SUB DEFINITION 8

- Guarantee Period is the period, set forth in Art…… of the Plant Contract, following the provisional takeover and extended according to Art……. Of the Plant Contract.

- 'Implementation Procedures' mean the procedures issued by the Owner pursuant to Part 2, Clause 66.

- 'Individual Tests' means those tests carried out on plant items or plant systems in whole or part which will enable those items or systems to be made available for Initial Operation to be carried out.

- 'Initial Operation' means total or part Plant systems which are available for initial runs to be carried out after synchronising including operation at loads up to full load and load rejection tests.

- 'Letter of Intent' means the official notice issued by the Owner notifying the Contractor that his Bid Proposal has been accepted and that the Owner desires to enter into a mutually acceptable Contract.

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SUB DEFINITION 7

- First Core Loading is the first complete core loading of fuel assemblies and core components for the reactor delivered under the fuel contract.

- 'Force Account Work' means additional work ordered by the Owner and paid for on a Force Account Work basis as provided in Part 2, Clause 70.

- Fuel Assembly is assembly of fuel rods/fuel elements containing nuclear material (supplied by contractor) together with structural components such as spacers, tie plates, etc., designed, fabricated and delivered by the Contractor under Fuel Contract.

- Fuel Contract is the contract entered into between the Owner and the Contractor which exclusively contains the entire agreement between them for the design, fabrication, quality assurance and control, delivery and associated services for the first core loading, the spare nuclear fuel and the first reload batch as well as options for reload batch and other options concerning in-core fuel management.

- Fuel fabrication is the manufacture of the Contractor’s Nuclear Fuel including incorporation of nuclear material.

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SUB DEFINITION 6

- Engineer/Consultant/Representative is person or an organization or its representative as may be appointed by the Owner, to assist and support him in technical, commercial or legal matters. Such Consultant or Representative shall have no direct relations or controlling interest in firms which manufacture and supply fuel. The duties and authority of the engineer may include the following:

1. to watch and supervise the works to ensure that the works are carried out in accordance with the contract.

2. to give the instruction and direction as the work proceed,

3. to give the approval and/or comments on information and documents submitted by the Contractor.

4. to carry out other duties to be stated in the contract

- 'Final Acceptance Certificate' means the certificate issued by the Owner to the Contractor, at the end of the Warranty Period.

- 'Final Contract Price' means the aggregate of :

- the Total Contract Price;

- the amounts of increase or decrease payable to the Contractor in accordance with Clause 47 (Variations) herein;

- the amounts payable to the Contractor in respect of work performed on Force Account basis in accordance with Part 3, Clause 1; subject to the deduction of any monies due to the Owner by the Contractor in accordance with the Contract.

- Final price is the price to finally paid to the Contractor and being the contractual price, adjusted as provided by the fuel contract.

- Final takeover is take over the plant by the Owner at the end of Guarantee Period.

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SUB DEFINITION 5

- Delivery Date (DD) (for nuclear fuel) is the date on which the last of the fuel assemblies and core components comprising the first core loading and/or the annual reload batch arrives at the site.

- Demonstration Run, is a period of operation to demonstrate Plant performance over a period of….. consecutive days. The demonstration run begins after the successful completion of the 24 hours Performance Test.

- DOE is US` Department of Energy and all related divisions and operation or any successor organization.

- Effective Date is the date upon which both the Plant Contract and the Fuel Contract have been signed by parties.

- 'Effective Date of Contract' shall means the date when the following preconditions have been fulfilled :

- Signing of Contract.

- Readiness of financing

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SUB DEFINITION 4

- 'Contract Price' means the sum entered in the Agreement as the Coal Fired steam power Plant Contract Price.

- Core Components are burnable absorber assemblies or plug assemblies delivered by the Contractor under Fuel Contract. For the First Core Loading, this definition shall also include primary and secondary neutron sources.

- Cycle is period between two consecutive shutdowns for scheduling refuelling.

- 'Contract Schedule' means the schedule prepared as defined in Part 5, Schedule 4.

- 'Day' means calendar day.

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SUB DEFINITION 3

- 'Contract' means the Agreement entered into by the Owner and the Successful Contractors and comprises the following documents.

- Change mutually agreed to during Contract Negotiations.

- The General Conditions of Contract

- The Special Conditions of Contract

- The Instructions to Contractors

- The Technical Requirements

- The Bid Document Drawings

- The Addenda

- The Bid Proposal

- Contract Documents (for nuclear fuel) are the documents listed in Art.2.4.1. therein.

- Contract Specifications (for nuclear fuel) are the document being defined as such in Art.2.4.1

- ‘Contractor' means the person or persons, firm, company, joint venture or consortium with whom the Owner has entered into a Contract and includes the Contractor's authorised representatives, successors and permitted assigns. The parties comprising the Contractor shall be and remain jointly and severally liable hereunder.

- Contractual Date is the date guaranteed by the Contractor for the provisional Takeover (or any other date determined in accordance with Art……of the Plant Contract).

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SUB DEFINITION 2

- 'Commercial Operation' signifies that the Initial Operation, Reliability Run and Performance Tests have been successfully completed for the Nuclear Power Plant. The Owner shall separately test, take over each unit, together with the system and subsystems directly related thereto and the remaining unit.

- 'Commissioning' is period of testing and measurements starting with initial fuel loading and power raising in which the performance of the Plant is demonstrated with regard to startup, shutdown, part-load operation, load changing capabilities, and all other modes of operation and is concluded by continuous 24-hour Performance Test.

- 'Completion of the Contract' means the issue of the last Final Acceptance Certificate.

- 'Completion of the Works' means that all of the Works have been taken over by the Owner.

- 'Construction Equipment/Plant' means all appliances or things of whatsoever nature required in or about the execution, maintenance or completion of the Temporary Works (as hereinafter defined) and execution and completion of the Works but does not include materials or other things intended to form or forming part of the Permanent Works.

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SUB DEFINITION 1

- 'Access' means admittance to a portion of the Site by the Owner.

- Agreement is the document signed by the Owner and the Contractor which specifies the documents being part of the Fuel Contract or Plant Contract, and which express the agreement and the acceptance of the Fuel Contract or Plant Contract by the Owner and the Contractor.

- ‘Approval', 'Approved' means approval and approved in writing. Such approval does not relieve the Contractor from his obligation to execute the Works strictly in accordance with the Contract.

- 'Bid Document Drawings' means Drawings referred to in the Technical Requirements including standard Drawings.

- 'Certificate of Engineering/Manufacturing Progress' means a certificate issued by the Owner signifying that, in the opinion of the Owner the amount in the application for payment accurately represents the value of the work executed. The Owner will measure all decisions and opinions against the terms of the contract. Owner will delegate its surveyor or his own engineers to the manufacturers for inspections and certifications.

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DEFINITION

In the Contract (as hereinafter defined) the following words and expressions shall have the meanings hereby assigned to them except where the context otherwise requires:

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Reciprocal Trade Undertaking

- The Bidder shall submit, as part of his proposal, a letter of Undertaking in accordance with the documents contained in Appendix-H. Copies of “List of Indonesian Export Commodities Available for Additional Export” and of the “List of Indonesian Commodity Associations and Exporters” referred to in the Letter of Undertaking are available from the Department of Trade upon request.

- Prior to and as a condition of Contract signing, the successful Bidder (or any affiliate thereof or other third party acceptable to the Department of Trade) will be expected to enter into arrangements with one more Indonesian exporters, designed to satisfy his obligations under the letter of Undertaking and otherwise satisfactory to the Department of Trade.

- Each Bidder is urged to initiate discussions with such Indonesian exporters promptly after the submission of his Bid proposal in order not to delay Contract signing should he be selected for Contract negotiations.

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Use of Local Resources

The Bidder shall maximize utilization of locally available materials as far as they meet the requirements of the Specifications, and Indonesian nationals for labor, skilled workers and supervisory services in accordance with the Indonesian Labor Act., especially on Labor Social Security Program and Safety of Work. Preference in the hiring of local labor shall be given to residents within the immediate vicinity of the project site.

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Performance Security

- The Contractor shall furnish at his cost the Owner the Performance Security in the amount of five (5) percent of the agreed Contract Price. The Performance Security shall be in currencies of Indonesian currency for Local Currency Portion and in the currency of the Bidder’s country, subject to acceptance of the Owner, and/or in U.S. Dollar for the Foreign Currency Portion according to the Contract Price.

The Performance Security shall be in the form of an unconditional bank guarantee, or a bond or in some other form acceptable to the Owner issued by a financial institution acceptable to the Owner.

The Performance Security shall insure the due and proper performance of the Contract and the payment of any obligations, damages, liquidated damages or costs for which the Contractor may become liable to the Owner. Failure by the Contractor to provide or maintain the Performance Security as provided in this Clause shall be a material breach of the Contract. The Performance Security shall be adjusted every twelve (12) months reflecting the change in the Contract Price in accordance with the General Terms and Conditions.

- Failure of the successful Bidder to comply with the requirements of Clause 1.31. and Sub-Clause 1.32.1) shall constitute sufficient grounds for the annulment of the award and forfeiture of the bid security.

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Signing of Contract Agreement

- At the same time that the successful Bidder provides the performance security, the Owner will furnish the Bidder the Form of Contract Agreement provided in the Bid Documents, incorporating all agreements between the parties.

- Within fourteen (14) days of receipt of the Form of Contract Agreement, the successful Bidder shall sign the Form and return it to the Owner.

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Notification of Award

- Prior to the expiration of the period of Bid validity indicated in Clause 1.13., the Owner will issue a Letter of Intent to the successful Bidder for discussion and finalization of the Contract.

- Upon the completion of the contract discussion, the results of contract discussion will be submitted to the higher Indonesian Government authorities for approval. Upon the obtaining of the approval, the successful Bidder shall submit to the Owner a performance security.

- Ten (10) original copies of the Form of Contract Agreement will be prepared by the Owner for signing. The contract shall be written in English language, except for administrative aspects, operation, maintenance, and training manuals shall be written in Indonesia and English languages. The signing of the Contract by the Owner and the Bidder will be in Jakarta, Indonesia. On conclusion of Contract negotiations, the successful Bidder shall provide the documents listed in the Form of Contract Agreement for incorporation into the Contract Document. These shall be delivered to the Owner no later than 14 days prior to the date established for Contract signing to enable copies to be bound into the ten (10) original copies of the Contract Document.

- After signing of the Contract Documents, two copies will be issued to the Contractor. The Contractor shall prepare thirty-six (36) copies of the conformed Contract Documents for the Owner.

- The successful Bidder shall submit an appropriate power of attorney, the execution of which by the grantor thereof shall be notarized by a Notary Public (Public Registrar), or other evidence satisfactory to the Owner evidencing the authority of the persons authorized to sign the Contract.

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Owner’s Right to Accept any Bid and to Reject any or all Bids

The Owner reserves the right to accept or reject any Bid, and to annul the bidding process and reject all Bids, at any time prior to the award of Contract, without thereby incurring any liability to the affected Bidder or Bidders or any obligation to inform the affected Bidder or Bidders of the grounds for the Owner’s action.
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Award

Subject to Clause 1.29., the Owner will award the Contract to the Bidder whose Bid has been determined to be substantially responsive to the Bid Documents and who has offered the Final Lowest Evaluated Bid Price.

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Evaluation and Comparison of Bids

- The Owner will evaluate and compare only the Bids determined to be substantially responsive in accordance with Clause 1.24.

- In evaluating the Bids, the Owner will determine for each Bid the Evaluated Bid Price by adjusting the Bid Price as follows:

- Making any correction for errors pursuant to Clause 1.25;

- Excluding Provisional Sums and the provision if any for Contingencies in the Price Schedules - Summary;

- Making an appropriate adjustment for any acceptable variations, deviations or alternative offers submitted in accordance with Clause 1.15.; and

- Converting the amount resulting from applying a) to c) above to a single currency in accordance with Clause 1.26

- The Owner reserves the right to accept or reject any variation, deviation or alternative offer. Variations, deviations, alternative offers and other factors which are in excess of the requirements of the Bid Documents or otherwise result in the accrual of unsolicited benefits to the Owner shall not be taken into account in bid evaluation.

- For comparison of Bids, Value Added Taxes (PPN) will not be considered.

- The estimated effect of the price adjustment provisions of the General Terms and Conditions, applied over the period of execution of the Contract, shall not be taken into account in Bid evaluation.

- If the Bid of the successful Bidder is seriously unbalanced in relation to the Owner’s estimate of the cost of work to be performed under the Contract, the Owner is entitled to reject the unbalanced Bid or may require the Bidder to produce detailed price analyses for any or all items of the Schedules of Prices, to demonstrate the internal consistency of those prices with the construction methods and schedule proposed. After evaluation of the price analyses, if in the opinion of the Owner it is judged that the Bid of the successful Bidder is substantially unbalanced, the Owner may require the successful Bidder to adjust such unbalance with no increase of the total amount of bid price or to increase the amount of the Performance Security set forth in Clause 1.32. to a level sufficient to protect the Owner against financial loss in the event of default of the successful Bidder under the Contract.

- Determination of the 2nd Evaluated Bid Price taking account of Domestic Preference

- Bidders who use the local products defined in Clause 1.8. of the General Technical Specifications are eligible for at maximum 15 % margin of preference in the comparison of their Bids with those Bidders who do not qualify for the preference.

- The following procedure will be used to apply the margin of preference.

- Calculation of Ratio of Local Products (RLP)

- Calculation of Margin of Preference (MP)

MP = (Highest Ratio of Local Products among all Bidders - RLP) ´15 %

- The 2nd Evaluated Bid Price taking account of Domestic Preference

= Total Amount of L/C plus F/C of EBP ´ (1 + MP)

L/C = Local Currency

F/C = Foreign Currency

EBP = Evaluated Bid Price

- Alternative offers, where solicited or permitted, will be evaluated separately, in accordance with the provisions of Clause 1.15., and shall be subject to the margin of preference in accordance with this Clause.

- Determination of the 3rd Evaluated Bid Price considering the Interest and Financial Costs.

The 3rd Evaluated Bid Price will be determined for each Bid by adding the interest and financial costs to the 2nd Evaluated Bid Price with Domestic Preference counted. The interest and financing costs will be estimated by applying the terms and condition of the Offer of Finance proposed by each Bidder to the following standardized disbursement schedule of the 2nd Evaluated Bid Price from the commencement of the Works under the Contract to the release of retention money at the end of the Guarantee Period;

Disbursement Schedule

Year Percent to the Bid Evaluated Price

1^st

2^nd

3^rd

4^th

5^th

6^th

- The Final Lowest Evaluated Bid Price will be determined based on the following:

- Levelized Discounted Cost per net kWh

- Total present worth of the 3rd Evaluated Bid Price, and

- The Owner’s Estimate.

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Conversion to Single Currency

- The Owner will convert the amounts in various currencies in which the Bid Price is payable (excluding Provisional Sums) to Indonesian currency at the selling rates established by the Bank Indonesia on the date specified for the opening of Bids .

- Bidder is not required to fill up the spaces and columns specified for “Total Equivalent Prices in Indonesian currency” which are shown in the Price Schedules, and shall leave them blank. Such spaces and columns are meant to be used for the Owner’s bid evaluation purpose.

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Correction of Errors

- Bids determined to be substantially responsive will be checked by the Owner for any arithmetic errors. Errors will be corrected by the Owner as follows:

- Where there is a discrepancy between the amounts in figures and in words, the amounts in words will govern; and

- Where there is a discrepancy between the sum of the itemized “total prices” and the corresponding “grand total”, the sum of “total prices” will govern. In case of any discrepancy between the itemized prices in the Price Schedules and the product of the quantity and the quoted unit price, the quoted unit price and the quantity shall govern. For the purpose of evaluation and price adjustment, if specifically provided for in the Bid Documents, the Bidders shall also indicate the breakdown of the various unit and total prices called for in the Price Schedules.

- The amount stated in the Form of Bid will be adjusted by the Owner in accordance with the above procedure for the correction of errors and, with the concurrence of the Bidder, shall be considered as binding upon the Bidder. If the Bidder does not accept the corrected amount of Bid, his Bid will be rejected, and the bid security may be forfeited in accordance with Sub-Clause 1.14.6).

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Examination of Bids and Determination of Responsiveness

- Evaluation of the Bids will be carried out based on 1000 Mw(e) class of PWR to determine the lowest evaluated bid.

- Prior to the detailed evaluation of Bids, the Owner will determine whether each Bid (i) has been properly signed; (ii) is accompanied by the required securities; (iii) is substantially responsive to the requirements of the Bid Documents.

- A substantially responsive Bid is one which conforms to all the terms, conditions and Specifications of the Bid Documents, without material deviation or reservation. A material deviation or reservation is one (i) which affects in any substantial way the scope, quality or performance of the Works; (ii) which limits in any substantial way, inconsistent with the Bid Documents, the Owner’s rights or the Bidder’s obligations under the Contract; or (iii) whose ratification would affect unfairly the competitive position of other Bidders presenting substantially responsive Bids. Material deviations or reservations include the following, but not limited thereto:

- Non-submittal of FSAR of Reference Plant

- Non-submittal of Official Licenses for Reference Plant

- Non-submittal of Final Acceptance Certificates of Reference Plant

- Non-submittal of Certificate from the plant owner of achievement of the required operation performance of Reference Plant.

- If a Bid is not substantially responsive, it will be rejected by the Owner, and may not subsequently be made responsive by correction or withdrawal of the nonconforming deviation or reservation.

- Any offer containing the Time for Completion beyond the dates provided for in the Bid Documents shall be deemed to be a material deviation or reservation and will be rejected by the Owner as being not substantially responsive. The Owner reserves the right to change the time for completion in the Bid Documents.

- The Owner may waive any minor informality or nonconformity or irregularity in a Bid which does not constitute a material deviation, provided such waiver does not significantly and adversely affect any other Bidder.

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Clarification of Bids

To assist in the examination, evaluation and comparison of Bids, the Owner may, at his discretion, ask any Bidder for clarification of his Bid, including breakdowns of unit rates. The request for clarification and the response shall be in writing or by cable, but no change in the price or substance of the Bid shall be sought, offered or permitted except as required to confirm the correction of arithmetic errors discovered by the Owner in the evaluation of the Bids in accordance with Clause 1.25.

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Process to Be Confidential

Information relating to the examination, clarification, evaluation and comparison of Bids and recommendations for the award of a contract shall not be disclosed to Bidders or any other persons not officially concerned with such process.

Any effort by a Bidder to influence the Owner’s processing of Bids or award decisions may result in the rejection of the Bidder’s Bid.

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Bid Opening

- The Owner will open the Bids, including modifications made pursuant to Clause 1.20. In the presence of the Bidders’ representatives who choose to attend at _____ A.M. on .............................. , 200__ at the following location:

(Name of Place)

(Address)

The Bidders’ representatives who are present shall sign a register evidencing their attendance.

- Bids for which an acceptable notice of withdrawal has been submitted pursuant to Clause 1.20. It shall not be opened.

- The Bidders’ names, the total amount of each Bid and of any Alternative Bid, any discounts, the presence or absence of bid security, and such other details as the Owner may consider appropriate, will be announced by the Owner at the Bid opening.

- The Owner shall prepare minutes of the Bid opening, including the information disclosed to those present in accordance with Sub-Clause 1.21.3).

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Modification and Withdrawal of Bids

- If a Bidder wishes to withdraw his Bid before the time set for the Bid opening, he may do so without prejudice to himself by presenting his request in writing to the Tendering Committee of the Owner (Address), and his Bid, when reached, shall be handed back to him or his authorized agent unread.

- Negligence of a Bidder in preparing his Bid confers no right for the withdrawal of the Bid after the Bid opening has commenced.

If a Bidder, who has already submitted his Bid, wishes to change his Bid, he may do so any time up to the date for the Bid opening by presenting his request in writing to the Tendering Committee of the Owner (Address), provided that the resubmitted Bid shall be received prior to the time set for the Bid opening.

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Deadline for Submission of Bids

- The Bidder shall, within one month of receipt of the Bid Documents, submit ten (10) copies of a FSAR of the reference plant for the unit to be offered.

- Bids shall be submitted in ten (10) copies, one (1) original and nine (9) certified copies of the original, consisting of the documents as provided in Clause 1.10. of this Volume and delivered to the Tendering Committee of the Owner (Address), who is authorized to receive and open the Bids, on the time, date and place for opening the Bids specified in the Bid Documents. Bids received after the time set for the Bid opening will not be accepted and shall be returned unopened.

The Bidders shall also send a copy of complete set of the Bid to the Engineer. Late arrival of that copy shall not be a cause for rejection of the Bid. The Owner shall have no responsibility for the premature opening of any Bid not properly addressed and identified.

- The Owner may, at his discretion, extend the deadline for submission of Bids by issuing an amendment in accordance with Clause 1.8., in which case all rights and obligations of the Owner and the Bidders previously subject to the original deadline will thereafter be subject to the deadline as extended.

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Sealing and Marking of Bids

- Each Bid and its accompanying Bid security shall be surely sealed and marked as follows:

“Bid for First Indonesian Nuclear Power Plant at Muria Peninsula

Region, Central Java, INDONESIA submitted by _____________.”

Format and Signing of Bid

- The Bidder shall prepare one original and nine copies of the documents comprising the Bid as described in Clause 1.10 of the Instructions to Bidders and clearly marked “ORIGINAL” and “COPY” as appropriate. In the event of discrepancy between them, the original shall prevail. Telegraphic Bids will not be considered.

- The original and all copies of the Bid shall be typed or written in indelible ink.

- Bids shall be submitted in the prescribed Bid forms and in strict compliance with the requirements of these instructions. Bidders shall exercise due care in the preparation of the Bids. The proper spaces on the Form of Bid, Price Schedules, and Schedules of the technical data and information shall be duly filled in and all designations and prices fully and clearly set forth. Data required to be supplied by the Bidder shall be submitted together with the Bid. Partial fulfillment of these requirements may render the Bid defective and such Bid may not be considered for award of the Contract.

- The Bid shall contain no alterations, omissions or additions, except those to comply with instructions issued by the Owner, or as necessary to correct errors made by the Bidder, in which case such corrections shall be initialed by the person or persons signing the Bid.

- Each Bid shall be signed by the Bidder or his authorized representative with his usual signature and shall show the Bidder’s full business address. Bids by partnerships shall be signed with the partnership’s name by one of the members of the partnership or by an authorized representative. Bids by corporations shall be signed either under seal in its name and on its behalf by two duly authorized officers of the corporation, or shall be accompanied by a resolution of its board of Directors authorizing such officers to sign on behalf of the corporation. Bids by joint operations shall be signed by the duly authorized representative of the joint venture/consortium. The names of all persons signing shall be typed or printed directly below the corresponding signatures. A Bid by a person who affixes to his signature the word “president”, “secretary”, “agent”, or other designation without disclosing his principal shall be held to be the Bid of the individual signing. Satisfactory evidence of the authority of the person signing on behalf of a corporation or partnership shall be furnished to the Owner. In each and every case, Bid proposals shall be signed in the presence of a Notary Public (Public Registrar) who shall append his seal to the form of Bid Document.

- For the convenience of the Owner, the documents to be submitted with the Bid shall generally be arranged in A4 size and the page layout shall preferably be set in such a manner that the line spacing in a paragraph is one-and-one-half spacing and enough margins are given, particularly for binding the documents in a way to allow easy reading.

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