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Project name: Cherkasy Energy Efficiency Project

Country: Ukraine

Business sector: Municipal and Environmental Infrastructure

Project ID: 6509=-IFT-37511

Funding source: EBRD

Type of contract: Goods, works and services

Type of notice: Invitation for Tenders

Issue date: 19.10.2011

Closing date: 06.12.2011, 10:00am local time

This Invitation for Tenders follows the General Procurement Notice for this project which was published in Procurement Opportunities on the EBRD website 20 July 2009.

Cherkasy Municipal Enterprise of District Heating Networks "Cherkassyteplokomunenergo" (the Purchaser) has received a loan from The European Bank for Reconstruction and Development (the Bank) towards the cost of Cherkasy Energy Efficiency Project.

The Purchaser now invites sealed tenders from Contractors for the following contract "Pipeline replacement" to be funded from part of the proceeds of the loan:

Contractor is supposed to supply the following Goods:

- preinsulated bonded pipe systems for underground hot water networks – pipe assembly of steel service pipes, polyurethane thermal insulation and outer casing of polyethylene. The PUR foam shall be filled with cyclopenthane gas. The thermal conductivity as specified in EN253:2003, shall not exceed 0.027 W/moC. Required diameters – from DN45/110 to DN630/800

- steel pipes as specified in GOST-10704-91. Required diameters – from DN40 to DN630

- PE-RT preinsulated bonded pipe as specified in TY B.2.7-25.2-30336890-014. Required diameters – from DN50/110 to DN180/250

- shutoff and pipeline valves

- system of remote control and technical conditions monitoring of thermal insulation

The Tenderer shall furnish, as part of its tender, documentary evidence establishing the Tenderer's qualification, to perform the Contract if its tender is accepted.

The documentary evidence of the Tenderer's qualifications to perform the Contract if its tender is accepted shall establish to the Purchaser's satisfaction that:

a) in the case of a Tenderer offering to supply goods under the Contract which the Tenderer does not manufacture or otherwise produce, the Tenderer has been duly authorised by the goods' manufacturer or producer to supply the goods in the Purchaser's country;

b) the Tenderer, including the manufacturer, has satisfactorily supplied similar goods and services to other purchasers. Minimum qualifying criteria is that the Tenderer successfully completed as main Supplier of goods similar to those included in the Contract at least twenty contracts of scope and value of supply and complexity comparable to the proposed Contract, over a five-year period ending on the deadline for bid submission.

c) The Tenderer, including the manufacturer, is showing long-term profitability, where the average annual operating profit of the last three years must be positive. The documentary evidence is the audited Financial Statement for the last three years shall be submitted and must demonstrate the soundness of the Tenderer's financial position.

d) The average annual turnover over the last three years to be not less than Euro 10 million or equivalent.

e) The Tenderer must have access to, or has available, liquid assets, unencumbered real assets, lines of credit, and other financial means sufficient to meet the construction cash flow for the contract for a period of 2 months, estimated as not less than Euro eight hundred thousand or equivalent, taking into account the tenderer's commitments for other contracts.

f) The Tenderer has a Litigation History without major claims. A consistent history of awards against the Tenderer or any partner of a joint venture may result in failure of the application. The Tenderer shall provide accurate information on any current or past litigation or arbitration resulting from contracts completed or under his execution over the last five years

g) The Manufacturer has a documented quality assurance system and environmental control system. Tenderer is requested to provide copies of certification under ISO 9001 and ISO 14001 or other documented quality assurance system and environmental control system, respectively.

h) that the Manufacturer has an annual production capacity minimum ten (10) times the contract amount

The Contract is planned to be completed from the effective date of completion of delivery.

Tendering for contracts to be financed with the proceeds of loan from the Bank is open to firms from all countries. The proceeds of the Bank's loan will not be used for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations.

Tender documents may be obtained from the address below upon payment of non-refundable fee of 180 €:

1) For Ukrainian tenderers, upon payment of the mentioned amount in UAH (Hryvnja of Ukraine) at National bank rate of the payment day to the account:

No. 26003013016830 in VAT VTB Bank,

MFO 321767

Code 02082522

Individual tax number 020825223014

Registration certificate number 100321356

2) For the foreign Tenderers, upon payment of the mentioned amount to the account:

Beneficiary name – MEHN CHERKASYTEPLOKOMUNENERGO

Beneficiary Bank – Forum JSCB, Kyiv, Ukraine

SWIFT – FJSC UA UK

Beneficiary account – 26001300186885

Correspondent – Commerzbank AG, Frankfurt-am-Main, Germany

SWIFT – СОВА DE FF

Account – 400887090901

All tenders must be accompanied with a Tender Security in the amount of 25,000 (twenty five thousand) Euro or equivalent in Ukrainian Hryvna at the rate of the National Bank of Ukraine on the date of the Tender Security issue, and must be delivered to the address below on or before 10:00am (local time), 06 December 2011, when they will be opened in the presence of the tenderers' representatives who wish to attend.

A register of potential Tenderers who have purchased the tender documents may be inspected at the address below.

Prospective tenderers may obtain further information from, and acquire the tender documents at the following office:

Municipal Enterprise of District Heating Networks "Cherkasyteplokomunenergo", Contact person: Mr. Mykola Kulish, PIU Procurement Manager, Ukraine, 18000, Cherkasy, O. Dashkovycha Str., 62. Tel: +380 472 32 52 20. E-mail: piu@ctke.ck.ua