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LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT PAGE i
Request for Proposal for the Supply of LNG (for a cargos to
be delivered in October 2015)
Issued by:
National Electric Power Company of Jordan
12 August 2015
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT PAGE ii
Acronyms
bcf/d Billion Cubic Feet Per Day
Btu British Thermal Units
FSRU Floating Storage and Regasification Unit
GWh Gigawatt Hour
IPP Independent Power Producer
JGTP Jordan Gas Transmission Pipeline
JKM Japan/Korea Marker
LNG Liquefied Natural Gas
LNGC Liquefied Natural Gas Carrier
MMBtu Million British Thermal Units
mmscf/d Million Standard Cubic Feet Per Day
MSA Master Sale and Purchase Agreement
MW Megawatt
NBP National Balancing Point (United Kingdom)
NEPCO National Electric Power Company
RfP This Request for Proposal
TBtu Trillion British Thermal Units
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT PAGE iii
Disclaimer
This Request for Proposal (RfP) has been prepared for the National Electric Power Company of Jordan, to invite
proposals for the supply of LNG to be delivered to the Terminal.
Although the information contained herein has been obtained from sources believed to be reliable, NEPCO
expressly disclaim any and all liability for incomplete or inaccurate information, or representations expressed or
implied, contained in, or omitted from, the RfP or any other written or oral or electronic media communication
transmitted or made available to any recipients of this RfP. NEPCO MAKE NO EXPRESS OR IMPLIED
WARRANTIES WITH RESPECT TO THE COMPLETENESS OF ANY FINANCIAL OR OTHER DATA
CONTAINED HEREIN. NEPCO also expressly disclaim all liability, including, without limitation, liability
for misrepresentation, negligence or otherwise arising from any recipient's reliance upon the accuracy or
completeness of the information contained in this RfP.
Each recipient of this RfP must rely upon its own investigations and evaluations to establish its own
conclusions as to the merits of the opportunity. This RfP is provided for information only and is not intended to
be, and must not be, taken as the basis for any investment decision. In making an investment decision,
prospective Bidders must rely on their own examination of the opportunity including the merits and risks
involved.
This RfP must be treated in the strictest confidence and may not be used for any other purpose or be reproduced,
disclosed or distributed by any party receiving a copy to any other party without the express prior written
consent of NEPCO.
Prospective Bidders are not to construe the contents of the RfP as tax or legal advice. No professional, financial
or legal adviser or any Government authority identified herein or any other independent third party has
independently verified or advised on the accuracy or completeness of this RfP, the information presented herein,
or the applicable laws of any jurisdiction. Neither do any of the above assume any responsibility for the contents
of the RfP. Prior to making a bid for the supply of LNG, any prospective Bidder should consult with its own
legal, business and tax advisors to determine the appropriateness and consequences of bidding for the supply of
LNG.
The delivery of this RfP at any time does not imply that the information contained herein is correct at any time
subsequent to its date. NEPCO reserves the right to supplement or amend the information contained herein at
any time. Neither NEPCO nor its advisors have any obligation to update or otherwise revise any information in
this RfP including, without limitation, any projections, including any revisions to reflect changes in economic
conditions or other circumstances arising after the date hereof or to reflect the occurrence of unanticipated
events, even if the underlying assumptions do not come to fruition.
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT PAGE iv
Table of Contents
Section A: Instructions to Bidders .................................................................................... 1
1. Overview of Tender Process ..................................................................................... 2
1.1 Introduction .................................................................................................................................. 2 1.2 Prerequisite for Bidding .............................................................................................................. 2 1.3 Bid Summary ................................................................................................................................ 2 1.4 Bid Timetable ................................................................................................................................ 3 1.5 Bid Instructions ............................................................................................................................. 3 1.6 Bid Requirements ......................................................................................................................... 9
Section B: Forms ................................................................................................................. 11
1. Bid Letter .................................................................................................................... 12
2. Form of Confirmation Notice ................................................................................. 13
3. Form of Performance Guarantee ............................................................................ 18
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 1
Section A: Instructions to Bidders
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 2
1. Overview of Tender Process
1.1 Introduction
The National Electric Power Company of Jordan (NEPCO) hereby invites bids (each a Bid)
for the supply of Liquefied Natural Gas (LNG) to be delivered to the Al-Sheikh Sabah LNG
Terminal at Aqaba, Jordan (the Terminal).
This RfP is being made available to all companies who have expressed an interest in
supplying LNG to NEPCO (each a Bidder).
1.2 Prerequisite for Bidding
NEPCO has executed a number of Master Sale and Purchase Agreements (each an MSA)
and is continuing to negotiate with other suppliers. NEPCO will work with Bidders to
execute an MSA prior to Bid submission. An MSA must have been signed by a Bidder and
received by NEPCO by the deadline set out in Clause 1.4 أسفل for its Bid to be considered.
1.3 Bid Summary
This RfP is being issued for the purpose of selecting a suitable LNG supplier to enter into an
Agreement, as defined in the MSA, to provide NEPCO with LNG as detailed below:
Contract Requirements
Total Contract Volume Two cargos of LNG
Delivery Timing Cargo #1 06 October 2015 through 07 October 2015.
Cargo #2 12 October 2015 through 13 October 2015.
Delivery Point LNG is to be provided on a DES (Delivered Ex-Ship) basis
to the Terminal
Contract Quantity 3.0 – 3.6 TBtu per cargo
Delivered LNG Volume No greater than 155,500 m3 per cargo
(i.e. equivalent to 160,000m3 LNGC )
Other Terms and Conditions As detailed in the MSA executed between the Bidder and
NEPCO
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 3
More detailed requirements are set out as follows:
a. LNG specifications as provided in the Form of Confirmation Notice set out in Annex
A of the MSA (the Specifications);
b. LNG Ship specifications as provided in the MSA; and
c. Buyer's Facilities specifications as provided in the MSA.
1.4 Bid Timetable
RfP release date 12 August2015
Deadline for NEPCO to receive MSA signed by Bidder 16 August 2015
Bid Submission Window 11:00 to 12:00 (Jordan
time), 18 August 2015
Confirmation Notice executed by NEPCO
No later than 18:00
(Jordan time)
on 20 August 2015
1.5 Bid Instructions
Bidders are required to submit binding Bids. Bids should comply with the following
requirements:
a. Compliant Bids
The documents comprising the Bid shall consist of the following:
i. Bid Letter in the form set out in Section B1; and
ii. Confirmation Notice in the form set out in Section B2.
As noted above, NEPCO must have received a signed MSA from the Bidder no later
than 16 August 2015 for its Bid to be considered. Bids received from Bidders who
have not provided a signed MSA to NEPCO will be rejected.
b. Alternative Bids
Bidders may provide alternative Bids for the supply of LNG. For example,
alternative Bids may include:
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 4
i. A Price Proposal containing a price formula; or
ii. A cargo Delivery Window lying partially outside the relevant date range
stated in 1.3 أعلى.
Alternative Bids are not required to be in compliance with the Bid requirements.
NEPCO will consider alternative Bids at its sole discretion.
c. Bidder Questions
Bidders may submit questions at any time up to three (3) days prior to the beginning
of the Bid Submission Window.
Questions should be submitted by e-mail to:
aazzam@nepco.com.jo
with copies to:
azaghal@nepco.com.jo
m_kilani@nepco.com.jo
Richard.bass@navigant.com
Copies of any questions and replies from NEPCO will be circulated to all Bidders,
though the identity of the Bidder asking the question will be kept confidential.
d. Amendment of the RfP
At any time up to four (4) days prior to the beginning of the Bid Submission
Window, NEPCO may amend the RfP by issuing an addendum.
Any addendum issued shall be part of the RfP and shall be issued in writing to all
Bidders.
e. Bid Submission
All Bids must be sent by e-mail between 11:00 and 12:00 hours local time in Amman,
Jordan on 18 August 2015 (the Bid Submission Window).
Any Bid sent outside the Bid Submission Window may be rejected, no matter what
the reason for the early or late submission. It is the responsibility of Bidders to
comply with the Bid Submission Window.
f. Presentation of Bids
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 5
Bids must be submitted by e-mail. Bids submitted by facsimile, telex, telegram,
courier, mail or personal delivery may not be accepted.
Bids should be submitted by e-mail to:
adradkah@nepco.com.jo ; and
aazzam@nepco.com.jo
only, without any other recipients in copy.
The subject of the e-mail should be: “Proposal for the Supply of Liquefied Natural
Gas”.
Bids are to be provided as signed PDF documents.
g. Bid Validity
Bids shall be valid for a period of fifty four (54) hours from the end of the Bid
Submission Window (the Bid Validity Period). A Bid valid for a shorter period may
be rejected by NEPCO.
h. Clarification of Bids
To assist in the qualification, evaluation and comparison of the Bids, and ranking of
the Bidders, NEPCO may, at its discretion, ask any Bidder for a clarification of its
Bid, and provide a reasonable time for the preparation and submission of a response
from that Bidder. Any clarification submitted by a Bidder that is not in response to a
request by NEPCO shall not be considered.
No change, including any voluntary increase or decrease, in the prices of the Bid
shall be sought, offered, or permitted, except to confirm the correction of arithmetic
errors discovered by NEPCO in the evaluation of the Bids.
If a Bidder does not provide the requested clarifications of its Bid by the date and
time set in NEPCO’s request for clarification, its Bid may be rejected.
i. Evaluation of Bids
NEPCO will evaluate the Bids received and rank Bidders based on:
(i) Price;
(ii) Delivery Window; and
(iii) Form and value of the requested credit support.
NEPCO will select the Bids that provide the required LNG volumes and energy
content at the lowest overall cost. The cost assessment will include price and other
commercially important contract terms as set out in the MSA (including the
Confirmation Notice).
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 6
NEPCO is willing to provide credit support on a per cargo basis. However NEPCO
prefers Bids that: (i) do not require credit support; or (ii) require a standby letter of
credit from a Jordanian bank only. The form of credit support will be taken into
account in the choice of the selected Bidder.
NEPCO reserves the right to accept or reject any Bid, and to annul the Bid process
and reject all Bids at any time prior to execution of the Confirmation Notice, without
thereby incurring any liability to Bidders.
j. Confidentiality
Bids will not be publically opened. Information relating to the evaluation of Bids
shall not be disclosed to Bidders or any other persons not officially concerned with
the Bid process, and the Bid ranking will not be disclosed to Bidders. NEPCO may
announce the identity of the selected Bidder, but no further information will be
disclosed.
k. Notification of Bid Results
Prior to the expiration of Bid Validity Period, NEPCO shall:
i. notify the selected Bidder in writing that its Bid has been accepted, sign the
Confirmation Notice by the deadline set out in 1.4 أعلى, and issue the
Confirmation Notice to the selected Bidder; and
ii. notify each unsuccessful Bidder that its Bid has not been selected.
l. Performance Guarantee
No later than twenty (20) days before the start of the cargo Delivery Window, the
selected Bidder shall provide NEPCO with a US Dollar denominated performance
guarantee for an amount of ten percent (10%) of the cargo value, based on the
Contract Quantity multiplied by the Price Proposal, and issued by a bank in Jordan
(the Performance Guarantee) as security for NEPCO for the performance obligations
required by the MSA. The form of Performance Guarantee is attached at Section B3.
The Performance Guarantee must be valid for forty-five (45) days from the date of
issuance.
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 7
m. NEPCO discretion
NEPCO reserves the right to reject any or all Bids without assigning any reasons and
its decisions shall be final and binding. NEPCO will be under no obligation at any
time to select any Bid.
n. Cost of Bidding
The Bidder shall bear all costs associated with the preparation and submission of its
Bid, and NEPCO shall not be responsible or liable for any of those costs, regardless of
the conduct or outcome of the Bid process.
o. Language of Proposal
Bids and all related correspondence and documents shall be written in the English
language.
p. Currencies to be used in the RfP
The currency to be used in the Bid will be United States Dollars (USD). Bids not
using USD may be rejected by NEPCO.
q. Fraud and Corrupt Practices
NEPCO requires that Bidders, suppliers, contractors, consultants and concessionaries
(including their respective officers, employees and agents), adhere to the highest
ethical standards, and report to NEPCO all suspected acts of fraud or corruption of
which they have knowledge or become aware during the selection process. The
definitions of actions set forth below involve the most common types of fraud and
corruption but are not exhaustive. For this reason NEPCO shall also take action in
the event of any similar deed or complaint involving alleged acts of fraud and
corruption even when these are not specified in the following list. In pursuit of this
policy, NEPCO:
i. defines, for the purpose of this article the terms set forth below as follows:
(aa) corrupt practice means the offering, giving, receiving, or soliciting,
directly or indirectly, of anything of value to influence the action of another
Bidder or a NEPCO official, advisor or representative in the selection process;
(bb) fraudulent practice means a misrepresentation or omission of facts in
order to influence the selection process and includes collusive practice among
Bidders designed to establish indicative prices at artificial, non-competitive
levels and to deprive NEPCO of the benefits of free and open competition;
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 8
(cc) collusive practice means a scheme or arrangement between two or more
Bidders, with or without the knowledge of NEPCO, designed to establish
indicative prices at artificial, non-competitive levels or to influence the action
of any party in the selection process;
(dd) coercive practice means impairing or harming, or threatening to impair
or harm, directly or indirectly, persons or their property in order to influence
their participation in the selection process; and
(ee) obstructive practice means deliberately destroying, falsifying, altering, or
concealing of evidence material to the investigation or making false
statements to investigators in order to materially impede a NEPCO
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.
ii. will reject a Bid if it determines that the Bidder recommended for award, or
any of its personnel, or its agents, or its sub-consultants, subcontractors,
service providers, suppliers and/or their employees, has, directly or
indirectly, engaged in corrupt, fraudulent, collusive, coercive, or obstructive
practices in competing for this project or other projects in Jordan; and
iii. will sanction a firm or individual, including declaring them ineligible, either
indefinitely or for a stated period of time, to be awarded a contract with the
Government of Jordan if it at any time determines that they have, directly or
through an agent, engaged, in corrupt, fraudulent, collusive or coercive
practices.
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 9
1.6 Bid Requirements
a. Volume Proposal
Bidders must demonstrate their capability to supply the volume they are bidding for.
Specifically Bidders should provide in their Confirmation Notice:
i. Delivery Timing
Bidder must specify a delivery window lying within the date range stated in
1.3 أعلى (the Delivery Window).
ii. Contract Quantity and Volume Commitment
Bidder must specify the Btu content of the cargo (the Contract Quantity). The
Contract Quantity must be a single value in Btu lying within the 3.0—3.6
TBtu range stated in 1.3 أعلى.
The actual quantity of LNG delivered may be the Contract Quantity plus or
minus two percent (+/- 2%).
The volume of LNG delivered must not exceed 151,500 m3.
For the avoidance of doubt, Bidder must comply with both of the
requirements above in terms of energy content (Btu) and volume (m3).
NEPCO requires this level of certainty because the FSRU is the only storage
facility available to it and there is limited capability downstream for varying
gas off-take. NEPCO therefore has to ensure that the FSRU has sufficient
storage capacity for unloading each cargo and that the energy can be
consumed in its power stations.
iii. Shipping Commitment
Bidder shall specify the LNG Ship to be used for transporting the LNG. Note
that the Terminal can accommodate LNGC sizes up to Q-Flex.
iv. LNG Source
Bidder shall specify the LNG supply source(s).
v. LNG Specifications
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 10
Bidders must confirm that their LNG supply will conform to the
Specifications as set out in the Confirmation Notice.
b. Price Proposal
For each cargo that the Bidder is bidding to supply, the Bidder must propose a fixed
price (the Price Proposal). NEPCO will analyse the Price Proposals and choose the
most advantageous, taking account of the cost of NEPCO's alternative fuels (diesel
and fuel oil).
The Price Proposal should be presented net of all custom duties or fees, transfer
taxes, stamp duties and general and special sales taxes that are applicable within
Jordan. The liability for payment of taxes will be as set out in the MSA.
Bidders are allowed to propose different prices for the different cargo combinations
that can be bid for. For example, Bidders are allowed to propose different prices for
supplying both cargos versus supplying a single cargo. Bidders should clearly
explain their different price/cargo proposals and, for clarity, Bidders should submit
separate Confirmation Notices for each different price/cargo proposal.
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 11
Section B: Forms
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 12
1. Bid Letter
[Name of Bidder and Address]
[Date]
H. E. Abdul Fattah Aldaradkah,
General Manager of the National Electric Power Company
National Electric Power Company
Jabel Amman – 7th Circle, Zahran Street
Amman, 11814
Jordan
Your Excellency,
Bid to supply Liquefied Natural Gas
We, the undersigned, declare that:
(a) we have executed a Master Sale and Purchase Agreement for LNG with NEPCO;
(b) we have examined the Bidding Documents, including any addenda, and have no
reservations;
(c) we hereby offer to supply LNG in conformity with the Bidding Documents in
accordance with the Confirmation Notice provided as part of our Bid;
(d) our Bid is valid for a period of fifty-four (54) hours from the end of the Bid Submission
Window and it shall remain binding upon us and may be accepted at any time before
the expiration of the Bid Validity, in accordance with the Bidding Documents; and
(e) we understand and acknowledge that you are not bound to accept any Bid that you
may receive.
We hereby confirm that the information provided as part of our Bid is complete and
accurate and all necessary Board and other approvals have been obtained prior to the
submission of our Bid.
Yours faithfully,
Signed
Name
Duly authorized to sign the Bid for and on behalf of [name of Bidder]
Dated
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 13
2. Form of Confirmation Notice
Confirmation Notice
Pursuant to the Master Sale and Purchase Agreement for LNG dated [ ], between the National
Electric Power Company (NEPCO) and [ ] (the Seller) (the Master Agreement), NEPCO and the
Seller agree upon the following sale and purchase of LNG on this day of
, 2015.
1. Terms of Delivery
The deliveries under this Confirmation Notice shall be DES deliveries and Annex B of the Master
Agreement shall apply.
2. Source of LNG
The Gas Supply Area shall comprise [ ].
The Loading Port shall be the port located in [ ].
The expected departure date from the Loading Port shall be [ ].
3. Discharge Port and Buyer’s Facilities
The Discharge Port and Buyer’s Facilities shall be those located at Aqaba LNG Terminal, Jordan.
4. Quantities
The Contract Quantity shall be [ ] MMBtu.
For operational and tolerance purposes, the actual quantity of LNG that Seller may, at its option,
deliver to Buyer shall be the Contract Quantity plus or minus two percent (+/- 2%). For
avoidance of doubt, where Seller delivers to Buyer any quantity of LNG within this range and
where Buyer accepts in full such quantity of LNG, the provisions of Clauses 4.2 or 4.3 of the
Master Agreement shall not apply.
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 14
5. Specifications
The Specifications shall be:
Component Units Min Max
Nitrogen Mole % 0.00 1.00
Methane Mole % 83 100
Ethane Mole % 0.00 13.00
Propane Mole % 0.00 4.00
I-Butane Mole % 0.00 2.00
N-Butane Mole % 0.00 1.00
I-Pentane Mole % 0.00 0.2
N-Pentane Mole % 0.00 0.15
Specification Limits Units
Wobbe Index Btu/SCF Min 1320 Max 1470
Gross Heating Value Btu/SCF Min 980 Max 1180
Hydrogen Sulphide mg per
NCM
Max 6.0
Carbon Dioxide mol per
cent
Max 0.1
Total sulphur including
mercaptans
mg per
NCM
Max 30.0
NOTE: Hydrogen Sulphide will only be measured at the Loading Port, and notified to the Buyer
in the Certificate of Quality and Quantity provided that such notification is received from the
Loading Port.
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 15
6. Contract Price
The Contract Price shall be [ ] per MMBtu.
7. Parties' Bank Account Details
The name of Seller's bank and Seller's account details for the purposes of Clause 8.4 of the Master
Agreement are as follows:
[Include relevant bank details]
Account Name:
Bank Name:
Bank Address:
Account Number:
Sort Code:
Swift Code:
IBAN:
The name of Buyer's bank and Buyer's account details for the purposes of Clause 8.4 are as
follows:
[Include relevant bank details]
Account Name:
Bank Name:
Bank Address:
Account Number:
Sort Code:
Swift Code:
IBAN:
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 16
8. LNG Ship(s)
The LNG Ship(s) to be utilised for transportation of LNG under this Confirmation Notice and
her/their technical descriptions are as follows:
Name of LNG Ship:
Gross Vessel Capacity: [ ] m3 of LNG
Daily Boil-Off Rate: [ ] % of capacity
9. Demurrage Rate(s)
The rate(s) of Demurrage for the purposes of paragraph 5 of Annex B of the Master Agreement
shall be [ ] per day and pro rata for any begun day.
10. Delivery Window(s)
For each cargo to be delivered under this Agreement, the Delivery Window shall be a period of
[ ] hours commencing at [ ] (local time at the Discharge Port) on [ ].
11. Allowed Laytime
The Allowed Laytime shall be forty-eight (48) hours for LNG Ships with a gross vessel capacity
of up to one hundred and seventy thousand (170,000) cubic metres. For LNG Ships with a gross
vessel capacity that is in excess of one hundred and seventy thousand (170,000) cubic metres, 1.6
hours will be added to the standard forty-eight (48) hour laytime for every thousand (1000) cubic
metres of gross vessel capacity that the LNG Ship is in excess of one hundred and seventy
thousand (170,000) cubic metres. This will be calculated in accordance with the following
formula:
12. Credit Support
Buyer shall provide the Seller with credit support in accordance with Clause 8.6 of the Master
Agreement as follows:
[Details of credit support to be specified here (form, start date, duration, amount etc.)]
13. Other Provisions
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 17
In witness whereof, each of the Parties, in accordance with the Master Agreement, has caused
this Confirmation Notice to be executed by its duly authorised representative.
[ ] NATIONAL ELECTRIC POWER COMPANY
By: _________________________________ By: _________________________________
Title: ________________________________ Title: ________________________________
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 18
3. Form of Performance Guarantee
[Date]
National Electric Power Company
PO Box 2310
Amman
11181
Jordan
We refer to the DES Master Sales Agreement (the MSA) between [ ] (the Principal) and
National Electric Power Company dated [ ] (the Beneficiary).
We, [insert name of Jordanian bank], having our head office at [insert address of bank],
hereby irrevocably and unconditionally guarantee and undertake to pay the Beneficiary any
sum or sums up to an aggregate amount up to [insert the amount being 10% of the expected
cargo value] United States Dollars (USD) upon first written demand of the Beneficiary, all
without there being need for legal or administrative procedures and without need to prove
the Principal’s default.
Any claim under this Guarantee must include a statement signed by the Beneficiary
confirming:
1 The Beneficiary is entitled to claim under this Guarantee as the Beneficiary
has issued an invoice to the Principal in accordance with Clause 8.2 of the
MSA, and the Principal has failed to pay the afore-mentioned invoice in
accordance with Clause 8.3.2 of the MSA;
2 That as a result of the above conditions being satisfied the amount claimed is
due to the Beneficiary; and
3 The amount claimed,
such claim and statement shall be accepted by us as evidence, for the purposes of this
Guarantee alone, that the amount claimed is due to the Beneficiary under this Guarantee.
This Guarantee will be valid for [forty-five (45)] days from the date hereof. With respect to
any demand for payment under this Guarantee received by us on or before the expiry date
of this Guarantee, our obligations under this Guarantee shall remain in force until such
demand is finally settled.
This Guarantee shall be governed by English law.
LIQUEFIED NATURAL GAS SUPPLY – REQUEST FOR PROPOSAL DOCUMENT JORDAN LNG PROJECT Page 19
Yours faithfully,
Signed
Name
Duly authorised for and on behalf of [name of bank]
Date
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