Date: 27 Nov, 2023

COMMERCIAL OFFER

Customer : Saudi Electricity Company

Project : CONSTRUCTION OF LIBRARY (JABAL KABBAH) 110/13.8 KV

SUBSTATION AND ITS INTERCONNECTION WITH MKC BSP,
MAKKAH-WOA

(PART I – SUBSTATION PORTION)

PTS – 23WN1048

Hyosung Spec No. : C41-4170-202310-4701

Contact Point Kiseon Kwon

(HQ, Seoul Korea) T : +82-2-707-6708 / M : +82-10-9443-3620
Email : kiseon@hyosung.com
Contact Point Ernest Lee
(Branch, Riyadh) T : 966-11-473-5480 (ext. 112) / M : +966-53-094-8139
Email : ehlee@hyosung.com
 Offer Sheet
IN COMPLIANCE WITH YOUR ESTEEMED INQUIRY
PLEASE BE ADVISED OUR BEST QUOTATION AS FOLLOWS;

AMOUNT(USD)
NO. DESCRIPTION Q'TY CIF/JEDDAH or
DAMMAM SEAPORT
A-1 110kV 40kA GIS 15 CB Included
A-2 PD Sensor only for 110kV GIS 1 Lot Included
A-3 Supervision for Installation 60 WMD Included
A-4 Supervision for Testing/Commissioning 34 WMD Included
A-5 Ocean Freight & Insurance 1 Lot Included
SUB TOTAL "A" Library S/S 5,008,800
B-1 3ph 60Hz 110kV 50/67MVA Power Transformer 6 SET Included
B-2 Supervision for Installation 90 WMD Included
B-3 Supervision for Testing/Commissioning 30 WMD Included
B-4 Ocean Freight & Insurance 1 Lot Included
SUB TOTAL "B" Library S/S 11,444,000
GRAND TOTAL (CIF JEDDAH or DAMMAM SEAPORT, A+B) 16,452,800

[Offer Condition]
1. Shipping Port shall be any Korean Seaport
2. For Delivery schedule, refer to the Attached General Terms and Conditions, 4. Delivery Schedule.
3. For Terms of Payment, refer to the Attached General Terms and Conditions, 5. Terms of Payment.
4. Country of Origin shall be Republic of Korea
5. Validity shall be 1 months from the date of offer sheet.
6. For detailed terms & conditions, please refer to the Attachment #2: General Terms and Conditions.
7. Operational Spare parts & Special tools shall be supplied as per the Attachment #1: OPERATIONAL SPARE
PARTS & SPECIAL TOOLS
8. The quoted price is valid only if Contractor place the order in Package Lot.
9. The cost for factory test (FAT) inspector is not included in this offer.
10. Mobile crane, surge arrestor, earthing transformer, neutral earthing resistor are not included in this offer.
Hyosung will provide only brackets for surge arrestor.
11. RTV coating is out of Hyosung’s scope of work.
12. SEED-Ⅱ(Mircrostation) is not included in our offer. In case requested by Contractor, 1,000 USD per Unit/CB shall
be charged to Contractor.
13. Contractor should be responsible for his own cost (Flight ticket, Accommodation) for participating FAT.
14. RTCC (AVR, TPI) is out of Hyosung’s scope of work.
15. For type and model of GIS, refer to Hyosung’s technical offer (Data Schedule, General Specification or Sub-
Vendor list.
16. Bay Control Unit and Bay Protection Unit are not included in this offer.
17. Quantity of CTs and location shall be as per our technical offer.
18. Manufacturer shall provide only Control Cable between GIS and LCC. Contractor will carry out cabling/termination
including ferruling, terminal block lug and Cable shroud (if needed) as per the provided cable list by Manufacturer.

Enclosed
Attachment #1 : Operational Spare parts & Special tools (N/A)
Attachment #2 : General Terms & Conditions

Sincerely Yours,

Jerry Cheunseo Park

General Manager
Hyosung Heavy Industries Corporation
Power Performance Unit
Global Sales Team_MENA
 Attachment#1: Operational Spare parts & Special tools
Not Applicable as per PTS

[Offer Condition]
* Detailed Price breakdown shall be provided at Contractual stage.

= Nothing Follows
 Attachment#2: General Terms and Conditions
1. Definitions:
Various Contractors who received HYOSUNG Heavy Industries Corporation’s offer: Contractor
HYOSUNG HEAVY INDUSTRIES CORPORATION: Manufacturer
Equipment: HYOSUNG'S Offered equipment in the Offer Sheet

2. Scope of work:
Manufacturer shall be responsible the followings;
Equipment Design, Manufacturing, factory test, sea worthy packing, sea transportation & insurance (Optional)
Manufacturer shall not be responsible for the followings;
Any type/special tests, inland transportation, site downloading, erection, testing & commissioning at site,
any tax, duties, expenses, fee, charge outside of Korea, any other material and work which are not mentioned in
offer

3. Effectiveness of the supply contract:

Supply Contract shall become in case following condition are completed.
Signing supply contract between Contractor and Manufacturer.
Remittance of advance payment mentioned in clause “5.Terms of Payment”

4. Delivery:
a. Equipment portion
8 months CIF from the manufacturing clearance or Base Design approval from Contractor or Client.

b. Spare parts / Special tools portion

Spare parts / Special tools (Optional) shall be delivered after 10 months (FOB) from release of option by
Contractor as per the list submitted during tender stage by Manufacturer. In case release of option will be made
after ten 10 months form date of contract by Contractor, price shall be escalated not more than 30% by
Manufacturer.
Note) In case that Contractor does not take the delivery of the equipment within two (2) weeks from the date of
successful FAT completion, then Contractor will pay for additional cost for storage at the rate of one (1)
percentage (the price of equipment) per week, the period of stock in Hyosung factory should not exceed 1 month
from the date of FAT completion.

5. Terms of Payment:
a. Equipment portion
20% Advance payment by Telex transfer within thirty (30) days after singing the supply contract against
Manufacturer's invoice.
80% Irrevocable L/C at sight to be opened within 30 days after date of Signing Contract for Each
Equipment/substation respectively.
b. Spare parts and special tools portion
20% Advance payment by Telex transfer shall be made at the event of option release
80% Irrevocable L/C at sight to be opened within 30days at the event of option release for Each
equipment/substation respectively.
c. Service portion (Supervision / Training at factory and site)
100% Advance payment has to be made thirty (30)days prior to the starting date of the service by Telex transfer
against invoice
 Note) If Contractor fails to pay by the due date, interest shall be charged on the amount overdue at the rate of ten
percent (10%) per year.

6. Letters of Credit:
The Contractor shall provide at the Contractor’s cost and expense and irrevocable Letter of Credit
Such letter of Credit will be opened by Contractor through a first class bank which accepted by Manufacturer.
Such letter of Credit shall be taking into consideration the following
1) Commercial invoice (Triple legalizing by Chamber of Commerce in Korea)
2) Bill of lading (Either Master B/L or House B/L shall be accepted)
3) Certificate of Origin (Triple legalizing by Chamber of Commerce in Korea)
4) Packing list

7. Warranty:
The Warranty period shall be expired eighteen (18) months from the date of the shipment or twelve (12) months
after date of PAC whichever comes first. Manufacturer shall provide a conditional bank guarantee at his cost and
expense of an amount equal to five percent of the supply contract for equipment, advised by first class Korean
bank and issued by a first class Bank and delivered to the Contractor after completion of remittance of
advance payment. Manufacturer’s contractual warranty shall cover design, materials and manufacturing
deficiencies for equipment sold. The Manufacturer shall correct deficiencies in the manner it seems appropriate.
However, The Manufacturer shall not be required fulfill any warranty obligation in the following conditions.
a. Deficiencies attributable to design, materials, or manufacturing techniques imposed by the Contractor and for
which the Manufacturer has expressed reservations.
b. Servicing of the equipment mentioned in the Supply Contract or by third parties under conditions not previously
approved in writing by Manufacturer.
c. Damages or degradation caused by error or negligence of the equipment user or by a force majeure or
unforeseeable circumstances.
d. Failure to comply with the Manufacturer’s instruction.
e. Routine maintenance or replacement or parts required by normal equipment wear or by equipment exposure to
inclement weather.
f. Manufacturer shall be responsible for repairing/replacement, re test at factory, supervision of site activity and
ocean freight charge. However any tax, duties, expense outside of Korea, re-erection, re-testing at site shall be
covered by Contractor.
g. Warranty shall be only granted, if erection, site testing and commissioning of the equipment are carried out
under the supervision of Manufacturer.

8. Vessel for Transportation:

Contractor shall be responsible for transportation from Korean port notified by Manufacturer to the designated
seaport mentioned in offer sheet.
In case of CIF, Manufacturer is responsible for transportation to the seaport mentioned in the offer sheet.
FOB date for equipment is subject to vessel schedule.

9. Packing:
Packing for Transportation is as per Manufacturer’s standard for export packing.

10. Suspension:
In case of any suspension prior to shipment of equipment respectively, Manufacturer has the right to claim
additional cost incurred from appointed date of shipment given by Manufacturer. The mentioned additional cost
 must be included but not limited to storage; Transportation cost, periodical maintenance, insurance charge,
reasonable amount for interest on delayed payment, and amendment of the Letter of Credit if needed. When
there is an occasion that Contractor suspends the proceeding more than 7days from notification of shipment by
Manufacturer, then Manufacturer has right to appropriate compensation(daily 0.1% of contract price) and to
terminate work.

11. Test and Inspection:

Factory inspection before shipment is the final. Factory test shall be as per IEC standard on equipment. However,
as an inspection, only one set of each type of equipment should be carried out. If an inspection is requested by
Client, their engineer, Contractor or any third party, all inspection fees such as air fair, accommodation,
international phone call, meal charge and any other fees for inspector shall be borne and paid by Contractor.
Factory test is supposed to be carried out as per approved test procedure. In case of additional tests, additional
charge will be paid to Manufacturer from Contractor. Each equipment of each substation, the Contractor has to
arrange the required inspector upon receipt of the request from the Manufacturer in 3 weeks advance notice
before commencing factory inspection.

12. Supervision:
a. Scope of the Service.
The Scope of the supervision for supervisor is limited to technical advice for erection and testing / commissioning
at site. Technical advice and other necessary information for erection and testing / commissioning of equipment
will be instructed to the authorized personnel of Contractor.
b. Conditions for supervision.
Contractor will cover necessary insurance for supervisor at site, international phone call, excess baggage cost,
meal charge, accommodation and local transportation on request of supervisor, fax, social insurance premiums,
personal income tax and any other tax, duties outside of Korea.
Manufacturer has right to evacuate supervisor temporarily in case of facing difficulties from Contractor due to any
danger or problems at site. Supervisor is not responsible for any losses, damages and accidents aroused from the
acts, negligence, omissions or fault caused by personnel and/or employee of Contractor.
c. Duration of Supervision.
Refer to the WMD with price in Commercial Offer.

13. Insurance:
The Contractor shall provide at its expense, insurance covering transportation/shipment from the port of Korea to
site. In case of CIF, Manufacturer shall provide at its expense, insurance covering transportation/shipment from the
seaport of Korea to the designated seaport.

14. Delay in Delivery:

In case that Manufacturer fails to meet the terms of delivery as mentioned herein due to reasons solely attribute to
the Manufacturer excluding force majeure events and Contractor - when he is not the Client - has paid penalties,
liquidated damages or damages to its Client due to this fact, then Contractor shall be entitled to claim as liquidated
damages a compensation at the rate of 0.3% (the price of each delayed equipment of each substation) per week
up to the total price of 5%.

15. Limit of Liability:

Liability shall be limited to the 100% of contractual amount excluding compensation for indirect damages and loss
of profits of any compensation regarding the implementation of this project.
16. Force Majeure:
If Contractor or Manufacturer is exposed to the danger of Force majeure such as act of God, war, hostilities,
invasion, act or foreign enemies, mobilization, requisition, embargo, fire, flood, typhoon, earthquake, strike and
 other events which could not be controlled, the time for execution of supply contract shall be extended by a
period equal to the effect of those caused.
Contractor or Manufacturer shall notice the other party of the occurrence of Force Majeure immediately by
telex/fax and then by airmail registered letter with evidence of the occurrence of Force majeure within 14days the
confirmation of the other party.
In case the consequences of Force majeure last for more than one hundred twenty (120)days, both parties shall
agree on the further execution of the supply through friendly negotiations.
In case no agreement is reached during the negotiations between the parties after a period of 120days, then
Contractor or Manufacturer could terminate the Supply Contract.

17. Governing Law and Dispute Resolution:

a. This Contract shall be governed by and construed in accordance with the laws of Korea.
b. All disputes and/or differences, controversies and questions directly or indirectly arising at any time under,
out of, in connection with in relation to this Contract and the claims and counter claims arising under this
Contract including, without limitation, all disputes and/or differences, controversies and questions relating to
the validity, interpretation, construction, performance and enforcement of this Contract shall be at the first
instance be attempted to be amicably settled between the parties.

18. Arbitration:
Any dispute, question of difference between the parties that aroused directly or indirectly out of this Agreement,
whether touching the meaning, construction and implementation thereof or otherwise, shall, if the Parties
concerned fail to agree and settle the same by and between themselves be submitted for Arbitration by either
Party to the International Chamber of Commerce in Korea. Each party shall nominate one arbitrator on its behalf.
The nominated arbitrators shall in turn appoint a third person to act as president a thee person arbitration team.
The subject of arbitration panel will be decided by the majority of votes and it shall be final and binding for the
both Parties. Arbitration shall be held in Seoul, Korea, In English language under the Rules of the International
Chamber of Commerce.

19. Procurement / Manufacturing:

The Manufacturer shall commence procurement of compartment and manufacturing of equipment, based on
approval of design by Client. Contractor will get approval of all kind of document submitted by Manufacturer from
Client within fourteen (14) days from the submission. Otherwise, it will be considered as approval after twenty one
(21) days from date of submission of document or data. If approval of any documents or data is delayed, delivery
also will be affected by delay of approval.

20. Custom duties, Tax:

The Contractor shall be responsible for any tax, custom duties or other charge in any kind or whatsoever imposed
outside Korea.

21. Permits and Licenses:

The acquisition of the permits and license outside of Korea shall be covered by the Contractor. The Contractor
shall be responsible for obtaining all license, permits and approval outside of Korea in timely manner for the
Manufacturer’s successful execution of his obligation.

22. Language:
All correspondences, documents, records, drawings, deigns and etc… should be in English only.
23. Bankruptcy:
If Contractor becomes bankrupt or in case makes any agreement with its creditors compounding debts or being a
limited company, any proceedings are begun in respect of it applying for the appointment of liquidator,
administrator, receiver or similar official for it or all or any substantial part of its assets or seeking an order of relief
against it as debtor or under any law relating to insolvency, readjustment of debt, reorganization, administration
or liquidation, the Manufacturer has right a cancellation of supply contract by written notice.

24. Submittal of document:

The Manufacturer will submit the technical data as follows;
Civil loading data, Outline (TR), Heat 4 weeks after condition of clause “3
loads, AC/DC loads Effectiveness of the supply contract”.
Package Base Design 4 weeks after approval of above#1
Schematic Drawing 6 weeks after approval of above#2
O&M Manual 1 month before shipment (FOB)
Factory test procedure 2 months before factory test
As built drawing 1 month after receiving Mark up
drawing form Contractor

SLD(GIS), Layout(GIS), Civil loading 4 weeks after condition of clause “3

data, Heat loads, AC/DC loads Effectiveness of the supply contract”.
Package Base Design 4 weeks after approval of above#1
Schematic Drawing 6 weeks after approval of above#2
O&M Manual 1 month before shipment (FOB)
Factory test procedure 2 months before factory test
As built drawing 1 month after receiving Mark up
drawing form Contractor

25. Cancellation of Contract:

The Manufacturer shall be entitled to the supply contract in whole or in part by giving notice to the Contractor in
case of the followings.
a. Failure by Contractor to perform any provision of this agreement ,and when such failure is not cured within
the appropriate.
b. Insolvency, bankruptcy, liquidation or dissolution of the Contractor.
c. In case of clause “10. Suspension”

When cancellation of the supply contract has occurred, Contractor is responsible for the following payment
a. If the supply contract is cancelled within 30 days after the date of the Effectiveness of the supply contract, 20%
of the total contract amount will be paid by contractor to the manufacturer.
b. If the supply contract is cancelled more than 30 days after the date of the Effectiveness of the supply contract,
50% of the total contract amount will be paid by contractor to the manufacturer.
c. If the supply contract is cancelled more than 60 days after the date of the Effectiveness of the supply contract,
80% of the total contract amount will be paid by contractor to the manufacturer.
d. If the supply contract is cancelled more than 90 days after the date of the Effectiveness of the supply contract,
100% of the total contract amount will be paid by contractor to the manufacturer.

26. Confidential and Intellectual property:

The Contractor shall not use all kind of information received from Manufacturer in related to the Contractor for
any purpose other than the execution of the supply contract. The Contractor shall not disclose any information,
 document, and data that received from Manufacturer in related to the contract without the written consent of
Manufacturer.

27. Responsible Scope Between Contractor and Manufacturer:

a. Contractor is responsible for concrete embedded hardware including accessory such as cable tray, anchor
bolts, grounding cable, etc.
b. Submittal of document (For each equipment & substation)
For Base Design, schematic drawing and O&M manual, the Manufacturer will provide one (1) hard copy/one
(1) soft copy, then the Contractor will copy and submit to the Client as per required quantity.
In case of factory test report, the Manufacturer will submit one (1) hard copy only. Other technical data will be
submitted through email.
c. Submittal of technical data from the Manufacturer (For each substation)
Upon receipt of document from Manufacturer, the Contractor should confirm the status of receipt by submittal
to the Client to the Manufacturer within one (1) week.
d. Erection work (For each substation)
The Contractor will carry out site erection work including all required equipment/tools such as gas handling
machine / Oil treatment equipment, and manpower to complete erection. However, special tool which can be
obtained by only Manufacturer will be provided by Manufacturer if needed.
e. Performance of site testing & commissioning (For each substation)
The Contractor will carry out site testing & commissioning in accordance with the Client requirement including
all needed equipment including High Voltage test equipment and man power.
f. Supervision for erection (For each substation)
Upon request of Contractor, Manufacturer will depute supervisor (personnel authorized by Manufacturer) for
erection in one (1) mobilization for each equipment from Korea or Riyadh office. Five (5) Days are equal to
45 hours from Sunday to Thursday. All kind of necessary insurance for supervisor in the designated country will
be covered by Contractor. Contractor will advise Manufacturer for delegation of supervisor one month ahead of
schedule.
g. Supervision for testing/commissioning (For each substation)
Upon request of Contractor, Manufacturer will depute supervisor (personnel authorized by Manufacturer) for
testing/commissioning in one (1) mobilization for each equipment from Korea or Riyadh office. Five (5) days are
equal to 45 hours from Sunday to Thursday. All kind of necessary insurance for supervisor in the designated
area/country will be covered by Contractor. The Contractor will advise Manufacturer for delegation of supervisor
on month ahead of schedule.
Note f & g) : If Contractor needs overtime, it shall be applied 200 USD per hour with confirmed hours and
payment will be made by telex transfer before commencing supervisor’s overtime for each substation.
If Contractor wants to extend supervision period for each substation, Manufacturer will extend its period with ‘
advance payment (Telex Transfer) and confirmed period by Contractor. Additional charge will be 1,000 USD
per working days. In case actual man-days for supervision will be less then aforesaid at clause 12.c. limited
working days for each substation, then no deduction will be made from Manufacturer for each substation.
h. Accommodation for supervisor (For each equipment & substation)
The Contractor will provide accommodation (above 4 star hotel or equivalent furnished apartment) & meal
including non working days such as Holiday & Friday. Also, Contractor will provide office at substation during
supervision of erection & testing/commissioning. In case if additional supervision days are required by
Contractor, aforesaid accommodation for supervisor will be provided by Contractor.

i. Local transportation for supervisor (For each equipment & substation)

The Contractor will provide above 1600cc vehicle (including fuel) during supervision of erection and
 testing/commissioning including non working days such as Holiday and Friday. In case if additional
supervision days are required by Contractor, the same vehicle (including fuel) will be provided by the
Contractor.
j. Factory test inspection (For each equipment & substation)
The Contractor will arrange inspector’s round flight tickets from/to Riyadh/Factory as well as some traveling
expense such as pocket money, if needed. Manufacturer will cover accommodation, meal and local
transportation from/to Hotel/Factory for inspectors with following condition.
Daily 1,000 USD per inspector. Actual Calculated price for inspector will be remitted by T/T 30days prior to
commencing factory inspection.
k. Factory training (if applicable)
100% advance payment by Telex Transfer 30days prior to the starting date of the training. Manufacturer will
provide accommodation, meal and local transportation from/to Hotel/Factory in Changwon. Other cost such as
Round Air Flight Ticket from/to Riyadh/Changwon factory, daily allowance, laundry and international phone
call will be covered by Contractor. In case actual period/trainees are less than proposed number of trainees
and period, no deduction shall be made from Manufacturer.
l. Site Training (if applicable)
100% advance payment by Telex Transfer 30days prior to the starting date of the training. All cost at site will
be covered by Contractor and actual schedule shall be arranged by Contractor during Manufacturer’s
supervision period. In case actual period/trainees are less than proposed number of trainees and period, no
deduction shall be made from Manufacturer.
Note k & l) For Cost of training, refer to the price in Commercial offer.
m. Technical clarification
Manufacturer is responsible for submittal of technical clarification upon Client’s request
n. RTCC (Remote Tap Changer Control), its accessories such as Meters, Surge Arrestor, ACSR Conductor
between T/F Bushing and GIS wall through Bushing(SF6/AIR) are Contractor's Scope of Work.
o. If SAS system will be applied, the contractor will be responsible for interfacing between TR and SAS system at
design stage. If wiring between TR and SAS system is required, it shall be made by the contractor at site.
p. As built drawings (For each substation)
Manufacturer will provide one(1) hard copy and one(1) soft copy within 30days(from the date of arrival in
Korea) upon receipt of Contractor's Mark up drawing. However, minor modification of as built drawings will be
covered by Contractor.
q. Modification at site (For each equipment & substation)
Since factory test is considered as final, modification at site should be considered as additional work. Hence,
any additional modification at site will be done by Contractor. However, if defective material such as GD, MCB
and relay is found during the warranty period, Manufacturer will replace/repair material and provide
supervision. But all kind of site works will be done by Contractor.
r. Oil treatment for cable compartment in Transformer (if applicable)
When erection supervisor (within limited man days) from Manufacturer is available at site, oil treatment for
cable compartment, which is linked to GIS shall be supervised by the supervisor with free of charge. However,
after demobilization of erection supervisor, additional cost shall be required as follows;
USD 20,000.00 per each transformer. (100% advance payment by Telex Transfer)
After remittance of actual amount, Manufacturer will dispatch supervisor accordingly and supervision condition
will be same as clause “f, h, i”. Supervision will not excess more than ten (10) working days for each
Transformer.
s. Cable between GIS and LCC including interlocking cabling for LCC (For each substation)
Manufacturer will provide control cable for GIS including Cable Tray (for only GIS main body in the Room, not
in basement of substation) and Cable gland only. Contractor will carry out cabling/termination including
ferruling, terminal block lug and Cable shroud (if needed) as per the provided cable list by Manufacturer.
t. When erection supervisor (within the limited man days) from Manufacturer is available at site, de-
 gassing/gassing for cable compartment shall be supervised by Manufacturer erection supervisor with free of
charge. However, after demobilization of erection supervisor, additional contract shall be required as follows;
Option1. USD 10,000.00 degassing/gassing only per cable compartment
Option2. USD 20,000.00 degassing/gassing plus installation of test bushing per cable compartment.
After remittance of actual amount, Manufacturer will dispatch supervisor accordingly and supervision condition
will be same as clause “f, h and i”. Supervision will not excess more than ten (10) days for each cable
compartment.

28. Appendix:
The following technical document, which was submitted during tender stage and detailed scope of work between
Contractor and Manufacturer can be treated as part of this contract.

29. Other terms and conditions:

Other terms and conditions, which are not mentioned herein is subject to the Manufacturer’s written agreement.

= Nothing Follows =

Sincerely Yours,

Jerry Cheunseo Park

General Manager
Hyosung Heavy Industries Corporation
Power Performance Unit
Global Sales Team_MENA