This booklet provides a brief outline on the procurement procedures of Companhia de Electricidade de Macau – CEM, S.A. (hereafter refer as “the Company”). It also serves as a guidebook for companies interested in becoming Registered Suppliers of the Company.

Procurement Policy and Principles

It is the policy of the Company to act fairly and equally in business dealings with its vendors / contractors / consultants (collectively referred to as “Suppliers”) and at the same time to obtain the best possible value for money in acquiring goods, services and materials.

Fair Competition
As a public utility, the Company encourages fair competition in all procurements and requires its major procurements to be awarded through a tendering process. This ensures the best value and provides equal opportunities for all interested and competent Suppliers. We ensure that all invited tenderers are given the same information for preparing tenders.

Safety
The Company is committed to providing a safe environment for its customers, staff and Suppliers. When supplying the Company with products / services, Suppliers must at all times meet the statutory requirements with respect to safety and other standards which are communicated to them by the Company.

Environmental Requirements
The Company is dedicated to protecting the environment and, where applicable, prefers to buy environmentally-friendly products / services. When supplying the Company with products / services, Suppliers must meet the statutory requirements with respect to environmental protection and other requirements which are communicated to them by the Company at all times.

The Company uses one of the following methods in its procurements -

Tendering
Depending on the estimated value and time frame and nature of each procurement, the following methods of tendering will be adopted:

• Pre-qualified Tendering
  Applications for pre-qualification are invited openly (either via the Company’s Website or via other public media or both) or by invitation. Applicants are pre-qualified and short listed according to the financial and technical capabilities required in a particular contract.

• Restricted Tendering
  Tender invitations are sent to Suppliers on the Company Registered Suppliers List established for the purpose of restricted tendering.

• Single Tendering
  Tender invitation is sent to only one supplier. This procedure is only used under circumstances not applicable to the above tendering methods, such as extreme urgency or security, for proprietary products or for reasons of compatibility.

Pre-qualification and Tender Submission
The Company has standard forms for pre-qualification and tendering, which will be provided to interested Suppliers wishing to be pre-qualified and submit tenders. It is very important that interested Suppliers closely follow the instructions in these documents which must be submitted to the Company on or before the relevant closing dates and times. Late submissions will not be considered.

Pre-qualification and Tender Assessment
Through this assessment, the Company will determine whether or not the relevant pre-qualification documents and tenders comply with the requirements of the Company.

• In general, the following main areas of a pre-qualification document will be evaluated -
  — the technical expertise of the Supplier
  — the financial strength of the Supplier
  — the relevant experience of the Supplier
  — the Supplier’s approach towards the design, production or construction of a related project
  — the Supplier’s consensus to the environment concerns
  — the possession of Management and Quality Certifications

• In general, the following main areas of a tender will be evaluated -
  — the technical proposals submitted by the tenderer
  — the financial capability of the tenderer
  — the degree of contractual compliance of the tender
  — the reasonableness of the tender price
  — the environment impact of the supplied goods or services
  — the possession of Management and Quality Certifications

Sealed Quotation
Following the instruction in the Tender Invitation or RFQ, proposals or quotations requested to be submitted in closed envelope should be sent in sealed envelopes, to a specified Tender Box before the specified closing date and time.

Fax Quotation
Following the instruction in the Tender Invitation or RFQ, proposals or quotations requested to be submitted by fax should be sent to a designated fax number before the specified closing date and time. Where it is not specifically stated that the designated fax number has to be used, information and quotations should be sent to our general fax number 853-2830 8361.

Verbal Quotation - Small Value Purchases
Where the estimated value of each procurement is MOP10,000 or below, written tender invitation or RFQ is not mandatory. Verbal quotations can be obtained from Suppliers. These Suppliers may or may not be on the Company Registered Suppliers.

How to become a Company’s Registered Supplier

Application Procedures
Applicants should complete a Supplier Registration Form, which is available at the Company’s Procurement & Logistics Department as well as its Internet homepage where the form can be downloaded under the “Supplier Registration Procedures”. Interested companies should return the application form with the required supporting documents to the Company’s Procurement & Logistics Department. The Company will keep all the information submitted as records for future tendering reference.

Suppliers’ Obligations to the Company
Suppliers must -

• not disclose any confidential or proprietary information in respect of the Company to a third party without the written consent of the Company ;

• not give or agree to offer or give to any person, any bribe, gift, gratuity or commission as an inducement or reward for doing or forbearing to do any action in relation to his Tender;

• supply goods, materials or services to the Company in accordance with the agreed terms and conditions ;

• immediately inform the Company’s Procurement & Logistics Department in writing of any changes in their correspondence address, contact persons, phone/fax numbers, etc., as well as any restructuring of their companies ; and

• reply to invitations for tenders/ quotations within the specified time frame and strictly follow the Company’s Instruction to Tenderers in submitting their tenders.

Suppliers of Asia Pacific Utility Group (APUG)

The Company is a member of Asia Pacific Utilities Group (APUG) and also uses APUG SMS (Supplier Management System) to collect information on suppliers. It is a central supplier registration system used by buyers from the APUG members to source and select suppliers and contractors for upcoming tenders and contracts. Suppliers who are not registered on APUG SMS should consider doing so to enhance their future business opportunities. Registration will provide an easy and time-effective way of providing the Company with your company information, which is up-to-date and does not require the resubmission of information for every tender opportunity that arises. Achilles operates the APUG SMS for the Company and the other members of the Asia Pacific Utilities Group (www.apug.com).

• Further information on APUG SMS and apply for registration is available at the website www.apugsms.com or email apugsms@achilles.com

How the Company Measures the Performance of Suppliers

Suppliers’ performance will be monitored regularly. Their status will be reviewed from time to time and may be deleted or suspended from our Registered Supplier list depending on their performance.

The Company measures Suppliers’ performance using the following criteria -

The Company monitors the punctuality of Suppliers in responding to the Company’s invitation to tenders / quotations. Suppliers who have been invited to submit tenders / quotations should reply to the Company in accordance with the instructions / guidelines provided in the invitation letters, even if they decide to decline to make any offer.

The Company may consider disqualifying Suppliers who do not respond to invitations to submit tenders / quotations in accumulation of three times within one calendar year.

Material Suppliers
The key criteria for evaluating the performance of Material Suppliers are “Delivery” and “Quality”

Contractors (including Consultants)
The performance of the Contractors shall be evaluated after completion of the project or every 12 months if the Contractor provides continuous services to CEM. To evaluate the Contractor’s success in meeting the concerns of CEM, five major performance criteria shall be considered:

• Time Control

• Cost Control

• Quality Control

• Occupational Health & Safety (H&S) Control

• Environmental Protection Control

Contractor shall be mailed/faxed a copy of their Contractor Performance Evaluation Report within a reasonable time after the Taking Over Certificate is issued or the end of the service period. The evaluation result will be taking into consideration for future tender invitation and/or contract renewal.

CEM Procurement Homepage

The Company has established its own Procurement homepage on the Internet (company website : http://www.cem-macau.com/) in order to share up-to-date procurement information with Suppliers as well as other interested parties.

Suppliers are advised to visit our website regularly in order to obtain the most up-to-date procurement information in respect of the Company.

Useful Contacts

Further information on procurement matters may be obtained from the Company’s homepage on the Internet - http://www.cem-macau.com/

Suppliers may approach the following office with enquiries relating to specific areas of procurement -

The Procurement & Logistics Department