500,000 or equivalent convertible currency shall be furnished in the form of Bank guarantee, approved insurance companies by the Authority, cash or L.C. Tender security must be valid for at least 30 days beyond tender validity. While the outer envelope shall bear no mark indicating the identity of the tenderer. Page 1 of 8 demand draft for USD 5,000 towards Tender Security is acceptable. If the tenderer's address is not mentioned in the outer envelope, the courier company will not accept the consignment for booking. Please clarify. be in the form as provided for in clause 13 of the appendix to instructions to tenderers. International bidders who choose to use bank guarantee but choose a bank with correspondence to local banks in kenya The provision in the procurement is that you don t identify yourself as a bidder in the outer envelope. This could acceptable just to facilitate your consignment

2 Sl. No. 3 Reference Description Clarification sought KenGen reply Page No Payment Sub- Clause 33.1 Terms of Payment In addition to the provisions under Clause 33, the Terms of Payment shall be as set out below:- a) 50% of Contract Price upon completion of repairs at the contractor s factory and acceptance by the employer. b) 40% of Contract Price upon successful installation and commissioning acceptable to the employer Please confirm if the bidder is allowed to quote their own payment terms. The terms of payment in the special conditions remain as indicated c) 5% of Contract Price on successful completion of the Defects Liability period and submission of all Documentation and as repaired O&M manuals and drawings (3- copies of each). 4 Delivery Schedule Page No. 26. d) 5% of Contract Price on expiry of Warranty period. The repair works and commissioning is expected to be done within 3 (three) months. Please confirm the delivery period of 3 months excludes both way shipping time and the time taken by KenGen to assemble and commission the generator. Delivery period starts from arrival at contractors premises to arrival back at Kenya port of origin.

3 Sl. No. 5 Reference Description Clarification sought KenGen reply Page No. 31 Notes on scope 1. All the dismantling work at the successful bidders factory shall be witnessed by two KenGen Engineers. 4. KenGen Engineers shall be visiting the contractor s premises at various stages to inspect progress of work/witness tests. 5. KenGen Engineers shall witness all the final factory acceptance tests including dynamic balancing. Please confirm KenGen will bear all the costs of deputing KenGen staff to our works. (Please note, as per our company policy, KenGen Engineers are welcome to see the progress & testing of rotor and not the repair process.) KenGen will bear costs of all visits to contractors premises. KenGen Engineers visits are not negotiable. It will be at KenGen s discretion to send it s Engineers to the contractors premises. 6. The contractor will be expected to accept attachment of at least two KenGen technical personnel at any particular time during the execution of the project. 6 Page 31 Scope Scope Cost of packaging at KenGen site and contractor s workshop using standard materials and marking to shipping standards to assist in handling, protect the equipment from damage and environmental hazards. Packing for one way from contractor's workshop will be done by the contractor at their cost & the packaging from KenGen site to be done by KenGen at its cost. Please confirm. Both packaging at KenGen site and contractor s workshop shall be by the contractor.

4 Page 34 Price schedule 8 Cost of packaging at KenGen site and contractor s workshop using standard materials and marking to shipping Sl. No. 7 8 Reference Description Clarification sought KenGen reply Page 34 Price schedule 9 Site visit date Cost of Transport from airport to Contractor s workshop and from Contractor s workshop to airport. Please confirm KenGen will pay for the cost of shipping (by sea or by air) & insurance both ways from and to Kenya. (We also recommend given the size and volume of the rotor, that the rotor be sent in a open-top container by sea since locating cargo planes in a timely manner to handle such sizes is very difficult.) Request to provide another site visit date allow other potential bidders to participate Bidders shall quote for both modes of freight. Insurance shall be by KenGen. This was addressed by addendum 1 9 Tender extension If the tender closing can be extended. This was addressed by addendum 3.1) Page 22, item 5.3, where is Section B, in the documents? ) Page 22, item 6.6, is this applicable to the proposed contract works? 3.3) Page 22, item 6.7. is this applicable to the proposed

5 contract works? 3.4) Page 23-24, Where is subsection (b) and what are the details? 3.5) In the Tender Documents and Conditions of Contract can the word facsimile be replaced by ? Both facsimile and are acceptable 3.8) Page 26, Delivery period, we respectfully bring to Kengen s attention that sourcing and supply of Generator Rotor Coil Retaining Rings can take between 12 to 18 months. As per tender document. 3.9) Page 31, item 2, please confirm, in writing, that any additional scope will be for Kengens cost? 3.11) Page 31, Awarded Contractor, bullet point one, contradicts page 26. Add New Subclause please resolve this ambiguity. Any additional scope shall be discussed and financial implications agreed with KenGen before commencement. 3.13) Technical Specifications, will Kengen require an over speed test at 3300 RPM? Dynamic balancing shall be performed both at nominal speed (3000RPM) and at 3300RPM

6 Is the Unit currently in operation, if not, when was it taken off load and for what reason? Unit is already dismantled. 11 Who will be dismantling the Generator? With reference to the Tender Documents Page 28. Rating is 18.75MVA -Name plate details: Output 18,75 KVA seems very small. Should it be MVA (also, acc. to Page 32: expected unit output 15 MW)? 12 Page 29. -The tender is about repair of generator rotor, however the scope includes overhaul of stator too. About the full scope it should mean that the complete generator shall be transported to the contractor s factory and disassembled there, than after the necessary overhauls Helmke shall make a run-test in its electric test room? Page 32: Stator winding overhaul shall be done insitu and includes: Loop flux test, repair any core damage, cleaning drying,varnishing/painting and testing as per tender document. Stator shall NOT be transported offsite. Transport and clearance is mentioned at JKIA airport we

7 assume, the generator is a big mass (expected MVA, about 30 tons) why KenGen is thinking about an airway transportation? Seaway should be better. Bidders shall quote for both air and sea freight Page no.15 Appendix Instructions to tenderers clause no. 2.3 Please confirm whether, the credentials of our sub-contractors having the electrical machines repair workshop and executed their similar jobs including testing and complete execution are acceptable, for qualifying our bid participation - Is there any advance qualification required for participants beyond what is written in the tender submission requirements? - Just to confirm our understanding that bidding using US dollars as bidding and payment currency is acceptable to KENGEN? As per tender document. As per tender document Bidding in US dollars or any convertible currency is acceptable.

8 Regarding Kengen engineer's visit to contractor's local facility. Schedule of such visit shall be discussed and mutually agreed at least one month before from the expected visit date, in order to prepare for VISA. In addition, any cost related to the visit, such as airfare (roundtrip), hotel accommodation charged, local transpiration fee(trains and taxies), meals shall all be paid by Kengen engineer by themselves.(due Contractor shall provide a program of work with their bid for KenGen planning purpose. Contractor shall not restrict KenGen in visiting their premises and planned visits are not negotiable. All costs by visiting KenGen Engineers will be by KenGen. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED ACKNOWLEDGEMENT OF CLARIFICATION NO.1 We, the undersigned hereby certify that the addendum is an integral part of the document and the alterations set out in the Addendum have been incorporated in the tender proposal. Signed Tenderer...Date