BHARAT PETROLEUM CORPORATION LTD (A Government ...BHARAT PETROLEUM CORPORATION LTD KOCHI REFINERY...

BHARAT PETROLEUM CORPORATION LTD

KOCHI REFINERY

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(A Government of India undertaking) Kochi Refinery

Post bag no 2, Ambalamugal-682302 Kerala, INDIA

Ph no: 0484-2722061-69

Fax no: 0484-2720803/2720855/2720856 Website:www.bharatpetroleum.com

Date 20.04.2009

NOTICE INVITING GLOBAL TENDER

GLOBAL TENDER FOR EX-SITU REGENERATION OF UNREGENERATED DHDS CATALYST

M/s Bharat Petroleum Corporation Limited, Kochi Refinery (BPCL-KR) would like to carry out Ex-situ regeneration of unregenerated DHDS catalyst of approximate quantity of 210 MT in the fresh form. Sealed global tenders are invited from leading world wide bidders with own processing plants and sound technical infrastructure and financial capabilities, for the above, in two bid system (Unpriced and Priced) as detailed in the tender documents. The details of the tender and prequalification criteria for the bidders are as given below

Tender Reference

no: Item description

Tender document fee

For Indian / foreign vendor

Earnest money deposit

For Indian / foreign vendor

2093012

Ex-situ regeneration of unregenerated DHDS catalyst (approx quantity 210 MT in the fresh form)

Rs 5,000/- USD 125

Rs 1,00,000/- USD 2,250/-

Last date for submission of offer 1400 Hours (IST) on 30.06.2009 Opening of Unpriced /Technical bids 1500 Hours (IST) on 30.06.2009


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Pre qualification criteria Bidder shall satisfy/ agree all of the following criteria/ conditions:

1) The bidder shall have executed at least one ex-situ regeneration of hydro-desulphurisation catalyst, in the immediate preceding three financial years or in the immediate preceding 36 months, of value not less than US $ 2,40,000 (In INR Rs 120,00,000/-). Reference details including copy of purchase order shall be enclosed with technical bid

2) The hydro-desulphurisation catalyst regenerated by the bidders shall have worked

satisfactorily at least for 18 months, in similar operating units in India or abroad. Attested copies of performance certificates shall be attached with technical bid

3) Bidder shall obtain endorsement from the catalyst supplier, M/s Axens, France, on

the bidder’s capability to carry out ex-situ regeneration of M/s Axens catalyst. Necessary documents/ certificates in this regard shall be submitted along with the technical bid.

4) Bidder shall agree for submission of a bank guarantee in the prescribed format of

BPCL-KR, for an amount of Rs 10 crores, prior to taking possession of unregenerated catalyst, which shall be valid for 6 months from the date of taking possession of unregenerated catalyst, with an additional claim period of 6 months

5) The annual turnover of the bidder shall not be less than US $ 5,00,000 (In INR Rs

250,000,00/- ) in any one of the immediately preceding three financial years. For any further clarifications you may contact: Mr Mohan Varkey, Dy Manager (P&CS) Ph no: 91-484-2821608 Fax no: 91-484-2720803 Email: [email protected] The tender documents can be downloaded from our website, www.bharatpetroleum.com - Tender room. Only those meeting the prequalification criteria need quote. Bidders shall submit the proof of meeting the prequalification criteria, tender fee, documents called for vide the tender and EMD along with unpriced/ technical bid. Foreign bidders can also authorize their Indian agent /counterpart to quote on their behalf. Authorisation letter from the principals, in original shall be submitted along with unpriced bid. However, if the Indian representative prefers to submit the EMD in the


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form of a bank guarantee, then bank guarantee executed by the principal alone will be acceptable. Tender fee of Rs 5000/- shall be submitted in the form of demand draft drawn in favour of Bharat petroleum corporation Ltd- Kochi refinery, payable at Ernakulam, Kerala, India and it shall be non refundable. Foreign bidders wishing to remit tender fee in foreign currency may submit in US dollars (US $ 125/- ) Bidders who are registered with Bharat Petroleum corporation ltd are exempted from submission of EMD. Bidders may submit copies of purchase orders /enquiries received from BPCL during the period of three years preceding the date of this tender, as proof of being registered with BPCL. Similarly Indian public sector enterprises and firms registered with National Small industries corporation ltd (NSIC), India, are exempted from EMD and tender fee. Documentary proof of the same should be submitted along with Unpriced/ Technical bid. Bharat Petroleum Corporation Ltd reserves the right to extend due date of tender, to accept or reject any tender or all tenders, in part or full without assigning any reason, whatsoever. BPCL-KR reserves the right to make any changes in the terms and conditions in the tender without any claim/ liability from bidders. BPCL-KR has implemented an Integrity pact program (IPP) for procurement of materials and services and accordingly the following terms shall be enforced A proforma of Integrity pact is enclosed with the tender documents, which shall be returned by the bidder along with the unpriced bid, duly signed by the same signatory who is authorised to sign the bid documents. All pages of the integrity pact shall be duly signed. Bidders failure to return the IP duly signed along with the bid documents shall result in the bid not being considered for further evaluation If the bidder has been disqualified from the tender process prior to the award of the contract in accordance with provisions of Integrity pact, BPCL-KR shall be entitled to demand and recover from bidder, liquidated damages amount by forfieting the EMD/Bid security as per provisions of Integrity pact If the contract has been terminated according to the provisions of Integrity pact, or if BPCL-KR is entitled to terminate the contract according to the provisions of Integrity pact, BPCL-KR shall be entitled to demand and recover from bidder, liquidated damages amount by forfieting the security deposit/ Performance bank guarantee as per provisions of Integrity pact.


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Bidders may raise disputes/ complaints, if any, with nominated Independent external monitor. The name /address / contact numbers of Independent External Monitors appointed to oversee the implementation of Integrity pact is as given below Name : Mr T S Krishnamurthy Address : Flat no. 9, Gokul Tower Next to Mookambika complex No. 7 C P Ramaswamy Road Alwarpet, Chennai – 600 018 Phone : 91 44 24993077/ 24993079 Mobile : 9444999555 Dy General Manager (P&CS) Bharat Petroleum Corporation Ltd – Kochi Refinery


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TENDER DOCUMENT FOR EX-SITU REGENERATION OF DHDS CATALYST

Section

numbers

Table of contents

Page no

1 Instructions to bidders

1

2 Prequalification criteria

18

3

Technical Terms and conditions for Ex-situ Regeneration of DHDS catalyst

20

4 Agreed terms and conditions

25

5 Price Schedule

28

6 Bank guarantee format for EMD

30

7 Loading factors

32

8 Format for Integrity Pact

33


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SECTION 1

INSTRUCTIONS TO BIDDERS

1.0 General conditions 1.1 The instructions to bidders have been detailed out in order to facilitate the bidders

to submit their bids considering various aspects spelt out in the subsequent paragraphs.

1.2 In this tender document, the terms owner/ Buyer/ company refers to Bharat

Petroleum corporation Limited, Kochi Refinery (BPCL-KR) and the term bidder/ supplier/ vendor/ contractor refers to the vendor who submits the offer, or supplies the material against order.

1.3 The detailed Notice inviting tender (NIT) and tender documents are available on

our website, www.bharatpetroleum.in - tender room. Bidders may download the tender and submit their quotation with relevant documents mentioned in the tender as per requirements detailed in subsequent clause numbers. EMD, tender fee and documents to satisfy prequalification criteria shall be enclosed with the technical /unpriced

1.4 Tender Fee Bidders shall submit tender fee of Rs 5000/- (USD 125 for foreign bidders) in the

form of a demand draft, drawn in favour of Bharat Petroleum Corporation Ltd, Kochi refinery, payable at Ernakulam, Kerala, India. Tender fee shall be non refundable.

1.5 Contents of bidding documents The bidder is expected to examine carefully all instructions, conditions, forms and

terms/ conditions given in bidding documents. Failure to furnish all information required by bidding document or not responsive to the requirements of bidding document, will be at bidder’s risk and may result in rejection of bid

1.6 Corrections in bid All changes/ alterations/ corrections in bid shall be signed in full by person or

persons signing the bid with date. No erasure, use of correction fluid and /or overwriting is permitted.

1.7 Confidentiality of bid documents Bidder shall not disclose any information contained in the tender document or

otherwise supplied in connection with this tender to any third party, except for the purpose of preparing its bid and shall require any such third party to treat such information as confidential. BPCL-KR’s prior permission shall be taken for anything otherwise than above.


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1.8 Clarification on bid

To assist in the examination, evaluation and comparison of bids, the owner may at his discretion ask bidders individually for clarification on their bids. The request for clarification and the response shall be in writing or by tele-fax/ email. Answers to techno-commercial queries shall be submitted by the bidders within the mentioned time and date. In case of non receipt of clarifications, BPCL, Kochi Refinery reserves the right to disqualify the bidder and reject the tender submitted by the bidder. All queries shall be answered in full and no part answer shall be accepted.

1.9 Owner’s right to accept/ reject any or all the bids 1.9.1 Notwithstanding the conditions mentioned in the tender, owner reserves the right

to accept or reject any or all the bids without assigning any reasons whatsoever at any time prior to the award of purchase order. The affected bidder shall not make any claim/ liability for owner’s action.

1.9.2 BPCL-KR also reserves the right not to accept the bidder offering the lowest price

and to extend the due date or make any changes in the terms and conditions in the tender without any claim/ liability from bidders.

1.10 Bidder shall sign and submit any Addenda/Corrigenda to this tender document if issued, along with the tender document. Bidder shall consider the conditions mentioned in addenda while quoting for the job.

1.11 Force Majeure:

In case force majeure conditions occur during the contractual delivery period, BPCL-KR may extend the contractual delivery date without imposing penalty, provided the bidder informs about the same within 10 days of its occurance. Force majeure conditions shall comprise of natural calamities, civil wars, and national strikes which have a duration of more than seven consecutive calendar days. The decision of owner, in this respect, shall be final and binding on the vendor.

Bidder must advise the owner by a registered letter duly certified by local chamber of statutory authorities, the beginning and end of the delay, immediately, but in no case later than within 10 days of the beginning and end of such cause of force majuere condition as defined above.

1.12 Right of owner to determine/Terminate the contract

BPCL-KR shall, at any time be entitled to determine and terminate the contract, if in the opinion of BPCL-KR the cessation of the work becomes necessary owing to any cause whatsoever. A notice in writing from the Owner to the contractor of such determination and termination and the reason thereof, shall be the conclusive proof of the fact that the contract has been so determined and terminated by the Owner.


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1.13 Arbtration

Any dispute or difference between the vendor on one hand and owner on the other, of any kind whatsoever at any time or times, arising out of or in connection with or incidental to purchase order including any dispute or difference regarding the interpretation of the terms and conditions or any clause thereof shall be referred to arbitration under the rules of International chamber of commerce in Paris. The venue of such arbitration shall be in India. The Indian law shall apply.

1.14 Bidders shall specify tender reference number in all correspondences. 1.15 All communication documents shall be in ENGLISH only. 1.16 Forms of bid The forms given in bid document are the minimum requirements to be furnished

by the bidder. Additional information, if required, can also be attached with the form

1.17 Bidders are requested to accept all conditions specified in this tender document.

Bidders shall sign on all the pages of the tender document and submit the same along with other tender documents, as a proof of their acceptance of all conditions of tender. In case any of the conditions is not acceptable to bidder, comments shall be attached separately, duly referring to the clause numbers. Bidder shall not alter the tender documents downloaded from the website.

1.18 Loading factors for non acceptance / part acceptance of various commercial terms

are given in Section 7. Bidder’s quote shall be loaded by the percentage indicated to evaluate the bidder offering the lowest price.

1.19 The Agreed terms and conditions enclosed as section 4 shall be filled in by writing

“Accepted” against each row. Any additional information requested also shall be filled in. The documents shall be signed and sealed on all pages by the authorized signatory and shall be submitted along with the unpriced bid. Deviations, if any, shall be indicated separately. Such deviations may lead to loading of prices as per section 7, or rejection of offer at the sole discretion of BPCL-KR, without any reference to bidder.

1.20 The foreign vendors shall specify the name and address of their authorized Indian

agent or representative in India. In case of payment of Indian agents commission, the Indian agent shall be registered with DGS&D, Government of India. The copy of DGS&D registration certificate shall be attached. The amount of percentage of Indian agency commission, if any, shall also be mentioned in the certificate. It is to be noted and confirmed that Indian agency commission will be payable only in Indian currency and equivalent amount shall be deducted from invoice of supplier


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2.0 Delivery 2.1 Bidder shall return the catalyst after regeneration within a period of 6 months from

the date of placing the Purchase order. The bill of lading date at load port shall be considered as delivery date

2.2 Indigenous vendors shall arrange for collection of unregenerated catalyst from our

Kochi Refinery at Ambalamugal, Kochi and supply the regenerated catalyst on door delivery basis at Kochi Refinery.

2.3 For Foreign bidders, BPCL-KR will make available the drums carrying

unregenerated catalyst on Ex works basis. Bidder shall arrange for transport of the consignment to port and export the same through their freight forwarder, with transit insurance in their scope. The regenerated catalyst shall be delivered on FOB, Bidder’s load port basis. BPCL-KR will arrange for shipment of regenerated catalyst through their freight forwarder.

3.0 Payment terms 3.1 The following payment term is only acceptable for Indian vendors:

100% payment within 15 days of receipt and acceptance of material at site and on submission of all relevant dispatch documents including original invoice, test certificates etc

3.2 Following payment term is only acceptable for foreign bidders:

a) 100% Payment by wire transfer to bidder’s account, within 15 days of receipt and acceptance of regenerated catalyst at Kochi Refinery, with necessary documents like test certificates, original invoice & packing list, original bill of lading etc.

3.3 For both indigenous and foreign vendors, security deposit as per clause 4.0 below

is applicable.

4.0 Security deposit A sum of 10% of the accepted value of the tender shall be deposited by the bidder as security deposit with BPCL-KR. The earnest money deposited with the tender shall be adjusted towards security deposit provided, it is furnished in the form of demand draft. Security deposit shall be submitted within 10 days of receipt by bidder of the notification, accepting his tender. Contractor can furnish the security deposit amount (a) in the form of demand draft of schedule Bank duly endorsed in favour of BPCL-KR or (b) through Bank Guarantee from schedule Bank in the form prescribed. All compensation or other sums of money payable by the contractor to the Owner under terms of this


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contract may be deducted from his security deposit or from any sums which may be or may become due to the contractor by the Owner on any account whatsoever and in the event of his security deposit being reduced by reasons of any such deductions. The contractor shall within ten days thereafter make good any sum or sums, which may have been deducted from his security Deposit. No interest shall be payable by the Owner from sum deposited as security deposit. The security deposit shall be held by the Owner, as security for the due performance of the Contractor’s obligations under the contract, provided that nothing herein stated shall make it incumbent upon the Owner to utilise the security deposit in preference in any other remedy which the Owner may have, nor shall be constructed as confining the claims of the Owner against the contractor to the quantum of the Security Deposit. This security Deposit will be released to the Contractor within 3 months of receipt of regenerated catalyst at our site.

5.0 Liquidated damages clause 5.1 Liquidated damages is applicable @ 0.5% per week or part thereof subject to a

maximum of 5% of total order value, for delay in shipment beyond the agreed shipment date. The date of the bill of lading shall be taken as the delivery date.

6.0 Bank guarantee for the unregenerated catalyst

Successful bidder shall submit a bank guarantee in BPCL-KR format for Rs 10,00,000,00/- , before unregenerated catalyst shipment leaves kochi port. This bank guarantee shall be valid till regenerated catalyst is delivered at Kochi port. An additional claim period of 6 months shall be provided from bank guarantee expiry date, for lodging of claims, if any. BPCL-KR reserves the right to revoke the bank guarantee, if bidders is not agreeing to deduction of penalties as per clause of Section 3

7.0 Scope of the job 7.1 Subject tender is for Regeneration of unregenerated DHDS catalyst which is at

present contained in 2 reactors in our DHDS unit at Ambalamugal, Kochi, India. The unregenerated catalyst will be unloaded from the system during a planned shutdown, scheduled from April 21, 09 to April 30, 09. The unregenerated catalyst will be collected in sealed plastic bags under Nitrogen atmosphere and shall be kept inside sealed export worthy steel drums, at our Kochi Refinery. If bidders are interested to collect samples of the unregenerated catalyst, at the time of unloading from reactor, they will be allowed to do so. If bidders have any practical difficulty in being present at site, BPCL-KR can hand over composite samples, collected during the unloading of system, to the bidder.


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7.2 BPCL-KR will subsequently carry out regeneration of the composite sample

collected during unloading, at their laboratory. The quantity of fresh catalyst obtained in the regeneration will be ascertained. Similarly various parameters such as carbon content, sulphur content, surface area, crushing strength etc will be found out. These values shall form the base against which the regenerated catalyst supplied by vendor will be checked, to determine whether it is as per the guaranteed conditions. For this purpose, a representative sample will be drawn out from the regenerated catalyst supplied by vendor. This sample will be subject to testing at BPCL-KR laboratory and the values obtained will be compared with those obtained with sample regenerated by BPCL-KR. Vendors shall meet the following conditions for the parameters, beyond which penalties as detailed in clause 7 of Section 3 will be applicable

a. Carbon content: ≤0.5% max b. Sulphur content: ≤0.3% above the sulphur content in catalyst sample

regenerated in BPCL lab c. Surface area: ≥95% of the surface area of catalyst sample regenerated in

BPCL lab d. Crushing strength: ≥90% of crushing strength of catalyst sample

regenerated in BPCL lab e. Fines in product: ≤1.0% f. Catalyst loss during regeneration at vendor’s works: ≤3.0 %

7.3 Weight of unregenerated catalyst consignment

BPCL-KR will ascertain the weight of each truck load of unregenerated catalyst consignment by weighing at the weigh bridge available within BPCL-KR. The weight of unregenerated catalyst will be arrived at by deducting the weight of support balls and weight of drums. Bidders representative, will be allowed to witness the weighment, if required.

7.4 BPCL-KR will make the unregenerated catalyst available at our Kochi Refinery,

Ambalamugal in sealed export worthy drums. Bidders shall arrange for export of the consignment through their freight forwarder, to their manufacturing base, including all expenses such as freight, incidental charges, transit insurance, taxes etc.

7.5 The catalyst after regeneration shall be handed over to our freight forwarders on

FOB load port basis, in respective country of the bidder. 7.6 On receipt of the regenerated catalyst at Kochi Refinery, BPCL-KR will carry out

various tests in their laboratory and decide the penalties to be imposed on the bidder, for non compliance with the guarantees for the regenerated catalyst


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7.7 Payment to the bidder will be effected after evaluating whether bidder has been successful in meeting the liabilities of this contract as detailed in clause of section 3.

7.8 Bidder shall allow inspection of regeneration operation BPCL-KR representative

or a third party inspection agency, at bidder’s works. 7.9 All testing results and weighment carried out by BPCL-KR shall be final and

binding on the bidders. Bidders shall not contest the results obtained in BPCL-KR lab and the weights taken at BPCL-KR weigh bridge. There shall not be any claims by the bidder on this aspect and the decision of BPCL-KR in this respect, shall be final and binding on the bidder

8.0 Basis of evaluation 8.1 The bids will be evaluated first, on whether the bidder concerned is satisfying the

prequalification criteria given in section 2, based on the documents submitted. If the bidders does not satisfy any one of the prequalification criteria mentioned in section 2, the bid shall be summarily rejected

8.2 Quotations of bidders who satisfy all the prequalification criteria will be

technically evaluated. The bid will be evaluated for compliance to technical conditions mentioned in tender.

8.3 The price bids of all technically acceptable bidders will be opened at a later date,

in presence of attending bidders. The date of opening of price bids shall be intimated to all technically acceptable bidders.

8.4 For the purpose of evaluation of bids the foreign currency exchange rate prevailing

as on date of price bid opening shall be considered. The average of TT selling and TT buying rates provided by HDFC bank, Kochi shall be considered for evaluation.

9.0 Validity of the quote

The price quoted by bidders shall be valid for a period of 3 months for purchase order placement. Quotations mentioning price variation formula are likely to get rejected. However, if bidder still insist on price variation clause, they shall meticulously give the maximum ceiling due to price variation and this shall be considered for evaluation of bid.

10.0 Bidders shall take care of all environmental issues involved in the transportation

and processing of unregenerated catalyst and shall suitably coordinate with statutory bodies, governmental departments, to effect smooth transfer of material.


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11.0 The regenerated catalyst shall be supplied indicating or tagging with ten digit material code and other PO details on each item. The regenerated catalyst shall be supplied on super sacks and each sack (1000 kg wet approx per supersack) shall be kept on wooden pallets for easy handling. While stuffing the super sacks in container, it shall be ensured that the marking on super sacks regarding name/ brand of materials is facing the door side of the container. This will help customs examiner to identify the item on opening the container.

12.0 Foreign vendors shall provide psytosanitary certificate, free of cost, for wooden

packing as required by Indian custom authority. 13.0 The price quoted by foreign vendor shall be inclusive of expenses for collection of

unregenerated catalyst from our Kochi Refinery, transportation to Kochi port, various formalities for effecting export of the consignment, treatment/ processing of the unregenerated catalyst, Inspection by BPCL-KR or a third party at bidders works, forwarding of the regenerated catalyst in super sack on wooden pallets on FOB load port basis etc, complete. The FOB term shall take care of the export worthy packing, forwarding, inland freight, insurance and all taxes, duties, levies, bank charges, stamp duties etc payable upto the major international gateway seaport of exit and terminal handling charges etc, for loading into the vessel.

14.0 The shipment of regenerated catalyst shall be accompanied with certificate of analysis indicating the, Particle size distribution, moisture content, surface area, carbon content, sulphur content, crushing strength, fines in product, Apparent Bulk density, Attrition Index, Alumina content, Nickel, Molybdenum, Rare earth content and any other relevant information.

15.0 Procedure for quoting 15.1 Bidder shall quote for the rate per MT of regenerated catalyst considering all

requirements as per scope of job. The split up shall be as per format given in price schedule

15.2 The quotation shall be submitted in two bid system, i.e. priced and unpriced bid in

separate envelopes and superscribed as “Priced” and “Unpriced” as applicable. 15.3 Unpriced bid shall comprise of the following:

a) All techno commercial information, excluding the price b) All documentary evidence in support of the bidder having satisfied the

prequalification criteria c) Earnest Money Deposit (EMD) as per clause 16.0 below

d) Agreed terms and conditions duly filled in as explained in clause 1.19 above g) Tender fee as given in clause 1.4 above

h) Tender document duly signed on all pages as mentioned in clause no 1.17 above


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i) Price schedule given as section 5, without prices. Bidders shall mention “Quoted” against those item numbers for which he has quoted.

j) Duly filled form of Integrity pact, with signature of authorised person, as given in clause 17.0 below

k) All the above documents are to be put in an envelope and superscribed as “Tender for Ex-situ regeneration of DHDS catalyst, Tender reference 2093012 due on 30.06.2009 - Technical/ Unpriced bid”.

l) Price data shall not be given in any part of this unpriced bid 15.4 The second part termed as priced bid shall contain the per MT rate of regenerated

catalyst and all other details as required in the format given as Price schedule, in Section 5. This shall be put in an envelope superscribed as “Tender for Ex-situ regeneration of DHDS catalyst, tender ref 2093012 due on 30.06.2009 - Priced bid”. Priced bid shall be submitted in the same format as that of unpriced bid, but with prices indicated against each item.

15.5 The priced and unpriced bids together shall be put in another envelope, duly sealed

and superscribed “Tender for Ex-situ Regeneration of DHDS catalyst, Tender ref 2093012 due on 30.06.2009/ 1400 hours. The name and address of vendor shall also be mentioned on the cover.

15.6 The quotation should be submitted on or before1400 hours (IST) on 30.06.2009.

The quotation should be deposited in the tender box kept inside the tender hall at our Ambalamugal office or sent by post as per clause 15.7 below. The unpriced bids will be opened at 1500 hours (IST) on the same day in presence of attending bidders.

15.7 The bids if dispatched by post shall be sent in the following address

DEPUTY GENERAL MANAGER (P&CS) BHARATH PETROLEUM CORPORATION LTD KOCHI REFINERY POST BAG NO: 2 AMBALAMUGAL-682302 KOCHI, KERALA INDIA Ph no: +91-484-2821608 +91-484-2821602

15.8 BPCL-KR shall not take any responsibilities for delay/ non receipt of tender sent

by post or by any other means. Offers received after tender due date and time will be rejected. Telex/ fax / email offers are not acceptable.


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16.0 Earnest money deposit (EMD) 16.1 Earnest money deposit (EMD) of Rs 1,00,000/- shall be submitted by way of

crossed demand draft or bankers cheque, in favour of Bharat Petroleum Corporation Limited, payable at Ernakulam, Kerala, India from any nationalised/ scheduled bank. Foreign bidders shall submit EMD of US dollars 2,250/- by way of demand draft as mentioned above.

16.2 Payments will also be accepted in Indian currency from authorized Indian

associations of foreign vendors by producing specific letter of authority from their principal concerned. Demand drafts/ bankers cheque Issued by a foreign bank can also be accepted if the same is counter guaranteed by any scheduled bank as per Reserve bank of India list including overseas branches of state bank of India.

16.3 EMD can be submitted by way of bank guarantee also. The format for bank

guarantee is given as Section 6 of this tender document. The format has to be strictly adhered to. The bank guarantees shall be executed on non-judicial Indian stamp paper of value of Rs 100/- in the above format by any Indian bank or Indian branch of a foreign bank. However, where Indian representative of foreign bidder is submitting the tender, EMD in the form of bank guarantee can be executed only by the foreign bidder. Bank guarantee shall be valid till 30th October 2009, with a further claim period of 3 months. The BG submitted will be verified by our secretarial department and it shall be considered, only after endorsement by them.

16.4 EMD should be submitted along with unpriced bid only, otherwise the offer will

be rejected. EMD of successful bidder will be returned after receipt of performance guarantee. EMD of unsuccessful bidders will be returned or adjusted after against security deposit, after finalization of purchase order. Bidders may please note that no interest is payable on EMD amount submitted. If bidder fails to honour the commitment made through their quotation or if they withdraw their quotation, EMD shall be forfieted, without any further reference to bidder.

16.5 EMD shall NOT be applicable for bidders registered with Bharat Petroleum

Corporation ltd. Bidders may submit copies of purchase orders/ enquiries which they have received from Bharat Petroleum Corporation Ltd, during the immediately preceeding 3 years from the date of this tender, as proof of being registered. Similarly, Indian public sector enterprises and firms registered with National Small industries Corporation ltd (NSIC), India, are also exempted from EMD and tender fee. Documentary proof of the same should be submitted for ascertaining the same along with the unpriced/ technical bid.


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17.0 Integrity pact 17.1 BPCL-KR has implemented an Integrity pact program (IPP) for procurement of

materials and accordingly the following terms and conditions shall be applicable for this tender

17.2 A proforma of Integrity pact is (IP) enclosed as section 8 of this tender document.

Bidder shall return the Integrity pact, duly signed by the same signatory who is authorised to sign the bid documents, along with unpriced bid. All pages of the integrity pact shall be duly signed. Bidders failure to return the IP duly signed along with the bid documents shall result in the bid not being considered for further evaluation

17.3 If the bidder has been disqualified from the tender process prior to the award of

the contract in accordance with provisions of Integrity pact, BPCL-KR shall be entitled to demand and recover from bidder, liquidated damages amount by forfieting the EMD/Bid security as per provisions of Integrity pact

17.4 If the contract has been terminated according to the provisions of Integrity pact, or

if BPCL-KR is entitled to terminate the contract according to the provisions of Integrity pact, BPCL-KR shall be entitled to demand and recover from bidder, liquidated damages amount by forfieting the security deposit/ Performance bank guarantee as per provisions of Integrity pact.

17.5 Bidders may raise disputes/ complaints, if any, with nominated Independent

external monitor. The name /address / contact numbers of Independent External Monitors appointed to oversee the implementation of Integrity pact is as given below Name : Mr T S Krishnamurthy Address : Flat no. 9, Gokul Tower Next to Mookambika complex No. 7 C P Ramaswamy Road Alwarpet, Chennai – 600 018 Phone : 91 44 24993077/ 24993079 Mobile : 9444999555


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18.0 Correction of errors in price bids Price bids will be checked by owner for any arithmetic errors in computation and

summation. Owner will correct errors as follows:

a) When there is a difference between the rate in figures and in words for an item, the rate, which corresponds to the amount worked out by the bidder for the item based on the notional quantity specified, shall be taken as correct.

b) When the rate quoted by bidder in figures and words tally, but the amount is incorrect, the rate quoted by the bidder shall be taken as correct and quoted amount worked out accordingly.

c) When it is not possible to ascertain the correct rate as detailed above, the rate quoted for the item in words shall be adopted as the quoted rate

19.0 Bidders may please note that the quantity of regenerated catalyst given in price

schedule (Section 5) is only approximate. Payment will be made for the actual quantity regenerated by the bidder.

_________________________


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SECTION NO: 2

PREQUALIFICATION CRITERIA

1) The bidder shall have executed at least one ex-situ regeneration of hydro-desulphurisation catalyst, in the immediate preceding three financial years or in the immediate preceding 36 months, of value not less than US $ 2,40,000 (In INR Rs 120,00,000/-). Reference details including copy of purchase order shall be enclosed with technical bid

2) The hydro-desulphurisation catalyst regenerated by the bidders shall have worked

satisfactorily at least for 18 months, in similar operating units in India or abroad. Attested copies of performance certificates shall be attached with technical bid

3) Bidder shall obtain endorsement from the catalyst supplier, M/s Axens, France, on

the bidder’s capability to carry out ex-situ regeneration of M/s Axens catalyst. Necessary documents/ certificates in this regard shall be submitted along with the technical bid.

4) Bidder shall agree for submission of a bank guarantee in the prescribed format of

BPCL-KR, for an amount of Rs 10 crores, prior to taking possession of unregenerated catalyst, which shall be valid for 6 months from the date of taking possession of unregenerated catalyst, with an additional claim period of 6 months

5) The annual turnover of the bidder shall not be less than US $ 5,00,000 (In INR Rs

250,000,00/- ) in any one of the immediately preceding three financial years. Bidders shall submit proof for satisfying the above prequalification criteria, along with unpriced/ Technical bid. The documents expected as proof are as follows

1) Purchase order copies of ex-situ regeneration hydro desulphurization catalyst executed, Attested copies of performance certificates from customer indicating that the regenerated catalyst has been performing satisfactorily at least for a period of 18 months, etc. Bidders shall also provide address of Refinery, e-mail, FAX number and telephone number of the contact person. BPCL-KR will be seeking the performance details of the catalyst regenerated by the bidder from end users of similar operating plants. In the event of non-receipt of satisfactory performance, the offer of bidder will be deemed to be technically disqualified and it shall not be considered further.


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2) Bidder shall submit a certificate from M/s Axens, who is the manufacturer of the catalyst, endorsing the capability of the vendor to carry out ex-situ regeneration of Axens catalyst

3) Profit and loss account statement and balance sheet duly authorized by competent

authority or any other relevant documents

4) Certification from the customers for having completed the purchase orders with date of completion.

_____________________


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SECTION 3

TERMS AND CONDITIONS (TECHNICAL) FOR THE EX-SITU REGENERATION OF DHDS CATALYST OF BPCL-KR

1. The vendor shall have carried out, at least one ex-situ regeneration of hydro-

desulfurisation catalyst during the last three years. Reference details including

the copy of the purchase order shall be attached.

2. The vendor shall provide references regarding satisfactory performance of the

catalyst regenerated ex-situ by the vendor in similar operating units in India or

abroad for a minimum period of 18 months. Attested copies of the performance

certificate to be attached along with the un-priced bid.

3. BPCL-Kochi Refinery will be seeking the performance details of the catalyst

regenerated by the vendor, from end users with similar plants. In the event of

non-receipt of satisfactory performance, the offer for ex-situ catalyst

regeneration will deemed to be technically disqualified and this offer will

not be considered for evaluation.

4. The vendor shall obtain endorsement from the catalyst supplier, M/s Axens on

vendor’s capability to carryout ex-situ regeneration of Axens catalyst. The

necessary documents/certificates in this regard shall be submitted along with the

technical bid, failing which, the offer will not be considered for evaluation.


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5. The properties of the catalyst (in the fresh form) is given below

HR448

Shape : Trilobe extrudate

Diameter : 1.2 mm

Surface area : 160m2/gm

Total pore volume : 38cm3/gm

Bulk crushing strength : 1.0 Mpa

Quantity : 210 MT (fresh catalyst

loaded)

NiO : 2.5% wt

MoO3 :16 % wt

6. The vendor shall provide the following guarantees for the regenerated catalyst

a) Carbon content : ≤0.5% wt

b) Sulfur content : lab composite sample

+ ≤0.3% wt

c) Surface area : ≥ 95% of the Lab composite

sample

d) Crushing strength : ≥ 90% of the Lab composite

sample

e) Fines in product : ≤1.0%wt (fines defined as

Any material passing

through a mesh

with 1mm openings)

f) Loss of catalyst during regeneration : ≤ 3.0%wt


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7. The vendor shall indicate the Liabilities for catalyst life. As a minimum

guideline, the regeneration vendor shall follow the penalties as given below.

a) Carbon content

≤ 0.5% : No price reduction

> 0.5% & ≤ 0.8% : 5% reduction in contract value

> 0.8% & ≤ 1% : 20% reduction in contract value

> 1% : product reprocessed

b) Sulfur content above Laboratory results


> 0.3% & ≤ 0.8% :5% reduction in contract value

> 0.8% & ≤ 1% :20% reduction in contract value

> 1% :product reprocessed

c) Surface area in comparison to Laboratory results

≥ 95% : No price reduction

< 95% & ≥ 90% :5% reduction in contract value


< 80% & ≥ 70% : 20% reduction in contract value

< 70% : vendor to reimburse 70% of the fresh

catalyst value

d) Crush strength in comparison to Laboratory analysis

≥ 90% :No price reduction




< 70% :Vendor to reimburse 70% of the fresh

catalyst value


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e) Fines in product




> 1.5% : 25% reduction in contract value

f) Loss during regeneration

≤ 3% wt : No penalty

> 3% : Vendor to reimburse 70% of the fresh

catalyst value

g) The maximum liability of the vendor for the above six deviations put

together will be limited to a maximum of 60% of contract value. However

the clauses on reimbursement of fresh catalyst value will remain as

explained under c, d and f.

8. The vendor shall make all arrangements to transport the un-regenerated

catalyst from KR to their regeneration plant and all the legal formalities as

per Hazardous Wastes (Management, Handling and Transboundary

Movement) Rules 2008 of Ministry of Environment and Forests for the to

and fro transportation shall be arranged for and complied by the vendor.

9. Total cost including transportation shall be specified in the offer. The

vendor shall be responsible for any damage to the catalyst during

transportation, Regeneration. Bank guarantee of value Rs 10 crores shall

be provided by the vendor.

10. The regenerated catalyst shall be returned in sealed bags and shall be

protected from moisture.

11. Vendor shall return the catalyst after regeneration within a period of 6

months from the date of placing the order.


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12. Total catalyst along with the inert balls shall be taken by the vendor.

Weight of the 35.35MT of inert balls originally loaded will be deducted

from the weight of the catalyst dispatched from the refinery to find out the

catalyst weight.

13. The vendor shall provide details as given below

a) Test certificate of the regenerated catalyst for sulfur, carbon, surface

area, crushing strength and catalyst fines,

b) Any other details as required for evaluation of catalysts.

14. Other conditions a. The catalyst unloaded from the reactor will be stored by BPCL-KR, in

metallic containers under nitrogen atmosphere.

b. Composite sample will be collected during the unloading of catalyst from

both the reactors. Vendors can collect the samples from the composite

sample collected by BPCL-KR, for submitting the bid. Alternatively,

bidders can collect samples themselves, at the time of unloading during

the shutdown from April 21-30, 2009

c. The composite sample of the catalyst will be regenerated at BPCL

laboratory. This will form the basis for the evaluation of catalyst

guarantees specified under para 6 b, c, and d.

d. Catalyst regenerated at the vendor’s facility will be analyzed for the

guaranteed parameters, at BPCL laboratory. The penalties shall be

applicable as per the analysis conducted at BPCL laboratory.

e. Composite sample of the unregenerated catalyst will be analyzed in the

BPCL’s facilities to estimate the carbon and sulfur content and actual

catalyst quantity would be estimated based on this analysis.

f. The vendor shall permit BPCL staff to visit the regeneration facility

during the regeneration process.


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SECTION 4

AGREED TERMS AND CONDITIONS

Sl. No.

Description Vendor’s confirmation/

acceptance (Please write “Accepted” against

each of the rows below to indicate your confirmation of the

conditions mentioned. Please also give the additional informations wherever

requested) 1 The bidder shall have executed at least one ex-situ

regeneration of hydro-desulphurisation catalyst, in the immediate preceding three financial years or in the immediate preceding 36 months, of value not less than US $ 2,40,000 (In INR Rs 120,00,000/-). Please indicate the proof submitted to establish above condition

2 The hydro-desulphurisation catalyst regenerated by the bidders shall have worked satisfactorily at least for 18 months, in similar operating units in India or abroad. Please indicate the proof submitted to establish above condition

3 Bidder shall obtain endorsement from the catalyst supplier, M/s Axens, France, on the bidder’s capability to carry out ex-situ regeneration of M/s Axens catalyst. Please indicate the proof submitted to establish above condition

4 Bidder shall agree for submission of a bank guarantee in the prescribed format of BPCL-KR, for an amount of Rs 10 crores, prior to taking possession of unregenerated catalyst, which shall be valid for 6 months from the date of taking possession of unregenerated catalyst, with an additional claim period of 6 months

5 The annual turnover of the bidder shall not be less than US $ 5,00,000 (In INR Rs 250,000,00/- ) in any one of the immediately preceding three financial years. Please indicate the proof submitted to establish above condition


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6 Bidders shall submit tender fee of Rs 5000/- (USD 125 for

foreign bidders) in the form of a demand draft, drawn in favour of Bharat Petroleum Corporation Ltd, Kochi refinery, payable at Ernakulam, Kerala, India. Tender fee shall be non refundable.

7 Notwithstanding the conditions mentioned in the tender, owner reserves the right to accept or reject any or all the bids without assigning any reasons whatsoever at any time prior to the award of purchase order. The affected bidder shall not make any claim/ liability for owner’s action.

8 Force majuerie conditions as per clause 1.11 of Section 1

9 Right of BPCL-KR to terminate the contract as per clause 1.12 of Section 1

10 Arbitration as per clause 1.13 of Section 1

11 Delivery terms as per clause 2.0 of section 1

12 Payment terms as per clause 3.0 of Section 1

13 Submission of security deposit as per clause 4.0 of Section 1

14 Payment of Liquidated damages as per clause 5.0 of Section 1

15 Submission of bank guarantee for Rs 10 crore before taking possession of unregenerated catalyst as per clause 6.0 of section 1

16 Scope of the job as per clause 7.0 of section 1

17 Validity of the offer as per clause 9.0 of Section 1

18 Bidders shall take care of all environmental issues involved in the transportation and processing of unregenerated catalyst and shall suitably coordinate with statutory bodies, governmental departments, to effect smooth transfer of material

19 Packing of regenerated catalyst as per clause 11.0 of Section 1

20 Price quote as per clause 13.0 of Section 1


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21 Certificate of regenerated catalyst as per clause 14.0 of

Section 1

22 Submission of EMD as per clause 16.0 of Section 1

23 Submission of Integrity pact as per clause 17.0 of Section 1

24 Guarantees of regenerated catalyst as per clause 6.0 of Section 3

25 Penalties on regenerated catalyst properties as per clause 7.0 of Section 3

26 Bidder shall allow BPCL representative/ third party inspector to visit the regeneration facility during the regeneration process.

27 Bidders may please note that the quantity of regenerated catalyst given in price schedule (Section 5) is only approximate. Payment will be made for the actual quantity regenerated by the bidder.

Bidder to indicate acceptance of the above mentioned points. In case of any deviations, bidder to clearly indicate the same. Company Name Seal Full address with contact person’s phone no, fax, mobile number and E-mail ID


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SECTION 5

PRICE SCHEDULE INDIGENOUS VENDORS Quantity Rate Total

Price Price per MT of regenerated catalyst delivered on door delivery basis at Kochi Refinery ware house, Ambalamugal

210 MT

Transportation of unregenerated catalyst from kochi refinery to vendor’s works, with all taxes, freight, incidental expenses etc in vendor’s scope

Any other expenses Total price

I hereby certify that the amount mentioned above is the lowest firm price for ex-situ regeneration of DHDS catalyst as per technical specifications and all other special conditions mentioned in this tender. Signature______________ Place: Name_________________ Date: Company______________


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PRICE SCHEDULE FOREIGN BIDDERS Currency of quotation

Name of Major gateway International sea port of exit

Quantity Rate Total

Price Price per MT of regenerated catalyst delivered on FOB, load port basis

210 MT

Charges for export of un-regenerated DHDS catalyst to vendor’s works with all export formalities, taxes, freight etc in vendor’s scope

Any other expenses Total price

I hereby certify that the amount mentioned above is the lowest firm price for ex-situ regeneration of DHDS catalyst as per technical specifications and all other special conditions mentioned in this tender. Signature______________ Place: Name_________________ Date: Company______________


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SECTION 6

BANK GUARANTEE FORMAT FOR EARNEST MONEY DEPOSIT In consideration of Bharat Petroleum Corporation Ltd., Kochi Refinery, Ambalamugal, Ernakulam – 682 302, Kerala (State), India (hereinafter called “the Corporation”) having agreed to exempt M/s ……………………………………………. Hereinafter called “the said contractor(s)” from payment of Earnest Money against Tender No…2093012 dated 20.04.2009 issued by the Corporation on production of a Bank Guarantee for Rs.1,00,000/- or USD2,250 (Rupees one lakh Or USD two thousand two hundred fifty only)

We……………………………………………………………………………… Bank do hereby undertake to indemnify and keep indemnified the Corporation to the extent of Rs.1,00,000/- Or USD 2,250 against any loss or damage caused to or suffered by the Corporation by reason of any breach by the said Contractor(s) of any of the terms and conditions contained in the Tender notice/ Documents. We…………………………………………………………………………… Bank further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the finalisation of the said tender and that it shall continue to be enforceable till the tender is finally decided and order placed on the successful tenderer. We, ……………………………………………………………………….. Bank Ltd further agree that the Corporation shall be the sole judge of and as to whether the said Contractor has committed any breach or breaches of any of the terms and conditions of the tender/or the contract and the extent of loss, damage, costs, charges and expenses caused to or suffered by or that may be caused to or suffered by the corporation on account thereof to the extent of the earnest money required to be deposited by the Contractor in respect of the said tender or the contract and the decision of the Corporation that the said contractor has committed such breach or breaches and as to the amount or amounts of loss, damage, costs, charges and expenses caused to or suffered by or that may be caused to or suffered by the Corporation from time to time shall be final and binding on us.


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Notwithstanding anything contained in forgoing, our liability under this guarantee is restricted to Rs.1,00,000/- or USD 2,250. The Guarantee shall remain inforce till 30th October, 2009. Unless a claim under this Guarantee is made within three months from the date herein before mentioned the corporation shall have no rights under these presents. We………………………………………………………….. Bank lastly undertake not to revoke this Guarantee during the currency except with the previous consent of the Corporation in writing. Dated the ………………………………….. Day of …………………………………..200 For Bank Note: Select Rs 1,000,00 or USD 2,250/- as applicable


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SECTION 7

LOADING FACTORS Following shall be our commercial loading factors if the bidders do not accept the tender commercial conditions

Liquidated damages for delay in delivery Vendor’s terms Price Loading % 0.5% to 5 % of Total order value agreed Nil LD clause not agreed 2.5%

Security deposit in BPCL-KR’s format Vendors Terms Price Loading % 10% Agreed No loading Less than 10% Upto the % By which SD is short Payment terms Vendors terms Price loading % 100% after receipt and acceptance of regenerated Nil catalyst Any other terms 0.3%


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SECTION 8

FORMAT OF INTEGRITY PACT (To be executed on plain paper and applicable for all tenders of value above Rs. 1 crore)

INTEGRITY PACT

Between

Bharat Petroleum Corporation Limited (BPCL) hereinafter referred to as "The Principal", And

………………………..hereinafter referred to as "The Bidder/Contractor/Supplier"

Preamble

The Principal intends to award, under laid down organization procedures, contract/s for Ex-situ regeneration of DHDS Catalyst. The Principal values full compliance with all relevant laws and regulations, and the principles of economic use of resources, and of fairness and transparency in its relations with its Bidder/s, Contractor/s and Supplier/s.

In order to achieve these goals, the Principal cooperates with the renowned international Non-Governmental Organisation "Transparency International" (TI). Following TI's national and international experience, the Principal will appoint an Independent External Monitor who will monitor the tender process and the execution of the contract for compliance with the principles mentioned above.

Section 1 -Commitments of the Principal

(1) The Principal commits itself to take all measures necessary to prevent corruption and to observe the following principles:

a) No employee of the Principal, personally or through family members, will in connection with the tender, or the execution of the contract, demand, take a promise for or accept, for himself/herself or third person, any material or immaterial benefit which he/she is not legally entitled to.


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b) The Principal will, during the tender process, treat all Bidders with equity and

reason. The Principal will, in particular, before and during the tender process, provide to all Bidders the same information and will not provide to any Bidder confidential / additional information through which the Bidder could obtain an advantage in relation to the tender process or the contract execution.

c) The Principal will exclude from the process all known prejudiced persons.

(2) If the Principal obtains information on the conduct of any of its employees which is a criminal offence under the relevant Anti-Corruption Laws of India, or if there be a substantive suspicion in this regard, the Principal will inform its Vigilance Office and in addition can initiate disciplinary actions.

Section 2 -Commitments of the Bidder / Contractor/Supplier

(1) The Bidder / Contractor/Supplier commits itself to take all measures necessary to prevent corruption. He commits himself to observe the following principles during his participation in the tender process and during the contract execution.

a) The Bidder / Contractor/Supplier will not, directly or through any other person or firm, offer, promise or give to any of the Principal's employees involved in the tender process or the execution of the contract or to any third person, any material or immaterial benefit which he/she is not legally entitled to, in order to obtain in exchange, any advantage of any kind whatsoever during the tender process or during the execution of the contract.

b) The Bidder / Contractor/Supplier will not enter with other Bidders into any undisclosed agreement or understanding, whether formal or informal. This applies in particular to prices, specifications, certifications, subsidiary contracts, submission or non-submission of bids or any other actions to restrict competitiveness or to introduce cartelisation in the bidding process.

c) The Bidder / Contractor/Supplier will not commit any offence under the relevant Anti-Corruption Laws of India; further the Bidder / Contractor/Supplier will not use improperly, for purposes of competition or personal gain, or pass on to others, any information or document provided by the Principal as part of the business relationship, regarding plans, technical proposals and business details, including information contained or transmitted electronically.

d) The Bidder / Contractor/Supplier will, when presenting his bid, disclose any and all payments he has made, is committed to, or intends to make to agents, brokers or any other intermediaries in connection with the award of the


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contract.

(2) The Bidder / Contractor/Supplier will not instigate third persons to commit offences outlined above or be an accessory to such offences.

Section 3 -Disqualification from tender process and exclusion from future contracts

If the Bidder, before contract award, has committed a transgression through a violation of Section 2 or in any other form such as to put his reliability or credibility as Bidder into question, the Principal is entitled to disqualify the Bidder from the tender process or to terminate the contract, if already signed, for such reason.

(1) If the Bidder/Contractor/Supplier has committed a transgression through a violation of Section 2 such as to put his reliability or credibility into question, the Principal is also entitled to exclude the Bidder / Contractor/Supplier from future contract award processes. The imposition and duration of the exclusion will be determined by the severity of the transgression. The severity will be determined by the circumstances of the case, in particular the number of transgressions, the position of the transgressors within the company hierarchy of the Bidder and the amount of the damage. The exclusion will be imposed for a minimum of 6 months and maximum of 3 years.

(2) A transgression is considered to have occurred if the Principal after due consideration of the available evidences, concludes that no reasonable doubt is possible.

(3) The Bidder accepts and undertakes to respect and uphold the Principal's absolute right to resort to and impose such exclusion and further accepts and undertakes not to challenge or question such exclusion on any ground, including the lack of any hearing before the decision to resort to such exclusion is taken. This undertaking is given freely and after obtaining independent legal advice.

(4) If the Bidder / Contractor/Supplier can prove that he has restored / recouped the damage caused by him and has installed a suitable corruption prevention system, the Principal may revoke the exclusion prematurely.

Section 4 -Compensation for Damages

(1) If the Principal has disqualified the Bidder from the tender process prior to the award according to Section 3, the Principal is entitled to demand and recover from the Bidder liquidated damages equivalent to Earnest Money Deposit/Bid Security.

(2) If the Principal has terminated the contract according to Section 3, or if the Principal is entitled to terminate the contract according to Section 3, the Principal shall be entitled to demand and recover from the Contractor/Supplier liquidated damages equivalent to Security Deposit / Performance Bank Guarantee.

(3) The Bidder agrees and undertakes to pay the said amounts without protest or demur subject only to condition that if the Bidder / Contractor/Supplier can prove and


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establish that the exclusion of the Bidder from the tender process or the termination of the contract after the contract award has caused no damage or less damage than the amount of the liquidated damages, the Bidder / Contractor/Supplier shall compensate the Principal only to the extent of the damage in the amount proved.

Section 5 -Previous Transgression

(1) The Bidder declares that no previous transgression occurred in the last 3 years with any other Company in any country conforming to the TI approach or with any other Public Sector Enterprise in India that could justify his exclusion from the tender process.

(2) If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender process or the contract, if already awarded, can be terminated for such reason.

Section 6 -Equal treatment of all Bidders / Contractors /Suppliers/ Subcontractors

(1) The Bidder/Contractor/Supplier undertakes to demand from all subcontractors a commitment in conformity with this Integrity Pact, and to submit it to the Principal before contract signing.

(2) The Principal will enter into agreements with identical conditions as this one with all Bidders, Contractors/Suppliers and Subcontractors.

(3) The Principal will disqualify from the tender process all Bidders who do not sign this Pact or violate its provisions.

Section 7 – Punitive Action against violating Bidders / Contractors / Suppliers/Subcontractors

If the Principal obtains knowledge of conduct of a Bidder, Contractor, Supplier or Subcontractor, or of an employee or a representative or an associate of a Bidder, Contractor, Supplier or Subcontractor which constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal will inform the Vigilance Office.

Section 8 -Independent External Monitors

(1) The Principal has appointed competent and credible Independent External Monitors for this Pact. The task of the Monitor is to review independently and objectively, whether and to what extent the parties comply with the obligations under this agreement.

(2) The Monitor is not subject to instructions by the representatives of the parties


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and performs his functions neutrally and independently. He reports to the Chairperson of the Board of the Principal.

(3) The Bidder/Contractor/Supplier accepts that the Monitor has the right to access without restriction to all Project documentation of the Principal including that provided by the Bidder/Contractor/Supplier. The Bidder/Contractor/Supplier will also grant the Monitor, upon his request and demonstration of a valid interest, unrestricted and unconditional access to this project documentation. The same is applicable to Subcontractors. The Monitor is under contractual obligation to treat the information and documents of the Bidder/Contractor/Supplier/ Subcontractor with confidentially.

(4) The Principal will provide to the Monitor sufficient information about all meetings among the parties related to the Project provided such meetings could have an impact on the contractual relations between the Principal and the Bidder/Contractor/Supplier. The parties offer to the Monitor the option to participate in such meetings.

(5) As soon as the Monitor notices, or believes to notice, a violation of this agreement, he will so inform the Management of the Principal and request the Management to discontinue or heal the violation, or to take other relevant action. The Monitor can in this regard submit non-binding recommendation. Beyond this, the Monitor has no right to demand from the parties that they act in a specific manner, refrain from action or tolerate action. However, the Independent External Monitor shall give an opportunity to the Bidder/Contractor/Supplier to present its case before making its recommendations to the Principal.

(6) The Monitor will submit a written report to the Chairperson of the Board of the Principal within 8 to 10 weeks from the date of reference or intimation to him by the 'Principal' and, should the occasion arise, submit proposals for correcting problematic situations.

(7) If the Monitor has reported to the Chairperson of the Board a substantiated suspicion of an offence under relevant Anti-Corruption Laws of India, and the Chairperson has not, within reasonable time, taken visible action to proceed against such offence or reported it to the Vigilance Office, the Monitor may also transmit this information directly to the Central Vigilance Commissioner, Government of India.

(8) The word 'Monitor' would include both singular and plural.

Section 9 -Pact Duration

This Pact begins when both parties have legally signed it. It expires for the Contractor/Supplier 12 months after the last payment under the respective contract, and for all other Bidders 6 months after the contract has been awarded.

If any claim is made / lodged during this time, the same shall be binding and continue to be valid despite the lapse of this pact as specified above, unless it is discharged /


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determined by Chairperson of the Principal.

Section 10 -Other provisions

(1) This agreement is subject to Indian Law. Place of performance and jurisdiction is the Registered Office of the Principal, i.e. Mumbai. The Arbitration clause provided in the main tender document / contract shall not be applicable for any issue / dispute arising under Integrity Pact.

(2) Changes and supplements as well as termination notices need to be made in writing. Side agreements have not been made.

(3) If the Bidder/Contractor/Supplier is a partnership or a consortium, this agreement must be signed by all partners or consortium members.

(4) Should one or several provisions of this agreement turn out to be invalid, the remainder of this agreement remains valid. In this case, the parties will strive to come to an agreement to their original intentions.

……………………… …………………………… For the Principal For the Bidder/Contractor/ Supplier Place ……………… Witness 1 : ………………

(Signature/Name/Address)

Date ………………. Witness 2 : ……………… (Signature/Name/Address)

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