INVITATION FOR EXPRESSIONS OF INTEREST FOR EMPANELMENT OF
ENGINEERING, PROCUREMENT AND CONSTRUCTION (EPC) / TURNKEY CONTRACTORS &
CONSTRUCTION CONTRACTORS UNDER GOVERNMENT OF INDIA LINES OF CREDIT (LOC) PROJECTS
ADDENDUM 2
Note: The envelope containing the application documents shall be prominently superscribed with
the sectors for which empanelment is applied for, or a sheet of paper be attached listing such
sectors on the outside of the envelope.
A.
Empanelment of EPC / Turnkey Contractors
S.No. Reference
1
Pg 10
First bullet point
in list of sectors
2
Pg 10
Thirteenth bullet
point in list of
sectors
3
Pg 10
Last paragraph
Addendum
To be read as follows:
“Agriculture (including crop improvement, research stations, etc)”
4
Pg 11
Paragraph 2
Pg 18
ITA 10
Delete the words “a single”
6
Pg 21
ITA 22.3
The word “prequalify” in the second sentence on third line is substituted
by the word “empanel”
7
Pg 21/ 22
ITA 26
ITA 26.2 is added as follows:
“26.2 Prequalified bidders for particular bidding opportunity may form
JVCA with empanelled Applicants with prior approval of Exim
Bank. JVCA with other prequalified bidder(s) would be subject to
the provisions of specific bidding documents”
8
Pg 28
A.2 Eligibility
Following Note is added in third sub-bullet of third bullet point under
paragraph for Attachments:
“Evidence of application for membership of PEPC would be sufficient for
consideration for empanelment. However, empanelment shall be subject
to successful registration with PEPC. Applicants shall submit
5
Deleted
To be read as follows:
“An EPC/ Turnkey contractor (including service delivery contractor) is
expected to carry out the detailed engineering design of the project,
procure all the equipment and materials necessary, and then construct to
deliver a functioning facility or asset to their clients.”
ITA 10.2 is added as follows:
“10.2 Application may be submitted per sector either (i) Singly; or (ii) in
JVCA; or (iii) both distinctly. In case of (ii) or (iii), the number of
JVCA per sector shall be limited to one. In case of (iii), if both
Applicants are empanelled, then for a particular subsequent
bidding, either the single entity or the JVCA, in that order, shall be
prequalified subject to meeting the specific qualification
requirements
S.No. Reference
Addendum
documentary evidence of registration with PEPC to be considered for
prequalification for subsequent bidding stage.”
9
Pg 30
C.1
Para (ii) under
Requirement
10
Pg 31
C.2
To be read as follows:
“(ii) The Applicant shall demonstrate that it has access to, or has
available, liquid assets, unencumbered real assets, lines of credit, and
other financial means (independent of any contractual advance
payment):
 equivalent to at least 25% of the aggregate annual residual value
of work of ongoing contracts (as per Form C.2.1) net of the
Applicant’s other commitments.”
To be read as follows:
“Aggregate annual residual value of ongoing contracts (including amount
billed but pending payment) shall not be more than 250% of the
maximum annual EPC/Turnkey turnover in any of the last 5 years (FY
2010-11 to FY 2014-15)”
11
Pg 31
D.1
Requirement
Paragraph to be read as follows:
“At least 7 years experience under Engineering Design/ Construction/
EPC contracts in the role of prime contractor, or JV member, in India
during the period FY 2008-09 to FY 2014-15.”
12
Pg 31
D.2
Requirement
Additional paragraph added as follows:
“In case of JV, requirement shall be met by the JV on a combined basis
i.e. by any or all members”
13
Pg 39
Form
B.1.1/
B.2.1/ B.3.1
Pg 44
Table in Form
C.1.2
The instructions below the title shall be read as follows:
“[The following tables (B.1.1/B.2.1/B.3.1 shall be filled in for the Applicant
and for each member of a Joint Venture]”
Column 5 “% of total Turnover” be read as “Total Turnover and % of total
turnover #”
14
15
Pg 45
Table in Form
C.2.1
Contract
Identification
Include footnote below the table as follows:
“# Total Turnover would include revenues from all Engineering/
Engineering and Procurement/ Construction contracts (including EPC/
Turnkey contracts)”
Replace with following Table
Role of
Start
Applicant Date
(1)
(2)
(3)
Contract Ref:
[insert
Brief Title of the"Prime
works:
Contractor”
Amount of contract:or
“JV
[insert amount inMember”]
Contractual Intended/ Residual
Residual
Annual
Completion Revised
Period forValue
ofResidual
Date
Completion Completion Work
Value
of
Date
Work
(4)
(5)
(6)
(7)
(8)
[Insert
[Insert value[in
US$
period
inin
US$derived by
years
equivalent (7) divided
starting
including
by (6)]
from
amount
currency, mention
currency
used,
exchange rate and
US$ equivalent*]
Name & Address of
Employer:
Application billed
but
Submission pending
Deadline. payment up
For periodto deadline
less than afor
year, valuesubmission
shall
beof
taken as 1Application]
(one)]
[Insert total
for
all
contracts]
* Refer ITA 13 for source of exchange rate.
B.
Empanelment of Construction Contractors
S.No. Reference
1
Pg 10
First bullet point
in list of sectors
2
Pg 11
Paragraph 2
3
Pg 18
ITA 10
Addendum
To be read as follows:
“Agriculture (including crop improvement, research stations, etc)”
4
Pg 21
ITA 22.3
The word “prequalify” in the second sentence on third line is substituted
by the word “empanel”
5
Pg 21/ 22
ITA 26
ITA 26.2 is added as follows:
“26.2 Prequalified bidders for particular bidding opportunity may form
JVCA with empanelled Applicants with prior approval of Exim
Bank. JVCA with other prequalified bidder(s) would be subject to
the provisions of specific bidding documents”
6
Pg 28
A.2 Eligibility
Following Note is added in third sub-bullet of third bullet point under
paragraph for Attachments:
“Evidence of application for membership of PEPC would be sufficient for
consideration for empanelment. However, empanelment shall be subject
to successful registration with PEPC. Applicants shall submit
documentary evidence of registration with PEPC to be considered for
prequalification for subsequent bidding stage.”
7
Pg 30
C.1
To be read as follows:
“(ii) The Applicant shall demonstrate that it has access to, or has
Delete the words “a single”
ITA 10.2 is added as follows:
“10.2 Application may be submitted per sector either (i) Singly; or (ii) in
JVCA; or (iii) both distinctly. In case of (ii) or (iii), the number of
JVCA per sector shall be limited to one. In case of (iii), if both
Applicants are empanelled, then for a particular subsequent
bidding, either the single entity or the JVCA, in that order, shall be
prequalified subject to meeting the specific qualification
requirements
S.No. Reference
Addendum
Para (ii) under available, liquid assets, unencumbered real assets, lines of credit, and
Requirement
other financial means (independent of any contractual advance
payment):
 equivalent to at least 25% of the aggregate annual residual value
of work of ongoing contracts (as per Form C.2.1) net of the
Applicant’s other commitments.”
8
Pg 31
To be read as follows:
C.2
“Aggregate annual residual value of ongoing contracts (including amount
billed but pending payment) shall not be more than 250% of the
maximum annual turnover of Construction Contracts in any of the last 5
years (FY 2010-11 to FY 2014-15)”
9
Pg 31
D.1
Requirement
Paragraph to be read as follows:
“At least 7 years’ experience under Construction Contracts in the role of
prime contractor, or JV member, in India during the period FY 2008-09 to
FY 2014-15.”
10
Pg 31
D.2
Requirement
Additional paragraph added as follows:
“In case of JV, requirement shall be met by the JV on a combined basis
i.e. by any or all members”
11
Pg 39
The instructions below the title shall be read as follows:
Form
B.1.1/ “[The following tables (B.1.1/B.2.1/B.3.1 shall be filled in for the Applicant
B.2.1/ B.3.1
and for each member of a Joint Venture]”
12
Pg 44
Column 5 “% of total Turnover” be read as “Total Turnover and % of total
Table in Form turnover #”
C.1.2
Include footnote below the table as follows:
“# Total Turnover would include revenues from all Construction
contracts”
13
Pg 45
Replace with following Table
Table in Form
C.2.1
Contract
Identification
Role of
Start
Applicant Date
(1)
(2)
(3)
Contract Ref:
[insert
Brief Title of the"Prime
works:
Contractor”
Amount of contract:or
“JV
[insert amount inMember”]
currency, mention
currency
used,
exchange rate and
US$ equivalent*]
Contractual Intended/ Residual
Residual
Annual
Completion Revised
Period forValue
ofResidual
Date
Completion Completion Work
Value
of
Date
Work
(4)
(5)
(6)
(7)
(8)
[Insert
[Insert value[in
US$
period
inin
US$derived by
years
equivalent (7) divided
starting
including
by (6)]
from
amount
Application billed
but
Submission pending
Deadline. payment up
For periodto deadline
Name & Address of
Employer:
less than afor
year, valuesubmission
shall
beof
taken as 1Application]
(one)]
[Insert total
for
all
contracts]
* Refer ITA 13 for source of exchange rate.
Expression of Interest (EOI) for Empanelment of EPC Contractors
- Response to the queries
Description of the Scope
Query : Bidder understands that the empanelment through this EOI is for EPC / Turnkey
contractors only. However enquiry document title indicates “including services delivery
contractors”. Bidder requests EXIM Bank to clarify the meaning of service delivery contractors and
define the scope of above Service Delivery Contracts Contractors.
Response : Service delivery contractors would include Applicants in the Services Sector and also
EPC contractors as Applicants responsible for all related services. Scope would be defined in
specific opportunities.
Query : Bidder requests EXIM to add the following additional categories:
 Hydrocarbon Sector (Refinery/ Petrochemicals / Gas plants etc.)
 Fertilizer
 Non Ferrous Plants (Refining and Smelter)
Following may please be noted : Govt. of India is considering strategic Investments and extending the line of Credit in
various countries in the above mentioned sectors.
 Above sectors are specialised sectors and requires specific EPC contractors for the project
execution having extensive experience in the similar sector.
Listing of the above categories will also enable Specialised EPC contractors to register under these
new categories.
Response : The sectors listed in the invitation for empanelment are indicative and not exhaustive.
Applicants are free to apply for any sector of their expertise and would be considered for
empanelment based on the stipulated criteria and requirements for empanelment.
Query : The scope of EPC/Turnkey Contractors defined in the last para of Page 10 indicates Front
End Engineering Design (FEED) in the scope of EPC / LSTK Contractor. However; as per International
Practice : Front End Engineering Design (FEED) and Project Management Consultant (PMC) are
different from the EPC / LSTK contractor due to conflict of Interest in their roles and
responsibilities. FEED Contractor ensures that FEED is clearly defined, on the basis of which
EPC/LSTK Contractor can bid and execute the Project whereas PMC role is to ensure that
EPC/LSTK Contractor executes the Project as per defined specifications, cost and schedule.
The above distinction of roles is to ensure that Project is executed as per the specifications.
Hence, giving the role of FEED/PMC to EPC Contractor is a conflict of Interest as any error
committed by them during the FEED, above EPC Contractor would try to cover up the same
during Implementation.
 Also Projects funded by International financial institutions (like IFC) mandate appointment
of neutral PMC for EPC Contract in order to monitor & ensure that EPC Contractor complies
with cost, quality, schedule, warranty and other parameters.
In view of above, Bidder requests EXIM Bank to kindly consider separate empanelment process for
FEED and PMC Contractor. The present empanelment process should be limited to EPC / LSTK
Contractors only.
Response : Please refer to Addendum 2.
Instructions to Applicants: Eligibility of Applicants
Query: Will the projects financed under LoC extended by EXIM Bank on behalf of GOI be open to any
bidder from any country or it shall be open only to empanelled companies with EXIM Bank
Response: Please refer to eligibility provisions in ITA 4 and subsequent invitation for bids in ITA 26 of
the Application Document.
Instructions to Applicants: Ethics & Integrity
Query: Page 15, Part II, Clause 3.2: It seems that this Clause is related to "ethics & integrity" and if
so, establishment of any criminality is the responsibility of appropriate Govt. agencies and courts
only. Also, each company's accounts including profit & loss statements are audited & department of
company affairs have appropriate methods to review them. It is recommended that Exim Bank
should not seek a blanket permission to inspect the Books of Accounts. Instead it is suggested that
Exim Bank should list out the specific events or circumstances under which Exim Bank may initiate
the inspection of Accounts
Response: Circumstances that could lead invoking ITA 3.2 are adequately listed in ITA 3.1. The
remedies mentioned in ITA 3.2 and ITA 3.3 as available to Exim Bank are without prejudice to any
other course of law nor do they seek to be an alternative to the same. As the lending bank, it is Exim
Bank’s fiduciary responsibility to ensure that the empanelment process and subsequent contracts
observe the highest standards of ethics and integrity.
Instructions to Applicants: Eligibility of Applicants: JV
Query: ITA 4.3 mentions that a JV (or an intent for JV) should be formed for companies intending
to participate together for empanelment. Is it essential to form only an incorporated JV company
for this purpose OR as per international tendering practice, are other forms of unincorporated
partnership such as Consortium or Association between companies also allowed. Forming a JV
company is restrictive and can typically be decided only on specific project requirements.
Query: Usually in all International tenders funded by multilateral organizations, JVCA is allowed
meaning – it can be a ‘Joint Venture’ or a ‘Consortium’ or an ‘Association’. Under the EXIM Bank
tender for empanelment is this association restricted to ‘Joint Venture’.
Response: JV (or intent for JV) can be either in terms of an incorporated form (JV Company) OR
unincorporated form (Consortium/ Association).
Query: The word "Joint Venture" (JV) has been mentioned for combination of Entities. Please
confirm that JV can be in the form of consortium agreement between companies & there is no need
to incorporating a JV company for this purpose.
Response: JV also includes unincorporated Consortium/ Association in addition to incorporated JV
company.
Query: Can one company submit an EOI independently for a specific sector of business and also
submit a separate application jointly in an association (with another company) for the same sector.
Since project specific bidding would be conducted later and even the specific projects are not
known at this stage, this will allow prospective companies flexibility in terms of their future
participation.
Response: Please refer to ITA 10.2 in Addendum 2.
Query : In case of JV, should both participants of JV be Indian entities? (Clause 4.2/4.3)
Response : Yes. All partners of JV should be Indian entities as per the provisions of ITA 4.1 and 4.2.
Query: If we get empanelled as a single entity now and later on when the bid/tender document is
announced, we need a JV partner to fulfil the Qualification criteria then shall we be allowed to take a
JV partner?
If yes, then,
a) do we have to choose a JV partner from the empanelled companies only, or
b) we can take a JV partner (local to that country) or any company in India, even if they are
not empanelled with EXIM Bank.
Response: Please refer to Addendum 2 for clarity.
Query: If our company gets empanelled now as a Consortium, say our company – XYZ Consortium
and later on when the bid is announced our company wants to bid as a single entity, then will that
be allowed? Can the XYZ company, being empanelled as a Consortium partner with our company in
Exim Bank, force our company to take them as a consortium partner even if they do not contribute
to any Qualification criteria or scope of work?
Response: Please refer to Addendum 2 for clarity. Applicant shall be prequalified for specific
contracts in the name and style that they had applied and empanelled (such as singly or in JV or
both). Further change in status is not envisaged. Applications are invited for empanelment of the
EPC contractors per sector. Accordingly, applicant can strategise the best option per sector.
Query : How do you empanel JV's which is made on account of future projects
(projects which is yet to be approved?) (Clause 4.2/4.3) Companies enter into JV's based on certain
requirements of the project, since these JV's are made only after considering the project scope,
these cannot be made right now, how will you be dealing with such JV's?
Response : Empanelment shall be in accordance with Part IV – Empanelment Criteria and
Requirements which are self-explanatory. Applicants are free to form JVs depending upon the
sector being applied for. Also please refer to ITA 10.2 in Addendum 2.
Query : Is it necessary that each company in the JV should also be empanelled individually ?
(Clause 4.2/4.3)
Response : No. However, information per member in case of a JV shall be submitted in accordance
with the requirements mentioned in the Application Document.
Query : Export Houses have experience of multi-product / multi-sector EPC project exports. It will
be difficult for any Export House to make a specific Joint Venture Company for each and every
project due to long and cumbersome process of Registration under various local Acts and
adherence to laws for VAT / Import - Export Code / Excise / Taxation, etc. for the JV Company.
Moreover, it will not be feasible to get Banking facilities and Bank Credit limits for the JV company
for each project.
Query: Page no.16, Clause 4.2 & 4.3 : Bidder understands that JV mentioned in the above clauses
also mean unincorporated Joint Venture / Consortium.
EXIM Bank is requested to kindly confirm bidder understanding in this regard.
Response: JV can be existing or intended and be either incorporated (JV company) or
unincorporated (such as consortium or association of eligible firms).
Applications not meeting the financial status criteria and requirements are liable for rejection.
Query: Page no.16, Clause 4.2 & 4.3 : Please note that in line with clause 4.2 & 4.3 of Eligibility
Criteria, Bidders have to indicate the name of the JV partner at the time of empanelment. Bidder
would like to highlight that the selection of partner depends on various factors such as ;

Sector

Country

Type of work
Further, Applicant would like to enter into subcontract or a consortium partnership on the project
specific basis considering the strengths, Capabilities and expertise of each partner with the consent
of EXIM Bank. Accordingly, Empanelment of consortium & JV across all projects & country at this
stage itself is practically not feasible. In view of above, EXIM Bank is requested to kindly consider
the following:
The successful empanelled EPC contractor may be allowed to enter into JV Consortium
partner at a later date on case to case basis with prior approval of EXIM bank.

Requirement of Submission of documents of the consortium / JV partner at this stage
may be waived off.
Response: Please refer to Addendum 2 particularly with respect to ITA 10.2 and ITA 26.2
Query: Part I. General Scope, “Description of the Scope”, Page 10, Part II. Instructions to
Applicants, Clause: 4 “Eligibility of Applicants”, Page 16, Part III. Data Sheet (DS) to ITA, Clause ITA
4.3, Page 23
As per Clause 4.3 of Instructions to Applicants; JV is allowed.
However if a need is felt for addition/substitution of JV partners during Project implementation
depending upon Project requirement or withdrawal of any JV partner, addition/substitution of JV
partners during Project implementation may be required. Therefore, flexibility of removal or
addition / substitution of JV partners after enplanement stage may be allowed.
Query: Kindly confirm, whether the JV can be formed with Shortlisted / Empanelled Contractors at
later stage?
Alternatively can a JV be formed with a non-shortlisted/ non Empanelled firm at later stage?
Query: A joint venture takes place when two parties come together to take on one project in order
to diversify. In a joint venture, both parties are equally invested in the project in terms of money,
time, and effort to build on the original concept.
JV should be formed on need basis and hence in this case, it should be on project to project basis
and not at this empanelment stage.
It is suggested that JV should be allowed for project to project to basis. However, if Company as
single entity is empanelled at this stage and if need is felt for JV for effective implementation of the
Project; JV formation should be allowed in the interest of the Project.
Response: Please refer to Addendum 2 particularly with respect to ITA 10.2 and ITA 26.2. Queries
pertaining to subsequent contract stage would be governed by specific bidding document /
contract.
Query: “The lead partner of the JV shall be the one with the highest share in the JV which shall not
be less than 26%.” It is not clear whether 26% pertains to Financial or Technical Share of the lead
Partner.
Response: In case of incorporated JV company (or intent to this effect), share means the equity
share in the company’s capital. In case of unincorporated consortium/ association, share would
mean share in the proceeds of the subsequent contract amount.
Query: The condition specifies the lead partner to have minimum 26% share & other partners'
minimum 20% share.
In case the JV could be in the form of consortium of partners, please clarify that the "percentage
share" means the "percentage of work to be executed". As no new company is to be incorporated,
this reference is not meant for any equity share holding.
Response: In case of incorporated JV company (or intent to this effect), share means the equity
share in the company’s capital. In case of unincorporated consortium/ association, share would
mean share in the proceeds of the subsequent contract amount.
Query: In order to form a JV, we have to follow an open Tender process, we cannot form a JV at
this stage, with multiple partners for various Sectors/ Sub- Sectors individually. Therefore it is
requested that JV formation should be on project to project basis at the specific Project Bidding
stage.
Response: JV also includes unincorporated Consortium/ Association in addition to incorporated JV
company. Accordingly, applicant can strategize the best option per sector. Also please refer to
Addendum 2 particularly with respect to ITA 10.2 and ITA 26.2.
Query: Part III. Data Sheet (DS) to ITA, Clause ITA 13.1, Page 25
As JV formations will take time. The deadline of Application submission may be extended till 30th
June, 2016.
Response: Please refer to Addendum 1.
Query: All Companies cannot have same level of infrastructure for undertaking turnkey projects in
all 196 countries in the World. For example, we have good infrastructure to carry out projects in
around 25 countries. So, if our company has a JV/intended JV as allowed in a tender or ‘Power
Generation’, in which we restrict the JV to 25 countries, is it acceptable. And if our partner ‘XYZ
Limited’ an Indian company, wants to empanel for the other countries directly, is it allowed.
Is it possible that for example we wish to apply for empanelment for the Power Generation Sector,
that we can make two applications one in which we request for empanelment as standalone entity
‘ABC’, and another as a JV with a partner. At time of bidding we can decide whether we wish to bid
independently or as with the JV partner. As the tender has not defined this as a restriction.
Response: Please refer to Addendum 2 particularly with respect to ITA 10.2 and ITA 26.2.
Query: Part II Eligibility of applicants (4.3) : An Applicant may be a single entity or a combination of
entities in the form of a JV either existing or with the intent to enter into a JV supported by a
letter of intent listing out the names of all the JV members. In the case of a JV, all members shall
be jointly and severally liable for the execution of the subsequent contract(s) in accordance with
the respective contract terms. The JV shall be represented by an authorized representative who
shall have the authority from all members of the JV so as to conduct all business for and on
behalf of the JV during the empanelment process. The limit on the number of members in a JV
would be as specified in the DS.
Suggested amendment “The Application made by the Export Houses duly recognized by the GOI,
as a ‘single entity’ may also be considered for empanelment with the condition that the Applicant
as a Bidder will submit an exclusive Business Agreement, in Original, with the Supporting
Manufacturers / Sub-Contractor having requisite technical qualifications, experience and financial
strength at the time of tendering for specific projects”.
Response: Conditional empanelment is not envisaged.
Applicant should meet the stipulated criteria and requirements for empanelment. Please refer to
Addendum 2 particularly with respect to ITA 10.2 and ITA 26.2.
Query: If the Applicant (Lead Firm) lacks experience in a particular sector but forms JV with
another Firm for applying in the particular sector to fulfil eligibility, whether the Application should
be considered for empanelment?
Response: Applicant shall be empanelled subject to meeting the criteria and requirements for
empanelment. In case of JV, credentials of each member shall be assessed in accordance with the
provisions of the Application Document. Please refer to Addendum 2 with respect to Requirement
under D.2 Specific Experience in Part IV Empanelment Criteria and Requirements
Empanelment Criteria and Requirements: Enlisting with PEPC
Query: Does enlisting with PEPC only is acceptable? Our group companies are enlisted in other
councils like FIEO. Part IV. Empanelment criteria and requirements. A.2 Eligibility: Attachments:
Documentary proof for being on the approved list of Project Exports Promotion Council of India -
PEPC (MOCI). Suggested Amendment: “Documentary proof of being a GOI recognized Export
House and or Member of FIEO be accepted”
Query : Part IV / A.2 Eligibility / Attachments / Page 28 : Documentary proof for being on the
approved list of Project Exports Promotion Council of India – PEPC (MOCI) : We currently have
membership of Engineering Export Promotion Council of India – EEPC (MOCI). We request that
membership of EEPC may also be accepted in place of PEPC.
Response: Documentary proof for being on the approved list of Project Exports Promotion Council
of India - PEPC (MOCI) is a minimum requirement which is in accordance with the requirement of
the Reserve Bank of India (RBI). Please refer to RBI A.P. (DIR Series) Circular No. 39 (RBI/201516/287) dated January 14, 2016 on Export of Goods and Services – Project Exports. Other
accreditation is not mandatory
Empanelment Criteria and Requirements
Query: Page 31, Part IV, Clause C-2; Page 30, Part IV, Clause C-1: As the applications are being
submitted in April 2016, the companies who have got their Audited Accounts/ Balance Sheet as on
31.03.2016 ready at the time of submission of application should be allowed to submit the same as
their latest Balance Sheet. Therefore, it is suggested that the last five years should be considered
from 2016.
Response: Applicants may submit their financial statements for FY ending 31 st March 2016, if
feasible. However, assessment of the application shall be carried out on the basis of five Financial
Years ending 31st March 2015 unless consideration of FY16 statements become critical to the
empanelment of the applicant.
Query: Is this a mandatory eligibility requirement? Part IV. Empanelment Criteria and Requirements
C. Financial Status and Capacity: C.2 (Value of Ongoing Contracts). Our group companies have
clocked tremendous growth over the last couple of years and due to this we are not within 180%
clause, in fact we are breaching this clause and hovering at 200% or maybe more. This clause is a
restrictive clause for companies like ours which grew significantly over the last couple of years and
continuing the trend. Our Suggestions (in the order of preference):
i. In case of companies where the annualised value of ongoing contracts is over 180% of the
average annual turnover for last 5 years, like the case of Sterling Wilson, we can demonstrate
our ability to execute such ongoing contracts by substantiating with additional financial means
providing relevant funded/non-funded statements or through turnover of other completed or
near completion contracts.
ii. Modifying the clause a little as follows:
“Average annual value of all ongoing contracts shall not be more than 180% of the average
annual construction turnover for last 5 years (FY 2010-11 to FY 2014-15) or last year,
whichever is higher.”
Query: Clause C.2 which defines the Value of Ongoing Contracts
Average annual value of all ongoing contracts shall not be more than 180% of the average
annual EPC/turnkey turnover for last 5 years (FY 2010-11 to FY 2014-15)
Our understanding to this is as follows:
Normally all the EPC contracts have completion period ranging from 2 to 5 years, depending on
the size and scope of the project. The total value of the whole contract is split based on phases of
execution as agreed with client based on their requirements. Hence the portion of contract for
that year should be considered as contract value instead of total value of contract for the
purpose of calculation of 180%.
The balance portion of the ongoing contract value pending for the execution would be considered
for purpose of calculation of 180%.
In case of the project being temporarily stalled due to force majeure conditions including
pending issues between Governments, the contract value would not be considered into
account till the time, there is a clear go ahead.
Response: Please refer to Addendum 2 corresponding to the reference cited above. The annual
residual value of ongoing contracts (including amount billed but pending payment) shall be
calculated in a linear manner as per instruction mentioned in Form C.2.1.
Query: This has reference to the Clause C.2 - Requirement of the Clause-C-Financial Status and
Capacity in the Application document i.e. "Average annual value of all ongoing contracts shall not
be more than 180% of the average annual construction turnover for last 5 years ( FY 2010-11 to FY
2014-15)". In this connection we submit that, a company which is growing will have annual
turnover increasing year after year by enhancing their execution capabilities in all respects
and will be achieving better turn over in their growth. Hence the above criteria based on average
turnover for the last five financial years will restrict companies like us in showing its ever
growing execution capabilities and again putting a restriction on the value of ongoing works to
180% of average annual turnover, will restrict companies to become eligible for empanelment
and projects coming under EXIM Bank. In this connection we submit that, in growing business
prospective to achieve higher annual turnovers year after year, the order book value should be
more in order to achieve higher annual turnover. Further as far as this condition is concerned,
which is in line of Bid capacity requirement as one of the mandatory conditions mentioned by the
clients in India for the projects funded by the Central Government, State Governments and other
funding agencies i.e. JICA, World Bank, ADB etc, the Annual turnover is considered as the maximum
turnover achieved during the last five years. We submit that as per above, many departments are
considering the Maximum value of annual turnover in arriving the bid capacity of the bidder and
hence they are having healthy participation & competition and are getting very good contractors
who are successful in delivering the projects to their clients in year after year. Even the overseas
projects funded by the various funding agencies, there is no requirement of the Bid capacity or the
condition mentioned in the Application document in their tenders.
Hence in the light of above, we request you to assess the Contractor's capacity on the
projects executed and completed in the respective sectors based on the maximum value of annual
turnover achieved by the bidder in a certain block period, as is being done in many
Government departments and as per CVC guidelines. We request you to remove the restriction
of ongoing value at 180% by adapting one of the above formulas, so that there will be more
competition.
Query : Page 31. C.2 Value of ongoing contracts: requirements: Average annual value of all ongoing
contracts shall not be more than 180% of the average annual EPC/ Turnkey turnover for last 5
years (FY 2010-11 to FY 2014-15): Can you please explain relevance of this requirement clause?
Suppose, if annual average turnover of all ongoing contracts is more than 180% of the avg turnover
(EP & C respectively) of last 5 years, then, what are the consequences?
Response: Please refer to Addendum 2 corresponding to the reference cited above.
Query: Application Document Part IV: Empanelment Criteria & Requirements C.2. Value of Ongoing
Contracts Pg. 31: Attachment to be submitted: Statement of Credit Facilities sanctioned and availed
that are in force (including Source, Purpose, Amount, Validity Period):
Our bankers extend the credit facility to the company as a whole and is not project specific. In this
regards, we request you to accept the Credit Limit certificate issued by our Bankers as a documentary
proof of the credit facilities available. Please confirm.
Response: Information is required to be submitted about credit facilities (i) sanctioned; and (ii)
availed. While bankers may sanction credit facility for the company as a whole, information is
expected on the quantum actually availed against the sanctioned amount.
Query: One of our companies is only 4 years old in its existence, does that mean they are ineligible
for empanelment? Part IV. Empanelment Criteria and Requirements D Experience : D.1 General
Experience. The clause is asking for experience for last 7 Financial years.
Response : The requirement is clear and self-explanatory and based on the information provided in
the query, the firm could be disqualified if it lacks the requisite experience.
Query: Since the clause is asking for experience for the last 7 Financial Years, and in case you allow
empanelment of companies whose legal existence is less than 7 years, does this mean they will
have lower weightage in pre-qualification for the projects? Part IV. Empanelment Criteria and
Requirements D Experience: D.1 General Experience : The clause is asking for experience for last 7
Financial years.
Response: Part of the query is answered above. The requirement stipulated in D.1 General
Experience is the minimum requirement for empanelment.
Query: Page 31, Part IV, Clause 01: Applicant must be allowed to provide experience for more than
the past 7 years in case of EPC and Construction.
The reason for this is that EPC projects face unanticipated delays and if the past track record of
projects is seen in the infrastructure sector in India alone, projects that need to be completed in 2-3
years usually take more than 4 years to be completed.
Another concern is that developing countries today are going through the same evolutionary phase
in industrialization as India has. Therefore, an industry that was booming in India 10 years ago is in
its nascent stage in the developing country. So the experiences of Indian firms that have undertook
such projects more than a decade ago and still have the capacity to undertake similar works should
be allowed to use their past experience and be considered for empanelment. Therefore a
generalized experience of past 7 years may be restrictive in nature and it is recommended that
experience should also be considered before that.
Response: The requirement mentioned under Part IV - D.1 is the minimum requirement. Applicants
are encouraged to provide all relevant information (even prior to 7 year period) on general
experience. Please refer to Addendum 2 for clarity on Part IV-D.1.
Query: Page 31, Part IV, Clause D-2 & C-2: The stated objective of Govt. of India under various
schemes including recently launched "Make in India" & "Startup India" initiative is to encourage new
business to flourish, thus, generating multiplied employment in the country. Some conditions
specified in Clause C2 & D2 may restrict the empanelment to only large EPC Companies and will
restrict new entrants in the industry to increase competition. It is suggested that a company that can
display requisite manpower, financial capacity and experience of completed and on-going projects
should also be considered. In addition, if a company has entered into a new sector recently and has
substantially completed the project should also be considered as the infrastructure created by that
company for the particular sector will not be put to any use after the project is successfully
completed and therefore, may lead to financial losses to the company and also lay off of employees.
Response: Please refer to Addendum 2. The requirements under Part IV, particularly under CFinancial Status and D – Experience, seek to make the participation as wide as possible without
stipulating any monetary values on financial parameters or experience. The application document
also provides the prospective applicant to participate as a JV to augment their capability and to
apply for any sector of their expertise not necessarily limiting to those listed.
Query : Form C.1.2 Pg 44 : Requirement of giving Average annual EPC/ Turnkey Turnover by each
member of JV; As explained, our company has done contracts on EP basis and our JV partner would
be having turnover for C i.e Construction basis. Should we mention EP basis turnover & C basis
turnover accordingly?
Query : Form C.2.1 Pg 45 : Same query : we would be mentioning our EP basis and C basis contracts
accordingly?
Response: Please refer to Addendum 2. Information is needed to be submitted as per Form C.1.2,
inter alia, on turnover derived from EPC/ Turnkey contracts for the Applicant. In case of JV,
irrespective of the role of the JV members in an EPC/ Turnkey contract, the related turnover can be
included under EPC/ Turnkey category for respective JV member. Total Turnover would include
revenues from all Engineering/ Engineering and Procurement/ Construction contracts (including
EPC/ Turnkey contracts). Attention is also drawn to Paragraph D under Part III – Experience.
Form C.2.1 requires information on all ongoing contracts
Query: What will be the weightage for each category of evaluation criteria, such as Financial
Status, Experience, Quality Assurance, etc.?
Response: There is no weightage system in evaluation for empanelment. The requirements
stipulated are the minimum requirements for empanelment and are self-explanatory.
Query: Do you have different empanelment criteria or application for projects under PPP model?
Response : The empanelment process is based on a set of common criteria and requirements
mentioned in the Application Document since as on date, specific project related information for
all projects is not available. Applicants are expected to apply sector-wise based on their area of
expertise including PPP projects and their role in the same. If deemed fit, Exim Bank in consultation
with GOI would decide on the process to be adopted for specific opportunities involving PPP based
on particular requirements of the borrower government(s).
Query: D.2 Specific Experience: At least 2 (two) similar contracts (i.e. EPC / Turnkey including
related services) that have been satisfactorily completed as a prime contractor, or joint venture
member between 1st April 2008 and application submission deadline. Suggested Amendment:
Applicant and / or its Associate Manufacturer / Sub Contractor should have satisfactorily
completed 2 or more similar contracts between 1st April, 2008 and application submission
deadline.
Response: Evaluation shall be in accordance with ITA 22.
Query: Form D.2.1 Pg 48, Specific EPC/Turnkey Experience : As explained, our company has done
contracts on EP basis and our JV partner would be having turnover for C i.e. Construction basis. We
would be mentioning our EP basis and C basis contract’s experience accordingly?
Response: Please refer to Addendum 2. Information is needed to be submitted as per above
referred Form D.2.1 in accordance with the corresponding requirement mentioned in Part IV D.2 –
Specific Experience, which is self-explanatory.
Query: General - We request you to share the evaluation criteria which will be implemented for
Empaneling the contractors.
Response: Please refer Part IV - Criteria and Requirements for Empanelment. The requirements
stipulated are the minimum to be met by the applicant to be empanelled. Information is required to
be submitted in the prescribed forms included in Part V
Quality Assurance
Query: E.1 Quality Management System: Requirement: Information on Certified Quality
Management System shall be considered in determining suitability to be prequalified for specific
bidding opportunities based on the requirements in the bidding document. ISO 9001: 2008
Certificate is permitted.
Response: Applicant is expected to provide information as requested.
Equipment
Query: Form E.2.1 – Equipment Details for construction are project specific and would vary widely,
depending on project requirements. We request more clarity on the information to be submitted
in this Application, since the projects are generic in nature. We feel this information is more
appropriate at the bidding stage for specific projects.
Response: Information to be provided in Form E.2.1 – Equipment Details is on existing ownership /
lease of equipment. This criterion does not seek to stipulate any minimum requirement as of
now.
Query: Page no. 50, Form E.2.1: Equipment Details: Majority of Multi National EPC contractors do
not own equipments. They have expertise in Engineering and procurement area and hire the
services of local contractor (country specific) for Construction activities. It may also be noted that
the Indian EPC company will have the equipments in India, and it may not be feasible to transport
the same outside India. Further, the EPC company will outsource the construction work to local
construction contractor. Accordingly, Bidder requests to waive off the submission of the Form E.2.1
mentioned in the EOI.
Response: Attention is drawn to the requirement under the new GOI guidelines on LOCs referred
to in Part I General Scope and the percentage sourcing from India. For the empanelment stage,
information on equipment (owned / hired) as requested is required to be submitted. This criterion
does not seek to stipulate any minimum requirement as of now.
Query: E.2 Equipment: Requirement: Information on ownership and / or long term lease of
equipment shall be considered in determining suitability to be prequalified for specific bidding
opportunities based on the requirements in the bidding document. Suggested Amendment “Applicant’s and/or Associate manufacturers/ Sub-Contractors equipment shall be considered.”
Response: Applicant is expected to provide information as requested.
Skilled Human Resources
Query: E.3 Skilled Human Resources : Requirement: Information on Skilled Human Resources on
the rolls of the Applicant shall be considered in determining suitability to be prequalified for
specific bidding opportunities based on the requirements in the bidding document. Suggested
Amendment – “Applicant and / or Associate manufacturers / Sub-Contractors Skilled Human
Resources to be considered.”
Response: Applicant is expected to provide information as requested.
Query: Application Document Part IV: Empanelment Criteria & Requirements E.3. Skilled Human
Resources Pg. 33: Information on Skilled Human Resources on the rolls of the Applicant shall be ...: It
will be extremely difficult for corporate company like us which is having nearly 40,000 employees to
provide the details of as asked in the format. We request you to modify the Format (ref. E.3.1) to
broad categories like: Design Engineers; Architects; Managers; Executives; Supervisors; Technicians;
Temporary Trainees; etc. Please confirm.
Response: For information required to be submitted under E.3 Skilled Human Resources, it would be
sufficient if information on key managerial staff such as project managers is provided in Form E.3.1.
Information on rest of the human resources may be provided on the basis of functional positions
such as Design Engineers, Architects, etc, and their number.
Track Record
Query: We have executed contracts on EP basis, can we get ourselves registered under EPC
contractor or any other category with Exim Bank of India?
Response: This process is for empanelment of EPC contractors and hence if you are not into EPC,
this may not be the appropriate opportunity for your firm. Your firm as an Original Equipment
Manufacturer (OEM) can look forward to specific opportunities under LOC projects for which Exim
Bank may undertake prequalification process in future for OEMs. In case your firm is keen on
applying for empanelment as EPC contractor, you may explore possibility of applying as a JV with a
suitable entity so that on an overall basis, your JV meets the empanelment criteria.
Sectors
Query: Our company executes power generation projects using biomass as fuel apart from
Thermal and Hydro. We assume that such projects would also be covered under the broad
category of Power Generation.
Response: The sectors listed in the IFE are illustrative and not exhaustive. You may indicate your
area of expertise and the same would be considered appropriately. Please ensure that the
information provided under various criteria is consistent.
Query: It is not clear in which sector the Dam Construction as a sub-sector will be considered.
Experience will have to be showcased under a new separate Broad Sectoral heading or any suitable
sector out of those listed may be suggested.
Response: Based on the query it is given to understand that experience is only in dam
construction. Therefore, depending on the primary utility of the dam, respective experience (as a
subsector called dam construction) may be included under such broad sector (such as Power
Generation, Irrigation, Water Supply, etc.).
Query: The need for empanelment without any reference to project location, project size is not
understood. It is possible that borrowing countries may request for projects in many other 'sectors'
which cannot be predefined now. A good example may be various types of defense equipment. So,
please clarify, if Exim Bank will allow companies who have not been empanelled here, to participate
in Project specific prequalification, when the same is finalized at a later stage for such projects
that are not covered in the sectors specified in the EOI document?
Response: The sectors listed in the invitation for empanelment for EPC/ Turnkey contractors are
indicative and not exhaustive. Applicants are free to apply for any sector of their expertise and
would be considered for empanelment based on the stipulated criteria and requirements for
empanelment.
As regards OEMs, we propose to do the pre-qualification for specific requirements that may be
received under specific projects.
OEMs
Query: Please clarify if we, OEMs, can qualify for the Empanelment on Exim Bank list as with all
these experiences missing (Catering to EPC contractors).
Response: As regards OEMs, Exim Bank would undertake pre-qualification for specific
requirements that may be received under specific projects.
General Queries
Query: We would like to understand the purpose of having two different applications for
empanelment - for EPC and Civil Contractors. Since EPC includes construction, a company which is
applying as a EPC contractor, why is it required for such a company to be empanelled as a Civil
Contractor also? We want to understand the purpose of 2 different Application documents.
Response: Empanelment process for (i) EPC Contractors and (ii) Construction Contractors is
separate for better administration of the process by Exim Bank. This also allows prospective
applicants the convenience to highlight specific experience record, form strategic partnerships, and
submit focused qualification document respectively for each category.
Query: Since we are a subsidiary, can we include the global projects that have been executed by
other Global Teams as part of project experience.
Response: Please refer to ITA 22.4 of the Application Document for clarity.
Query: Please confirm if we can include the sources of finance that can be made available through
our parent company.
Response: Please refer appropriate provisions of the Application Documents on criteria and
requirements. An Applicant is expected to furnish legitimate sources of finance duly reflected in
the Applicant’s books of accounts/ financial statements, if and as applicable. Assistance by parent
company to its subsidiary (Applicant) is not prohibited.
Query: Our audit is conducted by statutory auditors and tax audit by our tax auditors. Please
confirm if we can get the certification done by our tax auditors.
Response: Appropriate instructions are in place wherever certifications are needed.
Query: We shall submit the Board Resolution giving powers to our Authorized Representative who
will sign on behalf of the company for the tender. In addition to this, is Power of Attorney also
required or only a Board Resolution will suffice?
Response: Please refer Part III-Data Sheet to ITA 10.1(d) of the Application Document for clarity
Query: Part V & Part VI: Forms (Part V) & Questionnaire (Part VI): Request to please provide the
editable copies of the Forms and the Questionnaire (MS Word format).
Response: Editable version of Part V and Part VI shall be uploaded on the website of Exim Bank.
Query: Considering the vast experience, established & proven capabilities of Maharatna/ Navratna
PSUs, they must be automatically empanelled as EPC/ Turnkey Contractors for LoC funded projects
for their areas of operations.
Response: Suggested methodology is not provided for in the extant guidelines of the Government
of India.
Query: Reference to Application Document Part II: Instruction to Applicants Cl.13.2 Page 19: Value of
Single Contract- Exchange rate prevailing on the date of the contract shall be used. We propose to
use the exchange rate as published by the sources mentioned in the data sheet prevailing on the
following dates:
1) The date of completion of contract for Completed Projects
2) 31.03.2016 for the Ongoing Projects
Please confirm.
Response: Kindly provide information in the manner requested for evaluation of credentials at par.
Query on Procedures for Evaluation of Applications
Query: Page 20, Part II, Clause 19.1: The pre-qualification and selection criteria appear to be
elimination based rather than point based, as in the case for EOI for consultants. It is suggested that
the empanelment be either based on 'points' or 'qualification marks' so as to make the evaluation
more transparent and give companies a better chance to succeed.
For example, under Clause C.2 in Page 31 a condition is imposed about annual average value of all
ongoing contracts to be not more than 180% of average annual turnover of last 5 years. In case an
applicant fulfils all other conditions specified in the document but does not fulfill the criteria
indicated above, then they miss a chance to be empanelled. This appears to be unfair and acts as a
deterrent for a company that is on an accelerated growth path. Also, a company that may be
currently having many ongoing contracts; but at the time a specific project of its interest is
announced, may have enough capacity available for taking up such new projects, will be deprived to
participate in such works. Hence we request that for every qualification criteria (except A1& A2,
Page 28) specific marks be allotted and the evaluation/ empanelment should not be on elimination
basis.
Response: Part IV of the Application Document lays down the minimum requirements for various
criteria for empanelment. Applicants meeting the minimum requirements shall be considered for
empanelment without adopting a merit point system. With regard to Clause C.2, please refer to
Addendum 2.
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