Project name: Egyptian National Railways Restructuring Project

Country: Egypt

Business sector: Transport

Project ID: 8376-IFT-45284

Funding source: EBRD

Type of contract: Works, Goods and Services

Type of notice: Invitation for Tenders

Issue date: 10/08/2016

Closing date: 01/11/2016

This Invitation for Tenders follows the General Procurement Notice for this project which was published on the EBRD website, Procurement Opportunities (www.ebrd.com) on October 25, 2015 the reference number 8044-GPN-45284 and on the Egyptian National Railways website https://enr.gov.eg on November 01, 2015

Egyptian National Railways (hereinafter referred to as the “Employer” and “ENR”), has received a loan from the European Bank for Reconstruction and Development (hereinafter referred to as the “Loan” and, respectively, the “Bank) towards the cost of Egyptian National Railways Restructuring Project. The Employer intends applying the proceeds of the Loan and also its own resources towards the cost of Train Sets procurement and maintenance and other related services for the train sets.

The Employer now invites sealed tenders from contractors (firm or joint venture, consortium or association (JVCA)) for the following contract: Design, Supply, Installation, Commissioning and Maintenance of Train Sets (procurement tendered under Supply & Maintenance Contract) to be financed as follows:

- Design, Supply, Installation and Commissioning of Train Sets, including maintenance of the Train Sets and training (theoretical and on-the-job) of the ENR staff during the warranty period (id est Rolling Stock Contract) will be financed under the Loan provided by the Bank;

- Maintenance of the Train Sets and training (theoretical and on-the-job) of the ENR staff during post-warranty period (id est Global Service Contract) will be financed by the Egyptian National Railways from its own funds.

The selected contractor will sign two contracts, as mentioned above. Tenders are invited for the whole tender scope only (id est for Supply, Installation, Commissioning and Maintenance of Train Sets under a Supply & Maintenance Contract). Tenders for parts of the scope SHALL NOT be considered by the Employer.

The total number of Train Sets to be procured is six (6) units, subject to increase/decrease as per Volume I.i of the Tender Documents.

To be qualified for the award of a contract, tenderers (as well as Subcontractors, manufacturers and producers, where indicated) shall substantially satisfy the following minimum qualifying criteria:

I. Eligibility:

1. Conflict of interest:

1) No Conflicts of Interests as described in ITT clause 3 and EBRD Procurement policies and rules.

2. Bank Ineligibility:

2) Not having been declared ineligible by the Bank as described in ITT clause 3.6

3. Ineligibility based on a United Nations resolution or Borrower’s country law:

3) Not having been excluded as a result of the Borrower’s country laws or official regulations, or by an act of compliance with UN Security Council resolution, in accordance with ITT clauses 2.1 and 3.1.

For all three cases above, the requirements shall be met by Single Entity Tenderer or, in case of JVCA, by all partners combined in existing or intended JVCA and each partner separately, and by manufacturers and producers.

II. Legal requirements (registration and details of ownership):

The Tenderer (Single Entity Tenderer or, in case of JVCA, by all partners combined and each partner separately) shall be properly established in its country of origin in accordance with the respective applicable law. The details for this requirement are provided in Volume I.ii Tender Data, para. 10.1(c).

III. Historical Contract Non-Performance:

1. History of non-performing contracts:

1) Non-performance of a contract did not occur within the last three (3) years prior to the deadline for tender submission, based on all information on fully settled disputes or litigation. A fully settled dispute or litigation is one that has been resolved in accordance with the dispute resolution mechanism under the respective contract, and where all appeal instances available to the Tenderer have been exhausted.

2. Pending Litigation:

2) All pending litigation shall in total not represent more than fifty percent (50 %) of the Tenderer’s net worth (id est the difference between total assets and total liabilities) and shall be treated as resolved against the Tenderer.

For all two cases above, the requirements shall be met by (i) Single Entity Tenderer by itself or as partner to past or existing JVCA or (ii) in case of JVCA, each partner by itself or as partner to past or existing JVCA.

The Tenderer shall provide accurate information, in the relevant form of the Volume I.x, on any current or past litigation or arbitration resulting from contracts completed or under execution over the last three (3) years. A consistent history of historical non-performance and/or litigation awards against the Tenderer or any partner of a joint venture may result in rejection of the tender.

IV. Financial Position:

1. Historical Financial Performance:

1) Submission of audited balance sheets and income statements or, if not required by the law of the Tenderer’s country, other financial statements acceptable to the Employer, for the last three (3) years (id est Y 2013, Y 2014 and Y 2015) to demonstrate the current soundness of the Tenderer’s financial position and its prospective long-term profitability. The Tenderer’s net worth, calculated as the difference between total assets and total liabilities should be positive.

For the 1) above, the requirement shall be met by Single Entity Tenderer or, in case of JVCA, by each partner separately.

2. Average Annual Turnover:

2) Minimum average annual turnover (defined as annual earnings, expressed in its equivalent of a defined currency) of US$ 80,000,000, calculated as total certified payments received for contracts in progress or completed, within the last three (3) years (id est Y 2013, Y 2014 and Y 2015).

For the 2) above, the requirement shall be met by (i) Single Entity Tenderer or (ii) in case of JVCA, by all partners combined, including each partner separately shall meet thirty percent (30%) of the requirement and the Lead Partner must meet sixty percent (60%).

3. Financial Resources:

3) The Tenderer must demonstrate access to, or availability of, financial resources such as liquid assets, unencumbered real assets, lines of credit, and other financial means, other than any contractual advance payments to meet:

(i) the following cash-flow requirement: US$ 50,000,000 and

(ii) the overall cash flow requirements for this contract and its current commitments.

For the 3) above, the requirement shall be met by (i) Single Entity Tenderer or (ii) in case of JVCA, by all partners combined, including each partner separately shall meet thirty percent (30%) of the requirement and the Lead Partner must meet sixty percent (60%).

Where necessary, the Employer may make inquiries with the Tenderer’s banks.

4. Current Obligations and Pending Awards:

4) The Tender shall have the abovementioned resources free of ongoing obligations and/or pending contract awards.

The Tender shall provide information on the ongoing contractual obligations and pending contract awards.

The Employer may reject the tender if the level of the confirmed commitments to be carried out in parallel with this Contract exceeds the Tenderer’s annual turnover for the previous year by a factor of 1.2.

V. Experience:

1. General Experience:

1) Experience in the role of contractor (subcontractor or prime contractor) under contract(s) for supply of minimum twenty (20) Diesel Electric Locomotives, ten (10) Power Coaches and one hundred (100) passenger coaches in successful service for the last seven (7) years prior the First Stage Tender submission. The successful service/commercial operation of the locomotives and coaches shall be confirmed by the previous clients through supporting documents to the Tender.

For the 1) above, the requirement shall be met by Single Entity Tenderer or, in case of JVCA, by all partners combined.

2. Specific Experience:

2.1. Contracts of Similar Size and Nature:

2.1) Participation as contractor (subcontractor or prime contractor) in the execution of at least two (2) contracts within the last seven (7) years, each with a value of at least US$ 110,000,000 that have been successfully or are substantially completed and that are similar and for design, supply, installation and commissioning of the train sets. The train sets shall be in successful service/commercial operation in similar environmental (including climacteric) conditions for the last five (5) years prior the First Stage Tender submission. The similarity shall be based on the physical size, complexity, methods, technology, environmental (including climacteric) conditions and other characteristics as described in Volume III. Technical Specifications of the Tender Documents. The successful operation of the train sets shall be confirmed by the previous clients through supporting documents to the Tender.

For the 2.1) above, the requirement shall be met by Single Entity Tenderer or, in case of JVCA, by all partners combined. In addition, the Single Entity Tenderer or, in case of JVCA, the Lead Partner shall have acted as a main contractor on one (1) contract of a value of at least US$ 110,000,000.

2.2. Experience in Key Activities:

2.2) a minimum experience in the following key activities:

2.2.1. Maintenance of the Train Sets experience:

2.2.1) Maintenance of the Train Sets experience:

Participation as contractor (subcontractor or prime contractor) in the execution of at least two (2) contracts within the last ten (10) years, that have been successfully or are substantially completed and that are similar and for maintenance of the train sets. The similarity shall be based on the physical size, duration, complexity, methods, technology or other characteristics as described in Volume III. Technical Specifications of the Tender Documents.

The Tenderer shall demonstrate that (i) it is capable of carrying out the repair and maintenance of the train sets in the Arab Republic of Egypt during the Defect Liability Period, (ii) it is capable of making prompt delivery of spare parts and consumables to the Employer's Site to ensure the proper and continuing functioning of the train sets and (iii) it will be capable of ensuring the possibility of the repair and maintenance of the train sets in the Arab Republic of Egypt during seven (7) years covering the warranty period and post-warranty maintenance period. The Tenderer shall demonstrate, as part of the Technical Proposal, how these obligations will be met in the event of a contract.

2.2.2. Providing the rehabilitation (minor) services (maintenance site modification):

2.2.2) Providing the rehabilitation services:

Participation as contractor (subcontractor or prime contractor) in the execution of at least two (2) contracts within the last three (3) years, each with a value of at least US$ 100,000 that have been successfully or are substantially completed and that are similar to the proposed works. The similarity shall be based on the physical size, complexity, methods, technology or other characteristics as described in Volume III. Technical Specifications of the Tender Documents.

For the 2.2) both situations above, the requirement shall be met by Single Entity Tenderer or, in case of JVCA, by all partners combined.

In all cases above (experience 1 – 2.2) the Tenderer shall provide at least the client names, addresses, contract details and contract values.

VI. Personnel Capabilities:

The Tenderer shall provide suitably qualified personnel to fill the key positions listed below. For each position the Tenderer shall supply information in the relevant form of the Volume I.x on the candidate and each proposed personnel should meet the experience requirements specified below (Total work experience (years) / Years in similar contracts (works) / as manager of similar works (years)):

(i) Program Manager: 10 Years / 7 Years / 5 Years;

(ii) Project Engineer: 7 Years / 5 Years / 3 Years;

(iii) Programming and Control Assistant: 5 Years / 3 Years / 3 Years;

(iv) Quality Assurance Engineer: 7 Years / 5 Years / 3 Years;

(v) Environmental, Health and Safety Manager: 7 Years / 5 Years / 3 Years.

VII. Equipment Availability:

The Tenderer shall own, or have assured access to (through hire, lease, purchase agreement, availability of manufacturing equipment, or other means), suitable, in full working order and enough in quantity equipment for performance of this contract, and must demonstrate that they will be available for use in the Contract.

VIII. Manufacturer(s) experience and Manufacturing Capacity:

The manufacturer(s) shall have and confirm in the relevant form of the Volume I.x that it has produced in the past and have been in successful service/commercial operation for the last five (5) years prior the First Stage Tender submission, confirmed by the previous clients, minimum ten (10) main line locomotives and minimum one hundred (100) passenger coaches. The line locomotives should be similar to those purchased by the Employer as per Volume III. Technical Specifications of the Tender Documents and in operation in similar environmental (including climacteric). Such letters shall be submitted by the Tenderer as part of the Tender for the purpose of assessment and confirming the meeting of the qualification requirements.

The Tender shall demonstrate that it or his manufacturer/supplier has the manufacturing capacity to produce the required number of Train Sets as per the Tender Documents during three (3) years, taking into account the Tender's commitments in other contracts.

The installed Tenderer’s manufacturing capacity and the free (of the ongoing orders) capacity of the manufacturers is sufficient to meet the expected volume of supply.

In the case of a Tenderer who offers to supply and install items of supply under the contract that the Tenderer did not manufacture or otherwise produce, the Tenderer shall provide the manufacturer’s authorisation, using the form provided in the Tender Documents (Volume I. vi), showing that the Tenderer has been duly authorised by the manufacturer or producer of the related plant and equipment or component to supply and install that item in the Employer’s country. The Tenderer is responsible for ensuring that the manufacturer or producer complies with the eligibility requirements.

IX. Quality Assurance System (requirement applicable to Tenderer, subcontractors, manufacturers and producers):

Must be sufficient to assure consistent quality of train sets, be certified for quality standard and meet the specific requirements as per Volume III.

The Tenderer and its manufacturer of the train sets shall be certified for quality standard ISO 9001:2015, or substantial equivalent, issued by a certified international body and shall provide a current accreditation certificate.

The requirement shall be met by the manufacturer of the train sets, by Single Entity Tenderer or, in case of JVCA, by the partners supplying the train sets, performing the maintenance of the train sets and the modification of the maintenance site.

If an equivalent quality assurance standard to ISO 9001:2015 is provided, the Tenderer must also provide the confirmation by the corresponding national body for standards and certification of its substantial equivalence to International Quality Standard ISO 9001:2015.

In addition, the following certification is required to be met by the manufacturer of the train sets, by Single Entity Tenderer or, in case of JVCA, by the partners supplying the train sets, performing the maintenance of the train sets:

(i) IRIS (International Railway Industry Standard, http://www.iris-rail.org) issued by an Accredited Body for the following items: carbody and bogies structures, bogies, wheel set, Brake, Propulsion, traction motors and gear units, engines, motor alternator set, air conditioning.

X. Specific Requirements with regard to JVCA:

JVCA must satisfy the following minimum qualification requirements:

(a) The JVCA must satisfy collectively all the abovementioned qualification criteria, for which purpose the relevant figures for each of the partners shall be added to arrive at the joint venture's total capacity.

(b) Each partner shall meet not less than thirty percent (30%) of all the qualifying criteria for the turnover and the availability of the financial means as per the criteria specified under financial position above.

(c) The Lead Partner of the JVCA shall demonstrate that he acted as a main contractor on project(s) of similar magnitude as per 2.1) above and meets sixty percent (60%) requirements for turnover and the availability of the financial means as per the criteria specified under financial position above.

XI. Specific Requirements for Subcontractors:

The Tenderer shall demonstrate that proposed Subcontractors substantially satisfy the requirements regarding Eligibility, Legal requirements, Specific experience for the part of the activity assigned, Quality Assurance System, accordingly. The Employer reserves the right to request a substitution of the proposed Subcontractor, should such Subcontractor be determined to be unqualified.

XII. Specific Requirements relating to Environmental, Health and Safety (EHS):

The Tenderer needs to ensure compliance with:

- The EBRD Environmental and Social Policy, 2014; and

- International and Local EHS rules and regulations.

Details of the required EHS certifications are provided in the para. 10.1(c) Qualification of tenderer of the Volume I.ii - Tender Data.

Tendering for the procurement above will be carried out in accordance with EBRD Procurement Policies and Rules (revised October 2014) and will be open to firms from any country. 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 written request and payment of a non-refundable fee of EURO 250 (Two Hundred Fifty EURO zero eurocents).

Payment shall be made by direct bank transfer or direct deposit to the following bank account:

Beneficiary: Egyptian National Railways of the Arab Republic of Egypt

Beneficiary’s Bank: Egyptian Central Bank in Cairo, 54, el Gemohoria street, Cairo, Egypt

Account No: 4/082/17702/5

SWIFT: CBEGEGCXXXX

Purpose of the payment to be specified in the payment slip: Tender Documents for procurement of Train sets

Upon the written request (including the name, address, tel. number and email address of the requestor) and confirmation of payment of a non-refundable fee, the Tender Documents will be promptly dispatched by e-mail in pdf format to the email address, indicated in the written request, but in all cases no liability can be accepted for loss or late delivery. The requestor is reminded to follow up with the Employer on the request and to confirm the successful receipt of the email as per email content. To facilitate the preparation of the tender, MS Word version can be shared with the firms. In the event of discrepancy between MS Word version and pdf format of the documents, the pdf format shall prevail.

A two 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.

First Stage tenders must be delivered to the address below on or before November 01, 2016 10:00 am (Egypt time) at which time they will be opened in the presence of the tenderers’ representatives who wish to attend.

All Second Stage tenders must be accompanied by a Tender Security of USD 1,900,000 (One Million Nine Hundred Thousand US dollars zero cents) or its equivalent in a convertible currency and in the form of a Bank Guarantee as included in Volume I.v of the Tender Documents, 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.

A Pre-Tender meeting and a Site visit(s) to inspect and gather data on the Employer's existing infrastructure and facilities (including the maintenance sites) will be arranged from 20 to 22 September 2016. Given that the contracts will be on a Lump Sum basis, tenderers shall be expected to take all necessary survey information, measurements and assessment on site within the timescales of the site visit and to satisfy themselves that all quantities and information have been included in their tender prices.

Tenderers shall be deemed to have full knowledge of the physical conditions to be expected commensurate with the type and age of the Employer's existing infrastructure and facilities. Therefore, attendance at the Site Visits is considered as mandatory and non-attendance shall result in the rejection of a tenderer's tender. Tenderers attending the Pre-Tender meeting and the Site Visits shall do so at their own expense as per paragraph 5 of the Volume I.i of the Tender Document.

Potential tenders shall communicate the Employer before September 09, 2016 the interest to attend the Pre-tender meeting to receive the security clearance to attend the site visits from the relevant Egyptian authority for the company’s representative(s).

The register of the 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/request the tender documents at, the following office:

For purchasing and receiving of the Tender documents, the interested persons shall contact:

Contact name: Director of purchases, stores and custom clearance department. Agency name: Egyptian National Railways, Ministry of Transport, Arab Republic of Egypt. Address: Railways Compound, fifth floor, above Shubra Tunnel, Ramsis square, Cairo, Arab Republic of Egypt. Tel: (202) 2577 1896. Facsimile number: (202) 2576 1337. E-mail address: [email protected] with cc. to [email protected]

(Tenders shall not be submitted and will not be accepted by e-mail neither during the First Stage nor at the Second Stage. The requests for clarification shall not be sent to the address and email above, but rather as per para. 7.1 of the Volume I.ii Tender Data).