PART I INSTRUCTIONS TO PERSON TENDERING

PART I INSTRUCTIONS TO PERSON TENDERING 1. The objective of instruction to persons tendering, in so far it may affect the execution of the contract, shall be deemed to form part of the General conditions of contract. If the tenderer has any doubt as to the meaning and intent of any clauses or sections of the specification or drawings, or in the event of discrepancies or contradictions between clauses and sections, he shall seek the Engineer's clarification as soon as possible, whose interpretation shall be final. 2. This Tender is for Refurbishment of Sg Kejin Mini-Hydro Project. The scopes of work comprises of installation of complete new turbine and generating equipment, re-align of 11kV overhead lines, and construction of a new powerhouse at higher elevation. The Electromechanical Works include the design, manufacturing, supply, installation, testing and commissioning of 1 x 480kW generating set and all monitoring, control and ancillary equipment as set out in the Specification. The Overhead works involve dismantling of existing 11kV O/H lines, detail survey and profiling of the new line route, supply, erection, testing and commissioning of single circuit 11kV belian pole overhead lines including the fiber optic works. The Civil and Building Works to be executed and completed under this Tender comprise of the following: i. Construction and completion of the new powerhouse building. ii. Repair and re-instatement the gravelled access road to the powerhouse. iii. Installation of debris diversion boom at storage weir. iv. Clearing of debris and silts at the storage pond and repair the leakage at storage weir cut-off wall. v. Construction of one new gravelled footpath access to 11kV distribution line. vi. Realignment the diversion of penstock line (to be quoted as optional cost of construction) 3. Tenders are only invited from firms who are prepared to submit complete and comprehensive Tenders for the whole of the Works. All goods and ancillary services to be supplied under this Contract shall exclude those from Israel as under the Malaysia Customs Act 1967 and Customs (Prohibition of Imports) Order 1988, the importation of any goods from Israel or any territory administered by them is absolutely prohibited. To be eligible for award of contract, Tenderers shall provide evidence satisfactory to the Employer of their eligibility under this clause, and of their capability and adequacy of resources to carry out the Contract effectively. To this end, all Tenders submitted shall include the following information: a) Copies of original documents defining the constitution or legal status, place of registration and principal place of business of the company or firm or Instructions to Person Tendering Page 1

partnership or, if a joint venture, of each party thereto constituting the Tenderer; b) Details of the experience and past performance of the Tenderer (or of each party to a joint venture) on works of a similar nature or power station within the past five years, and details of current work in hand and other contractual commitments; c) The qualifications and experience of key personnel proposed for administration and execution of the Contract, both on and off site; d) Proposals for subcontracting elements of the Work amounting to more than 10% of the Tender Sum for each element; e) Reports on the financial standing of the Tenderer (or of each party to a joint venture) such as profit and loss statements, balance sheets and auditor's reports for the past five years, an estimated financial projection for the next two years, and an authority from the Tenderer (or authorised representative of a joint venture) to seek references from the Tenderer's bankers; and f) Information regarding any current litigation in which the Tenderer is involved. For the purposes of this particular Contract, Tenderers shall meet the following qualifying criteria as a minimum: a) The Tenderer must be a registered Contractor with the following:- i) UPK Class B or above, Works Head V, Sub-heads 1(c) or above ii) CIDB Grade G6 or above, Category ME, M09 And for Overhead Works, Tenderer or their Sub-contractor must be registered Contractor with following:- i) UPK Works Head VIIB, Sub-head 2(c) ii) CIDB Grade G3 or above, Category ME, E05 And for Civil and Building Works, Tenderer or their Sub-contractor must be registered Contractor with following:- i) UPK Works Head I, Sub-head 1 ii) UPK Works Head II, Sub-head 1(c) and 2(a) iii) CIDB Grade G4 or above, Category B, B04 iv) CIDB Grade G4 or above, Category CE, CE21 b) Tenderers must pay levy in according to Part VIII of the Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994. c) Tenderers must also prove that they have adequate administrative, technical and site staff to complete the Work in accordance with the specification and by the required dates. Tenders submitted by a joint venture of two or more firms as partners, shall comply with the following requirements: Instructions to Person Tendering Page 2

a) The Tender, and in case of a successful Tender the Form of Agreement, shall be signed so as to be legally binding on all partners; b) One of the partners shall be nominated as being in charge; and this authorisation shall be evidenced by submitting a power of attorney signed by legally authorised signatories of all the partners; c) The partner in charge shall be authorised to incur liabilities and receive instructions for and on behalf of any and all partners of the joint venture and the entire execution of the Contract including payment shall be done exclusively with the partner in charge; d) All partners of the joint venture shall be liable jointly and severally for the execution of the Contract in accordance with the Contract terms, and a relevant statement to this effect shall be included in the authorisation mentioned under (2) above as well as in the Form of Tender and the Form of Agreement (in case of a successful Tender); and e) A copy of the agreement entered into by the joint venture partners shall be submitted with the Tender. For the purposes of these Instructions to Tenderers, where the context so admits or requires, the word "Tenderer" shall, if the Tender is submitted by two or more persons, be deemed to include the said persons and each of them, and their executors and administrators. All necessary arrangements shall be made by the Contractor for the provision of suitable skilled and unskilled labour, required for the execution, completion and maintenance of the Work and he shall use diligence in obtaining a sufficient supply of suitable labour. Contractors are to acquaint themselves with local employment requirements and shall comply in full with the latest rules and regulations, with the wage levels and conditions of employment to be no less favourable than those observed in similar work in Malaysia, in order to assess the relevant items and rates in the Tender. The Contractor shall to the extent practical and reasonable make maximum use of the products manufactured in Malaysia and construction and transportation equipment which are generally available in Malaysia. In this respect, Contractors are advised to familiarise with the Customs Regulations, regarding the importation of materials and equipment which are available in the country. Clearance from the Customs Department on these materials and equipment will not be easily available and the Employer will not pay import duty nor assist in their importation. 4. Tenderers must be attended the Tender briefing and visited the sites to collect all information required for preparing the Tender Document and entering into a contract. All tenderer must submit Certification of Site Visit as per attachment in Appendix B together with the tender document, failing which the tender shall be disqualified a) The Employer will assist Tenderers to visit Sg Kejin Mini Hydro Station by arranging to conduct them to the designated sites for the purpose of obtaining site information, but only upon the express condition that the Tenderer, his personnel or agents, will release and indemnify the Employer and his personnel and agents from and against all liability in respect thereof Instructions to Person Tendering Page 3

and will be responsible for personal injury (whether fatal or otherwise), loss of or damage to property and other loss, damage, costs and expenses however caused, which, but for the exercise of such permission would not have arisen. b) Tenderers can assess for themselves the extending of the Work involved in the preparation of their Tenders. No additional information will be made available and neither advice nor opinions will be given by the Employer s personnel during the above visits except for explanation of the items referred to in the Tender Documents. The Employer will not accept any responsibilities and liabilities in connection with all matters, whether technical or otherwise, related to the visit. c) All costs and other expenses in connection with the site visit will be at the Tenderer s own account; the Employer will not provide any form of transport, accommodation or insurance and will not assume any responsibility for loss or damage in the Tenderer s interests. d) Tenderers wishing to avail themselves of this facility should inform the Employer and the Employer will arrange suitable dates for the proposed briefing and site visit. e) The Employer does not guarantee the correctness of interpretations, deductions or conclusions which are given as Reference Information in the tender Documents or in any reports, maps, drawings, diagrams or in other reference information available to the Tenderer from the Employer or otherwise. The statements of fact contained in the Reference Information have been produced as found, communicated to, ascertained or otherwise learned by the Employer. The Employer does not represent that the available data show completely the existing conditions. 5. The Tender must be made in the accompanying Forms of Tender with all the blanks therein and all the Schedule, duly filled up in ink and signed. The Tender price must include all incidental and contingent expenses. Tenderers are particularly directed that the amount entered on the Form of Tender shall be for performing the Contract strictly in accordance with the bound document and shall be the sum total of all the amounts printed into and entered by the Tenderer upon the Schedule of Prices. If in the Schedules thereto there is a discrepancy between the unit price and the summated amount of Item, the unit price shall prevail. Should the Tenderer wish to make an alternative or cheaper offer deviate from the General Conditions of Contracts or Specification, he must first of all submit a complete main compliance offer in relation to the Conditions, Requirements and Specifications of the tender. And the total entered on the Form of Tender is to be such as represent complete compliance with the tender document. If any such alteration be made or if these instructions be not fully complied with, the Tender may be rejected. The Tenderer may draw attention to his alternative offer by attached all relevant documents, stating the specification and any advantages of the alternative. However, the Employer has the right to reject any alternative or modification. Instructions to Person Tendering Page 4

All principal items of plant included in Tenders shall have been type tested in accordance with the appropriate standard. 6. No alteration is to be made in the Form of Tender or in the Schedules thereto except in filling up the blanks as directed. If any such alteration be made or if these instructions be not fully complied with the Tender may be rejected. The Tenderer, however, is at liberty to add any further details that he may deem desirable and, in the event of his so doing, must print or type such details and annex the added matter to the Tender submitted by him. Such additional details shall not be binding upon the Employer unless they are subsequently incorporated in Contract. 7. In the event that the intended signatory does not manufacture one or more of the main sections of plant, then the Tender submitted should give satisfaction on the following points: (a) (b) (c) Evidence should be given to show that all the obligations imposed by the document on the intended signatory have been fully understood and accepted, where applicable, by the manufacturer(s) to whom it would be intended to sub-contract one or more of the main sections of the plant. See also the General Conditions of Contract. Evidence is to be supplied to show the nature of the erecting organisation and its relation to the signatory. Evidence is also to be supplied to show the competence of the erecting organisation to undertake installation of the type of construction specified together with details of specialised staff which is to be provided. 8. If the Tenderer has any doubt as to the meaning of any portion of the General Conditions or of the Agreement or of the Specification or Drawings, he shall, when submitting his Tender, set out in his covering letter the interpretation on which he relies. 9. The Employer does not bind himself to accept the lowest of any Tender, nor to assign any reason for the rejection of any Tender, nor to purchase the whole of the plant and materials specified. 10. The Employer will not be responsible for, nor pay for, any expense or loss which may be incurred by a Tenderer in the preparation of his Tender. 11. The Tenderer is required to submit one (1) copy of the tender document. These are to be submitted in a sealed cover, which should be clearly marked "CONFIDENTIAL" and TENDER FOR SUPPLY, DELIVER, ERECTION, TESTING AND COMMISIONING OF ELECTROMECHANICAL EQUIPMENT, 11kV OVERHEAD LINES AND CIVIL WORKS FOR REFURBISHMENT OF SG KEJIN MINI HYDRO but shall bear no writing on the outside of the envelope which enable the Tenderer to be identified. The sealed envelope shall be addressed or hand delivered to: Instructions to Person Tendering Page 5

Officer-In-Charge Tender Box, 8 nd Floor Procurement & Contracts Division Menara Sarawak Energy, No.1 The Isthmus, 93050 Kuching On or before 3.00pm (1500 Hours) on 17 July 2013. No tender received after the closing time at the Head Office of the Sarawak Energy will be considered. 12. The attention of Tenderers is drawn to the action of Customs Officers in the discharge of their duties, whereby air parcels are frequently opened. In their own interests and in order to preserve the confidential nature of tender prices, Tenderers are urged to pay attention to the following: (a) (b) To despatch the completed tender documents and any covering letter only by Air mail which should be enclosed and labelled in the manner laid down in paragraph 9 of these Instructions to Persons Tendering. Technical literature and the like may reasonably be sent by air parcel or air freight but since this would then be separated from the actual tender, each parcel should contain specific evidence and identify the tender to which the contents refer. 13. All correspondence in connection with a Tender and all matters accompanying a Tender which are relevant to its examination shall be in the English language and expressed in SI units. 14. Where Tenderers are in a position to offer a price reduction against a shorter validity period this reduction must be entered in the spaces provided on the schedules of price variations. 15. For local tenders with estimated tender sum above RM 2,000,000.00, the amount of Bid Bond/ Earnest Money required to accompany the tender, shall be 2% of the tender sum subject to a maximum of RM 100,000.00 (Ringgit Malaysia One Hundred Thousand). For all international tenders, the amount of Bid Bond shall be 5% of the tender sum subject to a maximum of RM 1,000,000.00 (Ringgit Malaysia One million). Bid bond shall be furnished in the following form:- a) Banker's Guarantee; or b) Banker's Draft With regard to (a) and (b), they should be issued by the Bank established in Malaysia. Banker's Guarantee should be submitted in the attached standard format (PUR/4). Bid bond will be returned to the unsuccessful tenderers at the end of the tender validity period and to the successful tenderer in exchange for the Performance Bond specified in the General Conditions of Contract. Instructions to Person Tendering Page 6

Any tender which is received without such Bid bond or with a Bid bond that does not comply with this clause will be deemed to be informal and will be rejected. The earnest money lodged by the tender in accordance with this clause may be forfeited in the event of: a. The tender withdrawing his tender during the validity period of the tender or b. The tenderer, being successful but failing to: i. Sign the agreement ii. Lodge the Performance Bond in accordance with the provisions of Clauses 7.1 of the General Conditions. 16. The Tenderer shall enter in his Tender the name or names of the Sureties, Insurance Company or Bank proposed for the performance of the Contract. 17. Tenders received prior to the time of opening will be securely kept, unopened. Tenders received after will be rejected. The Employer bears no responsibility premature opening of Tenders not properly addressed or identified. 18. The Tenderer is to submit with his Tender in order of the relevant clauses, a statement of any departures from the Specification. It will not be sufficient to refer to a description of the plant offered in the absence of such a statement and such tenders may be rejected. 19. Tenders shall include sufficient information and drawings to describe what is offered and to enable a qualitative assessment to be made. The Tenderer's proposed site organisation shall be described. 20. Tenders shall include all the plant and services specified for the section or sections offered. 21. The Tenderer shall include with his Tender a Schedule of the standards or codes used in the works for. Copies of such standards or codes shall be made available, if requested by the Employer, for a loan period of 6 months from the date of Tender submission. In addition, the Contractor shall have available in his place of business (or in his supplier's works) and on site, the relevant copies of standards or codes used, for the use of the Engineer. 22. Tenderers shall include with their tenders a list of spare parts recommended in stock to cover the reasonable maintenance requirements for all the plant for FIVE YEARS operation and such emergency spares that should be held. They shall also complete Equipments Spares of the Schedule of Price giving the unit prices of these and other listed items. 23. Within one month from the time of receipt of notice of award, the successful tenderer will be required to assign an authorised representative to execute the Contract with the Employer. 24. The tender prices quoted shall include the design, supply, insurance, transports, testing, import tax, sales tax, erection and commissioning of the works specified. All cost should be stated firmed in Malaysian Ringgit as payment will only be made in Malaysian Ringgit. Instructions to Person Tendering Page 7

25. Tenderers can only submit one offer clearly filled in the Part XIII - Summary of Price. Alternative offer will not be considered. 26. Any omission and deviation that are not clearly stated and offers which are not in compliance to the specification may result in the rejection of the tender. 27. The Tenderer must commence and complete the whole work within the maximum period of 13 Months from the commencement date. Tenderer must pay particular attention to the works program proposed in the Appendix A of the Tender. The Contractor shall schedule his works to strictly conform to this works program. The Tenderer shall also submit his works program of his proposed scheme for the execution of the works with description where necessary, drawings of the methods, plant and temporary works to be used with addition of such items as ordering and delivering of critical materials. The program will be based on the outline program accompanying this Tender. It is understood that the acceptance of the Tender may be contingent to modification being done to this works program submitted. 28. Tenderers requiring clarification of the tender documents should contact the Employer Representative as below: Renewable Energy Division, Research & Development Department 7 th Floor, Menara Sarawak Energy No.1 The Isthmus 93050 Kuching Sarawak Attention: Senior Manager (Renewable Energy, R&D Department) Telefax No: 082-342493 e-mail: gohcc@sarawakenergy.com.my Instructions to Person Tendering Page 8