The Tender on realization of the exporting electricity by the Ltd. “Engurhesi” on the border of Georgia and Republic of Turkey

I. General terms of the supply of the electricity


1.    The total exporting forecasting volume of the distribution of the electricity generated by the Ltd. “Engurhesi” during the month of June, 2020 shall be at a capacity up to 100 MW (Base Load).


2.    The supply of the electricity by the Supplier will be provided with fulfillment of the terms of DAP, INCOTERMS 2010 (up to the Georgian-Turkish border, Substation Akhaltsikhe 500/400/220 transmission line – Meskheti).


3.    The forecasting calendar plan-schedule of delivery of the electricity of an accounting month is confirmed by the Parties of the Agreement together with the Agreement, and any amendment or changes into the schedule should be agreed prior to the beginning of the accounting period.


4.    The schedule of the accounting month, prior to the month or within the period of the currency of the month, as well as proceeding from the actual reasons independent upon the Supplier as well as other force-majeure circumstances which also may be connected with deficiency of the water inflow, the technical operational requirement of Georgia or Turkey, the damage transmitting system of Georgia or Turkey, systematic collapse or any other case causing, may suffer from significant corrections and therefore because of such circumstances the Supplier is excluded from  its responsibilities. 


5.    Temporary termination (interruption) of the delivery, which will be recognized as a reasonable excuse in case of requirement of a technical operator of the system (including operative requirement) and existence of such circumstance should be informed to the Buyer within at least  24 (twenty four) hours since their appearance. Therefore such circumstances exclude the Supplier from its responsibilities. 

II. Terms of submittal of a Commercial Offer


1.    The Applicant, according to paragraph 2 of the present announcement, shall submit via E-Mail:


1.1.    A commercial offer in English with indication of definition of a price per 1 kWh (in USD cents with rounding to hundredth) in accordance with the following formula
Exp.Price = EP / USDER –    % of EP/USDER


Where:


Exp. Price (Export Price) is – the value of 1 kWh exporting electricity to be supplied by the Seller on the Turkish-Georgian border.


EP (EPIAS PTF-Price) is – on the Turkish electricity market (see) the average daily price (based on the hourly prices) in Turkish Lira for procurement of 1 kWh electricity in the respective reporting month.


USDER (US Dollar Exchange Rate) is - the official exchange rate between the US Dollar and Turkish Lira fixed in the specific reporting date (day) in the Republic of Turkey (see).


The value of 1 kWh of electricity shall include all fees and taxes payable and associated with the delivery of electricity up to the Delivery Point in Republic of Turkey.


1.2.    A reference confirming a right of wholesale trade with electricity in the Republic of Turkey and/or a right of the direct consumer (scanned version). 

 

2.    Besides, the winning applicant prior the agreement must provide the following:


2.1.     The documents defined in paragraph 1.2. which should be apostilled or legalized by a competent authority( in English);


2.2.     An unconditional and irrevocable Bank Guarantee or Letter of Credit authenticated or approved by a one of the licensed Bank of Georgian encompassing the volumes of electricity that is set to be purchased. The above must be valid for at least 40 days beyond the expiration of the contract. The issuer of the letter of credit or Bank Guarantee  must be one of the banks acting in the Republic of Turkey: Garanti Bankasi, Yapi Kredi Bankasi, Deutsche Bank, Is Bankasi, Citibanki, Akbank or by other banks having International recognition in Turkey or in other members-countries of the Organization of Economic Cooperation and Development (OECD). Engurhesi Ltd. reserves the right to rely on the information of the National Bank of Georgia, and on this basis, taking into account the bank's credit ability and accountability and independently decide whether the documents provided is acceptable.


3.    The documents indicated in the paragraph 1 shall be submitted by the Applicant no later than the 3 June, 2020, 03:00 p.m. (Georgian Time) from the day of publishing of an announcement on the official web-site of the Ltd. “Engurhesi”, www.engurhesi.ge. If not, an offer submitted by the Applicant will be recognized as a withdrawn. A commercial offer and all respective documents shall be submitted via following email: info@engurhesi.ge. 

 

III. Terms of verbal trade and evaluation of a commercial proposal


1.    The winner will be the Applicant who represented the highest price (lowest percentage rate). In case of equal prices, the priority will be given to the Applicant having fixed the highest price first (lowest percentage rate).


2.    In case of proposing of an unreasonable price which isn’t acceptable, the Ltd “Engurhesi” reserves all rights not to conclude an Agreement on supply of the electricity. Any result of the Tender will be declared as annulated and currency of the Tender won’t be followed by any legal result that, accordingly, excludes submittal of any kind of claim towards the Ltd “Engurhesi”.

 

IV. General terms of conclusion of the Agreement


1.    The terms and Conditions of the Electricity Export Contract will be defined solely by Ltd. “Engurhesi”. 


2.    An obligatory term is “Take or Pay” stipulated by the Paragraph 5 of the Article 145 of the Order #77 issued by the Minister of Energy of Georgia on 30th of August, 2006, that means that in case of final confirmation of the calendar plan-schedule of delivery of the electricity of the accounting month (months) by the Parties and if the Buyer fails to purchase the electricity defined by the above mentioned schedule the Buyer will be responsible to compensate the whole amount of electricity whether or not taken.


3.    By the moment of conclusion of the Agreement, an agreement on transboundery trade with electricity existing between the power systems of Georgia and Turkey and Operating Agreement concluded between the Ltd. “Energotrans” and the company of the Turkish Republic “Turkish Electricity Transmission Corporation” (TEIA$), including (NTC/ATC) Application dated 24 July, 2014 on capacity of the Akhaltsikhe-Borchkha power transmission line 400 kw” which was mutually confirmed by Energotrans and TEIA$ (see - http: GSE.COM.GE). The Parties recognize the terms of this Agreement(s) as obligatory for fulfillment.


4.    The Buyer with its own efforts and expenditures is obliged to acquire all licenses, permits, registration or accreditation necessary for importing of the electricity in the Republic of Turkey timely, and with this regard to conclude all necessary agreements (including on the necessary service) with relevant authorized enterprises and organizations acting in Turkey, to provide a relevant registration and agreement of the import with tax authorities of Turkey. 


5.    According to the Georgian Legislation in case of necessity of obtaining the transfer capacity volume of interconnection transmission line for the purpose of selling the electricity on the border of Turkey,  Ltd. “Engurhesi” will participate in auction of allocation of the capacity of the current 400 kW line conducted by the JSC “Georgian State Electrosystem” and will fulfill all its obligations in scopes of the capacity received as a result of this auction and allocation. After that the volume of the transfer capacity is finally defined by auction, the responsibility of the Ltd. “Engurhesi” will be limited to 80 (eighty)% of  capacity acquired as a result of allocation, however  the Ltd. “Engurhesi” and Ltd“Vardnilhesebis Kaskadi” remain the right to supply full (100%) volume acquired by auction. The Buyer of exporting electricity is obliged to agree the above conditions and to make the amendments to the supply schedule stipulated by the contract. The responsibility of Ltd. “Engurhesi” is limited only to the proportion of undelivered electricity price which excludes any other demands on the compensation of the damages including consequential damages. Ltd. “Engurhesi” becomes responsible only for failing obligations to supply electricity during the accounting month, but not during the hour, day or decade.


6.    The Electricity Export Contract shall be regulated by the Georgian legislation. All and any disputes arising out of or in connection with The Electricity Export Contract shall be finally settled exclusively only by the courts of Georgia, excluding all and any other state courts jurisdictions and arbitration. This choice of jurisdiction of Georgian state courts shall confirm parties agreement on exclusive jurisdiction of Georgian state courts for all and any disputes arising out of or in connection with contract. Any/either party acting against and in breach of the above clause shall be liable to another party for payment of penalty in amount of (100,000.00 USD).