NEPAL ELECTRICITY AUTHORITY

(GOVERNMENTOFNEPALUNDERTAKING)

TRANSMISSION&SYSTEMOPERATION SYSTEMOPERATIONDEPARTMENT TENDERNO:SOD/068/6902 TENDERDOCUMENT FOR

DESIGN,SUPPLY,DELIVERY,INSTALLATION, TESTINGANDCOMMISSIONING OF REMOTETERMINALUNIT IN SIMARASUBSTATION

November2011 1

 Table of Contents

Section I. Invitation for Bids Section II. Instruction to Bidders, Bidding Data Section III. Sample Forms of Bid, Qualification Information, Letter of Acceptance and Agreement, Declaration for E-bidding Section IV. General Conditions of Contract (GCC) Section V. Special Conditions of Contract (SCC) Section VI. Technical Specifications Section VII. Technical Data Sheet Section VIII. Bill of Quantities Section IX. Sample Forms of Securities Section X. Rules of Adjudication

Section I. Invitation to Bids

Date of first publication: 2068/8/2 (November 18, 2011) 1. Contract Identification No: SOD/068/69-02 2. Nepal Electricity Authority, System Operation Department invites sealed bids (International Competitive Bidding) (single envelop) from registered contractors for Design, supply, delivery, installation, testing and commissioning of Remote Terminal Unit in Simara Substation. 3. Local bidders must produce a notarized copy of the certificates of VAT registration and PAN registration at the time of purchase of the bid documents. Local agents/bidders intending to purchase the bid documents on behalf of their principals must produce the authorization from their principals. The bid document shall be available for sale up to one day before the last date of bid submission. 4. Bidding documents may be purchased from the office stated below by eligible Bidders on the submission of a written application and upon payment of a non-refundable fee of Rs.2,000 to be deposited in Account No. 00100105000095 at Everest Bank, Naya Baneswor, Kathmandu. 5. The bidding document shall also be available on NEA website http://www.e-nea.org.np and those bidders who wish for e-bidding may obtain further information pertaining to bid from this web site. 6. Bids must be submitted to the below office on or before 12 noon on Mangsir 23, 2068 (December 9, 2011). Alternatively, bidders may submit their bid electronically through e-procurement section in NEA website http://www.e-nea.org.np as specified in the instruction to bidders. Documents received after this deadline shall not be accepted. Bids shall be opened in the presence of Bidders' representatives who choose to attend at 14 hours on the same day and place. 7. For the purpose of the bidders who choose to submit their bid electronically through eprocurement section of NEA website http://www.e-nea.org.np, the bidders may either purchase the hard copy of the bidding documents directly from the office or download the necessary parts of the bidding documents from the website, prepare their bid and submit their electronic bids as specified in the instruction to bidders. In case the bidder chooses to submit the bid electronically, the bidder shall be required to submit an electronic scanned copy (*.pdf format) of the bank deposit voucher of non refundable fee stated above along with the electronic bid files. 8. Bids must be valid for a period of 90 days after bid opening and must be accompanied by bid security, amounting to a minimum of 2.5 % of the quoted Bid amount (inclusive of VAT), which shall be valid for 30 days beyond the bid validity period. 9. If bidder wishes to submit the Bid Security in the form of cash, the cash should be deposited in Deposit Account No. 00100105000095 at Everest Bank, Naya Baneswor, Kathmandu and submit the receipt of the deposited amount of cash along with the bid. 10. If the last date of purchasing, submission and opening falls on a government holiday then the next working day shall be considered as the last day. 11. Bidders are advised to visit site and assess the actual site conditions before submitting their bid. 12. The Employer reserves the right to accept or reject, wholly or partly any or all the bids without assigning any reason, whatsoever. 13. Eligible Bidders may obtain further information at the office of Nepal Electricity Authority System Operation Department Siuchatar, Kathmandu, Nepal Ph: 4287575, 4278015 Fax: 4287742

Section II. Instructions to Bidders

A. General
1. Scope of Works The Employer invites bids for the contraction of works as detailed in attached specifications, drawings and the bill of quantities provided herein. The successful Bidder is expected to complete the works as mentioned in the Bidding Data. 2. Eligible Bidder This Invitation for Bids is open to all registered firms or Joint Venture association (JV) of firms with qualifications as described in the Bidding Data. In the case of a JV: i. the maximum number of partners in Joint Venture association shall be as specified in the Biding Data ii. all partners shall be jointly and severally liable for the execution of the Contract in accordance with the Contract terms, and iii. the JV shall nominate a Representative who shall be authorized to conduct all business for and on behalf of any and all the parties of the JV during the bidding process and, in the event the JV is awarded the Contract, during contract execution; and this authorization shall be evidenced by submitting a power of attorney signed by legally authorized signatories of all the partners. iv. If a Bidder selected for contract award is a joint venture association then such JV shall register with the Inland Revenue Office for the Permanent Account Number(PAN) and Value Added Tax (VAT) 3. Qualification of the Bidder 3.1 All Bidders shall provide Qualification Information in Section III. To qualify for award of the Contract, Bidders shall meet the following minimum qualifying criteria: a. general Work Experience as a sole prime contractor or management contractor or partner of joint venture association or sub contractor as specified in Bidding Data. b. average annual volume of construction work completed as a sole prime contractor or management contractor or partner of joint venture association or sub contractor in the last ten years of at least the amount specified in the Bidding Data c. successful specific experience as prime contractor or management contractor or partner of joint venture association or sub contractor in the construction of at least the number of works, each with a value as specified in Bidding Data of a nature and complexity equivalent to the Works in the last ten years (to comply with this requirement, works cited shall be at least 80 percent complete); d. liquid assets and/or credit facilities, net of other contractual commitments and exclusive of any advance payments which may be made under the Contract, of no less than the amount specified in the Bidding Data. e. a Contract Manager with five years experience in works of an equivalent nature and volume, including no less than three years as a Contract Manager; and other personnel as specified in the Bidding Data; and f. proposals for the timely acquisition (own, lease, hire, etc.) of the essential equipment, in working condition for the contract duration, as listed in the Bidding Data; 3.2 The figures of each of the partners of a joint ventures shall be added together to determine the Bidders compliance with the minimum qualifying criteria of ITB Sub-Clause 3.1 above. However, for a joint venture to qualify, each of its partners must meet the qualifying criteria of 3.2(a); at least the percentage specified in Bidding Data of minimum criteria Sub Clause 3.1(b) and (d) for an individual Bidder and the partner in charge at least the percentage specified in the Bidding Data of minimum criteria of Sub Clause 3.1 (b); 3.1(c) and 3.1 (d) .Failure to comply with this

requirement will result in rejection of the joint ventures bid. Subcontractors experience and resources will not be taken into account in determining the Bidders compliance with the qualifying criteria, unless otherwise stated in the Bidding Data. 3.3 The values of Turnover and Specific work experiences pursuant to Sub-Clause 3.1 (b) and (c ) shall be brought to the current value using the annual inflation rate (National Urban Consumer Price Index; Overall Index) published by Nepal Rastra Bank. 4. One Bid per Bidder Each Bidder shall submit only one bid, either individually or as a partner in a joint venture. A Bidder who submits or participates in more than one bid shall cause all the proposals with the Bidders participation to be disqualified. A firm may participate in more than one bid only as a subcontractor. 5. Cost of Bidding The Bidder shall bear all costs associated with the preparation and submission of his bid and the Employer shall in no case be liable for those costs. 6. Site Visit The Bidder at his own cost, responsibility and risk may visit the site of the works and acquire all necessary information for preparing the bid and entering into a contract for construction of the works.

B. Bidding Documents 7. Content of Bidding Documents The Bidding Documents comprise the documents listed below: Section I. Invitation for Bids II. Instructions to Bidders, Bidding Data III. Sample Forms of Bid, Qualification Information, Letter of Acceptance and Agreement, Declaration form for E-bidding IV. General Conditions of Contract (GCC) V. Special Conditions of Contract (SCC) VI. Technical Specifications VII. Technical Data Sheet VIII. Bill of Quantities IX. Sample Forms of Securities X. Rules of Adjudication 8. Clarification of Bidding Documents A prospective Bidder may request clarification on the bidding documents in writing and the Employer shall respond to such request. Copies of the response shall be forwarded to all the purchasers of the bidding documents.

C. Preparation of Bids 9. Language of Bid All documents relating to the bid shall be in English or in Nepali. 10. Documents Comprising Bid The bid by the Bidder shall comprise the following: a. Bid and Qualification/ Eligibility Information b. Bid Security c. Priced Bill of Quantities

d. Rate Analysis (optional at request of Employer) 11. Bid Prices The contract shall be for the whole works described in scope of works based on the priced Bill of Quantities submitted by the Bidder. The Bidder shall fill in rates and prices for all items of the works in Nepali Rupees. Items for which no rate or price is entered shall be deemed covered by the other rates and prices in the Bill of Quantities and shall not be paid by the Employer. All duties, taxes and other levies payable by the contractor under the contract shall be included in the rates, prices and total Bid Price submitted by the Bidder. 12. Bid Validity The bid shall remain valid for the period specified in the Bidding Data. 13. Bid Security The Bidder shall furnish a Bid Security in Nepali Rupees in the amount specified in the Bidding Data. The Bid Security shall remain valid for a period of 30 days beyond the original validity period for bid and any period of extension subsequently requested by the employer. The Bid Security shall be in the form of a bank guarantee from a bank acceptable to the Employer or a cash voucher deposited in the Bank Account of the Employer specified in the Bidding Data. Any bid not accompanied by an acceptable Bid Security shall be rejected by the Employer. The bid Security of a joint venture must define as Bidder all joint venture partners and list them in the following manner: a joint venture consisting of ________, ________ and __________. 14. Format and Signing of Bids One original and one duplicate copy of the bid shall be typed or written in indelible ink and shall be signed by a person or persons duly authorized to sign on behalf of the Bidder. This authorization shall consist of a written confirmation as specified in the Bidding Data and shall be attached to the bid. The name and position held by each person signing the authorization must be typed or printed below the signature. Any entries or amendments including alternations, additions or corrections made shall be initialed by the same authorized person.

D. Submission of Bids 15. Sealing and Marking of Bids The Bidder shall submit one original and a duplicate copy of the bid. These bids shall be placed in sealed envelopes. Both the sealed envelopes shall be placed in an outer envelope which shall also be sealed. The inner envelopes shall duly be marked as Original and Copy. The envelopes shall be addressed to the Employer at the address provided in the Bidding Data and bear the name and identification number of the contract. 16. Pre-Bid Meeting A Pre-Bid meeting if provided for in the Bidding Data shall be held at least 10 days before the bid submission date at the place, date and time as mentioned in the Bidding Data. Any amendment to be made in the Bid subsequent to the Pre-bid meeting shall be issued within 5 days of the meeting and the Addendum shall be circulated to all the purchasers of the Bidding Document, The Addendum thus issued shall be a part of the Bidding document. 17. Deadline for Submission of Bids Bids shall be delivered to the Employer at the address no later than the time and date specified in the Bidding Data.

18. Late Bids Any bid received by the Employer after the deadline shall not be accepted and shall be returned unopened to the Bidder. 19. Modification and Withdrawal of Bids 19.1 Bidders may modify or withdraw their Bids after it has been submitted by giving a written notice, duly signed by an authorized representative and shall include a copy of the authorization in accordance with Clause 14 before the deadline prescribed in Clause 17. The corresponding modification of the bid must accompany the respective written notice. 19.2 Each Bidders modification or withdrawal notice shall be prepared, sealed, marked, and delivered in accordance with Clauses 16 with the outer and inner envelopes additionally marked MODIFICATION or WITHDRAWAL, as appropriate. 19.3 No bid may be modified after the deadline for submission of Bids.

E. Bid Opening and Evaluation 20. Bid Opening 20.1 The Employer shall open the bids in the presence of the Bidders' representatives who choose to attend at the time and in the place specified in the Bidding Data. 20.2 First envelopes marked WITHDRAWAL shall be opened and read out and the envelope with the corresponding bid shall not be opened. No bid withdrawal shall be permitted unless the corresponding withdrawal notice contains a valid authorization to request the withdrawal and is read out at bid opening. Next envelopes marked Modification shall be opened and read out with the corresponding bid. No bid modification shall be permitted unless the corresponding modification notice contains a valid authorization to request the modification and is read out at bid opening. Only envelopes that are opened and read out at the bid opening shall be considered further. 20.3 The Bidders' names, the Bid Prices, the total amount of each bid, any discounts, bid modifications and withdrawals, the presence or absence of Bid Security, difference of rate in words and figures, quoted price for alternate technical specification if proposed, whether the Bid Form has signature of the bidder or authorized representative, corrections/effacement or obliteration in bidding document, any remarks made by the bidder in the Bid Form, details of rates if requested and such other details as the Employer may consider appropriate shall be announced by the Employer at the opening. 20.4 The Employer shall prepare and provide minutes of the bid opening including the information disclosed to those present. 21. Process to be Confidential Information relating to the examination, clarification, evaluation and comparison of bids and recommendations for the award of a contract shall not be disclosed to Bidders or any other persons not officially concerned with such process until the award to the successful Bidder has been announced. 22. Clarification of Bids and Contacting the Employer 22.1 To assist in the examination, evaluation and comparison of Bids, the Employer may, at the Employers discretion, ask any Bidder for clarification of the Bidders bid, including breakdowns of unit rates. The request for clarification and the response shall be in writing or by facsimile, but no change in the price or substance of the bid shall be sought, offered, or permitted except as required to confirm the correction of arithmetic

errors discovered by the Employer in the evaluation of the Bids in accordance with Clause 24. 22.2 Subject to Sub-Clause 22.1, no Bidder shall contact the Employer on any matter relating to his bid from the time of the bid opening to the time the contract is awarded. If the Bidder wishes to bring additional information to the notice of the Employer, he should do so in writing. Any efforts by the Bidder to influence the Employer in the Employers bid evaluation, bid comparison or contract award decisions may result in the rejection of the Bidders bid.

22.3

23. Examination of Bids and Determination of Responsiveness 23.1 Prior to the detailed evaluation of Bids, the Employer shall determine whether each bid (a) meets the eligibility criteria defined in Clause 2; (b) has been properly signed; (c) is accompanied by the required securities; and (d) is substantially responsive to the requirements of the Bidding documents. 23.2 A substantially responsive bid is one which conforms to all the terms, conditions, and specifications of the Bidding documents, without material deviation or reservation. A material deviation or reservation is one (a) which affects in any substantial way the scope, quality, or performance of the Works; (b) which limits in any substantial way, inconsistent with the Bidding documents, the Employers rights or the Bidders obligations under the Contract; or (c) whose rectification would affect unfairly the competitive position of other Bidders presenting substantially responsive Bids. If a bid is not substantially responsive, it shall be rejected by the Employer, and may not subsequently be made responsive by correction or withdrawal of the nonconforming deviation or reservation.

23.3

24. Correction of Errors 24.1 Bids determined to be substantially responsive shall be checked by the Employer for any arithmetic errors. Errors shall be corrected by the Employer as follows: a. b. where there is a discrepancy between the amounts in figures and in words, the amount in words shall govern; and where there is a discrepancy between the unit rate and the line item total resulting from multiplying the unit rate by the quantity, the unit rate as quoted shall govern, unless in the opinion of the Employer there is an obviously gross misplacement of the decimal point in the unit rate, in which case the line item total as quoted shall govern, and the unit rate shall be corrected.

24.2

The amount stated in the bid shall be adjusted by the Employer in accordance with the above procedure for the correction of errors and, with the concurrence of the Bidder, shall be considered as binding upon the Bidder. If the Bidder does not accept the corrected amount, the bid shall be rejected and the Bid Security may be forfeited.

25. Evaluation and Comparison of Bids 25.1 The Employer shall evaluate and compare only the Bids determined to be substantially responsive in accordance with Clause 23. 25.2 In evaluating the Bids, the Employer shall determine for each bid the evaluated Bid Price by adjusting any corrections for errors pursuant to Clause 24; Further the employer shall evaluate :

25.3

a. Whether the construction work plan, work performance schedule and mobilization period is consistent with the requirement of the bidding document or not, b. Whether the quoted item unit rates in the Bill of quantities are reliable or not, c. Whether or not the quoted price is unbalanced due to unnaturally high rates quoted by the bidder for work items to be completed in the initial stages of the contract or for work items whose quantities are assumed by the bidder to be underestimated. 25.4 If the bid, which results in the lowest Evaluated Bid price, is unbalanced or frontloaded in relation to the Employers estimate of the items of Work to be performed under the contract pursuant to clause 25.3, the Employer shall ask the bidder to give clarification with detailed rate analysis for any or all items of the Bill of Quantities. If the clarification is found satisfactory then the Employer shall increase at the expense of the bidder the performance security set forth in clause 29 by additional 8% of the quoted amount to protect the Employer against financial loss in the event of default of the successful bidder under the contract and if the clarification is found unsatisfactory then the Employer may reject such bid. The Employer reserves the right to accept or reject any variation deviation or alternative offer. Variations, deviations, and alternative offers and other factors which are in excess of the requirements of the Bidding documents or otherwise result in unsolicited benefits for the Employer will not be taken into account in bid evaluation

25.5

F. Award of Contract 26. Selection for Award of Contract 26.1 The Employer shall select and award the contract to the Bidder who has offered the lowest evaluated Bid Price, provided that such Bidder has been determined to be eligible in accordance with the provisions of clauses 2.and 3. and no application for review of decision is received from other bidders pursuant Sub-Clause 26.3 26.2 The Employer shall notify its intention to award the Contract to the selected bidder in accordance with Sub-Clause 26.1 within 7 days of selection of his bid. The employer shall also provide information regarding the name, address and the contract amount of the successful bidder to all the bidders who participated in the bid. Any Bidder who is not satisfied with the procurement process or Employers decision provided as per Sub - Clause 26.2 and believes that the Employer has committed an error or breach of duty which has or will result in loss to the bidder then the bidder may give an application for review of the decision to the Employer with reference to the error or breach of duty committed by the Employer. The review application should be given within 7 days of receipt of information regarding the issue of letter by the Employer notifying its intention to award the contract to the successful bidder. If the review application is not received by the Employer as per clause 26.3 then the bid of the Bidder selected as per Sub- Clause 26.1 shall be accepted by the Employer.

26.3

26.4

27. Employer's Right to Accept any Bid and to Reject any or all Bids The Employer reserves the right to accept or reject any bid and to cancel the bidding process and reject all bids, at any time prior to the award of the contract, without assigning any reasons whatsoever and without thereby incurring any liability to the affected Bidder or Bidders. 28. Notification of Award and Signing of Agreement 28.1 The Bidder, whose bid is accepted in accordance with Sub-Clause 26.4, will be notified of the award by the Employer prior to the expiration of the bid validity period. This notification (called the Letter of Acceptance) shall state the sum that the Employer shall pay the

Bidder in consideration of the execution, completion, and maintenance of the works as prescribed by the contract. 28.2 Within 15 days after receipt of the Letter of Acceptance, the successful Bidder shall deliver to the Employer a Performance Security in the amount pursuant to Sub Clause 29 and sign the Contract Agreement. 28.3 If the successful bidder fails to deliver the Performance Security and sign the Agreement pursuant to Sub-Clause 28.2 and if required an additional amount pursuant to Sub-Clause 25.4 then the Employer shall forfeit the Bid Security of the bidder and accept the bid of immediately next lowest evaluated substantially responsive bidder. 28.4 Upon the furnishing by the successful Bidder of the Performance Security and signing of the Agreement, the Employer shall promptly notify the other Bidders that their Bids have been unsuccessful. 29. Performance Security Within 15 days after receipt of the Letter of Acceptance, the successful Bidder shall deliver to the Employer a Performance Security in acceptable format to the Employer as specified in Section IX and equal to five percent (5%) of the contract Agreement Amount. 30. Advance Payment The Employer shall make Advance Payment on the Initial Contract Price as stipulated in the Letter of Acceptance, subject to a maximum amount as stated in the Bidding Data. 31. Additional Securities The Contractor shall provide additional Performance Security pursuant to Sub - Clause 25.4 32. Adjudicator The Employer proposes the person named in the Bidding Data to be appointed as Adjudicator under the Contract, at the hourly fee specified in the Bidding Data, plus reimbursable expenses. If the Bidder disagrees with this proposal, the Bidder should so state in his Bid. If, in the Letter of Acceptance, the Employer does not agree on the appointment of the Adjudicator, the Employer will request the Appointing Authority designated in the SCC at the request of either party. 33.Conduct of Bidders 33.1 The Bidder shall be responsible to fulfil his obligations as per the requirement of the Contract Agreement, Bidding documents, GoNs Procurement Act and Regulations. 33.2 The Bidder shall not carry out or cause to carryout the following acts with an intention to influence the implementation of the procurement process or the procurement agreement : a. give or propose improper inducement directly or indirectly, b. distortion or misrepresentation of facts c. engaging or being involved in corrupt or fraudulent practice d. interference in participation of other prospective bidders. e. coercion or threatening directly or indirectly to cause harm to the person or the property of any person to be involved in the procurement proceedings, f. collusive practice among bidders before or after submission of bids for distribution of works among bidders or fixing artificial/uncompetitive bid price with an intention to deprive the Employer the benefit of open competitive bid price. g. contacting the Employer with an intention to influence the Employer with regards to the bid or interference of any kind in examination and evaluation of the bids during the period after opening of bids up to the notification of award of contract

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34. Blacklisting Bidder 34.1 Without prejudice to any other right of the Employer under this Contract, GoN, Public Procurement Monitoring Office may blacklist a bidder for his conduct up to three years on the following grounds and seriousness of the act committed by the bidder: a. if it is proved that the bidder committed acts pursuant to the Sub Clause 33.2, b. if the bidder fails to sign an agreement pursuant to Sub clause 28.4, c. if it is proved later that the bidder/contractor had committed substantial defect in implementation of the contract or had not substantially fulfilled his obligations under the contract or the completed work is not of the specified quality as per the contract , d. if convicted by a court of law in a criminal offence which disqualifies the bidder from participating in the contract. e. if it is proved that the contract agreement signed by the bidder was based on false or misrepresentation of bidders qualification information, f. other acts mentioned in the Bidding Data

34.2 A firm declared blacklisted and ineligible by the GoN shall be ineligible to bid for a contract
during the period of time determined by the PPMO.

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G. Bidding Data
Instruction to Bidders Clause References A. General
ITB 1 The Employer is: Nepal Electricity Authority (NEA) The major works to be carried out by the Contractor are: a. Design, supply, delivery, installation, testing and commissioning of Remote Terminal Unit (RTU) in Simara Substation. b. The works shall be complete with all accessories (power supply, Central Processing Unit, digital input / output card, GPS and others) for efficient and trouble-free operation as specified hereunder. ITB 2 Following is the addition of new definitions: "Bidder" shall mean a legally registered entity submitting the Bid proposal. The entity may be a supplier or manufacturer of the tendered Goods or contractor or any combination of them in the form of a Joint Venture. "Joint Venture" shall mean a legally enforceable association constituted by legally registered entities with the purpose of committing the obligations required by the Bid. "Goods" shall mean equipment, plant, goods, materials, etc. to be supplied and installed for the completion of the work as particularly described in the specifications. The offered Goods shall be in conformity with the specifications. The Bidder shall fill in the technical Data sheet provided in the bidding document. In order to prove that the goods offered are conformity with the specifications, the Bidder shall furnish documentary evidence in the form of literature (catalogue), drawings, detailed descriptions of goods with essential technical and performance characteristics and type test reports wherever called for. The type of test certificate, if applicable, shall cover all type of tests as per the latest version of relevant standard mentioned in the specification. The type test conducted earlier than five (5) years from the last date of submission of bids shall not be acceptable. The Bidder shall fill in all the bidding forms provided in the Bidding document and shall furnish the information required by these forms. Bidders Eligibility Requirement: a) Up to date Firm/Company Registration Certificate b) Business Registration License c) VAT and PAN Registration Certificates (in case of Foreign bidders, it is not required for bid submission but must do so if the contract is awarded, at the earliest possible after the Contract signing but not later than 30 days) d) Tax Clearance Certificate or Submissions of Tax Returns up to 2067/68 (2010/11) e) A written declaration made by the Bidder stating that the Bidder is not ineligible to participate in the Bid; has no conflict of interest in the proposed bid procurement proceedings and has not been punished for the profession or businesses related offence.

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f) Joint Venture Authorization/ Agreement (if any) g) Notarized power of attorney authorizing the signatory of the bid to commit the Bid on behalf of the Bidder h) Other documents as needed Maximum number of members in a Joint venture: Three Delete ITB clause 3.1 and replace it with the following: Failure to meet legal status or furnish appropriate certificates with adequate information to support the qualification of the Bidder as required under this Clause shall result in disqualification of the Bid. 1. Legal status 1.1 For the Bidder which is not a Joint Venture (JV): The Bidder shall be a manufacturer or a contractor legally registered for at least five (5) years. A notarized copy of legal registration certificate shall be submitted along with the Bid. 1.2 For the JV Bidder: (a) Original of Joint Venture agreement legally binding on all JV partners shall be included in the Bid. The joint venture agreement shall bear the seal of the entities and signatures of personnel authorized by the respective entities forming the joint venture. All such authorization documents shall also be included in the Bid. These authorization documents shall be on original letterhead of the respective entity with stamp/seal of the entity. (b) The number of joint venture partners shall not exceed three (3). (c) The lead partner of the JV shall be a manufacturer or contractor legally registered for at least five (5) years. (d) The other partners of JV shall be manufacturers or contractors legally registered for at least three (3) years. (e) Notarized copies of legal registration certificates for each JV partners shall be submitted along with the Bid. 2. Project Experience 2.1 For the Bidder which is not joint venture (JV): (a) The Bid shall included certificates from the end users validating that the bidder has successfully completed design, supply, construction, installation and commissioning of at least one contract of similar size and nature, or number of contract of similar nature whose aggregate size is not less than the size of this bid. The date in the end user certificates shall not be earlier than last five (5) years from the last date of bid submission. (b) The end user's certificates included in the Bid shall be on the end user's original letter head with valid address for correspondence and signed by or on behalf of the end user. 2.2 For the JV Bidder: (a) The lead partner shall have completed at least one project of size which is at least 60% of the project experience stated above. (b) Each of the other partners of the JV shall have accomplished at least one project of size at least 20% of project experience stated above. (c) The Bid shall include certificates from the end users for the lead partner and each of the other partners validating that they have successfully completed

ITB 3.1

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design, supply, construction, installation and commissioning of projects of the size stated in 2.2 (a) and (b) above. The date of the end user certificates shall not be earlier than last five (5) years from the last date of the bid submission. (d) The JV partners together shall have successfully completed design, supply, construction, installation and commissioning of projects whose aggregate size is not less than the size of this Bid. 3. Financial capacity of the Bidder 3.1 Financial statements: The Bidder including joint venture partners, if any, shall submit audited financial statements (Balance sheet and profit and loss account) for the last three (3) fiscal years. Balance sheet and profit and loss account sheet shall be signed and sealed by the registered auditor(s). 3.2 Line of credit: In the event that the working capital of the Bidder (including each of the JV partner) is to be supplemented with the line of credit from a bank, the Bidder shall submit original letter of the Bank pledging unequivocally that the Bank will provide required financial support in case the Bidder is awarded the contract. The amount of line of credit shall be clearly mentioned in the bank letter. The bid title and the bid number shall also be mentioned in the bank letter. 3.3 Average annual turnover: (a) For the Bidder which is not a Joint Venture: The Bidder shall have average Annual Turnover (defined as the total payments received by the Bidder averaged over last three years period) of at least equivalent to Rs.13,339,096. (b) For the JV Bidder: The average Annual Turnover of the lead partner shall not be less than 51% of the amount stated above in the sub clause 3.3 (a). Average Annual Turnover of other partners shall not be less than 10% of the amount stated in sub-clauses 3.3 (a). Aggregate Annual Turnover (with line of credit facilities) of all the JV partners shall not be less than the values specified in subclauses 3.3 (a). 3.4 Availability of Financial Resources (Working Capital): (a) For the Bidder which is not a Joint Venture: The Bidder shall have Working Capital (defined as total current assets less total current liabilities) of at least Rs.1,889,705 in the last Fiscal Year. If the Bidder's Working Capital is inadequate, the Bidder shall supplement Working Capital with banker's letter confirming the availability of a line of credit such that aggregate of the Bidder's Working Capital for the last fiscal year and the line of credit shall not be less than the required amount. (b) For the JV Bidder: Working Capital of the lead partner shall not be less than 51% of the amount stated above in sub-clause 3.4(a). Working Capital of other partners shall not be less than 10% of the amount stated in sub-clauses 3.4 (a). Aggregate Working Capital (with line credit facilities) of all the JV partners shall not be

14

less than the value of specified in sub clauses 3.4 (a). 4. Quality of Goods In case the Bidder is not the manufacturer of Goods offered, the Bidder shall submit manufacturers certificate authorizing the Bidder to supply the manufacturers Goods. This certificate shall bear details of the Goods that the manufacturer will be supplying under the authorization. The authorization shall be on the manufacturers original letterhead with seal/stamp of the manufacturer. The manufacturer of Goods to be supplied under this Bid shall hold valid quality ISO certificate as required by the specifications and a copy of ISO certificate shall be included in the Bid. Type test certificate, if applicable, shall be included in the Bid and shall bear a date that is not earlier than five years from the last date of Bid submission. The type test certificate shall have been issued by a reputed independent laboratory. 5. Manufacturers Experience The Bidder shall submit at least two numbers of end user certificates showing that the manufacturer has successfully completed the supply of Remote Terminal Unit (RTU) at least twice the bid quantity of offered items as a main supplier over last five (5) years period ending on the last date of bid submission. Out of supplied quantity, a minimum of half the bid quantity for each item offered shall have been in operation satisfactorily to the end users for at least one (1) year. The end user certificates shall be on the letterhead of the end user with valid address for correspondence and signed by or on behalf of the end user. 6. Miscellaneous The Bidder or any of the Joint Venture partners shall not be on the blacklist circulated by Public Procurement Monitoring Office, Government of Nepal or Nepal Electricity Authority. 7. Litigation history The Bidder including all joint venture partners, if any, shall submit all claims, arbitration or other litigation, pending or already resolved from the contracts executed or currently under execution. The Bidder shall indicate for each case the year, name of employer, cause of litigation, matter of dispute, dispute amount, and whether the award was for or against the company. A consistent history of awards against the Bidder of any partner of a joint venture may result in rejection of Bid. 8. Work Completion Schedule Submit proposals regarding completion scheduling which shall be provided to complete the works in accordance with the specifications and the time for completion. Bids with work schedule showing completion date beyond the required time for completion shall be disqualified. ITB 3.2 ITB 3.3 Refer to ITB 3.1 (above) To be deleted

15

B. Bidding Documents ITB 8 Employers address for clarification purposes is: The Director, System Operation Department Nepal Electricity Authority (GOVERNMENT OF NEPAL Undertaking) Siuchatar, Kathmandu, Nepal Tel: +977 1 4287575 Fax : +977 1 4287742 Requests for clarification should be received by the Employer no later than: 10 days before the bid submission date

C. Preparation of Bids ITB 9 ITB 12 ITB 13 The language of the bid is: English or Nepali The bid validity period shall be: 90 days from the date of submission of Bid Amount of Bid Security shall be: not less than 2.5 % of Bid amount The bid security validity shall be: 120 days from the date of submission of Bid The Bank Account of the Employer: Account No. 00100105000095 Everest Bank, Baneswor, Kathmandu, Nepal The written confirmation of authorization to sign on behalf of the Bidder shall indicate: a. The name and description of the documentation required to demonstrate the authority of the signatory to sign the Bid such as a Power of Attorney; and b. In the case of Bids submitted by an existing or intended JV an undertaking signed by all parties (i) stating that all parties shall be jointly and severally liable, and (ii) nominating a Representative who shall have the authority to conduct all business for and on behalf of any and all the parties of the JV during the bidding process and, in the event the JV is awarded the Contract, during contract execution.

ITB 14

D. Submission of Bids ITB 16 ITB 17 A Pre-Bid meeting shall not take place. The Employers address for bid submission purposes is: System Operation Department Nepal Electricity Authority Siuchatar, Kathmandu, Nepal Tel: +977 1 4287575 Fax : +977 1 4283875 The deadline for bid submission is: Date: Mangsir 23, 2068 (December 9, 2011) Time: 12 hours

16

E. Bid Opening and Evaluation ITB 20 The bid opening shall take place at: Address: System Operation Department Nepal Electricity Authority Siuchatar, Kathmandu, Nepal Tel: +977 1 4287575 Fax : +977 1 4283875 Date: Mangsir 23, 2068 (December 9, 2011) Time: 14 hours Add new item 22.4 as follows: In case of e-submission of bid, the Bidder shall be required to submit the original Completed Bid consisting of Forms of Bid, Qualification Information, Bill of Quantities, etc. as listed in Special Instruction to Bidders for e-bidding Clause A (ii) for verification purpose upon notification to do so from Employer within 3 days ITB 23.3 Add the following: Bids shall be rejected as being non-responsive under any of the following conditions: a. The bidder has not purchased and returned the original document issued by NEA. b. The Bid Document is issued in the name of one firm and Bid proposal submitted by another firm. The bid has been purchased in the name of single firm and submitted in the name of Joint Venture and vice versa. (In case of Joint Venture
the Bid must be purchased in the name of the Joint Venture.)

ITB 22

c. The Bid does not contain wax sealed bid proposal. d. The Bid is not signed and stamped by the bidder or their authorized representative. e. It is proved that bidders have submitted the bids by making such arrangements that limits the participation of other bidders or influences the bid price in any manner. f. The Bid is received by NEA after the deadline for submission of Bids. g. If a bidder participates in more than one bid proposal. h. If a joint venture involves more than three partners. i. All the information required by the bid document is not mentioned or falsely quoted. j. The documents and guarantee/bank voucher as required by the bid are not attached with the bid proposal. k. The notarized copy of joint venture agreement is not attached, in case the bidder is participating in the bid in Joint Venture. l. In case of Foreign Bidder operating through Local Agent in Nepal, the amount of commission, currency of payment, and method of payment to the bidders agent are not revealed. m. Any other conditions/information about the local agent is not revealed or falsely mentioned.

17

n. The notarized power of attorney to sign the bid on behalf Bidder and the joint venture (if any) is not attached. o. The percentages of liability among joint venture partners are not clearly mentioned. p. The bid is conditional. q. Any conditions mentioned in tender invitation are not fulfilled. r. Data on qualifications of Bidder/ Manufacturer are not filled and the supporting documents required by the forms are not furnished. s. Proposed delivery schedule showing completion dates more than NEAs requirement. t. The Bid fails to satisfy that Bid is fully cognizant of the scope and details of the work involved. u. The Bid does not contain technical information and documents for major items required by the Specifications for materials on which the bidder is offering. v. The offered goods are not substantially in compliance with the specification. w. If the attached Technical Data Sheet in the specification is not properly completed and/or data furnished are not supported by the catalogues and test reports (wherever required). x. Qualification criteria as per ITB, Bidding data are not met. y. The description provided by the bidders pertaining to the qualification is found to be false or is substantially incomplete. z. The bidder is blacklisted in its contractual obligations in past NEA contracts. aa. If the required documents are not submitted authenticated English version. However the documents in Nepali language issued from the concerned authority of Nepal will also be accepted. bb. The bidder does not offer all the items and quantity specified in Price Schedule. cc. The Bid Security (Bid Bond) is not enclosed pursuant to ITB Clause 13 or is not acceptable in form and / or substance. dd. The Bid has price escalation clause. ee. The Bid Security submitted is not specifically mentioned to be applicable to the offer of the Bidder. ff. The Bid Bond submitted by someone other than the Bidder does not clearly mention that the Bond is submitted on behalf of the Bidder in the Bid Bond itself. gg. The Bid Bond is not in the name of Joint Venture, in case of Joint Ventures. hh. The bid price of lowest substantially responsive bidder is substantially higher than the estimated price. ii. The Bidder does not submit the original completed Bid document/clarification to Special Instruction to Bidders for e- Bidding clause B (iii) for within 3 days.

F. Award of Contract ITB 30 ITB 32 The Advance Payment amount shall be: limited to 10% of the initial contract price The Adjudicator proposed by the Employer is: Not applicable The hourly fee for this proposed Adjudicator shall be: Not applicable Brief biographical data of the proposed Adjudicator is as follows: Not applicable

18

Special Instruction to Bidders for e-Bidding

A) i. Bid submission procedures through electronically (e-submission) only: Interested eligible bidders shall, either purchase the hard copy of the bidding document directly from the Employers office as specified in the Invitation for Bid (IFB) or may download the necessary parts of the bidding documents from e-procurement section in NEAs web site http://www.e-nea.org.np. In case, the bidders choose to download the bidding documents, prepare the bids on downloaded documents, and submit their bids electronically. The Bidders shall be required to deposit the non refundable fee for the bidding document (as specified in the bid notice) in the bank account specified in the IFB and electronic scanned copy (*.pdf format) of the bank deposit voucher shall also be submitted along with the electronic bid files. The Bidder shall fill the following documents and forms (in hard copy of issued bid documents), signed by the authorized representative with seal of the company. a) Bill of Quantity (BOQ) with rate, amount, b) Forms of Bid, Qualification Information The Bidder shall then scan the completed original documents, forms in PDF formats with appropriate filename shown if the table below.
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Document Form of Bid Bid Security (Bank Guarantee) Company registration, VAT/PAN registration, Tax clearances certificate, Power of Attorney of Bid signatory Joint venture agreement Qualification Information BOQ with rate, amount and total amount Manufacturers Authorization Technical Data Sheet Certification Documents Declaration Form PDF File name Bid form -1 Bid security-2 Company reg-3 VAT reg-4 Tax-5 Power of att-6 JV doc-7 Qualifications-8 BOQ-9 Authorization 10 TDS-11 Certifications-12 Declaration-13 19 Requirement Mandatory Mandatory Mandatory Mandatory for National firms Mandatory for National firms Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory All firms in case of JV All firms in case of JV All firms in case of JV Remarks

ii.

Note: Mandatory means the mentioned files shall be included in e-submission and nonsubmission of such file shall be considered as non-responsive bid. iii. iv. v. For e-submission purpose the Bidder shall, at first, register in the e-procurement section NEAs web site http://www.e-nea.org.np . After preparing all the required bidding documents in PDF, scan the files as specified in (ii). The Bidder shall upload the PDF bid files and submit the complete bid online through eprocurement section of NEAs website http://www.e-nea.org.np within the specified date and time. The e-procurement system will accept the e-submission of bid from the date after publishing of notice and will automatically disallow the e-submission of bid after the deadline for submission of bid, as specified above. The standard time for e-submission is Nepalese Standard Time as set out in the server of IT Department of NEA. When a bidder submits his bid in hard copy, the e-procurement section does not allow the bidder to submit his Substitution or Modification or Withdrawal through eprocurement section of NEAs web site. Bidders may submit his Substitution or Modification or Withdrawal either in hard copy or through e-submission. For Substitution of Bid, the Bidder shall follow similar steps as specified in ITB Clause 22 with a Substitution letter in PDF file. For Modification or Withdrawal of bid, the Bidder is required to submit PDF scan copy of their Modification or Withdrawal letter and a written Power of Attorney of the signatory for Modification/ Withdrawal, duly signed by Authorized Representative/s of the Firm / all authorized Joint Venture partners. When a Bidder submits electronic bid by downloading the bidding documents from the NEAs webpage it is assumed that the Bidder prepares his bid by studying and examining all the Bidding documents including specifications and conditions of contract. In case the Bidder choose to download the bidding documents and deposit the cost of bidding documents (as specified in the bid notice), such deposited amount shall be verified by the office during bid evaluation process. The bid shall be considered as nonresponsive and shall not be evaluated if the specified cost for bidding document is not deposited in the Employers Revenue account. Proposed facility for submission of bid electronically through e-submission is to increase transparency, non-discrimination, equality of access, and open competition. The Bidders shall be fully responsible to use the e-submission facility in e-procurement section of NEAs website http://www.e-nea.org.np in specified procedures and in no case the Employer shall be held liable for Bidders inability to use this facility.
20

vi.

vii. viii.

ix. x. xi.

xii.

xiii.

xiv.

B) i.

Requirements and Conditions for e-submission of bid: The Bidder shall submit his bid electronically in PDF files in the manner as specified above, and additional submission of hard copy of original plus one copy of bid is not mandatory. In case, if both the electronic bid and original bid in hard copy are submitted to the Employer within the bid submission deadline, the Bidder's electronic bid and original bid in hard copy will be accepted for evaluation provided the facts and figures in hard copy confirm to the PDF files in electronic bid. If there is any discrepancy in fact and figures between the electronic bid and original bid in hard copy, it will be treated as two separate bids from one Bidder and hence, both the electronic bid and original bid in hard copy shall be disqualified. However, for electronically submitted bid in PDF files, the Bidder shall be required to submit documents/clarifications for verification purpose upon notification to do so from the Employer within 3 days. The e-submitted bids must be readable through open standards interfaces. Unreadable and or partially submitted bid files (not complying with the ITB Clauses) shall be considered incomplete and rejected for further bid evaluation. In addition to electronically submitted PDF files, the Bidder shall be required to submit documents and clarifications as required by the Employer. Non-submission of such documents and or clarifications by the Bidder within specified time may cause forfeiture of Bid Security. In case of major discrepancy found between electronically submitted PDF bid files and documents/ clarifications provided by the Bidder, the bid shall not be considered for further evaluation. The Bidder shall attach the Bid Security Guarantee in the format attached in the Bid Document. The Bid Security may be forfeited a. if the Bidder does not respond to and/or submit the documents and or clarifications when requested by the Employer. b. if major discrepancy is found between e-submitted bid information and documents/clarifications provided by the Bidder during verification process as requested by the Employer.

ii.

iii.

iv.

v.

vi.

vii.

C) i. ii. iii.

Bid Opening process for e-submitted bid Electronically submitted bid shall be opened first at the Bid opening time. The e-procurement system allows the Employer to download and open the e-submitted bid files from the bidders only after the time for opening the bids. The e-submitted bids must be readable through open standards interfaces. Unreadable
21

and or partially submitted bid files (not complying with the ITB Clauses) shall be considered incomplete and rejected for further bid evaluation. iv. After opening of e-submitted bids files, all files shall be printed and recorded at the time of bid opening.

b) In case of "WITDRAWAL" or "MODIFICATION" or "SUBSTITUTION" by the Bidder through e-submission, the e-submitted PDF files under "WITDRAWAL" or "MODIFICATION" or "SUBSTITUTION" shall be opened and read out first. Bids for which acceptable notice of "WITDRAWAL" or "SUBSTITUTION" has been submitted pursuant to ITB Clause shall not be opened. D) i. Bid Evaluation and Comparison process for e-submitted bid In case of e-submitted bids, the Employer evaluates the bid based on the information as per electronically submitted bid files. For clarification/ verification purpose, the Employer may request the Bidder to submit documents/ clarifications. In case, the Bidder could not substantiate or provide evidence to prove the information provided in e-submitted bid through documents/clarifications, the bid shall not be considered for further evaluation and respective ITB Clause for forfeiture of bid security shall be applicable. The e-submitted bids must be readable through open standards interfaces. Unreadable and or partially submitted bid files (not complying with the ITB Clauses) shall be considered incomplete and rejected for further bid evaluation. Qualification Information In case of e-Bidding, the Bidder is required to submit the documents to prove minimum qualification requirements only and not the detail documents. F) Bid Security Format Form of Bid security shall include the provision as This Bank Guarantee shall not be withdrawn or released merely upon return of the original Guarantee by the Bidder unless notified by the Employer for the release of the Guarantee.

ii.

iii.

E)

22

Section III. Sample Forms of Bid, Qualification Information, Letter of Acceptance and Agreement, Declaration for E-bidding
Bid We have examined the documents and offer to execute the Works in conformity with the Contract for the sum of . .. (in words) (in figures) or such other sum as may be ascertained under the contract. This bid is submitted in one original and one duplicate copy. We accept the appointment of [______________name proposed in Bidding Data] as the Adjudicator [or] We do not accept the appointment of [name proposed in Bidding Data] as the Adjudicator, and propose instead that [name] be appointed as Adjudicator, whose daily fees and biographical data are attached. This bid shall remain binding until ____________________ [date]. This bid and your written acceptance of it shall constitute a binding contract between us. We understand that the Employer is not bound to accept the lowest or any offer received for the Works.

Signature _____________________________ Date: _________________________________ Name : _______________________________ Designation: ______________________ Authorized to sign on behalf of (organisation name): _______________________________ Office Stamp of the Organisation: ____________________________________

23

LIST OF QUALIFICATION FORMS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

FORM 1.1 FORM 1.2 FORM 1.3 FORM 1.4 FORM 1.5 FORM 1.6 FORM 1.7 FORM 1.8 FORM 1.9 FORM 2 FORM 3 FORM 4 FORM 5 FORM 6 FORM 7 FORM 8

STATEMENT & LEGAL STATUS OF BIDDER EXPERIENCE RECORD OF BIDDER PROJECTS COMPLETED BY BIDDER, J.V. PARTNERS PROPOSED SUBCONTRACTORS AND FIRMS INVOLVED FINANCIAL STATUS OF BIDDER ADDRESS OF BANK LITIGATION HISTORY STATEMENT OF COMPLIANCE CONSTRUCTION SCHEDULE JOINT VENTURE DATA EXPERIENCE RECORD OF MANUFACTURER MANUFACTURER'S AUTHORIZATION CERTIFICATE ISO 9001 CERTIFICATE DECLARATION OF FIRM PRICE DECLARATION OF LOCAL AGENT DEVIATIONS FROM SPECIFICATION

24

FORM 1.1 STATEMENT & LEGAL STATUS OF BIDDER (To be submitted for Bidder and JV Partners) 1. Name of Bidder: 2. 3. 4. 5. ____________________________________________

Address of Head office:_____________________________________________________ Legal Status: ___________________________________________________________ Place and Date of Business: _________________________________________

Registration Certificate: Date / Place: ______________________________ [Attach Copies] VAT and PAN Registration Certificate: ____________________________ [Attach Copies] Tax Clearance Certificate or Submissions of Tax Returns as specified in Bidding Data [attach copies] Participation with Other Companies as Joint Venture Branch of Specialization Field of Activities 1) 2) i.. Main field of activities:_______________________________________ Other field of activities:______________________________________ YES/ NO

6.

7.

8. 9.

Name and Address of Leading company (in case the Bidder is of joint venture) ________________________________________ (Name and Address of Head Office)

ii.

Attach Company Registration Certificate indicating Legal Status of Bidder and Power of Attorney for Bidder and all JV Partners.

I / We hereby declare that the We [Bidder].. is eligible to participate in the Bid; has no conflict of interest in the proposed bid procurement proceedings and has not been punished for the profession or businesses related offence.

Signature of Bidder: _________________________________________

25

FORM 1.2 EXPERIENCE RECORD OF BIDDER (To be submitted for Bidder and all J.V. Partners)

1.

Number of years organization has been in business as a contractor under present business name: __________ Number of years of experience in design, supply, delivery, installation, testing and commissioning of Remote Terminal Unit (RTU). a) b) As a Principal Contractor : __________________ As a Sub-contractor : _________________

2.

3.

Indicate number of projects undertaken in the last five years: a) b) c) Home country : (a) ________________ Nepal : (a) ________________ Elsewhere : (a) ________________

4.

Total Annual volume of Construction work performed in last five years Year . Year . Year . Year . Year . Amount of Work NRs Amount of Work NRs Amount of Work NRs Amount of Work NRs Amount of Work NRs

5.

Have you ever failed to complete any work awarded to you?

Yes/No

If yes, where and explain why? ________________________________________

Signature of the Bidder: ____________________________

26

FORM 1.3 PROJECTS COMPLETED BY BIDDER, J.V. PARTNERS (To be submitted for Bidder and all JV Partners for projects completed in last five years) Work performed as prime Contractor or member of a joint venture on works of a similar nature and volume over the last five years. The values should be indicated in Nepalese Rupees along with exchange rate used. Also list details of work under way or committed, including expected completion date.

Name of Project _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ ____________________ _____________________

Owner \ Country ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________

Description of Works / Agreement date Contract Amount ________________________ ________________________ ________________________ ________________________ ________________________ ________________________ ________________________ ________________________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________

Remaining Value __________ __________ __________ __________ __________ __________ __________ __________

Comm. Date _________ __________ __________ __________ __________ __________ __________ __________

Signature of Bidder : __________________________________

27

FORM 1.4 PROPOSED SUBCONTRACTORS AND FIRMS INVOLVED.

Proposed subcontracts and firms involved. Sections of the Works Value of subcontract Subcontractor name Subcontractor Address (including tel. and fax no.) Experience in similar work

1.

2.

Signature of the Bidder: ____________________________

28

FORM NO. 1.5 FINANCIAL STATUS OF BIDDER The Bidder and all JV partners shall fill in the blanks for each of the last three fiscal years. The amount shall be stated in NRs.

Financial information (NRs) 1. Total Asset 2. Current Asset 3. Total Liabilities 4. Current Liabilities 5. Profit before taxes 6. Profit after taxes 7. Turnover 8. Working Capital 3

Actual: in Previous Three Years 2 1

Exchange rate adopted for the equivalent

_______________________________________

29

Evidence of access to financial resources to meet the qualification requirements: cash in hand, lines of credit, etc. List below and attach copies of support documents. Credit facility: (list names of institutions and credit facilities (amount)) Name of Financing institution ____________________________________________ ____________________________________________ ____________________________________________ Amount of Credit Facility (Currency) ________________________ ________________________ ________________________

Attach Audit Report certified by Auditor and Original Letters of reference from banks and lime of credit, if necessary, and other information as per requirement of bidding document.

Signature of Bidder : _____________________________

30

FORM 1.6 ADDRESS OF BANK

Name, address, telephone and facsimile numbers of banks that may provide references if contacted by the Employer. Name 1. 2. Address Telephone/fax number E-mail address

31

FORM 1.7 Litigation History

Name of Bidder or Joint Venture:

Bidders, including each of the partners of joint venture, shall provide information on any history of litigation or arbitration resulting from contracts executed in the last five years or currently under execution. A separate sheet should be used for each partner of joint venture. Year Other Parties cause of litigation, and matter in dispute Disputed amount

Signature of Bidder : _____________________________

32

FORM 1.8 STATEMENT OF COMPLIANCE

1.

This invitation for Bids is open to all registered Bidders with qualifications as described in the bidding Data. Provide, a statement that the Bidder (including all members of a joint venture and subcontractors) is not associated, nor has been associated in the past, directly or indirectly, with the consultant or any other entity that has prepared the design, specifications and other documents for the Project or being proposed as Project Manager for the Contract. A firm that has been engaged by the Employer to provide consulting services for the preparation or supervision of the Works, and any of its affiliates, shall not be eligible to Bid.

2.

Signature of the Bidder: ____________________________

33

FORM 1.9 CONSTRUCTION SCHEDULE

A preliminary construction schedule showing the overall completion period required by the Project. The bidder shall prepare and attach a detailed construction schedule showing sequence of various activities (e.g. design, manufacture, supply, delivery, construction, installation, testing & commissioning). Completion period shall not exceed that of NEAs requirement.

Signature of the Bidder : ____________________________

34

FORM 2 JOINT VENTURE DATA

1.

Name of Joint Venture _________________________________________________________ Address of Head Office : ____________________________________________________________________ __________________________________________________________________

2.

3.

Name(s) of partner(s) (Details of partners shall be provided on separate sheets). (a) _________________________________________ (b) _________________________________________ (c)__________________________________________

4.

Joint Venture Agreement (a) (b) (c) Date of Agreement : _____________________ Place : ________________________________ Proposed distribution of responsibilities between partners: (a)____________% (In Percentage) (b)____________% (c)____________% (d) (e) Name of Leading Partner : ___________________________ Attach Joint Venture Agreement with the bid.

Signature of the Bidder : ____________________________

35

FORM 3 EXPERIENCE RECORD OF MANUFACTURER (To be submitted for Bidder and all J.V. Partners) (To be filled up by Bidder/Manufacturer) S. No. Description 1 1.1 Experience (To be filled in by manufacturer) Manufacturing experience At least 5 years Requirement Manufacturer's Status

1.2

Users' certificates

At least from 2 Users for twice the bid quantity

36

FORM 4 MANUFACTURER'S AUTHORIZATION CERTIFICATE (This certificate shall be on the letterhead of the Manufacturer & Original letter shall be submitted)

To :

Project Manager, (Name of Project)

WHEREAS (Name of the manufacturer)---------------------------------------------------------------who are established and reputable manufacturers of--------------------------------------------------------------------------------------------------------( name and/or description of the goods) having factories at ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ (address of factory) do hereby authorize ---------------------------------------------------------------------------------------------------------------- (name and address of Bidder ) to submit a Bid and subsequently negotiate and sign the contract with you against Tender No. for .. works for the above goods manufactured by us. We hereby extend our full guarantee and warranty as per the Conditions of Contract for the goods offered for supply by the above firm against this Invitation for Bids.

(Signature for and on behalf of Manufacturer)

Remark: The Bidder shall furnish authorization certificates in the above format for all equipment to be supplied. This certificate shall be on the letterhead of the manufacturer.

37

FORM 5 ISO 9001 CERTIFICATES

The bidder shall submit valid ISO 9001 certificates for the equipment as specified hereunder:

1. Remote Terminal Unit (RTU)

As specified in the Technical Specifications

Signature of Bidder : _____________________________

38

FORM 6 DECLARATION OF FIRM PRICE

The Bidder hereby declares that the prices quoted in the Price Schedules are firm i.e. price escalation is not applicable through the period of Bid validity / contract and any extension thereof as per the requirement of the bidding document.

Signature of Bidder : ____________________

39

FORM 7 DECLARATION OF LOCAL AGENT

1. 2.

Name of Local agent : _______________________________________________ Address & Telephone/Fax Number, email address of the Local agent: ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

3. 4. 5. 6.

Amount of commission: _________________________________________ Currency of payment: ___________________________________________ Method of payment : ___________________________________________ Other conditions of the Agreement (if any) : _________________________

Signature of the Bidder : _______

40

FORM 8 DEVIATIONS FROM SPECIFICATION

The Bidder shall state in this Schedule all deviations, including those on technical requirements, taken by the Bidder in their offer. Continuation sheets shall be used, if necessary.

CLAUSE NO .

ITEM

DESCRIPTION

Signature of Bidder: ______________________________

41

Letter of Intention to Award

[This letter should be in the letterhead paper of the Employer]

Date: To: [name and address of the Contractor] This is to notify you in accordance with the Instruction to Bidders that it is our intention to award the contract [name of the Contract and identification number, as given in the Contract Data and/or SCC] to you as your Bid price of [amount in numbers and words in Nepalese Rupees], as corrected and modified in accordance with the Instructions to Bidders, is determined to be substantially responsive and lowest evaluated Bid price. Authorized Signature:__________________________________________________ Name and Title of Signatory:_____________________________________________ Name of Agency:______________________________________________________

42

Letter of Acceptance
[Letterhead of the Employer]

Date: ________________________ To: [name and address of the contractor] This is to notify you that your bid dated [date] for execution of the [name of the Contract and identification number, as given in the Invitation to Bid] for the Contract Price of [insert the amount in Nepalese Rupees in numbers and words] as corrected and modified in accordance with the Instructions to Bidders is hereby accepted by our Agency. You are hereby instructed to contact our office [Office address] to sign the formal agreement on [date] at [time]. As per the Instructions to Bidders you are also required to submit Performance Security, as specified in the SCC, consisting of a Bank Guarantee in an approved format or cash deposit voucher in favor of the Employer in the Employer's Bank account as specified in the SCC. The Employer shall forfeit the bid security, in case you fail to furnish the Performance Security and to sign the contract. Please convey your unconditional acceptance by signing on the original of this letter and submit the required Performance Security, at the time of formal agreement.

Authorised Signature: Name: Designation:

43

Agreement
This Agreement, made the [day] day of [month], [year] between [name and address of Employer] (hereinafter called the Employer) and [name and address of contractor] (hereinafter called the contractor) of the other part. Whereas the Employer is desirous that the contractor execute [name and identification number of contract] (hereinafter called the Works) and the Employer has accepted the bid for ________________ [insert the amount in Nepalese Rupees in numbers and words] by the contractor for the execution and completion of such Works and the remedying of any defects therein. Now this Agreement witnesseth as follows: 1. In this Agreement, words and expressions shall have the same meanings as are respectively assigned to them in the Conditions of Contract hereinafter referred to, and they shall be deemed to form and be read and construed as part of this Agreement. 2. In consideration of the payments to be made by the Employer to the contractor as hereinafter mentioned, the contractor hereby covenants with the Employer to execute and complete the Works and remedy any defects therein in conformity in all respects with the provisions of the Contract. 3. The Employer hereby covenants to pay the contractor in consideration of the execution and completion of the Works and the remedying of defects wherein, the Contract Price or such other sum as may become payable under the provisions of the Contract at the times and in the manner prescribed by the Contract. In Witness whereof the parties thereto have caused this Agreement to be executed the day and year first before written. The Common Seal of .. was hereunto affixed in the presence of:.. Signed, Sealed, and Delivered by the said... in the presence of:. Binding Signature of Employer .. Binding Signature of Contractor.. [Addendum showing the corrections if any made during the bid evaluation should be attached with this agreement]

44

NepalElectricityAuthority DeclarationForm(forEbidding) Status

S.No Description Issuedto Issuedby Dateof (asapplicable) (asapplicable) Issue No.of Pages

1 2 3 4 5 6 7 8 9 10

NotarizedPowerofAttorneyfromtheCompanytoSignonCompany'sbehalf(ForSingle Bidder) JointVentureAgreement;Ifany NotarizedPowerofAttorneytoSigntheBidonCompany'sbehalf(EachPartnerincaseofJV) NotarizedPowerofAttorneytoSigntheBid(OnBehalfofJV) RegistrationCertificateoftheBidder(andeachpartnersincaseofJV) Bidsecurity PriceSchedule BidForm QualificationForms CompleteCertifiedAuditedReportoftheBidder(andeachpartnerin Year1

45

caseofJV)

Year2 Year3 1 2

11

Performance(oruser)Certificate/s(Bidder)

3 4 . 1 2

12

Manufacturer'sAuthorization/s

3 4 .

13

PowerofAttorneyfromtheCompanytoIssuetheManufacturersAuthorizationonCompany's behalf

46

1 2 14 BusinessLicenseofManufacturer/s 3 4 . 1 2 15 UserCertificate/s(Manufacturer) 3 4 . 1 2 16 ISOCertificate/s 3 4 . 17 TypeTestReport/s(ifrequiredasperspecification) 1

47

2 3 4 . 1 2 18 TechnicalDataSheet 3 4 . 1 2 19 OtherCertification(asperrequirements) 3 4 .

48

Section IV. General Conditions of Contract (GCC)

1. General Provisions
1.1 Definitions In the Contract as defined below, the words and expressions defined shall have the following meanings assigned to them, except where the context requires otherwise: 1.1.1 Contract means the Agreement signed between the Employer and the contractor and the other documents listed in the Special Conditions of Contract (SCC). Specification means the document as listed in the SCC, including Employers requirements in respect of design to be carried out by the contractor, if any, and any variation to such document. Drawings means the Employers drawings of the works as listed in the SCC, and any variation to such drawings. Bill of Quantities means the priced and completed bill of quantities forming part of the Tender. Bid or Tender means the contractors priced offer to the Employer for the execution and completion of the Works and the remedying of any defects therein in accordance with the provisions of the Contract, as accepted by the Letter of Acceptance. Letter of Acceptance means the formal acceptance by the Employer of the bid or Tender. Employer means the person named in the Agreement and the legal successors in title to this person, but not (except with the consent of the contractor) any assignee. Contractor means the person named in the Agreement and the legal successors in title to this person, but not (except with the consent of the Employer) any assignee. Party means either Employer or the contractor.

The Contract

1.1.2

1.1.3

1.1.4

1.1.5

1.1.6

Persons

1.1.7

1.1.8

1.1.9 Date, Times and Periods

1.1.10 "Commencement Date" means the date 14 days after the date the Agreement comes into effect or any other date agreed between the Parties. 1.1.11 "Day" means a calendar day. 1.1.12 "Time for Completion" means the time for completing the Works as stated in the SCC (or as extended under Sub-Clause 7.3), calculated from the Commencement Date.

Money and

1.1.13 "Cost" means all expenditure properly incurred (or to be

49

Payments

incurred) by the contractor, whether on or off the Site, including overheads and similar charges, but does not include profit. 1.1.14 Contract Priceis the price stated in the letter of Acceptance and thereafter as adjusted in accordance with the provisions of the Contract. 1.1.15 Retention Money means the aggregate of all monies retained by the Employer pursuant to Sub-Clause 11.3.

Other Definitions

1.1.16 Contractor's Equipment" means all apparatus, machinery, vehicles, facilities and other things required for the execution of the Works but does not include Materials or Plant. 1.1.17 "Country" means Nepal. 1.1.18 "Employer's Liabilities" means those matters listed in Sub-Clause 6.1. 1.1.19 "Force Majeure" means an exceptional event or circumstance: which is beyond a Party's control; which such Party could not reasonably have provided against before entering into the Contract; which, having arisen, such Party could not reasonably have avoided or overcome; and, which is not substantially attributable to the other Party. 1.1.20 "Materials" means things of all kinds (other than Plant) intended to form or forming part of the permanent work. 1.1.21 "Plant" means the machinery and apparatus intended to form or forming part of the Permanent Works. 1.1.22 "Site" means the places provided by the Employer where the Works are to be executed, and any other places specified in the Contract as forming part of the Site.

1.1.23 "Variation" is an instruction given by the Employer which varies the Works pursuant to Sub-Clause 10.1

1.1.24 "Works" means all the work and design (if any) to be performed by the contractor including temporary work and any Variation. 1.1.25 Permanent Works means the permanent works to be executed (Including Plant) in accordance with the Contract. 1.1.26 Temporary Works means all temporary works of every kind (other than contractors Equipment) required in or about the execution and completion of the Works and the

50

remedying of any defects therein. 1.1.27 Adjudication means the procedure to be adopted by the contractor and the Employer in solving the dispute if it is not solved amicably pursuant to Sub-Clause 15.1. 1.2 Interpretation Words importing persons or parties shall include firms and organisations. Words importing singular or one gender shall include plural or the other gender where the context requires. The documents forming the Contract shall to be taken as mutually explanatory of one another. If an ambiguity or discrepancy is found in the documents, the Employer shall issue any necessary instructions to the contractor, and the priority of the documents shall be in accordance with the order as listed in the SCC. The law of the Contract is stated in the SCC. Where provision is made for the giving or issue of any notice, instruction, or other communication by any person, unless otherwise specified such communication shall be written in the language stated in the SCC as shall not be unreasonably withheld or delayed. If a notice given pursuant to Sub-Clause 1.5 fails to be delivered due to failure to trace the address of the party then the notice shall be published as public notice in a National daily newspaper and when the notice is so published then the notice shall be considered to be delivered to the concerned party. 1.6 Statutory Obligations The contractor shall comply with the laws of the countries where activities are performed. The contractor shall give all notices and pay all fees and other charges in respect of the Works.

1.3

Priority of Documents

1.4 1.5

Law Communications

2. 2.1

The Employer Provision of Site Permits and Licenses The Employer shall provide the Site and right of access thereto at the times stated in the SCC. The Employer shall, if requested by the contractor, assist him in applying for permits, licences or approvals which are required for the Works. The contractor shall comply with all instructions given by the Employer in respect of the Works including the suspension of all or part of the Works. No approval or consent or absence of comment by the Employer or the Employer's representative shall affect the contractor's obligations.

2.2

2.3

Employer's Instructions

2.4

Approvals

3.

Employer's Representatives

51

3.1

Authorised Person

One of the Employer's personnel shall have authority to act for him. This authorised person shall be as stated in the SCC, or as otherwise notified by the Employer to the contractor. The Employer may also appoint a firm or individual to carry out certain duties. The appointee may be named in the SCC, or notified by the Employer to the contractor from time to time. The Employer shall notify the contractor of the delegated duties and authority of this Employer's representative.

3.2

Employer's Representative

4. 4.1

The Contractor General Obligations

The contractor shall carry out the Works properly and in accordance with the Contract. The contractor shall provide all supervision, labour, Materials, Plant and contractor's Equipment which may be required. All Materials and Plant on Site shall be deemed to be the property of the Employer. During continuance of the of the contract, the contractor and his sub-contractors shall abide at all times by all labour laws, including child labour related enactments, and rules made there under. A child who has not attained the age of fourteen (14) years shall not be employed in any work as a labourer.

4.2

Contractor's Representative

The contractor shall submit to the Employer for consent the name and particulars of the person authorised to receive instructions on behalf of the contractor. The contractor shall not subcontract the whole of the Works. The contractor shall not subcontract any part of the Works without the consent of the Employer. As stated in the SCC, the Contractor shall deliver to the Employer no later than the date specified in the Letter of Acceptance.

4.3

Subcontracting

4.4

Performance Security

5. 5.1

Design by Contractor Contractor's Design

The contractor shall carry out design to the extent specified, as referred to in the SCC. The contractor shall promptly submit to the Employer all designs prepared by him. Within 15 days of receipt, the Employer shall notify any comments or, if the design submitted is not in accordance with the Contract, shall reject it stating the reasons. The contractor shall not construct any element of the permanent work designed by him within 15 days after the design has been submitted to the Employer or where the design for that element has been rejected. Design that has been rejected shall be promptly amended and resubmitted. The contractor shall resubmit all designs commented on taking these comments into account as necessary. The contractor shall remain responsible for his tendered design and the design under this Clause, both of which shall be fit for the intended purposes defined in the Contract and he shall also remain responsible for any infringement of any patent or

5.2

Responsibility for Design

52

copyright in respect of the same. The Employer shall be responsible for the Specification and Drawings. 6. 6.1 Employer's Liabilities Employers Liabilities In this Contract, Employer's Liabilities mean: a. war, hostilities (whether war be declared or not), invasion, act of foreign enemies, within the Country, b. rebellion, terrorism, revolution, insurrection, military or usurped power, or civil war, within the Country, c. riot, commotion or disorder by persons other than the contractor's personnel and other employees, affecting the Site and/or the Works, d. ionising radiations, or contamination by radio-activity from ny nuclear fuel, or from any nuclear waste from the combustion of nuclear fuel, radio-active toxic explosive, or other hazardous properties of any explosive nuclear assembly or nuclear component of such an assembly, except to the extent to which the contractor may be responsible for the use of any radio-active material, e. pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds, f. use or occupation by the Employer of any part of the works, except as may be specified in the Contract, g. design of any part of the Works by the Employer's personnel or by others for whom the Employer is responsible, h. any operation of the forces of nature affecting the Site and/or the Works, which was unforeseeable or against which an experienced contractor could not reasonably have been expected to take precautions, i. Force Majeure, j. a suspension under Sub-Clause 2.3 unless it is attributable to the contractor's failure, k. any failure of the Employer, l. physical obstructions or physical conditions, other than climatic conditions, encountered on the Site during the performance of the Works, which obstructions or conditions were not reasonably foreseeable by an experienced contractor and which the contractor immediately notified to the Employer, m. any delay or disruption caused by any Variation, n. any change to the law of the Contract after the date of the contractor's offer as stated in the Agreement, o. losses arising out of the Employer's right to have the permanent work executed on, over, under, in or through any land, and to occupy this land for the permanent work, and p. damage which is an unavoidable result of the contractor's obligations to execute the Works and to remedy any defects.

7. 7.1

Time for Completion Execution of the Works The contractor shall commence the Works on the Commencement Date and shall proceed expeditiously and without delay and shall complete the Works within the Time for Completion.

53

7.2

Programme

The contractor shall submit to the Employer a programme for the Works within the time stated in the SCC Subject to Sub-Clause 10.3, the contractor shall be entitled to an extension to the Time for Completion if he is or shall be delayed by any of the Employer's Liabilities. The contractor shall submit an application to the Employer for extension of time, stating the causes for delay, 7 days before the expiry of the Contract completion date.On receipt of an application from the contractor, the Employer shall consider all supporting details provided by the contractor and shall extend the Time for Completion as appropriate.

7.3

Extension of Time

7.4

Liquidated Damages for Delay

If the contractor fails to complete the Works within the Time for Completion, the contractor's only liability to the Employer for such failure shall be to pay the amount stated in the SCC for each day for which he fails to complete the Works. The total amount of Liquidated damages shall not exceed the amount stated in the SCC. The Contractor shall be paid a Bonus calculated at the rate per calendar day stated in the SCC for each day that the Completion is earlier than the date for Time of Completion. The Employer shall certify that the Works are complete, although they may not be due to be complete. The total amount of Bonus shall not exceed the amount stated in the SCC.

7.5

Bonus

8. 8.1

Taking-Over Completion The contractor may notify the Employer when he considers that the Works are complete. The Employer shall notify the contractor when he considers that the contractor has completed the Works stating the date accordingly. Alternatively, the Employer may notify the contractor that the Works, although not fully complete, are ready for taking over, stating the date accordingly. The Employer shall take over the Works upon the issue of this notice. The contractor shall promptly complete any outstanding work and, subject to Clause 9, clear the Site.

8.2

Taking-Over Notice

9. 9.1

Remedying Defects Remedying Defects The Employer may at any time prior to the expiry of the period stated in the SCC, notify the contractor of any defects or outstanding work. The contractor shall remedy at no cost to the Employer any defects due to the contractor's design, materials, plant or workmanship not being in accordance with the Contract. The cost of remedying defects attributable to any other cause shall be valued as a Variation. Failure to remedy any defects or complete outstanding work within a reasonable time of the

54

Employer's notice shall entitle the Employer to carry out all necessary work at the contractor's cost. 9.2 Uncovering and Testing The Employer may give instruction as to the uncovering and/or testing of any work. Unless as a result of any uncovering and/or testing it is established that the contractor's design, materials, plant or workmanship are not in accordance with the Contract, the Contractor shall be paid for such uncovering and/or testing as a Variation in accordance with Sub-Clause 10.2.

10. 10.1

Variations and Claims Right to Vary The Employer may instruct Variations to increase or decrease the quantity of work or addition of new items or substitution of items included in the contract, if determined necessary due to technical reason during implementation of the contract. Variations shall be valued as follows: a. where appropriate, at rates in the Contract, or b. in the absence of appropriate rates, the rates in the Contract shall be used as the basis for valuation, c. at appropriate new rates, as may be agreed or which the Employer considers appropriate, or d. if the Employer so instructs, at day work rates set out in the SCC for which the contractor shall keep records of hours of labour and contractor's Equipment, and of Materials used. A Party shall notify the other as soon as he is aware of any circumstance which may delay or disrupt the Works, or which may give rise to a claim for additional payment. The contractor shall take all reasonable steps to minimise these effects. The contractor's entitlement to extension to Time for Completion or additional payment shall be limited to the time and payment which would have been due if he had given prompt notice and has taken all reasonable steps.

10.2

Valuation of Variations

10.3

Early Warning

10.4

Right to Claim

If the contractor incurs cost as a result of any of the Employer's Liabilities, the contractor shall be entitled to the amount of such cost. If as a result of any of the Employer's Liabilities, it is necessary to change the Works, this shall be dealt with as a Variation. The contractor shall submit the Employer an itemised make-up of the value of Variations and claims within 30 days of the instruction or of the event giving rise to the claim. The Employer shall check and if possible agree the value. In the absence of agreement, the Employer shall determine the value. and

10.5

Variation and Claim Procedure

11.

Contract Payment

Price

11.1

Valuation of the Works

The Works shall be valued as provided for in the SCC, subject to Clause 10.

55

11.2

Monthly Statements

The contractor shall be entitled to be paid at monthly intervals: a. the value of the Works executed, b. the percentage stated in the SCC of the value of Materials and Plant delivered to the Site at a reasonable time, subject to any additions or deductions which may be due. The contractor shall submit each month to the Employer a statement showing the amounts to which he considers himself entitled.

11.3

Interim Payments

Within 30 days of acceptance of each statement, the Employer shall pay to the contractor the amount shown in the contractor's statement less retention at the rate stated in the SCC, and less any amount for which the Employer has specified his reasons for disagreement. The Employer shall not be bound by any sum previously considered by him to be due to the contractor. One half of the retention shall be repaid by the Employer to the contractor within 15 days upon expiry of Defects Liability Period and the Project Manager has certified that all Defects notified by the Project Manager to the Contractor before the end of this period have been corrected. The remainder of the retention shall be paid by the Employer to the contractor within 15 days after submission of evidence document from the concerned Internal Revenue Office that the contractor has submitted his Income Returns. Within 45 days of the latest of the expiry of the defects liability period, the contractor shall submit a final account to the Employer together with any documentation reasonably required to enable the Employer to ascertain the final contract value. Within 30 days after the submission of this final account, the Employer shall pay to the contractor any amount due. If the Employer disagrees with any part of the contractor's final account, he shall specify his reasons for disagreement when making payment

11.4

Payment of First Half of Retention

11.5

Payment of Second Half of Retention

11.6

Final Payment

11.7 11.8

Currency Delayed Payment

Payment shall be in the currency stated in the SCC. The contractor shall be entitled to interest at the rate stated in the SCC for each day the Employer fails to pay beyond the prescribed payment period. (a) The Employer shall make advance payment to the contractor of the amounts stated in the SCC within 15 days, against provision by the contractor of an Unconditional Bank Guarantee in a form and by a bank acceptable to the Employer in amounts and currencies equal to the advance payment. The Guarantee shall remain effective until the advance payment has been repaid, but the amount of the

11.9

Advance Payment

56

Guarantee shall be progressively reduced by the amounts repaid by the contractor. Interest shall not be charged on the advance payment. (b) The contractor is to use the advance payment only to pay for Equipment, Plant, Materials and mobilization expenses required specifically for execution of the Contract. The contractor shall demonstrate that advance payment has been used in this way by supplying copies of invoices or other documents to the Employer/ Engineer. (c) Unless otherwise stated in the SCC, the advance payment shall be repaid through percentage deductions from the monthly certified statements in accordance with this clause. Deductions shall commence in the next monthly statement in which the value of work executed exceeds thirty (30%) percent of the initial Contract Amount less provisional sums, day works and VAT. Deduction shall be made at the amortization rate of thirty (30%) percent of the amount of each monthly statement until such time as the advance payment has been repaid completely, provided that the advance payment shall be completely repaid prior to the end of 90 % of the approved contract period. 11.10. Price Adjustment (a) Prices shall be adjusted for fluctuations in the cost of inputs in accordance with this clause only if provided for in the Special Conditions of Contract (SCC). If so provided, the amounts certified in each payment certificate, after deducting for Advance Payment, shall be adjusted by applying the respective price adjustment factor to the payment amounts due in each currency. A separate formula of the type indicated below applies to each payment price: P = A + B Im/Io where: P is the adjustment factor for the portion of the Contract Price payable in each payment certificate. A and B are coefficients9 specified in the SCC, representing the nonadjustable and adjustable portions, respectively, of the Contract Price payable in that specific currency; and Im is the index prevailing at the end of the month being invoiced and Io is the index prevailing 30 days before bid submission for inputs payable.

----------------------------------------------The sum of the two coefficients A and B should be 1 (one) in the formula. Normally, both coefficients may be the same in the formulae for all currencies, since coefficient A, for the nonadjustable portion of the payments, is a very approximate figure (usually 0.15) to take account of fixed cost elements or other nonadjustable components. The sum of the adjustments for each currency is added to the payment price.

57

(b) If the value of index is changed after it has been used in calculation, the calculation shall be corrected and an adjustment made in the next payment certificate. The index value shall be deemed to take account of all changes in cost due to fluctuations in costs (c) If, price adjustment provision is not specified pursuant to Subclause 11.10(a) then the Contract is subject to price adjustment only for construction material in accordance with this clause. If the Contract Agreement is concluded following the Invitation for National Level Bidding and after the signing of the Contract Agreement if the price of the construction materials stated in the SCC increase or decrease in an unexpected manner in excess of ten (10%) percent in comparison to the base price stated in the SCC, then the price adjustment for the increase or decrease of price of the construction material beyond 10% shall be made by applying the following formulas: For unexpected increase in price P =[R1 (R0 1,10)] Q For unexpected decrease in price P =[R1 (R0 0.90)] Q Where: P is price adjustment amount R1 is the present price of the construction material R0 is the base price of the construction material Q is quantity of the construction material consumed in construction during the period of price adjustment consideration (d) The Price Adjustment amount will be limited to a maximum `of 25% of the initial Contract Amount unless otherwise is specified in the SCC. (e) The Price Adjustment provision shall not be applicable if the contract is not completed in time due to the delay caused by the contractor or the contract is a Lump sum Contract or a Fixed Budget Contract. 11.11 Local Taxation & Value Added Tax a. The prices tendered by the Contractor shall include all taxes that may be levied in accordance to the laws and regulations in being in Nepal on the date 30 days prior to the closing date for submissions of Bids on the Contractors equipment, plant and materials acquired for the purpose of the Contract and on the services performed under the Contract. Nothing in the Contract shall relieve the Contractor from his responsibility to pay any tax that may be levied in Nepal on profits made by him in respect of the Contract. b. The Contract is not exempted from value added tax. An amount specified in the schedule of taxes shall be paid by the Contractor in the concerned VAT office within time frame specified in VAT regulation.

58

12.

Termination of Contract Default by Contractor If the contractor abandons the Works, refuses or fails to comply with a valid instruction of the Employer or fails to proceed expeditiously and without delay or is, despite a written complaint, in breach of the Contract, the Employer may give notice referring to this Sub-Clause and stating the default. If the contractor has not taken all practicable steps to remedy the default within 15 days after the contractor's receipt of the Employer's notice, the Employer may, by a second notice given within a further 22 days, terminate the Contract. The Contractor shall then demobilize from the Site leaving behind Materials and Plant and any contractor's Equipment which the Employer instructs in the second notice to be used until the completion of the Works.

12.1

12.2

Default by Employer

If the Employer fails to pay in accordance with the Contract, or is, despite a written complaint, in breach of the Contract, the contractor may give notice referring to this Sub-Clause and stating the default. If the default is not remedied within 7 days after the Employer's receipt of this notice, the contractor may suspend the execution of all or parts of the Works. If the default is not remedied within 30 days after the Employer's receipt of the contractor's notice, the contractor may, by a second notice given within a further 22 days, terminate the Contract. The contractor shall then demobilise from the Site.

12.3

Insolvency

If a Party is declared insolvent under any applicable law, the other Party may by notice terminate the Contract immediately. The contractor shall then demobilise from the Site leaving behind, in the case of the contractor's insolvency, any contractor's Equipment which the Employer instructs in the notice is to be used until the completion of the Works. Notwithstanding the above, the Employer shall be entitled to terminate the Contract in public interest, at any time at the Employers convenience, by giving notice of such termination to the contractor. After termination, the contractor shall be entitled to payment of the unpaid balance of the value of the Works executed and of the Materials and Plant reasonably delivered to the Site, adjusted by the following: a. any sums to which the contractor is entitled under SubClause 10.4, b. any sums to which the Employer is entitled, c. if the Employer has terminated under Sub-Clause 12.1 or 12.3, the Employer shall be entitled to a sum equivalent to 20% of the value of those parts of the Works not executed at the date of the termination, d. if the contractor has terminated under Sub-Clause 12.2 or 12.3, the contractor shall be entitled to the Cost of his

12.4

Termination by Convenience

12.5

Payment upon Termination

59

suspension and demobilisation together with a sum equivalent to 10% of the value of those parts of the Works not executed at the date of termination The net balance due shall be paid or repaid within 30 days of the notice of termination. 13. 13.1 Risk and Responsibility Contractor's Care of the Works The contractor shall take full responsibility for the care of the Works from the Commencement Date until the date of the Employer's notice under Sub-Clause 8.2. Responsibility shall then pass to the Employer. If any loss or damage occurs to the Works during the above period, the contractor shall rectify such loss or damage so that the Works conform to the Contract. Unless the loss or damage occurs as a result of an Employer's Liability, the contractor shall indemnify the Employer, the Employer's contractors, agents and employees against all loss or damage happening to the Works and against all claims or expense arising out of the Works caused by a breach of the Contract, by negligence or by other default of the contractor, his agents or employees. 13.2 Force Majeure If a Party is or shall be prevented from performing any of its obligations by Force Majeure, the Party affected shall notify the other Party immediately. If necessary, the contractor shall suspend the execution of the Works and, to the extent agreed with the Employer, demobilise the contractor's Equipment. If the event continues for a period of 90 days, either Party may then give notice of termination which shall take effect 30 days after the giving of the notice. After termination, the contractor shall be entitled to payment of the unpaid balance of the value of the Works executed and of the Materials and Plant reasonably delivered to the Site, adjusted by the following: a. any sums to which the contractor is entitled under SubClause 10.4, b. the Cost of his suspension and demobilisation, c. any sums to which the Employer is entitled. The net balance due shall be paid or repaid within 30 days of the notice of termination. 14. 14.1 Insurance Extent of Cover The contractor shall, prior to commencing the Works, effect and thereafter maintain insurances in the joint names of the Parties: a. for loss and damage to the Works, Materials, Plant and the contractor's Equipment, b. for liability of both Parties for loss, damage, death or injury to third parties or their property arising out of the

60

c.

contractor's performance of the Contract, including the contractor's liability for damage to the Employer's property other than the Works, and for liability of both Parties and of any Employer's representative for death or injury to the contractor's personnel except to the extent that liability arises from the negligence of the Employer, any Employer's representative or their employees.

14.2

Arrangements

All insurances shall conform with any requirements detailed in the SCC. The policies shall be issued by insurers and in terms approved by the Employer. The contractor shall provide the Employer with evidence that any required policy is in force and that the premiums have been paid. All payments received from insurers relating to loss or damage to the Works shall be held jointly by the Parties and used for the repair of the loss or damage or as compensation for loss or damage that is not to be repaired.

14.3

Failure to Insure

If the contractor fails to effect or keep in force any of the insurances referred to in the previous Sub-Clauses, or fails to provide satisfactory evidence, policies or receipts, the Employer may, without prejudice to any other right or remedy, effect insurance for the cover relevant to such default and pay the premiums due and recover the same as a deduction from any other monies due to the contractor.

15. 15.1

Resolution of Disputes Adjudication If any dispute shall arises out of or in connection with the Contract, including any valuation or other decision of the Employer, then the parties shall attempt to settle such dispute amicably within 15 days of the notification of the Employers decision. However if the dispute is not settled amicably or no attempt is made to settle the dispute amicably then the dispute shall be referred by either Party to adjudication in accordance with the attached Rules of Adjudication (The Rules). The adjudicator shall be any person agreed by the Parties. In the event of disagreement, the adjudicator shall be appointed in accordance with the Rules. If a Party is dissatisfied with the decision of the adjudicator or if no decision is given within the time set out in the Rules, the Party may give notice of dissatisfaction referring to this Sub-Clause within 30 days of receipt of the decision or the expiry of the time for the decision. If no notice of dissatisfaction is given within the specified time, the decision shall be final and binding on the Parties. A dispute which has been the subject of a notice of dissatisfaction, as per sub clause 15.2 shall be referred to a single arbitrator under the rules specified in the SCC. In the absence of agreement, the arbitrator shall be designated by the appointing authority specified in the SCC. Any hearing shall be

15.2

Notice of Dissatisfaction

15.3

Arbitration

61

held at the place specified in the SCC and in the language referred to in Sub- Clause 1.5. 16. Conduct of Bidders 16.1 The Bidder shall be responsible to fulfil his obligations as per the requirement of the Contract Agreement, Bidding documents, GoNs Procurement Act and Regulations. 16.2 The Bidder shall not carry out or cause to carryout the following acts with an intention to influence the implementation of the procurement process or the procurement agreement : h) i) j) k) l) give or propose improper inducement directly or indirectly, distortion or misrepresentation of facts engaging or being involved in corrupt or fraudulent practice interference in participation of other prospective bidders. coercion or threatening directly or indirectly to cause harm to the person or the property of any person to be involved in the procurement proceedings, m) collusive practice among bidders before or after submission of bids for distribution of works among bidders or fixing artificial/uncompetitive bid price with an intention to deprive the Employer the benefit of open competitive bid price.. n) contacting the Employer with an intention to influence the Employer with regards to the bid or interference of any kind in examination and evaluation of the bids during the period after opening of bids up to the notification of award of contract 17. Blacklisting Bidder 17.1 Without prejudice to any other right of the Employer under this Contract, GoN, Public Procurement Monitoring Office may blacklist a bidder for his conduct up to three years on the following grounds and seriousness of the act committed by the bidder: g) if it is proved that the bidder committed acts pursuant to the Sub Clause 16.2, h) if the bidder fails to sign an agreement pursuant to ITB Sub clause 28.4, i) if it is proved later that the bidder/contractor had committed substantial defect in implementation of the contract or had not substantially fulfilled his obligations under the contract or the completed work is not of the specified quality as per the contract , j) if convicted by a court of law in a criminal offence which disqualifies the bidder from participating in the contract. k) if it is proved that the contract agreement signed by the bidder was based on false or misrepresentation of bidders qualification information, l) other acts mentioned in the Bidding Data 17.2 A firm declared blacklisted and ineligible by the GoN shall be ineligible to bid for a contract during the period of time determined by the PPMO.

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Section V Special Conditions of Contract (SCC)

This SCC forms part of the Agreement

[Note: with the exception of the items for which the Employer's requirements have been inserted, the Bidder shall complete the following information before submitting his bid.]
Item Documents forming the Contract listed in the order of priority Clause 1.1.1 Data Document a) Agreement b) Letter of Acceptance c) Instructions to Bidders, Bidding Data d) Special Conditions of Contract e) General Conditions of Contract f) Technical Specification g) Technical Data Sheet h) Contractors Bid i) Bill of Quantities Six (6) months Applicable Law of Nepal English or Nepali On the commencement date To be informed at the time of agreement To be informed at the time of agreement

Time for Completion Law of Contract Language Provision of Site Authorised person Name and address of Employer's representative Performance security : Amount Requirements for contractors design (if any) Time for the submission of Programme Liquidated Damages for Delay Bonus or early completion (if any) Period for notifying defects

1.1.12 1.4 1.5 2.1 3.1 3.2 4.4

5 % of the contract price 5.1 As per Technical Specifications

7.2 7.4

Within 14 days of the commencement date 0.05% of Contract Price per day up to a maximum of 10% of sum stated in the Agreement Not Applicable 365 days calculated from the date stated in the notice under SubClause 8.2. Not Applicable At measurement with bid bill of quantities Not Applicable

7.5 9.1

Daywork rates (if any) Valuation of the Works Monthly statements

10.2(d) 11.1 11.2

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Payment

11.3

Replace the existing clause by the followings: Within 30 days of the commissioning of the RTU, the contractor shall submit his invoice to the Employer together with any documentation reasonably required. Within 30 days of acceptance of such invoice, the Employer shall pay to the contractor the amount shown in the contractor's statement less retention at the rate of 5% and less any amount for which the Employer has specified his reasons for disagreement. The Employer shall not be bound by any sum previously considered by him to be due to the contractor. The provisions of advance recovery deduction as specified in clause 11.9 shall also be taken into account during such payments. Income Tax Deduction From each progress bill, an amount, as determined by the prevalent rules and regulations of GOVERNMENT OF NEPAL, shall be deducted and deposited with the concerned Tax Department in the Country as a deposit towards Contractors income tax.

Payment of Second Half of Retention

11.5

Replace the existing clause by the followings: The remainder of the retention shall be paid by the Employer to the contractor within 15 days after submission of evidence document from the concerned Internal Revenue Office that the contractor has submitted his Income Returns custom clearance documents evidencing fulfillment of Contractor's obligations towards re-export of all returnable items as built drawings, equipment related software (for future adjustments / modifications), and operational and instructional manuals

Final Payment Currency of payment Rate of interest Advance Payment Price Adjustment Base Price Local Taxation & Value Added Tax

11.6 11.7 11.8 11.9 11.10 11.11(c)

Not Applicable Nepalese Rupees Not Applicable 10% of the initial contract price The Contract is not subject to price adjustment. Add the followings in sub-clause 11.11 (c ): The Contractor shall familiarize himself with the rules and regulations of Nepal with regard to customs, duties, taxes, clearing of goods and equipment, immigration and the like, and it will be

64

necessary for him to follow the required procedures regardless of the assistance as may be provided by the Employer wherever possible. The prices bid by the Contractor shall include all taxes, duties and other charges imposed outside the Employer's Country on the production, manufacture, sale and transport of Plants, Materials, supplies and the Contractor's Equipment to be used on or furnished under the Contract, and on the services performed under the Contract. The Employer will bear custom duty, VAT, any license fee and contribution levied by the Tax Department of GOVERNMENT OF NEPAL on above imported Plant and VAT (13%) on Plant procured directly from local manufacturers. Thirteen percent (13%) VAT will be levied on Construction and Installation. The Employer will pay this VAT to the Contractor on each bill and the Contractor shall be responsible for payment of the same to the concerned tax authority in the Country. In case the origin of Plants is India, the above provisions for payment of custom duties, taxes and VAT shall be applicable only under the following condition: the Plants shall be imported under Duty Refundable Procedure (DRP) Failure to comply with this regulation may result in imposition of full customs duties, VAT, etc. as per prevalent rules and regulations of GOVERNMENT OF NEPAL. The additional taxes and duties, including VAT, shall be borne by the Contractor.

The Contractor shall bear all costs in connection with importation on repatriation basis of Contractors Equipment and vehicles as per prevalent rules and regulations of GOVERNMENT OF NEPAL. If the Contractor disposes of any of the Contractor's Equipment or vehicles in Nepal, he will be obliged to pay all custom duties and taxes, fees and contribution payable under the rules and regulations of GOVERNMENT OF NEPAL in force at that time without reimbursement from the Employer. Such taxes and duties may also be deducted from any security amount deposited with the Customs Department or any monies / securities due the Contractor from the Employer. Income tax will be imposed on the Contractor, his Sub-Contractors and expatriate personnel in accordance with the Finance Act of GOVERNMENT OF NEPAL. The Contractor, his staff, and labor are liable to pay income taxes in Nepal in respect of their income, salaries and wages as are chargeable under the prevalent laws and regulations. The income tax will be levied on total Contract Price.

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Insurances

14.2

Type of Cover The Works. Material. Plant And Fees Contractors equipment

Amount to cover The Sum stated in the Agreement plus 15% Full Replacement Cost

Third Party injury to persons and damage to property

Workers

[Insert amount per person, number of persons and number of occurrences]

Adjudication

15.1

As per Labor Act of Nepal Appointing Authority: Nepal Council of Arbitration (NEPCA} Arbitration Rules : Nepal Council of Arbitration (NEPCA) Appointing Authority: Nepal Council of Arbitration (NEPCA) Place of Arbitration: Kathmandu Language: English, Nepali Add Clause 18 in GCC with following Sub Clauses: a) General The quality, workmanship and performance of all items and the Works or equipment (raw materials, components, intermediate assemblies and end products) shall be subject to inspections and tests by the Employer / Employer's Representative to the extent practicable, at the relevant locations and in any event prior to Taking Over. Unless otherwise directed, testing and inspection shall be done according to the best commercial method for the particular type and class of work. The Employer / Employer's Representative shall be entitled at all reasonable times before and during the periods of design, manufacture, shipment, site erection, commissioning and guarantee period to inspect, examine and test the design work, materials and workmanship of all work and equipment to be supplied under the Contract, and if part of the Work or equipment is being manufactured on other premises, the Contractor shall obtain for the Employer / Employer's Representative permission to inspect, examine and test as if the said Works or equipment were being manufactured on the Contractors premises. The inspection, examination or testing, if made, shall not release the Contractor from any responsibility and obligation under the Contract. Work and equipment not manufactured or erected in accordance with the Contract shall be removed by the Contractor at his own expense. Inspectors and other properly authorized representatives of the Employer / Employer's Representative shall be free at all times to perform their duties, and any intimidation or attempted intimidation

Arbitration

15.3

Inspection and Tests

18.

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of any one of them by the Contractor or by any of his employees or Sub-Contractor shall be sufficient reason, if the Employer so decides, for the termination of the Contract. The Contractor shall furnish all reasonable aid and assistance required by the Employer / Employer's Representative, or inspectors, for the proper inspection and examination of the Work and all parts thereof. For tests on the premises of the Contractor or of any Sub-Contractor or at Site (unless otherwise stated in the Specifications), the Contractor shall provide at his expense such as means of access, space, vehicles, machines, labor, materials, electricity, fuel, stores, apparatus and instruments, as well as make available the use of all Contractors facilities as may be required and as may be demanded reasonably to perform these tests efficiently. The Contractor shall analyze and test all materials and equipment, which the Employer / Employer's Representative requires to be analyzed or tested. Selection of samples for testing material or equipment shall be made by the Employer / Employer's Representative. The Contractor shall analyze and test these materials and equipment in the manner and at the time and place stated in the Contract Documents or required by the Employer / Employer's Representative in accordance with the provisions of the Contract. Under completion of manufacture at the factory, the Employer will depute his personnel to the Contractors factory to witness the fabrication, assembly and testing of any or all parts of the equipment and materials as specified in Sub-Clause 18.g of SCC. Unless waived in writing by the Employer / Employer's Representative or unless otherwise stated in the Specifications, all inspections and tests shall be made in the presence of the Employer / Engineer or inspector authorized by the Employer. Only those materials and parts of the Work and equipment, which have been approved by the Employer / Engineer shall be used and shipped. b) Cost of tests borne by the Contractor

Unless otherwise specified, all costs related to the fabrication, assembly and test or tests shall be arranged and borne by the contractor at its own cost. This shall apply to tests performed at the Site or elsewhere. c) Dates for inspection and testing

The Contractor shall agree with the Employer / Employer's Representative the date on and the place at which any Work will be ready for testing as provided in the Contract and if the Employer / Employer's Representative fails to attend at the place so named on the date agreed the Contractor may proceed with the tests, which shall be deemed to have been made in the Employer / Employer's Representative presence, and shall forthwith forward

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to the Employer / Engineer duly certified copies of the test readings. d) Facilities for testing

Where the Contract provides for tests on the premises of the Contractor or of any Sub-Contractor the Contractor shall provide such assistance, labor, materials, electricity, fuel, stores, apparatus and instruments as may be requisite and as may be reasonably demanded to carry out such tests efficiently. e) Rejection

If as a result of such inspection, examination or test of the Work the Employer / Employer's Representative shall decide that such Work is defective or not in accordance with the Contract he shall notify the Contractor accordingly stating in writing his objection and reasons therefore, the Contractor shall with all speed make good the defect or ensure that the Work complies with the Contract. Thereafter, if required by the Employer / Employer's Representative, the tests shall be repeated under the same terms and conditions and all expenses borne by the contractor. All costs incurred by the Employer by the repetition of the tests or false calls shall be borne by the Contractor. Any delay in delivery due to retest or false call shall not constitute a release of the Contractor for his responsibilities for delay. f) Commissioning

Commissioning shall be defined as those parts of the tests on completion which include the trial runs and operational tests to be carried out in order to put equipment into service under real operating conditions. Commissioning shall take place in accordance with the instructions of the manufacturers of the relevant parts of equipment. g) Inspection and Test at factory

The Employer will depute two Engineers to witness the factory test at Contractor's factory. Travelling expenses, per diem, accommodation, living and all other expenses incurred by such personnel during their visit for inspection shall be borne by the Contractor. The per diem allowance shall not be less than US$ 100 per person for a minimum period of seven days for each person.

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Section VI. Technical Specification

1. 1.1 GENERAL The major works to be carried out by the Contractor are: a. Design, supply, delivery, installation, testing and commissioning of Remote Terminal Unit (RTU) in Simara Substation. b. The works shall be complete with all accessories (power supply, Central Processing Unit, digital input / output card, GPS and others) for efficient and trouble-free operation as specified hereunder. Outline of existing SCADA system The Integrated Nepal Power System (INPS) is being supervised by Load Dispatch Centre (LDC) located at Siuchatar, Kathmandu. Computer based SCADA system of Siemens Germany "SINAUT Spectrum" (version 4.3.2) has been installed in the LDC Master-station for processing the data collected via RTU from power stations and substations spread over the country. The existing RTU are of ABB. 1.3 Equipment to be supplied under this Contract RTU to be supplied under the Contract shall be fully equipped for the actual amount of data to be acquired and commands to be executed, plus a spare capacity of 20% for each type of data. Each RTU shall be expandable in the field by the addition of Input and Output cards only. The design shall be such that, internal cabling/wiring, or power supplies shall not be necessary when expanding RTUs by adding I/O cards. The Supervisory Control & Data Acquisition (SCADA) System at the LDC shall scan the new RTU utilizing the fiber optical communication network provided in the Simara substation. The Contractor shall be responsible for the complete design, supply, installation, wiring, testing, commissioning and documentation of the new RTU, including any required new or parallel connections to NEAs equipment as described in this Specification, including synchronization with the existing SCADA equipment. The equipment to be furnished shall strictly be in accordance with the specifications. The qualified manufacturer should be a holder of ISO 9001 certificate (scope of work to include design) with minimum of 5 years experience in design and manufacturing of RTU. 1.4 Documentation As built drawings, equipment related operation software (for future adjustments / modifications), and operational and instructional manuals shall be submitted for all the delivered equipments. The required license shall also be delivered. The operation software shall be installed in the laptop computer to be provided by the Employer. 1.5 Training for the Operation Staff For the smooth operation and the maintenance aspect, the Contractor shall design and arrange a training programme for the Employers staff so as to make them competent enough to operate and

1.2

69

maintain the proposed equipment / system. This training shall be conducted at the Employers premises in Nepal. The cost of this training shall be included in the overall bid price. 1.6 Factory Tests All design tests, if required, and production tests shall be conducted in the presence of authorized representatives of the Employer, unless waived in writing by him. The Contractor shall notify the Employer at least fifteen (15) days in advance as to the date of the tests, and the place at which the tests are to be conducted so that arrangements may be made for his representative to be present. Prior to shipment of the equipment, the Contractor shall furnish the Employer five (5) certified copies of all design and production test reports. The Contractor shall provide all costs, appliances, apparatus, supervision, labor and services necessary to carry out all tests, unless specifically stated otherwise. 1.7 Data acquisition principles The RTU to be installed in Simara substation shall be used for control and data acquisition purpose as described below. Remote control

remote control of all 66 kV circuit breakers remote control of selected 11 kV circuit breakers (off-control only for load curtailment)

Status indications status indication of 66 kV circuit breakers status indication of 66 kV busbar and line isolators status indication of all 11 kV line feeders, as specified under Remote Control above, to be used for load shedding from the LDC

Alarms all 66 kV main protection trip indications (MPT) all 66 kV backup protection trip indications (BPT) one grouped alarm summarizing all causes that prevent operation of a circuit breaker (Circuit Breaker Fault Alarm, CBF) one grouped alarm summarizing all faults not affecting operation of a circuit breaker (Bay Fault Alarm, BFA) transformer alarms: "temperature alarm" (oil and winding temperature as grouped alarm) "temperature trip" (oil and winding temperature as grouped alarm) "Buchholz alarm" (tank and OLTC as grouped alarm) "Buchholz trip" (tank and OLTC as grouped alarm) "general alarm" (all other alarms except the above as one grouped alarm) "general trip" (all other alarms except the above as one grouped alarm) for all 66 kV and 11 kV busbars a voltage status alarm (BVS) general station alarms and warnings Station Urgent Fault (SUF) Station None-urgent Fault (SNF) RTU alarm (RTU)

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 Communication equipment alarm (COM) Station Control Disabled (SCD), etc.

A table summarizing the alarms to be acquired by LDC from each type of bay in the 66 kV network is shown below. Type of alarm Line bay Transformer bay MPT BPT BFA CBF Coupler Busbar bay MPT BPT BFA CBF Station

Main protection trip Back-up protection trip Bay fault Circuit breaker fault Auto-recloser operated Temperature alarm Temperature trip Buchholz alarm Buchholz trip General transformer/ reactor alarm General transformer/ reactor trip Busbar voltage status Station urgent fault Station none-urgent fault Station control disabled RTU alarm Communication alarm Total

MPT BPT BFA CBF

TAL TTR BAL BTR GTA GTT BVS SUF SNF SCD RTU COM 4 10 4 1 5

Measurements

busbar voltages (separate for each busbar and section) of all 66 kV busbars. active / reactive power for all 66 kV line feeders. all 66/11 kV transformers feeding into the distribution networks (at secondary side)

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1.8

single phase current measurements for all 11 kV lines participating in the load shedding scheme.

Interfacing works The existing 48 volts DC batteries, chargers and associated distribution equipment shall supply the new RTU supplied under the Contract.

2.

Functional requirements of Remote terminal units The new RTUs shall be programmable, with real-time clock, synchronized by an external source, and equipped with process input and output (I/O) modules, memory and data transmission equipment, etc. RTUs to be installed under the project shall provide at least the following functions:

single command outputs, double command outputs regulation command outputs e.g. raise/lower command outputs for transformer tap changer control analog setpoint transmission and output single, double and multiple state digital inputs analogue measured inputs metering pulse inputs for acquisition of energy meter values Sequential Event Recording (SER) with time stamping of events at the RTU RTU time synchronization self testing and diagnostic functions for detection and reporting of any error automatic re-starting function database and parameter setting by menu-controlled dialogues either from a local PC or directly from the LDC with downloading function.

Bidders shall inform about the different types of protocols available for the proposed RTUs, with their offer. 2.1 Telecontrols The RTUs shall have the capability for the SCADA system master station to select and control specified power system devices. The following power system devices will be controlled by the RTU:

2.2

two-state devices such as circuit breakers

Telecommands The RTUs shall ensure that only the correct output is selected for two state devices before command execution. Operation of control outputs shall be via a select-check-execute command sequence. The control sequence shall include the following:

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The SCADA system shall transmit a command message addressing the proper RTU and the control point within the RTU, and indicate the control action desired. The RTU shall initialize its control logic, reassemble the command message, and transmit the reassembled message to the SCADA system. The message sent to the SCADA system shall be generated by the RTU's point selection logic. The SCADA system shall check the returned message for validity and, if valid, shall issue an execute command to the RTU. The RTU shall operate the control point selected only after the execute command has been received.

The control action shall be executed only if the select-check-execute sequence is performed without error or interruption. The RTU shall reset its control logic upon any error in the sequence or if the execute command is not received within a pre-defined time after the command message is received at the RTU. The impedance of the output circuit shall be measured to detect jammed contacts. The point selection logic for the control output shall be designed to preclude operation of an unselected output under single component failure conditions. That is, no single component shall be capable of selecting and operating an output point by itself. In no case, any unwanted tele-command shall be given to the process in case of an RTU power failure. A test command (dummy breaker) shall be provided for the purpose of ensuring that the telecommand function is working correctly. The test command shall correspond to circuit breaker close/open command with back-indications on/off. The RTU communications protocol shall also support "immediate execute" contact outputs (where an operation can be commanded without the validity check and execute message exchange) for control output types such as On Load Tap Changer (OLTC) raise / lower command outputs. 2.3 Teleindications Teleindication refers to status information of operational equipment monitored by the system. Such teleindications include status information of switching devices, event information, alarms, etc. The RTU shall report teleindications by exception but shall also allow the SCADA system to demand - scan status data even if the data has not changed. 2.3.1 Status indications The status (open / closed) of two state devices such as circuit breakers, isolators or earthing switches shall be acquired by using suitable designs. These may, for example, be acquired by 2 independent, potential - free contacts or by 2 interposing relays, one for each position. Position indications shall be checked for validity and undefined states like open and closed (1 | 1) or neither open nor closed (0 | 0) shall be alarmed. The RTU shall provide for run-timemonitoring, adjustable to the HV equipment operation parameters, to avoid alarming of undefined states while the equipment (e.g. isolator) is operating.

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2.3.2

Alarms Alarms shall be acquired as single indications by appropriate designs via potential - free contacts. Telemeasurements In analogue measurands the information to the RTU is given in the form of an analogue current supplied by the output of an analog measuring transducer. The analog signals shall be converted to digital mode by an analog-to-digital converter, to which the inputs are connected. All inputs of a module shall be measured within one cycle, regardless of the number of inputs in use. Thus new points can be added to the RTU without reprogramming. Analog measurements shall be transmitted to the master station with 12 bits or 11 bits + sign bit.

2.4

2.5

Telemetering The transmission of integrated totals refers to the transmission of measurable quantities, which are integrated over a specified period of time. The integration shall take place before transmission.

2.6

Sequence of Event Recording (SER) The RTU shall be capable of Sequence-of-Events (SER) data collection at a time resolution less than the operating speeds of the power system devices. Any digital input points in the RTU may be assigned, programmable as an SER data point. In general, a breaker position change and any alarm from a protection device that has initiated a trip signal is defined as an event for SER. Multiple transitions of a device, such as the tripping and subsequent reclosing of a breaker, shall be considered as a series of separate events. Each time an event is detected, the RTU shall time-tag the event and store it together with the time-tag of the event for transmission to the SCADA system with the next scan. The buffer shall be sized to store, as a minimum, a number of events equal to three times the number of SER points implemented in the RTU. The time-tag recorded with each event shall be generated from a clock internal to the RTU. Separating capability The RTU shall be capable of correctly determining the sequence of events for which their occurrence is separated by >= 1 ms (separating capability class SP4 of IEC 870 - 4) Time resolution The resolution of the time tag shall be 10 ms.

2.7

Common time base The internal clock of each RTU shall be synchronized Contractor supplied and installed time synchronization source, such as a Global Positioning System (GPS). The synchronization shall be done periodically such that the time-tags in each RTU shall be within five milliseconds (5 ms) accuracy between all RTUs. Tenderers shall clearly indicate the method used for time synchronization and describe in detail how the required accuracy is achieved.

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In the RTU there shall be a digital output from which time synchronization messages can be forwarded to external devices. The frequency of the activation of the message shall be adjustable. 2.8 Data transmission The data transmission network is consist of dedicated data channels utilizing line fibre optic transmission media. The new RTUs shall be capable of utilizing different protocols on separate RTU communication ports. Communication protocols shall be implemented by modifiable firmware in the RTU. Reconfiguration of the RTU database may be necessary when an RTU's communications protocol is changed due to the difference in the functions supported by the protocol. The Contractor shall provide and implement a version of the standard IEC 870-5, 101 communications protocol which shall support all the functions specified in this document. The RTU protocol shall be non-proprietary for use within NEA. NEA shall be authorized to disclose the RTU protocol to third party suppliers.

3.

Equipment characteristics For general technical requirements such as environmental conditions, construction and test requirements, e.g. dielectric strength and disturbance withstand, reference shall made to the standard specified in IEC standards.

3.1 3.1.1

Remote terminal units hardware Enclosures The Contractor shall provide enclosures meeting the following requirements:

3.1.2

Swing racks supported by heavy gauge hinges shall be provided so that only front access to components and wiring is required for routine maintenance and troubleshooting. Provisions for top and bottom cable entry. Cable entries shall be provided with protection against insect and animal entry, and sealed to prevent dust and sand contamination. Suitable signal and safety ground networks within the enclosure. Convenience outlets at 230 V AC shall be provided.

Power supply The Contractor shall supply any hardware required to convert the 48 V battery voltage to the required internal voltages for the RTU hardware. The RTUs shall be capable of operating with ungrounded or grounded (either polarity) input power. In RTU DC distribution, Miniature Circuit Breakers (MCBs) with alarm contacts shall be used, i.e. fuses are not accepted.

3.1.3

Interconnections All connections between the RTUs termination facilities and signal wiring shall be through barrierterminal blocks with knife-switch isolation, mounted in the RTU panel or an adjacent marshalling cabinet. Terminal blocks shall be screw-type, with full depth insulating barriers.

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3.1.4

Distributed RTUs RTU shall have the capability to gather data from other smaller or distributed RTUs or local intelligent substation instrumentation using directly connected RS-232C channels with or without modems. Digital inputs The digital inputs shall be opto-isolated, signal voltage 48 V DC. Other lower voltages shall also be possible by changing the matching resistor in the input circuit. Contact bouncing of the interposing relays shall be filtered. The bounce filtering time shall be 7 ms. Input circuits with selectable bounce filtering time setting are preferred. The indications shall preserve the chronological order of events inside the RTU. The resolution time requirement is 10 ms Oscillating inputs as a result of, e.g. a faulty relay chattering, shall be blocked locally at the RTU. Each Digital input card shall have 16 digital inputs and LED indications shall be provided in the front side of card for easy monitor of digital input status.

3.1.5

3.1.6

Analogue inputs In analogue measurements, the information to the analog input modules of the RTU is given in the form of analog current supplied by the output of measuring transducers. In analog input modules, the following current input ranges shall be available:

unipolar 0-1 mA, 0-5 mA, 0-10 mA, 4-20 mA bipolar +/- 1 mA, +/- 5 mA. +/- 10 mA. +/-2.5 mA.

It shall be possible to change the input range for each individual input, preferably by software means, instead of changing the input resistor. The analog input circuit shall have a precise DC impedance less than 200 ohms for current inputs. This impedance must not vary more than half of the accuracy of the Analog to Digital Converter (ADC) with influence values such as temperature, etc. In the input circuit, galvanic isolation shall be provided from mechanical earth and electrical earth, and, preferably, between different inputs. The circuits of the analog input module shall be protected against disturbances caused by switching transients and against disturbances at power and RF frequencies present at outstations. The scanning of each input shall not introduce any error on the analog information. For each input it must be possible, without disturbing the other inputs,

to isolate the input from the ADC and close the analog circuit, to connect, on the ADC side, a test set for maintenance or adjustments, to measure the analog input value without disturbing the measurement (addition of an mA meter over a link which is then disconnected).

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The analog information shall be converted into digital value by the ADC which can be common for all inputs. Analog measurements shall be transmitted to the master station with at least 11 bits + sign bit. The total accuracy must be better than 0.5% of the nominal range of a measurement calculated from RTUs analog input up to LDC. A calculation of the total accuracy in the wide sense as well as in the restricted sense as per IEC 60870 4 shall be included in the Tender. The input circuits must withstand a permanent overload of 30% without any damage. In case of input overload the output message shall be either

3.1.7

the exact value corresponding to the input or the maximum value that is possible to code (with the correct sign).

Pulse inputs The counter register shall be 16 bit. The maximum input frequency shall be 25 Hz. In practice, the pulses will be dimensioned in ways that max. frequency is less than 5 Hz. Interposing relays will not be used. RTU firmware requirements The RTUs shall meet the following characteristics of the firmware (PROM-based software) to support the functions of the RTUs. The Contractor shall use standard firmware as much as possible. All firmware shall be completely and consistently documented. It shall not be necessary to perform modification to firmware, logic, or data for expansion within the sizing parameters defined for the RTU. At the time the RTU is accepted, all firmware delivered must be up to date and in final form, including all standard firmware changes and field changes initiated by the Contractor or the Contractors suppliers prior to acceptance. The firmware documentation must reflect these changes.

3.2

3.2.1

Initialization / restart program Firmware shall be provided to enable the RTU to restart itself upon manual request and automatically under the conditions of power restoration, memory parity errors, and hardware failures. The firmware shall initialize the RTU and begin execution of the RTU functions without intervention by the SCADA system. RTU restarts shall be reported to the SCADA system. Fail safe processing In the case of irrecoverable faults such as power supply failures, firmware malfunctions, or any other detected condition that may affect the security of indications and controls, the RTU shall place itself in a secure state that prohibits the transmission of false indications or the execution of erroneous control outputs. The detection of these error conditions shall be the responsibility of the RTUs self-test and operations monitoring firmware. Database maintenance The Contractor shall supply software to configure each RTUs database where this information is located in software and/or firmware at the RTU. The software shall completely generate or modify the database of the RTUs. The database software shall have error detection services and shall produce a printed listing of the input data and the resulting RTU database configuration.

3.2.2

3.2.3

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3.2.4

Down loading of database from SCADA system The RTU shall support the change of the RTU's configuration and processing parameters by messages from the SCADA system. These changes shall include, but not be limited to analog limits, SER point allocation and buffer definitions. Diagnostic firmware The Contractor shall supply diagnostic firmware for both off-line local tests and on-line selfdiagnostic capability built into the RTU. The RTU shall enter an off-line state during the execution of off-line diagnostics, and this off-line state shall be reported to the SCADA system. The RTU shall include a remote diagnostics communication port and shall be capable of executing off-line diagnostics from an external computer terminal connected to this remote diagnostics port.

3.2.5

4. 4.1

RTU performance requirements Availability An availability of 99.9% shall be required for RTUs, exclusive for communication channel availability. An RTU shall be considered unavailable when:

any function is lost for all points of a single type one input card or output card of each type fails more than one input card or output card of the same type fails.

4.2 Maintainability The RTU design shall facilitate isolation and correction of all failures. The following features which promote rapid problem isolation and replacement of failed components shall be included:

self-diagnostic capabilities continuously monitoring operation of RTUs on-line error detection capabilities including detection of memory, CPU, communication faults, and input/output errors and failures with detailed reporting of detected errors to the SCADA system. local indication of RTU failures.

4.3 Message security Each message transmitted shall include an error detection code to exclude erroneous messages being accepted as valid.

5.

QUANTITIES OF DIGITAL INPUT, DIGITAL OUTPUT AND ANALOGUE INPUT SIGNALS Type of signals Digital input Analogue input Digital output Req. Qty 83 20 18 20% spare 17 4 4 Total 100 24 22

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Section VII. Technical Data Sheet

Item: Remote Terminal Unit (RTU) Item/Description Remote Terminal Unit Unit Required Data Offered Data

Manufacturer Type of transmission system Transmission speed Max. system capacity Bit/s 50 - 19200

single-point commands set-point commands (4 decades) single-state indications continuously measured values meter readings (6 decades) sec sec sec % @9600 bd

Transmission time

single-point commands single-state indications measured value correction

Permissible signal distortion for safe operation

Data priority facilities

Yes

Accuracy of the entire measuring loop

metering transducers transmission equipment indicators

Measured value-input

max. % mA mA

output at 1 Ohm load impedance digital output

Power supply voltage Power consumption Mode of operation

V D.C. W

24 - 60

commands indications measured values

Pulse train code

Yes Yes Yes IEC 870-5-101 or equivalent

79

address-bloc information-block, indications measured values commands metering readings check bits

Yes Yes Yes Yes Yes Yes

Hamming distance Remote terminal capacity:

Total number of analog inputs Total number of status inputs

(one/switch)

Total number of status with memory

inputs

Total number of alarm inputs Total number of MWH and MVARH

accumulator inputs

Total number of control outputs Total number of pulse outputs *)

*) Outputs is defined as: one output/switch or breaker Dimension of cabinets (packs) completely equipped and wired

height width depth

cm cm cm

80

Section VIII. Bill of Quantities

81

Section IX. Forms of Securities

Bid Security (Bank Guarantee)
Whereas, [name of Bidder] (hereinafter called the Bidder) has submitted his bid dated [date] for the construction of [name of Contract] (hereinafter called the bid). Know all people by these presents that We [name of Bank] of [name of country] having our registered office at [address] (hereinafter called the Bank) are bound unto [name of Employer] (hereinafter called the Employer) in the sum of [amount] for which payment well and truly to be made to the said Employer, the Bank binds itself, its successors, and assigns by these presents. Sealed with the Common Seal of the said Bank this [day] day of [month], [year]. The conditions of this obligation are: (1) If, after bid opening, the Bidder withdraws his bid during the period of bid validity specified in the Form of Bid; or (2) If the Bidder having been notified of the acceptance of his bid by the Employer during the period of bid validity: (a) fails or refuses to execute the Form of Agreement in accordance with the Instructions to Bidders, if required; or (b) fails or refuses to furnish the Performance Security, in accordance with the Instruction to Bidders; or (c) does not accept the correction of the bid, we undertake to pay to the Employer up to the above amount upon receipt of his first written demand, without the Employers having to substantiate his demand, provided that in his demand the Employer will note that the amount claimed by him is due to him owing to the occurrence of one or any of the three conditions, specifying the occurred condition or conditions. This Guarantee will remain in force up to and including the date [number] days after the deadline for submission of bids as such deadline is stated in the Instructions to Bidders or as it may be extended by the Employer, notice of which extension(s) to the Bank is hereby waived. Any demand in respect of this Guarantee should reach the Bank not later than the above date. Date __________________ Signature of the Bank_________________________________ Witness _____________________________Seal___________________________________ ___________________________________________________________________________ [signature, name, and address]

82

Performance Bank Guarantee

To: [name and address of Employer] Whereas [name and address of contractor] (hereinafter called the contractor) has undertaken, in pursuance of Contract No. [number] dated [date] to execute [name of Contract and brief description of Works] (hereinafter called the Contract); And whereas it has been stipulated by you in the said Contract that the contractor shall furnish you with a Bank Guarantee by a recognized bank for the sum specified therein as security for compliance with his obligations in accordance with the Contract; And whereas we have agreed to give the contractor such a Bank Guarantee; Now therefore we hereby affirm that we are the Guarantor and responsible to you, on behalf of the contractor, up to a total of [amount of Guarantee] [amount in words]3 such sum being payable in the types and proportions of currencies in which the Contract Price is payable, and we undertake to pay you, upon your first written demand and without cavil or argument, any sum or sums within the limits of [amount of Guarantee]4 as aforesaid without your needing to prove or to show grounds or reasons for your demand for the sum specified therein. We hereby waive the necessity of your demanding the said debt from the contractor before presenting us with the demand. We further agree that no change or addition to or other modification of the terms of the Contract or of the Works to be performed there under or of any of the Contract documents which may be made between you and the contractor shall in any way release us from any liability under this Guarantee, and we hereby waive notice of any such change, addition, or modification. This Guarantee shall be valid for at least 30 days beyond the date of issue of Defects Liability Certificate. Signature and seal of the Guarantor_______________________________________________ Name of Bank________________________________________________________________ Address_____________________________________________________________________ Date_____________________________

83

Bank Guarantee for Advance Payment

To: [name and address of Employer] [name of Contract]

Gentlemen: In accordance with the provisions of the Conditions of Contract, Sub clause 11.9 (Advance Payment) of the above-mentioned Contract, [name and address of contractor] (hereinafter called the contractor) shall deposit with [name of Employer] a Bank Guarantee to guarantee his proper and faithful performance under the said Clause of the Contract in an amount of [amount of Guarantee] [amount in words] We, the [Bank or Financial Institution], as instructed by the contractor, agree unconditionally and irrevocably to guarantee as primary obligator and not as Surety merely, the payment to [name of Employer] on his first demand without whatsoever right of objection on our part and without his first claim to the contractor, in the amount not exceeding [amount of Guarantee] [amount in words] We further agree that no change or addition to or other modification of the terms of the Contract or of Works to be performed there under or of any of the Contract documents which may be made between [name of Employer] and the contractor, shall in any way release us from any liability under this Guarantee, and we hereby waive notice of any such change, addition, or modification. The validity period of the guarantee shall be 30 days beyond the period scheduled for repayment of the advance payment and the guarantee shall remain valid and in full effect from the date of the advance payment under the Contract until the [name of Employer] receives full repayment of the same amount from the Contractor.

Yours truly, Signature and seal:____________________________________________________________ Name of Bank/Financial Institution:_______________________________________________ Address:_____________________________________________________________________ Date:____________________________

84

Section X. Rules for Adjudication

Referred to in GCC Sub-Clause 15.1 General 1. Any reference in the Conditions of Contract to the Rules for Adjudication shall be deemed to be a reference to these Rules. 2. Definitions in the Contract shall apply in these Rules. Appointment of Adjudicator 3. The Parties shall jointly ensure the appointment of the Adjudicator. The Adjudicator shall be a suitably qualified person. 4. If for any reason the appointment of the Adjudicator is not agreed at the latest within 15 days of the reference of a dispute in accordance with these Rules, then either Party may apply, with a copy of the application to the other Party, to any appointing authority named in the Contract or, if none, to the President of Nepal Council of Arbitration (NEPCA) or his nominee, to appoint an Adjudicator, and such appointment shall be final and conclusive. 5. The Adjudicator's appointment may be terminated by mutual agreement of the Parties. The Adjudicator's appointment shall expire when the Works have been completed or when any disputes referred to the Adjudicator shall have been withdrawn or decided, whichever is the later. Terms of Appointment 6. The Adjudicator is to be, and is to remain throughout his appointment, impartial and independent of the Parties and shall immediately disclose in writing to the Parties anything of which he becomes aware which could affect his impartiality or independence. 7. The Adjudicator shall not give advice to the Parties or their representatives concerning the conduct of the project of which the Works form part other than in accordance with these Rules. 8. The Adjudicator shall not be called as a witness by the Parties to give evidence concerning any dispute in connection with, or arising out of, the Contract. 9. The Adjudicator shall treat the details of the Contract and all activities and hearings of the Adjudicator as confidential and shall not disclose the same without the prior written consent of the Parties. The Adjudicator shall not, without the consent of the Parties, assign or delegate any of his work under these Rules or engage legal or technical assistance. 10. The Adjudicator may resign by giving 30 days' notice to the Parties. In the event of resignation, death or incapacity, 85

termination or a failure or refusal to perform the duties of Adjudicator under these Rules, the Parties shall agree upon a replacement Adjudicator within 15 days or Rule 4 shall apply. 11. The Adjudicator shall in no circumstances be liable for any claims for anything done or omitted in the discharge of the Adjudicator's duties unless the act or omission is shown to have been in bad faith. 12. If the Adjudicator shall knowingly breach any of the provisions of Rule 6 or act in bad faith, he shall not be entitled to any fees or expenses hereunder and shall reimburse each of the Parties for any fees and expenses properly paid to him if, as a consequence of such breach any proceedings or decisions of the Adjudicator are rendered void or ineffective. Payment 13. The Adjudicator shall be paid the fees and expenses set out in the Adjudicator's Agreement. 14. The retainer fee, if applicable, shall be payment in full for: (a) being available, on 28 days' notice, for all hearings and Site visits; (b) all office overhead expenses such as secretarial services, photocopying and office supplies incurred in connection with his duties; (c) all services performed hereunder except those performed during the days referred to in Rule 15. 15. The daily fee shall be payable for each working day preparing for or attending Site visits or hearings or preparing decisions including any associated travelling time. 16. The retainer and daily fees shall remain fixed for the period of tenure of the Adjudicator. 17. All payments to the Adjudicator shall be made by the contractor who will be entitled to be reimbursed half by the Employer. The contractor shall pay invoices addressed to him within 30 days of receipt. The Adjudicator's invoices for any monthly retainer shall be submitted quarterly in advance and invoices for daily fees and expenses shall be submitted following the conclusion of a Site visit or hearing. All invoices shall contain a brief description of the activities performed during the relevant period. The Adjudicator may suspend work if any invoice remains unpaid at the expiry of the period for payment, provided that 7 days prior notice has been given to both Parties. 18. If the contractor fails to pay an invoice addressed to it, the Employer shall be entitled to pay the sum due to the Adjudicator 86

and recover the sum paid from the contractor. Procedure for Obtaining Adjudicator's Decision 19. A dispute between the Parties may be referred in writing by either party to the Adjudicator for his decision, with a copy to the other Party. If the Adjudicator has not been agreed or appointed, the dispute shall be referred in writing to the other Party, together with a proposal for the appointment of an Adjudicator. A reference shall identify the dispute and refer to these Rules. 20. The Adjudicator may decide to visit the Site. The Adjudicator may decide to conduct a hearing in which event he shall decide on the date, place and duration for the hearing. The Adjudicator may request that written statements from the Parties be presented to him prior to, at or after the hearing. The Parties shall promptly provide the Adjudicator with sufficient copies of any documentation and information relevant to the Contract that he may request. 21. The Adjudicator shall act as an impartial expert, not as an arbitrator, and shall have full authority to conduct any hearing as he thinks fit, not being bound by any rules or procedures other than those set out herein. Without limiting the foregoing, the Adjudicator shall have power to: a. decide upon the Adjudicator's own jurisdiction, and as to the scope of any dispute referred to him, b. make use of his own specialist knowledge, if any, c. adopt an inquisitorial procedure, d. decide upon the payment of interest in accordance with the Contract, e. open up, review and revise any opinion, instruction, determination, certificate or valuation, related to the dispute, f. refuse admission to hearings to any persons other than the Employer, the contractor and their respective representatives, and to proceed in the absence of any Party who the Adjudicator is satisfied received notice of the hearing. 22. All communications between either of the Parties and the Adjudicator and all hearings shall be in the language of the Adjudicator's Agreement. All such communications shall be copied to the other Party. 23. No later than the sixty day after the day on which the Adjudicator received a reference or, if later, the day on which the Adjudicator's Agreement came into effect, the Adjudicator shall give written notice of his decision to the Parties. Such decision shall include reasons and state that it is given under these Rules.

87

Adjudicator's Agreement
Identification of Project:

___________________________________________________________________________ (the "Project")

Name and address of the Employer:

___________________________________________________________________________ (the "Employer")

Name and address of contractor:

___________________________________________________________________________ (the "contractor")

Name and address of Adjudicator:

___________________________________________________________________________ (the "Adjudicator") Whereas the Employer and the contractor have entered into a contract ("the Contract") for the execution of the Project and wish to appoint the Adjudicator to act as adjudicator in accordance with the Rules for Adjudication ["the Rules"]. The Employer, Contractor and Adjudicator agree as follows: 1. The Rules and the dispute provisions of the Contract shall form part of this Agreement. 2. The Adjudicator shall be paid: A retainer fee of ________________________________________ per calendar month (where applicable) A daily fee of __________________________________________ Expenses (including the cost of telephone calls, courier charges, faxes and telexes incurred in connection with his duties; all reasonable and necessary travel expenses, hotel accommodation and subsistence and other direct travel expenses). Receipts will be required for all expenses. 88

3.

The Adjudicator agrees to act as adjudicator in accordance with the Rules and has disclosed to the Parties any previous or existing relationship with the Parties or others concerned with the Project. This Agreement shall be governed by the law of Nepal. The language of this Agreement shall be English [or in Nepali if both parties agrees].

4. 5.

SIGNED BY _________________________________________ for and on behalf of the Employer in the presence of Witness _____________________________________ Name ___________________________________________ Address ___________________________________________ Date ___________________________________________ SIGNED BY ____________________________________ for and on behalf of the contractor in the presence of Witness ___________________________________________ Name ___________________________________________ Address ___________________________________________ Date ___________________________________________ SIGNED BY ________________________________________ for and on behalf of the Adjudicator in the presence of Witness ___________________________________________ Name ___________________________________________ Address ___________________________________________ Date _________________________________________

89