Spec.: GC-7000

Issue: for Proposal

15.07.2018 D – 1

Annexure D – Part 2

Equipment Performance Guarantees

For One (1) Single Shaft Combined Cycle Unit (basic scope); and

One (1) Single Shaft Combined Cycle Unit (option)

for Orot Rabin Power Station, Units 70 and 80

Name of Supplier: ___________

1. Definitions

1.1 “Assembly/Unit” shall mean a complete Power Station Unit as defined in the

Agreement (which consists of equipment provided by Contractor and

equipment provided by others).

1.2 “Equipment Package” shall mean the Equipment as defined in the Agreement

to be provided by the Contractor under this Contract for a specific

Assembly/Unit.

1.3 “Basic Contract Price of Equipment Package”, as defined and stipulated in the

Agreement and/or the Summary of Prices and Delivery Schedule (Annexure

“C1”).

1.4 “Shop Test” and “Shop Test Report” shall mean a performance test conducted

at the manufacturer’s facilities (if applicable, as agreed upon and specifically

stipulated in the Contract) and a report of the values observed, measured,

recorded and analyzed in the course of such test, respectively.

1.5 “Factory Acceptance Tests” (“FAT”) shall mean performance tests /

simulations of an Equipment Package conducted at the manufacturer’s

facilities (if applicable, as agreed upon and stipulated herein) prior to

shipment.

1.6 “Erection” and/or “Installation” shall mean all the on Site erection and

installation activities, as applicable, including fabrication, assembly,

construction, alignment, leveling, installation, interfacing, piping, welding,

preheating, annealing, insulating, lagging, painting, grouting, fastening and

anchoring, clearing, checking, oil filling and treating, adjusting, quality

testing, and all other activities and procedures not specified in detail in this

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Annexure or in the Specification (Annexure “B”), which are necessary for the

proper installation of the Equipment Package to allow its Commissioning and

effective operation.

1.7 “Commissioning” is the process of taking an Equipment Package from its

agreed state of completed Erection to the point where its ability to meet its

design, functional and operational requirements can be demonstrated through

on Site testing and operation. The Commissioning of each Equipment Package

consists of two major stages, Cold Commissioning and Hot Commissioning,

as follows:

1.7.1 “Cold Commissioning” of an Assembly/Unit is the process of

verifying completion of all the mandatory erection works and pre-

operation checks of said Assembly/Unit including the related

Equipment Package in accordance with a check list to be established

during the detail design stage by mutual agreement (not to be

unreasonably withheld) of Purchaser and Contractor, to allow first fire

of the related gas turbine.

1.7.2 “Hot Commissioning” of an Assembly/Unit is the process of taking

said Assembly/Unit with the related Equipment Package from their

agreed state of completion of Cold Commissioning through the stage

of first fire of the gas turbine, to the point of demonstrating safe and

reliable synchronization of the Assembly/Unit with the grid, the

Assembly/Unit having successfully performed twelve (12) hours of

continuous operation (excluding normal interruptions not attributable

to Contractor) at 90% or more of the Assembly/Unit rated load and

being ready to start the Trial Run.

1.8 “Date of Starting the Trial Run” shall have the meaning as set forth in the

General Conditions, Annexure “A” to the Contract.

1.9 “Trial Run” (per Assembly/Unit and/or per Site with the relevant Equipment

Package, as applicable) is a process of preliminary tuning and extensive

demonstration of effective operation, including without limitation, flexibility

of operation and inherent reliability of the Equipment in all modes of

operation, characterized as follows:

1.9.1 “Readiness to Start the Trial Run” shall mean completion of Erection,

Cold and Hot Commissioning.

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1.9.2 “Preliminary Tuning” is the procedure of setting the adjustable

measures (instruments, software parameters) of the Assembly/Unit

including the Equipment Package to achieve simultaneously two major

objectives:

(a) Safe, reliable and smooth change-over through all the operating

conditions and loading sequences meeting the functional and

operational requirements as detailed in the Specification,

Annexure “B”.

(b) Performances equal to or better than the Guaranteed

Performance Levels, as detailed in Annexure “D” – part 1.

1.10 “Trial Period” shall mean a period allocated among other, as part of the Trial

Run as further detailed in Article 3.6.3 below.

1.11 “Successful Completion of the Trial Run” shall mean that said Equipment has

been available for safe and reliable operation in all modes of operation, as

further detailed in Article 3.6.7 below.

1.12 The performances guaranteed by the Contractor are those detailed in Annexure

D - Part 1 using the following definitions:

1.12.1 “Guaranteed Performance Parameter” shall mean the technical

definition of a guaranteed feature/quality.

1.12.2 “Guaranteed Performance Level” shall mean the performance level

guaranteed in the applicable unit of measure that has to be complied

with and demonstrated through Performance Tests.

1.12.3 “Minimum Performance Level” shall mean a performance level used

to define a tolerable range of deviation from a related Guaranteed

Performance Level, which has to be complied with and demonstrated

through Performance Tests as a precondition for issuing the Contractor

a Provisional Acceptance Certificate (PAC), as detailed below.

1.13 The types of parameters specifying Contractor’s undertakings are detailed in

Article 5 and in Annexure D - Part 1 using the following definitions:

1.13.1 “L.D. Parameter” shall mean a Guaranteed Performance Parameter

where the Contractor is liable to pay liquidated damages due to under

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performance with respect to a related Guaranteed Performance Level

as furtherer detailed in Article 5 below.

1.13.2 “A.R. Parameter” shall mean a performance “Accept-Reject”

parameter where the Equipment Package is either Accepted or

Rejected in accordance with the Contract.

1.13.3 “F.I. Parameter” shall mean a performance parameter declared by the

Contractor “for information” to cover a range of operating conditions

for information only. The parameters given for information only are

not subject to verification and non fulfillment of them is not subject to

any kind of rights or remedies of the Purchaser whatsoever.

1.13.4 “W.D. Parameter” shall mean a “Warranty Declaration Parameter”

declared by the Contractor to form a basis for a Warranty claim in case

of non-compliance.

1.14 “Site Performance Tests” are tests conducted on Site to verify that the

Equipment Package allows the Assembly/Unit to actually achieve the

Guaranteed Performance Levels as detailed in Article 5 and Annexure D - Part

1, using the following definitions:

1.14.1 “Provisional Acceptance Tests” and “Provisional Acceptance Test

Report” shall mean Site Performance Tests conducted after Successful

Completion of the Trial Run; and a report of the values observed, measured,

recorded and analyzed in the course of such tests, respectively.

1.14.2 “Final Acceptance Test” and “Final Acceptance Test Report” shall

mean the last Test of an Equipment Package, to be conducted by

Purchaser; and a report of values observed, measured, recorded and

analyzed in the course of such tests, including a final comparison of

the actual performance levels with the related Guaranteed Performance

Levels, respectively.

1.16 “Provisional Acceptance” of an Equipment Package shall mean,

without derogating from the general definition in the General

Conditions, that said Equipment Package has gone through Successful

Completion of the related Trial Run and has gone through a

Provisional Acceptance Test, and that in accordance with the

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Provisional Acceptance Test Report the actual performances of said

equipment Package comply with all the Minimum Performance Levels

simultaneously.

1.17 “Provisional Acceptance Certificate” or “PAC” shall have the meaning as set

forth in the General Conditions, Annexure “A” to the Contract, namely, a

certificate issued to the Contractor stating the date upon which Performance

Test results indicating Provisional Acceptance of the Equipment Package have

been obtained (the date of completing the related Performance Test).

1.19 “Rectifying Grace Period” shall mean, without derogation from the general

definition in the General Conditions, a period of thirty (30) working days

(excluding Fridays, Saturdays and Holidays) in the aggregate (to be counted

after the Date of Starting the Trial Run, and in excess of the allocated

durations for the Trial Period, Provisional Acceptance Test) during which The

Purchaser, without claiming for delays, shall allow the Contractor, upon

Contractor’s request, unimpeded access to the Equipment Package and

availability of reasonable plant resources, to repeat any Performance Test,

and/or to perform, at Contractor's expense, modifications, rectifications,

tuning, etc. as may be necessary for the Successful Completion of the Trial

Run and for verification of compliance with the Guaranteed Performance

Levels.

1.20 “Reliability, Availability and Maintainability (RAM) Field Demonstration

Test” for an Equipment Package shall mean a systematic follow-up of the

Reliability, Availability and Maintainability of said Equipment, to verify that

said Equipment complies with the RAM Guarantees as set forth in items 7.1.1,

7.1.2 and 7.1.3 of Annexure D - Part 1 in accordance with the provisions of

Supplement # 8.9.1.8 to Annexure “B”.

1.21 “Unit Basic Contract Price” shall mean the Basic Contract Price allocated for

the Equipment of the related Assembly/Unit, as defined and stipulated in the

Agreement, without the Cost of Financing (if any).

1.22 “Rated Load” shall mean the guaranteed gross Output at design point of the

Assembly/Unit as set forth in Annexure D - Part 1.

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2. General clarifications concerning the process of putting Equipment into

operation and verification of its performances

2.1 This Annexure “D” part 2, sets forth the specific requirements with respect to

the Equipment Performance Guarantees, including as applicable, the Factory

Acceptance Tests and/or Shop Test to be performed prior to Equipment

shipment; the necessary steps to be followed during Cold and Hot

Commissioning; the procedures to be followed during On-Site Provisional and

Final Acceptance Tests.

2.2 The major on Site activities/milestones in putting an Equipment Package into

operation are as follows:

1. Erection (by Purchaser).

2. Cold Commissioning (by Purchaser).

3. Hot Commissioning (by Purchaser).

4. Readiness to start the Trial Run and notification by Purchaser to

Contractor of the Date of Starting the Trial Run (as defined in the

General Conditions – Annexure “A”).

5. Trial Run (by Purchaser) including Preliminary Tuning (by

Purchaser/Contractor) and Trail Period.

6. Provisional Acceptance Tests (by Purchaser, Contractor invited to

witness).

7. Provisional Acceptance and issuance of PAC (by Purchaser, where

adequate).

8. RAM Demonstration Test (by Purchaser).

9. Final Acceptance Test and Final Test Report (if required).

10. Additional normal operation tuning (optional, if required by

Purchaser).

3. General Instructions for putting Equipment into operation

3.1 General:

3.1.1 For the successful completion of each activity/milestone in putting

Equipment into operation the Parties shall comply with the instructions

set forth below.

3.1.2 During Erection, Commissioning, Trial Run and testing phases the

Purchaser undertakes to order in due time all the agreed upon

mandatory On Site Services (if any) set forth as preconditions for

Warranty and specifically as detailed in Annexures “C1” and “N”.

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3.2 With respect to the design phase:

During the design phase of the Equipment Package and as scheduled in the

Documentation Submission Schedule (Annexure “J”), the Contractor shall

submit, among others, for Purchaser’s review and approval or for information

(as applicable):

3.2.1 detailed Design Drawings called for in the Contract.

3.2.2 detailed test procedures in conformance with the guidelines agreed

upon in the Contract for the Factory Acceptance Tests and/or Shop

Tests.

3.2.3 In case of Factory Acceptance Tests, the Contractor shall make all

necessary arrangements to enable DR (design review) with Purchaser,

at contractor facilities, in order to verify system's readiness and proper

implementation.

3.2.4 detailed test procedures in conformance with the guidelines agreed

upon in the Contract for the Site Performance Tests for all the

Guaranteed Performance Parameters.

3.2.5 the Contractor shall submit the instruction manuals called for in the

Contract (excluding final as made data).

3.3 With respect to Shop Tests:

3.3.1 The Contractor shall conduct at Contractor’s expense Shop

Performance Tests (in case such tests are called for by the Contract) as

an integral part of its Inspection and Test Plan and all the Contractual

requirements pertaining to Quality Control and Quality Assurance shall

apply thereto. The Purchaser shall be entitled to witness these tests and

to obtain independent test data by installing in parallel to Contractor’s

test instruments its own instruments and/or shall be allowed at its own

discretion while testing control systems to introduce random upsets to

verify proper response of the Equipment Package.

Shop Test results indicated by the Shop Test Report equal to or better

than the Minimum Performance Levels shall form in such case a pre

condition for packaging and delivery to Purchaser.

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3.3.2 Whenever a Shop Test is stipulated, the performance level guaranteed

by Contractor shall apply to both the related Shop Test result and the

on Site Final Acceptance Test result. The Purchaser shall be entitled

not to accept any part of the Equipment Package that does not meet the

Minimum Performance Levels in a Shop Test, where such test is called

for by the Contract.

3.2.3 The Contractor shall make all necessary arrangements and provide all

reasonable facilities and access for such Tests, either at Contractor's

facilities or offices or at the facilities or offices of any manufacturer

where any part of the Equipment Package(s) is being designed,

fabricated or manufactured.

3.3.4 Shop Test is considered Witness Point, and the relevant provisions set

forth in Article 3 of Annexure “A” to the Contract shall apply.

3.3.5 The Contractor shall give the Purchaser ample notice (of at least 60

days in advance) as to the time and place when each part of the

Equipment Package will be ready for such Shop Test and submit in due

time (of at least 30 days in advance) the related proposed test

procedures for Purchaser’s review and approval.

3.4 With respect to Factory Acceptance Tests (FAT) without derogating from the

specification requirements for PCMS inspection during FAT (Annexure B

Para. 10.28.) :

3.4.1 The Contractor shall make all necessary arrangements and provide all

reasonable facilities and access for such Tests, either at Contractor's

facilities or offices or at the facilities or offices of any manufacturer

where any part of the Equipment Package(s) is being designed,

fabricated or manufactured.

3.4.2 The Contractor shall conduct a Pre-FAT prior to the FAT itself to

assure effective FAT process. During the Pre-FAT the Contractor shall

test the system functions / hardware according to the agreed test

procedures and resolve technical issues if necessary. A detailed Pre-

FAT report shall be submitted for Purchaser's review prior to the FAT

itself.

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3.4.3 All FAT activities shall comply with the provisions of supplement

8.9.3.10 to the Specification - Security of critical project performed by

vendor abroad.

3.4.4 FAT is considered Hold Point, and the relevant provisions set forth in

Article 3 of Annexure “A” to the Contract shall apply.

3.4.5 The Contractor shall give the Purchaser ample notice (of at least 60

days in advance) as to the time and place when each part of the

Equipment Package will be ready for such FAT and submit in due time

(of at least 30 days in advance) the related proposed test procedures for

Purchaser’s review and approval.

3.4.6 Within two (2) weeks of FAT completion the Contractor shall submit

for Purchaser’s review and approval a detailed check list report of the

values observed, measured, recorded and analyzed in the course of

such test, including the recommended modifications (if any).

3.4.7 Purchaser may reject any part of the Equipment Package found to be

non-conforming with the Specification requirements (if the deviation

from the specification requirements has an adverse effect on the related

Equipment Package and/or Unit safe and reliable functionality) and

may request the Contractor to re-perform the FAT (completely or

partially).

3.4.8 Changes necessary to ensure compliance of an Equipment Package

with the specification shall be made by Contractor in a permanent on-

line manner and the Equipment Package shall be retested to verify its

proper operation before completion of the test activities.

3.4.9 Successful results indicated by the FAT report and approved by

Purchaser shall form in such case a pre condition for delivery of the

related Equipment Package to Purchaser.

3.4.10 Approval of the FAT report by Purchaser shall in no way relieve the

Contractor from its obligation to furnish the related Equipment

Package in accordance with the Specification.

3.4.11 Upon satisfactory completion of the FAT, the related Equipment

Package shall be considered completed and no hardware or software

thereof shall be changed, replaced substituted or otherwise altered

except upon written agreement of the Purchaser. Under no

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circumstances may the hardware be used to supply parts for tests or

substitution in other tests in the Contractor's facilities.

3.5 With respect to the Commissioning phase:

3.5.1 To finalize the Cold Commissioning the Purchaser shall verify

completion of all the mandatory erection and installation works,

connection to field equipment and pre-operation checks of the

Assembly/Unit with the related Equipment Package in accordance with

the check list provided by Contractor.

3.5.2 To finalize the Hot Commissioning the Equipment shall be tuned and

placed in service in accordance with Contractor’s specific instructions,

and the Purchaser shall verify safe and reliable synchronization of the

Assembly/Unit with the grid, continuous stable operation of twelve

(12) hours (excluding normal interruptions not attributable to

Contractor).

3.5.3 In the event Hot Commissioning is delayed for reasons attributable to

the Contractor, such delays shall be considered delays in delivery, and

the relevant provisions in Annexure “A” shall apply.

3.6 With respect to the Trial Run and Trial Period:

3.6.1 The Trial Run shall be scheduled to start at Purchaser's discretion after

successful completion of Hot Commissioning.

3.6.2 Upon readiness to start the Trial Run the Purchaser shall notify the

Contractor in writing of the Date of Starting the Trial Run as further

specified in Article 1 of Annexure “A”.

3.6.3 The “Trial Period” shall consist a period, demonstrated as part of the

Trail Run, of fourteen (14) consecutive days (excluding interruptions

not attributable to the Contractor and/or excluding up to two

interruptions of no more than two hours in the aggregate attributable to

the Contractor).

3.6.4 The Contractor shall nominate an authorized representative to witness

the Trial Run, Trial Period and the Provisional Acceptance Tests,

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confirm Test measurements and to perform in parallel independent

measurements (if required by Contractor).

3.6.5 During the Trial Run the Purchaser and the Contractor shall determine

by mutual agreement the timing, duration, conditions, preparations,

extent of testing and other factors of the Provisional Acceptance Tests.

3.6.6 During the Trial Run the adjustable measures (instruments, software

parameters) of the Assembly/Unit including the Equipment Package

shall be tuned and set in accordance with Contractor’s instructions to

achieve simultaneously safe, reliable and smooth change-over through

all the modes of operation, operating conditions meeting the functional

requirements as detailed in the Specification, Annexure “B” including

the specification requirements for Control inspection during Site

Acceptance Test (SAT) (as furtherer detailed in clause 10.28.2.4 of

Annexure B) and the performances to meet the requirements for

Provisional Acceptance as detailed in Article 5 and Annexure D -

part 1.

3.6.7 The following conditions should be complied with to consider

Successful Completion of the Trial Run:

3.6.7.1 for the duration of the Trial Period, the Equipment Package has

been available for safe and reliable operation in all modes of

operation without any limitation not consistent with the

specification requirements; and

3.6.7.2 for the duration of the Trial Period, more than 95% of its

guaranteed rated load as detailed in Annexure D - part 1, all as

demonstrated by means of on-base measurement instruments,

without any limitation not consistent with the specification

requirements.

3.6.7.3 In case the Equipment Package can not meet the operational

and performance requirements as detailed above for reasons

attributable to the Contractor, the Trial Period shall be repeated.

for avoidance of doubt, Trial Period duration included that the

Unit being in standby – or in actual operation at Purchaser’s

discretion.

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3.6.8 Without derogating from the definition in the General Conditions –

Annexure “A” - during the Trial Run the Contractor shall be allowed,

as part of Contractor's Rectification Grace Period, un-impeded access

to the Equipment Package and the Unit for rectification at no cost to

the Contractor.

3.6.9 In the event Successful Completion of the Trial Run is delayed for

reasons attributable to the Contractor, such delays shall be considered

Delays in Provisional Acceptance, and the relevant provisions in

Annexure “A” Article 11.3 shall apply.

3.7 With respect to the Provisional Acceptance Tests and Final Acceptance Tests:

3.7.1 General:

3.7.1.1 The Provisional Acceptance Tests shall be conducted (by the

Purchaser at Purchaser’s expense) after Successful Completion

of the Trial Run to verify that the Equipment Package complies

with at least the Minimum Performance Levels for the related

Performance Parameters listed in Annexure D – part 1.

3.7.1.2 The Contractor shall be given an advance notice and its

representative(s) will be given full access to witness (at

Contractor's expense) these tests and ample time and access to

assist in conducting the applicable tuning of the Assembly/Unit

with the Equipment Package.

3.7.1.3 Both the Purchaser and the Contractor shall certify the test

observations in writing.

3.7.1.4 After completion of measurements and recording test results

the Purchaser shall issue a Provisional Acceptance Test Report

detailing the values observed, measured, and recorded in the

course of the tests, with a detailed comparison and analysis of

the actual performances.

3.7.1.5 If in accordance with the Provisional Acceptance Test Report

all the Minimum Performance Levels of the Equipment

Package has been achieved, the Contractor shall be entitled to

the Provisional Acceptance Certificate (PAC) as further

detailed in 3.7.3 below.

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3.7.2 Verification of Equipment performances through Site Performance Tests:

3.7.2.1 Each Equipment Package supplied under this Contract should meet -

as part of the basic scope of Work, and without derogating from any

other contractual requirement - each of the related Guaranteed

Performance Levels specified in Annexure D - part 1.

3.7.2.2 The Purchaser may test each Equipment Package to verify

achievement of the Guaranteed Performance Levels.

3.7.2.3 The Guaranteed Performance Levels stipulated in Article 1 above

should be interpreted as already accounting for sufficient degradation

allowance for 1,000 operating hours. Thereafter degradation (aging)

shall be considered using the correction curves provided by the

Contractor and attached to the technical proposal.

3.7.2.4 The performances of the Unit (including equipment supplied and/or

retrofitted by Purchaser for this project) and of the Equipment

Package shall be tested in accordance with the latest editions (valid

on the date of Contract execution) of the following:

a1. ISO2314 (1989 – “Gas Turbine Acceptance Tests”) Note: this

is the standard relevant for performance tests.

a2. EPA: (NOx, O2, CO, VOC, Particulate levels)

And to the extent applicable:

b1. ASME: American Society of Mechanical Engineers PTC 22

b2. ANSI: American National Standards Institute, Inc.

b3. NEMA: National Electrical Manufacturer's Association.

b4. ABMA: American Boiler Manufacturer's Association.

b5. NFPA: National Fire Protection Association.

b6. ISA: Instrumentation, Systems and Automation Society

b7. IEC: International Electro-technical Commission.

b8. NEC: National Electrical Code.

b9. IEEE: Institute of Electrical and Electronics Engineers.

b10. OSHA: Occupational Safety and Health Administration, as applicable

with all the conforming procedures attached hereto [to be provided by

Contractor as part of its proposal] and the detailed procedures to be

provided for Purchaser’s review in accordance with sub article 3.2.4

above.

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3.7.2.5 The Purchaser undertakes to make all the necessary coordination,

provide all the necessary labor force and all the necessary

consumables, and conduct the Provisional Acceptance Tests within a

period of four (4) weeks, as soon as practically possible (taking into

consideration the balance of plant functionality and the grid

requirements) following the Successful Completion of the Trial

Period (including the appropriate tuning), and to analysis of

performances and to issue the Provisional Acceptance Test Report

within four (4) weeks thereafter.

3.7.2.6 Prior to Performance Testing the Equipment Package shall be tuned

by Purchaser and Contractor (fuel and combustion tuning, etc.). The

Contractor shall be given ample access and opportunity to check all

the main components to verify that the Assembly/Unit is in a suitable

condition for the Performance Test.

3.7.2.7 The Performance Test shall be conducted under conditions as close as

possible to the reference conditions stipulated for the Guaranteed

Performance Levels.

3.7.2.8 All Guaranteed Performances shall be tested and complied with

simultaneously for each load.

3.7.2.9 Where Load ranges between 50% to 100% of Unit rated load are

applicable, the Performance Tests shall be conducted (as applicable)

at 50%, 75% and 100% of said Unit rated load.

3.7.2.10 The Performance Tests shall be evaluated in accordance with the

correction curves / formulas for deviations of the actual test operation

conditions from the reference conditions provided by the Contractor

having the same tendency as the preliminary correction curves /

formulas [to be submitted during the technical evaluation stage as

part of the proposal].

3.7.2.11 During the Provisional Acceptance Tests, samples of the fuels shall

be taken and submitted to a well recognized laboratory.

3.7.2.12 The Purchaser undertakes to provide for the Site Performance Tests,

performance test class instrumentation calibrated (with test

uncertainty of maximum 1.0% for corrected power output and 1.5%

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for corrected heat rate. If the test uncertainty is as stated above, the

Acceptance Test results shall be reported using test observations

applying Zero tolerance to the measurements results, and the

comparison with the Guaranteed Performance Levels shall be

conducted without application of any test tolerances or uncertainties.

The Contractor shall be free to install its own performance test

instrumentation calibrated as above stated in parallel to the

instrumentation of the Purchaser.

In case of discrepancies between the measurements values, both

Parties shall investigate the cause and agree upon appropriate actions.

3.7.2.13 In case the results of the Site Performance Test indicate that the

performance levels of the Unit with the Equipment Package with

respect to one or more Guaranteed Parameters do not meet the related

Guaranteed Performance Levels, the Purchaser shall:

a. firstly, allow the Contractor to repair the Equipment Package upon

terms and conditions to be agreed upon; then

b. secondly, in the event the underperformance is not rectified as set

forth in Subarticle (a) above, avail itself (to the extent applicable)

of the Liquidated Damages for Under Performance on the basis of

the test results at the rates detailed in Article 5 below; then

c. thirdly, in the event the amount payable as Liquidated Damages

exceeds the limits set forth in the Contract, and/or in the event any

of the Minimum Performance levels is not yet achieved, declare

that the Equipment is in material non-conformance with the

specification requirements and avail itself of the remedies

available to the Purchaser due to a breach of a fundamental term of

the Contract by the Contractor.

All as further detailed below.

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3.7.3 Provisional Acceptance Certificate (PAC) and Rectifying Procedures

following Provisional Acceptance Tests:

Upon completion of the Provisional Acceptance Tests, then:

3.7.3.1 In case all the Guaranteed Performance Levels of the Equipment

Package has been achieved, then:

a. The Purchaser shall promptly issue a Provisional Acceptance

Certificate as detailed above;

b. The Purchaser shall be entitled to put the Equipment Package into

operation as part of the operation of the Unit;

c. The counting of WP1 months (as set forth in the Agreement)

towards the expiration of the Warranty period for the related

Equipment Package shall begin;

d. The Provisional Acceptance Tests shall be consider as Final

Acceptance Test.

or -

3.7.3.2 In case all the Minimum Performance Levels of the Equipment

Package have been achieved, then:

a. The Purchaser shall issue a Provisional Acceptance Certificate

as detailed above;

b. The Purchaser shall be entitled to put the Equipment Package

into operation as part of the operation of the Unit;

c. The Warranty period for the related Equipment Package shall

begin;

d. The Contractor shall (to the extent the Guaranteed Values are

not achieved due to any fault attributable to the Contractor) be

entitled at it’s sole discretion to (i) either pay LDUP for non-

achievement of the Guaranteed Performance Levels or (ii), if

necessary and subject to the provisions of 3.7.3.3 below, to

propose and implement within the first 6 months of the

Warranty period, corrective measures, to improve the

performance levels of the Equipment Package and pay the

LDUP, if any, at the end of said 6 months period in the event of

any remaining performance shortfall.

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3.7.3.3 In case one or more of the Minimum Guaranteed Performance Levels

of the Equipment Package has not been achieved or in case the

Contractor wishes (under 3.7.3.2 par. d above) to propose corrective

measures, then:

a. the Contractor shall analyze the deficiency and propose such

measures (hereinafter the “Repair Plan”) necessary to bring the

performance of the Unit with the Equipment Package as close as

possible to the Guaranteed Performance Levels (hereinafter the

“Repairs”).

b. the Purchaser shall be entitled to put the Equipment Package into

operation as part of the operation of the Unit, provided however

that the Purchaser will take all the necessary measures to ensure

that the Equipment Package will not be irreversibly damaged by

such an operation;

c. As long as the Equipment Package is out of operation, the

Contractor shall be liable for delays in Provisional Acceptance (if

any) as set forth in Annexure “A”.

d. The Repair Plan shall indicate the period within which the

Repairs are to be completed (hereinafter the “Repair Period”)

including all direct and indirect activities, such as diagnosis,

technical details, restoration, final checks, testing, etc., and shall

meet the following requirements:

(1) Replacement or repair of defective components.

(2) Minimum reduction of power output.

(3) Shortest possible down-time.

(4) Testing by Purchaser and witnessing by Contractor.

e. The Purchaser shall review the proposed Repair Plan and shall

reasonably endeavor to let the Contractor implement it, as soon

as possible, subject to mutual agreement on timing and warranty

extension, duration, scope, test procedure and expected

performance levels.

Spec.: GC-7000

Issue: for Proposal

15.07.2018 D – 18

f. During the rectification the Contractor shall be given a non-

penalised downtime of the balance of the allocated days as part

of Contractor's Rectification Grace Period. However, the

Purchaser and Contractor shall reasonably agree when these days

shall occur.

If the Contractor exceeds in the aggregate the Rectifying Grace

Period, such delays shall be considered Delays in Provisional

Acceptance, and relevant provisions in Annexure “A” Article

11.3 shall apply.

g. In case a Repair Plan is agreed upon, the Contractor shall:

(1) Utilize the Repair Period conscientiously and make good

faith attempts to adhere to its obligations according to the

Contract.

(2) Bear the entire costs of the Repairs and of such further tests

(including the costs of the Final Acceptance Performance

Test) as may be required to demonstrate that the Unit with

the Equipment Package has achieved the Guaranteed

Performance Levels.

Notwithstanding the above, the Purchaser shall provide during

the Repair Period at no cost to Contractor operating personnel

and adequate resources for operation of the Assembly/Unit such

as fuel, coal, electricity, water, pressurized air or the like.

(3) Pay liquidated damages for delays in Provisional

Acceptance (if any) as set forth in Annexure “A”.

(4) Extend the Warranty Period to compensate (as applicable)

for the periods during which the Equipment Package, for

reasons attributable to the Contractor, is out of operation

(non available for power generation), as set forth in

Annexure “A”.

(5) Extend the performance guarantees validity for the periods

during which one of the Guaranteed Performance Levels of

the Equipment Package has not been achieved.

Spec.: GC-7000

Issue: for Proposal

15.07.2018 D – 19

h. After the Repair Period as detailed above the Purchaser shall

perform Final Performance Test, and shall issue within one (1)

additional month a Final Performance Test Report.

3.7.4 Final Acceptance Test

in case such a test is required to accurately asses compliance with the

Guaranteed Performance Levels and liquidated damages for under

performance of the Equipment Package or with respect to any A.R.

Parameter, the Purchaser shall elect at its sole discretion from the

following:

3.7.4.1 With respect to L.D. Parameters, either:

a. To further let the Contractor repair the Equipment Package

upon terms and conditions to be agreed upon; or -

b. To avail itself of the applicable Liquidated Damages for Under

Performance on the basis of the test results at the rates detailed

in Article 5 below; or -

c. (In case one of the Minimum Guaranteed Performance Level

has not been achieved) To declare that the Equipment is in

material non-conformance with the specification requirements

and avail itself of the remedies available to the Purchaser due to

a breach of a fundamental term of the Contract by the

Contractor.

3.7.4.2 With respect to A.R. Parameters, either:

a. To further let the Contractor repair the Equipment upon terms

and conditions to be agreed upon; or -

b. To declare that the Equipment Package is in material non-

conformance with the specification requirements and avail

itself of the remedies available to the Purchaser due to a breach

of a fundamental term of the Contract by the Contractor.

3.7.4.3 Failure to achieve any of the Guaranteed Performance Levels with

respect to the A.R. Parameters or any of the Minimum Performance

Levels with respect to the L.D. parameters by the end of a Final

Acceptance Test shall constitute a breach of a fundamental term of the

Contract by the Contractor.

Spec.: GC-7000

Issue: for Proposal

15.07.2018 D – 20

3.7.4.4 Without derogating from the provisions of this clause 3.7.4 Purchaser

shall be entitle to perform (at Purchaser's expense) Final Acceptance

Test at any time prior to said Equipment Package Warranty cut off date

to demonstrate the actual performance levels with the related

Guaranteed Performance;

3.7.5 Summarizing per Assembly Unit and related Equipment Package:

a. Assessment of Liquidated Damages for under performance in

excess of the limits set forth in the Contract and/or failure to

achieve any of the Guaranteed Performance Levels by the end of

the Final Acceptance Test – shall render the Equipment Package to

be in material non-conformance with the Contract requirements

and shall constitute a breach of a fundamental term of the Contract

by the Contractor.

b. Without derogating from the provisions of the General Conditions

(Annexure “A”, Article 18 – Payment), in the event that:

(i) The Unit with the Equipment Package have successfully

completed the Trial Run as defined in article 3.6.7 above; and

(ii) the Liquidated Damages assessed for under performance are

within the limits set forth in the Contract; and

(iii) all the Minimum Performance Levels have been achieved;

Then, the Purchaser shall promptly issue a Provisional Acceptance

Certificate as detailed above.

the Purchaser shall not withhold signature of the related

Provisional acceptance Certificate for reasons attributable to under

performance or due to remaining minor technical problems that do

not affect the safe and reliable operation of the Assembly/Unit

with the related Equipment Package (said problems should be

detailed in a punch list to be taken care of as an integral part of

Contractor’s Warranty obligations).

Spec.: GC-7000

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15.07.2018 D – 21

3.8 With respect to operation of the Assembly/Unit and related Equipment

Package after Provisional Acceptance:

After Provisional Acceptance, the Purchaser, at its sole discretion, may

exercise the options for services of Contractor's personnel for tuning (as

further detailed in the Summary of Prices and Delivery Schedule, Annexure

“C1”), to allow the Purchaser operate the Assembly/Unit with the related

Equipment Package, achieving, per Purchaser’s priorities, performances

different from those guaranteed by the Contractor (as further detailed in

Annexure D – part 1 attached hereto), however without adversely affecting

their safe and reliable operation as well as their life expectancy.

4. Reliability, Availability and Maintainability Field Demonstration,

Extended Service Life Inspection, Rectifying Procedures and Contractor's

Responsibilities

4.1 After Provisional Acceptance and during the Warranty Period of the

Equipment Package, the Purchaser and the Contractor shall conduct a

Reliability, Availability and Maintainability (RAM) Field Demonstration for

the Equipment Package over a period of 12 months.

The Contractor may, at its sole discretion, either postpone or restart the RAM

Field Demonstration by no more than 4 months from Provisional Acceptance.

The RAM Field Demonstration shall be conducted in accordance with the

provisions of Supplement 8.9.1.8 to Annexure "B".

4.2 The Extended Service Life Inspection shall be conducted by Purchaser and

Contractor to verify meeting the guaranteed service life as characterized in

articles 7.1.1, 7.1.2 and 7.1.3 of Annexure D – part 1 with respect to the

guaranteed figures and the relevant operating hours. In the event of failure to

achieve any of the Minimum Performance Levels Acceptable for RAM the

Purchaser shall:

a. firstly, allow the Contractor repair or replace the Equipment Package

upon terms and conditions to be agreed upon; then -

b. secondly, in the event the provisions of subarticle (a) above are not

met, declare that the Equipment Package is in material non-

conformance with the specification requirements and avail itself of the

remedies available to the Purchaser due to a breach of a fundamental

term of the Contract by the Contractor.

Spec.: GC-7000

Issue: for Proposal

15.07.2018 D – 22

5. Liquidated Damages for Under- Performance (LDUP)

5.1 General

5.1.1 Wherever the Unit with the Equipment Package does not achieve due to

reasons attributable to the Contractor the Guaranteed Performance Levels with

respect to any L.D. Parameter at a Final Acceptance Test, the Contractor is

liable to pay Liquidated Damages for Under-Performance (LDUP) as

Purchaser's sole and exclusive remedy until the contractual maximum for such

LDUPs is reached as per Article 24(a)(vi) of Annexure "A", however without

derogating from the provisions of said Article 24, and without derogating from

the specific Purchaser's remedies detailed under this Annexure "D".

5.1.2 The rates of LDUP stipulated below fairly represent Purchaser’s estimate of

the techno-economic factors that affect the extent of Purchaser’s minimum

direct damages in cases of failure to achieve the Guaranteed Performance

Levels with respect to the L.D. Parameters.

5.1.3 The rates of LDUPs under article 5.2 below are already calculated taking into

consideration the full life expectancy of the Units – namely 25 years.

5.1.4 Whenever a Shop Test and/or a Factory Test is stipulated, the performance

level guaranteed by Contractor shall apply to both the related Shop Test and/or

Factory Test result and the on site Final Acceptance Test result. The Purchaser

shall be entitled to completely reject Equipment that does not meet the

Guaranteed Performance Levels in a Shop Test and/or a Factory Performance

Test where such test is called for by the Contract.

5.2 Subject to the provisions stated above, LDUPs with respect to the

Equipment Package shall be due as follows:

5.2.1 For failure to meet guaranteed Unit Net Output firing Natural Gas at

100% Unit load - at the rate of USD 4,246 per each kW (1 kW) less

than the values guaranteed in item 1.1.1 of this Annexure D – part 1.

5.2.2 For failure to meet guaranteed Unit net heat rate (LHV) firing Natural

Gas at 100% Unit load - at the rate of USD 292,000 per each kJ/kWh

(1 kJ/kWh) less than the values guaranteed in item 1.1.2 of this

Annexure D – part 1.

Spec.: GC-7000

Issue: for Proposal

15.07.2018 D – 23

5.2.3 For failure to meet guaranteed Unit Net Output firing Natural Gas at

50% Unit load - at the rate of USD 3,450 per each kW (1 kW) less than

the values guaranteed in item 2.1 of this Annexure D – part 1.

5.2.4 For failure to meet guaranteed Unit net heat rate (LHV) firing Natural

Gas at 50% Unit load - at the rate of USD 236,000 per each kJ/kWh (1

kJ/kWh) less than the values guaranteed in item 2.2 of this Annexure D

– part 1.

5.2.5 For failure to meet guaranteed Condenser pressure drop - at the rate of

USD 485 per each mmW (1 mmW) more than the values guaranteed in

item 4, of this Annexure D – part 1.

5.3 Reserved.

5.4 The Contractor shall pay the Purchaser the amounts due as LDUPs on the

basis of the rates stipulated above.

However, the Contractor shall not be liable to pay in aggregate more than

10.0% of the Unit Contract Price as liquidated damages for not achieving

guaranteed Unit Net Output and/or guaranteed Unit Net Heat Rate by the

related Equipment Package subject to the conditions stipulated in Article 5.2

above.

5.5 Failure by the Contractor to pay the amounts due within sixty (60) days of

Purchaser’s demand shall constitute a breach by the Contractor of a

fundamental term of the Contract.

- Final -