MiaCCHI

Piazza F. Buffoni, 3 - 21013 Gallarate (VA) - Italy Capitate Sociale Euro 80.452.111,00 i.v.
Tel. +39.0331.738111 Reg. Imprese Milano 08554110158
Fax+39.0331.781589 R.E.A. Ml 1232283
E-mail: macchi@macchiboiler.it C.F/P.1.08554110158
www.macchiboiler.it Sede legale:
STEAM & POWER GENERATION Via Conservatorio, 17 - 20122 Milano

Messrs
PT. PP (Persero), Tbk
Jl. Letjend TB Simatupang No. 57
Pasar Rebo, Jakarta Indonesia

OurRef. : P9773-TM-6
th

PROPOSAL P9773- TM - 6
(priced for LOI within November 30 , 2015)
Client PT. PP (PERSERO)
Project GRESIK GAS COGENERATION PLANT PROJECT
Subject No. 1 PACKAGE BOILER, rated:
•1 steam capacity at MCR t/h 100
•2 steam pressure at our B/L kg/cm2g 51
•3 steam temperature at our B/L °C Indonesia 425
Location Outdoor
Installation

Rev. 6/20.11.2015-Seventh issue.......................................................................................... MAF

Rev. 5/13.11.2015-Sixth issue........................................................................................ FEP/MAG
Rev. 4 /29.10.2015 - Fifth issue.............................................................................................. MAG
Rev. 3 /09.10.2015 - Fourth issue............................................................................................ FEP
Rev. 2 /12.06.2015 - Third issue.............................................................................................. FEP
Rev. 1 /31.03.2015 - Second issue.......................................................................................... MAB
Rev. 0 /27.02.2015 - First issue................................................................................................ MAB

Questo documento e tutte le informazioni in esso contenute sono strettamente riservate di proprieta Sofinter S.p.A. Divisione Macchi, da non
utilizzare per scopi diversi da quelli per cui sono state fornite.
This document and all information thereon are strictly confidential and property of Sofinter S.p.A. Macchi Division and can't be used for any
purpose other than those they have been provided.

Sofinter roup
Divisions operaliva di SOFINTER S.p.A.
 MnCCMI
STEAM & POWER GENERATION

INDEX
Page
FOREWORD.......................................................................................................3
MAIN DESIGN DATA..........................................................................................5
SCOPE OF SUPPLY AND EXCLUSIONS...........................................................6
NET BASE PRICE..............................................................................................6
OPTIONS............................................................................................................7
OPTIONS VALIDITY...........................................................................................7
DELIVERY SITE.................................................................................................7
DELIVERY TIME.................................................................................................7
PAYMENT TERMS..............................................................................................8
LIQUIDATED DAMAGES....................................................................................8
APPLICABLE CODES........................................................................................9
DEGREE OF SHOP FABRICATION..................................................................10
PAINTING SYSTEM..........................................................................................11
SUPPLY LIMITS................................................................................................12
WARRANTY PERIOD.......................................................................................12
GOVERNING LAW AND DISPUTE RESOLUTION...........................................12
CHANGES IN LAWS.........................................................................................13
LIMITATION OF LIABILITY...............................................................................13
LIQUIDATED DAMAGES..................................................................................13
TITLE AND RISK..............................................................................................13
FORCE MAJEURE...........................................................................................14
SUSPENSION..................................................................................................15
TERMINATION..................................................................................................15
PRIORITY OF DOCUMENTS............................................................................16
TIME LIMITS.....................................................................................................16
INTELLECTUAL PROPERTY RIGHTS (IPR)....................................................16

Enclosure: UPDATED SCOPE OF SUPPLY AND WORK FORM TABLE

V
group
[p.
Sofinter
Divisione operativa di SOFINTER S.p.A.
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 MRCCHI
STEAM & POWER GENERATION

FOREWORD
This proposal mainly refers to the engineering and design, materials and
equipment procurement, shop fabrication and assembling, shop inspection and
tests, packing and delivery of No. 1 PACKAGE BOILERS with ancillary
equipment, destined to GRESIK GAS COGENERATION PLANT Project in
Indonesia.
In accordance with our good experience in similar projects, we have decided to
quote you our TITAN M Boiler Model, mainly characterised by the following
features:
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I•4 MACCHI std. design
•5 fully pre-engineered boiler model
•6 bi-drum (steam & water drum)
•7 natural circulation
•8 MACCHI low NOx burners
•9 membrane walls enclosure
•10 bottom supported
•11 tubes connected to drums by expansion
•12 high steam purity
•13 pressurized furnace
•14 horizontal gas path
•15 fully drainable design
•16 minimum use of refractory
•17 large accessibility
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STEAM & POWER GENERATION

Boiler pressure parts will be fully shop assembled in a single big block, excluding
external insulation/lagging, suitable for the following handling procedures:
•18 roll-on/roll-off by means of low bed trailers
•19 lift-on/lift-off by means of crane (spreader beam not necessary)

The following hydro-tests will be performed before shipment:

•20 boiler big block hydro-test
•21 superheater hydro-test
•22 economizer hydro-test

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MAIN DESIGN DATA

The boiler is designed in accordance with the following main data:
t/h 100
2
kg/cm g 51

°C 425
% MCR 25 to 100
% MCR 25 to 100

°C 105
% 93
mg/Nm3 320

dB(A) 85

Natural Gas
Safe (not hazardous)

Gross steam capacity at MCR

Superheated Steam pressure at our B/L
Superheated Steam temperature at our B/L
Steam temperature control range
Automatic load control range
Boiler feed water temperature
Thermal efficiency at 100% MCR (ref. to LHV)1
NOx emissions limit2
Noise level at 1 m from each equipment3
Fuel
Installation area
1
Based on 80% R.H. (ax 33 °C
Referred to 3% 02 - dry gas VJ
3
Noise limit referred to continuous noise sources in free field conditions (not applicable for
discontinuous noise sources such as start-up vent and PSVs vents)
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SCOPE OF SUPPLY AND EXCLUSIONS

Please see attached UPDATED SCOPE OF SUPPLY AND WORK FORM TABLE.

NET BASE PRICE

Engineering and design, materials and equipment procurement, shop fabrication and
assembling shop inspection and test, packing and delivery of No. 1 PACKAGE BOILER
with auxiliaries listed in our SCOPE OF SUPPLY:
Final best price for LOI within November 30th, 2015_______________USD

The above final best price is based on combined order for PACKAGE BOILER
and HRSG. /'«

As agreed, the above final best price also include:

•23 No. 1 set of two years critical spares (MACCHI standard list)
•24 Three days site training (including training manuals in English language)
•25 Two man-months site technical assistance during erection
•26 One man-month site technical assistance during test, commissioning and start-
up
•27 Overseas transportation (CIF delivery)

As agreed, the above final best price does not include the following items that has been quoted
as option herein below:
•28 stack warning lights
•29 fuel gas PCV
•30 sampling rack
•31 silencers for PSVs vents
•32 final painting for steelwork
•33 materials for external insulation and lagging
•34 Package Boiler/HRSG common
interconnecting piping/piperacks/valves/field instruments

4U*
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STEAM & POWER GENERATION

APPLICABLE CODES

Boiler and ancillary equipment will be designed, manufactured and tested in

accordance with the following main Codes and Standards:

Boiler pressure parts ASME Section I (with Shop Stamp "S")

Unfired pressure vessel ASME Sec. VIII
Pressure parts materials ASME II
Pressure parts welding ASME Section IX
Power piping ASMEB31.1
Others piping ASMEB31.3
Flanges ANSI
Valves ANSI
Firing system NFPA 85
Boiler water and feedwater quality ABMA-VGB
FDFan API 560
Electric equipment IEC
Steam Turbine API 611
BFW pumps DIN
Noise ISO
Structural steel AISC
Stack CICIND
Boiler efficiency ASME PTC 4
Measuring units Metric System
Documents & drawings language English

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STEAM & POWER GENERATION

DEGREE OF SHOP FABRICATION

Our quotation is based on following large shop pre-fabrication degree:
■ Boiler:
Boiler pressure parts fully shop assembled and hydro-tested in a single big block,
without external insulation/lagging including:
•35 steam drum with internals
•36 water drum with saddles
•37 furnace membrane walls
•38 risers & feeders tubes
•39 boiler bank tubes
•40 boiler bank walls
•41 superheater (separately hydro-tested)
•42 sealing plates
•43 buckstays
•44 access doors
•45 peepholes
•46 refractory (except short preservation refractory and furnace tiles)
•47 temporary base frame for boiler big block transportation (to be removed
before positioning onto foundations)
■ Economiser:
Single package, fully shop assembled and hydrotested, including casing (without
external insulation and lagging)
■ FDFan and driver:
Skid mounted (suction duct and silencer separately shipped)
■ Burners:
Two packages
■ Windbox and Ductwork:
Several prefabricated sections (in accordance with normal transportation limits 2.5 x 2.5
x 6 m)
■ Stack:
Three/four prefabricated sections to be welded at site
■ Silencer for start-up vent and PSVo vonto:
Package
■ Piping:
•48 Prefabricated two dimensions spool > 2"
•49 In commercial dimensions < 2"
■ Piping supports:
•50 Prefabricated for piping > 2"
•51 In commercial dimensions (not prefabricated) for piping < 2"
■ Valves & field instruments:
Supplied loose
■ Deaerator:
> Two packages (deaerator storage tank & deaerating tower)

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CBD & IBD tanks:

Two packages
Chemical dosing:
Skid mounted
BFW pumps and drivers:
Skid mounted
Platforms, ladders:
Several prefabricated panels (flat shape) ready for site bolting
Handrails, feetguard, etc.:
Prefabricated in flat panels
Gratings:
Prefabricated panels
Refractory (short preservation) and furnace tiles:
In commercial dimensions
Burner local panel:
Fully wired up to terminal strips
BMS/BCS logic cabinet:
Fully wired up to terminal strips
Pneumatic tubing:
In commercial lengths
Auxiliary cabling and cable trays:
In commercial lengths
Sampling s]
Rack mounted

PAINTING SYSTEM
Our proposal is based on the following coating and painting system:
•52 boiler big block: protected by means of bituminous coating (FINA coating SV6-
0131 or equivalent)
•53 gas duct and stack (external surface): sand blasting and epossic rich zinc
•54 steel structures: sand blasting and inorganic zinc
•55 ladders, grating: hot dip galvanized (ASTM A 123)
•56 prefabricated piping: sand blasting and inorganic zinc
•57 machinery and instruments: final painting

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SUPPLY LIMITS
The quoted price is based on following supply limits:
Piping:
Grouped close to the boiler and dearator
Combustion air:
FDFan suction
Flue gas outlet:
main stack outlet (H=45m)
Auxiliary cabling:
terminal strips on local JBs/panel
terminal strips on BMS logic cabinet
terminal strips on BCS logic cabinet
Power cabling:
terminal strips on each user

WARRANTY PERIOD
Macchi warranties cover all the materials and equipment in its scope for 18
months from start-up or 24 months from goods delivery, whichever comes first.
Should any failure be reported in writing to MACCHI within said period, it will
repair or replace the defected item; in no case the warranty period shall exceed
36 months from goods delivery, including 12 months extension for
repaired/replaced parts.
It is anyway understood that the effects of corrosion, erosion and normal wear
are specifically excluded from Macchi's warranty and that the equipment must be
stored, installed or erected, maintained and operated in accordance with good
industrial practice recommendations and Macchi's operating instructions.
Consumables like lamps, fuses, gaskets, bearings, SOVs etc. are not covered by
this warranty.

GOVERNING LAW AND DISPUTE RESOLUTION

The Contract shall be governed by and shall be interpreted in accordance with
the laws of Switzerland without reference to its conflicts of law provisions. Any
disputes arising out of, or in connection with, the Contract, including but not
limiting to, its existence, validity, construction, interpretation, implementation,
performance and termination (or any terms thereof), which the Parties are not
able to resolve amicably, shall be referred to and finally resolved by arbitration
tribunal, consisting of three (3) arbitrators. The Arbitration shall be held in Zurich,
Switzerland in accordance with the Rules of International Chamber of
Commerce. The language for any required arbitration shall be English. The
arbitral award shall be final and binding.

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STEAM & POWER GENERATION

CHANGES IN LAWS
Changes in laws and regulations shall lead, where applicable, to the adjustment
of the Contract Price and Delivery Schedule.

LIMITATION OF LIABILITY
In no event Macchi and/or Macchi Sub-vendors/Sub-contractors shall be liable for
any indirect and/or consequential damage and/or loss of profit and/or loss of
production and/or loss of use. Macchi's liability shall be limited to the direct
damages caused to its client.
Macchi's overall liability, including payment of Liquidated Damages, if any, shall
never exceed 100% of total Contract Price.

LIQUIDATED DAMAGES
Liquidated Damages shall be the sole and only remedy available to the client and
the sole and only Macchi's liability in regard to the default for which they are
applied.

TITLE AND RISK

The title of the Goods shall pass to the Contractor upon (i) the delivery of the
Goods or (ii) upon payment for the Goods or any part, whichever occurs first. The
risk of the Goods shall pass upon their delivery in accordance with the agreed
Incoterms.

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FORCE MAJEURE
The Force Majeure events include, but are not limited to the following:
earthquake, tsunami, extraordinary flood, cyclone, typhoon, tornado or other act
of God; extreme weather conditions; war; embargo; revolution, insurrection, or
military or usurped power, or civil war; contamination by radio activity from any
nuclear fuel, or from any nuclear waste from the combustion of nuclear fuel,
radio-active toxic explosive, or other hazardous properties of any explosive
nuclear reaction or nuclear component of such assembly; action by
Governmental Authority which prevents performance of affected Party's
obligations; national, regional or industrial strikes, civil disobedience, riots, civil
disorders, but, in each case, only if and to the extent that: 1) such event or
circumstance was unforeseeable at the time of the conclusion of the Contract;
and 2) such event or circumstance, despite the exercise of reasonable diligence,
cannot be prevented, avoided or removed by the affected Party, and 3) such
event of Force Majeure adversely affects the ability of the affected Party to
perform its obligations under the Contract, and such Party has taken all
reasonable precautions, due care and reasonable alternative measures in order
to avoid the effect of such event on its ability to perform its obligations under the
Contract and to mitigate the consequences thereof; and 4) such event or
circumstance is beyond the direct or indirect control of and is not the direct or
indirect result of the failure of such affected Party to perform any of its obligations
under the Contract. The Parties shall endeavour to continue to perform their
obligations as far as reasonably practicable and use all reasonable endeavours
to prevent and reduce to a minimum and mitigate the effects of the event of Force
Majeure. Neither the Contractor nor the Supplier shall be considered in default or
in contractual breach to the extent that performance of obligations is prevented
by a Force Majeure event. During an event of Force Majeure, each involved Party
shall bear its own costs and charges. If a Force Majeure event occurs and its
effect continues for a continuous period of six (6) months or nine (9) months in
aggregate, each Party shall be entitled to terminate the Contract. If the Contract
is terminated under this clause, the client shall pay to Macchi the price of Goods
which are already delivered or ready to be delivered and the work in progress.

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SUSPENSION
The client may at any time from time to time to suspend temporally, in whole or in
part, execution of the Contract by a written request to Macchi. Suspension shall
come into force from the date of receipt of the request by Macchi or from any
other date specified in the request. Macchi shall suspend the execution of whole
or part of the Contract as indicated in the request and undertakes to ensure the
security, storage and transportation of the Goods in progress or performance of
the part of the Contract not affected by the suspension. Macchi shall renew
execution of the Contract as soon as requested by the Contractor, making every
effort to reduce to a minimum the delay caused by the suspension. Macchi shall
have the right to an extension of the contractual delivery deadline and
compensation of all costs due to such suspension. In case of the delayed
payment of any due and undisputed invoice, the interest rate equal to Euribor on
quarterly basis + 4% spread shall apply. Without prejudice to the late payment
interest, should the client fail to pay any due and undisputed invoice for more
than 30 (thirty) days, Macchi shall be entitled to suspend the execution of the
Contract and the suitable adjustment of the Contract Price and Delivery Schedule
shall be agreed upon. Should the total suspension period for whatever reason
exceed continuously ninety (90) days or one hundred and eighty (180) days in
aggregate, each Party shall be entitled to terminate the contract and the
consequences of the termination for convenience shall apply.

TERMINATION
The client may terminate the Contract at its sole discretion at any moment for
convenience submitting sixty (60) days prior written notice to Macchi, provided
that the client shall pay to Macchi the price of Goods which are already delivered
or ready to be delivered and all work in progress and all costs due to termination
(inter alia, cancellation fess of the sub-orders). The client may terminate the
Contract if Macchi breaches material terms or provisions of the Contract and (if
such breach is remediable) fails to remedy such breach within reasonable period.
In such case the client shall pay to Macchi the price of Goods which are already
delivered or ready to be delivered and all work in progress and Macchi shall
compensate the client the balance of the price that the client reasonably pays to
the third party for finishing the works under the Contract and the price that had to
be paid to Macchi hereof.
Should the client fail to pay any due and undisputed invoice for more than 90
(ninety) days, Macchi shall be entitled to terminate the execution of the Contract
and the client shall pay to Macchi the price of Goods which are already delivered
or ready to be delivered and all work in progress and all costs due to termination
(inter alia, cancellation fess of the sub-orders).

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PRIORITY OF DOCUMENTS
The order of precedence of the documents shall be clearly stated in the Contract.

TIME LIMITS
The Contract shall clearly state the time limits for approval of the
documents/requests of Macchi by the client, approval of any sub-vendors,
payment, etc. In case no objection is made by the client within the agreed time
limits, the approval is deemed to be given.

INTELLECTUAL PROPERTY RIGHTS (IPR)

Each Party shall remain owner of all industrial and intellectual property rights it
owns.

PROPOSAL VALIDITY
This proposal is valid for combined fully effective LOI (PACKAGE BOILER +
HRSG) within November 30th, 2015.

i MRCCHr
STEAM & POWER GENERATION

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