PQ 02-23 RFP Document
PQ 02-23 RFP Document
PQ 02-23 RFP Document
PRE-QUALIFICATION DOCUMENT
Contents
Schedule F: Checklist
SECTION 1.0 - Instructions to Applicant
1.1 The objective of this document is to prequalify the Coal Blend / Coal Brand for
Objective supply to TNB Fuel Services Sdn. Bhd. (“TNBF”). The document contains the
information and instructions to the Applicant on the Pre-Qualification Exercise.
1.2 Tenaga Nasional Berhad (“TNB”) is a public listed utility with its main business in
Background the generation, transmission, and distribution of electrical energy throughout
Information Peninsular Malaysia.
TNB Fuel Services Sdn. Bhd. (“TNBF”) is a wholly owned subsidiary of TNB.
TNBF’s core business activity is to undertake supply and delivery of fuel including
but not limited to coal for all TNB’s subsidiaries and other coal-fired Independent
Power Producers (“IPPs”) in Malaysia that have entered Power Purchase
Agreement (“PPA”) with TNB.
TNBF reserves the right to withdraw any tender submission that it is found
to be non-compliant to Pre-qualified coal quality specifications.
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1.4 The Applicant can propose only one Coal Blend / Coal Brand for each Pre-
Entitlement of Qualification submission (the “Submission”). Applicant may submit multiple
Submission for Submissions, provided that all Submissions must use original documents
Coal Blend / purchased.
Coal Brand
The Coal Blend / Coal Brand name must be clearly stated in Schedule A.
1.3 1.5 TNBF will purchase coal on a FOB INCOTERMS 2020 basis and will arrange all
1.4 Basis of coal transportation to the coal-fired IPPs from the supplier’s Load Port. However,
Supply TNBF also reserves its right to purchase coal on CFR or DAP INCOTERMS 2020
basis subject to its requirements.
1.6 The Submission must be submitted using the original documents with all the
Submission of Schedules duly filled and signed (where applicable).
Proposal
1.6.1 The Submission for this Pre-Qualification Exercise shall include all documents,
Data information and data necessary to complete the requirements of the document in
Submission all respects. In particular, the Submission shall be accompanied by the following:
1.6.2 All correspondences and documents in connection with this Submission and
Language of Agreement shall be in the English Language.
Submission
1.6.4 The Submission must be valid for at least 3 years from the submission date to
Submission enable the successful Applicant/Contracting Party to participate in any of TNBF’s
Validity coal tender exercise for that duration.
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1.6.5 Any Submission proposal received after the above closing date will NOT be
Rejection of evaluated and deem rejected for the current prequalification exercise period.
Post-Deadline Applicant(s) may resubmit their applications in the next prequalification exercise
Submission period.
1.6.6 TNBF shall not be responsible for, nor pay for, any expense or loss, which may be
Cost of incurred by the Applicant in completing and submitting the Submission.
Submission
1.6.7 Evaluation of Submissions shall be based on but not limited to the following:
Submission
Evaluation i. Compliance with boiler design specification;
ii. Evaluation of the coal performance through desktop modelling and/or
any other method of evaluating the coal performance in the boiler; and
iii. Compliance with Submission instructions and requirements as required
in Schedule A – F.
1.7 TNBF may require relevant Applicants to attend the clarification meetings during
Clarification the evaluation stage of this Pre-Qualification Exercise.
Meetings
1.8 TNBF may send a due-diligence team to carry out a due-diligence exercise on the
Due- Applicant’s coal mine and supply chain. Applicant is required to assist the
Diligence arrangement of due diligence exercise and ensure the mine is accessible by the
appointed due diligence team.
1.9 Notification The successful pre-qualified Coal Supplier shall be notified officially by TNBF.
of Successful This Document Submission shall not be treated as successful notification
Pre-Qualified whatsoever, unless officially notified by TNBF.
Coal Supplier
1.10 TNBF is not obliged to inform any reasons for the rejection of any Submission
TNBF’s Rights or whether the Applicant is successfully prequalified or otherwise. TNBF also
reserves its right to alter / change or modify any of the contents in this document
as and when required.
1.11 All written information supplied by the Applicant in the Submission document are
No true, complete and accurate in all material respects at the date it was given and is
Misleading not misleading in any respect.
Information
1.13 a. The Applicants/Contracting Party shall ensure that on a continuing basis and
Sanction at all times that they, their agents, sub-contractors, financial institutions and
Clause any other related entities dealing directly or indirectly with TNBF are not
subject to Sanctions or a Listed Party.
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“Sanctions” shall mean economic or financial sanctions or trade embargoes
or trade restrictions or similar or equivalent restrictive measures imposed,
administered, enacted or enforced from time to time by the UN, US, EU, UK
or other applicable sanctions authority.
“Listed Party” shall mean any party listed on the US OFAC Foreign Asset
Control List, or similar EU or UK lists of sanctioned or restricted parties.
i. The cargo has not been purchased from any sanctioned entities and
Listed Party; and
ii. None of the shippers, receivers or cargo interests are a sanctioned entity
and Listed Party.
In view of this, the Applicants shall also be required to sign and submit the TNBF
Integrity Pact & TNBF Sanction Declaration Form (part of the documents required
under Schedule F – Checklist).
1.14 The Applicant shall treat this document and everything within it as private and
Confidentiality confidential. The Applicant shall not publish or release information or drawings
and Personal relating to this document except with prior written consent of TNBF.
Data
Protection TNBF and the Applicant agree to comply at all times with provisions and
obligations contained in all applicable laws and regulations in Malaysia, including
but not limited to the Personal Data Protection Act 2010.
For the purpose of information and notification, TNB’s Personal Data Protection
Policy can be accessed at https://www.tnb.com.my/pdpa
1.15 TNBF may require the Applicant to furnish other information or documents, which
Further TNBF considers necessary in the evaluation and selection exercise.
Information
Further information and clarification on the documents may be obtained on
application in writing or telefax to:
MANAGING DIRECTOR
LEVEL 3, TOWER 1, UOA BUSINESS PARK,
NO. 1, JALAN PENGATURCARA U1/51A,
KAWASAN PERINDUSTRIAN TEMASYA,
40150 SHAH ALAM, SELANGOR,
MALAYSIA
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SECTION 2.0 – General Specification and Requirement
2.1.1 Kapar Energy Ventures is a coal-fired IPP situated in the district of Klang,
Kapar Energy Selangor. It is partly owned by TNB but operated as a full-fledged IPP. The IPP
Ventures Sdn. has a capacity of 1600MW of coal-fired generation capacity consisting of two units
Bhd. of 300MW each and two units of 500MW each. The IPP utilises bituminous
coals only.
Coal Receiving The IPP’s coal receiving facility is designed to unload vessels of up to Panamax
Facility sizes, where the site has access to deep water maximum of 13.1 m draft during
high tide. The facility is not suitable for barge discharging.
2.1.2 TNB Janamanjung is a coal-fired IPP in the district of Manjung, Perak and a
TNB wholly owned subsidiary of TNB. The IPP has a total capacity of 2,100 MW,
Janamanjung consisting of three coal-fired units of 700MW each. The IPP utilises sub-
Sdn. Bhd. bituminous coals. It is also capable of burning bituminous coals in the event
(Manjung 1,2 of emergency.
and 3)
Coal Receiving The IPP’s coal receiving facility is designed to unload vessels of up to Capesize,
Facility where the site has access to deep water of 18 m draft. The facility is not suitable
for barge discharging.
2.1.3 Tanjung Bin Power is a coal-fired IPP situated near the southern tip of Peninsular
Tanjung Bin Malaysia, in the district of Mukim Serkat, Pontian, Johor. The IPP has a capacity
Power Sdn. of 2,100 MW, consisting of three coal-fired Units of 700 MW each. The IPP is
Bhd. capable of burning sub-bituminous and bituminous coal blend.
Coal Receiving The IPP’s coal receiving facility is designed to unload vessels of up to Capesize,
Facility where the site has access to deep water of 16.5 m draft. The facility is not suitable
for barge discharging.
2.1.4 Jimah Energy Ventures is a coal-fired IPP situated in the state of Negeri
Jimah Energy Sembilan. The IPP has a total capacity of 1,400 MW, consisting of two coal-fired
Ventures Sdn. units of 700 MW each. The IPP is capable of burning sub-bituminous and
Bhd. bituminous coal blend.
Coal Receiving The IPP’s coal receiving facility is designed to unload vessels of up to Capesize,
Facility where the site has access to deep water of 18 m draft. The facility is not suitable
for barge discharging.
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2.1.5 Manjung 4 is operated by TNB Janamanjung Sdn. Bhd. (TNBJ) is a coal-fired IPP
TNB in the district of Manjung, Perak and a wholly owned subsidiary of TNB. The IPP
Janamanjung consists of a single coal-fired unit of 1,000MW. The IPP utilises sub-bituminous
Sdn. Bhd. coals. It is also capable of burning bituminous coals in the event of emergency.
(Manjung 4)
Coal Receiving The IPP’s coal receiving facility is designed to unload vessels of up to Capesize,
Facility where the site has access to deep water of 18 m draft. The facility is not suitable
for barge discharging.
2.1.6 Tanjung Bin Energy is a coal-fired IPP situated near the southern tip of Peninsular
Tanjung Bin Malaysia, in the district of Mukim Serkat, Pontian, Johor. The IPP consists of a
Energy Sdn. single coal-fired unit of 1,000 MW. The IPP utilises sub-bituminous coals. It is
Bhd. also capable of burning bituminous coals in the event of emergency.
Coal Receiving The IPP’s coal receiving facility is designed to unload vessels of up to Capesize,
Facility where the site has access to deep water of 16.5m draft. The facility is not suitable
for barge discharging.
2.1.7 Manjung Five is operated by TNB Janamanjung Sdn. Bhd. (“TNBJ”) is a coal-
TNB Manjung fired IPP in the district of Manjung, Perak and a wholly owned subsidiary of TNB.
Five Sdn. Bhd. The IPP consists of a single coal-fired unit of 1,000 MW. The IPP utilises sub-
bituminous coals. It is also capable of burning bituminous coals in the event
of emergency.
Coal Receiving The IPP’s coal receiving facility is designed to unload vessels of up to Capesize,
Facility where the site has access to deep water of 18 m draft. The facility is not suitable
for barge discharging.
2.1.8 Jimah East Power Plant is a coal-fired IPP situated in the state of Negeri
Jimah East Sembilan. The IPP has a total capacity of 2,000 MW, consisting of two coal-fired
Power Sdn. units of 1000 MW each. The IPP is capable of burning sub-bituminous coal
Bhd. blend (low and medium calorific value) or straight burn coal.
Coal Receiving The IPP’s coal receiving facility is designed to unload vessels of up to Capesize,
Facility where the site has access to deep water of 18 m draft. The facility is not suitable
for barge discharging.
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2.2 This section specifies the general requirement of coal quality.
General
Requirement
of Coal Quality
2.2.1 The Coal Blend / Coal Brand offered must be suitable for use at the IPP(s), which
Suitability at have been designed to burn sub-bituminous and/or bituminous coal with
IPP(s) quality range as specified in Annex 1.0.
The Coal Blend / Coal Brand offered shall be rejected if the coal quality
specification falls outside any of the Coal Quality limits of each IPP.
2.2.2 All coals submitted will be subjected to further evaluation to assess the coal
Stations/IPP(s) suitability at the coal-fired stations/IPPs including but not limited to, on its
Acceptance slagging fouling propensity and combustion analysis. The coal will be rated from
Base on 1-star to 5-star by the stations/IPPs where 5-star is the most prefer coal and 1-
Fouling and star the least prefer.
Slagging Index
This categorization concludes the station’s preference and acceptance on the
coal brand. Only coal brand/blend with 3-star and above will be accepted.
2.2.3 Coal Quality limits shall be strictly adhered to when submitting the coal
Adherence to specification in Schedule A.
Coal Quality
Limits
2.2.4 The Applicant is encouraged to offer a Coal Blend / Coal Brand that meets the
Furnishing the boiler design limits of as many coal-fired IPPs, if not all.
Coal Quality
Data in Full When completing Schedule A, Applicant’s attention is drawn to the specific
requirements that all coal quality data must be furnished in full, and that the
column for “Typical”, “Min” and “Max” value shall only contain one value for each
property and shall not be entered as a range of values. If a range of values is
entered, the Submission shall be disqualified.
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2.3 This section specifies the qualification for Applicant in participating in the Pre-
Qualification Qualification Exercise.
of Applicant
Applicants, who are International Traders, please refer to Item 2.4.
2.3.1 TNBF’s preference is Applicants who are Mine Owners or Mine Producers
Mine Owners themselves.
or Mine
Producers *For Indonesian Applicants, preference is given to Coal Contract of Works/
Perjanjian Karya Pengusahaan Pertambangan Batubara and Large to Medium
Scale IUP Producers. Preference is given to Coal Producer / Mine Owner that are
members with the Indonesian Coal Mining Association (“ICMA”) / Asosiasi
Pertambangan Batubara Indonesia (“APBI”).
2.3.2 The Applicant shall provide an undertaking letter by Mine Owner or Coal Producer.
Other than The applicant may provide evidence of the control over the mine and its coal
Mine Owners defining the relationship with the Applicant, agreements, contracts, details of
or Mine company structure, ownership details, audited annual reports, company brochures
Producers and other information deemed relevant as specified in Schedule F (a).
2.3.3 Upon successful tender submission, the contract will be issued to the contracting
Contracting Party only, not to the Applicant, unless the Applicant is Mine Owner, Producer or
Parties International Trader.
2.3.4 The Applicant may submit a letter on its company letterhead affirming that rights
Rights granted by the relevant Country Authority to produce, blend, trade, sell and export
Granted by coal from mine(s) as specified in Schedule F (b).
Authorities
TNBF may require Applicant to submit other documents/evidences to further
demonstrate such exercise of control i.e. Copies of the relevant permits, licenses
or leases based on the Government regulatory requirement i.e. Mining Permit,
Blending Permit, Trading Permit and Export Permit.
3. Export Permit (Eksportir Terdaftar) for the approved mine concession to export
2.3.5 The mine that has been prequalified may be allowed to nominate the same or a
Applicants different Applicant to represent the mine in TNBF’s tenders. The prequalified
Nomination specifications of the Coal Blend / Coal Brand from the prequalified mine has to be
maintained.
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2.3.6 The Applicant may submit proof that the company has experience and track record
Experience in supplying coal to reputable Power Utilities in the region i.e. Japan, Taiwan and
and Track Korea. Please refer to Schedule B Item 11.
Record
The Applicant may submit copies of 3 latest shipment Bill of Ladings for vessel /
barge, its 3 respective Certificate of Sampling and Analysis, its 3 respective
Certificate of Origin (COO) for the Coal Blend / Coal Brand proposed and for
Indonesian shipments, its respective Laporan Surveyor Ekspor and Eksportir
Terdaftar for export cargo. Please refer to Schedule B Item 13.
For coal originating from Indonesia, where coal has been loaded by barges,
please also attach the latest breakdown of the 3 shipments mentioned earlier.
The Applicants may submit the relevant 7 to 9 barges documentation and coal
sources for complete full load of each Mother Vessel shipments. Please refer to
Schedule B Item 14.
2.3.7 The Applicant may need to confirm that it has sufficient coal reserves to satisfy the
Sufficient Coal obligations of the Submission and that it undertakes to deliver only coal from such
Reserves mine(s).
Please furnish the coal mine concession/geological survey on the coal resources,
reserves, quality etc. based on International Standards report i.e. Joint Ore
Reserves Committee Code (JORC Code), South African Code for the Reporting
of Mineral Resources and Mineral Reserves (SAMREC), Standard National
Indonesia (SNI) or equivalent.
2.4 This section specifies the requirement for Applicants (International Traders) in
Qualification participating in the Pre-Qualification Exercise.
of
International
Traders
2.4.2 The International Traders may submit all the documents required i.e. Schedule A
Required – D together with additional information in Schedule E.
Documents
2.4.3 The Trader may submit in Schedule E the track records of at least 1 year of coal
Track Records shipments listing the Vessel Name, Coal Blend / Coal Brand, Customer Name,
Country, Quantity, Bill of Lading Date, copies of Bill of Ladings, copies of Certificate
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of Sampling and Analysis and the relevant Eksportir Terdaftar for export cargo (for
coal originating from Indonesia) in Schedule E Item (1).
2.4.4 The Trader may prove that it has supplied the offered Coal Blend / Coal Brand to
Supply to reputable Power Utilities.
Power Utilities
2.4.5 The Trader must submit proof of a back-to-back Supply Agreement with Mine
Back-to-back Owner/s or Coal Producer/s for the proposed Coal Blend / Coal Brand specified in
Supply Schedule A. This proof must be submitted in Schedule E Item (4).
Agreement
The Mine Owner/s or Coal Producer/s must be an international reputable supplier
with established track record in sea-borne trade with reputable utilities. The
Schedule C of the submission shall be completed with the particulars of the Mine
Owner/s or Coal Producer/s which produces the Coal Blend / Coal Brand as
submitted in Schedule A.
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2.5 This section specifies the requirement of proposed coal mines.
General
Requirement
on Proposed
Coal Mine
2.5.3 For coal that does not originate from a single mine, Applicants shall indicate clearly
Source and the source, coal quality data and proportion of blending that makes up the offered
Proportion of Coal Blend / Coal Brand in Schedule C Item 2.
Blending
TNBF reserves the right to reject blended coal that it considers unsuitable for
burning at the coal-fired IPPs.
2.5.4 The Applicant shall indicate clearly whether the Coal Blend / Coal Brand offered is
Coal washed, unwashed or partly washed in Schedule C Item 4 and shall provide
Washing detailed description of the washing processes and equipment in Schedule F (e).
2.5.5 The Applicants may submit the following documents for the Coal Blend / Coal
Copies of Brand offered:
Certificate of
Analysis and i. Copies of “as loaded” Certificate of Sampling and Analysis, from reputable
Related international independent surveyors, carried out on approximately 3 latest
Information previous shipments Handymax, Panamax or Capesize of the Coal Blend /
Coal Brand offered in Schedule B Item 13.
ii. Applicants may submit upon official TNBF request any bench scale or pilot
scale or full scale combustion test reports on the Coal Blend / Coal Brand
offered to enable TNBF to fully evaluate the suitability of the offered coal.
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2.5.6 The Applicant shall be required to fill up Schedule D on details of the loading port
Loading Port for the Coal Blend / Coal Brand submitted in Schedule A. If there are more than
Details one loading port available please copy Schedule D and fill in the details of each
port separately.
Information on the available inspection firms operating at the loading port shall also
be furnished. Detailed information on the sampling and analysis facilities
(automatic or manual) at loading port shall be included in Schedule F (h).
2.5.7 The Applicant shall provide information on Coal Blend / Coal Brand offered as
Export Record required in Schedule F to enable TNBF to establish the consistency of coal quality,
Details long term reliability and experience of the Coal Producer or Owner in coal export.
i. Export record of the proposed coal over the last one year giving such details
as:
• Names of buyers
• Quantities supplied
ii. Independent Mine Due Diligence Report, if any, done by the request of
Lenders or other coal buyers
2.5.8 TNBF shall review the documents as submitted and if deemed necessary and
Independent required, shall appoint an independent expert to conduct due diligence exercise on
Expert the mine and the complete supply chain from the mine to the loading port.
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2.6 This section specifies the obligation of Applicants in ensuring that the Coal Blend
Quality / Coal Brand as offered is as per the quality claimed in the Schedule A.
Assurance
and Control
2.6.1 The Applicant is required to provide a Coal sample of the offered Coal Blend /
Coal Sample Coal Brand for testing at the appointed laboratory by TNBF for the purpose of
further technical assessment of the offered Coal Blend / Coal Brand for use in
the coal-fired IPPs.
iii. The Coal sample shall be packed in cans or boxes with thick and hard
plastic bag (highly sealed, less hygroscopic, and rustproof material) in
order to avoid contamination and drying of the sample.
iv. Applicant shall courier the coal sample to the following laboratory: -
v. Applicant shall notify TNBF once the Sample is sent to the laboratory for
notification purposes.
vi. Applicant shall provide TNBF with the airway bill number (“AWB”) or
tracking number for tracking purposes. In the AWB shall clearly state the
applicant name, PQ exercise and coal brand.
vii. Cost of courier and all related expenses inclusive of SST and other
applicable tax shall be borne by applicant.
He shall also advise the coal-fired IPPs on handling and storage of the coal(s), and
related matters such as stacking, compacting and managing coal spontaneous
combustion in the storage yard.
These shall include the costs and expenses to mitigate and manage spontaneous
combustion, coal fires etc. during storage in the stockyard and disposal of such
scrap products and wastes.
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Annex 1.0
Table 1.0: Coal Quality Limits for Kapar Energy Ventures Sdn. Bhd.
No. Specification Basis Unit Limit Value
(GF2) (GF3)
1 Gross Calorific Value As Received Kcal/kg Min 5,800
2 Total Moisture As Received % Max 18.5
3 Ash Contents As Received % Max 18
4 Total Sulfur As Received % Max 1
5 Volatile Matter As Received % Min 24
6 HGI - Min 45 40
AFT (IDT) Reducing 0
7 C Min 1200 1240
Atmosphere
<3 mm Max 30%
8 Sizing As Received
>50 mm Max 5%
Table 2.0: Coal Quality Limits for TNB Janamanjung Sdn. Bhd. (Manjung 1,2 and 3)
No. Specification Basis Unit Limit Value
1 Gross Calorific Value As Received Kcal/kg Min 4800
2 Total Moisture As Received % Max 30
3 Ash Contents As Received % Max 15
4 Total Sulfur As Received % Max 1.1
5 Volatile Matter As Received % Min 22.5
6 HGI - Min 40
Reducing 0
7 AFT (IDT) C Min 1000
Atmosphere
<3 mm Max 30%
8 Sizing As Received
>50 mm Max 3%
Table 3.0: Coal Quality Limits for Tanjung Bin Power Sdn. Bhd.
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Table 4.0: Coal Quality Limits for Jimah Energy Ventures Sdn. Bhd.
No. Specification Basis Unit Limit Value
Bit Sub-Bit
1 Gross Calorific Value As Received Kcal/kg Min 5800 4800
2 Total Moisture As Received % Max 18 30
3 Ash Contents As Received % Max 18 9
4 Total Sulfur As Received % Max 1 1
As Received
5 Fuel Ratio - Max 2.6 1.5
6 HGI - Min 37 40
<2 mm Max 40% 40%
7 Sizing As Received
>50 mm Max 5% 5%
Table 5.0: Coal Quality Limits for TNB Janamanjung Sdn. Bhd. (Manjung 4)
Table 6.0: Coal Quality Limits for Tanjung Bin Energy Sdn. Bhd.
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Table 7.0: Coal Quality Limits for TNB Manjung Five Sdn. Bhd.
Table 8.0: Coal Quality Limits for Jimah East Power Sdn. Bhd.
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