CEYLON PETROLEUM CORPORATION
REQUEST FOR PROPOSALS
CONSTRUCTION OF A RE-GASIFIED LIQUEFIED
NATURAL GAS (R-LNG) PIPELINE SYSTEM FROM
FLOATING STORAGE REGASIFICATION UNIT (FSRU)
LOCATED AROUND 5 KM OFF THE KERAWALAPITIYA
COASTAL BELT TO EXISTING AND FUTURE
KELANITISSA AND KERAWALAPITIYA POWER
PLANTS ON BUILT OWN OPERATE AND TRANSFER
(BOOT) BASIS
BID NO: B/12/2021
International Competitive Bidding (ICB)
Volume I – Invitation for Bids and Instruction to Bidders
February 2021
Table of Contents
1. INTRODUCTION ..................................................................................................... 1
2. INFORMATION FOR BIDDERS ............................................................................. 10
2.1. General .................................................................................................................................. 10
2.2 General Instructions............................................................................................................. 10
2.3 Brief Scope of the Project ..................................................................................................... 10
2.4 Request for Proposal Document (RFP) ................................................................................. 11
2.5 Project Milestone Schedule .................................................................................................. 12
2.6 Disclaimer ............................................................................................................................ 12
3 DESCRIPTION OF THE PROJECT ........................................................................ 13
3.1 The Facility in Brief ...............................................................................................................13
3.2 Physical facilities of the Project ............................................................................................ 14
3.3 Technical Information ........................................................................................................... 15
3.4 Pipeline Route ...................................................................................................................... 16
3.5 Environmental Consideration .............................................................................................. 16
3.6 Environmental Clearance Process ....................................................................................... 16
3.7 Permitting Procedures and Requirements ........................................................................... 19
4 INSTRUCTIONS FOR BIDDING ........................................................................... 19
4.1 Issuing of Bid Documents .................................................................................................... 19
4.2 Pre-Bid Meeting and route visit ........................................................................................... 20
4.3 Clarifications of bidding documents .................................................................................... 21
4.4 Amendments to RFP ............................................................................................................ 21
4.5 Amendments to Draft Project Agreements .......................................................................... 22
4.6 Disqualification Criteria ....................................................................................................... 22
4.7 Consortiums ......................................................................................................................... 24
4.8 Proposal Responsiveness ..................................................................................................... 29
4.9 Language of the Proposal ..................................................................................................... 29
4.10 Proposal Structure ................................................................................................................ 29
4.11 Proposal Preparation............................................................................................................ 30
4.12 Bidder’s Duty .........................................................................................................................31
4.13 Mandatory Proposal Requirements – Responsiveness test ................................................. 32
4.14 Cost and Risk of Proposals ................................................................................................... 32
4.15 Proposal Validity .................................................................................................................. 32
4.16 Proposal Security .................................................................................................................. 33
4.17 Project Bonds ....................................................................................................................... 34
4.18 Proposal Authorization ........................................................................................................ 35
4.19 Proposal Format, Marking, Sealing and Submission ........................................................... 35
4.20 Modification and Withdrawal of Proposal ........................................................................... 38
4.21 Bid Closing ........................................................................................................................... 39
4.22 Unsolicited Supplementary materials .................................................................................. 39
4.23 Proposal Opening - Technical Proposals ............................................................................. 39
4.24 Proposal Opening - Financial Proposals .............................................................................. 40
4.25 Confidentiality ...................................................................................................................... 40
5 PROPOSAL REQUIREMENTS .............................................................................. 41
5.1 Complete Proposal ............................................................................................................... 41
5.2 Technical Proposal ............................................................................................................... 41
5.2.1 Functional Requirement .............................................................................................. 41
5.2.2 Organizational, Staffing and QA Plan .......................................................................... 41
5.2.3 Health, Safety, Environment and Community ............................................................ 42
5.2.4 Operation and maintenance plan ................................................................................ 42
5.2.5 Affirmations relating to the Financial Proposal .......................................................... 42
5.2.6 Project Execution Schedule ......................................................................................... 42
5.2.7 Minimum Guaranteed Offtake (MGO) ........................................................................ 43
5.3 Financial Proposal ................................................................................................................ 43
5.3.1 Tariff ............................................................................................................................ 44
5.3.2 Payment mechanism .................................................................................................... 44
5.3.3 Project Cost .................................................................................................................. 44
5.3.4 Financing Plan ............................................................................................................. 44
5.3.5 Payment for Supporting Cost Data .............................................................................. 45
5.3.6 Deviations from the Project Agreements ..................................................................... 45
6 PROJECT AGREEMENTS ..................................................................................... 45
7 QUALIFICATION REQUIREMENT FOR BIDDERS ............................................... 46
7.1 Composition of Bidder ......................................................................................................... 46
7.2 Technical Capability ............................................................................................................. 47
7.3 Financial Capability.............................................................................................................. 48
8 EVALUATION PROCEDURE ................................................................................ 49
8.1 Outline of Evaluation Procedure .......................................................................................... 49
8.2 Clarification of Proposals ..................................................................................................... 49
8.3 Right to Reject Proposals ..................................................................................................... 49
8.4 Deviations, Reservations, and Omissions ............................................................................ 50
8.5 Non-material Non-conformities .......................................................................................... 50
8.6 Correction of Arithmetical Errors ........................................................................................ 50
8.7 First Stage Evaluation: Responsiveness ............................................................................... 50
8.8 Second Stage Evaluation: Technical Proposals ..................................................................... 51
8.8.1 Compliance with Minimum Functional Specification .................................................. 51
8.8.2 Correction of Errors – Technical Proposal .................................................................. 52
8.8.3 Technical Non-compliance .......................................................................................... 52
8.9 Third Stage Evaluation: Financial Proposal ........................................................................ 53
8.9.1 Responsiveness of Financial Proposal ......................................................................... 53
8.9.2 Correction of Errors – Financial Proposal .................................................................. 53
8.9.3 Assessment and Ranking ............................................................................................. 54
8.10 Short Listing and Award ...................................................................................................... 54
8.11 Cost of Finalising Project Agreements ................................................................................. 56
9 SCOPE OF WORK / TERMS OF REFERENCE (PIPELINE SYSTEM, PLEM AND
ORF) .................................................................................................................... 56
10 TRANSFER OF PIPELINE .................................................................................... 56
Annexure .................................................................................................................. 57
L1 – Functional Specification of Pipeline .................................................................................... 57
1. Codes, Standards, Regulations and Project Documents ...................................................... 57
2. Pipeline Requirements ......................................................................................................... 57
3. Pipeline Properties ............................................................................................................... 58
4. Pipeline Route ...................................................................................................................... 59
5. Material Properties............................................................................................................... 59
6. Chemical Composition ......................................................................................................... 60
7. Pipeline Fabrication and Installation ................................................................................... 60
8. Pipeline Design Profile ......................................................................................................... 61
9. Onshore Receiving Facility (ORF) ....................................................................................... 63
10. General Requirements ......................................................................................................... 63
11. Documentation ..................................................................................................................... 65
12. Purchase Order Documentation .......................................................................................... 65
13. Material Specification .......................................................................................................... 66
14. Field Transmitters ................................................................................................................ 66
15. Actuated Ball Valves ............................................................................................................. 66
16. Spares and Consumables ..................................................................................................... 66
17. Special Tools ......................................................................................................................... 66
18. Pig Receiver .......................................................................................................................... 66
19. Pipeline Filters ..................................................................................................................... 67
20. Fiscal Metering ..................................................................................................................... 67
21. Metering Skid Overview ....................................................................................................... 68
22. Metering Skid Operation ...................................................................................................... 68
23. Temperature Instrumentation ............................................................................................. 69
24. Pressure Instrumentation .................................................................................................... 69
25. Gas Chromatograph ............................................................................................................. 69
26. Calibration and Carrier Gas .................................................................................................. 71
27. Analyser Shelter ................................................................................................................... 72
28. Sample Conditioning and Sampling Systems ...................................................................... 72
29. Overall Measurement Uncertainty ....................................................................................... 72
30. Metering Runs Layout .......................................................................................................... 72
31. Ultrasonic Flow Meters ........................................................................................................ 72
32. Flow Conditioners ................................................................................................................ 73
33. Calibration ............................................................................................................................ 73
34. Factory Acceptance Test (FAT) ............................................................................................ 73
35. Systems Integration Testing (SIT) ....................................................................................... 73
36. Site Acceptance Tests (SAT) ................................................................................................. 74
37. Commissioning and Start-up ............................................................................................... 75
38. Flow Metering Computers Panel .......................................................................................... 75
39. Piping ................................................................................................................................... 77
40. Utilities ................................................................................................................................. 78
L2 - Sri Lanka LNG Project- Preliminary EIA Report ................................................................. 79
DEFINITIONS
For purposes of this RFP Document, the following capitalized terms shall have the following meanings:
1. “AFC” means Approved for Construction;
2. “API” means American Petroleum Institute;
3. “Applicant” means any single entity or consortium of entities or joint venture submitting a
Qualification Statement with the intent to be qualified as a Bidder and potentially as the Pipeline
Company;
4. “ASTM” means American Society for Testing and Materials;
5. “Bid Closing” means the time and date by which Proposals must be received by CANC;
6. “Bidder” means each Applicant that is determined to satisfy the qualification criteria in this RFP
Document;
7. “Bidding Period” means the period for preparing Proposals beginning with the issue of the RFP
by the CEB and ending on Bid Closing;
8. “BOD” means Basis of Design;
9. “BOI” means the Board of Investment of Sri Lanka;
10. “BOOT” means Build Own Operate Transfer;
11. “CANC” Standing Cabinet Appointed Negotiating Committee;
12. “CC&CRMD” means the Department of Costal Conservation & Costal Resources Management, Sri
Lanka;
13. “CCR” means Capital Cost Recovery Rate;
14. “CEA” means the Central Environmental Authority of Sri Lanka;
15. “CPC’s Personnel” means the personnel to be provided by CPC or CPC's Contractor (other than
the Contractor executing the Contract). The CPC representatives of CPC are also included in the
CPC's personnel;
16. “CPC” means the Ceylon Petroleum Corporation;
17. “CEB” means the Ceylon Electricity Board;
18. “Commercial Operations” means the date falling one day after the day on which the Project is
commissioned to operate on a commercial basis;
19. “Company” / “Pipeline Company” means the company that will be formed to construct, install,
maintain, repair and operate the Regasified LNG transmission pipeline, PLEM and the ORF along
with other auxiliaries
20. “Contractor’s Personnel” means the personnel to be provided by Contractor to provide services
as per contract;
21. “Contractor” means the individual or firm or body incorporated performing the work under the
Contract;
22. “Disclaimer” means the denial of liability for by the CPC, GOSL and GOSL Agencies information
contained in this RFP and labelled “Disclaimer”;
23. “DNV” means Det Norske Veritas;
24. “DSCR” means debt service coverage ratio, defined as cash flow available for debt service divided
by principal and interest payments falling due on senior debt. Cash carried forward shall be
excluded from the calculation of DSCR in a given period;
25. “EIA Study” means the study to be undertaken by the Project Proponent for preparation of
detailed EIA report as per the Terms of Reference provided by Central Environment Authority;
26. “EIA” means Environmental Impact Assessment;
27. “EN” means Euro Norm;
28. “ESD” means Emergency Shutdown;
29. “FAT” means Factory Acceptance Test;
30. “FEED” means Front End Engineering Design;
31. “FGS” means Fire & Gas System;
32. “Financial Advisor” means the bank(s) or other financial institution(s) appointed by the Bidder
for the development of the financial aspects of the Proposal, such bank(s) and institution(s)
ordinarily offering and being experienced in the provision of financial advisory services for projects
of the type and nature of the Facility;
33. “Financing Plan” means the Bidder’s plan provided for raising equity and debt for the limited
recourse financing of the Project and for meeting its obligations to shareholders and Lenders;
34. “Financing Template” means the spreadsheet format for submission of project costs, Facility
performance data and financing assumptions;
35. “First Stage Evaluation” means the first stage of the Proposal evaluation process
(Responsiveness);
36. “FSRU” means Floating Storage Regasification Unit
37. “GA” means General Arrangement;
38. “Government Agency” means the Government or any authority, ministry, department or
inspectorate in Sri Lanka;
39. “HAZID” means Hazard Identification;
40. “HAZOP” means Hazard and Operability;
41. “HDD” means Horizontal Directional Drilling;
42. “HIPPS” means High Integrity Pressure Protection System;
43. “ISO” means International Standards Organization;
44. “ITP” Inspection and Testing Plan;
45. “Landfall point” means the place where offshore and onshore pipelines are connected;
46. “MARPOL” means The International Convention for the Prevention of Pollution from Ships;
47. “MDR” means Manufacturer’s Data Report;
48. “Mechanical Completion” shall have the meaning ascribed to it in the PS Agreement;
49. “MOPRE” means the Ministry of Power and Renewable Energy;
50. “MPQT” means Manufacturing Procedure Qualification Test;
51. “MPS” means Manufacturing Procedures Specification;
52. “MTO” means Material Take-Off;
53. “NDT” means Non-Destructive Test;
54. “NoR Date" has the meaning as ascribed to it under the PS Agreement’
55. “OPRC” means International Convention on Oil Pollution Preparedness, Response and Co-
operation;
56. “ORF” means Onshore Receiving Facility;
57. “PDMS” means Plant Design Management System;
58. “PLEM” means Pipeline End Manifold;
59. “Pre-Bid Meeting” means the meeting described in 4.2;
60. “Project Milestones Schedule” have the meaning attributed to it in Clause 2.5 of Volume I;
61. “Representatives” means the employees, agents or adviser of a Government Agency;
62. “Responsiveness Test” means the test set out in Annexure - 1 A1 to be applied in part satisfaction
of the first stage evaluation of Proposals;
63. “RFP” means the Request for Proposal document comprising Instructions to Bidders (this
volume), Proposal Letters and Forms (Volume II), Draft BOOT Contract for Pipeline System
(Volume III) and Draft Implementation Agreement (Volume IV);
64. “RLNG” Re-gasified Liquid Natural Gas;
65. “Second Stage Evaluation” means the second stage of the Proposal evaluation process
(Technical Proposals);
66. “SPBM-2” means the Single Point Buoy Mooring located at Kerawalapitiya;
67. “SRT” means Storage and Regasification Terminal;
68. “SSPC” means Steel Structure Painting Council;
69. “ST” means Surface Testing;
70. “The Contract Price” means the price payable to Contractor under the Contract for the full and
proper performance of their contractual obligations;
71. “The Contract” means agreement to be entered into between CPC and Contractor, as recorded in
the Contract signed by the parties, including all attachments and appendices thereto and all
documents incorporated by reference therein;
72. “The Work” means each and every activity required for the successful performance of the services
described in the Technical Specification/Terms of Reference;
73. “Third Stage Evaluation” means the third stage of the Proposal evaluation process (Financial
Proposals);
74. “Transfer Plan” means the plan to be prepared by the Bidder pursuant to Annexure-2 B4;
75. “UT” means Ultrasonic Testing;
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1. INTRODUCTION
1.1 Introduction to the Project
1.1.1 Sri Lankan Macroeconomic growth indicators
Sri Lankan economy grew by 2.3% in 2019 compared to 3.3% in 2018 amidst a challenging domestic
and international environment. Despite sluggish global growth, Sri Lankan economy managed to keep
growth at a decent pace. Sectorial growth recorded as services and industry sector growing by 2.3%
and 2.7% respectively in real terms year on year, the agriculture sector also grew at a rate of 0.6%and
the taxes less subsidies collected increased by 2.6% compared to 2018. Due to slower growth in industry
and services sectors, the unemployment rate increased to 4.8% in 2019 compared to 4.4 % in 2018.
Annual average inflation, as measured by Colombo Consumer Price Index (CCPI) was 4.3% in 2019.
Percentage share of GDP by major sectors 2019 (Agriculture -7% ,Industry 26.4%,Services 57.4%,Taxes less
subsidies 9.2%)
Source: Department of Census and Statistics, Sri Lanka
The country maintained the improved Human Development Index (2019 ranked at 71 out of 189
countries. Per capita GDP at market prices increased to LKR 688,719 in 2019 from LKR 662,649 in
2018. However, it decreased marginally in US dollar terms to USD 3852 from USD 4079 in 2018 amidst
a volatile foreign exchange market.
7.00%
26.40%
57.40%
9.20%
Agriculture Industry Services Taxes less Subsidies
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Sri Lanka’s national electrification ratio has grown from 99.3% in 2016 to 99.7% in October 2017, and
has already reached 100% electricity accessibility which is commendable by south Asian standards. Sri
Lanka is the only country in South Asia that has 100% electricity accessibility with 24 hours
uninterrupted electricity supply.
The table below summarizes the macroeconomic growth indicators of Sri Lanka.
Gross Domestic Product (GDP) at current market
prices ( 2019 ) LKR 15,016 billion
Gross Domestic Product (GDP) at constant 2010
prices ( 2019 ) LKR 9889.4 billion
Gross National Income (GNI) at current market
prices (2019 LKR 14,584 billion
Gross National Income (GNI) at constant 2010
prices ( 2019 ) LKR 9608.3 billion
GDP growth rate 2.3%
GNI growth rate 2.2%
Per capita GDP at constant 2010 prices 2019) LKR 453,579
Per capita GDP at current market prices (2019) LKR 688,719
Per capita GNI at constant 2010 prices 2019 ) LKR 440,687
Per capita GNI at current market prices 2019 ) LKR 668,894
Unemployment rate (% of labour force) 4.8 percent
Source: Department of Census and Statistics, Sri Lanka
1.1.2 Sri Lanka Power Sector and the demand for Natural gas
Ceylon Electricity Board (CEB) has been legally entrusted with the responsibility to develop & maintain
electricity supply in the country in an efficient, coordinated and economical manner. The sector is
regulated by the Public Utilities Commission of Sri Lanka (PUCSL). Sri Lanka is the only country in the
South Asia that has achieved 100% electricity accessibility with 24 hours of uninterrupted electricity
supply.
The number of consumers and the demand for electricity has steadily increased in the country. The
demand primarily comes from a consumer mix of domestic, industrial and commercial sectors. As per
compiled data, it has been found that the demand of industrial and commercial consumers is higher
than the domestic user consumption. These statistics favour an economy with ambitious GDP growth
projections. The maximum night Peak Demand from the National Grid in 2019 was 2,670 MW,
compared to 2018 (2,661 MW). The number of consumers too have increased at a high rate.
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To cater to this demand, Sri Lanka had total installed electricity generation capacity of National power
grid of Sri Lanka of 4,063 MW (2018).
With a diverse generating mix in the installed capacity, CEB has decided to move forward with Natural
gas as a fuel to generate power. CEB looks to replace its aged thermal plants through retirements and
plans to add new generating stations to meet the growing demand of the country.
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Natural gas provides multiple benefits to Sri Lanka, through its lower polluting properties as compared
to coal and diesel as well as its higher efficiency when used in combined cycle power plants. Overall,
the use of natural gas results in a significantly more limited environmental impact than other fossil
fuels.
When burned, natural gas releases up to 50% less CO2 than coal and 20-30% less than oil. When used
in power generation, natural gas emits as much as 50% less CO2 than coal, results in negligible
emissions of sulfur dioxide (SO2), nitrogen oxides (NOx), mercury (Hg), and particulates compared
with other fuels.
Among the installed thermal power plants in the country are 3 (three) combined cycle gas turbine
plants with total capacity of 628 MW. One of these power plants is located at Kerawalapitiya having
generation capacity of 300 MW while the other 2 (two) are at Kelanitissa, at the northern boundary of
the Colombo city, with capacity of 165 MW and 163 MW respectively. In addition to these power plants,
4 (four) other Natural Gas fired combined cycle power plants having capacity of 300 MW each are
planned in Kerawalapitiya, up to year 2033. Further, a Gas turbine plant of 105 MW capacity is being
implemented in Kelanitissa and expected to commission by year 2021.
S. No. Name of plant Capacity (MW) Remarks
1. Converted WestCoast LNG 300 -
2. Converted Kelanitissa Combined Cycle Power Plant
165 -
3. Converted Sojitz Combined Cycle Power Plant
163 -
4. New 300 MW Kerawalapitiya Combined Cycle Power Plants
300 Planned to be commissioned in 2022
Major Hydro33%
Coal21%
Thermal - CEB14%
Renewables18%
Thermal - IPP14%
Power generation mix (2018)
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S. No. Name of plant Capacity (MW) Remarks
5. New 300 MW Kerawalapitiya Combined Cycle Power Plants
300 Planned to be commissioned in 2022
6. New 105 MW Kelanitissa Gas Turbine Power Plant
105 Planned to be commissioned in 2021
7. New 300 MW Kerawalapitiya Combined Cycle Power Plant
300 Planned to be commissioned in 2025
8. New 300 MW Kerawalapitiya Combined Cycle Power Plant
300 Planned to be commissioned in 2033
Total 1933 MW
Based on Long Term Electricity Generation Plan 2020-2039, the Generation Planning Branch of CEB
has estimated the LNG requirements for the above-mentioned power plants. The estimations have been
computed for average, wet and dry hydro conditions.
Year
LNG requirement
(Wet condition) (Average condition) (Dry condition)
(MMTPA) (MMTPA) (MMTPA)
2023 0.55 0.76 0.97
2024 0.55 0.75 0.94
2025 0.67 0.92 1.15
2026 0.46 0.69 0.93
2027 0.53 0.78 1.03
2028 0.62 0.88 1.11
2029 0.70 0.97 1.22
2030 0.63 0.90 1.13
2031 0.74 1.00 1.27
2032 0.79 1.00 1.22
2033 0.73 0.96 1.17
2034 0.65 0.89 1.10
1.1.3 Project Organization - Ceylon Petroleum Corporation
Ceylon Petroleum Corporation (“CPC”), fully owned by the Government of Sri Lanka, is a body
corporate established by Act No.28 of 1961, having its Head Office at, No. 609, Dr. Danister De Silva
Mawatha, Colombo 09. CPC has been entrusted with the following as per the Act No.28 of 1961 and the
Ministry of Energy oversees its functions;
a) To carry on business as an importer, exporter, seller, supplier or distributor of petroleum
b) To carry on the business of exploring for and exploiting, producing and refining of
petroleum and
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c) To carry on any such other business as may be incidental or conducive to the attainment of
the objects referred to in paragraphs (a) and (b).
CPC, is the largest petroleum sector company in Sri Lanka with a market share of approximately 80%
of the country’s petroleum sales.
CPC is conducting this project in collaboration with Ceylon Electricity Board (“CEB”),a fully owned
body corporate by the Government of Sri Lanka, established by Ceylon Electricity Board Act, 1969 (Act
No.17 of 1969), having its Head Office at, No. 50, Sir Chittampalam A. Gardiner Mawatha, in Colombo
2. CEB has been established for the development and co-ordination of the generation, supply and
distribution of electrical energy requirements of the country. The Ministry of Power oversees its
functions. The electricity industry is regulated by Public Utility Commission of Sri Lanka (PUCSL)
which grants licenses of generation, transmission and distribution of electricity in Sri Lanka. While
CEB has 6 (six) numbers of licenses for its generation, transmission and distribution, CEB is the sole
transmission licensee in Sri Lanka. PUCSL also regulates the final electricity tariffs charged to
consumers by CEB.
CEB, is the largest electricity utility in Sri Lanka. It controls all major functions of electricity generation,
transmission, distribution and retailing in Sri Lanka. CEB owns 2,105 MW of thermal power plants
(coal and oil fired) and 1,399 MW of hydro power plants and renewable energy generation capacity of
780 MW as of 2019. The total installed capacity of CEB network is 4,270 MW.
In 2019, electrical energy produced by these plants amounted to 15,880 GWh, meeting a peak night
demand of 2,670 MW. A transmission network of 220 kV and 132 kV with a total route length of about
2,230 km is operated by CEB to connect the generation and distribution networks. CEB carries out
distribution, primarily at voltages of 33 kV and 11 kV, while low voltage distribution is carried out at
400 V.
CEB has explored the opportunity of development of LNG infrastructure in the country to cater the
LNG demand initially from Colombo based power plants and successfully completed pre-feasibility and
detailed feasibility studies. CEB is dedicated to deploy LNG for these power plants through the
implementation of this LNG project.
1.1.4 Commercial Structure of the Project
After considering several alternatives, including land based and floating regasification systems in
multiple locations around Sri Lanka, CPC & CEB Steering Committee on the basis of data gathered and
recommendations from advisors concluded that a Floating Storage and Regasification Unit off the coast
of Kerawalapitiya is the most cost-effective arrangement under present circumstances. This solution
will overcome the challenge of securing suitable land for storage and regasification facility.
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It was further established that a privately-held Special Purpose Vehicle (SPV), strategically sourced by
means of a tendering process would be the preferred structure to allow CPC & CEB finalize the most
optimum price to be paid for the services rendered.
CEB will contract for the purchase of LNG through the Sales Purchase Agreement (SPA), secure the
provision of LNG unloading, storage, regasification through a BOO Contract for FSRU and BOOT
Contract for Mooring (“FSRU&M Agreement”) while Ceylon Petroleum Corporation (CPC) is
entrusted to enter into a BOOT Contract for Pipeline System (“PS Agreement”) as required natural
gas transportation services to accomplish the onward sale of natural gas (regasified LNG) to the power
plants located in the Colombo – Kerawalapitiya region. The basic commercial framework is set out in
the diagram below.
The “LNG Seller” will sell LNG to CEB, who will in turn sell gas to off-takers labelled as “Power Plants”.
CEB will enter into a FRU&M Agreement, which is separate from the SPA, with the FSRU and Mooring
infrastructure provider as determined by the FSRU and Mooring RFP.
LNG Seller Terminal
Company
Pipeline
Company Power Plants
(Western Region)
LNG Regasified LNG
Physical Form and Flow of Commodity
LNG Seller
CEB
Pipeline
Company
Power Plants
(Western Region) SPA
Payment
Payment
GSA
Terminal
Company
Contractual Arrangement and
Flow of Payments
and Flow of Payments
Payment
Payment
Gas Transfer
Agreement
Payment
PS Agreement FSRU&M
Agreement
CPC
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1.1.5 Issuing of Bid Documents
In connection with the Invitation of Bids for the development of onshore and offshore natural gas
transmission pipeline from the custody Transfer point to Power Plants on BOOT basis, any party
interested to participate in this Bid is required to purchase the RFP Document for the price of LKR
200,000 (Sri Lankan Rupees Two Hundred Thousand only) from the address stated in Section 1.1.8.
1.1.6 Scope of Work
1 Ceylon Petroleum Corporation (CPC), on behalf of Cabinet Appointed Negotiating Committee
(CANC), hereby invites proposals from the interested Bidders in a prescribed format (“Proposal”)
for design, supply, delivery, erection, testing, commissioning, operation & maintenance and
transfer of Natural Gas transmission onshore and offshore pipelines from Custody Transfer Point
(i.e. from and including the PLEM) to power plants at Kerawalapitiya and Kelanitissa (“Project”
/ “Facility”).
2 This Project will be developed on Build Own Operate and Transfer (BOOT) basis by private sector
participation. The operation period before transferring the Facility to the CPC is 10 (ten) years.
3 The Proposals to be received by CPC in accordance with this invitation for bids will be evaluated
and the Project Agreements will be executed with the successful Bidder in accordance with the
terms and conditions of this Request for Proposals (RFP) documents.
4 The successful Bidder shall establish a Pipeline company (Company) incorporated in at Sri Lanka
that will finance, design, procure, construct, test, commission, operate and maintain the Facility.
At the end of the Term, the Pipeline Company will transfer ownership of the Facility to the CPC.
5 The Facility will be On-shore and Off-shore pipeline including PLEM with other auxiliaries.
6 The financing of the Project is sole responsibility of the Pipeline Company.
1.1.7 Request for Proposal (RFP) Document
Interested Bidders shall submit their proposals in accordance with the RFP Documents prepared by
CPC for this purpose. The RFP Documents will be available for perusal at the address given below.
A complete set of the RFP Document can be purchased by 1500 hours of 04/06/2021, by interested
Bidders on submission of written application to the Managing Director, CPC at the address given in
Section 1.1.8 and upon payment of a non-refundable fee of LKR 200,000.00 (Sri Lankan Rupees Two
Hundred Thousand only).
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1.1.8 Address for Communication and Submission of Proposal
Manager (Procurement & Stores),
Ceylon Petroleum Corporation,
No 609, Dr. Danister De Silva Mawatha,
Colombo 09,
Sri Lanka.
1.1.9 Submission of Proposals and Closing Date
Proposals shall be submitted by hand or by courier to the address given in Section 1.1.8 no later than
by 11:00 hours of 18/06/2021.
1.1.10 Proposal security
Each proposal must be accompanied by a Proposal Security for an amount of USD 400,000 (USD 0.4
million) as per the form provided in the Volume II.
1.1.11 Employer’s Right to Reject
CPC reserves the right to reject any or all Bids or cancel/withdraw the Invitation for Bids without
assigning any reason whatsoever and in such case no Bidder/ intending Bidder shall have any claim
arising out of such action.
February, 2021
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2. INFORMATION FOR BIDDERS
2.1. General
Bidder’s financial and technical proposal shall conform to the format outlined in this document,
thereby demonstrating capability to perform all necessary works to achieve the outlined objectives. The
technical proposal shall consist of all the required information listed in each of the following sections
in the order given.
In all cases, CPC reserves the right to accept or reject submitted proposals(s) at its sole discretion
without stating any cause or reason, and without any cost or liability or obligation on the part of CPC.
2.2 General Instructions
It is intended that this Request for Proposal (RFP) be reviewed in conjunction with the following
documentation, which is attached:
Pipeline Scope of Work (Schedule 8 & 12 of Volume III)
Pipeline Functional Specification (L1 – Functional Specification of Pipeline)
Bidder’s Qualifications (Section 7)
Pipeline System Agreement (Volume III)
Feasibility Report
2.3 Brief Scope of the Project
Ceylon Petroleum Corporation (CPC), on behalf of Cabinet Appointed Negotiating Committee (CANC),
hereby invites proposals from the interested Bidders in a prescribed format (“Proposal”) for design,
supply, delivery, erection, testing, commissioning, operation and maintenance and transfer of RLNG
transmission onshore and offshore pipelines from and including PLEM to power plants at
Kerawalapitiya and Kelanitissa.
This Project will be developed on Build Own Operate and Transfer (BOOT) basis by private sector
participation. The operation period before transferring the Facility to the CPC is 10 (ten) years from
Acceptance under the BOOT Contract for Pipeline System (“Term”).
The Proposals to be received by CPC in accordance with this invitation for bids will be evaluated and
the Project Agreements will be executed with the successful Bidder in accordance with the terms and
conditions of this Request for Proposals (RFP) documents.
The successful, Bidder shall establish a Pipeline company (Company) incorporated in at Sri Lanka that
will finance, design, procure, construct, test, commission, operate and maintain the Facility. At the
end of the Term, the Pipeline Company will transfer ownership of the Facility to the CPC.
February, 2021
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The Facility can be based on On-shore and Off-shore pipeline including PLEM with other auxiliaries.
The financing of the Project is sole responsibility of the Company.
2.4 Request for Proposal Document (RFP)
The scope of the Project, bidding procedure, minimum technical requirements, contract terms,
evaluation criteria, agreements, etc. are prescribed in this RFP Documents. The RFP Document
includes following parts;
Instructions to Bidders Volume I
Proposal Letters and Forms Volume II
Draft Pipeline System Agreement Volume III
Draft Implementation Agreement Volume IV
This RFP has been prepared by CPC for the purpose of soliciting Proposals from interested Bidders.
The RFP has been drafted to embody commercial values and risk allocations consistent with the
interests of investors and their lenders contemplating limited or non-recourse financing of the Project.
While CPC considers the assumptions made in preparing this RFP to be reasonable, whether to rely on
them in preparing Proposals is a matter solely for the Bidders to judge and neither the CPC,
Government of Sri Lanka (GOSL) neither any Government Agency nor their Representatives shall take
responsibility for the Bidders’ decisions. Bids shall be made at the Bidder’s sole cost and risk and the
finalisation and execution of the Project Agreements will be at the sole cost and risk of the successful
Bidder.
The Pipeline Company will enter into agreements for the financing, development and operation of the
Facility.
February, 2021
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2.5 Project Milestone Schedule
Provided below is the project milestone schedule
Activity Duration Completion
Days Days
1 Advertisement of RFP 0 0
2 Commencement of issuing of RFP Document 0 0
3 Pre-bid Meeting 33 33
4 Proposal Submission (from the date of issuing RFP) 120 120
5 Evaluation of Technical Proposals by PC including
Clarification of Proposals
28 148
6 CANC approval for Technical Evaluation Report of PC 14 162
7 Financial Proposal Opening & Evaluation 21 183
8 CANC Approval for Financial Evaluation Report of PC 14 197
9 Negotiations by CANC 60 257
10 CANC approval and Submission of Cabinet paper 7 264
11 Cabinet Approval 21 285
12 Issuance of LOI 7 292
13 Contract Signing 14 306
14 Preliminary Obligation Period 180 486
15 Financial Closure (Date) 1 487
16 Finalization of Contract 1 488
17 Construction Notice 7 495
18 Completion of RLNG Pipeline construction, connect to
FSRU and commissioning
630 1,125
19 Commercial Operation 1 1,126
2.6 Disclaimer
The information given in this RFP is furnished by CPC in good faith. Without prejudice to the generality
of the foregoing, this RFP does not contain, nor does the GOSL,CPC or any GOSL Agency or their
Representatives, make any promise, representation or warranty whatsoever, whether expressed or
implied (and no such Representatives have any authority to make such representations and
warranties), that information contained in this RFP is accurate, complete or reasonable or that it
constitutes all the information necessary to prepare a Proposal or develop the Facility.
February, 2021
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All such persons expressly disavow any obligation or duty (whether in contract, tort or otherwise) to
any Bidder and disclaim any and all liability based on or relating to any such information or
representations or warranties (express or implied) contained in, or errors or omissions from, this RFP
or based on or relating to the use of this RFP or any other written or oral communication transmitted
to or information provided to or otherwise acquired by a Bidder.
Each Bidder accepts full responsibility for conducting an independent analysis of the feasibility of the
Facility and for gathering and presenting all necessary information. No Bidder is entitled to rely on the
involvement of CPC, any Government Agency or their representatives for the preparation of this RFP
or in the solicitation process as a basis for bidding on or developing the Facility. Except as otherwise
stated, the information provided in this RFP shall form no part of the Project Agreements or any other
document defining the agreements between CPC and Government Agencies, or of any Proposal
submitted in response to this RFP. No adjustments will be made to any Proposal, or to any agreements
between CPC and Government Agencies based on a Bidder’s interpretation of the information
provided.
In submitting a Proposal in response to this RFP, the Bidder certifies that it understands, accepts and
agrees to the disclaimers in this Section 2.6. Nothing contained in any other provision of the RFP, nor
any statement made orally or in writing by any person or party shall have the effect of negating or
superseding any of the disclaimers inn this Section 2.6.
Queries relating to the information contained in this RFP shall be directed only to the contact persons
referred to herein in the circumstances stated. No other person, whether employee, agent, adviser or
other, has been authorised to give any information or to make any representations in respect of the
RFP or the Project and, if given or made, such information or representation may not be relied upon
as having been authorised by CPC or any Government Agency.
This RFP is confidential and personal to you. It is provided to you on the understanding that it is not
to be duplicated or distributed to any other person.
3 DESCRIPTION OF THE PROJECT
3.1 The Facility in Brief
The Floating Storage and Re-gasification Unit (FSRU) is to be installed at approximately 5.00 km
offshore of Kerawalapitiya in a water depth of approximately 15.5 m (refer Section 4 of Annexure L1)
The FSRU facility has been found as the best option compared to FSU or a land-based LNG receiving
and regasification terminal. The FSRU will overcome the challenge of securing a suitable land for
storage and regasification facility.
February, 2021
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The FSRU shall be moored by means of a single point buoy mooring system compatible with the FSRU
with a regasification capacity capable of maintaining 380 MMSCFD and LNG storage capacity of
minimum 156,000 m³.
An offshore Natural Gas transmission pipeline will connect the FSRU with Onshore Receiving Facility
and an onshore pipeline will connect the power plants of Kerawalapitiya and Kelanitissa.
This RFP is to invite the Proposals from the interested Bidders for the financing, design, procurement,
construction, reconstruction (in case of damage or destruction for any reason), commissioning,
operation, maintenance and transfer of the Facility on BOOT basis.
The technology proposed for the Project shall have a proven track record, demonstrated success in
countries with a similar level of technological development and infrastructure support as in Sri Lanka.
Equipment to be offered shall be brand new and unused.
3.2 Physical facilities of the Project
A high-pressure gas pipeline will transfer gas from the FSRU to the landfall tie-in point which is
approximately 5 (five) km away from the location of FSRU. The RLNG would be transported from
FSRU moored in open sea at Kerawalapitiya through a subsea manifold and subsea pipelines to reach
onshore tie-in point. The FSRU will be installed at offshore Kerawalapitiya anywhere within the area
defined by the geographical position: Lat 7° 2'22.63"N Long 79°49'29.15"E (movable within 300 m
radius).
Consolidated Pipeline System
(This is an illustration only. The project proponent shall analyse and identify the best route for the
offshore pipeline. Suggested onshore pipeline routes are given in D7 of Annexure 4 in Volume II.)
February, 2021
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Lanka Hydraulics Institute analysed multiple route options for laying and building the subsea pipeline
to transport RLNG from FSRU to landfall point. The landfall point is taken at Dikkowita coast near sea
Water Intake Plant of West Coast power plant. The location coordinates for the landfall point is around
7°00'57.5"N 79°51'49.2"E tentatively. The generic bathymetry of Kerawalapitiya does not contain
abrupt changes. There exists a reef system that extends parallel to the shoreline. The reef is
approximately 700 m – 800 m from the beach where it starts from Kelani estuary and ends at 1.2 km
north of Kerawalapitiya. A reef gap of this magnitude means pertinence of a low circulation water body
in between. Larger waves approaching from offshore break well before it is reaching ashore. In
addition, the basin between reef and shore provides relatively calmer marine environment. It has been
recommended to lay a subsea pipeline of 20 (twenty) inches. The total length of subsea pipeline is
estimated to be approximately 5.66 km.
STPL (Sub Transmission Pipeline) 12 inches lined pipeline has been recommended for onshore
pipeline network. The inside diameter of the pipeline considered in the feasibility study is 11.7 inches.
The total length of onshore pipeline network to transport RLNG to identified power plants is
approximately 12.3 km including 1 (one) km pipeline in Kelanitissa power plant premises. The Work
under this tender comprises for construction and laying of 20” NB 5.69 km subsea pipeline and 12”
NB 14.15 km Onshore pipeline along the route provided in Annexure L1– 4.
The Bidder is not required to construct the Pipeline from the ORF to Kerawalapitiya Node 2 in this
proposal. But, Bidder shall keep provisions at the ORF to connect the Pipeline from Kerawalapitiya
Node 2 to the ORF in the future. Hence Bidder shall not consider construction of the pipeline from
ORF to Kerawalapitiya Node 2 for the calculation of Tariff.
Further, Bidder shall keep provisions at the ORF for one additional connection point similar to
Kerawalapitiya Node 2 for future industrial gas requirements. In addition, the bidder shall also keep
provisions for ten (10) tapping points tentatively with a distance of one (1) km along the route from
ORF to Kelanitissa Power Plants. Each tapping point shall consist of a valve chamber with double block
& bleed valve or suitable valve arrangement in accordance with relevant international standards. Exact
tapping points will be given by CPC during the construction.
3.3 Technical Information
Bidders shall provide general technical information in regard to the proposed facility in its Proposal.
The following minimum technical information shall be provided
(i) Details on Clearing/Grading/Levelling/Bulldozing of ROW
(ii) Handling & Storing of Pipes in Pipe Dump Yard details
(iii) Procedure of Handling, Hauling, Stringing of Line Pipes along the ROW
February, 2021
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(iv) Procedure of Trenching (Ditching) of Pipeline
(v) Details of Pipeline Laying
(vi) Welding Specification
(vii) Welding Type and Method of Welding
(viii) Welding Testing procedure
(ix) Pipeline Coating Specifications
(x) Pipeline testing procedure
(xi) Stream/River crossing procedure
(xii) Cathodic protection systems for offshore and onshore pipes & components
(xiii) HDD Installation Sequence
(xiv) Drilling Operation
(xv) Material and other specifications for pipes, fittings, flanges, structural steel, valves, etc.
3.4 Pipeline Route
Pipeline routes are given in the Annexure L1- 4 and PS Agreement.
3.5 Environmental Consideration
Preliminary EIA report is provided in Annexure L2 of the RFP. This shall only serve as the reference
document for preparation of final EIA report. The final EIA report shall be prepared by the project
proponent as per the Terms of Reference provided by Central Environment Authority (CEA) in
consultation with relevant Sri Lankan environmental agencies.
3.6 Environmental Clearance Process
This section looks at the various environmental laws and regulations that would be required for this
project with a brief extract from each law mentioning the aspect covered:
S.No
. Act/Rules Objective
Responsible
Agency
Procedure
1.
National
Environment
al Act, 1980
To protect and
improve the
overall
environment.
Central
Environment
Authority
(CEA)
The overall Environmental Impact
Assessment (EIA) approval in this
project would be via CEA.
Care must be taken that a local
consultant needs to be involved
from their list of approved agencies
for EIA process
A Preliminary Information
Questionnaire needs to be filled
before the start of the EIA.
February, 2021
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S.No
. Act/Rules Objective
Responsible
Agency
Procedure
After submission of EIA report, a
mandatory public consultation
period is undertaken where
different stakeholders would raise
their queries. This shall go on for a
maximum period of 30 working
days.
Post these consultations, the CEA
shall take a time of 4 weeks for the
final approval.
2.
Marine
Pollution
Prevention
Act No. 35 of
2008- Sec 39
–Oil Spill
Contingency
Plan
To check for
any leakages or
oil spills
during the
commissionin
g phase
Marine
Environment
Protection
Authority
(MEPA)
Under Sec-39 of the Marine
Pollution Prevention Act, an Oil
spill Contingency Plan with
appropriate measures need to be
shared in the EIA.
3.
Marine
Pollution
Prevention
Act of 2008
To check for
any dredging
activity.
Marine
Environment
Protection
Authority
(MEPA),
Department of
Coastal
Conservation
& Coastal
Resources
Management,
Sri Lanka
(CC&CRMD)
Any waste generated would need to
be removed as per registered
service providers under MEPA. The
disposal requirement needs to be
further mentioned in the EIA.
By power vested under the Marine
Pollution Prevention Act No 35 of
2008 the Service Providers
(Operating in Colombo and other
commercial ports) receiving
Shipboard Waste are required to
register with the Marine
Environment Protection Authority
(MEPA)
4.
International
Convention
for the
Prevention of
Pollution
from Ships
(MARPOL)
Annex VI,
1997
To check for
any gas
emissions
Marine
Environment
Protection
Authority
(MEPA)
This guideline are intended for
execution of bunkering operations
safely without spillages and
leakages in line with MEPA
regulations & requirements for
protection of marine pollution and
apply to cover all bunkering
operations and ship to
ship transfer of oils as cargo
subject to Annex I of MARPOL
73/78, which take place within the
Sri Lankan Waters.
February, 2021
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S.No
. Act/Rules Objective
Responsible
Agency
Procedure
The scope of this guideline covers
all bunkering operations only
among ships within the Sri Lankan
Waters regardless of the quantity
being transferred but excluded
transfers to and from ships & land
operated vehicles & installations.
The guidelines also limit the
Sulphur content in heavy fuels to
4.5% and in Sulphur Oxides (SOx)
controlled areas to 1.5%. Nitrogen
Oxides (NOx) emissions are
limited to 17g/kw-hr.
5.
MARPOL
(Annex I –
VI) /
MARPOL
73/78.
To check on oil
pollution and
gas emission
Marine
Environment
Protection
Authority
(MEPA)
The International Convention on
Oil Pollution Preparedness,
Response and Co-operation of
1990 (“OPRC”).
The International Convention on
Civil Liability for Bunker Oil
Pollution Damage of 2001 – this
Convention was adopted to ensure
that adequate, prompt and
effective compensation is available
to persons who suffer damage
caused by oil spills when carried as
fuel in ships’ bunkers. (Not in
force.)
The International Convention on
the Control of Harmful Anti-
Fouling Systems on Ships.
The Convention on Civil Liability
for Oil Pollution Damage 1969. (In
force in Sri Lanka.)
The protocol laid down by the
International Oil Pollution Fund.
(In force in Sri Lanka
6.
Coast
Conservation
Act NO 57,
1981- Permit
application
To ensure that
no person shall
engage in any
development
activity other
than a
prescribed
development
Department of
Coastal
Conservation
& Coastal
Resources
Management,
Sri Lanka
(CC&CRMD)
Respective agency needs to log in
tohttp://epermit.coastal.gov.lk/pu
blic/ and fill up the permit
application.
The area includes lying within a
limit of 300m landwards of the
Mean High Water Line and limit of
February, 2021
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S.No
. Act/Rules Objective
Responsible
Agency
Procedure
activity within
the Coastal
Zone except
under the
authority of a
permit issued
in that behalf
by the
Director, Coast
Conservation.
2 km seawards of the Mean low
Water line and in the case of rivers,
streams, lagoons, or any other
body of water connected to the sea
either permanently or periodically.
the landward boundary shall
extend to a limit of 2 km measured
perpendicular to the straight base
line drawn between the natural
entrance points therefore and shall
include the waters of such rivers,
streams, and lagoons or any other
of water so connected to the sea
3.7 Permitting Procedures and Requirements
The Pipeline Company shall be responsible for obtaining all necessary consents, permits, licenses and
approvals for the execution of the Project and for otherwise conforming to all appropriate legislation
and regulations. Bidders shall inform themselves of the full extent of such requirements including those
listed in Volume II Annex – 4 D6 Permitting Procedures and Requirements and price their Proposals
accordingly.
Bidders need to follow the guideline of the relevant key stakeholders during bidding. CPC disclaims all
or any responsibility whatsoever to anyone for information contained in the relevant stakeholder
guideline or for any representation or statement therein, whether express or implied.
4 INSTRUCTIONS FOR BIDDING
4.1 Issuing of Bid Documents
In connection with the Invitation of Bids for the Development of Pipelines from and including PLEM
to the Power Plants at Kerawalapitiya and Kelanitissa on BOOT basis, any party interested to
participate in this Bid is required to purchase a RFP Document for the price of LKR 200,000 (Sri
Lankan Rupees Two Hundred Thousand only) from the address stated in Section 4.3. The Bidder shall
examine all instructions, forms, terms, conditions, technical requirements, financial requirements,
draft agreement and other information given in the RFP Documents. Failure to furnish any requested
information as per the RFP Documents, or any condition which leads a difficulty to evaluate the
Application or submission of the proposal not substantially responsive to the RFP Documents in every
respect will be at the Bidder’s risk and may result in rejection of its Proposal.
February, 2021
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4.2 Pre-Bid Meeting and route visit
On behalf of the CANC appointed for this Project by GOSL, CPC will hold a Pre-Bid Meeting on
23/03/2021 virtually / physically at the office of Additional General Manager (DD4), Ceylon Electricity
Board, Council Lane, Dehiwala. The purpose of the Pre-Bid Meeting is to clarify the issues regarding
the RFP Documents. The Bidder is requested to submit its queries in writing by way of a request for
clarification in accordance with Section 4.4. to reach Manager (Procurement & Stores), CPC provided
they are received no later than 5 (five) working days before the Pre-Bid Meeting, such questions will
receive a response at the meeting. No answers or clarifications will be provided at the Pre-Bid Meeting
in response to questions relating to decisions of the GOSL, CEB or CPC about the structure of the
Project. The GOSL, CEB and CPC may reserve their position on any questions or requests for
clarification made at the Pre-Bid Meeting.
A route inspection will be organised at the time of the Pre-Bid Meeting to give Bidders the opportunity
to visit the route and ascertain its location and characteristics and assess their influence on
implementation of the Project and the costs and revenues associated with its development and
operation. The Bidders are advised to visit and examine the route where the Works are to be installed
and its surroundings themselves and CPC agrees to facilitate equal access to all bidders to carry out the
route examination. Obtaining all information that may be necessary for preparing the Proposal and
enter into agreements for installation of Works would be the sole responsibility of the bidder.
Additional visits to view the routes may be facilitated by an agreement with CPC. However, Bidders
are requested to note that the time available for such visits will depend on the availability of CPC’s staff
and the number of other requests for such visits. Such additional visits will only be arranged between
the hours of 09.00 and 15.00 on Business Days. Neither the Government, nor CPC nor any Government
Agency shall be under any obligation to answer any questions raised during such additional visits.
CPC shall extend reasonable assistance and co-operation in showing the routes to the Bidders.
However, neither CPC nor the GOSL nor any Government Agency shall be responsible for any
misunderstanding or misrepresentations concerning the Site or information given by any of its
Representatives in the course of the Site visit. Requests for clarification made during the site visit will
be responded to in accordance with the provisions of Section 4.3. The cost of visits shall be borne by
the Bidder fully. The Bidder and any of its personnel or agents will be granted permission by CPC on
written request from them to enter the Site for the purpose of such examination but only upon the
express condition that the Bidder and any of its personnel or agents will release and indemnify the CPC
and its personnel or agents all liabilities in respect of thereof and the Bidder will be responsible for the
personnel injury or death, loss of damage to property and any other loss. Damage, costs and expenses
incurred as a result of the Inspection.
February, 2021
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4.3 Clarifications of bidding documents
Any Bidder desiring any explanations and/or clarifications regarding this RFP Document may submit
its written requests by facsimile, e-mail or by registered mail to:
Manager (Procurement & Stores)
Ceylon Petroleum Corporation,
No 609, Dr. Danister De Silva Mawatha,
Colombo 09
Sri Lanka
Tel No.: +94115455332
Fax no.: +9411 5455424
Email Address: [email protected]
Requests for clarification shall be submitted using the form set out in Volume II Annexure -1 A2 -
Clarification Form. CPC will reply to such requests for clarification by an Additional Notification issued
within 10 (ten) days from the date of receipt of the request. Additional Notifications will be sent to all
Bidders without specifying the source of the request. Requests for clarification shall be received no
later than 45 (forty five) days prior to Bid Closing for the bids, and no Additional Notification or other
reply shall be made with respect to requests received later than this deadline.
No responsibility shall be taken by CPC for any delay or non-receipt of any notifications, additional
notifications or any other information under this RFP via email if such delay or non-receipt arises due
to reasons not attributable to CPC including but not limited to connectivity issues, availability of servers
or other technical defaults.
4.4 Amendments to RFP
Any Bidder desiring any explanations and/or clarifications regarding this RFP Document may submit
its written requests by facsimile, e-mail or by registered mail to the address given in Clause 4.3 above.
Requests for clarification shall be submitted using the form set out in Annexure – 1 A2 in Volume
II. The CPC will reply to such requests for clarification by an Additional Notification issued within 10
(ten) days from the date of receipt of the request. Additional Notifications will be sent to all Bidders
without specifying the source of the request. Requests for clarification shall be received no later than
45 (forty five) days prior to Bid Closing for the bids, and no Additional Notification or other reply shall
be made with respect to requests received later than this deadline.
No responsibility shall be taken by CPC for any delay or non-receipt of any notifications, additional
notifications, amendment or any other information under this RFP via email if such delay or non-
Project Director (LNG)
Ceylon Petroleum Corporation,
No 609, Dr. Danister De Silva Mawatha,
Colombo 09
Sri Lanka
Tel No.: +94115455364
Fax no.: +9411 5455432
Email Address: [email protected]
February, 2021
22
receipt arises due to reasons not attributable to CPC including but not limited to connectivity issues,
availability of servers or other technical defaults.
4.5 Amendments to Draft Project Agreements
It is important that the Project is expedited, and the Project Agreements are executed without
protracted negotiation or delay. Bidders are encouraged to minimize deviations to the Project
Agreements. Proposals containing material deviations to the draft Project Agreements may be rejected.
However, Bidders may without penalty seek changes to the draft Project Agreements till 1 (one) week
post of Pre-Bid Meeting date by following the procedures stipulated below.
If Bidders have concerns with the Project that in their view are not satisfactorily addressed in the draft
Project Agreements provided as part of this RFP, the Bidders may propose amendments to the Project
Agreements in the format specified in Annexure – 3 C3. This is no-deviation bid, bidders will be
allowed to seek any clarification only till one week post pre-bid meeting.
Prior to deciding its response to Bidders’ proposed amendments, the CPC may invite the Bidders,
individually or collectively, to discuss the proposed amendments. The GOSL or CPC may, at its sole
discretion, accept the amendments and accepted amendments will be incorporated into the draft
Project Agreements through Addenda issued pursuant to Section 4.4.
In proposing amendments to the Project Agreements, Bidders shall:
a) Obtain advice, as appropriate, from their relevant advisors and/or lenders, as appropriate; and
b) Allow sufficient time for the CPC to consider such amendments, discuss them with Bidders (if
appropriate and desirable), and to determine a response and issue Addenda (if appropriate).
Bidder’s Proposals shall be based on the draft Project Agreements in their amended form as they exist
30 (thirty) days prior to Bid Closing.
Bidders are requested to confirm in their Proposal their acceptance of, and willingness to execute, the
amended drafts as they stand 30 (thirty) days prior to Bid Closing. Deviations that are not included in
the prescribed format shall not be taken as part of the Bidders Proposal and the Bidder may not rely on
them.
4.6 Disqualification Criteria
Applicants may be disqualified from the qualification process at the sole discretion of CPC in any of the
following events:
a) Non-compliance with any of the minimum requirements (specified herein and/or the requests
and/or the conditions provided in the RFP Document or failure by an Applicant to provide any
of the information or documentation required to be provided in its Qualification Statement).
February, 2021
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b) If any of the information submitted by an Applicant is found at any time during or after the
qualification process to have been inaccurate, incomplete or misleading.
c) If a material adverse dispute amounting to USD 10 (Ten) Million or above that is pending
against an Applicant (or, in the case of a consortium or Joint Venture Applicant, any Member
of the consortium or Joint Venture) as of the Bid Closing and such material adverse dispute
arising prior to the Bid Closing is subsequently resolved against the Applicant or such
consortium or Joint Venture Applicant Member.
d) Incomplete presentation of the documents or information requested.
e) Any clarifications requested by CPC from an Applicant are not received by a deadline reasonably
set by CPC.
f) The Bidder (or, in the case of a consortium or Joint Venture Applicant, any of its Members) is
placed under liquidation, court receivership or similar proceedings at any time during the
qualification process.
g) Any Applicant or consortium or Joint Venture Applicant Member participating as either a Lead
Member or Other Member with more than one Applicant.
h) Any entity which has been barred, suspended or blacklisted by any government or any
government agency, or any entity controlled by it, from participating in any project (BOOT,
BOO or otherwise), and the bar subsists as on the date of application, would not be eligible to
submit an Application, either individually or as member of a Consortium.
i) A record of unsatisfactory past performance, including untimely completion, poor claims
history and defective workmanship.
j) Inordinate overdue debts toward the insurance, revenue or customs authorities of Sri Lanka or
of their country of incorporation.
k) A record of criminal or civil court cases pending or decided against them involving non-
payment of tax, duty or other undertaking with the any government or any government agency.
l) A record of criminal case pending or decided against the Applicant, Consortiums, Joint
Ventures, a member of the Consortium or Joint Venture. Bidders shall provide information in
the form specified in Volume II Annexure – 1 A9 – Record of Criminal Case Pending or Decided
m) In-case of Disqualification: If the Applicant/Bidder is a consortium, then the entire
consortium may be disqualified/ rejected. If such disqualification/ rejection occurs after the
financial Bids have been opened and the lowest bidder gets disqualified/ rejected, then CPC
reserves the right to:
(i) Invite the next lowest Bidder; or
(ii) Take any such measure as may be deemed fit in the sole discretion of CPC,
including annulment of the bidding process; or
February, 2021
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(iii) In case it is found during the evaluation or at any time before signing of the
Project Agreements or after their execution and during the period of subsistence
thereof, that one or more of the pre-qualification conditions have not been met
by the Applicant, or the Applicant has made material misrepresentation or has
given any materially incorrect or false information, the Applicant shall be
disqualified forthwith if not yet appointed by issue of the Letter of Intent or
entering into of the Project Agreements, and if the Applicant/SPV has already
been issued the Letter of Intent or has entered into the Project Agreements, as
the case may be, the same shall, notwithstanding anything to the contrary
contained therein or in this RFP, be liable to be terminated, by a communication
in writing by CPC to the Applicant, without CPC being liable in any manner
whatsoever to the Applicant and without prejudice to any other right or remedy
which CPC may have under this RFP, the Project Agreements or under
applicable law.
n) CPC reserves the right to verify all statements, information and documents submitted by the
Applicant in response to the RFP. Any such verification or lack of such verification by CPC shall
not relieve the Applicant of its obligations or liabilities hereunder nor will it affect any rights of
CPC thereunder.
4.7 Consortiums
Applicants may apply either individually or as a consortium or as Joint Venture. Individual Applicants
or consortium or Joint Venture Members should not be natural persons and shall meet the following
conditions:
Note: If a consortium or Joint Venture Applicant is submitting a Qualification Statement, the
consortium Applicant must identify one Member of the consortium that will assume and discharge the
responsibilities of the Lead Member as set forth below.
a) The Bidder, which is currently a consortium, shall state a consortium leader’s name and the
respective percentages of equity interest in the consortium as indicated in the relevant
consortium agreement that shall be certified by public notary/ law enforcement agency and
submitted. As per Volume II Annexure - 1 A5 - Joint Bidding – Power of Attorney.
b) Members of the consortium shall enter into a binding agreement through a Joint Bidding –
Power of Attorney/ Agreement, substantially in the form specified (As per Volume II Annexure
- 1 A5 - Joint Bidding – Power of Attorney), for the purpose of making the Application
/submitting a Bid. The Joint Bidding Power of attorney/ Agreement is to be submitted along
with the Application, shall
February, 2021
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(i) Convey the intent to form an SPV with shareholding/ ownership equity commitment(s)
in accordance with the RFP, which would enter into the Project Agreements and
subsequently perform all the obligations in terms of the Project Agreements, in case
the Project is awarded to the Consortium;
(ii) Clearly outline the proposed roles and responsibilities, if any, of each member;
(iii) Commit the minimum equity stake to be held by each member;
(iv) The consortium shall not have more than 4 (four) members;
(v) Commit that each of the members, whose experience will be evaluated for the purposes
of this document, shall subscribe to at least 26% (twenty six per cent) or more of the
paid up and subscribed equity of the SPV, such SPV shall be incorporated under laws
of Sri Lanka.
c) Paid up Equity Capital: Members of the consortium undertake that they shall collectively
hold at least 51% (fifty one per cent) of the subscribed and paid up equity of the SPV at all times
for a minimum period of 5 (five) years from the date of Commercial Operations of the Project.
d) If a consortium or Joint Venture Applicant is submitting an application, the consortium
Applicant must identify 1 (one) or more Members of the consortium that will assume and
discharge the responsibilities as set forth below:
I. The Lead Member of a consortium or Joint Venture Applicant:
(i) Must hold and maintain at least 26% (twenty six per cent) of the equity interests
in the consortium or Joint Venture and in the Company for a period 5 (five) years
from commencement of commercial operation date of the project. This shall be
included in the articles of association of the Company;
(ii) Include a statement to the effect that all members of the Consortium shall be
liable jointly and severally for all obligations in relation to the Project until the
financial closure of the Project pursuant to the financing plan is achieved;
(iii) The Lead Member shall be responsible for all communications with and for the
Bidder.
(iv) The Lead Member shall submit the Proposal which shall be signed by all
members, with powers of attorney, in terms acceptable to CPC, executed by all
members authorizing the lead member and all signatories to execute the
Proposal on their behalf.
(v) The Lead Member shall also submit duly certified resolutions from the Board of
each member company authorizing that member's participation in the Proposal
(vi) Must meet financial qualifications criteria set out in this RFP,
(vii) Must meet technical qualifications criteria set out in this RFP, to the extent that
such criteria are not met by the Other Members
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II. Other Members must meet the criteria set out below.
(i) Must hold and maintain the same equity interests (as mentioned in the bidding
documents) in the consortium or Joint Venture and in the Company for a period
5 (five) years from commencement of Commercial Operation date of the Project;
(ii) Must meet the technical qualifications criteria set out in this RFP, to the extent
that such criteria are not met by the Lead Member.
e) Except as provided under this RFP, there shall not be any amendment to the Joint Bidding
Power of Attorney/Agreement without the prior written consent of CPC.
f) In the case of a company or incorporated joint venture, the Bidder shall provide its
memorandum and articles of association, in the case of some other form of partnership
agreement, it shall provide a memorandum amongst its members demonstrating their
commitment to the Project and stating the proposed equity contributions.
g) In the case of consortium, Applications shall only be made where all parties to the consortium
are jointly and severally liable for the execution and completion of the Project. Any Application
shall be signed so as to legally bind all members, jointly and severally. Such Application shall
be submitted with a copy of the valid consortium agreement, providing evidence of the joint
and several liabilities with respect to both the Application to qualify and under the Project
Agreements until financial closure further to the Financing Plan for the Project is achieved
under and in accordance with the PS Agreement to the Contract(s).
h) The Bidder shall provide as part of its Proposal details of the role to be played by each of its
Members, their intended capital (equity, preference or debt) commitment and the organization
of the proposed Pipeline Company.
i) No bidder can have a Member operating as a Lead Member or Other Member, who is a Member
of another bidding consortium in respect of the Project.
j) Changes to the consortium: Any change to the consortium is governed by the following
(i) If the Bidder is already in the form of consortium, such Bidder may: (i) change the
respective percentages of equity interest of consortium members, or (ii) add new its
members of consortium (provided that the new member shall be another Bidder, or a
member of another Bidder - which no longer intends to submit a bid with its previous
consortium) subject to the bid document requirements, where such changes shall not
result in a failure by the consortium to meet any of criteria as a Bidder.
(ii) In any case of new member from other Bidder, the Bidder must submit a letter signed
by the new member stating that each participation of a member of such other Bidder
has been withdrawn, and it releases and discharges CPC from any obligations towards
it as a member of such other Bidder, and setting out evidence of termination of the
relevant consortium agreement which shall be effective prior to the Bid Closing.
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(iii) Changes in the composition of a consortium or Joint Venture Applicant prior to the
submission of the bid for the Project is permitted; provided, that the following
conditions are satisfied and notice to and prior approval is granted by CPC (which shall
not be unreasonably withheld):
No changes in the Members of a consortium or Joint Venture Applicant are
permitted which would result in either
a change to the Lead Member of the consortium or
the failure by the consortium or Joint Venture to meet any of the criteria set
out in financial and technical eligibility sections.
(iv) Changes to Members of a consortium or Joint Venture Applicant (other than the Lead
Member) are permitted up to 30 (thirty) Days before the date on which the consortium
or Joint Venture Applicant submits its final bid/proposal for the Project;
(v) Any change in the Joint Venture structure during the validity of the Project
Agreements, whether stake-holding in the venture, the change of Members or
otherwise must conform to the qualification criteria mentioned in this section of RFP.
The final Joint Venture thus created (after the changes) should abide by the conditions
written down in this section. Furthermore, a new set of documentary evidence of the
new Joint Venture entity must be provided to CPC, 5 (five) Business Days prior to the
effectiveness of such change.
k) Conflict of Interest: A Bidder shall not have a conflict of interest (the “Conflict of Interest”)
that affects the Bid process. Any Applicant found to have a Conflict of Interest shall be
disqualified. A Bidder shall be deemed to have a Conflict of Interest affecting the Bid process, if
the Bidder, its Member or its associate (or any constituent thereof) and any other Applicant, its
Member or any associate thereof (or any constituent thereof) have common controlling
shareholders or other ownership interest; provided that this disqualification shall not apply in
cases where the direct or indirect shareholding of an Applicant, its Member or an associate
thereof (or any shareholder thereof having a shareholding of more than 5 (five) per cent of the
paid up and subscribed share capital of such Applicant, Member or associate, as the case may
be) in the other Applicant, its Member or associate is less than 5 (five) per cent of the subscribed
and paid up equity share capital thereof; provided further that this disqualification shall not
apply to any ownership by a bank, insurance company, pension fund or a public financial
institution. For the purposes of this Clause, indirect shareholding held through one or more
intermediate persons shall be computed as follows:
(i) where any intermediary is controlled by a person through management control or
otherwise, the entire shareholding held by such controlled intermediary in any other
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person (the “Subject Person”) shall be taken into account for computing the
shareholding of such controlling person in the Subject Person; and
(ii) subject always to sub-clause above, where a person does not exercise control over an
intermediary, which has shareholding in the Subject Person, the computation of
indirect shareholding of such person in the Subject Person shall be undertaken on a
proportionate basis; provided, however, that no such shareholding shall be reckoned
under this sub-clause if the shareholding of such person in the intermediary is less than
26% of the subscribed and paid up equity shareholding of such intermediary;
(iii) such Applicant, or any associate thereof receives or has received any direct or indirect
subsidy, grant, concessional loan or subordinated debt from any other Applicant, or
any associate thereof or has provided any such subsidy, grant, concessional loan or
subordinated debt to any other Applicant, its Member or any associate thereof; or
(iv) such Applicant has the same legal representative for purposes of this Application as
any other Applicant; or
(v) such Applicant, or any Associate thereof has a relationship with another Applicant, or
any Associate thereof, directly or through common third party/ parties, that puts either
or both of them in a position to have access to each-others’ information about, or to
influence the Application of either or each other; or
(vi) such Applicant, or any associate thereof has participated as a consultant to CPC in the
preparation of any documents, design or technical specifications of the Project.
The Bidder shall provide an affidavit saying that “there is no conflict of interest” as mentioned
above.
l) Once the Bidder has submitted its Proposal and for as long as the Proposal is under
consideration by CPC, the members may not dispose of their interest in, or withdraw from, the
bidding consortium prior to execution of the Project Agreements.
m) Failure to comply with any of the requirements set forth in this Section may result in the
disqualification and withdrawal by CPC of the consortium or Joint Venture Applicant’s
qualified status and its right to submit a bid/proposal
n) An Applicant shall be liable for disqualification if any legal, financial or technical adviser of CPC
in relation to the Project is engaged by the Applicant, its Member or any associate thereof, as
the case may be, in any manner for matters related to or incidental to the Project. For the
avoidance of doubt, this disqualification shall not apply where such adviser was engaged by the
Applicant, its Member or associate in the past but its assignment expired or was terminated 6
(six) months prior to the date of issue of the RFP.
o) Each and every member (present or future) are jointly and severally liable to execute the
agreements in accordance with their terms.
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Explanation- In case an Applicant/ Bidder is a consortium, then the term Applicant as used here,
shall include each Member of such consortium.
4.8 Proposal Responsiveness
The Bidder shall submit only one proposal (the Proposal), which shall be substantially responsive i.e.
one that conforms to the terms, conditions and specifications of the RFP without material deviation or
reservation and otherwise fulfils the mandatory requirements specified in Section 4.13 Mandatory
Proposal Requirements – Responsiveness test. Failure to comply with this instruction may result in
rejection of the Bidder’s Proposal.
The Bidder shall submit no more than 1 (one) Proposal although it may include options proposing
different distributions of equity capital among shareholders.
4.9 Language of the Proposal
The Proposal and all related correspondence, communications and documents in relation to this RFP
shall be in the English language. Supporting documents and printed literature furnished by the Bidder
with the Proposal may be in any other language and may be accepted for reference only, provided they
are accompanied by an appropriate translation in English language. Supporting materials that are not
translated into English language will not be considered.
4.10 Proposal Structure
Proposals shall comprise two separate parts; a Technical Proposal and a Financial Proposal. Bidders’
Proposals shall include the following documents (refer Volume II):
a) Technical Proposal
(i) Technical Proposal Letter (Annexure -2 B1 - Technical Proposal Letter with
associated declaration)
(ii) Qualifications of the Bidder (Annexure -2 B2 - Qualifications of Bidder and all
sub parts (B2.1, B2.2 etc.)
(iii) Financial Criteria (Annexure -2 B3 - Financial Criteria)
(iv) Technical Details (Annexure -2 B4 - Technical Details)
(v) Proposal Security (Annexure -1 A3 - Proposal Security Form)
(vi) Joint Bidding Agreement (Annexure -1 A5 - Joint Bidding Agreement and
relevant attachments)
(vii) Bidder’s Organizational, Staffing & QA Plan (Annexure -1 A6 - Bidder’s
Organizational, Staffing & QA Plan)
(viii) Bidder’s Operation and Maintenance Plan in accordance with Project
Agreements
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(ix) Project Execution Schedule (Annexure -1 A8 - Project Execution Schedule)
b) Financial Proposal (Volume II)
(i) Financial Proposal Letter (Annexure -3 C1 - Financial Proposal Letter)
(ii) Letter from Financial Advisor (Annexure -3 C2 - Letter from Financial Advisor)
(iii) Deviations to the Project Agreements (Annexure -3 C3 - Deviations to the Project
Agreements)
(iv) Financial Data (Annexure -3 C4 - Financial Data and all sub parts (C4.1 and
C4.2))
(v) Financing Plan (Annexure -3 C5 - Financing Plan)
4.11 Proposal Preparation
If the Proposal consists of more than one volume, the Bidder shall clearly number the constituent
volumes and provide an indexed table of contents for each volume.
The Proposal shall be typed using indelible ink and shall be clearly legible and suitable for copying. The
person or persons duly authorised to sign for the Bidder shall initial each sheet and any erasures or
changes. Any erasures and changes that are not signed, dated and legible will not be taken into
consideration.
All pages of the Proposal shall bear the name of the Bidder.
The Bidder shall complete the letters and forms in Volume II Annexures of this RFP and will otherwise
provide information required under the RFP in the format requested. Each sheet of the Proposal forms
submitted under cover of the Proposal letters required under Volume II Annexures of this RFP shall
conform to the formats specified in Volume II Annexures of this RFP and shall be initialled by the
signatories (if more than one), of the Proposal letters. Signatures and initials shall be in blue indelible
ink.
Technical data as well as dimensions and measurements on the drawings submitted with the Proposal
shall be quoted in SI units unless advised otherwise.
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4.12 Bidder’s Duty
Bidder’s attention is drawn to the Section 2.6(Disclaimer) and to the provisions more fully described
below.
The submission of this Proposal will be construed as acknowledgement by the Bidder that it has
satisfied itself as to the nature and location of the Project, the general and local conditions of the Site
and its environs, the services to be provided, and other matters which, if the Bidder’s Proposal is
accepted, may affect the Bidder’s performance of its obligations under the Project Agreements. In
particular, in submitting its Proposal, the Bidder is deemed to have, amongst others:
a) Carefully examined and familiarised itself with this RFP, including the draft Project
Agreements.
b) Familiarised itself with the laws and regulations of Sri Lanka, including labour, environmental
and financial laws, and satisfied itself that complying with these laws and regulations has been
fully considered.
c) Carefully examined all available information not being part of the RFP including studies, maps,
reports, charts, records, laws, regulations and other sources as are available to the Bidder.
d) Made its own interpretations, deductions, conclusions and assessment of the Site, the
geotechnical, meteorological, hydrological, atmospheric and all other ambient, surface and
subsurface conditions in and around the Site and the circumstances that the Bidder, if its
Proposal is accepted, may experience or encounter in implementing the Project.
e) Informed itself of the restrictions, procedures, costs, timings and difficulties associated with:
(i) restrictions and constraints, if any, imposed by the existing infrastructure including
roads, bridges and harbours;
(ii) the local labour market and the visas, work permits and other approvals for expatriate
personnel;
(iii) customs clearances and other approvals for the importation of equipment and
materials;
(iv) the market in Sri Lanka for fuels and proposed changes thereto;
(v) legal, regulatory and institutional reform in Sri Lanka including restructuring
proposals for the energy sector, financial sector and other relevant sectors;
(vi) financial and currency matters.
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f) Informed itself of the legal, regulatory and institutional reform processes in Sri Lanka,
particularly as they relate to relevant sectors such as the energy sector and financial sector.
g) Made full allowance in its Proposal for the resources required to fulfil its obligations under the
Project Agreements.
h) Informed itself on necessary regulatory clearances to be taken from different authorities in Sri
Lanka for successful project implementation. For example, Sri Lanka Port Authority (SLPA),
Marine Environment Protection Authority, Sri Lankan Navy etc. An indicative list is provided
in Section 3.6 Environmental Clearance Process.
The failure of any Bidder to receive or examine any form or document, or to otherwise fully inform
itself shall not be grounds for the Bidder to subsequently alter its Proposal after submission, nor shall
it in any way relieve the Bidder from any responsibility for successfully executing the Project within the
terms of the Project Agreements.
4.13 Mandatory Proposal Requirements – Responsiveness test Failure of the Bidder to meet the requirements of the Responsiveness Test and comply with the
requirements provided in Volume II Annexure -1 A1 - Responsiveness Test shall constitute grounds for
rejection of the Proposal.
4.14 Cost and Risk of Proposals
Bidders shall bear all costs, including those of professional advisors, incurred by them in preparing and
submitting their Proposals, executing the Project Agreements and finalising financing regardless of the
conduct or outcome of the evaluation process, or subsequent financial ability of the Project. Neither
CPC, GOSL, nor any GOSL Agency, nor any representative of these parties shall have any liability
whatsoever to any Bidder in respect of any decision taken by Bidders in relation to their bids whether
in reliance on any matter supplied by the Government, any Government Agency, or any of their
representatives.
4.15 Proposal Validity
Each Proposal shall constitute a firm offer and one that shall remain valid and open for acceptance for
a period of twelve (12) months from Bid Closing. During this period the proposed Tariff shall remain
valid and in case the Bidder withdraw its Proposal during this period, it may be liable to lose the
Proposal Security at the sole discretion of CPC. Any Proposal offering a validity period less than the
stipulated Proposal validity period will be rejected.
Prior to expiration of the original Proposal validity period, CPC may request one or more of the Bidders
to extend the period of validity for a specified period. The request for an extension to the original
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validity date and the responses to it shall be made in writing. If any Bidder does not agree to such
extension, it may advise CPC of its decision in writing prior to the expiration of the original period
without forfeiting its Proposal Security and withdraw its Proposal. If, following the issuance by CPC of
a notice of extension, a notice of withdrawal is not received by CPC prior to the expiration date of the
original validity period, the extension shall be considered to have been accepted by the Bidder and the
Bidder shall extend the effective period of the Proposal Security accordingly or be disqualified.
A Bidder agreeing to the request will not be permitted to modify its Proposal but will be required to
extend the validity of its Proposal Security accordingly. The provisions of Section 4.16 Proposal Security
regarding release and forfeiture of Proposal Security shall continue to apply during the extended period
of Proposal validity.
4.16 Proposal Security
A Proposal Security payable in Sri Lanka shall be furnished to CPC with the Proposal. The Proposal
Security shall be to the value of USD 400,000 (USD Four Hundred Thousand only). This security shall
be in the form of a bank guarantee issued by a commercial bank operating in Sri Lanka approved by
the Central Bank of Sri Lanka or a bank based in another country but the guarantee confirmed by a
bank operating in Sri Lanka approved by the Central Bank of Sri Lanka, in the form provided in Volume
II Annexure -1 A3 - Proposal Security Form. The Proposal Security shall be valid for a period of not less
than 13 (thirteen) months from Bid Closing. Any Proposal not accompanied by a Proposal Security
complying with this Section will be rejected.
A Bidder shall forfeit the Proposal Security without any notice, demand, or other legal process and CPC
shall encash:
a) if the Bidder withdraws its Proposal during the period of Proposal validity; or
b) if the Bidder’s Proposal contains any false statement or material misrepresentations, in the
opinion of CPC; or
c) if a member of the Bidder disposes of or withdraws its interest in the Project prior to execution
of the Project Agreements so that it no longer complies with the qualification requirements.
d) if the Bidder has, in the opinion of CPC, made material misrepresentation or has given any
materially incorrect or false information or has submitted forged documents
e) if the Bidder withdraws its Bid during the interval between the specified date and time of
submission of the Proposal or any extension thereof and expiration of the validity period of the
Proposal including extension thereof
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f) if the Bidder unilaterally modifies its Proposal during the interval between the specified date
and time of submission of the Proposal or any extension thereof and expiration of the validity
period of the Proposal including extension thereof.
g) if the selected Bidder;
(i) fails to communicate to CPC its letter of acceptance of the award or fails to sign the
agreement within such timeframes as specified in the RFP (in case of the latter, if
the Performance Security Bond is not submitted, Proposal Guarantee will be
forfeited. If Security Bond has been submitted, the same will be forfeited)
(ii) Successful bidder is unable to begin negotiations within 1 (one) month of being
invited to do so by CPC, or
(iii) Successful bidder is unable to execute the Project Agreements within 3 (three)
months of being invited to negotiate, such negotiations being conducted in mutual
good faith and based on the Bidders’ Proposal and on the terms and conditions of
the draft Project Agreements, as amended prior to Bid Closing; or
(iv) Successful bidder is unable to furnish the Performance Guarantee Bond by the time
and in the form required by the RFP.
h) if the Bidder indulges in fraud and corrupt practices as defined in this RFP.
Bidders who decline CPC request to extend the validity of their Proposals in pursuant to Section 4.15
Proposal Validity shall have their Proposal Security returned to them upon the expiration of their
Proposal validity.
After the shortlisted Bidders have been selected as per Section 8 and have extended the validity periods
of their Proposals if necessary, pursuant to Section 4.15 Proposal Validity, the Proposal Security of
those Bidders who were not shortlisted will be returned (without any interest thereon).
The Proposal Securities of shortlisted Bidders will be discharged or returned, or both, without interest,
upon the sooner of the expiration date of their Proposals or the execution of the Project Agreements
with the Company formed by the successful Bidder. The return of the Proposal Security of the
successful Bidder shall be conditional on the furnishing of a Performance Security Bond pursuant to
Section 4.17 Project Bonds.
4.17 Project Bonds
Prior to the signing of the Project Agreements, the selected Bidder (the JVC / SPV in case of a
consortium in accordance with Clause 4.7) shall form the Company and shall provide CPC with an
‘irrevocable – unconditional-encashable on demand’ Bank Guarantee on a non-judicial stamp paper as
February, 2021
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per form specified in Volume II Annexure -1 A4 - value of USD 4 million or 10% of the Project Cost
whichever is higher. The above Performance Security Bond may also be deposited in Demand Draft /
Banker’s Cheque only drawn in favour of Ceylon Petroleum Corporation payable at Colombo.
Till such time the selected Bidder provides to CPC the Performance Security Bond pursuant hereto, the
Proposal Security shall remain in full force and effect. The Performance Security Bond, if in the form
of a bank guarantee shall be valid for the entire duration of the contract (i.e as long as the PS Agreement
is in effect) with an additional claim period of six (6) months. This shall be continued with for the entire
duration of the contract (i.e as long as the PS Agreement is in effect) concerned to this RFP.
In the event of issuing bank guarantee by any branch outside Colombo, any Colombo Branch of such
bank shall confirm the same and stand by for all the commitments under the bank guarantee.
Failure of selected Bidder to provide a valid Performance Security Bond shall entitle CPC to forthwith
cancel the Letter of Intent and also if relevant, to forfeit the Proposal Security Bond.
The Performance Security Bond may be forfeited in accordance with the provisions of the PS
Agreement. The cost of executing the Performance Security Bond and extension/ revalidation of the
same, if any, shall have to be borne by the selected Bidder. Performance Security Bond shall be
encashed at 0.1% of Performance Security Bond/day of delay in achieving financial closure (financial
closure shall occur within 180 (one hundred and eighty) days from the signing of Project Agreements)
pursuant to the Financing Plan. Any delay beyond 120 (one hundred twenty) days may result in
termination of all Project Agreements.
4.18 Proposal Authorization
The Technical Proposal Letter and the Financial Proposal Letter shall be signed by the person or
persons duly authorized to bind the Bidder to the Proposal. Proof of authorization in the form written
by a notarial executed power(s)-of-attorney and resolutions of each member's board in terms
acceptable to CPC from consortium members to authorize the signatories to sign on their behalf shall
be attached to the Technical Proposal Letter and Financial Proposal Letter.
The forms for the Proposal letters and the Proposal Security and other securities, as appropriate, shall
be adopted without modification other than inclusion of dates, references to addenda, names of
signatories, addresses and the like.
4.19 Proposal Format, Marking, Sealing and Submission
Bidders shall submit: (i) one original of the Technical Proposal (clearly marked “Original”) and (three)
copies (each clearly marked “Copy”); and (ii) one original of the Financial Proposal (clearly marked
“Original”) and 3 (three) copies (each clearly marked “Copy”). Any discrepancy between the original
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and a copy will be resolved in favour of the original. Electronic copies of the Proposal (in addition to
the hard copies) may also be provided.
The Proposal, comprising the Technical and Financial Proposal, shall be delivered in a sealed package
labelled in bold letters:
The Proposal shall be submitted to the following address no later than the Bid Closing time:
Chairman, CANC
C/o Manager (Procurements & Stores),
Ceylon Petroleum Corporation,
No 609,
Dr. Danister De Silva Mawatha,
Colombo 09,
Sri Lanka.
If the Proposal is not sealed and marked as specified above, CPC may reject it as non-conforming and
will assume no responsibility for its misplacement or premature opening. The package shall also clearly
state the Bidder’s name and address.
Within this package will be three inner packages:
i. Inner Package 1: The Technical Proposal shall be enclosed in the Proposal package in a separate
sealed inner package bearing the following identification:
CONSTRUCTION OF A RE-GASIFIED LIQUEFIED NATURAL GAS (R-LNG) PIPELINE
SYSTEM FROM FLOATING STORAGE REGASIFICATION UNIT (FSRU) LOCATED
AROUND 5 KM OFF THE KERAWALAPITIYA COASTAL BELT TO EXISTING AND FUTURE
KELANITISSA AND KERAWALAPITIYA POWER PLANTS ON BUILT OWN OPERATE AND
TRANSFER (BOOT) BASIS
SEALED PROPOSAL – DO NOT OPEN
RFP Document
No............................................................................................................................................
Bidder’s Full Name and
Address....................................................................................................................
...........................................................................................................................................................
................
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DO NOT OPEN
FINANCIAL PROPOSAL FOR
CONSTRUCTION OF A RE-GASIFIED LIQUEFIED NATURAL GAS (R-LNG) PIPELINE
SYSTEM FROM FLOATING STORAGE REGASIFICATION UNIT (FSRU) LOCATED
AROUND 5 KM OFF THE KERAWALAPITIYA COASTAL BELT TO EXISTING AND FUTURE
KELANITISSA AND KERAWALAPITIYA POWER PLANTS ON BUILT OWN OPERATE AND
TRANSFER (BOOT) BASIS
RFP Document
No............................................................................................................................................
Bidder’s Full Name and
Address....................................................................................................................
...........................................................................................................................................................
................
Within the first inner package will be four sealed envelopes:
a. One envelope, containing one set of the Technical Proposal documents clearly marked “Original”
on the envelope and the first and the last pages of the document; and
b. Three further envelopes, each containing the copies of the Technical Proposal clearly marked
“Copy” on the envelope and the first and the last pages of the document
ii. Inner Package 2: The Financial Proposal shall be enclosed in the Proposal package in a separate
inner sealed envelope bearing the following identification:
TECHNICAL PROPOSAL FOR
CONSTRUCTION OF A RE-GASIFIED LIQUEFIED NATURAL GAS (R-LNG) PIPELINE
SYSTEM FROM FLOATING STORAGE REGASIFICATION UNIT (FSRU) LOCATED
AROUND 5 KM OFF THE KERAWALAPITIYA COASTAL BELT TO EXISTING AND FUTURE
KELANITISSA AND KERAWALAPITIYA POWER PLANTS ON BUILT OWN OPERATE AND
TRANSFER (BOOT) BASIS
RFP Document
No............................................................................................................................................
Bidder’s Full Name and
Address....................................................................................................................
...........................................................................................................................................................
................
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Within the second inner package shall be four sealed envelopes:
a. One envelope, containing one set of the Financial Proposal documents with clearly marked
“Original” on the envelope and the first and the last pages of the document and a computer disk
or USB Memory stick with Section (i) in electronic form; and
b. Three further envelopes, each containing the copies of the Financial Proposal clearly marked
“Copy” on the envelope and the first and the last pages of the document and a computer disk with
Section (i) in electronic form.
iii. Inner Package 3: A third inner envelope in the Proposal package shall be marked “Proposal
Security” on the envelope and shall carry the name of the Bidder and contain the original of the
Proposal Security document.
It shall be deemed that by submitting the Application, the Applicant has:
a. Made a complete and careful examination of the RFP;
b. Received all relevant information requested from CPC
c. Accepted the risk of inadequacy, error or mistake in the information provided in the RFP or
furnished by or on behalf of CPC;
d. Agreed to be bound by the undertakings provided by it under and in terms hereof.
e. CPC shall not be liable for any omission, mistake or error in respect of any of the above or on
account of any matter or thing arising out of or concerning or relating to the RFP or the bidding
process, including any error or mistake therein or in any information or data given by CPC.
The name and address of the Bidder shall be written on each of the inner packages allowing the return
of the Proposal unopened in the event of revision or withdrawal prior to Bid Closing or late delivery or,
in the case of the Financial Proposal, the Proposal not reaching the Third Stage Evaluation.
4.20 Modification and Withdrawal of Proposal
At any time prior to Bid Closing a Bidder may modify or withdraw its Proposal after submission,
provided that the modification or withdrawal is received in writing by CPC prior to Bid Closing and
complies with the following:
a) A Bidder’s modified Proposal shall be prepared, sealed, marked and delivered in accordance
with the requirements for submission of Proposals, including those specified in Section 4.19
(including Proposal Security), with envelopes additionally marked "MODIFICATION". On
receipt of the modified Proposal CPC shall return to the Bidder its prior unopened Proposal
(including the original Proposal Security), if the Bidder so requests in writing.
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b) A Bidder may request in writing that its unopened Proposal be withdrawn and, provided such
request is received prior to Bid Closing, such Proposal (including Proposal Security), shall be
returned to the Bidder. Withdrawal of a Proposal during the interval between the Bid Closing
and before the expiration of the period of Proposal validity specified in the Proposal Letter will
result in the forfeiture of the Proposal Security pursuant to Section 4.16 Proposal Security.
c) No bid can be modified subsequent to the deadline for submission of bids.
d) No bid shall not be allowed to withdraw in the interval between the deadline for submission of
bids and the expiry of the period of bid validity.
In case of non-compliance to above provisions, bid security will be forfeited.
4.21 Bid Closing
Bid Closing shall be 11:00 am Sri Lankan standard time on 18/06/2021. Proposals must be received by
CPC at the address stipulated in Section 4.3 by Bid Closing.
Proposal submission must be made to the address specified in Section 4.3 by either of the following
methods:
(i) Hand-delivery
(ii) Courier
Proposals submitted by means other than I or II above will not be accepted.
CPC may, at its sole discretion, extend the deadline for submission of Proposals by issuing an
Addendum.
4.22 Unsolicited Supplementary materials
It is the sole responsibility of the Bidder to comply with the provisions of this RFP for submission of
Proposals.
Except as specifically provided in the RFP or unless expressly and in writing asked for by CPC, no
supplementary material / document submission will be entertained by CPC after the stipulated date
and time of submission of Proposals mentioned in the RFP, or in any Addendum / extension notice, if
any, and evaluation will be carried out only on the basis of materials/ documents received within the
stipulated date and time of submission. Unsolicited material, if submitted, will be summarily rejected.
4.23 Proposal Opening - Technical Proposals
For all Proposals properly lodged with the BID Opening Committee, the envelopes containing the
Technical Proposals, the corresponding Proposal Securities will be opened at the offices of CPC
immediately following the Bid Closing. Bidders choosing to attend the opening shall sign a register
evidencing their attendance.
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At the opening of the Technical Proposals, BID Opening Committee will examine the Proposals and
record Bidders’ names, any withdrawals, the presence or absence of Proposal Securities, whether the
documents have been properly signed and complete and such other details as CPC may consider
appropriate. BID Opening Committee will prepare minutes of the openings of the Technical Proposals
and will immediately announce:
a) the names of the Bidders;
b) the value of the Proposal Security and the name of the issuing agency;
c) whether both the technical and financial proposals have been received.
Information of a commercially sensitive nature to each Proposal will not be disclosed.
Proposals for which a notice of withdrawal has been received pursuant to Section 4.20 will not be
opened.
Financial Proposals shall be held by CPC pending their opening at the start of the Third Stage
Evaluation. In the case of the Financial Proposals, the Proposals not reaching the Third Stage
Evaluation shall be returned unopened.
4.24 Proposal Opening - Financial Proposals
Financial Proposals of the Bidders whose Technical Proposals have passed the First Stage Evaluation
(Responsiveness Test specified in Annexure – 1 A1) and Second Stage Evaluation shall be opened at
the office of CPC on a date to be announced later. Those Bidders whose Technical Proposals have
passed the First Stage Evaluation and Second Stage Evaluation and wish to attend the opening of the
Financial Proposals, may do so.
4.25 Confidentiality
After Proposals have been opened, all information relating to the examination, clarification, evaluation
and comparison of Proposals and recommendations concerning the short listing of Bidders and award
of the Project shall not be disclosed to Bidders or other persons not officially concerned with such
process except as provided for herein.
Neither the GOSL nor CPC nor any Government Agency, nor any of their Representatives will be liable
for any loss or damages resulting from any disclosure before, during and after the bidding process.
Any effort by a Bidder to influence the GOSL, CPC or any Government Agency or any of their
Representatives in the process of examining, clarifying, evaluating and comparing Proposals, and in
decisions concerning award of the Project, may result in the rejection of the Bidder’s Proposal and
forfeiture of the Proposal Security.
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5 PROPOSAL REQUIREMENTS
5.1 Complete Proposal
The complete Proposal shall constitute two principle packages, Technical Proposal and Financial
Proposal. Bidders shall clearly understand the difference between the Technical Proposal and Financial
Proposal. Any information related to the Tariff and any document containing such information shall
be included in the Financial Proposal only. Inclusion of such information in the Technical Proposal
may result the Bid as non-responsive. The Bidder shall enclose its Technical Proposal and its Financial
Proposal in separate sealed envelopes as specified in Section 4.19 Proposal Format, Marking, Sealing
and Submission.
5.2 Technical Proposal
The Technical Proposal shall demonstrate a sound knowledge of the requirements of the Project, an
understanding of the obligations of the Company, and the capacity and capability of the Company to
undertake the Project in compliance with the Project Agreements.
The Technical Proposal shall be submitted under cover of a letter that shall be in the form specified in
as per Volume II Annexure – 2 B1 - Technical Proposal Letter. The information provided in the
Technical Proposal shall be presented in the formats specified including those provided in Volume II
of this RFP. Failure to provide this information in full and in the forms specified may result the
Proposal as non-responsive.
The Technical Proposal shall respond to the request for information under this Section and other
provisions of this RFP (unless the information forms part of the Financial Proposal). To the extent that
the forms do not accommodate information requested in the RFP (other than information forming part
of the Financial Proposal), then Bidders shall append such information to the Technical Proposal.
Bidders may also submit such other documents as may further demonstrate their ability to undertake
the Project in accordance with the Project Agreements.
5.2.1 Functional Requirement
The solution provided by the Bidder should be in line with the Minimum Functional Specification
provided in the RFP.
5.2.2 Organizational, Staffing and QA Plan
The Bidder shall submit a detailed organizational chart, staffing plan and proposed quality assurance
program in accordance with the requirements outlined in Volume II Annexure – 1 A6 - Bidder’s
Organizational, Staffing & QA Plan.
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5.2.3 Health, Safety, Environment and Community
Bidder shall confirm that it, and its subcontractors performing Works for the purposes of the Project
Agreements, have existing, proven, Health, Safety and Environmental (“HSE”) manuals and
procedures that adequately cover all aspects of the Works including ongoing Operations and
Maintenance requirements. Bidder shall include a copy of Bidder’s HSE policy in the bid submission.
Project Risk Management Plan
Bidder shall submit a Risk Management Plan outlining the risk assessments and mitigation measures
to be performed.
5.2.4 Operation and maintenance plan
The bidder shall submit an operation and maintenance plan during the bidding stage.
5.2.5 Affirmations relating to the Financial Proposal
In order to substantiate the Bidder’s (Lead Member in case of consortium) financial status
a) Bidders shall include with their Technical Proposals a formal affirmation in relation to its
Financial Proposal. Such affirmation shall be in the form specified in the attachment to the
Volume II Annexure - 2 B1 - Technical Proposal Letter.
b) Bidder (Lead Member in case of consortium) shall demonstrate a minimum rating of at least an
investment grade rating by S&P (Standard & Poor) or Moody’s or Fitch.
c) In the case of consortium, the Other Member shall demonstrate a minimum rating of at least
an investment grade rating by S&P (Standard & Poor) or Moody’s or Fitch.
d) The required S&P, Moody’s or Fitch rating may be satisfied by the rating of a parent (or holding)
company, provided that, such parent (or holding) company held majority equity share in the
relevant member of Applicant.
5.2.6 Project Execution Schedule
The Bidder shall submit a Project Execution Schedule pursuant to the requirements set out in this
Section. The Project Execution Schedule shall provide a realistic program by which the Pipeline should
be commissioned and operational.
Provided in Volume II Annexure – 1 A8 - Project Execution Schedule is the project milestone schedule
format.
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5.2.7 Minimum Guaranteed Offtake (MGO)
For the purpose of this RFP CPC together with CEB has provided a Minimum Guaranteed Offtake
(MGO) to aid the Bidder in calculating its quoted prices and also for the payments made to the
successful Bidder during the validity of the Project Agreements.
The yearly minimum gas offtake by CEB through CPC are as follows:
Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Minimum
Guaranteed
Offtake
(in million
MMBtu)
38 38 46 35 39 44 48 45 50 50 48
The start date is (Time 0.00) 1st of January of Each Year and the last Day is midnight (Time
24:00) 31st of December the same year.
Partial years are to be pro rata based on 1/365days * Minimum Guaranteed Offtake *
remaining days of that year.
In the case of delayed start date the final year after 2033 will be a pro rata of 45 million
MMBTU Guaranteed offtake
5.3 Financial Proposal
Bidders shall complete the Financial Proposal strictly in accordance with the RFP and, where specified,
the required information shall be provided in the requested format including those formats defined in
Volume II Annexure 3. The Financial Proposal shall include:
(i) Financial Proposal Letter
(ii) Confirmation of Net Worth by the auditor of the entity, and
(iii) completed forms and other information as required pursuant to this RFP, and
(iv) any additional documents as may be required to meet specified information
requirements or to demonstrate the Bidder’s capacity to undertake the Project in
accordance with the Project Agreements.
(v) Financial Data form Volume II Annexure – 3 C4.1 should be duly signed by the Bidder.
Failure to provide such information in full shall be cause for rejection of the Proposal on the basis of
non-responsiveness.
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5.3.1 Tariff
Bidder’s proposed tariff should be in the form of USD per MMBTU. The Tariff includes only Fixed Rate
(RF):
Fixed Rate RF -
o Fixed Rate component of the tariff shall cover the capital cost of the Pipeline and ORF,
debt service cost, return on equity, fixed and variable operation and maintenance cost
and any other fixed costs.
o RF is not subject to escalation
o Bidder should quote the Fixed Rate (RF) in USD per MMBTU derived based on the
Minimum Guaranteed Off Take as given in – Section 5.2.6 above
o Bidder shall not be paid any extra amount under Fixed Charge due to excess Offtake of
gas above the Minimum Guaranteed Offtake
The Tariff structure and mechanisms specified in the PS Agreement will apply irrespective of
the Bidder’s Technical Proposal.
Refer Clause 4. “Tax Liability” under Schedule 6 – “Agreed Rate and Adjustments” of the PS
Agreement for taxation.
5.3.2 Payment mechanism
The Fixed Charge shall be paid in full as per the conditions laid down in Article 13, Schedule 2 and
Schedule 6 of the PS Agreement.
5.3.3 Project Cost
Refer Clause 5.3.1 for the Fixed Rate of the tariff structure pertaining to the recovery of capital cost,
debt servicing, return on equity, fixed and variable operation & maintenance costs and any other costs.
5.3.4 Financing Plan
Bidders shall provide a detailed Financing Plan for the Project prepared in accordance with the
requirements Volume II Annexure – 3 C5 - Financing Plan. The Financing Plan shall be developed in
collaboration with the Bidders’ Financial Advisors and lenders and will be evaluated according to its
detail, level of development and bankability.
The Company shall not be permitted to pass interest or exchange rate risk through the PS Agreement
to CPC other than to the extent allowed under the respective Project Agreements. Bidders shall offer
fixed interest rates for the debt finance for the Project in their proposal.
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5.3.5 Payment for Supporting Cost Data
Bidders may be required to justify their calculations of supporting costs and provide supporting
documentation and cost data, as requested. Such information provided by the Bidder will be treated
as confidential.
The contracted Fixed Charge and any other scheduled payments shall be paid in accordance with the
terms and conditions of the PS Agreement. All payments in respect of the Facility will be calculated
and paid in USD.
5.3.6 Deviations from the Project Agreements
Should the Bidder wish to propose non-material deviations from the drafts of the Project Agreements,
they shall be entered into the form provided as Volume II Annexure – 3 C3 - Deviations to the Project
Agreements. Each proposed deviation shall be described and explained. The Bidder shall also specify
in “mark-up” from the precise wording of the amendment it proposes to the relevant Project Agreement
provision.
The Bidder shall confirm in its Proposal its acceptance of, and willingness to execute, the Project
Agreements without amendment except only the amendments made prior to Bid Closing and the non-
material deviations noted in the Volume II Annexure – 3 C3 - Deviations to the Project Agreements.
CPC has the sole discretion to interpret a deviation proposed in the Volume II Annexure – 3 C3 –
Deviation to the Project Agreements as non-material or material.
The bidder shall provide the value of the non-material deviations in the above form in USD/MMBTU.
The total of the proposed deviation should be less than 5% of the Fixed Rate, RF. If the
total of the proposed deviation is more than 5% of the Fixed Rate, the bid shall be
rejected.
6 PROJECT AGREEMENTS
The draft Project Agreements given in this RFP Document are:
(i) Draft BOOT Contract for Pipeline System (PS Agreement) – Bidders may be required
to justify their calculations of supporting costs and provide supporting documentation and cost
data, as requested. Such information provided by the Bidder will be treated as confidential. The
contracted Fixed Charge and any other scheduled payments shall be paid in accordance with
the terms and conditions of the PS Agreement. All payments from the Facility will be calculated
and paid in USD.
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(ii) Draft Implementation Agreement (IA) – The RFP provides a draft Implementation
Agreement in the Volume IV. The Company shall enter into the Implementation Agreement
with GOSL and CPC.
7 QUALIFICATION REQUIREMENT FOR BIDDERS
7.1 Composition of Bidder
The Bid shall conform generally to the terms and conditions given in the bidding documents. Bid will
be rejected in case services offered do not conform to the required parameters stipulated in the PS
Agreement. Notwithstanding the general conformity of the Bid, the following requirements will have
to be particularly met by the Bidder without which the same will be considered non-responsive and
rejected:
(i) A Bidder shall be a company, corporation, firm, Joint Venture Company duly registered under
the laws of its country or a consortium of such companies, corporations, firms or Joint Venture
Companies.
(ii) The Bidder shall hold at least 51% (fifty one per cent) of the subscribed and paid up equity
capital of the SPV at all times for a minimum period of 5 (five) years from the Commercial
Operation Date.
(iii) In the case of the consortium the clause 4.7 is governed and the Bidder shall nominate a Lead
Member. The Lead Member shall undertake to retain no less than 26% (twenty six per cent) of
the total required equity for the Project (which shall be at least 26% (twenty-six per cent) of the
equity capital of the Pipeline Company) for not less than 5 (five) years after the date of
Commercial Operation, The Lead Member shall submit an undertaking satisfactory to CPC that
it will maintain not less than 26% (twenty six per cent) the required equity for the Project (which
shall be at least 26% (twenty-six per cent) of the equity capital of the Pipeline Company) for a
period of 5 (five) years from the Commercial Operation date. Holding of retain no less than 26%
(twenty six per cent) of the total required equity for the project for not less than 5 (five) years
after the Commercial Operation date shall be included in the Article of Association of the
Company.
Each of the Other Members shall hold and maintain at least 10% of the total subscribed and
paid-up equity capital for the Project (which shall be at least 10% (ten per cent) of the equity
capital of the Pipeline Company) for not less than 5 (five) years after the commencement of the
Commercial Operation Date.
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(iv) In the case of a consortium the Bidder shall provide in the Proposal details of role of each
Member in relation to the Project, their intended equity commitment and the organization of
the venture and a memorandum amongst the Members demonstrating their commitment to
the Project and the equity capital contributions that may be required of them. All the members
of the consortium shall sign the Bid Proposal so as to legally bind all members jointly and
severally. The Bid Proposal shall be submitted with a copy of the consortium agreement
providing jointly and severally responsible with respect of the Project.
Refer Section 4.7 Consortiums for details of the consortium.
7.2 Technical Capability
(i) Bidder shall have own gas/oil pipeline network projects worth of cumulative of USD
200,000,000 (two hundred million) or above during last 7 (seven) years ending Bid closing
date. If a Bidder is a consortium/joint venture, all partners combine can meet this requirement.
In the case of a consortium, members of the consortium who claim the experience of owning
gas/oil pipeline network project shall have a minimum of 26% (twenty six per cent) equity in
the said gas/oil pipeline network project at least for a period of 5 (five) years.
or
The Bidder as the primary entity EPC contractor shall have carried out a gas/oil pipeline
network projects of cumulative value of USD 200,000,000 (Two hundred million) or above
similar to the scope of this Project including at least 20 (twenty) km of subsea pipeline during
last 7 (seven) years ending Bid closing date. If a Bidder is a consortium/joint venture, all
partners combine can meet this requirement. Similar nature of jobs means construction of
oil/gas pipelines of size 8” NB or above as per ASME B 31.8 / ASME B 31.4 or equivalent
standard.
(ii) The Bidder shall provide expression of interests from the intended EPC contractors one of
whom will be selected as the EPC contractor for the Construction of the pipeline network by the
Company. Such EPC contractors should have constructed minimum ten (10) nos. gas/oil
pipeline networks worth of USD 100,000,000 (One hundred million) or above, from which at
least 20 km of length shall be subsea gas/oil pipeline.
(iii) The Bidder shall provide expression of interests from the intended O&M contractors one of
whom will be selected as the O&M contractor for the Operation & Maintenance of the pipeline
network by the Company. Such O&M contractor should have minimum 2 (two) years of past
experience in operating and managing a Natural Gas transfer pipeline.
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Note: (a) Documentary evidence in support of the above jobs in the form of completion certificates
from the clients are to be submitted, failing which the offers will be rejected.
(iv) The Bidder must comply with all clauses / requirements of the bid document as specified under
various sections and submit the requisite documents as specifically asked for, failing which the
offer is liable for rejection. However, to ascertain the substantial responsiveness of the Bid, the
CPC reserves the right to ask the Bidder for clarification in respect of clauses covered under Bid
Evaluation Criteria/Bid Rejection Criteria also and such clarifications fulfilling the Bid
Evaluation Criteria/Bid Rejection Criteria clauses in full must be received on or before the
deadline given by the CPC, failing which the offer will be rejected.
7.3 Financial Capability
(i) Any single Bidder or in the case of the Bidder is a consortium, each member of the consortium
shall demonstrate by certified audited accounts, a Net Worth that is equal to or in excess of USD
15 (Fifteen) million in two of the last 3 (three) fiscal years (2019, 2018 and 2017). In the case of
a consortium, the net worth requirement shall be on a proportionate shareholding basis,
calculated each member of the consortium as USD 15 (Fifteen) million by the percentage of
such member’s equity share commitment.
(ii) The Bidder shall have availability of or access to liquid assets, line of credit from licensed banks,
sufficient to meet cash flow requirement which is 5,000,000 (five million) USD. In case of a
joint venture/consortium one partner must meet at least 40% (forty per cent) of the above
requirement. Documentary evidence in support of meeting the cash flow requirement are to be
submitted, failing which the offers will be rejected.
(iii) The certified audited accounts for the last three fiscal years are as follows.
• Financial year ending March 31 or June 30 or September 30 or December 31, 2019 (Year 1)
• Financial year ending March 31 or June 30 or September 30 or December 31, 2018 (Year 2)
• Financial year ending March 31 or June 30 or September 30 or December 31, 2017 (Year 3)
(iv) Any single Bidder or in the case of the Bidder is a consortium, the members of the consortium
shall demonstrate by certified audited accounts that each can invest the agreed equity in the
Pipeline Company.
(v) The Bidders shall provide the information on financial capability in the format given in the
Volume II Annexure -2 B3 - Financial Criteria
Each Bidder/ Applicant is required to go through the data required in section 4.7, 4.8, 4.9 and Section
7 and ensure completeness of information in the submitted Proposal.
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Note: For the purpose of this RFP
“Net Worth” shall mean (Subscribed and Paid-up Equity + Reserves) less (Revaluation
reserves + miscellaneous expenditure not written off + reserves not available for distribution to
equity shareholders).
8 EVALUATION PROCEDURE
8.1 Outline of Evaluation Procedure
The evaluation process is a 3 (three) stage process:
a) First Stage: Responsiveness - the Proposal is reviewed for completeness and substantial
responsiveness in accordance with the Responsiveness Test specified in Annexure – 1 A1
(Responsiveness Test).
b) Second Stage: Technical Proposals – For those Proposals that satisfy the first stage evaluation
requirements, the Technical Proposals are evaluated to verify whether they meet the
requirements of the RFP, and in particular whether the proposed Project complies with the
Minimum Functional Specification.
c) Third Stage: Financial Proposals – the Financial Proposals of those Proposals meeting the
required standards of the first and second stages will be opened and evaluated. The Bidder with
the highest ranking will be invited to discuss terms for executing the Project Agreements. In the
event of failing to execute the Project Agreement with the invited Bidder, the next ranked Bidder
may be invited to discuss terms for executing the Project Agreements.
8.2 Clarification of Proposals
During the examination, evaluation and comparison of Proposals, CANC may, at its discretion, ask the
Bidders for clarification of their Proposals. Request for clarifications and responses shall be in writing
and no change in the Tariff or substance of the Proposal shall be sought, offered or permitted.
8.3 Right to Reject Proposals
The GOSL/CPC reserves the right to accept or reject any Proposal and to annul the bidding process and
reject all Proposals at any time prior to the signing of the Project Agreements, without thereby incurring
any liability to the affected Bidder or Bidders. Bidders shall not have any recourse against CPC, GOSL
or any GOSL Agency or their representatives for either rejection by the GOSL/CPC or failure to execute
the Project Agreements for any reason whatsoever.
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The GOSL/CPC reserves the right to reject the Proposal of any Bidder who has qualified on the basis of
misrepresented, suppressed or incomplete information.
8.4 Deviations, Reservations, and Omissions
During the evaluation of Proposal, the following definitions apply:
a) “Deviation” is a departure from the requirements specified in the RFP;
b) “Reservation” is the setting of limiting conditions or withholding from complete acceptance
of the requirements specified in the RFP; and
c) “Omission” is the failure to submit part or all of the information or documentation required
in the RFP.
8.5 Non-material Non-conformities
a) Provided that a Proposal is substantially responsive, CPC may waive any non-conformities in
such Proposal that do not constitute a material deviation, reservation or omission.
b) Provided that a Proposal is substantially responsive, CPC shall rectify nonmaterial
nonconformities related to the Tariff. To this effect, the Tariff shall be adjusted, for comparison
purposes only, to reflect the price of a missing or non-conforming item or component.
8.6 Correction of Arithmetical Errors
Provided that the Bid is substantially responsive, CPC shall correct arithmetical errors on the following
basis:
a) If there is an error in a total corresponding to the addition or subtraction of subtotals, the
subtotals shall prevail, and the total shall be corrected; and
b) If there is a discrepancy between words and figures, the amount in words shall prevail, unless
the amount expressed in words is related to an arithmetic error, in which case the amount in
figures shall prevail.
If the Bidder that submitted the lowest responsive bid does not accept the correction of errors, its bid
shall be disqualified, and the Bidder shall stand forfeited of the Bid Security.
8.7 First Stage Evaluation: Responsiveness
In the First Stage Evaluation of Proposals, CANC will determine the responsiveness of each Proposal
to the mandatory requirements as set out in Volume II Annexure-1 A1.
A Proposal may be disqualified and excluded from further consideration for a failure to meet all
conditions of this Section or for any other valid reason including those listed below:
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Failure to be responsive, as determined by the Responsiveness Test. Responsiveness
criteria to be met under the Responsiveness Test are set out in Volume II Annexure
- 1 A1.
Failure to submit supporting documentation or any other clarification or any documents
requested by CANC within the required time frame.
Material misrepresentations in the Proposal.
Illegal conduct or attempt to influence the GOSL/CPC, or any Government Agency or
any of their Representatives in their evaluation of a Proposal other than by means
expressly sanctioned in the RFP.
Determination by CANC that the Bidder is unlikely to be able to fulfil the terms or
conditions of the Proposals and of the Project Agreements.
Proposals accepted by CANC in accordance with these principles will qualify for the second stage of the
evaluation. If a Proposal is found to be not substantially responsive, it will be rejected by the CANC
and may not subsequently be made responsive by correction or withdrawal of non-conforming
deviations or reservations.
8.8 Second Stage Evaluation: Technical Proposals
8.8.1 Compliance with Minimum Functional Specification
The second stage evaluation will be conducted to confirm compliance with the Minimum Functional
Specification and with the CPC’s other obligations as set out in the Project Agreements. The Proposals
will be assessed according to their technical compliance with the Project Agreements and the Bidders’
satisfactory responses to the RFP information requirements. Among the issues to be satisfied are:
i) Facility Design Requirements
The Technical Proposal shall include an outline design of the facility conforming to
the Minimum Functional Specification.
Expressions of Interest shall be included from the prospective suppliers of Pipeline
confirming their commitment to supply the required Pipeline and accessories.
ii) Construction Period Requirements
The timetable given in the RFP and the scheduled operations dates are accepted
unconditionally.
Expression of Interest is included from the proposed EPC contractor(s) to provide
the turnkey contractor service for the Project.
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iii) Operational Period Requirements
The principal O&M contractor proposed by the Bidder has past experience in
operating and managing an LNG transfer pipeline.
An Expression of Interest is enclosed from the O&M contractor(s) proposed by the
Bidder.
The Organizational, Staffing and QA Plan complies with the minimum requirements
and is complete, containing an organizational structure of the proposed Company, a
comprehensive staffing plan for the Facility and a proposed quality assurance
program.
iv) Transfer
The Transfer Plan complies with the specified minimum requirements (refer
Volume II Annexure-2 B4).
8.8.2 Correction of Errors – Technical Proposal
Where Technical Proposals contain arithmetic errors, the amounts stated in the Proposal will be
adjusted according to the following procedure:
Where a discrepancy is noted between total amounts and the sum of individual
components, the total amounts shall prevail.
Where there is a discrepancy between amounts in figures and in words, the amount in
words will govern.
If CANC wishes to further consider a corrected Proposal, it will inform the Bidder in writing of the
arithmetical adjustments made.
8.8.3 Technical Non-compliance
Where Technical Proposals contain material non-compliances, the Bidder will be disqualified from the
Second Stage Evaluation and the Proposal will be rejected. Technical Proposals containing non-
material non-compliances that are likely to result in higher costs or losses to GOSL, CEB, CPC or other
Government Agencies, the US Dollar or Sri Lankan rupee amounts of such costs or losses may be
estimated and factored into the Third Stage Evaluation. Such costs or losses may be included in a
calculation of an “evaluated tariff” for the purposes of comparing Financial Proposals.
Proposals passing the first two stages of the evaluation process will proceed to the Third Stage
Evaluation.
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8.9 Third Stage Evaluation: Financial Proposal
8.9.1 Responsiveness of Financial Proposal
Financial Proposals will be examined initially to confirm that they are responsive. Non-
responsive Proposals will be rejected. Criteria to be satisfied in meeting responsiveness are:
a) The Financial Proposal is complete, with all letters, annexes and Forms are duly
completed and properly signed as stipulated in the RFP;
b) The Financial Proposal letter is provided in the required form;
c) The letter from the Bidder’s Financial Advisor or supporting banks is provided in the
required form;
d) Tariffs have been completed and other financial data provided;
e) The Tariff provided under Volume II Annexure -3 C4- Financial Data and Annexure – 3
– C5 Financing Plan is in the required hardcopy.
f) The Bidder’s Financing Plan provided as Annexure- 3 C5 of its Proposal is
comprehensive.
g) The Financial Proposal contains a memorandum from all intended subscribers of equity
committing them to;
the full amount of the required equity, being no less than 20% (twenty per cent)
of the Project’s total capital requirements;
Disbursement of equity in accordance with PS Agreement requirements
h) The Lead Member of the Bidder shall retain at least 26% (twenty six per cent) of the
equity capital in the Pipeline Company for a minimum of 5 (five) years from Commercial
Operation Date;
Volume II Annexure – 3 C3, (Deviations to the Project Agreements), shall contain no
material deviations and signed declarations attesting to the completeness of the listed
deviations shall be provided. Immediately upon opening the Financial Proposals, the Volume
II Annexure – 3 C3 Deviations to the Project Agreements submissions will be referred to CANC
for determination on the nature of the proposed deviations and if any are determined to be
material, the Proposal will be rejected unless promptly and unconditionally withdrawn
immediately upon notification from CANC.
8.9.2 Correction of Errors – Financial Proposal
Responsive Financial Proposals will then be checked for arithmetic errors. In the event of
discrepancies, the amounts stated in the Proposal will be adjusted in accordance with the
following procedure:
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Where a discrepancy is noted between total amounts and the sum of individual
components, the total amounts shall prevail.
Where there is a discrepancy between calculated values and the values nominated in
the Bidder’s response to Annexure-1 A1 of Volume II, the values nominated in
Annexure-1 A1 shall prevail.
If CANC wishes to further consider a corrected Proposal, it will inform the Bidder in writing of
the arithmetical adjustments made.
Where the Bidder wishes to correct other errors in relation to clarifications sought by CANC
which do not alter the Bidder’s rank, CANC shall accept such clarifications.
8.9.3 Assessment and Ranking
The data provided by Bidders in all responsive Financial Proposals will be evaluated as follows:
a) An additional cost likely to be incurred by the CPC, Government or Government Agencies
as a consequence of any non-material technical non-compliances identified in the
Stage Two Evaluation will be factored and added together with the non-material deviations
proposed in Volume II Annexure – 3 C3 - Deviations to the Project Agreements, to the Fixed
Rate (RF) (refer to Volume II annexure C3) for the calculation of the evaluated tariff.
b) The Bidders’ Financing Plans will be evaluated and checked for completeness, degree of
development, level of commitment.
c) Responsive bidders will be ranked according to their Evaluated Tariff from lowest to
highest and the bidder with the lowest Evaluated Tariff shall be ranked the highest.
8.10 Short Listing and Award
The Project will be awarded to a Bidder according to the following procedure:
a) Project Committee (PC) will prepare a recommendation to CANC proposing a shortlist of the
highest-ranked Bidders from which Bidders will be drawn to negotiate the Project Agreements.
The shortlist will contain no less than 3 (three) Bidders (provided that 3 (three) conforming
Proposals are received). If necessary, CPC will ask shortlisted Bidders to extend the validity
period of their Proposals pursuant to Section 4.15 Proposal Validity. The Proposal Securities of
those Bidders who were not shortlisted will be returned.
b) CANC may hold a first round of negotiations comprising discussions with highest ranked short-
listed Bidder over a one to two weeks period. At the end of this period the list of deviations
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notified by the highest ranked short-listed Bidder in Volume II Annexure-3 C3 will be
revised in accordance with the outcomes of these discussions.
c) CANC will then have the second round of negotiations with the highest ranked Bidder to finalise
the Project Agreements. The second round of negotiations take place over a fixed period
specified by CANC prior to the commencement of the second round.
d) If no agreement is reached with the highest ranked Bidder within the fixed period, the next-
highest ranked Bidder(s) will be invited to substitute;
e) CANC may commence negotiations with the next highest ranked Bidder who has replaced the
highest ranked Bidder.
f) Upon finalization of the Project Agreements and prior to their execution, the successful Bidder
will provide the CPC with;
(i) a formal opinion from its Financial Advisor to the effect that the Project Agreements are
bankable and that financial closure pursuing to the Financial Plan will be achieved
without need for amending the Project Agreements or seeking Government support in
addition to that provided for in the RFP;
(ii) documentation from the Bidder’s lenders confirming their intended participation in the
Project; and
(iii) form the Company and provide CPC with duly certified copies of the following:
certificate of incorporation of the Company incorporation;
list of members of the Company’s board of directors;
location of the Company’s registered office;
copy of the resolution of the Company’s board of directors authorising persons to
witness the affixing of the Company’s seal.
g) reach formal agreement with its lenders, the Government, CEB, and CPC, as applicable, on the
final wording of the Direct Agreements;
h) provide CPC with the Performance Security Bond in accordance with Section 4.17.
i) Upon execution of the Project Agreements with the Company (or Companies), the remaining
Proposal Securities held by the CPC will be returned to the Bidders.
j) The CPC will have the right to reject all Proposals and not make an award.
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8.11 Cost of Finalising Project Agreements
The successful Bidder (or Bidders) shall bear all costs incurred by it in relation to any and all
negotiations and finalisation of the Project Agreements, including those of professional advisers.
Neither the CPC, GOSL nor any Government Agency nor their Representatives shall have any liability
whatsoever to the Bidder in relation to its decisions or actions in finalising and executing the Project
Agreements, whether or not it has acted in reliance on any matter supplied or represented by CPC,
Government, or Government Agency or their Representatives.
9 SCOPE OF WORK / TERMS OF REFERENCE (PIPELINE
SYSTEM, PLEM AND ORF)
Please refer Schedule 8 and 12 of the Pipeline System Agreement (Volume III) and Annexure L-1 of
this Volume.
10 TRANSFER OF PIPELINE
Pipeline Company, in consideration of the provisions of the PS Agreement, shall assign all of its rights,
title, and interest in and to the Pipeline System to CPC with good title and free from any encumbrances
as on the date falling immediately after the expiration of the PS Agreement or earlier on the date on
which this PS Agreement stands terminated. Such transfer shall be in accordance with the transfer plan
as provided by the Bidder at the time of the submission of Proposal.
The total facility (i.e. pipeline and associated systems) to be designed for a forty (40) years life span.
One and half years before the transfer of the Pipeline System, an Integrity Assessment of the Pipeline
System shall be carried out by a mutually agreed Independent Inspector appointed. The cost of the
Independent Inspector shall be borne equally between CPC and the Pipeline Company. Pipeline
Company shall be bound to rectify the Pipeline System which is acceptable to CPC before its transfer
in line with the Integrity Assessment in order to ensure the agreed life span of forty (40) years of the
pipeline system including operation of instrumented safety and metering systems subject to sub clause
10.1 of L-1-Functional Specifications of Pipeline. Failure to which, the Pipeline Company shall be held
liable to claim damages by litigation/arbitration proceedings even after the expiration of this
Agreement and however, notwithstanding the above CPC has right to forfeit the Performance Security.
Further, the Pipeline Company to provide critical spare parts recommended by OEM’s of the Pipeline
System at the time of Transferring the Pipeline.
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Annexure
L1 – Functional Specification of Pipeline
1. Codes, Standards, Regulations and Project Documents
General
The pipelines shall be manufactured and tested in accordance with the requirements of this
specification, other referenced project specifications and the latest editions of the codes, standards and
regulations given at different sections and other documents referenced therein.
Regulations
Where Sri Lankan Regulations exist, the requirements of these shall apply.
Codes and Standards
Refer Annexure – 1 A-7 of Volume II for applicable codes and standards.
Quality Assurance
The Pipeline Company shall demonstrate that they operate a quality system in accordance with an
internationally recognized standard such as ISO 9001. The effectiveness of the quality system and the
compliance with it shall be subject to monitoring by CPC and in addition, may be audited following an
agreed period of notice.
The Pipeline Company shall submit a Project Quality Management Plan (PQMP) for CPC review and
approval, and is solely responsible for ensuring that all Project activities are completed in compliance
with and approved PQMP
2. Pipeline Requirements
In general, the seamless line pipes shall be manufactured and tested in accordance with the
requirements in applicable ASTM, API or DNV codes and standards with additional requirements in
this project specification.
Mechanical and corrosion testing of the pipelines shall be conducted in accordance with Appendix B of
DNV-OS-F101 or any other relevant codes/standards given in Annexure – 1 A-7 of Volume II.
Welding of the pipelines shall be performed in accordance with ASME IX and all Non-Destructive
Testing (NDT) shall be conducted in accordance with ASME V, API 1104 or Appendix D of DNV-OS-
F101.
Manufacturing
The Pipeline Company shall prepare a Manufacturing Procedures Specification (MPS) and a
Manufacturing Procedure Qualification Test (MPQT) and submit to CPC for information prior to
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commencement of production. The MPS and MPQT shall be in accordance with the requirements in
Section 7, A600 of DNV-OS-F101 or any other applicable code given in Annexure – 1 A-7 of Volume
II.
3. Pipeline Properties
Particulars Details Details Details
From Node Kerawalapitiya landfall point
ORF ORF
To Node ORF Kelanitissa Node
(Kelantissa power plants location)
Kerawalapitiya Node 1
(Converted West Coast power plant location)
Size / Type Code
STPL 20 inch STPL 12 inches Lined STPL 12 inches Lined
Roughness (as per Feasibility study)
0.00059 0.00059 0.00059
Length 780 m 10.5 km 500 m
Max Flow Rate
380 MMSCFD 77 MMSCFD 152 MMSCFD
Operating Pressure at Outlet
45 – 70 barg 35 barg – 60 barg
40 barg – 65 barg
Operating Pressure of FSRU: 45 - 70 barg / Temperature: 10oC minimum
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4. Pipeline Route
(This is an illustration only. The project proponent shall analyse and identify the best route for the
offshore pipeline. Suggested onshore pipeline routes are given in D7 of Annexure 4 in Volume II.)
5. Material Properties
Material of the line pipes shall be API 5L X65 equivalent or any other higher grade depending on the
FEED to be conducted by the bidder.
The weldability of the line pipes shall be as follows:
Welding and welding procedures, welding personnel, handling of welding consumables, and the
execution of welding shall meet the requirements in ASME Section IX or Appendix C of DNV-OS-F101.
Requirements for the methods and procedures for the mechanical and corrosion testing are those as
given in Appendix B of DNV-OS-F101.
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6. Chemical Composition
The chemical composition of the line pipes shall comply with the requirements in ASME II, API 5L or
Table 7-3, Section 7 of DNV-OS-F101 (For delivery condition N or Q and welded pipe).
7. Pipeline Fabrication and Installation
The Pipeline Company shall carry out all Pre-Shipping Inspection of materials prior to loading onto
pipe-haul vessels. A load out inspection report shall be carried out. Pipe handling and stacking shall
conform to the requirements of the standards/codes given in Annexure – 1 A-7 of Volume II. Damaged
materials shall be repaired by Pipeline Company in accordance with the applicable codes.
The Pipeline Company shall provide, maintain and operate adequate horizontal positioning systems to
determine the location of construction and survey vessels at all times. The Pipeline Company shall
provide all necessary maps, nautical aids, navigational warnings, transponders and the like required to
properly and safely conduct the work.
The pipelines shall in general, be laid on the theoretical route as shown in Section 4 of Annexure L-1.
For pipelines start-up and lay-down, at the cable crossing, if any and at other particular areas defined
in drawings, an acoustic positioning system shall be used to assist with positioning of the pipelines in
the target areas. Pipeline Company shall exercise extreme care when anchoring with close proximity of
the as-laid pipelines or other facilities.
The lay- vessel shall be equipped with a mooring system adequate for all phases of installation including
pipe laying, pipeline initiation, laydown, and abandonment and recovery operations.
Prior to commencement of Off-shore pipeline installation work, Pipeline Company shall prepare all
necessary engineering studies and calculations including all required construction procedures.
For on-shore initiation, Pipeline Company shall prepare procedures for the HDD pipeline lay method.
On completion of the HDD section Pipeline Company shall commence normal pipe lay operations to
install the pipelines. The bidder shall specify the space requirements for HDD on the relevant onshore
pipeline sections after analyzing the entire onshore pipeline route or with along with the bid.
Pipelines cleanliness objective shall be to prevent the presence of any foreign matter in the pipelines.
All debris produced as a result of the backwelding and internal repairs shall be removed from the inside
of the pipeline.
The shore approaches shall be constructed by using an approved HDD technique.
Pipeline Company shall develop the design pipeline profile, to the criteria stated below, unless
otherwise agreed.
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8. Pipeline Design Profile
Element Criteria
Entry HDD location Within a 2m radius of the design location.
HDD exit break out location To suit design profile.
HDD entry angle To suit HDD installation method and pipe
stresses.
HDD exit angle To suit HDD installation method and pipe
stresses but not more than 4°.
Pipe bend radius To suit HDD installation method and pipe
stresses but not less than 1000m.
Pipe stress for installation, testing and operation
Not to exceed design code allowable stress value (DNV OS-F101).
Pipeline Company shall prepare detailed construction procedures for inclusion within the Installation
Manual.
Pipeline Company shall be responsible for the selection and provision of a mechanical protection
coating to the pipeline external corrosion coating. This coating may also be used to provide the pipeline
with additional weight required for optimum down hole installation and also subsea stability (if the
pipes are not concrete coated).
Pipeline Company shall specify drilling fluids, including type(s) of fluid, quantity(ies) required and
proposals for handling, storing, hydrating, mixing, pumping, recirculating and disposal. The Material
Safety Data Sheets for the drilling fluid composition shall be submitted to CPC for information.
The drilling fluids shall be designed in accordance with the requirements of the Environmental
Performance Standards for EPC Contractors. Oil based fluids shall not be permitted.
The fluids proposed shall comply with all relevant regulations. The proposed methods for final disposal
of fluids shall be in accordance with the Environmental Impact Assessment approved by CEA and the
relevant governing environmental authority. Special consideration shall be given for breaking out at
the seaward end where discharge to the sea will be inevitable. Pipeline Company shall provide methods
to reduce discharge of drilling fluid, such as using water or reduced mud concentration, subject to
approval.
Pipeline Company’s overall Environmental Management Plan (EMP) shall cover all aspects of the HDD
construction activities at the shore approach site.
The EMP shall specify environmental impacts and mitigation measures in accordance with the
requirements of the Environmental Performance Standard for BOT Contractors, but not limited to, the
following:
Site cleanliness
Site clearings and reinstatement
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Plant access and routes to and from site
Vehicle/plant wash down facilities
Water supply and storage
Drilling location water and mud spillage management
Storage of mud, recirculation and final disposal of mud, fluids and drill cuttings
HDD mud break out at exit location subsea and associated discharge to sea
HDD mud break out at locations along the drill profile other than exit points
Storage and disposal of contaminated water
Removal of surplus materials
Soil contamination, treatment, removal, and replacement
Noise control
Air emission control
Chemical storage and handling
Fuel storage and handling
Waste oil management
Pipeline Company shall perform all hydro tests as per applicable codes and standards.
At all times during the pipe lay operations, Pipeline Company shall keep an accurate record of the
sequential, as-laid pipe for the pipeline. As a minimum the following information shall be recorded:
Company name.
Project name.
Line pipe manufacturer’s name.
Purchase order number.
Pipe outside diameter (mm).
Pipe wall thickness (mm).
Pipe material grade.
Heat number.
Joint Length.
Anode or buckle arrestor joint.
Weld identification and details.
Field joint coating details.
Unique pipe identification number.
Pipeline Company shall provide all documentation and correspondence in English Language.
Documentation shall be submitted for CPC’s information.
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9. Onshore Receiving Facility (ORF)
This section provides an overview of the process & utility equipment required to be installed on the
ORF. Process equipment shall be prefabricated offsite as skidded structures with all the associated
piping and accessories pre-installed as far as possible in order to minimize the construction activity at
site. Location of the ORF will be at the coordinates 7°01'01.5"N 79°52'10.0"E.
The incoming gas is received from the pipeline at the Onshore Receiving Facilities (ORF). The various
Process & Utility equipment proposed to be installed on the ORF at Kerawalapitiya are outlined below:
1. Pig launchers and Receiver to each node (provision to be kept for the Node 2 even though the
pipeline is not constructed at this stage)
2. Pipeline filters;
3. Actuated Ball valves;
4. Fiscal Metering (for 20” pipeline and at the each delivery node);
5. Cold vent;
6. Instrument air compressor and dryer;
7. Utility water storage tank (if deemed necessary);
8. Fire water system (if deemed necessary); and
9. Diesel generator (as required).
In addition to the above, the Pipeline Company shall provide supply pressure regulation, remote
isolation, pressure protection, water bath heater systems (if required), security systems, UPS, metering
communication, local instrument room at the ORF.
From the ORF, the gas will be distributed to the Project’s end-users via pipeline(s). Pressure let down,
preheating and cold recovery requirements shall be the responsibility of the gas end users.
10. General Requirements
10.1 Design Life
The design life shall be achievable with minimal on-site maintenance and optimal availability. All
components which for reasons of practicality, cost-efficiency are unable to meet the required design
life shall be identified as soon as possible. Their expected services life shall be informed to CPC and
provision made in system design for maintenance to extend component life or routine change out.
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10.2 Human Factors Engineering
The Pipeline Company shall ensure that human capabilities, limitations and needs are considered in
the design and layout of the equipment. The intention is to improve safety, health, efficiency and
comfort of the operator.
10.3 Hazardous Area Classification
All instruments, equipment, materials and installation methods shall comply and fully satisfy the
statutory requirements for the area classification identified on the package specifications / datasheet.
All instruments are to be certified as suitable for use in a Zone 1, Gas Group IIB, and Temperature Class
T3 hazardous area as a minimum.
The installation of all electrical equipment in hazardous area shall comply with the relevant
standards/codes in Annexure – 1 A-7 of Volume II.
10.4 Availability and Reliability
The overall availability and reliability of the complete package shall be demonstrated by the Pipeline
Company. The Pipeline Company shall furnish it’s best estimates of Mean Time Between Failures
(MTBF) and Mean Time To Repair (MTTR) for the equipment concerned.
In making assessments of the package availability and reliability, the Pipeline Company will need to
estimate maintenance and repair times. For the purpose of making such estimates, the Pipeline
Company may assume that the spares holding is in accordance with the submitted recommendations
unless otherwise stated. In the case of failure modes, which make a significant contribution to the
overall unavailability, the Pipeline Company may be required to demonstrate that their assumed repair
times can be achieved.
10.5 Design Document Order of Precedence
In the event of any conflict arising between this Specification and other documents listed herein, refer
comments to the CPC for clarification before design or fabrication commences. The order of precedence
that applies is as follows:
Applicable Statutory Codes and Standards
International Codes and Standards
Project Basis of Design
Project Scope of Work document
This Specification
10.6 Plot Layout, Piping Specification breaks
The ORF plot layout shall be optimized considering operability and safety in view. The Piping will
consider the Insulation joints, specification breaks suitably and adequately as per good engineering
practices.
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11. Documentation
The Pipeline Company is responsible to provide all necessary documentation for the equipment items
to have a smooth, trouble free and safe operation which shall include, as a minimum, the
documentation listed below. The Pipeline Company is responsible for all documentation in strict
accordance with the requirements of this Specification. Further details on documentation
requirements, including a full Vendor Data Requirements List (VDRL), shall be provided.
Drawings and documentation to be provided for the following main project phases as a minimum:
1. As-Built following factory testing.
2. As built (Following commissioning)
Note: As-built (2 above) drawings to accompany equipment following factory testing. The Pipeline
Company shall carefully schedule and control this revision of drawings to ensure drawing accuracy but
prevent delay in shipment following factory testing.
12. Purchase Order Documentation
The following documentation shall as a minimum be included in the Pipeline Company’s scope of
supply:
Document List
Project Schedule
Inspection and Test Plan
Equipment Datasheets (all instruments and equipment)
General arrangements
Piping and Instrument Diagrams (P&IDs)
Termination Diagrams
Lifting detail drawings
Weight Data Sheet
Sizing Calculations
Test Procedures
Installation Procedures
Maintenance Procedures
Recommended Spares List
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Certification
Test Results
Shipping and Handling Procedures
13. Material Specification
All materials that require certification shall be identifiable against their certification and as a minimum
comply with the following requirements:
• Pressure containing or load bearing parts EN10204, type 3.2
• Gaskets and non-load bearing parts EN10204, type 2.2
14. Field Transmitters
Transmitters measuring variables used in calculations performed by the flow computers shall interface
directly with the flow computers using digital communications e.g. HART to avoid unnecessary
inaccuracies from conversion to and from 4-20mA.
15. Actuated Ball Valves
Valves shall be in accordance with the appropriate piping class and valve material specification.
Actuators shall be pneumatic, powered from instrument air.
16. Spares and Consumables
The Pipeline Company shall identify and supply the following spares:
Pre-commissioning, commissioning and start-up spares
Recommended spares list for 2 (two) years operation
17. Special Tools
The Pipeline Company shall identify and possess all necessary special tools required to perform routine
maintenance and any other recommended tools for specialized procedures.
18. Pig Receiver
Pig Receiver shall be installed in ORF area for the incoming pipeline from SRT. The Pig Receiver shall
be provided to allow pigging of the pipeline. As the export gas is non-corrosive and does not contain
liquids, it is expected that pigging shall only be required on initial commissioning and afterwards only
for intelligent pig surveys as required by the Regulatory Authorities for inspection of the pipeline.
Pig Receiver shall be designed, fabricated, tested and inspected in accordance with ASME Section VIII,
Div. 1. Pipeline Company will provide Pig Receiver design data. The design of the Pig Receiver will be
suitable to meet the throughput and design parameters of the incoming pipeline.
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Pig Receiver shall be oriented horizontally and fitted with a vertically hinged quick opening end closure,
pressure locking device and safety devices. Given pigging requirements are envisaged to be infrequent,
the Pipeline Company, may provide tie-ins for pig receipt and utilize a temporary receiver as required
in preference to installation of a permanent equipment. In the event that a temporary arrangement is
pursued, supply of all equipment for pipeline pigging as needed shall be the responsibility of the
Pipeline Company.
19. Pipeline Filters
The incoming gas shall be filtered to remove particles which may damage the downstream flow meters.
There should be two filters, fully spared (one duty and the other one as standby). Each filter shall be
equipped with a pressure differential gauge to allow for online filter monitoring. A differential pressure
transmitter shall initiate an alarm to alert operator to changeover to the other filter. This will be a
manual operation.
A pressure safety valve (PSV) is installed at filter outlet to protect the filter from overpressure
The filters shall be vertical pressure vessel, basket or multiple cartridge type with a quick opening
closure for basket change out. The baskets shall be cleanable and reusable. Design data for the filters
shall be provided by Pipeline Company.
The Gas Filters shall be designed to achieve removal of solid particles larger than 1 micron at 100%
filtration efficiency.
Each filter element shall be sized according to operating and design conditions. Pressure drop across a
filter shall be 1 barg (maximum) at dirty condition. The gas filter shall be vertical pressure vessel
designed as per ASME Section VIII Div. 1.
20. Fiscal Metering
Design and manufacture of Fiscal Gas Metering System shall be in accordance with this specification
unless otherwise agreed in subsequent written communication between Pipeline Company and CPC.
The Fiscal Gas Metering System shall be factory assembled package ready for trouble free safe
operation. The fiscal gas metering system shall be complete with, but not limited to, the following
equipment and requirements:
Fiscal application approved, redundant, multi-path ultrasonic flow meters
Gas Chromatograph and sampling system (if necessary)
Isolation and switching valves
Flow computers
On skid piping, instrumentation and equipment
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Meter proving
Protective coating
Packaging and marking for transport
Start up and commissioning spare parts
Special tools
Consumables (including calibration and carrier gases) for operation
Documentation, drawings, and certification
The Pipeline Company shall allow CPC 8 access to such meters.
21. Metering Skid Overview
The fiscal gas metering system shall comprise two 100% redundant, parallel, ultrasonic metering runs
complete with flow conditioners, pressure and temperature measurement instrumentation, pipework,
valves and support steelwork and a remote fiscal gas flow metering panel housing independent run
flow computers. The system shall also include a gas chromatograph, hydrocarbon dew point
analyser(s), water content (dew point) analyser and the associated sample extraction and conditioning
facilities. The Pipeline Company shall allow access to such meters.
22. Metering Skid Operation
The flow meters will normally be operated as parallel runs with only one run online at a time.
Changeover between the flow metering runs shall be achievable remotely through commands initiated
from the Process Control System (PCS) and activated through the flow metering computers.
Configuration of the changeover sequence shall ensure that a gas flow path from the inlet to the outlet
of the skid is maintained at all times during changeover.
The parallel ultrasonic metering runs shall be capable of being lined up serially via a skid based
crossover complete with two full bore isolation ball valves, to facilitate cross-checking of meter
indications. Changeover between parallel and series operation of the flow meters shall be achievable
remotely through commands initiated from the Process Control System (PCS) and activated through
the flow metering computers.
The flow meter in service shall determine actual (uncorrected) gas flow by measurement of gas velocity.
Gas compressibility, density and calorific (heating - LHV) values shall be calculated by the Gas
Chromatograph from the measured compositional data. Using this and the flowing pressure and
temperature measurements, the flow computer shall calculate standard volumetric flow rate, energy
and mass flows.
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Measurement of the hydrocarbon dew point shall be through a dedicated hydrocarbon dew point
analyser system interfacing to the PCS. Measurement of water content shall be through a single water
content analyser (water dew point analyser) interfacing to the PCS.
23. Temperature Instrumentation
A temperature transmitter shall be installed on each metering run. Temperature measurement and test
thermowells shall be located in the metering runs in accordance with AGA-9. Thermowells shall be
located in the top of the pipe. Thermowell wake frequency and stress calculations shall be performed
to ASME PTC-19.3 and submitted for information.
24. Pressure Instrumentation
A gauge pressure transmitter shall be installed on each metering run.
25. Gas Chromatograph
An industrially hardened process Gas Chromatograph (GC) (as opposed to a laboratory type GC) shall
be fully integrated into the package skid and the associated control electronics may be incorporated
into the Flow Metering Computers Panel or alternately be located on the skid with the field GC
equipment. The gas chromatograph shall provide online analysis of gas composition.
The Gas chromatograph shall utilize a fast loop sample system to ensure a representative sample is
obtained. Sample collection and disposal shall be engineered suitably as per good engineering
practices. Sample disposal should be to the process cold vent system if possible. Pipeline Company shall
advise if venting to atmosphere is required. Gas chromatographs shall utilize proven technology and
have a proven track record.
The process conditions and performance requirements of the gas chromatograph shall be as detailed
in this specification and based on the process data detailed on the Project Data Sheets attached to the
purchase order.
The gas chromatograph shall be capable of compositional analysis of the following, in mol%:
a) C1 to C6+
b) Nitrogen
c) Carbon Dioxide
Calculations of the following are required to ISO 6976, The compressibility is to be calculated to AGA
Report No. 8 which shall be accessible serially:
a) Compressibility (Z)
b) Lower Heating Value (LHV)
c) Wobbe Index (WI)
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d) Relative Density (ρr)
e) Standard Density (ρs)
f) Operating Density (ρf)
g) Speed of sound in gas at Operating Conditions (Cf)
The algorithm and truncation rounding errors for computations performed by the analyzer shall be less
than ±0.0001%. This requirement shall be verifiable. The use of hydrogen, pure oxygen or gas mixtures
having compositions within explosive limits for any purpose other than as calibration sample is to be
avoided.
The analyzer shall be supplied as a free-standing unit and shall include all accessories required for
calibration and six months (minimum) operation including carrier and calibration gases. The analyzer
shall be supplied factory programmed, tested and calibrated for use on the gas. Access to software
configuration routines shall be controllable to restrict unauthorized modifications. Key lock control is
preferred; however, password control is acceptable. Network connectivity for remote configuration /
diagnosis shall be provided. Connectivity shall be ensured by the Pipeline Company using Pipeline
Company’s network..
The gas chromatograph together with its sample collection system shall be capable of providing the
following performance criteria:
a) Time between samples, including all purge and analysis phases shall be 5 (five) minutes
maximum.
b) Analyser system shall provide repeatable results within the ambient environmental conditions.
Pipeline Company shall advise if an analyser enclosure or shelter is required and include in the
tender.
c) The minimum time between automatic calibrations shall be daily. Pipeline Company shall
advise longest time allowable between automatic calibrations in order to meet the performance
requirements for this application.
d) Automatic calibration shall correct for any drift in analyser characteristics.
e) The minimum time between inspection and/or manual calibration checks shall be 6 (six)
months.
f) The analyser shall be capable of providing extensive self-diagnostic facilities, while on-line and
without impacting on the system operation or hazardous area certification status.
g) The analyser shall, as a minimum, provide a 4mA to 20mA externally-powered optically
isolated analogue signal representing the concentration range of any specific gas component as
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selected by the Pipeline Company. These shall interface with the Pipeline Company’s PCS
(HOLD).
h) The analyser shall, as a minimum, provide two user configurable volt-free contacts rated at 24V
DC, 0.5 Amps for use by others.
i) The analyser system shall interface with the Pipeline Company’s’s PCS utilising serial
communications for unit status, alarm and diagnostic information. The preferred protocol for
digital communication is PROFIBUS however MODBUS is also acceptable.
j) The analyser shall calculate and report to a minimum basic accuracy of ± 0.05% of reading the
component concentrations (mol%) of the gas.
k) The repeatability of the Gas Chromatograph shall be within the following limits (or better if
required to achieve associated fiscal gas metering performance criteria).
Table: Flow Computer I/O Listing
Component Range (mol %) Standard Deviation (mol %)
0 – 25 0.02
25 – 100 0.05
l) The uncertainty of the computed higher heating value (LHV) shall not exceed 0.025% absolute.
m) The following alarms shall be reported by the analyser, as a minimum: − Low calibration gas
pressure
a. Internal fault (eg oven temperature, electronics failure, power failure, missed component).
b. Loss of sample flow.
c. Loss of fast loop return flow.
d. Loss of utilities (eg low carrier gas pressure).
e. Pressurisation failure.
f. Hardware fault.
g. Loss of power.
26. Calibration and Carrier Gas
Pipeline Company shall supply all calibration and carrier gases inclusive of cylinders and associated
equipment e.g. valves, hoses.
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27. Analyser Shelter
To provide additional protection, ensure satisfactory performance of the analysers, and to facilitate
maintenance activities, if required Vendor shall furnish a complete analysers shelter for analyser
systems including analyser sampling system. Analyser shelter may be used when the analysers comply
with the hazardous area classification of the location and the environmental conditions where they are
installed.
28. Sample Conditioning and Sampling Systems
Sample conditioning systems shall include all components required to condition the process sample to
achieve the performance requirements for the analyser. Sample systems shall minimise the time lag
between the process sample being taken and the analysis being completed.
29. Overall Measurement Uncertainty
The Pipeline Company shall guarantee the fiscal gas metering system to measure energy flow to within
an uncertainty of < ±1.0%. This guarantee shall be valid for all flow rates between 5% (five per cent)
and 100% (hundred per cent) of the CPC’s nominated maximum “calibrated range” value and at all
specified gas pressures, temperatures and compositions. Performance shall be maintained across these
conditions without any requirement for manual adjustment.
Pipeline Company shall demonstrate uncertainty with calculations. Uncertainty calculations shall be
supplied in accordance with ISO-5168. These calculations shall address measurement uncertainties for
energy, standard volumetric, actual volumetric and mass flow and shall take into account errors from
all system components including; piping geometry, ultrasonic meters, GC, pressure and temperature
transmitters, calculations, IS isolators (if required), A/D converters, rounding errors etc.
30. Metering Runs Layout
The layout and design of the piping spools and other equipment comprising each of the metering runs
shall be identical in design and layout.
31. Ultrasonic Flow Meters
Fully spared multi-path, spool type ultrasonic flow meters shall be supplied in accordance with this
specification. The design and fabrication requirements (meter requirements, performance
requirements, individual meter testing requirements, and installation) of flow meters shall comply with
AGA Report No. 9 (Measurement of Gas by Multipath Ultrasonic Meter).
The flow meters shall have internal diameters matching the upstream and downstream metering runs.
All meter body process flanges shall be ASME 600# RF including process connections used for line
pressure measurement. Flow meter type shall have approval by an independent metrology organisation
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for use in custody transfer applications. Flow meter shall not suffer any damage or performance
deterioration due to rapid depressurisation or pressurisation of the meter runs.
32. Flow Conditioners
Flow conditioners shall be provided to achieve a fully developed flow profile at the ultrasonic meter.
The flow conditioner type shall be inherently designed to minimise the likelihood of clogging and
fouling. Flow conditioners shall be flanged spool type, not insertion sleeve type.
33. Calibration
All equipment used in the calibration of the Fiscal Gas Metering System shall have current master
calibration certification traceable to primary national standards. Appropriate calibration certificates
shall be supplied for all calibration tests.
The Pipeline Company shall perform a high pressure natural gas calibration of the ultrasonic flow
meters at a CPC approved facility. This calibration shall include each of the flow meters. There shall be
a minimum of 6 (six) calibration points evenly spread across the meter design flow range.
The following dry calibration tests shall be performed in accordance with AGA-9 and the referenced
standards:
Dimensional Measurements
Zero-Flow Verification Test (Zero Test)
The ultrasonic flow meters shall be zeroed using nitrogen to verify transit-time measuring system of
each meter. A zero-flow offset factor shall be documented. Pressure and temperature transmitters shall
be calibrated. Temperature transmitters shall be calibrated with their respective RTD’s.
34. Factory Acceptance Test (FAT)
The complete Fiscal Gas Metering System shall be subject to a Factory Acceptance Test (FAT) at the
Pipeline Company’s works in order to verify the design, construction, functional operation and
performance is fully in accordance with the requirements.
The GC interface shall form an integral part of the package FAT. The FAT shall include, but not be
limited to the functional test of all equipment and interfaces. The equipment shall be shop tested in
accordance with and will conform to the requirements of this specification and National Standards and
Codes. Tests shall be witnessed by the Pipeline Company as identified in the project quality control
plan and the test report will be shared with CPC.
35. Systems Integration Testing (SIT)
After the satisfactory completion of FAT for the Package, the Gas Metering system and other sub-
systems and their components will be shipped to, assembled and interconnected at a staging facility
nominated by the PCS Supplier and approved by the CPC. Where practical, the SIT may be conducted
concurrently with the FAT.
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36. Site Acceptance Tests (SAT)
The SAT shall be based on a sub-set of the FAT procedures supplemented by tests which can be carried
out only at site, for location, logistical or technical reasons. The tests shall be carried out in accordance
with a testing procedure specification prepared by the vendor and agreed by the Pipeline Company in
advance of commencement. The purpose of the SAT is to establish that the package equipment has
been shipped without damage, has been correctly installed, and operates reliably to specification in its
final environment. The SAT procedure shall be carried out in accordance with the requirements defined
in the following sections.
The SAT objectives are listed as follows:
Ensure that all deliverable items -hardware, software, documentation, media, interconnecting
cables, etc -are present and acceptable.
The correct functioning of the supplied package in accordance with the applicable functional
specifications, including all interfaces to other equipment and sub-systems connected to the final
power supply and earthing system.
The system operates under load conditions over the test period at or better than design availability.
The system can tolerate failure of individual modules and sub-systems and be recovered to full
function following repair and re-instatement of such items.
That all timer settings and alarm/trip set-points that may have been modified for the purposes of
FAT have been re-configured to their correct values.
That all remedial punch-list work agreed at the FAT has been satisfactorily completed by the
Supplier and the system meets its design specification in full.
The operator interface is both safe and operable with respect to the presentation of data and alarms
and the implementation of control.
The SAT shall confirm correct installation and configuration of all equipment. Any equipment added
or replaced since the FAT shall be fully tested. This shall include but not be limited to the following
activities:
Power distribution and earthing checks.
Check for ancillary equipment interference.
Check noise levels versus specification.
Check operation and performance of all connected sub-systems. In particular those not previously
tested at FAT.
Any software which has been subject to remedial work since FAT should be thoroughly retested
including any potential impacts on unmodified software. Similarly any software added since FAT
should be fully tested.
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37. Commissioning and Start-up
The CPC’s final acceptance of the equipment will be subject to a performance test acceptable to CPC
once the equipment has been installed and commissioned at Site.
38. Flow Metering Computers Panel
38.1 Panel Design – General
The flow metering computers panel design shall be in accordance with normal oil and gas requirements
for cabinets in air conditioned rooms.
38.2 Power Supplies
Power supply to the Chromatograph shall be consistent with manufacturer requirements. As far as
possible, the power supplies for the all metering runs shall remain segregated.
38.3 Flow Computers
One flow computer shall be supplied per metering run.
Each flow computer shall provide the following I/O and interfaces with the devices listed:
Table: Flow Computer I/O Listing
Device Signals Communications
Ultrasonic Flow Transmitter
Flow Pulse
Status, Diagnostic, Signal
Validity
RS-485 PROFIBUS or
Modbus RTU
Pressure Transmitter Pressure 4 – 20mA/ HART
Temperature Transmitter Temperature 4 – 20mA/ HART
Gas Chromatograph (GC)
Gas composition, Calorific
Value, Compressibility,
Standard, flowing and
relative density
Compounds to C6
GC Status
RS-485 PROFIBUS or
Modbus RTU
Digital Volt free contact
normally closed, open or
alarm
Process Control System (PCS) All instantaneous and
totalized flow values, all field
RS-485 PROFIBUS or
Modbus RTU
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transmitter instantaneous
values
Common fault
Digital Volt free contact
normally closed, open or
alarm
Output to Totaliser (Provided
on Flow Computer)
Totalised Actual
(uncompensated)
Volumetric Flow
Totalised Energy Flow
Digital Display on Flow
Computer Facia
Configuration Laptop Configuration Interface RS-485 PROFIBUS or
Modbus RTU`
Printer Local
All configuration software and associated manuals for the flow computers shall be provided for
installation on a laptop PC. All necessary interface cabling and other hardware required for
configuration shall be supplied.
At least three levels of security coded access shall be provided on the flow computer:
Table: Security Access Levels
Operator Ability to read programmed data and print
reports on demand
Technician
As per Operator plus ability to manipulate
parameters required for routine maintenance
and calibration
Engineering As per Technician plus ability to change all
constants and system configuration
For audit purposes, it shall be possible to verify all flow calculation constants and configuration
parameters whilst the meter is in service.
38.4 Calculations
The following calculated values will be provided by the GC:
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Gas compressibility to AGA-8 (Detail Characterisation Method)
Gas Lower Heating Value to ISO-6976
Gas Wobbe Index to ISO-6976
Gas Density (Operating / Standard / relative), to ISO-6976
Speed of sound of gas at operating conditions
The Pipeline Company may elect to perform some of these calculations within the flow computers. Each
flow computer shall calculate the following parameters:
Table: Flow Computer Calculated Parameters
Units
Instantaneous Totalised
Actual volumetric gas flow
rate
Acfh acf
Standard volumetric gas flow
rate
MMscfd MMscf
Gas mass flow Kg/hr Kg
Gas energy flow [M]J/hr [M]J
Full calculation execution shall be achieved every 5 seconds.
38.5 Software
Licenses for all proprietary software shall be provided to the CPC for the entire life of Project.
38.6 Reporting
Each flow computer on the Fiscal Gas Metering package shall be configured to produce automatic,
periodic and on-demand reports as required to ensure all system data, alarms and events are recorded
for gas sales, system analysis and troubleshooting purposes. Detailed system reporting features and
data shall be developed between the Pipeline Company and the CPC during the system design.
39. Piping
All piping shall be terminated and anchored at the skid edge for flanged tie-in to ORF’s off-skid piping
and shall be securely supported and not induce excessive loads on equipment within the skid. The
supports shall either be adequate for transportation or alternatively provided with temporary bracing.
All piping connections to ORFs piping including inlet, outlet, utility, and drain lines shall extend to and
be terminated at the edge of the skid. All termination points shall be clearly identified by permanently
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fixed, durable labels. Piping terminations and nozzles shall be held to the dimensions shown on the
Project Drawings.
Safety shall be of prime importance during the development of the skid mounted package equipment
and piping layouts. The skid shall be designed as safe as practically possible for the personnel using,
installing, maintaining, and testing the equipment.
40. Utilities
40.1 Cold Vent
A cold vent shall be provided to safely dispose hydrocarbon to atmosphere under maintenance or
emergency relief. The location and length of the vent shall take into account the hydrocarbon LEL limits
acceptable on the facility in the event of venting and or relief cases and the resultant heat radiation in
the event of inadvertent ignition of vent gases. The Vent Stack shall be sized for safe venting of pipeline
gas, if required due to any Emergency. Vent stack will be self-supporting type and will be provided with
a Knock-Out Vessel and a Sonic Vent.
40.2 Instrument Air Compressor and Dryer
As a part of utilities requirements for the ORF, an instrument air system consisting of the following
components shall be installed:
-Fully spared electric motor driven rotary screw compressors
Fully spared dual air dryer package (heatless type)
Pre & post filters
Instrument air receiver
40.3 Utility Water System and Fire Water System
The utility water system and Fire Water System shall be designed to meet the requirements of ORF as
per local applicable Codes and International Codes. Fire Pumps for ORF shall be designed, fabricated,
inspected and tested in accordance with NFPA 20 and local Specifications. Jockey Pumps will keep the
fire header pressurised all the time. Both the fire pumps shall be diesel engine driven. Jockey pumps
shall be electric motor driven. Fire pumps and jockey pumps will be designed as horizontal type pump.
Fire Pump Package will be installed under a shed and shall be designed for outdoor installation. Fire
water pumps will use water from Fire Water Storage Tank.
Equipment sparing requirements shall be determined by the subject to Reliability, Availability and
Maintenance (RAM) assessment.
40.4 Diesel Generator (as required)
The ORF shall receive 400-V, 50-Hz, 3 Phase electrical power. For backup Power supply Diesel
Generator shall be provided.
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40.5 Heating, Ventilation and Air-Conditioning (HVAC)
HVAC and pressurization systems shall be provided as required for the control rooms, electrical
substations.
L2 - Sri Lanka LNG Project- Preliminary EIA Report
Purpose of the report
Bidder shall obtain clearance for the Project in terms of the Central Environment Act No 56 of 1988, as
amended. This process may include obtaining clearances from various stakeholders of this project such
as Marine Environment Protection Agency (MEPA), Department of Coastal Conservation and Costal
Resources Management (CC&CRMD), Sri Lanka Land Development Corporation (SLLDC), Provincial
councils, etc.
This preliminary environment assessment is for the proposed FSRU and Liquefied Natural Gas (LNG)
pipeline from the Floating Storage Regasification Unit (FSRU) off the coast in Kerawalapitiya. In
pursuance of the principal Sri Lankan environmental Law - Central Environment Act, 1988 new
projects or expansion of any existing ones necessitates statutory prior environmental clearance in
accordance with the objectives as laid down by the Central Environmental Authority, by preparing
Environmental Impact Assessment (EIA) report.
The objective of this report is to take stock of the prevailing quality of environment, to assess the
impacts of proposed pipeline activity on environment and to plan appropriate environmental control
measures to minimize adverse impacts and the various environmental clearances required for the
same.
Project Description
This project is for design, finance, supply, delivery, erection, testing, commissioning, operation &
maintenance and transfer of Natural Gas transmission onshore and offshore pipeline system which
includes Pipeline End Manifold (PLEM), offshore pipeline from PLEM to Landfall point, Landfall
Point, Onshore Pipeline from Landfall Point to Onshore Receiving Facility (ORF), ORF, Onshore
Pipeline network from ORF to power plants at Kerawalapitiya and Kelanitissa with associated
instrumentation, metering, safety and other auxiliary systems.
The proposed regasification system is of the capacity 380 MMSCFD.
The supply of LNG (including transportation) is by an LNG Carrier Vessel (LNGC), which is to be
moored near the FSRU. LNG is then regasified on-board the FSRU and the resulting regasified LNG is
sent to the On-shore Receiving Facility via an off-shore subsea gas transmission pipeline. Pipelines
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from the On-shore Receiving Facility are then routed to the power plants located at Kelanitissa and
Kerawalapitiya.
FSRU Cargo Storage Capacity Minimum 156,000 m3
Tank Type Membrane or Moss
FSRU Tank Design Pressure 80 ~ 140kPa
Cryogenic System Design
Temperature
-163°C
Minimum Regasification Output TBC based on power plant minimum supply specification.
Nominal Regasification Output 300 MMSCFD 380 MMSCFD
Boil Off Rate Max 0.15% of the storage capacity per day
Nominal Gas Send-Out Pressure 70 bar maximum & 45 bars minimum
Minimum HP Gas Send Out
Temperature
10 ˚C
BOG Management Efficient BOG management for up to 20 days of zero send-out. No
venting allowed under normal operating conditions required.
Table 1-1: Specifications of FSRU Operation
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Description of the Environment
The land use of the project area is in the Kerawalapitiya area close to Colombo, Sri Lanka, near the
Indian Ocean Area. The topography is the sub-sea area around 700 meters from the seashore. The place
has tropical climate, characterized by high temperature, high humidity, medium to high rainfall and
short and mild winters. There is no wildlife sanctuary / national park within 15 kms from the proposed
alignment. However, sea conditions may become rough with wind speed exceeding 55 kmph at times.
Such wind speeds may hamper Ship-to-Ship operations. The actual site map can be shown as below:-
Anticipated Environmental Impacts
The major environmental issues associated with the Terminal and the associated facilities for a gas
pipeline projects are listed below:
a) Hazardous material management
b) Wastewater discharges
c) Air emissions
d) Waste management
e) Noise generation
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The detailed Impacts and proposed mitigation measures are listed in below table:
Components Phase Associated
Impacts/Risks Proposed Mitigation
Measures
Hazardous material management
Operation (Storage, transfer, and transport of LNG)
Leaks or accidental release from tanks, pipes, hoses, and pumps at land installations and in LNG transport vessels and vehicles.
The storage and transfer of LNG also poses a risk of fire and, if under pressure, explosion, due to the flammable characteristics of its boil-off gas (BOG).
Structural soundness to prevent fires and explosions during normal operations and during exposure to natural hazards.
Provisions for commissioning, overfill protection, secondary containment, metering and flow control, fire protection (including flame-arresting devices), and grounding (to prevent electrostatic charge)
Periodic inspection for corrosion and structural integrity and installation of cathodic protection system.
Formulation and adherence to global best practices for Loading/unloading activities.
Operational Phase
Rapid Phase Transition (RPT) can occur due to accidental spilling of LNG onto water at a very fast rate. The heat transfer from water to spilled LNG causes LNG to instantly convert from its liquid phase to its gaseous phase.
The large amount of energy released during RPT can cause a physical explosion with no combustion or chemical reaction. The hazard potential of rapid phase transitions can be severe but is generally localized within the spill area.
Using internationally recognized models for conducting spill risk assessment.
Early detection of gas release.
Development of spill prevention and control plan
Adequate designing of LNG storage tanks (e.g. high nickel-content welded steel inner tank and reinforced concrete outer tank; single wall tank with an external containment basin, full containment tank design)
Adequate design of the facility drainage system discharge (trough and sump system) to reduce vaporization rates to limit the overall vapour dispersion area.
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Components Phase Associated
Impacts/Risks Proposed Mitigation
Measures
Water Quality Construction Phase
Various construction activities will result in increasing the suspended solid and turbidity in drainages and channels.
In addition to this release of contaminants / wastes, loss of benthic flora and fauna and mangroves may happen
The re-suspended sediments will have negative impact on benthic fauna and fishery resource. Direct impacts on water quality arise when the sediments are contaminated.
The release of any heavy metal, hydrocarbons, or other hazardous chemicals into the water column can cause toxic effects on marine biota.
The release of organic wastes could cause localized oxygen depletion in the water column creating stressful conditions for aquatic biota.
During the construction phase there will be generation of some sewage material due to personnel involved in the construction work. The disposal of these sewage materials
Drainage management plan to prevent erosion.
Provision of waste water treatment to avoid any contamination of waterways with hazardous/municipal waste.
Regular removal of debris and waste material from site for adequate disposal.
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Components Phase Associated
Impacts/Risks Proposed Mitigation
Measures
into the marine environment will also have adverse impact on the water quality as well as marine biota.
Operation Phase
The use of water for process cooling at LNG liquefaction facilities and for re-vaporization heating at LNG receiving terminals may result in significant water use and discharge streams
drainage and storm water (from process and non-process areas), sewage wastewater, tank-bottom water (e.g., from condensation in LNG storage tanks), fire water system releases, wash down (equipment and vehicle) water, general oily waters, and other waters (e.g., hydrostatic test water).
Water conservation opportunities should be considered for LNG facility cooling systems (i.e. air-cooling heat exchangers – if applicable).
Careful selection of biocides/chemical use/chemical adhesives (if necessary), in terms of dose concentration, toxicity, biodegradability, bioavailability, and bioaccumulation potential.
Consideration should be given to residual effects at discharge using techniques such as risk-based assessment.
Grey and black water from showers, toilets, and kitchen facilities should be treated in adequate manner.
Separate treatment facility should be adopted for open drains and closed drains (process drainage with possible hydrocarbon contamination)1
Preparation of hydrotest water disposal plan with due consideration of hydrostatic water quality.
1 Firewater: Firewater from regular test releases should be contained and directed to the facility’s drainage system or to a
storage pond and wastewater treatment system, if contaminated with hydrocarbons.
Wash waters: Equipment and vehicle wash waters should be directed to the closed drainage system or to the facility’s
wastewater treatment system.
General oily water: Oily water from drip trays and liquid slugs from process equipment and pipelines should be routed to the
wastewater treatment system.
Hydrostatic testing water: Hydrostatic testing of LNG equipment (e.g., storage tanks, facility piping systems, transmission
pipeline connections, and other equipment) involves pressure testing with water during construction/commissioning to verify
their integrity and to detect potential leaks. Chemical additives may be added to the water to prevent internal corrosion.
Pneumatic testing with dry air or nitrogen may be employed for cryogenic piping and components.
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Components Phase Associated
Impacts/Risks Proposed Mitigation
Measures
Air Quality Construction Phase
Construction activities can become major sources of dust, for example earth-moving, drilling and handling of aggregates besides operation of construction equipment, which could generate fugitive emissions including combustion gases, greenhouse gases (GHGs), primarily carbon dioxide nitrogen oxides and carbon monoxide.
Dust suppression by using water sprinkling.
Offsite grading of aggregates
Operational Phase
The primary air pollutants from a LNG facility includes Exhaust gas emission, Boil-off Gas, Fugitive emission (nitrogen oxides (NOX), carbon monoxide (CO), carbon dioxide (CO2), and in case of sour gases, sulphur dioxide (SO2)).
These emissions majorly result from flaring and venting, as well as from fugitive sources as part of activities at both LNG liquefaction and regasification terminals
Air emission specifications should be considered during all equipment selection and Procurement.
Adequate maintenance of all pumps, valves and pipelines must be ensured to limit any fugitive natural gas and LPG emissions within acceptable limits
Continuous venting or flaring of boil off gas under normal operations should be avoided.
Use of vapour recovery system to avoid boil off gas emissions.
At regasification terminals, the selection of Submerged Combustion Vaporizers (SCV), Open Rack
Vaporizers (ORV), Shell and Tube Vaporizers, and Air Vaporizers should be assessed, taking into consideration baseline environmental conditions and environmental sensitive receptors.
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Components Phase Associated
Impacts/Risks Proposed Mitigation
Measures
Waste Generation
Construction Phase
Construction debris/excavated material and municipal waste generation from labour camps
Oil spills from vehicular movement and washing/vehicle maintenance facility.
Reuse of excavated material and construction debris in filling activity.
Operation Phase
The various waste generation from a LNG facility includes waste oils, oil-contaminated rags, hydraulic fluids, used batteries, empty paint cans,
waste chemicals and used chemical containers, used filters, spent sweetening and dehydration media (e.g., molecular sieves) and oily sludge from oil-water separators, spent amine from acid gas removal units
(if present), scrap metals, and medical waste, among others
Waste materials should be segregated into non-hazardous and hazardous wastes and considered for re-use/recycling prior to disposal.
Waste management plan should be prepared and adhered for storage, handling, transportation and disposal.
Noise Quality Construction Phase
Major source of noise pollution will be movement of vehicles for transportation of construction material and various construction activities.
Adherence to statutory regulations to maintain the noise level below the desired limit.
Operation Phase
Major source of noise generation at an LNG facility include pumps, compressors,
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Components Phase Associated
Impacts/Risks Proposed Mitigation
Measures
generators and their drivers, compressor suction/discharge, recycle piping, air dryers, heaters, air coolers at liquefaction facilities, vaporizers used during regasification, and general loading/unloading operations of LNG carriers/vessels
Impact on Terrestrial Ecology
Construction Phase
Construction activity will involve removal of vegetation, which may result in the destruction of natural habitat for localized flora and fauna and migratory fauna. (The detailed assessment should be carried out to understand the present ecological biota and associated impacts)
Identification of present biota, limit the removal of vegetation
Development of green belt to compensate the destruction of habitat.
Operational Phase
Fugitive emissions from the facility and waste general from the office can have negative impact on terrestrial ecology.
Adequate waste management and on time monitoring of any leakages (if identified) and adherence to the. emergency procedures.
Impact on Marine Ecology2
Construction Phase
Material derived from the dredging process may also be carried as a benthic plume for significant distances along the sea bed. Impacts include suppression of species variety,
Construction of coffer dam to retain the dredged material, which is especially designed to strain water without releasing considerable sediment load back into the marine ecosystem.
Reduce overspill as far as practically possible and
2 Most studies on the impact of dredging on marine benthos show that dredging can result in a 30 to 70% reduction in species variety, a 40
to 95 % reduction in the number of individuals and a similar reduction in biomass in dredged areas (Newell et al., 1998). The process of
recolonization and recovery is a complex one involving initial colonization by fast growing animals (opportunistic) species. In stable
environments these are replaced and supplemented by a wider species diversity of slow-growing (equilibrium) species after cessation of dredging. In more disturbed habitats the community is dominated by opportunistic species, which do not move towards an equilibrium
community of repeated environmental disturbance.
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Components Phase Associated
Impacts/Risks Proposed Mitigation
Measures
population density and biomass as well as differences in species composition compared with the surrounding deposits.
Impact will include physical disturbance of nesting and spawning, destruction of fish, shrimps and benthic faunal feeding habitats, removal of benthic faunal communities.
Detrimental effects of suspended sediments, turbidity and sedimentation will include - disturbance of fish spawning and nursery habitats, disturbance of fish and shrimp larval development, effects on the behaviour of migrating organisms, feeding of larval, juvenile and adult fishes and crustaceans, burial of benthic fauna communities, enhancement of photosynthetic oxygen production of planktonic algae and burial of benthic plants.
Degradation of water quality, especially in zones with low energy and in waters with sediments with high organic content will result in impairment of larval
ensure that the discharge pipe is located at a suitable depth in the water
Use an efficient trailing suction hopper dredger.
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Components Phase Associated
Impacts/Risks Proposed Mitigation
Measures
development of marine animals, impact on adult and crustaceans (e.g. bioaccumulation), benthic organisms and enhancement of algal growth.
Operational Phase
The potential threat to the fish is from the untreated industrial and municipal sewage already being discharged into the creeks.
Impacts on marine ecology can also result from collision of ships, boats or tankers.
Oil spill due to tanker accident would contaminate the environment leading to adverse impacts.
Developed a contingency plan to combat oil spills in case of emergency
Impact due to laying of pipelines
Construction phase
Laying of onshore pipelines will have impact on the land use pattern.
Dredging activity can also create disturbance to residents and fishermen. However, the impact on land acquisition is not envisaged due to laying of pipelines
Development of construction management plan
Operations phase
The area for laying pipelines will result in restricted rights within the right of way and may limit the activities
Careful marking of the Right of Way and conveying the reserved rights within the RoW to the local residents
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Components Phase Associated
Impacts/Risks Proposed Mitigation
Measures
Impact on nearby settlements
Construction Phase
The impact on nearby settlements during construction phase will be due to air pollution and noise generating activities
This impact can be reduced by limiting the construction activity to day time and taking adequate measures such as installation of noise barriers, development of traffic management plan etc.
Operations Phase
Limited access to the restricted area / area with reserved rights may result in reduced accessibility to nearby settlements
Impact on Fishing Activity / Livelihood of fisherman
Construction Phase
Impact on fishing due to Construction works: during the trenching for laying the subsea pipeline, fisherman will not be allowed to cross over the areas where trenching is being done. This is a short-term impact and completely reversible as there will not be any prohibition of fisherman crossing the areas above the path where the subsea pipeline is laid
Prior consultations should be carried out to access the significance of impact on the livelihood of fisherman.
Necessary sign boards and marker buoys along with interaction with the fishermen should be initiated so that there is no hindrance in the movement of fishing boats and carrying out fishing activities.
Fisherman should be regularly educated about the orientation of approach channel and ships visits etc.
Regular interactive session with the community can help in reducing the conflict with fisherman (if any arises)
Operations Phase
Limited access may have significant impact on the livelihood of local fisherman. Impact on fishing may also result due to vessel movement.
Reduction in fish population can also result as part of rapid movements across the area
Impact of offshore
Construction Phase
Conventional offshore platform
Optimizing the light source can help in reducing the
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Components Phase Associated
Impacts/Risks Proposed Mitigation
Measures
facilities on migratory birds
lighting can attract birds during the autumnal migration resulting in encirclement causing elevated avian mortality rates from bird strike, incineration in the flare (when the flare is in operation) and exhaustion
mortality rate (such as removing the long wavelength component of spectrum from the lightning used in offshore facilities)
Operations Phase
Occupational Health and Safety
Occupational health and safety are important aspects for any developmental activity. Occupational
health and safety needs attention both during construction, operation and maintenance phases. A
broad framework for Occupational health and safety measures is presented in this section.
Occupational Hazards
Occupational health hazards, areas associated with hazards and proposed mitigation measures are
given in the below table:
S.
NO
Occupational
Health Hazard
Component
Areas associated with Hazards
1 Noise Construction, operational activities such as FSRU facility handling, &
unloading of LNG, maintenance of FSRU unit, and repair activities like
metal working such as welding, cutting; the use of heavy equipment and
vehicles, DG sets
2 Confined Spaces Confined space entry by workers and the potential for accidents may vary
among LNG terminal facilities depending on design, on-site equipment,
and infrastructure. Confined spaces may include storage tanks, secondary
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S.
NO
Occupational
Health Hazard
Component
Areas associated with Hazards
containment areas, and stormwater/wastewater management
infrastructure
3 Electrical Hazards Energized equipment, earthing and welding equipment’s and power lines
can pose electrical hazards for workers
4 Fire and Explosion Handling and storage of fuel, combustible material & products, etc.
5 Slip, Trip and Falls Decks, gratings, ladders and walkways are likely to become slippery or
hazardous due to cargo residues, welding rod ends, Spill liquids, scrap
metal, etc., Mal-operation of lifting equipment’s.
6 Community Health
and Safety
Community health and safety impacts during the operation of LNG
facilities or transport of LNG are related to potential accidental natural
gas leaks, in either liquid or gas form. Flammable gas or heat radiation
and overpressure may potentially impact community areas outside the
facility boundary, although the probability of large-magnitude events
directly associated with storage operations in well-designed and well
managed facilities is usually negligible. The layout of an LNG facility and
the separation distance between the facility and the public and/or
neighboring facilities outside the LNG plant boundary should be based on
an assessment of risks from LNG fire (thermal radiation protection),
vapor cloud (flammable vapor dispersion protection), or other major
hazards.
LNG facilities should prepare an emergency preparedness and response
plan that considers the role of communities and community
infrastructure in the event of an LNG leak or explosion.
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S.
NO
Occupational
Health Hazard
Component
Areas associated with Hazards
7 Chemical Hazard Facilities should be equipped with a reliable gas detection system that
allows the source of release to be isolated. Blowdown of pressure
equipment should be initiated to reduce system pressure and
consequently reduce the release flow rate.
Liquefaction facilities with gas treatment operations may have the
potential for releases of hydrogen sulfide (H2S). Development of a
contingency plan for H2S release events, including appropriate aspects
from evacuation to resumption of normal operations.
8 Roll-Over Storage of large quantities of LNG in tanks may lead to a phenomenon
known as “roll-over.” The potential for rollover in LNG storage tanks
arises when separate layers of LNG of differing densities exist within the
tank. Pressure safety values should be installed to prevent roll-over.