Warsaw March 9, 2011 PRE-QUALIFICATION ANNOUNCEMENT The contracting authority 00-526 Warsaw, ul. Krucza 24/26, Poland Website: www.elektrowniapolnoc.pl Contact person: Mr. Marek Obuchowicz E-mail: info@elektrowniapolnoc.pl Phone: +48 (22) 522 35 24 Commencement of the procurement procedure This Pre-qualification Announcement ( Announcement ) commences the procurement proceeding in the scope described below ( Proceeding ). The date of commencement of the Proceeding is the day of publishing of the Announcement on website, i.e. March 9, 2011. In the first stage of the Proceeding, the contractors shall submit applications for participation in the procurement procedure. shall verify such applications, and approve all contractors meeting the participation criteria described in the Announcement to take part in the Proceeding, and shall provide such contractors with the Preliminary Specification of Essential Terms of the Contract ( PSETC ), including in particular the description of requirements in the scope of the order subject and the draft contract for order execution. Planned date for notifying the contractors on the results of pre-qualification procedure and provision of the PSETC is April 6, 2011. shall publish the list of entities qualified for participation in the Proceeding on its website. Information on further stages and schedule of the Proceeding shall be determined by in the PSETC. Order subject The subject of the order is the EPC LSTK (lump sum turn-key engineering, procurement, construction) formula-based execution (design, supply, construction, commissioning, warranty
service). The intention of the contracting authority as of the day of the Announcement is the realization of two new power units for supercritical parameters, fuelled with coal dust, together with auxiliary systems, of the following specification ( Units ): unit s gross installed capacity of 780-1050 MW e ; unit s minimum net achievable efficiency of 45%; live steam temperature in range of 595 C-610 C upstream of the turbine; hot reheat steam temperature in range of 605 C-620 C upstream of the turbine; SO 2 emissions: maximum 100 mg/nm³; NOx emissions: maximum 100 mg/nm³; dust emissions after FGD: maximum 10 mg/nm³; The execution of the order subject shall consist of the execution of elements, in particular those listed below, according to EPC LSTK formula: external coal supply system, with new storage areas, mechanical devices for coal mechanical unloading, transport, treatment and storage, tunnels, overpasses and necessary auxiliary installations; boiler water treatment plant, along with auxiliary installations; once through type boilers fired by pulverized bituminous coal complete with systems for coal supply, pulverized coal handling, slag and bottom ash removal, air supply, flue gas, SCR NOx process, flue gas heat recovery, water/steam systems and other systems; (electrostatic) flue gas precipitator equipment; wet calcium method-based flue gas desulphurization installation, with common limestone powder unloading and storage system, sorbing agent slurry preparation system, process water system, gypsum dewatering system with functionality for gypsum storage in the encased storage fitted with automatic pile forming and gypsum storage capacity unloading system for rail and land transport vehicles, as well as an independent installation for dumping purified saline sewage, and other auxiliary installations; turbine sets, including steam turbine and generator, with auxiliary installations, C&I and other systems; preliminary water treatment system with auxiliary installations; complete cooling water system with cooling towers used also to carry the purified flue gas away to atmosphere;
complete new systems for slag transport, storage and shipping; pneumatic system for unit fly ash removal to ash storage tanks; fly ash loading station, fitted with pneumatic transport, retention tanks with auxiliary installations, and ash loading installation for rail cars and, in emergency mode, land vehicles, and other necessary installations and systems; electric system of power evacuation to PSE transmission grid; system of stand-by electric power supply; electrical and Control & Instrumentation systems; auxiliary installations and systems for Units, such as auxiliary (light oil) fuel system, auxiliary boilers system, ionite regeneration station, controls, water/sewage network, heating network, compressed process air network, I&C, other media networks, engineering telecommunications installation, and other systems; buildings with internal installations and facilities, including: main building (containing boilers, turbine sets and electrical equipment facility), workshops, storages, maintenance/service buildings, overpasses and auxiliary buildings; roads and railway tracks for transport; other completing elements necessary for operation of the Units. shall require the Units to be adapted for installation of a heating station on each of the Units, for district heating water with power of 150 MWt each. shall require the Units to be complete and fitted with all necessary basic and auxiliary systems and installations (compliant with BAT requirements), guaranteeing their functional operation. Order execution time The order execution time expected by shall be: - Planned 1 st unit not more than 56 months since the effective date of the contract for design and construction of the Units under EPC LSTK formula between and the selected contractor; - Planned 2 nd unit not more than 68 months since the effective date of the contract for design and construction of the Units under EPC LSTK formula between and the selected contractor.
Conditions of participation in the Proceeding Financial capability: A contractor must prove that, within the last three fiscal years, and if business is conducted for a shorter time, then for such a shorter business period, the average yearly income from operational business amounted to PLN 500,000,000.00 minimum. The average yearly income mentioned in the previous clause shall be calculated by dividing the total income from operational business from the last three fiscal years by three. If the contractor conducts business for less than three years, the average yearly income shall be calculated by dividing the total income by the number of years, for which the contractor has been conducting its business. To prove the above condition for participation in the Proceeding is complied with, the contractor shall attach its financial report or its part, i.e. profit and loss statement, to the application for participation in the Proceeding. If the accounting law requires the financial report to be audited by a chartered accountant, the contractor shall attach the resulting opinion on, respectively, the audited financial report or its part, i.e. the profit and loss statement, to the application for participation in the Proceeding. The contractors which are not required to submit the financial report shall prove the compliance with the financial condition for participation in the Proceeding by attaching other documents, which display the volume of recorded income. In case of contractors jointly applying for procurement order, at least one of the contractors shall prove the above financial condition is complied with. The documents specified above shall pertain to the contractor (or contractors) from the group of contractors jointly applying for participation in the Proceeding, who confirm the compliance with the financial capability condition. Values presented in the above mentioned documents in currency other than Polish zloty shall be converted to Polish zloty according to National Bank of Poland ( NBP ) mid-rate, as announced by the NBP on the last day of each fiscal year. If, on the day of submitting the application for participation in the Proceeding, the contractor does not have the above mentioned documents related to 2010 available, the contractor submits documents related to 2007, 2008 and 2009, unless its business activity time is shorter; in such case, the contractor presents documents related to years of its conduct of business. Technical capability The procurement procedure is open for contractors, which during the last 10 years before the date of commencement of this proceeding, and if their business activity time is shorter, then in such a shorter period, have duly executed at least one order, whose subject scope included at least: design, supply and assembly and commissioning supervision of: one unit of supercritical parameters, with minimum gross power of 450 MWe, with the boiler fuelled by pulverized coal; or
one once-through type boiler of supercritical parameters, fired by pulverized coal with auxiliary systems for the unit of minimum gross power of 450 MWe, and one turbine set of supercritical parameters, consisting of a steam turbine and a generator with auxiliary systems for the unit of minimum gross power of 450 MWe. To prove the compliance with the above condition for participation in the Proceeding, the contractor shall attach the list of orders performed in the last 10 years before the day of commencement of the Proceeding (and if the period of contractor's business activity is shorter, then in such a shorter period) to the application. The list shall include information enabling Elektrownia Północ Sp. z o.o. to evaluate whether the technical condition for participation in the Proceeding is complied with, including the following information on performed orders: contractor s name, the contracting authority, order execution venue, type and scope of performed works, work duration and date of commissioning, unit s gross power (electrical power). The contractors jointly applying for order procurement may prove that they jointly meet the above condition. The list of contractor s performed orders shall be accompanied by documents confirming the orders were duly executed by the contractor, i.e. in compliance with the good construction practice and duly completed. Acceptance protocols can constitute such documents in particular. While evaluating the compliance with the above technical condition for participation in the Proceeding, shall consider and assess only such works, in relation to which the contractor presents documents confirming the proper execution of the orders by the contractor. Application for order procurement by more than one contractor Contractors may jointly apply for order procurement. In case of joint application for order procurement by more than one contractor, one of the contractors shall be authorized to submit the application for participation in the Proceeding on behalf of and for the benefit of all contractors. Subcontracting can specify in the PSETC the parts of the order, which will not be available for subcontracting.
Tender bond shall require a tender bond of PLN 30,000,000.00 (say: thirty million zloty) from the contractors invited to submit the final bids. The requirements on form, time and method of paying and returning the tender bond, as well as method of tender bond settlement with the contractor selected for contract for the order, which is the subject of the Proceeding, shall be specified in the Final Specification of Essential Terms of the Contract ( FSETC ). Time, place and form of submitting applications for participation in the Proceeding Applications for participation in the Proceeding shall be submitted until 17:00 CET on March 31, 2011. The applications made after this time shall not be considered and shall be returned to the submitters without opening. Applications for participation in the Proceeding shall be submitted in writing in the seat of : 00-526 Warsaw, ul. Krucza 24/26, Poland, 1 st floor, Reception Desk. The application for participation in the Proceeding shall be accompanied with the excerpt from the register appropriate for the contractor, not older than 2 weeks (or in case of entities with seat outside of the territory of Poland equivalent document(s), containing at least the following data: (i) contractor s company, (ii) seat address, (iii) contractor s company duration, (iv) initial capital amount, (v) full names of the members of the Management Board, (vi) tax identification number). The documents in a foreign language shall be submitted together with certified translation into Polish. The documents attached as proofs of compliance with the conditions for participation in the Proceeding shall be submitted in the original or as copies marked confirmed copy and signed by the person authorized to represent the contractor in the Proceeding. The application for participation in the Proceeding shall be submitted in one copy in Polish or in English. The documents attached to the application for participation in the Proceeding must be developed in Polish or in English. The documents shall be submitted in the original or as copies confirmed by persons authorized to represent the contractor in the Proceeding. Communication between and the contractors allows the contractors to submit questions related to the contents of this Announcement. The questions to the contents of the Announcement must be asked in Polish. The responses to the contractors' questions shall be given by in Polish. shall respond to the contractors questions within 6 (say: six) business days, counting from the day after the day of receiving the question by Elektrownia Północ Sp. z o.o. The questions can be submitted electronically. Within 6 (say: six) business days after the day the question is received, : (i) shall respond to the contractor electronically, (ii) shall publish on its website the question (without disclosing the submitting contractor) and the response given.
Reservations Each time, when the Announcement mentions a contractor, it shall be respectively understood as contractors applying for order procurement. In case of discrepancies between the Polish version and English translation of the Announcement, the Polish version shall prevail. Contractors bear all the costs related to participation in the Proceeding, including in particular the costs of development of the application for participation in the Proceeding, the costs of preliminary bids, the costs of participation in negotiations, and the costs of development of final bids. The Proceeding is performed in writing, with reservation of contractors right to submit questions to the contents of the Announcement electronically. Therefore, the contractors and are bound by information contained in the Announcement, in the responses of to contractors questions and in the PSETC and the FSETC. reserves the right to modify the Announcement and the conditions of the Proceeding. Information on modification of the Announcement or the conditions of the Proceeding shall be published on the website (www.elektrowniapolnoc.pl), in the Aktualności section. reserves the right: (i) to cancel the Proceeding at any stage without giving reasons or (ii) to close the Proceeding without selecting the contractor, without giving reasons.