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MONGOL REFINERY STATE OWNED LLC

BIDDING DOCUMENT

FOR

SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING


PACKAGE AND OTHER RELATED SERVICES FOR LPG
TREATING UNIT FOR
THE PROJECT TO CONSTRUCT A CRUDE OIL REFINERY
PLANT

BIDDING DOCUMENT NO.: RC/B285-000-LA-TN-8601/1006

PREPARED AND ISSUED BY :

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Master Index

Rev 00 Page 1 of 1

NAME OF WORK : SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING


PACKAGE AND OTHER RELATED SERVICES FOR LPG
TREATING UNIT

BIDDING DOCUMENT NO. : RC/B285-000-LA-TN-8601/1006

S.No. Description No. of Pages

Section – I : Commercial Section

1. Cover Page 01

2. Master Index 01

3. Letter Inviting Bids 03

4. Instructions to Bidder & Annexure 15+21

5. Commercial Terms & Conditions 30

6. Schedule of Price 24

Section – II : Technical Section

1. Technical Specification 109

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LETTER INVITING BID (LIB)

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No. B285-8601/1006/LIB Date: 13.11.2019

To,
______________

NAME OF WORK : SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING


PACKAGE AND OTHER RELATED SERVICES FOR LPG
TREATING UNIT

BIDDING DOCUMENT NO. : RC/B285-000-LA-TN-8601/1006

1.0 INTRODUCTION

Mongol Refinery State Owned LLC (owned 100% by Ministry of Mining & Heavy Industry,
Mongolia) has appointed Engineers India Limited (EIL) as a Consultant for Construction of 1.5
MMTPA Crude Oil Refinery at Sainshand in Mongolia.

EIL on behalf of Mongol Refinery State Owned LLC (MR) has pleasure of inviting you to submit e-
bids for subject work under single stage Two-Part System (Part-I:Techno-commercial Part & Part-
II: Price Part).

2.0 SCOPE OF WORK

Scope of Work is attached as Technical Specification in the Bidding Document.

3.0 TIME SCHEDULE

Time schedule for submission of Final Basic Design & Engineering Package shall be 26 weeks
from the date of ‘Kick of Meeting for finalisation of design basis’. Refer Annexure IV-B of
Technical Specification for detailed schedule.
4.0 SALIENT FEATURES OF BIDDING DOCUMENT

i) Bidding Document on website


From : Wednesday, November 13, 2019
To : Thursday, January 9, 2020
ii) Earnest Money Deposit (EMD) : Not Applicable

iii) Submission of Pre-bid Queries : upto Monday, December 9, 2019

(Queries received after the cut-off date shall not


be considered)
iv) Pre-bid Meeting : 1030 Hrs. (IST) on Friday, December 13, 2019
at EIL, New Delhi

v) Last Date and time of submission : 1200 Hrs. (IST) on Thursday, January 9, 2020
of Bids
(Through Government of India’s e-Procurement
/e-Tendering System:
https://eprocure.gov.in/eprocure/app)
vi) Opening of Techno-Commercial : 1400 Hrs. (IST) on Friday, January 10, 2020 at
(Unpriced) Bid** EIL, New Delhi
In presence of authorized representatives of
participating Bidders.
If days mentioned above happen to be EIL
holiday, the next working day shall be implied.
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LETTER INVITING BID (LIB)

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vii) Mode : Through Government of India’s e-


Procurement/e-Tendering System :
https://eprocure.gov.in/eprocure/app
viii) Opening of Price Bids : Date and time shall be informed to techno
commercially acceptable bidders

e-Bids are required to be submitted through Government of India’s Central Public Procurement
portal https://eprocure.gov.in/eprocure/app only, on or before the Bid-Submission Date & Time. In
order to perform e-procurement activities, the bidders are required to enroll/register themselves at
https://eprocure.gov.in/eprocure/app. No enrollment/registration fee would be charged from the
bidders for the same.

NIC Portal mandates that the bidders are to be registered on the portal before any enquiry can be
issued to them. The enquiry shall be issued to the bidders on the NIC e-Procurement Portal as
soon as their registration is completed in the NIC Portal (https://eprocure.gov.in/eprocure/app).

All those vendors who have still not registered on the NIC Portal are required to register on the
same (immediately after issue / publish of enquiry on EIL portal/ Central Public Procurement
Portal) for facilitating issue of enquiry to them on the NIC Portal failing which it will not be possible
for them to upload their bids. Pursuant to registration, the vendors are also required to login in EIL
tender portal and update NIC’s registration details and inform the undersigned regarding the
same for the subject enquiry.

In any case, the enquiry shall be issued on NIC portal to NIC registered vendors about seven
days before the bid due date. Therefore, all those bidders who have not complied with the above
registration requirements will not be issued this enquiry on NIC portal and will not be eligible to
bid. Request for extension in due date of submission of bids due to non registration or delayed
registration in NIC portal shall not be entertained.

The bid has to be necessarily submitted on the NIC Portal and only those bidders who are issued
the enquiry through NIC Portal will be eligible to submit their bids. In case a bidder does not
register on the NIC Portal and as a consequence, cannot be issued the enquiry through NIC
Portal, it shall be deemed that he is not interested in bidding against this enquiry and no further
correspondence will be entertained.

In future, EIL shall be issuing all enquiries through NIC Portal alone and bidders who do not
register with NIC Portal may not be able to submit their bids. Therefore, it is in the interest of the
bidders that they register on the NIC Portal at the earliest.

The vendor registration on NIC Portal is a very user friendly process. However, in case of any
doubt, the vendor may contact the undersigned.

No Manual Bids/Offers shall be permitted. The offers submitted through the designated e-
tendering system shall only be considered for evaluation & ordering. Bids submitted in physical
form or sent in any other form such as through Telex/Telegraphic/ Fax/E-Mail /Computer floppy/
CD/DVD/Pen Drive etc. shall not be accepted.

Bidders to please refer the Annexure –I to Instructions to Bidders regarding E- Tendering


guidelines.

5.0 General
5.1 Bidder should not be on holiday/negative list of EIL/Employer.
5.2 Bidder shall not be blacklisted by any multilateral agency or any authority in India or Mongolia.
Bidder to submit self-certificate.
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5.3 Bidder shall not be under liquidation, court receivership or similar proceedings. Bidder to submit
self-certificate.

5.4 Employer / Consultant reserve the right to assess bidder’s capability and capacity to execute the
work using in-house information and by taking into account other aspects such as concurrent
commitments and past performance etc.
5.5 The complete Bidding Document is available on e-tender website:
https://eprocure.gov.in/eprocure/app. Bidders are required to submit their bid through
Government of India’s e-Procurement/e-tendering system https://eprocure.gov.in/eprocure/app
only.
5.6 Corrigenda/Addenda, if any, shall also be available on the above mentioned web site. No
extension in the bid due date / time shall be considered on account of delay in downloading the
document by the bidder from website.
5.7 Bidding documents once issued are non-transferable in other name and shall at all times remain
the exclusive property of the Employer/Consultant with a license to the Bidder to use the Bidding
Documents for the limited purpose of submitting the bid.
5.8 Bidder may note that Bid shall be submitted on the basis of “ZERO DEVIATION” and shall be in
full compliance to the requirements of Bidding Document, failing which bid shall be considered as
non-responsive and may be liable for rejection.
5.9 Techno-commercial part of the Bids shall be opened, in the presence of authorized
representatives of Bidders. Time and date of opening of Price Bids shall be notified to the
acceptable Bidders at a later date.
5.10 Employer / Consultant shall not be responsible for any expense incurred by Bidders in connection
with the preparation & delivery of their Bids, site visit, participating in the discussion and other
expenses incurred during the bidding process.
5.11 Employer / Consultant reserves the right to reject any or all the Bids received at its discretion and
to annul the bidding process at any time without assigning any reason whatsoever.
5.12 Canvassing in any form by the Bidder or by any other agency on their behalf may lead to
disqualification of their bid.
5.13 In case any Bidder is found to be involved in cartel formation, his bid will not be considered for
evaluation / placement of order. Such Bidder will also be debarred from bidding in future.
5.14 For detailed specifications, terms and conditions and other details, refer Bidding Document.
5.15 Clarification, if any, can be obtained from General Manager (SCM-C&P) through Telephone –
011-26762729 / 3368 / 3364 / 3737, E-mail – r.choudhary@eil.co.in / amit.agarwal@eil.co.in /
Mayank.jain@eil.co.in / manoj.kumar.pur@eil.co.in.
5.16 Please acknowledge receipt of this letter along with all enclosures immediately of receipt and
confirm that you will submit your bid on or before the due date. In case you decide not to
participate in this bidding system, please mention the reasons of non-participation in the bidding
process at the earliest.

For and on behalf of


Mongol Refinery State Owned LLC

Rekha Choudhary
General Manager (SCM-C&P)
Engineers India Limited, New Delhi

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INSTRUC TIONS TO B IDD ER
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INSTRUCTIONS TO BIDDER [COMMERCIAL]

FOR

LICENSOR SELECTION

FOR

THE PROJECT TO CONSTRUCT A CRUDE OIL REFINERY PLANT

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CONTENTS
1.0 BIDDING DOCUMENT, CLARIFICATION AND ADDENDUM/ AMENDMENT ............. 4
1.1 BIDDING DOCUMENT ..................................................................................................... 4
1.2 CLARIFICATION REQUESTS BY BIDDER ........................................................................... 4
1.3 AMENDMENT OF BIDDING DOCUMENT ............................................................................ 4
1.4 CONFIDENTIALITY OF BIDDING DOCUMENT ..................................................................... 5
1.5 ACKNOWLEDGEMENT AND CONFIRMATION TO BID ........................................................... 5
1.6 MULTIPLE/ ALTERNATIVE BID ......................................................................................... 5
1.7 POWER OF ATTORNEY (POA): ....................................................................................... 5
2.0 PREPARATION OF BIDS .......................................................................................... 6
2.1 BID VALIDITY ................................................................................................................ 6
2.2 COST OF BIDDING ......................................................................................................... 6
2.3 LANGUAGE OF BID ........................................................................................................ 7
2.4 ARRANGEMENT OF BID.................................................................................................. 7
2.5 SCHEDULE OF PRICES (SOP) ........................................................................................ 7
2.6 DOCUMENTS COMPRISING THE BID ................................................................................ 8
3.0 SUBMISSION OF E-BID .......................................................................................... 10
4.0 BID OPENING AND EVALUATION ......................................................................... 10
4.1 OPENING OF TECHNO-COMMERCIAL BIDS : .................................................................. 10
4.2 CLARIFICATION & ADDITIONAL INFORMATION ................................................................ 11
4.3 TECHNO-COMMERCIAL DISCUSSIONS .......................................................................... 12
4.4 EVALUATION CRITERIA ................................................................................................ 12
4.5 EVALUATION OF PRICE BID .......................................................................................... 13
4.6 LOADING FACTORS ..................................................................................................... 13
4.7 PROCESS TO BE CONFIDENTIAL ................................................................................... 13
4.8 EMPLOYER’S RIGHT TO ACCEPT OR REJECT A BID ........................................................ 13
4.9 REJECTION CRITERIA .................................................................................................. 13
5.0 AWARD AND CONTRACT AGREEMENT WITH LICENSOR ................................. 14
5.1 AWARD ...................................................................................................................... 14
5.2 CONTRACT AGREEMENT ............................................................................................. 14
6.0 INTEGRITY PACT ................................................................................................... 14
7.0 CARTEL FORMATION ............................................................................................ 14
8.0 FRAUDULENT PRACTICES ................................................................................... 14

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9.0 REQUIREMENT OF EMPLOYEMENT VISA FOR FOREIGN NATIONALS


[EMPLOYER TO UPDATE] .................................................................................... 15
10.0 GENERAL ................................................................................................................ 15

ANNEXURES TO ITB

ANNEXURE DESCRIPTION
ANNEXURE – A TO ITB COMPLIANCE TO BID REQUIREMENTS
ANNEXURE – B TO ITB COMMERCIAL QUESTIONNAIRE
ANNEXURE – C TO ITB INTEGRITY PACT
ANNEXURE – D TO ITB FOR BIDDER'S QUERIES FOR PRE BID CONFERENCE/ MEETING
ANNEXURE – E TO ITB PROFORMA FOR ACKNOWLEDGEMENT LETTER OF BIDDING
DOCUMENT
ANNEXURE – F TO ITB PROFORMA OF PERFORMANCE BANK GUARANTEE
ANNEXURE-G TO ITB PROFORMA OF ADVANCE BANK GUARANTEE
ANNEXURE-H TO ITB SELF DECLARATION
ANNEXURE-I TO ITB POWER OF ATTORNEY FORMAT
ANNEXURE-J TO ITB E-TENDERING METHODOLOGY
ANNEXURE-K TO ITB INFORMATION ABOUT BIDDER
ANNEXURE-L TO ITB PROCUREMENT OF PRECIOUS METAL (PLATINUM) BY
LICENSOR ON BEHALF OF LICENSEE

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1.0 BIDDING DOCUMENT, CLARIFICATION AND ADDENDUM/ AMENDMENT


1.1 Bidding Document
1.1.1 Bidding Document comprising following sections are uploaded on e-procurement
Portal as mentioned in clause 1.1.2 below for the purpose of submitting Bid.
I. Letter Inviting Bid (LIB)
II. Instructions to Bidders (ITB) [Commercial] including all its Annexures
III. Commercial Terms and Conditions (CTC)
IV. Technical Specifications (TS)
V. Schedule of Prices (SOP)
1.1.2 The complete Bidding Document is available on Govt. of India Central Public
Procurement Portal (CPP) https://eprocure.gov.in/eprocure/app and only link
will be provided in EIL website http://tenders.eil.co.in
Bidders can view / download the bidding document (including subsequent
Amendments, if any) from the above mentioned Central Public Procurement Portal
website.
1.1.3 Any Amendment/ Addendum issued in accordance with clause no. 1.3 hereinafter
shall form part of the Bidding Document.
1.1.4 All Amendments, time extension, clarifications, etc. will be uploaded in the
Govt. of India central public procurement portal only. Bidders should regularly
visit the above website to keep themselves updated for submission of their Bid
as per latest information hosted in the website.
1.1.5 Request for extension or any queries received from any bidder with less than Seven
working days prior to bid due date shall generally be ignored, since there will not be
adequate time for proper communication with Client and other Bidders. Bidders shall
submit the bid directly and in their own name without involving any intermediaries.

1.2 Clarification Requests by Bidder


Bidder shall examine the Bidding Document thoroughly in all respects and if any
conflict, discrepancy, error or omission is observed, Bidder may request clarification
in the form of Pre-bid queries (as per ANNEXURE-D) for discussion/clarification
during pre-bid meeting and the queries shall reach to EIL/Employer on or before the
date of receipt of queries indicated in LIB. Such clarification requests and all other
correspondences shall be addressed to the addressee, EIL/Employer, New Delhi,
whose contact details are given in LIB. Any failure by Bidder to comply with the
aforesaid requirement shall not absolve the Bidder of his responsibility, after
subsequent award of Contract, of performing the work/services in accordance with
the agreement. The replies to pre-bid queries are for clarification purpose only
and shall not form part of the Bidding Document/Agreement, unless issued in
the form of Addendum / Amendment.
1.3 Amendment of Bidding Document
1.3.1 Employer may, for any reason either at their own initiative or in response to the
clarification requested by Bidders, issue Addendum/ Amendment/ Corrigendum

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during the Bidding period. Any Addendum/ Amendment/ Corrigendum thus issued
shall become part of Bidding Document and Bidder shall submit the copy of
Addendum/ Amendment/ Corrigendum duly signed and stamped in token of their
acceptance.
1.3.2 Prior to submission of Bid: If Addendum/ Amendment/ Corrigendum is issued
during the Bidding period, it will be deemed presumed that Bidder has submitted their
Bid considering such Addendum/ Amendment/ Corrigendum.
1.4 Confidentiality of Bidding Document
1.4.1 The Bidding Document is non-transferable and shall be returned to the Employer by
any recipient who does not intend to submit a Bid.
1.4.2 The Bidding Document are and shall remain the exclusive property of the Employer
with a right for the Bidder to use it only for the intended purpose of bidding and for
use by the successful Bidder with reference to the resultant Contract for the
Employer’s subject Unit.
1.4.3 The Bidder shall take due measures to keep it secret and confidential and shall
disclose the Bidding Document and/or furnish copies in whole or part thereof to
employees involved in the preparation of the Bid who have understood the
proprietary and confidential nature of the documents and have undertaken to be
bound by and maintain confidentiality
1.5 Acknowledgement and Confirmation to Bid
Within 7 days of downloading the Bidding document from the website, Bidder shall
complete and submit the acknowledgment letter as per Performa given in
ANNEXURE – E TO ITB confirming whether or not the Bidder intends to submit their
Bid. The Bidder must indicate the address of their bidding office in the
acknowledgement letter alongwith Contact Mobile no. with ISD codes, Telephone/
Fax with ISD codes, Email and names of contact persons. In case, Bidder intends not
to participate in the bidding process, they should clearly state the reasons for non-
submission of their Bid.
1.6 Multiple/ Alternative Bid
1.6.1 The Bidder (i.e. the bidding entity), on no account, shall submit more than one Bid
either directly or indirectly.
1.6.2 Multiple and/or Alternate Bid from a Bidder shall not be acceptable and the Bids of
such Bidder shall be rejected.
1.7 Power of Attorney (POA):
1.7.1 The bidders shall be required to submit the Power of Attorney (POA) in e-
procurement portal along with the e-Bid, in the name of authorized signatory
signing the Bid and who possesses the DSC Key on behalf of the bidder’s
company to sign the e-bid, and subsequent submissions on behalf of the Bidder.
However, in case of General Power of Attorney, photocopy duly notarized /
signed by Chief Financial Officer (CFO) / Chief Executive Officer (CEO) /
Company Secretary (CS) / any Functional Director in the Board of Directors is
also acceptable. A POA format is included as ANNEXURE-I TO ITB.
1.7.2 In case of Foreign Bidder who does not have digital signature issued by an
Indian Certifying Authority, he can authorize his Indian representative to use

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the Indian representative’s digital signature to upload the bid on behalf of


foreign bidder. In such a case, the authorization letter from the POA holder or
CFO / CEO / CS / any Functional Director in the Board of Directors alongwith
POA in the name of official who is authorized to sign the bid on behalf of
Foreign Bidder, shall be submitted in the e-bid.
1.7.3 Bidder shall clearly indicate their legal constitution and the person signing the
Bid shall state his capacity as also the source of his ability to bind the Bidder.
The Power of Attorney or Authorization or other document constituting
adequate proof of the ability of the signatory to bind the Bidder, shall be
annexed to the POA. Employer may reject outright any Bid unsupported by
adequate proof of the signatory’s authority.
1.7.4 Employer shall not be bound by any Power of Attorney granted by the Bidder or
changes in the constitution of the Bidder’s Company made subsequent to submission
of the Bid or after the award of the Contract. Employer may, however, recognise such
Power of Attorney and changes after obtaining proper legal advice, the cost of which
will be borne by the Bidder.
1.7.5 The cancellation of any document such as Power of Attorney, Partnership Deed, etc.
should be promptly communicated by the Bidder to the Employer in writing well in
time, failing which Employer shall have no responsibility or liability for any action
taken by Employer on the strength of the said documents.

2.0 PREPARATION OF BIDS

2.1 Bid Validity


2.1.1 Bid shall remain valid for acceptance for a period of 6 Months from the due
date/Extended Bid due date of submission of the Bid During the said period, the
Bidder shall not revoke or cancel his Bid or vary the Bid except and to the extent
required by Employer/ EIL in writing. Bid shall be revalidated for extended period if
required by Employer/ EIL in writing. In such cases, unless otherwise specified, it
shall be understood that validity is sought and provided without varying the quoted
price and any other terms and conditions of the Bid finalised till that time.
2.1.2 A Bid valid for shorter period shall be rejected by the Employer as Non-Responsive.
2.1.3 Against the request of Validity extension, a bidder may extend the validity on the
same Terms & Conditions and Prices. The bidders who do not accept the request for
extension of validity of the Bid beyond the above validity period shall be allowed to
withdraw the Bid and their Bid shall not be considered for further evaluation.
2.2 Cost of Bidding
All direct and indirect costs associated with the preparation and submission of Bid,
any other expenses in connection with Bid (including Pre-Tender Meeting, Pre-Bid
Meeting and other post bid submission clarification meetings and visits by Bidder to
Employer/EIL offices or to Licensee locations, as required) shall be to Bidder’s
account. Employer/EIL will in no case be responsible or liable for those costs,
regardless of the conduct or outcome of the Bidding process.

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2.3 Language of Bid


The Bid, as well as all correspondence and documents relating to the bid exchanged
by the bidder and Employer, shall be in the English language. Supporting
documents and printed literature that are part of the Bid may be in another language
provided they are accompanied by an accurate translation of the relevant passages
in the English language, in which case, for purposes of interpretation of the Bid, such
translation shall govern.
2.4 Arrangement of Bid
The Bid shall be neatly arranged, indexed, and organised with consecutively
numbered pages. The e-Bid submitted by the bidder shall be duly certiified by the
POA holder and all details submitted by the Bidder subsequently shall also be signed
and stamped by POA holder on behalf of the Bidder as defined in clause no. 1.7
above. The same person shall also sign corrections and alterations, if any.
2.5 Schedule of Prices (SOP)
2.5.1 The Schedule of Prices (SOP) shall be read in conjunction with all other sections of
the Bidding Document including its Amendment/Addendum/ Corrigendum, if any
(irrespective of whether the same is categorically specified in each and every section
of the Bidding document or not). Rates/ amount must be filled in the format of
Schedule of Prices enclosed as part of this Bidding Document.
2.5.2 The Prices quoted by the Bidder shall be FIRM and fixed for the completion of
services and supplies and in accordance with the price schedule format included in
the Bidding document and strictly based on the terms specified related to the Bid
prices in the instructions/ conditions.
2.5.3 FIRM prices are required for all the items including supply of Catalyst, Chemicals,
Absorbents, Adsorbents, & Additives (as applicable as per technical specifications)
and proprietary equipment supplies, if any. The escalation rates mentioned in
Form-B7 of Schedule of Prices for these items shall also be FIRM.
2.5.4 Escalation Rates shall be specified by Licensor as per details given in Schedule of
Prices. In case, Escalation Rates are not specified by the Licensor, then the prices
quoted for the various items shall be considered valid and FIRM upto the date
specified in the Form-B7 and no escalation shall be payable.
2.5.5 Bidder shall quote all the items (in all FORMs) of Schedule of Prices after careful
analysis of cost involved for the performance of the complete item considering all
parts of the Bidding Document. In case, any activity is specifically not covered in
description of item under Schedule of Prices but is required to complete the work as
specified elsewhere in the Bidding Document, then the quoted prices for the item(s)
shall be deemed to be inclusive of cost incurred for such activity and no claims
whatsoever on this account shall be entertained by Employer.
2.5.6 Bidder shall quote the prices for materials and services in USD only. Currency once
quoted shall not be permitted to be changed. Bidder shall quote prices both in figures
as well as in words.
2.5.7 Payment to the Bidder shall be made in USD only.
2.5.8 The FIRM prices quoted by bidder for Proprietary item (if any), Catalyst, Chemicals,
Adsorbents, Absorbents & Additives (as applicable as per technical specifications),

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Mandatory Services, Personnel Rates for Additional Services, Training shall be valid
up to the period defined in respective FORM of SOP. Thereafter, yearly price
escalation in terms of percentage (%) as quoted by the bidder in FORM-B7 of SOP
shall be applicable.
2.5.9 The escalation rate as specified in SOP FORM B7 for Proprietary item, Catalyst,
Chemicals, Adsorbents, Absorbents & Additives shall be considered as on the date
of placement of order. For Mandatory and Additional services and training the
escalation rate shall be considered as on the date of actual service provided.
2.6 Documents Comprising the Bid
2.6.1 Bidder is advised that Employer/ EIL intends to fully evaluate the technical and
unpriced commercial submissions. It is important that Bidder clearly demonstrates his
experience and capability, giving Employer/ EIL a high level of confidence about the
technology being licensed and also that if awarded, the Bidder will be able to perform
within the stipulated Time Schedule, and quoted price is for total scope requirements
described in the Bidding document. Bidder is requested to furnish complete and
correct information required for evaluation of their Bid irrespective of whether it is
specifically asked or not.
2.6.2 Bidder shall arrange and upload their e-Bid in two parts (two e-envelopes system) as
follows viz. PART- I & PART-II in separate e-folders on e-procurement portal :
PART – I : UNPRICED PART (Techno-Commercial Part) (All Techno-
Commercial documents including unpriced SOP)
PART - II : PRICE PART (Only Price and no other terms and conditions/
clarifications/stipulations etc.)
I. Bidders shall submit their e-bid through the designated e-procurement
portal as mentioned in LIB.
II. The e-Bid shall be prepared by the Bidder as per the provisions and
various terms and conditions of the bidding document in the appropriate
format and uploaded on the above website (as per the instructions
enclosed as ANNEXURE-J TO ITB to this document in two e-envelopes,
as per the instructions given below.
a) PART-I: UNPRICED PART: Technical & Commercial Documents
This part shall contain the “UNPRICE BID”, containing all techno-
commercial documents, technical details, specifications, completion
schedule etc. as per requirement of bidding/enquiry documents. Such
Unpriced bid shall be required to be submitted in e-procurement portal.
This part of bid shall contain the following:
(i) Covering letter in bidder’s letter head. The covering letter shall
indicate the bidding entity and their arrangement as bidder, check list
etc.
(ii) Master Index of Bidding document along with
Amendments/Addendums/Corrigendums (if any), duly signed and
stamped on each page, in token of acceptance.
(iii) Compliance to Bid requirements as per ANNEXURE – A TO ITB.

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(iv) Commercial Questionnaire, duly filled in, as per ANNEXURE – B


TO ITB.
(v) Integrity Pact (included as ANNEXURE – C TO ITB) duly signed by
the Bidder.
(vi) Self-Declaration as per ANNEXURE-H TO ITB
(vii) Information about Bidder as per ANNEXURE-K TO ITB
(viii) Power of Attorney in favour of authorised signatory of the Bid as per
provisions of Bidding Document as mentioned in detail in ITB clause
no. 1.7
(ix) The Unpriced copy of price Bid without any prices (Price Column
shall be filled up with “QUOTED IN PRICE PART” in the Schedule of
Prices).
The Unpriced copy of Price Bid and Price Bid shall be identical in all
respects except that only the Priced Bid shall contain the prices. The
Unprice copy of Price Bid and Price Bid shall also not contain any
condition, deviation, clarification etc.
(x) Technical offer and Engineering details, containing the information/
documents required as per enclosed Technical Specification of
Bidding Document.
(xi) Bidder shall also furnish any other information other than Price that are
required to complete their bid in all respects with respect to the
provisions of the bidding document.
2.6.3 Part II: Priced bid
 This part shall contain the filled in Forms of Schedule of Price (i.e. Price
Bid), duly signed and stamped in each page without any deviation,
clarification, condition etc.,
No stipulation, deviation, terms or conditions, presumptions, basis etc. shall be
indicated in Price part of the Bid. In case, any stipulation, deviation, terms or
conditions, presumptions, basis etc. are indicated in the Priced Bid, these shall be
considered null and void and may render the Bid liable for rejection if these are not
withdrawn by the Bidder.
2.6.4 CORRECTIONS AND ERASURES
Bidders are required to prepare the Bid with all due care, avoiding
cuttings/corrections/alteration/overwriting etc. in the entries, as far as possible. In
case corrections/alterations become unavoidable or inevitable, the entry to be
corrected, altered should be neatly cancelled or scored through by striking the entry
by drawing a line through it and making the revised/corrected entry as close to the
cancelled entry as possible, each such cancellation and correction/alteration being
clearly and unambiguously authenticated by the Bidder with his full signatures.
Overwriting and/or erasing with or by the application of correcting/erasing fluid(s) will
not be permitted and shall render the Bid liable for rejection.

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3.0 SUBMISSION OF e-BID


3.1 Techno-Commercial Unpriced e-Bid and Priced e-Bid shall be submitted only in the
designated folders of the Govt. of India Central Public Procurement Portal (CPP)
https://eprocure.gov.in/eprocure/app in the manner as specified above.
3.2 Methodology for e-tendering shall be as per attached ANNEXURE-J TO ITB. Bidders
are requested to get acquainted with the E-Tendering Website and the formalities
and load their Bid well within the time (extended time in case of extension of bid
submission date) provided for bid submission to avoid last minute hassles.
3.3 Bidders in their own interest are requested to register on e-Tendering portal and
upload/submit their e-bid well in time. Bidders should avoid the last hour rush to the
website for registration of User I.D. & Password, enabling of User I.D. and mapping
of Digital Signature Serial Number, etc. since this exercise require activities from EIL
& the Service Provider and needs time. In the event of failure in bidder’s connectivity
with EIL/Service Provider during the last few hours prior to bid submission time,
bidder is likely to miss the deadline for bid submission. EIL/Service Provider shall not
be held responsible for such failure to submit the Bid in time. Any due date extension
request due to aforesaid reason shall also not be entertained.
3.4 Bidders are requested to obtain/seek clarifications, if any from EIL and/or EIL’s
Authorised Service Provider, whose contact information is provided in the
ANNEXURE-J TO ITB
3.5 Bids in hard copies by Hand/ Registered Air Mail/Courier Service, through
email/Fax or in other electronic mode shall not be accepted.
3.6 No bid will be received after the deadline of submission of bid.
3.7 E-tendering system shall close immediately after the deadline for submission of bid.
3.8 Unsolicited bids or bids being uploaded to address other than one specifically
stipulated in the bidding documents will not be considered for opening / evaluation /
award.
3.9 ZERO DEVIATION
3.9.1 Bid shall be submitted as “Zero deviation Basis”. Accordingly offer is to be submitted
in complete compliance to Terms & Conditions of Bidding Document without any
deviation. Offer with deviation shall be liable for rejection without any further
correspondence. In view of this Bidder shall ensure submission of complete bid
without any deviation as per requirement of Enquiry document in first instance itself.
4.0 BID OPENING AND EVALUATION
4.1 Opening Of Techno-Commercial Bids:
4.1.1 The un-priced Bids shall be opened in above mentioned e-procurement portal at EIL,
New Delhi Office on the specified date and time given in the LIB or on the extended
date and time, as will be intimated in the said website(s). The participating bidders
can view the bid opening details online at their respective places. There will no
separate public opening and bidder shall not be called for attending the bid opening.
However, if bidder desires to attend the bid opening, they may witness it at EIL’s
designated New Delhi office as mentioned in LIB. Bidder’s representative must carry
authorization letter in this regard.

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4.1.2 Only the name of Bidders who submitted Bids within the final bid due date and time
of submission shall be read out during the Unprice Bid Opening.
4.2 Clarification & Additional Information
4.2.1 As the technical, commercial, legal issues, etc. with respect to the provisions of the
Bidding document are discussed and clarified in the Pre-Tender Meet / Pre-Bid
Meeting, it is expected that the Bid submitted by the Bidder shall be a fully
responsive Bid in compliance with the provisions of the Bidding document and
deviations are not expected. Non-attending the Pre-Tender Meet and/or Pre-bid
Meeting by the competent representatives of the Bidder including technical,
commercial and legal personnel does not absolve the Bidder from submitting a
bidding provisions’ compliant Bid at the first instance and it will be deemed
considered that Bidder has understood all provisions of the Bidding document in
case of non-attending the Pre-Tender Meet and/or Pre-Bid Meeting and they do not
require any clarifications/ have any deviations on the various provisions of the
Bidding document.
4.2.2 The Bidder should submit all requisite documents, information along with their e-Bid
as per the requirement of the Bidding document.
4.2.3 However, during the Bid evaluation, Employer/EIL , at its discretion, may ask from
Bidder certain clarifications/information on the Bid, to submit additional or outstanding
documents or may request to withdraw deviations as required, for compliance to the
Bidding document requirement/comparison of the Bids etc. Bidder shall submit their
reply/ all such clarifications/ additional documents, within the cut-off date unless
otherwise specified in the Letter/Email.
4.2.4 Employer/EIL may, at its discretion, either extend such cut-off date on Bidder’s
request based on its merit, or evaluate the Bid based on the information available as
on the last date of submission of providing such clarifications/ documents by the
Bidder.
4.2.5 While seeking techno-commercial clarifications, Bidders shall be advised that price
implications on account of clarifications will not be permitted since Employer/ EIL
have not changed the specifications / scope spelt out in the bidding document. Price
implications against TQs/ CQs, shall not be considered for evaluation and bids
seeking such price implications shall be rejected.

4.2.6 In the event of unsolicited price increase, subsequent to the bid due date and before
price bid opening, the bid of such bidder shall be rejected, in case the bidder does
not agree to withdraw the price increase.

In the event of unsolicited price increase after price bid opening, the same shall be
treated as null and void and bid shall be evaluated and considered for award without
considering the price increase. In a situation where the bidder does not accept the
order without Price increase submitted by him, punitive action as per company policy
shall be taken against the Bidder.

4.2.7 Any unsolicited reduction in price offered by a bidder within the bid validity period by
way of discount or revised prices, subsequent to the bid due date, shall not be taken
into account for price comparison. However, such reduction in price shall be taken

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into account for ordering if such bidder happens to be recommended as per the
originally quoted prices.

4.3 Techno-Commercial Discussions


4.3.1 It is the responsibility of the Bidder to submit a compliance/responsive Bid with
respect to the provisions of the Bidding document modified to the extent of
Amendments/ Addendums/ Corrigendum, if any, at the first instance itself at stated
above, so that Bid evaluation can be completed without seeking any
information/clarification/withdrawal of deviations etc.
4.3.2 Techno-commercial discussions with Bidder shall be arranged, if needed. Bidder
shall depute their authorised representative(s) for attending the discussions at the
said EIL office, at New Delhi, India and will be intimated with short notice. Bidders are
expected to arrange their Visas for participation in the meeting without requesting for
postponing the scheduled meeting dates. The representative(s) attending the
discussions shall produce authorisation letter from Bidder to attend the discussions
on technical, commercial, legal issues including deviations and sign the minutes of
meeting on behalf of the Bidder. The authorised representatives must be competent
and empowered to settle all technical, commercial and legal issues including
deviations, if any.
4.3.3 None of the exceptions/ deviations/ alterations in terms and conditions, technical
specifications retained by Bidder shall be part of terms and conditions of the
Licensor Selection Agreement (LSA) unless agreed by EMPLOYER/ EIL in writing
either during the techno-commercial bid evaluation or during the final negotiation (if
required) with the Employer.
4.4 Evaluation Criteria
4.4.1 Technical and Commercial Evaluation
4.4.1.1 Technical acceptability shall be ascertained in accordance with requirements
mentioned in Technical Specifications/documents included in the Bidding document.
4.4.1.2 Commercial Acceptability shall be ascertained in accordance with Bidder’s
compliance to LIB, Instruction to Bidders, Commercial Terms and Conditions and
Schedule of Prices (unpriced) etc.
4.4.2 Price Bid Opening
4.4.2.1 The Bidders who are considered technically and commercially acceptable, shall be
considered for Price Bid opening. Bidders selected for opening of their price bids
shall be informed about the date and time of price bid opening.
The price Bids shall be opened in above mentioned e-procurement portal at EIL, New
Delhi Office on the specified date and time, as will be intimated. The participating
bidders can view the bid opening details online at their respective places. There will
no separate public opening and bidder shall not be called for attending the price bid
opening. However, if bidder desires to attend the price bid opening, they may witness
it at EIL’s designated New Delhi office as mentioned in LIB. Bidder’s representative
must carry authorization letter in this regard.
4.4.2.2 The prices as quoted in Schedule of Prices shall be read out to the Bidders. Bidder’s
authorised representative, if present during the price bid opening, shall sign the Price
Opening Statement.

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Rev 00 Page 13 of 15

4.5 Evaluation of Price Bid


4.5.1 The prices quoted by the Bidder in e-price Bid shall be checked for arithmetic errors
based on prices filled in by the Bidder in the formats issued. In case of arithmatical
errors, the correction shall be carried out on the following basis:
4.5.1.1 When there is a difference between the rate quoted in words and figures for an item,
the rate which corresponds to the amount worked out by the bidder for the item
based on notional quantity specified, shall be taken as correct.
4.5.1.2 When the rate quoted by the Bidder in figures and words tallies but the amount is
incorrect, the rate quoted by the Bidder shall be taken as correct
4.5.1.3 When it is not possible to ascertain the correct rate as detailed above, the rate
quoted for the item in words shall be adopted as the quoted rate.
4.5.2 Price submitted by the Bidder shall be taken into consideration while computing Net
Present Value (NPV).
4.5.3 Techno-Economic evaluation of the Bids will then be carried out by calculating Net
Present Value (NPV) for the final selection of Licensor as described in the Technical
Specifications. The Licensor/Bidder with the highest NPV will be recommended
for selection of Licensor.
4.6 Loading Factors
4.6.1 Commercial Loading, No loading on account of deviations is envisaged for bid
evaluation as the bids are solicited on Zero Deviation Basis.
4.6.2 Technical Loading, if any, based on Technical evaluation of Bid (as indicated in
TBA).
4.7 Process to be confidential
Information related to the examination, clarification, evaluation and comparison of
Bids and recommendations for Licensor Selection shall not be disclosed to Bidder(s)
or any other person not officially concerned with such process. Any effort by Bidder
to influence the Employer’s/ EIL’s processing of Bidding or Licensor selection
process may result in rejection of such Bidder’s Bid.
4.8 Employer’s Right to accept or Reject a Bid
Employer reserves the right to accept or reject any Bid, or to annul the entire Bidding
process or to reject all Bids at their sole discretion without assigning any reason
whatsoever. Such decisions by Employer shall bear no liability whatsoever
consequent upon such decisions.
4.9 Rejection Criteria
4.9.1 Employer/EIL expect Bidder’s compliance to the requirement of Bidding document
modified to the extent of Amendments/ Addendums/ Corrigendums, if any, without
any deviation/ stipulation and submit a responsive Bid
4.9.2 In any case, no exception or deviation shall be accepted on the stipulations of the
Bidding document and Bid containing deviations/ stipulations to provisions of Bidding
Document shall lead to rejection of such Bid.

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Rev 00 Page 14 of 15

5.0 AWARD AND CONTRACT AGREEMENT WITH LICENSOR


5.1 Award
5.1.1 The Bidder, whose Bid is technically and commercially accepted by Employer as per
terms and conditions of the Bidding document and its Amendment etc. (if any), shall
be issued a Letter of Acceptance (LOA) prior to the expiry of Bid validity period.
Bidder shall confirm acknowledgement by returning a signed copy of the same.
Employer/ EIL shall not be obliged to furnish any information/ clarification/
explanation to the unsuccessful Bidders regarding non-acceptance of their Bids.
Employer/ EIL shall correspond only with the successful Bidder.
5.1.2 For proprietary item(s) and proprietary and non-proprietary Catalyst and propritary
Chemicals, Absorbents, Adsorbents, & Additives (as applicable and more
specifically defined in Technical specifications included in the bidding document), the
purchase order shall be placed at later date(s) considering the physical progress at
site, shelf life and the delivery schedule of the items.
5.2 Contract Agreement
The successful Bidder shall be required to execute formal Agreement(s) with the
Licensee within the specified period. This Bidding Document along with all its
Amendments along with negotiated/agreed terms and conditions, if any, shall form
part of the Agreement.
6.0 INTEGRITY PACT
Integrity pact for this Bidding Document is applicable. Bidder shall submit the duly
filled in signed, stamped copy of Integrity pact in their bid.

7.0 CARTEL FORMATION


In case any Bidder is found to be involved in cartel formation, their Bid will not be
considered for further evaluation/ placement of order. Such bidder will also be
debarred from bidding in future.
8.0 FRAUDULENT PRACTICES
8.1 The Employer requires that Bidders /Licensor observe the highest standard of ethics
during the Bidding Process/execution of Contract Agreement. “Fraudulent Practice”
means a misrepresentation of facts in order to influence the award of a Contract to
the detriment of the Employer, and includes collusive practice amongst Bidders (
prior to or after Bid submission) designed to establish bid prices at artificial non-
competitive levels and to deprive the Employer of the benefits of free and open
competition.
8.2 The Employer will reject a Bid for award if it determines that the bidder recommended
for award has engaged in fraudulent practices in competing for the Contract in
question.
Bidder is required to furnish the complete and correct information/ documents
required for evaluation of their Bids, if the information/ documents forming basis of
evaluation is found to be false/ forged, the same shall be considered adequate
ground for rejection of Bids

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Rev 00 Page 15 of 15

8.3 In case, the information/ document furnished by the Bidder/ Licensor forming basis of
evaluation of his Bid is found to be false/ forged after the award of the contract,
Employer shall have full right to terminate the contract Agreement and get the
remaining job executed at the risk & cost of such Bidder/ Licensor without any
prejudice to other rights available to Employer under the contract such as forfeiture of
CPBG/Security Deposit, withholding of payment etc.
8.4 In case, this issue of submission of false document comes to the notice after
execution of work, Employer shall have full right to forfeit any amount due to the
Bidder/ Licensor along with forfeiture of CPBG/Security Deposit furnished by the
Licensor.
8.5 Further, such Bidder/ Licensor shall be put on Blacklist/ Holiday/Negative List of
Employer debarring them from future business with Employer and EIL for a time
period, as per the prevailing policy of Employer and EIL.
9.0 REQUIREMENT OF EMPLOYEMENT VISA FOR FOREIGN NATIONALS
9.1 All foreign nationals coming to Mongolia for execution of Projects/Contracts will have
to apply for Employment Visa only and that grant of Employment Visa would be
subject to strict adherence of following norms:
i) Employment Visa is granted only for the skilled and qualified professionals or
to a person who is being engaged or appointed by a Company, Organisation,
Industry or Undertaking etc. in Mongolia on contract or employment basis at a
senior level, skilled position such as technical expert, senior executive or in
managerial position etc.
ii) Request for Employment Visa for jobs for which large number of qualified
Mongolian are available, is not considered.
iii) Under no circumstances an Employment Visa is granted for routine, ordinary
secretarial / clerical jobs.
Bidders are advised in their own interest to check latest Visa rules from Mongolian
Embassy / High Commission in their country in case foreign nationals are required to
be deputed to Mongolia during execution of the Contract.
10.0 GENERAL
10.1 The term “Landed cost” wherever specified in Technical specification for
replacement of Catalyst, chemicals, absorbents, adsorbents shall mean the total
cost considering basic cost of material and it’s applicable taxes and duties including
cost of transportation and delivering at project site.
10.2 Methodology of Procurement of Precious Metal (Platinum) by Licensor on behalf of
Licensee (If applicable) shall be as per ANNEXURE-L TO ITB.

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Rev 00 Page 1 of 21

ANNEXURE – A TO ITB

BID COMPLIANCE
(TO BE SUBMITTED ON THE LETTERHEAD OF BIDDER)

NAME OF W ORK : SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING


PACKAGE AND OTHER RELATED SERVICES FOR LPG
TREATING UNIT

BIDDING DOCUMENT NO. : RC/B285-000-LA-TN-8601/1006

We ……………………………………………………… [Insert Name of Bidder] hereby agree


to fully comply with, abide by and accept without variation, deviation or reservation all
technical, commercial and other conditions of the Bidding Document and its Technical &
Commercial Amendments, issued by EIL on behalf of Employer.

We further hereby waive, withdraw and abandon any and all assumptions, deviations,
variations, objections or reservations whatsoever hereto set out, given or indicated in our
offer, clarifications, correspondence, communications, or otherwise with a view that the
price bid submitted may be treated to conform to, in all respects, with the terms and
conditions of the said Bidding Document including all Technical and Commercial
Amendments.

We further hereby confirm that the price quoted in the price bid are as per the provisions
of the Bidding document and there is no deviation to the provisions in the price bid.

For and on behalf of


Authorised signatory holding POA

Signature:
Date:

Name:
Designation:
Company Seal

Page 21 of 204
A N N E XU R E S T O IT B

Rev 00 Page 2 of 21

ANNEXURE –B TO ITB

COMMERCIAL QUESTIONNAIRE
NAME OF W ORK : SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING
PACKAGE AND OTHER RELATED SERVICES FOR LPG
TREATING UNIT

BIDDING DOCUMENT NO. : RC/B285-000-LA-TN-8601/1006


NAME OF BIDDER :

SL. EIL’S QUERIES BIDDER’S


NO. REPLY/CONFIRMATION
1.0 Bid Validity: Confirm that your Bid is valid 6 Months
from the Bid Due Date/extended Bid Due Date (as
applicable).
1.0 Please confirm that while submitting your ‘Price’, you
have taken into consideration the following:-
1.1 ‘Price’ has been submitted exactly as per the format
included in the Bidding Document under section
‘Schedule of Prices’ (SOP).
1.2 Unpriced copy of Schedule of Prices (SOP) duly
signed (i.e. Prices to be replaced by the word as
“Quoted”) as a confirmation that the Prices has been
submitted in Price Part of Bid.
1.3 Please confirm that Quantity for each type of catalysts,
Chemicals, Adsorbents, Absorbents, Additive (as
applicable) have been separately indicated in priced
part only.

1.4 Confirm that Quantity of Catalyst, Chemicals,


Adsorbents, Absorbents, Additive (as applicable as per
Technical Specifications) with Unit rate has been
mentioned in the Price Part .
Confirm that contingencies towards losses & spillage
of Catalyst, Chemicals, Adsorbents, Absorbents,
Additives (as applicable as per Technical
Specifications) have been considered in the quoted
price.
Confirm that Quantity of Metals and names of Metals
are excluded from Catalyst, Chemicals, Adsorbents,
Absorbents, Additive (as applicable as per Technical
Specifications) have been indicated in the Priced Part
only.

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Rev 00 Page 3 of 21

SL. EIL’S QUERIES BIDDER’S


NO. REPLY/CONFIRMATION
1.5 Confirm that Mandatory Services as per SOP (FORM–
B2) has been quoted for the Scope of services
covered in the Technical Specifications and Terms &
Conditions of Bidding Document.
1.6 Confirm that break up of man days for Mandatory
Services have been provided under SOP(FORM–
B2A) included in Bidding Document.
1.7 Confirm that the you have quoted Additional services
(Per-diem rates) in SOP(FORM-B4) & Breakup of
Mandays of Additional Services in SOP(FORM-B4A)
in line with provision of Bidding Document.
1.8 Confirm that quoted lump sum prices of Training as
per SOP(FORM–B3) is in line with provision of Bidding
Document.
1.9 Please confirm that “Escalation Rates” for Proprietary
Items, Mandatory Services, Additional Services,
Training and Catalysts/Chemicals/Adsorbents/
Absorbents/ Additives have been quoted as per
SOP(FORM–B7) in Price Part.

Confirm that in case “Escalation Rates” are not


specified as per SOP(FORM-B7), then the prices
quoted as per SOP(FORM-B2) to SOP(FORM-B6)
shall be considered valid and firm up to 31.12.2026
and no escalation shall be payable.

Confirm that prices (License Fee and BDEP Fee) as


quoted in SOP(FORM-B1) are FIRM till the execution
of work and no escalation shall be payable.

2.0 Please confirm that you have complied with all the
commercial terms and conditions of the Bidding
Document and have submitted Bid Compliance
(Annexure-A to ITB).

Confirm that Exceptions/Deviations mentioned in your


Bid shall not be taken into consideration and shall be
deemed considered unconditionally withdrawn in
favour of the stipulations of the Bidding document.
3.0 Confirm that the ‘Net Present Value’ (NPV) shall be
calculated on the basis of philosophy mentioned in the
Bidding Document supplemented by other details as
decided by Employer/EIL.
4.0 Confirm that Integrity Pact, duly signed and stamped,
as per Annexure-C to ITB submitted

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Rev 00 Page 4 of 21

SL. EIL’S QUERIES BIDDER’S


NO. REPLY/CONFIRMATION
5.0 Confirm Power of Attorney (POA) in favour of the
person who has signed the Bid is submitted as per
relevant clause of ITB.
6.0 Confirm that all Technical Details/documents required
as per Technical Specification has been submitted
alongwith Bid.
7.0 Confirm that Table of Contents (Master Index), duly
signed and stamped, on each page, has been
submitted in token of acceptance of Bidding
Document.
8.0 Confirm that all Technical and Commercial
Amendments (if issued prior to Bid submission) are
duly signed and submitted in e-procurement portal as
a confirmation of your Bid considering these
Amendments.
9.0 Please indicate the Delivery Schedule of Catalyst, ___________ Months from
Chemicals, Adsorbents, Absorbents, Additives (as the placement of order on
applicable as per Technical Specifications) CFR Port of Entry Basis
[Tianjin, China]

10.0 Please indicate the Delivery Schedule of Proprietary ___________ Months from
Equipment/items the placement of order on
CFR Port of Entry Basis
[Tianjin, China]
11.0 Confirm that you have submitted Floor Rate for
Molybdenum in SOP(FORM B6).
Also confirm that support Letter from Supplier of
Molybdenum is enclosed in your offer.
12.0 Confirm that all the documents as per ITB Clause no.
2.6 are submitted in e-procurement portal in the
manner specified

For and on behalf of


Authorised signatory holding POA

Signature:
Date:

Name:
Designation:
Company Seal

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Rev 00 Page 5 of 21

ANNEXURE –C TO ITB

INTEGRITY PACT
[shall be provided later]

Page 25 of 204
A N N E XU R E S T O IT B

Rev 00 Page 6 of 21

ANNEXURE – D TO ITB

FOR BIDDER'S QUERIES FOR PRE BID CONFERENCE/ MEETING

SL. REFERENCE OF BIDDING BIDDER'S QUERY EMPLOYER'S


NO. DOCUMENT REPLY

Section Page Clause Subject


No. No.

NOTE: 1. The Pre-Bid Queries may be sent to:


amit.agarwal@eil.co.in, mayank.jain@eil.co.in, manoj.kumar.pur@eil.co.in;
r.choudhary@eil.co.in

2. Bidder shall must send editable word file of the queries in the above format
only.

For and on behalf of


Authorised signatory holding
POA

Signature:
Date:
Name:
Designation:
Company Seal

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Rev 00 Page 7 of 21

ANNEXURE – E TO ITB

PROFORMA FOR ACKNOWLEDGEMENT LETTER OF BIDDING


DOCUMENT
(TO BE SUBMITTED IN BIDDER’S OWN LETTER HEAD)

Ref No. : DATE:

To

ENGINEERS INDIA LIMITED


1, BHIKAIJI CAMA PLACE
NEW DELHI-110066
Tel NO.: +91 011 2676 2729 / 3368 / 3364

Attn.: Ms. Rekha Choudhary GM (SCM)

SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING


SUBJECT PACKAGE AND OTHER RELATED SERVICES FORLPG
TREATING UNIT

BIDDING DOCUMENT NO. RC/B285-000-LA-TN-8601/1006

Dear Sir,

We hereby acknowledge receipt of a complete set of Bidding Document along with all
enclosures for the subject work as per the Master Index for preparation and submission of
the Bid.

We undertake that the contents of the above Bidding Document shall be kept confidential
and further that specifications and documents shall not be transferred and that the said
documents are to be used only for the purpose for which they are intended.

A) We intend to electronic bid as requested for the subject works and furnish following
details with respect to our quoting office:

i. Address for Correspondence


Contact Person & Designation
Telephone Number
Mobile Number
Email Address
ii. Registered Office
Contact Person & Designation

Page 7 of 21

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Rev 00 Page 8 of 21

Telephone Number
Mobile Number
Email Address
iii. Contact person at Delhi, if any
Contact Person & Designation
Telephone Number
Mobile Number
Email Address

B) We are unable to submit e-bid for the reasons given below.

Reasons for non-submission of e-Bid:


___________________________________________________________________

__________________________________________________________________

___________________________________________________________________

For and on behalf of


Authorised signatory holding POA

Signature:
Date:
Name:
Designation:
Company Seal

NOTE: Bidder is requested to furnish the details mentioned at (A) and (B) within 7 days from
the date of uploading the Bidding Document in e-procurement Portal.

Page 8 of 21

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Rev 00 Page 9 of 21

ANNEXURE – F TO ITB

PROFORMA OF CONTRACT CUM PERFORMANCE BANK


GUARANTEE

[shall be provided later]

Page 9 of 21

Page 29 of 204
A N N E XU R E S T O IT B

Rev 00 Page 10 of 21

ANNEXURE – G TO ITB

FORMAT FOR ADVANCE PAYMENT GUARANTEE

[shall be provided later]

Page 10 of 21

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A N N E XU R E S T O IT B

Rev 00 Page 11 of 21

ANNEXURE – H TO ITB

SELF DECLARATION
NAME OF W ORK : SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING
PACKAGE AND OTHER RELATED SERVICES FOR LPG
TREATING UNIT

BIDDING DOCUMENT NO. : RC/B285-000-LA-TN-8601/1006


NAME OF BIDDER :

Bidder’s declaration as furnished herein below shall supersede the stipulations mentioned
elsewhere in their bid.

SL. DESCRIPTION BIDDER'S DECLARATION


NO.
1. We confirm that we are not involved in
any Litigation/ Arbitration,
OR
We confirm that the current Litigation/
Arbitration, in which bidder is involved will
not have any impact in work being
tendered or in entering into contract
during the validity of offer and performing
the contract till all the contractual
obligations under contract are performed.
2. We confirm that we are not blacklisted by
any multilateral agency or any authority in
India or Mongolia as on due date of
submission of bid.
3. We confirm that we are not under
liquidation, court receivership or similar
proceedings.
4. We confirm that the content of the
Bidding Document including schedule of
prices and Corrigendum / Addendum (if
any) have not been altered or modified.

For and on behalf of


Authorised signatory holding POA

Signature:
Date:
Name:
Designation:
Company Seal

Page 11 of 21

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A N N E XU R E S T O IT B

Rev 00 Page 12 of 21

ANNEXURE –I TO ITB

FORMAT FOR POWER OF ATTORNEY (POA) OF BIDDER


(To be submitted in non-judicial Stamp Paper of appropriate value or as per laws of
Bidder’s Country)

NAME OF W ORK : SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING


PACKAGE AND OTHER RELATED SERVICES FOR LPG
TREATING UNIT

BIDDING DOCUMENT NO. : RC/B285-000-LA-TN-8601/1006

Know all men by these presents, W e _____________________________________________


(name and address of the registered office) do hereby constitute, appoint & authorize Mr./Ms.
_____________________________________________ (name and residential address) who is
presently employed with us and holding the position of _______________________as our
attorney, to do in our name and on our behalf, all such acts, deeds and things necessary in
connection with or incidental to our Bid, including signing and submission of all documents and
providing information/responses to Employer, representing us in all matters before Employer
and generally dealing with Employer and their Consultants in all matters in connection with our
Bid including negotiation of Terms and conditions, Price negotiation, signing of Agreements, as
applicable, for the subject work.

W e hereby agree to ratify all acts, deeds and things lawfully done by our said attorney pursuant
to this Power of Attorney and that all acts, deeds and things done by our aforesaid attorney shall
be deemed to have been directly done by us.

W e further certify that vide documents reference ______________ dated _______, we have the
power to sub-delegate and issue this POA as per Company Charter

For & on behalf of


<Name of Bidder>

__________________________
Signature of person in whose favour POA is issued
Name:
Designation:

Page 12 of 21

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A N N E XU R E S T O IT B

Rev 00 Page 13 of 21

Date:

Signature attested and Accepted

_______________________ (signature)
(Name, Title and Address) of the Attorney
Designation:
Date & Seal
Note

W herever required, the executant(s) should submit for verification the extract of the charter
documents and/or documents such as board of resolution passed for this purpose (in case of
company) in favour of the Person executing this Power of Attorney for the delegation of power
hereunder on behalf of the executant(s).

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A N N E XU R E S T O IT B

Rev 00 Page 14 of 21

ANNEXURE – J TO ITB

E-TENDERING METHODOLOGY

Instructions for Online Bid Submission:


The bidders are required to submit soft copies of their bids electronically on the CPP Portal
(URL: https://eprocure.gov.in) only, using valid Digital Signature Certificates. The instructions
given below are meant to assist the bidders in registering on the CPP Portal, prepare their
bids in accordance with the requirements and submitting their bids online on the CPP Portal.
More detailed information useful for submitting online bids on the CPP Portal may be obtained
at:
https://eprocure.gov.in/eprocure/app .
REGISTRATION
1) Bidders are required to enroll on the e-Procurement module of the Central Public
Procurement Portal (URL: https://eprocure.gov.in/eprocure/app) by clicking on the link
“Click here to Enroll” on the CPP Portal is free of charge.
1) As part of the enrolment process, the bidders will be required to choose a unique
username and assign a password for their accounts.
2) Bidders are advised to register their valid email address and mobile numbers as part
of the registration process and submit in EIL tender portal for updation of records
(http://tenders.eil.co.in) . These details would be used for any communication from
the CPP Portal.
3) Upon enrolment, the bidders will be required to register their valid Digital Signature
Certificate (DSC) (Class II or Class III Certificates with signing key usage) issued by
any Certifying Authority recognized by CCA India (e.g. Sify / TCS / nCode / eMudhra
etc.), with their profile.
4) Foreign Bidders have to refer “DSC details for foreign Bidders” for Digital signature
Certificates requirements which comes under Download Tab at
http://eprocure.gov.in/eprocure/app and the remaining part is same as above and
below.
5) Only one valid DSC should be registered by a bidder. Please note that the bidders
are responsible to ensure that they do not lend their DSC’s to others which may lead
to misuse.
6) Bidder then logs in to the site through the secured log-in by entering their user ID /
password and the password of the DSC / e-Token.
SEARCHING FOR TENDER DOCUMENTS
1) There are various search options built in the CPP Portal, to facilitate bidders to
search active tenders by several parameters. These parameters could include Tender
ID, organization name, location, date, value, etc. There is also an option of advanced
search for tenders, wherein the bidders may combine a number of search parameters

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A N N E XU R E S T O IT B

Rev 00 Page 15 of 21

such as organization name, form of contract, location, date, other keywords etc. to
search for a tender published on the CPP Portal.
1) Once the bidders have selected the tenders they are interested in, the same can be
moved to the respective ‘My Tenders’ folder. This would enable the CPP Portal to
intimate the bidders through SMS / e-mail in case there is any corrigendum issued to
the tender document.
2) The bidder should make a note of the unique Tender ID assigned to each tender, in
case they want to obtain any clarification / help from the Helpdesk.
PREPARATION OF BIDS
1) Bidder should take into account any corrigendum published on the tender document
before submitting their bids.
1) Please go through the tender advertisement and the tender document carefully to
understand the documents required to be submitted as part of the bid. Please note
the number of covers in which the bid documents have to be submitted, the number
of documents - including the names and content of each of the document that need to
be submitted. Any deviations from these may lead to rejection of the bid.
2) To avoid Network congestion, Bidder is recommended to upload file size of up to
Maximum 35 MB per part. However, in case file size exceeds 35 MB, bidder may
compress the files by scanning with 75 dpi setting as per s.no 4 below and can use
additional 25 MB space (“My Documents”) provided to the bidder as per s.no 5 below.
3) Bidder, in advance, should get ready the bid documents to be submitted as indicated
in the tender document and generally, they can be in PDF / XLS / RAR / DW F
formats. Bid documents may be scanned with 75 dpi with black and white
option. However, Price Schedule / SOR shall be strictly in RAR format without
altering any contents of the formats uploaded by EIL in their Bidding
Document.
4) To avoid the time and effort required in uploading the same set of standard
documents which are required to be submitted as a part of every bid, a provision of
uploading such standard documents (e.g. PAN card copy, annual reports, auditor
certificates etc.) has been provided to the bidders. Bidders can use “My Documents”
area available to them to upload such documents. These documents may be directly
submitted from the “My Documents” area while submitting a bid, and need not be
uploaded again and again. This will lead to a reduction in the time required for bid
submission process.

SUBMISSION OF BIDS
1) Bidder should log into the site well in advance for bid submission so that he/she
upload the bid in time i.e. on or before the bid submission time. Bidder will be
responsible for any delay due to other issues.

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Rev 00 Page 16 of 21

1) The bidder has to digitally sign and upload the required bid documents one by one as
indicated in the tender document.
2) Bidder has to select the payment option as “offline” to pay the tender fee / EMD as
applicable and enter details of the instrument.
3) Bidder should prepare the EMD as per the instructions specified in the tender
document. The original should be posted/couriered/given in person to the Tender
Processing Section, with in 7 calendar days of the date of Unpriced bid opening. The
details of the DD/any other accepted instrument, physically sent, should tally with the
details available in the scanned copy and the data entered during bid submission
time. Otherwise the uploaded bid will be rejected.
4) A Price Bid format has been provided with the tender document to be filled by all the
bidders. Bidders are requested to note that they should necessarily submit their
financial bids in the format provided and no other format is acceptable. Bidders are
required to download the Price Bid file, open it and complete the cells with their
respective financial quotes and other details (such as name of the bidder). No other
cells should be changed. Once the details have been completed, the bidder should
save it and submit it online, without changing the filename. If the Price Bid file is
found to be modified by the bidder, the bid will be rejected.
5) The server time (which is displayed on the bidders’ dashboard) will be considered as
the standard time for referencing the deadlines for submission of the bids by the
bidders, opening of bids etc. The bidders should follow this time during bid
submission.
6) All the documents being submitted by the bidders would be encrypted using PKI
encryption techniques to ensure the secrecy of the data. The data entered cannot be
viewed by unauthorized persons until the time of bid opening. The confidentiality of
the bids is maintained using the secured Socket Layer 128 bit encryption technology.
Data storage encryption of sensitive fields is done.
7) The uploaded tender documents become readable only after the tender opening by
the authorized bid openers.
8) Upon the successful and timely submission of bids, the portal will give a successful
bid submission message & a bid summary will be displayed with the bid no. and the
date & time of submission of the bid with all other relevant details.
9) The bid summary has to be printed and kept as an acknowledgement of the
submission of the bid. This acknowledgement may be used as an entry pass for any
bid opening meetings.

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A N N E XU R E S T O IT B

Rev 00 Page 17 of 21

RETENDER
Please note that if Tender has been retendered, than it is mandatory for the
bidder to submit their offer again on CPP Portal.

WITHDRAWAL OF BID
It may please be noted that bidders now have an additional feature of
withdrawing their bids before due date and time. After submitting the bid on the
CPP Portal, if the bidder wishes to withdraw his bid, he can do so. However, if
the bidder withdraws his bid, he will be exempted from further participation in
the tender and won’t be able to submit his bid again for that particular tender.

ASSISTANCE TO BIDDERS
1) Any queries relating to the tender document and the terms and conditions contained
therein should be addressed to the Tender Inviting Authority for a tender or the
relevant contact person indicated in the tender.
1) Any queries relating to the process of online bid submission or queries relating to
CPP Portal in general may be directed to the 24 x 7 CPP Portal Helpdesk. The
contact number for the helpdesk is 1800-3070-2232 and Mobile Nos +91-
7878007972, +91-7878007973.

Page 17 of 21

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A N N E XU R E S T O IT B

Rev 00 Page 18 of 21

ANNEXURE-K to ITB

INFORMATION ABOUT BIDDER


NAME OF W ORK : SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING
PACKAGE AND OTHER RELATED SERVICES FOR LPG
TREATING UNIT

BIDDING DOCUMENT NO. : RC/B285-000-LA-TN-8601/1006


NAME OF BIDDER :

S.No. DESCRIPTION BIDDER’S REPLY

1.1 Legal Name of the Bidder(Company)

1.1 Date of Business (Company) Day Month Year


Establishment

1.2 Country of registration and Registration


Number:

1.3 Address of Registered Office ____________________________________

____________________________________

City :_____________________________

District :_____________________________

State :_____________________________

PIN/ZIP:_____________________________

1.4 Operation/Working Address if different ____________________________________


from above:
___________________________________

City :_____________________________

District :_____________________________

State :___________________________

Page 18 of 21

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A N N E XU R E S T O IT B

Rev 00 Page 19 of 21

S.No. DESCRIPTION BIDDER’S REPLY

PIN/ZIP:_________________________

1.5 Telephone Number( Incl. ISD & Area


code, as applicable):

1.6 Name & Mobile no. of Concerned


person(s)

1.7 E-mail address:

1.8 Internet W ebsite (If applicable)

1.9 ISO Certification, if any

(Signature & Seal of the Bidder holding POA)

Page 19 of 21

Page 39 of 204
A N N E XU R E S T O IT B

Rev 00 Page 20 of 21

ANNEXURE – L TO ITB

PROCUREMENT OF PRECIOUS METAL (PLATINUM) BY LICENSOR


ON BEHALF OF LICENSEE
NAME OF W ORK : SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING
PACKAGE AND OTHER RELATED SERVICES FOR LPG
TREATING UNIT

BIDDING DOCUMENT NO. : RC/B285-000-LA-TN-8601/1006


NAME OF BIDDER :

Conditions with respect to the procurement of Catalyst containing Platinum metal is


to be quoted by bidder in the bid shall be as follows:

a. Upon receipt of Purchase Order from the Licensee, Licensor on behalf of Licensee,
shall purchase the Platinum required by Licensor to manufacture the Catalyst which
contains Platinum metal.

a. Licensee shall provide advance payment against submission of equivalent Bank


Guarantee by the Licensor, valid till the date of receipt of Catalyst at site by the
Licensee, towards procurement of Platinum for the quantity quoted by Licensor in the
Bid for manufacturing the Catalyst.

For the purpose of availing advance, Licensor shall submit a pro-forma invoice for
purchasing of the Platinum metal, consisting of the following:

i) Price of Platinum established as per the Precious Metal (PM) Price declared by
London Bullion Market Association (LBMA) on London Metal Exchange
(LME) available on the day previous to the date of Proforma Invoice. Amount
shall be arrived at as the product of Price as above and the quantity of Platinum
quoted by the Licensor in their bid.

ii) Additional 10% contingency on Amount as arrived at para i) above.

The advance paid by the Licensee shall be the sum of amount arrived at [b. (i) & (ii)]
above. The advance shall be settled and reconciled based on the actual purchase
price and quantity as mentioned in the bid. The detailed mechanism for arriving at the
actual purchase price for procurement of Platinum metal shall be mutually
discussed and agreed upon between Employer and the Licensor in a detailed
Catalyst Supply Agreement, which shall be finalized post award with the successful
Licensor.

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Rev 00 Page 21 of 21

b. All Platinum transactions will be arranged through Licensee’s Platinum stock account

c. The quantity of Platinum metal quantity mentioned in percentage under Schedule of


Prices, so as to arrive at the quantity of metal in Kgs. at least up to 4 decimal
places) quoted / confirmed by the Licensor in the bid is firm and inclusive of any
losses required by the Licensor during the manufacturing / conversion/ formulation /
impregnation and handling of the Catalyst by the Licensor.

Bidder shall mention below the losses in terms of percent of the total Platinum metal
quantity (as indicated above) required by the Licensor during the manufacturing /
formulation / impregnation and handling of the catalyst by the Licensor in their bid.

Losses in percentage (%) of the total Platinum quantity ........................%

d. The Licensor shall specify the exact form/ grade of Platinum and the purity of the
Platinum required by them as below.

Platinum

Form/grade. ...............

Purity....................

e. The base cost of Catalyst shall include all charges but not limited to procurement
charges, conversion charges, service charges, bank charges, for taking the delivery
of Platinum from their sub-vendor’s place to the place required by the Licensor for
manufacturing/ conversion/ formulation/ impregnation and handling of Catalyst.

f. For the purpose of evaluation and NPV analysis, the previous day PM price of
Platinum declared on London Metal Exchange (LME) available on the day of opening
of the price bid and the quantity of Platinum quoted by the Licensor in the bid shall be
considered for evaluation and NPV calculation.

g. Post award, Licensee may, enter into a detailed Catalyst Supply Agreement on the
above terms and conditions and further detailed terms and conditions shall be
mutually discussed and agreed upon by and between the Licensee and the Licensor
regarding the procurement and reconciliation of Platinum metal.

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Page 41 of 204
Document No. 7-1841 -1001
COMMERCIAL TERMS Rev. No. 0
AND CONDITIONS Page 1 of 30
(Job. No.: B285) .Pa

COMMERCIALTERMS AND CONDITIONS (CTC)

FOR

LICENSOR SELECTION

FOR

CRUDE OIL REFINERY PLANT IN MONGOLIA

Template No. 5-0000-0001-T1 Rev. 1 Copyrights ElL - All rights reserved

Page 42 of 204
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COMMERCIAL TERMS Rev. No. 0
AND CONDITIONS Page 2 of 30
(Job. No.: B285) .Pa

Abbreviations:
ABBREVIATION DESCRIPTION

BDEP : Basic Design and Engineering Package

BQC : Bidder Qualification Criteria

CFR : Cost and Freight

CLIENT Mongol Refinery State Owned LLC

CPBG /BG : Contract Performance Bank Guarantee/ Bank Guarantee

DOP Delegation of Power

DTAA : Double Taxation Avoidance Agreement

EIL Engineers India Limited

FOB : Free on Board

GST : Goods and Services Tax

ITB Instructions To Bidders

KOM : Kick Off Meeting

L/C : Letter of Credit

LF : License Fee

LOA Letter of Acceptance

MC : Mechanical Completion

NPV : Net Present Value

P&ID : Piping and Instrumentation Diagram

PFD : Process Flow Diagram

PGTR : Performance Guarantee Test Run

PMC : Project Management Consultant

PRS : Price Reduction Schedule

PSU : Indian Public Sector Undertaking

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Page 43 of 204
Document No. 7-1841 -1001
COMMERCIAL TERMS Rev. No. 0
AND CONDITIONS Page 3 of 30
(Job. No.: B285) .Pa

Table of Contents

Contents
ARTICLE 1 – DEFINITION...................................................................................................... 4
ARTICLE 2 - SCOPE OF WORK.............................................................................................. 7
ARTICLE 3 - CONTRACT PRICE............................................................................................ 8
ARTICLE 4 – TAXES AND DUTIES ....................................................................................... 8
ARTICLE 5 – PAYMENT SCHEDULE .................................................................................... 9
ARTICLE 6 – PERFORMANCE OF SERVICES .................................................................... 13
ARTICLE 7 – CONTRACT PERFORMANCE BANK GUARANTEE (CPBG) ..................... 14
ARTICLE 8 – GUARANTEES ................................................................................................ 15
ARTICLE 9 – RESPONSIBILITIES & LIABILITIES ............................................................. 15
ARTICLE 10 – SUSPENSION ................................................................................................ 19
ARTICLE 11 – TERMINATION ............................................................................................. 19
ARTICLE 12 – INSURANCE.................................................................................................. 19
ARTICLE 13–INDMENITY.................................................................................................... 20
ARTICLE 14 - FORCE MAJEURE ......................................................................................... 21
ARTICLE 15 - DISPUTE RESOLUTION ............................................................................... 22
ARTICLE 16 - GOVERNING LAWS & JURISDICTION....................................................... 23
ARTICLE 17 - NO WAIVER OF RIGHTS.............................................................................. 23
ARTICLE 18 - DAMAGE TO PROPERTY............................................................................. 24
ARTICLE 19 -SAFETY ........................................................................................................... 24
ARTICLE 20 - EXCLUSION OF GOVERNMENT OF INDIA'S LIABILITY ........................ 24
ARTICLE 21 – NOTICES ....................................................................................................... 24
ARTICLE 22 –AMENDMENT................................................................................................ 25
ARTICLE 23 – IMPROVEMENTS ......................................................................................... 25
ARTICLE 24 – ASSIGNMENT ............................................................................................... 25
ARTICLE 25 - ORDER OF PRECEDENCE AND INTERPRETATION OF CONTRACT ..... 26
ARTICLE 26 - VARIATION IN THE SERVICES .................................................................. 26
ARTICLE 27 – SEVERABILITY ............................................................................................ 26
ARTICLE 28 - CONFIDENTIAL HANDLING OF INFORMATION ..................................... 27
ARTICLE 29 - GENERAL CONDITIONS .............................................................................. 28
ARTICLE 30- EXPORT OF TECHNICAL INFORMATION .................................................. 28
ARTICLE 31– TRANSFER OF PROPERTY .......................................................................... 28
ANNEXURE I- TAXES & DUTIES ........................................................................................ 29

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COMMERCIAL TERMS Rev. No. 0
AND CONDITIONS Page 4 of 30
(Job. No.: B285) .Pa

ARTICLE 1 – DEFINITION

Unless repugnant to the subject in context thereof, for the purpose of this document, the
following expressions (in alphabetical order) herein used shall have the following
meaning:

1.1. "Basic Design and Engineering Package (BDEP)"" mean such design and
engineering documents as set forth in more detail in the Technical
Specification.
1.2. “Bidder” mean Licensor, who has submitted a Bid to the Owner/EIL pursuant to
the Bidding Document.
1.3. “Bidding Document / Tender Document” means the complete technical and
commercial documents including it’s subsequent Amendment(s) [excluding
replies to pre-bid queries], if any, as issued/ web-hosted by Owner/PMC for
preparation and submission of Bidder’s Bid.
1.4. “Bid/Offer/Tender” means the proposal submitted by the Bidder in respect of
the specific requirements of the Bidding Document.
1.5. “Catalyst” as more specifically defined in the Technical Specification, shall
include catalysts, absorbents, additives, adsorbents, Chemicals etc. required in
the Process
1.6. “Commissioning” shall mean when the products of desired Technical
specifications and qualities etc. are obtained from the Unit"
1.7. “Contract / Agreement or License Agreement” means an Agreement, executed
by and between the Owner (Licensee) and the Licensor, for granting a non-
exclusive, irrevocable and non-transferable License by the Licensor to the
Licensee under the Licensor’s Patent Rights to grant the rights to (i) use the
Process (ii) export/ sell or use in any country the products of the Process
produced, free from infringement of Licensor’s Patent Rights etc., made in
accordance with the various provisions of the Bidding Document and its
Amendment(s) (if any) and the terms and conditions finally accepted for faithful
execution of Agreement with respect to Process Guarantee(s), Engineering
Services, Warrantees, Liabilities etc. for the Unit.
Owner, PMC and Licensor shall sign a tripartite agreement, as per enclosed
Exhibit. Upon completion of Licensor services (i.e. after PGTR) and release of
payment(s) by PMC, PMC shall cease to be a party of tripartite agreement and
thereafter License Agreement shall exist between Licensee and Licensor.
1.8. “Kick-off Meeting (KOM)" mean the meeting between Licensor and PMC after
award of work, with or without Owner as Owner may determine, to establish
and agree on Final Design Basis on which the Process Package to be finalized,
Project methodology, Deliverables etc. of Owner's LPG TREATING UNIT in
addition to or modification of the Design Basis set forth in Technical Part of the
Bidding document.
1.9. “Licensor” shall mean the “Owner of the Process (including any Patent Rights)”
selected by the Licensee for this Project and shall, where the context so required,
include the Owner/Supplier of a Process who has submitted a Proposal/Bid

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Page 45 of 204
Document No. 7-1841 -1001
COMMERCIAL TERMS Rev. No. 0
AND CONDITIONS Page 5 of 30
(Job. No.: B285) .Pa

pursuant to the Bidding document and a person authorized by Licensor of any part
of the Process to grant a License for the part of the Process.
1.10. "Licensed Territory" shall mean Mongolia.
1.11. “License Fee (LF)” shall include the royalty, know-how fee, howsoever,
named for the use of the Patent and Intellectual Property rights of the Licensor
in the Process.
1.12. "Manday" shall mean any calendar day or part thereof, during which a
Licensor’s representative shall be engaged in performance of work for Owner.
1.13. “Mechanical Completion (MC)”or “Mechanical Completion of the Unit”
shall mean that all installation works of the units/Offsite/Utilities have been
completed and hydro tested in accordance with approved construction drawings,
approved specification, applicable code, accepted international good engineering
practices and all the activities have been completed in a comprehensive manner.
1.14. Operating Instructions / Manual: “Operating Instructions/ Manual” means the
documents (written in English and Mongolian language) prepared by the Licensor
containing the procedures for pre-commissioning, commissioning, start-up, shut-
down, and emergency handling.
1.15. “Owner / Licensee/ Company / Employer” means “Mongol Refinery State
Owned LLC”, owned 100% by Ministry of Mining & Heavy Industry, Mongolia
and having its registered office at 900, 9th floor, Bodi Tower, Jigjidjav St. 3,
Central Square, Ulaanbaatar 15160, Mongolia, including its successors or
permitted assignees.
1.16. "Owner's Contractor(s)" shall mean such engineering firm or firms,
companies, individuals etc. to be selected by Owner for work(s) on Owner's
Plant.
1.17. "Owner's Plant" or "Plant" shall mean the plant to be constructed by or for
Owner in the Licensed Territory by means of the Process Technology which
plant shall have a Rated Design Capacity.
1.18. Patents: “Patents" means the rights with respect to or transferable interests in
patents and pending patent applications of all countries to the extent that they or the
claims thereof cover the process, any equipment, apparatus, catalyst,
absorbents, adsorbents, additives etc., for carrying out the process and the products
of the process acquired by the Licensor including the inventions conceived by the
Licensor.
1.19. Performance Guarantee(s): Performance Guarantee(s) means the Performance
Guarantee(s) for the Unit as set out in the Technical Part of the Bidding
Document.
1.20. Process Technology /Process shall mean the Proprietary Process, Know- How,
data, experience and Licensor’s Information related to the Unit, required to
design, set up, establish, and operate the Unit(s), which Licensor owns, controls
or has access to, on the date of submission of final BDEP, as per section 3.1 and
3.2 of Technical Part of the Bidding Document.

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Document No. 7-1841 -1001
COMMERCIAL TERMS Rev. No. 0
AND CONDITIONS Page 6 of 30
(Job. No.: B285) .Pa

1.21. “Project Management Consultant (PMC)”shall mean M/s Engineers India


Limited (EIL).
1.22. “Proprietary Item” shall mean the item (including catalyst/additive/chemical
etc.), for which specification, engineering, manufacturing and supply are
exclusively by the Licensor or Licensor specified Single Source / Single
recommended Vendor (wherein additional Vendor is not allowed from any source
by Licensor).
1.23. The “Party” shall mean Licensor or Licensee/Owner individually, and the “Parties”
shall mean Licensor and Licensee/Owner collectively.
1.24. “Rated Capacity”/ “Name Plate Capacity”/ “Designed Capacity” means the
capacity of the Unit desired by Owner, and to be achieved using the Process
Technology/ Process on a continuous basis during normal operation of the
Unit, as more specifically described in Technical Part of the Bidding Document.
1.25. “Scope of Work” means the total obligations to be performed by the Licensor,
as described in clause 2.0 herein and shall include Catalyst, and/or equipment
and/or other item to be supplied and/ or Supervision Services by the Licensor.
1.26. "Start-up" shall mean the initial operation of the Unit upon the introduction of
feed stock into the Unit after Mechanical Completion, as more specifically
described in Technical section of the Bidding Document.
1.27. “Site” or “Project Site” or “Project Location” means Refinery Plant site at
Sainshand, Mongolia.
1.28. Subsidiary / Affiliate company: A company shall be considered as a
subsidiary/ Affiliate of its parent company if the parent company:
(a) Controls the composition of the Board of directors of the subsidiary; or
(b) Controls more than half of the voting rights of the subsidiary; or
(c) Owns more than half of the paid up equity of the subsidiary.
For the purpose of definition of subsidiary, if a company A is a subsidiary of
company B which is, in turn, a subsidiary of company C then company A will be
considered to be a subsidiary of company B as well as C.
1.29. “Sister company” is a company with close affiliations to another company with a
separate name and personnel. Both companies are owned by the same parent
and are considered subsidiaries of the larger company.
1.30. "Technical Information" or “Licensor’s Information”: “Technical
Information” or “Licensor’s Information” means all operating techniques,
apparatus data, technical data, information embodied in Patents, pending
Patent applications, unpatented, improvements, developments and know-how,
to the extent the same is applicable to or relates to the subject technology,
which is owned or controlled by the Licensor or its affiliates, without any
restrictions on further disclosure at any time.

1.31. “Performance Guarantee Test Run (PGTR)” shall be as defined in the Technical
section of the Bidding Document.

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1.32. “Unit/ Process Unit” means the total facilities of the Unit/Process Unit under
consideration to be installed within the Licensee’s refinery to be operated by
use of Process Technology based on the Scope of Work / Scope of Supply.
1.33. The masculine shall include the feminine and neuter genders, and vice versa
1.34. The expression written in CAPITAL or small font or first letter Capital in the
document has the same meaning of the expression as defined above.
ARTICLE 2 - SCOPE OF WORK

The Licensor’s scope of work is as set forth herein below:


2.1. Granting Owner a non-exclusive, irrevocable, non-transferable right to use
the Technical Information and a non-exclusive, irrevocable License under
Licensor’s Patent rights, for the operation of the Process & Process Technology
in the Owner's Unit, for making or having made for its own use, in so carrying out
the Process any apparatus necessary thereof and for the use and sale of the
products so produced from the Unit, in any country of the world.
2.2. Engineering comprising of preparation and handing over of BDEP for the Unit
as per the agreed Scope of Work.
2.3. Mandatory services and any other additional services such as training to
Owner’s personnel, assistance during detailed engineering, construction, pre-
commissioning, Start-Up and Performance Guarantee Test Run (PGTR) etc.
under the terms and conditions/provisions of the Agreement.
2.4. Supply comprising of:
(i) Supply of Catalysts, Chemicals, Absorbents, Adsorbents, Additives
etc., as applicable.
(ii) Supply of Proprietary Catalysts, Co-Catalyst & Additives comprising of
supply of first charge of Catalysts for a minimum period as specified
elsewhere in the Technical Part of the Bidding document for operation of the
Unit on CFR.
(iii) Supply of Proprietary Equipment: The detailed scope of supplyshall be as
per Section 3.3 of Technical Specification of the Bidding Document.
(iv) The Licensor shall provide and transfer the Know-How and process package
in accordance with the Time Schedule specified in Annexure IVB of Technical
Part of the Bidding Document.
NOTE
(i) The Agreement(s) either in single or in any combination thereof shall
be prepared strictly on the basis of terms and conditions mentioned in the
Bidding Document, modified only to the extent as agreed by Owner before
award of work. Any Amendment issued by Consultant shall be in writing
and shall form part of the Bidding Document. In case Licensor proposes
sub-supplier for any or all Catalysts and/or Proprietary Equipment in their
offer, then Agreement for such Catalyst or Equipment supply shall be
signed with Licensor indicating the details of the Supplier subject to the

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provision that single point responsibility shall lie with the Licensor only.
However, payment of these Catalysts or Equipment can be made directly to
the sub-supplier upon certification of invoices by the Licensor, if proposed in
the Bid.
A tripartite agreement(s), as per enclosed Exhibits, shall be signed among
Licensor, Licensee & Consultant as described in para 1.7 above.
(ii) Post award, Owner may, at their discretion, enter into a long term Catalyst
Supply Agreement (CSA)with the Licensor based on terms & conditions to
be mutually agreed, so as to take care of future operational needs of Owner.
(iii) Guarantee and Liability Agreement, as suitably incorporated in the
Agreements.
The detailed scope of work shall be as per the Technical Part of the Bidding Document.
No clauses having financial implication shall be incorporated in the Agreement (for
License, Process Package, Proprietary items, Catalyst supply etc.), which will be
executed at a later date, after award of the job. Also, if at all there are any financial
implications, the same shall be borne by the Licensor.
ARTICLE 3 - CONTRACT PRICE

3.1. As full and complete consideration, payment to Licensor for performance of


all Services and Licensor's obligations under this Contract, Owner through
Consultant shall pay Licensor the Contract Price stated in Schedule of Prices.
The total compensation provided may be adjusted by Variation Order (s) issued
pursuant to the provisions of Article 26 (Variations in the Services).
3.2. OWNER will endeavor to maximize the unit capacity, once the operations
stabilizes, by improving the run length and /or by fully exploiting the
available design allowances and flexibilities in feed qualities compared to
design quality. This could result in annual throughput exceeding the Name
Plate/Rated Capacity indicated in the License Agreement. OWNER shall not
be liable to pay any additional fee to Licensors, on account of processing
additional feed as explained above and by using a self-developed
improvement by the OWNER.
3.3. Notwithstanding what is stated in clause no. 3.2 above, Owner shall not pay
any Royalty upto 110% of the Designed/Rated Capacity. However, if the
Designed/Rated Capacity exceeds 110%due to the reasons solely
attributable to the Licensor, the payment of one-time additional Royalty
beyond 110% of the Designed/Rated Capacity shall be on pro-rata License
Fee basis. Royalty against any further Capacity enhancement shall be paid
accordingly only for the enhanced Capacity from the last paid Capacity. This
clause shall be applicable after a period of 05 years from the completion of
PGTR.
ARTICLE 4 – TAXES AND DUTIES

Refer Annexure- I to this CTC.

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ARTICLE 5 – PAYMENT SCHEDULE

5.1 LICENSE FEE AND BASIC ENGINEERING DESIGN PACKAGE FEE


Consultant on behalf of Owner shall pay progressive payments against the
lump sum price of respective item in accordance with the following terms:

A) LICENSE FEE (LF)


S. No. MILESTONE WEIGHTAGE
i. Upon signing of License Agreement and successful 10%
completion of Kick-Off meeting and submission of
Contract Performance Bank Guarantee (CPBG)

ii. Upon submission of Final Heat & Material Balances 20%


and final Process Flow Diagram (PFD).

iii. Upon submission of Final BDEP and its 20%


acceptance/approval by the Licensee

iv. Upon Mechanical Completion of the Unit or 54 20%


months from BDEP acceptance date, whichever is
earlier

v. Upon successful Commissioning of the Unit or 57 15%


months from BDEP acceptance date whichever is
earlier.

vi. Upon successful completion of Performance 15%


Guarantee Test Run (PGTR) of the Unit or 60
months from acceptance of BDEP whichever is
earlier. (Refer Note (a) to Payment Schedule)

B) BASIC DESIGN ENGINEERING PACKAGE (BDEP) FEE


S. No. MILESTONE WEIGHTAGE
i) Upon signing of BDEP& Engineering Agreement 10%
and successful completion of Kick-off meeting and
submission of Contract Performance Bank
Guarantee.
ii) Upon submission of Final heat & material balance 15%
and final process flow diagram (PFD's)& utility
summary.
iii) Upon submission of all Data Sheets of Critical
equipment for long delivery items (to be identified 15%
during kick-off meeting).

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S. No. MILESTONE WEIGHTAGE


iv) Upon submission of Final P&IDs and its acceptance 20%
by Licensee (Acceptance shall be accorded when the
work/ services have been performed by the Licensor
as per the scope and provisions of the Contract and
Owner’s/ Consultant’s comments have been
incorporated by the Licensor)
v) Upon acceptance of Final BDEP by Licensee 15%
(Acceptance shall be accorded when the work/
services have been performed by the Licensor as per
the scope and provisions of the Contract and
Owner’s/ Consultant’s comments have been
incorporated by the Licensor).
vi) Upon acceptance of Operating Manual by Owner 5%
vii) Upon Commissioning of the Unit or 57 months from 10%
submission of final BDEP (with Owner / EIL’s all
comments incorporated), whichever is earlier.
viii) Upon completion of successful Performance 10%
Guarantee Test Run (PGTR) of the Unit or 60
Months from BDEP acceptance date, whichever is
earlier (Refer Note (a) to Payment Schedule).

5.2 PAYMENT FOR TRAINING OWNER’S PERSONNEL

S. MILESTONE WEIGHTAGE REMARKS


No.
i) Training at Licensor’s Office (As Full payment
per Technical Part of the Bidding against
Document) completion of
training
ii) Practical Training at Industrial Plant Full payment
100%
selected by Licensor (As per against
Technical Part of the Bidding completion of
Document) training
iii) For any other kind of Training Full payment
activities against
completion of
training

5.3 PAYMENT FOR MANDATORY AND OTHER SERVICES

S. MILESTONE WEIGHTAGE REMARKS


No.

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S. MILESTONE WEIGHTAGE REMARKS


No.
(a) Mandatory Services, by
Licensor’s Personnel in
accordance with the provisions of
Bidding Document
i) Mandatory Service On Lumpsum 100% On Pro-Rata
Basis(for Total specified Man basis after
days) completion of
respective
services, duly
certified by
Owner/PMC
(Single Invoice
per Month)
(b) Additional Services by Licensor’s 100% On Monthly Basis
Personnel in accordance with the against
provisions of Bidding Document, certification by
on Per Diem basis. Owner/PMC

5.4 PAYMENT FOR PROPRIETARY EQUIPMENT


S. No. MILESTONE WEIGHTAGE

i) Against placement of sub-orders for major raw 10%


materials (to be defined for each piece of
equipment) and against submission of Bank
Guarantee of equivalent amount, valid upto CFR
delivery period plus 2 months claim period, through
Wire Transfer.
ii) Against receipt of major raw materials at 10%
Manufacturer’s works place (to be defined for each
piece of equipment) and against submission of
Bank Guarantee of equivalent amount, valid upto
CFR delivery period plus 2 months claim period,
through Wire Transfer.
iii) On dispatch of Proprietary Equipment on FOB 60% of FOB
International port of Exit and upon submission of price plus
shipping documents through Irrevocable 100% Ocean
unconfirmed Letter of Credit. Freight
iv) On receipt of Proprietary Equipment at site through 10%
Wire Transfer.
v) Upon completion of PGTR or 60 months from 10%
acceptance of BDEP whichever is earlier, through
Wire Transfer(Refer Note (a) to Payment
Schedule).

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5.5 PAYMENT FOR SUPPLY OF CATALYST, CHEMICALS, ABSORBENTS,


ADSORBENTS, ADDITIVES (AS APPLICABLE) AND OTHER
MATERIALS, IF ANY

S. No. MILESTONE WEIGHTAGE

(i) Upon FOB shipment through Irrevocable 85 % of FOB


unconfirmed Letter of Credit (L/C) price plus
100% Ocean
Freight
(ii) On receipt of Material at site through Wire 10%
Transfer.
(iii) Upon completion of PGTR or “Completion of 5%
period of Guaranteed first life of catalyst (as
per Technical Specification)”, whichever is
earlier.

NOTES TO PAYMENT SCHEDULE

a) In case PGTR is not completed within 60 months from acceptance of BDEP


due to reasons attributable to Owner: The payment of last milestone at
S.No. 5.1 A (vi), 5.1 B (viii)& 5.4(v) above shall be made against submission of
equivalent amount of Bank Guarantee valid till the completion of such
activity(s). The Bank Guarantee shall be initially be valid for period of 01 year.
In case PGTR is not completed within period of 01 year as mentioned above,
then Bank Guarantee shall be further extended till the completion of the PGTR.
All costs related to such Bank Guarantee incurred by the Licensor shall be
reimbursed by the Owner in accordance with prevailing bank rates.
b) Payment against Letter of Credit (L/C):
The milestone payments through Letter of Credit, wherever applicable, shall be
as follows:
(i) L/C shall be opened after placement of Purchase Order, within One Month
after receipt of Contract Performance Bank Guarantee (CPBG). CPBG
shall be having a value of 10% of the Contract Price of respective Item for
Payment through L/C is to be made like Contract Price for Proprietary
Equipment, Contract Price for Catalyst, Chemicals, Absorbents,
Adsorbents, Additives etc.
(ii) The L/C shall be Irrevocable and unconfirmed. In case, Licensor insists for
Confirmed L/C, the L/C confirmation charges shall be borne by the
Licensor.

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(iii) On presentation of invoices for imported goods and relevant shipping


documents.

c) Direct Payment to Sub-Supplier for Supply:


In case, Licensor proposes sub-supplier for supply of any Catalyst and/or
Proprietary Equipment in their offer, then payment of these Catalyst or
Equipment may be made directly to the sub-supplier through wire transfer upon
certification of invoices by the Licensor.
d) Direct Payment to Licensor’s Subsidiary for Onsite Services (assistance
during Pre-commissioning and Commissioning):
Licensor may assign onsite services (assistance during Pre-commissioning and
Commissioning) to their Subsidiary as defined earlier. However, the License
Agreement shall be signed only with the Licensor having Single Point
Responsibility and all the payments may be made directly to their subsidiary
upon certification of invoices by the Licensor.

5.6 TIME PERIOD AND MODE OF PAYMENT

5.6.1 The payment for License Fee, BDEP, Mandatory Services, Training etc. (i.e.
for milestones other than payment specified through L/C) shall be paid
through wire transfer (NEFT/RTGS Bank Transfer), within Thirty (30) days
after receipt of correct invoice, complete in all respects, with the relevant
documents as required. EIL on behalf of Owner shall pay to Licensor the
invoiced amount properly due.
No Payment shall be released until the submission of CPBG for respective
Services/Supplies.
5.6.2 EIL on behalf of Owner shall endeavor to make undisputed payment within a
period not later than thirty (30) days of receiving correct invoices from
Licensor. In the event, EIL/Owner fails to make any undisputed payment
within a period of thirty (30) days, LICENSOR may give written notice to
EIL/Owner of such default and EIL/Owner will discuss with Licensor to reach
a written agreement
However, in case of disputed payments, the dispute, if any, shall be raised by
EIL/Owner, within 30 days of receipt of Invoice and the payment shall be
released within 30 days after settlement of dispute.
ARTICLE 6 – PERFORMANCE OF SERVICES

6.1. The Licensor shall exercise all reasonable skill, care and diligence in the
faithful performance of the Services and such performance shall be in
accordance with, in all respects, all the terms and conditions of the
Agreement, with sound engineering principles and practices and to a
standard compatible with the internationally recognized engineering standard.
If there is deficiency in Licensor’s Services, Licensor will re-perform the
deficient work, provided Owner identifies the specific problem within 2

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(two) months after successful Performance Guarantee Test Run or 62


months from acceptance of BDEP, whichever is earlier. Warranty of
merchantability is excluded. Warranty of fitness for purpose shall be limited to
the technical obligations stipulated in the Bidding document.
6.2. Except as may be expressly provided elsewhere in the Agreement, the
acceptance or approval by Owner of any recommendation made by the
Licensor shall not in any way relieve the Licensor of his full
responsibility for his obligations under the agreement.
6.3. The Licensor shall provide all necessary personnel, equipment (if applicable),
and facilities for the satisfactory performance of the Services in accordance
with the provisions of Agreement.

ARTICLE 7 – CONTRACT PERFORMANCE BANK GUARANTEE (CPBG)

7.1. CPBG for License Fee and BDEP Fee: Within thirty (30) days of the date
of the Agreement coming into force, Licensor shall provide an irrevocable
interest free Contract Performance Bank Guarantee in favour of Owner for
an amount equivalent to 10% of the Sum of License Fee and BDEP Fee.
7.2. Licensor shall submit CPBG from any Indian scheduled bank; or from any
Indian branch of an international bank in a format enclosed in Bidding
Document. In no event, EIL / Owner shall be obliged to make payments to
Licensor under this Contract prior to receipt of the bank guarantee, duly
signed and accepted thereof. The bank guarantee shall be valid till two
months beyond successful Performance Guarantee Test Run of the
Plant or 62 months from acceptance of BDEP, whichever is earlier. In
case PGTR could not be conducted due to reasons not attributable to the
Owner, then the Bank Guarantee shall be extended by the Licensor for
further period, till the PGTR is conducted. Upon written request of Owner,
Licensor shall promptly effect such changes in the amount of, and/or the
validity period of, the bank guarantee as may be required due to changes
covered by Variation Orders and/or Amendments and/or repetition of PGTR
due to failure to meet the Performance Guarantee.
However, In case PGTR is not conducted within 60 months from
acceptance of BDEP due to reasons attributable to Owner, the CPBG shall
be initially extended for an additional period of 01 year.
Further PGTR is not completed within extended period of 01 year as
mentioned above, then CPBG shall be extended till the completion of the
PGTR.
All costs related to such Bank Guarantee incurred by the Licensor shall be
reimbursed by the Owner in accordance with prevailing bank rates.

7.3. CPBG for Proprietary Equipment: Bank Guarantee pertaining to proprietary


equipment shall be separately submitted for 10% of the supply cost and
shall be valid up to 15 months from commissioning of the Unit or 30

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months from the last dispatch of Equipment whichever is earlier, plus 02


months of claim period. CPBG shall be submitted within 30 days from the
date of placement of order.
However, In case PGTR is not conducted within 15 months from
commissioning of the Unit or 30 months from the last dispatch of
Equipment due to reasons attributable to Owner, the CPBG shall be
initially extended for an additional period of 01 year.
Further PGTR is not completed within extended period of 01 year as
mentioned above, then CPBG shall be extended till the completion of the
PGTR.
The bank processing charges for extending the CPBG shall be reimbursed to
Licensor by owner at actuals.

7.4. CPBG for Catalyst, Chemicals, Absorbents, Adsorbents, Additives (as


applicable) and Other Materials:
CPBG for Catalyst, Chemicals, Absorbents, Adsorbents, Additives and other
materials shall be separately submitted for 10% of the supply cost and
shall be valid up to the period of 30 months from date of shipment plus
additional 02 months of claim period or 02 months beyond guaranteed
first life of catalyst (for the period of first life, refer technical specification),
whichever is later. CPBG shall be submitted within 30 days from the date of
placement of order.

ARTICLE 8 – GUARANTEES

8.1. Licensor to guarantee the work as specified and described in the Contract.
The Technical documents to be developed shall be in accordance with sound
and established engineering practices as detailed in Technical Specification,
for the purpose specified, free from defects and suitable for respective uses
intended.
LICENSOR shall be required to fulfill the following guarantees:
a) Process Performance Guarantee and Minimum Performance
Guarantee shall be as detailed in the Technical Specifications enclosed
in the Bidding Document.
b) In case of Proprietary Items/Equipment and Catalyst, Chemicals,
Absorbents, Adsorbents, Additives (as applicable) supplied by
Licensor the guarantees shall be as detailed in Technical Specifications
included in the Bidding Document.

ARTICLE 9 – RESPONSIBILITIES & LIABILITIES

9.1 Patent Infringement: Licensor shall, at all times, indemnify and hold
harmless Owner from all liabilities, costs, damages and expenses arising out

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of any claims, actions or suits brought against Owner by third parties, in


respect of any actual or alleged infringement of any Patent Rights or
registered design or any similar rights resulting from the use of the
Technology or Technical Information or any improvements thereof provided
by Licensor to Owner. Upon Owner's prompt notification to Licensor in writing
of any such claims, actions or suits upon such notice, or upon Licensor
otherwise coming to know of such claims, actions or suits, Licensor shall, at
its own expense, conduct, defend or dispose of, including settling of
such claims, actions or suits on its own behalf and on behalf of Owner
and Owner's Associate Company and shall follow all instructions from
Owner in this respect.
The Licensor shall ensure that the Technology, Designs and Engineering
provided by them is free from any dispute etc.
Further, Licensor:
a) Will undertake at its own expense the defense of any suit filed for
infringement of Intellectual Property rights including attorney fees,
court fees, incidental expenses etc., without any limit.
b) May at its option recommend changes to the Unit, against which a
suit has been brought to permit the Unit, to avoid such infringement
claim and bear the cost of plant rectification/modification. The
liability under this clause {9.1 (b)} is included in the
Overall Aggregate Liability which is sum of 50% of LF and 50%
of BDEP fee.
AND/OR
c) Obtain a right from the third party in question for Licensee to
operate the unit free from such infringement claim.
d) Hold Licensee free and harmless from any damages or other sums
that may be assessed in or become under any decree or judgment
by any Court, which results from such suit(s).

9.2 PRICE REDUCTION SCHEDULE (PRS)


a) The Basic Design& Engineering Package (BDEP) shall be submitted
as per schedule given in Technical Specifications included in the Bidding
Document. Licensor shall be liable for Price Reduction for delay in
delivery attributable to the Licensor as under:
(i) Delay in submission of Final Basic Design & Engineering
Package: For the purpose of Price Reduction Schedule of
BDEP, the date of submission of Final BDEP shall be reckoned
from the date of finalization of Design Basis. In the event that the
LICENSOR delays to deliver to the LICENSEE, the said Basic
Design & Engineering Package in the manner and within the time
described in the Bidding document, the LICENSOR shall give a
price discount in the following manner:

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0.5% of the Basic Design & Engineering Package (BDEP


Fee) per week of delay or part thereof with a maximum of
five percent (5%) of said BDEP Fee
b) Delay in delivery of Proprietary Equipment:
0.5% of the Total Order Value of Proprietary Equipment per week of
delay or part thereof with a Maximum of five percent (5%) of the Total
Order Value of Proprietary Equipment.

c) Delay in delivery of Catalysts, Chemicals, Absorbents, Adsorbents,


Additives (as applicable):
0.5% of the Total Order Value of Catalyst, Chemicals, Absorbents,
Adsorbents, Additives (as applicable) per week of delay or part thereof
with a Maximum of five percent (5%) of its Total Order Value.
The Licensor/sub-supplier (as the case may be) shall be required to raise
their invoices for reduced amount in case of delay, which is attributable to
Licensor/sub-supplier.

9.3 RECTIFICATION COSTS OF SERVICES


In the event of faulty design/engineering i.e. error or omission in the job
performed by Licensor (Licensor Services), the Licensor shall furnish
corrective technical studies and engineering as may be required without any
additional cost to Owner within a mutually agreed time frame, which shall
be arrived at within 15 days from the date of request from Owner. However,
Licensor shall rectify the defects in services, provided Owner identifies the
specific problem with the work up to two months beyond PGTR or 60
months from the date of acceptance of BDEP, whichever occurs earlier.
The liabilities of the Licensor towards rectification costs of services
shall be unlimited, without qualifications and not subject to any
restrictions.

9.4 REIMBURSEMENT OF COST


Licensor shall reimburse Owner the total costs of making modifications,
additions, alterations or replacements to correct Owner's Plant due to
faulty design, information and services furnished and rendered by
Licensor (for Licensor’s Services). Licensor's responsibility and liability in
this respect is described in detail in Technical Specifications. Licensor's
liability under this Article shall be limited to sum of 50% of the License Fee,
50% of BDEP Fee and shall be included in the limit of the Overall Aggregate
Liabilities.

9.5 LIABILITIES FOR NOT MEETING THE GUARANTEES

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a) The provisions of Process Performance Guarantee, Minimum


Performance Guarantee and the associated liabilities thereof shall be,
as described in the Technical Specifications included in the Bidding
Document.
b) In case of Proprietary Items/ Equipment supplied by
Licensor, the liabilities shall be as detailed in Technical
Specifications.
c) In case of Catalyst, Chemicals, Absorbents, Adsorbents, Additives
(as applicable) supplied by Licensor, the liabilities shall be as detailed
in Technical Specifications.
9.6 Licensor shall not be responsible for defects arising from defective materials
or Equipment not supplied by Licensor/Licensor mandated sub-supplier,
deficient engineering and design work carried out by others, improper
Operation and Maintenance by LICENSEE.
9.7 Either Party shall not be liable for any loss of profit, loss of use, loss of
production, business interruption or any other indirect or consequential
damages that may be caused or suffered by the other Party.
9.8 OVERALL AGGREGATE LIABILITIES
Licensor's Overall Aggregate Liability on all accounts under the Contract shall
be limited to the sum of 50% of the License Fee and 50% of BDEP Fee
and shall exclude the liabilities for the following:
a) Rectification of defects in Licensor's services as per Article 9.3 above,
b) Patent Infringement as per Article 9.1above, except the Liability on
account of Plant Modification/rectification due to Patent infringement in
clause9.1 (b)
c) Proprietary Items, Catalyst, Chemicals, Absorbents, Adsorbents,
Additives (as applicable) as per Article 9.5 (b) & (c)above and PRS as
per Article 9.2 (b) & (c) for delay in delivery of Proprietary Items,
Catalyst, Chemicals, Absorbents, Adsorbents, Additives (as applicable).
d) Deploying Licensor's Personnel for carrying out
subsequent Performance Guarantee Test Runs (PGTR), if the PGTR
had failed in the earlier attempt(s) due to reasons attributable to the
Licensor. For details, refer Technical Specifications.
9.9 All liability(ies) of Licensor and its Affiliates as to ascertain or all
Performance Guarantees shall terminate upon occurrence of any of the
events set forth below:
a) Such Performance Guarantees as have been satisfied as determined by
the results of a successful Performance Guarantee Test Run as herein
provided ;
OR
b) Owner's notification to Licensor in writing of its decision not
to conduct a Performance Guarantee Test Run;

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OR
c) Licensor has paid Owner for remedial measures as set out in the
Contract;

ARTICLE 10 – SUSPENSION

10.1. Owner may at any time, should Owner deem it necessary to do so for any
valid reason, suspend all or part of work giving not less than fourteen days
written notice to Licensor. Such notice of suspension shall specify the scope
of the work to be suspended, and the effective date of suspension. Licensor
shall suspend work on the date or dates specified by Owner in any of
notice(s) issued under this clause and shall resume the work within a
reasonable time upon receipt of Owner's notice to resume. The Licensor shall
not be entitled for any claims/loss on account of such suspension of work.
10.2. However, in case of suspension when Licensor's Personnel is
mobilized in Mongolia, reimbursement of airfare of Licensor's Personnel
on account of demobilization and remobilization shall be borne by Owner.
10.3. Licensor shall be paid for all the amounts due against certified services
provided and accrued up to the date of suspension as per payment terms.
10.4. In case, during the date of suspension, any payment milestone is partially
completed by the Licensor and accepted by the Owner, the payment for the
same shall be made as will be mutually agreed by the Licensee & the
Licensor.

ARTICLE 11 – TERMINATION

11.1. Owner shall have the right to terminate the Agreement with at least seven (7)
days notice. Licensor's documents shall be returned to Licensor and Owner's
documents shall be returned to the Owner. Licensor shall be paid for all the
amounts due against certified services provided and accrued up to the date of
termination as per payment terms.
11.2. However, in case of termination, Owner shall not be liable for any loss of
profit, loss of use, business operation or any other indirect or special or
punitive or incidental or exemplary or consequential losses / damages that
may be suffered by the Licensor on account of such termination.
11.3. In case, during the date of Termination, any payment milestone is partially
completed by the Licensor, the payment for the same shall be made as will
be mutually agreed by the Licensee & the Licensor.

ARTICLE 12 – INSURANCE

12.1. Employer shall take out and maintain at its own expense an appropriate and
adequate All Risk Marine cum Erection Insurance Policy covering the
Construction, Commissioning, Start-up, initial operations, Performance

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Guarantee Test Run, including third party liabilities to cover any loss or
damage to the Owner's facilities and other properties of the Owner or of third
parties during the Construction, Commissioning, Start-up, initial operation and
Performance Guarantee Test Runs of the Owner's Plant facilities. It should also
cover Transit Insurance.
12.2. The Licensor, at its own expense shall take out appropriate and adequate
insurance to cover any claim that may be made by Licensor's
employees/ representatives and/or their heirs and dependent alleging bodily
injuries sustained or death suffered by employees/dependents as a result of or
in connection with the performance of any of Licensor's obligations under the
Agreement and will hold Owner and its employees and representatives
(including PMC) harmless from any and all such claims. The Licensor's
insurance policy shall include a waiver clause as to any insurer's action against
the Owner and PMC, its employees and representatives.
ARTICLE 13–INDMENITY

13.1. The Licensor shall indemnify and hold harmless the Owner / Consultant and its
representative(s) from and against all losses, claims, costs, liabilities,
damages and expenses (including legal expenses) arising from or in
connection with any:
i. accident, death or injury to the Personnel; and
ii. damage to the property of the Licensor and its representative(s),
that arises out of the Licensor performance of the Services and/or the
Agreement, except ,in each case, to the extent arising out of the Gross
Negligence of the Owner and its representative(s).
13.2. The Licensor shall indemnify and hold harmless the Owner / Consultant and its
representative(s) from and against all losses, claims, costs, liabilities,
damages and expenses (including legal expenses) arising from or in
connection with any:
i. accident, death or personal injury of any THIRD PARTY; or
ii. damage to the property of any THIRD PARTY,
that arises from act or omission or willful misconduct of Licensor and its
representative(s) in connection with the Licensor’s performance of its
obligations under the Agreement, except to the extent arising out of a negligent
act or omission or willful misconduct of the Owner and its representative(s).
13.3. The Owner shall indemnify and hold harmless the Licensor and its
representative(s) from and against all losses, claims, costs, liabilities, damages
and expenses (including legal expenses) arising from or in connection with
any:
i. accident, death or injury to the Owner and its representative(s) personnel
that arises out of or in connection with the Agreement, except to the
extent arising out of the Gross Negligence of the Licensor and its
representative(s); and

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ii. damage to the property of the Owner and its representative(s),


iii. damage to the property of any THIRD PARTY or the accident, death or
personal injury of any THIRD PARTY that arises from the act or
omission or willful misconduct of the Owner and its representative(s) in
connection with the Owner’s performance of its obligations under the
Agreement, except to the extent arising out of a negligent act or
omission or willful misconduct of the Licensor and its representative(s).
13.4. Owner agrees to hold harmless the Licensor against any additional cost or
additional liability incurred by Licensor as a result of CHANGE OF LAW.

ARTICLE 14 - FORCE MAJEURE

1.1. Events of Force Majeure


Event of Force Majeure shall mean any circumstance not within reasonable
control of the Party affected and which, despite the exercise of reasonable
diligence, such Party is unable to prevent, avoid, or overcome.
1.2. Effect of Force Majeure
Should any Event of Force Majeure prevent or delay the performance by a
Party of any of its obligations under this Agreement then, provided that notice
is given to the other Party in accordance with the provisions of Sub-Article
14.5,the Party which is prevented or delayed in the performance of its
obligations shall be excused from performance or performance in accordance
with the time specified in this Agreement for so long as the relevant Event of
Force Majeure continues and to the extent that such Party's performance is
prevented, hindered or delayed thereby.
1.3. Instances of Force Majeure
Events of Force Majeure shall include, without limitation, but subject to the
provisions of Sub-Article 14.1, the following:
a) Act of terrorism
b) Riot, war, invasion, act of foreign enemies, hostilities (whether war be
declared or not), civil war, rebellion, revolution, insurrection of military or
usurped power
c) Explosions, fires, earthquakes, floods, hurricanes, typhoons, epidemics
or other physical natural disaster, but excluding weather conditions
regardless of severity;
d) Ionizing radiation or contamination, radio activity from any nuclear fuel
or from any nuclear waste from the combustion of nuclear fuel, radio-
active toxic explosive or other hazardous properties of any explosive
assembly or nuclear component, and
e) Freight embargoes, Strikes applicable to the entire industry or region
and not confined to the works or establishment of the Licensor.

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1.4. Event excluded from Force Majeure:


Commercial hardship, third party breach, strike and shutdown or lockout of the
Licensor shall not constitute an event of Force Majeure.
1.5. Notice of Force Majeure: Procedure
If either Party desires to invoke an Event of Force Majeure as a cause for
delay in the performance of any obligation hereunder, that Party shall, not
later than 14 days after the commencement of such Event of Force Majeure
or at such time as a notice can be practically given if the Event of Force
Majeure prevents from giving of notice, give written notice to the other Party
as detailed in Article 21 titled “NOTICES” of this Agreement of:
a) the date of commencement and nature of the Event of Force Majeure;
and
b) the date on which the Event of Force Majeure terminated (if before the
date of notice) or alternatively, if the Event is continuing, its expected
duration, the extent known by the notifying Party.

1.6. Mitigation of delay


The Party affected by the Event of Force Majeure shall use all reasonable
efforts to prevent and reduce to a minimum and mitigate the effect of any
delay occasioned by any Event of Force Majeure, including recourse to
alternate acceptable sources of services, materials and supplies and
reasonable adjustment of work activities. However, Owner's obligation to pay
for work already performed by Licensor shall not be affected by an event of
Force Majeure
1.7. Costs during Force Majeure
In the event of Force Majeure conditions occurring, each Party shall bear their
respective costs, if any, incurred resulting therefrom.
1.8. If either Party is prevented from fulfilling its contractual obligations for a
continuous period of three (3) months because of Force Majeure, then the
Parties shall consult each other with a view to agreeing to the action to be
taken under the circumstances, and failing such Agreement either Party is
entitled to terminate the Agreement(s) the performance of which is affected
by Force Majeure and any other Agreements dependent thereon.

ARTICLE 15 - DISPUTE RESOLUTION


2.1. General
The Parties agree that the avoidance or early resolution of disputes is crucial
for a smooth execution of the Agreement and the success of the assignment.
The Parties shall use their best efforts to settle amicably all disputes arising
out of or in connection with this Agreement; the interpretation thereof.
2.2. Dispute Settlement

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a) Any dispute or differences between the Parties under the contract, which
cannot be amicably resolved, shall be referred to an Arbitral Tribunal
consisting of three members, where both the Parties shall nominate an
arbitrator each and such nominated arbitrators shall appoint the Presiding
Arbitrator who shall be from a neutral country and shall not be resident or
citizen of Mongolia/ Licensor’s Country. The arbitration shall be conducted
in accordance with the International Arbitration Act of Singapore and the
Singapore International Arbitration Centre (SIAC) shall administer the
arbitration as per SIAC Rules currently in effect and the Arbitral Tribunal
shall decide the dispute based on English law as the governing law of the
Agreement. The seat and venue of the arbitration shall be Singapore.
b) Language of Arbitration shall be English.
c) Each party shall bear its own costs, fees and expenses of arbitration.
d) The Services under this Agreement shall be continued during the
arbitration proceedings, unless otherwise agreed in writing by Parties or
unless it is proved that the Services cannot possibly be continued during
the arbitration proceedings.
2.3. The Parties agree that in the event of any dispute, claims, action, demand,
proceeding, notices etc. raised by Licensors against the Owner, the
Consultant shall not be impleaded as a party in view of the fact that the
Consultant’s role is only to provide Project Management Consultancy
Services to the Owner.

2.4. However, where Consultant is impleaded as a party by Licensors, in such


case Owner shall hold harmless Consultant from any such dispute, claims,
action, demand, proceeding, notices whatsoever against Consultant and
Owner shall bear all expenditure including all legal costs, man hour cost &
travelling expenses incurred by the Consultant. Release of such expenditures
shall be made within 30 days of Consultant notifying the Owner of such
expenditure. It is further clarified and agreed by the Parties that in all such
dispute, claims, action, demand, proceeding, notices, the role of Consultant
shall be only to provide technical assistance to the Owner.
ARTICLE 16 - GOVERNING LAWS & JURISDICTION

16.1. The Agreement, including all matters connected with the Agreement shall be
governed, construed and interpreted by the Laws of England and Wales exclusively
both substantive and procedural (to the extent applicable), for the time being in force
and the Agreement shall be subject to the exclusive jurisdiction of Courts at
Singapore.
16.2. Licensors shall have to obey the laws of the land.

ARTICLE 17 - NO WAIVER OF RIGHTS

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17.1. A waiver on the part of either Party of any terms, provisions or conditions of this
Contract / Agreement shall not constitute a precedent, nor bind either Party to a
waiver of any succeeding breach of the same, of any other terms, provisions for
conditions of this Contract/Agreement.

ARTICLE 18 - DAMAGE TO PROPERTY

18.1. Licensor shall be responsible for any loss or damage to properties belonging to
Owner or other agencies within the site due to willful fault and /or the gross
negligence or willful acts, or omission of Licensor's employees, agents or
representatives. In the same way, Owner shall be responsible for any loss or
damage to properties belonging to Licensor or other agencies within the site due
to willful fault and /or the negligence or willful acts or omission of Owner's
employees, agents or representatives.
18.2. Licensor or Owner shall indemnify each other in this regard.

ARTICLE 19 -SAFETY

19.1. The Licensor shall observe and abide by all safety regulations of Owner during the
course of performance of the work at Owner's Project site.

ARTICLE 20 - EXCLUSION OF GOVERNMENT OF INDIA'S LIABILITY

20.1. It is expressly understood and agreed that Owner is entering into this
Contract/Agreement solely on its own behalf and not on behalf of any other person
or entity.
20.2. It is expressly understood and agreed that the Government of India is not a
party to the Agreement, and has no liability, obligations or right whatsoever
hereunder. It is expressly understood and agreed that Consultant is an
independent level entity with power and authority to enter into
Contracts/Agreements solely on its own behalf under the applicable laws and the
general principles of Contract laws.
20.3. The Licensor expressly agrees, acknowledge and undertakes that Consultant is
not an agent, representative or delegate of the Government of India.

ARTICLE 21 – NOTICES

21.1. The official address and contact details (Name and Designation, Mobi le and
Telephone with STD/ISD Codes, Email etc.) of the Parties for the purpose of
issuing notice shall be as specified in the Agreement. However, either Party
may change the same during the execution of the Agreement by giving notice in
writing to the other Party.

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21.2. All notices hereunder shall be in writing and shall be sufficient if delivered or
sent by registered mail/Post, addressed to the Party entitled thereto at the
above address.
21.3. Communications related to transmittal of technical documentation shall be
forwarded to such individual as the concerned Party [Licensor or Licensee]
may designate from time to time.

ARTICLE 22 –AMENDMENT

22.1. The Agreement may not be amended, modified or terminated orally, and no
amendment, modification, or attempted waiver of any of the provisions hereof
shall be binding unless the same is reduced in writing and signed by authorized
representatives of both the Parties. Authorized representative shall mean a
person holding Power of Attorney for signing and faithful execution of
Agreement.

ARTICLE 23 – IMPROVEMENTS

If Licensor develop any Improvement(s) or should acquire Improvement(s) from


a third party (for which Licensor has free right of disclosure) relating to the Unit
designed and constructed in accordance with the process package within 5
years of completion of PGTR, then Licensor shall promptly free of charge
inform to Owner the details of such Improvement(s) and shall at Owner's
request communicate to Owner free of any additional cost the details necessary
for incorporation of such Improvement(s) in the Unit, not involving any
engineering services by Licensor. If Owner requires Licensor to perform
engineering services for incorporating such Improvement in the Unit, Licensor
shall be obliged to perform such services at Licensor's usual charge. If Owner
develop any improvement(s) within 5 years of completion of PGTR, then
Owner shall promptly and free of charge share such improvements with the
Licensor.

ARTICLE 24 – ASSIGNMENT

24.1. The Agreement shall not be assignable by either Party without the prior written
consent of the other Party, except that, it may be assigned to the successor of
either Party or firm or corporation acquiring all or substantially all of the business
and assets of such Party. No assignment of this Agreement shall be valid unless
and until this Agreement shall have been assumed by the assignee. Assignment
in accordance with the foregoing, the Agreement shall be binding upon and shall
be to the benefit of the assignee.
24.2. Notwithstanding any other provision of this clause, Owner may, without the
consent of Licensor, collaterally assign the benefit of this Agreement or any part
thereof and any interest therein or there under to lenders to Licensee with
respect to the Project (hereinafter referred to as the "Lenders") as security for

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the financing extended by the Lenders for such project, provided however
that Licensor's obligations and responsibilities shall not be increased in any
way by such assignment. All assignments shall be in terms so as not to
prejudice the confidentiality obligations of the Licensor and the Licensee

ARTICLE 25 - ORDER OF PRECEDENCE AND INTERPRETATION OF CONTRACT

25.1. Notwithstanding the sub-division of the documents into separate sections and
parts, every section / part of each shall be deemed to be supplementary to and
complementary of every other section / part.
25.2. Where any section /portion of the section is repugnant to or at variance with any
provisions of the other section/ portion of the section then, the most stringent
provision shall prevail.
25.3. Wherever it is mentioned in the terms/ conditions /specifications that the
Licensor shall perform certain work or provide certain facilities, it is understood
that the Licensor shall do so at his own cost.

ARTICLE 26 - VARIATION IN THE SERVICES

1.1. Owner may vary the Services to be performed by the Licensor. Such variation
shall in no way vitiate or invalidate the Contract. The charges for all such
variation shall be computed submitted to PMC/Owner for its acceptance.
1.2. All such variations in the services shall be within the general scope of Services
and all such changes desired by Owner which may involve additions, deletions
or revisions to the Scope of Services shall be covered by a written document
issued by Owner to the Licensor hereinafter referred to as "Change Order".
1.3. Each Change Order shall set forth the changes in the Services to be performed
by the Licensor and for the corresponding adjustment to the Completion Date,
the Contract Price.
1.4. Pursuant to this Agreement no adjustment to the Completion Date or
Contract price shall be applicable except by issuance of a Change Order.
1.5. If Licensee requires Licensor to carry out variations in services which in
Licensor's opinion may affect Licensor's ability to meet its guarantees under this
Agreement, Licensor may accordingly inform Licensee along with appropriate
reasoning. However, in case Licensee still insists for the variations to be carried
out, Licensor shall be relieved of its guarantees to the extent affected by the
aforesaid variation

ARTICLE 27 – SEVERABILITY

The invalidity, or un-enforceability of any provisions of this Agreement, shall not


impair, invalidate or affect the other provisions of this Agreement. In case, any
provision of this Agreement is found to be invalid or unenforceable, both Parties

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will meet and agree on an amendment of the relevant provision, such that the
Parties' mutual interests remain served as best as possible.
ARTICLE 28 - CONFIDENTIAL HANDLING OF INFORMATION

1.1. Title to Technical Data:


a) Title to all Technical Data including drawings, bills of material, flow
diagrams, layout details, and specifications etc. furnished to Licensor by
Owner shall remain with Owner.
b) Title to all Technical Data including designs, drawings, bills of material, flow
diagrams, layout details, specifications and any other data prepared by
Licensor, shall remain with Licensor.
1.2. Both Licensor as well as the Owner shall, during a period beginning at the
date of finalization of Design Basis (herein “Zero Date”) and continuing
until fifteen (15)years after the date of disclosure of the Information in
question
a) not disclose any information to any Third Party;
b) use all appropriate means to preserve the secrecy of information.
1.3. These undertakings shall not apply to any information which, at the time it is
received or obtained by Licensor or the Owner
a) is lawfully known without binder of secrecy; or
b) is publicly available and shall cease to apply to any such Information which,
after it is received or obtained, becomes publicly available through no fault
of Party receiving such information; or
c) is received or obtained without restriction on disclosure from a source free
to disclose it other than Owner or Licensor; or
d) which Licensor or the Owner is required to disclose to any government
agency, court, quasi-judicial or regulatory body or Parliament or other legal
or constitutional authority that under any legal process requires Licensor or
the Owner to disclose such information provided that prior to such
disclosure where it is practicable to do so, or if it is not practicable, then at
the time of disclosure, written notice of the potential disclosure or actual
disclosure as the case may be, shall be given to the other Party.
1.4. Licensee may disclose Licensor’s Technical Information to third parties
necessary as per law and to build, maintain or operate the Unit, provided that:
a) the information disclosed will be limited to the extent necessary for the third
party to accomplish its part of building, maintaining or operating the Unit;
and
b) such third party except Statutory bodies enters into a Non-Disclosure
Agreement (NDA) with Licensor concerning Licensor’s Technical
Information.
Documents which are subject to the restrictions stated in a) and b) above are to
be listed by the Licensor in their offer.

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1.5. Licensee may disclose Licensor’s Technical Information which are not subject to
the restrictions as per para above, to third parties for the purpose of
procurement, construction, operation and maintenance of the Unit.

ARTICLE 29 - GENERAL CONDITIONS

2.1. All documents from one Party to another of whatever nature shall be submitted in
English by e-mail, registered post, or courier.
2.2. The provision of Fraudulent Practices shall be as per ITB and shall be part of
Contract Agreement.

ARTICLE 30- EXPORT OF TECHNICAL INFORMATION

Licensee shall not resell or re-export directly or indirectly the technical


information or the work received from Licensor without the prior written consent
of Licensor. The technology will not be used, directly or indirectly, in any nuclear
related uses, missile technology, or chemical or biological weapons applications
unless specifically authorized by Licensor and, if required, by the applicable
governmental authority. Licensee shall use the technical information for civil use
only.
ARTICLE 31– TRANSFER OF PROPERTY

31.1 The right to use the documentation of whatever nature (including computer
software) related to the process, Licensor’s Information and IMPROVEMENTS
shall pass to the Licensee when delivered to the Licensee or at the post office
or courier office of the country of the Licensor who will be considered as an
agent of the Licensee.

31.2 All drawings, flow sheets, specifications, data, and tracing and other
documentation of whatever nature described in Article 31.1 thereof forming
part of the Basic Design Engineering Package (BDEP) or otherwise developed
specifically for the Licensee pursuant to any Agreement(s) shall be and
become the property of the Licensee in whom the right of use therein vests in
the Licensee pursuant to Article 31.1 thereof.

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Annexure I- TAXES & DUTIES

A. PRICE BASIS w.r.t INCLUSION/EXCLUSION OF TAXES

1. The quoted price for scope of work shall be inclusive of all the taxes and duties
applicable outside Mongolia.

2. Eligible goods and services shall be exempt from all kinds of taxes and duties
of any nature whatsoever levied in Mongolia including all corporate/withholding
tax/personal/value added taxes, import/custom duties, special levies and social
security contributions for temporary employees deputed by seller in relation to
execution of the contract in Mongolia.

The above exemptions shall extend to the duly authorized representative/sub –


vendor of the licensor in Mongolia.

3. The procedural compliances regarding exemptions mentioned in point no. 2


above shall be the responsibility of Mongol Refinery and licensor shall be
indemnified on the same i.e. If not exempted, then same shall be reimbursed
by Mongol refinery at actual against documentary evidence.

The licensor shall be liable to provide all documentation to ensure availment of


the exemption / waiver. In case the licensor defaults on this due to any reason,
whatsoever, the same shall be borne by licensor.

4. In case of supply of goods by Non-Mongolian bidders, bidders shall submit


their prices on FOB international sea port of exit basis (INCOTERM 2010),
unless otherwise stated in the bid document. FOB prices quoted shall be
inclusive of all applicable taxes upto FOB international port of exit.

5. All necessary registrations and compliances as applicable for carrying out the
site activities shall be done by the licensor and costs towards the same shall
be included in quoted site work prices.

A. INVOICING METHODOLOGY W.R.T. TAXATION

Goods shall be invoiced and consigned by seller in the name of MONGOL


REFINERY STATE OWNED LLC.

Invoice for all fees/services shall be raised in the name MONGOL REFINERY
STATE OWNED LLC.

B. STATUTORY VARIATION
If after the effective date of contract, there is any change in the applicable law in

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Mongolia (including any taxes, duties, levies) and which results in additional
costs on the licensor, the same shall be borne by the Mongol refinery at no cost
to licensor.

C. INDIANWITHHOLDING TAX : NOT APPLICABLE

D. EVALUATION METHODOLOGY W.R.T. TAXES

Since all taxes & duties outside Mongolia are included in the prices of vendors
and taxes & duties in Mongolia are exempt, no loading on account of taxes &
duties shall be done.

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-
8601/1006)

SCHEDULE OF PRICES [SOP], REV. 0

SUPPLY OF KNOW-HOW/ LICENSE, BASIC DESIGN & ENGINEERING PACKAGE (BDEP), AND OTHER RELATED
SERVICES

FOR

LPG TREATING UNIT

OF

CONSTRUCTION OF A CRUDE OIL REFINERY PLANT IN MONGOLIA

Page 1 of 1

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-8601/1006)

SCHEDULE OF PRICES [SOP], REV. 0


CONTENTS
Sl. No. Sl. No. DESCRIPTION
1 FORM – B0 SUMMARY OF PRICES
2 FORM – B1 LICENSE, BASIC DESIGN & ENGINEERING PACKAGE (BDEP)

3 FORM – B2 PRICES FOR MANDATORY SERVICES


4 FORM – B2A MANDATORY SERVICES (BREAK-UP OF MAN-DAYS)
5 FORM – B3 PRICES FOR TRAINING
6 FORM – B4 SCHEDULE OF PERSONNEL RATES – ADDITIONAL SERVICES
7 FORM – B4A ADDITIONAL SERVICES (BREAK-UP OF MAN-DAYS)
8 FORM – B5 PRICES FOR SUPPLY OF PROPRIETARY ITEMS / EQUIPMENT
9 FORM – B6 PRICES FOR SUPPLY OF FIRST CHARGE OF CATALYSTS, ADSORBENTS, ABSORBENTS (As applicable)
10 FORM – B7 ESCALATION RATE
11 FORM – B8 DEPUTATION OF LICENSOR’S PERSONNEL [For Mandatory Services and Additional Services]
Note : BIDDERS ARE REQUIRED TO SUBMIT THEIR PRICES IN ALL FORMS OF SOP PROVIDED EXCEL FORMAT (i.e. FORM B1 TO FORM
B8)

Page 1 of 1

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-8601/1006)

Preamble to Schedule of Prices, Rev. 0


1 Currency of Quote and Payment:
a) Bidder shall quote the prices for materials and services in US Dollar (USD) only. Currency once quoted shall not be permitted to be changed.
b) No other currencies shall be allowed other than US Dollar and in case, bidder quote in currency other than USD, their offer shall be REJECTED.
c) Payment to the Bidder shall be made in USD.
2 Bidder to submit firm price based on complete scope of work for supply of Know-How/ License, basic design & engineering package, proprietary items, Catalyst,
Mandatory and Additional Services and Training as per format included in the Bidding document. The Licensor’s offer shall be complete in all respects, free from
ambiguity and shall be submitted together with requisite information and FORMs as per bidding document.
3 Bidder shall specify “QUOTED” or “NOT QUOTED”, as the case may be in unpriced bid in all FORMs of SOP.

4 All Prices quoted in all FORMs shall be TAXES & DUTIES (i.e., Annexure I) enclosed with Commercial Terms & Conditions (CTC).

5 Bidding document is being issued with a view to obtain firm offers for know-how, supply of license, basic design and engineering package and other related services &
supplies for LPG TREATING UNIT for this PROJECT. The proposal shall be completed in all respects, free from ambiguity and shall be submitted together with requisite
information and Annexures.

6 The shaded column in respective Form(s) of SOP shall not be filled up with Price.
SIGN AND STAMP OF BIDDER

Page 1 of 1

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-8601/1006)

Name of Bidder
FORM - B0

SUMMARY OF PRICES

AMOUNT IN US DOLLAR (USD)


SL. NO. ITEM DESCRIPTION UOM
IN FIGURE IN WORDS

License and Basic Engineering fees for LPG


1 LUMPSUM
TREATING UNIT as per FORM-B1.

Price for Detail Engineering fees as per FORM-


2 LUMPSUM
B1
Prices for Supply of Catalysts, Co-catalysts,
3 Adsorbents, Absorbents, Chemicals, Solvents, LUMPSUM
Additives, as per FORM - B6.
Prices for Mandatory Services as per FORM -
4 LUMPSUM
B2.
Prices for Training of Owner’s personnel as per
5 LUMPSUM
FORM - B3
Prices for Supply of Proprietary Equipments as
6 LUMPSUM
per FORM – B5
TOTAL AMOUNT (i.e. 1+2+3+4+5+6 ABOVE)
Schedule of Personnel Rates- Additional
7 PER DIEM RATES AS PER FORM-B4/B4A
Services as per FORM – B4/B4A

NOTE:
Page 1 of 2

Page 75 of 204
1 Breakup of above prices shall be quoted in subsequent FORMS.
2 In case of discrepancy in the prices quoted in this FORM and its breakup prices quoted in respective FORMS, the prices submitted
in respective FORMS shall prevail and the prices quoted in this FORM B0 shall be corrected for further evaluation.

3 In the subsequent FORMS, if any discrepancy is found between the total quoted amount in the FORM and the amount derived
after adding the individual items of that FORM, the amount arrived after adding the individual items of that FORM shall prevail.

4 UOM means Unit of Measurement.

Page 2 of 2

Page 76 of 204
SCHEDULE OF PRICES (REV. 0)
LPG TREATING UNIT
(Bidding Document No. RC/B285-000-LA-TN-
8601/1006)

Name of Bidder

FORM - B1
LICENSE and BASIC DESIGN & ENGINEERING PACKAGE (BDEP)
AMOUNT IN US DOLLAR (USD)
SL. NO. ITEM DESCRIPTION UOM
IN FIGURE IN WORDS

License fee for supply, delivery and transfer of know-how


for LPG TREATING UNIT complete in all respects in
1 LUMPSUM
accordance with provisions of Bidding Document on Lump-
sum basis

Fee for supply of Basic Design & Engineering Package


(BDEP) for LPG TREATING UNIT complete in all respects
2 LUMPSUM
in accordance with provisions of Bidding Document on
Lump-sum basis.

TOTAL AMOUNT (i.e. 1+2 above)


NOTES:
1. The above prices shall remain firm till execution of work and no escalation shall be payable.
2 Fee for supply of BDEP should include all works as per the scope of BDEP as per Technical Specifications.
3. The fees for Basic Design & Engineering Package (BDEP) shall be inclusive of the LICENSOR’s expenses towards Design Basis finalization
meeting, PFD review meeting and Agreement(s) finalization meeting (at LICENSOR’s Office), review meetings for P&ID’s (at LICENSORS office),
approval of detailed engineering documents (including fabrication drawing / data of vendor to the extent LICENSOR deems necessary from the
process guarantee point of view). LICENSOR shall confirm the schedule for the supply of the Complete Basic Design Engineering Package as
indicated in the Technical Specifications.

Page 1 of 1

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-
000-LA-TN-8601/1006)

Name of Bidder

FORM - B2
PRICES FOR MANDATORY SERVICES

AMOUNT IN US DOLLAR (USD)


SL. NO. ITEM DESCRIPTION UNIT

IN FIGURE IN WORDS
1. Mandatory Services for
(i) HAZOP and SIL studies during detail engineering at EPCC’s
office
(ii) 3D Model review (60% and 90%) at EPCC’s office
(iii) assistance during pre-commissioning/commissioning
activities at project site
(iv) Conducting performance guarantee test runs at project site
(v) Assistance during catalyst loading at project site

1.1 By Licensor Personnel (Deputed from Home office of the Bidder


to Mongolia / India) LUMPSUM

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1.2 By Licensor’s Personnel (Deputed from Indian Subsidiary of
Licensor company to India) LUMPSUM

TOTAL AMOUNT (i.e. 1.1 + 1.2 above)


Notes:
The above prices shall be valid upto 31.12.2020. However, the prices beyond 31.12.2020 shall be subject to escalation as per FORM – B7.
1

In case the actual number of Man-days utilized for the above Mandatory Services is lower or higher than 500, the lumpsum amount
2 quoted shall be prorated based on the actual number of Man-days to arrive at the amount payable and payment shall be made
accordingly.
The quoted Lumpsum prices shall be inclusive of all costs, overhead and profit, local transportation, living allowance, communication,
taxes outside Mongolia etc. but exclusive of airfare (Local and International via shortest route), accomodation at Project Site and
3
Transportation from Place of accomodation to work place and back. For details and exclusions refer Notes of FORM B8.

Bidder to specify the break-up of 500 Man-days (inclusive of travel time and Sunday as holiday) for Licensor Personnel services from
4 (Home office to Mongolia/India) and from (Indian Subsidiary to India) respectively in the Un-priced Part in Form-B2A and accordingly
bidder to quote the prices in this FORM against item no. 1.1 & 1.2 above.

Lumpsum amount quoted by bidder for 500 Man-days (inclusive of travel time and Sunday as holiday) shall be considered for evaluation.
5 However, to derive the per diem rate, lumpsum amount quoted shall be prorated based on the estimated 500 Man-days.

Licensor personnel/ Persons of Licensor's Indian subsidiary shall have to work 48 hours a week, i.e. 8 hours per day with sunday as holiday.
No additional payment shall be made for the Licensor’s personnel/ Persons of Licensor's Indian subsidiary for the above services.
6 However, in case of exigencies of work, Licensor’s personnel/ Persons of Licensor's Indian subsidiary will be required to put in extra man
hours without any additional payment

Travelling Time (to & fro) for each personnel shall be Two (2) mandays for personnel coming from Outside India and One (1) Manday for
7 the personnel coming within India.

Page 2 of 2

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-8601/1006)

Name of Bidder

FORM - B2A
MANDATORY SERVICES (BREAK-UP OF MAN-DAYS) – THIS SHEET IS TO BE SUBMITTED ALONG WITH UNPRICED BID
Sl. Item Description Number
No. {Break up of 500 Man-days)

1 Mandatory Services for


(i) HAZOP and SIL studies during detail engineering at EPCC’s office
(ii) 3D Model review (60% and 90%) at EPCC’s office
(iii) assistance during pre-commissioning/commissioning activities at project site
(iv) Conducting performance guarantee test runs at project site
(v) Assistance during catalyst loading at project site

1.1 By Licensor Personnel (Deputed from Home office of the Licensor to Mongolia /
India)

1.2 By Licensor’s Personnel (Deputed from Indian Subsidiary of Licensor company to


India)

NOTE: Bidder shall submit this FORM duly filled in Mandays in unpriced Bid only. In case, if this FORM is submitted in Priced Bid, this FORM shall be ignored and
evaluation shall be based on details submitted in Unpriced Bid.
SIGN AND STAMP OF BIDDER

Page 1 of 1

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-8601/1006)

Name of Bidder

FORM - B3
PRICES FOR TRAINING

AMOUNT IN US DOLLAR (USD)


SL. NO. ITEM DESCRIPTION UNIT

IN FIGURE IN WORDS
1 Licensor shall provide Training to Owner’s personnel on process design,
operation, maintenance, analytical procedures etc. as indicated below as
per requirements of Bidding Document (Lumpsum amount).

1.1 In the LICENSOR’S design office for 10 (Ten) technical persons for the
LPG TREATING UNIT for a period of 10 working days LUMPSUM

1.2 In substantially similar operating plants for the LPG TREATING UNIT for
10 (Ten) technical persons separately for a period of 10 working days LUMPSUM

TOTAL AMOUNT (i.e. 1.1+1.2 above)

OPTIONAL PRICE

2 LICENSOR to quote charges for Operator Training Simulator (OTS) design


and supply – OPTIONAL (THIS PRICE IS NOT TO BE CONSIDERED IN
LUMPSUM
FORM-A AND SHALL NOT BE CONSIDERED FOR EVALUATION)

Notes :

1. The above prices shall be valid upto 31.12.2020. However, the prices beyond 31.12.2020 shall be subject to escalation as per FORM – B7.

Page 81 of 204
2. Bidder shall quote Lumpsum prices for the above. The amount quoted shall be inclusive of all cost, overhead, profit, transporation (airfare and local), accomodation, living
allowance, communication, taxes, etc. for Licensor's personnel and also inclusive of fees to be paid to plant owner towards practical training at operating Plant. No additional
payment will be made for licensor's personnel in this regard.

3. Expenses for travel, boarding, lodging, and sustenance of the trainees / LICENSEE’s personnel at the place of training will be borne by the LICENSEE

SIGN AND STAMP OF BIDDER

Page 82 of 204
SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-
8601/1006)

Name of Bidder

FORM - B4
SCHEDULE OF PERSONNEL RATES – ADDITIONAL SERVICES

PER DIEM RATE IN US DOLLAR (USD)


Sl. No. Item Description
IN FIGURE IN WORDS
1 Additional Services (PERSONNEL RATES FOR SERVICES RENDERED)

A At Licensor’s Home office (Per Manday)

i) Engineering
a) Development of APC Strategies
b) Development of specification for process simulators
ii) Inspection
a) Procurement/ Inspection/ expediting of critical equipment
b) Supervision during construction
c) Inspection at vendor’s shop floor/ prequalification of vendors
d) Any other activity/ service related to project implementation

B1 At EPC Contractor / Consultant / Client's Office deputed from Licensor's Indian


Subsidiary (per Manday)
i) Engineering
a) Development of APC Strategies
b) Development of specification for process simulators
ii) Inspection
a) Procurement/ Inspection/ expediting of critical equipment
b) Supervision during construction
c) Inspection at vendor’s shop floor/ prequalification of vendors
d) Any other activity/ service related to project implementation

Page 1 of 2

Page 83 of 204
B2 At EPC Contractor / Consultant / Client's Office deputed from Home office of
Licensor (per Manday)
i) Engineering
a) Development of APC Strategies
b) Development of specification for process simulators
ii) Inspection
a) Procurement/ Inspection/ expediting of critical equipment
b) Supervision during construction
c) Inspection at vendor’s shop floor/ prequalification of vendors
d) Any other activity/ service related to project implementation

Notes :
1. The above prices shall be valid upto 31.12.2020. However, the prices beyond 31.12.2020 shall be subject to escalation as per FORM – B7.

2. Per Diem rates shall be furnished for Licensors personnel involved in rendering Additional Services in accordance with the provisions of Bidding Document and its amendments.
Bidder to mention the further breakup of Manhour in FORM B4A against item at s.no. B1 & B2.
Further, Please refer to sections on Additional Services of Technical Specifications and subsequent amendments, if any, for details.

3. Single rates applicable for each of the service categories- Engineering and Inspection Activities shall be quoted.

4. For the purpose of evaluation total of 150 man-days inclusive of travel time and Sunday as holiday shall be considered and the break-up shall be as under:
a. Engineering: 50 man-days at Licensor’s Home office and 50 man-days at EPC Contractor/Client /Consultant’s office. Further, breaup of 50 man-days (at s.no. B1 & B2 in FORM
B4A) at EPC Contractor/Client /Consultant’s office shall be provided in FORM B4A
b. Inspection: 20 man-days atLicensor’s Home office and 30 man-days at EPC Contractor/Client /Consultant’s office. Further, breaup of 30 man-days (at s.no. B1 & B2 in FORM B4A)
at EPC Contractor/Client /Consultant’s office shall be provided in FORM B4A

5. The quoted per diem charges shall be inclusive of all costs, overhead and profit, local transportation, living allowance, communication, taxes outside Mongolia etc. but exclusive
of airfare (Local and International via shortest route), accomodation at Project Site and Transportation from Place of accomodation to work place and back. For details and
exclusions refer Notes of FORM B8.
6. Licensor personnel/ Persons of Licensor's Indian subsidiary shall have to work 48 hours a week, i.e. 8 hours per day with sunday as holiday. No additional payment shall be made
for the Licensor’s personnel/ Persons of Licensor's Indian subsidiary for the above services. However, in case of exigencies of work, Licensor’s personnel/ Persons of Licensor's
Indian subsidiary will be required to put in extra man hours without any additional payment
7. Travelling Time (to & fro) for each personnel shall be Two (2) mandays for personnel coming from Outside India and One (1) Manday for the personnel coming within India.

SIGN AND STAMP OF BIDDER

Page 2 of 2

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SCHEDULE OF PRICES (REV. 0)
LPG TREATING UNIT
(Bidding Document No. RC/B285-000-LA-TN-
8601/1006)

Name of Bidder

FORM - B4A
ADDITIONAL SERVICES (BREAK-UP OF MAN-DAYS) – THIS SHEET IS TO BE SUBMITTED ALONG WITH UNPRICED BID

Number
Sl. No. Item Description
{Break up of 150 Man-days)

A At Licensor’s Home office


i) Engineering
a) Development of APC Strategies 50
b) Development of specification for process simulators
ii) Inspection
a) Procurement/ Inspection/ expediting of critical equipment
b) Supervision during construction
c) Inspection at vendor’s shop floor/ prequalification of vendors
20
d) Any other activity/ service related to project implementation

B1 At EPC Contractor / Consultant / Client's Office deputed from Licensor's Indian


Subsidiary
i) Engineering
a) Development of APC Strategies
b) Development of specification for process simulators
ii) Inspection
a) Procurement/ Inspection/ expediting of critical equipment
b) Supervision during construction
c) Inspection at vendor’s shop floor/ prequalification of vendors
d) Any other activity/ service related to project implementation
B2 At EPC Contractor / Consultant / Client's Office deputed from Home office of
Licensor
i) Engineering
a) Development of APC Strategies
b) Development of specification for process simulators

Page 1 of 2

Page 85 of 204
ii) Inspection
a) Procurement/ Inspection/ expediting of critical equipment
b) Supervision during construction
c) Inspection at vendor’s shop floor/ prequalification of vendors
d) Any other activity/ service related to project implementation
Notes :
1. Bidder to note cumulative quantity at s.no. B1(i) & B2(i) should be equal to 50.
2. Bidder to note cumulative quantity at s.no. B1(ii) & B2(ii) should be equal to 30.
3. Bidder shall submit this FORM duly filled in Mandays in unpriced Bid only. In case, if this FORM is submitted in Priced Bid, this FORM shall be ignored and evaluation shall be
based on details submitted in Unpriced Bid.
SIGN AND STAMP OF BIDDER

Page 2 of 2

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-8601/1006)

Name of Bidder

FORM – B5
PRICES FOR SUPPLY OF PROPRIETARY ITEMS/ EQUIPMENT

Unit Price Total Price


ITEM DESCRIPTION Quantity
(USD) (USD)
S.No. UNIT
(Bidder to specify) (Bidder to specify)
In figures
1 Supply of proprietary items/Equipment,
if any, on CFR Port of Entry (Inco terms
2010) in accordance with provisions of
Bidding Document – On Lump Sum basis.

(i) Nos. 0

(ii) Nos. 0

(iii) Nos. 0

(iv) Nos. 0

(v) Nos. 0

TOTAL AMOUNT ON CFR PORT OF ENTRY (In Figures) 0

Page 1 of 2

Page 87 of 204
TOTAL AMOUNT ON CFR PORT OF ENTRY (In Words)
___________________________%
OCEAN FREIGHT IN % INCLUDED IN ABOVE TOTAL CFR AMOUNT (Note-1) (in Figures)

Notes :

1. The above prices shall be valid upto 31.12.2020. However, the prices beyond 31.12.2020 shall be subject to escalation as per FORM – B7.

2. Prices of mandatory, if required/commissioning spares shall be included in the price of proprietary items/equipment.

3. Delivery schedule of Proprietary items/ equipment from placement of order shall be firm and valid till commissioning of the Unit.
4. Bidder to list proprietary items/equipment, furnishing item description, quantity, unit price in the Priced Part. Licensor may add new rows for
nos. Proprietary equipment/item as applicable. Delivery Schedule of proprietary items/equipment shall be furnished in Unpriced bid in the
format "Commercial Questionaire" enclosed in Bidding Document.

5. Port of Entry in China for all imported items/equipments shall be considered as Tianjin Port, China.
6. The order for proprietary equipment/items shall be placed separately on the above price. The other commercial terms shall be finalised with
the supplier of proprietary equipment/Items at the time of placement of order, except the terms and conditions already agreed against this
bidding document.

SIGN AND STAMP OF BIDDER

Page 2 of 2

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-8601/1006)

Name of Bidder

FORM– B6
SUPPLY OF FIRST CHARGE OF CATALYSTS, CO-CATALYST, ADDITIVES, SOLVENT, CHEMICALS, ADSORBENTS, ABSORBENTS (As applicable)
Qty of Base
Catalyst/
Chemical/Ads
Item
orbent/
Description Cost of Base
Absorbent/ Unit Rate of
Catalyst/
Additive Base Catalyst/
(i.e., Name of Quantity Chemical/
including Chemical/
Catalyst/ including Adsorbent/ Quantity Quantity
Quantity handling/ Adsorbent/ Quantity
Chemical/ handling losses/ Absorbent/ of of
Required contingency Absorbent/ of
Sl Adsorbent/ contingency (i.e. Additive Metal 2 Metal 3
(Note-2) UOM losses Additive Metal-1 Metal 1 Metal-2 Metal-3
No Absorbent 5%) (CFR Port of entry (in % of (in % of
(- to be (CFR Port of entry (in % of column 6)
/ Additive) (Note-3 ) basis) column 6) column 6)
rounded off basis)
to the
(Bidder to (col 6 x col 7)
nearest barrel (in USD)
specify….)
/ drum/ bag
(in USD)
size)
(Note -1)
(Note-4)

1 2 3 4 5 6 7 8 9 10 11 12 13 14
a) Supply of First Charge of Catalysts and Co-Catalyst/ Adsorbent/Absorbent or any other item (Including Modules) offering Catalyst Function,

Page 1 of 4

Page 89 of 204
Sub Total (a)
b) Supply of Catalyst, Proprietary Catalyst, Proprietary co-catalyst, (if any) being continuously consumed in the process for a period of 12 (twelve) months for continuous operation.

Sub Total (b)


c) Supply of Initial Fill Proprietary additives, Proprietary Solvents or Proprietary Chemicals (if any)

Sub Total (c)


d) Supply of 6 (Six) months consumption of continuously consumed Proprietary additives, Proprietary Solvents or Proprietary Chemical (if any)

Page 2 of 4

Page 90 of 204
Sub Total (d)
Notes:
1. Licensor may add/delete/update the rows, as required, for submission of details in the above table for the following as per the requirment of Bidding Document for continuous operation of LPG Treating Unit:
a) Supply of First Charge of Catalysts and Co-Catalyst/ Adsorbent/Absorbent or any other item (Including Modules) offering Catalyst Function,
b) Supply of Catalyst, Proprietary Catalyst, Proprietary co-catalyst, (if any) being continuously consumed in the process for a period of 12 (twelve) months for continuous operation
c) Supply of Initial Fill Proprietary additives, Proprietary Solvents or Proprietary Chemicals (if any)
d) Supply of 6 (Six) months consumption of continuously consumed Proprietary additives, Proprietary Solvents or Proprietary Chemical (if any)

2. The catalyst/ adsorbent quantities quoted above shall be considered as guarantee values.

3. Catalyst/adsorbent/absorbent/Additive/ Solvent/ Chemical: Quantity quoted shall be inclusive of 5% for Handling/ contingency towards loss/ spillage. Further, Bidder should provide rounded-off quantity nearest to barrel / drum
size in the priced bid and the same shall be considered for evaluation.

4. The catalyst/ adsorbent values indicated under this head of rounded to nearest drum/bag/ barrel/container size shall be considered for NPV calculation.

5. For proprietary chemicals/ solvents/ additives which are required to be filled in the system initially, their supplied quantities should be sufficient for meeting the inventory of the system which should be considered based on 15
days of continuous operation of the unit
6. The above prices shall be valid upto 31.12.2020. However, the prices beyond 31.12.2020 shall be subject to escalation as per FORM – B7.

7. Shortest Delivery Schedule shall be furnished in Unpriced bid in the format "Commercial Questionaire" enclosed in Bidding Document. Delivery schedule shall be firm and valid till completion of the Project.

8. The cost of all Catalyst Adsorbents/ Absorbents/ Chemicals shall include supply of all Catalyst (Proprietary & Non-Proprietary)/ Adsorbents/ Absorbents/ Chemicals and in non-returnable suitable sealed packing that will prevent
loss, damage, deterioration or corruption of these items during ocean, air, rail and truck travel, handling and storage. The Licensor shall describe the type of packing and details of drum / barrel / bag / containers in its bid. The
Licensor shall also confirm that the packing is suitable for transit and handling and for long term storage at Project site. The Catalysts/ Adsorbents/ Absorbents/ Chemicals supplied in drums/bags should be palletized for dispatch.

9.Quantity quoted in column 3, 5 and 6 shall be inclusive of all manufacturing losses.

10. Cost of total base Catalysts/ Adsorbents/ Absorbents shall be inclusive of all elements associated with Catalysts/ Adsorbents/ Absorbents processing, all conversion charges, processing cost, service charges for procurement
of metals, as applicable, etc.

11. Price for Catalyst shall be : Catalyst Price = Cost of total base Catalyst + Cost of metals, as applicable

12. The catalyst prices shall be exclusive of the metal prices as indicated by Bidder in the Price Bid. Metals which are not indicated separately in price Bid by Bidder shall be part of Base Catalyst. The name & respective quantity of
metals shall be mentioned separately in respective columns of Form-B6.
LME index reference is to be considered for NPV calculation and ordering. In case, specific metal price is not available in LME website, the metal price in CRU RYAN Notes shall be considered for NPV calculation and ordering.

13. For Molybdenum (wherever applicable), the Floor rate shall be submitted by the Bidders as below alongwith support Letter from their supplier. The floor price quoted by Bidder shall be used for evaluation of Price/NPV
calculation. However, for Ordering, either floor price or published Index Price (LME or CRU RYAN Notes) whichever is “Higher” shall be considered. Published Index Price shall be 3 Months’ average price, ending the month prior to
the shipment.

Floor Price of Molybdenum ……./Kg (To be indicated in Unprice copy of Price Bid alogwith support Letter from their Supplier.

14. The metal prices except 'Molybdenum & Platinum' shall be based upon three months’ average price ending the month prior to shipment. However, for evaluation/ NPV calculation, the latest price one day prior to the date of
price bid opening of respective metal (For Catalyst, Chemicals, Adsorbents, Absorbents, Additives, as applicable) available as per LME index/Index as considered for NPV Evaluation shall be considered. In case, specific metal
price is not available in LME website, the metal price in CRU RYAN Notes shall be considered.

15. Procurement methodology of Platinum is attached in Bidding Document

Page 3 of 4

Page 91 of 204
16. Licensor shall indicate FIRM Quantities of metals in their Price Bid considering the Technical specifications and proposed catalyst.

17. Bidder to note that only the name of the Catalyst and Name of Metal shall be submitted in the Unpriced Bid.

18. Port of Entry in China for all imported items/equipments shall be considered as Tianjin Port, China.

19. Bidder shall quote unit prices for supply of Catalyst/ Chemical/ Adsorbent/ Absorbent / Additive/ or Any other item (Including Modules) offering Catalyst Function including ceramic balls required.

20.Bidder to note that the quantity of base Catalyst or metal are required to be quoted in Priced Bid only .

21. Catalyst means "Catalyst/ Chemical/ Adsorbent/ Absorbent / Additive/ or Any other item (Including Modules) offering Catalyst Function including ceramic balls"

22. Bidder shall quote prices for supply of Catalyst/ Chemical/ Adsorbent/ Absorbent / Additive/ or Any other item (Including Modules) offering Catalyst Function on CFR port of entry (Inco terms 2010). The ocean freight charges of
all Metals shall be considered included in the CFR price quoted by bidder for Base Catalyst. Bidder shall also indicate ocean freight in % included in the CFR price from FOB port of exit to CFR port of Entry.

23. For the purpose of CPBG & PRS, Supply cost means cost of Catalyst and shall exclude cost of Metals arrived based on the quantity quoted in the above table only.

24. Price reduction Schedule for delay in supply of Catalyst shall be applicable even if the delay of supply of Metal purchased by the licensor. However, cost of catalyst for the purpose of PRS should exclude the value of such
Metal purchased by the licensor or made available to Licensor by Licensee.

25. Life of catalyst mentioned in Annexure IV C of Technical Specification shall be considered as "guaranteed life".

SIGN AND STAMP OF BIDDER

Page 4 of 4

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-8601/1006)

Name of Bidder

FORM – B7
ESCALATION RATE
Rate of Annual Escalation in Percentage for prices specified in (in figures as well as in words)

Sl. No. Year FORM – B5


FORM - B2 (Mandatory FORM - B3 FORM - B4 (Personnel FORM – B6 (Catalysts, chemicals,
(Proprietary equipment’s /
services) (Training) rates- Additional services) adsorbents, absorbents, additives )
items)

1. 2021

2. 2022

3. 2023

4. 2024

5. 2025

6. 2026

NOTES:
1. Rate of Escalation (as on 1st day of the year) shall be indicated in terms of percentage in figures as well as in words. In case any percentage is not mentioned, then it will be construed that the prices in
FORM -B2 to FORM –B6 are valid and firm up to 31.12.2026.
2. The above escalation rate shall be considered for computation of NPV. It is explained that if any escalation percentage is mentioned in 2020, then it automatically applies to 2021. It means, the
percentage mentioned in 2021 shall be in addition to the price already increased during 2020 as a result of percentage mentioned in 2020. Similar provisions shall be applicable for subsequent years also.
Example:
Base Price : 1000 valid up to Bid Validity say 30.06.2020
Escalation for 2021 : 2%
Escalation for 2022 : 1%
Escalation for 2023 : 1%

Price in 2020 : 1000


Price in 2021 : 1000 X 1.02
Price in 2022 : 1000 X 1.02 X 1.01
Price in 2023 : 1000 X 1.02 X 1.01 X 1.01
……………………..and so on for further years till year 2026
3. For the purpose of payment, the above esclation shall be considered on annual basis, i.e., the esclated rate shall be uniform from the 1st day of the year till the last day of the year.
SIGN AND STAMP OF BIDDER

Page 1 of 1

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SCHEDULE OF PRICES (REV. 0)

LPG TREATING UNIT


(Bidding Document No. RC/B285-000-LA-TN-8601/1006)

Name of Bidder
FORM-B8
DEPUTATION OF LICENSOR’S PERSONNEL [FOR MANDATORY, ADDITIONAL SERVICES]

1.1 DEPUTATION OF LICENSOR’S PERSONNEL FROM LICENSOR'S HOME OFFICE


(i) For each person deputed by LICENSOR from Home Office to Owner / EPC Contractor / Consultant, for services in connection with the LICENSED Unit for which
LICENSEE is liable to pay as per terms and conditions, the LICENSEE shall only reimburse/arrange the following:

a) Round Trip Air Ticket from LICENSOR’s designated Office to airport nearest to Owner / EPC Contractor / Consultant. Owner shall reimburse Air Ticket at actuals
as follows:
A) Round Trip Business Class Airfare from Travel outside to India and/or Mongolia
B) Round trip Economy Class for Travel within India and/or Mongolia to the nearest Airport to EPC Contractor / Consultant / Owner.

b) ONLY 'Accomodation at Project Site' and Transportation from 'Accomodation at Project Site' to work place and back.

(ii) No additional Living allowance over & above the Lumpsum Price (or) per diem rate for Mandatory and Additional services respectively as quoted by Bidder would
be admissible. No other incidental expense over & above the Lumpsum Price or per diem rate as quoted by bidder for Mandatory and Additional Services would be
admissible.

(iii) LICENSOR shall not, unless otherwise specifically permitted by the LICENSEE, permit any of LICENSOR’s personnel to stay in India for more than 6 (six)
months and shall replace any or all of its engineers who remain continuously in India prior to their completing a 6 (six) months stay in India.

LICENSOR shall not, unless otherwise specifically permitted by the LICENSEE, permit any of LICENSOR’s personnel to stay in Mongolia for a period more than as
specified in Mongolian law and shall replace any or all of its engineers who remain continuously in Mongolia prior to completion of such specified stay as per
Mongolian Law.

LICENSOR will give LICENSEE not less than 15 (Fifteen) days prior written notice of its intention to replace any of its engineers. Replacement shall be arranged in
such a manner as not to prejudice the LICENSOR’s responsibility of testing and commissioning the UNIT and proving the LICENSOR’s guarantees.

(iv) Deputation of any LICENSOR’s personnel (including replacements) shall be subject to the LICENSEE approving the qualifications and bio-data of the person(s)
proposed. Notwithstanding such approval, the LICENSEE may for reason(s) which the LICENSEE shall not be bound to disclose, require the replacement of any
LICENSOR’s personnel.

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(v) LICENSOR shall be exclusively responsible to pay and bear the cost including all kind of Transportation of repatriating and replacing any LICENSOR’s
personnel who is unable to continue because of death, injury or sickness. In case of replacement of person due to death, injury or sickness, the actual arrival of
replacement at Site shall be considered for the purpose of calculating mandays.

Further, the Airfare charges from Licensor's office to India and/or Mongolia and Airfare charges within India and/or Mongolia shall be borne by Licensor in case of
replacement of Licensor's personnel in the above situation.

2.1 DEPUTATION OF LICENSOR’S PERSONNEL FROM INDIAN SUBSIDIARY OF LICENSOR TO INDIA ONLY

For each person deputed by the LICENSOR'S Indian Subsidiary to India for services in connection with the LICENSED Unit for which LICENSEE is liable to pay as
per terms and conditions, the LICENSEE shall reimburse/arrange the following:

a) Owner shall reimburse Round Trip economy Air Ticket from LICENSOR’s Indian Subsidiary designated Office in India to Indian airport nearest to Owner / EPC
Contractor / Consultant.
b) No additional Living allowance over & above the Lumpsum Price (or) per diem rate for Mandatory and Additional services respectively as quoted by Bidder would
be admissible. No other incidental expense over & above the Lumpsum Price or per diem rate as quoted by bidder for Mandatory and Additional Services would be
admissible.

3.1 Office Space with Computer having internet shall only be provided.

4.1 PER DIEM charges payable for LICENSOR’s personnel shall commence with the commencement of the journey from the airport located nearest to licensor’s
office by shortest route to the location of deployment, and shall terminate with the termination of the return International journey. For each delegation of a person
maximum of two mandays (to & fro) for personnel coming from Outside India and/or Mongolia and One Manday (To & fro) for personnel coming from Indian
Subsidiary of Licensor for travel within India as transit period or actual whichever is lower shall be considered.

5.1 Although the LICENSEE may as a courtesy permit LICENSOR’s personnel to be treated at any medical facility provided by the LICENSEE, the LICENSEE
undertakes no obligation to provide any medical assistance or treatment to LICENSOR’s personnel or to bear any medical, hospitalization, treatment or any other
expenses incurred by the LICENSOR’s personnel during deputation, and any courtesy medical facilities provided at any LICENSEE facility shall be without any
attendant obligation on the LICENSEE and its personnel relative thereto, including for negligence or incompetence, and these terms shall constitute a complete and
absolute waiver and discharge by the LICENSEE and any personnel deputed by it of any rights and causes of action of the LICENSEE / personnel against the
OWNER or its personnel relative thereto, and an indemnity against all contrary claims and actions.

SIGN AND STAMP OF BIDDER

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Project Management Consultancy (PMC) Services for Construction
of a Crude Oil Refinery Plant in Mongolia

LICENSOR SELECTION FOR LPG TREATING UNIT

(Document No : B285-000-02-42-LA-T-8601)

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Click on the Document Title to go to that section of the document

Table of Contents
Document Number Rev. Document Title Page
Number
B285-000-02-42-LA- 0 LICENSOR SELECTION FOR LPG TREATING UNIT 3
T-8601

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TECHNICAL SPECIFICATIONS FOR Document No.
BIDDING DOCUMENT OF B285-02-42-TS-01
Rev. No. 0
LPG TREATING UNIT
Page 1 of 107

TECHNICAL SPECIFICATIONS
FOR
SUPPLY OF LICENSE, BASIC DESIGN & ENGINEERING PACKAGE
AND
OTHER RELATED SERVICES
FOR
LPG TREATING UNIT

MONGOL REFINERY PROJECT

0 27.09.19 Issued for Bid SKG AK SS


Rev.
Date Purpose Prepared by Reviewed by Approved by
No.

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TECHNICAL SPECIFICATIONS FOR Document No.
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LPG TREATING UNIT
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TABLE OF CONTENTS

Section Contents Page

1.0 Introduction 08

2.0 Basis for Technical Proposal 09


2.1 Processing Objective 09
2.2 Definition of Battery Limits 09
2.3 Design Feed & Unit Capacity 11
2.4 Feed Characteristics 12
2.5 On-stream Factor 15
2.6 Turndown Capability 15
2.7 Product Specifications 16
2.8 Unit Optimisation criteria 17
2.9 Battery Limit Conditions for Process Streams 18
2.10 Battery Limit Conditions for Utilities 20
2.11 Catalysts, Adsorbent, Absorbent & Chemicals 22
2.12 Specific Process Design Guidelines 23
2.13 Safety and Environmental Aspects 28
2.14 General 29

3.0 Scope of Licensor’s Services & Supplies 30

4.0 Guarantees & Liabilities 38

5.0 Technical Evaluation Criteria 43

6.0 Information Required from Licensor for Proposal 46

Attachments:

Annexure-IV A Scope of Basic Design & Engineering Package


Annexure-IV B Time schedule
Annexure-IV C Technical information & Guarantees
Annexure-IV D Information in respect of Reference Units
Annexure-IV E Check List for Submission of Bid-Technical

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Definitions* and List of Acronyms

Acronyms Description
ABD Amine Blow down
API American Petroleum Institute
APC Advance Process Control
APH Air Pre-Heater
API American Petroleum Institute
AR Atmospheric Residue
ARU Amine Regeneration Unit
ASTM American Society for Testing & Materials
ATF Aviation Turbine Fuel (Jet Fuel)
BDEP Basic Design & Engineering Package
BEDB Basic Engineering Design Basis
BFW Boiler Feed Water
BL (also B/L) Battery Limit
BS&W Basic Sediment & Water
CBD Closed Blow down
CDU Crude Distillation Unit
COS Carbonyl Sulphide
PMC Project Management Consultant
CPP Captive Power Plant
CSC Car-seal-closed
CSO Car-seal-open
CW Cooling Water
DCS Distributed Control System
DFS Detailed Feasibility Study
DHDT Diesel Hydrotreater
DM water Demineralized water
DSO Di-sulphide Oil
EIL Engineers India Limited
EOL End of Life
EOR End of Run

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Acronyms Description
EP End Point
EPCC Engineering, Procurement, Construction Contractor
ESD Emergency Shut down
ETP Effluent Treatment Plant
FBP Final Boiling Point
FF Bus Foundation Field Bus
FG Fuel Gas
GOI Government of India
HAZID Hazard Identification Studies
HAZOP Hazard and operability study
HCU Hydrocracker Unit
HGO Heavy Gas Oil
HGU Hydrogen Generation Unit
HIC Hydrogen Induced Cracking
HP High Pressure
HHP High High Pressure
HTRI Heat Transfer Research, Inc
HVGO Heavy Vacuum Gas Oil
IBP Initial Boiling Point
IBR Indian Boiler Regulation
ID Inside Diameter
IFO Internal Fuel Oil
ISA International Society of Automation
ISO International Organization for Standardization
ISOM Isomerisation Unit
ISBL Inside Battery Limit
KERO Kerosene
KOD Knock Out Drum
KOH Potassium hydroxide
KOM Kick Off Meeting
KTPA Kilo Tons Per Annum

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Rev. No. 0
LPG TREATING UNIT
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Acronyms Description
kW Kilo Watt
LC Locked Closed
LGO Light Gas Oil
LHSV Liquid Hourly Space Velocity
LHV Latent heat of vaporisation
LLI Long Lead Item
LO Locked Open
LoC Line of Credit
LLP Low Low Pressure
LP Low Pressure
LPG Liquefied Petroleum Gas
LPGTU LPG Treating Unit
LTCS Low Temperature Carbon Steel
LVGO Light Vacuum Gas Oil
MDEA Methyl Diethanol Amine
MDMT Minimum Design Metal Temperature
MMHI Ministry of Mining and Heavy Industry, Mongolia
MMTPA Million Metric Tons Per Annum
MNS Mongolian National Standards
MOC Materials of Construction
MON Motor Octane Number
MP Medium Pressure
MR Mongol Refinery State Owned LLC
MS Motor Spirit
MSD Material Selection Diagram
MT Metric Tons
NACE National Association of Corrosion Engineers
NHT Naphtha Hydrotreater
NIT Notice Inviting tender
NPSH Net Positive Suction Head
NPV Net Present Value

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Rev. No. 0
LPG TREATING UNIT
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Acronyms Description
NW North West
OAL Overall Aggregate Liability
OD Outside Diameter
PC&ED Process Cause and Effect Diagram
PFD Process Flow Diagram
PGTR Performance Guarantee Test Run
P&ID/PID Piping and Instrumentation Diagram
PIONA n-Paraffin, Iso-paraffin, Olefin, Naphthene, and
PONA Paraffin, Olefin, Naphthene, and Aromatic
PMS Piping Material Specification
PRT Power Recovery Turbine
PSA Pressure Swing Adsorption
PSV Pressure Safety Valve
PTB Pounds per thousand Barrel
PWHT Post Weld Heat Treatment
RON Reid Octane Number
RVP Reid Vapor Pressure
SE South East
SIL Safety integrity level
SOL Start of Life
SOP Schedule of Prices
SOR Start of Run
SR Straight Run
SRR Semi Regenerative Reformer
SRU Sulphur Recovery Unit
SWS Sour Water Stripper
TBP True Boiling Point
TDS Total Dissolved Solids
TEMA Tubular Exchanger Manufacturers Association
TSO Tight Shut Off
U&O Utility / Offsite

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TECHNICAL SPECIFICATIONS FOR Document No.
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LPG TREATING UNIT
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Acronyms Description
UOM Unit of Measure
US Untied States
USD US Dollar
VBU Vis-breaker Unit
VD Vacuum Diesel
VDU Vacuum Distillation Unit
VFD Variable Frequency Drive
VGO Vacuum Gas Oil
VGO-HDT Vacuum Gasoil Hydrotreater
VR Vacuum Residue
WABT Weighted Average Bed Temperatures

*For various definitions, Refer Commercial section of this Bidding document. Further it may be
noted that:
- Licensor referred in this “Technical Specifications for Bidding Document” is to be
referred as “Bidder” before entering into the signing of Tripartite Agreement with the
Project Implementing Company and Consultant.
- Term “Catalyst” is applicable for Catalyst, co-catalyst, adsorbent, absorbent or any
other item (e.g. modules) offering catalytic function.
- Term “Chemical” is applicable for Chemical, Solvent, Additive or any other such similar
item



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1.0 INTRODUCTION

1.1 Government of Mongolia is planning to set up a grass root refinery in Mongolia for a
capacity of 1.5 MMTPA, which will be implemented with funding from Exim Bank of
India under LoC (Line of Credit) opened for Mongolia by Government of India (GOI).
The proposed refinery is envisaged to utilize the crude from Mongolian oil fields and
produce LPG & transport fuels meeting Euro-V or Mongolian National Standards
(MNS) specifications, whichever is stringent.

The refinery configuration consists of a Full Conversion Hydrocracker unit as a


secondary processing unit and a Visbreaker unit as a bottom processing unit along
with MS block and DHDT unit.

1.2 Mongol Refinery State Owned LLC (MR) has entrusted Engineers India Limited (EIL) as
PMC to perform the Licensor selection of all licensed units.

1.3 This document constitutes Technical Specifications for obtaining firm techno-
commercial proposals from prospective technology licensors of LPG Treating Unit
technologies for supply of License, Know-how, Basic Design & Engineering Package
(BDEP), proprietary supplies and other related services as detailed under technical
specifications for evaluation of the technologies and selection of Licensor for the
proposed LPG Treating Unit.

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LPG TREATING UNIT
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2.0 BASIS FOR TECHNICAL PROPOSAL

The technical proposal from the licensors shall be based on the basis as outlined in this
section.

2.1 PROCESSING OBJECTIVE

2.1.1 The LPG Treating Unit shall be designed to produce LPG conforming to Euro-V or MNS
specification (whichever is stringent) from the unstabilized LPG coming from the
Saturated Gas Plant Unit.
The main objective of this unit is to remove / reduce mercaptans and other defined
impurities from LPG produced in upstream Saturated Gas Plant.
2.1.2 The treated LPG from LPG Treating Unit is sent to Saturated Gas Plant for
stabilization.
2.1.3 Naphtha from NHT and HCU is used as Wash Oil for separation of Disulphide Oil
2.1.4 The normal routing of the product and other process streams are envisaged as
follows:
a. Treated LPG to Saturated Gas Plant (SGP)
b. Spent caustic to Effluent Treatment Plant (ETP)
c. Disulphide Oil rich Naphtha to Diesel Hydrotreater (DHDT)

2.2 DEFINITION OF BATTERY LIMITS

2.2.1 The facilities under LPG Treating Unit battery limits shall consist of the following
sections, all of which shall be within the scope of Licensor’s design:

1) All processing facilities including feed storage, pumping, preparation,


treatment, separation etc. as needed to meet the process objectives and
guarantees, conforming to the design basis and other considerations
specified in this document.
2) The LPG Treating Unit will comprise of following main sections:
• Pre-wash and Extraction and associated facilities
• Caustic Regeneration and associated facilities such as Mercaptan
Oxidizer, Disulphide Oil Separator, DSO Filter system, Vent tank etc.
3) All facilities for wash oil (Naphtha) (as required)
4) All facilities required for washing of sodium from DSO rich naphtha.
5) Facilities for heat integration for improving energy optimisation
6) Water break vessel and pumping facilities, if required.

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7) Facilities for catalyst loading and unloading.


8) Catalyst handling and storing facilities as per Section-2.11. Facilities required
for facilitating catalyst skimming, if any.
9) Facilities for preparation, dilution, storage and injection of chemicals and
similar items (e.g. caustic solution) required, if any, within the battery limit
10) Facilities for spent caustic handling, storage & disposal.
11) Tanks for fresh caustic and spent caustic
12) Definition of all the process effluents generated during normal operation as
well as during start-ups, shutdowns
13) Spent caustic degassing system and pumpout.
14) Neutralisation/passivation facilities if required.
15) Heat and power recovery for energy optimization
16) All equipments / instrumentation required for start up, normal operation,
handling emergencies, shutdown, demonstrating guarantee parameters. (If
any equipment / instrumentation are not designed by Licensor, however is
within Licensor’s battery limit scope of supply, broad specifications, notes,
instructions to be indicated by Licensor for installation of such equipment /
instrumentation by 'Others'.
17) Facilities for carrying out on-stream and shut down maintenance.
18) Special fire fighting and safety systems as necessary.
19) Necessary facilities required for environment protection and occupational
safety related to process of unit.
20) Any special facilities required for smooth and safe start up / operation /
Shutdown of the unit, considering sub-zero temperature and the wide
ambient temperature variation of the refinery site.
21) Facilities for safeguarding process system / catalyst.
22) Facilities for corrosion monitoring and control.
23) Facilities for receiving and pumping wash water to identified locations.
24) Condensate, collection, stabilization and return facilities.

2.2.2 The following facilities are specifically excluded from the scope of Licensor design.
a. Sour Water stripping facilities
b. Offsite Feed and product storage tanks.
c. ISBL Flare system including KOD
d. ISBL Closed Blow down (CBD) system and CBD pump

Any other exclusion will be identified as required for the unit in subsequent
sections.

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LPG TREATING UNIT
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2.2.3 Utilities including Power, Steam, Hot Oil, Cooling Water, Nitrogen, Service Water, DM
water, Plant Air and Instrument Air for the LPG Treating Unit shall be made available
at unit battery limit from the refinery’s power and utility systems / network at
specified conditions (referred elsewhere in this document). Fuel Oil, treated Fuel Gas
and Flushing Oil if required also shall be made available at battery limit at specified
conditions (referred elsewhere in this document).

2.3 DESIGN FEED AND UNIT CAPACITY

2.3.1 LPG Treating Unit Capacity shall be 32 KTPA.

2.3.2 The LPG Treating unit shall be designed for one Design Case based on sour LPG
feedstock from SGP.

2.3.3 The unit shall be designed for following design case:


Design Case
The LPG Treating Unit shall be designed for processing the LPG feedstock from SGP,
corresponding to Mongolian Crude 3 i.e. 50: 50 wt % mixture of Tosun- Uul XIX &
Tamsag XXI crudes. The average paraffin wax content of Mongolian Crude-3 is
16.87%.

2.3.4 Licensor shall submit yield estimates and product properties in the technical proposal.
Evaluation of the proposal shall be carried out on this Design Case.

2.3.5 Licensor to note that there will be one check case apart from the Design cases.
Licensor to provide the following information as a minimum for the check case in the
BDEP:

• Heat and Material Balance with detailed stream summary


• All product properties as per section 2.7 and Annexure IV C.
• PFDs indicating operating conditions
• Identification of limiting equipments to achieve 100% throughput while
meeting product specifications

Also refer section 3.4 of Annexure IVA for further details.

2.3.6 The LPG Treating Unit Feed composition shall be as per Table – 2.3.1
Table 2.3.1: LPG Treating Unit Feed Composition
Design Case
S. No Feed Stream Source
Rate (KTPA)
1 Untreated LPG 32 SGP
TOTAL 32

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2.4 FEED CHARACTERISTICS

2.4.1 The Specification of the feed stream to LPG Treating Unit is given below. LPG from the
SGP shall be fed directly to the LPG Treating unit.

Table 2.4.1: Feed Specifications for LPG Treating Unit for Design Case

Parameters UOM LPG From SGP

H2O Wt% Saturated


C1 Wt% 0.21
C2 Wt% 2.30
C3 Wt% 21.74
i-C4 Wt% 35.55
n-C4 Wt% 39.65
i-C5 Wt% 0.52
n-C5 Wt% 0.01
N2 ppmw 3
O2 ppmw 2
H2 ppmw 78
CO ppmw 3
Mercaptan (as S) ppmw 1000
COS (as S) ppmw 20
H2S ppmw 50
Molecular Weight Kg/kmol 52.95
Density kg/m3 496.5
True Vapour Pressure kg/cm2 (a) 11.2

Notes:
1. Licensor to estimate any other feed properties not indicated in the above
table and indicate the same in their offer.
2. Mercaptan distribution : C1SH - 80%-vol, C2SH - 20%-vol
C3SH and C4SH content – negligible
3. The above feed specifications and flow rates may undergo minor changes and
shall be firmed up during design basis meeting post award.

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LPG TREATING UNIT
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2.4.2 Wash Oil

Wash Oil (Naphtha) supply provision both from the NHT Unit and HCU shall be kept in
design. Properties of Wash Oil shall be as per table given below.

Table 2.4.2: Wash Oil (from NHT) Properties

Parameters UOM Value

ASTM D86 Distillation at 760 mm


Hg
1% °C 99.7
5% °C 100.9
10% °C 101.9
30% °C 105.2
50% °C 107.8
70% °C 116.8
90% °C 135.1
95% °C 143.2
98% °C 164.8

Sulphur ppmw 0.5 (max.)


Nitrogen ppmw 0.5 (max.)
Chlorides ppmw 0.5 (max.)
RVP kPa 9 (max.)
o 3
Density @ 15 C kg/m 732.4

Table 2.4.3: Wash Oil (from HCU) Properties

Parameters UOM Value

ASTM D86 Distillation at 760 mm


Hg
IBP °C 62.3
5% °C 62.3
10% °C 62.3

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30% °C 78.4
50% °C 92.3
70% °C 107.9
90% °C 125.3
95% °C 132.3
FBP °C 171.4

Sulphur ppmw 0.5 (max.)


Nitrogen ppmw 0.5 (max.)
Chlorides + Chlorine ppmw 5 (max.)
RVP kPa 70 (max.)
o 3
Density @ 15 C kg/m 718

Notes:
1. Licensor to estimate any other properties not indicated in the above table
and indicate the same in their offer.
2. The above properties may undergo minor changes and shall be firmed up
during design basis meeting post award.

2.4.3 Caustic Soda solution


A 20 wt% Caustic Soda solution shall be supplied at the unit battery limit, Dilution
facilities, if needed, shall be considered in design by the licensor.

2.4.4 Wash Water


Stripped sour water with 50 ppmw H2S and 50 ppmw NH3 (from Sour Water Stripping
Unit – outside Licensor’s scope for the entire refinery) shall be available as injection
wash water (if required by the Licensor). Apart from this, wash water requirement (if
any) can be met from condensate header. DM water / BFW / steam condensate shall
be used as back-up injection wash water. Licensor to indicate wash water used, the
flow rate and basis of selecting wash water such as % ammonium salts, % free liquid
etc in the proposal.
Suggested wash water quality is indicated in the following table:

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Table 2.4.4: Quality of Stripped Sour Water

ESSENTIAL SPECIFICATIONS
Parameter Value
H2S, ppmw (max.) 50
NH3, ppmw (max.) 50
Oxygen, ppbw (max.) 50
Iron, ppmw (max.) 1

Non volatile residue, ppmw (max.) 2


pH, (max.) 9.5
Chloride, ppmw (max.) 50
Total Hardness (ppmw as Ca hardness) 2
Total Suspended Solids (ppmw) 0.2
Phenols. ppmw (max.) 250
TDS, ppmw (max.) Later
Hydrocarbon, ppmw (max.) 200

2.5 ON-STREAM FACTOR:


The unit shall be designed for an on-stream factor (operating hours) of 8000 hours
per annum towards arriving at the hourly processing rate but the unit design and
engineering practices advised shall allow a minimum uninterrupted operating cycle of
3 years between turnarounds with units operating continuously at 100% capacity. i.e.,
to process 3 x 365 = 1095 days design feed stock. (Also refer to clause 2.12.1)

2.6 TURNDOWN CAPABILITY:


The unit shall be designed to operate in a stable manner, producing on-specification
products when operating between 100% to 50% of the design capacity. Licensor to
ensure in the design that the control system shall automatically adjust the operation
of the plant during load changes within this range, with no need for intervention by
operators. Unit turndown shall be achievable with cold feed also.
Additionally provisions for operating the plant (minimum operable hydraulic capacity)
at 50% or lower for some feed streams through adjustment of the recycle ratio, as
necessary, shall also be provided in the unit design. Licensor shall report in their offer
maximum achievable turndown for the design case.

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2.7 PRODUCT SPECIFICATIONS

2.7.1 The product properties at unit battery limit with corresponding yields shall be
reported.
2.7.2 The LPG Treating unit is to be designed to produce following products as per
specifications given below:

Table 2.7.1: Product Specification


Treated LPG
Parameters UOM Specification Test Method
Total Sulphur
ppmw 30 (max.) ISO 4260
(H2S-S + RSH-S + RSSR-S + COS-S)
H2S - Pass ISO 8819
RSH-S (as S) ppmw 5 (max.) UOP 212
RSSR-S (as S) ppmw 20 (max.) UOP 791
Copper Strip Corrosion Test
- No. 1 (max.) ISO 6251
Classification
ASTM D3605
Sodium (as Na+) ppmw 1 (max.)
UOP 699
Content of free water - NIL Visual
COS (as S) ppmw 5
2
Vapour pressure at 40°C, (max) kg/cm (a) REPORT ASTM D1267
Evaporated Temperature 95% °C REPORT ASTM D1837
Molecular Weight kg/kmol REPORT
Density@15°C kg/m3 REPORT
H2O Wt% REPORT
C1 Wt% REPORT
C2 Wt% REPORT
C3 Wt% REPORT
i-C4 Wt% REPORT
n-C4 Wt% REPORT
i-C5 Wt% REPORT
n-C5 Wt% REPORT

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DSO rich Naphtha


Parameter UOM Specification Test Method
ASTM D3605
Sodium (as Na+) ppmw 1 (max.)
UOP 699
ASTM D-86 Distillation: REPORT
°C
(IBP,5,10,30,50,70,90,95,FBP)
H2O ppmw REPORT
H2S ppmw REPORT
Ammonia Wt% REPORT
C1 Wt% REPORT
C2 Wt% REPORT
C3 Wt% REPORT
i-C4 Wt% REPORT
n-C4 Wt% REPORT
C5+ Wt% REPORT
Mercaptan ppmw REPORT
Total Sulphur ppmw REPORT
Molecular Weight kg/kmol REPORT
Density@15°C kg/m3 REPORT
2
Vapour pressure at 40°C, (max) kg/cm (a) REPORT

2.8 UNIT OPTIMISATION CRITERIA

2.8.1 PRICES FOR FEED, PRODUCTS AND UTILITIES

For the purpose of unit optimisation / energy optimisation, the prices for feed,
products and utilities shall be considered as per table given below:

Table 2.8.1: Prices for Feeds and Products


S. No. Feeds/ Products UOM Price
Feeds
1. Untreated LPG From SGP US$/MT 613.5
2. Wash Oil (Naphtha) US$/MT 486.0
3. Fresh Caustic (100 wt% US$/MT 1311.9
concentration)

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Products
1. Treated LPG US$/MT 615.0
2. DSO rich Naphtha US$/MT 0

Table 2.8.2: Prices for Utilities

S. No. Utility UOM Price


1 Power US$/kWh 0.17
2 HP Steam Import US$/MT 28.3
3 MP Steam Import US$/MT 26.8
4 LP Steam Import US$/MT 25.3
5 HP Steam Export US$/MT 17.0
6 MP Steam Export US$/MT 0
7 LP Steam Export US$/MT 0
8 Fuel Gas US$/MT 301.4
9 Fuel Oil US$/MT 272.7
10 Recirculating Cooling Water US$/m3 0.05
11 Boiler Feed Water US$/MT 3.44
12 DM Water US$/MT 2.2
13 Raw Water (Untreated) US$/m3 0.336

2.8.2 PLANT LIFE:

Plant equipment design life shall be considered as follows:


• 30 years for heavy wall reactors / separators / towers and including removable
and non-removable internals
• 20 years for columns, vessels, heat exchanger shells and similar services
• 20 years for all rotating equipment
• 100000 hours for furnace tubes
• 10 years for piping, high alloy exchanger tube bundles
• 10 years for carbon steel / LTCS / low alloy heat exchanger tube bundles

2.9 BATTERY LIMIT CONDITIONS FOR PROCESS STREAMS


Conditions for all incoming and outgoing streams at the battery limits shall be as per
the table given below. Licensor may add new streams (both incoming / outgoing) as
required by the offered technology.

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Table 2.9.1 - Battery Limit Conditions for Process Streams

S. No. Stream Pressure Temperature Source/Destination


o
kg/cm2 (g) C
Incoming Streams
1. Untreated LPG 18 35-45 SGP
2. Naphtha (Wash oil) (Note-3) 5 30-40 NHT / HCU
3. Fresh Caustic (20 wt %) 4 40 Offsite Facilities
Stripped Sour Water (if
4. 4 40-70 SWS
required)
Outgoing streams
1. Treated LPG 13.5 40-45 SGP
2. DSO rich Naphtha 6 45 DHDT
Off-plot Heater
3. Vent Gases 0.6 42
Firebox
4. Spent caustic 4 40 ETP
5. Sour Water (if applicable) 6 By Licensor SWS

Notes:
1. Mechanical design conditions of incoming streams shall be finalised at the time of
design.
2. Operating conditions specified above shall be finalised at the time of design with
selected licensor. Licensor to accept the above Battery Limit condition with
required revisions, if any during design basis meeting without any cost and
schedule implications to PMC / Owner. There may be variance from the Battery
Limit conditions specified by Licensor and Owner requirement.
3. Naphtha from NHT and HCU shall be provided as wash oil (The requirement is to
be confirmed by Licensor).

A block flow scheme for the unit is indicated below:

Untreated LPG from SGP Treated LPG to SGP

Wash Oil from NHT LPG DSO rich Naphtha to DHDT

Wash Oil from HCU Vent Gas to CDU


TREATING
Caustic from Offsite Spent Caustic to ETP
UNIT

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2.10 BATTERY LIMIT CONDITIONS FOR UTILITIES:

Conditions of utilities at battery limits of unit shall be as per following table. Utilities
generated within the unit as surplus and exported shall conform to the maximum of
these specifications at the battery limit.

Table 2.10.1: Conditions of Utilities at Unit Battery Limits

S. Parameter Minimum Normal Maximum Mech. Design


No.
1 HIGH PRESSURE (HP) STEAM
Pressure, Kg/cm2 g 41 42 43 52/FV
Temperature, °C 380 400 405 425
2 MEDIUM PRESSURE (MP) STEAM
Pressure, kg/cm2 g 12 14 15 18/FV
o
Temperature, C 210 260 305 350
3 LOW PRESSURE (LP) STEAM
Pressure, kg/cm2g 3 4 5 10/FV
o
Temperature, C 143 160 190 240
4 CONDENSATE RETURN (PURE & SUSPECT/SURFACE) AT PROCESS UNIT B/L
Pressure, kg/cm2g 5 14
Temperature, oC Note-7,8 100 150
5 SERVICE WATER
Pressure, kg/cm2g 3 5 6 10.55
o
Temperature, C 5 5-30 65
6 COOLING WATER
Supply Pressure, kg/cm2g 3.8 4 4.5 8
2
Return Pressure, kg/cm g 2.2 2.4 2.8 8
Supply Temperature, oC 29 65
Return Temperature, oC 45 65
7 DEMINERALISED WATER
Pressure, kg/cm2g 4 5 6 14
o
Temperature, C 5 40 65
8 BOILER FEED WATER (HP/MP)
Pressure (MP BFW), 25 28 35 40
kg/cm2g
Pressure(HP BFW), 47 50 58 76
kg/cm2g
Temperature (MP BFW), oC 100 100-105 110 150
9 PLANT AIR
Pressure, kg/cm2g 5 6 7 10
Temperature, oC 5 5-30 65
10 INSTRUMENT AIR
2
Pressure, kg/cm g 5 6 7 10

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S. Parameter Minimum Normal Maximum Mech. Design


No.
Temperature, oC 5 5-30 65
11 NITROGEN
Pressure, kg/cm2g 4 5 7 10.5
Temperature, oC 5-30 65
12 FUEL GAS (REFINERY)
Pressure, kg/cm2g 3 4 5 9
Temperature, oC 35 40 65
13 REFINERY FUEL OIL (CPP)
Supply Pressure, kg/cm2g 8 10 12 16.5
Return Pressure, kg/cm2g 3 16.5
Temperature, oC 120 160
14 HOT OIL
Supply Pressure, kg/cm2g 2.5 HOLD
Return Pressure, kg/cm2g HOLD HOLD
Supply Temperature, oC 260 HOLD
Return Temperature, oC 205 HOLD

Notes:
1. All B/L pressures are as measured at grade.
2. Utilities will be made available at the Battery Limits at the conditions specified
in the table above.
3. Steam generators shall be floating on steam headers, i.e., no pressure control
shall be provided on steam generators, unless warranted from process
reasons. Accordingly, Licensor shall consider the maximum Battery Limit
steam pressures as indicated in table above for estimation and guarantee of
the steam generation quantity. However, design of steam generation facilities
shall be capable of operating at the whole range of Battery Limit pressure
conditions also.
4. Licensor shall superheat the steam generated in the fired heater (in case
steam generation is envisaged) operating continuously to match the Battery
Limit maximum temperature conditions indicated in table above unless
warranted otherwise for process reasons.
5. In case any utility is required at higher / lower than the conditions indicated
above, Licensor to include the facility to meet the requirements within their
scope and include in proposal.
6. Pressure drop across any equipment / vendor package battery limit shall not
exceed 0.7 Kg/cm2.

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7. For Suspect condensate normal temp is 90oC.


8. For surface condensate normal temp is 45-55oC.

2.11 CATALYSTS, ADSORBENT, ABSORBENT & CHEMICALS

2.11.1 Unit shall include all facilities for receiving, loading, unloading of catalysts (along with
co-catalyst if any), adsorbent, absorbent keeping space within ISBL for all such
operations. Unit shall include all facilities for preparing, storing and injection of
required chemicals. Working storage volumes shall ensure smooth start-up, normal
operation and shutdown of unit.

2.11.2 The catalyst cycle life shall be guaranteed as 3 years minimum with uninterrupted
operation cycle. No regeneration of catalysts shall be considered. However, licensor
shall provide details of ex-situ regeneration agencies, if available.

2.11.3 Licensor to note that no changes in quantity of catalysts (along with co-catalyst if
any), adsorbents / absorbents shall be permitted at later stage for the feed indicated
in the design cases of this bid.

2.11.4 Licensor shall advise on details of treatment / neutralization before unloading of


spent catalyst and the disposal methods for spent catalysts.

2.11.5 Licensor shall provide adequate definition of chemical injection requirements (along
with additives, solvents if any) such as normal and max dosing rates, delivery
pressure, temperature, properties which have to be necessarily specified, etc. Only
feed and utilities will be made available at unit battery limit. Licensor shall provide
specifications of the associated facilities required for the routine and emergency
operation of the unit meeting all product specifications. List of vendors for specialty
chemicals if any, is also to be provided. Details of chemicals (along with additives,
solvents if any) including name, function, annual consumption, storage and handling
requirements, etc. shall be provided in the proposal.

2.11.6 Licensor shall clearly indicate the name of suppliers of special chemicals to be used in
the units in the BDEP. Licensor shall indicate the details of chemicals to be used in the
process with the definition of life, quality, type, quantity etc. Licensor to furnish
necessary specification in the BDEP adequately for procurement of the same.

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2.11.7 Chemical passivation requirements shall be identified and suggestions provided for
disposal of passivation effluent based on earlier experience.

2.12 SPECIFIC PROCESS DESIGN GUIDELINES

2.12.1 All the hardware including reactor / catalyst system shall be designed for a minimum
of 3 years (3 x 365 days) continuous operation cycle at 100% design capacity. Licensor
to include any additional facility to achieve 3 years (3 x 365 days) of uninterrupted
operation as part of the proposed scheme.

2.12.2 Regenerative caustic treatment to be considered. Additional facility to be provided


for COS removal, if required.

2.12.3 Licensor to note the following:


 Catalyst / Chemical quantity shall be offered for the controlling of the design feed
case(s) (including design margin as specified in this Bidding document, if any).
 Catalyst / Chemical quantity reported by Licensor shall include 5% quantity
towards Handling / Contingency losses.
 Catalyst Quantity quoted in SOP shall be rounded off to nearest barrel / drum
size.

2.12.4 Meteorological data for plant and equipment design: Data provided in the following
tables to be considered by Licensor:

Table A: Meteorological data

S. No. Parameter Unit Min. Nor. Max. Design


1 Barometric hPa 897.1 907.7 918.4
pressure (avg.)
(Note-1)
2 Ambient Deg C tnor (Summer) tDesign (Summer)
temperature : 39.5 : 39.5
tnor (Winter) : tDesign (Winter) :
(-)31.5 (-)31.5

3 Relative humidity at % @ tmin @ tnor @ tmax


ambient
temperature
4 Rainfall data for 1- mm
hour period

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4.1 Rainfall data for 24- mm


hours period
5 Wind data
5.1 Wind velocity @30 m/s
m ht.
5.2 Wind velocity @10 m/s 6.9
m ht.
5.3 Wind Direction NW to SE
Morning
5.4 Wind Direction NW to SE
Evening
6 Elevation above m
mean sea level
7 Snow Loading days 86 (avg.) 137
Days
7.1 Snow Load cm 13 (Note-2)

Table B: Data For Equipment Design

S. No. Parameter UOM Design Value


1 Dry bulb temp. (for air cooler design) Deg C -30 in winter
38.5 in summer
2 Wet Bulb Temp. Deg C 19 (HOLD)
3 Ambient Temp. for MDMT Deg C (-) 35.8
4 Air temp. for air cooled exchangers where Deg C HOLD
followed by water cooling
5 Air temp. for air cooled exchangers, where not Deg C HOLD
followed by water cooling
6 Coincident temperature for corresponding Deg C
relative
humidity for Air Blower / Air
Compressor

Corresponding Relative %
humidity for Air Blower / Air
Compressor
7 Earthquake criteria 6 point seismic zone
of MSK 64 scale
8 Winterizing temperature Deg C -31.5 ( (Note-2)

Notes:
1. The Met data has been considered based on data provided by client for the last 26 years.

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2. Licensor shall include the required facilities and measures to take care of normal
operation of the plant during severe winter conditions and sub zero ambient
temperatures.

2.12.5 Licensor shall indicate overdesign philosophy followed for broad equipment
specifications in the bid specifically for each type of equipment. Pumps and
compressors shall have medium size impeller with room for bigger and smaller
capacities. Owner’s design margin will be specified during design basis finalisation of
BDEP.

2.12.6 Licensor shall use following suggested fouling factors towards preliminary sizing of
heat exchangers in the plant, for the proposal:

Table 2.12.1 : Fouling factors (hr-m2-°C/kcal)

Stream Fouling factor Stream Fouling factor


LPG 0.0002 Steam 0.0001
DM Water 0.0001 Nitrogen 0.0001
Cooling water 0.0004 Air 0.0001
Tempered water 0.0002 Hot Oil 0.0004

2.12.7 During BDEP stage, Fouling factors for other process streams shall be decided by
Licensor based on past experience and good design practices. Further for plate type
heat exchangers fouling factor for the corresponding services to be specified by the
Licensor. However, Owner’s overriding considerations towards fouling factors for
specific units or process streams shall be the basis of specifications, if spelt out in
respective unit design basis at BDEP stage.

2.12.8 Licensor to design the unit (Process & Equipment) for maximum energy efficiency.
Process Heating / Recovery from process streams to be maximized. Licenser to
include all energy conservation provisions.

2.12.9 Licensor shall propose equipment configuration within the limit of following weight
and dimension constraints and without any requirement of site-welding:
Diameter / width (including all nozzle projections) : 4.5 m HOLD
Length (TL/TL) (overall head/skirt) : 25 m HOLD
Weight limitation for multimodal transport : 400 MT HOLD

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Equipment, with dimensions greater than those specified above, may be site
fabricated. Licensor shall identify all such equipments specifically in the proposal
while proposing an optimal design.
Unit is considered to be constructed in modular method. Licensor shall consider the
same while developing BDEP.

2.12.10 Process scheme shall include in-built facilities for safe guarding the process system /
catalysts in any type of emergency / failure. Details of online analysers required
during operation etc., shall also be furnished.

2.12.11 Licensor to recommend location and provide detailed specifications of the analysers,
detectors and recommended vendors.

2.12.12 Licensor to recommend the type of drive preferred for pumps based on the criticality
of the process streams and safety considerations; however motor drives are
preferred over turbine drives and steam drives shall be avoided to the extent
possible. If the same is inevitable Licensor shall provide justification for such
recommendation.

2.12.13 Licensor to consider facilities for storage of 20% fresh caustic and dilution of the same
to a suitable strength (to be decided by the Licensor) within battery limit. The fresh
caustic is expected to be received in batch mode.

2.12.14 The Material of Construction for exchangers handling cooling water shall be
considered as minimum LTCS (for cooling water side).

2.12.15 Licensor to indicate the Safety Integrity Level (SIL) for the design of the unit. Systems
shall be designed for appropriate SIL rating required as per accepted international
practices / standards and SIL shall be identified by Licensor. Minimum SIL
requirement for each safety instrumented system shall be identified by Licensor.

2.12.16 Plant hydraulics will be based on dense loading catalyst. However, the reactor volume
shall be based on sock loading.

2.12.17 Licensor to consider stacked columns as applicable. All columns shall be preferably
designed as trayed columns unless warranted from process reasons.

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2.12.18 A Single flare header is envisaged in unit Battery Limit.

2.12.19 Licensor shall specify critical and limiting feed qualities which have to be kept in mind
while running the unit on any other feed, other than design case feed, for e.g.; check
case feed.

2.12.20 Air cooling shall be maximised with minimum water cooling. The process side outlet
temperature for air cooled heat exchanger shall be considered as below:
• Air cooled exchanger not followed by water cooling : HOLD °C
• Air cooled exchanger followed by water cooling : HOLD °C

2.12.21 Licensor to provide complete information regarding facilities required for start up of
the plant including black start.

2.12.22 Utility requirements and consumption shall be optimised considering sub-zero


temperature and the wide ambient temperature variation of the refinery site.

2.12.23 The unit shall be targeted for a minimum specific energy consumption of feed which
should include net consumption of fuel, steam, hot oil and power after giving credit
to respective utility generations.

2.12.24 For the columns Licensor to consider conventional internals e.g. trays and packing.
Proprietary trays / packing to be avoided to get the larger number of competitive bids
and reduce costs.

2.12.25 Nitrogen shall be generated from a PSA system producing nitrogen as per quality
indicated in table below. Licensor to confirm acceptability of the purity indicated
below for Nitrogen. In case not acceptable, Licensor to indicate the minimum purity
required for nitrogen for process purposes.

S. No. Parameter Nitrogen


1. Dew Point at atmospheric pressure (-) 400C
2. Oil Content, ppm nil
3. Nitrogen purity, vol% 99.5
4. Oxygen content, vol % < 0.2
5. Carbon dioxide content, vol % < 0.1
6. Carbon monoxide content, vol % < 0.1
7. Hydrocarbon, vol % < 0.2

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2.13 SAFETY AND ENVIRONMENTAL ASPECTS:

2.13.1 The unit design shall incorporate state-of-art environmental control strategies. The
proposed LPG treating unit is being set up in an environmentally sensitive area and
hence it has to be ensured that the impact of this unit on the environment is
minimised.

2.13.2 The central effluent treatment facility at the refinery will be designed only for
reduction of oils, phenols, sulfides, BOD and adjustment of pH. Any additional
pollutants generated in the process other than this, may please be indicated.
Recommendation for effective and proven treatment method is to be submitted.

2.13.3 Licensor shall furnish brief write-up in the proposal highlighting environmental
control.

2.13.4 Licensor to provide information regarding quantity & quality of continuous &
intermittent gaseous, liquid and solid effluents generated during operation, start-up,
shutdown, etc. from the unit including the duration & rate of intermittent streams.
Recommendation for effective and proven treatment method is to be submitted
along with the offer. Licensor shall furnish complete details of the effluents (including
peak / average / minimum flow rates, frequency, duration of generation, detailed
characteristics etc.) which shall be routed from their battery limit to a centralised
effluent treatment plant.

2.13.5 Release of gaseous streams to the atmosphere is not permitted. In case of


operational upset, all pressure relief valves handling flammable components are
discharged into a closed system for safe disposal. For this purpose, a common closed
blow down (CBD) vessel with suitable facility for slop pumping will be located inside
the battery limit. Also, a common flare knock out drum (KOD) with suitable
condensate pumping provision will be considered within the unit battery limit. Design
of CBD and Flare KOD are outside Licensor scope of work.

2.13.6 All releases continuous and intermittent to even closed system (Flare or CBD) needs
to be minimised by suitable facility and implementation of SIL / mitigation strategy.

2.13.7 The low NOx burners and other latest technology for lowering noxious components in
flue gas shall be adopted.

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2.14 GENERAL:

2.14.1 List of Design Standards to be followed with respect to BDEP preparation would be
advised at the time of finalizing the basis of design. Wherever Licensor’s own
engineering standards are to be necessarily followed with respect to equipment
design, piping design, instrumentation design, etc., the same shall be issued to owner
at no extra cost during BDEP stage.

2.14.2 Suitable data, as relevant to Licensor’s scope of work, required for approval of the
plant from concerned Authorities to be provided by licensor during implementation.

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3.0 SCOPE OF LICENSOR’S SERVICES & SUPPLIES

The scope of services & supplies to be provided by the selected Licensor shall be as
follows:

3.1 GRANT OF TECHNOLOGY KNOWHOW / LICENSE:

Licensor shall provide the Owner with State-of-the-art technology for constructing,
operating and maintaining LPG Treater Unit. The technology should be commercially
proven and capable of producing, as a minimum, desired requirements indicated for
the unit.

3.2 SUPPLY OF BDEP:

Preparation and supply of Basic Design & Engineering Package (BDEP) that will have all
information and documents necessary for a reputed engineering contractor to
perform the residual basic engineering, detailed engineering, procurement and
construction of the LPG Treating Unit as defined above in Section-2. Such technical
information and process book shall be in English language using metric system of
measurements and shall contain, but not limited to, items defined in Annexure-IV A
(Scope of Basic Design & Engineering Package).
The plant will be installed at a location with wide temperature range as specified
elsewhere in this document. Hence, the hardware design (Piping, instruments,
equipments etc) shall be designed for this complete weather range taking care of all
special requirements like winterising etc.

3.2.1 Owner will appoint technically competent Consultant / Contractor for carrying out
Front-end Engineering/ Detailed Engineering based on the BDEP, which would be
developed by the Licensor. It is necessary that the Licensor shall allow the Owner to
share the related information contained in the Basic Engineering Package with such
Consultants for the needed purpose after signing required secrecy agreement.
Licensor will furnish to Owner and Owner’s Consultant a reasonable amount of general
consultation / clarification, while using the inputs provided by the Licensor in the BDEP
for carrying out detailed engineering of the unit. Owner’s Consultant and for PMC
inputs / suggestion shall be suitably taken care of by Licensor during BDEP preparation.
The inputs / suggestion will be mainly related to energy optimization, inter unit heat
integration, reliability etc.

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3.2.2 In case Licensor wants to essentially include detailed design / engineered datasheets /
specifications / drawings for any process equipment / facilities which is considered
essential by the Licensor for meeting process performance guarantees, the same shall
be included in Licensor’s firm scope of work as part of BDEP deliverables and the fee
for such detailed engineering activity shall be quoted as part of BDEP fees. This
requirement is over and above those deliverables for the proprietary items defined in
Clause 3.3 for which Licensor would anyway be giving requisite details / specifications
as part of his standard BDEP. However all related performance guarantees based on
licensor’s design for such equipment shall be provided by licensor.

3.2.3 Licensor shall review and approve detailed engineering documents, including
fabrication drawings / data of vendors of critical equipment to the extent Licensor
deems necessary for meeting process performance guarantees. Licensor shall furnish
list of documents / drawings requiring their approval / review for this purpose in their
offer. The charges, if any, on this account has to be included in fees for the BDEP.
Licensor to note that no extra payment shall be made for these services. Clarification
or queries raised by Owner/ Consultant during course of detailed engineering on BDEP
shall be provided by Licensor without any additional cost.

3.2.4 Licensor to confirm that P&IDs included as part of BDEP has undergone an internal
HAZOP and Licensor shall ensure that the design of the unit is safe for operation.

3.2.5 Licensor shall identify the special equipment, which are unique for the relevant unit
operation and provide complete design specifications for the same in BDEP.

3.2.6 Licensor shall provide complete specifications of critical items/ major equipment in
sufficient detail so that Review / procurement action can be initiated for the same at
the earliest. Licensor shall provide a list of such critical items in the proposal. Following
are critical items for which datasheets (as applicable) are to be released by Licensor on
priority
• Feed Charge Pump
• Reactors
• Compressors
• HP Exchangers
• HP separators
• Reactor effluent air cooler
• Feed filters

Licensor may include any other equipment based on their experience which they

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anticipate can take higher delivery time. Additional items in case required after
evaluation of Licensor’s offer will be informed during Kick Off Meeting (KOM).

3.2.7 Licensor may have a preference towards providing certain services on their own where
such services are deemed to be utilizing Licensor’s exclusive knowledge, Licensor’s
proprietary engineering software or practices, etc., and directly influencing plant
safety and reliability and to meet the guarantee requirements. The cost of such
exclusive services is to be included in the fees towards BDEP.

3.2.8 Licensor will agree to participate in the following meetings at Owner’s / Consultant’s
office as and when required by Owner / Consultant:

a. Commercial / Technical meeting on the offer.


b. Finalization of Agreement
c. Design Basis finalization meeting

All the expenses on account of attending aforesaid meetings are to be borne by the
Licensor.

In addition to the above, Licensor shall participate in the following meetings:

• Review meeting on PFDs at Licensor’s office. Layout finalisation shall be


conducted at this stage itself
• P&ID review meeting at Licensor’s office
• HAZOP and SIL studies during detail engineering stage at EPCC office
• 3D model Review at EPCC office

3.3 PROPRIETARY ITEMS:

3.3.1 Licensor shall specify clearly the proprietary equipment / items / catalysts, additives,
chemicals, if any, used in the process, and the cost thereof, separately. The proprietary
equipment / item / catalyst / additive / chemical are defined as the item for which
specification, engineering, manufacturing and supply is exclusively by the Licensor.
Licensor shall provide justification for the items to be proprietary in nature.
Proprietary equipment supply shall preferably be minimized.

3.3.2 Licensor should quote the price as requested in the schedule of prices for such
proprietary items.

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3.3.3 In case Licensor has specified single source / single recommended vendor for
procurement of any items the same shall be identified. However, same shall be
avoided to the extent possible. If the same is inevitable, Licensor shall provide
justification for such recommendation.

3.3.4 Licensor shall clearly specify the items, if any used in the process for which proprietary
design is by the Licensor. Licensor shall provide specification, engineering documents
and manufacturing specifications for such items along with recommended vendors, if
any as part of BDEP. The cost of such services is to be included in the fees towards
BDEP.

3.3.5 In case Licensor desires to use his proprietary Catalyst / Resin loading equipment then
Licensor has to include the cost of such services in the fees towards BDEP.

3.3.6 In case Licensor requires mandatory suppliers / vendors for specific items to meet the
performance guarantees and unit performance, the items with the suppliers name and
contact list to be included in the proposal itself

3.3.7 In case Licensor has a requirement for experienced preferred suppliers / vendors for
specific items, which Licensor believes will be required for ensuring the unit
performance, the items with the suppliers name and contact list to be included in the
proposal itself.

This list will be further deliberated with the selected Licensor at the time of KOM to
include Owner’s experience & requirement, in case any, and mutually agreed suppliers
/ vendors list will be followed at the time of project execution.

3.4 MANDATORY SERVICES:

3.4.1 Licensor shall carry out / participate for the following mandatory services to the extent
Licensor deems necessary for fulfilling the guarantees offered and other
responsibilities but not limited to the following.
a) HAZOP & SIL studies during detail engineering at EPCC office
b) 3D Model review at EPCC office (60%, 90%)
c) Assistance during pre-commissioning / commissioning activities at project site
d) Conducting performance guarantee test runs at project site
e) Assistance during catalyst loading at project site

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Licensor shall furnish in their offer a list of above mentioned mandatory services.

3.4.2 Licensor shall send expert and experienced professional personnel with complete
know how of the process and knowledge as well as expertise on the project
requirements for review meeting specified above.

3.4.3 Licensor shall carry out performance guarantee test run. The guarantee test run shall
be conducted within 6 months from the commissioning of the plant. Licensor to
submit the performance guarantee test run report. Format of the report will be agreed
with the selected licensor.

3.4.4 An estimated total of 500 mandays (inclusive of travel time) will be considered for
evaluation of the above mandatory services.

3.4.5 Licensor shall quote lumpsum fee for the above mandatory services considering 500
mandays as per the Schedule of Prices.

3.4.6 In case the actual number of mandays utilized for the above Mandatory Services for
the unit is more or lower than 500, the lumpsum amount quoted shall be prorated
based on the actual number of mandays to arrive at the amount payable and payment
shall be made accordingly.

3.4.7 Licensor shall not be permitted to alter mandatory service. However, they may add
any service which they feel in additional service list without deleting the given
services. Subsequently, the list of “Additional Services” may be agreed with the
selected Licensor.

3.4.8 Further, for Check case deliverables Refer Section 2.3 of main document.

3.5 ADDITIONAL SERVICES:

3.5.1 Licensor shall extend assistance through expert personnel with sufficient experience
and knowledge for the following activities (under the service categories indicated)
during detailed engineering / procurement / construction, if and as required by the
Owner / EPCC:
Engineering:
a) Development of APC Strategies

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b) Development of specifications for process simulators

Inspection:
a) Procurement/ Inspection/ Expediting of critical equipment
b) Supervision during construction
c) Inspection at vendor’s shop floor/ prequalification of vendors.
d) Any other activity/service related to the project implementation.

3.5.2 Licensor shall render assistance as required for Detailed Engineering to EPCC
Contractor / Consultant overseas, if any.

3.5.3 Licensor shall quote personnel rates for Licensor’s personnel for rendering the above
Additional Services at Owner’s / Consultant’s places / EPCC’s office as well as at
Licensor’s office as per the Schedule of Prices. An estimated 150 mandays including
travel time shall be considered for the Additional Services for evaluation for unit.

3.5.4 Single rates applicable for Licensor’s personnel for each of the following service
categories shall be quoted. (number of days at Licensor’s office + number of days in
Owner / EPCC’s office considered against each for evaluation are indicated for unit):
a) Engineering (50+50)
b) Inspection (20+30)

3.5.5 Licensor shall quote Man-day rate for services rendered at Licensor’s office, which
shall be inclusive of all expenses. Documentary evidence is to be furnished by the
Licensor for services carried out in the Licensor’s office.

3.6 TRAINING:

3.6.1 Licensor shall provide Training to Owner’s personnel on process design, operation,
maintenance, analytical procedures etc. as indicated below:

a) in the LICENSOR’S design office for 10 (Ten) technical persons for LPG Treating
Unit for a period of 10 working days.
b) in substantially similar operating plants for LPG Treating Unit for 10 (Ten)
technical persons separately for a period of 10 working days.

3.6.2 Licensor shall quote lumpsum prices for the above.

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3.7 DELIVERABLES & TIME SCHEDULE:

3.7.1 Licensor shall agree to carry out services and deliver complete BDEP and other
deliverables as per schedule given at Annexure-IV B. Licensor must comply to the
schedule indicated in the technical proposal.

3.7.2 Licensor shall indicate shortest possible time schedule, which should be assured, for
proprietary equipment / catalyst / solvent / chemicals and hardware items if any, in
their technical proposal. Licensor to note that the quoted delivery schedule from date
of order placement shall be valid till the completion of the project.

3.8 CATALYST / ADSORBENT / ABSORBENT / CHEMICAL / SOLVENT / ADDITITVE SCOPE


OF SUPPLY:

3.8.1 Licensor shall supply first charge of Catalyst (along with co catalyst if any) / adsorbents
/ absorbent / additives / Resin(s) or any other item (e.g. modules) offering catalyst
function (including ceramic balls) . Owner shall enter into supply agreement of those
items with Licensor only.

3.8.2 Licensor to quote all the first charge of Catalyst / Resin / adsorbent / absorbent or any
other item (e.g. modules) offering catalyst functions in their offer. Licensor should
indicate type of Catalyst / Resin / adsorbent /absorbent or any other item (e.g.
modules) offering catalyst function requirement (including margin on handling losses
in volume indicating loading density, cost per unit volume for each type of Catalyst /
Resin / adsorbent / absorbent or any other item (e.g. modules) offering catalyst
function. Owner reserves the right to order for extra quantity (up to 5% towards
contingency) as per the unit cost of those items quoted by Licensor. For items with
limited shelf life, procurement & supply shall be based on production planning of the
owner.

3.8.3 The Licensor undertakes that during the life of the Unit, if so desired by the Owner, the
Licensor shall either specify another mutually acceptable Catalyst / Resin / adsorbent /
absorbent or any other item (e.g. modules) offering catalyst function source or
alternatively make available Catalyst / Resin / adsorbent / absorbent or any other item
(e.g. modules) offering catalyst function which is of no greater cost and of no less
functional efficiency than the originally specified Catalyst / Resin / adsorbent /
absorbent.

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3.8.4 The Owner shall have the option, at its sole discretion, to change over to Licensor’s
latest commercially proven catalyst / adsorbent / absorbent (other than the catalyst /
adsorbent / absorbent offered at the time of signing the Agreement). Further, in the
event that the Owner desires to use catalyst / adsorbent /absorbent from a third
party, the Licensor (at the request of the Owner) shall furnish such information as is
reasonably required by the Supplier of the new catalyst / adsorbent / absorbent to
select a suitable catalyst / adsorbent / absorbent for the change over to the new
catalyst / adsorbent / absorbent, subject to a suitable non- disclosure agreement being
signed by the new catalyst / adsorbent / absorbent supplier.

3.8.5 Licensor shall supply catalyst, co-catalysts, modifier, adsorbent, absorbent, for a
period of one year for continuous operation of the unit.

3.8.6 Licensor shall supply Proprietary solvents, additives or chemical (if any) for a period of
six months for continuous operation of the unit.

3.8.7 Owner has the exclusive right to dispose of, recycle or salvage the spent catalyst /
adsorbent at the end of the ultimate life of the catalyst / adsorbent / absorbent in any
manner, Owner chooses without hazard to health or environment to which and the
Licensor shall furnish to the Owner upon request, instruction for suitable disposal of
the catalyst / adsorbent / absorbent.

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4.0 GUARANTEES & LIABILITIES

Licensor shall be required to fulfil the guarantees as detailed below and liabilities will
apply in case of failure to meet the guarantees. Licensor shall furnish the guarantees
conforming to the design specifications given in this document as per the format given
in Annexure-IV C, along with the technical proposal.

4.1 PROCESS PERFORMANCE GUARANTEES:

4.1.1 Licensor shall furnish following process performance guarantee including, but not
limited, for the following parameters with guaranteed values for design feed cases as
defined specifically for the unit in relevant sections of this Bidding document:

1) Capacity of unit in metric Tonnes per Hour of total feed based on design
stream hours
2) Turn-down ratio
3) Quality of Products (treated LPG, DSO rich Naphtha)
4) Catalyst / Adsorbent (first charge / continuous consumption) quantity
5) Catalyst ultimate life (without regeneration) of catalysts / adsorbents as
applicable
6) Consumption / Generation of utilities (Steam, Cooling water, Hot Oil & Power)
as percentage of estimated values

4.1.2 For establishing the above performance guarantees, test runs will be conducted with
feed stocks having substantially similar characteristics as those of design feed stocks. If
the unit is designed for more than one design feed cases, Owner shall have the option
of selecting the design feed case for the test run. Further Owner reserves right to
select the season for the test run (summer / winter).
4.1.3 Licensor to provide correlation/s for predicting unit performances with respect to feed
processing rate, product yield pattern, hydrogen consumption, product quality, utility
consumption, etc., in case the feed stock quality is different with respect to critical
parameters from the design feed stocks. In that case after consultation and mutual
agreement with Owner, a new guarantee equivalent to the guarantee mentioned
above shall be established.

4.2 TEST RUN AND PROOF OF GUARANTEES:

4.2.1 Prior to a test run, detailed methods to be used in the test run shall be agreed upon in
writing between Licensor and Owner. These methods shall be in accordance with

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normal practice, and will include methods for measuring various process streams by
calibrated measuring devices, methods for calibrating such measuring devices,
methods for sampling and analyzing process streams, as well as methods for
evaluating the results of the measurements and analysis. Furthermore, acceptable
tolerance for all results shall be specified.

4.2.2 The test run shall commence when the units are operating under stable conditions and
shall be conducted for a period of not less than 72 (seventy two) consecutive hours.
Further, Owner reserves the right to extend this time to establish the product
specifications for both seasons (summer/winter). Based on mutually agreed and jointly
collected measurements during the test run, Licensor and Owner shall evaluate the
results of the test run to confirm conformity with the performance guarantees.

4.2.3 The unit shall be deemed to have passed a successful test run, if during the test run,
the units have performed as guaranteed and the guarantees specified in section 4.1.1
have been successfully fulfilled.

4.2.4 If during a test run, the unit fails to perform as guaranteed for reasons attributable to
the Licensor, as soon as possible the Licensor shall investigate the reasons for such
failure and suggest modifications to the unit or its operation as the Licensor may deem
necessary for enabling the unit to perform as guaranteed. Licensor will perform
corrective engineering and shall incur the entire expenditure related to this corrective
engineering to achieve satisfactory results without any limit related to the corrective
engineering, supplies and licensor services. The Licensor shall reimburse to Owner the
resultant cost caused by this re-engineering leading to replacement of non-proprietary
hardware and re-engineering / re-design by EPCC / other required for implementation
shall be limited to Overall Aggregate Liability (OAL). The Owner shall, as promptly as is
reasonably feasible in the circumstances carry out any modifications of the unit, which
may be suggested by the Licensor. A test run shall be re-conducted for the unit.

4.2.5 If necessary, the foregoing procedure will be repeated at least three times within a
period 12 (twelve) months from the date of commencement of remedial actions, and
the Licensor shall at its own costs and expense in all respects continue to perform such
engineering, as is necessary to ensure that the units perform to meet the performance
guarantees given in section 4.1.1.

4.2.6 The Licensor shall pay and bear the cost of deputing its personnel for witnessing and
supervising modifications and repeat test run under Clauses 4.2.4 and 4.2.5 here of.

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4.3 LIABILITIES FOR PROCESS GUARANTEES:

4.3.1 Licensor shall be liable for rectification of defects in Licensor services to correct
owner’s plant due to faulty design information and services furnished and rendered by
the Licensor.

4.3.2 If any operational problems are encountered in the unit for reasons attributable to
Licensor including detailed engineering documents approved by the Licensor, the
Licensor shall provide the corrective engineering at his own expense.

If any of the aspects of performance fail to satisfy the Minimum Process Guarantees
(as defined in Table 4.3.1.) during the Performance Guarantee Test Run as per section
4.2 above, Licensor will perform corrective engineering and shall incur the entire
expenditure related to this corrective engineering to achieve satisfactory results
without any limit related to the corrective engineering, supplies and licensor services.
The resultant cost caused by this re-engineering leading to replacement of non-
proprietary hardware and re-engineering / re-design by EPCC / other required for
implementation shall be limited to Overall Aggregate Liability.

4.3.3 However in case even after taking all necessary measures, The Licensor is not able to
meet the Minimum Process Guarantees, Owner may accept the plant with application
of liability equal to Overall Aggregate Liability, received and or receivable by the
licensor.

4.3.4 If after meeting minimum process guarantees, any of the aspects of performance fail
to satisfy the Process Performance Guarantees (defined in table 4.3.1) during the
Performance Guarantee Test Run, Licensor will perform corrective engineering and
shall incur the entire expenditure related to this corrective engineering without any
limit as required to achieve satisfactory results.

4.3.5 However in case even after taking all necessary measures, The Licensor is not able to
ensure meeting the Process Performance Guarantees, Owner may accept the plant
with application of liabilities indicated under Table 4.3.1. The liabilities are on a sliding
scale over a range of performance. The Overall Aggregate Liability for not meeting
process performance guarantees shall be as defined elsewhere in the bidding
document.

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4.3.6 Licensor to note that the limit of overall aggregate liability detailed above is excluding
the liability on catalyst and proprietary items as detailed in Table 4.3.2

Table-4.3.1: Liability Schedule for Performance Guarantees (excluding catalyst &


proprietary items)
S. Process Guarantees Begin Liquidation Fully Liquidated Amount
No at at liquidated as
% of OAL (*) ,
applicable on
Pro-rata basis
Minimum Process Guarantees
1. Capacity of the unit, <100% guarantee <100% guarantee 100%
kTPA
2. Total Sulphur (H2S-S + >100% Guarantee >100% Guarantee 100%
RSH-S + RSSR-S + COS-
S) in treated LPG
3. Hydrogen Sulphide >100% Guarantee >100% Guarantee 100%
(H2S) in treated LPG
4. Mercaptan Sulphur >100% Guarantee >100% Guarantee 100%
(RSH-S) in treated LPG
5. Di-Sulphide Oil (RSSR-S) >100% Guarantee >100% Guarantee 100%
in treated LPG
6. Copper Strip Corrosion >100% Guarantee >100% Guarantee 100%
Test for treated LPG
Process Performance Guarantees
7. Sodium (as Na+) in >100% Guarantee >110% Guarantee 10%
treated LPG
8. Content of free water >100% Guarantee >110% Guarantee 10%
in treated LPG
9. Sodium (as Na+) in DSO >100% Guarantee >110% Guarantee 5%
rich wash oil (Naphtha)
10. Catalyst make up rate >100 % guarantee >110% guarantee 30%
MT/day
11. Wash Oil (Naphtha) >100 % guarantee >110 % guarantee 10%
requirement, kTPA
12. Turndown ratio >100 % guarantee 120% guarantee 10 %
13. Steam consumption >100% guarantee 110% guarantee 5%
14. Power consumption >100% guarantee 110% guarantee 5%
15. Cooling Water >100% guarantee 110% guarantee 5%
16. DM Water >100% guarantee 110% guarantee 5%

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Note-1: Above liabilities are independent of each other and additive to the extent of
Overall Aggregate Liability as defined elsewhere in the bidding document.
Note-2: Products yields meeting the design quality specifications / guaranteed quality
of respective products when considered together.
Note-3: Term “Catalyst” is applicable for Catalyst, co-catalyst, adsorbent, or any other
item (e.g. modules) offering catalytic function.

Table-4.3.2: Liability Schedule for Proprietary items

Guarantee parameter Liability


Proprietary items In case of any defect / failure upto 12 months of
commissioning of the unit or 24 months from the
last dispatch of the equipment, whichever is earlier,
Licensor shall replace the Proprietary items
(excluding removing and reinstallation) required at
site.

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5.0 TECHNICAL EVALUATION CRITERIA

Licensors offer shall be evaluated based on the following criteria for technical
acceptance and final selection:

5.1 TECHNO-ECONOMIC EVALUATION:

Techno Economic evaluation of technically and commercially acceptable offers will be


carried out for the final selection of Licensor as described below.

5.1.1 Net Present Value (NPV) of the offer will be calculated as net cash inflow for the plant
operating life at a discount rate of 10% per annum. The cash flows / NPV shall be
arrived based on the information furnished and prices quoted by the Licensor, after
due review by the Owner / Consultant.

5.1.2 Estimation of NPV will be carried out on the following basis:


i) The NPV shall be computed for the facilities limited to unit battery limit.
ii) Expenses towards Royalty, Basic Design & Engineering Package fee, fees
towards Training and other services quoted by Licensor as well as other related
costs as necessary e.g. Training fee, etc. if any, shall be considered for
estimation of capital cost.
iii) Cost of proprietary / hardware items if any, as quoted by Licensor shall be
considered for estimation of capital cost
iv) Owner will consider the equipment / plant cost, as estimated by Owner /
Consultant, as per the process configuration and relevant equipment data
furnished by Licensor in his offer, after due rationalization. Licensor shall agree
to furnish additional information, if required, to facilitate plant costing.
v) In case of discrepancy in the equipment details given in the equipment list and
other places in the Licensor’s offer such as process description, PFD, etc. The
details as per equipment details shall be considered.
vi) Feed to the unit, products from the unit and utilities will be priced as given
under Optimisation Criteria in this document.
vii) Guaranteed values of feed rate and product yields furnished by Licensor as per
performance guarantee for the design feed case shall be considered for
evaluation purposes. The material balance shall be established based on balance
by adjusting Vent Gas figures.

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viii) In case of mismatch between the guarantee values (Annexure IVC) and
estimated values in the proposal for the above parameters (v, vi, and vii), the
most conservative value for each individual parameter to be considered for NPV
calculation.
ix) Licensor’s guaranteed fuel and utility consumption figures shall be considered.
Costs of fuel & utilities, chemicals etc. shall be included in the operating costs.
The utility consumptions provided by Licensor shall be reviewed with respect to
machine efficiencies, motor efficiencies, heater efficiencies and rationalized
utility consumption figures shall be used for evaluation.
x) Cost of Catalyst for first charge and make up, if applicable, shall be included in
the operating cost as quoted by Licensor.
xi) Taxes, duties, freight and other indirect costs on plant / equipment and licensor
fee / services as applicable, shall be considered.
xii) Plant operating life for economic calculation shall be 20 years, with 5% salvage
value. Construction period shall be considered as 4 years with phasing of
investment as 7.5% for the first year, 17.5% for the second year, 35% for the
third year and 40% for fourth year.
xiii) Escalation rate quoted by Licensor shall be used for estimating the cost of
respective items based on expected date of award.
xiv) Licensor’s fee towards Mandatory Services and Additional Services shall be
considered for evaluation as explained in clauses 3.4 & 3.5.
xv) Operating revenue and operating cost for NPV calculation will be based on
design on stream hours per year as defined elsewhere
xvi) Design Case clearly specified as the evaluation case as defined in this document
shall be considered for evaluation.
xvii) To facilitate evaluation and comparison of prices, all bid prices shall be
converted in to US dollars.
xviii) Exchange rate shall be the rate prevalent on the date of opening of price bids.
xix) Analysis shall be done taking into account the applicable taxes and duties.
xx) For noble metals salvage value at the end of the plant life shall be considered
same as that incurred at the beginning without any appreciation.
xxi) 1% loss due to recovery of noble metals shall be considered for every catalyst
change over.

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xxii) Evaluation shall be carried out for Catalyst / Resin / Adsorbent or any other item
(e.g. modules) offering catalyst function based on 3 years or multiples of three
years as applicable.

5.1.3 Loading for commercial deviation shall be applied as described under ‘Instructions to
Bidder’.

5.1.4 100% weightage shall be given for NPV and the Licensor who obtains maximum NPV
for the unit shall be considered as the successful Licensor and recommended for
selection.

5.1.5 The information required from Licensor for estimation of NPV shall be furnished as per
table enclosed in Annexure-IV C along with the technical proposal. Bids without
completely filled up ANNEXURE IV C shall not be evaluated.

5.1.6 Bid with No Deviation towards scope / definition and schedule will be accepted.

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6.0 INFORMATION REQUIRED FROM LICENSOR FOR PROPOSAL

Information to be furnished, as a minimum, in the Technical Proposal are defined in


this section. Licensor shall submit their technical proposal containing comprehensive
information on the process technology offered, commercial experience, process
economics, any specific safety features w.r.t. to comparable plants etc. such that their
offer is evaluated comprehensively. Data / information shall be given item wise and
metric system of units shall be followed for all information. Please refer ‘Instructions
to Bidders’ for details on submission of Bid.

Licensor shall submit the offer as per Technical Specifications and subsequent
amendments. Deviations, if any, from these documents shall be specified clearly in the
offer.

6.1 TECHNICAL INFORMATION & GUARANTEES

6.1.1 Acceptance of Time Schedule as per Annexure-IV B shall be submitted along with the
proposal.

6.1.2 Licensor shall submit all the details and technical information including data with
respect to Process Guarantees as per format given in Annexure- IV C, duly signed and
complete in all respects, along with the offer. Licensor to note that all relevant key
operating data / information and estimated and guarantees values for relevant
parameters as applicable have to be furnished for design case for establishing plant
process performance guarantees by conducting a Performance Guarantee Test Run
(PGTR). Equipment design information shall be furnished based on governing design
case as applicable.

6.1.3 The technical data including guaranteed values for all parameters required to be
guaranteed wherever applicable (minimum/maximum values as indicated in the
respective tables) should be included in the proposal as these values are essentially
required for evaluation of the offer. Guaranteed values should conform to the
specifications given in this document. Proposal without these values may not be
evaluated. Reason for omission if any, should be brought out.

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6.2 PROCESS INFORMATION

6.2.1 Licensor is to provide the following information, as a minimum, in the proposal for the
design case:

a. Salient features of process and its description indicating the function of various
sections. Improvement and development in technology done in the recent past
while special reference to product quality and applicability, safety, energy
conservation and environmental considerations.

b. Process flow diagrams (including facilities for chemical injection) indicating


process scheme, all equipment, main process controls and important operating
conditions in various sections of the plant.

c. Overall material balance of each in-coming / out-going stream for all operating
conditions. Compositions break-ups for streams containing components like H2S,
NH3, H2, C1, C2, C3, iC4, nC4 etc. shall be provided.

d. Characteristics of mixed feedstock considered by the Licensors indicating all the


parameters. Where data is not available licensor to estimate the same and
indicate in the offer. Rationalisation on these parameters may be carried out and
duly informed to Licensor.

e. Product specifications as per Section-7 in Annexure IV C.

f. Key operating conditions at all equipment / sections.

g. Qualitative Description on the operating variables: Operating variables and their


effects, the effects of variation of feed composition and feed rates.

h. Benefits of any technical features incorporated in the proposed design

i. Turndown ratio for various sections of the plant and overall turndown ratios for
the total plant, along with reasons for the limitations

j. Effluent stream summary from the unit, comprising of all gaseous, liquid and solid
waste streams / material from the unit like by products, hydrocarbon waste,

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spent diluents / solvents, etc. along with stream-wise quantity, quality and
composition and suggested / recommended method of disposal.

k. If any effluent treatment facility is included inside the battery limit, details of such
facility to be described along with cost of such facilities.

l. Details of Sour Water generation – quantity as well as quality.

m. Design features for Environment Protection and Occupational and plant Safety.

n. Number & type of on-line analyser in proposal

o. Estimated maximum flare load and molecular weight corresponding to relieving


temperature

• Cumulative failure (For eg. General power / cooling water failure)


• Discreet Failure (For e.g Local reflux failure)
Licensor to indicate philosophy adopted for arriving at the mitigated load.

p. Licensor shall furnish catalyst prices as per format provided in this bidding
document.

q. Requirement of any utility during emergency such as general power failure or any
other exigency.

r. Equipment wise consumption of all the utilities to be given separately as


applicable to the process. Wherever start-up requirement for any utility is
significantly large compared to normal consumption, the same shall be specified.

Utility consumption towards winterising of plant and equipment to take care of


normal operation of the plant during severe winter conditions and sub zero
ambient temperatures shall be reported separately.

6.2.2 CATALYSTS AND CHEMICALS CONSUMPTION

6.2.2.1 Licensor is to provide the following information with respect to all the catalysts of the
unit:

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a) Type and size


b) Initial charge (volume and weight)
c) Subsequent fills (volume and weight), if applicable
d) Handling losses as percentage of initial charge
e) Bulk density and other specifications
f) Ultimate life (without regeneration), minimum as defined in catalyst
section of this document
g) Duration of unit shutdown towards catalyst change over
h) Recommended procedure for safe disposal of spent catalyst
i) Delivery period of catalyst
j) Reactor-wise catalyst distribution
k) Details of manufacturers / suppliers of catalysts / adsorbents
l) Recommended list of vendors for dense loading machine

6.2.2.2 Licensor shall provide a list of chemicals used in the process with their initial charge
and consumption rate during normal operation, start-up and shutdown for the units.
Use of proprietary chemicals, if any, is to be clearly indicated. The list of
recommended suppliers of proprietary chemicals, if any, shall be indicated by
Licensor.
6.2.2.3 Ex-situ regeneration of catalyst shall not be considered by Licensor for the unit.
However, Licensor shall include a description on ex-situ regeneration philosophy in
their offer and furnish the following.

• List of reputed vendors capable of carrying out entire ex-situ regeneration


(including unloading, transportation from refinery, regeneration and
rejuvenation at their place and transportation of the catalyst back to the
refinery) with names of contact persons and address etc.

• Modalities of carrying out Ex-situ regeneration which shall cover


- Requirement of any spare charge
- Time schedule.
- Any facilities for catalyst unloading, packing & storing.
- Ballpark costs towards regeneration.

6.2.3 EQUIPMENT DATA

Licensor is to provide an equipment list showing dimensions and other key design
parameters, including Materials of Construction (MOC), lining if applicable and

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corrosion allowances. Information concerning proprietary equipment shall be


included. The equipment list shall contain information in sufficient details so as to
enable Owner or his consultant to estimate equipment cost. Given below is the
typical format in which the equipment specifications are to be provided by the
Licensor. The data listed is the minimum information required, Licensor to provide
any additional significant design information having cost implication.

Reactor
Diameter
Height
Type of head
Design Pressure
Design Temperature
MOC of shell / internals
Corrosion Allowance
Cladding thickness (if applicable)
Estimated Weight (with internals & cladding)
Estimated Weight (without internals & with
cladding)
Weight of internals
Features/Type of Internals and typical sketch
Column (Tray/packed) (Note-1)
Diameter
Height ( considering actual number of trays)
Type of head
Design Pressure
Design Temperature
MOC of shell / internals
Corrosion Allowance
Cladding thickness (if applicable)
Estimated Weight (with internals & cladding)
Estimated Weight (without internals & with
cladding)
Weight of internals
For trayed columns:
No of actual trays
Type of trays
For packed columns:
Volume of packing
Type of packing
Packing material
Features/Type of Internals and typical sketch

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Drum/vessel
Diameter (including boot if applicable)
Height ( including boot length if applicable)
Type of head
Design Pressure
Design Temperature
MOC of shell / internals/boot
Corrosion Allowance
Cladding thickness (if applicable)
Estimated Weight (with internals & cladding)
Estimated Weight (without internals & with
cladding)
Weight of internals
Features/Type of Internals and typical sketch
Orientation (horizontal/vertical)
Fired Heater
Design Duty - Fired / Absorbed, Estimated
Normal Operating Duty - Fired/ Absorbed,
Estimated
Type of Furnace
MOC
Design Pressure
Design Temperature
Steam generating/ superheating coil details
Exchanger
Type (TEMA Type to be provided)
Design Duty
(Operating and Design Duty)
Heat Transfer Area
MOC (Shell/tube) incl corrosion allowance
No. of shells required
Design Pressure (Shell/tube)
Design Temperature (Shell/tube)
Air Cooler
Drive Shaft Power
Design Duty
(Operating and Design Duty)
Heat Transfer Area( Bare tube area)
MOC incl corrosion allowance
No. Required
Design Pressure
Design Temperature

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Pump
Type
Capacity
Head
Density of fluid
No. Required
MOC
Driver (Motor or turbine)
Shaft Power
Pump efficiency
Compressor
Type
Capacity
Molecular weight
Suction & Discharge Pressure
No. of stages
No of compressors
MOC
Driver
(Type: Motor or turbine ( Backpressure or
extraction cum condensing)
Shaft Power
Compressor efficiency
Miscellaneous Equipment
Min Specifications required for costing

Notes:
1. In case of columns with varying diameters, specify length and diameters of each
section.
2. Special requirements for e.g. PWHT, HIC, and NACE etc shall be specified for each
of the equipments.
3. All items of expensive metallurgy must be defined and any requirement of
cladding etc for equipment to be identified.
4. Licensor to specify details of all facilities required to take care of smooth and safe
start up / normal operation / shut down of the plant during severe winter conditions
and sub zero ambient temperatures and the wide ambient temperature variation of
the refinery site.

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6.2.4 PROPRIETARY ITEMS

Licensor shall furnish a list of proprietary equipment / catalyst / additive / chemicals if


any, and name of recommended single source / vendor (as applicable) with suitable
justification and other details. Licensor shall quote the price as requested in schedule
of price for such proprietary items. Shortest delivery period of such proprietary
equipment is also to be indicated.

6.2.5 Licensor is to give a list of special equipment which is to be designed, fabricated and
supplied by vendors nominated by the Licensor. A list of vendors is to be furnished for
each such item.
6.2.6 Licensor is to indicate whether an Advance Process Control Package needs to be
installed in the unit. If yes, additional investment along with a list of recommended
vendors is to be furnished.

6.2.7 EQUIPMENT LAYOUT

Estimated footprint plot area and preliminary equipment layout of the plant showing
optimum layout and indicating overall dimensions and locations of major equipment
including accesses, operating and maintenance requirements, Analyser sheds for
pollution monitoring etc. as applicable shall be submitted along with the proposal. The
plot area available for the LPG Treating Unit is 30 m x 50 m.

Licensor shall conceptualize the equipment layout so as to accommodate the facilities


in the specified plot size. Licensor shall also furnish the recommended practice to be
followed by Owner / Consultant for development of equipment layout. Licensor to
confirm in the offer that all inside battery limit facilities can be accommodated in this
specified plot size.

6.2.8 MANPOWER FOR OPERATION

Licensor is to provide an estimate of the manpower required for operation of the plant
assuming that the DCS Control Panel would be located in a Central Control Room.
Indicative maintenance manpower is also to be provided. Licensor to furnish indicative
operating, maintenance and laboratory manpower requirement for shift and general
shift operation separately. Any other manpower required shall also be indicated by
licensor.

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6.3 COMMERCIAL INFORMATION:

6.3.1 Prices for all supplies, services and proprietary items are to be quoted in the specified
format given as Schedule of Prices. The prices shall be quoted in the Priced Bid only.

6.3.2 Reference Units:


Information in respect of the reference units shall be submitted as per format given as
Annexure-IV D.

6.3.3 Information about Licensor:

Licensor is required to bring out the salient features of the technology being offered.
The following information/ documents in respect of Licensor’s process shall be
submitted in addition to filled up Annexure- IVD:
a) Reference list (complete list of grass root plants licensed by the Licensor)
containing details of operating LPG TREATING plant indicating owner, licensed
capacity/ feed rate, feed type/ quality, product quality, start-up date, scope of
Licensor services provided, equipment supplied by Licensor etc.
b) Complete list of plants currently under design, engineering or construction
including revamps. Based on technology being offered against this bidding
document as well as their details as per (a) above.
c) Certificate from the users on their experience on the units licensed by the
Licensor along with documentary proof for licensing of the reference unit.
d) Reference information about the best commercial plant in operation (at an
installation other than that owned by Licensor or its associate companies) for a
plant of like capacity, nature of feed, products and which has demonstrated
offered process performance.
e) Proposal for potential plants suitable for site visit by Owner / PMC.
f) Process / product catalogues (standard brochures) and relevant recent
publications.
g) Safety and environmental aspects in respect of the offered technology and
process scheme. Experience in the application of DCS and advance process
control systems.
h) Details of latest technology developments with reference to reduction in
investment, reduction in operating and maintenance costs, product quality

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improvements, new safety and environmental considerations, new product


developments, etc.

6.3.4 Information on the following shall be provided:


a) Details on the office which will support the project.
b) Resume of project manager and lead engineers who will prepare the BDEP for
this specific project.
c) Organisation chart of the Licensor’s team who will be providing the required
services.

6.3.5 Format of all agreements including general terms and conditions by Licensor if any,
which will need to be executed for the contract.

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ANNEXURE- IVA

SCOPE OF BASIC DESIGN & ENGINEERING PACKAGE

1.0 INTRODUCTION

1.1 The Basic Design & Engineering Package (BDEP) which will be prepared by the Licensor
shall contain adequate process and mechanical design data and information necessary to
enable a competent engineering/ construction contractor to undertake and proceed with
the detailed engineering, procurement, construction and commissioning of the unit. All
documents are to be prepared with sound design and engineering standards followed in
hydrocarbon industry. Licensor to note that the BDEP should comprise all the data
required to carry out the detailed engineering by detail engineering contractor.
Licensor shall agree to sign a design basis comprising of Part-A and Part-B which shall
form the basis of BDEP preparation. Part-A design basis constitutes of unit design basis
providing necessary data for the specific process unit.
Part-B design basis defines overall project requirements for making all units compatible
and ensuring uniform design practices for the total complex. The Basic Engineering
Design Basis (BEDB) Part-B shall be discussed during kick-off meeting and the general
requirements of the complex which are applicable to the unit shall be agreed and
complied by Licensor. The agreed document shall be signed by Licensor and this will form
part of design basis.
The special design requirements w.r.t equipment, instrumentation, piping, electrical,
mechanical etc. shall be clearly specified in all relevant document, data sheets.

1.2 The scope of deliverables shall be in strict conformance with the details given in this
section. It is known that some of the deliverables listed may not form part of the usual
basic engineering package for a given Licensor. However, for this specific project, Licensor
shall make necessary arrangements to be able to satisfy the complete scope of BDEP.

1.3 Further Licensor is required to provide all the thermal designs of Heat exchangers, air
coolers and furnaces, control valve sizes with expander reducers and PSV sizes with inlet
/ outlet line sizing as part of BDEP as described in following sections. Hydraulics shall be
performed as per the equipment layout agreed and finalized during PFD review stage.
These should be depicted in the P&ID’s attached as part of the BDEP.

1.4 All documents shall be in accordance with the Project specifications. Metric system of
units shall be used for all deliverables (except for pipe and nozzle sizes in inches) with the

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only exception being extended to Licensors own standards which are issuable with their
existing units of measurement. Wherever Licensor's own engineering standards are to be
necessarily followed with respect to equipment design, piping design, instrumentation
design, etc., the same shall be issued to Owner at no extra cost.

1.5 Final Basic Design & Engineering Package (BDEP) and operating manuals shall be
submitted in 8 copies each. The complete package will also be supplied in soft form.

1.6 Licensor shall also provide editable soft copies of PFDs, P&IDs and Full BDEP. All
Drawings/ documents shall be executed on software such as MS WORD, MS Excel,
AUTOCAD etc., as per requirement specified below

• Develop all PFD’s & P&IDs and engineering drawings using AUTOCAD (Latest Version)
• All drawings to be given in editable soft form.
• All drawings shall be made in layer concept and not in single layer basis. Layers to be
assigned shall be decided during kick-off meeting stage

1.7 Line list and Equipment/ Instrument Data Sheets shall be provided in MS Excel.

1.8 The contents of BDEP shall be, but not necessarily limited to, in accordance with the
details described in subsequent sections.

1.9 Document revision procedure and change request format to be established during KOM.

2.0 BASIS OF DESIGN

2.1 The Basis of Design will provide all the information agreed upon between Licensor and
Owner upon which the design and engineering will be based. It will contain the following
minimum information as applicable:
a) Plant definition including function and scope of the unit.
b) Plant capacity, turndown ratio and on stream hours per year.
c) Definition of cases (design / operating / alternate check cases)
d) Feed stock source and specifications highlighting limiting specifications and their
impact on unit design.
e) Products and their desired target specifications and destinations.
f) Estimated and guaranteed products and effluent qualities
g) Operating conditions of the major equipment
h) Specific design criteria and basis of selecting critical parameters.

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i) Battery limit conditions.


j) Utility source and specifications.
k) Environmental requirements.
l) Safety requirements.
m) Codes and standards followed.
n) Site location and infrastructure requirements.
o) Local meteorological conditions.
p) Units of measurement.
q) Drawing standards.
r) Special owner requirements, if any.
s) Schedule of deliverables including advance release of critical Equipment data
t) Co-ordination procedure

3.0 PROCESS DEFINITION

3.1 PROCESS DESCRIPTION

A detailed process description of the unit following the Process Flow Diagrams shall be
provided. This shall also include a description of the reaction chemistry, kinetics, range of
critical operating parameters and their impact on product quality and operability, energy
consumption, etc.

3.2 PROCESS FLOW DIAGRAM

The Process Flow Diagrams (PFDs) shall show the functionality of the unit, with all process
streams, process equipment, main utility streams and process control philosophy. PFDs
should be prepared for each of the cases for start of run and end of run conditions, if
applicable.

The following minimum information will be shown on the diagrams:


a) Process flow with all process streams (including start-up lines) and main utility
streams (where they influence process configuration). Intermediate streams such as
compressor interstage etc., also to be indicated in the PFD.
b) Main control loops and instrumentation necessary for understanding the process and
utility systems regulation philosophy. Where a PFD is inadequate in explaining the
complete control and interlock philosophy or as per Licensor standard philosophy,
Process Control Diagrams (PCD) shall be additionally generated and issued along with
PFD at review stage itself.

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c) Normal operating conditions of major process streams including temperature and


pressure profiles along with flow rates.
d) Equipment number and equipment name shall appear for all major equipment
including number of shells for exchangers and number of bundles for air coolers.
e) Number of passes and functional outlines of convection and radiation section, coil
arrangements consistent with furnace efficiency improvement strategies such as
steam generation, steam superheating, etc. for fired heaters.
f) Diagrammatic outlines of columns, vessels and reactors indicating operating pressure
and temperature at key locations like top, bottom, flash zone and including details of
trays, packed sections and other internals, relative location of feed / product and
other nozzles, etc.
g) Functional depiction of heat exchangers indicating operating duties and types of
exchangers such as air cooler, shell & tube, plate or spiral, double pipe etc. Allocation
of shell and tube side streams.
h) Functional depiction of pumps and compressors indicating normal flows and types of
pumps and compressors such as centrifugal, reciprocating, etc. Driver details in case
of turbine driven (Extraction/ condensing)
i) All process and utility streams shall be numbered. The numbering shall correspond to
Heat and Material balances. When there is a change in temperature, pressure or flow
rate of the stream, a new stream number shall be assigned. The enthalpy and
material balance information issued with PFD’s shall have complete thermo-physical
and transport property data for all numbered process streams.
j) All incoming and outgoing streams shall be flagged showing battery limit pressures
and temperatures and indicating their source / destination.
k) Broad specifications of equipment required are as follows, Some other relevant
equipment based on unit technology, need to be mentioned:
 Reactors:
 Item number
 Service
 Diameter & Height
 Columns:
 Item number
 Service
 Diameter & Height
 Vessels:

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 Item number
 Service
 Diameter & Height/ Length
 Heat exchangers:
 Item number
 Service
 Normal duty
 Furnace:
 Item number
 Service
 Normal duty
 Pump:
 Item number
 Service
 Capacity
 Differential head
 Power
 Compressor:
 Item number
 Service
 Capacity
 Differential head
 Power

3.3 OVERALL UNIT BALANCE AND PRODUCT PROPERTIES

An overall unit material balance shall be provided for each of the design and check cases
for start of run and end of run conditions. This overall balance shall include all feed
streams to the unit and all product streams from the unit. Section-wise material balance
and stream-wise material balance report with component break-down shall be provided
as required. It shall also include a list of all relevant product properties.

3.4 HEAT AND MATERIAL BALANCE

Heat and Material Balances shall be provided for all design and check cases for each
revision of PFD and will include as a minimum the following information:
a) Stream number (corresponding to PFD).
b) Stream name and phase of fluid.

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c) Total mass & volume flow.


d) Total component wise mass flows and Total stream enthalpy.
e) Normal operating temperature.
f) Normal operating pressure.
g) Density of fluid at operating conditions.
h) Specific gravity of liquid components.
i) Molecular weight of vapour components.
j) Kinematic Viscosity at operating conditions. (vapour and liquid separately for two
phase systems)
k) Thermal conductivity at operating conditions. (vapour and liquid separately for two
phase systems)
l) Specific heat at operating conditions. (vapour and liquid separately for two phase
systems)
m) Cp/Cv, Compressibility Factor (of vapour systems)
n) Surface Tension
o) Critical temperature and critical pressure.
p) Stream composition in both weight and mole basis ((vapour and liquid separately for
two phase systems)
q) Stream enthalpy. (vapour and liquid separately for two phase systems)
r) Component breakdown for pure /pseudo components in mole and weight
s) Percentage of free water
t) True Vapour Pressure
u) H2/H2S content and other trace components of relevant streams that may affect the
selection of MOC. (vapour and liquid separately for two phase systems)

For mixed phase streams, the vapour and liquid phases along with above listed properties
will be shown separately. For the total stream: average enthalpy, viscosity, mixed density
and mol. wt. shall also be given. Weight % of vapour & free water shall be indicated.
PFD to include overall Material Balance for design / check / operating case for both SOR /
EOR conditions, if applicable.
Further, for Check case deliverables Refer Section 2.3 of main document.

3.5 PROCESS CONTROL PHILOSOPHY & DIAGRAMS

The control philosophy shall cover complete depiction / explanation of critical and
complex controls of the individual sections of the unit indicating all instrumentation for
the unit operations inclusive of start-up, shutdown, emergencies, etc. The description of
the control philosophies shall be aided by Process Flow Diagrams / Process Control

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Diagrams (PCD). Advanced process control strategies, if employed, shall be specifically


elaborated.

4.0 MECHANICAL DESIGN

4.1 MATERIAL OF CONSTRUCTION

Material Selection Diagrams (MSDs) shall be prepared (coloured) showing the design
temperature and pressure and selected materials of construction of all equipment
(including internals) and piping, including utility side, with corrosion allowance and
cladding requirements in sufficient details. Maximum operating temperature scenario
shall also be mentioned in the MSD. All equipment data sheets shall clearly tell about
special requirements if any like Wet H2S service, NACE, PWHT, H2 service etc. and other
impurities for determining the MOC’s. The information on hydrogen content and
Hydrogen partial pressure must be included and requirement of hydrogen services. All
information for material selection must be included in MSD, P&ID’s (in PMS selection) and
spec breaks. Equipment datasheets must have complete specification of MOC’s as per
MSD. MSD’s are required for any addition in sight.

5.0 UTILITIES, CHEMICALS AND CATALYSTS

5.1 UTILITIES

Utility summary shall be provided to cover estimated normal and maximum (peak) utility
consumption and / or production of the following utilities at process design / operating
conditions:
a) Service Water (Raw Water).
b) Boiler Feed Water.
c) Demineralised (DM) Water.
d) Cooling Water.
e) Steam at each level (HP/MP/LP).
f) Condensate (at different levels). Of different types (pure, suspect, surface etc.)
g) Blow down streams to atmosphere, flare etc.
h) Power*.
i) Nitrogen (Inert Gas).
j) Instrument Air and Plant Air.
k) Fired Fuel Gas / Fuel Oil (Considering 100% single or combined firing in any ratio of
gas to oil)

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l) Caustic solution
* Refer to Section-10.1 for electrical power consumption.

The estimates are to be provided as minimum, normal and maximum (peak). Apart from
continuous utility requirements, complete data must be given on intermittent utility
requirements during start-up, shut down, catalyst regeneration (if applicable) and
emergencies. Some items of the utility summary require vendor design information such
as steam for turbines or power for pumps. In such cases, Licensor shall use good
engineering judgment or in-house data in arriving at the summaries.
List of priority consumers requiring emergency supply of utilities (Power, Steam, and
Cooling Water) must be provided if warranted from process point of view or any other
aspect (e.g. Flare mitigation etc.)
Utility consumption towards winterising of plant and equipment shall be reported
separately.
In case due to requirements of the specific process technology or in order to safeguard the
facilities by bringing them to a safe shutdown condition, or for any other reason, some
utilities (Like electric power, cooling water, steam etc.) are required to be made available
to the unit during a general power failure, the same shall be clearly indicated by the
licensor in BDEP. The information provided shall cover the following as a minimum.
a) Names of utilities required during a power failure (like HP steam, LT power, cooling
water etc.) Instrument air will be available for 30 minutes after a power failure to
facilitate safe shut down of the unit.
b) Whether these utilities are required on an uninterruptible basis or they can be
restarted after some time upon demand.
c) Duration for which these emergency utilities are required. In case instrument air is
required for more than 30 minutes, same shall be indicated.
d) Emergency operations to be performed and equipments to be operated using these
emergency utilities.
Summary of all utilities shall be submitted for all possible operating scenarios including
start-up, shut down, tripping of steam user, power failure etc.

5.2 CATALYSTS AND CHEMICALS

Catalyst trade name and manufacturer, function, characteristics including bulk density,
catalyst quantity ( including contingencies), metal content, gravimetric and volumetric
analysis of loaded catalyst expected cycle length and ultimate life, list of vendors, etc., as
well as initial load and annual consumption shall be given. This is also applicable for
additives, adsorbents, inert balls and grading materials.

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Licensor shall provide adequate definition of chemical injection requirements such as


normal and maximum dosing rates, delivery pressure and temperature, properties which
have to be necessarily specified, etc., with which a detailed engineering contractor can
develop the full system design without reverting to licensor.

Chemical / additives name, characteristics, function, initial load, annual consumption,


handling precautions, injection rate, concentration, etc., shall be given. For specialty
chemicals / additives, list of vendors needs to be included. Chemical / additives
requirement during normal operation, startup, shutdown and regeneration shall be
summarised.

Storage & handling requirements, adequate definition of chemical injection requirement


such as normal and maximum rates, delivery pressure and temperature, dosing pattern /
frequency, properties which have to be necessarily specified, etc., with which a Detailed
Engineering contractor can develop the full system design without reverting to Licensor.

Chemical neutralization / passivation requirements to be identified and suggestions for


disposal of passivation effluent to be provided based on earlier experience.
MSDS for catalysts, additives, adsorbents, speciality chemicals shall be provided.

Licensor shall provide the detailed specifications and specific consumption data of
catalyst, co-catalysts, chemicals and additives as required by different grades (per ton of
product) and estimated requirement for the continuous operation of the plant for 6
months based on the cycle of operation specified. For all items including adsorbent beds
in purification unit, Licensor shall recommend vendors for supply of the same. Quantity of
different types of fixed bed catalysts shall be indicated in kg indicating loading density
where applicable.

6.0 PROCESS EQUIPMENT DATA

6.1 PROCESS EQUIPMENT LIST

A Process Equipment List shall be provided showing the following information:


• Equipment name/ tag number.
• Equipment type and service.
• Special remarks. This will include information like critical or proprietary items
including vendor lists, specific testing and acceptability criteria, if any.

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 Whether the equipment is a critical Item.


 Single vendor item should be listed and reason of single vendor to be specified.

6.2 EQUIPMENT SPECIFICATIONS

Specifications for equipment shall be provide with the following but not limited to the
points given below:
• Each equipment, major as well as minor, proprietary or otherwise, shall be
specified on individual Equipment Process Data Sheets.
• Each datasheet shall carry a separate document number and include equipment
name, service and identify the case to which the data corresponds.
• Data sheets shall include information on process fluids including physical
properties, operating conditions and mechanical design conditions.
• Sketches showing shape, dimensional details of internals and other design
information shall be provided for static equipment. Information in the data sheets
shall be sufficient to carryout detailed mechanical design.
• Arrangements for steaming / Vacuum Design / Nitrogen blanketing of vents,
drains, etc., for making the equipment (including heat exchangers) free of
hydrocarbons shall be shown in the P&IDs and data sheets.
• Data sheet to be provided for controlling case, Additional cases will be shown for
proper design of equipment wherever relevant. Also defined design cases must be
included in data sheet.
• In case intermittent or alternate operating cases (i.e.; in situ catalyst regeneration,
emergency depressurization, etc) dictate selection of equipment or some
component thereof, then the impact of the same shall be reflected appropriately
in the equipment datasheet.
• Equipment list and specifications will be reviewed by owner and owner’s
consultant to identify equipments for which performing fatigue analysis will be
necessary. This list will be shared with licensor and licensor will provide all data
necessary for performing fatigue analysis of the equipments.
• All equipments of design basis part B as applicable to the design of equipments
shall be incorporated in their specifications by licensor.
• In case steam tracing is required for some equipment, details of steam coil, i.e.;
size, pitch, number of turns and number of coils will be included in the datasheet.
• For all equipment to be designed as per Mongolian Boiler Code requirements / any
other boiler code requirements, a note shall be included by the licensor stating
“Mongolian Boiler Code / any other boiler code applies”. Applicability of

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Mongolian Boiler Code requirements / any other boiler code requirements to be


followed shall be decided during KOM and details of the same shall be provided to
licensor during KOM.

The information to be provided for specific types of equipment is given below:

6.2.1 HEAT EXCHANGERS/AIR COOLERS

a) For all Heat exchangers and Air coolers, thermal design is included in Licensor’s scope.
The guarantees of the designs also rest with Licensor. HTRI native files (Input/ Output)
for the thermal design and TEMA datasheets with tube layout (including utility side
data) should be provided as part of BDEP.
b) Process conditions including fluid flow rates with breakup of vapour/ liquid/ steam/
water/ non-condensables, density, viscosity, thermal conductivity, surface tension (for
two-phase conditions), critical temperature and pressure (for re-boiled streams), Mol
Wt ( if vapour), specific heat, over capacity on flow and duty etc.
c) Operating temperature and pressure for inlet and outlet streams.
d) Heat transfer duty and any limitations with respect to fluid velocity, heat flux, etc to be
included
e) Vapourisation & condensation data including critical pressure/ temperatures shall be
provided as required for exchangers encountering two phase flow..
f) Mechanical design conditions. Licensor shall follow good engineering practice in
evaluating system hydraulics and accordingly fix mechanical design conditions. It shall
be reasonably ensured that such design conditions will not require to be revised
upwards during Detailed Engineering.
g) Fouling factors
h) Materials of construction and corrosion allowance (for shell and tube sides).
i) Type of exchanger/ number of shells.
j) Insulation requirement and insulation thickness shall be indicated.
k) Allowable and calculated pressure drop as per thermal design.
l) Allowable pressure drops as used for thermal designs should be used in unit hydraulics
executed by Licensor. When a group of exchangers, say multiple shells in series,
together are designed within a pressure drop limit, the same shall be indicated. Any

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preference/ limitation in stacking of heat exchangers also to be indicated, where


applicable.
m) For proprietary heat exchangers, for which detail/mechanical design are included in
Licensor’s scope as per agreed scope of engineering services, the details shall be
complete to the extent relevant and necessary for procurement as per industry
practice.
n) Number of fans and sections for air coolers based on thermal design, standard
mechanical specifications and design temperature & pressure requirements.
o) Type of control required in air cooler
p) Schematic arrangement of shell/ bays and special piping requirements for inlet and
outlet manifolds, if any (for e.g. distance, symmetrical arrangement etc.)
q) For congealing services, i.e.; services handling fluids having their pour point below
minimum ambient temperature, LP steam coils for preheating the air to a temperature
at least equal to the fluid pour point before it enters the air cooler shall be provided.
Hot air recirculation will not be specified for the air cooled exchangers.

6.2.2 PUMPS

a) Process conditions such as minimum, normal and maximum flow rates/ normal &
upset suction & discharge conditions/operating temperature & pressure, rated
discharge pressure and NPSH available.
b) Fluid density, viscosity, pour point, vapour pressure, and annotations towards
presence of toxic, corrosive or erosive materials.
c) Mechanical design conditions. Licensor shall follow good engineering practice and
typical vendor information in specifying these. It shall be reasonably ensued that
such design conditions are not required to be revised upwards during detail
engineering
d) Materials of construction, corrosion allowance of casing & internals and insulation /
tracing requirements.
e) Number of operating & spare pumps.
f) Type of pumps
g) Recommended type of pump drive for main and spare pumps and estimated brake
KW, assumed efficiency, Estimated utility of driver

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h) Requirement of VFD, Auto start, reacceleration, Emergency power supply


i) Capacity control and ranges where relevant.
j) Differential head.
k) Recommended API seal Plan
l) Any other specific construction data (e.g. cooling requirements, external flushing
requirements, etc.).

6.2.3 VESSELS / COLUMNS / REACTORS / DRUMS

This section covers specifications for reactors, columns, drums (for process use within
ISBL). It will contain the process design of the vessels including internals (distributor,
outlet collector, unloading nozzle, etc.)

a) Vessel name and tag number, Quantity, Diameter and height or length
b) Sketches of Vessel / Column / Reactor / Drum layouts showing dimensions, tentative
elevations, location of nozzles and man ways, internals such as trays, demisters,
packed sections, catalyst sections, collector trays, Tray spacing, number of trays, Key
tray numbers and locations, gravity or spray distributors, support grids, type of head,
etc. Vessel diameter shall be expressed as ID for vessel shells and OD for vessel boots.
c) Process design conditions (including Density of liquid at operating conditions.
d) Mechanical design condition (internal and external if any) including
recommendations, if any, on jacketing, stress relieving, insulation, surface finishing,
etc. Licensor shall follow good engineering practice in evaluating system hydraulics
and pressure relieving conditions (including considerations such as impact of vapour
blow backs for high pressure vessel to low pressure vessel letdowns) and accordingly
fix the mechanical design conditions. It shall be reasonably ensured that such design
conditions will not require to be revised upwards in the course of detailed
engineering.
e) Materials of construction and corrosion allowance of shell & internals, Insulation
requirements. Cladding requirements, Recommendations for post weld heat
treatment, if required for corrosion reason.
f) Number, type and spacing of trays for towers.
g) Number, type & height of packed beds.
h) Elevation, size and service of nozzles.
i) Process data sheets for trays / packed bed sections.
j) Details of other internals like demisters, distributors, linings, etc.

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k) High, low and normal liquid levels in vessels and tower bottoms / collector trays
(including interface levels).
l) Vapour-liquid traffic data for trays and packed internals, indicating fluid flowrates,
operating conditions, fluid density, fluid viscosity, liquid surface tension, allowable
pressure drop, vapour molecular weight, etc.
m) For reactors: Mechanical design conditions and arrangement for reactor internals
(temperature, pressure drops, loads) catalyst beds arrangement and arrangement
drawings for thermocouples and wells in reactors, Catalyst regeneration conditions if
applicable.
For columns: Other specific inputs:
• Additional sketches, as required to show locations, sizes or orientation for
particular column components especially for top tray, bottom tray and
transition zones (sketches of distributors and redistributors):
• Type of flow: single, double, 4-way cross flow
• Typical arrangement of down-comer for top and bottom
• Typical arrangement of inlet/outlet weirs and notching, if required
• Special tray features such as seal pans, draw-off pots when required

For packed columns, sketches of support trays, distributors, redistributors are out of
LICENSOR scope and shall be supplied by packing supplier.

Separate tray design data sheets for each column section, which detail the following:
• Type of tray (definition of valves, sieve, bubble-cap, or baffle tray)
• Reference column number
• Tray number as labeled on column process sketch
• Inside diameter
• Normal tray spacing
• Material of construction type
• Operating temperature and pressure
• Number of passes
• Turn down and over-design requirements
• At normal loading, the vapour and liquid loadings, vapour and liquid density,
liquid viscosity, surface tension
• Allowable pressure drop
• Design maximum flooding factor
• Foaming factor
• Tray support details (if qualified sellers is mandatory for trays)

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Separate packing design data sheets for each column section, which detail the following:
• Type packing
• Reference column number
• Bed number and estimated height
• Inside diameter
• Material of construction of packing
• Operating temperature and pressure
• Turn down and over-design requirements
• At normal loading, the data for vapour and liquid loadings, vapour and liquid
density, liquid viscosity, surface tension
• Allowable pressure drop
• Design maximum flooding factor
• Foaming factor

6.2.4 HEATERS

a) For all Furnaces, thermal designs shall be part of the Licensor deliverables including
depiction of passes, line numbers, instrumentation etc. against each of the passes.
The guarantees of the designs including performance and efficiency guarantees also
rest with Licensor. API datasheet shall be provided by Licensor
b) Fluid flow rates with breakup of vapour/ liquid/ steam/ water/ non-condensable,
density, viscosity, thermal conductivity, surface tension and vapourisation curve
correlating pressure, temperature, enthalpy and percent vapourised, Mol Wt ( if
vapour), specific heat, over capacity on flow and duty, turndown achievable.
c) Operating temperature and pressure.
d) Mechanical design conditions. Licensor shall follow good engineering practice in
evaluating system hydraulics and accordingly fix the mechanical design conditions
taking consideration of winterization conditions. It shall be reasonably ensured that
such design conditions will not require to be revised upwards in the course of
detailed engineering
e) Allowable and calculated pressure drop as per thermal design
f) Allowable pressure drops as used for thermal design should be considered in unit
hydraulics executed by Licensor.
g) Materials of construction and corrosion allowance shall be specified by licensor in
accordance with the winterization conditions.

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h) Fouling factor or expected coke thickness.


i) Type of heater, e.g., cabin type or vertical cylindrical, natural draft or forced draft,
double fired or single fired, etc.
j) Heat transfer duty/ absorbed heat for each section. Whether limitations such as fluid
velocities, maximum skin temperatures, heat flux, etc. apply.
k) Fuel data for fired heaters.
l) Design requirements (e.g. number & size of passes, coil configuration, heat flux
and/or velocity limitations, efficiency, excess air, NOx emission, maximum skin
temperature, etc.)
m) Burners will be designed with Fuel gas and/or Fuel Oil for single & combined firing.
n) Thermal efficiency of heater and strategies for improving efficiency towards a target
of 90%. These shall be evaluated in the course of BDEP preparation and review,
discussed with Owner, and included as directional instructions for detailed
engineering contractor.
o) For heaters included in Licensor scope for thermal / mechanical design, as per agreed
scope of engineering services, the details shall be complete to the extent relevant and
necessary as per industry practice and would include detailed evaluation of heater
efficiency measures.
• Licensor shall furnish completely filled API datasheet as per format provided
in “Fired Heater Datasheet” in Annexure-A of API-560 (edition 2016).
• Conceptual Heater / APH system P&ID’s along with Logic shutdown and
heater schematic sketch
• In case Licensor requires special burners, Details of burner(s) along with
details of ignition equipment and flame scan ing devices shall be provided.
Insulation details, including notes on recommend method of application and
precautions, if any.
p) Licensor to note that heat loss across the refractory, minimum thickness / type shall
also consider the winterization conditions. Specific notes to be provided in the heater
datasheet.
q) For CO boilers and waste heat boilers, if applicable, specification including duty will
be provided, A Process data sheet will be supplied with following information :
Service, Type when relevant, Operating Case identification, controlling case for
design, minimum material for constructions, design conditions etc.

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Other necessary technical requirements shall also be supplemented by licensor.

6.2.5 COMPRESSORS / TURBINES / BLOWERS / FANS

a) Gas flow rates with pure component composition breakup, dry and wet molecular
weights, range of molecular weights for machine specification, compressibility factor,
CP/CV ratio, gas density, gas viscosity, etc.
b) Operating temperature and pressure at inlet and outlet conditions.
c) Minimum / normal / maximum flow rates.
d) Turndown and turn up ratios.
e) Mechanical design conditions. Licensor shall follow good engineering practice and
typical vendor information in specifying these. It shall be reasonably ensured that
such design conditions will not require to be revised upward in the course of detail
engineering.
f) Number of operating & spare units and Number of stages
g) Materials of construction and corrosion allowance (casing and internals).
h) Recommended type of main and spare machine and machine drive including
estimated shaft KW, assumed polytropic efficiency, head,
i) Estimated utility consumptions,
j) Recommended seal type,
k) Dew Point of vapour at each stage
l) Capacity control mechanism and ranges, where relevant. (Step control process
requirements)
m) Estimated settle out pressure
n) Anti surge facilities.
o) Operating conditions for start-up/ regeneration (if applicable).
p) It is clarified that for multiple stage machines, specification of each stage and of all
interstage equipment shall be provided by the licensor and the machine will not be
specified as a package unit (with terminal condition specification and design of all
intermittent equipment and piping kept in the scope of others.
q) For reciprocating compressors, the spill back lines and coolers will be separate for
each stage and no clubbing of spillback lines will be practiced. Spillback circuits

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including lines, control valves and coolers shall be specified for 100% of relevant
compressor stage rated flow.
r) For centrifugal compressors, the anti surge circuit including line, control valve and
anti surge cooler, if applicable shall be sized for minimum 100% of relevant
compressor stage rated flow. In case anti surge cooler is specified, the same shall be
considered as cooling water exchanger. These specifications will be further reviewed
and updated during detail engineering by the compressor vendor.
s) For centrifugal compressors, if free draining of inlet and outlet lines of some or all
stages is required away from the compressor, a note shall be provided as follows: “In
case a bottom entry and/or bottom exit compressor, low pocket(s) with appropriate
draining arrangement to closed blow down system shall be provided to limit the
elevation of the compressor to reasonable levels.”

6.2.6 FILTERS / STRAINERS

a) Design flow rates, fluid density and viscosity, pour point and annotations towards
presence of toxic, corrosive and erosive materials. Adequate particle size distribution
and % solids data shall be included for design of filters.
b) Operating temperature and pressure, allowable system pressure drop, filtration
efficiency, etc.
c) Mechanical design conditions. Licensor shall follow good engineering practice and
typical vendor information in specifying these. It shall be reasonably ensured that
such design conditions will not require to be revised upward in the course of detail
engineering.
d) Materials of construction and corrosion allowance of filter casing & internals and
insulation / tracing requirements.
e) Type of filter (in case of automatic back wash type filter), information on backwash
system design like applicable back wash fluid (i.e.; filtered fluid or external fluid). Size
of backwash fluid supply/ return holdup and pumping arrangements, etc. definition,
applicable back wash fluid, properties, frequency of backwash, supply and return
pressures of fluid, etc.
f) Noise limitations (if applicable).
g) Mesh Size, feed filter particle distribution.

6.2.7 MIXERS

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a) Process design conditions.


b) Mechanical design conditions.
c) Materials of construction.
d) Type & extent of mixing action.
e) Type of mixer and driver (if applicable).
f) Power consumption (if applicable).
g) Noise limitations.

6.2.8 MISCELLANEOUS EQUIPMENT

The duty specifications/ characteristics for miscellaneous equipment (chemical injection,


vacuum system, ejector, educator, desuperheaters, flame arrestor) shall be provided. This
shall also include process performance specifications, fluid properties as relevant,
mechanical design conditions, materials of construction and corrosion allowance, power
consumption (if applicable), noise limitations (if applicable), etc. Licensor shall follow good
engineering practice and typical vendor information in specifying these.
Datasheets for Chemical injection facilities (data sheet of vessels, pumps, metering,
unloading facility etc) in details shall be provided.

7.0 SAFETY, HEALTH & ENVIRONMENT

7.1 HAZARDOUS CHEMICALS

Physical and chemical properties of hazardous chemicals and streams present in the unit
shall be defined and provided in completeness. The applicable Chemical Safety Data
Sheets (CSDS) shall be included.

7.2 SAFETY REQUIREMENTS

Design should incorporate latest features of environment protection & occupational


safety. It shall incorporate various safety features in line with international safety
standards and design practices. These should include but not limited to following
provisions.

i. Necessary interlocks and automation to enhance operational safety.

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ii. Special safety requirements such as leak detectors, snuffing rings around leak
prone flanges and online analysers required during operation, decoking etc.
iii. Provision for H2S and hydrocarbon detectors in the platform or locations where
operators will be required to approach during operation/ maintenance.
iv. Special fire fighting and safety system as necessary (e.g. water sprinkler system
over reactor effluent air cooler to be provided etc.).
v. Measures for handling of emergency shut-down and Shut down valve required
for emergency isolation/ inventory containment shall be evaluated and specified
on the P&ID wherever required.
vi. Smart positioners for Emergency Shut Down (ESD) valves.
vii. In-built facilities for safe guarding the process system in any type of emergency/
failure.
viii. Use of latest combustion and burner technology to achieve low levels of noxious
components in the flue gases.
ix. Necessary interlocks with appropriate SIL ratings to enhance operational safety.
x. Closed sampling system.

In case Licensor has a specific requirement for their design, the following shall be
provided by the Licensor.
• Special safety requirement such as Hydrogen / H2S / Hydrocarbon leak detectors
• Snuffing steam rings around leak prone flanges etc. to be indicated wherever
necessary. The number required along with the location to be identified.
• Guidelines for any specialized fire protection and gas detection system for
protection of equipment and personnel shall be provided. A conceptual layout &
design of fire-fighting system and personnel protective facilities to be provided by
Licensor, showing recommended sensory instruments, protective apparatus etc.

P&ID furnished in the Process Package would incorporate preventative measures for the
identified hazards based on HAZOP studies conducted by the Licensor. Licensor shall
ensure to the effect that the design of the unit is safe for operation. However, during
detailed engineering, the identified hazards will be analyzed and preventive measures
will be incorporated in the design to prevent the hazards. Licensor to include data on
release rates, conditions etc. for hazardous release cases, so as to enable carrying out
consequence analysis using Dispersion Model.

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BDEP shall contain a description of the major potential hazards and safety system
employed to control those potential hazards and sufficient information for HAZID.

7.3 PLANT WASTE EFFLUENTS

All unit waste effluents and by-products (gaseous, liquid and solid) produced continuously
or intermittently shall be identified and estimated quantity and quality shall be described
(physical and chemical characteristics in format by Owner). For intermittent users
frequency with quantity shall be specified. Recommended treatment/ disposal
methodologies shall be given. An estimate of emissions, leaks and losses of chemical
compounds shall be provided.

7.4 FLARE LOAD SUMMARY

For gaseous effluents connected to flare, a summary of flare loads shall be provided which
will summarise the unit flare load for all relevant cases such as cooling water failure,
general power failure, fire case, blocked discharge, any operational failure etc. Loads like
venting of Hydrogen and any other gases during start-ups and emergency
depressurizations etc. are to be provided to enable design the flare network and stack
accordingly.
Licensor to furnish Flare mitigation strategy for minimising flare load from the unit as a
part of BDEP without any extra implication to the Owner. Flare mitigation will be carried
out in the complex with agreed mitigation philosophy. Licensor will provide unmitigated
as well as mitigated loads for PSVs of the mitigated services (For both liquid and vapour).
Licensor to also provide necessary input in case additional flare mitigation are agreed
mutually. The flare mitigation strategy will be applicable for both vapour as well as liquid
Loads.

8.0 PIPING & INSTRUMENTATION DIAGRAMS

8.1 PIPING & INSTRUMENTATION DIAGRAMS

Piping and Instrumentation Diagrams (P&IDs) of the unit shall be provided. The purpose of
P&IDs is to allocate, identify and specify all piping items and instruments in the unit,
consistent with the process flow scheme on the PFDs. The P&IDs shall include all process
lines, utility lines to individual process consumers, all start-up/shut down lines,
instrumentation for control, monitoring and interlocks.

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P&IDs, equipment numbering, equipment naming, instrument numbering and line


numbering philosophies and symbols shall be as per Owner’s system which shall be
provided at the time of Design Basis finalisation and shall form part of the Project.

Licensor will provide P&IDs in AUTOCAD (Latest version) P&ID showing following items but
not limited to process equipment, piping with line sizes, essential instrumentation, piping
classes, insulation and heat tracing, elevations etc. Owner will need to provide LICENSOR
all drawing requirements (in the PROJECT SPECIFICATIONS) as soon as possible and as
minimum within five (5) BUSINESS DAYS of the EFFECTIVE DATE or 1 week prior to the
KICK OFF MEETING, whichever is earlier. However, any additional requirement shall be
finalized during Kick Off Meeting.

The following information, as a minimum, shall be included in the P&IDs by Licensor:

8.1.1 PIPING

a) All process lines required for all operating modes of the unit including normal
operation and abnormal conditions such as start-up (inert feed) and shutdown,
flushing and regeneration (if applicable). Lines traversing between P&IDs as well as
lines at unit battery limits will bear flagged connecting arrow-boxes.

b) All utility lines with line number, size, piping class and insulation type required to
individual process consumers. It stands clarified that a cooling water line to an
exchanger such as product cooler is a process service and will have to be shown
whereas cooling water line to a pump casing cooling is a non-process service and will
not be shown. Also, utility distribution P&ID, showing unit utility headers and
connections as per equipment layout, is excluded from Licensor’s scope.

c) Line size, Line number & piping class designation and insulation types for all process
and utility lines. Line numbering philosophy shall be as per owner.

d) Separate line numbers to be provided for individual pump suction and discharge
lines and lines connecting number of shells of heat exchangers as applicable. For air
cooler bundle inlet and outlet, separate line number to be adopted with appropriate
spec breaks (if required). The detailing if line numbering philosophy will be worked
out during KOM in detail.

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e) Special piping items, like valves, spool pieces, spectacle blinds, process drains, vents,
etc. will all be indicated. Owner shall furnish his own standard details for selected
licensor to review and follow as agreed upon.
f) Pressure relief valve inlet and outlet piping sizes (even if preliminary) and
annotations towards location relative to connected equipment.
g) Insulation, heat tracing (steam or electrical) and jacketing wherever required for
process reasons.
h) Requirements for sampling to be indicated.
i) Special arrangements like relative elevation differences of lines, sloping of lines, hot
or cold flushing, purge/blanketing, minimum distance requirements, etc. shall be
clearly identified wherever relevant.
j) Two phase line to be clearly identified with a note specifying appropriate supporting
requirements for the same..

k) Lines for alternate destination, off-spec (to be reviewed and approved by Owner)

l) Equipment by-pass lines for alternate operation (to be reviewed and approved by
Owner as well as Licensor)

m) Spec breaks, insulation break for process lines

n) Requirement for flushing oil injection on lines handling high pour point fluid

o) Details of injection

p) Valving: Air failure position of control and on/off valves, TSO requirements for on/off
valves or control valves (when safety action is required, on/off valve will be installed
as a standard/no solenoid on control valves), LO/LC requirements (key required for
valve manipulation will be preferred to CSO/CSC, seal that can be removed on field
for manipulation. To be confirmed during PIDs review), Check valves required on
process lines, Check valves required on utilities lines( excluding utilities Piping
Network), Control valve bypass, Hand wheel, Mechanical or key interlocks, Limit
switches, Actuator type pneumatic / electric (As a standard, all on /off valves are
specified with pneumatic actuators)

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q) Fittings: Spectacle blinds on lines used only for Start-up and Shutdown, Spectacle
blinds required for positive isolation between two process fluids, spectacle / spacer
blinds for equipment isolation for positive isolation / maintenance (as per project
philosophy), Requirement for flushing oil injection on lines handling high pour point
fluid, Details of injection.

r) Special valve trim in case required.

s) All the details indicated in the legend P&ID or elsewhere in the P&ID should be cross
verified at right location as part of P&ID.

t) Special piping items (Special Valves, low pressure drop check valve, injection quills
etc) shall be provided tag number and indicated in the P&ID. Datasheet for the same
shall be provided.

u) Single interface P&ID indicating all incoming and outgoing lines from the unit along
with their battery limit isolation valve assemblies.

v) Mongolian Boiler Code or any other Boiler code requirements as applicable to piping
and instrumentation will be followed in the P&IDs. Boiler Code requirements will be
informed to licensor as part of BEDB part-B.

w) Interface P&IDs showing all lines (process & utility) entering or leaving the unit along
with their battery limit instruments and isolation arrangements shall be included in
the BDEP.

8.1.2 INSTRUMENTATION

a) All instruments with their tag numbers for all operating modes of the unit including
start-up, shutdown and emergency situations. Signals traversing between P&IDs as
well as at battery limits will bear flagged connecting arrow-boxes.
b) All instruments required from a process stand point on utility lines to individual
process consumers. Definition of a process service is as defined above for piping.
c) Instrument number, instrument designation as per ISA, insulation/ tracing
requirements for all instruments. Instrument numbering philosophy shall be as per
Owner’s system. All instrument P&ID symbols shall follow ISA symbols.
d) Control loops and instruments for proper and safe operation.

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e) Size and air failure position of control valves. Type of control valve manifold either in
the P&ID itself or as a legend referring to a specific table of valve size vis-a-vis
manifold valve sizes to be followed.
f) All control valve sizes to be incorporating in the P&IDs along with the required
reducers and expanders.
g) Clear identification of all hardware and software instruments both in field and in
control room, philosophy of automated trips and start-ups, alarms, etc.
h) Set pressure and recommended size of pressure relief valves.
i) All PSV sizes to be incorporating in the P&IDs along with the inlet and outlet line
sizing/ numbering and spec break wherever applicable by Licensors.
j) Owner's philosophy towards use of single tapping points for multiple instruments,
permitted use of a transmitter signal for both monitoring and interlocking, etc. shall
be adopted after review.
k) Additional instrumentation for flare mitigation as agreed and instruments as
required for operation as per owner’s requirements to be incorporated with tagging
and specification.
l) Process switches shall be realised only through field transmitters.
m) All instruments required for ensuring performance guarantees of Licensors shall be
ensured by the licensor in the P&IDs.
n) In case Locked open (LO) gate valves are provided on the inlet and/or outlet lines of
safety valves, the same shall be arranged with their stems either in the horizontal or
in the vertically down position so that breakage of stem and falling of gate does not
block the PSV discharge line. This is as per statutory requirements of the plant.

8.1.3 EQUIPMENT

The equipment on the P&IDs will show the tag number and service name, mechanical
design pressure and temperature of all equipment (major as well as minor, normal as well
as spare) along with the following data in line with the information provided on
equipment data sheets:

a) Columns: Diameter, height. All nozzles, Manholes, Drain, vent (connected on pipe by
default), Utility connections (only nozzle and isolation valve), Steam out connections to
columns (shall be hard piped and depicted accordingly on the P&IDs), Tracing/Steam coil,
Columns major Internals (columns shall be shown on P&IDs in accordance with general

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arrangement of column Data sheet, except for trays. For trays show transition zones,
draw off, top, bottom, feed and reflux trays and whenever required for instrument
localization. Vortex breakers shall be shown. All internals such as trays, demisters, packed
sections, collector trays, gravity or spray distributors, etc. shall be provided

b) Vessels: Diameter, length/ height. All nozzles, Manholes, Drain, vent (connected on pipe
by default), Utility connections (only nozzle and isolation valve), Steam out connections to
columns (shall be hard piped and depicted accordingly on the P&IDs), Tracing/Steam coil,
Drums internals including demisters baffles etc (drums shall be shown on P&IDs
accordance with general arrangement of drum Datasheet). Dryers and reactors major
internals to be shown.

c) Heat exchangers: Rated heat duty, type of equipment, etc. Number of shells with piping
arrangement, line numbers, instrumentation details etc. (coldest shell is tagged as “Shell
A”. For utilities, cooled fluids will be shown from top to bottom and heated fluid from
bottom to top. For process fluid, no specific recommendation. Stacking of shells where
relevant. Line numbering for lines connecting two shells (if these are not stacked), detail
piping arrangement for exchanger shells.

d) Compressors: Type, Rated volumetric flow rate, differential pressure/ head, Strainers,
Motor/Steam/Gas turbine (Turbines used for rotating machine drive only will be identified
as per the numbering philosophy set out in the PROJECT SPECIFICATION), Power recovery
turbine as applicable, Nitrogen and Flare connection lines (process purpose)

e) Pumps: Type, Rated volumetric flow rate, differential pressure / head, Strainers, Steam /
Gas turbine (Turbines used for rotating machine drive only will be identified as per the
numbering philosophy set out in the PROJECT SPECIFICATION), Power recovery turbine.
f) Air Coolers: Complete information related to this on the P&IDs like: Number of air cooler
bundles, Inlet and outlet line numbers from each bundle and the complete tree, detailed
piping arrangement, Instrumentation and control system, line numbers, instrumentation
details etc. as per agreed philosophy: Variable Speed Driver, Variable Pitch (if required for
process reasons), vibration switches on each fan to trip respective fan on sensing high
vibration.
g) Fired Heaters: Typical representation, Number of heater passes, with dedicated line
numbers and instrumentation for common feed/transfer line as well as for each passes,
Neutralization nozzles (if applicable), Instrumentation and control system on process side
(including skin Thermocouple). Any additional instrument in flue gas side as applicable.

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h) Filters: type, etc. additional instruments and safety valves.


i) Miscellaneous:
• Vendor Packages (shown as a empty box) with the connection of the minimum
instrumentation and control required from process point of view.
• Desuperheater’s representation.
• Silencers representation (shown only after ejectors)
• Flame arrestors representation
• Static mixer representation
j) Type and number of static and rotating equipment with driver type.
k) Position and elevation requirements. For vessels with connected pumps, this elevation
will correspond to equipment elevation in equipment layout after ensuring that pump
NPSHA requirements have been met.
l) Insulation/ tracing requirements.
m) All equipment required in the unit, major as well as minor, normal as well as spare, shall
be shown in the P&IDs.

8.2 PROCESS CAUSE AND EFFECT DIAGRAM

A Process Cause and Effect Diagram (PC&ED) shall be provided. The PC&ED gives an
overview of the process related safeguarding controls ("trips" or "shutdowns") as
described in the Process Control Philosophy and shown on the P&IDs.

The PC&ED shows causes (e.g.: high pressure protection by a switch) and their effects
(e.g.: plant depressurizing, compressor trip) in the form of a matrix-diagram.

The PC&ED forms the basis for the detailed design of the safeguarding system and has to
be considered as an integral part of the P&IDs.

8.3 INTERLOCK DESCRIPTION AND LOGIC DESCRIPTIONS

Interlock descriptions and logic descriptions shall be provided. Logic description shall
indicate the emergency shutdown causes and the effects on the emergency shutdown
valves as installed in the unit. Control algorithms of special loops, if any, used for
operability / optimization will be provided with explanation.

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SIL identification shall be performed by Licensor and loop / circuit shall be identified for
implementation by Owner / Consultant.

9.0 PLANT DESIGN

9.1 PLOT PLAN

A conceptual plot plan for the unit with major dimensions showing all process equipment,
accessories and battery limit shall be provided 2 weeks before PFD review meeting. This
drawing shall include the following:
 Specific location of equipment based on construction/ operating/ maintenance
requirements and on safety aspects taking into consideration owner’s broad
requirement towards inter equipment distances and other applicable safety norms,
codes, standards/ guidelines.
 Plant limits and overall dimensions.
 Access roads and surrounding roads.
 Main pipe racks and main structures.
 Plant North, actual North and predominant wind direction data furnished by owner.
 Catalyst loading / unloading / exchanger tube pull out / column internals drop zone
shall be also reviewed

A dimensional equipment layout for the process unit shall be prepared by the owner/
consultant and duly agreed between licensor and owner/ owner’s consultant at the time
of PFD completion milestone. This layout shall be part of BDEP provided by licensor.

Licensor’s hydraulic calculations have to necessarily correspond to this dimensional


equipment layout and Licensor will ensure that all hydraulic calculation data (pump head,
line sizes, control valve operating pressure drops, etc.) provided by the Licensor in BDEP
will be as per this dimensional layout.

Owner/ owner’s consultant shall provide necessary inputs on equivalent/ effective length
for the hydraulics during the preparation of P&IDs by Licensor. The interface for this
activity shall be finalized at the time of Kick of Meeting

Licensor shall review and approve the final unit plot plan developed during detailed
engineering.

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9.2 PIPING SPECIFICATIONS

Licensor shall employ Owner’s Piping Material Specification (PMS) to standardise the
design which would be provided to Licensor at the outset of the project. Licensor is
obliged to provide his observations on Owner’s PMS and deviations required therein to
meet Licensor’s requirement prior to the stage of BDEP finalisation. Equivalent Line Class
will be jointly developed by Owner and Licensor. Requirement of special services, NACE,
PWHT, wet H2S, Hydrogen service to be included in the PMS suitably.

P&ID’s, line list and all other documents shall indicate owner’s PMS. Piping specifications
shall be provided based on fluid properties, corrosion allowance, operating and design
pressures/ temperature. Specifications will also indicate nominal size, rating and wall
thickness (schedule), valving and welding requirements, gasket types, flange facings and
reinforcing requirements, if any. This section shall also include specifications for relief
valves, ejectors, strainers, and where required, special check valves, expansion joints etc.

9.3 LINE SCHEDULE

Line Schedules shall list all lines shown in the P&IDs and include line number, service,
description, line size, piping class designation, starting and ending points, operating/
design conditions, upset condition temperature and pressure (when exceeding mechanical
design conditions), steam out requirement (if applicable) and flow regime, velocity,
pressure drop, material specification, tracing and insulation designation and details of any
special piping items. Line Schedule to indicate categorically two phase lines and provide
data like vapour flow rate and density, liquid flow rate and density etc. as minimum. Two
phase flow needs to be specifically identified by licensor in line schedule

9.4 INSULATION SPECIFICATIONS

Specifications for the various insulation types covering the requirements of all equipment
and piping shall be provided.

10.0 ELECTRICAL AND INSTRUMENTATION

10.1 ELECTRICAL

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A summary of all process electrical consumers and their estimated normal and maximum
power consumptions shall be provided. Consumers requiring emergency power shall be
indicated and specification of emergency power shall also be furnished.

10.2 INSTRUMENT DATA SHEETS

Process data sheets for all instruments covering all instrument loops (open or closed and
field or control room) indicating main components, operating conditions, special
conditions, etc. shall be provided Instrument list with process data (tag no., min. value,
low and high alarm limits) shall be supplied in the package.

Instrumentation and controls specifications for in line instruments (such as flow


instruments, relieve valves and control valves, etc.), on stream analyzers, alarm and
shutdown systems shown on the P&IDs. Information in supplied instruments process
datasheets relates to following type of instruments:

a) Flow
b) Level
c) Pressure
d) Temperature
e) Control valves
f) Safety valves
g) Analyzers
h) Gas Detectors
i) Miscellaneous (when applicable)

Datasheet shall contain specification of service indicating normal, steady state, the
applicable operating conditions and physical properties of process streams, mechanical
design pressure and temperature.

Datasheets and arrangement drawings shall be provided for thermocouples, thermowells


in reactors.
For the specific types of instruments, the following minimum information shall be
provided in the Instrument Data Sheet:

10.2.1 CONTROL VALVES

For control valves, information in supplied valve process data sheets will contain:

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• Tag number, location, flow rates (minimum, normal and maximum),


• Applicable flowing conditions with operating range, (minimum/normal/maximum)
• Properties at flowing conditions (density and viscosity for liquids, molecular weight
and compressibility factor for gases, whether liquid is congealing,)
• Mechanical design conditions
• Pressure drop at minimum/normal/maximum flow
• Valve specific characteristics (Fail safe position, limit switches, tight shut-off and
solenoid requirements). Control valve size, mechanical limit stops (if applicable),
spring action etc.
• For On/Off valves, process, specifications will contain:
• Applicable flowing conditions with maximum valve closed upstream and
downstream pressure
• Design conditions
• Valve specific characteristics (Fail safe position, limit switches, tight shut-off,
hand-wheel and solenoid requirements)
• Air failure position, control valve size, mechanical limit stops (if applicable), spring
action, etc.
• Sizing pressure drop also applicable maximum differential pressure with valve
closed,

Licensor shall carry out preliminary size of control valves. The sizing shall be verified by
the Detailed Engineering Contractor based on the control valve data specified by Licensor
on behalf of the Owner and information related to final size of control valves, their
number shall be provided to the Licensor during the process book preparation. Modality
of this activity shall be finalized during Kick Off Meeting.

It shall be the responsibility of Licensor to incorporate the size of control valves on the
P&IDs final issue.

10.2.2 SHUTDOWN VALVES

Tag number, location, operating & mechanical design conditions, air failure position,
mechanical limit stops (as applicable), action, quick opening/closing requirement (if
applicable), leakage class, limit switch requirement (as applicable as per Licensor/ Owner’s
philosphy), requirement of smart positioners (if applicable) etc.

10.2.3 SAFETY/ RELIEF VALVES

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Tag number, location, sizing flow rates, set pressure, operating & relieving conditions,
allowable over pressure, density and viscosity and other characteristics (such as
congealing nature etc.), molecular weight and compressibility factor for gases, all other
applicable physical properties of relieving streams are to be provided in each emergency/
Relieving cases (including fire case) as applicable for the service. In the case of flashing
liquid discharges, outlet condition liquid and vapour flows and physical properties will be
provided for the project specified superimposed back pressure.

Licensor shall carry out preliminary size of PSVs. The sizing shall be verified by the
Detailed Engineering Contractor on behalf of the Owner and information related to final
size of safety valves and their number shall be provided to the Licensor during the
process book preparation.

It shall be the responsibility of Licensor to incorporate the details of PSVs (number, size
along with line numbering of inlet, outlet lines to/from PSVs, line size, spec and spec
break as applicable) on the P&IDs final issue.

10.2.4 ANALYZERS

Tag number, location, type of analyser, composition of fluid to be analysed, physical


properties to be analysed, ranges of measurement, density and viscosity for liquids,
molecular weight and compressibility factor for gases, operating & mechanical design
conditions, alarm set point, control set point, etc. Composition of the fluid shall be
indicated in terms of mol% for vapours and wt% for liquids. Type and details of on-line
analysers and their desired range of measurement during normal operation, catalyst
regeneration, start-up etc. should be clearly mentioned.

10.2.5 TEMPERATURE AND PRESSURE INSTRUMENTS

Tag number, location, ranges, fluid properties data, operating & mechanical design
conditions, alarm set point, control set point, etc. as minimum. Data for performing wake
frequency calculations like velocity etc. shall be provided for all thermo wells.

10.2.6 FLOW INSTRUMENTS

Tag number, location, flow rates (minimum, normal & maximum), allowable pressure
drop, density & viscosity for liquids, Special properties (such as congealing nature etc.),
molecular weight and compressibility factor for gases, operating & mechanical design

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conditions, alarm set point, control set point, recommendation for type fo instrument, etc.
as minimum.

10.2.7 LEVEL INSTRUMENTS

Tag number, location, upper and lower fluid density & viscosity, properties (such as
congealing nature etc.), molecular weight and compressibility factor for gases operating &
mechanical design conditions, alarm set point, control set point, etc. as minimum. Type of
instrument and dielectric constant for radar type instrument shall be provided.

10.2.8 Alarms and shutdowns:

Prepare a preliminary alarms and shutdowns summary of general instrumentation with


set points for alarm trips and alarms shown on P&IDs.

10.2.9 Analyzer Points:

List and types of sample connections to be used based on LIENSOR standard drawings
and specifications. (e.g. wash water sampling point & Ammonium Bi sulphide (ABS)
sampling point in separator boot water to be provided and sampling to be done as per
Licensor prescribed frequency etc.).

10.2.10 Hand switches process data sheets: Provide list.

10.2.11 Other Miscellaneous Instruments

Tag number, location, process performance specifications and fluid properties as relevant
including physical properties, operating & mechanical design conditions, alarm set point,
control set point etc.

10.3 GENERAL INSTRUMENT SPECIFICATIONS


a) Centralized control centre shall have DCS to support Foundation Field Bus (FF Bus)
technology. All field instruments shall be compatible with FF Bus technology with
digital signal processing.
b) Instrument Technical specification and Instrument data sheets shall be provided in
BDEP according to FF Bus technology. However, FF Bus technology shall be excluded
for ESD, Fast loops like compressor controls, Critical process loops where faster
execution time is recommended and for analyzers.

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c) Hardware (Instruments) required for future APC implementation to be included as


per Licensor’s experience, if applicable.
d) Functional Schematics for Complex schemes with complete description and write-
up shall be provided.

11.0 SUPERVISORY OPERATING MANUAL

The supervisory manual will refer to process description and shall contain the following as
a minimum:

 Processing objective of plant along with brief details of the project/ Unit like
capacity, Feed/ product properties etc. as a minimum
 Process description along with process chemistry and kinetics
 Advanced technical features of the process
 Impact of variation in feed characteristics
 Operating variables and their effect on unit operation
 General Equipment operating procedures along with Equipment list with broad
specifications
 Description of instrumentation, interlocks and permissives, control narratives
 Procedure for preparation of start-up (pre-commissioning and commissioning)
 Procedures/ operating instructions for normal operation, start-up, short-term
shutdown, planned long-term shutdown and emergencies
 Troubleshooting in various scenarios
 Catalyst loading/ Unloading, handling and regeneration procedures if applicable
 Special procedures as applicable to heaters (e.g.: decoking), reactors, etc.
 Emergency & safety information
 Description of normal operating practices along with Normal operating parameters
 Operating flexibilities
 Recommended laboratory test procedures (along with laboratory apparatus),
Licensor’s own procedures if different from specified methods, frequency of analysis,
parameters to be analysed for feed streams, products & intermediates
 Safety data and other process safeguarding devices
 List of alarms and trips
 Start up diagrams
 Brief write up on Health, Safety and Environment safeguard

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The manual shall be adequate for the Owner or Detailed Engineering/ Procurement/
Construction contractor to develop a detailed operating manual subsequently. Licensor
shall review the manual so developed.

12.0 SPECIAL EQUIPMENT

Datasheets / specification for special equipment for operation of the unit shall be
provided. Details of such equipment including process, instrument, mechanical,
metallurgical, electrical, structural etc. aspects shall be provided completely to enable
Owner to obtain offers without requiring any further engineering by Owner/ Detailed
Engineering contractor and also take up erection/ execution subsequently. The list of
such special equipment shall be finalized during Design Basis finalization.

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ANNEXURE- IVB
TIME SCHEDULE

Time Schedule for preparation of BDEP, completion of Detailed Engineering and release of
deliverables by Licensor for the unit shall be as follows from the date of finalisation of design
basis (from Zero date i.e. finalisation of design basis):

S. Activity Schedule
No.
1. Kick Off Meeting for finalisation of Design Basis 0 Week
2. Heat & Material Balances and Process Flow Diagrams (PFDs) for 6th Week
Owner review
3. Indicative Equipment Layout 6th Week
4. PFD Review by Licensor/Consultant/Owner 8th Week
5. Finalisation of dimensional Equipment Layout 8th Week
6. Release of all critical equipment Data Sheets(Reactor, Critical 8th week
Item, any other major equipment) (Note-2)
7. Finalisation of Critical Item datasheets 10th week
8. Utility Summary 10th week
9. Submission of Thermal Design of Furnace/ Exchangers/ Air 12th Week
coolers
10. P&IDs with preliminary HAZOP incorporated (including cause and 12th week
effect diagram), for Owner review
11. Balance Equipment Datasheets 14th Week
12. P&ID Review by Licensor/Consultant/Owner 14th Week
13. Control valves/ PSV datasheets 14th Week
14. Detail engineering deliverables (wherever applicable) 18th Week
15. Final BDEP (Soft including Native files), inclusive of all reviews) 20th Week
16. Operating Instructions/ Laboratory Manual 26rd Week
17. BDEP hard copies 26th Week

Notes:
1. “Weeks” refer to calendar weeks after the starting date.
2. All critical Equipments shall be identified and mutually agreed during Kick Off Meeting.

(SIGNATURE OF LICENSOR)

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ANNEXURE- IV C

TECHNICAL INFORMATION & GUARANTEES

1.0 Feed rate, MMTPA

● Design :----------
● Guaranteed :-------------

2.0 Turn Down

● Guaranteed :-------------

3.0 Feedstock Data:

Feed quality considered for the design: (in tabular form indicating properties of individual
feed component as well as that of feed-blend, if applicable)

Type of feed LPG to the LPG Treating Unit (Please tick (√ ) the box, as applicable):

Stabilized

Unstabilized

4.0 Feed Impurities


The maximum permissible limits of impurities up to which the cycle length and catalyst
life mentioned in this bidding document does not get affected.

Table 4.1: Feed Impurities

S. Permissible
Attribute Unit Design
No limit
1. Total Sulphur (ppmw)
1.1 H2S (ppmw)
1.2 Mercaptan sulphur (ppmw)
1.2.1 Methyl Mercaptan sulphur (ppmw)
1.2.1 Ethyl Mercaptan sulphur (ppmw)
1.3 COS sulphur (wt. ppm)
2. Any other

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5.0 Operating Conditions Summary

Table 5.1: Operating Conditions

Attribute Unit Design Operating


1) Pre-wash and Extraction Section:
0
Temperature C
Pressure Kg/cm2g
Caustic concentration Wt%
Caustic circulation flow rate m3/hr
Caustic Make-up flow rate m3/hr
2) Caustic Regeneration Section:

0
Temperature C
Pressure Kg/cm2g
Catalyst Injection flow rate m3/hr
Compressed Air flow rate Nm3/hr
Wash Oil Inlet flow rate m3/hr
DSO rich Wash Oil outlet flow rate m3/hr
Vent gases flow rate Nm3/hr

3) COS Removal Section:


0
Temperature C
Pressure Kg/cm2g

4) Any other:

Note:
Sections mentioned above are preliminary & shall be decided upon selected licensor’s
technology.

6.0 Product Properties

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Table 6.1: Product Properties

Treated LPG
Value
Parameters UOM Specification Remarks
Estimated Guaranteed
Total Sulphur
(H2S-S + RSH-S + RSSR-S + ppmw 30 (max.) Guarantee
COS-S)
H2S - Pass Guarantee
RSH-S (as S) ppmw 5 (max.) Guarantee
RSSR-S (as S) ppmw 20 (max.) Guarantee
Copper Strip Corrosion
- No. 1 (max.) Guarantee
Test Classification
Sodium (as Na+) ppmw 1 (max.) Guarantee
Content of free water - NIL Guarantee
COS (as S) ppmw REPORT
2
Vapour pressure at 40°C, kg/cm
REPORT
(max) (a)
Evaporated Temperature
°C REPORT
95%
Molecular Weight kg/kmol REPORT
3
Density@15°C kg/m REPORT
H2O Wt% REPORT
C1 Wt% REPORT
C2 Wt% REPORT
C3 Wt% REPORT
i-C4 Wt% REPORT
n-C4 Wt% REPORT
i-C5 Wt% REPORT
n-C5 Wt% REPORT

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DSO rich Naphtha


Value
Parameters UOM Specification Remarks
Estimated Guaranteed
Sodium (as Na+) ppmw 1 (max.) Guarantee
ASTM D-86 Distillation: REPORT
(IBP,5,10,30,50,70,90,95,F °C
BP)
H2O ppmw REPORT
H2S ppmw REPORT
Ammonia Wt% REPORT
C1 Wt% REPORT
C2 Wt% REPORT
C3 Wt% REPORT
i-C4 Wt% REPORT
n-C4 Wt% REPORT
C5+ Wt% REPORT
Mercaptan ppmw REPORT
Total Sulphur ppmw REPORT
Molecular Weight kg/kmol REPORT
3
Density@15°C kg/m REPORT
Vapour pressure at 40°C, REPORT
kg/cm2 (a)
(max)

Notes:
1. The values with respect to Process Guarantees for above parameters (maximum /
minimum values as indicated) should be included in the offer.
2. Guaranteed values should correspond to guaranteed yield of respective product and
should conform to the values specified in the design specifications, where applicable.
3. Guaranteed values should correspond to guaranteed feed rate and design feed
quality.
4. The various properties of products should be reported in accordance with the test
methods and unit mentioned against respective properties of the particular product.
5. The information sought in the tables above shall be furnished separately for each of
the feed cases along with the offer.

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6. For balance properties, test Method / Alternatives to be followed shall be discussed


during Kick Off Meeting.

7.0 Yield Estimates

For the purpose of evaluation overall yields will be taken. It should be noted that the
yield distribution to be indicated below, both for estimated as well as guaranteed values,
should correspond to product streams Ex-Unit and not for any intermediary processing
position.

Table 7.1: Yield Distribution

S. Attribute Yield, % wt. on feed Yield, kg/hr


No. Estimated Guaranteed Estimated Guaranteed
1.0 Feed rate, kTPA
1.1 Untreated LPG, kTPA Note-1 Note-1
1.2 Naphtha (Wash Oil), kTPA Note-1 Note-1
2.0 Turn-down ratio Note-1 Note-1
3.0 Yield (ex unit-dry basis)
3.1 Treated LPG (min.) Note-1 Note-1
3.2 DSO rich Naphtha (max.) Note-1 Note-1
3.3 Vent Gas
4.0 Caustic Consumption (% wt
feed)

Note 1: The values w.r.t. ‘Process guarantees’ on these items need to be confirmed by
Licensor along with the offer, as these values are essentially required for
evaluation of the offer and an offer without these values may not be evaluated.

8.0 Reactor Details


Table 8.1: Reactor Details (Note-1)

Reactor –1 Reactor-2
Diameter, m
No. of beds
No. of Quench
Height, m
MOC
Reactor Weight, MT

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9.0 Utilities Consumption/Generation:

Table-9.1: Utilities Data (Consumption)


Utility Item Estimated Guaranteed
Gen. Con. Gen. Con.
Steam, MT/hr (Note-8) HP (min.) (max.)
(Note- (Note-
1,10) 1,10)
MP (min.) (max.)
(Note- (Note-
1,10) 1,10)
LP (min.) (max.)
(Note- (Note-
1,10) 1,10)
Power, KW (Note-8) (max.)
(Note-1)
Demineralised (DM) Water, m3/hr. (max.)
(Note-1)
Boiler Feed Water, m3/hr. (Note-4)
Cooling Water, m3/hr. (Note-5) (max.)
(Note-1)
Process Water (Raw), m3/hr.
Nitrogen, Nm3/hr.
Instrument Air, Nm3/hr.

Table-9.2: Intermittent Utilities Consumption


Utility Item Purpose(s) Unit of Consumption
Rate Hours / Day Rate
Steam, MT/hr HP
MP
LP
Power, kW
DM Water, m3/hr
Boiler Feed Water, m3/hr
Cooling Water, m3/hr
Process Water (Raw), m3/hr.
Nitrogen, Nm3/hr.
Instrument Air, Nm3/hr.

Notes:
1. Guaranteed figures for all items (minimum / maximum values as indicated),
wherever applicable, in the above table should be included in the offer.

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2. The above Table should be used for representing data with respect to continuous
consumption/ generation of utilities. In addition, Licensor should include the
intermittent consumption figures separately, indicating purpose, rate and duration
for each such item as per Table-9.2 above.
3. The indicated figures based on 3% blow-down.
4. The indicated figures based on 10 deg C temperature rise.
5. The guaranteed utilities shall be based on design conditions of feed to LPG
Treating Unit.
6. Licensor shall indicate separately the power required and steam usage considering
maximum usage of electricity power for drive of pumps / compressor etc.
7. Licensor shall provide estimated consumption and generation figures separately
for each level of steam- HP, MP and LP. However, guarantee shall be for Net
Consumption/ Generation for each level of steam, HP. MP and LP.
8. Any utility information in the table, if verifying for the alternate feed cases, should
brought out clearly with separate values in the offer.
9. Licensor shall provide utility consumption including consumption value for heating
& tracing.
10. Licensor shall provide equipments-wise utility consumption also.

10.0 Catalyst

Table 10.1: Catalyst System Details

Name of Catalyst-1 Catalyst-2 Catalyst-3 Catalyst-4


Catalyst
Type
Function
Shape
Base Metal
Metal
Quantity
Estimated
Value
Volume (m3)
Loading
density
(kg/m3)
Quantity (kg)
Ultimate life
(with
regeneration,
wherever
applicable)
Type of

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loading
Type of
Packing
Packing Size
Delivery
Schedule
Catalyst
Make up rate
Pressure
drop across
each reactor

Note-1: The above table to include all catalyst / resin / adsorbent or any other
item (e.g. modules) offering catalyst function, including ceramic balls.

11.0 Chemicals

The chemicals required for the process to be filled in the following table:
Table 11.1: Chemical System details
Name of Chemical-1 Chemical-2 Chemical-3 Chemical-4
Chemical
Type
Function
Proprietary
(yes/ no)
Vendor/
Supplier
Requirement
(Continuous /
Intermittent)
Dosing Criteria
Storage
inventory (M3)
Consumption
(m3/hr)
Normal
Maximum
(peak)
Guaranteed
(wherever
applicable)
Quantity with
losses (Note-

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1,2)
Note-1: Licensor to indicate total quantity including 5% contingency / handling losses
Note-2: The additive / solvent / chemical values indicated under this head shall be
considered for NPV calculation.

12.0 Wash Water Quality

Acceptable quality of wash water/stripped sour water:

Table 12.1: Wash water quality

Contaminants Wash Water Quality Stripped Sour Water


TDS
Chloride
O2
NH3
H2S
pH
Hydrocarbon
Phenols
Iron
Non-volatile residue
Total hardness
Total suspended solids

13.0 Start-up / shutdown requirement of Inert gas (Nitrogen)

13.1 Battery limit conditions:- As required by Licensor.

Parameters Min. Normal Max.


Pressure kg/cm2(g)
Temp.,°C

13.2 Quantity of Nitrogen required, Nm3/hr

Start-up Shut-down
Normal Duration Peak Duration Normal Duration Peak Duration
Hr Hr Hr Hr
Nitrogen

13.3 Inert gas Purity ------ %

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14.0 Requirement of Utilities during start-up / shutdown

Start-up Shut-down
Normal Duration Peak Duration Normal Duration Peak Duration
Hr Hr Hr Hr
HP steam
MP steam
LP steam

Also, indicate emergency utility requirements and duration

13 Need for coalesce / dryer : ………………..

14 List of Proprietary Items along with delivery schedule

a)
b)
c)
d)

15 Any specific comments/information.

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ANNEXURE –IV D

FORM 1

INFORMATION IN RESPECT OF REFERENCE UNIT

S. No. DESCRIPTION DETAILS

1 Name of the Unit / company

2 Type of Plant Captive


Non-captive
3 Type of Project (Note-3) Grass Root Project
Debottlenecking of
an existing plant
4 Location of Plant

5. Ambient Temperature of Plant

6 Details of Contact person


- Name
- Address
- Telephone
- Fax nos.
- Email ID
7 Technology Licensor
8 Process Package/BDEP by
9 Detailed Engg. Contractor
10 Month & Year of Signing of License
Agreement (Note-2)
11 Operating from & upto
12 Commercially Operational (Yes / No) If yes, Date of Commissioning
_______
If No, Expected Date of
Commissioning _______
Design / Guaranteed / Operating Values for the Design Guaranteed Operating
following (item no 13 to 17)
13 Capacity (MMTPA)
14 On stream days, hrs/year

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15 Feedstock quality & Composition


(Straight Run & Cracked):
-
16 Yield of Products
-
17 Major product Quality

18. Major Processing Objective

19. Unit Configuration

20 Catalyst System (furnish for each type of Guaranteed Achieved


catalyst)
Name & Type of catalyst
Quantity of catalyst in unit volume
Cycle length of Catalyst, months
- Initial
- Ultimate
Supply date

Operating from & upto

21 Whether the unit performs as originally


proposed by the Licensor and meets all
the guarantees. If not, the reasons
thereby
22 Any operational or other problems faced
in the unit and remedial measures
adopted

Notes:
1. Above format to be filled up by licensor for the following references and submit
along with the offer:
a. Reference plant meeting Total Sulphur in Treated LPG < 50 ppmw
b. Reference Plant operating in ambient Temperature below (-) 29°C. In case
reference plant of below -29°C is not available, Licensor to inform reference
plant along with min. ambient temperature of reference plant. In case
Licensor has implemented any other unit instead of LPG Treating Unit

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(LPGTU) (acted as a technology licensor) in a location having below -29°C,


same may also be provided as reference unit.
c. Reference Plant with the catalyst proposed for Mongol Refinery
2. Effective Licensing agreement date shall be considered as licensing date.
3. Reference of pilot plant, laboratory scale plant, captive plant, demonstration plant
not to be provided

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ANNEXURE –IV E

CHECK LIST FOR SUBMISSION OF BID-TECHNICAL

(Compliance Sheet to be filled by Licensor along with the submitted proposal)

Licensor is requested to fill this check list and ensure that all details/documents have been
uploaded as called for in this Bidding Document along with duly filled in, signed checklist

Please tick (√ ) the box and ensure compliance:

(1) Process Performance Guarantee Compliance for all Design cases as per Annexure-IVC

Submitted

Refer Page no. / Section no. in Offer ___________

(2) All inputs to NPV values are aligned with the guarantees

Complied

(3) Time schedule as per Annexure-IV B

Complied

Refer Page no. / Section no. in Offer ___________

(4) Technical Deviations

Is there any technical Deviation in the offer?

YES NO

Refer Page no. / Section no. in Offer, if any ___________

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(5) Assumptions / Clarifications

Is there any Assumptions / Clarifications on the bid w.r.t. this Bidding document?

YES NO

Refer Page no. / Section no. in Offer, if any ___________

(6) All Catalyst / Resins & Chemicals information sought in Clause 6.2.2 of Technical
portion of this Bidding document

Submitted

Refer Page no. / Section no. in Offer ___________

(7) Catalyst life requirement complied as per the Clause 2.11 of Technical portion of this
Bidding document.

Complied

Refer Page no. / Section no. in Offer ___________

(8) Equipment Data with all information as per format in Clause 6.2.3 of Technical
portion of this Bidding document

Submitted

Refer Page no. / Section no. in Offer ___________

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Signature Not Verified
Digitally signed by UTTAM KUMAR
Date: 2019.11.13 15:12:31 IST
Location: eProcure-EPROC

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