Call for Tender

Title: Invitation to tender DocID:

Revision: June 3, 2021
Created by: JNY019, RST014 Status: Approved
Approved by: RST014 Pages: 1 (12)
PT Wartsila Indonesia Project: Sulawesi 500MW Gas Engine Power Plant

Description: Material and Installation works

ELECTRICAL, MECHANICAL AND CIVIL MATERIAL

SUPPLY, CONSTRUCTION &
INSTALLATION WORKS

FOR

“Sulawesi 500MW Gas Engine Power Plant”

ON SULAWESI ISLAND, INDONESIA

ON BEHALF OF:

PT WARTSILA INDONESIA

This Invitation to Tender is issued on June 3rd, 2021

PT Wartsila Indonesia, a company incorporated under the laws of Indonesia, with principal
offices at Tempo Scan Tower 19th Floor, Jalan H. R. Rasuna Said Kav. 3 – 4, 12950
Jakarta, Indonesia (hereinafter referred to as the “Builder”) which expressions shall include
its successor and permitted assignees of the first part,
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Table of Content

1 DEFINITIONS ........................................................................................................................... 3
2 GENERAL PROVISIONS ......................................................................................................... 5
3 CLOSING DATE AND HANDING OVER ADDRESS ................................................................ 6
4 VALIDITY OF THE QUOTATION ............................................................................................. 7
5 REJECTION OF THE QUOTATION ......................................................................................... 7
6 ASSIGNMENTS AND SUBCONTRACTING ............................................................................. 7
7 PROPERTY RIGHTS AND CONFIDENTIALITY....................................................................... 8
8 APPLICABLE LAWS AND ARBITRATION .............................................................................. 8
9 RETENTION OF TITLE ............................................................................................................ 8
10 PRICING [to be checked with tax team] ................................................................................ 8
11 INSURANCE POLICY ........................................................................................................... 9
12 RESPONSIBILITIES OF THE CONTRACTOR ...................................................................... 9
13 TIME SCHEDULE ............................................................................................................... 10
14 COORDINATION AND CORRESPONDANCE .................................................................... 10
15 SITE .................................................................................................................................... 10
16 SCOPE OF WORK.............................................................................................................. 10
17 EXECUTION PLAN ............................................................................................................. 11
18 SUMMARY OF QUOTATION ATTACHMENTS TO BE PROVIDED BY CONTRACTOR .... 11
19 EXHIBITS TO INVITATION TO TENDER DOCUMENT ...................................................... 11

This information is confidential and proprietary to Wärtsilä.

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1 DEFINITIONS

In the Tender Documents (as hereinafter defined) the following words, phrases,
terms, expressions, interpretations and abbreviations, when capitalised, shall have
the meaning hereby assigned to them, except where the context otherwise requires:

“Contractor” means the person, firm or company or group of companies, to whom

the Invitation to Tender has been handed over by the Builder. The meaning includes
the Contractor‘s official representatives, successors and permitted assignees.

“Bidder” is a potential independent power producer (IPP) developer that aims to

participate in the bidding process initiated by the Offtaker.

“Builder” is PT Wartsila Indonesia and includes the legal successors and permitted
assignees in title to the Builder. Reference to Builder shall also include reference to
its Affiliates. For the purposes of this document, “Affiliate” means any legal entity
that, directly or indirectly, controls, is controlled by, or is under common control with
the Builder.

“Builder’s representative” is the project manager or any person, who shall have the
responsibility or authority specifically delegated to such individual by the Builder and
made known in writing to the Contractor, including, but not limited to the authority of
the Builder to issue and approve changes in Work.

“Facility” shall have the meaning as set out in these Tender Documents.

“Offtaker” is a mining company with operations in Indonesia that aims to develop a

Facility to produce ferronickel.

“Other party / Other parties / Third Party” is the person, firm, company or group of
companies, with whom the Builder or the Contractor may have contact regarding the
Project or generally.

“Project” is defined as installations, erections, delivery, supplies and services under

the agreement between the Builder and the Bidder.

“Proposal” is a proposal prepared by the Builder for the supply, installation, testing
and commissioning of a functional Power Plant based on the Builder’s engine
technology with the intention to provide power for the Facility.

“Quotation” / “Offer” is the Contractor’s proposal based on the Tender Documents.

“Sub-Contractor” is any person, firm, company or group of companies (other than

the Contractor), who has been appointed by the Contractor to perform any part of the
Work.

“Tender Documents” are the invitation and instruction to Contractor, description of

Project or Work and specifications issued by the Builder in the tender package. Any
other written information given by the Builder, between the dates when the invitation
to tender was issued and the Contract was signed, is also included unless otherwise
stated.

“Variation order” is an item approved by the Builder such as additional services,

works or materials, which deviate from the Contract. It also means variations in
amounts, duration and specifications compared to the statements in the Contract.

This information is confidential and proprietary to Wärtsilä.

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“Work” is defined as all installations, erections, deliveries, supplies and services that
will be carried out under the Contract between the Builder and the Contractor.

This information is confidential and proprietary to Wärtsilä.

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2 GENERAL PROVISIONS
Introduction

The Offtaker is planning to develop and build a smelter facility (the “Facility”) using
the rotary kiln electric furnace (RKEF) technology to produce ferronickel from laterite
nickel ore on Sulawesi Island, Indonesia. The Facility will require approximately 531
MW (gross) of electricity to operate. The Offtaker has issued a request for proposal
to qualified Bidders with the aim to find a suitable candidate to provide a feasible “gas
to power” solution for the Facility.

Certain Bidder(s) have approached the Builder with the aim to find a power generation
solution that will provide high availability, reliability and a competitive tariff for their
bid(s) to the Offtaker.

The Builder is part of the Wärtsilä group of companies with the capabilities lengthy
experience and expertise to design, deliver and operate power plants for various
industries, including the mining industry. The Wärtsilä group of companies have
developed a project specific concept based on the proven engine technology (the
“Power Plant”) that would fulfil the needs for the power generation of the Facility. The
Builder is currently in the process of finalizing the Proposal for the Bidder(s).

The Builder is now looking for a Quotation from the Contractor to provide certain local
services related to the construction and installation of the Power Plant, as further
described in these Tender Documents. The local services include, but are not limited
to, soil preparation (including improvement), civil, electrical and mechanical
installation of equipment supplied by Wärtsilä Finland Oy, an Affiliate of the Builder
(“Wärtsilä”) with the aim to complete a fully functional power plant, as per
specifications, on time and within budget. The Builder wants to emphasize the
importance of customer satisfaction, but also the health, safety and environmental
(HSE) requirements that will play a crucial role in this Project.

Project Schedule

The total Project time is estimated to be approximately 24-30 months and is estimated
to start in 2022.

Bid Preparation

As the time is short for the Bidders to submit their bids to the Offtaker, the Builder is
also having a tight schedule to finalize the Proposal for the Power Plant to the Bidders.
Hence, the Builder expects the Contractor to provide its offer for the services
described in these Tender Documents no later than the date described in Point 3 of
these Tender Documents.

In case the Contractor seeks further clarifications on the expected services and works
to be performed, the Builder encourages the Contractor to contact the Builder’s
contact persons listed in Point 3 of these Tender Documents.

Language

All drawings, documents and correspondence between the Builder and the Contractor
shall be in the English.

Measurements

All measurements shall be according to the SI - system unless otherwise specified.

This information is confidential and proprietary to Wärtsilä.

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Interpretation

The following shall form the principal basis for interpretation of the Tender Documents.

The provisions of the Invitation to Tender including the modifications and, or variations
agreed upon, shall prevail over those of any other document forming part of the
Tender Documents. Notwithstanding, the several documents forming the Tender
Documents shall be taken as mutually explanatory of one another but in case of
ambiguities, discrepancies or errors, the Contractor shall ask the Builder for an
explanation. The Builder will thereupon issue to the Contractor instructions directing
in what manner the issue is to be handled.

The Tender Documents shall prevail in any case of variance between provisions
thereof and provisions contained in the Quotation. Any exception to or alteration of
the Tender Documents proposed by the Contractor shall only be valid, if agreed upon
between the Builder and the Contractor in writing.

The Contractor shall include any Work, shown in the tender drawings and not
particularly specified in other Tender Documents. The omission from specifications
and drawings of any detail of Work necessary and obviously intended for the proper
function of the plant shall not relieve the Contractor from furnishing the same without
extra costs to the Builder. It is understood by the Contractor that the Work described
shall be complete and functional in every detail, even though every item necessarily
involved may not have been particularly mentioned.

Compliance with laws

The Contractor and his employees shall strictly comply with the laws, rules and
regulations of Indonesia.

3 CLOSING DATE AND HANDING OVER ADDRESS

The quotation shall be in the Builders possession in digital format (email) no later than
25th of June 2021. This date will be referred as the “Bid Closing Date”.

The Quotation shall be submitted in digital format (e-mail) to:

PT Wartsila Indonesia

Mr. Wiwin Suhendri

Senior Business Development Manager
Sales, Wärtsilä Energy
Tempo Scan Tower, 19th Floor
Jl. H.R. Rasuan Said Kav. 3-4
Jakarta – 12950, Indonesia
Mobile: +62 811141301
e-mail: wiwin.suhendri@wartsila.com

and cc

This information is confidential and proprietary to Wärtsilä.

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Wärtsilä Finland Oy

Mr. Robert Stoor

Business Development Manager
Sales, Wärtsilä Energy
Puotikuja 1
P.O. Box 252
65101 VAASA, Finland
Mobile: +358 503699229
e-mail : robert.stoor@wartsila.com

Mr. Joakim Nylund

Senior Project Manager
Project Management, Wärtsilä Energy
Puotikuja 1
P.O. Box 252
65101 VAASA, Finland
Mobile: +358 505631496
e-mail : joakim.nylund@wartsila.com

The Quotation shall be submitted by e-mail in PDF format. The Bill of Quantities
(BoQ’s) files containing bidder’s pricing shall also be submitted in editable Excel
format (Appendix 1).

The Contractor is obliged to include all highlighted Appendices (1-6) together

with his Quotation.

4 VALIDITY OF THE QUOTATION

The Quotation shall be valid six (6) months from the Bid Closing Date.

5 REJECTION OF THE QUOTATION

The Builder has the right to reject the Quotation without any compensations or
clarifications or liability whatsoever to the Contractor. The Builder is not required to
provide the Contractor with any reasons for its rejection of the Quotation.

6 ASSIGNMENTS AND SUBCONTRACTING

Sub-contracting

The Bidder shall list the names of proposed Sub-Contractors (Appendix 2). Details
of Work intended to be assigned to them shall be listed in the Quotation. The
Contractor is fully responsible for actions, prices and performance of Sub-Contractors.
The Builder has the right to reject any or all Sub-Contractors at any time, based on
same conditions as for the Contractor. The Builder is not required to provide the
Contractor with any reasons for its rejection of any or all of the Sub-Contractors. The
Contractor is not allowed to sub-let the whole Work unless otherwise agreed.

This information is confidential and proprietary to Wärtsilä.

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7 PROPERTY RIGHTS AND CONFIDENTIALITY

Property Rights

The Builder owns the right of designs and technical specifications and solutions. Legal
actions can be taken against the Contractor if any patent is infringed by cause of the
Contractor. The Contractor will be held responsible for actions taken by any third party
with whom the Contractor have been in contact with regarding this tender procedure.

8 APPLICABLE LAWS AND ARBITRATION

A potential future contract is to be construed and shall be governed by and interpreted
in accordance with Singapore laws. The potential future contract shall be both in
English and Bahasa Indonesia, and in the case of any conflict or inconsistencies
between the English and Bahasa Indonesia version, the English version shall prevail.

All disputes arising in connection with the potential future contract shall be settled
through friendly consultations between the parties. In case no agreement can be
reached through consultations, the dispute shall be submitted to arbitration for final
and exclusive settlement.

The arbitration procedure shall be governed by the Rules of Conciliation and

Arbitration of the International Chamber of Commerce and shall be conducted by one
or more arbitrators appointed in accordance with the said rules. The arbitration
proceedings shall be in the English language and the seat of arbitration shall be
Singapore.

The Builder may at its discretion undertake legal proceedings in any court with
jurisdiction in the country of the Contractor.

9 RETENTION OF TITLE
The Builder shall maintain title and ownership of Builder provided drawings, items,
tools and materials. The Contractor shall clearly mark and keep them separate from
other drawings, items, tools and materials. All Builder provided drawings, items, tools
and materials, shall be returned to the Builder upon expiry or rejection of the
Quotation.

10 PRICING
The price must be according to price breakdown as per the Appendix 1 [Estimation
of Quantities] (based on the Exhibit B [Bill of Quantities]).

The price shall contain all Contractor related taxes, duties, insurances and third part
inspections, which might be payable according to governmental or local laws, rules
or regulations for work intended to be executed, as described in Tender Documents.

The Builder is not responsible to inform or take any other actions in order to fulfil the
tax regulations towards governmental or local authorities. No additional tax related
sum can be claimed by the Contractor in case of signing a contract.

A misinformation from the Contractor regarding tax issues can lead to rejection of the
Quotation.

This information is confidential and proprietary to Wärtsilä.

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If there are any part of the scope that the Contractor is not able to perform, it
shall be clearly stated in the Bill of Quantities.

The price shall be in Indonesian Rupiah (IDR), excluding VAT, but including all
other taxes/duties applicable in Indonesia.

11 INSURANCE POLICY
The Work will be insured by the Builder with a Construction All Risk (CAR) / Erection
All Risk (EAR) containing Third Party Liability. The insurance policy will cover all
Subcontractors involved in the Work on behalf of the Builder, unless otherwise stated.

The Contractor shall indicate the type and coverage of the insurance policy also
including copy of insurance policy (Appendix 3) taken care of in the Contractor’s
insurance policy.

All local insurances and own insurances are to be included by the Contractor in the
price quoted.

The Contractor shall take responsibility for Workmen’s Compensation for his own
employees and for the employees of his sub-contractors, also for vehicles and tools
used by himself. The Contractor is also obliged to take other insurances according to
governmental and local laws, rules or regulations.

12 RESPONSIBILITIES OF THE CONTRACTOR

The Contractor shall price the work according to Tender Documents. If there are
deviations or contradictions between Tender documents and local construction
practice, standards or regulations, the Contractor shall consult the Builder for
guidance prior to quotation, failing which the more stringent standard shall apply.
Skilled workmen shall perform the Work.

The Work shall be carried out in compliance with local regulations and with full
compliance with the local labour construction unions (affiliation certificates, and all
cost shall be included in the contractor cost).

Under no circumstances shall the Contractor take order or give information to any
other party than the Builder.

Quality Assurance

The Contractor shall give priority to quality. The Contractor shall submit their Quality
Plan for the Work (Appendix 4).

The Builder reserves the right to approve materials, material certificates and method
statements

Environmental compliance

The Contractor shall enclose their Environmental Plan to their Quotation

(Appendix 5).

This information is confidential and proprietary to Wärtsilä.

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13 TIME SCHEDULE
Contractor shall enclose his Execution Plan (Appendix 6).

14 COORDINATION AND CORRESPONDANCE

The Contractor shall name a responsible person with whom the correspondence
between the Contractor and the Builder shall take place during bidding procedure.
The correspondence between the parties shall be in English language.

15 SITE
Storage / On Site Prefabrication area
Space will be available for storage and On-Site Pre-fabrication work within the site
area.

Security
The Contractor shall arrange the security of the Site area and the Contractor shall
arrange security for his own premises and storage area(s).

Health and Safety

The Contractor shall be responsible for the adequacy, stability and safety of his
operations on Site and shall comply with the Builder’s safety regulations applicable at
the Site (as well as local regulations for health and safety).

The Contractor shall be responsible for the safety, health and welfare of all persons
visiting or employed at the Site.

The Contractor shall ensure that the execution of the installation work complies with
the statutory requirements of all legislation relating to safety, health and welfare on
construction sites.

The Contractor shall submit to the Builder all necessary documentation needed for
site health and safety file. In particular, but not limited to, this should mean sufficiently
detailed Method Statements, descriptions, schedules and plans for all installation
work. The Contractor shall also be requested to take part in regular meetings and to
cooperate with Builder to cover all health and safety aspects.

16 SCOPE OF WORK
The Contractor is expected to perform the services described in Exhibit A [Division
of Responsibilities] and as further specified in the Exhibit C-E. The services will
include, but not limited to, the following activities:

• Sub-structure design based on actual site conditions (incl. soil

investigation)
• Local transportation of equipment supplied by Wärtsilä from anchorage
point to site (including beach landing and preparations for transportation
to site).
• Sub-structure installations including, but not limited to, soil improvement
(as needed), earthing network installation, conduit and cable installations,
site drainage, foundation installations etc.

This information is confidential and proprietary to Wärtsilä.

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• Site management and temporary installations during construction and

commissioning including, but not limited to, safety arrangements, site
security, temporary workshops, tools, machinery, site office, catering and
other arrangements needed for the works.
• Installation of equipment supplied by Wärtsilä as further described in the
appendices.
• Collaboration with Builder’s teams during pre-commissioning and
commissioning of the Power Plant.
• Warranty of performed services for 24 months.

The Contractor is obligated to follow the given material specifications and to supply
material certificates to the Builder. The used materials must be approved and according
to international standards. The handling of the materials has to be properly done during
transportation and at the site. The Contractor is responsible for transportation of
Contractor supplied material included in his scope.

17 EXECUTION PLAN
The Contractor to submit an Execution Plan for the Work clearly stating the expected
needed time for the Work under the Contractor’s responsibility as further specified in
Exhibit A [Division of Responsibilities].

18 SUMMARY OF QUOTATION ATTACHMENTS TO BE PROVIDED BY

CONTRACTOR
If some of the appendixes form part of another appendix (i.e. mobilisation plan form part
of execution plan), just add an ‘empty’ appendix and indicate in writing where to find it in
your submitted package (e.g. the information requested can be found in Appenix NN).

1. Appendix 1 Estimation of Quantities (BoQ’s in Excel format).

2. Appendix 2 List of names for proposed Sub-Contractors.
3. Appendix 3 Type and coverage of the insurance policy including copy of insurance
policy.
4. Appendix 4 Quality Plan for the Work
5. Appendix 5 Environmental Plan
6. Appendix 6 Execution Plan for the Work

19 EXHIBITS TO INVITATION TO TENDER DOCUMENT

The following exhibits will form part of the Tender Documents:

1. Exhibit A Division of Responsibilities

2. Exhibit B Bill of Quantities

i. Mechanical BoQ
ii. Electrical BoQ
iii. Civil BoQ

3. Exhibit C Installation Instructions

i. Mechanical
ii. Electrical
This information is confidential and proprietary to Wärtsilä.
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iii. Civil

4. Exhibit D Drawings & Layouts

i. Layouts
ii. Architectural Layouts
iii. Conduit Drawings
iv. Single Line Diagram
v. Main Flow Diagrams
vi. 3D Flying Video

5. Exhibit E Wärtsilä QHSE Requirements

i. New-Build EHS Guidelines for Project Subcontractors
ii. Wärtsilä EHS Contractor Requirements

This information is confidential and proprietary to Wärtsilä.