Project name: Danilovgrad Municipal Infrastructure Project

Country: Montenegro

Business sector: Municipal and Environmental Infrastructure

Project ID: 8733-IFT-41252

Funding source: EBRD

Type of contract: Works

Type of notice: Invitation for Tenders

Issue date: 20 June 2017

Closing date: 21 August 2017 15:00 hours local time

This Invitation for Tenders follows the General Procurement Notice for this project which was published in Procurement Opportunities, on 30th March, 2012, updated on 1st May, 2013, on 13th May, 2014 and on 16^th of January 2017.

D.O.O. “Vodovod i kanalizacija” Danilovgrad (the Employer), intends using part of the proceeds of a loan from the European Bank for Reconstruction and Development (the Bank) towards the cost for Danilovgrad Municipal Infrastructure Project component - Reconstruction of existing and construction of new sewers.

The Employer now invites sealed tenders from contractors for the following contracts to be funded from the proceeds of the loan:

Reconstruction of existing and construction of new sewers

General Description

The project concerns water investments and has one basic component:

- Reconstruction of existing and construction of new sewers.

The project includes design works and rehabilitation of existing faecal sewerage of Danilovgrad water supply system. The main objective of the project is to provide a sewerage system for the Danilovgrad agglomeration by constructing separate sanitary sewerage, especially in those town parts in which there is no existing sewerage, and by collecting waste waters in the Danilovgrad WWTP.

The duration of required services and works will be as following:

Time for completion of works: 600 days

Tests (including individual tests, complex tests): 7 days

Project of maintenance of facility: 60 days

The price including VAT will be calculated on the basis of currently applicable rate. VAT shall be paid in compliance with the Law on Added Value Tax (Zakon o porezu na dodatu vrijednost) “Sl. list RCG” No. 65/01, 12/02, 38/02, 72/02, 21/03 and 76/05, 04/06 and ”Sl. list CG”, No. 16/07, 73/10, 40/11, 29/13, 9/15, 53/16 and 01/17 and Rulebook on the Procedure of exemption from value added tax (Article 10).

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.

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

a) Average annual turnover. The Tenderer shall have an average annual construction turnover (defined as billing for works in progress and completed) over the last 3 (three) financial years of not less than 2,000,000.00 (two million) EURO equivalent. In case of a JVCA all Partners combined shall have an average annual construction turnover (defined as billing for works in progress and completed) over the last 3 (three) financial years of not less than 2,000,000.00 (two million) EURO equivalent.

b) Financial resources. The Tenderer shall demonstrate that it has 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 4 (four) months, estimated as not less than 500,000.00 (five hundred thousand) EURO equivalent, taking into account the applicant's commitments for other contracts.

Total requested credit facilities must meet following criteria:

- for a Single Entity 500,000.00 EURO

- for JVCA

• Partner of a JVCA min. 15%

• Leading Partner of a JVCA min. 40%.

c) Specific experience. The Tenderer (in case of a JVCA all Partners combined) shall demonstrate that it has successful experience as prime contractor in the execution of at least 1 (one) project of design and execution of construction of sewerage of a nature and complexity comparable to the proposed contract that has been successfully and substantially completed within the last 5 (five) years prior to the tender submission deadline, each with a value of at least 1,500,000.00 (one million and five hundred thousand) EURO (excluding VAT). The similarity shall be based on the physical size, complexity, methods/technology or other characteristics as described below.

Leading Partner of JVCA shall provide min. 40 % of Accepted Contract Amount, each Partner of JVCA min. 15 % of Accepted Contract Amount.

The Tenderer must demonstrate that works and supplies have been done directly by him in position of prime contractor or Leading Partner of JVCA.

Tender documents may be obtained from the office at the address below upon payment of a non-refundable fee of 150 EURO.

Please make a payment to the following bank account number: ME25550035030000038053, JP “VODOVOD I KANALIZACIJA” with Societe General Banka Montenegro PDBPMEPG. Upon receipt of appropriate evidence of payment of the non-refundable fee, the documents will promptly be dispatched; however, no liability can be accepted for their loss or late delivery.

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 15:00 on August 21st, 2017, 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 50,000.00 EURO or its equivalent in a convertible currency, 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 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:

Contact name: Mrs. Žana Perović. Employer: D.O.O. “Vodovod i kanalizacija” Danilovgrad. Address: Caja Scepanovica bb, Danilovgrad, 81410 State of Montenegro. Tel: +382 20 811 550. E-mail: [email protected]