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Procurement reference: 9515-IFT-40858 Project name: Lutsk District Heating Project Country: Ukraine Business sector: Municipal and environmental infrastructure Project ID: 40858 Funding source: EBRD, CTF Type of contract: Project goods, works and services Type of notice: invitation for tenders Issue date: 24.9.2019 Closing date: 12.11.2019 at 11.00 (local time) This invitation for tenders follows the General Procurement Notice for this project which was published on the EBRD website, Procurement Notices (http://www.ebrd.com/work-with-us/procurement/p-pn-180208c.html) on 28.1.2016 and latest updated on 8.2.2018. State Communal Enterprise ‘LutskTeplo’ hereinafter referred to as ‘the Employer’ has received a loan from the European Bank for Reconstruction and Development (the Bank), Clean Technology Fund (CTF) and a grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P) towards the cost of Lutsk District Heating Project. The employer now invites sealed tenders from contractors for the following contract to be funded from part of the proceeds of the EBRD's and the CTF loans: Burner replacement in 19 hot water boilers including development of detail design, supply of equipment and materials, installation works, testing and commissioning of 38 burners and boilers control and safety systems and all necessary auxiliary equipment, as well as training of the boiler house personnel, and remedying defects during the defect liability period. Following boilers shall be rehabilitated: — gas-fired hot water boiler with capacity of 3.49 MW of KVG-4.65 (Ukr. – КВГ-4.65) type – 1pcs, — gas-fired hot water boiler with capacity of 5.58 MW of KVG-7.56 (Ukr. – КВГ-7.56) type – 2 pcs, — gas-fired double-drum water tube boiler with capacity of 5.35 MW of DKVR-6.5 (Ukr. – ДКВР-6.5) type – 4pcs, — gas-fired double-drum water tube boiler with capacity from 6.86 to 7.33 MW of DKVR-10 (Ukr. – ДКВР-10) type – 5pcs, — gas-fired double-drum water tube boiler with capacity of 16.28 MW of DKVR-20 (Ukr. – ДКВР-20) type – 2pcs, — gas-fired double-drum vertical-water tube boiler with capacity of 6.5 MW of DE-10 (Ukr. – ДЕ-10) type – 3pcs, — gas-fired double-drum vertical-water tube boiler with capacity of 8.72 MW of DEV-16 (Ukr. – ДЕВ-16) type – 2pcs. The tenderer will be required to meet but not limited to the following minimum criteria, as specified in tender documents: (a) the tenderer, its partner or a specialised subcontractor shall have successful experience as prime contractor of automation and burners replacement of at least: — 1 (one) Gas fired hot water boiler of KVG-7.56 (КВГ-7.56) type with capacity of 5.58 MW or higher, — 2 (two) Gas fired double-drum water tube boiler of DKVR (ДКВР) type, 1 (one) boiler of DKVR-6.5 (ДКВР-6.5) type or higher with capacity of 5.35 MW or higher and 1 (one) boiler of DKVR-10 (ДКВР10) type or higher with capacity of 6.86 MW or higher, — 2 (two) boiler of DE(or DEV)-10 (ДЕ (ДЕВ)-10) type or higher with capacity of 6.5 MW or higher. in the countries with similar climatic conditions over a 7 (seven) years period ending on the deadline for tender submission, having been in successful operation at least for 1 (one) year prior to submission of the tender. Relevant references as well as completion and taking-over certificates shall be provided. (b) the tenderer or its local service agent shall be able to carry out the maintenance, warranty, repair and spare parts stocking obligations prescribed in these tender documents for two (2) years, as well as maintain all equipment included to the scope of supply. The tenderer shall inform if in the country of the employer he has service centres working and/or storages to secure technical maintenance and repair or state how these obligations will be met in the event of a contract; (c) the average annual turnover over the last 5 (five) years is not less than 3 000 000 EUR (three million) equivalents; (d) 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 320 000 EUR (three hundred and twenty thousand) equivalent, taking into account the tenderer's commitments for other contracts; (e) the tenderer has a litigation history without major claims. A consistent history of awards against the tenderer or any partner of a JVCA 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 5 (five) years; (f) the tenderer possesses suitably qualified personnel and shall provide CVs and ensure their availability to fill the following key positions: — project manager (at least 15 years of total experience, 5 years of experience in similar works and 3 years of experience as manager for similar works), — designer (at least 10 years of total experience, 5 years of experience in similar works), — automation controls engineer (at least 10 years of total experience, 5 years of experience in similar works), — boilers adjustment engineers (at least 10 years of total experience, 5 years of experience in similar works). (g) the tenderer shall demonstrate it is able to meet licensing requirements as per Ukrainian legislation. These may include construction license, design license or availability of certified designers, permission of the state authority of Ukraine for labour issues (Derzhpratsya). If such licenses and permissions are available at the time of the tender submission, copies shall be provided. Otherwise, the tenderer shall provide the copies of all required licenses prior to contract award. Failure to provide evidence of all required licences at the time of the contract award shall results in the rejection of the tenderer’s tender. Tenderers are permitted to use specialist subcontractors to meet the licensing requirements; (h) the goods, materials, works and equipment under this tender document shall be designed, manufactured and supplied in accordance with the appropriate Ukrainian laws, codes and regulations and they shall conform to the respective European and international standards. The contractor and the manufacturers of the key equipment shall possess ISO 9001 certificate. The tenderer is required to provide a copy of ISO 9001 certificates with its proposal. In case of discrepancies between the state and international standards, the preference shall be given to the standards with more strict requirements. (i) participation of joint venture, consortium, or association (JVCA) is permitted. JVCA must satisfy the following minimum qualification requirements: (i) the lead partner of JVCA shall meet not less than 50 percent of all the qualifying criteria for turnover and financial position specified above; (ii) the other partners of JVCA shall meet not less than 25 percent of all the qualifying criteria for turnover and financial position specified above. The JVCA must satisfy collectively the criteria (a) – (h) stated above. Each JVCA partner individually shall satisfy the requirements for historical financial performance, eligibility and litigation history. (j) if the tenderer proposes to use named subcontractors or suppliers for some components of the works or supplies under the contract in excess of 10 percent of the total value of the contract, the tenderer shall provide the information in the forms provided in Para 6.1 of the tender data in particular questionnaire No 7. List of proposed suppliers/manufacturers and Questionnaire No 8. List of proposed subcontractors of the questionnaire Volume I.vii of the tender documents for each proposed subcontractor or supplier. The tenderer cannot use the references of such subcontractors or suppliers. The tenderer shall demonstrate that the proposed supplier or subcontractor adequately meets the requirements regarding special experience, namely the successful experience of implementation during the last five 7 (seven) years of the obligations of the contractor (prime one or subcontractor) for works with comparable scope and/or nature and complexity compared to works / supply proposed to be transferred to subcontractor. The employer reserves the right to require the replacement of the proposed sub-contractors in case of disqualification of the latter. The qualification requirements are further detailed in the tender documents. The contract is planned to be completed within fifteen (15) months after effective date. Tendering for contracts to be financed with the proceeds of the loans from the Bank and the CTF is open to firms from all countries. The proceeds of the Bank’s and CTF loans 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 office at the address below upon payment of a non-refundable fee of 200 EUR (two hundred) for non-resident tenderers and equivalent of the mentioned sum in Ukrainian Hryvnia (UAH) at National Bank rate of the payment day for Ukrainian tenderers. This fee includes expenses for duplication, delivery via registered express courier and communication services (VAT inclusive, and exclusive of Bank commission and other fees, which shall be paid by the tenderer). The method of payment will be direct deposit to any of the specified account numbers for respective currency: For payments in EUR: Account # 26009252571 (EUR) Beneficiary’s bank: Ukrgasbank Bank’s address: Kyiv, Ukraine Swift: Ugasuauk Bank code: 320478 Correspondent bank: Deutsche Bank AG Frankfurt-am-Main, Germany Swift: Deutdeff Correspondent account: 100947080800 Beneficiary: State Communal Enterprise ‘LutskTeplo’ Correspondent bank: Сommerzbank AG Frankfurt-am-Main, Germany Swift: Cobadeff Correspondent account: 400886433201 Beneficiary: State Communal Enterprise ‘LutskTeplo’ For payments in UAH: ДержавнеКомунальнепідприємство «ЛуцькТепло» Луцькоїміськоїради ЄДРПОУ 30391925 Р/р 26009252571 ПАТ «Укргазбанк» м. Київ Код банку (МФО): 320478 Адреса: 43021 м. Луцьк, вул. Гулака-Артемовського, 20 It is necessary to state in the payment document: — the name of the payer, — name of the beneficiary (State Communal Enterprise ‘LutskTeplo’), and — details of payment: Lot 3a Before payment the tenderers must send a scanned copy of the signed official request for the tender documents receipt. This request must include the full name of the tenderer, its requisites, the address where the tender documents must be delivered to and the name of the tender. After this request, the employer will issue the invoice to be paid. Upon receiving appropriate evidence of payment of the non-refundable fee, the documents will be promptly dispatched by courier, however, no liability can be accepted for loss or late delivery. In addition, if requested by the tenderer, the documents can also be dispatched electronically, by email or via a file exchange server. In the event of discrepancy between electronic and hard copies of the documents, the hard copy shall prevail. A 2-stage tender procedure will be adopted and will proceed as follows: (a) the first stage tender will consist of a technical proposal only, without any reference to prices, and a list of any deviations to the technical and commercial conditions set forth in the tender documents or any alternative technical solutions a tenderer wishes to offer, and a justification therefor, provided always that such deviations or alternative solutions do not change the basic objectives of the project. Following evaluation by the employer of the first stage tenders, the employer will invite each tenderer who meets the qualification criteria and who has submitted a technically responsive tender to a clarification meeting. The proposals of all such tenderers will be reviewed at the meeting and all required amendments, additions, deletions and other adjustments will be noted and recorded in a memorandum. Only qualified tenderers submitting a technically responsive and acceptable first stage tender will be invited to submit a second stage tender; (b) the second Stage tender will consist of an updated technical tender incorporating all changes required by the employer as recorded in the memorandum to the clarification meeting or as necessary to reflect any amendments to the tender documents issued subsequent to submission of the first stage tender; and the commercial tender. A pre-tender meeting and site visit will be held on 8.10.2019, starting at 10.00 a.m. at the address: 20, Hulaka-Artemovskoho Street, Lutsk, Ukraine. All requests for clarification must be received by the employer until 15.10.2019, 17.00. Please, note that all the requests for clarification received after the deadline will not be addressed. First stage tenders must be delivered to the address below on or before 12.11.2019 at 11.00, at which time they will be opened in the presence of the tenderers’ representatives who wish to attend. Late tenders will be rejected. All second stage tenders must be accompanied by a tender security of 48 000 EUR (forty-eight thousand) 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 the time and date of the submission deadline specified in the letter of invitation to submit second stage tenders, at which time they will be opened in the presence of the tenderers’ representatives who wish to attend. The applicable procurement rules are the Bank’s Procurement Policies and Rules (PP&R, Rev. October 2014) which can be located at: https://www.ebrd.com/work-with-us/procurement/policies-and-rules.html Prospective tenderers may obtain further information from, and also inspect and acquire the tender documents at the following office: Contact person: Mr. Bogdan Karachevskiy , Purchasing Entity: State Communal Enterprise “LutskTeplo” , Address: 20, Hulaka-Artemovskoho Street, Lutsk , 43021, UKRAINE, Tel: +380 332 773210 - Fax: +380 332 773201 - Email: lutskteplo@kp.lutskrada.gov.ua

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