Contract No. EP/SP/173/20Pilot Biochar Production Plant in EcoPark

Pre-tender Briefing

DATE: 21 June 2021

• No information presented or oral information given in this session should be taken as varying the information in the tender documents unless subsequently confirmed in writing

• If there any discrepancies between information presented in this briefing session and information/requirements specified in the tender documents, the information/requirements specified in the tender documents shall prevail

• Neither the HKSAR Government nor its agents owe any duty of care or are liable to any body in respect of any errors, omissions, discrepancies or deficiencies relating to information presented in this briefing session

• Information presented in this briefing session is not exhaustive and is subject to change without prior notice

• No information/requirements presented in this briefing session shall be used without written permission of the Environmental Protection Department of the Government of Hong Kong SAR

• Questions of contractual relevance should be put in writing in form of “request for clarification”

• No notes or minutes of this meeting will be provided

• No photo taking or any form of voice or video recording is permitted

• Participants, who remain for the meeting, are deemed to have agreed to these conditions

Key Contract Features

Points to Note in Tender Preparation

Tender Evaluation

Site Visit Arrangement

• The Contractor is responsible for the design, procurement, construction, commissioning and operation of the complete PBPP to conduct the Pilot Tests and to produce the Biochar Products.

Design & Build

(1 year)Pilot Tests

(0.5 year)

Production

(3.5 years)

Works Period (1 year) Operation Period (4 years)

Contractor may commence Production

sooner if Pilot Tests are completed

ahead of time

Process

Equipment

(PE)

Balance of

Plant (BoP)PBPP

Specification Section Subject

6 Design Brief

7 PE Design

8 BoP Design

Production

Pilot Tests

Pilot Tests for testing of

carbonisation conditionsPre-Production Trial

Operation

Supply of PWW

To be determined by

Employer, subject to a

“Guaranteed Minimum

Tonnage of PWW”

(GMTPWW)

15 tpd (as received)

PWW Type A

Production Target (T) to be

set by Employer quarterly

between:

Guaranteed Minimum Order

(GMO)

175 tonnes (dry) per quarter

Plant Design Capacity (PDC)

316 tonnes (dry) per quarter

Act

ual O

utp

ut

by C

on

tract

or

(A)

If T ≥ A All tonnage at tendered

rates

If C ≥ A > T

All tonnage up to T at

tendered rates

Surplus amount

(S = A - T)

Employer (E) has first right to

buy at tendered rates

If right not exercised by E,

Contractor may sell to others and

keep proceeds

If A > C

All tonnage up to T at

tendered rates

Surplus amount (S)

E has first right to buy at

tendered rates

If right not exercised by E,

Contractor may sell to others and

keep proceeds

Above Ceiling Amount

(= A – C)

Contractor may sell to others and

keep proceedsT = Target Amount

A= Actual Amount

C = Ceiling Amount = 316tpq

• Provision of Process Equipment

• Price Capping

• The Contractor shall design, procure and deploy the Process Equipment onto the Site and integrate the Process Equipment with other works (i.e., balance of plant) to deliver (construct, test and commission) a fully functional PBPP

• Process Equipment is not part of the Works

• Provision of Process Equipment is to be priced in the Schedule of Prices for Operation Fees

• The Employer has the right to acquire the PE at the end of the Operation Period if he so desires for a price to be tendered by the Contractor

14

Ten

der

Pri

ce Schedule of Price for

Capital Value

C1 – Safety, Enviro

and Cleaning

C2 – Works

C3 – Land Transport

C4 - Contingency

Schedule of Price for

Operation Fees

• C1, C3 and C4 are pre-

determined by Employer to

simplify administration of

cap

• If CV cap (14% of TP) is

violated, the excess amount

(CV) will be paid without

price fluctuation in 4 equal

instalments at end of: 2nd,

6th, 10th Production Quarter

and Production Period

15

To

tal O

pera

tio

n F

ees

D1 – Biochar Production

D1.1 Basic Grade

D1.2 Premium/

Enhanced Premium

D2 - Service

Management & Facility

Availability

D2.1 General

Management service

D2.2 Provision of PE

D2.3 Provision of Min.

No. of Operators

D2.4 Provision of asset

maintenance

D2.5 Provision of Ind

Surveyor

D3 (Daywork) & D4

(Price Fluctuations)

D5 – Acquisition of PE

(provisional)

D6 – ER’s Land

Transport Service

(provisional)

D7 – Pilot Tests ($ pre-

determined by EPD)

D8 - Ambient Air

Quality Monitoring

(provisional)

• D2 ≤ 70% of Total Operation Fees (TOF)

• If cap is violated at tender, the excess

amount SM&FA will be deducted from

Item D2 by reducing the rates for D2.1,

D2.2, D2.3, D2.4 & D2.5 proportionally.

• Then SM&FA will be added to D1 and rates

for D1.1 and D1.2 will be increased accordingly in a pro rata manner.

• Rates or prices for D3, D4, D5, D6, D7 and

D8 will remain unchanged.

• The above adjusted rates will be adopted

for Tender Assessment as well as for

payment.

• Technical Submission

• Price

Two-

envelope

system

• 70 (Technical)

• 30 (Price)Weighting:

Stage 1

Completeness

Stage 2 Technical

Assessment

Stage 3 Price

Assessment

Stage 4

Combined Score

If a Tenderer fails to submit any of the information/documents stipulated below

before the Tender Closing Time, his Tender will be treated as non-conforming

and will not be considered further in the tender assessment:

• Outline Design referred to in Clause 4.3(a)(ii) of the Conditions of Tender (COT)

• Outline Contractor’s Plans referred to in Clause 4.3(a)(iii) of the COT

• If Tenderer is a joint venture (JV), in Form 1B, as referred to in Clause 4.3(b)(iii) of

the COT with the following information completed:

• nomination of lead participant or major shareholder, and

• the proposed percentage participation and part of Service to be provided by

each participant or shareholder in the joint venture

No price or any financial information is to be shown in any of the Technical Submission documents.

Two Assessment Attributes:

1. Execution Plan (86%) 2. Experience and Qualifications (14%)

Attribute 1 – Execution Plan Assigned Full Mark Passing Mark

1.1 Contractor’s Plan and Outline Design

1.1.1 Outline Service Management Plan 2

14.5*

1.1.2 Outline Design 30

1.1.3 Outline Construction Plan 10

1.1.4 Outline Pilot Tests Execution Plan 4

1.1.5 Outline Production and Facility Maintenance Plan 12

1.2 Enhancement to the Process Equipment

1.2.1 Increased PBPP design capacity 2 --

1.2.2 Production of Enhanced Premium Grade Biochar Product 8 --

1.3 Innovations

1.3.1 Innovations in Design 10 --

1.3.2 Innovations in Construction 2 --

1.3.3 Innovations in Pilot Testing 2 --

1.3.4 Innovations in Production and Maintenance 4 --

Subtotal (Attribute 1) 86 See Note*

The total mark achieved on items under Sub-attribute 1.1 must be 14.5 or higher to passAttribute 1. Failure to satisfy the passing mark requirement for Attribute 1 shall renderthe Tender non-conforming and not being considered further

Attribute 2 – Experience and Qualifications Assigned Full Mark Passing Mark

2.1 Company Experience

2.1.1 Waste Treatment Facility Contracts 1 --

2.1.2 Mechanical Plant and Equipment Contracts 1 --

2.1.3 Biomass Carbonisation Facility Contracts 1 --

2.1.4 Biochar Production Experience 1 --

2.2 Personnel Experience and Qualifications

2.2.1 Service Manager 1 --

2.2.2 Construction Manager 2 --

2.2.3 Commissioning Manager 1.5 --

2.2.4 Operation Superintendent 1.5 --

2.2.5 Biomass Carbonisation Expert 2 --

2.3 Equipment Track Record

2.3.1 Carbonisation System having IBI-compliant biochar production track record 2 --

Subtotal (Attribute 2) 14 --

The Financial Proposal of Tenders that pass Stages 1 and 2 will be checked to

ensure completeness and compliance with the requirements as set out in

Clause 4.3 of the COT.

Failure to submit a duly completed Financial Proposal in accordance with

Clause 4.3(d)(ii), (iii), (iv) and (v) of the COT or submitting only a partial offer

will render a tender invalid and will not be considered further.

Discount Cash Flow analysis will be applied.

• Subject to the COT, normally, the Tender with highest combined score would be recommended for acceptance subject to the requirement that the Employer is satisfied that the Tenderer has not been disqualified (or having its Tender not being considered further) for failing to comply with any other requirements set out in the Tender Documents, that the recommended Tenderer is fully (including technically, commercially and financially) capable of undertaking the Contract, and that the recommended Tender is the most advantageous to the Government in accordance with the tender provisions.

• COT 16 - Without prejudice to the generality of other clauses in these COT, the Employer may reject a Tender which in the opinion of the Employer is unreasonably low in terms of price and may therefore affect the Tenderer’s capability to carry out and complete the Contract and/or deliver work and services as required in accordance with the terms of the Contract.

• 13 August 2021

• Before 12:00 noon

Tender Closing

Date/Time:

• G/F, East Wing,

Central Government Offices,

2 Tim Mei Avenue, Tamar

Tender Box

Location

Date: 23 June 2021

Time: Afternoon, exact time to be advised

Assemble Point: Entrance of Administration Building, EcoPark, 133 Lung Mun Road, Tuen Mun Area 38, N.T.

End of Presentation