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Project name: Lake Sevan Environmental Project

Country: Armenia

Business sector: Municipal and environmental infrastructure

Project ID: 6409-IFT-37030

Funding source: EBRD and EU

Type of contract: Works

Type of notice: Invitation for tenders

Issue date: 16.06.2011

Closing date: 27.07.2011, 15:00 local time

This Invitation for Tenders follows the General Procurement Notice for this project which was published in Procurement Opportunities, 5758-GPN-37030 of 10 June 2008.

The Armenian Water and Sewerage CJSC, hereinafter referred to as "the Employer", intends using part of the proceeds of a loan from the European Bank for Reconstruction and Development (the Bank) and a grant from the EU Water Initiative towards the cost of the Rehabilitation of waster water networks in Sevan, Gavar, Martuni and Vardenis, NCB No: LSEP-Works-2011, consisting of 3 lots.

The Armenian Water and Sewerage CJSC now invites sealed tenders from contractors for the following contract[s] to be funded from part of the proceeds of the loan:

Rehabilitation of waster water networks in Sevan, Gavar, Martuni and Vardenis, NCB No: LSEP-Works-2011, consisting of 3 lots:

Lot-1 – Sevan: DN 200: l= 977m; DN 300: l=963m and Gavar: DN150: l=593m; DN 200: l=338m; DN 250: l=469m

Lot-2 – Martuni: DN 150: l=879m; DN 200: l=2,934m; DN250: l=1,746m

Lot-3 – Vardenis: DN 300: l=2,818m; DN 400: l=671 m

Tenders are invited for 3 (three) lots. Each lot must be priced separately. Tenders for more than one lot may offer discounts and such discounts will be considered in the comparison of tenders. Each lot shall be evaluated separately to the firm offering the lowest evaluated total price for each lot.

The estimated construction period is:

Lot-1: 4 calendar months, namely August 2011 till November 2011

Lot-2: 4 calendar months, namely August 2011 till November 2011

Lot-3: 4 calendar months, namely August 2011 till November 2011

Tendering for contracts to be financed with the proceeds of a loan from the Bank and a grant from the EU Water Initiative is open to firms from any country.

To be qualified for the award of a contract, tenderers must satisfy the following minimum criteria for each lot:

General Experience: Experience under contracts in the role of contractor, subcontractor, or management contractor for at least the last 3 (three)(2008-2010) years prior to the applications submission deadline, and with activity in at least nine (9) months in each year.

Particular Experience: Participation as contractor, management contractor, or subcontractor, in at least one (1) similar contract within the last 3 (three) years, with a value of at least EUR 0.7 million. The similarity shall be based on the physical size, complexity, methods/technology or etc. a minimum experience in the following key activities: laying of pipes (sewer, gas, water supply)

Financial Capability: Minimum average annual construction turnover of EUR 1 million calculated as total certified payments received for contracts in progress or completed, within the last 3(three) years (2008-2010); The minimum amount of liquid assets and/or credit lines of the successful Bidder shall be: EUR 0.2 million

Litigation History: All pending litigation shall in total not represent more than ten percent (10%) of the Tenderer's net worth and shall be treated as resolved against the Tenderer.

Equipment Capabilities: The essential equipment to be made available for the Contract by the successful Tenderer shall be for each lot: 1) excavator 100-150 KW x 2 units; 2) excavator >150 KW x 1 unit; 3) dump truck min. load capacity 5 m3 x 4 units; 4) dewatering equipment x 3 units.

Personnel Capabilities: The Tenderer must demonstrate that it has the personnel for the key positions that meet the following requirements for each lot (total experience/ similar works experience, years): 1) Project Manager – 10/5; 2) Construction Site Manager for each town – 5/3.

Schedule of works. In case of local Tenderers: The tenderers shall hold a valid and effective construction license/permit for capital construction, hydro-technical area, issued by the RA Urban Development Ministry. The absence of a valid license at the time of tender submission shall not result in a rejection of the tender, however the Tenderer must demonstrate clearly that such required license will be obtained within 28 days of the issuance of the Letter of Acceptance / Notification of Contract Award. Failure to provide a valid license by the successful tender within the specified period shall result in the rejection of the tender and forfeiture of the tender security.

The Tenderer should submit a reference on having no debt to the Tax Inspectorate of the RA (for a validity period of 15 days from the date of bid opening).

In order to be eligible for the award of more than one lot, tenderer's tendering for more than one lot are required to demonstrate in their tenders that they meet the cumulative qualification criteria (with respect to turnover, general and particular experience, personnel and equipment capabilities and financial position). For the number of lots which they are seeking contract award.

Tender documents may be obtained from the office of the Armenian Water and Sewerage Company at the address below upon payment of a non-refundable fee of 55,000.00 Armenian Drams to the following accounts:

Account no. 247010078175, ARDSHININVESTBANK, SWIFT Code: ASHBAM22, 13, Grigor Lusavorich Str., 0010 Yerevan, Armenia in favour of Armenian Water and Sewerage Company

All tenders must be accompanied by a tender security in the form of Bank Guarantee issued by a reputable bank located in the country of the Employer:

Lot-1: 15,000.00 EUR

Lot-2: 15,000.00 EUR

Lot-3: 15,000.00 EUR

Any tender not accompanied by an acceptable Tender Security shall be rejected by the Employer as non-responsive.

Tenders must be delivered to the office at the address below on or before 27.07.2011 at 15:00 (local time). The tenders will be opened physically in the presence of the tenderers' representatives who choose to attend in person at the address below on 27.07.2011, 15:00 hours local time. Any tender received by the Employer after the deadline prescribed above will be returned unopened to the tenderer.

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 inspect and acquire the tender documents from 9:00am to 5:00 pm on working days, the following office:

Armenian Water and Sewerage Company, Mr. Norik Gevorgyan, Investment Programs Coordination Director, Ms. Kristine Ghambaryan, Procurement Specialist, Floor 3, 8a Vardanants Blind Alley, 0010Yerevan, Armenia. Tel/Fax: 00374 10 54 28 77, e-mail: ngevorgyan@armwater.am, kghambaryan@armwater.am, lbuniatyan@armwater.am