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TENDER NO.: GAIL/ND/BD/C&P/1406/8000006832 E-Tender No. 8000006832
GAIL (India) Limited
16, Bhikaiji Cama Place, R.K.Puram,
New Delhi – 110066
Phone Nos. (+91)11-26172580; 26182955
Tender Document
for
TIME CHARTER HIRING OF LNG VESSELS
(TENDER NO.: GAIL/ND/BD/C&P/1406/8000006832)
(E-TENDER NO. 8000006832)
ATTENTION
THIS IS AN ELECTRONIC TENDER (E-TENDER)
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 2 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
Request for Proposal (RFP)
Tender No. GAIL/ND/BD/C&P/1406/8000006832 Date: 01st August, 2014
M/s …………………….
…………………………
…………………………
Dear Sir/ Madam,
Sub: TIME CHARTER HIRING OF LNG VESSELS
(Tender No. GAIL/ND/BD/C&P/1406/8000006832)
(E-Tender No. 8000006832)
GAIL (India) Limited, New Delhi, invites bids through e-tendering on International
Competitive Bidding basis for Time Charter Hiring of LNG Vessels, under single stage two bid
system from competent Bidders as stated in the detailed Tender document attached.
The Complete Tender Document is available on following websites of GAIL and Govt. of
India:
GAIL‘s e-portal https://etender.gail.co.in (Login as a guest user for downloading)
GAIL‘s website http://gailtenders.in (No login required)
Govt. website http://tenders.gov.in
Govt. CPP Portal http://eprocure.gov.in
Any bidder who wishes to quote against this Tender may download the Tender Documents
from above websites and submit the bid complete in all respect at https://etender.gail.co.in, on
or before the due date & time of bid submission.
Clarification(s)/Corrigendum(s) , if any shall also be available on the above referred web sites.
1. Brief Details:
(i) Type of Enquiry
: Open International Competitive Bidding through
e-Tendering
(ii) E-Tender No. : 8000006832
(iii) Tender Fee
(Non-refundable)
US$ 2,000/ INR 1,20,000
(iv) Bid security/EMD : US$ 1,500,000 for each Lot [including Additional
Vessel(s)], subject to a Cap of US$ 3,000,000 for
2 Lot or more Lots including Additional Vessel(s).
(v) Delivery Period : Refer ITT
(vi) Contract (Charter) Period : Refer ITT
(vii) Bid Evaluation Criteria : Refer ITT
(viii) Tender document on Website : From 01st August, 2014 to 30
th October, 2014 till
1400 hrs.
(ix) Date & Time for Pre-Bid
Meeting
: 22nd
August, 2014, 1000 hrs. (IST)
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 3 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
(x) Venue of Pre-Bid Meeting &
opening of bids
: GAIL (India) Limited
16, Bhikaiji Cama Place,
R K Puram,
New Delhi-110066 (India)
(xi) Due date & Time for bid
submission
: 30th
October, 2014 upto 1400 hrs. (IST)
(xii) Date and Time of Opening of
Un-priced Bids
: 30th
October, 2014 hrs. at 1500 hrs (IST)
(xiii) Price Bid Opening : Date & Time to be intimated to techno-
commercially acceptable bidders later on.
(xiv) Contact person(s) : Mr. S. Halder
Dy. General Manager (C&P)
E-mail: [email protected]
Ph. No: (+91) 11 2617 2580 Ext. 6210
Direct: (+91) 11 26189269
Fax : (+91) 11-26185941 Ext. 00502#
Mr. Kaladhar Narayan
Sr. Manager (C&P)
E-mail: [email protected]
Ph. No: (+91) 11 2617 2580 Ext. 6222
Fax: (+91) 11-26185941 Ext. 05088#
Mr. Vinay Kumar K
Dy. Manager (C&P)
E-mail: [email protected]
Ph. No: (+91) 11 2617 2580 Ext. 6245
Fax: (+91) 11-26185941 Ext. 15245#
If any of the days specified above happens to be a holiday in GAIL, the next working
day shall be implied.
2. SUBMISSION OF BIDS:
Bid must be submitted online thru' GAIL's "e-Tendering" system at
https://etender.gail.co.in only against the subject e-tender. Bidder shall submit both
"Un-Priced Bid" and "Price Bid" through GAIL's "e- Tendering" portal only for
processing of the bids. Bids submitted in any other form, such as courier / post / in-
person / email / fax / telegram / telex/DVD/Documents in Pen Drive shall not be
accepted against this Tender. The "Un-Priced Bid" and "Price Bid" shall contain the
documents in the manner specified below:
PART-I: UN-PRICED/TECHNO-COMMERCIAL BID
(The following documents required as per terms and conditions of tender document,
must be uploaded under link “TECHNICAL DOCUMENT” on e-portal and not at
“Step 3/ Notes and Attachment/Price Bid Section”)
The "Un-Priced Bid" must be complete with the following:
(A) All technical and commercial details other than prices.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 4 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
(B) Documentary evidences towards "Bidder Eligibility Criteria [BEC]" and other
documents sought under this Tender Document.
PART-II: PRICE BID [SCHEDULE OF RATE (SOR)]
(Only SOR duly filled strictly in the Format provided in the tender document, must
be uploaded under link “Step 3: Notes and Attachment” of e-portal and NOT at link
“TECHNICAL DOCUMENT”)
It should contain only the Schedule of Rates (SOR) strictly as per format complete with
rates duly filled in and no terms and conditions should be entered in the "Price Bid".
"Price Bid" containing any new / fresh condition/document [not mentioned in the "Un-
Priced Bid"] shall be liable for rejection.
GAIL (India) Limited assumes no responsibility for inability of a bidder to submit bids
through GAIL's "e-Tendering" system or on account of delay in submission at bidder's
end. Bidder shall ensure that they submit the bid well before the "Due Date & Time of
Bid-Submission". GAIL shall not be responsible if a Bidder is not able to obtain User
ID & Password in Time and is not able to submit the bid on account of failure in
network / internet connection at bidder's end. Bidder shall obtain a "Digital Certificate
[Class-3B]" on their own and GAIL (India) Limited will be not at all responsible for a
bidder not having acquired the valid "Class-3B Digital Certificate". Bidder may refer to
―Instructions to e-Tender" carefully for obtaining User ID, Password and valid "Class-
3B Digital Certificate" and the process for submission of Bid through GAIL‘s e-
tendering portal.
3. SUBMISSION OF SCANNED COPIES OF CERTIFICATES/ DOCUMENTARY
PROOFS:
Bidders are required to submit scanned copies of all certificates / documentary
evidences towards proof of meeting the "BEC" along with the other requisite
documents through GAIL's "e-Tendering" system at https://etender.gail.co.in. Non-
submission of scanned copies of requisite certificates / documents shall render the bid
non-responsive and shall be liable for rejection.
4. GENERAL:
4.1 Tender document is non-transferable. Bids received from bidders in whose name
Tender document Fee has been submitted shall only be considered. Bidder must
ensure that Tender document Fee is submitted in their name only.
4.2 Payment of Tender document fee shall be by Crossed Bank Draft from a first class
International Bank or an Indian Nationalized/Scheduled Bank, in favour of GAIL
(India) Limited, payable at New Delhi and the same shall be submitted in physical
form. Bank Draft shall be valid for minimum 3 months. The bid of any Bidder shall be
considered only if the bid is accompanied by the prescribed Tender document fee in
the form of demand draft.
The foreign Bidders can submit Tender document fee in US Dollars or Indian Rupees
(directly or through their authorized Indian representative) clearly mentioning the
name of the Bidder.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 5 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
The original Tender Fee must reach GAIL on or before due date of Un-Priced Bid
Opening.
However, bidders desirous of attending Pre-Bid Meeting are required to submit tender
fee prior to Pre-Bid Meeting.
4.3 GAIL will not be responsible for cost incurred in preparation and submission of bids.
4.4 The following documents in addition to uploading the bid on the GAIL‘s e-Tendering
website must be submitted in Original (in physical form) in one envelope containing
Envelope-1 & Envelope-2 as under:
Envelope – 1
This envelope shall contain the following:
i) Earnest Money Deposit/Bid Security
ii) Power of Attorney
iii) Integrity Pact
Envelope 1 containing EMD / Bid Security, Power of Attorney and Integrity Pact (in
original) must reach GAIL (India) Limited New Delhi superscribing the envelope as
―ENVELOPE 1 and Tender Reference No. GAIL/ND/BD/C&P/1406/8000006832‖
with the Cut-Out Slip provided preferably on or before Due Date of bid submission
but not after 7th day from the Due Date & time of un-priced bid opening, failing
which the bid will not be evaluated further irrespective of the status/ranking of the
Bidder in tender and notwithstanding the fact that a copy of EMD was earlier
uploaded by the Bidder.
Envelope – 2
This envelope shall contain Cost of each Vessel offered under separate envelopes
superscribing ―Vessel No./ Additional Vessel No. (as the case may be)‖.
Envelope 2 containing the above must reach GAIL (India) Limited New Delhi
superscribing the envelope as ―ENVELOPE 2 and Tender Reference No. GAIL/ND/BD/C&P/1406/8000006832‖ with the Cut-Out Slip provided on or before
Due Date of bid submission positively.
4.5 GAIL expects Bid to be submitted by the Bidder in conformance with the tender
conditions/specifications and without stipulating any deviation(s)/exception(s). Bidder
is requested to ensure compliance of all provisions of the Tender Document and
submit their bid accordingly as Bid with any unacceptable deviation to the tender
conditions/specifications shall be liable for rejection.
4.6 GAIL reserves the right to reject any or all the bids received at its discretion without
assigning any reason whatsoever.
4.7 This Request For Proposal (RFP) is an integral and inseparable part of the Tender
document.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 6 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
NOTE:
a. Bidders are required to submit queries to the tender so as to reach GAIL at least 05
working days prior to the pre-bid meeting. Queries received prior to the pre-bid
meeting in the format provided in the tender shall only be taken-up for providing
Clarifications/Replies to the bidders. During the pre-bid meeting, there will be a
session to demonstrate GAIL‘s e-Tendering system to facilitate bidders to submit the
Bid online.
Bidders may depute their authorized representative(s) for attending pre-bid meeting.
b. Bidders are requested to fill all "Annexures / Formats" as enclosed in the Tender
Documents.
c. Bidders are requested to go through the document named, "Instructions for e-
Tendering ". This document aims at providing guidelines / instructions to bidders for
submitting their bids through GAIL's "e- Tendering" system.
d. Bidders may depute their authorized representative to attend the "Un-priced Bid
Opening". Bidders selected for opening of their "Price Bid" shall be suitably informed
about the date and time.
e. Any change in bid after the "Due Date & Time of Bid-Submission" of Tender is not
allowed.
f. Bidders are advised, in their own interest, to ensure that their bids are submitted well
before the "Due Date & Time of Bid-Submission" of the Tender as GAIL's "E-
Tendering" portal will not allow submission of bids once the closing date and time of
the Tender [i.e. Due Date & Time of Bid-Submission] is reached.
g. Bidders are requested to submit Acknowledgement cum Consent Letter (as per
Annexure – 17) showing their interest for participation / non- participation
immediately on receipt of information regarding the tender through email / fax.
h. In the event of cancellation of the tender, the tender fee will be refunded to respective
bidders.
i. This is not an Order.
For & on behalf of
GAIL (India) Limited
(S. HALDER)
Dy. General Manager (C&P)
Phone : (+91) 11-26172580 Ext 6210
Direct: (+91) 11 26189269
Fax : (+91) 11-26185941 Fax Ext 00502#
E-mail : [email protected]
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 7 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
CONTENT OF TENDER DOCUMENT
1. REQUEST FOR PROPOSAL
2. PART 1: INSTRUCTIONS TO BIDDERS
3. PART 2 : AGREEMENTS AND TECHNICAL DOCUMENTS
Time Charter Agreement to be executed by the Owner
and GAIL (or its Affiliates) and other agreement and
relevant technical specifications as follows:
PART 2A: PROFORMA TCP (Enclosed separately)
PART 2B: PROFORMA APPENDICES TO THE
TCP (Enclosed separately)
PART 2C: PROFORMA TPA (Enclosed separately)
PART 2D: PROFORMA SHA (Enclosed separately)
PART 2E: OUTLINE SPECIFICATION (Enclosed
separately)
4. PART 3 : PROJECT INFORMATION MEMORANDUM
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 8 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
TABLE OF CONTENTS FOR INSTRUCTIONS TO BIDDERS
1 ABREVIATIONS Error! Bookmark not defined.
2 DEFINITIONS 13
3 INTRODUCTION AND BACKGROUND 20
3.1 GAIL (India) Limited 20
3.2 Shipping Requirement and Invitation to Tender 21
3.3 Scope of the Tender 22
3.4 Structure of the Tender Document 24
3.5 Rules of Construction 25
4 BID SECURITY, INTEGRITY PACT, NDA & POA 26
4.1 Bid Security 26
4.2 Integrity Pact 29
4.3 Power of Attorney 30
5 BIDDER ELIGIBILITY CRITERIA
6 SHIPYARD ELIGIBILITY CRITERIA
7 REQUIREMENTS FOR THE SHIP MANAGER 39
8 PARENT/ PROMOTER COMPANY GUARANTEE 39
9 COMPLIANCE WITH TENDER DOCUMENTS 39
9.1 The Bidder shall comply with the following: 39
9.2 Time Charter Documents 40
9.3 Absence of Shareholder Guarantee 40
9.4 Interaction with Financiers 41
9.5 Pre-Bid Meeting and Clarifications to Tender 41
9.6 Tentative Schedule of Tender Activities 42
9.7 Late submission of Bids 42
9.8 Cost of Bidding 43
9.9 Bid Currency 43
9.10 Period of Validity of Bids 43
9.11 Modification And Withdrawal of Bids 45
9.12 Contacting GAIL 45
9.13 Submissions of Bids in Single Stage Two Bid System 45
9.14 Content of Bid 45
10 TECHNO-COMMERCIAL UNPRICED PROPOSAL 46
10.1 General and LNG Shipping Experience 46
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 9 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
10.2 Project Organisation 47
10.3 Technical Information for Proposed Vessels 48
10.4 Financial Statements and Insurances 48
10.5 Ownership Structure and Financing Plan 48
10.6 HSE and Quality Assurance 49
11 PRICED PROPOSAL 50
11.1 Form and Content of Priced Bid 50
11.2 Time Charter Rate for Vessels 50
11.3 Share Price
11.4 Unconditional, Firm Priced Offers - Currency 51
11.5 Cost of Vessel 51
12 EQUITY OPTION 51
12.1 Special Purpose Company (SPC) 51
12.2 Equity Options 51
13 CONSORTIA 52
13.1 Consortium Leader & members 52
13.2 Liability 53
13.3 Consortium Agreement 54
13.4 Shareholders Agreement in respect of Vessels 56
14 EVALUATION METHODOLOGY FOR PROPOSALS 56
14.1 General 56
14.2 Evaluation Methodology 57
15 OTHER CONDITIONS 60
15.1 Performance Bank Guarantee (PBG): 60
15.2 Confidentiality 61
15.3 Accuracy of Bid 62
15.4 Discrepancies and Arithmetical errors: 62
15.5 Reservation of Rights 62
15.6 Right of Acceptance and Execution of Contract 63
15.7 Ownership of Documents 63
15.8 Language 63
15.9 Law, Jurisdiction & Dispute Resolution 64
15.10 Submission of false or forged documents 64
15.11 Fraud and Corruption 64
15.12 Rejection Criteria 66
15.13 Agent 67
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 10 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
ANNEXURE 1 - CHECK LIST 68
ANNEXURE 2 – INTEGRITY PACT 71
ANNEXURE 3 – OFFER LETTER 78
ANNEXURE 4 – OFFER OUTLINE 79
ANNEXURE 5 – DEVIATION STATEMENT PROFORMA TCP/TPA 83
ANNEXURE 6 – DEVIATION STATEMENT OUTLINE SPECIFICATIONS 84
ANNEXURE 7 – VESSEL PARTICULARS 85
ANNEXURE 8 – GUARANTEED PERFORMANCE FIGURES 86
ANNEXURE 9 –SCHEDULE OF RATES 91
ANNEXURE 10 - LIFE CYCLE EVALUATION METHODOLOGY FOR EACH VESSEL 97
ANNEXURE 11 – SUEZ CANAL CHARGES PER VOYAGE 107
ANNEXURE 12 – PORT CALL CHARGES 109
ANNEXURE 13 – BIDDERS CONFIRMATION FOR EVALUATION OF WITHHOLDING
TAX 111
ANNEXURE 13 A – FORM NO. 10F
ANNEXURE 14 - LNG VESSEL COST AND FINANCING 115
ANNEXURE 15 - FORMAT OF THE LETTER FROM INTENDED LENDERS TO THE
BIDDER 117
ANNEXURE 16 - FORMAT FOR DECLARATION OF CHANGE OF MAJORITY
SHAREHOLDER IN SPC IN CASE OF AWARD 119
ANNEXURE 17 - ACKNOWLEDGEMENT CUM CONSENT LETTER
ANNEXURE 18 - FORMAT FOR CHARTERED ACCOUNTANT CERTIFICATE FOR
FINANCIAL CAPABILITY OF THE BIDDER
ANNEXURE 19 - NO DEVIATION CONFIRMATION
ANNEXURE 20 - DECLARATION
ANNEXURE 21 - AGREEMENT REGARDING NON-INVOLVEMENT OF ANY OTHER
ENTITY OR GOVERNMENT OF INDIA
ANNEXURE 22 - CUT OUT SLIPS
ANNEXURE 23A- PROFORMA OF "BANK GUARANTEE" FOR "EARNEST MONEY /
BID SECURITY" 119
ANNEXURE 23B PROFORMA OF "LETTER OF CREDIT" FOR "EARNEST MONEY /
BID SECURITY"
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 11 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
DISCLAIMER
1. The Tender Document does not purport to contain all the information each Bidder may
require to submit the Bid. Each Bidder should conduct its own investigations and
analysis and should check the accuracy, reliability and completeness of the information
in the Tender Document and obtain independent advice from appropriate sources.
2. No representation whatsoever is made or warranty given by GAIL through the Tender
Document. In particular, no representation is made that any letter of award shall be
issued or that the Time Charter Agreement will be executed pursuant to the Tender
Document. GAIL, at its sole discretion may stop, re-invite, terminate, suspend or amend
the process of selection of the Selected Bidder at any stage without assigning any
reasons thereof. Further, neither GAIL nor its employees, agents, advisors or
consultants make any representation or warranty as to the accuracy, reliability or
completeness of the information contained or deemed to be contained in the Tender
Document.
3. Neither GAIL nor its employees, agents, advisors or consultants shall be liable to any
Bidder or any other person under any law including the law of contract, tort, the
principles of restitution or unjust enrichment or otherwise for any loss, expense or
damage which may arise from or be incurred or suffered, in connection with or as a
result of the Tender Document, or any matter that may be deemed to form part of the
Tender Document, or the award of the contracts, or any other information supplied by
or on behalf of GAIL or its employees, agents, advisors or consultants or otherwise
arising in any way from the selection process for the award of the contract.
4. The Tender Document shall be hosted on the GAIL / Govt. websites. The Bidder should
ensure that the Tender Document is complete in all respects. In the event that the
Tender Document or any part thereof is mutilated or missing, the Bidder must notify the
contact person(s) of GAIL immediately.
If no intimation is received by GAIL at the above mentioned office within 15 (fifteen)
days from the date of issue of the Tender Document, then it shall be deemed that the
Tender Document is complete in all respects.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 12 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
No extension of time shall be granted under any circumstances to any Bidder for
submission of its Bid on the grounds that the Bidder could not have access to the
complete set of the Tender Document.
5. GAIL reserves the right in its sole and unfettered discretion without any obligation or
liability whatsoever to accept or reject any or all of the Bids at any stage of the bidding
process undertaken/ to be undertaken under the Tender Document, without assigning
any reasons thereof.
6. The Tender Document (and all information contained herein) is confidential and is for
the exclusive use of the Bidders who desire to participate in this Tender. The Tender
Document shall not be copied or distributed by it to third parties.
7. GAIL reserves the right to change, modify, add to or alter the bidding process including
inclusion of additional evaluation criteria for evaluation of the Bidders during the
bidding process, based on detailed evaluation of capabilities or on account of any
change in government policy, law or regulations. Any change in the bidding process
shall be intimated to all the Bidders/ hosted on the relevant website(s). For the
avoidance of doubt, it is clarified that if at any time after the date of the Tender
Document and prior to the execution of the Time Charter Agreement, there is any
change in policy of the Government of India, law or regulations affecting the selection
process, or any part of the Tender Document or GAIL's rights or obligations, GAIL
shall at its sole discretion be entitled to change, modify, review, supplement, add to,
alter or otherwise deal with the bidding process in such manner and to such extent as
GAIL may decide so as to protect or further its interest or gain any advantage. The
Bidders shall be required to submit the Bid in relation to the Tender Document / bidding
process as so amended, altered, modified or supplemented.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 13 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
INSTRUCTIONS TO BIDDERS
1 ABBREVIATIONS
GAIL: GAIL (India) Limited
CBM: Cubic Meter
CD: Chart Datum
DFDE: Dual Fuel Diesel Electric
DWT: Dead Weight Tonnage
EPC: Engineering, Procurement and Construction
FII: Foreign Institutional Investors
FOB: Free on Board
ITT: Invitation to Tender
Km: Kilometer
Kts: Knots
LNG: Liquefied Natural Gas
m3: Cubic Meter
MMBTUs: Million Metric British Thermal Units
MMCM: Million Cubic Meters
MMSCMD: Million Metric Standard Cubic Meters per Day
MMT: Million Metric Tonnes
MMTPA: Million Metric Tonnes Per Annum
P&I Insurance: Protection & Indemnity Insurance
SPA: Sale and Purchase Agreement
TCPA: Time Charter Agreement
TFDE: Tri-Fuel Diesel Electric
USD or US$ or US Dollars: United States Dollar
2 DEFINITIONS
In these Instructions, save where the context otherwise requires, the following words
and expressions shall have the meanings respectively assigned to them in this Section:
―Additional Vessels‖ Has the meaning given to it in Section 3.2 (d).
―Affiliate‖ Means any entity who directly or indirectly
controls, is under common control with or is
controlled by the party in question; where
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
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TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
―control‖ means the right to exercise fifty percent
(50%) of the voting rights of a company or other
entity or of the equivalent rights so as to
determine the decisions of such company or
other entity.
―Acquired Shares‖ Has the meaning given to it in Section 12.2(c).
―Batch 1‖ Has the meaning given to it in Section 3.3(c)(i).
―Batch 2‖ Has the meaning given to it in Section 3.3(c)(i).
―Batch 3‖ Has the meaning given to it in Section 3.3(c)(ii).
―Batch 4‖ Has the meaning given to it in Section 3.3(c)(ii).
―Bid‖ Means collectively the Offer Letter, the Techno-
Commercial (Unpriced) Bid, and the Priced Bid,
and annexures, supporting documentation and
correspondences exchanged between GAIL and
the Bidder against this Tender.
―Bid Security‖ Has the meaning given to it in Section 4.1(a).
―Bidder ‖ Means an entity submitting a Bid pursuant to this
ITT, whether as a Single Bidder or as a
Consortium.
―Bidder Eligibility Criteria
(BEC)‖
Means the eligibility criteria to be satisfied by
any Bidder participating in this tender process as
described in Section 5 & 6.
―Charterer‖ Means GAIL, as mentioned in the introduction to
the Proforma TCP.
―Confidential Information‖ Has the meaning given to it in Section 15.2.
―Consortium‖ Means a consortium formed for the purpose of
allowing different entities to submit a Bid jointly,
as further described in Section 5, and for the
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
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TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
execution of the Time Charter Agreement
through a SPC.
―Consortium Agreement‖ Means the Consortium Agreement entered into
between the Consortium Members and outlining
the principles of cooperation between such
Consortium Members as described in Section
13.3.
―Consortium Leader‖ Means a Consortium Member appointed as a
representative of a Consortium and satisfying the
conditions described in Section 5.
―Consortium Member‖ Means an entity or company that is a party to a
Consortium.
―Control‖ Means the power to direct the management and
policies of any entity whether through the
ownership of voting capital, by contract or
otherwise.
―Delay Notice‖ Has the meaning given to it in Section 3.3.
―Deviation‖ Means any non-conformity to any of the terms,
conditions etc. contained in the Tender
Document.
―EPC‖ Has the meaning given to it in Section 9.4.
―Eligibility Criteria‖ Means, as the context requires, the Bidder
Eligibility Criteria and/ or the Shipyard
Eligibility Criteria.
―E-Tender‖ Means the process of submission of Bid through
GAIL‘s e-portal, as described in this ITB.
―Equity Option‖ Has the meaning given to it in Section 12.
―Extended Period‖ Has the meaning given to it in Section 9.10.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
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TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
―Fixed Daily Charter Rate‖ Has the meaning given to it in Section 11.2.
―GAIL‖ Means GAIL (India) Limited, a Maharatna
Public Sector undertaking of the Government of
India, or its Affiliates.
―GAIL Equity Option‖ Has the meaning given to it in Section 12.2(a).
―GAIL Shareholder‖ Means GAIL or an Affiliate of GAIL.
―Indian Shipyards‖ Has the meaning given to it in Section 6.
―Instructions‖ Means these Instructions for submission of Bid
against this tender for the Chartering of LNG
Vessels to GAIL (India) Limited or its Affiliates.
―Instructions to Bidders /
Instructions to Tenderers‖
Means these Instructions for submission of Bid
by the Bidders and also termed as ITB / ITT.
ITB & ITT have the same meaning.
―Integrity Pact‖ Has the meaning given to it in Section 4.2(a).
―Lot‖ Has the meaning given to it in Section 3.2(c).
―mtpa‖ Means million tonnes per annum.
―Net Worth‖ Means the subscribed and paid up share capital
of an entity plus its free reserves but excluding
revaluation reserves, as reduced by accumulated
losses, intangible assets, and miscellaneous
expenditure not written off.
―Offer Letter‖ Means the offer letter substantially in the form
prescribed by Annexure 3.
―Opex‖ Has the meaning given to it in Section 11.2.
―Outline Specifications‖ Has the meaning given to it in Section 3.2 and
attached separately as Outline Specifications for
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the Vessels.
―Owner Default‖ Has the meaning given to it in the Proforma TCP
and Proforma TPA.
―Owner‘s Guarantee‖ Has the meaning given to it in Section 8.
―Performance Bank Guarantee‖ Has the meaning given to it in Section 15.1.
―Priced Bid‖ Means the priced portion of Bidder‘s proposal
containing the elements described in Section 11.
―Proforma SHA‖ Means the proforma containing the minimum
rights of GAIL and/ or Shipping Corporation of
India Limited in the Owner to be incorporated
into the shareholders agreement in respect of the
Owner upon the exercise of the Equity Option.
―Proforma Time Charter
Documents‖
Means the Proforma TCP, Proforma SHA and
the Proforma TPA attached hereto.
―Proforma TCP / TCPA‖
Means the Proforma Time Charter Agreement
attached hereto. TCP and TCPA have the same
meaning
―Proforma TPA‖ Means the Proforma Tripartite Agreement
attached hereto.
―Project Information
Memorandum‖
Shall mean the project information memorandum
forming part of these Tender Documents.
―Quiet Enjoyment Letter‖ Shall have the meaning ascribed to it in the
Proforma TCP.
―SCI‖ Means the Shipping Corporation of India.
―SCI Equity Option‖ Has the meaning given to it in Section 12.2(a).
―SCI Shareholder‖ Has the meaning given to it in Section 12.2(a).
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―Scheduled Delivery Date‖ Shall have the meaning given to such term in the
Time Charter Agreement.
―Single Bidder‖ Means a single entity submitting a Bid in respect
to these Instructions.
―Shipyard‖ Means any shipyard meeting the Shipyard
Eligibility Criteria.
―Shipyard Eligibility Criteria Means the eligibility criteria to be satisfied by
any shipyard that plans to design, build, and
deliver a Vessel as described in Section 6.
―SPA‖ Has the meaning given to it in Section 3.1 (c).
―SPC‖ or ―Owner‖ Means a Special Purpose Company specifically
created in a jurisdiction to be approved by GAIL
for the purpose of owning, operating and time
chartering the Vessel to GAIL.
―Submission Date‖ Has the meaning given to it in Section 9.13.
―TSA‖ Has the meaning given to it in Section 3.1 (c)(ii).
―Technical Criteria‖ Has the meaning given to it in Section 5.1.
―Techno-Commercial
Consultant‖
Means a consortium BRSGazOcean comprised
of Barry Roglliano Salles, France and Gazocean,
France, appointed as Techno-Commercial
Consultant for the Charter, as described in
Section 3.1.
―Techno-Commercial (Unpriced)
Bid‖
Means the techno-commercial (unpriced) portion
of Bidder‘s proposal containing the elements
described in Section 10.
―Tender Documents‖ Means the request for proposals along with
Instructions to Bidders, Outline Specifications,
Project Information Memorandum, Proforma
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TCP, Proforma Appendices to TCP, Proforma
TPA and Proforma SHA, as mentioned in
Section 3.4.
―Time Charter Agreement‖ Means the time charter party agreement to be
concluded between a successful Bidder and
GAIL or its Affiliate in respect of a Vessel
substantially in the form of the Proforma TCP.
―Time Charter Documents‖ Means collectively the agreements to be entered
into by SPC and GAIL (or its Affiliates) in
connection with the time chartering of a Vessel,
including a time charter party agreement
substantially in the form of the Proforma TCP
(including any guarantees to be issued pursuant
to such time charter party agreement), and a
tripartite agreement substantially in the form of
the Proforma TPA.
―UFC‖ Means Unit Freight Cost
―Vessel ‖ Has the same meaning as given to it in Section
3.2.
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3 INTRODUCTION AND BACKGROUND
3.1 GAIL (India) Limited
(a) GAIL is an integrated energy company, primarily involved in transportation
and marketing of natural gas. GAIL currently owns and operates close to
10,600 (Ten Thousand Six Hundred) kilometres of trunk pipelines to transport
more than 180 (One Hundred Eighty) million standard cubic meter per day
(MMSCD) of gas. GAIL also owns and operates two LPG pipelines covering
around 2,050 (Two Thousand Fifty) kilometres with a capacity of 3.8 (Three
point Eight) million tonnes per annum (MMTPA) of LPG, 7 (Seven) gas
processing plants for production of LPG and other liquid hydrocarbons with a
production capacity of 1.4 (One point Four) MMTPA and a gas based
integrated petrochemical plant of 410,000 (Four Hundred Ten Thousand)
tonnes per annum (TPA) polymer capacity which is further being expanded to
a capacity of 900,000 (Nine Hundred Thousand) TPA. Besides, GAIL has
participatory interest in 28 (Twenty Eight) exploration and production blocks
and is also the promoter of Petronet LNG Ltd. (PLL) and Ratnagiri Gas and
Power Pvt. Ltd (RGPPL).
(b) GAIL has 20% (Twenty percent) stake in shale gas assets in Eagle Ford in
Texas through its subsidiary GAIL Global (USA) Inc. GAIL has also opened a
trading desk at Singapore for LNG trading through its subsidiary GAIL Global
Singapore.
(c) In order to meet the growing demand of natural gas in India:
(i) GAIL has concluded a 3.5 (Three point Five) MMTPA LNG Sale and
Purchase Agreement (the ―SPA‖) on FOB basis for a period of 20
(Twenty) years (extendable by another ten (10) years) with Sabine Pass
Liquefaction, LLC. Deliveries will take place from the Sabine Pass
terminal located in Louisiana, USA and are expected to start from Q3
(i.e. third quarter) 2017 subject to fulfilment of required condition
precedents in the SPA;
(ii) GAIL Global (USA) LNG LLC, an Affiliate of GAIL, has concluded a
2.3 (Two point Three) MMTPA Terminal Service Agreement (the
―TSA‖) with Dominion Cove Point LNG LP for the utilisation of 2.3
(Two point Three) MMTPA of capacity of the Cove Point terminal and
liquefaction facilities for a period of 20 (Twenty) years (extendable by
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another five (5) years). Deliveries under the TSA are expected to start
from Q3 2017 subject to fulfilment of required condition precedents in
the TSA.
(iii) GAIL intends to deliver such LNG primarily in India through storage and
regasification capacity reserved at existing terminals on the West coast of
India. Such capacity is to be complemented with additional capacity
reservations to be made at terminals on the East coast of India. Existing
and expected capacity bookings are:
(A) Dahej (2.5 (Two point Five) mtpa firm capacity available for
GAIL);
(B) Dabhol (5 (Five) mtpa firm capacity available for GAIL);
(C) GAIL is discussing capacity reservations with various terminals
developers (onshore facilities and/or FSRUs) on the East coast.
(d) GAIL has appointed the Techno-Commercial Consultant to assist in the
running of the tender process and the evaluation of any Bids submitted
hereunder.
3.2 Shipping Requirement and Invitation to Tender
(a) To meet its transportation requirements, GAIL intends, directly or through an
Affiliate, to enter into the Time Charter Documents with one or more
shipowners specialised in the operation of LNG vessels and meeting the
Bidder‘s Eligibility Criteria, Shipyard Eligibility Criteria and other techno-
commercial requirements of the Bid to be selected through this bidding
process.
(b) GAIL requires LNG vessels to transport upto 5.8 MTPA of LNG from United
States of America to India. GAIL is also undertaking an exercise of swapping /
trading of LNG. Based on the outcome of such exercise, the final requirement
of Vessels shall emerge and award shall be made accordingly. The present Bid
is calling for 9 (nine) LNG vessels in lots of three Vessels each., of a cargo
capacity of not less than 150,000 (One Hundred Fifty Thousand) m3 and not
more than 180,000 (One Hundred Eighty Thousand) m3, enabling GAIL to
comply with its off-take commitments at Sabine Pass and Cove Point from the
3rd
quarter of 2017. Bids are invited based on current scenario; however GAIL
is undertaking an exercise of trading/swapping of LNG. Based on the outcome
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of such exercise, the final requirement of the vessels shall emerge and award
shall be made accordingly.
(c) GAIL hereby issues the Instructions and invites Bidders to submit, in strict
compliance with the terms of these Instructions, a binding Bid for the time
chartering to GAIL or its Affiliate for approximately 09 (nine) Vessels in lots
of 3 (three) Vessels (each such lot of 3 (three) Vessels, being a ―Lot‖). The
Bidders will be required to quote for Lots of 3 (Three) Vessels, with a
provision that under each Lot, one of the Vessel shall be built in Indian
shipyard. The Bidder can quote either for one / two / three Lots of 03 (three)
Vessels each. The Bidder shall build the LNG vessel in such Shipyard, which
meet the Shipyard Eligibility Criteria as mentioned in Section 6.
(d) Due to Vessel size varying between 150,000 – 180,000 m3, GAIL may hire an
additional one or two Vessels to fulfil its capacity requirement (such additional
one or more Vessels being the ―Additional Vessels‖). To meet this
requirement, Bidders will be required to quote for one Additional Vessel or
two Additional Vessels, in addition to the quote for the Lot(s). Provided that
where the Bidder submits a quote for two Additional Vessels, the Bidder shall
also be mandatorily required to submit a quote for one Additional Vessel.
(e) Each Lot of Vessels (and all Additional Vessels) offered by the Bidder should
be designed and built pursuant to specifications that are as per the Outline
Specifications at a Shipyard meeting the Shipyard Eligibility Criteria and that
otherwise complies with the requirements of these Instructions (each a
―Vessel‖). Bidders may offer Vessels of either membrane technology or MOSS
technology, with TFDE or steam propulsion system, in each case being
compliant with the Outline Specifications.
3.3 Scope of the Tender
(a) The Vessels that are the subject of Bidder‘s Bid shall be newly built, designed,
constructed and sold to Bidder in accordance with a shipbuilding contract to be
approved by GAIL (or its Affiliates) and concluded between Bidder and any
Shipyard(s) meeting the Shipyard Eligibility Criteria described in the present
Instructions.
(b) The Vessels shall comply with the technical requirements contained in the
Outline Specifications and have a cargo capacity [at 100% (One Hundred
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percent)] of not less than 150,000 (One Hundred Fifty Thousand) m3 and not
more than 180,000 (One Hundred Eighty Thousand) m3.
(c) In securing new-building positions for this Bid at any of the eligible
Shipyards, Bidder shall ensure that the relevant Vessels shall be delivered and
available for the Time Charter in accordance with the following schedule:
(i) 06 (six) Vessels under Lot 1 and Lot 2 will be delivered in two (2)
batches as under:
- 04 (four) Vessels* from overseas Shipyards (two under each of
Lot 1 and Lot 2) within the eight months window starting from
August 1, 2017 and ending on March 31, 2018, provided that
each TCPA shall specify a six months window within the
aforesaid 8 months period within which the delivery of the
relevant Vessel is to be undertaken (―Batch 1‖), and each
TCPA shall specify an appropriate windowing mechanism for
the delivery date of the relevant Vessel.
- 02 (two) Vessels from Indian Shipyards, will be delivered no
later than the date falling six years from the respective date of
issuance of the notice of award/ Fax of Acceptance for such
Vessels, provided that each TCP shall specify an appropriate
windowing mechanism for the delivery date of the relevant
Vessel (―Batch 2”).
Refer to the Proforma TCP for the detailed description of the
window mechanism.
* In case any of the 04 (four) Vessels under Batch 1 are not required in
the prescribed window, the Charterer reserves the right to take delivery
of such Vessels of Batch 1 in the window starting from February 1,
2018 and ending on September 30, 2018, through issuing a notice to the
Owners (the ―Delay Notice‖).
In the event that the Delay Notice is issued by the Charterer:
within twelve (12) months after the execution of the Time
Charter Agreement, the Owner shall be entitled to compensation
by Charterer of USD 5,000 (United States Dollars Five
Thousand) per day per Vessel for the period between the last
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date in the window specified in the TCP up to the actual date of
delivery of the Vessel as requested by the Charterer;
after the expiry of twelve (12) months from the execution of the
Time Charter Agreement, the Owner shall be entitled to
compensation by Charterer of USD 20,000 (United States
Dollars Twenty Thousand) per day per Vessel between the last
date in the window specified in the TCP up to the actual date of
delivery of the Vessel as requested by the Charterer.
(ii) 03 (three) Vessels under Lot 3 will be delivered in two (2) batches as
under:
- 02 (two) Vessels* from overseas Shipyards, within the eight
months window starting from February 1, 2018 and ending on
September 30, 2018, provided that each TCP shall specify a six
months window within the aforesaid 8 months period within
which the delivery of the relevant Vessel is to be undertaken
(―Batch 3‖) and each TCP shall specify an appropriate
windowing mechanism for the delivery date of the relevant
Vessel.
- 01 (one) Vessel from Indian Shipyards, will be delivered no
later than the date falling six years from the date of issuance of
the notice of award/ Fax of Acceptance for such Vessel ,
provided that the TCP shall specify an appropriate windowing
mechanism for the delivery date of the relevant Vessel
(―Batch 4‖).
Refer to the Proforma TCP for the detailed description of the window
mechanism.
(d) The Additional Vessel(s) may be requested by GAIL for delivery either as part
of Batch 1 or along with the Vessels in Batch 3. Where the Additional Vessels
are requested along with Batch 1 or Batch 3, the provisions relating to delivery
in Batch 1 or Batch 3 (as the case may be) shall be applicable mutatis mutandis
to such delivery of the Additional Vessels.
3.4 Structure of the Tender Document
This Tender Document consists of the following 2 (two) parts:
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PART 1: INSTRUCTIONS TO BIDDERS
This part provides information about the bidding procedure and consists of:
(i) Table of contents
(ii) Disclaimer
(iii) List of Abbreviations
(iv) Definitions
(v) Forms to be filled by the Bidder
(vi) Appendices
(vii) Check list - List of Information / Documents to be included in the
Techno- Commercial Bid
(viii) Format for Schedule of Rates
(ix) E-Tendering Instructions
PART 2 : AGREEMENTS AND TECHNICAL DOCUMENTS
This part includes the Time Charter Agreement to be executed by the Owner
and GAIL (or its Affiliates) and other agreement and relevant technical
specifications as follows:
PART 2A: PROFORMA TCP
PART 2B: PROFORMA APPENDICES TO THE TCP
PART 2C: PROFORMA TPA
PART 2D: PROFORMA SHA
PART 2E: OUTLINE SPECIFICATION
PART 3 : PROJECT INFORMATION MEMORANDUM
3.5 Rules of Construction
In the interpretation of this Part, unless the context otherwise requires:
(a) the singular of term includes the plural and vice versa, and any word or
expression defined in the singular has the corresponding meaning used in the
plural and vice versa;
(b) a reference to any gender includes the other gender;
(c) unless otherwise stated, a reference to a Section, Sub- Section, Paragraph, Sub-
paragraph, Annexure, Exhibit, Attachment, Schedule or Recital is a reference to
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a Section, Sub- Section, Paragraph, Sub-paragraph, Annexure, Exhibit,
Attachment, Schedule or Recital of this Part;
(d) a reference to any agreement is a reference to that agreement and all annexes,
attachments, exhibits, schedules, appendices and the like incorporated therein, as
the same may be amended, modified, supplemented, waived, varied, added to,
substituted, replaced, renewed or extended, from time to time, in accordance
with the terms thereof;
(e) the terms ―include‖ and ―including‖ shall be deemed to be followed by the words
―without limitation‖, whether or not so followed;
(f) any reference to a person shall include such person's successors and permitted
assignees;
(g) a reference to a ―writing‖ or ―written‖ includes printing, typing, lithography and
other means of reproducing words in a visible form;
(h) any date or period set forth in this Part shall be such date or period as may be
extended pursuant to the terms of this Part;
(i) a reference to ―month‖ shall mean a calendar month, and a reference to ―day‖
shall mean a calendar day, unless otherwise specified;
(j) in case of a conflict or contradiction between the main body of this ITB and its
Annexures, the contents of the main body will prevail, to the extent of such
contradiction. In case of any other contradiction, the more specific provision
shall override the general provision. GAIL‘s decision with respect to any priority
or precedence with respect to any such conflict or contradiction shall be final and
binding on the Bidder.
(k) all capitalised terms not specifically defined but used in this Part shall have the
meaning respectively assigned to them in the Time Charter Agreement, unless
the context requires otherwise.
4 BID SECURITY, INTEGRITY PACT & POWER OF ATTORNEY
4.1 Earnest Money Deposit / Bid Security
The Bidder shall submit the following documents in physical form before the due date
of submission of bid:
(a) A ―Bid Security‖ for an amount of United States Dollars (USD) 1,500,000 (One
Million Five Hundred Thousand) for each Lot of 03 (Three) nos. Vessels (and all
Additional Vessel(s) in the Bid of the relevant Bidder). For any additional Lot to
be quoted by the Bidders, an additional Bid Security amount of USD 1,500,000
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(One Million Five Hundred Thousand) per Lot is to be submitted, provided that
the aggregate Bid Security to be furnished shall not exceed USD 3,000,000
(Three Million), for 2 (two) or more Lots. No separate Bid Security is to be
provided for the Additional Vessels, and the Bid Security provided for the Lots
shall be deemed to cover, and extend to, all Additional Vessels in the Bid of the
Bidder.
Bid Security amount = USD 1,500,000 (One Million Five Hundred Thousand) x
no. of Lot(s) quoted [and Additional Vessel(s)], subject to a cap of USD
3,000,000 (Three Million).
If a single Bidder / Consortium has quoted for one Lot (and Additional
Vessels): USD 1,500,000 (One Million Five Hundred Thousand)
If a single Bidder / Consortium has quoted for two Lots (and Additional
Vessels): USD 3,000,000 (Three Million)
If a single Bidder / Consortium has quoted for three Lots (and Additional
Vessels): USD 3,000,000 (Three Million)
Bids must be accompanied with 'Bid Security' in the form of 'Demand Draft' in
favor of GAIL (India) Limited, payable at New Delhi or a 'Banker's Cheque'
or a 'Bank Guarantee' or a 'Letter of Credit'.
Bidders shall ensure that a 'Bid Security', having a validity of at least two (02)
months beyond the validity of the Bid, must accompany the Bid in the format(s)
made available in the Bid Document. In case of successful Bidder, Bid security
shall remain valid till signing of Agreements and furnishing Contract
Performance Guarantee / Performance Security. Bids not accompanied with 'Bid
Security', or 'Bid Security' not in requisite form or Bid Security with shorter
validity period shall be liable for rejection. Where the period of Bid validity is
extended, the Bid Security shall also be extended accordingly, failing which the
Bid shall be liable to be rejected.
(b) The Bid Security is required to protect GAIL against the risk of Bidder's
conduct, which would warrant the Bid Security's forfeiture.
(c) GAIL shall not be liable to pay any Bank charges, commission or interest on the
amount of 'Bid Security'. In case the 'Bid Security' is in the form of a 'Bank
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Guarantee' or Letter of Credit‘ the same shall be from any Indian scheduled bank
or a branch of an international bank situated in India and registered with 'Reserve
Bank of India' as Scheduled Foreign Bank. However, in case of 'Bank Guarantee'
from banks other than the Nationalized Indian Banks, the Bank must be a
commercial bank having net worth in excess of Rs. 100 Crores (Rupees One
Hundred Crores] and a declaration to this effect should be made by such
commercial Bank either in the 'Bank Guarantee' itself or separately on its
letterhead.
(d) Any Bid not secured in accordance with the present Instructions may be rejected
by GAIL as non-responsive.
(e) The unsuccessful Bidder's 'Bid Security' will be discharged/ returned as promptly
as possible, but not later than 'thirty (30] days' after expiry of the 'Period of Bid
Validity' prescribed by GAIL.
(f) The successful Bidder's 'Bid Security' will be discharged/ returned upon the
Bidder's accepting the 'Award', signing various Agreements including TCPA,
SHA, Ship Building Contract, any other document(s) as mentioned in the Tender
and furnishing the Contract Performance Guarantee / Performance Security.
(g) The 'Bid Security' may be forfeited, inter-alia:
(A) If a Bidder withdraws his Bid during the period of bid validity
(completely or partially) or fails to extend the Bid Security upon the
extension of the period of bid validity;
(B) In the case of a successful Bidder, if the Bidder fails:
(i) to accept the "Notification of Award" / "Fax of Acceptance (FOA)",
or
(ii) to furnish Owner‘s Guarantee and/ or Performance Bank Guarantee,
in accordance with Section 8 and 15.1 of ITB;
(iii) to accept corrections on account of arithmetical errors or
inaccuracies in the Priced Bid of the Bidder;
(iv) to sign various agreements in accordance with the timeline
mentioned in Section 9.6.2 of ITB.
(C) Otherwise on account of a material breach of these Instructions or
instructions mentioned elsewhere in the Tender.
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(h) In case Bid Security is in the form of 'Bank Guarantee or Letter of Credit ', the
same must indicate the Tender No. and the Lot (and Additional Vessels) for
which the Bidder is quoting. This is essential to have proper correlation at a later
date.
4.2 Integrity Pact
(a) GAIL, endeavouring to maintain and foster the most ethical and corruption free
business environment, has decided to adopt the ―Integrity Pact‖, a tool
developed by Transparency International to ensure that all activities and
transactions between GAIL and its counterparts (bidders, contractors, vendors,
suppliers, service providers, consultants etc.) are handled in a fair and
transparent manner, completely free of corruption. Accordingly, an MOU on
Integrity Pact has been signed on 23rd
July, 2007 by GAIL with Transparency
International India.
(b) Bidders are required to sign the integrity pact (as per the format enclosed at
Annexure 2), failing which their Bid shall be liable for rejection.
(c) Commitments and obligations of the Bidder:
(i) The Bidder, directly or indirectly (through its agent, consultant, advisor
etc), shall not pay any bribe / influence or give undue / unlawful benefit
to anyone to gain undue advantage in dealing with GAIL.
(ii) The Bidder will not engage in collusion of any kind including price
fixation etc. with other counterparties.
(iii) The Bidder will not pass GAIL‘s confidential information to any third
party unless specifically authorized by GAIL in writing.
(iv) The Bidder shall promote and observe best ethical practices within their
respective organizations.
(v) The Bidder shall inform the Independent External Monitor (IEM).
(A) If it receives any demand, directly or indirectly, for a bribe /
favor or any illegal gratification / payment / benefit;
(B) If it comes to know of any unethical or illegal payment /
benefit;
(C) If it makes any payment to any GAIL associate;
(vi) The Bidder shall not make any false or misleading allegations against
GAIL or its associates.
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(d) Violations And Consequences:
(i) If a Bidder commits a violation of its commitments and obligations
under the Integrity Pact program during bidding process, their entire
Bid Security, would be forfeited and in addition, they may be
blacklisted from the GAIL business in future.
(ii) In case of violation of the Integrity Pact by Bidder after award of the
contract, GAIL shall be entitled to terminate the contract. GAIL would
forfeit the Security Deposits, en-cash the Bank Guarantee(s) and forfeit
other payments to Bidder in such cases.
(iii) Subject to satisfaction of the Independent External Monitor, GAIL may
ban / blacklist / put on holiday and exclude the Bidder from future
dealings until GAIL is satisfied that Bidder shall not commit any such
violation in future.
(iv) In addition to above, GAIL reserves its right to initiate criminal
proceedings against the violating Bidder, if the allegations by Bidder
are found frivolous, untrue and misleading and may also impose
exemplary cost for the same.
(v) The Bidder will be entitled to claim as determined by the Independent
External Monitor, if the above (iv) is found incorrect.
(e) Independent External Monitors (IEMS)
The following 3 (three) Independent External Monitors (IEMs) have been
appointed by GAIL, in terms of Integrity Pact (IP) which forms part of GAIL
Tenders / Contracts.
(i) Shri V.K.Gupta (email id: [email protected] )
(ii) Shri Naresh Narad (email id: [email protected] )
(iii) Shri Anil Kumar (email id: [email protected] )
This panel is authorized to examine / consider all references made to it under
this tender. The Bidder(s), in case of any dispute(s) / complaint(s) pertaining to
this tender may raise the issue either with the designated officials in GAIL or
directly with the IEMs on the panel c/o Chief Vigilance Officer, GAIL (India)
Limited, GAIL Bhawan, 16, Bhikaiji Cama Place, R.K. Puram, New Delhi –
110066
4.3 Power of Attorney
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In case of a Single Bidder, Power of Attorney issued by the Board of Directors/ CEO /
MD / Company Secretary of the Bidder in favour of the authorised employee(s) of the
Bidder, in respect of the particular tender for signing the Bid and all subsequent
communications, agreements, documents pertaining to the tender and to act and take
any and all decision on behalf of the Bidder is to be submitted.
In case of a Consortium, Power of Attorney issued by Board of Directors/ CEO / MD /
Company Secretary of the Consortium Leader as well as Consortium Member(s) of
the Consortium in favour of the authorised employee(s) of the Consortium Leader, for
signing the documents on behalf of the Bidder, in respect of this particular tender, to
sign the Bid and all subsequent communications, agreements, documents pertaining to
the tender and act and take any and all decision on behalf of the Consortium are to be
submitted.
5 BIDDER ELIGIBILITY CRITERIA (BEC):
The Bidder Eligibility Criteria (BEC) are aimed at ensuring that a Bidder has the
necessary expertise and resources (whether financial as well as technical) to acquire,
own and to safely and efficiently operate the Vessels.
The Bidder can be a Single Bidder OR a Consortium (as defined in the ITT). The
Bidder shall meet the following eligibility criteria and agree to the conditions set out
below failing which the Bid shall be rejected:
5.1 Technical Criteria
The Bidder (a Single Bidder OR a Consortium) shall meet the following technical
criteria (the ―Technical Criteria‖):
5.1.1 Single Bidder:
The Bidder must have:
(a) in the preceding 7 (Seven) years prior to due date of submission of the Bid, ownership
experience with minimum 25% (Twenty Five percent) of equity directly or through its
parent company or 100% (One Hundred percent) subsidiary company in at least:
(i) 3 (Three) number of LNG vessel(s) if quoting for one Lot of 3 (Three) Vessels
plus 1(One) /2 (Two) Additional Vessels;
(ii) 4 (Four) number of LNG vessels if quoting for two Lots of 6 (Six) Vessels plus
1(One)/2 (Two) Additional Vessels; and
(iii) 5 (Five) number of LNG vessels if quoting for three Lots of 9 (Nine) Vessels
plus 1(One)/2 (Two) Additional Vessels.
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During the ownership of the Bidder, such LNG vessels should have been under time
charter hire for a duration of minimum 2 (two) years prior to the due date of
submission of bid and the carrying capacity of such LNG vessels should not be less
than 135,000 (One Hundred Thirty Five Thousand) m3; and
(b) experience of LNG vessel management of at least 1 (One) LNG vessel, with capacity
not less than 135,000 (One Hundred Thirty Five Thousand) m3 of Membrane OR
MOSS type containment system and DFDE / TFDE / steam type propulsion system,
for a period of at least 1 (One) year in preceding 7 (Seven) years prior to due date of
submission of the Bid;
OR
experience of LNG vessel management of at least 1 (One) LNG vessel, with capacity
not less than 135,000 (One Hundred Thirty Five Thousand) m3 of Membrane OR
MOSS type containment system and DFDE / TFDE / steam type propulsion system,
through a Vessel manager engaged by the Bidder with its complete responsibility, for
a period of at least 1 (One) year in preceding 7 (Seven) years prior to due date of
submission of the Bid and;
(c) experience of supervising LNG Ship building contract(s) including framing contract
conditions and vessel specifications, plan approval and construction supervision in
preceding 7 (Seven) years for at least one LNG vessel having a capacity not less than
135,000 (One Hundred Thirty Five Thousand) m3 of Membrane OR MOSS type
containment system and DFDE / TFDE / steam type propulsion system; and
(d) Similar to proposed Vessel, the Bidder must have the past experience of containment
and propulsion system either both (containment and propulsion system) in one LNG
vessel or separately in different LNG vessels, of capacity not less than 135,000 m3
in
preceding 7 (Seven) years prior to due date of submission of the Bid.
5.1.2 Consortium Bids:
(a) The total number of members in a consortium including the Leader shall not be more
than 04 (four).
(b) The Leader of the consortium must meet the experience criteria mentioned above at
5.1.1 (a) and 5.1.1 (b) OR 5.1.1(a) and 5.1.1 (c), of the Technical Criteria; and
(c) Other Consortium Member(s) [other than the Leader] must meet at least either 5.1.1(b)
or 5.1.1 (c) of the Technical Criteria.
In case, any such Consortium member does not meet either 5.1.1 (b) or 5.1.1 (c) of the
Technical Criteria, but has the ownership experience in at least one LNG vessel of
135,000 M3 OR non-LNG Vessel of 100,000 (One Hundred Thousand) DWT or
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equivalent capacity for transportation of liquid hydrocarbon in the preceding 7 (Seven)
years prior to due date of submission of the bid with minimum 10% of equity
ownership for a duration of minimum 2 (Two) years, the same is also acceptable,
provided that number of such member shall not be more than one in a consortium.
(d) Similar to proposed vessel, the Leader of Consortium must have the past experience of
containment and propulsion system either both (containment and propulsion system)
in one LNG vessel or separately in different LNG vessels of capacity not less than
135,000 m3
in preceding 7 (Seven) years prior to due date of submission of the Bid.
(e) The Bidding Consortium must collectively meet the Technical Criteria at (a), (b), (c)
and (d) as specified in Section 5.1.2 above;
5.2 Financial Criteria:
5.2.1 Annual Turnover:
(A) Single Bidder:
The Bidder must have the following minimum annual turnover in any one of the
preceding 3 (Three) financial years:
(i) Minimum annual turnover of USD 45,000,000 (United States Dollars Forty
Five Million) for one Lot of 03 (three) Vessels and USD 15,000,000 (United
States Dollars Fifteen Million) for each Additional Vessel;
(ii) Minimum annual turnover of USD 90,000,000 (United States Dollars Ninety
Million) for two Lots of 03 (Three) Vessels each and USD 15,000,000 (United
States Dollars Fifteen Million) for each Additional Vessel;
(iii) Minimum annual turnover of USD 135,000,000 (United States Dollars One
Hundred Thirty Five Million) for three Lots of 03 (Three) Vessels each and
USD 15,000,000 (United States Dollars Fifteen Million) for each Additional
Vessel.
(B) Consortium Bid:
The Consortium Leader and other Consortium Member(s) must have following
minimum annual turnover in any one of the preceding 3 (Three) financial years:
(i) Consortium Leader: Same as for the Single Bidder as mentioned in Section
5.2.1 (A) above.
(ii) Other Consortium Member(s): Individual Consortium member must have a
minimum annual turnover of USD 22,500,000 (US Dollars Twenty Two &
Half Million)
5.2.2 Net Worth
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The Net Worth of Single Bidder / Consortium Leader should not be less than USD
45,000,000 (United States Dollars Forty Five Million) as per the last audited financial
statement. The Net Worth of other Consortium Member(s) should be positive.
General Note:
(1) Applicable for Consortium Bid only:
In the event of being successful, contract shall be awarded to Consortium.
After the notification of award and before signing of Time Charter Party
Agreement (TPA), the Consortium while creating Special Purpose Company
(SPC) for the vessel(s) may have a consortium member as largest shareholder
(other than the Leader) in the bidding Consortium as long as such member
meets the qualifying criteria of BEC (both Technical and Financial) meant for
the Leader mentioned above. However, Leader of Consortium must continue to
be the largest shareholder in at least one vessel under a Lot.
The bidding Consortium intending to do so, should mention the same upfront
in their bid and must furnish the following documents in their Technical Bid
(un priced bid) in respect of such member(s) intending to hold largest
shareholding in SPC:
(i) declaration in the format ANNEXURE 16 and
(ii) requisite documents in support of meeting BEC (both Technical and
Financial Criteria) applicable to Consortium Leader
(2) During the submission and processing of the Bid, the Bidder should not be
under holiday list of GAIL or blacklisted by any Govt. Dept./ Public Sector
Undertaking of the Indian Government. Further, no liquidation, bankruptcy,
court receivership or other similar proceedings should have been initiated or
pending against the Bidding Company or Consortium Leader or any
Consortium Member.
(3) The Bidder (Single Bidder / Consortium) shall comply with the Shipping
Development Circular No. 2 of 2002 issued by the DG Shipping on 8
November, 2002 and other applicable circulars, guidelines and directions
issued by the DG Shipping, as amended or modified or reissued from time to
time, if applicable.
(4) Net Worth shall be the subscribed and paid up share capital of an entity plus its
free reserves but excluding revaluation reserves, as reduced by accumulated
losses, intangible assets, and miscellaneous expenditure not written off.
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5.3 Documents to be submitted for compliance to BEC
5.3.1 Technical Criteria:
(A) The Bidder shall furnish the following documentary evidences along with the Bid in
support of meeting the requirement of 5.1.1 & 5.1.2 of Technical Criteria (as the case
may be):
(i) Copy of contract(s)/agreement(s) (for the ―Assignment‖) with the
Charterer/relevant client showing the scope of work / services and ownership
experience.
(ii) Copy of certificate issued by the Charterer/relevant client indicating execution
& performance of the respective contract/ agreement and showing reference of
contract/ agreement no., date, completion date etc. in support of meeting the
above criteria.
(B) The authentication of the documents submitted in support of the Technical Criteria of
BEC, shall be as under:
(i) Indian Bidder
(a) Duly certified / attested by a Chartered Engineer with legible stamp;
and
(b) Duly certified/attested by Notary Public with legible stamp
(ii) Foreign Bidder
(a) Duly certified / attested by Chartered Engineer/ licensed professional
engineer / or equivalent registered engineer of Bidder‘s country with
legible stamp and
(b) Certified true copies, duly signed, dated and stamped by an official,
authorized for this purpose in Indian Embassy/ High Commission in
Bidder‘s country. However, member countries of Hague Convention
1961, supporting documents pertaining to Technical BEC certified by
―Apostle‖ of Bidder‘s country shall also be acceptable
5.3.2 Financial Criteria
The Bidder shall submit following documents in support of meeting Financial Criteria
of BEC:
(A) Audited Financial Statement / Annual Report for immediate 3 (Three)
preceding financial years. In case the present tender has a Bid closing date up
to 30th
September of the relevant financial year and audited financial results of
immediate 3 (Three) preceding financial years is not available, the Bidder has
an option to submit the audited financial results of 3 (Three) years immediately
prior to relevant financial year. Wherever, the Bid closing date is after 30th
September of the relevant financial year, Bidder has to compulsorily submit
the audited financial results of immediate preceding 3 (Three) financial years.
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(B) In addition to above, the authentication of the documents submitted in support
of the Financial Criteria of BEC, shall be as under:
(i) Indian Bidder:
(a) ―Details of Financial capability of Bidder‖ in Format provided in the
tender, duly signed and stamped by a Chartered Accountant and
(b) Copy of audited annual financial statements submitted shall be duly
certified / attested by Notary Public with legible stamp.
(ii) Foreign Bidder:
(a) ―Details of Financial capability of Bidder‖ in Format provided in the
tender, duly signed and stamped by a Chartered Accountant / Certified
Public Accountant of the bidder‘s country; and
(b) Certified true copies of audited annual financial statements, duly
signed, dated and stamped by an official, authorised for this purpose
in Indian Embassy / High Commission in Bidder‘s country. However,
member countries of Hague Convention 1961, supporting documents
pertaining to Financial Criteria of BEC certified by ―Apostle‖ of
Bidder‘s country shall also be acceptable.
6.0 SHIPYARD ELIGIBILITY CRITERIA
The Shipyard Eligibility Criteria are aimed at ensuring that any Vessel is
designed, built and delivered by first class international Shipyards having
experience in the construction of LNG Vessels and that are able to provide a
level of quality in its design and workmanship that will minimise the risk of
disturbances in the operating life of the Vessel.
6.1 Technical Criteria for Shipyard:
(A) For Overseas Shipyard:
Considering the total number of Vessels to be built, and the limited number of
capable Shipyards worldwide, the Bidder may propose one or more Shipyards
for the construction of the proposed Vessels meeting following criteria:
(i) Must have constructed and delivered at least 01 (One) LNG Vessel of
capacity not less than 135,000 (One Hundred and Thirty Five
Thousand) m3 with Membrane or MOSS type containment system and
DFDE / TFDE/ steam type propulsion system in preceding 10 (ten )
years and such LNG Vessel should have been in service for at least 01
(One) year prior to the due date of submission of the Bid;
(ii) The proposed Shipyards where the offered Vessel would be built must
have past experience similar to the proposed containment and
propulsion system either both (containment and propulsion system) in
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one LNG Vessel or separately in different LNG Vessels, having vessel
capacity not less than 135,000 m3;
(iii) Must be licensed by Gaztransport & Technigaz (GTT) to build LNG
Vessels equipped with a membrane type containment system (No. 96
or Mark III) or should possess valid license for building MOSS type
containment system (as the case may be, based on the LNG Vessel
specified in its Bid);
(iv) Must be certified under ISO 9001 (Management Quality), ISO 14001
(Environment Management) and OHSAS 18001 (Safe and Healthy
Working Environment Management);
(v) Must have provided a confirmation of its total capacity to build LNG
Vessels of the type required by the present tender, order for number of
LNG vessels already received by the Shipyard during the same
construction period and commitment(s) from the proposed Shipyard for
the construction of offered Vessel(s) in the event of award;
(B) For Indian Shipyard:
Indian Shipyards shall be considered meeting the criteria in Section 6.1 (A)(i)
and 6.1 (A) (ii) above, based on their having a binding agreement for technical
collaboration / technology transfer with a Shipyard meeting the Shipyard
Eligibility Criteria specified in Section 6.1(A) (i) & 6.1 (A) (ii) above
(hereinafter referred to as ―Qualified Shipyard‖), with validity of such
agreement till the end of first dry-dock (in the event of award). Without
limitation, the terms of such technical collaboration / technology transfer shall
include inter-alia:
Training of the personnel of the Indian Shipyards in all aspects of basic
design and construction drawings design, development, construction and
testing of the Vessels, by the Qualified Shipyard;
The Qualified Shipyard agreeing to undertake supervision in all aspects
of design development including preparing production drawings,
drawings required for submission to owners, classification society and
flag administration, obtain approval, development, construction and
testing of the Vessels by the Indian Shipyard;
The Qualified Shipyard agreeing to undertake quality control of all
aspects of the design, development, construction and testing of the
Vessels by the Indian Shipyard;
The Qualified Shipyard agreeing to undertake oversight and assist in the
selection of vendors and sourcing of materials and personnel for the
design, development, construction and testing of the Vessels by the
Indian Shipyard;
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The Qualified Shipyard agreeing to license all requisite technology
(including for the containment system and the propulsion system)
required for the development, construction and testing of the Vessels by
the Indian Shipyard.
Providing support relating to post delivery of the Vessel i.e. services
during the guarantee period
Assist in Preparation of shipbuilding standards (inspection, practice and
quality standards)
Assist in establishing special testing facilities and construction equipment
required for LNG vessels in the shipbuilding yard.
6.2 Financial Criteria (both Overseas and Indian Shipyards):
(i) Must have minimum annual turnover of US$ 1,000,000,000 (United
States Dollars One Billion) as per the audited Financial Statement in
any of the preceding 3 (Three) financial years, on its own or together
with its parent company;
(ii) Must have Net Worth of at least USD 500,000,000 (United States Five
Hundred Million) as per the last audited Financial Statement, on its
own or together with its parent company;
Documents to be submitted for the Shipyard:
The following documentary evidences along with the Bid are to be submitted for
meeting the requirements at Section 6.1 above:
(i) Copy of contract(s)/ agreement(s) showing scope of work/services as well as
copy of a certificate issued by the Charterer / relevant client showing delivery
of the LNG vessel to the Shipyard towards meeting Section 6.1 (A)(i) above.
OR
A certificate issued by the Charterer / relevant client to the Shipyard showing
scope of work/services, date of delivery of the LNG vessel for meeting Section
6.1 (A) (i) above.
(ii) Copy of relevant documents for meeting Section 6.1(A)(ii) above.
(iii) Copy of valid License for meeting Section 6.1 (A)(iii) above,
(iv) Copy of certificates issued by a reputed Certification Agency for meeting
Section 6.1(A) (iv) above,
(v) Copy of confirmation letter from the proposed Shipyard for meeting Section
6.1 (A)(v) above,
(vi) Financial Statement / Annual Report including Audited Balance Sheet and
Profit & Loss Account Statement of the Shipyard for immediate 3 (Three)
preceding financial years for meeting 6.2(i) and 6.2(ii) of the above criteria. In
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case the present tender has a Bid closing date up to 30th
September of the
relevant financial year and audited financial results of immediate 3 (Three)
preceding financial year being not available, the Bidder has an option to submit
the audited financial results of three years immediately prior to relevant
financial year. Wherever, the Bid closing date is after 30th
September of the
relevant financial year, the Bidder has to compulsorily submit the audited
financial results of immediate preceding 3 (Three) financial years.
(vii) In case of Indian Shipyard meeting the criteria in Section 6.1(A)(i) & 6.1(A)(ii)
above based on the qualification of a Qualified Shipyard, a binding agreement
between the Indian Shipyard and the Qualified Shipyard is to be submitted in
the manner specified under Section 6.1 (B) above.
Note : The authentication of the documents submitted in support of meeting the
Technical Criteria and financial Criteria for Shipyard shall be in the same
manner as specified above under Section 5.3.1 (B) and 5.3.2 (B) respectively.
7 REQUIREMENTS FOR THE SHIP MANAGER
The ship manager proposed by the Bidder must meet the requirements specified at
Section 5.1.1(b) above, and shall be subject to approval by GAIL, and be to the
satisfaction of Sabine Pass LNG LP, and Dominion Cove Point LNG LP.
8 PARENT/ PROMOTER COMPANY GUARANTEE
An Owner‘s Guarantee in the form specified in Appendix IV to the Proforma TCP
shall be provided to Charterer simultaneously with or prior to, the execution of the
Time Charter Agreement (the ―Owner’s Guarantee‖). The Owner‘s Guarantee shall
be provided by the largest shareholder of the Owner (or where the largest shareholder
has been qualified in the bidding process, on the basis of the credentials of a parent, by
such parent company) or by any other bank/ financial institution proposed by the
Owner and accepted by Charterer in its sole discretion.
The Owner‘s Guarantee shall continue to be valid and effective upto 90 days after the
delivery of the Vessel (including delay notice period if any) pursuant to the Time
Charter Agreement.
9 COMPLIANCE WITH TENDER DOCUMENTS
9.1 The Bidder shall comply with the following:
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(a) Bidders presenting a Bid that does not meet the Eligibility Criteria (both in
relation to Bidder itself and the proposed Shipyard) shall be disqualified from
the tender process.
(b) The Tender Documents specify the requirements with which Bidder‘s Bid shall
comply, and consist of the documents prescribed under this ITT (including the
presented at section 5.3 above).
(c) The Bidder‘s Bid shall be based upon and strictly comply with the contents and
the requirements of the Tender Documents.
(d) The Bidders are requested to submit their Bid in compliance with the Tender
Document, and to avoid seeking deviation(s) to the terms of the Tender
Documents. However, if unavoidable, minor deviation(s), if any, may be
provided through Annexures 5 and 6 attached to the present instructions. The
Bid shall not be conditional upon the acceptance by GAIL of any minor
deviations provided through Annexure 5 or Annexure 6, and such deviations
may be accepted or rejected by GAIL at its sole discretion. Bidders may also
note that no price implication shall be permitted on account of withdrawal of
deviation(s) at a later date. It is clarified that the terms prescribed by GAIL in
the Proforma TPA are the minimum terms to be included in the final tripartite
agreement to be executed with the shipbuilder.
(e) Each Bid shall be firm, irrevocable and unconditional, and capable of
acceptance by GAIL within the relevant validity period.
9.2 Time Charter Documents
The Time Charter Documents will substantially be in the form of the Proforma TCP
including appendices and the Proforma TPA including appendices, save as otherwise
agreed between GAIL and the successful Bidder.
9.3 Absence of Shareholder Guarantee
(a) There shall be no actual or implied guarantee from, or any form of actual or
implied recourse against, any of the Affiliates or shareholders of GAIL in
relation to any Time Charter Documents to be entered into between GAIL and
any successful Bidder.
(b) If the Time Charter Documents are to be entered into by an Affiliate of GAIL,
GAIL will provide a performance guarantee in relation to the Time Charter
Documents to be entered into by such Affiliate. However, there shall be no
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actual or implied guarantee from, or any form of actual or implied recourse
against, any of the other Affiliates or against the shareholders of GAIL in
relation to such Time Charter Documents.
9.4 Interaction with Financiers
GAIL will cooperate with Bidders in finalising their financing arrangements in a
reasonable manner without any cost to GAIL; provided that Bidders and their lenders
need to be aware that the following items will not be made available to Bidders or
their lenders by GAIL:
(i) A payment security mechanism for Bidders or their lenders;
(ii) Independent consultant reports on LNG or gas marketing, or shipping;
and
(iii) Access to any of the engineering, procurement and construction (EPC)
contracts, the SPA or TSA or any other agreements entered into by
GAIL with third parties, or any other document that is deemed to be
confidential in nature by GAIL in its sole discretion. To the extent
necessary, GAIL may provide extracts or summaries of the relevant
portions of the aforesaid documents.
9.5 Pre-Bid Meeting and Clarifications to Tender
(a) A pre-bid meeting shall be organized by GAIL to respond to the various
queries/ clarifications to the Tender Documents. A prospective Bidder
requiring any clarification with respect to the Tender Documents may notify
GAIL in writing or by fax or e-mail to reach GAIL at least 5 (Five) days prior
to the pre-bid meeting in the format attached to the ITT. Subsequent to the pre-
bid meeting, GAIL‘s responses (including an explanation of the query but
without identifying the source of the query) will be hosted on GAIL and other
relevant website(s).
(b) At any time prior to the Bid due date, GAIL may, for any reason, whether at its
own initiative or in response to a clarification requested by a prospective
Bidder, modify the Tender Documents.
(c) If any of the clarifications requires an amendment to the Tender Documents, a
corrigendum will be issued. The clarifications and corrigendum, if any will be
hosted on GAIL and other relevant website(s) and intimation shall be sent to all
prospective Bidders.
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(d) In order to afford prospective Bidders, reasonable time in which to take the
amendment into account in preparing their bids, GAIL may, at its discretion,
extend the Bid due date.
9.6 Tentative Schedule of Tender Activities
9.6.1 The tentative schedule of tender activities shall be as under:
The aforesaid schedule is tentative and may vary in accordance with the requirements
of GAIL.
9.6.2 The Bidder agrees that the Time Charter Agreement shall be executed by GAIL and
the SPC within 30 (Thirty) days of the issuance of the notification of award by GAIL.
Prior to the execution of the Time Charter Agreement, the SPC shall submit to GAIL,
executed copies of the Shipbuilding Contract. The tripartite agreement shall be
executed simultaneously with the execution of the Time Charter Agreement.
9.7 Late submission of Bids
(a) No late Bids/ offers after due date and time shall be permitted in E-Tender
system/portal, as Bidders will not have any access to the E-Tender portal for
this ITT beyond the deadline for submission of the Bids. If a Bidder intends to
modify the Bid already submitted, they may do so, on or before the deadline
for submission of Bids.
Activity Tentative Date
Publishing of NIT in newspapers 31st July, 2014
Tender Documents available on websites From 1st Aug. to 30
th Oct. 2014,
1400 Hrs (IST)
Forwarding of pre-bid queries by prospective
Bidders
14th
Aug., 2014
Pre-bid meeting 22nd
Aug. 2014
Due date for submission of bids 30th
Oct. 2014
Opening of Priced Bids of Techno-
commercially acceptable Bidders
1st week of Jan. 2015
Notification of award by GAIL Feb. 2015
Signing of the Time Charter Agreement Mar. 2015
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(b) Bidders are advised in their own interest to ensure that bids are uploaded in e-
procurement system/ portal well before the closing date and time of submission
of Bids.
(c) No Bid can be modified after the dead line for submission of Bids.
(d) No manual Bids/ offers including telegraphic/ fax/ e-mail offers shall be
permitted.
9.8 Cost of Bidding
The Bidder shall bear all costs associated with the preparation and submission of the
Bid, and GAIL, will in no case, be responsible or liable for these costs, regardless of
the conduct or outcome of the tender process.
9.9 Bid Currency
(a) The Bidders are required to quote only in US Dollars and shall receive
payments in US Dollars.
(b) Currency once quoted will not be allowed to be changed. GAIL shall not
compensate Bidder(s) for any exchange rate fluctuation.
9.10 Period of Validity of Bids
(a) Subject to (b) and (c) below, Bids shall be kept valid for 6 (six) months from
the Submission Date (i.e. the due date of submission of Bids). A Bid with a
shorter validity period shall be rejected by GAIL as non-responsive. Bidders
may note that GAIL intends to award contracts for the Vessels within the
aforesaid period of Bid validity.
(b) However, GAIL may at its option either (i) award contracts for the Vessels
within the aforesaid period of Bid validity, or (ii) treat the period of Bid
validity as extended for an additional period of 6 (six) months beyond the
original period of Bid validity (the ―Extended Period‖). During the Extended
Period, the quoted Fixed Daily Charter Rate in the priced Bid shall be escalated
in accordance with the following formula:
The Fixed Component of Hire Charge will get revised as under:
Cr = 0.20*Co + 0.80*Co*(0.50* BSPn/BSPo + 0.30* CPIn/CPIo + 0.20* LIBn/LIBo)
Where
Co = Fixed Component part of the daily charter hire rate quoted
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Cr = Revised Fixed Component part in case of award in the extended
period
BSPn = is the Average Ship building steel purchasing price index of six calendar
months immediately preceding the month of award of vessels. Reference
Indices as published in http://www.meps.co.uk/ShipBuildingIndex.htm for
Asia region
BSPo = is the Average Ship building steel purchasing price index of six calendar
months immediately preceding the month of last date of original bid validity.
Reference Indices as published in
http://www.meps.co.uk/ShipBuildingIndex.htm for Asia region
CPIn = is the Average US Employment Cost Index of six calendar months
immediately preceding the month of award of vessels. Reference Indices as
published under head Manufacturing in
http://www.bls.gov/news.release/pdf/eci.pdf
CPIo = is the Average US Employment Cost Index of six calendar months
immediately preceding the month of last date of original bid validity.
Reference Indices as published under head Manufacturing in
http://www.bls.gov/news.release/pdf/eci.pdf
LIBn = is the Average one month LIBOR rate of six calendar months immediately
preceding the month of award of vessels. Reference Indices as published in
http://www.bloomberg.com/quote/BP0003M:IND/chart
LIBo = is the Average one month LIBOR rate of six calendar months immediately
preceding the month of last date of original bid validity. Reference Indices as
published in http://www.bloomberg.com/quote/BP0003M:IND/chart
Thus, in the case of award of Contract in the extended bid validity period, the total
daily charter hire rate shall be revised as:
Revised Daily Charter Hire Rate = Cr+O
(where O = Opex Part of the Daily charter hire rate quoted).
The Revised Daily Charter Hire Rate shall be maximum of either original Daily
Charter Hire Rate quoted or Revised Daily Charter Hire Rate as determined above.
(c) The Bidder shall not be entitled during the original period of Bid validity or the
Extended Period, to revoke or cancel its Bid or to vary the Bid given or any
term thereof.
(d) Notwithstanding Section 9.10(a) above, GAIL may solicit the Bidder‘s consent
to an extension of the period of Bid validity and Bid Security beyond the
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original period of Bid validity or the Extended Period, as applicable. The
request and the responses thereto shall be made in writing by fax or email.
9.11 Modification and Withdrawal of Bids
(a) The Bidder may modify or withdraw his Bid after the Bid submission,
provided that the modification/ withdrawal is done in GAIL‘s e-procurement
system / e-portal prior to the Bid due date & time.
(b) No Bid shall be allowed to be withdrawn in the interval between the deadline
for submission of bids and the expiration of the period of Bid validity or the
Extended Period, where applicable.
9.12 Contacting GAIL
(a) If any Bidder wishes to contact GAIL on any matter relating to his Bid, from
the time of Bid opening to the time the contract is awarded, it should do so in
writing.
(b) Any efforts by a Bidder to influence GAIL in Bid evaluation, Bid comparison
or contract award decisions may result in the rejection of the Bid.
9.13 Submissions of Bids in Single Stage Two Bid System
GAIL invites bids, under a single-stage-two bid system, for performance of the work
and activities covered under the tender document. All Bids are to be completed and
submitted to GAIL in accordance with the Bid submission procedure set forth in the
Tender Documents.
The Bidder should note that the format of Forms have been inserted for the
convenience of the Bidder and may not exhaustively enumerate or describe various
information required to be provided by the Bidder under the Tender Document. The
Bidder should ensure that all the information required to be provided by it in terms of
the Tender Documents is included in its Bid whether or not a particular Annexure
makes provision for submission of such information and/ or whether or not a format
for submission of such information is incorporated in the Tender Documents.
The closing date and time (such date and time, the ―Submission Date” for submission
of the Bid is 14:00 hrs (Indian Standard Time) on 30th
October,2014.
9.14 Content of Bid
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The Bid to be submitted by the Bidder shall contain the following:
(a) The Techno-Commercial (Unpriced) Bid along with all documents meeting
Bidder Eligibility Criteria, Shipyard Eligibility Criteria, all forms as provided
in the present Tender Documents duly filled in, signed & stamped, blank
Schedule of prices (i.e. without prices in the price format, in support of having
submitted prices in the price Bid strictly in the format of the Schedule of Rates
of the ITB), Tender Documents and it‘s addenda / corrigenda (if any),
proforma Agreements (Proforma TCP, Proforma TPA, Proforma SHA,
Shipbuilding Contract etc.) duly signed & stamped, all other information /
documents sought in the tender etc. are to be uploaded in the specified area in
GAIL‘s e-tender portal;
(b) Bid Security, Integrity Pact and Power of Attorney, and the envelope
containing the Cost of Vessel as per Request for Proposal (RFP) are to be
submitted in physical form in addition to uploading a copy of the same in the
Techno-Commercial (Unpriced) Bid;
(c) The Priced Bid strictly in the format of prices duly signed is to be submitted in
the specified area in GAIL‘s E-Tender portal. The Priced Bid shall not contain
any techno-commercial conditions, as no cognisance of such conditions shall
be taken by GAIL, and any such inclusion may lead to rejection of the Bid.
10 TECHNO-COMMERCIAL UNPRICED PROPOSAL
10.1 General and LNG Shipping Experience
Bidder shall include the following information with respect to the Bidder and its
LNG shipping experience. In the event Bidder is a Consortium, the information
described below shall be submitted for each Consortium Member.
(a) General information:
(i) Details of ownership, shareholding, details of main shareholders (state,
public, private) with respective percentage participations etc. of the
Bidder, and their actual Control over Bidder and its parent companies;
(ii) Same details as above with respect to Bidder‘s proposed ship manager;
(iii) In case of a Bidding Consortium, a signed copy of the Consortium
Agreement as per Section 13.3, and the power of attorney signed by all
Consortium Members, in favour of the consortium leader.
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(b) LNG Shipping Experience:
(i) List of LNG vessels owned by the Bidder or its parent company(s)/
100% subsidiary company(s) at present (including any LNG vessels that
are ordered on a firm basis or under option), with details of size, delivery
date, containment, propulsion, shipyard. Bidder should indicate where
such vessels are leased, bareboat chartered to or from a third party,
owned by a joint venture or consortium and where management is
performed by them or a third party;
(ii) LNG vessels managed (at present and in the past) by Bidder‘s proposed
ship manager (with details of size, delivery date, containment system,
propulsion, shipyard, and duration of management services);
(iii) Relevant extracts of the latest TMSA audit of the proposed ship manager
(as per OCIMF recommendations) evidencing a good level of
management skill in the proposed ship manager;
(iv) List of all time charter party agreements concluded over the last 5 (Five)
years with name of the relevant vessel and the charterer and the duration
of such charter;
(v) List of current and past joint venture arrangements (including names of
partners and vessels to which such joint venture arrangements apply);
and
(vi) List of LNG new-building projects where Bidder has been responsible
for plan approval and/or site supervision (with details of size, delivery
date, containment system, propulsion and shipyard).
10.2 Project Organisation
Bidder will provide details as part of its Techno-Commercial (Unpriced) Bid with
respect to:
(a) Organisation chart giving designation, authority, disciplines, experience,
number and names of key personnel that are likely to be involved in all work
related to plan approval, building supervision, management and operation of
the Vessels, which the Bidder intends to charter; and
(b) Detailed anticipated plan approval and building supervision teams (including
relevant experience, organisation and reporting lines, number, qualifications
and curriculum vitae.
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10.3 Technical Information for Proposed Vessels
Bidder will include the following information in relation to the proposed Vessels in its
Bid (separately for each Vessel):
(a) a summary of the technical description/partuclars of the Vessel in the form
prescribed at Annexure 7;
(b) the guaranteed performance figures that shall be applied as performance
warranties of the relevant vessel under the Time Charter Agreement, in the
format provided in Annexure 8.
10.4 Financial Statements and Insurances
Bidder is required to include the financial and insurance details listed below in its
Techno-Commercial (Unpriced) Bid. In the event Bidder is a Consortium, such
information shall be submitted for each Consortium Member:
(a) Bidder‘s audited financial statements for the last 3 (Three) financial years;
(b) Name and contact details of the guarantor(s) (that is for the Performance Bank
Guarantee and the Owners Guarantee), together with a confirmation that such
proposed guarantor(s) is (are) willing to provide the guarantee referred to in the
Proforma TCP. Any such guarantor shall be subject to the approval of GAIL;
(c) Audited financial statements of the proposed performance guarantor(s) for the
last 3 (Three) years; and
(d) Bidder‘s standard insurance policies with respect to hull and machinery and
P&I insurance.
10.5 Ownership Structure and Financing Plan
(a) In the event of award, the Vessel shall be owned by the SPC, as required
pursuant to the Tender Documents.
(b) Bidder shall provide detailed information with respect to:
(i) The ownership structure (including details of the proposed contracting
entity) that Bidder intends to implement with respect to the proposed
Vessels, including the proposed jurisdiction for incorporation of the
SPC;
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(ii) The financing plan for the construction of the Vessels including, but not
limited to, sources of funds, debt/ equity ratio, timeframe and relevant
financial terms; and
(iii) Evidence of Bidder‘s ability to secure shareholder support and external
financing as described in the financing plan by way of a Letter of
Comfort substantially in the form set forth in Annexure 15 from its
proposed banks/financial institutions. Where Bidder has not been able to
obtain such letters of comfort for finance for the Vessels by the
Submission Date, Bidder should provide GAIL with information in
relation to the progress of its financing efforts (including any
commitments or firm offers it has received from its banks). However, the
Bidder shall provide, within 2 (two) months from the Submission Date, a
letter of comfort substantially in the form set forth in Annexure 15 from
its bank / financial institution committing availability of finance for the
Vessel(s) in the event of award, failing which the Bid of the Bidder shall
be liable for rejection.
10.6 HSE and Quality Assurance
(a) Bidder shall submit Bidder‘s health, safety and environment performance
records for a period of two (2) years prior to the Submission Date, including:
(i) Total number and records of fatalities, dangerous occurrences, permanent
disability accidents, lost time injury (LTI), lost time injury frequency
(LTIF), total recordable cases (TRC), first aid cases (FAC);
(ii) Total time lost as a result of or during any such incident (on a per
incident basis and in the aggregate);
(iii) Any incidents or accidents, including spills or environmental citations,
collision, allision, grounding, stranding, other third party damages;
(iv) History of claims made to P&I Club pertaining to marine casualty and
cargo claims, or other third party liability insurer; and
(v) Record of any ―near miss‖ incidents recorded under Bidder‘s HSE
policy.
(b) Bidder shall submit the following information with respect to any LNG vessels
under control, management or ownership of Bidder and/ or Bidder‘s proposed
manager:
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(i) Records of any off-hire incurred during the previous 3 (Three) years; and
(ii) port state detentions of, or other violations during the previous 5 (Five)
years; and
(c) The latest ―Vessel Management and Self-Assessment 2‖ report submitted to
OCIMF.
(d) Bidder should be ready to provide, upon request of GAIL, further information
(including if available any root cause analysis) in connection with any of the
accidents, incidents and claims referred to above and, where relevant, a
description of any corrective and preventive actions taken as a result of such
occurrences with a view to eliminating the risk of re-occurrence.
11 PRICED PROPOSAL
11.1 Form and Content of Priced Bid
(a) Bidder‘s Priced Bid for each Vessel will contain the Fixed Daily Charter Rate,
the Opex, and the escalating rate of the operating cost element (Opex) as
described below.
(b) Bidder shall strictly adhere to the format of the Schedule of Rates provided in
Annexure 9, as any modification, alteration or deviation from the format shall
be liable for rejection of the Bid.
(c) Schedule of Rate duly signed (digitally), shall be submitted in specified folder
of E-Tendering portal.
11.2 Time Charter Rate for Vessels
(a) Bidder shall offer a daily time charter rate for Vessels containing the following
elements:
(i) Fixed Daily Charter Rate: a fixed, non-escalating daily charter rate
(expressed as US$/day amount) (―Fixed Daily Charter Rate‖). The
Fixed Daily Charter Rate should be provided for the base charter period
for 20 (Twenty) years for Vessels from Overseas Shipyards and 17
(Seventeen) years for Vessels from Indian Shipyards and any extension
period(s) in accordance with the Proforma TCP.
(ii) The operating cost element: a fixed operating cost element (expressed
as US$/day amount) (―Opex‖) adjustable on a yearly basis by
providing a constant escalation factor.
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11.3 Unconditional, Firm Priced Offers - Currency
(a) The prices submitted by the Bidder in its Priced Bid shall be firm and not
subject to any exchange rate fluctuations, nor any form of indexing.
(b) A conditional or suggestive Bid submitted by a Bidder shall be liable for
rejection.
(c) All prices and rates shall be submitted in United States Dollars (US$).
11.4 Cost of Vessel
In addition to the Priced Bid and the Techno-Commercial (Unpriced) Bid, the Bidder
shall in a separate sealed envelope provide the estimate of the cost of the each Vessel
under the shipbuilding contract (to be provided separately for each Vessel) in the
manner provided in Request for Proposal (RFP). The aforesaid envelopes containing
the cost of the Vessels shall be opened at the time of the opening of the Priced Bids.
12 EQUITY OPTION
12.1 Special Purpose Company (SPC)
Bidder shall in respect of each Vessel awarded pursuant to this tender incorporate
(prior to execution of any Time Charter) an SPC and inform GAIL of the shareholders
of the SPC.
12.2 Equity Options
(a) Subsequent to formation of a SPC; GAIL (or its Affiliates) through the ―GAIL
Equity Option‖ and Shipping Corporation of India (―SCI‖ or its Affiliates,
such entity being the ―SCI Shareholder‖) through the ―SCI Equity Option‖
(and the GAIL Equity Option and SCI Equity Option together being the
―Equity Options‖) reserves the right to step-in till delivery of the Vessels and
can acquire up to 10% (ten percent) and 26% (twenty six percent) of the
shareholding and voting rights in the SPC respectively;
(b) Each of the above Equity Options may be exercised independently (in whole or
in part) at any time prior to the delivery of Vessel by serving a notice in writing
upon Bidder and the shareholders of the SPC. In such notice, the GAIL
Shareholders and SCI Shareholders (as the case may be) shall confirm the
equity participation in the SPC.
(c) If an Equity Option is exercised, Owner shall (and shall procure that the
shareholders of the SPC shall):
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(i) take all actions required to complete the transfer of the shares in such
amount and of such nature as is necessary to effect the exercise of the
Equity Option (the ―Acquired Shares‖), which Acquired Shares shall be
transferred free of all encumbrances; and
(ii) amend the shareholders agreement between the shareholders of the Owner
in the manner required to reflect the terms of the Proforma SHA.
(d) At any time after the transfer of the Acquired Shares, each of the GAIL
Shareholder and, as the case may be, SCI Shareholder shall (but always in
proportion to their respective shareholding in the SPC and provided other
shareholders are subject to the same obligations) make such equity
contributions to the share capital of the SPC (directly or through subordinated
shareholder loans) in accordance with any calls for such equity contributions
made by the board of directors of the SPC. It is clarified that the Equity Option
will only be exercised after the achievement of financial closure of the SPC.
(e) Bidder shall submit as part of its Bid a draft of the shareholder agreement it
proposes to enter into with respect to the SPC. Such shareholder agreement
shall be amended to incorporate the terms of Proforma SHA provided as
attachment with Proforma TCP in the event that GAIL Sharholder(s) and/ or
SCI Shareholders(s) exercises the Equity Option.
(f) The Equity Option shall be priced at par i.e. face value of the shares as
prescribed under the shareholders agreement, without any premium or where
shares have been issued to any other shareholder at a value lower than that the
face value of the share, at such lower value.
13 CONSORTIA
13.1 Consortium Leader & members
(a) If the Bid is submitted by a Consortium, the Bid shall include a power of
attorney executed by each Consortium Member designating and appointing the
Consortium Leader and authorising the Consortium Leader to sign the Bid on
behalf of the Consortium, and to act for and bind the Consortium in all matters
relating to this tender process and the Consortium‘s Bid.
(b) The maximum number of Consortium Members, including the Consortium
Leader, shall not exceed 4 (Four) parties.
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(c) Any Bidder (whether a single entity or a Consortium Leader or a Consortium
Member) directly, or through an Affiliate, cannot submit more than one Bid.
Subsequent to the submission of the Bid, neither Consortium Leader, nor any
Consortium Members may be changed without the prior written approval of
GAIL.
(d) In the event of being successful for a Lot(s) and/ or Additional Vessel(s), the
contract shall be awarded to the Consortium. After the notification of award
and before signing of the Time Charter Agreement, the Consortium while
creating the SPC for the Vessel(s) may have a Consortium Member (other the
Consortium Leader) as largest shareholder, so long as such Consortium
Member meets the the Bidder‘s Eligibility Criteria as applicable to the
Consortium Leader, and the aggregate Vessels awarded to the Consortium is
more than one (1). However the Consortium Leader must continue to be largest
shareholder in at least one (1) Vessel. Further, where the Consortium Member
is so designated as the largest shareholder in any SPC, all shareholding
requirements specified herein for such SPC, shall thereafter be applied to the so
interchanged Consortium Leader and the so interchanged Consortium Members
respectively.
The Consortium intending to do so, shall mention the same upfront in their Bid
and must furnish the following documents in their Techno-Commercial
(Unpriced) Bid in respect of such Consortium Member(s) intending to hold the
largest shareholding in the SPC:
(i) A declaration in the format specified in Annexure 16; and
(ii) Requisite documentation in support of meeting Bidder‘s Eligibility
Criteria as applicable to the Consortium Leader (both technical and
financial);
(e) The Consortium Leader shall have overall responsibility for the preparation,
submission, clarification and negotiation of the Consortium‘s Bid (including in
relation to coordinating the Consortium‘s efforts in relation to the financing of
the acquisition of the Vessels offered by the Consortium).
13.2 Liability
(a) If a time charter contract is awarded to a Consortium, the Consortium shall
ensure that the Consortium Members (who shall also be shareholders of the
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SPC) shall cause the issue of an Owner‘s Guarantee in accordance with the
terms of the Tender Documents.
(b) If the Equity Option is exercised by GAIL and/ or SCI, such liability shall not
extend to the GAIL Shareholder and/ or SCI Shareholder, who shall remain
severally liable (to the extent of their equity interest) for the performance of the
SPC under the Time Charter Documents.
13.3 Consortium Agreement
(a) Bidder shall submit as part of its Bid, a signed copy of the Consortium
Agreement. GAIL may reject the Bid of any Bidder whose Consortium
Agreement does not comply with such requirements.
(b) The Consortium Agreement shall satisfy/ include, meet the following
requirements:
(i) Indicate the name of the Vessels‘ manager (who meets the requirements
set out in these instructions, and the proposed registry of the Vessels);
(ii) Confirm that in the event a Consortium is qualified by GAIL on the basis
of the Consortium meeting the Eligibility Criteria and becomes the
selected Bidder, the relevant Consortium Member(s) shall constitute an
SPC. Such SPC will undertake the role of the registered owner of the
Vessel; and
(iii) The Consortium Leader shall hold the largest shareholding participation
in the Consortium with a minimum of 26 % (Twenty Six percent)
participation interest or shareholding and voting rights (as applicable) in
the Consortium and also in the SPC, and that each of the other
Consortium Member(s) shall hold a minimum of 10 % (ten percent)
participation interest or shareholding and voting rights (as applicable) in
the Consortium and the SPC. The aforesaid minimum requirements
relating to shareholding and voting rights in the SPC for the Consortium
Leader and the Consortium Members shall remain unchanged upon the
exercise of the Equity Option.
(iv) The Consortium Leader shall be named, and shall communicate with
GAIL on all matters relating to the obligations arising from the Tender
Documents and shall, without prejudice to Sub-Section (d) below, make
good any shortfall in financial contributions by other members of the
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Consortium until the delivery of the LNG Vessel under the Time Charter
Agreement. Provided that if GAIL and SCI, or their Affiliates acquire
any participation interest/ shareholding and voting rights in the
Consortium or the SPC, the Consortium Leader shall not be liable to
make good any shortfall in the financial contributions that GAIL and
SCI, or their Affiliates may be required to make pursuant to acquisition
of such participation interest/ shareholding and voting rights. The
Consortium Leader shall have overall responsibility for performance of
the Bidder's obligations under the Tender Documents and for liaising
with the lending institutions and mobilizing debt resources for fulfilment
of the SPC obligations under the Time Charter Agreement;
(v) description of the roles, responsibility and share of each of the
Consortium Members, especially with respect to plan approval,
construction supervision, ship management.
(vi) statement that the Consortium Members are jointly and severally liable
for the performance of the obligations of the Consortium until the
execution of the Time Charter Agreement with the SPC.
(vii) that GAIL and SCI shall have the option to acquire themselves and/or, to
nominate their subsidiaries to acquire, up to 10% (ten percent) and 26%
(twenty six percent) respectively of the participation interest/
shareholding and voting rights as Charterer‘s group in the SPC.
(viii) that GAIL / SCI are not liable in any matter in discussions / relationship
with Shipyard each of the Consortium Members and confirm that the
Consortium Members are jointly and severally liable for the performance
of the obligations of the Consortium and SPC arising from the Tender
Documents up to the execution of the Time Charter Agreement with the
SPC.
(ix) that the Consortium Members shall procure that the SPC shall, at all
times comply with all applicable Laws including all policies, guidelines,
regulations, circulars and directions issued by DG Shipping of India /
Ministry of Shipping with respect to crewing requirements of ships,
operation and management of the Vessel and any other matter in
connection with the Vessel.
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(x) that the Vessel flag and the country of registry shall be approved by the
Charterer.
(xi) details such as the legal status of the Consortium Members, structure of
the Consortium, name of the contact person, address, telephone number,
place of and country of registration for each Consortium Member, and
the percentage shareholding of each Consortium Member.
13.4 Shareholders Agreement in respect of Vessels
(a) Bidder shall submit as part of its Bid a copy of the shareholder agreement the
Consortium Members intend to enter into. Such shareholder agreement shall
comply with the requirements of these Instructions to the Bidders. GAIL may
reject the Bid of any Bidder whose shareholder agreement does not comply
with such requirements.
(b) The shareholding of the SPC shall be owned directly, in the same proportion as
the respective interests of the Consortium Members under the Consortium
Agreement and there shall be no change in the ownership of the shares of the
SPC without the prior written consent of GAIL; provided that this restriction
shall not apply in case of exercise of the Equity Options.
(c) Prior to execution of any Time Charter Documents, the Consortium Members
shall enter into a shareholders' agreement for each SPC. Such shareholders'
agreement(s) shall comply with the same requirements as those specified for
the Consortium Agreement.
(d) The shareholders' agreements shall remain in force until the expiry of the
relevant Time Charter Documents.
(e) The shareholders' agreements shall be approved by GAIL prior to execution of
any Time Charter Documents and there shall be no modification of or addition
to the terms of the shareholders' agreement without GAIL's prior written
consent, provided that the shareholders‘ agreement shall, in the event of the
exercise of the Equity Option, be amended to reflect the terms of the Proforma
SHA.
14 EVALUATION METHODOLOGY FOR PROPOSALS
14.1 General
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(a) The Bidder is required to submit all information / documents as sought in the
tender. To ensure submission of the requisite information / documents, Bidders
are required to fill up the Checklist provided in Annexure 1 and tick the boxes
provided in the Annexure 1.
(b) The Techno-Commercial (Unpriced) Bid shall be evaluated to determine
whether the Bid is substantially responsive to the requirements of the Tender
Documents.
A Bid not satisfying such requirements shall be rejected by GAIL.
(c) To assist in the examination, evaluation and comparison of Bids, GAIL may, at
its sole discretion, seek clarifications on the Techno-Commercial (Unpriced)
Bid from Bidders. Bidders shall respond to any such request for clarifications
in writing.
(d) Subsequent to the submission of a Bid, the Bidder shall not modify any part of
its Bid, unless permitted to do so by GAIL in writing.
(e) Once quoted, Bidder shall not make any subsequent price changes, whether
resulting or arising out of any technical/ commercial clarifications sought
regarding the Bid within the scope of work, even if any deviation or exclusion
may be specifically stated in the Bid. Such price change shall render the Bid
liable for rejection.
(f) Change in price during its validity period would render the Bid liable for
outright rejection. GAIL reserves the right to reject any unsolicited
clarifications by a Bidder to its Bid.
(g) The Priced Bids of only the techno-commercially acceptable Bidders (i.e.
whose Techno-Commercial (Unpriced) Bid have been found responsive) will
be opened.
(h) The Priced Bids shall be opened in the presence of authorized representative of
techno-commercially acceptable Bidders, on the date & time to be intimated
later by GAIL. The Bidder‘s name, Bid price and such other details as GAIL at
its discretion may consider appropriate, will be announced at the opening of the
Priced Bid. However, the prices shall be evaluated separately by GAIL and not
in the presence of Bidders.
14.2 Evaluation Methodology
GAIL (India) Limited
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(a) GAIL intends to Charter hire LNG Vessels for transportation of LNG. Prices are
sought for 3 (three) Lots, each Lot consisting of 2 (two) Vessels from an
Overseas shipyard and 1 (one) vessel from an Indian Shipyard. In addition to
Lot(s), prices are also sought for 1 (one) Additional Vessel from Indian Shipyard
and 1 (one) Additional Vessel from Overseas Shipyard.
(b) Bidders may quote for one or more Lots. A Bid for a Lot should contain 3
(three) number of Vessels as asked for. A Lot consisting of Vessels less than
three number shall be considered incomplete and rejected.
In addition to quote for Lot(s), it is mandatory for the Bidders to quote for at
least 1 (One) Additional Vessel from Indian Shipyard. The Bidder offering 2
(Two) Additional Vessels has to necessarily quote for 1 (One) additional Vessel
from Indian Shipyard in accordance with the Schedule of Rates. A Bid which
does not contain price for 1 (One) Additional Vessel from Indian Shipyard shall
be considered incomplete and shall be liable for rejection even if it contains
price for 2 (Two) Additional Vessels.
Bidders shall provide in terms of the Schedule of Rates, (i) the prices for each
Lot (ii) One Additional Vessel from Indian Shipyard and One Additional Vessel
from Overseas Shipyard (iii) the discount (if any) for award of two (2) Lots
and/or three (3) Lots, as the case may be and (iv) the discount (if any) separately
on each Additional Vessel, for award of two (2) Additional Vessels (i.e. one
from Indian Shipyard and the other from Overseas Shipyard) if awarded to the
same Bidder.
(c) Based on meeting Bidder‘s Eligibility Criteria (BEC), assessment of capacity of
delivering number of vessels and compliance to other techno-commercial
requirements of the ITT, Bidders will be qualified for the number of Lot(s) OR
Lot(s) along with Additional Vessel(s) which shall be intimated to the Bidders
prior to Price Bid opening.
(d) Bids are invited based on current scenario. GAIL is undertaking an exercise of
swapping / trading of LNG. Based on the outcome of such exercise, the final
requirement of Vessels shall emerge and award shall be made accordingly.
GAIL (India) Limited
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(e) The evaluation and selection of Vessel(s) shall be done in the manner specified
below:
(i) The Unit Freight Cost (―UFC‖) of (a) each Lot (b) combined Lots (c)
combined Lots with discount (if any) and (d) Additional Vessel(s) will be
calculated separately, for the relevant delivery windows, in accordance
with the procedure set forth in Annexure 10 of this ITB;
(ii) GAIL shall award charter hire contracts by way of Lot /Lots, but shall
award Additional Vessel or Vessels, where the balance shipping capacity
required is lower than a Lot. The award of Additional vessels shall be
made in the manner stated below:
In case one additional vessel is required, the same shall be from an Indian
Shipyard. In case two additional vessels are required, the first vessel shall
be from Indian Shipyard and the second vessel shall be from Overseas
Shipyard.
(iii) Bidders may note that Lot 1 and Lot 2 are identical w.r.t. number of
Vessels as well as the delivery period. All qualified Bids of Lot 1 and
Lot 2 shall be evaluated together to determine the lowest UFC for deciding
the ranking of the Bids amongst Lot 1 and Lot 2. Bids for Lot 3 shall be
evaluated separately and such Bids shall be separately ranked. Also, the
calculation of UFC of Two Lots and Three Lots shall be made considering
the discount offered by the Bidder(s), if any.
(iv) Awards of Lot(s) and Additional Vessel(s) shall be made based on the
requirements in the relevant delivery windows.
(v) In case, the capacity of the Bidder having least UFC for Lot(s) and/or
Additional Vessel(s), as the case may be, gets exhausted and still certain
volume is left out for transportation of LNG, such Bidder ceases to be the
Lowest Bidder for remaining requirement. The remaining requirement
shall be awarded to other Bidder(s) based on the lowest UFC.
GAIL (India) Limited
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(f) To facilitate the evaluation and comparison, GAIL will assume, the rate for
MDO and HFO, as the rate published on www.bunkerworld.com, one day prior
to Priced Bid opening date.
(g) In the price bid, the Bidder shall quote Fixed Daily Charter Rate and Opex in
whole number (i.e. without any decimal) and escalation rate on Opex (in
percentage) up to 2 decimals.
(h) The evaluation of UFC in US$ shall be done up to 4 decimals (rounded off to
higher side). In case of tie in UFC, the value of UFC shall be calculated beyond
4 decimals till the decision of lowest UFC is arrived.
(i) To facilitate the evaluation and comparison, GAIL may convert, the currency for
various elements, if required, to US$ to Indian Rupees at Bills Selling Exchange
Rate published by State Bank of India on one day prior to price bid opening date
and if such date happens to be a holiday, then latest Bills Selling Exchange Rate
published by State Bank of India shall be considered.
(j) GAIL reserves the right to award charter hire for any number of Lots /
Additional Vessels or not to award for any Vessel(s) or may go for re-tendering,
for any reason(s) whatsoever at its sole discretion and Bidders shall not have any
claim or seek any compensation in this regard.
15 OTHER CONDITIONS
15.1 Performance Bank Guarantee (PBG):
(a) Within 2 (Two) months from the date of notification of each successful Bidder
in terms of Clause 65 of the Proforma TCP, the Owner shall furnish an
irrevocable, unconditional and first demand performance bank guarantee in
accordance with the provisions of Time Charter Agreement and strictly in the
form appearing in Appendix XII to the Proforma TCP (the ―Performance
Bank Guarantee‖). The Performance Bank Guarantee shall be from any
Indian Scheduled Bank or a branch of an International Bank situated in India
and registered with 'Reserve Bank of India' as Scheduled Foreign Bank.
However, in case of 'Bank Guarantee' from banks other than the Nationalized
Indian Banks, the bank must be a commercial bank having net worth in excess
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of Rs. 100,00,00,000 (Rs. One Hundred Crores) and a declaration to this effect
should be made by such commercial bank either in the 'Bank Guarantee' itself
or separately on its letterhead.
(b) In case of a Bidding Consortium, a single Performance Bank Guarantee can be
furnished either by the Consortium Leader for the entire amount or multiple
Performance Bank Guarantees by the Consortium Members (in proportion to
their shareholding in the consortium) totalling the requisite Performance Bank
Guarantee amount.
15.2 Confidentiality
(a) Bidder agrees to keep the information exchanged or disclosed in the course of
the tender process (the ―Confidential Information‖) strictly confidential,
provided that Bidder may disclose Confidential Information in the following
cases:
(i) The Confidential Information is already known to the public or becomes
available to the public other than through the act or omission of Bidder;
(ii) The Confidential Information is required to be disclosed under applicable
law or by a governmental order, decree, regulation or rule (provided that
Bidder shall give written notice of such required disclosure to GAIL
prior to the disclosure);
(iii) In filings with a court or arbitral body in proceedings in which the
Confidential Information is relevant and in discovery arising out of such
proceedings; or
(iv) To any of the following persons on a need to know basis:
(A) an Affiliate of Bidder, including the employees, officers, directors
and agents thereof;
(B) professional advisers retained by a disclosing party;
(C) persons advising on, providing or considering the provision of
financing to Bidder or an Affiliate;
(b) Provided that in the events described in Sections 15.2 (a) (i) to (iv) Bidder shall
exercise due diligence to ensure that no such person shall disclose Confidential
Information other than in the circumstances authorised above.
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15.3 Accuracy of Bid
Bidder shall warrant the accuracy of any information contained in its Bid (and any part
thereof) and agrees to notify GAIL promptly of any changes with respect to any
information submitted as part of such Bids prior to the opening of the Techno-
Commercial (Unpriced) Bids. Failure to update GAIL on any relevant information
may lead to the disqualification of Bidder.
15.4 Discrepancies and Arithmetical errors:
Prices & numerical values shall be written both in words and figures (wherever
applicable). In the event of difference, the price (or numerical value) in words shall be
valid and binding.
Arithmetical errors will be rectified on the following basis:-
(i) If there is a discrepancy between the unit price and the total price that is
obtained by multiplying the unit price and quantity, the unit price shall prevail
and the total price will be corrected.
(ii) If there is a discrepancy between the total amount and the sum of total prices,
the sum of the total prices shall prevail and the total bid amount will be
corrected.
15.5 Reservation of Rights
GAIL reserves the right:
(a) to accept any of the Bids, in whole or in part, submitted in the course of this
tender process, whether or not such proposal is the lowest, and without
obligation to provide any reasons therefore or obligation to compensate in any
way whatsoever any Bidder whose proposal has not been accepted;
(b) to interrupt, suspend, modify, advance, delay, withdraw or discontinue the
tender process;
(c) to update, amend, modify or supplement, at any time during the tender process
and without prior notice to Bidder, any of the Tender Documents or the
information contained herein;
GAIL (India) Limited
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(d) to reject any or all Bids received or to disqualify any or all Bidders without
stating any cause and without any liability or obligation on the part of GAIL;
(e) not to award any contract pursuant to this tender process; and
(f) to re-issue a similar tender for the same purpose.
15.6 Right of Acceptance and Execution of Contract
GAIL shall not be deemed to have accepted any Bid (in whole or in part) unless and
until definitive agreements are executed between GAIL (or an Affiliate of GAIL) and
the successful Bidder.
The successful Bidder will eventually be issued with a letter of award and shall be
required to enter into the Time Charter Documents with GAIL (or an Affiliate of
GAIL), subject to any mutually agreed changes thereto.
15.7 Ownership of Documents
(a) The Tender Documents remain the property of GAIL.
(b) Once submitted, Bidder‘s Bid, including any and all supporting documents
submitted therewith, shall become the property of GAIL; provided that (i) any
intellectual property rights existing in the information contained in such Bid
(and specifically marked as proprietary) shall remain the property of Bidder (or
other persons or entities, as appropriate) and (ii) Bidder shall be deemed to
have licensed and authorized GAIL and its officers, employees, advisers,
consultants and agents to copy, adapt, disclose or to use, as GAIL may deem
fit, all information and material contained in the Bid for the purposes of
evaluating the Bid.
15.8 Language
The Bid prepared by the Bidder and all correspondence/ drawings and documents
relating to the bid exchanged by Bidder and GAIL, shall be written in English
language, provided that any printed literature furnished by the Bidder may be written
in another language so long as accompanied by an English translation, in which case,
for the purpose of interpretation of the bid, the English translation shall govern.
Metric measurement system shall be applied. In the event of submission of any
document/certificate by the Bidder in a language other than English, the English
translation of the same duly authenticated by a Chamber of Commerce of Bidder‘s
country shall be submitted by the Bidder.
GAIL (India) Limited
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15.9 Law, Jurisdiction & Dispute Resolution
(a) These Instructions and the tender process shall be governed by and construed
in accordance with laws of the Republic of India.
(b) Any dispute or difference arising in connection with this tender process that
cannot be resolved amicably shall be submitted to the jurisdiction of the courts
at New Delhi.
15.10 Submission of false or forged documents
(a) 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 the Bids and forfeiture of Earnest Money
Deposit (as applicable).
(b) In case, the information / document furnished by the Bidder / Owner forming
basis of evaluation of his bid is found to be false / forged after the award of the
contract, GAIL shall have full right to terminate the contract and get the
remaining job executed at the risk & cost of such Bidder / Ship Owner without
any prejudice to other rights available to GAIL under the contract such as
forfeiture of Contract Performance Guarantee /Performance Security and
withholding of payment etc.
(c) In case this issue of submission of false document comes to the notice after
execution of work, GAIL shall have full right to forfeit any amount due to the
Bidder / Ship Owner along with forfeiture of Contract Performance Guarantee
/Performance Security furnished.
(d) Further, such Bidder / Ship Owner shall be put on Banning list/ Holiday List
of GAIL debarring them from future business with GAIL.
15.11 Fraud and Corruption
(a) GAIL requires that Bidders / Ship Owners participating in GAIL‘s contracts
adhere to the highest ethical standards, both during the selection process and
throughout the execution of a contract. In pursuance of this policy, GAIL:
(b) Defines, for the purpose of this paragraph, the terms set forth below as follows:
GAIL (India) Limited
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(i) ―Corrupt practice‖ is the offering, giving, receiving or soliciting,
directly or indirectly, of anything of value to influence improperly the
actions of another party;
(ii) ―Fraudulent practice‖ is any act or omission, including
misrepresentation, that knowingly or recklessly misleads, or attempts to
mislead, a party to obtain financial or other benefit or to avoid an
obligation;
(iii) ―Collusive practice‖ is an arrangement between two or more parties
designed to achieve an improper purpose, including to influence
improperly the actions of another party;
(iv) ―Coercive practice‖ is impairing or harming, or threatening to impair or
harm, directly or indirectly, any party or the property of the party to
influence improperly the actions of a party;
(v) ―Obstructive practice‖
(A) deliberately destroying, falsifying, altering or concealing of
evidence material to the investigation or making false statements
to investigators in order to materially impede an Employer
investigation into allegations of a corrupt, fraudulent, coercive, or
collusive practice; and/or threatening, harassing, or intimidating
any party to prevent it from disclosing its knowledge of matters
relevant to the investigation or from pursuing the investigation, or
(B) acts intended to materially impede the exercise of the Employer‘s
inspection and audit rights
(C) GAIL will reject a proposal for award if it determines that the
Bidders / Ship Owners recommended for award has, directly or
through an agent, engaged in corrupt, fraudulent, collusive,
coercive, or obstructive practices in competing for the contract in
question.
(D) GAIL will sanction a Bidders / Ship Owners, including declaring
ineligible, either indefinitely or for a stated period of time, to be
awarded a contract if it at any time determines that the Bidder /
GAIL (India) Limited
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TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
Owner has, directly or through an agent, engaged in corrupt,
fraudulent, collusive, coercive, or obstructive practices in
competing for, or in executing, a GAIL contract
15.12 Rejection Criteria
Notwithstanding anything contained herein, if any deviation(s) are taken to the under
mentioned provisions/ requirements of the Tender Document by the Bidder, such a Bid
shall be considered non-responsive and shall be liable for rejection:-
(i) Submission of duly executed and stamped Consortium Agreement;
(ii) Bid validity;
(iii) Bid Security;
(iv) Schedule of Rates / Priced Bid;
(v) Period of the Time Charter Agreement;
(vi) Currency of prices in the Schedule of Rates/ Priced Bid;
(vii) Language of submission of the Bid;
(viii) Delivery window / schedule;
(ix) Guaranteed figures of the Tender Documents;
(x) Resolution of Dispute/Arbitration of the Tender Documents;
(xi) Termination of Charter / Contract;
(xii) Payment Terms;
(xiii) Taxes;
(xiv) Off-hire;
(xv) Compensation for delayed delivery;
(xvi) Applicable Laws;
(xvii) Outline Specification / Scope of the Tender Documents (in each case, to the
extent that the same is a material deviation);
(xviii) Integrity Pact;
(xix) Owner‘s Guarantee and Performance Bank Guarantee;
In addition to the foregoing, GAIL shall also be entitled to consider a Bid as being non-
responsive and reject the same on account of:
(i) The participation of any Bidder / Consortium Leader / Consortium Member
(either directly or through any Affiliate thereof) in more than 1 (One) bidding
Consortium or as a Single Bidder, in which case all the Consortiums in which
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such Consortium Leader / Member is a member and/or the Single Bidder shall
be disqualified;
(ii) An incomplete /non-responsive Bid;
(iii) Any modification to the Bid and/ or any change in Priced Bid made or sought
to be made after submission of Bid, except where requested by GAIL;
(iv) A Bidder not meeting Bidder Eligibility Criteria and Shipyard Eligibility
Criteria of the Tender Documents;
(v) The submission of conditional bids/ suggestive bids/ bids offering options;
(vi) The non-compliance of any other condition specifically stated anywhere in the
Tender Documents
15.13 Agent
Bidders shall submit their Bids directly to GAIL and not through any agent /consultant
/representative /manager /associate. Bids made by agent/ Consultant/ representative/
manager/ associate will be rejected.
GAIL (India) Limited
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ANNEXURE 1 - CHECK LIST
Part of Bid Description of Deliverable Annexure Section Check
Integrity Pact Integrity Pact 2 4.2
Offer Letter Offer Letter 3
Offer Outline Offer Outline 4 --
Techno-
Commercial
(Unpriced) Bid
1 General and LNG Shipping
Experience
10.1
1.1 General Information 10.1(a)
1.2 LNG Shipping Experience 10.1(b)
1.3 Financial Information 10.4
2 Bidder‘s audited financial statements
of preceding three (3) financial years
---
2.1 Name and contact details of
proposed guarantor & confirmation
of willingness to issue guarantee
---
2.2 Proposed guarantor‘s audited
financial statements of preceding
three (3) years
--
2.3 Bidder‘s standard insurance policies ---
2.4 Exceptions to Proforma TCP/TPA 5 __
3 Copy of the draft Shipbuilding
Contract
9.14
4 Ownership Structure and Financing
Plan
10.5
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5 Quality Assurance 10.6
6 Project Organisation ----
Techno-
Commercial
(Unpriced) Bid
1 Technical Information Vessel
2 Vessel Particulars 7
2.1 Vessel Specifications
2.2 Vessel Plans and Drawings
2.3 Deviations to Outline Specifications 6
2.4 Guaranteed Performance Figures 8
3 Bidders Confirmation for Evaluation
of Withholding Tax
13, 13 A
4 Life cycle evaluation methodology
for each vessel
10
5 Suez Canal Charges Per Voyage 11
6 Port Call Charges 12
7 Bidders Confirmation For Evaluation
Of Withholding Tax
13
8 LNG Vessel Cost And Financing 14
9 Letter From Intended Lenders to The
Bidder
15
10 Declaration of Change of Majority
Shareholder in SPC in case of Award
16
11 Acknowledgement Cum Consent
Letter
17
GAIL (India) Limited
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12 Chartered Accountant Certificate for
Financial Capability of the Bidder
18
13 No Deviation Confirmation 19
14 Declaration 20
15 Agreement Regarding Non-
Involvement of Any Other Entity or
Government of India
21
16 "EARNEST MONEY / BID
SECURITY‖ in form of Bank
Guarantee OR Letter Of Credit OR
Demand Draft
23A OR
23B OR
in form of
Demand
Draft
17 Copy of SOR format without
indicating rate but mentioning
―QUOTED‖ / ―NOT QUOTED‖ at
all relevant places.
Priced Bid 1 Schedule of Rates 9
Cost of Vessel The Bidder shall provide the estimate
of the cost of the Vessel under the
shipbuilding contract.
14 11.5
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ANNEXURE 2 – INTEGRITY PACT
Between GAIL (India) Limited, a Government of India Public Sector, (here-in-after referred
to as ―Principal ‖).
AND
M/s. ……………………………………………………………………….(here-in-after referred
to as ―The Bidder/ Contractor‖).
(Principal and the Bidder / Contractor are here-in-after are referred to individually as ―Party‖
or collectively as ―Parties‖).
PREAMBLE
The Principal intends to award under laid down organizational procedures, contract/s for
………………………………..
The Principal values full compliance with all relevant laws and regulations, and the principles
of economic use of resources, and of fairness and transparency in its relations with its
Bidder/s and Contractor/s.
In order to achieve these goals, the Principal co-operates with the renowned International
Non-Governmental Organisation ‗Transparency International‘ (TI). Following TI‘s national
and international experience, the Principal will appoint an Independent External Monitor who
will monitor the tender process, the execution of the contract etc. for compliance with the
principles mentioned above.
Section 1 – Commitments of the Principal
1. The Principal commits itself to take all measures necessary to prevent corruption and
to observe the following Principles in this regard:-
i) No employee of the Principal, either in person or through family members,
including relatives, will in connection with the tender for or the execution of a
contract, demand or accept a promise for or accept for him/herself or for a third
person, any material or immaterial benefit to which he/she is not legally
entitled.
ii) The Principal shall, during the tender process, treat all Bidders with equity.
The Principal undertakes and ensures that before and during the tender process,
it shall provide and share the same information to all Bidders and will not
provide to any Bidder confidential / additional information through which one
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particular Bidder could take an advantage in relation to the tender process or
the contract execution.
iii) The Principal will exclude from the process all known prejudiced persons.
2. If the Principal obtains information on the conduct of any of its employees which is a
criminal offence under the Anti-Corruption Laws of India, or if there be a substantive
suspicion in this regard, the Principal will inform its Vigilance Office and in addition
can initiate disciplinary actions.
Section 2 – Commitments and Undertakings by the Bidder/Contractor
1. The Bidder / Contractor commits and undertakes to take all measures necessary to
prevent malpractices & corruption. He commits himself to observe the following
principles during his participation in the tender process and during the contract
execution:
i) The Bidder / Contractor undertakes not to, directly or through any other person
or firm offer, promise or give or influence to any employee of the Principal
associated with the tender process or the execution of the contract or to any
other person on their behalf any material or immaterial benefit to which he /
she is not legally entitled in order to obtain in exchange any advantage of any
kind whatsoever during the tender process or during the execution of the
contract.
ii) The Bidder / Contractor undertakes not to enter into any undisclosed
agreement or understanding, whether formal or informal with other Bidders.
This applies in particular to prices, specifications, certifications, subsidiary
contracts, submission or non-submission of bids or any other action to restrict
competitiveness or to introduce cartelization in the bidding process.
iii) The Bidder / Contractor undertakes not to commit any offence under the
relevant Anti-corruption Laws of India. Further, the Bidder / Contractor will
not use improperly any information or document provided by the Principal as
part of the business relationship regarding plans, technical proposals and
business details, including information contained or transmitted electronically
for the purposes of competition or personal gain and will not pass the
information so acquired on to others.
iv) The Bidder / Contractor will, when presenting his bid undertake to disclose
any and all payments made, is committed to or intends to make to agents,
brokers or any other intermediaries in connection with the award of the
contract.
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2. The Bidder / Contractor will not instigate and allure third persons / parties to commit
offences outlined above or be an accessory to such offences.
Section 3 – Disqualification from tender process and exclusion
from future contracts
If the Bidder, before the award of contract, has committed a transgression through a
violation of any provisions of Section 2 or in any other form so as to put his reliability
or credibility as Bidder into question, the Principal shall be entitled to disqualify, put
on holiday or blacklist the Bidder including from the future tender processes or to
terminate the contract, if already signed, on that ground.
1. If the Bidder / Contractor has committed a transgression through a violation of any
provisions of Section 2 so as to put his reliability or credibility into question, the
Principal shall be entitled to exclude the Bidder/ Contractor (including blacklist and
put on holiday) from entering into any GAIL future contract tender processes. The
imposition and duration of the exclusion will be determined by the severity of the
transgression. The severity will be determined by the Principal taking into
consideration the full facts and circumstances of each case particularly taking into
account the number of transgressions, the position of the transgressors within the
company hierarchy of the Bidder and the amount of the damage. The exclusion may
be imposed for a minimum period of 6 (Six) months and maximum of 3 (three) years.
2. A transgression is considered to have occurred if the Principal after due consideration
of the available evidence, concludes that no reasonable doubt is possible.
3. The Bidder with its free consent and without any influence agrees and undertakes to
respect and uphold the Principal‘s absolute rights to resort to and impose such
exclusion and further accepts and undertakes not to challenge or question such
exclusion on any ground, including the lack of any hearing before the decision to
resort to such exclusion is taken. This undertaking is given freely and after obtaining
independent legal advice.
4. Subject to the full satisfaction of the Principal, the exclusion of the Bidder / Contractor
could be revoked by Principal prematurely if the Bidder / contractor can prove that he
has restored / recouped the damage caused by him and has installed a suitable
corruption prevention system in his organization.
Section 4 – Forfeiture of EMD / Security Deposits
1. If the Principal has disqualified the Bidder from the tender process prior to the award
in terms of Section 3, and during the execution of the contract, the Principal shall
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 74 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
forfeit earnest money deposit / bid security money, encash the bank guarantee
including due payments in addition to blacklisting or putting on holiday the Bidder
and terminating the contract.
2. If the Principal has terminated the contract according to Section 3, or if the Principal is
entitled to terminate the contract according to Section 3, the Principal shall be entitled
to demand and recover from the Contractor liquidated damages equivalent to earnest
money deposit / security deposit / Performance Bank Guarantee.
3. The Bidder agrees and undertakes to pay the said amounts without protest or demur
subject only to condition that if the Bidder / Contractor can prove and establish that
the exclusion of the Bidder from the tender process or the termination of the contract
after the contract award has caused no damage or less damage than the amount of the
liquidated damages, the Bidder / Contractor shall compensate the Principal only to the
extent of the damage in the amount proved.
Section 5 – Previous transgression
1. The Bidder swears on oath that no previous transgression has occurred during the last
three years with any other Company in any country conforming to the TI approach or
including with any other Public Sector Enterprise / Undertaking in India that could
justify his exclusion from the tender process.
2. If the Bidder makes incorrect statement on this subject, he shall be disqualified from
the tender process or the contract, if already awarded, could be liable to be terminated
on this ground.
Section 6 – Equal treatment to all Bidders / Contractors / Subcontractors
1. The Bidder / Contractor undertakes to demand from all its sub-contractors, if any, an
undertaking and commitment in conformity with this Integrity Pact, and to submit it to
the Principal before signing of the contract.
2. The Principal will enter into agreements with similar conditions, as stipulated herein,
with all Bidders, Contractors and Subcontractors.
3. The Principal shall disqualify from the tender process all Bidders who do not sign this
Pact or violate any of its provisions.
Section 7 – Criminal charges against violating Bidders /
Contractors / Sub-contractors
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 75 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or of
an employee or a representative or an associate of a Bidder, Contractor or Subcontractor
which constitutes corruption, or if the Principal has substantive suspicion in this regard, the
Principal will inform the Vigilance Office / Department for initiating appropriate action for
above.
Section 8 –Independent External Monitor / Monitors (Three in number depending on
the size of the contract)
(To be Decided by the Chairperson of the Principal)
1. The Principal appoints competent and credible Independent External Monitor for this
Integrity Pact. The task of the Independent External Monitor is to review
independently and objectively, whether and to what extent the parties comply with the
obligations under this agreement.
2. The Independent External Monitor is not subject to any instructions by the
representatives of the parties and performs his functions neutrally and independently.
He reports to the Chairperson of the Board of the Principal.
3. The Contractor accepts that the Independent External Monitor has the right to access
without restriction to all project documentation of the Principal including that
provided by the Contractor. The Contractor will also grant the Independent External
Monitor, upon his request and demonstration of a valid interest, unrestricted and
unconditional access to his project documentation. The same is applicable to Sub-
contractors. The Independent External Monitor is under contractual obligation to treat
the information and documents of the Bidder / Contractor / Sub-contractor with
confidentiality.
4. The Principal will provide to the Independent External Monitor sufficient information
about all meetings among the parties related to the Project provided such meetings
could have an impact on the contractual relations between the Principal and the
Contractor. The parties offer to the Independent External Monitor the option to
participate in such meetings.
5. As soon as the Independent External Monitor notices, or believes to notice, a violation
of this agreement he will so inform the Management of the Principal and request the
Management to discontinue or heal the violation or to take other relevant action. The
Independent External Monitor can in this regard submit non-binding
recommendations. Beyond this, the Independent External Monitor has no right to
demand from the parties that they act in a specific manner, refrain from action or
tolerate action. However, the Independent External Monitor shall give an opportunity
to the Bidder / contractor to present its case before making its recommendations to the
Principal.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 76 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
6. The Independent External Monitor will submit a written report to the Chairperson of
the Board of the Principal within 8 to 10 weeks from the date of reference or
intimation to him by the ‗Principal‘ and should the occasion arise, submit proposals
for taking corrective measures.
7. The Independent External Monitor shall be entitled to compensation by the Principal
on the same terms & conditions as being extended to/provided to outside expert
committee members of ONGC.
8. If the Independent External Monitor has reported to the Chairperson of the Board a
substantiated suspicion of an offence under relevant Anti-Corruption laws of India,
and the Chairperson has not, within reasonable time, taken visible action to proceed
against such offence or reported it to the Vigilance Office, the Independent External
Monitor may also transmit this information directly to the Central Vigilance
Commissioner, Government of India.
9. The word ‗Independent External Monitor‘ would include both singular and plural.
10. Independent External Monitor shall be required to maintain confidentiality of the
information acquired and gathered during their tenure / role as Independent External
Monitor. Any breach in this regard would be subject to the legal judicial system of
India.
11. The Independent External Monitors shall be responsible to oversee the implementation
of Integrity Pact Program to prevent corruption, bribes or any other unethical practices
in the GAIL. However, the Independent External Monitor(s) shall be personally and
severally be liable for any action or suit brought by Bidder / Contractor / against the
Independent External Monitor, in case the findings of Independent External Monitor is
/ are found incorrect or biased or prejudiced.
12. Independent External Monitor(s) shall be required to furnish an undertaking and shall
disclose before taking any assignment that he / she has no interest in the matter or
connected with the party (Bidder / Contractor) in any manner.
Section 9 – Pact Duration
The provisions of this Pact shall come into effect from the date of signing of this Pact by the
both parties. It expires for the Contractor 12 (Twelve) months after the last payment under the
respective contract, and for all other Bidders 6 (Six) months after the contract has been
awarded.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 77 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
If any claim is made / lodged by either party during this time, the same shall be binding and
continue to be valid despite the lapse of this pact as specified above, unless it is discharged/
determined by the Chairperson of the Principal.
Section 10 – Miscellaneous provisions
1. This agreement is subject to Indian Law. Place of performance and jurisdiction is the
Registered Office of the Principal, i.e. New Delhi. The arbitration clause provided in
main tender document / contract shall not be applicable for any issue / dispute arising
under Integrity Pact.
2. Changes and supplements as well as termination notices, if any, need to be made in
writing. Side agreements have not been made.
3. If the Contractor / Bidder is a partnership concern or a consortium, this agreement
must be signed by all partners or consortium members.
4. In case any or several of the provisions of this agreement turn out to be void, the
remainder of this pact shall remain valid. The parties to this pact however, shall strive
to come to an agreement to their original intentions in such a case.
------------------------------------------- -----------------------------------------------
(Name & Designation) (Name & Designation)
For the Principal For the Bidder/Contractor
Place ------------------------------------ Witness 1: -----------------------------
Date ----------------------------------- Witness 2: -----------------------------
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 78 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
ANNEXURE 3 – OFFER LETTER
[On Bidder‘s Letterhead]
Date: __________
To
GAIL (India) Limited
16, Bhikaiji Cama Place, R.K.Puram,
New Delhi – 110066
India
Sub: TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 for Time Charter Hiring of
LNG Vessels (E-TENDER NO. 8000006832)
Dear Sir,
We refer to the Tender no. GAIL/ND/BD/C&P/1406/8000006832, E-Tender No. 8000006832
dated 01st August‘2014, its subsequent corrigendum, amendments, and clarifications
(collectively the ―Invitation to Bidder‖), and having duly examined the same, we are pleased
to submit herewith our Offer against the subject Tender.
We confirm that our Bid is firm, unconditional and the rates quoted in this Bid shall not be
subject to any variation or fluctuation.
This Bid is governed by Indian law and shall remain valid for a period of 180 (one hundred
and eighty) days from the Submission Date, subject to any extensions required by GAIL in
accordance with the said tender.
Until the execution of a binding time charter agreement pursuant to the tender, our Bid
together with your written acceptance thereof in your notification of award, shall constitute a
binding contract between us.
We understand that you are not bound to accept the lowest or any Bid that you may receive.
_____________
(Authorised Signatory)
Name:
Designation:
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 79 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
ANNEXURE 4 – OFFER OUTLINE
Sub: TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 for Time Charter Hiring of
LNG Vessels (E-TENDER NO. 8000006832)
Capitalised terms not defined in this Annexure are defined in the ―Instructions for Submission
of Bid for the Chartering of LNG Vessels to GAIL (India) Limited‖.
Query Bidder’s Reply/ Confirmation
Whether the Bid has been
submitted by a Single Bidder
or a Consortium
In case of a Consortium,
indicate the name of
Consortium Leader and the
other Consortium Members
Consortium Leader:
Consortium Members:
1. ….
2. ….
3. ….
Name, desgiantion and full
contact details of Authorised
Representative of the Single
Bidder/ Consortium
Complete Name and
Address of the proposed ship
manager
Proposed Guarantor(s)
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 80 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
Vessels offered for Lot 1 Yes/ No
Lot 2 Yes/ No
Lot 3 Yes/ No
One Additional Vessel Yes
Two Additional Vessels Yes/ No
Note: Please tick as appropriate
Tender Fee Details Demand Draft No. _____________
Earnest Money Deposit/ Bid
Security Details
If for one (1) Lot &
Additional Vessel(s)
If for more than one (1) Lot
& Additional Vessel(s)
Note: Please tick as appropriate
No Modification of Tender
Documents:
Bidder to confirm that the
contents of the Tender
Documents have not been
modified or altered by the
Bidder.
Submission of True &
Genuine information:
Bidder to confirm that all
documents submitted as a
part of the Bid, and all
confirmations and
information provided in the
Bid by the Bidders are true
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 81 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
and genuine.
No banning:
Bidders to confirm whether
it or any of its Consortium
Members (if applicable)
have been banned, de-listed,
or blacklisted, or put on
holiday list by any
Government, or quasi-
government agencies, or
public sector undertakings /
PMCs of GAIL. If so, please
provide details of the same.
No Liquidation:
Bidders to confirm that it, or
any of its Consortium
Members (if applicable), are
not under any liquidation,
bankruptcy, any court
receivership or other similar
proceedings.
No Relation:
Bidders to confirm that none
of its directors is a relative
of any director of GAIL or
the Bidder is firm in which
none of the directors of
GAIL or his relative are
partners.
Compliance with Tender
Documents:
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Page 82 of 131
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
Bidder to confirm that its
Bid complies in all respects
with the requirements of the
Tender Documents, save for
any specific exception/
deviations as per Annexure 5
(Deviations to Proforma
TCP/ Proforma TPA, as
applicable) and Annexure 6
(Deviations to Outline
Specifications), if any.
Bidders Eligibility Criteria
& Shipyard eligibility
criteria
Please confirm that all
requisite documents as per
the requirements of the ITT
have been duly submitted.
Checklist
In addition to the foregoing,
please confirm that all
documents as per the
Checklist in Annexure – I,
have been duly submitted.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 83 of 131
ANNEXURE 5 – DEVIATION STATEMENT PROFORMA TCP/TPA
Sub: TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 for Time Charter Hiring of LNG Vessels (E-TENDER NO. 8000006832)
GAIL expects Bids to be submitted in conformance with the tender conditions and without stipulating any deviations/ exceptions. If unavoidable/
essential, such deviations shall be made strictly as per the format prescribed hereunder.
Serial No. Reference No. of the
Clause of the
Proforma TCP/ TPA
Subject/ heading of the Clause Proposed Exception or Modification
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 84 of 131
ANNEXURE 6 – DEVIATION STATEMENT OUTLINE SPECIFICATIONS
GAIL expects Bids to be submitted in conformance with the outline specifications and without stipulating any deviations/ exceptions. If
unavoidable/ essential, such deviations shall be made strictly as per the format prescribed hereunder.
Serial No. Reference No. of the
provision of the
Outline
Specifications
Subject/ heading of the
provision
Proposed Exception or Modification
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 85 of 131
ANNEXURE 7 – VESSEL PARTICULARS
VESSEL PARTICULARS – VESSEL NO. [INSERT] IN LOT [INSERT] / ADDITIONAL
VESSEL
Containment System
Propulsion System
Shipyard of origin/ construction
Length overall _________m
Length between perpendiculars _________m
Breadth (Moulded) _________m
Depth (Moulded) _________m
Draught Moulded Design _________m
Draught Moulded Scantling _________m
Air draught _________ m
Displacement _________ tonnes
Deadweight _________tonnes @ _________ m (design draft)
GRT _________ UMS
NRT _________ UMS
Light ship weight _________tonnes
Cargo Capacity @ 100% _________m3
Stores and Water _________tonnes loaded at departure condition
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 86 of 131
ANNEXURE 8 – GUARANTEED PERFORMANCE FIGURES
(Separate Annexure to be submitted for each Vessel)
VESSEL PARTICULARS – VESSEL NO. [INSERT] IN LOT [INSERT] /
ADDITIONAL VESSEL
VESSEL Include reference to description of vessel
type
CARGO CAPACITY (CBM)
LOADING CAPACITY (CBM) (not less
than 98.5%)
DESIGN SPEED 19.5 kts not including 21% sea margin
GUARANTEED PUMPING RATE (Discharging):
GUARANTEED LOADING FLOW RATE:
UN-PUMPABLE QUANTITY (CBM)
ARRIVAL LOAD PORT QUANTITY
(CBM)
BALLASTING TIME (HOURS):
DEBALLASTING TIME (HOURS):
GUARANTEED BOIL-OFF
Boil-Off Rate of the Vessel (loaded)
(guaranteed)
_________%/day @ Sea/Air temp. 32/45 0C
(not to exceed 0.11%/day @ Sea/Air temp.
32/45 0C)
Boil-Off Rate of the Vessel (ballast)
(guaranteed)
_________%/day @ Sea/Air temp. 32/45 0C
(not to exceed 0.11%/day @ Sea/Air temp.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 87 of 131
32/45 0C)
MINIMUM HEEL LNG VOLUME (HV)
(CBM)
(As required for cool down prior to Loading
Operations, assuming cool down operation
from the Vessel such that the Vessel is ready
to load at the Loading Port)
GUARANTEED FUEL CONSUMPTION
The fuel consumption in this table are based on the following lower calorific heat values:
HFO (high sulphur content) in kcal/mT [provided by charterer]
Fuel Consumption Table A - HFO
Calculation of HFO is on the basis of IFO 380
For TFDE / STEAM
*Delete whichever is not applicable
Laden Ballast
Speed
(knots)
Maximum average
daily fuel consumption (in
ton/day)
Speed
(knots)
Maximum average
daily fuel consumption (in
ton/day)
HFO HFO
20.5 20.5
20.0 20.0
19.5 19.5
19.0 19.0
18.5 18.5
18.0 18.0
17.5 17.5
17.0 17.0
16.5 16.5
16.0 16.0
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 88 of 131
15.5 15.5
15.0 15.0
14.5 14.5
14.0 14.0
13.5 13.5
13.0 13.0
12.5 12.5
12.0 12.0
11.5 11.5
11.0 11.0
10.0 10.0
9.0 9.0
8.0 8.0
7.0 7.0
6.0 6.0
At loading
port (including
all gas
compressor
running at full
capacity)
At discharge
port (including
all gas
compressor and
cargo pumps
running at full
capacity)
Awaiting at
anchorage
Drifting
Inerting all
tanks
Gas freeing
all tanks
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 89 of 131
Fuel Consumption Table B (MDO)
(For TFDE only)
*Please delete if details are being provided for Steam Propulsion
Laden Ballast
Speed
(knots)
Maximum average
daily fuel consumption (in
ton/ day)
Speed
(knots)
Maximum average
daily fuel consumption (in
ton/ day)
MDO (as pilot fuel) MDO (as pilot fuel)
20.5 20.5
20.0 20.0
19.5 19.5
19.0 19.0
18.5 18.5
18.0 18.0
17.5 17.5
17.0 17.0
16.5 16.5
16.0 16.0
15.5 15.5
15.0 15.0
14.5 14.5
14.0 14.0
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 90 of 131
13.5 13.5
13.0 13.0
12.5 12.5
12.0 12.0
11.5 11.5
11.0 11.0
10.0 10.0
9.0 9.0
8.0 8.0
7.0 7.0
6.0 6.0
At loading
port (including
all gas compressor
running at full
capacity)
At discharge
port (including
all cargo pumps
and gas
compressor
running at full
capacity)
Awaiting at
anchorage
Drifting
Inerting all
tanks
Gas freeing
all tanks
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 91 of 131
ANNEXURE 9 –SCHEDULE OF RATES
Tender No : Name of Bidder :
SCHEDULE OF RATES FOR HIRING OF LNG VESSELS
Quoted
for Lot
Vessel
ID
Capacity
in cubic
meter
Fixed Daily Charter Rate
(Amount in US$ / day)
Opex
(Amount in US$ / day)
Escalation rate per
annum on Opex
(in % )
Delivery
window
of the Lot (in figures) (in words) (in figures) (in words)
Lot 1
Vessel 1 In figures:
In words:
01.08.2017
to
31.03.2018 Vessel 2 In figures:
In words:
Vessel3* In figures:
In words:
-
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 92 of 131
SCHEDULE OF RATES FOR HIRING OF LNG VESSELS
Quoted
for Lot
Vessel
ID
Capacity
in cubic
meter
Fixed Daily Charter Rate
(Amount in US$ / day)
Opex
(Amount in US$ / day)
Escalation rate per
annum on Opex (in
% )
Delivery
window
of the Lot
(in figures) (in words) (in figures) (in words)
Lot 2
Vessel4 In figures:
In words:
01.08.2017
to
31.03.2018 Vessel5 In figures:
In words:
Vessel6
*
In figures:
In words:
-
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 93 of 131
SCHEDULE OF RATES FOR HIRING OF LNG VESSELS
Quoted
for Lot
Vessel
ID
Capacity
in cubic
meter
Fixed Daily Charter Rate
(Amount in US$ / day)
Opex
(Amount in US$ / day)
Escalation rate per
annum on Opex
(in % )
Delivery
window
of the Lot (in figures) (in words) (in figures) (in words)
Lot 3
Vessel 7 In figures:
In words:
01.02.2018
to
30.09.2018 Vessel 8 In figures:
In words:
Vessel
9*
In figures:
In words:
-
* Vessel from the Indian Shipyard
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 94 of 131
SCHEDULE OF DISCOUNT OFFERED FOR 2 LOTS AND 3 LOTS
Percentage of Discount
(in figures) (in words)
Discount (in percent) offered on Hire Charges** on each vessel of
the relevant two Lots, if considered for award for two Lots
Discount (in percent) offered on Hire Charges** on each vessel of
the relevant three Lots, if considered for award for three Lots
** Hire Charge = Fixed Daily Charter Rate + Opex
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 95 of 131
SCHEDULE OF RATES FOR ADDITIONAL VESSELS
Qu
ote
d f
or
nu
mb
er
of
Ves
sel(
s)
Vessel ID
Cap
aci
ty i
n c
ub
ic
met
er
Fixed Daily Charter Rate
(Amount in US$ / day)
Opex
(Amount in US$ / day)
Escalation
rate per
annum on
Opex
(in % )
Delivery Window
(01.08.2017 to
31.03.2018)
Delivery Window
(01.02.2018 to
30.09.2018)
Delivery Window
(01.08.2017 to
31.03.2018)
Delivery Window
(01.02.2018 to
30.09.2018)
(in figures)
(in words)
(in figures)
(in words)
(in figures)
(in words)
(in figures)
(in words)
1
(One)
First
Additional
Vessel
(From
Indian
Shipyard)
In figures:
In words:
1
(One)
Second
Additional
Vessel
(From
Overseas
Shipyard)
In figures:
In words:
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 96 of 131
SCHEDULE OF DISCOUNT OFFERED FOR ADDITIONAL VESSELS
Percentage of Discount
(in figures) (in words)
Discount (in percent) offered on hire charges** on First Additional
Vessel (from Indian shipyard)
Discount (in percent) offered on hire charges** on Second
Additional Vessel (from Overseas shipyard)
Discount (in percent) offered on hire charges** on First Additional
Vessel (from Indian shipyard) if both Additional Vessels are
awarded to the same Bidder
Discount (in percent) offered on hire charges** on Second
Additional Vessel (from Overseas shipyard) if both Additional
Vessels are awarded to the same Bidder
** Hire Charge = Fixed Daily Charter Rate + Opex
Note:
(i) The Bidders are required to submit their prices strictly in the Schedule of Rates (SOR) given below, failing which the Bid shall be liable
for rejection.
(ii) Bidders are required to carefully read the Evaluation Methodology and other provisions of the Tender Documents before filling up the
SOR.
(iii) Bidder has to mandatorily quote for atleast One (1) Lot and One (1) Additional Vessel (from Indian Shipyard). The Bidder Offering
Two Additional Vessels has to quote for the First Additional Vessel from Indian Shipyard and Second Additional Vessel from Overseas
Shipyard.
(iv) Bidders may offer discount (if any) for Two Lots and Three Lots of LNG Vessels only at the relevant Table provided above. Discount
offered at any other place in the Bid shall not be considered for evaluation of Bid. However, in the event of the Bidder emerging as the
successful Bidder, such discount offered by the Bidder shall also be considered for award of the Contract and same shall be final and
binding on the Bidder.
(v) The Bidders are required to quote Fixed Daily Charter Rate and Opex in whole number (i.e. without any decimal) and escalation rate on
Opex (in percentage) up to 2 decimals.
SIGNATURE:
NAME:
SEAL:
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 97 of 131
ANNEXURE 10 - LIFE CYCLE EVALUATION METHODOLOGY FOR EACH VESSEL
This note describes the criteria and methodology for evaluation of the Priced Bids and the
parameters that will be considered for evaluating and comparing the Priced Bids under the
Schedule of Rates submitted by the Bidders. To ensure a uniform and objective evaluation and
ranking of Priced Bids, the Bidders shall quote the cost elements including the Fixed Daily
Charter Rate, Opex, and the escalation of the Opex and other parameters strictly as per the
Tender Document.
Priced Bids shall be evaluated on the basis of cost associated with per unit energy transportation
during the life cycle 20 years for Vessels from Overseas Shipyard and 17 years for Vessel from
Indian Shipyard. Aggregate life cycle cost ("LC") of the LNG Vessel and the units of energy
transported by the LNG Vessel in the life cycle is calculated independently to arrive at the per
unit energy transportation cost to the Charterer.
LC is the present value of the total cost outflow ("Total Cost") in USD for the initial charter
period. The Total Cost shall comprise:
(i) Hire Charges
(ii) Cost of Boil-Off
(iii) Cost of Fuel Oil
(iv) Canal Charges
(v) Port Charges
(vi) Withholding Taxes on Hire Charges (only on SPCs proposed to be incorporated
outside India)
The above costs shall be calculated for the offered LNG Vessel for each year of the initial charter
period, which will be summed up to arrive at the Total Cost for the initial charter period.
1. ELEMENT OF COST
(i) Hire Charges
Hire charges shall comprise of :
(a) Fixed Daily Charter Rate
Fixed Daily Charter Rate shall be in USD /day. The quoted Fixed Daily Charter Rate
shall remain constant for the Initial Charter Period and shall not vary from year to year
during the Initial Charter Period.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 98 of 131
(b) Opex
Opex shall be in USD / day
Further, the rate of escalation shall be first applied from Base Calendar Year i.e. the
second calendar year following the calendar year in which the LNG Vessel is delivered
to the Charterer. For example, in the event that the LNG Vessel is delivered in calendar
year 2017, the escalation shall be applicable from the calendar year 2019.
(ii) Boil Off Cost
The Boil Off Cost is the cost of LNG, which is boiled off during the Voyage period. Bidders
shall quote the maximum Boil-Off as a daily percentage of the Cargo Tank Capacity during
laden and ballast condition separately as per Annexure 8 provided in the Tender
Documents.
(iii) Fuel Oil Cost
The fuel consumption is based on the natural boil off consumption complemented by HFO
consumption for Vessel speeds where the natural Boil Off is insufficient.
The Fuel Oil Cost is the cost of fuel oil consumed by the LNG Vessel during the Voyage
period. Bidders shall quote the maximum daily fuel oil consumption as per Annexure 8
provided in the Tender Document. The same shall be total fuel oil consumed i.e. it shall be
total of HFO and MDO.
(iv) Canal Charges
Canal Charges for the Suez Canal for the return Voyage shall be considered. For the purpose
of evaluation, GAIL will consider number of Voyages per annum as mentioned in Section
10 below. The Canal charges shall be as specified in Annexure 11.
(v) Port Call Charges
Port Call charges shall be the sum of Port Call charges for the loading and discharge ports.
For the purpose of evaluation, GAIL will consider number of Voyages per annum as
mentioned in Section 10 below. The applicable Port Call charge shall be as specified in
Annexure 12.
(vi) Withholding Tax
Applicable Withholding tax shall be taken into consideration depending upon the country of
incorporation of proposed/existing SPC. For the purpose of calculation of withholding tax,
Bidder will be required to submit the documents as specified in Annexure 13. In case of
non-submission of acknowledgement of all or any of the documents mentioned at Annexure
13 and 13A of the ITB/ITT, GAIL will consider the tax implications as per the applicable
tax provisions while bid evaluation.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 99 of 131
Voyage shall for the purposes of this Annexure 10, mean the round trip of the Vessel
(including time at harbours, load port, discharge port, channelling, Suez Canal) between a
loading port and a discharge port. The same has been defined in Section 10 below.
2. ASSUMPTION FOR LIFE CYCLE COST
The following assumptions shall be considered for calculating life cycle cost of a Vessel and
hence levelized Unit Freight Cost in USD / MMBTU.
Sl. no. Parameter Value
1 Discounting rate Ten percent (10%) per annum
2 Heavy Fuel Oil Cost (Fp) Fuel Oil buying rate for IFO380 at Fujairah available on
website http://www.bunkerworld.com/prices/ on one
day prior to the Bid submission due date and if such date
happens to be a holiday, then latest available rate shall
be considered.
3 Boil Off Cost (LNGp) US $ 10/MMBTU
4 Marine Diesel Oil cost (Dp) Marine Diesel Oil buying rate available on website
bunkerworld.com, on one day prior to the Bid
submission due date and if such date happens to be a
holiday, then latest available rate shall be considered.
5 Heavy Fuel Oil equivalent
per CBM of Boil-Off Point five two six (0.526) tonne per CBM of Boil- Off
6 Time taken for ballast
Voyage (TT1)
Time taken for laden
Voyage (TT2)
Total Time Taken (TT)
= TT1+TT2
TT = TT1+TT2
7 Base Calendar Year
for Opex
It shall be zero in the year of delivery and subsequent
year and then increase by one (1) every calendar year.
8 Calorific value of LNG in
MMBTU/Tonne (CLNG)
52
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 100 of 131
3. METHODOLOGY FOR COMPUTING TOTAL COST
COMPUTATION OF HIRE
List of frequently used abbreviations
Dn = Days of operation for LNG Vessel in nth year (as specified in Section 10 below)
The Hire cost in nth
year of operation shall comprise of:
3.1. Fixed Daily Charter Rate
Fixed Daily Charter Rate for LNG Vessel in nth year of operation (FDCRn)
Where
FDCR = Fixed Daily Charter Rate as quoted by the Bidder in USD/day for LNG Vessel
3.2. Opex
Opex in nth year of operation for LNG Vessel (OPn)
Where
OP = Opex per day as quoted by Bidder for LNG Vessel (USD / day)
EF = Escalation factor for Opex as quoted by the Bidder (in %)
n = It shall be one (1) in the year of delivery & subsequent year and then increase by one (1)
every calendar year
Total Hire Cost
3.3. Total Boil Off Cost during nth year of operation (CBOT)
9 Density of LNG in kg per
m3 (DLNG)
430
10 No. of days post delivery
date in a year
365 days
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 101 of 131
This section evaluates the natural Boil Off generated by the Vessel.
Where
CBOTn= Computation of Total Boil Off Cost for LNG Vessel during nth year
((
) ( (
)))
BOB = Guaranteed Boil-Off as % per day of Vessel‘s Capacity during ballast condition
BOL = Guaranteed Boil-Off as % per day of Vessel‘s Capacity during laden condition
CAP = Capacity of LNG Vessel in m3
CLNG = Calorific value of LNG in MMBTU/Tonne
DLNG = Density of LNG in kg per m3
LNGp = Cost of Boil Off gas in USD / MMBTU
TT1n = Time taken for ballast Voyage by LNG Vessel during nth year
TT2n = Time taken for laden Voyage by LNG Vessel during nth year
TTan = Time taken by LNG Vessel at anchorage during nth year
3.4. Computation of Total Fuel Oil Cost during nth year of operation (TFOCAn)
This section evaluates the HFO consumption when the natural boil off is insufficient to meet the
required fuel consumption.
( ) (for ballast)
( ) (for laden voyage)
(In case FOCBi or FOCLi, is less than zero, it shall be deemed to be zero)
Where
FCBi = Heavy Fuel oil consumption per day at a particular speed (for ballast voyage)
FCLi = Heavy Fuel oil consumption per day at a particular speed (for laden voyage)
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 102 of 131
TT1i = Time taken by the Vessel at a particular speed (for ballast voyage)
TT2i = Time taken by the Vessel at a particular speed (for laden voyage)
Fp = Heavy Fuel Oil Cost in USD/ Tonne
∑ ∑
Where
FOCn = Summation of fuel consumed at various stages as defined in Section 10 below.
∑
DCi = Diesel oil consumption per day at a particular speed
Ti = Time taken by the Vessel at a particular speed
Dp = Diesel Oil Cost in USD/ Tonne
Diesel oil for the year (DOCn) shall be obtained by product of number of days at various speeds
(Section 10 below) and diesel oil consumption quoted by Bidder at various speeds (Annexure 8
above).
3.5. Computation of Canal Charges during nth year of operation (CCTn)
n = It shall be one (1) in the year of delivery and then increase by one (1) every calendar year
CC = Canal Charges applicable as listed in Annexure 11 below
ERn = Escalation rate (per year) applicable to Canal Charges as listed in Annexure 11 below
Vn = Number of voyages per year as listed in Section 10 below
3.6. Computation of Port Call Charges during nth year of operation (PCTn)
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 103 of 131
n = It shall be one (1) in the year of delivery and then increase by one (1) every calendar year
PCL = Loading Port Call Charges applicable as listed in Annexure 12 below
PCU = Unloading Port Call Charges applicable as listed in Annexure 12 below
EPn = Escalation rate (per year) applicable to Port Call Charges as listed in Annexure 12 below
Vn = Number of voyages per year as listed in Section 10 below
3.7. WITHHOLDING TAX (WTn)
The total Cost applicable to the Charterer will also depend on the Withholding Tax applicable on
the country of incorporation of the SPC (except in the case, where Country of incorporation of
SPC is India, no Withholding Tax shall be considered for evaluation and Hire payment shall be
released after deduction of Withholding Tax). The same shall also be taken into account for
computation of Total Hire Cost. For the sake of evaluation the Withholding Tax will remain the
same for the entire life of the contract. Bidders are required to furnish information as specified
in Annexure-13.
4. TOTAL COST FOR ‘nth’ YEAR
The Total Cost for a LNG Vessel in a calendar year ―n‖ will be calculated by adding the Total
Hire, Total Fuel Cost, Total Boil Off Cost, Total Canal Charges, Total Port Call Charges and
Withholding Tax (if any) as calculated above.
Sl.
No.
Component Value
1 Total Hire Component (THCn )
2 Total Boil Off Cost (CBOTn )
3 Total Fuel Cost (TFOCAn )
4 Canal Charges (CCTn)
5 Port Charges (PCTn)
6 Withholding Tax (WTn)
Total Cost in the year (TCn) [sum of Sl. No. 1 to 6]
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 104 of 131
5. COMPUTATION OF PRESENT VALUE OF THE TOTAL COST PER VESSEL
In order to compare the Hire Charges over the life of the contract, Present Value of the Total
Cost will be used for evaluation.
Present Value (PV) of the total cost
∑
TCn = Total Cost applicable in year ‗n‘ as calculated in Sl no. 4 above
i = It shall be zero (0) in the year of delivery and then increase by one (1) every calendar year.
n = 20 years for foreign built Vessels and 17 years for Vessels built in India
r = 10% (Discount factor applicable for evaluating the Present Value)
6. COMPUTATION OF TOTAL VOLUME TRANSPORTED PER VESSEL IN ‘nth’ YEAR
(VLNGCTn)
Effective Volume of LNG Vessel which would be loaded during a year.
CAPi = Capacity of each Vessel as quoted by the Bidder in Annexure 8 in cubic meter
HVi = Guaranteed Minimum Heel LNG Volume at loading port, as quoted by the Bidder in
Annexure 8 under Guaranteed Performance Figures.
The quantity loaded for transportation during a year will be (VLNGCTn)
The quantity delivered at the discharging port during a year will be (VLNGCDn)
( (
) (
))
7. COMPUTATION OF MMBTU DELIVERED PER VESSEL IN ‘n’th YEAR (MMBTUn)
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 105 of 131
8. COMPUTATION OF PRESENT VALUE OF THE MMBTU TRANSPORTED PER
VESSEL
In order to calculate the levelized cost of transportation by a particular LNG Vessel, Present
Value of the total MMBTU transported will be calculated as below:
Present Value (PMMBTU) of the total volume transported
∑
MMBTUn = Total MMBTU transported by the LNG carrier in year ‗n‘ as calculated in Sl no. 7
above
i = It shall be zero (0) in the year of delivery and then increase by one (1) every calendar year.
n = 20 year years for foreign built Vessels and 17 years for Vessels built in India
r = 10% (Discount factor applicable for evaluating the Present Value)
9. COMPUTATION OF UNIT FREIGHT COST (UFC) OF A VESSEL
The above calculated UFC is for a particular Vessel. The UFC of a Lot will be calculated as the
weighted average of the UFCs of each Vessel offered in the Lot. The Lot will be selected on the
basis of minimum weighted average UFC
Lot UFC PMMBTU
Vessel 1 UFC1 PMMBTU1
Vessel 2 UFC2 PMMBTU2
Vessel 3 UFC3 PMMBTU3
10. PROFILE OF A TYPICAL VOYAGE (for evaluation purposes only)
Speed / Other Number of days
10 knots 7.7
12 knots 4.3
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 106 of 131
Design Speed (19.5 knots) 331.4
Total steaming days in Voyage 343.4
Days at loading port 9.7
Days at discharging port 8.4
Days awaiting at anchorage (TTan) 3.5
Total number of days Vessel should be in service
(A)
365.0
Average time considered for maintenance and
dry dock (TFDE vessel) (B)
11.3
Average time considered for maintenance and
dry dock (Steam vessel) (C)
9.3
Days of operation for TFDE LNG Vessel in nth
year (Dn)
(D) = (A) – (B)
353.7
Days of operation for Steam LNG Vessel in nth
year (Dn)
(E) = (A) – (C)
355.7
Time Taken
in ballast Voyage in a year (TT1n) 171.7
in laden Voyage in a year (TT2n) 171.7
Distance which has been considered to evaluate
number of voyages
9651 x 2 = 19302 nautical miles
Voyages per year by TFDE Vessel (Vn) 7.5
Voyages per year by Steam Vessel (Vn) 7.6
Note : The Voyage duration for different speeds stated in the table above will be equally divided
in Laden and Ballast voyage.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 107 of 131
ANNEXURE 11 – SUEZ CANAL CHARGES PER VOYAGE
MOSS TYPE CONTAINMENT SYSTEM (CC)
Size of the Vessel (m3)
Suez Canal Transit Charges (in
USD)
Escalation Rate per annum
(ERn)
150,000 – 155,000
750,000 3%
155,001 – 160,000
790,000 3%
160,001 – 165,000
895,100 3%
165,001 – 170,000
940,000 3%
170,001 – 175,000
1,123,000
3%
175,001 – 180,000
1,308,000 3%
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 108 of 131
MEMBRANE TYPE CONTAINMENT SYSTEM (CC)
Size of the Vessel (m3)
Suez Canal Transit Charges
(in USD)
Escalation Rate per annum
(ERn)
150,000 – 155,000
750,000 3%
155,001 – 160,000
790,000 3%
160,001 – 165,000
853,000 3%
165,001 – 170,000
916,000 3%
170,001 – 175,000
1,090,000
3%
175,001 – 180,000
1,275,000 3%
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 109 of 131
ANNEXURE 12 – PORT CALL CHARGES
MEMBRANE TYPE CONTAINMENT SYSTEM
Size of the Vessel (m3)
Loading Port Call
Charges (PCL)
(in USD)
Un-loading Port Call
Charges (PCU)
(in USD)
Escalation Rate per
annum (EPn)
150,000 – 155,000
120,000
42,000 3%
155,001 – 160,000
120,000
42,000 3%
160,001 – 165,000
125,000
42,000 3%
165,001 – 170,000
125,000
45,000 3%
170,001 – 175,000
125,000
56,000 3%
175,001 – 180,000
130,000
66,000 3%
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 110 of 131
MOSS TYPE CONTAINMENT SYSTEM
Size of the Vessel (m3)
Loading Port Call
Charges (PCL)
(in USD)
Un-loading Port Call
Charges (PCU)
(in USD)
Escalation Rate per
annum (EPn)
150,000 – 155,000
120,000
42,000 3%
155,001 – 160,000
120,000
42,000 3%
160,001 – 165,000
125,000
42,000 3%
165,001 – 170,000
125,000
45,000 3%
170,001 – 175,000
125,000
56,000 3%
175,001 – 180,000
130,000
66,000 3%
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 111 of 131
ANNEXURE 13 – BIDDERS CONFIRMATION FOR EVALUATION OF
WITHHOLDING TAX
Bidder‘s Name M/s .............................
TENDER No.
Offer Ref................................
Bidders are required to provide the confirmation/information against each point which shall be
utilised for calculation of Withholding Tax Liability (WHT) by GAIL. This Questionnaire duly
filled in should be returned along with Un-priced Bid.
S.
No.
Description Bidder’s
Confirmation
/Reply
1 Proposed country of incorporation of Special Purpose Company (SPC)
for each Vessel, in the event of award. In case more than one country for
different sizes of ships, indicate separately for all sizes. For the purpose
of WHT rate determination, the country of incorporation and Tax
Residency of SPC will be considered same unless otherwise indicated by
the Bidder in its confirmation here.
Note: - Bidder to indicate only one country of incorporation for each
SPC. In case Bidder provides for more than one country of
incorporation, the country with higher tax implication to GAIL, by way of
WHT liability, will be considered for evaluation.
2 Please confirm whether SPC will/will not have any Permanent Establishment
(PE) in India during the whole or part term of Time Charter Party Agreement
(TCP). The term ―Permanent Establishment‖ shall be as defined in respective
Double Taxation Avoidance Agreement (DTAA) between country of
incorporation and India (in case tax residency status is not different from country
of incorporation). The DTAA will be applied as per the Tax Residency Status of
SPC. However, in case SPC registered in a non-treaty country, Income of SPC
should not accrue or arise in India directly or indirectly through a business
connection or otherwise, as defined in Sec 9 (1) of Indian Income tax Act, 1961.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 112 of 131
S.
No.
Description Bidder’s
Confirmation
/Reply
3 Please confirm that in case SPC will not have any PE in India then SPC
will provide an undertaking, in this regard, in the format prescribed by
GAIL along with each charter fee invoice. In case SPC fails to provide
the undertaking in the prescribed format or declares any false
information, the WHT and/or any interest and penalty as applicable on
account of the same will not be borne by GAIL and will be recovered
from SPC.
4 Please confirm that SPC will/will not obtain Permanent Account Number
(PAN) from Indian Income Tax Authorities. As per Indian Tax Laws,
there is a penal rate of WHT for not furnishing PAN during payments.
5 Please confirm that SPC will furnish Tax Residency Certificate (TRC)
issued by the Government/Tax Authority of the Country in which SPC is
Tax Resident. This certificate is required every year by GAIL to
determine tax rates as per DTAA for any payment to SPC during each
year of the Time Charter Party Agreement.
6 Please confirm that along with TRC as mentioned in S. No. 5 above, SPC
will also provide a self-declaration in Form 10F prescribed under Rule
21AB of Indian Income Tax Rules, 1962 or as applicable at the time of
release/provision of invoice payment, as the case may be. A copy of
presently applicable Form 10F is enclosed as Annexure-13A.
7 Please confirm that, Bidder or SPC, as the case may be, will provide any
other document/information as may be required during bid evaluation by
GAIL and/or during the term of Time Charter Party Agreement due to
change in tax laws/rules or any other laws/rules impacting GAIL.
8 Please confirm that in the event Bidder or SPC confirms but does not
submit any or all of the documents/information as stated from S. No.1 to
7 above as may be required during bid evaluation or any time before or
during the term of Time Charter Party Agreement, any additional tax
implication arising on GAIL due to such non-submission/default will be
borne by SPC only and GAIL shall have the right to adjust the same from
the due payments of SPC.
9 Please confirm that if any information/documents provided in reference
to S. No. 1 to 7 above is found false or misleading during bid evaluation
or any time before or during the term of Time Charter Party Agreement,
any additional tax implication arising on GAIL due to submission of such
false/misleading information/documents by Bidder/SPC will be borne by
Bidder/SPC only.
10 Please confirm that any additional tax liability on GAIL due to change in
Tax Residency status of SPC or on account of PE of SPC in India, from
the originally evaluated position of Bidder, during the Time Charter Party
Agreement shall be borne by the SPC only and GAIL shall remit the
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 113 of 131
S.
No.
Description Bidder’s
Confirmation
/Reply
payments of due invoices after adjusting such implication.
Name : ....................
Designation : ....................
Seal : ....................
ANNEXURE- 13A
"FORM NO. 10F‖
[See sub-rule (1) of rule 21AB]
Information to be provided under sub-section (5) of section 90 or sub-section (5) of
section 90A of the Income-tax Act, 1961
I. . . . . . . . . . . . . . . . . . . *son/daughter of Mr.. . . . . . . . . . . . . . . . . . . in the capacity of . . . .
. . . . . . . . . . . . . . . (designation) do provide the following information, relevant to the
previous year. . . . . . . . . . . . . . . . . . . *in my case/in the case of. . . . . . . . . . . . . . . . . . . for
the purposes of sub-section (5) of * section 90/section 90A:—
SI.No. Nature of information : Details#
(i) Status (individual; company, firm etc.) of the assessee :
(ii) Permanent Account Number (PAN) of the assessee if allotted :
(iii) Nationality (in the case of an individual) or Country or specified
territory of incorporation or registration (in the case of others) :
(iv) Assessee's tax identification number in the country or specified territory of residence and if there is no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory of which the assessee claims to be a resident
:
(v) Period for which the residential status as mentioned in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A is applicable
:
(vi) Address of the assessee in the country or territory outside India during the period for which the certificate, mentioned in (v) above, is applicable
:
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 114 of 131
2. I have obtained a certificate to in sub-section (4) of section 90 of sub-section (4) of
section 90A from the Government of . . . . . . . . . . . . . . . . . . . (name of country or
specified territory outside India)
Signature: . . . . . . . . . . . . . . . . . . .
Name: . . . . . . . . . . . . . . . . . . .
Address: . . . . . . . . . . . . . . . . . . .
Permanent Account Number: . . . . . . . . . . . . . . . . . . .
Verification
I. . . . . . . . . . . . . . . . . . . do hereby declare that to the best of my knowledge and belief what
is stated above is correct complete and is truly stated.
Verified today the . . . . . . . . . . . . . . . . . . . day of. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .. . . . . . . . . . .
Signature of the person providing the information
Place: . . . . . . . . . . . . . . . . . . .
Notes :
1. *Delete whichever is not applicable.
2. #Write N.A. if the relevant information forms part of the certificate referred to in sub-
section (4) of section 90 or sub-section (4) of section 90A.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 115 of 131
ANNEXURE 14 - LNG VESSEL COST AND FINANCING
[To be provided separately in physical form for each Vessel as per Section 11.5 of the ITT]
Subject : Tender for Time Charter Hiring of LNG Vessels
(TENDER NO.: GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
1. VESSEL ID : Vessel No. ……… of Lot No……..
Additional Vessel No. …………..
2. VESSEL CAPACITY …………. M3
3. VESSEL COST
Sl.
NO.
DESCRIPTION AMOUNT IN US $
1. Know-how engineering and consultancy
2. Hard cost
3. Project management
4. Testing and commissioning
5. Classification, mandatory spare parts
Total Amount (Sl. No. 1 to 5) in US$
4. VESSEL FINANCING
Proposed capital Structure
Sl. No. ITEM AMOUNT (in US$)
1 Equity
2 Debt
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 116 of 131
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 117 of 131
ANNEXURE 15 - FORMAT OF THE LETTER FROM INTENDED LENDERS TO THE
BIDDER
[To be provided on Owner‘s Lender‘s Letterhead]
GAIL (India) Limited
GAIL Bhawan,
16, Bhikaiji Cama Place,
New Delhi - 110 066 (India)
Phone: (+91-11) 26182955 Extn: 6210
Direct: (+91-11) 26189269
Fax: (+91-11) 26185941 Extn: 00502#, #15245
Subject: Tender for Time Charter Hiring of LNG Vessels (TENDER NO.:
GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
We refer to the captioned ‗Bidding Document‘ issued by GAIL (India) Limited (―GAIL‖) on
[___] regarding the Time Charter Agreement (―TCP‖) for certain LNG vessels. The capitalized
terms used but not defined herein shall have the meaning ascribed to them in the said Bidding
Document.
We hereby confirm that our credit committee [has]/ [had] approved [in principle] to arrange a
loan facility for [insert details of Bidder / proposed SPC] in the amount up to [Amount] (the
―Facility‖) to fund construction and delivery of the [insert] LNG vessel(s) (the ―Vessels‖) to
GAIL as contemplated pursuant to the TCP.
Further, we confirm that: (i) we will keep GAIL informed of details regarding any events of
default under the financing and security documents executed in respect of the Vessels; (ii) we
will not take any steps to impede or prevent the LNG shipowner from delivering the Vessels to
GAIL on the Scheduled Delivery Date; and (iii) we have reviewed and approved the terms of the
TCP and that we will execute a Quiet Enjoyment Letter reflecting the agreed terms specified in
Appendix XII to the TCP (or in such other form agreed to by Charterer or Charterer‘s Lenders)
no later than one hundred and eighty (180) days following the Effective Date of the TCP.
Arranging of the Facility will be conditional upon fulfillment of a number of conditions
precedent to financial close being met, including (i) completion of satisfactory legal and
technical due diligence of the TCP, (ii) the absence of (a) any material adverse change after the
date hereof in the business or financial condition of [Bidder/ proposed SPC] and (b) any change
after the date hereof in the financial or capital markets generally that would (in our reasonable
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 118 of 131
opinion) materially impair our arranging of the Facility, (iii) the material accuracy of all
representations made by [Bidder] to us in connection with the Facility, (iv) subject to our above
agreement regarding the Quiet Enjoyment Letter, finalisation of agreements customary for a
transaction of this type in a form acceptable to us, (v) payment of all fees, expenses and other
amounts payable to us by [Bidder / proposed SPC] in connection with the Facility and (v) a
closing of the Facility on or prior to [date].
We confirm that our in principle offer to arrange the Facility will remain valid until the signing
of the TCP for the Vessels.
[Insert details of Owner‘s Lender]
By:
Name:
Designation:
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 119 of 131
ANNEXURE 16 - FORMAT FOR DECLARATION OF CHANGE OF MAJORITY
SHAREHOLDER IN SPC IN CASE OF AWARD
To,
GAIL (India) Limited
16, Bhikaiji Cama Place
New Delhi – 110066
Subject: Tender for Time Charter Hiring of LNG Vessels (TENDER NO.:
GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
Sir,
With reference to Section. 13.1 (d) of ITT, we confirm that the Bidding Consortium Leader
(M/s…………………………………..) will continue to remain the largest shareholder in at least
one (1) of the SPC formed for the ownership of the Vessels proposed in our offer.
We also declare that in case one of the other Consortium Members becomes the largest
shareholder with respect to any SPC formed for any of the Vessels offered & awarded to us, all
shareholding requirements previously specified for the constitution of such SPC shall thereafter
be applied to the new aforementioned Consortium Member as Consortium Leader of this SPC,
and to the interchanged other Consortium Members respectively.
We hereby declare that in case of award of contract, we shall make the following Consortium
Members as majority shareholders and leader in each of the SPC formed for the vessels offered :
Lot 1 and additional Vessels
Vessel identification number Proposed Majority Shareholder of SPC
Vessel #1
Vessel #2
Vessel #3
Additional Vessel #1
Additional Vessel #2
Lot 2
Vessel identification number Proposed Majority Shareholder of SPC
Vessel #4
Vessel #5
Vessel #6
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 120 of 131
Lot 3
Vessel identification number Proposed Majority Shareholder of SPC
Vessel #7
Vessel #8
Vessel #9
We also confirm that all Consortium Members mentioned above as proposed majority
shareholder of the SPC, meets the eligibility criteria of the Consortium Leader as mentioned in
Section 5.1.2 (b), and in compliance with the requirements of Section 13.1 (d) of the ITB.
Thanking you,
Name of the Consortium …………………………………………………………………………
Name of Authorised person on behalf of Bidding Consortium ………………………………….
Designation ……………………………………………………………………………………….
(Signature)
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 121 of 131
ANNEXURE - 17
ACKNOWLEDGEMENT CUM CONSENT LETTER
(On receipt of Tender Document/information regarding the Tender, Bidder shall acknowledge the receipt and
confirm his intention to bid or reason for non-participation against the enquiry /Tender through e-mail/fax to
concerned executive in GAIL issued the Tender, by filling up the Format) To
DGM (C&P)
GAIL (India) Limited
New Delhi, India
E-mail : [email protected]/[email protected]
Fax : (+91) 11 26185941 Extn 00502#
(+91) 11 26185941 Extn 05088#
Sub: TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 for Time Charter Hiring of
LNG Vessels (E-TENDER NO. 8000006832) Dear Sir,
We hereby acknowledge receipt of a complete set of Tender Document along with enclosures for
subject job and/or the information regarding the subject Tender.
We intend to bid as requested for the subject job and furnish following details with respect to
our office who will submit the bid:
Signature : ....................
Name : ....................
Designation : ....................
Name of Company : ....................
Postal Address with Pin Code : ....................
Telephone/Mobile Number : ....................
Fax Number : ....................
Contact Person : ....................
E-mail Address : ....................
Date : ....................
Seal/Stamp : ....................
We are unable to bid for the reason(s) given below:
______________________________________________________________________________
______________________________________________________________________________
Signature : ....................
Name : ....................
Designation : ....................
Name of Company : ....................
Telephone Number : ....................
E-mail Address : ....................
Mobile No. : ....................
Date : ....................
Seal/Stamp : ....................
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 122 of 131
ANNEXURE-18
FORMAT FOR CHARTERED ACCOUNTANT CERTIFICATE FOR FINANCIAL
CAPABILITY OF THE BIDDER
Sub: TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 for Time Charter Hiring of
LNG Vessels (E-TENDER NO. 8000006832)
We have verified the Annual Accounts and other relevant records of M/s. ……………… ………………
[Name of the Bidder or Consortium Leader and Members (as the case may be)] and certify the following:
A. ANNUAL TURNOVER OF LAST 3 YEARS (Refer instructions at 3 below):
Description Amount (Currency)
Year 1:
Year 2:
Year 3:
B. NET WORTH OF LAST FINANCIAL YEAR:
Description Year ______
Amount (Currency)
Net Worth (Refer instructions at 3 below)
Name of Audit Firm / [Signature of Authorised Signatory]
Chartered Accountant Name:
Designation:
Date: Seal:
Membership no:
Instructions:
1. The financial year would be the same as one normally followed by the Bidder or Consortium Leader and
Members (as the case may be) for its Annual report
2. The Bidder or Consortium Leader and Members (as the case may be) shall provide the audited financial
statements as required for this Tender document. Failure to do so would result in the Proposal being
considered as non-responsive.
3. For the purpose of this Tender document, (i) Annual Turnover shall be ―Sale value/Operating Income‖ and
(ii) Net Worth shall be the subscribed and paid up share capital of an entity plus its free reserves
but excluding revaluation reserves, as reduced by accumulated losses, intangible assets, and
miscellaneous expenditure not written off.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 123 of 131
Annexure 19
NO DEVIATION CONFIRMATION
To,
GAIL (India) Limited
16, Bhikaiji Cama Place
New Delhi- 110066
India
Sub: TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 for Time Charter Hiring of
LNG Vessels (E-TENDER NO. 8000006832)
Dear Sir,
We understand that any unacceptable deviation/exception in any form may result in rejection of
bid. We, therefore, certify that we have not taken any exceptions/deviations anywhere in the bid
against subject tender (except at Annexure 5 & Annexure 6, if any) and we agree that if any
deviation/exception is mentioned or noticed elsewhere, our bid may be rejected.
Name : ....................
Designation : ....................
Name of Company : ....................
Date : ....................
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 124 of 131
ANNEXURE - 20
DECLARATION
To Date:
GAIL (India) Limited
16, Bhikaiji Cama Place
R.K.Puram,
New Delhi- 110066
Sub: TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 for Time Charter Hiring of
LNG Vessels (E-TENDER NO. 8000006832)
Dear Sir,
We hereby confirm that Bidder / any of the Consortium members (as the case may be) are not
under any 'liquidation', any 'court receivership' or similar proceedings and 'bankruptcy'.
We further confirm that, Bidder / any of the Consortium members (as the case may be) have not
been banned, de-listed or blacklisted or put on holiday list any Government or Quasi
Government Agencies or Public Sector Undertaking under Government of India or Project
Management Consultants (PMCs) of GAIL (India) Limited.
We also confirm that the contents of the subject Tender have not been modified or altered by the
Bidder/Consortium (as the case may be).
We agree that if any such thing is noticed in future, our Bid / Contract may be rejected /
terminated.
Place: Signature of Authorised Signatory
Date: Name:
Designation:
Seal:
Offer No. & Date: …………………………………………………………
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 125 of 131
ANNEXURE- 21
Agreement regarding non-involvement of any other entity or Government of India in respect of the present Tender / Contract
(to be submitted on the letterhead of the Bidder)
Sub: TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 for Time Charter Hiring of
LNG Vessels (E-TENDER NO. 8000006832)
It is expressly understood and agreed by and between ....................(Bidder) and GAIL (India) Limited, (Indian Public Sector Undertaking) that GAIL (India) Ltd., is entering into this agreement solely on its own behalf and not on behalf of any other person or entity. In particular, it is expressly understood and agreed that the Government of India is not a party to this agreement and has no liabilities, obligations or rights hereunder. It is expressly understood and agreed that GAIL (India) Limited is an independent legal entity with power and authority to enter into contracts solely on its own behalf under the applicable Laws of India and general principles of Contract Law. The ............... (Bidder) expressly agrees, acknowledges and understands that GAIL (India) Ltd. is not an agent, representative or delegate of the Government of India. It is further understood and agreed that the Government of India is not and shall not be liable for any acts, omissions, commissions, breaches or other wrongs arising out of the contract. Accordingly ................... (Bidder) hereby expressly waives, releases and foregoes any and all actions or claims, including cross claims, impleader claims or counter claims against the Government of India arising out of this contract and covenants not to sue to Government of India as to any manner, claim, and cause of action or thing whatsoever arising of or under this agreement.
Signature ________________________
Name ________________________
Designation ________________________
Office Stamp ________________________
Offer No. & Date: …………………………………………………………
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 126 of 131
ANNEXURE - 22
CUT OUT SLIPS
[For submission of Envelope 1 containing Tender Fee, EMD, Power of Attorney & Integrity
Pact (in original)]
DO NOT OPEN - THIS IS A QUOTATION
Tender no. : GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
Item : Time Charter Hiring of LNG Vessels
Due Date& Time : ……….. upto……… hrs.
From: To:
……………
……………
GAIL (India) Limited
16, Bhikaiji Cama Place
R. K. Puram, New Delhi – 110 066
Ph. (+91)11-26182955, Fax. 011-26185941
=====================================
CUT OUT SLIP
[For submission of Envelope 2 containing Cost of Vessels]
DO NOT OPEN - THIS IS A QUOTATION
Tender no. : GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832)
Item : Time Charter Hiring of LNG Vessels
Due Date& Time : ……….. upto……… hrs.
From: To:
……………
……………
GAIL (India) Limited
16, Bhikaiji Cama Place
R. K. Puram, New Delhi – 110 066
Ph. (+91)11-26182955, Fax. 011-26185941
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 127 of 131
ANNEXURE - 23 (A)
PROFORMA OF "BANK GUARANTEE" FOR "EARNEST MONEY / BID SECURITY"
(To be stamped in accordance with the Stamp Act)
Ref............... Bank Guarantee No.........
Date......................
To:
M/s GAIL (INDIA) LIMITED
16, Bhikaiji Cama Place
New Delhi – 110066
India
Dear Sir(s),
In accordance with Letter Inviting Tender under your reference No __________________ M/s.
____________________[insert name of Bidder] having their Registered / Head Office at
_____________[insert address of Bank] (hereinafter called the Bidder/Tenderer), wish to
participate in the said tender for ………………..[Insert Tender Name & No]…… for total
number of …… Vessels.
As an irrevocable Bank Guarantee against Earnest Money Deposit/Bid Security for the
amount of US$______________[insert amount in Figure & Words] is required to be submitted
by the Bidder/Tenderer as a condition precedent for participation in the said tender which
amount is liable to be forfeited on the happening of any contingencies mentioned in the Tender
Document.
We, the ____________[insert Bank Name] Bank at
_____________________________[insert Bank Address] having our Head Office
_______________________________[insert Bank Address of Head Office] guarantee and
undertake to pay immediately on demand without any recourse to the tenderers by GAIL (India)
Limited (GAIL), the amount US$ ___________________ ____________________[insert
amount in Figure & Words] without any reservation, protest, demur and recourse. Any such
demand made by GAIL, shall be conclusive and binding on us irrespective of any dispute or
difference raised by the Tenderer.
This guarantee shall be irrevocable and shall remain valid up to ____________ [insert
date which must be two (02) months after the validity of Bid]. If any further extension of this
guarantee is required, the same shall be extended to such required period on receiving
instructions from M/s. _____________________________________________[insert Bidder
Name] whose behalf this guarantee is issued.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 128 of 131
In witness whereof the Bank, through its authorized officer, has set its hand and stamp on
this ___________day of ____________ 20__ at ____________.
WITNESS:
(SIGNATURE) (SIGNATURE)
(NAME) (NAME)
Designation with Bank
Stamp
E-mail:
(OFFICIAL ADDRESS) FAX:
Phone No:
Attorney as per
Power of Attorney No. ________
Date: ___________________
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 129 of 131
INSTRUCTIONS FOR FURNISHING "BID SECURITY / EARNEST MONEY" BY
"BANK GUARANTEE"
1. The Bank Guarantee by Bidders will be given on non-judicial stamp paper as per
"Stamp Duty" applicable. The non-judicial stamp paper should be in the name of
the issuing Bank. In case of foreign Bank, the said Bank's Guarantee to be issued by
its correspondent Bank in India on requisite non-judicial stamp paper
2. The expiry date should be arrived at in accordance with "ITB".
3. The Bank Guarantee by bidders will be given from Bank as specified in "ITB".
4. A letter from the issuing Bank of the requisite Bank Guarantee confirming that said
Bank Guarantee / all future communication relating to the Bank Guarantee shall be
forwarded to the Employer at its address as mentioned at "ITB".
5. Bidders must indicate the full postal address of the Bank along with the Bank's E-
mail / Fax / Phone from where the Earnest Money Bond has been issued.
6. If a Bank Guarantee Deposit/ Bid Security is issued by a commercial Bank, then a
letter to Employer confirming its net worth is more than Rs. 1,000,000,000
[Rupees One Hundred Crores] or equivalent alongwith documentary evidence.
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 130 of 131
ANNEXURE - 23 (B)
PROFORMA OF "LETTER OF CREDIT" FOR "EARNEST MONEY / BID
SECURITY"
To:
M/s GAIL (India) Limited
16, Bhikaiji Cama Place
New Delhi – 110066
India
Irrevocable and confirmed Letter of Credit No. …………………… Amount:
US$________________
Validity of this Irrevocable Letter of Credit : ………………………………………… (in
India)
Dear Sir,
In accordance with Tender under your reference No __________________ M/s.
____________________[insert name of Bidder] having their Registered / Head Office at
_____________[insert address of Bank] (hereinafter called the Bidder/Tenderer), wish to
participate in the said tender for ………………..[Insert Tender Name & No]…… for total
number of …… Vessels and submitting Earnest Money Deposit / Bid security in form of LC as
under.
1. You are hereby authorized to draw on ………………….. (insert Name of Applicant with
full address) for a sum not exceeding US$ ……………………[insert amount in Figure &
Words] available by your demand letter (draft) on them at sight drawn for US$
…………[insert amount in Figure & Words] accompanied by a certificate by GAIL
(India) Limited, with the Tender No……(insert Tender No) duly incorporated therein.
The Bid Security Amount is liable to be forfeited on the happening of any contingencies
mentioned in the ITT of the Tender Document.
2. This Irrevocable Letter of Credit has been established towards Bid Security Tender No
……………………(insert Tender No) for ……………….. ……(insert Tender Name).
3. We hereby guarantee to protect the Drawers, Endorsers and bonafide holders from any
consequences, which may arise in the event of the non-acceptance or non-payment of
Demand Letter (draft) in accordance with the terms of this credit.
4. This Credit is issued subject to the Uniform Customs and Practices for Documentary
Credits (1993 Revised) International Chamber of Commerce brochure No. 600.
5. Please obtain reimbursement as under: ………………………………………….
GAIL (India) Limited
Time Charter Hiring of LNG Vessels
Instructions to Bidders
TENDER NO. GAIL/ND/BD/C&P/1406/8000006832 (E-TENDER NO. 8000006832) Page 131 of 131
6. All foreign as well as Indian bank charges will be on the account of M/s.
…………………………… (Insert name of Bidder/Applicant)
FOR ………………………..
Authorized Signature
(Original Bank)
Counter Signature