RESPONSE TO QUERIES RECEIVED IN PREBID ... - …

1 Page 1 of 59 RESPONSE TO QUERIES RECEIVED IN PREBID MEETING Bid No.: ICB-PMD-DSAEP-071/72-04, Lot 1: Expansion of Distribution Networks in the Eastern Region of Nepal The pre-bid meeting as specified in the Bidding Documents was held on 2nd February 2016 in the Office of Distribution System Augmentation and Expansion Project, PMD, NEA. The QUERIES RECEIVED from the various bidders and NEA RESPONSE to the QUERIES are provided below: Tender clause/ Section/ Page No. Contents Clarification/ QUERIES NEA RESPONSE 1 Section-2, Bid Data Sheet, ITB Bid security Please confirm whether the Bid Security from bank in Bidders country is acceptable.

2 Yes, the Bid security from Bidders' home country is acceptable. 2 Section-3, Cl. , Domestic Preference A margin of preference will be granted to domestically produced Plant and Equipment in accordance with the following provisions:.. Citing the capacity limitation of local manufacturer, if a bidder is willing to give partial quantity from abroad and partial from Employer s Country then kindly confirm the modality of quoting and the application of margin of preference as the quantities in both schedules is same. For the Plants and Equipments supplied from abroad as quoted in Foreign Currency, Please fill in Schedule No.

3 1: Plant and Mandatory Spare Parts Supplied from Abroad of Volume III. For the Plants and Equipments supplied from Employer's country as quoted in Local Currency, Please fill in Schedule No. 2: Plant and Mandatory Spare Parts Supplied from within the Employer's country of Volume III. If the bidder wishes to apply for Domestic Preference, the application methodology will be as specified in Section 3, Cl. of the Bidding Document. 3 Section-3, Cl. (b)(a) The Bidder shall have successfully executed as a prime contractor, management contractor, subcontractor design, supply, installation / rehabilitation testing and commissioning of at least 26 (twenty-six) substation projects of 33/11 kV or above voltage class with transformers within the last seven (7) years, as of the last date of bid submission.

4 The aggregate capacity of transformers in Please reconsider and confirm the following: i) The subject tender has 13 Nos. substations (5 Nos. 3 MVA and 8 Nos. 6/8 MVA). The requirement under this clause calls for double the no. of substations 26 Nos. and the average MVA rating per s/s is 6 MVA. We request you to relax the requirement and accept 13 Nos, S/S with minimum transformation capacity per S/S. ii) In some of the turnkey tenders, the transformers are free issued by customer directly. Please confirm whether these substations will be considered.

5 I) The Section 3: Evaluation and Qualification Criteria shall remain unchanged. The requirement shall not be relaxed. ii) These substations will not be considered. Page 2 of 59 above substation projects shall not be less than 160 MVA. 4 Section-3, Cl. (b)(b) The bidder shall have successfully completed as a contractor, management contractor or subcontractor at least two turnkey (design, supply, installation, testing and commissioning) contracts having erected 161 KM 33 kV or above voltage level transmission line within the last five years. The subject tender has 165 km 33 kV and 198 km 11kV line and the requirement under this clause calls for 161 km of 33 kV or above line in two projects.

6 The requirement is huge compared to the current project requirement. We request you to relax the requirement and accept two turnkey contracts having 161 km of 11 kV or above voltage line. Also please confirm whether the requirement is 161 km for each contract or total 161 km for 2 contracts The Evaluation and Qualification Criteria shall remain unchanged. The qualification requirement shall not be relaxed. The requirement is 161 km for 2 contracts. 5 Section-8, SCC, Taxes & Duties, Cl. The Contractor shall be responsible for paying Tax Deduction on source (TDS) applicable as per prevailing Tax Law of Nepal.

7 Please confirm the rate of TDS. The current rate as per the Taxation law of Nepal is if the contractor is registered with VAT office of Nepal. 6 Section-8, SCC, Taxes & Duties, Cl. (c) and Duties on Equipment, Plant, Materials and Supplies: Cl. (c), (d), (e) Customs Duty & VAT There is contradiction in the various clauses. Please confirm whether i) The project is eligible for customs duty special rate of 1% and VAT is exempted for both imported & local items. ii) If VAT is to be reimbursed, please confirm whether it is to be considered & shown separately.

8 Iii) The price schedule under Sch-1 & 2 has single column for Taxes & duties. The column will not be sufficient to give breakup of custom duty, VAT if applicable & other taxes. Can we insert extra columns? i) The Customs duty shall be applicable to all the items as supplied from abroad (Schedule No. 1). VAT is not applicable to the imported items. The customs duty applicable in Nepal is additional to quoted price and will be paid by the Employer. ii) VAT if applicable shall be paid by the Employer. iii) The VAT is applicable to the items as per Schedule No.

9 4 Installation and other services. There is no need to add extra columns for Taxes and Duties. 7 Duties on Equipment, Plant, Materials and Supplies: Para after Cl. (j) Other local fees and charges (toll taxes) shall be applied in accordance with the prevailing laws and regulations of Nepal. Please confirm the applicable local fees and charges for the project along with the item-wise rates. Please refer to the taxation law of Nepal if you have any further QUERIES . 8 Section-9, Sch-1 & 2: Whether completion certificate & This shall be as per GCC Page 3 of 59 Contract Forms, Appendix-1, Terms of Payment Five percent (5%) of the total or pro rata CIP/EXW or amount upon issue of the Completion Certificate, within 45 days after receipt of invoice.

10 Five percent (5%) of the total or pro rata CIP/EXW or amount upon issue of the Operational Acceptance Certificate, within 45 days after receipt of invoice. Sch-4: Five percent (5%) of the total or pro rata value of installation services performed by the Contractor as evidenced by the Employer s authorization of the Contractor s monthly applications, upon issue of the Completion Certificate, within 45 days after receipt of invoice. Five percent (5%) of the total or pro rata value of installation services performed by the Contractor as evidenced by the Employer s authorization of the Contractor s monthly applications, upon issue of the Operational Acceptance Certificate, within 45 days after receipt of invoice.