GENCO HOLDING COMPANY LIMITED (GHCL) PROFORMA PC-II

GENCO HOLDING COMPANY LIMITED (GHCL) PROFORMA PC-II HIRING OF CONSULTANTS FOR EIAs, PC-1 & BIDDING DOCUMENTS FOR COAL FIRED POWER PLANT 2X660 MW (Gross) AT LAKHRA, AND FEASIBILITY OF 1x660 MW (Gross) AT LAKHRA GENCO HOLDING COMPANY LIMITED WAPDA HOUSE, LAHORE Feb 2014 i

Contents 1. Name of the Project... 3 2. Authorities responsible for:... 3 3. Background & Details of the Assignment... 3 Implementation period... 6 Item-wise Estimated Cost.... 6 Manpower Requirement... 7 Financial Plan (Sources of financing)... 8 TOR for Consultants (Annex-I)... 8 4. Expected outcome of the feasibility study and details of project likely to be submitted after the study.... 8 Annex-I (DRAFT TOR FOR CONSULTANTS)... 10 Status of BOD Approval... 13 Tentative Implementation Schedule (Annex-II)... 13 Page 2 of 13

1. Name of the Project Project Documents (FEASIBILITIES, EIAs, PC-1 & BIDDING DOCUMENTS FOR COAL FIRED POWER PLANT 2X660 MW (Gross) AT Lakhra 2. Authorities responsible for: Genco Holding Company Limited (GHCL) i) Sponsoring : As above ii) Execution : As above 3. Background & Details of the Assignment Background Pakistan faces energy shortage that decreases industrial productivity and adversely affects the social welfare of the people. To sustain economic growth and make it more inclusive, a reliable and cost effective supply of electricity is essential, as electricity is central to almost every aspect of the country s sustainable socioeconomic development. It supports commerce and business, maintains and attracts industrial activities for job creation, and enhances people s well-being. The fastest and cheapest way of getting more reasonably priced power into the system is maximizing the use of the existing power plants, as well as enhancing the power generation capability. Gencos currently are not operating their power plants due to expensive furnace oil, and shortage of gas. Therefore, Gencos prefere to consider all possible options, and under present circumstances coal cannot be ignored, due to extremely low cost as compared to fuel oil. In order to convert on coal, the existing boilers on conventional steam units in the system may have to be replaced. At the same time power generation capacity addition on coal is worthwhile to be considered & implemented actively. To implement the same, the other all areas also need to be addressed such as, technology will be selected on i) least cost, ii) maximum increase in output, iii) least implementation time and iv) environmental benefits criteria. To start with the program, currently following project is being considered for implementation as: o o o 2X660 MW (Gross Capacity) coal fired power plant at Lakhra (Preferably with Supercritical Technology). Some details are: JICA is already carrying out Feasibility for 1X660 MW coal fired power plant at Lakhra, whereas, the remaining documents (Bidding documents, PC-1 & EIA etc.) will required to be prepared as per the requirement. The project documents for 2 nd unit 1X660 MW with supercritical technology, envisaged to be developed by GENCOs are proposed to be prepared. With the understanding, that it will result in reduced load shedding, by maximum and economical operation of these plants, thereby reducing the need for the industrial sector to resort to costly self or captive power generation and other consumers from incurring cost of alternatives. This will provide the power needed to immediately help address the country s power shortage in a least-cost manner that will also add reliability and energy security by diversifying the fuel mix. Page 3 of 13

Objective of the Assignment The project will require the service of a multidisciplinary team of consultants. An international consulting firm (the Firm in Lead) experienced in preparation of project documents & design/implementation of power plants in coal area with national experts for local support are required to perform for not limited to, the following tasks: (i) Feasibility (For one 660 MW Unit having supercritical technology) (ii) Environmental Impact Assessment report; (For the total project) (iii) PC-1( For the overall project) (iv) Project specific Bidding documents to invite the prospective EPC Bidders (for the complete 2X660 MW project) Scope of Work The scope of work will be divided mainly into three parts. Part A will focus on feasibility of a level acceptable to the local & international donors, and to provide coverage to all areas not limited to as: Site Selection study (as applicable) Field investigations, soil, Geo-tech, surveys etc as per requirement. International & Local coal market information, best possible coal specifications options Finalize the fuel specifications with GHCL before initiating boiler design/related studies Coal logistics, estimated requirement, handling & storage facilities. Plant/ technical aspects. Ash handling, water requirements and waste disposal issues. Feasibility stage civil related design for structures and foundations Necessary process flow diagrams Electrical, instrumentation & controls, and mechanical aspects/ specifications. Man power requirement for plant O&M, and GHCL capacity building guidelines. Current power market & forecasts for future demand/ country planning Any issues related to interconnectivity with the system Project cost estimates, economic, Financial & sensitivity analysis etc. Review/ incorporate Interconnectivity studies as provided by the Planning Power NTDC through GHCL. Secondly part B, EIAs following the internationally accepted guidelines as well as national standards, The scope of EIA is not limited to as: Determining the project Area of Influence (AOI), Collection of primary & secondary data, Policy, Legal and Administrative Framework, Defining the Environmental Baseline, Ambient Air Quality, Climatic Data, Noise, Water Quality, Land Use, Terrestrial Ecology, Aquatic Ecology, Socioeconomic environment and Health Aspects, Visual Impact, Stakeholders Consultation, Resettlement and Compensation Plans, Mitigation Measures, Mitigation for Air pollution, Mitigation for Waste Water, Mitigation to control Noise, Solid Waste Management, Flora and fauna, Environmental Management Plan (EMP), Environmental Monitoring Plan etc. Page 4 of 13

And Part C, the tender documents briefly detailed for the individual units covering all necessary technical components and commercial conditions (as per the national and international best practices) enabling GHCL to invite the prospective EPC bidders through international competitive bidding and shortlist a preferred EPC bidders for further contract award. The tender documentation shall be not limited to as: A complete package includes a number of components - instructions to bidders, contractual, commercial and technical requirements. General Conditions of Contract; and Tender Forms/Schedules; Technical and Financial Qualification criteria for the tenderers, Tender Evaluation criteria, Broad scope of works, implementation schedule, General Technical Requirements for Design, Manufacture, Erection, Commissioning and Performance Testing, Performance Guarantee requirements, Liquidated damages for performance shortfall and delay in commissioning, Warranty and Defect Liability, Quality Assurance and Inspection requirements and Forms and Schedules to be filled in by the tenderer, Terminal Points and exclusions, Design Criteria, Technical Specification, Conceptual Drawings, Site Data, Fuel and water analysis. Technical Information / Data Sheets to be filled in by the bidders etc. In order to formalize the GOP approval PC-1s are required to be furnished side by side to the feasibilities. Qualification of the Firm The firm shall have provided consulting engineering services involving preparation of project documents, and implementation on at least three 600 MW coal-fired power plants, having supercritical technology coal fired boilers in the last 15 years. The firm/jv anticipated to have international consulting Firm in Lead with expertise in supercritical coal-fired boiler. Local consultancy firm can also be associated to meet the requirement of local staff through JV/ Association arrangement. Reporting requirements The Consultants will prepare and submit to GHCL for review the Feasibility, EIA, PC-I and the bidding documents, as follows: (i) The draft feasibility to be provided for GHCL review, and after review by GHCL the final feasibility to be delivered in hard & soft copies in the given time frame. (ii) EIA to be completed in parallel to feasibility, and should be completed within the contractual time frame while including public consultations. (iii) PC-1 to be furnished as per the Planning Commission updated guidelines, the cost estimates of these documents are envisaged to be matched with feasibility. (iv) The inception report shall be submitted to GHCL within the first month of the commencement of services. The inception report shall outline the proposed work program and any apparent barriers to prevent the successful completion of the assignment. (v) Monthly progress reports shall be submitted to GHCL to address the progress and related issue. A performance-based payment will be made to the Firm after receiving the monthly progress report. Page 5 of 13

(vi) (vii) The bidding documents drafts to be submitted, subsequently the final documents after GHCL review within the contractual time frame. And the final reports/documents will be submitted within 15 days of receipt of comments from GHCL. Client s Input and Counterpart Personnel - Professional and support counterpart personnel to be assigned by the Client to the Consultant s team: i) Administrative support personnel ii) Technical support personnel Client will provide the following inputs, project data and reports to facilitate preparation of the Proposals/documents: Project data, reports and documents available/relevant to the project Implementation period The Project documents are envisaged to be completed within Eight (08) months after the mobilization of consultants. Item-wise Estimated Cost. (Rs. in Millions) 1 USD= Rs. 106/- Description Local FEC Total International consultants 0.00 93.386 93.386 Local Counterpart of the International Consultants 34.556 0.00 34.556 GIS Survey / Imaging, geo-technical survey etc (Provisional Estimate) 20.00 0.00 20.00 International/Domestic Travel & Per-diem 4.24 11.607 15.847 GHCL counterpart cell (lump Sum) 6.00 0.00 6.00 Office accommodation, equipment, transport, reports, operational 7.239 1.621 8.860 costs etc. Sub-total 72.035 106.614 178.649 Contingencies @ 3% 2.161 3.198 5.359 Provision for Local Withholding Tax on Foreign Component 17.569 17.569 Total 74.196 127.381 201.577 Note; 1. This estimated budget is for the year 2014 and necessary provision of escalations/inflation may be subject to adjustment in case the activities go forward in year 2015. 2. The subsequent bidding process, and consultancy agreement, will dictate the actual cost on the assignment. Page 6 of 13

a) Date on which the estimates were prepared: Feb 2014 b) Basis of the cost estimates. The basis of cost estimates are the under process assignments in GENCOs/WAPDA/NTDC various consultancy projects. Manpower Requirement As coal power related resources are limited in Pakistan, therefore, envisaged international consultants requirement on the projects. The consultant is anticipated to work simultaneously on all assignments and will come up with the final project documents within the period of 08 months. Accordingly, the tentative manpower and the man months required are estimated as follows: Feasibilty Study, PC-1, EIAs Bidding Documents including Tender Level Design For 2X660 MW (Gross) Coal Based Power Project at Lakhra) Duration -08 Months Sr. No. Position International Staff Local Staff Person Month Man Month Person Month Man Month Key Staff 1 Team Leader 1 5 5 0 0 0 2 Specialist coal Boiler/ Turbine & Auxiliaries/ Dy. Team Leader 0 0 0 1 8 8 3 Specialist coal Boiler 1 3 3 0 0 0 4 Specialist Electrical & Controls 1 3 3 1 3 3 5 Specialist Procurement/Contracts 1 3 3 2 3 6 6 Specialist Civil Structures & Foundations 1 3 3 1 3 3 7 Environmentalist 1 3 3 2 3 6 8 sociologist 0 0 0 1 3 3 9 Specialist (Economics & Financial) 1 3 3 1 3 3 11 Coal Transport/Logistics & Ash handling specialist 1 2 2 1 2 2 12 Unallocated 3 1 3 1 6 6 Support Staff i power sector engineer 2 4 8 2 6 12 ii Resettlement specialist 0 0 0 1 3 3 iii Socioeconomist 0 0 0 1 3 3 iv Jr. Engineers/ Jr. Environmentalists 0 0 0 3 6 18 Total 36 76 Note: The consultant Firms will furnish Home/ Field inputs in their respective Technical & Financial Proposals with Home/Field Charge rates accordingly. GHCL counterpart staff for execution and implementation of the assignment is as follows: Page 7 of 13

Sr. No. Description BPS No. Man-month 1 Manager/PD 19 1 8 2 Deputy Manager 18 2 16 4 Other Tech & Admn Support 17 & below 3 24 Financial Plan (Sources of financing) Through GENCOs own resources/ PSDP/ Any donor agency which can take interest in financing this scheme. TOR for Consultants (Annex-I) TOR for the Consultants is placed at Annex-I. 4. Expected outcome of the feasibility study and details of project likely to be submitted after the study. The project documents to be considered as first step to invite donors on these projects. Assumed that not a single donor will fund for these projects there could be multiple/ or cofinancing arrangements by various local and international funding agencies. Feasibility studies and PC-1 will facilitate GOP for approvals and approach IFIs to fund on these mega projects. The EIAs are the usual requirement from funding institutions. Subsequently the bidding documents to be used to invite the prospective EPC bidders. Feasibility study/pc-1 will establish the technical and financial viability of these projects. i) Reports. The following reports/documents will broadly be submitted by the consultant; i) Inception Report ii) Monthly Progress Report iii) Draft Feasibility Reports iv) Final Feasibility Reports v) Proforma PC-I s vi) Environmental Impact assessment Reports vii) Bidding Documents Page 8 of 13

Certificate Certified that the PC-II for Project Documents (FEASIBILITIES, EIAs, PC-1 & BIDDING DOCUMENTS FOR COAL FIRED POWER PLANT 2X660 MW (Gross) AT Lakhra has been prepared on the basis of guidelines provided by the Planning Commission for preparation of PC-II. Prepared by: (Tariq Habib) Deputy Manager (D&D)Thermal Checked/ Reviewed by: Abdul Rahim Memon General Manager (D&D) Thermal Approved by: (Aftab Ahmed Nadeem) Chief Executive Officer (GHCL) Page 9 of 13

Annex-I (DRAFT TOR FOR CONSULTANTS) Background Pakistan faces energy shortage that decreases industrial productivity and adversely affects the social welfare of the people. To sustain economic growth and make it more inclusive, a reliable and cost effective supply of electricity is essential, as electricity is central to almost every aspect of the country s sustainable socioeconomic development. It supports commerce and business, maintains and attracts industrial activities for job creation, and enhances people s well-being. The fastest and cheapest way of getting more reasonably priced power into the system is maximizing the use of the existing power plants, as well as enhancing the power generation capability. Gencos currently are not operating their power plants due to expensive furnace oil, and shortage of gas. Therefore, Gencos prefere to consider all possible options, and under present circumstances coal cannot be ignored, due to extremely low cost as compared to fuel oil. In order to convert on coal, the existing boilers on conventional steam units in the system may have to be replaced. At the same time power generation capacity addition on coal is worthwhile to be considered & implemented actively. To implement the same, the other all areas also need to be addressed such as, technology will be selected on i) least cost, ii) maximum increase in output, iii) least implementation time and iv) environmental benefits criteria. To start with the program, currently following project is being considered for implementation as: o o o 2X660 MW (Gross Capacity) coal fired power plant at Lakhra (Preferably with Supercritical Technology). Some details are: JICA is already carrying out Feasibility for 1X660 MW coal fired power plant at Lakhra, whereas, the remaining documents (Bidding documents, PC-1 & EIA etc.) will required to be prepared as per the requirement. The project documents for 2 nd unit 1X660 MW with supercritical technology, envisaged to be developed by GENCOs are proposed to be prepared. With the understanding, that it will result in reduced load shedding, by maximum and economical operation of these plants, thereby reducing the need for the industrial sector to resort to costly self or captive power generation and other consumers from incurring cost of alternatives. This will provide the power needed to immediately help address the country s power shortage in a least-cost manner that will also add reliability and energy security by diversifying the fuel mix. Objective of the Assignment The project will require the service of a multidisciplinary team of consultants. An international consulting firm (the Firm in Lead) experienced in preparation of project documents & design/implementation of power plants in coal area with national experts for local support are required to perform for not limited to, the following tasks: (v) Feasibility (For one 660 MW Unit having supercritical technology) (vi) Environmental Impact Assessment report; (For the total project) (vii) PC-1( For the overall project) (viii) Project specific Bidding documents to invite the prospective EPC Bidders (for the complete 2X660 MW project) Page 10 of 13

Scope of Work The scope of work will be divided mainly into three parts. Part A will focus on feasibility of a level acceptable to the local & international donors, and to provide coverage to all areas not limited to as: Site Selection study (as applicable) Field investigations, soil, Geo-tech, surveys etc as per requirement. International & Local coal market information, best possible coal specifications options Finalize the fuel specifications with GHCL before initiating boiler design/related studies Coal logistics, estimated requirement, handling & storage facilities. Plant/ technical aspects. Ash handling, water requirements and waste disposal issues. Feasibility stage civil related design for structures and foundations Necessary process flow diagrams Electrical, instrumentation & controls, and mechanical aspects/ specifications. Man power requirement for plant O&M, and GHCL capacity building guidelines. Current power market & forecasts for future demand/ country planning Any issues related to interconnectivity with the system Project cost estimates, economic, Financial & sensitivity analysis etc. Review/ incorporate Interconnectivity studies as provided by the Planning Power NTDC through GHCL. Secondly part B, EIAs following the internationally accepted guidelines as well as national standards, The scope of EIA is not limited to as: Determining the project Area of Influence (AOI), Collection of primary & secondary data, Policy, Legal and Administrative Framework, Defining the Environmental Baseline, Ambient Air Quality, Climatic Data, Noise, Water Quality, Land Use, Terrestrial Ecology, Aquatic Ecology, Socioeconomic environment and Health Aspects, Visual Impact, Stakeholders Consultation, Resettlement and Compensation Plans, Mitigation Measures, Mitigation for Air pollution, Mitigation for Waste Water, Mitigation to control Noise, Solid Waste Management, Flora and fauna, Environmental Management Plan (EMP), Environmental Monitoring Plan etc. And Part C, the tender documents briefly detailed for the individual units covering all necessary technical components and commercial conditions (as per the national and international best practices) enabling GHCL to invite the prospective EPC bidders through international competitive bidding and shortlist a preferred EPC bidders for further contract award. The tender documentation shall be not limited to as: A complete package includes a number of components - instructions to bidders, contractual, commercial and technical requirements. General Conditions of Contract; and Tender Forms/Schedules; Technical and Financial Qualification criteria for the tenderers, Tender Evaluation criteria, Broad scope of works, implementation schedule, General Technical Requirements for Design, Manufacture, Erection, Commissioning and Performance Testing, Performance Guarantee requirements, Liquidated damages for performance shortfall and delay in commissioning, Warranty and Defect Liability, Quality Assurance and Inspection requirements and Forms and Schedules to be filled in by the tenderer, Terminal Points and Page 11 of 13

exclusions, Design Criteria, Technical Specification, Conceptual Drawings, Site Data, Fuel and water analysis. Technical Information / Data Sheets to be filled in by the bidders etc. In order to formalize the GOP approval PC-1s are required to be furnished side by side to the feasibilities. Qualification of the Firm The firm shall have provided consulting engineering services involving preparation of project documents, and implementation on at least three 600 MW coal-fired power plants, having supercritical technology coal fired boilers in the last 15 years. The firm/jv anticipated to have international consulting Firm in Lead with expertise in supercritical coal-fired boiler. Local consultancy firm can also be associated to meet the requirement of local staff through JV/ Association arrangement. Reporting requirements The Consultants will prepare and submit to GHCL for review the Feasibility, EIA, PC-I and the bidding documents, as follows: 1. The draft feasibility to be provided for GHCL review, and after review by GHCL the final feasibility to be delivered in hard & soft copies in the given time frame. 2. EIA to be completed in parallel to feasibility, and should be completed within the contractual time frame while including public consultations. 3. PC-1 to be furnished as per the Planning Commission updated guidelines, the cost estimates of these documents are envisaged to be matched with feasibility. 4. The inception report shall be submitted to GHCL within the first month of the commencement of services. The inception report shall outline the proposed work program and any apparent barriers to prevent the successful completion of the assignment. 5. Monthly progress reports shall be submitted to GHCL to address the progress and related issue. A performance-based payment will be made to the Firm after receiving the monthly progress report. 6. The bidding documents drafts to be submitted, subsequently the final documents after GHCL review within the contractual time frame. 7. And the final reports/documents will be submitted within 15 days of receipt of comments from GHCL. Client s Input and Counterpart Personnel - Professional and support counterpart personnel to be assigned by the Client to the Consultant s team: iii) Administrative support personnel iv) Technical support personnel Client will provide the following inputs, project data and reports to facilitate preparation of the Proposals/documents: Project data, reports and documents available/relevant to the project Page 12 of 13

Implementation period The Project documents are envisaged to be completed within Eight (08) months after the mobilization of consultants. Manpower Requirement As coal power related resources are limited in Pakistan, therefore, envisaged international consultants requirement on the projects. The consultant is anticipated to work simultaneously on all assignments and will come up with the final project documents within the period of 08 months. Accordingly, the tentative manpower and the man months required are estimated as follows: Feasibilty Study, PC-1, EIAs Bidding Documents including Tender Level Design For 2X660 MW (Gross) Coal Based Power Project at Lakhra) Duration -08 Months Sr. No. Position International Staff Local Staff Person Month Man Month Person Month Man Month Key Staff 1 Team Leader 1 5 5 0 0 0 2 Specialist coal Boiler/ Turbine & Auxiliaries/ Dy. Team Leader 0 0 0 1 8 8 3 Specialist coal Boiler 1 3 3 0 0 0 4 Specialist Electrical & Controls 1 3 3 1 3 3 5 Specialist Procurement/Contracts 1 3 3 2 3 6 6 Specialist Civil Structures & Foundations 1 3 3 1 3 3 7 Environmentalist 1 3 3 2 3 6 8 sociologist 0 0 0 1 3 3 9 Specialist (Economics & Financial) 1 3 3 1 3 3 11 Coal Transport/Logistics & Ash handling specialist 1 2 2 1 2 2 12 Unallocated 3 1 3 1 6 6 Support Staff i power sector engineer 2 4 8 2 6 12 ii Resettlement specialist 0 0 0 1 3 3 iii Socioeconomist 0 0 0 1 3 3 iv Jr. Engineers/ Jr. Environmentalists 0 0 0 3 6 18 Total 36 76 Note: The consultant Firms will furnish Home/ Field inputs in their respective Technical & Financial Proposals with Home/Field Charge rates accordingly. Status of BOD Approval Draft PC-II submitted to CEO (GHCL) on 06-02-2014 for approval of BOD (GHCL) Tentative Implementation Schedule (Annex-II) The tentative implementation schedule is placed at Annex-II Page 13 of 13