MOMBASA NAIROBI 400 KV TRANSMISSION LINE CONTRACT KETRACO/1/6/09 LOTS 1 and 2 MINUTES OF THE PRE BID MEETING

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1 1 MOMBASA NAIROBI 400 KV TRANSMISSION LINE CONTRACT KETRACO/1/6/09 LOTS 1 and 2 MINUTES OF THE PRE BID MEETING DATE: 23 rd November, 2009 PRESENT: KPLC/ KETRACO/CONSULTANT TIME: 10.00Hrs VENUE: KETRACO OFFICES, CAPARO PLACE Attendees 1. JOEL KIILU - KETRACO 2. FRED CARR - PB POWER Chairman 3. AGNES ONGADI - KETRACO 4. STANLEY MUTWIRI - KPLC 5. SAMMY MUITA - KPLC 6. ANDOLO AMBASI - KPLC PIT Leader 7. DUNCAN MACHARIA -KETRACO/KPLC 8. DANIEL NJUGUNA -KETRACO/KPLC 9. ANTHONY MUSYOKA - KPLC Taking minutes 10. SAMUEL YEGO - KPLC 11. WILLIAM MADARA - KPLC 12. BIDDERS - ATTENDANCE LIST ATTACHED 1 KETRACO Managing Director and CEO s welcome address, Chairman s and other comments. 1.1 The meeting started at 10.00Hrs with a welcome speech from the KETRACO Managing Director and CEO. He introduced the Ketraco/KPLC staff and the Consultant. He emphasized that the project should be carried out with speed. The closing date of the Tender will be as given in the tender document and the Employer will be reluctant to give any extension. 1.2 The Chairman explained the scope of the two Lots of the projects. The substation works at Rabai and Embakasi and the 220 kv cable will not form part of the two Lots. 1.3 The Chairman emphasized that the submission date of the tender is 19 th January, 2010 and there is no need for an extension. The bidders are allowed to bid for either one or both Lots. 1.4 Responses have been prepared on questions and requests for clarification received to date. These will be issued together with responses to the questions raised during the pre-bid meeting. The bidders are to forward written copies of the issues raised during the pre-bid meeting. All responses and minutes of the pre-bid meeting will be sent to all bidders on the first week of December and posted on the website without disclosure of the bidder who raised the issue. 1

2 2 1.5 The Chairman reminded the bidders that the queries to be clarified must be received 28 days before bid submission date. This will be on Tuesday, 22 nd December, These queries will be responded to by the first week of January, 2010 latest. 1.6 The bid documents are Standard World Bank documents customized for this project and also included specific requirements of the funding agencies. Exception to bid conditions are not expected and any bidder who includes such exceptions runs the risk of his bid being declared non responsive and rejected. 1.7 There will be a detailed prequalification evaluation of the bids to ensure that the bidders have adequate technical and financial resources, and logistical capabilities to carry out the works. 1.8 The bidders were advised to describe in details all their resources to enable them carry out the project. 1.9 The contract is expected to be executed by end of March, 2010 and the line shall be completed by June The line route provided is a conceptual one from which an estimate of the bill of quantities has been established. The winning bidder is expected to later carry out a more detailed survey of the route and propose any modifications deemed necessary The Project Implementation Team (PIT) Leader reminded the bidders that the project documents have been posted on two websites- and All clarifications and addendums shall be sent to the bidders and also posted on the KPLC website. The bidders were advised to continuously check the website for updates. The PIT Leader then described the line route to the bidders It was agreed to meet at Emali (140 km from Nairobi, junction to Loitoktok) the next day to start the line route visit Due diligence will be done on the references given as bidders experience. The bidders shall give clear and precise contact details of projects executed Soft copies of the technical and price schedules and route maps are on the website and the same is available at the office where the documents are being sold The coordinates of the line s angle points are available and will supplied to all bidders next week The bidders were advised to ensure that their contact is clearly written on the attendance list to avoid clarifications reaching them late. The verbal questions raised during the meeting were to be submitted in written form to provide an audit trail. 2

3 Evaluation criteria is as given in the tender documents. 2 Clarification / Queries I Qns: There is no mention of the substation works in the Tender documents. Ans: Lot1 & 2 are purely for the transmission line. The draft tender document for Lot 3 for the substation has been done. The critical path of the project is the transmission line Qns: What width of the line route is to be cleared? Ans: 60 meters. Qns: What are dock dues? Ans: These are payments at the port. Qns: Who will relocate people affected by the project? Ans: Most of the line route passes through sparsely inhabited areas and hence few persons will be relocated. It is KETRACO s responsibility to pay for the cost of compensation and relocation. Qns: Are there access roads? Ans: Part of the route has access roads. Where there is none the contractor is expected to provide acceptable access roads which will be used for the line maintenance in the future. Qns: Qualification criteria: 275 kv is not a standard voltage and requests the qualification to be change to 220kV and above. Ans: We will provide a complete answer in writing. However, out of the six lines at least three lines should be 400kV. 275kV was selected as a breakpoint as experience in 220kV was considered to be low for a project of 400kV. In addition the contractor must have worked outside his country to show that he has the capability and experience to mobilize resources to execute the project outside his own country. Qns: Tower configuration. For the 400 kv portion of the line can the bidders propose a different tower type? Ans: Our preference is the tower profile shown in the bid document. It has been selected due to environmental considerations as the line passes through the national park. Qns: The tension tower is under specified. Ans: The bidder is requested to put this in writing to enable preparation of a detailed response. 3

4 4 Qns: Who is responsible for access to the national park?. Ans: The contractor will pay for all the requisite levies. However, KETRACO will assist in dealing with KWS as appropriate. Qns: Can one bid bond be submitted for both lots? Ans: No. These are two separate contracts with separate resources required and will be evaluated as distinct projects. Qns: Is the site visit mandatory? Ans: It is advisable but not mandatory. Qns: The price adjustments in the two lots are different. Is this an error? Ans: No. this is not an error. It is under review and will be communicated later. Qns: How do you evaluate price escalation if bidders indices are different? Ans: The indices might be different but the indices required should be appropriate to the material and source of materials. The key materials are aluminium and steel whose indices are international. Qns: What exchange rate will be used during evaluation? Ans: It is specified in the tender document. The exchange rate will be the selling rate of the Central Bank of Kenya 28 days before the bid submission date. i.e. 22 nd December, An addendum will be issued in the BDS to capture the selling rate. Qns: Why is the bid bond amount not fixed? Ans: Bid bond remains as stated in the Bid Data sheet. The Bidder may allow for sufficient margin to avoid late application for the bond to the bank as he firms his bid. 3 Clarification on Taxation and Audited Published Accounts There should be no changes in the wording of the bid bond document. The bank should fill in where indicated in the document. It should not include any additional conditions The bidders shall submit full audited, published and certified accounts in the English language. A copy of The Kenya Power and Lighting accounts were shown as a sample The tender document is clear on the taxes which are exempt. These are clearly stated in ITB clause They are custom and import duty. All taxes outside the Country or by third parties are the responsibility of the bidder e.g PVOC 4

5 The Plant and Machinery from outside the Country are VAT Exempt. Contractor equipment does not fall in this category. 4 Clarification / Queries II Qns; VAT shall be included in the schedules where applicable but will not form part of the evaluation as the project is tax exempt. Ans: VAT shall be included in the schedules where applicable Qns; Can bid, performance and advance payment guarantees be issued by a bank from any country? Ans: The performance and advance payment guarantees will come later. Meanwhile the bid bond can be issued by any foreign bank but must have a corresponding bank locally. Qns; Can bidders come again and visit the site? Ans: Qns; Ans: Most of the route is easily accessible. After the site visit bidders are free to make their own arrangement for further visits. Should VAT be included in the bid bonds? Yes 5 SITE VISITS 5.1 Monday, 23/11/ pm: The bidders met at Embakasi Substation. The team then proceeded to the point where the first tower will be positioned and the cable terminated. They then went to the proposed site for Isinya Substation. One of the bidders requested a soil investigation report but was advised that it is the responsibility of the contractor to undertake soil studies. The bidders were informed that temporary connection shall be done in the event the 400/220kV Substation is not complete by the time the transmission line is commissioned. The temporary connections shall start and end at the nearest angle points to the terminal gantries. The 400kV line shall then be energized on 220kV. 5.2 Tuesday, 24/11/ am: The team met at Emali, and proceeded along the road to Loitoktok where they were shown the point where the line crosses the road. The next stop was Tsavo River, where Lot 1 & Lot 2 are separated. It was 5

6 6 reiterated that the contractor shall pay for all the levies to the Games Parks. However KETRACO will assist in dealing with KWS as appropriate. The third point was along the road to Taveta, where the team was shown the line route passing round Sagalla Hill and avoiding Voi town. 5.3 Wednesday, 25/11/ am The team met at Rabai substation as scheduled. They were shown the general approach of the line to the substation. The terminal gantry is a double circuit from where the two circuits will enter into the substation. They were advised that the line does not cross the Kiambere 220kv line. The line will however cross the 132kV Nairobi- Mombasa line at some point. After this the team moved to the proposed site of Mariakani substation, and were shown the proposed arrangement of how the 220 kv line from Rabai is to come in and the 400 kv one takes off. The bidders were reminded that temporary connection shall be done in the event the 400/220kV Substation is not ready by the time the transmission line is commissioned. The temporary connections shall start and end at the nearest angle points to the terminal gantries. The line shall then be energized on 220kV. The site visit ended at am. A register of the bidders who attended the site visit is attached. Anthony Musyoka For Project Team Leader 6

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