Project name: Vologda District Heating

Country: Russia

Business sector: Municipal and environmental infrastructure

Project ID: 8640-IFT-41188

Funding source: EBRD

Type of contract: Project goods, works and services

Type of notice: Invitation for Tenders

Issue date: 6 April 2016

Closing date: 25 May 2017 at 10:00 am, Vologda time

This Invitation for Tenders follows the General Procurement Notice for this project which was published on the EBRD official website in Procurement Opportunities, issue date: March 30, 2017.

MUE Vologdagorteploset (hereinafter referred to as the Employer) has received a loan from the European Bank for Reconstruction and Development and a grant from the Northern Dimension Environmental Partnership (NDEP) Support Fund (jointly referred to as the Bank) towards the cost of the reconstruction of Individual Heating Substations (IHS) and installation of heat meters at 45 addresses (64 IHS).

The Employer now invites sealed tenders from contractors for the following contracts:

Reconstruction of 64 Individual Heating Substations (IHS) installed in residential buildings in Vologda. Some IHS are equipped for heating hot water for domestic needs and have heat meters with automatic data transfer to the central control system of the Employer. The works are financed by the NDEP grant.

To be qualified for the award of the contract tenderers shall satisfy the following minimum qualifying requirements:

1. General Experience. The applicant shall meet the following minimum criteria:

a) Average annual turnover as prime contractor (defined by the value of invoices issued for works performed on current and completed facilities) over the last 3 years in the amount of at least RUB 40,000,000 or equivalent;

b) Successful experience as prime contractor in the execution of at least three projects of a nature and complexity comparable to the proposed contract within the last 3 years. Comparable projects have to comprise of the installation of at least 50 demand controlled individual heating substations (IHS) with apartment or central heating or of works on central heating systems and boiler houses with the heat output from 10 Gcal/h. The total value of the contracts has to be above RUB 40,000,000 or equivalent.

c) The tenderer shall possess a SRO (self-regulating organisation) Certificate for the works defined in Clause 18.2 “Installation of external heating networks with heat carrier temperature up to 115 C and higher”.

2. Financial Position

a) The applicant shall confirm the availability or access to liquid assets, unencumbered real assets, lines of credit, and other financial means in the amount sufficient to cover the costs of works to be performed under the Contract, estimated as not less than RUB 15,000,000 or equivalent, free of the applicant's commitments for other contracts.

b) The audited balance sheets for the last 3 years shall be submitted and must demonstrate the soundness of the applicant's financial position, showing long-term profitability. Where necessary, the Employer will make inquiries with the applicant's bankers.

3. Personnel Capabilities

The Tenderer shall provide suitably qualified personnel to fill the following positions:

i. Project Manager with five (5) year professional project experience in supply and installation of plants and equipment of equivalent nature, including at least one specific experience as Project Manager for supply and installation of district heating systems within the last five (5) years;

ii. District Heating Engineer with ten (10) year professional experience in supply and installation of heating substations or central heating systems.

4. Litigation History

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 five 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 the rejection of the tender.

5. Joint ventures must satisfy the following minimum qualification requirements:

The joint venture must satisfy collectively the criteria for:

• General experience

• Financial position

• Personnel capabilities.

For this purpose the relevant figures for each of the partners shall be added to arrive at the joint venture's total capacity.

Each partner of the joint venture must satisfy the Litigation history requirement.

The NDEP grant 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 can be obtained from the address below upon payment of a non-refundable fee of RUB 50,000 (fifty thousand) without VAT or equivalent at the exchange rate of the Central Bank of the Russian Federation on the date of payment. Bank’s commission is to be paid by a person or legal entity arranging the transfer.

Upon the written request and confirmation of non-refundable fee payment, the tender documents may be collected from the office at the address given below or the documents will be promptly dispatched by courier or by e-mail to the address, indicated in the written request, but no liability can be accepted for loss or late delivery.

All tenders must be accompanied by a Tender Security of RUB 3,000,000 (three million) or its equivalent in a convertible currency, and must be delivered to the address below on or before 25 May 2017 10:00 AM Vologda time, at which time they will be opened in the presence of the tenderers’ representatives who wish to attend.

Prospective tenderers may obtain further information, inspect and acquire the tender documents at the following address:

Mr. Vladimir Petukhov, Chief Engineer, MUE Vologdagorteploset. Address: Vologda, Yashina street, 8a, 160012, Russian Federation. Tel: + 7 8172 75 21 64. Fax: +7 8172 56 04 11. E-mail: [email protected]