GOVERNMENT OF PAKSITAN

MINISTRY OF PORTS & SHIPPING

PORT QASIM AUTHORITY

PROPOSALSINVITED FOR

APPOINTMENT OF FOREIGNConsultant FOR FSRU LNG Terminals AT PORT QASIM

August, 2011

PLANNING & DEVELOPMENT DIVISION

PRIVATE SECTOR PROJECTS

Table of Contents

  1. Introduction
  2. Terms of reference & scope of services
  3. LETTER OF INVITATION
  4. Data Sheet

APPENDIX-I TECHNICAL PROPOSAL FORMS

APPENDIX-II FINANCIAL PROPOSAL FORMS

  1. NEGOTIATION

  1. INTRODUCTION

Port Qasim is managed by Port Qasim Authority (PQA). It is Pakistan’s second busiest port, handling about 35% of nation’s cargo (17 million tons per annum). It is located in an old channel of the IndusRiver at east of Karachi city centre. The total area the Port comprises of 1,000 acres (4 km square), with an adjacent 11,000 acres (45 km square) industrial estate. PQA is located at a distance of about 50 km from city centre and 15 km from National Highway.

Port Qasim is first industrial cum Commercial port operator under landlord concept as per PQA Act, 1973. PQA has so far completed/commenced commercial operation of 07 state-of-the-art port terminals through private sector investment by 2011. PQA thus, attracted the private sector investment (foreign & local) to the tune of US$ 900 Million, besides earned substantial income regularly from these terminals in terms of royalty, land and operation charges.

Port Qasim is by objective; design, scope, resources, location and layout, an integral port offering following functions:

  • Handling of sea-borne trade (Imports & Exports)
  • Warehouse facilities
  • Provision of land and infrastructure facilities for establishment of port based industrial and commercial units.

Port Qasim is committed to provide prompt, efficient and cost–effective services to its customer while ensuring safe shipping operation at the Port.

  1. TERMS OF REFERENCE Scope of services

2.1PREAMBLE

Pakistan is currently facing severe energy crises and shortage of natural gas. In order to bridge the gas supply and demand gap, LNG import is considered vital. Government of Pakistan views import of LNG on fast track to meet the growing demand of natural gas a supplementary fuel. Govt has mandated PQA to establish FSRU based LNG import terminals to meet the increased gas requirements in private sector. The Govt is also committed to a policy of privatization and de-regularization of economy. As such involvement of private sectors, entrepreneurs / sponsors of both Pakistani / foreign origin are encouraged to participate in the Establishment of FSRU Based LNG import Terminals. Reputed national and international companies have expressed interest to establish such facilities at PQA on BOT Basis and to submit their Technical and Financial Proposals including but not limited to:

  1. Design, finance, insure, construct, test, commission, complete, operate, manage and maintain dedicated Floating/Offshore LNG Terminal at Port Qasim financed on build, operate and transfer (BOT) basis.
  2. Concession period shall be 30 years from the date of commissioning of the terminal either as a multi or mono user facility on non-exclusive basis. PQA reserves the right to allow setting up of other LNG terminals in the port to foster competition and meet import/export requirements.

PQA is committed & mandated to provide all facilities at Port Qasim for the import of LNG in line with LNG policy 2006 and safety & security criteria to all stakeholders and investors in PQA.

Investment in the present scenario may be at risk due to any accidental, intentional terrorist attack, to identify and quantify the risks involved, there fore LNG Developers / sponsors have been asked to carry out proper & comprehensive QRA and marine risk study is carried out in the light of LNG Safety & Security Standards.

iii.Proposals are invited from well reputed Foreign Consultants in Engineering and Management in venture with their local Pakistani counterpart, to assist PQA in the implementation of LNG projects from Ports’ perspective while detailed designs, studies & surveys etc shall be the responsibility of Proponent LNG Developer / sponsor. The consultant shall be knowledgeable & experienced in Port planning, shipping and with adequate expertise in import LNG terminals, QRA and other required studies. Selection of firms will be based on merit, reputation, and experience in; LNG Terminals, works defined in scope of services and current procurement methods for projects on BOT Basis. This Guideline document shall outline procedure and instructions for the proponent consultant to prepare and submit their proposals and to all those activities on basis of which a proposal shall be evaluated.

2.2Project Background

iv.A preliminary study was carried out to earmark the most probable and feasible LNG enclave who is situated in a remote area away from the Port establishments with safe access through main Navigation Channel.

v.Till date nine reputed International Companies have expressed interest to establish LNG Terminal at Port Qasim, out of which 3 are proactive. The plan is to import LNG on urgent basis in Q-flex ships with draught and about 12 meter or more. They intend to place / moor a floating LNG unloading station with related safety system. But, in stage-wise development programme, a permanent jetty will come up in future at or in neighborhood of the same place with Navigation Channel and Nav Aids improved accordingly.

  1. PQA has Issued NOC to the interested stakeholders, for carrying out Quantitative / Qualitative Risk Assessment of probable sites in Port Qasim area in order to select a safe site for establishment of LNG Terminal meeting all the requirement of Port Safety & Security. Sponsors / investors have been advised to submit QRA reports to PQA for clearance. PQA seeks to get these reports, and other documents vetted / examined in the light of int. prevailing standards, practical approach to the problem and solution to the existing navigation and other expected risks from Ports Perspective.
  1. PQA is responsible for maintaining the navigation facilities in the channel. Port Qasim navigation channel is presently being maintained at approximately 12.0 m below PQA Chart Datum and is presently capable of handling upto 50,000 DWT ships in fair weather. PQA intends to dredge the channel in future to allow access for 75,000 DWT and above, ships in all weather.
  1. Port Qasim is in the process of Deepening & Widening of Navigation Channel to provide safe navigation to vessel of LOA 310m, beam 50m and Draught of 14m in all states of tide & normal weather conditions. Improvement of existing Nav-Aids, Night Navigation facilities, provision of Vessel Tracking System (VTS), straightening of bends in the navigation channel and provision of Two Way traffic is also in the list of reforms.
  1. LNG Terminal Developer / operator shall incorporate state-of-the-art technology, reliable and proven safety design features in strict compliance with LNG policy, Oil & Gas Regulatory Authority (OGRA) standards and relevant statutory and international codes, laws and regulations and should also fully comply with environmental protection regulations and requirements.
  1. The LNG Developers / sponsors shall extend navigation facilities, from main navigable channel, through dredging and navigational aids, up to the project’s terminal site. A turning basin shall be created and required dredging done alongside the terminal for all sizes of ships expected at the terminal. Maintenance of the required dredged depth alongside the terminal shall also be the responsibility of their own.

2.3TERMS OF REFERENCE

Consultant / Team of experts are required as advisors to assist PQA in implementation from ports perspective in the “Establishment of FSRU Based Offshore LNG import Terminals”

The main purpose of this assignment is to ensure that project be implemented in correct orderly fashion with no loss, harm or damage to port, its interest, business or to Government of Pakistan. Handling of LNG vessels, and import terminals require special SOPs, and compliance of international standards etc. The project needs to be implemented in such a way that routing shipping & navigation activity is least effected. This assignment is required to keep check over the LNG Developer / sponsor.

The scope of services for providing Engineering Consultancy Services for the Project shall comprise of allnecessary services including but not limited to the following.

Part-I Services: PROJECT FIESABILITY

The consultant is expected to determination of Project Feasibility, in view of Proposals, QRA and other reports submitted by proponent LNG sponsor.

The consultant shall out line a development programme.

Vet Design of structures

Phasing of tasks / assignments.

Detailed examination, vetting of each task and in specific sequence which can include but not limited to:

-Collection of previous data/documentation.

-Study, review and analysis of previous data.

-Recommendations for additional surveys, investigations & data.

-Environmental Impact Assessment (EIA) and socio-economic studies.

-Survey and investigations.

-Design of the project and project components / structures.

-Procurement issues / award of contracts

-Top Construction supervision and contract management.

-Monitoring and evaluation.

-Reporting requirements such as inception, periodic progress, and completion reports etc.

- Proposals (Technical & Financial), ImplementationAgreement and schedules of IA including following;

  • & M manuals.
  • & M performance contracts.

-Any other requirement which may vary with individual LNG terminal developer / sponsor.

Assist PQA in negotiations with bidders and finalization of Implementation Agreement, preparation of attachments and schedules to Implementation Agreements site plans, revision of drafts of Implementation Agreement from time to time during negotiations or based on PQA requirements etc.

Part-II Services: Project Implementation Stage
  1. Vetting of successful bidder's design, drawings work schedules, methodologies for compliance to design intent and giving recommendations regarding appropriateness for approval by PQA.
  1. Review of EPC contract documents etc.

Quality assurance audit of construction work, which shall include but not limited to the following:

  1. Quality check of construction work for its compliance to design intent.
  2. Review of construction procedure/ techniques.
  3. Review of Quality Assurance and Quality Control Plans of bidders.
  4. Review of acceptability of materials / equipment.
  5. Review of test results and investigation report.
  6. Review of technical data of plant and equipment.
  7. Submission of periodical progress reports with recommendations for action by PQA and Sponsors.
  8. Monitoring progress and scheduling.
  9. Witnessing necessary testing and commissioning of the Project.
  10. Monitoring of Maintenance during concession period
  11. Assist to PQA in handing / taking over the Project

2.4SCOPE OF SERVICES

Consultants would assist PQA in implementation of the project vis-à-vis the entire process until successful commissioning of project. The scope of work / services shall include but not be limited to the following:

  1. Devise criteria for selection of suitable parties capable of setting up LNG Terminal.
  2. Scrutinize and evaluate, Technical & Financial proposals submitted by proponent LNG Developers.
  3. Recommend / suggest improvements in proposals of LNG Developers which is in best interest of PQA in short and long-term.
  4. Vetting and clearance of QRA and related studies and other reports submitted by proponent LNG Developerson establishment of LNG Terminal with a view to select a most feasible site meeting all the required criteria of safety.
  5. Assist in preparation of various contract documents; guideline document for LNG developers, Implementation Agreement etc
  6. Monitor / top supervise, Quality control Audit in project implementation.
  7. Review Location, Design and Plan of LNG Zone.
  8. Make studies and give recommendations on movement of cargo and LNG vessels, including LNG vessels, including tug, Navaids and conservancy requirements, in order to maintain safety of port operations
  9. Select an appropriate and safe LNG terminal enclave in Port Qasim area considering the navigation limitations and other risks factors relative to LNG handling.
  10. Indicate technical problems/hazards on the development of LNG terminals at any prospective site such that the recommended site is feasible in all respect.
  1. Review the report under the risk based analysis result and assess and quantify potential threats to LNG ships
  1. Assess the submitted QRA Studies in the light of generally accepted and fairly relevant standards for each Terminal and moving ships passing through waterways (based on safe distances from radiated heat, gas dispersion, passing traffic etc.)
  1. Examine the QRA in the light of navigation channel suitability for an LNG ship in the light of prevailing wave, tide, current, wind and maneuverability conditions.
  1. Review of studies broadly based on the following factors.
  1. Physical characteristics of the site, dredging requirement, environmental problems and suitability of the harbour facilities at the expected locations with their cost implications.
  1. Evaluate and provide Port Qasim Authority (PQA) with an understanding of Quantitative & Qualitative Risk of LNG ship transiting and operating at their facility.
  1. Evaluate & Raise PQA’s awareness of risks allowing appropriate management controls to be implemented resulting in a reduction of business loss risk. Ensure protection of men and property from risk of potential LNG spills,
  1. Suggest precautionary measures and disaster management plan in case of any mishap.
  1. Evaluate and assess in the light of future traffic levels for other ships, based on present Ship traffic data (base case).
  1. Evaluate and examine the Marine Hazards study in the light following elements of HAZID register but not be limited to:
  2. LNG collision risk with other traffic
  3. LNG grounding risk
  4. LNG vessels being struck at berth
  5. LNG vessel cargo tank penetration and loss of containment
  6. LNG spill during unloading/Gas Cloud Dispersion analyses
  7. Comparative site assessment and marine impact report, with a ranking of each proposed locations.
  8. Existing and future traffic movements.
  9. Existing PQA traffic management & procedures including pilot boarding and landing arrangements, anchorages, navigation rules (e.g. no overtaking, speed limitations, one-way traffic flow etc).
  10. Environmental conditions hampering ship movements
  11. Scheduling of vessels and potential dwell time distribution.
  12. Navigational hazards against a qualitative risk matrix of probability and consequence to people, environment, assets and reputation.
  13. Existing port layout, resources, ship traffic profile and distribution
  14. Draught and water depth requirements for LNG carriers and ecological disturbances
  15. Trestle length and jetty head location
  16. Passing vessel effects/innocent passage
  17. Quantitative and Quantitative justification for selection of LNG site.
  18. All other aspects of safety and security involved in LNG handling in a Port.
  1. Provide technical opinion on the expected Terminals and suggest alternate sites if required in the light of Safety and Security Standards specifying their advantages and disadvantages with cost effect, for better planning.

  1. LETTER OF INVITATION (LOI)

Subject:Invitation of Proposals from reputed international engineering & management consultants to Top surpervise & assist PQA for LNG fsru terminals, to be established on bot basis by public, private investors / sponcers

1.INTRODUCTION

1.1Interested Consulting firms are hereby invited to submit a technical and financial proposal for consulting services required for the Assignment named in the attached LOI Data Sheet (referred to as “Data Sheet” hereafter) annexed with this letter. Your proposal could form the basis for future negotiations and ultimately a contract between your firm and the Client named in the Data Sheet.

1.2 A brief description of the Assignment and its objectives are given in the Data Sheet. Details are provided in the attached TOR.

1.3 The Assignment shall be implemented in accordance with the phasing indicated in the Data Sheet. (When the Assignment includes several phases, continuation of services for the next phase shall be subject to satisfactory performance of the previous phase, as determined by the Client).

1.4 PSP department has been entrusted the duty to implement the Project by Port Qasim Authority and funds for the project for the phase have been approved and provided in the budget for utilization towards the cost of the Assignment, and the Client intends to apply part of the funds to eligible payments under the contract for which this LOI is issued.

1.5 To obtain first-hand information on the Assignment and on the local conditions, you are encouraged to visit to the Client before submitting a proposal and attend a pre-proposal conference if specified in the Data Sheet. Your representative shall meet the officials named in the Data Sheet. Please ensure that these officials are advised of the visit in advance to allow adequate time for them to make appropriate arrangements. You must fully inform yourself of local conditions and take them into account in preparing your proposal.

1.6 The Client shall provide the inputs specified in the Data Sheet, assist the Consultants in obtaining licenses and permits needed to carry out the services, and make available relevant project data and reports.

1.7 Please note that:

  1. The cost of preparing the proposal and of negotiating the contract, including a visit to the Client, are not reimbursable as a direct cost of the Assignment; and
  2. The Client is not bound to accept any of the proposals submitted.

1.8 This is an open invitation to firms to submit proposals that have experience and expertise relevant to the works outlined in scope of services.

1.9 We wish to remind you that in order to avoid conflicts of interest:

  1. Any firm providing goods, works, or services with which you are affiliated or associated is not eligible to participate in bidding for any goods, works, or services (other than the Services and any continuation thereof) resulting from or associated with the project of which this Assignment forms a part; and
  1. Any previous or ongoing participation in relation with the project by your firm, its professional staff, its affiliates or associates under a contract may result in rejection of your proposal. You should clarify your situation in that respect with the Client before preparing the proposal.

2.DOCUMENTS

2.1To prepare a proposal, please use the attached Forms / Documents listed in the Data Sheet.

2.2Consultants requiring a clarification of the Documents must notify the Client, in writing, not later than Twenty one (21) days before the proposal submission date. Any request for clarification in writing, or by cable, telex or telefax shall be sent to the Client’s address indicated in the Data Sheet. The Client shall respond by cable, telex or telefax to such requests and copies of the response shall be sent to all invited Consultants.