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© 2015 Navigant Consulting (Europe) Ltd. Page I

Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project

Request for Proposal for the Supply of LNG

Issued by:

National Electric Power Company of Jordan

07 June 2015

© 2015 Navigant Consulting (Europe) Ltd. Page II


Acronyms

bcf/d Billion Cubic Feet Per Day

FSRU Floating Storage and Regasification Unit

GWh Gigawatt Hour

IPP Independent Power Producer

JGTP Jordan Gas Transmission Pipeline

JKM Japan/Korea Marker

LNG Liquefied Natural Gas

LNGC Liquefied Natural Gas Carrier

MMBtu Million British Thermal Units

mmscf/d Million Standard Cubic Feet Per Day

MSA Master Sale and Purchase Agreement

MW Megawatt

NBP National Balancing Point (United Kingdom)

NEPCO National Electric Power Company

RfP Request for Proposal

© 2015 Navigant Consulting (Europe) Ltd. Page III


Disclaimer

This Request for Proposal (RfP) has been prepared by Navigant Consulting (Europe) Ltd (Navigant) for the

National Electric Power Company of Jordan, to invite proposals for the supply of LNG to be delivered to

NEPCO’s import facility that will shortly be commissioned at Aqaba, Jordan.

Although the information contained herein has been obtained from sources believed to be reliable, NEPCO and

Navigant expressly disclaim any and all liability for incomplete or inaccurate information, or representations

expressed or implied, contained in, or omitted from, the RfP or any other written or oral or electronic media

communication transmitted or made available to any recipients of this RfP. NEPCO AND NAVIGANT

MAKE NO EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO THE COMPLETENESS OF

ANY FINANCIAL OR OTHER DATA CONTAINED HEREIN. NEPCO and Navigant also expressly

disclaim all liability, including, without limitation, liability for misrepresentation, negligence or otherwise

arising from any recipient's reliance upon the accuracy or completeness of the information contained in this

RfP.

Each recipient of this RfP must rely upon its own investigations and evaluations to establish its own

conclusions as to the merits of the opportunity. This RfP is provided for information only and is not intended to

be, and must not be, taken as the basis for any investment decision. In making an investment decision,

prospective Bidders must rely on their own examination of the opportunity including the merits and risks

involved.

This RfP must be treated in the strictest confidence and may not be used for any other purpose or be reproduced,

disclosed or distributed by any party receiving a copy to any other party without the express prior written

consent of NEPCO.

Prospective Bidders are not to construe the contents of the RfP as tax or legal advice. No professional, financial

or legal adviser or any Government authority identified herein or any other independent third party has

independently verified or advised on the accuracy or completeness of this RfP, the information presented herein,

or the applicable laws of any jurisdiction. Neither do any of the above assume any responsibility for the contents

of the RfP. Prior to making a bid for the supply of LNG, any prospective Bidder should consult with its own

legal, business and tax advisors to determine the appropriateness and consequences of bidding for the supply of

LNG.

The delivery of this RfP at any time does not imply that the information contained herein is correct at any time

subsequent to its date. NEPCO reserves the right to supplement or amend the information contained herein at

any time. Neither NEPCO nor its advisors have any obligation to update or otherwise revise any information in

this RfP including, without limitation, any projections, including any revisions to reflect changes in economic

conditions or other circumstances arising after the date hereof or to reflect the occurrence of unanticipated

events, even if the underlying assumptions do not come to fruition.

© 2015 Navigant Consulting (Europe) Ltd. Page IV


Table of Contents

Section A: Instructions to Bidders .................................................................................... 1

1. Overview of Tender Process ..................................................................................... 2

1.1 Introduction .................................................................................................................................. 2 1.2 Prerequisite for Bidding .............................................................................................................. 2 1.3 Bid Summary ................................................................................................................................ 2 1.4 Bid Timetable ................................................................................................................................ 3 1.5 Bid Instructions ............................................................................................................................. 3 1.6 Bid Requirements ......................................................................................................................... 9

Section B: Forms ................................................................................................................. 11

1. Bid Letter .................................................................................................................... 12

2. Confirmation Notice................................................................................................. 14

3. Form of Performance Guarantee ............................................................................ 15

© 2015 Navigant Consulting (Europe) Ltd. Page 1


Section A: Instructions to Bidders



1. Overview of Tender Process

1.1 Introduction

National Electric Power Company of Jordan (NEPCO) hereby invites bids for the supply of

Liquefied Natural Gas (LNG) to be delivered to NEPCO’s import facility in Aqaba, Jordan (a

Bid).

This RfP has been sent to all companies who have expressed an interest in supplying LNG to

the Terminal (each a Bidder).

1.2 Prerequisite for Bidding

On 2 April 2015, NEPCO issued a draft Master Sale and Purchase Agreement (MSA) for the

supply of LNG. Since that date, NEPCO has agreed a number of MSAs and is continuing to

negotiate with other parties to agree additional MSAs.

NEPCO will work with Bidders to execute an MSA prior to Bid submission. An MSA must

have been signed by a Bidder and received by NEPCO for a Bid to be considered.

Bids must comply with the Form of Confirmation Notice set out in Annex A of the Bidder’s

MSA.

1.3 Bid Summary

This RfP is being issued for the purpose of selecting a suitable LNG supplier to enter into an

Agreement, as defined in the MSA, to provide Jordan with LNG as detailed below:

Contract Requirements

Total Contract Volume One cargo of LNG

Delivery Timing 14 August 2015 through 17 August 2015

Delivery Point Al-Sheikh Sabah LNG Terminal, Aqaba, Jordan (the Terminal)

LNG is to be provided on a DES (Delivered Ex-Ship) basis

Delivered LNG Volume No greater than 151,500 m3

(i.e. equivalent to 160,000m3 LNG carrier)

Delivered LNG Energy 3.0 – 3.3 TBTU

Other Terms and Conditions As detailed in the MSA executed between the Bidder and NEPCO



More detailed requirements are set out as follows:

a. LNG specifications as provided in the Form of Confirmation Notice set out in Annex

A of the MSA (the Specifications);

b. LNG Ship specifications as provided in the MSA; and

c. Buyer's Facilities specifications as provided in the MSA.

1.4 Bid Timetable

RfP release date 07 June 2015

Deadline for NEPCO to receive MSA signed by Bidder 11 June 2015

Bid Submission Deadline 13:00 (Jordan time),

15 June 2015

Confirmation Notice executed by NEPCO No later than 18:00

(Jordan time)

on 18 June 2015

1.5 Bid Instructions

Bidders are required to submit binding Bids. Bids should comply with the following

requirements:

a. Compliant Bids

The documents comprising the bid shall consist of the following:

i. Bid Letter in the form set out in Section B1; and

ii. Confirmation Notice in the form set out in Annex A of the MSA signed by the

Bidder.

As noted above, NEPCO must have received a signed MSA from the Bidder no later

than 11 June for its Bid to be considered. Bids received from Bidders who have not

provided a signed MSA to NEPCO will be rejected.

b. Alternative Bids



Bidders may provide alternative Bids for the supply of LNG. For example,

alternative Bids may include a cargo Delivery Window lying partially outside the

relevant date range stated in ‎1.3 above. Alternative bids are not required to be in

compliance with the Bid requirements.

NEPCO will consider alternative Bids at its sole discretion.

c. Bidder Questions

Bidders may submit questions at any time up to five (5) days prior to the Bid

Submission Deadline.

Questions should be submitted by e-mail to:

[email protected] ;

with copies to

[email protected] ;

[email protected]; and

[email protected]

Copies of any questions and replies from NEPCO will be circulated to all Bidders,

though the identity of the Bidder asking the question will be kept confidential.

d. Amendment of RfP

At any time up to five (5) days prior to the Bid Submission Deadline, NEPCO may

amend the RfP by issuing an addendum.

Any addendum issued shall be part of the RfP and shall be issued in writing to all

Bidders.

e. Bid Submission

All Bids must be received prior to 13:00 hours local time in Amman, Jordan on 15

June 2015 (the Bid Submission Deadline).

Any Bid received after the specified date and time may be rejected, no matter what

the reason for the delay. It is the responsibility of Bidders to comply with the Bid

Submission Deadline.

f. Presentation of Bids

mailto:[email protected]






Bids must be submitted by e-mail. Bids submitted by facsimile, telex, telegram,

courier, mail, or personal delivery may not be accepted.

Bids should be submitted by e-mail to:

[email protected]

The subject of the e-mail should be: “Proposal for the Supply of Liquefied Natural

Gas”.

Bids are to be provided as signed PDF documents.

g. Bid Validity

Bids shall remain valid for a period of seventy-seven (77) hours after the Bid

Submission Deadline (Bid Validity Period). A Bid valid for a shorter period may be

rejected by NEPCO as non-responsive.

h. Clarification of Bids

To assist in the qualification, evaluation and comparison of the Bids, and ranking of

the Bidders, NEPCO may, at its discretion, ask any Bidder for a clarification of its

Bid, and provide a reasonable time for the preparation and submission of a response

from that Bidder. Any clarification submitted by a Bidder that is not in response to a

request by NEPCO shall not be considered.

No change, including any voluntary increase or decrease, in the prices of the Bid

shall be sought, offered, or permitted, except to confirm the correction of arithmetic

errors discovered by NEPCO in the evaluation of the Bids.

If a Bidder does not provide the requested clarifications of its Bid by the date and

time set in NEPCO’s request for clarification, its Bid may be rejected.

i. Evaluation of Bids

NEPCO will evaluate the Bids received and rank Bidders based on:

(i) Price including indexation mechanism (if any);

(ii) Delivery Window; and

(iii) Form and value of the requested credit support.

NEPCO will select the Bids that provide the required LNG volumes and energy

content at the lowest overall cost. The cost assessment will include price and other

commercially important contract terms as set out in the MSA (including the

Confirmation Notice).



NEPCO expects to provide credit support on a per cargo basis, and prefers to

provide a standby letter of credit from a Jordanian bank. The form of credit support

will be taken into account in the choice of the selected Bidder.

NEPCO reserves the right to accept or reject any Bid, and to annul the Bid process

and reject all Bids at any time prior to execution of the Confirmation Notice, without

thereby incurring any liability to Bidders.

j. Confidentiality

Information relating to the evaluation of Bids shall not be disclosed to Bidders or any

other persons not officially concerned with the Bid process, and the Bid ranking will

not be disclosed to Bidders.

Bids will not be publically opened.

k. Notification of Bid Results

Prior to the expiration of Bid Validity Period, NEPCO shall:

i. notify the selected Bidder in writing that its Bid has been accepted, sign the

Confirmation Notice by the deadline set out in ‎1.4 above, and issue this to the

selected Bidder; and

ii. notify each unsuccessful Bidder that its Bid has not been selected.

l. Performance Guarantee

No later than five (5) days before the start of the cargo Delivery Window, the

selected Bidder shall provide NEPCO with a US Dollar denominated performance

guarantee for an amount of ten percent (10%) of the cargo value, based on the

Contract Quantity multiplied by the Price Proposal, and issued by a bank in Jordan

(the Performance Guarantee) as security for NEPCO for the performance obligations

required by the MSA. Where the Bidder proposes a formula in its Price Proposal, the

value of the Performance Guarantee shall represent the Bidder's estimate of what ten

percent (10%) of the LNG cargo value would be, based on the LNG price at the time

of issuance of the Performance Guarantee. The form of Performance Guarantee is

attached at Section B3.

m. NEPCO discretion

NEPCO reserves the right to reject any or all Bids without assigning any reasons and

its decisions shall be final and binding. NEPCO will be under no obligation at any

time to select any Bid.



n. Cost of Bidding

The Bidder shall bear all costs associated with the preparation and submission of its

Bid, and NEPCO shall not be responsible or liable for any of those costs, regardless of

the conduct or outcome of the Bid process.

o. Language of Proposal

Bids and all related correspondence and documents shall be written in the English

language.

p. Currencies to be used in the RfP

The currency to be used in the Bid will be United States Dollars (USD). Bids not

using USD may be rejected by NEPCO.

q. Fraud and Corrupt Practices

NEPCO requires that Bidders, suppliers, contractors, consultants and concessionaries

(including their respective officers, employees and agents), adhere to the highest

ethical standards, and report to NEPCO all suspected acts of fraud or corruption of

which they have knowledge or become aware during the selection process. The

definitions of actions set forth below involve the most common types of fraud and

corruption but are not exhaustive. For this reason NEPCO shall also take action in

the event of any similar deed or complaint involving alleged acts of fraud and

corruption even when these are not specified in the following list. In pursuit of this

policy, NEPCO:

i. defines, for the purpose of this Article the terms set forth below as follows:

(aa) corrupt practice means the offering, giving, receiving, or soliciting,

directly or indirectly, of anything of value to influence the action of another

bidder or a NEPCO official, advisor or representative in the selection process;

(bb) fraudulent practice means a misrepresentation or omission of facts in

order to influence the selection process and includes collusive practice among

bidders (prior to or after the Bid Submission Deadline) designed to establish

indicative prices at artificial, non-competitive levels and to deprive NEPCO

of the benefits of free and open competition;

(cc) collusive practice means a scheme or arrangement between two or more

bidders, with or without the knowledge of NEPCO, designed to establish



indicative prices at artificial, non-competitive levels or to influence the action

of any party in the selection process; and

(dd) coercive practice means impairing or harming, or threatening to impair

or harm, directly or indirectly, persons or their property to influence their

participation in the selection process;

(ee) obstructive practice means deliberately destroying, falsifying, altering, or

concealing of evidence material to the investigation or making false

statements to investigators in order to materially impede a NEPCO

investigation into allegations of a corrupt, fraudulent, coercive or collusive

practice; and/or threatening, harassing or intimidating any party to prevent it

from disclosing its knowledge of matters relevant to the investigation or from

pursuing the investigation.

ii. will reject a Submission if it determines that the Bidder recommended for

award, or any of its personnel, or its agents, or its sub-consultants,

subcontractors, service providers, suppliers and/or their employees, has,

directly or indirectly, engaged in corrupt, fraudulent, collusive, coercive, or

obstructive practices in competing for this project or other projects in Jordan;

and

iii. will sanction a firm or individual, including declaring them ineligible, either

indefinitely or for a stated period of time, to be awarded a contract with the

Government of Jordan if it at any time determines that they have, directly or

through an agent, engaged, in corrupt, fraudulent, collusive or coercive

practices.



1.6 Bid Requirements

a. Volume Proposal

Bidders must demonstrate their capability to supply the volume they are bidding for.

Specifically Bidders should provide in their Confirmation Notice:

i. Delivery Timing

Bidder must specify a delivery window lying within the relevant date range

stated in ‎1.3 above (the Delivery Window).

ii. Volume Commitment

Bidder shall specify the contract quantity to be delivered in Btu (the Contract

Quantity).

iii. Shipping Commitment

Bidder shall specify the LNG Ship to be used for transporting the LNG.

Bidder is permitted to propose a delivered LNG volume up to the maximum

volume stated in ‎1.3 above. Note the Al-Sheikh Sabah LNG Terminal, Aqaba,

Jordan can accommodate LNG Carriers sizes up to Q-Flex.

iv. LNG Source

Bidder shall specify the LNG supply source(s).

v. LNG Specifications

Bidders must confirm that their LNG supply will conform to the

Specifications as set out in the Confirmation Notice.

b. Price Proposal

Bidders may propose either a fixed price or a price formula (the Price Proposal).

NEPCO will analyse the Price Proposals and choose the most advantageous, taking

account of the cost of NEPCO's alternative fuels (diesel and fuel oil). If Bidders elect

to propose a Price formula, linkage to Brent is preferred but NEPCO will also

consider linkage to other indices (e.g. Henry Hub, JKM or NBP). Where a Price

formula is proposed, Bidders are encouraged to provide a risk management

approach to help NEPCO to manage Price risk against its alternative fuels.



The Price Proposal should be presented net of all custom duties or fees, transfer

taxes, stamp duties and general and special sales taxes that are applicable within

Jordan. The liability for payment of taxes will be as set out in the MSA.



Section B: Forms



1. Bid Letter

[Name of Bidder and Address]

[Date]

H. E. Abdul Fattah Aldaradkah,

General Manager of the National Electric Power Company

National Electric Power Company

Jabel Amman – 7th Circle, Zahran Street

Amman, 11814

Jordan

Your Excellency,

Bid to supply Liquefied Natural Gas

We, the undersigned, declare that:

(a) we have executed a Master Sale and Purchase Agreement for LNG with NEPCO;

(b) we have examined the Bidding Documents, including any addenda, and have no

reservations;

(c) we hereby offer to supply LNG in conformity with the Bidding Documents in

accordance with the Confirmation Notice provided as part of our Bid;

(d) our Bid is valid for a period of seventy-seven (77) hours from the Bid Submission

Deadline and it shall remain binding upon us and may be accepted at any time before

the expiration of the Bid Validity, in accordance with the Bidding Documents;

(e) we are not participating, as a Bidder or as a subcontractor, in more than one Bid; and

(f) we understand and acknowledge that you are not bound to accept any Bid that you

may receive.

We hereby confirm that the information provided as part of our Bid is complete and

accurate and all necessary Board and other approvals have been obtained prior to the

submission of our Bid.

Yours faithfully,

Signed

Name

Duly authorized to sign the Bid for and on behalf of [name of Bidder]

Dated



2. Confirmation Notice

Bidders are requested to submit a Confirmation Notice in the form set out in Annex A of the

MSA signed by the Bidder and received by NEPCO.



3. Form of Performance Guarantee

[Date]

National Electric Power Company

Jabel Amman – 7th Circle, Zahran Street

Amman, 11814

Jordan

At the request of Bank (The Foreign Bank) and on

behalf of M/S. (The contractor Name and Address), we (The Local Bank)

issue in your favor our irrevocable and unconditional performance guarantee No.

in the amount of ( ) in this connection we

(local bank) hereby consider ourselves responsible for the unconditional payment to

you or your authorized representatives of the above sum on your first written demand in

whole or in part not withstanding any objections on the part of the above named contractor

and without any need for notarial warning or judicial proceedings.

This guarantee remains valid from the date of issue till its expiry date on

___________________________ unless it’s extended or renewed upon the employer’s request.

This Guarantee shall be governed by Jordanian law.

Yours faithfully,

Signed

Name

Duly authorised for and on behalf of [name of bank]

Date