KGN-HYD TENDER FOR GITARU-QUESTIONS No. 1 TENDER/CONTRACT ARTICLE QUESTIONS ANSWER

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KGN-HYD-015-2016 TENDER FOR GITARU-QUESTIONS No. 1 TENDER/CONTRACT ARTICLE QUESTIONS ANSWER Section E: Technical Specifications The transformer shall be assembled, Oil filled, tested and commissioned. The manufacturer shall supervise the assembly, oil filling, transformer testing and commissioning at site. Labour shall be provided by KenGen. Clarification No. 2 KenGen answers i and ii: i. The manufacturer shall supervise the assembly, oil filling, transformer testing and commissioning at site. KenGen will provide skilled labour (complete with tools) as per clause 26. ii. KenGen will supply equipment required to carry out the site works including Vacuum, oil filtration plant, fork lift and crane. 1. Please confirm that KenGen skilled labour and equipment specified, will be provided to Bidder at no costs. 2. Could you please provide us with the number of the labour and their qualifications? 1 KenGen will provide skilled labour while the Manufacturer will provide the site works supervision work as per the tender. 2 KenGen will provide 2 Engineers, 2 Technician and 5 Craftsman/Artisans (This arrangement is not fixed, it may be adjusted as appropriate) 3 KenGen will provide the assembly tools including lifting gear and test equipment (Crane, Forklift, Oil filtration machine, vacuum pump, Tan D, CT Analyser, Ratio test, Megger, SFRA, Oil Moisture and BDV, avometers etc ) for the necessary oil filling, assembly, testing and commissioning. The manufacturer will guide/supervise the site works. Any special equipment for assembly purpose shall be provided by the supplier. This will be detailed in the LC including all requirements which will include the Factory Acceptance Test Minutes authorizing them to ship the Transformer. 1 of 6

Section D Special conditions of Contract 12. Payment Terms & Conditions The credit period shall be:- 12.1 (b) for overseas suppliers, payments shall be effected upon presentation of a complete set of shipping documents to the advising bank as will be stipulated in the letter of Credit (LC) 3. Please clarify in what period the payments will be effected to the overseas suppliers? At sight, upon presentation of the shipping documents through LC? There will be TWO milestone payments as follows: On sight, upon importation of the transformer and the spares (upon presentation of shipping documents/) and Upon installation & commissioning of the transformer and the supervision (invoice and completion certificate to be dully presented) Section E: Technical Specifications 31 Price Schedule Clarification No. 1 KenGen answer 2.i: NB. 1. The Delivery point is Port of Mombasa (CFR) 4. Please confirm that prices given in Price Schedule are supposed to be given without VAT in Kenya? Since the prices must be quoted on FOB and CFR Mombasa basis and such Incoterms are not including local VAT There shall be withholding taxes ONLY on service components, i.e., installation, commissioning & supervision. Kindly refer to your country s Tax authorities concerning the exact rate, considering that the rates differs from country to country. ALL other taxes shall be borne by KENGEN during clearance & forwarding, i.e. VAT,duties,RDL,etc. Section C General conditions of Contract 11. Insurance 11.1 The Goods supplied under the Contract shall be fully insured against loss or damage incidental to manufacture or acquisition, transportation, storage, and delivery in the manner specified in the Special conditions of contract 5. Please note that we are offering on CFR Mombasa basis, which excludes transport insurance. Therefore, KenGen is responsible for insurance from manufacturer s factory till delivery at HPS Gitaru Site. KenGen will insure the goods, and will handle all related local costs after their delivery to Mombasa port, EXCEPT for the Supervision of site works which is shall be done by the supplier. KGN-HYD-15-2016 TENDER FOR GITARU QUESTIONS No. 2 TENDER/CONTRACT ARTICLE QUESTION ANSWER 2 of 6

1. There is no reference in Tender requirements for the training at factory or at site. Please confirm that no training is requested or specify if otherwise. There will be NO training as a service cost component for the supplier, either at factory or at site. Section B Instruction to Tenderers 1.2 Tenderers shall provide the qualification information statement that the tenderer (including all members of a joint venture and subcontractors) is not associated, or have not been associated in the past, directly or indirectly, with a firm or any of its affiliates which have been engaged by the Procuring entity to provide consulting services for the preparation of the design, specifications, and other documents to be used for the procurement of Spare parts for goods under this Invitation for tender. Section B Instruction to Tenderers 12. Tenderers Eligibility and Qualifications. 12.1 Pursuant to paragraph 1 of section III, the tenderer shall furnish, as part of its tender, documents establishing the tenderers eligibility to tender and its qualifications to perform the contract if its tender is accepted. 2. Please clarify if additional statement must be enclosed with the offers or the data given in Mandatory Confidential Business Questionnaire is sufficient. 3. Could you please explain which exact paragraph is that? We can't find it in tender document. Sections given in the Tender are marked with letters, not numbers. Enclose such additional statement in the confidential business questionnaire. This refers to Section C, paragraphs 1-3. 3 of 6

Section B Instruction to Tenderers 23.7 The Procuring entity s evaluation of a tender will take into account, in addition to the tender price and the price of incidental services, the following factors, in the manner and to the extent indicated in paragraph 23.5 and in the technical specifications: (a) delivery schedule offered in the tender; (b) deviations in payment schedule from that specified in the Special Conditions of Contract; (c) the cost of components, mandatory spare parts, and service; (d) the availability in Kenya of spare parts and after- sales services for the equipment offered in the tender; Section B Instruction to Tenderers 23.8 Pursuant to paragraph 23.4 the following evaluation methods will be applied: (c) Spare parts and after sales service facilities. Tenderers must offer items with service and spares parts back-up. Documentary evidence and locations of such back- up must be given. Where a tenderer offers items without such back-up in the country, he must give documentary evidence and assurance that he will establish adequate back-up for items supplied. 4. Could you please explain point (c) above? First, it is stated in addition to the tender price and the price of incidental services, and in point (c) is repeated the cost of components, mandatory spare parts, and service. Are these components, mandatory spare parts and services the same ones from Price schedule or this is some addition? 5. Please elaborate what kind of Documentary evidence must Applicant provide (if not from Kenya) under this point 23.8. (c)? The tender comprises of the following (CFR Mombasa Port) 1. The Transformer 2. Factory Acceptance Test 3. Site work supervision 4. Spare parts (they are the same ones in the price schedule) Supervision services shall be offered on site. The evidence should be from the entity in the country or outside the country (Kenya) confirming that they have BINDING and efficient (time bound) arrangement with the supplier to avail services and spare parts backups for the SPECIFIC items to be supplied under this tender. Timelines to avail these services and spare parts should be clearly stated. This should be in writing, in the entity s letter head, addressed to KENGEN for items SPECIFICALLY under this tender, stamped and signed. KENGEN will do due diligence on this aspect. 4 of 6

The term delivery period which is given in Tender and specified as period of maximum of 8 months (Price Schedule). 6. Please clarify if this delivery period (of 8 months) means delivery of equipment on CFR Mombasa basis only. Please clarify that services at site (assembly, installation, testing, commissioning) are not included in this delivery period? Delivery shall be 7 months, CFR, Mombasa Port from the date of signing of the contract. KenGen anticipate to take 30 days for clearance and transportation to site. In liaison/conjunction with the supplier, assembly works will start soon after to take approximately 10 days including weekends/ holidays Section D Special Conditions of Contract 10. Delivery Period The preferred delivery period shall be as stated in the technical specifications below and shall be from the date of signing the contract. Bidder shall indicate separately the delivery period of each item. Delivery period shall be one of the major criteria of the award 7. Please indicate for which exact items do you want separate delivery periods? Do you want separate delivery periods for spare parts specified in Price schedule or do you want them to be delivered in one single shipment with the main equipment (transformer)? The transformer and the associated spares shall be delivered as one consignment. KGN-HYD-15-2016 TENDER FOR GITARU QUESTIONS No. 3 TENDER/CONTRACT ARTICLE QUESTION ANSWER 5 of 6

Section E Schedule of Requirements Clause 1., page 23, in table it is stipulated: 2. Witness of tests by two KenGen Engineers Clause 11. INSULATION LEVELS AND TESTS, page 30: 11.4 Two KenGen Engineers shall witness & carry out factory acceptance test... Clause 31 PRICE SCHEDULE, page 49 2. Witness of tests by two KenGen Engineers to carry out all listed spares (10 days) 1. We have understood that we must provide you with the costs of witnessing FAT under this item. However, Price Schedule is mentioning different services under this item. Can you please clarify if we are to use the wording from table in Schedule of Requirements in Price Schedule? So that it reads: Witness of factory acceptance tests by two KenGen Engineers(10 days) If not, what is meaning of carry out all listed spares? CLAUSE 31 PRICE SCHEDULE PAGE 49 Description Item 2- Replace with: replace the word spares with the word tests to read as follows: Witnessing of Factory Acceptance Tests (FAT) by two KenGen Engineers (10 days) 6 of 6