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Project name: Yerevan Metro Rehabilitation Project

Country: Armenia

Business sector: Municipal and environmental infrastructure

Project ID: 6510-IFT-39815

Funding source: EBRD, EIB and NIF

Type of contract: Supply and installation

Type of notice: Invitation for tenders

Issue date: 20.10.2011

Closing date: 06.12.2011, 15:00 local time

This Invitation for Tenders follows the General Procurement Notice for this project, which was published in Procurement Opportunities of the EBRD web site "GPN Yerevan Metro Rehabilitation Project - Procurement Ref. 6266-GPN-39815" published on 9th December 2010.

The Karen Demirchyan Yerevan Metro Company 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) towards the cost of the Yerevan Metro Rehabilitation Project. The purpose of the Project is to address immediate rehabilitation needs and consists of the procurement, supply and installation of new water and sewerage pumps and associated equipment, amongst other goods and services.

The Employer now invites sealed tenders from eligible Contractors for the following contract to be funded from part of the proceeds of the loan: design, manufacture, factory acceptance, supply, delivery, installation, commissioning and provision of associated services in respect of: Contract 4: 50 No. new Centrifugal (Non-Borehole) Water and Sewerage Pump Sets, 26 No. new Borehole Water Pump Sets with all associated equipment and components including motors, pipe work, valves, changeover panels, control panels, etc. plus decommissioning and removal of 50 No. existing Centrifugal (Non-Borehole) Water and Sewerage Pump Sets, 26 No. existing Borehole Water Pump Sets with all associated equipment and components including motors, pipe work, valves, changeover panels, control panels, etc. It is envisaged that much of the transportation of the new and existing Plant and Equipment and some of the installation works within the metro tunnels will be implemented during "no train" periods.

The new Plant and Equipment includes, but is not limited to, the following:

• Pumps

• Motors

• Control panels

• Distribution panels

• Changeover panels

• Cabling between the locally mounted changeover panels, distribution panels, pump control panels and pumps etc.

• Float switches

• Pipe work

• Baseplate plinths

• Valves

• Grounding mats (earth mats)

• Instrumentation, including Pressure Gauges and Globe Valves

The anticipated time for completion of the Facilities is 12 months from the Effective Date.

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

(i) in the case of a tenderer offering to supply Plant and Equipment under the Contract which the tenderer does not manufacture or otherwise produce, the tenderer has been duly authorised by the Plant and Equipment's manufacturer or producer to supply the Plant and Equipment in the Employer's country. The tenderer is to provide a Manufacturer's Authorisation Form (Volume I. v) for the Plant and Equipment and all major bought-in components thereof;

(ii) average annual turnover of a tenderer over the last three (3) years (2008, 2009, 2010) (defined on the basis of the amounts billed for the performed works under completed and in progress contracts) shall be not less than Euro 2.5 million (Two Million Five Hundred Thousand) equivalent. To determine the Euro equivalent the official exchange rate set by the Central Bank of Armenia by the date 28 days prior to the deadline for submission of tenders will be used;

(iii) the tenderer, as a prime contractor, contractor, or subcontractor, shall demonstrate that it has successful experience in the execution of at least three (3) contracts for the installation of water and sewerage pumping equipment, including all associated mechanical and electrical works, of similar nature and complexity to the proposed Contract, that have been successfully completed over the last five (5) years prior to the deadline for submission of tenders. In this respect the tenderer shall provide the following information at the time of tender submission:

(a) Name and location of clients

(b) Date of delivery

(c) Type of Equipment

(d) Overall Value of contracts

(iv) the tenderer shall demonstrate that the staff used for engineering support, installation and technical supervision for the duration of the contract are suitably qualified.

- The candidates for the tenderer's proposed Contractor's Representative and Construction Manager shall each have not less than ten (10) years total experience, five (5) years experience of similar work, and three (3) years in a similar position (representatives of the Contractor for similar contracts).

- The candidates for the tenderer's proposed Installation staff shall each have not less than seven (7) years total experience, five (5) years experience of similar work each.

- The candidates for the tenderer's proposed Supervisory staff shall each have not less than seven (7) years total experience, five (5) years experience of similar work.

At the time of tender submission, the tenderer shall provide estimates of the total number of personnel needed to undertake the Contract and provide the following information:

(a) Name of proposed staff

(b) Proposed position

(c) Relevant experience and qualifications

(d) Language capabilities

The Contractor's personnel are required to communicate and work in the Armenian or Russian languages. In addition, the Contractor's Representative and Construction Manager shall be able to communicate in the English language (English being the language of the contract). In the event that the Contractor's personnel are not able to work in the Armenian or Russian languages, the Contractor shall provide an appropriate number of interpreters/ translators to be available on site at all times of work;

(v) the tenderer shall demonstrate that it has access to, or has available financial means, such as liquid assets, unencumbered real assets, lines of credit and other financial means, different from any contractual advance payments or commodity loans, sufficient to meet the cash flow under the Contract for a period of one hundred and twenty (120) days estimated as not less than Euro 500,000 (Five Hundred Thousand) equivalent, taking into account the tenderer's commitments for other contracts;

(vi) the tenderer shall submit the audited financial statements (Balance Sheets, Income Statements, Statements of Cash Flow), or, if such is not required by the Legislation of the tenderer's country, any other financial statements, acceptable for the Employer, for the last three (3) years (2008, 2009, 2010), including 2011 if available, to demonstrate the current soundness of the tenderer's financial position and its long-term profitability. Where necessary, the Employer will make inquiries with the tenderer's bankers;

(vii) the tenderer shall provide accurate information on any current or past litigation or arbitration resulting from contracts completed or under execution by him over the last three (3) years (2008, 2009, 2010). A consistent history of awards against the tenderer or any partner of a joint venture on any litigation or arbitration connected with the execution of contracts may result in failure of the application;

(viii) the tenderer shall have the quality management system certified for standard ISO 9001 (or equivalent) or shall present its own Quality Assurance Plan to demonstrate quality assurance procedures, which shall be applied while executing works under the Contract. If the tenderer provides an equivalent quality assurance standard to ISO 9001, the tenderer must also provide confirmation by the corresponding national body for standards and certification of its substantial equivalence to ISO 9001. Moreover, the manufacturers of the major parts of the plant and equipment (pumps, motors, control panels, distribution panels, etc.), proposed by the tenderer for using during the execution of works under the Contract shall have the quality management system certified for standard ISO 9001 (or equivalent);

(ix) the tenderer and/or its representation in Armenia shall be capable of carrying out the repair and maintenance of the Facilities on the Site during the Defect Liability Period, shall have consumables and spare parts storage in Armenia enabling it to make a prompt delivery thereof to the Site to ensure the proper and continuing functioning of the Facilities, and shall be capable of ensuring the possibility of the repair and maintenance of the Facilities in Armenia after the Defect Liability Period expiry as well. The tenderer shall demonstrate how these obligations will be met in the event of a contract;

In case the tender is submitted by particular partnerships or other unincorporated association of enterprises carrying out their activity on the basis of an agreement on joint venture (hereinafter "joint venture or consortium"), such joint venture or consortium shall meet the following qualification requirements:

(a) The lead member firm of the joint venture or consortium (the "member firm of a joint venture or consortium in charge") shall have the experience as a prime contractor, in execution of at least two (2) contracts, specified in the qualification criteria (iii), specified above;

(b) The lead member firm shall meet not less than sixty (60) percent of qualifying criteria (ii) and (v), specified above;

(c) The lead member firm shall satisfy qualifying criteria (viii) specified above;

(d) At least one member firm of the joint venture or consortium shall have the experience as a prime contractor, contractor, or subcontractor in execution of at least one (1) contract, specified in the qualification criteria (iii), specified above;

(e) Each member firm of the joint venture or consortium shall satisfy the qualifying criteria (vi) and (vii), specified above, moreover, each member firm shall satisfy not less than twenty (20) percent of qualification criteria (ii) and (v) specified above;

(f) The joint venture or consortium shall satisfy collectively the qualification criteria (ii), (iii), (v), (vi) and (ix) for which purpose the relevant figures for each of the member firms shall be added to arrive at the total capacity of the joint venture or consortium.

Tendering for contracts to be financed with the proceeds of a 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 a non-refundable fee of Euro 300.00 (Three Hundred) or AMD (Armenian Dram) equivalent, or the equivalent amount in any freely convertible currency. Currency exchange rates shall be in accordance with rates set by the Central Bank of Armenia on the date of payment.

Payment shall be made by bank transfer and documents shall be released upon provision by the tenderer of a receipt showing funds were transmitted to the following accounts, or upon confirmation from Employer's bank that funds have been received. Cash payments are not permitted.

Payments in EUR

Beneficiary: Yerevan Metropolitan aft Demirchyan

Beneficiary Bank: UNIBANK, Armenia

SWIFT: UNIJ AM 22

Account No: 24104004285502

Correspondent Bank: Deutsche Bank AG

SWIFT: DEUTDEFF

Account: 9477282

Payment Ref: Payment of fee in order to receive tender documentation

Payment in AMD

Beneficiary: Yerevan Metropolitan aft Demirchyan

Beneficiary Bank: UNIBANK, Armenia

SWIFT: UNIJ AM 22

Account: 24104004285500

Payment Ref: Payment of fee in order to receive tender documentation

If requested the documents will be promptly dispatched by courier and, in addition, electronically via e-mail but no liability can be accepted for loss or late delivery. Tenderers should note that an electronic version of the tender documents will be issued solely to facilitate tender preparation. In the event of any discrepancy between hard and electronic copies of the tender documents, the hard copy will prevail.

Site visits will be arranged for Tuesday 8 and Wednesday 9 November 2011. Tenderers shall be expected to take all necessary measurements on site and to satisfy themselves that all required quantities have been included in their prices. No re-measurement to quantities shall be applicable. Attendance at the site visits is therefore considered as mandatory. Tenderers should be prepared to visit the site during no-train periods i.e. approximately between 00:00 hrs and 04:30 hrs (in the morning). Country entry/exit Visas can be purchased at the airport. Those wishing to attend do so at their own expense.

All tenders must be accompanied by a Tender Security to Yerevan Metro Company of Euro 50,000 (Fifty Thousand) or its equivalent in a convertible currency, in the form of a Bank Guarantee as included in Volume I .iv.

Tenders must be delivered to the office at the address below on or before 15:00 hrs (Yerevan time) on Tuesday 6 December 2011. The tenders will be opened at 16:00 hrs (Yerevan time) on Tuesday 6 December 2011, in the presence of those tenderers' representatives who choose 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 inspect and acquire the tender documents at the following office:

Karen Demirchyan Yerevan Metro CJSC, Project Implementation Unit (PIU), 78 Baghramyan Street, 0033, Yerevan, Republic of Armenia. Contact: Mr. Garry Manukyan. Tel/Fax: +374 10 27 3081. Email: metro374@gmail.com